IRS Whistleblower Program is Slow-Going, but a False Claim Act Case Can Be Lucrative

In its annual report to congress, the Internal Revenue Service continued to show that they aren’t in a hurry to pursue whistleblower claims, which could lead to millions or even billions of dollars in recoveries.

In 2006, Congress enacted a new law to encourage private citizens to provide any information about tax wrongdoings that exceeded $2 million, by offering a reward. Since then, despite thousands of whistleblower submissions received, only nine awards have been given out.

According to the report, there isn’t much more progress being made in the short term, though claims continue to pile up. There are only three whistleblower claims submitted since 2006 which are being evaluated by the IRS Whistleblower Office. The IRS also stated that the number of whistleblower payments in the 2014 fiscal year “is not expected to increase dramatically.”

The agency’s inaction and apparent apathy towards whistleblower claims has raised the ire of Iowa Sen. Chuck Grassley.  In a statement, the Republican lawmaker said that he’s worried about the message being sent.

“The agency should do everything it can to make these cases a priority,” he said. “My worry is that the slow progress will cause the tips to dry up. That would harm the whistleblowers who stick their necks out to flag tax cheating and the honest taxpayers who pay what they owe and deserve tax fairness.”

A statistic in the IRS report went far in pointing out what little action is being taken. In the 2013 fiscal year, the IRS closed more than 250 whistleblower claims because there was insufficient evidence or because the statute of limitations was close to running out, despite the fact that many of the cases had been open for more than three years.

If you are aware of wrongdoing against the federal government, speak to an attorney who can determine 1) if you have a case with merit; 2) if there is enough evidence to proceed with your claim; and 3) who will investigate thoroughly and represent you throughout what can be a drawn-out process.

The Qui Tam attorneys at Begelman & Orlow, P. C. have over 120 years combined experience in pursuing whistleblower claims. If you know of a wrong that you’d like to expose under the False Claims Act, contact us today for a free consultation. Call 866–627-7052.