The Internal Revenue Service has proposed new rules which will make it easier for whistle-blowers to collect rewards for turning in large tax cheats. The new rules create big rewards to give incentive for people to report businesses and individuals who cheat the government out of two million dollars or more in taxes. The...

Two former Planned Parenthood employees have become whistleblowers revealing millions of dollars in fraudulent overbilling to state and federal governments. Victor Gonzales said that he saw the overbilling when he was the Chief Financial Officer for Planned Parenthood in Los Angeles. He said that after he reported the fraud he was fired. The court...

In a major decisions this week, The United States Tax Court declared that it has control and jurisdiction to oversee the Internal Revenue Service regarding a law made by Congress that mandates between 15-30% bounty for informants. The cases involves the estate of Clarence Dillon Eweson and his daughter Dorothy Dillon Eweson who died...

The IRS has released Internal Revenue Manual 25.2.2 addressing award procedures for Tax Whistleblowers under section 7623. The procedures create an initial award determination that a Tax Whistleblower will have the opportunity to comment on before the IRS makes a final determination. The text of the I.R.M. can be found at www.tax-whistleblower.com/resources/. The IRS will...

Transfer Pricing is the name of the gamut of shifting profits to low tax jurisdictions to avoid taxes in countries where corporations have substantial trading operations. Globalization has enabled a company to design its product in country A, manufacture in B, and hold patents elsewhere and this structure gives discretion in allocating costs to each...

Congress amended IRC 7623 in 2006, the IRS' Whistleblower Office has seen significant interest from potential informants with tips about multimillion-dollar cases of tax evasion. Government fraud via tax evasion is now leading to a major trend in whistleblowing. Section 7623(a) authorizes payments to private citizens for assistance in detecting underpayments of tax and...

Each year, taxpayers must pay an extra $1,000 to cover those cheating on their taxes. Now, the IRS is taking an agressive and new approach to recover the more than $350 billion that companies and individuals are evading in their taxes. Congress passed a law mandating that the IRS begin paying whistleblower rewards as...

You don't need to be a United States citizen to be eligible for awards for revealing tax fraud. The IRS whistleblower rewards program has special provisions for foreign citizens who reveal tax fraud to the IRS. However, the whistleblower must submit the information in the right way and should have legal representation. There are...