Will the IRS be true?
June 5, 2008 – 1:46 pmAs attractive as the Tax Whistleblower Reward Program appears to reward-seeking informants, many would-be informants are skeptical of the promises made by Congress in IRC section 7623 and by the IRS in various announcements designed to entice participation. However, as a former IRS attorney, I can verify that the promises of a 15-30% payout and general confidentiallity are true and unwavering. The IRS is staunchly cognizant of the general mandate of Congress at IRC section 6103 to prevent the disclosure of taxpayer information. In fact, the IRS has special divisions within the organization that specialize in compliance with the disclosure provisions of IRC section 6103. IRS employees are provided with hotline numbers that they can call to obtain advice on whether an intended act could violate the disclosure provisions of IRC section 6103. This anti-disclosure mindset, with checks and balances in place, will also be applied by the IRS to the Tax Whistleblower Reward Program. No doubt, there will be circumstances when a careless IRS employee commits an unintended breach of the disclosure rules. This is why, at www.rewardtax.com, we take Steps of Protection designed to foresee potential IRS breaches and eliminate such risk. Examples of these Steps include attaching warning labels to all identifying information and using paper that is resistant to photocopying. Our Steps of Protection will prevent an IRS employee from making a careless, inadvertent disclosure.
The 15-30% payout is also a promise that would-be informants can “bank on.” IRC section 7623 is a law passed by Congress and signed by the President. Without going into a cliche rendition of “I’m just a Bill, on Capital Hill…,” by School House Rock, I can state that this Code section is a law that will be protected and enforced by the Courts just as any other long-standing law of this Country is enforced. As a former attorney-advisor to the Chief Judge of the U.S. Tax Court, I can assure readers that the Tax Court will be fair in deciding challenges to the size of any reward granted under the Tax Whistleblower Reward Program.
2 Responses to “Will the IRS be true?”
What happens to IRS employees who intentionally or unintentionally commit an unauthorized act of disclosure?
By Chamiqua Friendly on Jun 5, 2008
An IRS employee who violates IRC section 6103 can lose his/her job and could be criminally prosecuted. IRC section 6103 doesn’t specifically apply to the Tax Whistleblower Reward Program, but it remains to be seen whether the IRS will adopt some of the same policies to avoid disclosure in the Whistleblower arena. My guess is that since they have a procedure in place for avoiding disclosure, those same procedures will be used in the Whistleblower Office.
By Rob on Jun 5, 2008