Archive for the ‘IRS Whistleblower Procedures’ Category
Saturday, December 20th, 2008
Is the IRS Whistleblower Reward Taxable?
The most asked tax whistleblower question by clients is, do I have to pay tax on my tax reward for helping the IRS? The answer is simply, Yes, it is taxable. A reward received under Code Sec. 7623 is taxable as ordinary income. Rev. Rul. 70-576, ...
Posted in FAQ, IRS Whistleblower Procedures | 1 Comment »
Tuesday, June 3rd, 2008
The Tax Court yesterday issued a Press Release and a Notice of Proposed Amendments to its Rules of Practice and Procedure on Tax Whistleblower award actions. These proposed amendments address the recently (December 20, 2006) enacted legislation of IRC Section 7623. Specifically, IRC Section 7623(b)(4), concerning the Appeal of Award Determination, ...
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Tuesday, May 13th, 2008
On February 27, 2008, Office of Chief Counsel (i.e. the legal arm of the IRS) issued Notice CC-2008-011 to clarify its concern of potential “evidentiary” problems with respect to information received under the Tax Whistleblower Reward Program.
Essentially, the Notice deals with 3 situations for which a tax whistleblower may be ...
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Thursday, May 8th, 2008
During recent weeks I have been approached by several accountants with a similar question, "One of my clients was solicited by a Tax Shelter promoter to enter into what I consider an abusive scheme to create artificial deducitons or to hide income. I advised my client not to participate, ...
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