Why the IRS Whistleblower Program Matters
The U.S. tax system relies on voluntary compliance, but tax evasion remains a multibillion-dollar problem. Whistleblowers provide information that helps the IRS detect fraud and recover funds that would otherwise be lost.
Freiberger Haber LLP represents individuals who report significant tax fraud, underpayment, and other violations of the Internal Revenue Code to the Internal Revenue Service. Our firm provides confidential guidance through every stage of the IRS Whistleblower Program—from preparing Form 211 through award determinations and appeals—protecting whistleblowers’ rights and maximizing potential financial awards.
The IRS Whistleblower Office administers claims submitted by individuals with specific, timely, and credible information about violations of tax laws. When the IRS uses this information and collects taxes, penalties, or interest, eligible whistleblowers may receive 15% to 30% of the proceeds collected.
Any individual—U.S. citizen or foreign national—may report tax violations by taxpayers or entities subject to U.S. tax laws. The IRS receives whistleblower claims relating to:
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Tax underpayment exceeding $2 million (mandatory award program)
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Complex tax evasion schemes
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Corporate tax fraud
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Offshore tax evasion
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Illegal shell accounts
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Underreported income or false tax filings
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Fraud involving partnerships, trusts, and financial institutions
Certain individuals are ineligible, including federal employees who obtained information in the course of official duties and individuals who obtained information illegally.
Eligibility Requirements for an Award
To qualify for an award, a whistleblower must provide original information that:
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Is based on independent knowledge or analysis
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Is not already known to the IRS
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Is specific and credible enough to lead to an IRS administrative or judicial action
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Results in the collection of taxes, penalties, interest, or other amounts
Mandatory vs. Discretionary Award Programs
Mandatory Awards (IRC § 7623(b))
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Applies when the taxpayer’s dispute involves more than $2 million in tax, penalties, and interest
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Awards range from 15% to 30% of collected proceeds
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Whistleblowers may appeal award determinations to the U.S. Tax Court
Discretionary Awards (IRC § 7623(a))
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For claims below the $2 million threshold or involving criminal tax issues
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Award amounts are not guaranteed and are determined at IRS discretion
IRS Whistleblower Process
Whistleblowers submit claims using Form 211, Application for Award for Original Information, signed under penalty of perjury. Recent IRS reforms include:
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Removal of the “wet ink” signature requirement
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Updated Form 211 fields and violation categories
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Development of a digital submission portal
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Improved triage and evaluation procedures to prioritize high-value claims
How We Approach IRS Whistleblower Matters
Although filings cannot be anonymous, the IRS protects whistleblower identities to the maximum extent allowed by law. The IRS safeguards sensitive whistleblower and taxpayer information and prohibits retaliation for providing information about tax noncompliance.
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Industry insiders
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Accountants and financial professionals
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Corporate employees and executives
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Tax professionals
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Competitors or counterparties
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Individuals with specialized knowledge of tax evasion schemes
Our experience includes representing whistleblowers in high-stakes tax enforcement matters involving corporations, high-net-worth individuals, offshore structures, financial institutions, and complex tax shelters.
