Sec. 7623

Staffed by Teaching Faculty of U.S. Tax Court
Admissions & Trial Practice Programs for
Non-attorney & Attorney Federally-authorized
Tax Practitoners at the Tax Law Institute
Contact: 1.800.513.1598

Richard C. Cunha trained in the U.S. Tax Court Trial Practice at the Tax Law Institute. He is a U.S. Tax Trial Attorney and a Specialist in the area of whistle-blowing -- expenses of detection of underpayments and fraud, etc. representation of persons (employees) detecting and bringing [sic] to trial and punishment persons guilty of violating the internal revenue laws or conniving at the same, in cases where such expenses are not otherwise provided for by law. Member of the Bar of the Commonwealth of Massachusets and U.S. Tax Court.

"If the matter concerns Federal taxes and litigation then you should be talking to us"

The IRS Whistleblower Law

"Section 7623 of the Internal Revenue Code now has been amended to allow for individuals to receive rewards of at least 15% but not more than 30% of the collected proceeds (including penalties, interest, additions to tax, and additional amounts) resulting from one's "substantial contribution" to the taking of IRS action ..."

  • Internal Revenue Code IRC 7623(a)
    • Submissions that do not qualify under 7623(b) will be processed under section 7623(a).
    • These cases will continue to be considered through regulations appearing at 26 CFR 301.7623-1.
    • The award is at the discretion of the Service, there is no requirement that an award be issued.
    • The discretionary award is based on additions to tax, penalties, interest, and other amounts collected as a result of administrative or judicial action resulting from the information provided.No minimum statutory award percentage
    • No appeal provisions
  • Internal Revenue Code (IRC) 7623(b)
    • The law applies to claims filed after enactment date December 20, 2006.
    • The award percentage ranges are statutory, with a general range between 15% to 30%, with some exceptions. There is no limit on the dollar amount of the award.
    • A reduced award amount of up to 10% in cases based principally on disclosure of specific allegations resulting from:
      • Judicial or administrative hearings,
      • From a governmental report, hearing, audit or investigation,
      • Or from the news media.
      • An appropriate reduction if the whistleblower “planned and initiated” the non-compliance
    • The law applies to cases in which the amount in dispute exceeds $2 million. If the taxpayer is an individual, the individual's gross income must exceed $200,000 for any taxable year at issue in a claim. Requires the Whistleblower Office to analyze these $2 million cases, and authorizes the IRS to request assistance from the whistleblower and their counsel. Individuals are eligible for awards based on additions to tax, penalties, interest, and other amounts collected as a result of any administrative or judicial action resulting from the information provided.

      • Awards are subject to appeal to the US Tax Court.
      • If the thresholds in 7623(b) are not met, section 7623(a) authorizes, but does not require, the Service to pay for information relating to violations of the internal revenue law that result in recovery of tax.