How Does the Tax Whistleblower Claims Process Work?
The Ferraro Law Firm
Washington, D.C. — Miami, Florida
After making the decision to hire a tax whistleblower lawyer and come forward with tax underpayment, evasion or fraud information, you are likely to have questions about many things: How long does it take for the IRS to reward whistleblowers? Do you receive a portion of the underpayment penalty and interest as well as the recovered tax? How do you report an underpayment, including fraud and evasion?
How to Report Tax Fraud - The First Steps
Prior to formally proceeding with a whistleblower claim, our experienced tax lawyers will carefully review your information and any documentation you have provided. Thoroughness with the initial submission of a whistleblower claim is critical to success. We believe the experience and knowledge that our lawyers possess makes The Ferraro Law Firm the clear choice to handle your whistleblower claim.
What happens after you report tax fraud?
Of course, the answer is, it depends. We try to make the process of filing a claim go smoothly while shielding your identity and limiting the direct contact you have with IRS officials. By making a thorough initial submission of information in your whistleblower claim, you may be able to minimize future contact with the IRS about the matter. Our tax whistleblower attorneys can work directly with the IRS Whistleblower’s Office to answer all questions involving clarification of the information provided, discuss the need for any additional information, and support the IRS's legal analysis.
How long does the tax whistleblower process take?
There are three phases to a tax whistleblower claim: (1) preliminary assessment by the IRS Whistleblower Office/review by the Operating Division, (2) examination and collection procedures, and (3) determination of the reward amount. The first phase, the initial evaluation of the information the whistleblower provides, can take a several months to perform depending on the complexity of the issues. Under new guidelines issued by the IRS the Whistleblower office should conduct its review and assignment to an Operating Division within 90 days and the Operating Division should finish its initial review within an additional 90 days. IRS examinations (audits) typically take several years to complete for large taxpayers, and if the taxpayer decides to appeal or litigate the issue, even more time may be required. The third phase of determining the award amount will likely only take a few weeks to complete though again, new guidelines give 90 days to make the initial award determination. However, a submission that is more complete can shorten the process—as can having a law firm that knows how to deal with the IRS on your side. As your attorneys, we will work to keep the investigation, and your claim, on track in whatever ways we can.