What Does an Uptick in Tax Enforcement Mean to Whistleblowers?

Scott A. Knott | Friday, May 03, 2019

Jesse Eisinger just did a piece today in the New York Times about how we might soon be seeing an increase in the enforcement of our tax laws after an eight year decline in audit and prosecution of tax cases by the IRS.  To recap: Congress has been cutting the IRS’s budget for almost a... Continue Reading…

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Statutory changes show big results in the Whistleblower Office in FY 2018

Erica L. Brady | Wednesday, February 06, 2019

The IRS Whistleblower Office released it FY 2018 Report to Congress today.  The report comes out one year after Congress amended section 7623 in the Bipartisan Budget Act of 2018, which clarified the definition of proceeds includes non-Title 26 amounts such as criminal fines, civil forfeitures, and violations of reporting requirements.  This change in the... Continue Reading…

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Getting an FBAR Based Award – Not as Simple as it Looks

Gregory S. Lynam | Wednesday, November 07, 2018

Today the GAO released a study wherein they looked at the ability of the IRS to track and then pay awards on monies that are collected by the Government relating to “FBAR” violations.  Recall that FBAR stands for the “Reports of Foreign Bank and Financial Accounts”  and it represents information and return reporting requirements and... Continue Reading…

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IRS Enforcement Actions Still at Record Lows

Scott A. Knott | Monday, September 17, 2018

A report just released by TIGTA (the Treasury Inspector General for Tax Administration) shows that once again IRS audits of taxpayers are in decline.  Enforcement revenues are slightly up this year, but TIGTA says this is due to a small number of large corporate cases. Some highlights of the TIGTA report: “The number of staff... Continue Reading…

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The Ferraro Law Firm Attends the 42nd Annual Federal Bar Association Tax Law Conference

Stephen U. McCloskey, Jr. | Tuesday, March 13, 2018

On March 9th, Tax Partner Scott Knott and I attended the Federal Bar Association Tax Law Conference in Washington, D.C.  Known colloquially as the “inside the beltway tax conference,” many high ranking federal government employees from DOJ, Treasury, and the IRS were in attendance and speaking on various new developments in the tax law. The... Continue Reading…

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Filing Season Fraud and Whistleblowers

Scott A. Knott | Tuesday, March 13, 2018

We get absolutely deluged with hundreds of calls a day during tax return filing season about all kinds of fraud, particularly identity related scams and claiming child exemptions improperly.  In 2016, there was a 400% increase in tax related phishing and malware attacks, and 969,000 potentially fraudulent refunds claiming up to $6.5 billion. You may... Continue Reading…

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Whistleblower Office Annual Report for 2017 Reveals the Program’s Challenges and Opportunities.

Scott A. Knott | Monday, January 08, 2018

Happy New Year! The new year brings a time to reflect back on the past year, on things that went well, things that went not-so-well, and how you would like to do things going forward.  In the spirit of looking back over the last year, the IRS Whistleblower Office released its FY 2017 Annual Report... Continue Reading…

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Rapidly Growing SEC Whistleblower Program Creates Opportunities for Tax Whistleblowers

Stephen U. McCloskey, Jr. | Monday, December 04, 2017

Many tax fraud cases also involve securities law violations.  For instance, corporations engaged in tax evasion may also be creating fraudulent financials or offering securities to investors by providing misleading or untruthful information.  The most common compliant categories reported by whistleblowers to the SEC in fiscal 2017 were Corporate Disclosures and Financials, Offering Fraud, Manipulation,... Continue Reading…

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Senator Grassley’s Amendment to Clarify the Definition of “Collected Proceeds” is Added to the Senate Tax Mark Up

Erica L. Brady | Friday, November 17, 2017

Late on November 16th, the Senate Finance Committee voted to approve its iteration of the Tax Cuts and Jobs Act, passing the measure on a party-line 14-12 vote.  The full version can be found here.  Of particular interest to our readers here is one of the amendments that was added to this in committee.  Senator... Continue Reading…

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Fiscal 2018 Sequestration to Reduce IRS Whistleblower Awards by 6.6 Percent. . . For Now

Stephen U. McCloskey, Jr. | Thursday, October 12, 2017

The IRS announced that whistleblower awards paid under section 7623 on or after October 1, 2017 and on or before September 30, 2018, will continue to be reduced by the “sequestration reduction rate”, which has now been lowered slightly to 6.6 percent.  The 6.6 percent fiscal 2018 sequestration reduction rate represents a .3 percent decrease... Continue Reading…

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