Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
IRS Considers Lowering Financial Incentives for Whistleblowers
Author: Scarinci Hollenbeck, LLC
Date: March 20, 2013
Key Contacts
Back
The Internal Revenue Service has encouraged Americans to help it detect and prosecute tax law violations by offering financial incentives for those who alert the agency to tax-related crimes. However, the agency is considering lowering these incentives in the future, which may affect how many people come forward.
Acting IRS commissioner Steven Miller recently proposed to shrink the existing provisions of the IRS Whistleblower program, and suggested a number of changes in regards to which types of money qualify for rewards. Under the existing program, those who alert the IRS to tax evasion can collect a reward that ranges between 15 and 30 percent of any proceeds brought in as a direct result of a tip. However, the tax evasion must involve at least $2 million in funds or apply to an individual making at least $200,000 per year, the New York Times reports.
Under the new proposals, whistleblowers would face difficulties obtaining rewards that stem from a corporation’s inflation of losses, the Times notes. In addition, informants would be wholly excluded from rewards related to money from Foreign Bank and Financial Accounts (FBARs) violations, the newspaper added.
However, many lawmakers say the proposal – if implemented – may deter Americans from coming forward with knowledge of tax violations. Further, many analysts noted that the IRS has failed to make good on several of the previous assistance they have received from informants. For example, the IRS has received more than 1,960 claims since 2006, but paid its first claim in 2011, the Times reports.
The IRS has not yet gone through with any of its proposals and has not yet announced when or if it will decide to pursue a stricter whistleblower policy. Currently, it has not let up on its efforts to use various resources to detect tax law violations, including new agreements with several countries across the globe for more transparency and reporting on Americans’ foreign accounts.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.