The IRS Whistleblower Office is a branch of the United States Internal Revenue Service that will "process tips received from individuals, who spot tax problems in their workplace, while conducting day-to-day personal business or anywhere else they may be encountered.
Under the amendments passed in 2006, a new set of rules and frameworks were established in order to evaluate informant submissions and to improve the efficiency of the program generally.
The Office lies within the IRS and is charged with administering the new framework and handling potential incoming whistleblower claims.
Part of that act requires the Secretary of the Treasury to conduct annual studies explaining the way in which Section 7623 is used and the results under the program.
[6] On April 16, 2012, in the Internal Revenue Bulletin, the IRS announced final regulations (Treasury Decision 9580) about rewards and awards to whistleblowers and their representatives.
[13] Effective August 1, 2012, the Whistleblower Award Determination Administrative Proceeding procedures and Internal Revenue Manual 25.2.2 have been modified.
[14] According to John McDougal, speaking on his own behalf, at an American Bar Association Section of Taxation webcast, "whistleblower data is the second most important source of information for the IRS's international enforcement efforts.
[16] The US Internal Revenue Service treats payments made to a whistleblower under the False Claims Act as ordinary income and not as capital gains.
[17] The IRS has reported that the percent awarded declines for cases based on information disclosed in public sources or if the whistleblower participated in part or all of the tax noncompliance or underpayment.