Whistleblower Office Reports $22 Million Paid in 2008

The IRS has yet to pay on any claims under the 2006 IRC 7623(b) mandatory reward program enacted in December 2006, according to its annual report to Congress issued earlier this week. Claims paid in 2008 for the discretionary rewards program (IRC 7623(a)) exceeded $22 million.

The Whistleblower Office has seen an increase in amounts collected and awards paid since FY 2004. That year, the Service paid out more than $4.5 million in awards. In FY 2005, the Service paid whistleblowers $7.6 million. Award payouts spiked in 2006 at just over $24 million. In 2007, the amount paid dropped to $13.6 million, with in increase in 2008 to more than $22 million.

The Whistleblower Office reminded Congress that the 7623(b) program represented a significant change for the Service, requiring the Whistleblower Office to "tool up." For example, during 2008, the Office staff grew from 4 to 14. Currently, ten analysts examine and shepherd meritorious whistleblower claims through the Service's criminal and civil investigation divisions.

Interesting was the Service's report on month by month submissions to the program. In October 2007, the Whistleblower Office received 16 submissions. In September 2008, the Office received 136 submissions. Submissions peaked in July of 2008 with a record 204 claims submitted, identifying 243 alleged fraudsters.

The Whistleblower Office laid out FY 2009 priorities in the report. The four areas of emphasis are 1) revise and update published guidance; 2) develop baseline information; 3) enhance communications; and 4) build program stability.

KEMY maintains regular contact with the IRS Whistleblower Office and monitors changes in whistleblower reward program policy. If you believe you have a potential IRS reward claim, contact KEMY for a free consult today.