IRS marks National Whistleblower Day

The Internal Revenue Service plans to observe National Whistleblower Day on July 30, highlighting the role of tipsters in exposing tax fraud and helping it recover unpaid taxes and strengthen tax compliance.

Processing Content

The IRS said $8 billion has been recovered since 2007 thanks to whistleblowers, and it has paid over $1.4 billion in awards to whistleblowers. It said the first whistleblower law dates back to 1178. 

“Historically whistleblowers have played an essential role in tax administration by calling attention to problems others have overlooked,” said IRS CEO Frank Bisignano in a statement Tuesday. “Information provided by whistleblowers helps the IRS identify noncompliance, pursue enforcement actions, and ensure fairness for taxpayers who follow the law.”

The IRS has been enhancing its digital tools for tipsters, including a digital version of Form 211, Application for Award for Original Information, enabling whistleblowers to submit information using a phone or laptop. The IRS said that, as a result, submission rates have reached unprecedented levels.

The IRS has also introduced a centralized online reporting tool at IRS.gov/SubmitATip that offers step-by-step guidance to report fraud and scams, including information on how to submit documents.

The IRS Whistleblower Office is also expanding its Whistleblower Alert initiative, which highlights emerging abusive tax schemes and provides information to help individuals identify and report suspicious activity. In April, it issued its first alert encouraging whistleblowers to report fraud at tax-exempt organizations. Also that month, the House passed bipartisan legislation to strengthen the IRS’s Whistleblower Awards Program and provide faster payouts to tipsters. 

The IRS Whistleblower Office collaborates with whistleblowers, practitioners, advocacy groups, and other governmental and international whistleblower programs, including helping the U.K. tax authority’s whistleblower program. 

“Celebrating National Whistleblower Day is an opportunity to express sincere appreciation to whistleblowers,” said IRS Whistleblower Office acting director Erick Martinez in a statement. “Their efforts make our tax system stronger by exposing wrongdoing and deterring bad actors. Their tips provide the IRS with information the agency would not otherwise know about, potentially increasing collections, and improving tax compliance.”

Despite the improvements made to the whistleblower program, the IRS itself has been suffering a series of budget and staffing cuts since last year, losing nearly one-third of its staff. Taxpayers and tax professionals have reported difficulty in reaching IRS representatives to answer questions about taxes.