How Will The IRS Know? - IRS Collected Over $475 Million Thanks to Whistleblowers

The IRS Whistleblower Office recently released the Whistleblower Report to Congress, which included information showing a 10-year history of awards; the whistleblower claim processing flowchart, and; the average claim processing time by major process.

The IRS Whistleblower Program had a remarkable year in FY 2024, demonstrating significant growth in awards paid and improvements in processing efficiency.

In Total, Whistleblowers Were Awarded $123.5 Million,
Linked To Proceeds Collected Totaling Nearly $475 Million.

This is a substantial increase from the previous year’s $88.8 million paid out in awards.

Interestingly, even though the total dollar amount of awards grew, the number of awards issued dropped from 121 in FY 2023 to 105 in FY 2024.

The number of claims related to these awards was 700, marking the third highest level since the program’s inception in 2007. Awards paid as a percentage of proceeds collected remained strong at 26.0%, consistent with last year’s 26.3%, and substantially higher than the program’s average of 17.7%. This underscores the program’s continued effectiveness in rewarding whistleblowers proportionally to the funds recovered.

Improvements in efficiency were notable. The average time to issue awards under IRC section 7623(b) dropped by 28%, from 67 days in FY 2023 to just 48 days in FY 2024. Overall claim processing times also improved for both 7623(b) and 7623(a) awards, demonstrating the IRS’s commitment to continually enhance its responsiveness.

The number of new whistleblower submissions declined slightly to 5,660 from 6,455 in FY 2023, and the number of claim numbers established also decreased to nearly 15,000. Despite this, new submissions were processed more quickly than before, averaging 14 days compared to 15 days the prior year.

Another important element of the program is transparency. Under the Taxpayer First Act of 2019, whistleblowers are regularly notified when their claims are referred for examination, when taxpayers make payments relevant to whistleblower information, and about the status of their cases. In FY 2024, the IRS made over 5,600 such authorized disclosures to whistleblowers, maintaining open communication channels.

The achievements in FY 2024 reflect the hard work of the IRS Whistleblower Office and other IRS staff supporting the program. While some metrics like the number of awards and submissions decreased slightly, the program’s overall impact, efficiency, and payout ratios remain impressive. The IRS continues to effectively recognize and reward those who help uncover tax noncompliance, contributing to the integrity of the nation’s tax system.

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Underpaid IRS Tax Liabilities for

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