The newly enacted legislation that created the IRS Whistleblower Reward Program provides that a person with information regarding the underreporting of tax by a taxpayer (i.e., an individual, business, estate, or trust) may provide the information directly to the IRS or with the assistance of an attorney.  After making the decision to hire an attorney, the following are the typical steps involved in pursuing a reward under the IRS Whistleblower Reward Program:

Step #1:  Organize

Organize the facts and your thoughts as to why you believe that a taxpayer (i.e., an individual, business, estate, or trust) has underreported its tax liability.

Step #2:  Contact Us

You can contact us by providing the information requested in the fact-gathering sheet through our secured internet website - Contact Us -  or by calling one of our former IRS attorneys at 1-866-241-6771.  We are committed to responding to you within 2 business days.  Since the IRS has announced that it will not accept a case if the information is not "credible and specific upon initial review," it is important that the case be properly evaluated and that guidance be given immediately as timing is so important in these matters.

Our former IRS attorneys will perform a preliminary review of the facts and circumstances to determine whether your case is a viable candidate to enable you to earn a reward under the IRS Whistleblower Reward Program.  The experience and knowledge of our former IRS trial attorneys make us the best choice to evaluate your case.  If additional information is required or if you have documentation available to support your case, our attorneys will contact you via prearranged, confidential mediums of communication to arrange for delivery.

Step #3:  Meeting/Formal Engagement

After we have determined that your case is a viable candidate under the IRS Whistleblower Reward Program, we believe it is important to meet in person so that you are comfortable with the attorneys with whom you will be working.  Our attorneys are willing to meet with you at a convenient and confidential location of your choosing.  Such meeting is not necessary and need not occur if you would prefer not to meet.  However, if a meeting does take place, it is at this meeting that we will gather additional facts and documentation from you and we will present to you a standard fee agreement for legal representation in this matter.

Step #4:  Additional Information

It is important that the facts be substantiated, to the extent possible, with documentation including memoranda, letters, bank statements, tax returns, contracts, deeds, wills, etc.  To the extent that you have this information, it should be submitted to our attorneys to convert the general allegations of facts into “specific and credible facts.”  This type of information helps to assure the acceptance of the case by the IRS when all other requirements (e.g., statute of limitations, dollar limitations, etc.) are met.

Step #5:  Preparing a Package for Submittal

We strive to achieve (i) acceptance of the case by the IRS under IRC § 7623(b) and (ii) to convert the case from a 15% reward case to a 30% reward case.  We use our knowledge and experience as former IRS attorneys to maximize your reward.

Based upon the facts and circumstances of each case, we will:

• Create an "Administrative File" similar to what is normally created by the IRS in an examination;
• Prepare an “audit plan” for the IRS;
• Prepare Information Document Requests (IDRs)/Summonses normally issued by the IRS to further develop the case;
• Prepare the case for the IRS to litigate any issues before the United States Tax Court by identifying witnesses whose testimony may be necessary at trial, obtaining certified documents for the benefit of the IRS, and providing the IRS with other relevant documents as necessary for litigation; and
• Provide a legal tax opinion--which includes facts, legal citations, and legal conclusions--in a form used by IRS attorneys when giving advice to IRS Revenue Agents.

Step #6:  Submission to the IRS

Our attorneys will submit the package to the IRS.  Once submitted, the IRS will evaluate the package and notify our office within sixty (60) days as to whether the package has been accepted or rejected under the IRS Whistleblower Reward Program.  We will immediately notify you of a determination by the IRS.

Step #7:  Examination/Collection

Using the information provided in the package, the IRS will assign the case to an IRS Revenue Agent and case manager to audit the tax returns of the taxpayer that has underreported its tax liability.  The IRS will be discrete in its examination and will not disclose that that information was provided as part of the IRS Whistleblower Reward Program.  The examination can take between one and three years. Most examinations by the IRS are settled with the taxpayer, and very few of the cases go to litigation.

After a tax liability is established, the IRS collects the tax, penalty, and interest.  Although collection may be an issue, many taxpayers will pay immediately to stop the running of interest (currently at 6% per year) and penalty for late payment of tax (currently 1/2% per month (i.e., 6% per year)).  However, if the taxpayer refuses to pay, the IRS must take enforced collection action.  This could delay the payment of the reward.

The legislation that created the IRS Whistleblower Reward Program requires the IRS to monitor every case in order to minimize the time between the submission of the case and the payment of the reward.  We will send letters to the IRS on a quarterly basis, reminding them of the submission of the case and requesting a status report with respect to the payment of the tax reward in your matter.

Step 8:  Determination of the Reward

Upon conclusion of the case (completion of the examination and collection by the IRS), the Office of the IRS Whistleblower Reward Program will make a determination as to whether the tax information that was provided is worthy of the minimum fee of 15% or of some greater amount up to 30%.  Depending upon the circumstances, this fee may be negotiated by the IRS with our attorneys.

If we are dissatisfied with the reward given by the IRS, the fee is subject to judicial review.  In other words, you may challenge the amount rewarded by the IRS in the United States Tax Court, where a Federal judge will determine if your case, as presented to the IRS, deserves a reward greater than what was determined by the IRS.

At the request of our clients, the attorneys of S & P Law Firm, LLC will appeal and litigate the percentage of the reward at no additional cost.  This is one of many benefits that we offer that is not offered by any other law firm.

If you have information regarding a taxpayer (individual, business, estate, or trust) that underreported its tax liability, you will be rewarded up to 30% of the amount ultimately collected by the United States of America for providing such information pursuant to the IRS Whistleblower Reward Program.  Contact us NOW to start the process of identifying tax avoidance and obtaining your reward! Your confidentiality is guaranteed!