Importance of Timing

The timing of a claim under the Tax Whistleblower Reward Program is a factor that can be easily overlooked but, nonetheless, is important to consider for the following reasons:

Statute of Limitations

There are limitations imposed by Congress on the ability of the IRS to conduct an examination and to collect any tax.  These limitations break down the following ways:

* 3 years - In general, the statute of limitations on assessments (the examination and determination of an additional tax liability) is three years from the time a tax return was filed.  In addition, during these three years, the IRS needs sufficient time to open the examination and conduct the audit.


* 6 years - In some cases (e.g., a substantial understatement of income), the statute of limitations may be six years from the time a tax return was filed.


* 10 years - In those situations for which the IRS has assessed the tax, but has not collected, to the extent that you provide "specific and credible" information to assist in the collection, the IRS has 10 years from the date of assessment to collect.  This may be extended by the IRS is a suit to reduce the tax claim to judgment.

* No statute of limitations - In some cases, there is no statute of limitations such as in those cases involving tax fraud (IRC 6663) or in those situations where a taxpayer did not file a tax return.

In addition to the above, if there is a pending statute of limitations issue, a taxpayer that is the subject of an IRS audit may voluntarily extend the statute of limitations by agreement with the IRS in an effort to resolve the case before litigation.  As former IRS attorneys, we are in a unique position to evaluate whether your case is worth pursuing as part of the Tax Whistleblower Reward Program and to determine if there is a substantial understatement of income (a six-year statute of limitations) or tax fraud (no statute of limitations).  As former IRS attorneys, in some cases, we will draft the Form 872, Consent to Extend the Time to Assess Tax, on behalf of the IRS to submit with the package for the Tax Whistleblower Reward Program.

Competition from a "fellow" tax whistleblower

There may be other individuals who possess the same or similar information as you regarding the underreporting of tax by an individual or corporation.  For example, we have been involved in situations where the relevant information on which to base a claim to the Tax Whistleblower Reward Program is known by an accounting department, legal department, outside CPA firm, supporting staff, and former employees.  Any one of these individuals may file a claim under the Tax Whistleblower Reward Program.  The IRS determines the extent that multiple whistleblowers substantially contributed to the determination of the reward.  It is unknown at this time whether there will be multiple rewards (not to exceed 15% to 30% in total) paid, or whether it will be paid to the first to file, or the individual that "substantially contributed" to the determination of tax.  Therefore, if you are considering filing a Claim, it is strongly recommended that you proceed as quickly as possible.

 

At Tax Whistleblower Law Firm, LLC, we help clients throughout the nation to maximize their reward by quickly and efficiently evaluate the merits of a claim.  Our former IRS attorneys organize and prepare each claim with an eye towards both detailed factual documentation and the actual timing of the claim itself.

 

If you have information regarding a taxpayer (i.e., an individual, business, estate, or trust) that underreported or failed to pay tax, you may be entitled to a reward up to 30% of the amount ultimately collected by the United States of America for providing such information.  Contact us NOW to start the process of identifying the underpayment of tax!  Your confidentiality is guaranteed!