Maximizing Tax Rewards
International Tax Whistleblower Representation
Under the Tax Whistleblower Statute, whistleblowers are entitled to 15-30% of the civil taxes, penalties, and interest collected by the IRS. If you are not satisfied with the award you receive, you have the right to appeal the award to the United States Tax Court. To maximize the whistleblower award, it is important to retain a law firm admitted to practice before the United States Tax Court.
To maximize your tax reward, the whistleblower law firm will need to work with the IRS throughout the entire investigation and then appeal the reward decision if it is an unsatisfactory award. K&M employs a former IRS revenue agent and forensic accountants who will assist the IRS until the completion of the investigation by preparing audit plans and subpoenas. This continued participation is crucial to your ability to receive the highest reward allowable. Our attorneys will also appeal unsatisfactory tax rewards to the United States Tax Court.
Getting the IRS to Act on Your Submission
The IRS Whistleblower office receives thousands of complaints annually. The complaints vary in quality and due to resource limitations, the IRS will pursue only those complaints that appear to warrant expending the resources necessary to investigate and prosecute the tax underpayment.
The following are some of the criteria the IRS evaluates in determining whether to pursue a whistleblower case:
- The amount of tax underpayment
- The quality of proof presented as part of your tax whistleblower claim
- Whether the claim involves allegations of tax fraud which can extend the applicable statute of limitations and lead to additional civil and criminal penalties
- Whether the claim is filed in a timely manner (whether any statute of limitations applies to the claim which may prevent the IRS from collecting unpaid taxes)
- Whether any legal or accounting privileges prevent the IRS from using the information submitted to the IRS as part of the claim
- The soundness of the legal and accounting analyses submitted in support of your claim
Your original submission to the IRS must be presented properly in order to maximize the likelihood that the IRS will allocate resources to the investigation of your claim. Therefore, the claim submission should address the issues in a thorough yet concise manner with the relevant documentary evidence attached and referenced throughout the complaint.
Kenney & McCafferty employs a former IRS Revenue Agent and a former Department of Justice tax prosecutor who are aware of the issues most critical to the reviewing agents. Our experience allows us to properly evaluate and prepare a claim for submission.
Our tax fraud attorneys will work with you to obtain as much evidence of the underpayment as possible before submitting your claim to the IRS. We will help you organize this evidence into a compelling narrative that:
- Explains the legal, accounting, and tax theories giving rise to the underpayment
- Details how the underpayment occurred
- Provides documentation of the underpayment
- Lists witnesses in possession of relevant information relating to the underpayment
- Identifies where the IRS may look to gather additional evidence to prove the underpayment
- Analyzes any relevant attorney client or accountant client issues concerning any of the evidence provided to the IRS so that IRS knows it is not using documents tainted by privilege issues
Once the initial submission is presented, our firm will continue to work in cooperation with the IRS General Counsel’s Office and the IRS auditors to assist in their investigation, including addressing any relevant legal or accounting issues that arise.
Ensuring You Receive the Highest Reward Possible
The IRS has the discretion to reward the whistleblower between 15% and 30% of its recovery including penalties and interest. The Whistleblower’s Office has published in the IRS Manual a listing of the positive criteria it will consider in determining what percentage award it will apply. To receive the highest percentage reward, it is important that the whistleblower and their counsel continue to work with the IRS on factual, legal, and accounting issues as the case evolves.
Kenney & McCafferty employs a former IRS Revenue agent who has the necessary experience to assist the IRS throughout the investigation. In certain instances, the IRS will allow assistance in proposing appropriate subpoenas and audit plan issues.
At the conclusion of the case, our attorneys will also present a written submission to the Whistleblower’s Office to maximize the percentage awarded.
Appealing Your Award
Once there is an award determination made, the Whistleblower Office will allow your attorney to review the basis for the percentage of your reward. This percentage can be appealed to the United States Tax Court. Our firm will keep records of the cooperation provided throughout the case, which can sometimes last years, so that if an appeal is necessary, we are prepared to present the most compelling argument to the U.S. Tax Court. You should make sure that your firm is prepared and capable of appealing an inadequate award to the U.S. Tax Court.
If you have knowledge of tax underpayment and would like to ensure the greatest likelihood of maximizing your tax reward, please contact our tax whistleblower attorneys today. Kenney & McCafferty will consult with you about your case, without obligation. All communications with Kenney & McCafferty attorneys regarding your case are confidential and protected by attorney-client privilege.