Once a whistleblower is eligible for an award (i.e., once the IRS has begun an administrative or judicial action based on the whistleblower’s information; and there are collected proceeds) the IRS then undertakes an award percentage computation.
For I.R.C. § 7623(b) cases, Treas. Reg. § 301.7623-4(c) states that the IRS whistleblower Office must start the analysis at 15%. Then applying the positive factors to the administrative claim file, the analyst can determine an award percentage increase to 22 percent and/or 30 percent. The analyst, upon applying any negative factors, can also determine a decrease of the percentage to 26%, 22% 18% and all the way down to 15%.
There is no exact formula to determine the award payable to a whistleblower, only guidelines the IRS will consider in determining an award. Those guidelines are found in Treas. Reg. § 301.7623-4.Read More