Understanding the IRS Whistleblower Program
Understanding the IRS Whistleblower Program
For decades, the IRS has sought to close the tax gap—the difference between what taxpayers should pay and what’s actually collected. Under IRS whistleblower law, authorized by Section 7623(b) of the Internal Revenue Code, qualifying individuals can submit information about tax violations when certain criteria are met.
Why the Program Exists
When individuals or corporations deliberately avoid paying taxes, the federal government loses revenue. Whistleblower submissions that provide specific and credible evidence enable the IRS Operating Divisions to pursue administrative or legal action. This helps recover hidden funds from foreign bank accounts, underreported tax returns, and other forms of tax underpayment.
Who Is Eligible to File a Claim
Generally, anyone—from employees and accountants to business partners and family members—may be eligible whistleblowers if they have credible evidence about tax noncompliance. However, an ineligible whistleblower might include government employees with direct official access to certain protected data, or individuals who base their tip on privileged legal communications.
Rewards and Award Determination
Under the IRS award program, the IRS whistleblower attorney helps present the whistleblower’s information. If the IRS collects from the taxpayer due to that evidence, the whistleblower can earn an award between 15 – 30% of the proceeds the IRS collects, as determined by the complexity of the case and the extent of cooperation. Following an investigation and award determination, awards paid can be significant, especially in large-scale tax evasion.
40 Years of Fierce Representation
40 Years of Fierce Representation
How We Can Help You
How We Can Help You
Personalized Assessments
Our tax whistleblower attorneys begin with a detailed consultation to determine if you have specific and credible information pointing to tax fraud or tax evasion. We’ll advise whether your case meets IRS whistleblower program guidelines under Section 7623(b) or other relevant tax law.
Comprehensive Evidence Gathering
From analyzing bank accounts and corporate tax returns to reviewing internal documents showing misclassification of gross income or other tax noncompliance, we collect and organize supporting evidence so the IRS can conduct further investigation.
Nationwide & International Reach
We represent whistleblowers worldwide involving complex domestic or international tax violations. We understand how the IRS collaborates with foreign authorities and the potential for criminal investigation division action.
No Upfront Fees
Typically, our services operate on a contingency basis—meaning attorney fees are taken from a portion of the whistleblower’s information award if the IRS decides to pay out.
Compassionate Guidance
We understand how daunting it can be to file a claim against a powerful entity. Our attorneys protect your confidentiality where possible and that you understand the potential paths if the IRS opts to open an administrative or criminal action.
What We Handle
What We Handle
Ferraro Law represents clients in a wide range of tax whistleblower cases:
High-Level Tax Fraud
Whether it involves wealthy individuals, Fortune 500 companies, or complex financial schemes, we assist clients in uncovering major tax underpayment or hidden gross income.
Underreporting & Tax Evasion
Our firm examines financial records, verifying if parties intentionally avoid paying taxes by failing to disclose relevant tax returns or misrepresenting revenue streams.
False Tax Returns & Tax Noncompliance
We focus on cases where taxpayers file misleading returns or omit key data violating internal revenue laws. IRS tax fraud can trigger significant fraud penalties if proven.
IRS Whistleblower Program Claims
In accordance with Section 7623(b), we build and file whistleblower submissions, compiling specific and credible evidence to be presented to the IRS whistleblower office.
Civil Forfeitures & Criminal Prosecution
If further investigation reveals criminal wrongdoing, the IRS can impose criminal penalties and restitution, which may result in collected proceeds benefiting the whistleblower through whistleblower rewards.
Deciding Whether to Hire a tax Whistleblower Attorney
Deciding Whether to Hire a tax Whistleblower Attorney
If you suspect significant tax evasion or tax avoidance, you may wonder whether hiring legal counsel is necessary. A skilled tax whistleblower attorney can provide critical guidance to protect your interests and strengthen your case. They can help safeguard your confidentiality, address concerns about retaliation when exposing powerful individuals or businesses, and work to keep your identity protected whenever possible.
An attorney can also navigate the complexities of the IRS Whistleblower Program, crafting your submission to the whistleblower office or relevant IRS division. Properly structuring your whistleblower claim can also increase your share of collected proceeds—up to 30% in some cases. If your evidence uncovers broader misconduct, such as violations tied to relief or health care programs, or securities law violations, your attorney can coordinate with federal agencies and explore additional avenues like false claims litigation to address the full scope of wrongdoing.
Compensation for Whistleblowers
Compensation for Whistleblowers
A successful IRS whistleblower claim can result in a financial reward for providing information that leads to the recovery of unpaid taxes or penalties.
Potential compensation may include portions of the proceeds collected, such as:
Unpaid Taxes
The tax revenue recovered by the IRS from individuals or businesses that failed to report or underpaid their taxes.
Criminal Fines & Civil Forfeitures
Penalties imposed for tax noncompliance or intentional evasion, which can include significant financial sanctions beyond the original tax owed.
Interest & Other Amounts
Additional sums, fees, or penalties assessed under the Internal Revenue Code or other federal statutes, such as those for late payments or fraudulent filings.
What to Look for in a Florida Tax Whistleblower Lawyer
What to Look for in a Florida Tax Whistleblower Lawyer
Choosing a lawyer to handle your tax whistleblower case is a crucial decision. As you evaluate potential legal representation, consider the following:
Relevant Experience
Seek a tax attorney who has a history working on tax whistleblower matters, both in Tax Court and within the IRS whistleblower office framework.
Commitment to Personal Attention
Each whistleblower claim is unique so look for a lawyer who tailors an approach that fits your situation.
Resources & Reach
Complex tax controversies often span multiple jurisdictions. A well-equipped law firm can handle international elements and criminal investigation division inquiries.
Contingency Fee & Free Consultation
Whistleblowers should not bear upfront costs. Ask your attorney if they offer a free case consultation and only charge attorney fees upon a successful outcome.
What to Expect When You Partner with Ferraro Law
What to Expect When You Partner with Ferraro Law
Selecting a reputable law firm isn’t just about credentials—it’s about finding a team that places your needs first and understands the legal process from start to finish. At Ferraro Law, we believe in delivering more than legal advice; we offer genuine support, strategic planning, and practical guidance, making sure you never feel adrift in a complex system.
We start with a free, confidential case consultation to understand your unique circumstances and evaluate whether your insider knowledge qualifies for the IRS whistleblower program. Throughout the process, we prioritize your comfort and help you feel fully supported as we navigate this complex journey together.
Our attorneys bring decades of experience, combining it with up-to-date legal insights from the latest rulings and tax relief statutes. Whether addressing changes in whistleblower office procedures or interpreting intricate sections of tax law, we are equipped to guide you with clarity and precision.
Filing a whistleblower claim can be daunting, but we help to simplify the process. From drafting your initial submission to including specific and credible information, we carefully guide you through every step to help the IRS open a thorough and effective investigation.
You don’t need to worry about upfront costs or financial risks when working with us. We operate on a contingency basis, meaning we only collect attorney fees if and when you receive a whistleblower award, which means our success is directly tied to yours.
Terms like “Internal Revenue Code,” “7623(b),” “award claims,” “proceeds based on,” and “collected proceeds” can be overwhelming. We break down these complex concepts into simple, understandable language, empowering you to make informed decisions every step of the way.
Although our primary office is in Florida, we assist whistleblowers across the country. Regardless of location, we provide every client with personalized attention and dedicated support.
Our extensive experience and personalized approach distinguish us as a leading firm in tax whistleblower cases. We are committed to keeping you from feeling overwhelmed by the complexities of the process—our goal is to provide steadfast support and determined advocacy every step of the way.
Client Experiences
Client Experiences
When individuals uncover high-level tax fraud or tax evasion, they turn to Ferraro Law for comprehensive legal strategies. Through detailed analysis and collaboration with financial experts, our firm builds strong cases that guide whistleblowers through the IRS whistleblower program, recovering funds while protecting clients from potential personal repercussions.
“You not only told us it was going to be okay, you showed us that it’s going to be okay.”
SUZANNE
ASBESTOS & MESOTHELIOMA
It has been 12 years since my father passed away. Every time this anniversary comes, it always overwhelms me with a mixture of emotions. On one side, just like most people, I start to reminisce about the great times we had as a family and how I miss it so much. On the other side, I can’t help but remember the pain and suffering he endured the last several months of his life. I believe closure sits right in the middle of these emotions. Closure is always hard when someone you love passes away. To us, closure felt unattainable. It was hard because we did not understand why he was taken from us so soon. Collectively as a family we felt that he never needed to suffer the way that he did. When I start to think about closure, part of me thinks about James Ferraro Jr. and The Ferraro Law Firm. My mother found the law firm while my father was still alive. She had inquired about possibly finding out, and holding accountable, those individuals and/or companies that had contributed to my father’s illness. They went to work for my mother immediately and inevitably helped her find a little piece of closure that she so desperately needed following his death. As I have always said, no amount of money could ever replace my father. However, because of the tireless work of James Jr. and the rest of the firm, my mother was able to move forward with her life. She moved forward knowing she would be okay, our family would be okay, and that those responsible were held accountable. Fast-forward to today and I still think about James Jr. and the firm during this anniversary. I cannot stress enough the amount of appreciation my family and I have for them and what they did for us.
David, we thank God everyday for you coming into our lives. We wish you all the love, health, wealth and happiness and the best to come.
S.L. & Y.L.
You have brought joy (to say nothing about funds) to our humble home. You continue to act on my behalf relentlessly and I thank you for that.
B.G.
The Steps Your Attorney Will Take
The Steps Your Attorney Will Take
Once you decide to hire a tax whistleblower attorney, they will guide you through a clear, step-by-step process:
1
free Initial Consultation
During your free initial consultation, we carefully review the information you provide, assess potential underreported tax obligations, and determine if there’s a strong basis for an IRS whistleblower claim. This step provides clarity and confidence as you move forward.
2
Investigation & Evidence Gathering
We gather and organize key documents, such as tax returns, records of hidden bank accounts, statements of gross income, or other evidence that may indicate fraudulent or improper activity. This process helps build a compelling case.
3
Claim Preparation & Filing
We prepare your whistleblower submission, referencing code Section 7623(b), and file it with the appropriate IRS office along with thorough supporting evidence.
4
IRS Review & Potential Further Investigation
The whistleblower office or criminal investigation division evaluates your claim. If they confirm wrongdoing, they may initiate enforcement actions or federal court cases.
5
Award Determination & Payment
Once the IRS has collected from the taxpayer, the IRS decides on your award percentage. We guide you through any dispute or appeals.
6
Ongoing Support & Communication
Even after your claim is resolved, we remain available to assist with any new evidence that may surface or provide guidance if additional administrative or judicial actions occur. Our team is committed to supporting you throughout the entire process and beyond.
Meet Your Tax Whistleblower Attorneys
Meet Your Tax Whistleblower Attorneys
Learn More About Our Team
Our tax whistleblower attorneys combine decades of litigation experience, knowledge of internal revenue laws, and a focus on maximizing each client’s whistleblower reward. At Ferraro Law, you’ll collaborate directly with lawyers who have handled multimillion-dollar controversies, always striving to hold accountable persons guilty of tax wrongdoing.
James L. Ferraro Sr.
For over 40 years, Jim has led high-impact cases against major corporations in asbestos, environmental, and injury litigation—securing billions of dollars and meaningful outcomes for people facing some of life’s toughest challenges.
Angelica L. Novick
Angelica represents clients in commercial, mass tort, and multi-district litigation, including whistleblower actions. With a track record in high-stakes disputes and government investigations, she brings sharp insight to complex matters in state and federal court.
James L. Ferraro Jr.
James handles high-stakes injury and environmental cases, focusing on toxic torts, product liability, and public impact litigation. He leads the firm’s national MDL work and has helped recover tens of millions of dollars for cities, families, and individuals harmed by corporate negligence.
Frequently Asked Questions
Frequently Asked Questions
01.
What if I only have partial data and need more supporting evidence before reporting tax evasion?
Our team can help you assess whether your information meets the specific and credible threshold. Sometimes additional inquiry or a quiet investigation can solidify your claim before filing.
02.
Am I still eligible for the IRS whistleblower program if I participated in the wrongdoing?
Potentially. Each case is unique. The IRS office may reduce or reject an award if the whistleblower is partly responsible, but we can advise on how to proceed responsibly.
03.
How does the IRS decide on the final award percentage?
Factors include the value of your tip to the IRS’s enforcement efforts, whether you had legal obligations to disclose the data anyway, and the thoroughness of your submission. The range is between 15–30% if your information qualifies under section 7623(b) of the Internal Revenue Code.
04.
Can I remain anonymous when I file a claim?
In some scenarios, anonymity is possible, but at the least confidentiality is always maintained. We can explore the most impactful approach based on your situation, the level of risk, and the rules of the IRS whistleblower program.
05.
Do I need to attend a federal court hearing if the IRS pursues criminal or civil actions?
Rarely does the IRS ask a whistleblower to testify in a trial, but if your testimony is desired and only if you want to do so, we’ll prepare and represent you to protect your interests.
06.
Can Ferraro Law handle my case if I live outside of Florida?
Yes, Ferraro Law represents clients nationwide and worldwide. Our experience in complex federal tax matters provides you with effective advocacy, regardless where you live.
have more questions?
glossary of key terms
glossary of key terms
7623(b)
A provision within the Internal Revenue Code governing the IRS whistleblower program, outlining how awards paid are determined.
Collected Proceeds
The total sums the IRS recovers from the taxpayer, including taxes, interest, penalties, and sometimes related amounts.
Specific and Credible Information
Evidence robust enough to justify further investigation by the whistleblower office.
Administrative or Judicial Action
Methods the IRS employs—such as audits or court cases—to retrieve underpaid taxes or penalize misconduct.
Ineligible Whistleblower
Individuals barred from receiving an award, such as government employees accessing confidential info in an official capacity.
What's Next?
what’s next?
If you believe you have credible evidence of tax fraud or other forms of tax noncompliance, Ferraro Law is here to assist you in filing a claim under the IRS whistleblower guidelines. Our team offers a free, confidential case consultation to evaluate your information and determine the best course of action. With our guidance, you’ll navigate every step of the process confidently, so that your tip is presented effectively and receives the attention it deserves. We are committed to helping you make a meaningful impact while protecting your rights throughout the journey.
attorney referral program
attorney referral program
Ferraro Law is nationally renowned for achieving significant settlements in complex personal injury cases. Firms across the country refer clients to Ferraro Law, recognizing our commitment to exceptional service, groundbreaking results, and readiness to tackle cases others find too risky or costly.
