 |
25.2.2.1
(12-30-2008)
Overview: Authority and Policy
-
This section outlines the cross-functional procedures for working case files with a Form 211, Application for Award for Original Information.
-
On December 20, 2006, the Tax Relief and Health Care Act of 2006 was enacted. Section 406 of the Act amends section 7623 of
the Internal Revenue Code concerning the payment of awards to whistleblowers. The amendment made significant changes to the
whistleblower program and also required the establishment of a Whistleblower Office within the Internal Revenue Service that
has responsibility for the administration of the award program.
-
The IRS has generally referred to persons who submit information under section 7623 as "informants"
and referred to the program as the "Informant Claims Program."
The IRS has also referred to such persons as "claimants"
in published guidance, and the law now refers to the "Whistleblower Office"
and "whistleblower program."
Accordingly, the terms "claimant"
and "whistleblower "
will be used in this IRM except where the term "informant "
appears in an office title or published document. However, no legal significance should be inferred based solely on the
use of these terms in this IRM. The 2006 amendments re-designated the prior section 7623 as section 7623(a), which now includes
interest in the collected proceeds, added new provisions as section 7623(b), and included program administration requirements
that were not incorporated into the Internal Revenue Code.
-
The application of new section 7623(b) is limited by certain dollar thresholds. To be eligible for an award under section
7623(b), the tax, penalties, interest, additions to tax and additional amounts in dispute must exceed in the aggregate $2,000,000.
If the taxpayer is an individual, the individual’s gross income must exceed $200,000 for any taxable year at issue.
Note:
If the thresholds in 7623(b)(5) are not met, section 7623(a) authorizes, but does not require the Service to pay for information
that result in the government’s recovery of taxes, penalties, interest, additions to tax, and additional amounts.
-
The requirement that claims be paid from collected proceeds generally means that payment cannot be made for several years
after the information is submitted, because the underlying taxpayer’s case (including any appeals) must be resolved.
-
Effective July 1, 2008, the decision on the payment of an award and the percentage of the award, including those under section
7623(a), will be made by the Director, Whistleblower Office.
-
Throughout this Section, policy covering pre-enactment claim files, claims submitted prior to December 20, 2006, will be
referred to as such.
|
|
|
