IRS Offers More Incentives for Tax Whistleblowers

Washington, D.C. -- The Internal Revenue Service has expanded its awards to whistleblowers, allowing tipsters to claim a potentially greater share of the proceeds the agency collects on extra tax revenue.

The regulations provide guidance on submitting information regarding underpayments of tax or violations of the tax laws and filing claims for an award, along with the administrative proceedings applicable to claims for whistleblower awards. The regulations also provide guidance on the determination and payment of awards, and provide definitions of some key terms used in Section 7623.

The regulations also confirm that the director, officers and employees of the IRS Whistleblower Office are authorized to disclose return information to the extent necessary to conduct whistleblower administrative proceedings. The regulations provide needed guidance to the general public, as well as officers and employees of the IRS who review claims under Section 7623.

Collected proceeds can include tax, penalties, interest, additions to tax, and additional amounts collected by reason of the information provided; amounts collected prior to receipt of the information if the information provided results in the denial of a claim for refund that otherwise would have been paid; and a reduction of an overpayment credit balance used to satisfy a tax liability incurred because of the information provided.


Warning Letters on PTINs

Washington, D.C -- The IRS Return Preparer Office mailed letters in early August to approximately 5,000 preparers who are preparing returns without valid PTINs.

The letters provide the online site to register for a new PTIN, information needed to do so and information on how to pay the annual user fee. Anyone who prepares or assists in preparing federal tax returns for compensation must have a valid 2014 PTIN before preparing returns. All enrolled agents must also have a PTIN. Renewals for the 2015 filing season will begin in mid-October.

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