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Quentin818
Level 2

SOLICITING IRS WHISTLEBLOWER ADVICE

I am contemplating whether to file an IRS “whistleblower” form 211 (Application for Award for Original Information) based on what I believe to be an unlawful accounting practice by a national financial institution.

 

I am unclear as to whether form 211 is appropriate in this circumstance because the institution, AFAIK, is not benefiting financially, rather, this practice is causing tax issues for a significant minority of its clients who end up incorrectly paying either more or less tax than is owed.

 

Thus, it is not clear to me whether the firm can be considered a “tax cheat.”

https://www.irs.gov/compliance/whistleblower-office#claim

 

The firm is well aware of these violations and gets away with them because it seems that even the few clients who realize something looks wrong receive plausible but incorrect answers from the firm.

 

Formal complaints are met with responses that not only avoid but refuse to acknowledge the central issue, instead responding with related but extraneous information. After two or three follow ups by the client, communication is abruptly cut off by the firm.

 

I would appreciate advice from anyone familiar with the IRS whistleblower process and whether or not it might be worth the effort to file a report.

1 Best answer

Accepted Solutions
tagteam
Level 15

SOLICITING IRS WHISTLEBLOWER ADVICE

On principle, you are on the right track (assuming you believe it is worth your time and effort).

 

If you are, by chance, hoping for some sort of monetary award, you should know that (a) the cases generally take years to resolve and (b) an award can only be paid from proceeds collected. 

 

Further, although it was many years ago and I forgot the exact percentage, the percentage of cases where awards have actually been paid is very low (at least it used to be, as I recall, well under 20%).

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2 Replies
tagteam
Level 15

SOLICITING IRS WHISTLEBLOWER ADVICE

On principle, you are on the right track (assuming you believe it is worth your time and effort).

 

If you are, by chance, hoping for some sort of monetary award, you should know that (a) the cases generally take years to resolve and (b) an award can only be paid from proceeds collected. 

 

Further, although it was many years ago and I forgot the exact percentage, the percentage of cases where awards have actually been paid is very low (at least it used to be, as I recall, well under 20%).

Quentin818
Level 2

SOLICITING IRS WHISTLEBLOWER ADVICE

Thank you for that information. My primary goal is to force the firm to stop feeding BS to me and to others, properly report on my taxable transaction, and fix their accounting for everyone else (I estimate tens of thousands of clients over the years).


There is another form, 3949-A, Information Referral, that might get a faster response. I am attempting to exert maximum pressure...


But, even that may not be necessary since the Securities Division of one state forwarded my complaint to the IRS which has acknowledged it. Of course, this could have the effect of scuttling any form 211 whistleblower complaint as it then would not contain "Original Information."

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