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- Form 211 Rewards
- Special Agreements
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- Whistleblower Anonymity
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For a free case evaluation, please complete the form below. If you'd like to speak with a lawyer immediately, call 1-800-533-1015.Special Agreements
The IRS will sometimes enter into a written contractual agreement with a whistleblower, known as a “Special Agreement”. The IRS enters into Special Agreements only in exceptional circumstances involving large underpayments of taxes. ,The terms of a Special Agreement may vary but they often guarantee a specific percentage of the monies recovered to the whistleblower.
Potential Benefits of A Special Agreement
- Special Agreements often provide that the IRS will pay to the whistleblower a specific percentage of the monies recovered as a result of the whistleblowers information. Thus the Special Agreement removes the IRS’ discretion to issue a reward of anywhere from 1% to 15% of a recovery that currently exists under the form 211 program.
- Special Agreements can raise the limits on rewards above the $10 million cap that currently exists under the IRS Form 211 program and can also raise the percentage of the reward above the 15% limit currently in existence under the Form 211 program.
- Special Agreements are written contracts and therefore can be enforced against the IRS by the whistleblower if the whistleblower does not believe that the IRS has complied with the terms of the Special Agreement.
Negotiating a Special Agreement
Special Agreements create specific obligations on the part of the Government and the negotiation and approval process is complex. For instance, the Special Agreements should be negotiated with the IRS before the whistleblower provides all information to the IRS, and yet the IRS must be provided sufficient information to agree to the terms of the Special Agreement. There are various means through which this can be accomplished, but those means should be agreed to in advance before the whistleblower’s representative contacts the IRS to discuss the terms of a Special Agreement.
Whistleblower Anonymity
As with the Form 211 Program, the IRS has given formal assurances that it will not disclose the identity of whistleblowers to unauthorized persons. Under the Special Agreement procedure, whistleblowers may enter into a contractual arrangement with the IRS without revealing their identity in the first instance. (An intermediary, such as an attorney, may be used). However because Special Agreements require by their terms that the whistleblower will cooperate with the government, the whistleblower may be required to disclose his or her identity to the Government during its investigation and resolution of the alleged scheme.
There are, however, limited circumstances in which the identity of the whistleblower can become known. You should discuss these possibilities with your attorney or directly with the IRS. For instance, if a whistleblower is called to testify in a proceeding against the taxpayer, the fact that the whistleblower is entitled to a reward must be disclosed.
