Today’s CFO Journal reported that a warning from the Public Company Accounting Oversight Board (“PCAOB”) late last year has resulted in much more stringent external audits being conducted by auditors of public companies.  PCAOB has been auditing the auditors to make sure public companies’ financials are not being rubber stamped.  Increased audit scrutiny can be a great thing for potential IRS whistleblowers.  When auditors take a closer look at uncertain tax positions this can result in far greater detail being in the tax accrual workpapers.  As we have noted in the past, Schedule UTP has done little to change company behavior.  Knowledgeable insiders with access to a company’s tax accrual workpapers could provide extremely useful information to the IRS and be rewarded handsomely.  Large companies maintain billions of tax reserves to account for tax positions where the company believes the IRS is more likely to prevail on the issue than the company.  We know firsthand that IRS whistleblowers with access to information about the tax positions that make up those reserves can successfully present a submission to the IRS.  Now, more than ever, there are great opportunities for a tax department insider to make a meaningful impact on the tax gap.

  • Ozy Wolfe

    Come on! This IRS whistleblower thing is dead, and let’s bury it now. Good try but Corporate America wins again. The IRS doesnt want and never wanted this thing and have beaten it. They never wanted it because it shows up their absolute inability to do their job. The Beanie Baby guy gets parole because he can pay for good legal rep. and the snooks (like me) go to jail if he we hold money in a Swiss account, and Google holds money in shells and gets away with it? Must make sense to someone

  • We respectfully disagree and can think of tens of millions of reasons why being an IRS Whistleblower is a great idea. (See https://www.taxwhistleblowerreport.com/award-determinations/irs-whistleblower-awarded-38-million/ ). The first step towards correcting injustice is speaking out against it. This requires those with information about large-scale tax underpayments to come forward.

  • Bubba Shawn

    Greg is right on all points. There are many trials that IRS whistleblowers must endure because of the lack of resources the IRS has available to do the audits in a timely way. Now that we have an IRS Commissioner that “strongly believes in the concept of whistleblower programs”, perhaps IRS whistleblowers, like me, will be treated fairly and actually get paid timely – although that has expired years ago.

    I know that I am going to get paid. I also know that the IRS staff working in the IRS Whistleblower Office are decent Americans who also want to get those awards paid. Their problems are our same problems. That is they don’t control when the audits are started nor the scope of those audits. Neither do they control the terms of payments that the tax cheats enter into with IRS Collections.

    The problems plaguing the IRS whistleblowers are well known, detailed and generously shared by the Ferraro Law Firm, and are way too long to list in this comment. However, I truly believe that the bad times are behind us now that Commissioner Koskinen is calling the shots.

    Only getting my award paid and time will confirm my beliefs.