Daily Tax Update - August 7, 2014: IRS and Treasury Release Whistleblower Regulations

IRS and Treasury Release Whistleblower Regulations:  The IRS and Treasury Department released final rules today providing comprehensive guidance for the award program authorized under Section 7623.  Generally, Section 7623 provides that qualifying whistleblowers will receive an award of at least 15 percent, but not more than 30 percent, of the collected proceeds resulting from the action with which the Secretary of the Treasury proceeded based on the information provided to the IRS by the whistleblower.  The regulations focus on three major elements of the program: (i) the submission of information and filing of claims for award; (ii) the whistleblower administrative proceedings applicable to claims for award under Section 7623; and (iii) the computational determination and payment of awards.  The regulations also provide definitions of key terms under Section 7623, such as “collected proceeds,” and 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.