IRS Whistleblower Program: FAQ for International Whistleblowers

What is the IRS Whistleblower Program?

Established by the Tax Relief and Health Care Act of 2006, which created the IRS Whistleblower Office, the IRS Whistleblower Program pays monetary awards —between 15% and 30% of the collected proceeds—to individuals who provide specific, credible, and original information about significant tax noncompliance.

Since 2007, the program has collected more than $7 billion in back taxes, penalties, interest, and criminal fines based on whistleblower information, and has paid out over $1.3 billion in awards to whistleblowers. In fiscal year 2024 alone, the IRS paid approximately $123.5 million in awards based on $474.7 million collected—making it the third-highest award year in the program’s history.

Whistleblower do not need to be U.S. citizens or residents to participate. The IRS Whistleblower Program is open to any individual, anywhere in the world, who has information about tax violations involving U.S. taxpayers or entities subject to U.S. tax law.

In fact, the most recent IRS data says that at least 97 whistleblowers from outside the United States have filed claims under the program. This makes it one the most effective transnational laws available to those with credible information.

Collected Proceeds. What are they?
The Bipartisan Budget Act of 2018 expanded the definition of “collected proceeds” to include criminal fines, civil forfeitures, and penalties—not just tax underpayments.

What Types of Tax Violations Can International Whistleblowers Report?

International whistleblowers are uniquely positioned to report a wide range of tax violations that involve cross-border financial activity. The IRS Whistleblower Program covers any violation of laws the IRS is authorized to administer, enforce, or investigate. Common categories of reportable violations with international dimensions include:

Offshore Tax Evasion and Hidden Accounts

U.S. taxpayers are required to report all income generated, regardless of the source, and disclose all foreign financial accounts — including cryptocurrency.

Whistleblowers who have credible knowledge of U.S. citizens or residents hiding assets in offshore bank accounts, foreign trusts, or shell company structures can file claims under the program.

The IRS has honored whistleblowers since the program’s inception, saying whistleblowers provide “invaluable insights into violations perpetuated by large corporations, wealthy individuals, and their planners,” including undisclosed offshore assets.

Cryptocurrency and Digital Asset Tax Fraud

The IRS classifies cryptocurrency and digital assets as property for tax purposes, meaning that any capital gains, income, and other digital transactions are fully taxable.

However, billions of dollars in income related to crypto go unreported each year. Whistleblowers who know of individuals or entities using mixing services, offshore exchanges, or shell companies to evade taxes on digital assets can file claims with the IRS.

Other Reportable Violations

Any violation where the IRS can collect taxes, penalties, or fines may qualify for a whistleblower award. Below are a few additional examples:

• Employment Tax Fraud: Misclassifying workers as contractors, paying employees “off the books” through foreign entities, or failing to withhold payroll taxes on compensation routed through offshore structures.
• Abusive Tax Shelters: Syndicated conservation easements, micro-captive insurance arrangements, or other listed/reportable transactions that use foreign entities to generate income or acquire assets.
• Digital nomad tax noncompliance: A growing area where individuals earning substantial income remotely claim they owe no U.S. taxes by exploiting ambiguities around residency and source-of-income rules.
• Estate and Gift Tax Evasion: Failure to report large gifts from foreign or hiding assets from estate tax through offshore structures.

How Do Whistleblower Awards Work?

There is a two-tier award structure established by Internal Revenue Code Section 7623:

Section 7623(b) — Mandatory Awards

The IRS is required to pay mandatory awards between 15% and 30% of the collected proceeds that are attributed to a whistleblower’s information. However, the tax, penalties, interest and other amounts disputed must exceed $2 million. If an individual taxpayer, their gross income must exceed $200,000.

Award percentages are determined by several factors set forth by the IRS, which include the significance of the information, the degree to which the whistleblower assisted the IRS, and the value of the information relative to other sources.

For example, if the IRS determines that the whistleblower planned or initiated the violation, the award may be reduced to no more than 15%. But if they contributed to the investigation, that number might jump up to 30%, but no more.

Section 7623(a) — Discretionary Awards

For cases that do not meet the $2 million threshold, the IRS retains discretion to pay awards of up to 15% of collected proceeds. Awards under this provision are not appealable to the U.S. Tax Court.

Record-Setting Award for Our Client

The largest individual award in the program’s history for $104 million was obtained by our attorneys, paid to former UBS banker Bradley Birkenfeld — a case that originated from information about illegal offshore accounts held by U.S. citizens in Switzerland.

Who is Eligible to File for Awards?

The IRS Whistleblower Program is open to everyone and anyone, so long as they meet the criteria within Section 7623(b). Whistleblowers do not have to be U.S. citizen, resident, or within the United States to file a claim.

Whistleblowers do not need to be an employee of a company evading taxes either; the program accepts claims from bankers, accountants, compliance professionals, business partners, family members, former spouses (which happens often) and any other individual with direct knowledge of tax noncompliance.

Who is ineligible for awards?

• Current or former U.S. Treasury employee who obtained information while employed.
• former U.S. Treasury employee who obtained information while employed.
• Federal employee who obtained information from their role.
• Individual required or prohibited by law from disclosing the information.
• Individual with a contract to access the information.
• Individual filing a claim based on information from an ineligible whistleblower.

Even the Individuals Involved Can Qualify

Even individuals who played a role in the tax fraud can be eligible for an award. The Birkenfeld case established this precedent clearly — despite having been convicted and imprisoned for his role in the UBS scheme, Birkenfeld still received the program’s largest-ever award. However, if the IRS determines that the whistleblower planned or initiated the underlying violations, the award percentage may be reduced.

How Do I File an IRS Whistleblower Claim?

To file a claim, you must complete and submit IRS Form 211, Application for Award for Original Information. The form requires:

• The name, address, and taxpayer identification number (if known) of the person or entity you are reporting
• A detailed written narrative describing the alleged tax noncompliance and explaining why you believe it constitutes a violation of tax law
• Supporting documentation such as copies of financial records, ledgers, contracts, emails, or other evidence
• A description of any documents or evidence not in your possession and their location
• An explanation of how and when you became aware of the information
• Your relationship (current or former) to the subject of the claim
• Your original signature under penalty of perjury

The form can be submitted online through the IRS’s secure portal or by mail to the IRS Whistleblower Office in Ogden, Utah.

International whistleblowers should be aware that unlike the SEC whistleblower program, the IRS does not permit anonymous filing. However, the IRS fully protects the identity of whistleblowers permitted by law under IRC Section 6103.

Why Legal Representation Matters

While the IRS does not require you to have an attorney, retaining an experienced whistleblower attorney is strongly recommended. This is especially true for international cases involving complex offshore structures, multi-jurisdictional accounts, or cryptocurrency.

An attorney can help

• Ensure your Form 211 presents the strongest possible case.
• Navigate privilege and evidentiary issues.
• Advocate on your behalf throughout the lengthy process.
• File for award claims and help negotiate percentage.

If the IRS determines that disclosing a whistleblower’s identity is essential to an investigation, the IRS will inform the whistleblower before proceeding — giving you and your counsel an opportunity to assess the situation.

What Protections Are There from Retaliation?

The Taxpayer First Act (TFA), signed into law on July 1, 2019, introduced the first dedicated anti-retaliation protections for IRS whistleblowers.

Under the TFA, no employer may discharge, demote, suspend, threaten, harass, or discriminate against an employee for providing information about tax law violations to the IRS, to a supervisor, or to any person with authority to investigate misconduct.

Remedies available to whistleblowers who experience retaliation include:

• Reinstatement with the same seniority status
• 200% of back pay plus 100% of lost benefits, with interest
• Compensation for special damages, including litigation costs, expert witness fees, and reasonable attorney fees
• Right to a jury trial in federal court
• Invalidation of mandatory arbitration agreements for retaliation claims

International Reach

Anti-retaliation protections under the TFA apply to employers subject to U.S. jurisdiction. If you are employed outside the United States by a foreign entity, the applicability of these protections may depend on your specific circumstances.

If you’re unsure of your rights, contact a International Whistleblower Advocates IRS whistleblower attorney for a free consultation to help evaluate your information.

Landmark International Cases

The IRS Whistleblower Program has led to many successful outcomes. These cases demonstrate that international whistleblowers are not just eligible — they are essential to the program’s success.

[IWA Partners Case] Bradley Birkenfeld and UBS (2012)

Former UBS banker Bradley Birkenfeld disclosed that the Swiss bank was systematically helping U.S. taxpayers conceal assets in offshore accounts to evade taxes. His information led to UBS paying $780 million in fines and penalties. Birkenfeld received a $104 million award—  the largest individual whistleblower award in IRS history at the time.

The case also triggered the IRS’s Offshore Voluntary Disclosure Program, through which thousands of additional taxpayers came forward and paid billions in back taxes.

Credit Suisse and UBS (2025)

In one of the most significant developments of 2025, whistleblowers connected to the long-running Credit Suisse and UBS investigations are expected to share up to $150 million in awards from a $511 million DOJ and IRS settlement involving offshore tax evasion.

This case further illustrates the increasingly global nature of tax whistleblowing and the enormous financial impact of insider information from foreign financial institutions. Whistleblower disclosures related to Credit Suisse and other institutions brought to light over $300 million in secret offshore accounts.

These landmark cases reinforce a key principle: whistleblower programs that provide clear, mandatory financial rewards and strong confidentiality protections consistently outperform systems that rely solely on moral appeals or voluntary compliance.

For related enforcement in the bribery and corruption space
FCPA Whistleblower FAQ

Cryptocurrency and Digital Assets Under IRS Tax Code

Cryptocurrency tax enforcement is emerging as a priority for the IRS. The agency treats digital assets such as Bitcoin, Ethereum, stablecoins, NFTs, and tokenized assets as property for tax purposes.

This means that every transaction can trigger a taxable event. Yet enforcement has lagged technology, creating significant opportunities for informed whistleblowers who may be a boon for the IRS in the coming decade.

IRS Enforcement Escalation

The IRS has taken steps to address crypto tax evasion. Operation Hidden Treasure, a partnership between the IRS’s Office of Financial Enforcement and Criminal Investigation division, was designed to identify taxpayers who fail to report cryptocurrency income.

The IRS has issued John Doe summonses to major exchanges including Coinbase and Kraken, requiring them to produce records on large-volume traders. In 2024, the agency secured its first-ever criminal conviction focused solely on cryptocurrency tax evasion.

What Crypto Whistleblowers Can Report

Examples of cryptocurrency-related tax fraud that may qualify for a whistleblower award include:

• Unreported or underreported capital gains from crypto sales
• Unreported income paid in cryptocurrency
• Use of mixing or tumbling services to obscure transaction trails
• Transfers to shell companies or offshore accounts to conceal beneficial ownership,
• Failure to answer the digital asset question on Form 1040
• Manipulation of cost basis calculations.

For related reporting on financial crimes involving digital assets, see the AML/FinCEN Whistleblower FAQ, which covers anti-money laundering violations including those involving cryptocurrency.

Frequently Asked Questions

Can I file an IRS whistleblower claim anonymously?

No. Unlike the SEC and FinCEN whistleblower programs, the IRS does not allow anonymous filing. Form 211 must include your original signature under penalty of perjury.

The IRS does protect whistleblowers under strict confidentiality provisions of IRC Section 6103. If the IRS determines that revealing your identity is necessary for an investigation, it will notify you before proceeding.

How long does the IRS whistleblower process take?

IRS whistleblower cases often take several years to resolve. Tax audits, investigations, and the subsequent collection process can be lengthy, and awards cannot be paid until the target taxpayer has exhausted all appeal rights.

Can compliance officers file whistleblower claims?

Generally, yes. There is no blanket exclusion for compliance officers, though the initial review process will examine whether any information was obtained through a privileged relationship. If you are a compliance professional considering filing, an experienced IWA whistleblower attorney can help you navigate these issues.

What if I was involved in the tax fraud?

You can still be eligible for an award. The Birkenfeld case that IWA partners were behind established that even individuals convicted for their role in a scheme can qualify for whistleblower awards. However, if the IRS determines that you planned or initiated the violation, your award may be reduced to no more than 15% of collected proceeds.

Can I appeal the IRS’s award decision?

For claims filed under Section 7623(b) — the mandatory award provision for cases exceeding $2 million — whistleblowers may appeal the award determination to the U.S. Tax Court within 30 days of the decision. Awards under the discretionary Section 7623(a) provision are not appealable.

How is the IRS program different from the SEC or FinCEN programs?

The IRS program covers tax violations, while the SEC program covers securities law violations and the FinCEN program covers anti-money laundering and sanctions violations.

Key differences include:

• The IRS does not allow anonymous filing (the SEC does, through an attorney); the IRS threshold for mandatory awards is $2 million in tax, penalties, and interest (the SEC threshold is $1 million in sanctions); and
• The IRS program has longer processing times on average. In some cases, the same underlying conduct may be reportable to multiple programs—for example, offshore tax evasion may also involve securities fraud or money laundering.

An experienced whistleblower attorney can help you determine which program or programs are most appropriate. For detailed information on these related programs, see the SEC Whistleblower FAQ and the AML/FinCEN Whistleblower FAQ.

Is there a statute of limitations?

There is no specific statute of limitations for filing a whistleblower claim with the IRS.

However, the IRS must be able to act on the information — meaning that if the tax assessment statute of limitations has expired for the relevant tax years, the information may no longer be actionable.

In cases involving fraud, there is generally no time limit for the IRS to assess tax.

What about the FY2026 sequester?

The IRS Whistleblower Office has issued a notice that a sequestration rate will apply to award payments during fiscal year 2026 (effective October 1, 2025).

This means that a small percentage of award payments may be reduced due to automatic federal spending cuts. The Whistleblower Office provides annual sequester notices with specific rate information.

Quick Facts: IRS Whistleblower Program

Have Information About Tax Fraud or Offshore Tax Evasion?

IWA’s founding attorneys secured the largest IRS whistleblower award in history — $104 million to Bradley Birkenfeld for exposing offshore tax evasion at UBS. We know this program because we helped define it. If you have information about tax fraud, offshore evasion, or FATCA violations, we can help. Request a confidential consultation today.