Although anyone can anonymously report something to the IRS1, if you are looking for a monetary award from the whistleblower program, the IRS will not process a whistleblower claim if it is submitted anonymously.
Similarly, the IRS will not process a whistleblower claim submitted using an alias2. However, the IRS emphasized its commitment to protect whistleblowers’ identities who submit information per Internal Revenue Code (IRC) §7623.
According to the Preamble of the 2014 Regulations:
The final regulations reflect the determination of Treasury and the IRS that preventing the disclosure of whistleblower information is of critical importance not only to whistleblowers, but also to the IRS’s whistleblower program. The IRS has implemented a multi-level review process to ensure that the identities of whistleblowers are disclosed only after careful consideration. The IRS will continue to use its best efforts to prevent disclosures and to provide notification prior to any disclosure. . . .3
Additionally, these same regulations clarify that:
Under the informant’s privilege, the IRS will use its best efforts to protect the identity of whistleblowers. In some circumstances, the IRS may need to reveal a whistleblower’s identity, for example, when it is determined that it is in the best interests of the Government to use a whistleblower as a witness in a judicial proceeding. In those circumstances, the IRS will make every effort to notify the whistleblower before revealing the whistleblower’s identity.4
The Internal Revenue Manual (IRM) also instructs the IRS to protect whistleblowers who are designated by the IRS as “confidential” whistleblowers in accordance with IRC §6103(h)(4).5 Significantly, that code section allows disclosure of identities in certain situations unless the Secretary determines that it would identify a “confidential informant.”6 Treating a whistleblower as a “confidential informant” offers protection in circumstances where the identity would typically be revealed.
In April 2017, the IRS published a Notice providing procedures for Chief Counsel attorneys to obtain approval to disclose a whistleblower’s identity.7 The Notice emphasizes that:
Treasury Regulation 301.7623-1(e) states that the Service will use its best efforts to protect the identity of whistleblowers. The regulations also recognize that in some instances it may be necessary to reveal a whistleblower’s existence or identity. Id. For example, Counsel may not be able to defend the Service’s adjustments without revealing the existence or identity of a whistleblower (e.g., whistleblower is an essential witness in a judicial proceeding). In those instances, Counsel will carefully consider and weigh the potential risks to the whistleblower and the Government’s need for the disclosure, and look for alternative solutions. Counsel has implemented a multi-level approval process detailed below to ensure that disclosure occurs only after careful consideration and high level approval.
The Notice and the regulations also clarify that when disclosure is deemed necessary, the IRS will make every effort to notify the whistleblower before disclosing his or her identity.8
- For a list of reportable items and the corresponding forms used to make the reports, go to https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity.
- See IRS, How Do You File a Whistleblower Award Claim Under Section 7623(a) or (b).
- Preamble, T.D. 9687, 79 Fed. Reg. 47,246 (Aug. 12, 2014).
- Reg. §301.7623-1(e).
- IRM 25.2.2.9 (01-12-18).
- Id.; §6103(h)(4), IRC §6103(d)(1).
- CC-2017-005.
- Id.; Reg. §301.7623-1(e).