Boba Fett May Find Work With the IRS: Bounties Double Under 26 U.S.C. § 7623

Boba Fett Poster Card The Tax Relief and Health Care Act of 2006, (26 U.S.C. § 7623), provides additional incentives for those who come forward with information about individuals or other tax entities who have underpaid their taxes. The IRS has had an informant-reward program since 1954, but the provision was not used extensively by qui tam lawyers (a.k.a. bounty hunters) because the government was free to deny a reward, or bounty. Under the new law, a whistleblower can file an appeal with the U.S. Tax Court to enforce her right to a reward. This reward may be up to 30% of the ammount recovered by the IRS.  The jurisdictional minimum for the new law is $2 million, including taxes, interest, and penalties.


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