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US IRS Names Director Of New Whistleblower Office February 3, 2007

Posted by notapundit in US News.

WASHINGTON (AP)–The Internal Revenue Service on Friday named a new whistleblower chief to oversee a program where individuals can reap substantial rewards by exposing tax cheats.

The U.S. tax agency said that Stephen A. Whitlock, currently deputy director of the IRS Office of Professional Responsibility, would head the new Whistleblower Office established by Congress in legislation enacted last December.

The legislation provides rewards of between 15% and 30% of money recovered if the IRS moves forward with administrative or judicial action based on tips that a business or individual isn’t paying the proper amount of taxes owed.

The IRS previously had the authority to reward people who expose tax fraud, but the payment was capped at 15% of the amount recovered and congressional critics said the agency lacked an effective system for administering the program.

“This is long overdue,” Sen. Charles Grassley, R-Iowa, said when the whistleblower provision he promoted was enacted last December. “One well-positioned whistleblower could expose millions of dollars of fraud. It might take IRS auditors years to catch that much cheating on their own.”
It was estimated that the provision could raise $32 million over five years and $182 million over 10 years.

Before joining the IRS, Whitlock directed several Pentagon programs involving the identification and investigation of fraud, waste and abuse.


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