Tax Whistleblowers — Increasing Your Award Percentage: Tax Court Decision In Luu Provides Illumination

One of the happier problems for a tax whistleblower is turning to think about the percentage they may receive as an award from the IRS. Under the statute – 26 USC 7623(b)(1) – a tax whistleblower may receive 15 – 30% of the collected proceeds. For tax whistleblowers the challenge is how do they get their award closer to 30%? A recent Tax Court case: Luu v. CIR TC Memo. 2022-126 (2022) provides some useful guidance and builds on what I’ve found in practice.

Getting A Higher Percentage – Let’s Start At The Very Beginning