What You Should Know About Becoming an IRS Whistleblower

Updated June 2025

The government knows that employees and contractors are often in the best position to identify corporate financial crimes, including tax fraud. Personnel in the legal, accounting, and human resources departments may begin to recognize potential tax evasion after being asked to engage in certain unlawful conduct, such as misclassifying receipts or hiding cash assets.

Experienced whistleblower claims attorney Peter Katz understands why employees are reluctant to speak up about potential tax crimes, especially if they need their jobs and fear retaliation. Call (609) 849-3179 or confidentially connect with his whistleblower protection team online to discuss three things people should know about serving as an IRS whistleblower in New York.

You Can Receive Whistleblower Protection

The government knows that retaliation would be swift if a powerful employer discovered you shared ‘confidential’ business information with an attorney or the IRS. For this reason, federal law makes it illegal to penalize employees for reporting potential misconduct. This protection extends to all forms of retaliation, including:

• Demotion
• Termination
• Harassment
• Criminal threats
• Hostile work environment
• Unfavorable job-duty changes
• Failure to promote
• Reduction in pay or benefits

Document any alleged retaliation, even workplace gossip that creates hostility, if your employer discovers you contacted a whistleblower lawyer or the IRS. You can receive federal protections and additional compensation for this unlawful conduct.

Substantial Financial Compensation

If you work with a dedicated whistleblower claims attorney, you can qualify to receive a substantial monetary award if your information is helpful to the IRS. This award can amount to between 15% and 30% of all proceeds, including back taxes and penalties, collected due to your information. The law also accounts for attorneys’ fees and certain expenses.

Failing to Act Could Bring Charges in New York

When companies cross the line between legal tax avoidance and tax crimes, this may subject employees to IRS investigations and potential criminal penalties. Even if you feel pressure, fearing job loss is not a defense to aiding and abetting tax crimes. You will be implicated if another employee blows the whistle before you do, especially if you had reason to believe you were participating in the fraud.

While an experienced NY tax crimes defense lawyer can help negotiate a favorable plea deal in such cases, especially in information exchange, do not hesitate to contact a whistleblower lawyer as soon as you suspect fraud. This provides employment protections and protections from certain federal tax crimes and can even result in substantial compensation.

Confidentially Discuss IRS Whistleblower Claims in NY with Legal Counsel

Do not ignore illegal work activity, especially involving the IRS. The government will pursue tax fraud and evasion claims against your employer and any involved employees, especially because it puts money back into the U.S. Treasury. If you suspect potential tax fraud but are unsure, you can confidentially contact New York whistleblower protection lawyer Peter Katz to discuss your rights. Call (609) 849-3179 or connect online today to schedule a free and protected IRS whistleblower consultation.