IRS, Lawmaker Clash Over Whether Whistleblower Program Extends to BSA Violations

By Colby Adams

A U.S. lawmaker is questioning an IRS decision not to reward whistleblowers who disclose potential violations of Bank Secrecy Act reporting requirements tied to accounts held at foreign financial institutions. Under amendments made in 2006 to a 145-year-old internal revenue whistleblower program, the IRS can pay informants between 15 to 30 percent of the proceeds recouped for certain tax underpayments identified through their tips. The program, amended by the Extension of Tax Relief Act, sets no limit on the size of reward payments. But in a report published this month, the agency said that its authority to reward whistleblowers did...