Whistleblowers Sequestered!

The IRS has generally referred to persons who submit information (regarding malingering taxpayers) under IRC Section 7623 as “informants,” more colloquially as “whistleblowers,” subject to operations of the “Whistleblower Office,” which administers the rules regarding how much of a reward to which a whistleblower may be entitled.

So, along come the “sequester” rules, pursuant to which Congress mandated that various government expenditures will have to be reduced.  So, guess what:  whistleblowers, too, will have to grin and bear sequester until at least September 30, 2013 (unless Congress acts sooner to change the rule), which means that whistleblower payments, just like other government expenditures, are subject to a hair cut – of 8.7% in this instance!