If you’re contemplating exposing unethical practices, Nashville whistleblower attorney Timothy L. Miles is here to assist you. A whistleblower is an individual who reveals illegal activities within an organization, and this role can be assumed by employees, Nashville whistleblower attorney contractors, suppliers, or clients who witness wrongdoing. The False Claims Act (FCA), also known as the Whistleblower Protection Act, offers crucial protections for those who report fraudulent activities within their organizations, shielding them from retaliation like job loss, intimidation, or other forms of discrimination.
Auditors and accountants have specific rights and protections when it comes to whistleblowing. Here are answers to six common questions about whistleblowing in these fields.
1. Can auditors and accountants act as whistleblowers?
Yes, auditors and accountants are eligible to be whistleblowers under various U.S. laws, including the IRS Whistleblower Program and the Dodd-Frank Act. The Sarbanes-Oxley Act also provides protection against retaliation for those in the auditing and accounting professions who report illegal activities.
2. How can tax fraud be reported?
Tax fraud can be reported through the IRS Whistleblower Program, which allows individuals with reliable information about substantial tax fraud to file a claim. Since its inception in 2007, the IRS Whistleblower Office has recovered more than $5.7 billion and issued $931.7 million in rewards.
3. Is it possible to remain anonymous when reporting?
Yes, whistleblowers have the option to report fraud confidentially or anonymously. The Dodd-Frank Act allows for anonymous reporting, but to qualify for a reward while remaining anonymous, the report must be submitted through an attorney.
4. Are there financial rewards for whistleblowers in auditing and accounting?
Yes, whistleblowers can receive financial incentives. U.S. reward statutes offer between 10% and 30% of any monetary penalties exceeding $1 million for information that leads to successful enforcement actions by the SEC. The IRS Whistleblower Program provides rewards ranging from 15% to 30% for cases involving over $2 million in taxes, penalties, and interest.
5. Do whistleblowers need to be U.S. citizens?
No, whistleblower protections apply regardless of nationality. Non-U.S. citizens can report violations of U.S. securities laws or tax regulations, even if the offending company is located outside the United States.
6. What additional legal protections are available?
The Sarbanes-Oxley Act offers protection to whistleblowers reporting breaches of federal securities laws, SEC regulations, or shareholder fraud. This protection extends to employees, contractors, and agencies of publicly traded companies, including auditors and accountants. Successful retaliation claims may lead to compensation for lost wages, job reinstatement, and other damages.
