Estimated reading time: 18 minutes

Key Takeaways

• The SEC whistleblower program pays awards to people who voluntarily provide original, credible information that leads to successful securities-law enforcement actions, with strong confidentiality and anti-retaliation protections.

• You can file an SEC whistleblower tip using the SEC’s Tip, Complaint, or Referral (TCR) process; anonymous filings are allowed only if you are represented by an attorney.

• The IRS whistleblower bounty program rewards tips about significant federal tax underpayments; you submit claims on Form 211 and awards depend on the amount the IRS ultimately collects.

• SEC awards generally range from 10%–30% of collected monetary sanctions; IRS awards commonly range from 15%–30% for large recoveries and may be lower for other cases.

• High-quality tips are specific, supported by documents, and clearly explain who did what, when, where, how, and why it violates the law.

• Consider retaining an experienced whistleblower attorney early, especially if you want SEC anonymity or are concerned about retaliation or legal exposure.

Table of Contents

• Introduction

• What the SEC Whistleblower Program Is

• Covered Securities Misconduct

• Who Can Be a Whistleblower

• How to File an SEC Whistleblower Tip

• Immediate Checklist Before Filing

• Step-by-Step SEC Filing Instructions

• Practical Tips on Quality and Specificity

• Timelines and Expectations

• Overview of the IRS Whistleblower Bounty Program

• What the IRS Program Covers

• How to File IRS Form 211

• Key Differences vs SEC Process

• Eligibility Requirements for Awards

• SEC Eligibility Criteria

• IRS Eligibility Criteria

• Disqualifying Factors and Limits

• How Monetary Awards Are Calculated

• SEC Award Percentages and Factors

• IRS Award Percentages and Factors

• Award Examples and Sample Calculation

• Confidentiality and Anti-Retaliation Protections

• SEC Confidentiality and Retaliation Rules

• IRS Confidentiality Practices and Limits

• Practical Safety Steps

• When and Why to Retain a Whistleblower Attorney

• Core Roles of Counsel

• Benefits of Hiring Counsel

• Timing Guidance for Retaining Counsel

• How to Choose the Right Attorney

• Common Objections, Risks, and How Agencies Evaluate Tips

• Common Reasons Tips Fail and How to Avoid Them

• How SEC and IRS Evaluate Tips

• Real-World Examples and Case Studies

• Large SEC Award Vignette

• IRS Award Vignette

• Key Takeaways from Case Studies

• Conclusion

• FAQ

• Who is eligible for whistleblower awards?

• Are awards guaranteed?

• Can I remain anonymous?

• How long do whistleblower cases take?

• What if I fear retaliation?

Introduction

The SEC whistleblower program is a federal initiative created under the Dodd‑Frank Act of 2010 to encourage reporting of securities-law violations by offering monetary awards and confidentiality protections. It has become a core enforcement tool for the agency, as outlined on the official SEC Whistleblower Program page.

This guide gives you step-by-step instructions to file an SEC TCR and an IRS Form 211 tip, explains who is eligible for awards and typical award ranges, covers confidentiality and anti-retaliation safeguards, and shows when hiring a whistleblower attorney makes sense. If you plan to file an SEC whistleblower tip, want to understand award eligibility, or need to protect your identity, this resource will help you take careful, lawful steps.

We also briefly introduce the IRS whistleblower bounty program as a parallel option for tax violations. The Temple Law primer on SEC and IRS whistleblowers compares processes, confidentiality, and timelines, so you can decide whether the SEC or IRS route—or both—fits your facts. If you need guidance from a whistleblower attorney SEC IRS professionals rely on, the sections below explain how counsel can protect anonymity and strengthen your submission.

What the SEC Whistleblower Program Is

The SEC whistleblower program, created by Congress under the Dodd‑Frank Act (2010), pays awards to individuals who voluntarily provide original, credible, and specific information that leads to enforcement actions and monetary sanctions. See the SEC’s description of eligibility, filing, and awards on the official SEC Whistleblower Program page.

Congress designed the program to surface high-quality market intelligence about fraud and manipulation the government might not otherwise detect. Importantly, it also protects whistleblowers’ identities and bans employer retaliation, reflecting the program’s strong focus on confidentiality and safety.

Covered Securities Misconduct

Tips can address a wide range of securities-law violations, including:

• Securities fraud: false financial statements, sham revenue, or Ponzi schemes that deceive investors. See overviews from Zuckerman Law’s SEC Whistleblower summary and the KKC SEC Whistleblower FAQ.

• Insider trading: trading on material nonpublic information, tipping, or schemes that exploit confidential data.

• Market manipulation: spoofing, layering, wash trades, or other tactics to distort price or volume.

• FCPA/foreign bribery violations: bribes to foreign officials to win or retain business that violate the Foreign Corrupt Practices Act.

For the statutory framework, program details, and filing gateways, consult the SEC’s program page for whistleblower filing and award rules.

Who Can Be a Whistleblower

Eligible whistleblowers include employees, executives, contractors, auditors, compliance officers in certain circumstances, customers, and other third parties with original, nonpublic information. You do not need to work for the company to qualify, and you can be located anywhere in the world if the misconduct affects U.S. markets. The agency’s rules and FAQs on the SEC Whistleblower Program page explain how the SEC evaluates “original” and “voluntary” information for awards.

How to File an SEC Whistleblower Tip

Filing a strong tip requires careful preparation, a clear narrative, and supporting proof. Below is a field-tested workflow to help your information stand out.

Immediate Checklist Before Filing

• Preserve original documents: keep emails, spreadsheets, audit logs, trading data, and texts that show what happened.

• Make copies and record a chain of custody: note dates, devices, and locations where files were stored or transferred.

• Avoid unauthorized disclosure: if you fear retaliation, do not broadcast your concerns internally or publicly without advice; consult counsel first about safe, lawful steps.

• Do not alter, destroy, or remove restricted data: preserve evidence lawfully, and seek legal guidance if sensitive data is involved.

Step-by-Step SEC Filing Instructions

1. Draft a precise narrative: Identify the who, what, when, where, and how. Include dates, names, transaction amounts, entities, desk locations, systems used, and the role of named individuals. Explain how the conduct violates securities laws.

2. Assemble corroborating evidence: Attach internal emails, memos, financial statements, trading blotters, policies, contracts, screenshots, or chat logs. Briefly label each item: does it corroborate the timeline, show falsity, prove intent, or link key actors?

3. Submit the TCR: Use the SEC’s Tip, Complaint, or Referral pathway—online or by mail—through the official SEC Whistleblower Program (TCR form).

   • Online: Fill in contact information, a detailed description, and attach documents. Follow each instruction field exactly, and keep a copy of what you submit.

   • Mail: Send copies of materials, not originals; preserve the originals securely in case the SEC requests them later.

4. If you want to remain anonymous: Hire an attorney before you file. Under SEC rules, anonymous submissions require representation by counsel, who will file and communicate with the staff on your behalf, as explained in the Temple Law primer and the KKC SEC FAQ.

5. After filing: Maintain a secure log of communications. If you filed anonymously, route all SEC interactions through your lawyer. Continue preserving new evidence, and keep your materials organized for potential follow-ups.

If you need broader context about whistleblowing, including False Claims Act (qui tam) lawsuits for government-contract fraud, see our guide to the qui tam whistleblower process.

Practical Tips on Quality and Specificity

The SEC prioritizes tips that are complete, specific, and supported by documents. As the KKC resource confirms, high-quality submissions that name individuals, provide documentation, and explain the misconduct’s chain and impact are far more likely to spur action; see the KKC SEC Whistleblower FAQ.

• Good narrative example: “On 4/28/2024 at 9:37 a.m., CFO Jane Smith emailed Controller John Doe directing a $27.8M revenue pull-forward (Q2 into Q1) for SKU A-1142. Attached spreadsheet ‘Q1 Close Adjustments.xlsx’ shows the entries. This contradicts the company’s revenue-recognition policy (attached) and prior auditor guidance (attached).”

• Bad narrative example: “I think the company is cooking the books. Everyone knows it. Please investigate.”

If you intend to file an SEC whistleblower tip and are unsure about anonymity or the best way to present evidence, consider the safety and strategy advantages of counsel described below.

Timelines and Expectations

SEC investigations and award determinations can take years, and you may not receive frequent updates. The agency may contact you—or your lawyer if you filed anonymously—for further details or documents. For a realistic overview of timelines and agency interactions, review the Temple Law primer.

Overview of the IRS Whistleblower Bounty Program

The IRS whistleblower program rewards information that leads to the collection of taxes, penalties, and interest from underreported or unpaid federal taxes. A concise comparison of the SEC and IRS programs appears in the Temple Law primer, which highlights subject-matter differences, anonymity rules, and timelines.

What the IRS Program Covers

Covered conduct includes willful tax evasion, substantial unreported income, abusive tax shelters, sham deductions, and sophisticated domestic or transnational tax schemes. The IRS focuses on tips that can drive audits and collections of significant amounts owed to the government.

How to File IRS Form 211

1. Complete Form 211: The Claim for Award for Original Information is available at the IRS Whistleblower Office page; see IRS whistleblower guidance and the Form 211 PDF.

2. Attach support: Provide documents and reasonable calculations showing the nature and size of the underpayment. Explain key entities, transactions, and tax years.

3. Submit by IRS instructions: Follow the mailing address and process listed on the form and IRS website. Keep copies of everything you send.

The IRS process can be lengthy; interactions with whistleblowers are usually limited. You may not receive routine updates while the IRS evaluates, audits, and attempts to collect.

Key Differences vs SEC Process

• Subject matter: IRS covers federal tax code violations; the SEC covers securities-law and market misconduct. See the Temple Law primer for a succinct overview.

• Anonymity: The IRS has strong confidentiality protections but does not offer the same attorney-enabled anonymous filing process as the SEC. The SEC permits anonymous filing only through counsel, per Temple Law and the KKC FAQ.

• Timelines: IRS investigations and collections often take multiple years; communications with whistleblowers are typically limited to protect confidentiality and tax-return privacy.

Eligibility Requirements for Awards

Both programs reward original, helpful tips that lead to government recovery—but they use different thresholds and rules.

SEC Eligibility Criteria

• Original: Not publicly available and not derived from another submission to the SEC; ideally supported by nonpublic documents or data.

• Voluntary: Provided before the SEC requests it from you or your company, and not compelled by subpoena or contract.

• Specific and credible: Contains details that can be tested and verified with documents and witnesses.

• Monetary threshold: The information must lead to an enforcement action with total monetary sanctions exceeding $1 million. See the SEC Whistleblower Program page and the KKC FAQ.

For broader program summaries and examples, see Zuckerman Law’s SEC Whistleblower summary and the SEC’s official program hub.

IRS Eligibility Criteria

• Subject matter: The tip must address federal tax underpayments or violations of internal revenue laws.

• Recovery thresholds: For larger awards, the IRS generally considers cases where the amount in dispute exceeds $2 million, or the taxpayer is a corporation. See Temple Law’s primer.

• Support and calculations: Provide documents and reasonable computations that show how much tax was underpaid and for which tax years.

Disqualifying Factors and Limits

• Participation in wrongdoing: If you were involved, awards may be reduced or denied; disclose fully to your attorney so risks can be assessed and mitigated.

• Public or previously reported information: If your information is public or already known to the government, it may not be considered “original.”

• Compelled disclosures: Tips provided only after a subpoena or mandatory request may not count as “voluntary.”

If your whistleblowing overlaps with workplace retaliation or safety issues (for example, reporting unsafe practices), you may also have remedies under other laws. For workplace safety retaliation, review our guide on OSHA complaint retaliation, and for broader public-employee protections, see state whistleblower protections.

How Monetary Awards Are Calculated

Award percentages depend on the agency, the quality of the information, the whistleblower’s assistance, and results obtained.

SEC Award Percentages and Factors

By statute, SEC whistleblower awards are generally 10%–30% of money collected where the tip leads to a successful enforcement action with monetary sanctions over $1 million. This framework is described on the SEC Whistleblower Program page and the KKC FAQ.

The SEC may weigh factors such as:

• Significance of the information to the success of the case.

• Assistance provided by the whistleblower and counsel during the investigation and litigation.

• Culpability of the whistleblower (if any) and whether internal reporting occurred.

• Timing of the submission and whether it helped preserve or recover assets.

IRS Award Percentages and Factors

For large recoveries, the Internal Revenue Code authorizes awards of 15%–30% of collected proceeds, and in other cases the IRS may award up to 15% (or less) at its discretion. As the Temple Law primer emphasizes, the whistleblower award percentage IRS ultimately pays is not guaranteed and depends on original, credible tips that lead to actual collection; see Temple Law’s overview.

Award Examples and Sample Calculation

The SEC has delivered record-setting awards in recent years. Lawmakers have highlighted that in a recent fiscal year the agency distributed over $255 million in awards, underscoring the program’s impact; see the Senate Judiciary news release detailing reform efforts and FY award totals and related KatzBanks commentary on whistleblower reform. Both the SEC and IRS report multi‑million‑dollar individual awards where tips were pivotal and well supported by documents.

Sample calculation: If the SEC collects $100 million in monetary sanctions and your award is set at 15%, your award would be $15 million (before any attorney’s fees if you have a fee agreement). This simple formula shows how percentage ranges can translate into meaningful recoveries when cases are successful.

Confidentiality and Anti-Retaliation Protections

Confidentiality SEC whistleblower rules and IRS privacy practices help reduce retaliation risk, protect reputations, and enable safe cooperation. Understanding these protections is essential before you submit any tip.

SEC Confidentiality and Retaliation Rules

The SEC generally maintains whistleblower identities as confidential, disclosing only in limited circumstances required by law (for example, a court proceeding). The Commission also enforces employer misconduct that chills reporting. Learn more on the SEC page dedicated to whistleblower protections and in the Temple Law primer and KKC FAQ.

Anonymous filing: The SEC permits anonymous submissions only when the whistleblower is represented by counsel, who files and communicates with staff on the client’s behalf, preserving identity throughout the investigation.

Anti-retaliation: Dodd‑Frank and SEC rules prohibit employer retaliation against whistleblowers. Proposed legislation—the SEC Whistleblower Reform Act—seeks to further strengthen protections; see the Senate Judiciary release on reform efforts and KatzBanks’ analysis. If you’ve experienced adverse action for reporting misconduct at work, our guide on workplace retaliation protections outlines steps to document and respond.

IRS Confidentiality Practices and Limits

The IRS is legally required to keep whistleblower information and identities confidential, and it typically limits interactions with whistleblowers to protect tax-return privacy. See the IRS Whistleblower Office page for statutory and procedural guidance. While rare legal processes may require limited disclosures, most IRS interactions occur behind the scenes, which can enhance privacy.

Practical Safety Steps

• Consult counsel early: Before discussing concerns with colleagues or management, talk with a lawyer about safe reporting paths and privilege.

• Use secure channels: Communicate through encrypted email or your attorney’s secure portal; avoid personal cloud-sharing of sensitive files.

• Keep a private log: Track dates, people, and content of disclosures, and keep copies of supporting documentation in a secure location.

For broader whistleblower support and safety strategies, see our overview of why a whistleblower protection lawyer can be essential and our discussion of employee-rights legal representation when disputes intensify.

When and Why to Retain a Whistleblower Attorney

Experienced counsel can greatly improve the clarity, credibility, and protection of your submission—especially if you want SEC anonymity or anticipate employer retaliation.

Core Roles of Counsel

• Enable anonymous SEC filing: Only an attorney can submit an anonymous SEC tip on your behalf, as described by Temple Law and Zuckerman Law’s summary.

• Package the tip: Draft a precise narrative, organize exhibits, and map each document to key facts and legal theories.

• Coordinate with investigators: Manage communications, respond to follow-ups, and maintain consistency across submissions.

• Protect against legal exposure: Assess potential involvement in wrongdoing, privilege, and other risks; advise on additional claims (e.g., retaliation).

Benefits of Hiring Counsel

• Higher-quality submission: Clearer facts, stronger evidence, and better legal framing can increase the chance of agency action.

• Confidentiality: Preserve identity through attorney representation and careful evidence-handling—key to confidentiality SEC whistleblower protections.

• Award strategy: Assess eligibility, quantify potential recovery, and present assistance that may support a higher award percentage.

• Litigation backup: If retaliation occurs, counsel can pursue legal remedies while the tip proceeds.

Timing Guidance for Retaining Counsel

Retain counsel before filing if you want to stay anonymous with the SEC, or as soon as you suspect serious misconduct and begin preserving evidence. If you are still employed and concerned about retaliation, consult immediately about safe reporting and documentation. If you are weighing different reporting paths (SEC, IRS, OSHA, or state anti-fraud channels), an attorney can help build a coordinated strategy.

How to Choose the Right Attorney

• Track record: Ask about years of experience and representative outcomes in SEC and IRS whistleblower matters.

• Fee structure: Many whistleblower lawyers work on contingency; obtain a clear, written retainer agreement.

• Resources and reach: Confirm investigative resources, expert access, and capacity to handle complex cross-border issues.

• Confidentiality practices: Discuss secure communications, evidence handling, and conflict checks.

Questions to ask a prospective lawyer:

• How many SEC and IRS whistleblower cases have you handled, and what results can you share?

• What is your approach to drafting the TCR or Form 211 and organizing exhibits?

• Can you file anonymously with the SEC and protect my identity throughout?

• How do you evaluate eligibility and estimate potential award ranges?

• What are my retaliation risks and legal options if my employer responds negatively?

• How do you communicate status updates in long-running investigations?

• What are your fees and costs, and how are they calculated against any award?

• What similar industry cases have you handled (financial services, tech, healthcare, crypto)?

For more on selecting legal support and balancing options, explore our guidance on employment-law representation.

Common Objections, Risks, and How Agencies Evaluate Tips

Anticipate roadblocks, strengthen your submission, and understand how agencies triage the flood of tips they receive.

Common Reasons Tips Fail and How to Avoid Them

• Too vague or speculative: Provide dates, names, transaction amounts, systems, and supporting documents. Explain the violation clearly and concisely.

• Information already public: Show why your data is original and nonpublic—point to internal sources, audit logs, or firsthand communications.

• Whistleblower participation: Disclose to counsel any role you played, so risks can be addressed and your cooperation properly framed.

If your report triggers employer backlash, know your rights. Our detailed guide on a whistleblower protection lawyer’s role explains how to document retaliation and pursue remedies while your tip proceeds.

How SEC and IRS Evaluate Tips

• SEC: Staff screen TCRs, test credibility, and refer viable matters to Enforcement. The agency may request additional information and, after an enforcement action and collection, consider award factors. See the process overview on the SEC Whistleblower Program page.

• IRS: The Whistleblower Office receives Form 211 submissions, performs a preliminary review, and may forward to examination for audit/investigation. Awards are considered after collections. See IRS Whistleblower Office guidance and the Temple Law primer.

Real-World Examples and Case Studies

These short vignettes illustrate what successful submissions often include—specific facts, quality documents, and timely reporting.

Large SEC Award Vignette

A financial professional reported falsified revenue recognition at a public company, providing emails, spreadsheets, and policy documents that showed intent and effect. The SEC ultimately brought enforcement actions leading to significant monetary sanctions. The whistleblower received an award within the statutory 10%–30% range, consistent with program results outlined in Senate Judiciary reporting on annual award totals and broader trends highlighted in KatzBanks’ reform commentary and the SEC’s award summaries.

IRS Award Vignette

A tax manager disclosed a multi-year abusive shelter used to shift income offshore. The Form 211 included a clear explanation of transactions, tax years, entities, and calculations of unpaid tax. After audits and collections, the IRS awarded a percentage of proceeds under rules explained on the IRS Whistleblower Office page and summarized by Temple Law.

Key Takeaways from Case Studies

• Specificity wins: Detailed timelines, names, and amounts help agencies act quickly.

• Documents matter: Emails, spreadsheets, policies, and logs corroborate claims and show intent.

• Timing helps: Early, voluntary submissions can improve award considerations and reduce harm.

Conclusion

The SEC whistleblower program and the IRS whistleblower bounty program can deliver substantial awards and strong protections for those who report serious financial misconduct. Preserve evidence, choose the right agency based on the violation (securities for the SEC, tax for the IRS), consider retaining a whistleblower attorney SEC IRS practitioners who can protect your anonymity and strategy, and prepare for long timelines that may still yield meaningful results when cases succeed.

This article is informational and does not constitute legal advice. Consult an experienced whistleblower attorney about your specific situation.

Need help now? Get a free and instant case evaluation by US Employment Lawyers. See if your case qualifies within 30-seconds at https://usemploymentlawyers.com.

FAQ

Who is eligible for whistleblower awards?

Anyone with original, credible, nonpublic information about securities or tax violations may qualify if their tip leads to a successful action and collection. For SEC criteria and thresholds, see the official SEC Whistleblower Program. For IRS thresholds and process, see the IRS Whistleblower Office. Our comparison draws on the Temple Law primer. If your whistleblowing intersects with public employment or state rules, review our guide to state whistleblower protections.

Are awards guaranteed?

No. Agencies evaluate statutory factors and only make awards if your information leads to enforcement (SEC) or collection (IRS). The whistleblower award percentage IRS or SEC award within the 10%–30% range is never guaranteed. See the KKC SEC FAQ, the SEC program page, and the IRS Whistleblower Office.

Can I remain anonymous?

For the SEC, yes—if you are represented by an attorney who submits and communicates on your behalf. See the Temple Law primer and the KKC FAQ. The IRS provides strong confidentiality, but it does not use the same attorney-enabled anonymous filing process. To discuss safety planning and retaliation risks, read our overview of a whistleblower protection lawyer’s role.

How long do whistleblower cases take?

Often years. The SEC and IRS may limit updates during investigations but will request more information if needed. For timelines and expectations, see the Temple Law primer. If your matter overlaps with workplace safety or fraud concerns, you may also consider protections described in our OSHA retaliation guide.

What if I fear retaliation?

Document everything, keep communications private, and consult an attorney right away. The SEC prohibits retaliation and maintains confidentiality for whistleblowers, as detailed on its whistleblower protections page. For practical steps and remedies if your job is threatened, see our resource on workplace retaliation.