SEC Penalty Estimator
Estimate SEC civil penalties by tier using worksheet reference amounts. Calculate Tier I, II, and III scenarios including disgorgement and prejudgment interest assumptions.
Whistleblower Payout Estimator
Estimate whistleblower award payouts under SEC, IRS, and False Claims Act programs using worksheet percentage ranges and recovery assumptions.
$
%
Estimated Award⧉
$10,000,000.00
20.00% of $50,000,000.00
Minimum Award⧉
$5,000,000.00
10% rate
Maximum Award⧉
$15,000,000.00
30% rate
Planning notes, formulas, and examples
About the Whistleblower Payout Estimator
The Whistleblower Payout Estimator is a worksheet for comparing possible award ranges under the SEC, IRS, and False Claims Act programs. The page models the award percentage ranges and threshold concepts commonly used in those programs, but it does not tell you whether a real claim will qualify or how a particular agency will exercise discretion.
Whistleblower matters can produce large recoveries, but the outcome depends on the program, the quality of the information, the timing of the tip, and the agency's award decision. Use the worksheet to compare assumptions and stage a budget, not to forecast a guaranteed payout.
When This Page Helps
Comparing possible award ranges can help a whistleblower, counsel, or compliance team think through reporting strategy and budget assumptions. This worksheet keeps the percentage math visible without implying that the modeled award is guaranteed.
How to Use the Inputs
- Select the whistleblower program (SEC, IRS, or False Claims Act).
- Enter the total sanctions or recovered amount.
- Adjust the estimated award percentage within the program range.
- View the estimated whistleblower payout and program details.
- Consider that actual awards depend on many factors including contribution level.
Formula used
SEC Award = Sanctions x 10-30% (sanctions must exceed $1M)
IRS Award = Collected Proceeds x 15-30% (tax amount must exceed $2M)
FCA Award = Government Recovery x 15-25% (gov intervenes) or 25-30% (no intervention)Example Calculation
Result: $10,000,000 estimated award
For an SEC enforcement action resulting in $50 million in sanctions, a 20% award percentage yields a $10,000,000 whistleblower payout.
Tips & Best Practices
- SEC, IRS, and FCA programs all have threshold and discretion rules, so the worksheet should be treated as a planning aid rather than a promise of payment.
- The quality of the information and the assistance provided to investigators can affect award percentage in real matters.
- Whistleblowers can often work through counsel, which may help preserve confidentiality where the program allows it.
- Anti-retaliation protections exist under these programs, but the details differ by program and statute.
- Award percentages above the mid-range usually reflect strong cooperation or highly useful original information.
- IRS awards generally require the proceeds threshold to be exceeded, including taxes, penalties, and interest.
- FCA case evaluation should consider whether the government intervenes and how the relator share rules apply.
Program Comparison
The SEC program covers securities fraud, insider trading, and other securities violations. The IRS program covers tax fraud and underpayment. The False Claims Act covers fraud against the federal government including Medicare, defense contracting, and other government programs. Each has different thresholds, percentages, and procedures.
Maximizing Award Potential
Whistleblowers who provide specific, timely, and original information receive higher awards. Working with an experienced whistleblower attorney ensures proper filing, protects against retaliation, and maximizes the potential award percentage.
Historical Awards
The SEC has issued individual awards exceeding $100 million. The IRS has awarded over $1 billion in total. FCA recoveries routinely generate awards in the tens of millions. These programs represent significant financial incentives for reporting fraud.
Sources & Methodology
Last updated:
Methodology
This estimator multiplies the entered sanctions or recovery amount by a user-selected award percentage within the ranges shown for each program: SEC awards from 10% to 30% when monetary sanctions exceed $1 million, IRS whistleblower awards that are generally 15% to 30% of collected proceeds in qualifying cases, and False Claims Act relator shares that typically range from 15% to 25% when the government intervenes and 25% to 30% when it does not.
The output is a simplified range estimate, not a case valuation. It does not account for collection timing, reductions based on public-source information or claimant conduct, attorney fees, alternate-remedy procedures, or program-specific eligibility disputes.
Sources
- Whistleblower Frequently Asked Questions (U.S. Securities and Exchange Commission)
- Submit a whistleblower claim for award (Internal Revenue Service)
- The False Claims Act: A Primer (U.S. Department of Justice) — Describes the typical 15-25% and 25-30% relator-share ranges under 31 U.S.C. § 3730(d).
Frequently Asked Questions
The SEC program awards between 10% and 30% of collected sanctions when eligible whistleblowers provide original, timely, and credible information that leads to a successful enforcement action. This worksheet lets you model the percentage math without promising a real award.
SEC awards typically take 2-5 years from initial tip to payout, as the enforcement action must be completed and sanctions collected. IRS and FCA cases can take even longer due to investigation and litigation timelines.
Yes, whistleblower awards are generally taxable as ordinary income. SEC and IRS awards are subject to federal and state income tax. Attorney fees may be deductible above-the-line under certain circumstances.
Program rules consider the significance of the information, the level of assistance, the timing of the tip, and whether the whistleblower participated in the conduct. This worksheet leaves those judgment calls to the user.
Yes, current and former employees are the most common whistleblowers. Strong anti-retaliation protections prohibit employers from firing, demoting, or harassing employees who report violations in good faith.
A qui tam action allows private citizens to sue on behalf of the government under the False Claims Act. The relator share depends on the case and whether the government intervenes, so the worksheet uses a configurable percentage instead of a fixed promise.
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