IRS Whistleblower Policy
The IRS whistleblower program rewards people who report individuals and companies that fail to pay federal taxes. The IRS can award up to 30 percent of the additional money collected.
Other People Are Reading
-
History
-
Prior to 2006, whistleblower awards were discretionary. The Tax Relief and Health Care Act of 2006 requires the IRS to pay at least 15 percent of taxes, interest and penalties to a whistleblower who provides credible information in cases involving at least $2 million.
Eligibility for Reward
-
Whistleblowers must provide specific, solid information that leads to additional taxes, interest and penalties being collected from the taxpayer in question.
-
Rules for Receiving a Reward
-
The IRS will pay 15 to 30 percent of collected funds to a whistleblower involving more than $2 million in disputed funds or if the investigated individual has an income exceeding $200,000. The IRS has a separate program for smaller cases.
Filing a Claim
-
Whistleblowers must fill out IRS Form 211, "Application for Award for Original Information." False claims could result in perjury charges.
Confidentiality
-
The IRS will protect the whistleblower's identity whenever possible. If a whistleblower's identity must be revealed, the IRS will inform the individual before proceeding with the investigation.
-
References
- Forbes: Tax Informants Are on the Loose
- Internal Revenue Service: Whistleblower - Informant Award
- Internal Revenue Service: History of the Whistleblower/Informant Program
- Internal Revenue Service: How Do You File a Whistleblower Award Claim Under Section 7623 (a) or (b)
- Internal Revenue Service: Confidentiality and Disclosure for Whistleblowers
Resources
- Photo Credit whistle image by John Hartley from Fotolia.com
