With the tax filing deadline just around the corner, you must already be trying to find ways to reduce your tax liability. But what you may not be aware of is that you can actually earn a reward by reporting a case of tax evasion to the IRS.
The Whistleblower Informant Award program of the IRS has been around for a long time but very few people have taken advantage of it. Under the program, you stand to earn a reward of as much as 15 percent of the amount that the tax cheat owes, as long as it does not exceed $10 million. Another program, which is targeted towards bigger tax cheats, awards 15 percent to 30 percent of the total amount that the IRS can recover. However, this is only applicable to cases where the amount owed exceeds $2 million.
The procedure for reporting tax cheats is not very straightforward, The IRS asks you to fill up Form 211, which requires a lot of details like the tax evader’s address and social security number. This helps keep out frivolous and inaccurate claims. Although your name won’t be made public, you still need to reveal your identity to the IRS, which you will anyway have to do if you want to collect your reward.
The program has had mixed success so far. Disgruntled employees, who are not happy with how their company is treating them, or those who are not comfortable with their employer cheating the government, often end up tipping the IRS about tax evasion at their company. Similarly, people often inform about instances of tax evasion by their ex spouse or boss.
What is holding the program back is the fear that informants have of their employers. Despite the confidentiality of the arrangement, it sometimes becomes obvious as to who the informant was. Although whistle blowers can not be fired for their act, people are usually concerned about the damage that it would do to their professional relationships at the company. Another risk is that the person could find it hard to get hired by another company.
If you know of any individual or company evading taxes, this could be your chance to earn money and help the government. But before you report anyone, be absolutely sure that your information is correct. You can also take the advice of an attorney to make sure that there would be no negative impact on your professional and personal life.
someone I worked for just got audited and hid all evidence hid computer and hid car and sent workers home he makes 30 40 thousands a week..hows that for news info.
How do I report someone that I know very well for not filing taxes in 13yrs?
That sounds like all kinds of shady stuff going on their. If it were me I would just stay out of it, you don’t know what you could be getting into.
My great uncle claimed to have a million of his own money. When his brother died he left him more than he had so this would be over two million and all this happened about ten years ago. Just in the last couple of years I found out that his dead brother had written a new will to six people, my mom and her sister being two of them.
He tried to force me to sign a paper (being my Moms POA) saying it was to just keep his brothers house from being sold for taxes. He wouldn’t let me read the paper and although I am sure he has spent most of it being going on cruises and buying new cars, I did not sign it.
I talked to his probate judge a couple years ago and she said he wouldn’t show up to say where the money was and it sounded like he was going around paying hush money. Since he would not show up she was not going to probate it. I have hit brick walls every way I turn so since I am sure he paid no inheritance tax maybe I can get the government on him at least.