With the temptation to fudge taxes being greater than ever, the IRS plans to reward those who are willing to rat out tax cheats. As a part of its informant programs, the IRS encourages those who suspect someone of committing tax fraud to report it for a handsome reward.
How Does the Program Work?
By blowing the whistle on those who cheat on taxes, the IRS usually will give the whistle blower a percentage of the amount that the tax cheat underpaid. However, since there are two different programs carrying different percentage amounts, let’s take a look at the two:
1. For small-time crooks: If you want to blow the whistle on a small-time crook then you would be participating in the original IRS informant program that has been around for more than 140 years. If you report someone to this program, you could receive up to 15 percent of the amount that has been underpaid up to a maximum award of $10 million.
2. For big-time crooks: On the other hand, if you suspect someone of cheating the IRS out of at least $2 million (including taxes, penalties and interest) then you could receive between 15 and 30 percent of what was underpaid in a new whistle-blower program. The catch with this program, however, is that the suspected tax evader must be an individual and his or her gross income must exceed $200,000.
Does The Program Help?
So far, the IRS has reported that in the fiscal year 2008, 476 informant tips were received identifying 1,246 taxpayers just in the second whistle-blower program. In total, the firm has received claims from informants that involve billions of dollars in taxes, penalties and interest.
It’s clear that the IRS takes tax fraud seriously. However, there are always people ready to try their unique tax scams, especially when the economy is suffering. If you want to make a quick buck off of someone you know who is planning to cheat on taxes this year, you can complete a claim on the IRS site or call the tip line at 1-800-829-0433.
Would you snitch on someone who is cheating on their taxes?
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I say we revolt…NO other way out of this crap. If we dont, it will get worse with camps, prisons and god knows what. Study commie countries and you’ll get my meaning. Freedom is NOT free people!!!