The IRS & The Whistleblower Informant Award

3 months ago admin 0

The IRS has implemented a Whistleblower Informant Award in which they pay those who report people that fail to pay their taxes. The informant receives up to 30 percent of taxes, fines and penalties collected. This program was put into place to encourage citizens to report tax evasion and fraud.


Information must be considered “specific” and “credible” by the Whistleblower Office within the IRS. Unsupported speculation will be entirely disregarded. In other words, if you are simply guessing or filing a complaint based on a “hunch,” your claim will not be considered credible. The IRS reinforces the idea that this is not simply a way to resolve business issues either. Rather, it is an opportunity to put an end to tax fraud.


If the amount of money that comes from a report exceeds $2 million, then the informant will receive between 15 and 30 percent of the collected amount to the informant. If the informant is reporting an individual, his or her yearly income must exceed $200,000 in order for the informant to be eligible for a payoff. However, if the informant feels there has been a mistake with the awarding process, they can file a claim with the Tax Court to sort out the issue.
This program originated with the Secretary of Treasury in 1867. It was not revisited and edited after its implementation until 1996, adding that reports of underpayment of taxes could make a person eligible for a Whistleblower Informant Award. Amendments have since been made with specifications about award amounts and the personal rights of informants who choose to blow the whistle on tax issues to the IRS.