Can You Snitch to the IRS for Money?

Absolutely! The IRS Whistleblower Office rewards individuals who provide information leading to the collection of unpaid taxes, penalties, and interest. These awards can range from 15% to 30% of the collected proceeds, with a minimum threshold of $2 million in identified tax discrepancies.

Who Qualifies as a Whistleblower?

Any individual, except for certain government employees or those who obtained the information through illegal means, is eligible to file a whistleblower claim.

What Information Qualifies?

The information provided must relate to tax noncompliance, such as:

Underreporting of income
Overstating deductions or credits
Failing to file tax returns
Engaging in fraudulent tax schemes

How to File a Whistleblower Claim

To file a claim, individuals must submit Form 211, Application for Award for Original Information, along with supporting documentation to:

Internal Revenue Service
Whistleblower Office – ICE
1973 N Rulon White Blvd.
M/S 4110
Ogden, UT 84404

Award Determination

The IRS determines the award percentage based on factors such as:

The significance of the information provided
The likelihood of the IRS collecting the unpaid taxes without the whistleblower’s information
The whistleblower’s level of involvement in the noncompliance

Award Payment

Awards are processed as either section 7623(a) or 7623(b) awards:

Section 7623(a): Discretionary awards for information not meeting the criteria for section 7623(b)
Section 7623(b): Mandatory awards for information leading to the collection of over $2 million in unpaid taxes, with additional criteria for individual taxpayers

Protection for Whistleblowers

The Taxpayer First Act of 2019 provides protection for whistleblowers against retaliation.

Additional Considerations

The IRS may reject claims based on information obtained from ineligible whistleblowers or from public sources.
Awards are subject to the current fiscal year’s sequestration rate.
The IRS Whistleblower Report to Congress provides annual updates on the program’s use.

The IRS Whistleblower Office encourages individuals with knowledge of tax noncompliance to come forward and provide information. By doing so, whistleblowers can contribute to the collection of unpaid taxes and receive substantial monetary rewards.

Former IRS Agent Explains How To Turn Someone r Report Them to the IRS and Have IRS Work The Case.

FAQ

Can you snitch to the IRS?

Report Fraud, Waste and Abuse to Treasury Inspector General for Tax Administration (TIGTA), if you want to report, confidentially, misconduct, waste, fraud, or abuse by an IRS employee or a Tax Professional, you can call 800-366-4484 (800-877-8339 for TTY/TDD users). You can remain anonymous.

Can you get money if you report someone to the IRS?

The IRS Whistleblower Office pays monetary awards to eligible individuals whose information is used by the IRS. The award percentage depends on several factors, but generally falls between 15 and 30 percent of the proceeds collected and attributable to the whistleblower’s information.

How do I report someone to the IRS anonymously?

Use the Form 3949-A, Information Referral if you suspect an individual or a business is not complying with the tax laws. You can submit Form 3949-A online or by mail. We don’t take tax law violation referrals over the phone. We will keep your identity confidential when you file a tax fraud report.

Do IRS whistleblowers stay anonymous?

The IRS Whistleblower Program does not expressly authorize tax whistleblowers to submit tips anonymously and remain eligible for a whistleblower award (unlike the SEC Whistleblower Program). The IRS assures whistleblowers, however, that it will protect their identity to the fullest extent permitted by the law.

Can the IRS reward you if you report a tax cheat?

The IRS can reward you if you report a tax cheat. The IRS Whistleblower Office awards eligible individuals that report tax cheats if the information they provide is used. The award is generally between 15% and 30% of the collected proceeds. How Often Does the IRS Catch Tax Mistakes?

Can I report tax cheating if I tip the IRS?

What’s more, if the IRS determines that your tip did not “substantially contribute to the Service’s detection and recovery of tax,” you will not receive an award. It’s also important to note that, under some circumstances, like attorney-client confidentiality, you may not be able to report tax cheating.

Can the IRS ring a tax cheat’s doorbell?

While the IRS may not send an agent out with a hammer or brass knuckles to ring a tax cheat’s doorbell at 3 a.m., it hopes to enlist honest citizens who know of tax fraud and who are willing to help the IRS collect what’s owed – with an award of up to 30% of the taxes, penalties, and interest it collects.

Can I report tax cheating?

It’s also important to note that, under some circumstances, like attorney-client confidentiality, you may not be able to report tax cheating. If you earn a whistleblower award, it will need to be reported when you file your taxes.