The IRS paid approximately $50 million in whistleblower awards in fiscal 2013, the second highest year in the history of IRS awards.
The IRS whistleblower program pays awards to people that turn in taxpayers to the IRS. However, many steps must occur before a whistleblower award is paid. First, the IRS has to conduct an audit of the person that was turned in and a tax assessment must then be made. The whistleblower can receive up to 30% of the additional tax, penalty and other monies the IRS may collect as a result of the information provided to the IRS under the whistleblower program. Under the whistleblower program, the IRS is looking for solid information on the person being turned in, not an educated guess or unsupported speculation. Further, the information provided under the whistleblower program must lead to a significant federal tax issue.
If you do file a claim under the whistleblower program, the IRS states that it may take between five to seven years from the time a significant claim is submitted before an award payment is typically made. Do you have solid proof that someone is cheating the IRS? Maybe filing a claim under the IRS whistleblower program is something you should consider.
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