IRS Pays Bounty to Tax Informants

The IRS encourages citizens to blow the whistle on tax scofflaws by offering a reward somewhere in the range of 1% to 15% of the total amount collected. The total reward cannot exceed $2 million.

Although the tax agency wants to hear about citizens who are avoiding taxation, the quantity of rewards actually paid is rather low. In the fiscal year ended September 30, 2000 the IRS paid 382 rewards to informants for a total of approximately $10.8 million.

Potential informants should remember that the leads they provide the IRS must be concrete and must lead to actual tax collection. "You only get paid if the IRS gets paid," said Larry A. Campagna, partner and tax attorney at Chamberlain, Hrdlicka, White, Williams & Martin in Houston, Texas.

Tips for the IRS should be phoned in to the IRS's criminal investigation informant hotline at 1-800-829-0433.

You may like these other stories...

Starting in January 2015, the IRS will limit the number of refunds that are electronically deposited into a single financial account or pre-paid debit card to three, as part of the agency’s effort to crack down on...
House proposes $10.5B, eight-month highway billThe House Ways and Means Committee proposed a transportation funding bill on Tuesday that calls for a temporary extension of current transportation funding levels until May 31,...
Swiss banks threaten freeze on US accounts over tax evasionJames Shotter of the Financial Times reported on Monday that several Swiss banks have threatened to freeze American clients’ accounts unless they prove they...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.