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 October, the IRS will send warning letters to tax return preparers who appear not to be complying with Earned Income Tax Credit (EITC) due diligence requirements.Section 6695(g) of the Internal Revenue Code...
BKD LLP adds Illinois accounting firm Wolf & Co.Springfield, Missouri-based CPA and advisory firm BKD LLP and Chicago-based accounting firm Wolf & Co. have agreed to merge, the firms announced on Monday. Wolf will...
A new government report on Monday found that the IRS may not be completing the required research steps in collecting delinquent taxes before considering the cases “not collectible.”The Treasury Inspector General...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.