If you think you've been scammed, had your information stolen or suspect someone isn't complying with tax law, report it. Your information can help others from falling victim.
In order to report someone to the IRS, a whistleblower must gather specific and credible evidence regarding large-scale tax underpayments or violations of internal revenue laws. The whistleblower then must file IRS Form 211, which is an Application for Award for Original Information.
Some whistleblower reward laws permit whistleblowers to report fraud anonymously and most whistleblower reward laws protect whistleblowers against retaliation. Under most whistleblower rewards laws, a whistleblower can receive an award of up to 30% of the monetary sanctions collected in a successful enforcement action.
(We never share this information with the person or business you are reporting.) This information is not required to process your report, but would be helpful if we need to contact you for any additional information. Use Form 3949-A to report alleged tax law violations by an individual, a business, or both.
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.
Recent developments. You can now report alleged tax law violations by individuals and/or businesses to the IRS through the Form 3949-A Information Referral online experience.
The range for awards is between 10% and 30% of the money collected. Read the FY24 annual report to Congress and learn more about how to submit a tip as a whistleblower.
An award worth between 15 and 30 percent of the total proceeds that IRS collects could be paid, if the IRS moves ahead based on the information provided. Under the law, these awards will be paid when the amount identified by the whistleblower (including taxes, penalties and interest) is more than $2 million.
You can report an individual or business to us if you think they're not complying with tax laws. For example, they might be: Claiming to be a resident of another state while residing in California. Making false claims for refunds.
The IRS may pursue criminal charges if they suspect fraudulent returns. Criminal conduct refers to any act that violates tax laws and regulations. If the IRS determines that there is enough evidence to warrant criminal action, they will refer the case to the Department of Justice for prosecution.
Depending on your side hustle, you'll likely need to fill out a Schedule C (Profit or Loss from Business) to report earnings or losses from your side gig. If you've made more than $400, you'll also need to file a Schedule SE (Self-Employment Tax) to cover your Medicare and Social Security obligations.
For tax purposes, the plaintiff is considered to receive the gross award, including any portion that goes to pay legal fees and costs. The IRS rules for Form 1099 reporting bear this out. A defendant or other payor that issues a payment to a plaintiff and a lawyer must issue two Forms 1099.
The IRS Whistleblower Office was established by the Tax Relief and Health Care Act of 2006. This office is tasked with processing tips from individuals, such as whistleblowers, who have knowledge of significant tax noncompliance to provide that information to the IRS.
Tax evasion is the illegal non-payment or under-payment of taxes, usually by deliberately making a false declaration or no declaration to tax authorities – such as by declaring less income, profits or gains than the amounts actually earned, or by overstating deductions. It entails criminal or civil legal penalties.
For the 2022 tax year, the gross income threshold for filing taxes varies depending on your age, filing status, and dependents. Generally, the threshold ranges between $12,550 and $28,500. If your income falls below these amounts, you may not be required to file a tax return.
Tax Whistleblower claims are complicated matters and take years (five to seven years on average) for the IRS to complete. The length of time for a whistleblower's claim to be completed varies based upon the quality of the claim submission, the taxpayer, tax issue, complexity of the issue, criminal ramifications, etc.
The taxpayer's tax avoidance actions must go further to indicate criminal activity. If you face criminal charges, you could face jail time if found guilty. Tax fraud comes with a penalty of up to three years in jail. Tax evasion comes with a potential penalty of up to five years in jail.
The Internal Revenue Service's whistleblower office incentivizes people to report tax evasion and other tax law violations. The IRS Whistleblower Program rewards whistleblowers by paying 15 to 30% of government recoveries that result from the whistleblower's reporting to the IRS Whistleblower Program.
Eligible whistleblowers
an individual or an employee of a person that supplies services or goods to the entity (including volunteers) an individual who is an associate of the entity. a relative or dependant of any of the above, or a dependant of the spouse of any of the above.
Whistleblower Compensation Under the False Claims Act
Successful whistleblowers, also referred to as relators, generally receive between 15 to 30 percent of the amount recovered by the government.
How to Apply for an Award. Whistleblowers who voluntarily submit original information by filing a Form TCR (Tip, Complaint, or Referral) to the CFTC Whistleblower Office may be eligible to receive between 10% and 30% of the amount of monetary sanctions collected in a CFTC enforcement action or a Related Action.
Unlike the SEC Whistleblower Program, the IRS Whistleblower Program does not authorize whistleblowers to submit tips anonymously and remain eligible for a whistleblower award. However, the IRS does guarantee that it will keep the whistleblower's identity confidential when they file a tax fraud report.