$1.1 mm
The IRS paid a $1.1 million reward to an anonymous Wall Street Banker for information that exposed an alleged tax fraud scheme by Enron, Bankers Trust, and others. The anonymous whistleblower received the maximum 15% award allowed under the previous IRS Whistleblower program (IRS 211 Program). The IRS now allows awards up to 30%(!) for Whistleblower Information.
$104 mm
Brad Birkenfeld, a former banker for UBS, provided the IRS with information of shady tax dealings by the investment banking company. The Internal Revenue Service decided that his contributions were so helpful that they awarded him a whopping $104 million award!
$86 mm
The IRS paid over $86 million in awards to nearly 170 whistleblowers during tax year 2020, despite large delays due to the COVID-19 pandemic. The Service collected over $472 million last year as a result of information provided by whistleblowers exposing fraudulent tax practices.
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Whistleblower FAQ: The Reward for Reporting Tax Fraud
Question: What is the reward for reporting tax fraud? Reporting tax fraud via the whistleblower process can result in a reward. The amount of the reward will depend on whether it is a “discretionary award” or a “mandatory” award.IRC §7623(a)—Discretionary AwardsPer IRC §7623(a), the IRS has discretionary authority to issue a whistleblower award from the…
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Whistleblower FAQ: Tax fraud vs. tax evasion
Question: What’s the difference between tax fraud and tax evasion? Tax fraud is a general term used to describe the taxpayer’s intent to defraud the government by evading tax. Mere negligence is not enough to establish fraud. The Internal Revenue Service (IRS) may charge individuals suspected of tax fraud with either civil penalties, under the…
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Whistleblower FAQ: Tax Fraud Investigations
Question: Who Investigates Tax Fraud? The Internal Revenue Service (IRS) is responsible for investigating claims relating to the Internal Revenue Code (IRC). Within the IRS there are multiple divisions focused on either civil or criminal tax fraud. Per Internal Revenue Manual (IRM) 25.1.6.1 (11-05-2014): Civil fraud penalties will be asserted when there is clear and convincing evidence to prove that some…
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Whistleblower FAQ: Reporting Tax Fraud To IRS
Question: Who do I report tax fraud to? A person reports tax fraud to the IRS. To report an individual or business suspected of committing tax fraud or tax evasion, file Form 3949-A, Information Referral, by mailing it to: Internal Revenue ServiceStop 31313 Fresno, CA 93888 Both individuals and businesses can be reported for suspected tax fraud.…
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Whistleblower FAQ: Reporting someone to the IRS online
Question: Can you report somebody to the IRS online? The IRS does not provide an online reporting process for issues relating to tax fraud. The IRS generally requests that forms be completed online or by hand, then printed and mailed directly to the Internal Revenue Service. The IRS provides comprehensive instructions for reporting and mailing…
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Whistleblower FAQ: Reporting someone for tax fraud
Question: What happens when you report someone for fraud? A whistleblower can report an individual or business for suspected tax fraud by filing Form 211, Application for Award for Original Information, through the Whistleblower Office at the Internal Revenue Service (IRS). The intake and initial review process generally takes between 30 and 60 days at…
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