IRS Recovery Rewards

About a month ago, the IRS and the tax fraud bar engaged in a sort of summit meeting. The day long event was multipurpose, but overall, the tax fraud attorneys wanted to see if getting the two groups together could lessen bureaucratic hurdles for those who wanted to report tax fraud and claim a reward within a reasonable amount of time.

One IRS representative noted that the new mandatory reward program allows for recovery claims. In other words, the IRS often faces difficulty finding assets when a tax cheat has already been prosecuted. Others in the community will know about the second or third house purchased under a sham name, assets being held by a family member, etc. If the IRS is trying to collect, and you know where assets have been hidden, you may qualify for the IRS rewards program.

Remember that if you do qualify, you should expect a long, long wait before you get answers from the IRS about your claim. At the meeting, the Service reported that it will not pay until the investigation ends, the funds are paid, and the taxpayer has exhausted all possible appeals. That means years - several years.

Surprisingly, a lot of folks don't care much about the wait or the reward. They just want to do the right thing and see that ill gotten fund are returned to the government. If we can help you navigate through an IRS reward claim, please give us a call.