Rewards for All Kinds of Tax Fraud Reports

You pay your taxes, right? But you happen to know that someone at work or down the street isn't paying his fair share, right? Annoying, right? Especially during the bailout, right?

Maybe you know about some corporate highjinks...or Potentially Abusive Tax Shelter use...or a company that is saying people are independent contractors when they're not.

The IRS runs several options for people who want to report tax fraud. First, you can call your local IRS office, report what you think is going on, and be done with it. Second, you can put your reasons in writing and file a claim for a reward.

The IRS has two rewards programs. The first deals with large scale fraud and mandates recovery, meaning that the Service must pay certain whistleblowers a percentage of the recovery in a tax fraud case under certain conditions. The second program gives the Service full discretion over what, if any, reward is given.

To qualify for the mandatory Rewards program, you must report an individual who grosses more than 200 thousand per year in income, and the amount in dispute must be more than two million dollars. The amount in dispute includes taxes owed, penalties, interest, and whatever else the Service can collect.

Wading through the IRS's rewards programs can be difficult and confusing. If you want to discuss reporting tax fraud, even if it's to get the phone number of your local IRS office, give us a call at 610-940-9099. KEMY can help.