Learn about the IRS Whistleblower Program, as well as the types of rewards available to qualified IRS whistleblowers, and information on filing a claim with and without an attorney.
The IRS Whistleblower Program is one of the strongest anti-fraud award programs available to whistleblowers who report tax evasion and fraud. Congress required the IRS to establish the IRS Whistleblower Office to pay rewards whistleblowers who report specific and credible information to the IRS and if the information results in the collection of taxes, penalties, interest or other amounts from the noncompliant taxpayer.
IRS whistleblowers are individuals who report tax problems in their workplace, tax misconduct committed by individuals, and anywhere else frauds might be encountered. Whistleblowers who witness corporate fraud, tax evasion and other crimes related to the Internal Revenue Service can earn financial rewards for providing the IRS with original evidence.
Reporting someone to the IRS is a multistep process which requires careful planning. The IRS are interested in cases where there is specific and credible information resulting in the collection of taxes, interest, penalties and other amounts from a negligent taxpayer exceeding $200,000 for an individual, and $2 million from an organization.
The largest misconception concerning the IRS whistleblower program is that it only covers tax frauds. The IRS whistleblower law covers tax frauds, non-criminal underpayment of taxes, noncriminal tax frauds and sanctions paid for IRS-related infractions.
Cryptocurrency fraud whistleblowers who report alleged violations to regulators, such as market manipulation, money laundering, tax avoidance, or other scams (through the guise of crypto), can earn awards under various federal whistleblower reward programs.
Illegal shell bank accounts are a concern in global finance. They are often used to facilitate money laundering, tax evasion, and other illicit activities. The IRS whistleblower program incentivizes qualified whistleblowers with rewards for information about such accounts.
Under the IRS Whistleblower Program, U.S. whistleblowers who provide information about offshore tax havens that lead to the recovery of taxes, penalties, and interest may be eligible for a reward.
Accounting fraud occurs when a company intentionally manipulates its financial statements to create a false impression of strong financial health. Insiders who bring information about accounting fraud to the SEC, CFTC, or the IRS may be eligible for a whistleblower reward.
Filing a reward claim based on AML violations is extremely complex, as there are at least three reward laws that may be applicable to the claim, and each has separate filing rules. Continue reading to get a short and concise overview of the filing process.
Money laundering is the process of taking large amounts of illegally obtained funds and making their source seem legitimate. Money earned through criminal activity is considered “dirty,” and through money laundering it becomes “clean.” Once cleaned, the money can be used without being traced back to the criminal activities it originated from.