Whistleblower Rewards for Reporting Illegal Shell Bank Accounts
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.
Updated
May 14, 2025
Illegal shell bank accounts are a concern in global finance. They are often used to facilitate money laundering, tax evasion, and other illicit activities.
This overview will go over the concept of illegal shell bank accounts. It will also cover the role of whistleblowers in exposing illicit activities and the IRS whistleblower program that incentivizes whistleblowers with rewards for their specific, credible, and timely information.
What is an Illegal Shell Bank Account?
An illegal shell bank account is an account set up by a shell bank, which is a bank that has no actual physical presence in any jurisdiction around the world. They are often created to facilitate illegal activities like money laundering, tax evasion, or financing terrorism. They can hide the true owner of assets and make it hard for authorities to trace the flow of illicit funds.
Why Are Whistleblowers Key in Uncovering Illegal Shell Bank Accounts?
Whistleblowers are key in uncovering illegal shell bank accounts because detecting unlawful activity of financial institutions is difficult.
Insiders in these institutions can provide credible, first-hand information to the IRS, which can lead to the prosecution of shady individuals or organizations involved in financial crimes.
By reporting these activities, whistleblowers can help to maintain the integrity of the financial system and protect innocent investors from losing everything.
The IRS Whistleblower Program: Incentivizing Reporting of Financial Fraud
The IRS Whistleblower Office is responsible for administering the IRS whistleblower program.
This program incentivizes individuals to report tax fraud and other financial crimes, offering monetary rewards for valuable information that leads to the recovery of funds.
The award percentages vary between 15 and 30 percent of the proceeds collected in a successful enforcement action based on the quality of the information provided.
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What Is Covered Under the IRS Tax Whistleblower Reward Program?
How to Report an Illegal Shell Bank Account as a Whistleblower
You are strongly urged to contact a whistleblower attorney if you decide to blow the whistle. The reporting and reward process is complex, with many rules and procedures. An experienced IRS whistleblower attorney can significantly increase your chances of recovering and maximizing awards.
However, if you decide to go at it alone, here are the simplified steps:
- Gather evidence: Collect documentation or other proof of the existence of the illegal shell bank account and any associated financial crimes.
- Complete Form 211: Fill out the IRS Form 211, “Application for Award for Original Information,” providing detailed information about the illegal shell bank account and its associated activities.
- Submit Form 211: Mail the completed Form 211 and any supporting documentation to the IRS Whistleblower Office at the following address: Internal Revenue Service, Whistleblower Office – ICE, 1973 N. Rulon White Blvd., M/S 4110, Ogden, UT 84404
The IRS doesn’t allow whistleblowers to file anonymously. However, they are committed to protecting the confidentiality of whistleblowers. While the IRS cannot guarantee absolute confidentiality, they take all possible measures to protect the identity of whistleblowers and ensure that they are not subjected to retaliation.
Read More:
Reporting Someone to the IRS: A Whistleblowers Guide
Our Firm’s Cases
$112.6 Million Award
Confidential Whistleblower’s disclosures resulted in 461 tax cheats paying over $562.9 million in fines and penalties. Whistleblower obtained awards of over $112.6 million. Client’s disclosures expected to trigger millions in additional awards and sanctions in 2024.
$11.9 Million Award
In July 2023, our client was awarded a significant sum of $11.9 million due to their involvement in the Tax Whistleblower Award Case No. 2015-11701. The IRS’s program for whistleblowers is a crucial mechanism that incentivizes individuals to spotlight tax fraud.
$11.9 Million Award
July 2023, our client obtained an award of $11.9 million in Tax Whistleblower Award in Case No. 2015-11793. The IRS whistleblower program offers substantial financial rewards to individuals who expose tax fraud.
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