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.
May 14, 2025
This information is provided for educational purposes only by Kohn, Kohn & Colapinto and does not constitute legal advice. No attorney-client relationship is created by accessing this content. Laws and regulations may change, and this material may not reflect the most current legal developments. If you believe you have a whistleblower claim, consult a qualified attorney to discuss your specific circumstances.
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.
Read More
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
$104 Million Reward
As an international banker at UBS in Switzerland, Bradley Birkenfeld exposed a massive tax evasion scheme, leading UBS to disclose over 4,450 U.S. tax evaders and pay a $780 million fine to the IRS. He was awarded $104 million by the IRS for his information.
$98 Million Award
The tax whistleblower exposed major international illegal tax schemes for offshore banks. This whistleblower’s allegations led to 387 US payers getting caught red-handed, having stashed millions in illegal offshore accounts.
$100 Million Exposed
Alex Cherpuko, a 21-year-old whistleblower at the time, exposed a $100 million criminal enterprise, securing a $69.6 million judgment and becoming the first to simultaneously use False Claims Act, Dodd-Frank Act, and IRS whistleblower laws.
