The IRS currently has two programs in place for reporting tax evasion. Its informant program, which has been around for more than 140 years, is for reporting small-time evaders. There’s no minimum amount of fraud required to file a report, and informants can receive up to 15 percent of the amount owed as a reward.
The whistle-blower program is newer, enacted in 2006, and is targeted at big-time tax evasion. The amount in question has to be at least $2 million, and the informant can receive anywhere from 15 to 30 percent of that amount as a reward. The IRS says it’s already received tips on billions of dollars of evaded taxes, mostly from disgruntled, midlevel employees ratting out corporations.
Would you ever report a person or a business to the IRS for tax evasion? And would receiving a financial reward be incentive to do so?