Can You Get a Reward for Reporting Tax Fraud?
If you have discovered that an employer or someone you know is committing a crime, you would likely call the police. What do you do if that crime has to do with their federal taxes? This can be not easy to decide. Most of us would not want to file a false claim, but we wouldn't want to get into trouble alongside the offender.
If you feel someone is committing tax fraud or evasion, you will want to call the IRS. From there, you can learn how to report tax fraud and submit your proof or evidence, and they will take the time to look it over for themselves.
With the idea that you are putting yourself out there, most people want to know, "Is there a reward if you report someone to the IRS?"
There is good news for anyone who wants to know about an IRS report Whistleblower program.
What's the Reward for Reporting Tax Fraud?
Filing an IRS Whistleblower report is easy to do, and it may mean that you will one day get a reward from the IRS. The exact amount you may receive is variable, meaning that it may be based on several factors. However, you could earn between 15%-30% just for turning in someone you suspect is defrauding the government.
The catch is you must provide information that:
- Relates to a tax noncompliance matter that exceeds $2,000.00 in taxes, penalties, interest, and other factors; and
- Relates to a taxpayer whose gross income exceeds $200,000.00 for at least one year that you are bringing to the attention of the IRS.
You can also report IRS scam rewards if you receive unsolicited communications from someone who tries to claim to be the IRS. You should keep in mind that this is harder since you may not have a lot of the required information about a phishing company.
How to Whistleblow Company Tax Evasion
There is a form that you can fill out through the IRS. It is Form 211. When you file it, you will need a good bit of information if you want to have the IRS take it seriously amid all their other claims.
A general list of items to include are:
- A description of the tax noncompliance, with a written explanation of the issues.
- Proof of inaccuracies. The evidence may include copies of receipts, bank statements, emails, contracts, location of assets, etc.
- Details on how you came to discover the transgressions.
- Information about how you know the person you are filing a claim against.
- Your signature and the date. Keep in mind that a representative cannot sign it for you.
The IRS takes most claims very seriously. They try to prevent people from filing false claims. If it does not appear to be a legitimate claim, the IRS will often simply toss it out. This is good news for you since you will not have to worry about what happens if you file a false Whistleblower report to the IRS.
How to Collect a Report Tax Fraud to IRS Reward?
Collecting a reward from the IRS will be a process. It will be dependent on whether you are eligible or not and how long it may take the IRS to investigate or settle the fraudulent activity as outlined in the table below.
|Eligibility for Rewards||First, you must make sure that you are eligible to collect the reward. You may not collect rewards if you work for the Department of Treasury, the Federal Government, or obtain your information from someone in one of these professions and, therefore, ineligible themselves.|
|Settling the Case||Settling the case is often the most frustrating part for people who have filed a claim. You will not get a reward until all aspects of the case are completed. This means that you may file a claim, and the IRS will investigate. If they find issues with the business or individual, they will not immediately pay you. It must first go to court or settle with that entity.|
You will be notified when you are eligible to collect your reward. This notification may sometimes come in Form 1099, which you will add to your taxes in the following year. If you do your taxes, you will need to determine where you report a Whistleblower award on your tax return. Keep in mind that all awards will be subject to current federal tax reporting and withholding requirements.
DoNotPay Can Help You Receive the IRS Fraud Report Incentive
Filing a claim against someone for tax fraud is not an anonymous act. Your name, address, and other personal information will need to be included if you want to take advantage of the benefits of filing a Whistleblower report to the IRS.
If you want to report tax fraud but don't know where to start, DoNotPay has you covered. Create your cancellation letter in 5 easy steps:
- Open the DoNotPay Report Tax Fraud product.
- Enter the business you would like to report for tax fraud.
- Provide the details of suspicious activity and as much evidence as you can provide.
- Confirm your contact information.
- DoNotPay will automatically generate the official report and send it on your behalf. The IRS will contact you regarding cash rewards once the case is investigated.
However, what we can do for you is ensure that all the information you submit is accurate and complete. Providing accurate and complete information will guarantee less contact between you and the IRS regarding the very sensitive matter of turning in someone for tax fraud or tax evasion.
Simply follow these steps so we can help you file the report.
- Open and log into DoNotPay.
- Locate the services you need. For this, it would be IRS fraud reporting or help to see if unclaimed funds may be available to you.
- You should fill in all relevant information about the business or person you suspect is committing fraud.
- Confirm your identity. The IRS will not investigate anonymous tips.
- Submit your claim. If the claim has already been made, there are easy ways to check for money owed to you.
Tax fraud and evasion can be done by anyone you know. Therefore, most people want the process to be handled as quickly and as quietly as possible. We do our best to help you report it in the best and most secure way. This security will ensure that you have to worry less about things like, "How do I report IRS Whistleblower retaliation?" in the future.
Other Services Offered by DoNotPay’s Online Lawyer
DoNotPay offers a wide variety of services that are designed to make your life easier. We can help you discover how to report tax fraud that others may commit, and we can work with you to find out if there are rewards available to you afterward.
- Help You Fight Workplace Discrimination
- Understand the Freedom of Information Act
- And Help You File a Complaint
When you are ready to put an end to life's little struggles, our online lawyers are always available to help. You just need to tell DoNotPay your problems, and we will help you make them go away.