25 Aug Whistleblower Claims: What to Do with Information on a Tax Cheat
The whistleblower program, established by the IRS in 2006, has been instrumental in recovering more than 13 billion dollars for the U.S. Treasury between 2007 and 2020 and has prevented millions of additional tax dollars from being lost to fraud.
The whistleblower provisions are found at IRC Section 7623(b) and offer a reward of up to 30% of collected proceeds with an absolute cap of $10 million per whistleblower per year. Any whistleblower information must be submitted as soon as possible so that it can be investigated and acted upon before the statute of limitations expires on such claims.
In this blog post, we discuss what constitutes a whistleblower claim under IRC Section 7623(b), how whistleblowers should submit their information, and tips on avoiding pitfalls when submitting whistleblower claims.
What Does the IRS Consider a Tax Cheat?
A tax cheat is someone who does not report all of their income on a tax return and may also provide false information about deductions or credits in an attempt to get more money back than they owe.
No specific dollar amount triggers the whistleblower provision, but it will generally involve substantial amounts of tax dollars.
How to Report a Tax Cheat to the IRS
If you know someone that has cheated on their taxes, you can report them to the IRS anonymously at irs.gov or by calling 800-366-4484 between Monday and Friday from 11:00 am – 12:30 pm Eastern Standard Time (EST).
When submitting information about possible tax cheats, you must provide as much detail about the individual you are reporting and what they have done.
Tips for Submitting a Tax Cheat Claim to IRS whistleblower program:
Submit your whistleblower information before the statute of limitations expires on such claims. The whistleblower provisions will only apply if you submit whistleblower information within four years from the date you knew about the information.
In addition to whistleblower information, you will need to provide a name and contact telephone number for your whistleblower tip so that the IRS can follow up on any leads generated from submitted whistleblower claims.
If the IRS does not verify your whistleblower claim within six months of submission, it will be removed from consideration; even if your whistleblower claim is confirmed, the IRS may not be able to award a whistleblower reward.
All whistleblower claims are confidential and will only be shared with appropriate government personnel if necessary for further investigation.
The law requires that you have personal knowledge or experience with the suspected tax cheat you report; you may be asked to provide evidence or testimony in order to receive the whistleblower reward.
If you would like to know more about the whistleblower program or worry that someone you know may report you to the IRS, contact Golden Tax Relief today!
Call Golden Tax Relief at 844 229 8936 today.
esolve before it’s too late, contact Golden Tax Relief today! Call 844-299-8936.