The IRS recently wrote an $11.6 million check to a whistleblower who worked for a corporation that helped "a number of very wealthy individuals...evade tax," the whistleblower's attorney said.
The tax collector lavishes awards of up to 30 percent on those people who report violations involving $2 million and up of unpaid federal taxes.
The Wall Street Journal notes that while blowing the whistle might be tempting for some who suspect co-workers or other acquaintances of tax-related crimes, it's not as easy as putting your lips together and blowing. The Journal says turning someone in requires a person to have "conclusive evidence" of tax-cheating, including names, dates and more. Plus, it can take 7 years for the case to be completed and cash to be paid out.
While the program is shrouded in secrecy, it's known that the IRS received more than 14,000 whistle-blowing submissions in fiscal 2014; most of which were rejected, experts say.
Many of those submissions might well have been for cases with smaller potential payouts. They involve allegations involving less than $2 million in unpaid federal taxes; whistleblowers can receive up to 15 percent of the dollars collected.
For those who suspect they might be under investigation by the IRS, there is no better time to take proactive steps with a knowledgeable attorney. In some situations, a skilled tax attorney can help you avoid criminal charges and settle your dispute with the IRS favorably. You can discuss your options with a Cleveland attorney who protects clients’ rights and interests in all negotiations and hearings with the IRS.