Whistleblower Rewards

An IRS district or service center director may approve a reward for information regarding underpayments of tax. The director decides whether the amount of the reward is adequate compensation in each particular case. IRS Publication 733 provides that the amount of reward will be determined as follows:

“For specific and responsible information that caused the investigation and resulted in recovery, the reward will be 10% of the first $75,000 recovered, 5% of the next $25,000 and 1% of any additional recovery. The total reward will not be more than $100,000.”

For more information http://www.taxwhistleblowers.org/

An Information Resource for Tax Whistleblowers
If you have information regarding underpayment of federal taxes, you could be entitled to a reward. Taxwhistleblowers.org is a free information resource that provides information to private citizens on the rewards available to those who report underpayments of tax to the United States government.

Important Development - New IRS Whistleblower Program
On December 20, 2006, the President signed into law new legislation that dramatically strengthens the IRS's whistleblower program. Under the new law, qualified whistleblowers will be entitled to awards of up to 30% of funds that are recovered by the IRS based on information provided by whistleblowers.
Form 211 Claims for Reward

The Form 211 program permits whistleblowers to request rewards from the IRS after reporting information about individuals or entities who have underpaid taxes. Notably, however, payment of any reward by the IRS under the Form 211 procedure is within the government’s discretion and cannot be compelled by the whistleblower.

Special Agreements

In addition to its Form 211 program, the IRS also has a lesser known program commonly referred to as its Special Agreement program, which permits whistleblowers to enter into contracts with the IRS before they provide detailed information about the subject taxpayer and their alleged tax violations. Special Agreements, however, are typically used only for cases involving large amounts of underpaid taxes.

Please be advised that this website is a general information resource and it is not intended to provide legal advice in your particular case. You should consult with an attorney to obtain legal advice regarding your matter.