Whistleblower

Did you know that the IRS pays people money for telling about people that they know who aren’t paying their taxes.  That is right?  The IRS will pay your friends, neighbors, co-workers, family if they give them information leading additional taxes, penalties, or other amounts thanks for the information provided.  They will pay them up to thirty percent of the money collected.

So if have tax debt don’t tell the world about it as it will only get you in trouble.

To find out more information on how the whistleblowers work, check out IRC Section 7623.  In summary, there are two types of awards.  If the taxes, penalties, and interest in dispute exceed $2 million then the IRS will pay 15% to 30% of the amount collect.  If the case deals with an individual, their gross income must be over $200,000 a year.  Based on these large amount, the number of whistleblower getting paid for telling them about tax debt is probably not that high.  Nevertheless, you can never be too careful so keep your financial business to yourself.