IRS Claims Whistleblowers are on the Rise

Posted on: May 4th, 2010 by

CPA - Rockville, MDUS tax authorities have said they are investigating about 4,500 potential tax cheats due to tips from the public.  The Internal Revenue Service’s whistleblower office, created under a December 2006 law and took effect in in the beginning of 2008, is getting about 40-50 tips a month on cases involving evasion of $2 million dollars or more.  This is thought to be because of the new guarantee of a minimum reward of 15 percent and going as high as 30  percent in these large cases. Previously, the IRS set reward amounts ranging from 1 percent to 15 percent of money recovered.

The government, however, has yet to pay a whistleblower under the new law, as it takes about 5 to 7 years for a claim to make its way through the system.  And that is only best case scenario.  And, although the law has been widely supported, it has been said that informants have not been treated all that well.  Informants just have to understand that the IRS does not and will not pay in advance to get the information and then have to see what its actually worth.  If you have more questions about whether you have been witness to tax evasion, contact your local accountant or local IRS office.



  1. Tag Cloud
  2. Blog Home