A new way to earn some extra money: IRS informant
Your odds of actually collecting any money as a tax informer are probably pretty low, and the cases can often take years to work their way through the system. Nonetheless, the IRS does offer a finder's fee to people who are instrumental in busting tax cheats.Last year, the amount that tax informants would be paid was increased to up to 30% of any money the IRS collects in a case. This enhanced whistleblower reward was done to encourage honest citizens to give more help to the IRS. The IRS estimates that $290 billion goes unpaid each year because of people and companies cheating on their taxes.
Recently, informants ratted out two very large companies for cheating on their taxes, representing a total of over $3 billion of taxes, penalties, and interest if the claims turn out to be true. But the whistleblowers will have to wait to collect any money. The cases must be fully resolved (which can take years) and the IRS has to actually collect money from the companies. If no money is collected, there is no reward.
If you have information for the IRS, don't be afraid to report it. But just remember that calling them and saying you "know" your brother is cheating on his taxes won't get them to do anything. They want details and proof. Without both of those, they almost certainly won't look into the matter.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
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Reader Comments (Page 1 of 2)
1-04-2008 @ 8:12PM
sam said...
how bout if i rat on one of the IRS employees, helping a guy collect refunds on his dad, who has been dead for years.
Reply
1-04-2008 @ 8:16PM
Sovereign American said...
First they have to show us a law that requires us to pay an INCOME tax on ur labor. WE ARE ALL STILL WATING FOR THAT DAY.
Reply
1-04-2008 @ 11:00PM
PARKER said...
YEAH, RIGHT... MEANWHILE, YOU CAN BUNK DOWN WITH RICHARD HATCH IN FEDERAL PRISON. LET US KNOW HOW THAT WORKS OUT FOR YOU.
1-05-2008 @ 12:16AM
Bill (Virginia Beach, VA) said...
Hey SOV-AMER!
Yes, I have PROOF (Documentation) that paying Taxes IS illegal. Paying taxes is strictly VOLUNTARY. Matter of fact the word "income" only applies to FEDERAL GOV'T employees. And "Wages" is considered "Compensation paid to government employees (Re: IRS). This means that anyone who works for the government that is paid "wages" is a Gov't employee.
Most people mistakenly believe all money's they receive, such as wages, salaries and tips, are "income". However, for years IRS Publication #525 entitled "taxable and nontaxable income," has acknowledged that wages and salaries are NOT "income"
The IRS operates off of (3) motives for people to pay taxes:
1. Fear
2. Threats
3. Stupidity
If you don't FEAR, accept THREATS and are not STUPID of the IRS Scam...it's illegal for the IRS to get you to pay taxes when you have to VOLUNTEER your income as "wages". I'm drafting a letter to the IRS and Commissioner of IRS/Revenue of actual writing I have to get them to "show me proof" that TAXES are legal. According to the U.S. Constitution, taxes are illegal and why everyone is scared of the IRS is beyond my comprehension.
I'd be interested keeping in touch with you with additional info I have to forward you. Email me at: BHimchak(at)aol.com
1-05-2008 @ 2:07AM
Dee said...
Sovereign American,
I'm soooo on board with what you are saying...Ron Paul is awesome by the way. Your posts were as if you were reading my mind.
Do you have contact info (e-mail, MySpace, etc.)
Thanks much.
1-04-2008 @ 8:18PM
Sovereign American said...
Yeah that sounds like a big pay day.
Reply
1-04-2008 @ 8:36PM
Starting to wonder??? said...
Yeah. I too would like to see were it says we have to pay income taxes. Working four months out of the year to line their pockets
Reply
1-05-2008 @ 12:15AM
Bill (Virginia Beach, VA) said...
Yes, I have PROOF (Documentation) that paying Taxes IS illegal. Paying taxes is strictly VOLUNTARY. Matter of fact the word "income" only applies to FEDERAL GOV'T employees. And "Wages" is considered "Compensation paid to government employees (Re: IRS). This means that anyone who works for the government that is paid "wages" is a Gov't employee.
Most people mistakenly believe all money's they receive, such as wages, salaries and tips, are "income". However, for years IRS Publication #525 entitled "taxable and nontaxable income," has acknowledged that wages and salaries are NOT "income"
The IRS operates off of (3) motives for people to pay taxes:
1. Fear
2. Threats
3. Stupidity
If you don't FEAR, accept THREATS and are not STUPID of the IRS Scam...it's illegal for the IRS to get you to pay taxes when you have to VOLUNTEER your income as "wages". I'm drafting a letter to the IRS and Commissioner of IRS/Revenue of actual writing I have to get them to "show me proof" that TAXES are legal. According to the U.S. Constitution, taxes are illegal and why everyone is scared of the IRS is beyond my comprehension.
I'd be interested keeping in touch with you with additional info I have to forward you. Email me at: BHimchak(at)aol.com
1-04-2008 @ 8:54PM
Eddie said...
I WOULDN'T RAT ON MY WORST ENEMY TO THE IRS.
Reply
1-04-2008 @ 8:57PM
Tracy Coenen said...
This document from the IRS addresses all the frivolous arguments against paying taxes, and it includes references to the tax code and case law.
http://www.irs.gov/pub/irs-utl/friv_tax.pdf
Reply
1-04-2008 @ 9:37PM
Andy said...
Friends of ours were prosecuted by the IRS for tax evasion. For $50,000 in back taxes, this wonderful organization spent $ 2,000,000 and 2.5 years torturing them. If they turned evidence in against another business owner, the charges against them would be dropped.....how's that for money well spent????
Reply
1-04-2008 @ 10:08PM
K.S. said...
SAM, please report the IRS guy collecting on his deceased father. That is morally wrong, illegal and unbelievable! He needs to be IN JAIL!
Reply
1-04-2008 @ 10:16PM
Vabred said...
I salute anyone who can get one over on the IRS. They are robbing americans every single day.
Reply
1-04-2008 @ 10:34PM
Kyle said...
Vote for Huckabee, and the IRS might Go away.
Reply
1-04-2008 @ 10:41PM
Bruce Chestnut said...
If you vote for Ron Paul and he wins the presidentcy, you won't have to worry about the IRS anymore, he has vowed to get rid of them because they are unconstitutional. 1913 was a bad year for USA, it was the beginning of the Federal Reserve, and the IRS and the beginnings of many socialist government programs that were started that are unconstitutional. Since the powerbrokers of the globalist political insiders took over the media outlets they have censored by ommission the truth from the american public. Ron Paul is the only one standing up to them, that's why they're trying to shut him up, before too many americans find out the truth.
Reply
1-04-2008 @ 10:46PM
jonathan said...
Huckabeee says, "Do away with the IRS!"
And I too am waiting to see the law that we are required to pay taxes on our labor. Show me the law IRS!
Reply
1-04-2008 @ 11:01PM
Lisa said...
This is all bullcrap. I tried to turn in people for cheating and the IRS doesn't want to hear it. They give you a hard time wanting to know why you are turning the people in. They want you to have their social security numbers and dates of birth. The IRS could do much better if they talked to the people that wanted to turn other's in nicer. They make the person telling feel like they did something wrong!
Reply
1-04-2008 @ 11:05PM
gearman said...
same type scum bags that snitch work for the goverment
Reply
1-04-2008 @ 11:21PM
Elizabeth said...
Are you idiot people kidding me. Do you honestly think the IRS is out to get you. I hope you never drive on a highway, use public parks, collect social security, feel protected by your military forces, or are thankful prisoners are behind bars in federal prisons. I guess you think all these things would be funded how? Come on.
Reply
1-04-2008 @ 11:53PM
strike_a_poseur said...
You my friend (in the loosest term) are an ass. Also are you European? The "'," gives it away. Non-blacks commit crimes too. If education, housing, health care and jobs were equal there would be less crime. Quit being a race baiter and do something productive!
Reply