IRS Reward Program
From the IRS's bulletin to Preparers:
Did you know that the Internal Revenue Service has a reward
program for informants who provide information leading to the
detection and punishment of anyone violating the Internal Revenue Code?
Any individual may file a claim for a reward unless you were
employed by the Department of the Treasury at the time you
received or provided the information, or you are a present or former
employee who received the information in the course of your official duties.
Rewards are available for information involving criminal and civil
tax law violations. The IRS will determine whether a reward will
be paid and the amount. The information provided will be
evaluated in relation to the facts developed by the resulting
investigation. Rewards can be as high as 15 percent of the amount
recovered in taxes and penalties (but not interest) from the
delinquent taxpayer, with the total reward not exceeding $2 million.
The 15 percent rate applies to specific information responsible
for the investigation, which was also a direct factor in the recovery.
A 10 percent reward is available for information resulting in an
investigation and determination of tax liabilities although not specific.
A one percent reward is available for information leading to an
investigation, but had no direct relationship to the determination
of the tax liabilities, for an example, you supplied merely a name.
In short, the more specific and detailed your information is to the
investigation and recovery of tax, penalties and fines, the higher
your reward!
Federal disclosure laws prohibit the Internal Revenue Service from
providing any information relating to investigations, therefore, all
names remain confidential. It can take two or more years before
there is a final disposition of the investigation. Even then, the IRS
will not disclose specific actions taken regarding the investigation.
To file a claim for reward, you must complete Form 211,
Application for Reward for Original Information. Your true name
must be used on the form with an original signature. Upon
completion, Form 211 can be mailed to the Informants Claim
Examiner at the IRS center for your area. Addresses are listed on
the back of Form 211. For more information, call the Informant
Communication Hotline at 800-829-0433.
Published TaxMama.com 05.21.00
