Today, the U.S. Internal Revenue Service (IRS) has an anonymous whistleblower program. In this way, they can encourage citizen participation to stop tax scams and all kinds of tax-related infractions. And best of all, this is a private service that provides rewards.
However, it must first be ensured that the information provided bears fruit in the subsequent investigation. This way, the IRS will be able to compensate reporters and invite others to participate. This IRS whistleblowing program also applies to businesses and corporations. Today in The Look we will tell you how it works.
Privacy in the IRS Whistleblowing Program
Because of the way it is made, the IRS program aims to encourage all citizens to participate. Especially those individuals with inside knowledge about tax fraud to report such activity. These have multiple security measures to protect the identity of whistleblowers.
In this way, it is possible to prevent any revenge on the part of their employers towards whistleblowers. Therefore, this program allows people to submit information anonymously. Then, you can rest assured that your identity will remain private throughout the process and you can qualify for a prize.
Potential Risks of the IRS Whistleblowing Program
Even though this is a completely private and anonymous program, there are special situations. For example, in court proceedings or in investigations where additional information is required for a conviction. For this reason, it is recommended to have the services of a specialized lawyer to guide you throughout the process.
Apart from that, some other risks and dangers should be considered before filing the complaint. Among them, we can highlight the following:
- There is a possibility that the identity is revealed unintentionally by some kind of human error. It may even be exposed intentionally.
- There may be personal consequences or retaliation for those who make such reports.
- There are financial and legal risks for the whistleblower. Especially if he has a personal or business relationship with the defendant.
How to file complaints with the IRS?
On the official website of the Internal Revenue Service (IRS), you have all the tools to file an anonymous accusation. These have different portals to facilitate the process and achieve better results. That is, you can make a report according to the type of crime since they have the following categories:
- Phishing Scams
- Promoters of excessive tax scams
- Preparers of misleading statements
- Immoderate transactions involving a retirement savings plan
- Unfair transactions involving a tax-exempt organization
- Tax shelters and illegal transactions
Rewards are given to whistleblowers
Currently, the IRS whistleblowing program rewards citizens who provide information about tax fraud. In particular, when the data leads to the collection of at least 2 million dollars. For such situations, rewards range from 15% to 30% of the amount the IRS recovers.
However, the reward prize also depends on other factors that must be met. For that reason, it is recommended to check with the official website of the IRS or with the official staff of the Internal Revenue Service. In this way, you can clarify any additional doubts you have regarding the whistleblowing program.