In summary, there are two ways to be an IRS whistleblower, and both of these options require completing a one page form and sending it in to the IRS. If you called or visited your local IRS office you would be requested to complete one of these forms. In both cases it is important that you provide as much specific information as possible, and to the extent you can provide documentation, you do so.
The Tax Whistleblower Law Firm only accepts cases involving more than Two Million Dollars ($2,000,000) in underpaid taxes, interest and penalties. If your case involves less than Two Million Dollars ($2,000,000), you may contact the IRS tax fraud hotline at 1-800-829-0433.
The two options are:
IRS REWARD: The first option requires the IRS to pay you a whistleblower reward of 15% to 30% of the amount collected based upon the information you provided. However the tax, penalties and interest must be over Two Million Dollars ($2,000,000) to qualify for this large IRS reward. If the tax, penalty and interest is less than $2,000.000 the reward will be limited to a maximum of 15% and will be at the discretion of the IRS. To claim a reward you can submit a Form 211 “award claim form” to the IRS in which you provide “specific” information to the IRS that will help them detect an underpayment of tax. If in fact they collect tax, penalty and interest based upon the information provided by you then you will be eligible for a Whistleblower Award. Claiming an award cannot be done anonymously, but a Tax Whistleblower attorney can protect your identity throughout this process.
A well put together claim may provide you with an IRS reward whether you report tax fraud, tax evasion, estate tax evasion, gift tax evasion, corporate tax fraud, unrecognized tax benefits, abusive tax shelters, offshore tax evasion, tax shelter promoters, tax exempt bonds fraud, tax return preparer fraud, Bitcoin tax evasion, tribal sector tax fraud, uncertain tax positions, or even math errors. The IRS Whistleblower Program applies to any underpayment of tax for which you provide information.
With respect to uncertain tax positions, we all know the tax laws are complicated and subject to interpretation. Often the tax laws are interpreted by taxpayers and tax planners differently than interpreted by the Internal Revenue Service. Therefore, although a taxpayer may take a position on their tax return that falls within this “grey” area, should the IRS challenge the taxpayer’s interpretation that too would qualify for a reward under the IRS Tax Whistleblower Program, IRC 7623.
There are many factors to consider in each situation when deciding whether IRS whistleblowing is the right thing to do, and many more factors to consider when trying to figure out which of these alternatives would be the best way to do it. Reporting tax evasion anonymously, confidentiality, security, availability of evidence, and the type and size of the tax issue are just a few of those factors. If you are a professional in the tax or accounting field there are several more unique factors to consider which will be critical to the potential success of your whistleblower claim. An IRS whistleblower lawyer and certified public accountant (CPA) are available to answer your important questions at 855-211-7623.
No Reward. Alternatively, you can submit a Form 3949A “tip form” to report tax evasion in which you provide the IRS with information which again should be specific as possible and should include all the details such as names, addresses, dates, amounts, invoices or whatever other information concerns the specific tax issue you are reporting. This option does not pay a reward, but allows you to report tax fraud anonymously to the IRS. Line 6 of the instructions states the report may be submitted without revealing your identity.