IRS Large Case Informant Program

IRS Large Case Informant Program

In an attempt to help reduce the nation's $290 billion tax gap, the Internal Revenue Service has, for many years, looked to tipsters for information on companies and individuals who are not complying with the tax laws. To aid in that effort, President Bush, in 2006, signed legislation authorizing the IRS to pay sharply higher rewards to informants in cases involving large amounts of money.

In some cases, the reward could be as high as 30% of the amount collected by the IRS. However, to be eligible for the reward, the total amount of taxes, penalties, interest, and additional amounts in dispute must exceed $2 million. And, if the allegedly noncompliant person is an individual, that person's gross income must exceed $200,000 for any taxable year at issue in the claim.

The amount of the reward generally will be at least 15%, but not more than 30%, of the collected proceeds in cases in which the IRS decides the information submitted by the informant "substantially contributed" to the collection of tax. The IRS can award smaller percentages in certain cases. And, obviously, the IRS can't pay a reward until it actually collects and the case is officially over.

If you have information regarding the evasion of tax by any individual or company, and you are able to support your claim with documentation and paper trails, call Zinn Law Firm, P.A. today to discuss filing a claim with the IRS. Although it can take many years to collect any award, it could be well worth your time. And, you will have the satisfaction of knowing that you are helping ensure that others are complying with the tax laws.