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Report a tax cheat and get a cash reward

Posted Apr 23 2009, 05:05 PM by Karen Datko
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"Mr. ToughMoneyLove" says the IRS rewards whistleblowers who can provide the IRS with solid information about other people's tax fraud.

In other words, don't call the IRS if you just have a hunch. The IRS Web site says:

The IRS is looking for solid information, not an "educated guess" or unsupported speculation. We are also looking for a significant Federal tax issue -- this is not a program for resolving personal problems or disputes about a business relationship.

Would you feel right doing this? Mr. ToughMoneyLove seems to love the idea. (We can hear his malevolent gleeful snicker.) "Do you know of any likely suspects?" he writes. "Maybe an evil supervisor (think ‘The Green Mile' or ‘Office Space') or that jerk of a brother-in-law?"

Mr. ToughMoneyLove's post at Tough Money Love, "Report a tax cheat for a feel-good reward," explains that there are two avenues for ratting out blowing the whistle on cheaters. (Read his post for more details.)

  • Under one program, reporting nonpayment of more than $2 million in taxes, penalties and interest would reap a reward of 15% to 30% of the taxes recovered.
  • Under the other, there's no $2 million bottom range. It's up to the IRS commissioner's discretion how much you'll get paid, with a maximum of 15%, up to $10 million.

Mr. ToughMoneyLove adds, "This part you also will like: You can remain anonymous unless your testimony is necessary to prove the existence of the fraud."

Related reading:

The world's richest tax cheats

Oldest profession escapes sin tax

The IRS feels your pain

New cigarette tax is no April Fools' joke

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Comments

 

My husband reported his ex for over 300K of alimony she didn't report.  He was told that they don't care about small amounts like that.  So who do you know that hasen't paid on 3 million.  Sorry, I don't have friends that make that kind of money, and chances are your don't either.

Joyce (Posted 04.26.09 10:25 AM ) Report Abuse

THE GOVERNMENT TRYING TO TURN EVERYONE INTO SNITCHES. SOUNDS A LIL 1984 TO ME

A.D. (Posted 04.26.09 3:27 PM ) Report Abuse

I know a guy that has not files income taxes in 10 years.  He owes well over 5 million in unpaid taxes but the IRS wasn't interested in him either.

Nightwing (Posted 04.26.09 3:39 PM ) Report Abuse

snitches get stitches

HoldenMcGroin (Posted 04.26.09 7:21 PM ) Report Abuse

If the IRS would collect on EVERY tax cheat from the ones who would probably owe a few hundred dollars to the ones who would probably owe several hundred dollars to the ones who would probably owe several hundreds of dollars to the ones who would probably owe several million dollars to the ones who would probably owe hundreds of millions of dollars then we could fix every social problem in this country and still pay for our own military upgrade(s) as well as military service pay and still have plenty left over so that we would never ever run a yearly budget deficit and we could also even pay off the national debt completely.

Bill Stewart (Posted 04.26.09 8:42 PM ) Report Abuse

debt is necessary for the countries economy to function.

read: the two faces of debt writen and published by the fed reserve

south618 (Posted 04.26.09 9:41 PM ) Report Abuse

It's amazing. A tax cheat is a tax cheat-the dollar amount shouldn't matter.  Whether its a paltry 300K or 10 million, the IRS should go after them.  That attitude is a slap in the face to those of us who fulfill our tax obligations as the price for living in this country.

Dorothy Bruce (Posted 04.26.09 9:50 PM ) Report Abuse

Imagine what would happen if nobody in the US filed taxes AT ALL. Power would be back in the peoples hands again.

Fighter (Posted 04.26.09 10:19 PM ) Report Abuse

Yeah, I worked years ago for a tax cheat. He and his wife owed $90K in back taxes at the time I knew them (2003). They had to pay their house rental a year in advance because of their bad credit. Despite this, they were allowed to be insurance agents, incorporate several businesses, and retain their CPA and bar designations. Can't say as I'd really bother with the IRS program after that. I got another job within a month. They're still in business.

MikeInIndy (Posted 04.28.09 9:37 AM ) Report Abuse

I'm a small business owner who, when I am paid by my clients, receive a check in the name of my company that gets deposited into my company bank account.  Hence, I pay tax on every last dime I make.  Over the years, I've become very much aware of many people who have businesses, and do not pay tax on all of their income.  For example, I needed to have some trees removed from my property.  The guy wanted me to pay him in CASH!!  When I refused, he then asked me to make out the check to his girlfriend! (which I also refused to do)  Do you think he pays tax on his money??!  The guy next door to me operates (illegally from his home in a residential neighborhood) a car repair, towing, and car lot.  He has a steady stream of customers.  Do you think he pays tax on all of his money??  Heck no!!  This is what I have a big problem with....our tax system is set up very unfairly.  Let's eliminate the current system and go to a larger sales tax instead, exempting food and medicine (and whatever makes sense) from the sales tax.  That way, if you buy really big-ticket items (like planes, yachts, etc.), you'll naturally pay the most tax.  But this way EVERYONE will pay their tax!!!  I'm sick of these people skirting the system!!!

ImTaxedToTheHilt (Posted 07.10.09 2:04 PM ) Report Abuse

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