TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Wednesday, May 5, 2010

Americans Are Ratting Out Their Neighbors to the IRS at a Record Pace to Reap Cash Whistleblower Rewards

Bloomberg, Americans Seeking Reward Money Inform IRS on Others, by Ryan J. Donmoyer:

Americans seeking reward money are turning in neighbors, clients and employers they suspect of cheating on taxes to the IRS at a rate of nearly eight per day, the director of the agency’s whistleblower program said.

Steve Whitlock, the director, told an audience of about 200 lawyers, investigators and government officials at a Miami Beach conference on offshore banking that his office receives 40 to 50 tips per month alleging tax liability in excess of $2 million. Americans submit another 200 per month alleging smaller violations, he said.

Whitlock said submissions have surged since the enactment in 2006 of a law that requires the IRS to pay awards of between 15% and 30% in cases where more than $2 million is collected. Prior to the law, both the decision on whether to make an award and the amount of payment were discretionary.

http://taxprof.typepad.com/taxprof_blog/2010/05/americans-are-.html

News, Tax | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341c4eab53ef0134806ec412970c

Listed below are links to weblogs that reference Americans Are Ratting Out Their Neighbors to the IRS at a Record Pace to Reap Cash Whistleblower Rewards:

» A nation of Pavel Morozovs from Roth & Company, P.C.
TaxProf: Americans Are Ratting Out Their Neighbors to the IRS at a Record Pace to Reap Cash Whistleblower Rewards He... [Read More]

Tracked on May 5, 2010 8:41:07 AM

Comments

You vill turn in your neighbors! It is for ze gut of the Stadt!! Ja! Ja! Sieg Heil!!

Posted by: jdogg | May 5, 2010 10:53:19 AM

How much of this is a way to get even with competitors or settle old scores?

Posted by: Shi | May 5, 2010 1:59:30 PM