Form 211: Application for Award for Original Information
How do you report fraud to the IRS?
The United States Department of the Treasury has a division called the Financial Crimes Enforcement Network (FinCEN), which is responsible for combating domestic and international money laundering, terrorist financing, and other financial crimes.
If you suspect that someone has committed tax fraud, you can report it to FinCEN by filing a Suspicious Activity Report (SAR).
To file a SAR, you will need to provide basic information about the suspect, such as their name, address, and Social Security Number. You will also need to provide detailed information about the suspicious activity, including when it occurred, how much money was involved, and any other relevant details.
If you have information about a possible tax fraud scheme, you can also contact the IRS Criminal Investigation Division directly. You can find contact information for your local office on the IRS website.
How do I become an IRS whistleblower?
The IRS Whistleblower Office pays people who report possible tax fraud and non-compliance with the tax laws. If you have information about someone who is not paying their taxes, or who is evading taxes, you may be eligible for a reward.
To qualify for a reward, you must have information that leads to the collection of taxes, penalties, interest or other amounts from the non-compliant individual or business. The IRS Whistleblower Office pays rewards based on a percentage of the amount collected, so the more money collected, the higher the reward.
To file a claim, you must submit a completed IRS Form 211, "Application for Award for Original Information." The form must be accompanied by detailed information about the alleged tax fraud, including the name and contact information of the individual or business involved, as well as any supporting documentation.
Once your claim is received, it will be assigned to an IRS examiner who will investigate the allegation and determine whether or not there is enough evidence to support your claim. If the examiner believes that there is enough evidence of tax fraud, they will recommend that the case be referred to the Department of Justice for prosecution.
If the Department of Justice decides to prosecute the case and is successful in collecting taxes, penalties, interest or other amounts, you will be eligible for a reward. The amount of the reward will be based on a percentage of the amounts collected, and will be paid out after the case is resolved. Does the IRS pay you to be a whistleblower? The IRS does not pay individuals to act as whistleblowers. However, the IRS does offer rewards for individuals who come forward with information that leads to the conviction of tax evaders. These rewards can range from 10% to 30% of the amount of taxes recovered, depending on the circumstances.