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« Marvel's Feb Sales | Main | People make mistakes »

Snitch or Whistleblower?

Under a newly amended rule from the Internal Revenue Service, ordinary citizens can help the tax man cometh -- or at least collect. The new Whistleblower Office is the IRS' attempt to give incentives for you to rat out the tax cheats you know.

That's right. If your employer, co-worker, landlord, neighbor or father-in-law is raking in fistfuls of cash and bypassing Uncle Sam, you can anonymously report the abuse to the IRS and snag a windfall from their dishonesty. As long as the total amount of tax fraud comes out to at least $2 million -- including penalties, interest and whatever else the government ultimately collects based on your report -- you can get a 15%-to-30% cut.

...

Under the old rules, whistle-blowers could seek rewards up to 15% of the amount recovered by the IRS. But it was deemed a failure, mostly because the IRS was under no real obligation to compensate people who came to them with information of underpayments. Under the new law, however, a whistle-blower can make an appeal in court if the IRS decides not to issue a reward.

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By min | April 2, 2007, 8:49 AM | Liberal Outrage