The IRS has implemented a rewards program for whistle-blowers that will get them a portion of the taxes administered from the case if they notify the IRS of a discrepancy.
An in-house accountant who raised a red flag about a tax lapse that his employer then ignored, leading him to tip off the IRS, has received $4.5 million in the first IRS whistleblower award.
The accountant’s tip netted the IRS $20 million in taxes and interest from the errant financial-services firm.
The accountant had notified the IRS a few years prior with his complaints ignored. He continued to pursue the case with assistance and turned over the information to the IRS.
In the accountant’s case, the IRS did not deem the issues he raised complex. But the agency said the information he shared pointed out new questions for a routine IRS audit that was already under way.
This program has the potential to bring in a lot of revenue for the IRS and the informant is rewarded for their service to the agency. They hope that the awards will make more tipsters talk.
Source: FoxNews.com