Filing Taxes: Top Ten FAQ
Is it true that the IRS pays rewards for turning in tax cheaters?
7. Is it true that the IRS pays rewards for turning in tax cheaters?
Yes, but you don't get the reward until the IRS collects from the cheater. There are two different programs depending on the amount of money involved. For cases involving less than $2 million or individual taxpayers with gross incomes of less than $200,000, the maximum amount that can be awarded is 15% of the amount collected. These awards are discretionary and the informant cannot dispute what the IRS decides. If the case involves someone whose gross income exceeds $200,000 or the amount involved is over $2 million, the IRS will pay 15% to 30% of the amount collected.
Typically, you will never know what action, if any, is taken on your tip, but if you want to try it, submit IRS Form 211.