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Is it worth it to report a tax scofflaw to the IRS whistleblower program?

Miami, FL |

I've read that the IRS rarely investigates the reports of whistle blowers. Bloomberg claims only 0.2% of whistle blowers ever receive compensation and usually it takes 7 years. I can name names. First party with at least 10 years at probably more than $1 million a year taxes, not revenue. Most of the staff is off the books and at least some are also illegal. The manager, now fired, was stealing money off the books. The accountant is also a cheat, a party to the fraud and actually steals from the revenues. I thought -man I'm going to turn them in but it looks like I'm wasting my time based on news reports. Am I wasting my time or is it worth it to turn them in?

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Attorney answers 1


From a civic duty standpoint, if you are aware of criminal activity, you should report it to the proper authorities. Whether you receive a financial benefit from doing so should not be a factor in your decision to report the activities.

This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.



The question again is 'am I wasting my time?' If what you say is true, Tara, then why does the Treasury have a whistle blower incentive if not to encourage people to report these infractions? Why not create a law, instead, to compel people like me to come forward? Furthermore, according to news reports, the IRS is failing to investigate and pursue action even when the whistle blowers provide evidence. I'm thinking that it is the IRS whistle blower office that has the civic duty to investigate in the face of evidence. I feel it's a civic duty to pay the fair amount of taxes, which many people do not. I think there's a whole lotta civic duty avoidance going around.