The IRS Whistleblower Program provides monetary incentives for persons who voluntarily provide the IRS with specific credible information about possible violations of the Internal Revenue Code that result in the collection of taxes, penalties, interest, or other amounts from a noncompliant taxpayer. IRS whistleblower rewards can be up to 30% of the additional tax penalty and other amounts the IRS collects.
The IRS program provides for two types of rewards:
- The IRS will pay 15 to 30% of the amount collected if the taxes, penalties, interest and other amounts in dispute exceed $2 million, and, if the case involves an individual, his or her annual gross income must be more than $200,000; or
- The IRS will pay up to 15% of the amount collected, up to $10 million, if the case involves an individual taxpayer with gross income of less than $200,000.