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Protecting The Rights Of Employees

Steps to take when filing an IRS whistleblower complaint

On Behalf of | Nov 26, 2021 | blog

Discrimination, whistleblower claims and employer retaliation are common claims under business law in Cranston, Rhode Island. The Internal Revenue Service will take tips from whistleblowers about individuals and businesses that avoid paying taxes illegally. The IRS even rewards the person with up to 30% of the taxes recovered from their tip. The IRS pays for credible and specific information but has strict rules for whistleblowers to collect a reward.

Filing an IRS whistleblower complaint

A person needs to file Form 211 and mail the form to the IRS, Whistleblower Office in D.C. A person needs to check their evidence for accuracy because they’re making claims under the penalty of perjury. The form warns people that false information can be subject to penalties.

Other information for the complaint

A whistleblower needs to give the name of the IRS employee they talked with first. The IRS needs the name, address and how much the tax violator owes. The person has to include details of the violation, how they know the tax violator and how they discovered the information. The whistleblower needs to include as much evidence as possible.

A person can’t do anything illegal to acquire evidence and should tell the IRS where to find evidence they couldn’t. A whistleblower can’t have found evidence as part of their job. They can’t work for the government or be a corporation. A person can’t file if they aren’t allowed to reveal information by law or they want to remain anonymous.

IRS rewards for information

If the tax violator owes taxes, the whistleblower can get up to 30% as a reward. The only way to get 30% of the taxes is if the person makes over $200,000 or the business makes over $2 million. If a person disagrees with the reward, they can appeal the division. The reward is up to 15% if the tax violator earns under $200,000 or the business makes under $2 million. The smaller tax offense rewards are up to the IRS and won’t allow an appeal. Form 211 is for high and low incomes.