The IRS took the initiative to reward those who snitch on IRS frauds and cheats. This initiative the IRS gave is nothing new, and the outcome is great for the IRS and for those who call out the frauds and cheats. Just last year the IRS awarded $312 million dollars and collected around $1.4 billion dollars.
However, to prove that a company or someone is doing fraud you must have solid evidence, like a voice recording of them incriminating themselves. The highest rewarded tipster was given 104$ million dollars. The amount given to the those who snitch depends on how much money the IRS will get or just how much they own to the IRS, which is 30%. Furthermore, the IRS does decline a lot of the reports that come in, if they do not have sufficient evidence.
This is a great marketing initiative of the IRS to collect the money that is owned by rewarding those who snitch on their companies. When the IRS announced about rewarding those who know about fraudulent activity, the rate dramatically increased and now the IRS is getting more money paid back then ever. A reward is the big thing that is being marketed, which is motivating those who know/think something is up.
https://www.wsj.com/articles/the-profitable-prospects-of-snitching-for-the-irs-11556271006?mod=hp_lead_pos9
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