The April 15th deadline to file your 2009 Tax Returns is fast approaching.
Finding tax credits and tax deducations can make filing your tax return a little less painful, but what about snitching on tax cheaters?
According to MSN money, tax snitching is a non-conventional way to score a little money from the tax man.
The IRS whistle blowing program has actually offered cash bounties to citizens who turn in tax cheats for over 140 years!
If you snitch on a tax cheater, you could be paid based upon of all the recovered tax and penalties collected as the result of your tip, up to a maximum payment of two million dollars.
If you find the idea of snitching to the IRS deplorable, you should know that its the honest tax payers who end up paying for tax cheats, to the tune of $127 billion per year. That’s 1,000 extra in taxes for each of us every year.
Tips are important to the IRS.
Annually, the IRS collects more than $100 million and pays out from $2 million to $5 million to snitches.
If you plan on filing a tip we should warn you. As the saying goes, no good deed goes unpunished, and an IRS reward is considered taxable income.
IRS Publication 733 outlines the regulations for claiming a reward.
To file a claim as an informant, you need to fill out Form 211.
In order to collect a reward, you must be willing to fill out your own name. However, your personal information will be protected, as the IRS is legally prohibited from disclosing the identity of an informer to unauthorized persons.
If you have any questions about reporting a tax cheat you can call the agency’s fraud hotline at 1-800-829-0433 for help.
Don’t wait while the interest and penalties you owe to the IRS continue to mount. Contact the tax attorney at the Strom Law Firm, LLC today for a free consultation to discuss how we can help you put your IRS tax debt behind you. Our lawyers proudly edit the Columbia, South Carolina Injury Board as well as the Strom Law Blog as a pro bono effort to provide the public valuable information. Our lawyers are licensed in: South Carolina, New York, and Georgia