What would you do if you were offered money to turn in someone you know owes the government back taxes?
In late 2006, the IRS came to a brilliant realization: Most people would happily send another person to prison for the right price. So, they got a law passed that says: If you turn in a tax cheat, you’re guaranteed 15% of what the IRS recovers. The law took effect in 2008 and now, a few years later, the IRS is happy to report that it’s working TO PERFECTION.
The IRS’s whistle blower office is getting about 40 to 50 tips a month on potential tax cheats . . . which they say is a quote, “dramatic jump” since the law passed. But under the new law, they only want cases where they’re being shorted $2 MILLION or more . . . so you shouldn’t report your next-door neighbor just because he’s writing off family dinners at Olive Garden as a business expense. But if you do tip them off on a big-money tax evasion case and they make a successful bust, you’ll get at least 15% and up to 30% of what they recover . . . depending on how good the info is.