Taxpayers who give the IRS Whistleblower Office (WBO) tips about unpaid taxes could qualify for cash awards. To be eligible, tips must be credible and specific, relate to tax underpayments or violations of tax laws, and be used to collect proceeds. But how is an award amount determined? One tipster received an award equal to 22% of the proceeds but argued it should’ve been 30%. The U.S. Tax Court upheld the 22% award, based on a series of factors the WBO must apply. They include: Did the tipster promptly inform the IRS of noncompliance? Was the tip previously unknown to the IRS? Was it information that the IRS wouldn’t detect on its own? To learn more: https://bit.ly/3zV5qqG
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