Taxpayers who give the IRS Whistleblower Office (WBO) credible, specific tips about unpaid taxes may qualify for cash awards. Several conditions must be met, including: The IRS must take action based on a tip provided. Also, proceeds must be derived by the WBO based on the action taken. One tipster alleged that a tax-exempt entertainment and hospitality provider didn’t qualify as a charity. The tipster also claimed the target owed unrelated business income tax exceeding $40 million for three years. Ultimately, the IRS made no changes to the tax owed. Because there were no proceeds collected, no whistleblower award was made. (TC Memo 2024-94)
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