Taxpayers who give the IRS Whistleblower Office (WBO) credible, specific tips about unpaid taxes may qualify for cash awards. To qualify for an award, the IRS must take action based on the tip and the WBO must collect proceeds from that action. In one new case, a tipster alleged tax fraud by several targets, including a foreign financial institution. The U.S. Tax Court found the individual’s information didn’t substantially contribute to the IRS’s action against the financial institution and denied the award. Two prior whistleblowers provided critical evidence that led to a search warrant, treaty requests and a Deferred Prosecution Agreement with the institution. (T.C. Memo 2025-121)
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