Report your tax dodging ex to the IRS and collect a reward
If you know someone who’s dodging their taxes, you can report them to the IRS and potentially get a reward for it. The IRS Whistleblower Office offers monetary awards to people who provide information that helps the IRS. The amount you can get ranges from 15 to 30 percent of the money collected based on your information. However, you won’t get paid until the IRS has made a final decision and the taxpayer has no more options to appeal or claim a refund.
Individuals use IRS Form 211, Application for Award for Original Information, to submit allegations of tax noncompliance. The form should include:
- A written narrative describing the alleged noncompliance.
- Supporting information like books, records, receipts, bank records, or emails.
- Details on any supporting evidence not in possession and its location.
- Explanation of how and when the whistleblower learned about the issue.
- Description of any relationship with the subject of the claim (e.g., family member, employee).
- Whistleblower’s signature under penalty of perjury and date.
Individuals must then mail the Form 211 with supporting documentation to:
Internal Revenue Service
Whistleblower Office – ICE
1973 N Rulon White Blvd.
M/S 4110
Ogden, UT 84404
Who is eligible to file a claim for award?
Anyone not listed below can file a claim and receive an award under section 7623. The Whistleblower Office will reject claims from ineligible whistleblowers and provide written notice of the rejection. Ineligible individuals include:
- Employees of the Department of Treasury or those who were employees when they obtained the information.
- Federal government employees who gained the information through official duties.
- Individuals required or prohibited by federal law or regulation to disclose the information.
- Those with access to the information through a federal government contract.
- Individuals filing claims based on information from ineligible whistleblowers to circumvent rejection.
What are the rules for getting an award?
Internal Revenue Code (IRC) section 7623 provides provisions for awards, sometimes mandatory, when the Internal Revenue Service (IRS) takes action based on information from a whistleblower. Claims that offer specific and credible information regarding tax underpayments or violations of internal revenue laws that lead to collected proceeds may qualify for an award.
The Bipartisan Budget Act of 2018 expanded the definition of proceeds to include penalties, interest, additions to tax, and additional amounts under internal revenue laws, as well as any proceeds arising from laws the IRS is authorized to administer, enforce, or investigate. This encompasses criminal fines, civil forfeitures, and violations of reporting requirements.
Generally, the IRS will pay an award of at least 15 percent, but not more than 30 percent, of the proceeds collected attributable to the whistleblower’s information. The percentage decreases if the claim is based on public sources or if the whistleblower planned and initiated the noncompliance actions. Awards are processed as either a section 7623(a) or 7623(b) award.
To qualify for the IRC section 7623(b) award program, the information must:
- Relate to a tax noncompliance matter where the tax, penalties, interest, additions to tax, and additional proceeds in dispute exceed $2,000,000; and
- Relate to a taxpayer, specifically for individual taxpayers, one whose gross income exceeds $200,000 for at least one of the tax years in question.
If a submission does not meet the criteria for IRC section 7623(b), the IRS will consider it for the discretionary program under IRC section 7623(a) of the Code.
Exposing Cheating in Federal Child Nutritional Aid Programs
Few things are as evil as exploiting programs meant for children.
Let’s talk about some people who did just that:
A Chaska resident has pleaded guilty for his involvement in a $250 million fraud scheme. The scheme exploited a federally-funded child nutrition program during the COVID-19 pandemic.
According to court documents, from approximately November 2020 through January 2022, Mohamed Muse Noor, also known as “Deeq Darajo,” knowingly participated in a scheme to defraud a federal child nutrition program designed to provide free meals to children in need. Rather than feeding children, Noor and his co-defendants took advantage of the COVID-19 pandemic—and its impact on program regulations—to misappropriate millions of dollars in federal child nutrition program funds for personal gain.
Court documents indicate that Noor was specifically recruited for the Feeding Our Future scheme despite lacking background or experience in food procurement or distribution. In December 2020, Noor submitted his application to be enrolled in the Federal Child Nutrition Program through Feeding Our Future employee Abdikerm Eidleh, directed by Aimee Bock, the former Executive Director of the Feeding Our Future non-profit organization. Under Eidleh’s guidance, Noor signed forms with falsified meal counts and fabricated invoices, falsely claiming to feed supper and snacks to 1,500 children daily within weeks of being sponsored by Feeding Our Future. However, Noor did not personally serve any meals to these children and never visited the sites registered in his name by Feeding Our Future.
As detailed in the plea agreement, Noor paid kickbacks to Eidleh in exchange for Feeding Our Future’s sponsorship in the Federal Child Nutrition Program. Food distribution sites associated with Noor fraudulently obtained up to $1.3 million in federal child nutrition program funds by falsely claiming to have served meals to thousands of children per day. Almost all of this $1.3 million was either transferred to Eidleh or intercepted by Eidleh without Noor’s knowledge. As part of their arrangement, Noor retained approximately $52,388 in fraudulent proceeds for himself.
Noor pleaded guilty to one count of conspiracy to commit wire fraud.
Stories like these show us how important it is to closely monitor funds meant for children.
Stacie's Tax Stuff 