Fraud Friday: How much does it pay to be a whistleblower?


How much does it pay to be a whistleblower? If the taxes, penalties, interest, and other amounts in dispute exceed $2 million, and a few other qualifications are met, the IRS will pay 15–30% of the amount collected. If the case deals with an individual, his or her annual gross income must be more than $200,000. For dollar amounts under the $2 million/$200,000 thresholds, there is a different process and the awards through this program are less, with a maximum award of 15% up to $10 million, and are at the discretion of the IRS. The whistleblower program has been around since March 1867. (www.irs.gov/compliance/whistleblower-informant-award)

CPAs, get four hours of fraud CPE with our 2020 Fundamentals of Fraud Prevention and Detection On-Demand WebinarClick here for more information.