Blowing the Whistle can be more Lucrative than Winning the Lottery

Businesswoman holding financial reward for whistle blower claim to the IRSBlowing the whistle on a tax-payer that has failed to pay taxes that they owe could be a cause for huge financial gain. Due to the large number of budget cuts within the IRS, the number of audits that the IRS can conduct has been greatly reduced. As a result of this, the Internal Revenue Service is depending more and more on informant claims.

The Bipartisan Budget Act of 2018 has expanded the definition for whistleblower informant awards. question. If the credible information from the informant is used in any way to collect taxes, penalties, interest or other quantities, the IRS may pay an award. The IRS has the ability to pay a substantial award of varying degrees depending on the amount of unpaid taxes in question. If the unpaid tax amount exceeds $2 million, and some other stipulations are met, the IRS will pay a percent of the amount acquired from the tax-payer or business in question. According to Internal Revenue Code 7623, there is technically no limit on how much the IRS can award to an informant if there information proves beneficial. Generally speaking though, the IRS will pay 15 to 30 percent of the amount collected.

There are some other qualifications that must be met: if the case concerns an individual, his or her gross income per year has to be greater than $200,000. There is a second award program for whistleblowers reporting on disputes of less than $2 million dollars and or cases of individual taxpayers with annual gross incomes of less than $200,000. The award for these cases is, of course, smaller, with a greatest possible award being 15 percent of the funds collected, up to $10 million.

At the end of the day, if you help the IRS out in this way by simply telling the truth about what you know, the odds of winning the reward are way higher than the odds of winning the lottery. Read more…

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Tax Collection Reminder by Vivian Hoard

Calendar showing tax day circled in red | Vivian Hoard | Tax Attorney| Atlanta, GAIt is in the best interest of the individual who owes taxes to the federal government to enroll in some type of installment agreement to pay those taxes.

Generally speaking, the IRS can requisition an assessed tax for 10 years from the date of assessment. Individuals are only expected to pay what they can afford in correspondence with published collection financial standards.

In some instances, those standards can be negotiated depending on the individual’s situation. The IRS is able to accept an installment agreement to pay the entire liability. However, the IRS can also accept an installment agreement from the individual to pay a part of the liability with the balance expiring at the end of the collection statute of limitations.

Unfortunately, the IRS is able to reduce the deficiency to a judgment against the individual if the individual fails to pursue any sort of resolution for their back taxes. Additionally, the IRS is able to increase the 10-year period on collection by way of 26 U.SC. Section 6502(a). The extension stands until the judgment is fulfilled or becomes unenforceable under state law. This was true in the recent case of a Kentucky taxpayer (See U.S. v Thomas Nugent, No. 5:16-cv-00380, U.S.D.C. for the Eastern District of Kentucky, January 12, 2018).

In order to be authorized for an installment agreement, a taxpayer needs to be “current.” It is imperative that they have filed all tax returns that are due, and paid taxes for the most recent period by way of employer withholdings or estimated tax payments. Read more…

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