More Details about the IRS Program
There are a few technical requirements you must strictly follow and some risks to consider.
Submitting a Detailed Application. To receive a reward, you must submit more than just the IRS Form 211. You must meet certain technical requirements and provide the IRS with a detailed submission describing the tax evasion, including the evidence in support, the amount of underpayments, and the legal and factual reasons why taxes are owned. You can and should use an attorney to prepare and file the application and attachments and be your advocate before the IRS. Below are two main technical requirements that also must be met.
Affidavit. You must sign an affidavit (a statement under oath) certifying that the information supporting your allegation of tax evasion is true.
Dollar Amounts. The new IRS Reward Program has a threshold requirement of $2 million minimum in unpaid taxes to receive a reward. However, our threshold amount for taking a case is $5 million.
When calculating the $5 million figure, be mindful that this means that there was an underpayment of taxes in the amount of $5 million. This is not the same as under-reporting of income by $5 million. For instance, if a person or company is in the 30% tax bracket, they would need to under-report income or overstate expenses by $17 million to equal an underpayment of taxes of $5 million.
Click here to read the IRS guidance issued on December 19, 2007.