A report by of the Internal Revenue Service (IRS) to Congress says the IRS paid whistleblowers a total of $53 million in 2013 for turning in people who cheated on their taxes.
The report titled “Fiscal Year 2013 Report to the Congress on the Use of Section 7623” says in its executive summary that the IRS is required to pay awards “if information an individual provides substantially contributes to the collection of tax, penalties, interest, and other amounts when the amounts in dispute are more than $2 million.”
The $55 million was divided between 122 awards, with an average award of $435,000. Tips led the IRS to collect more than $367 million in taxes, interest, and penalties.
Under the IRS program, whistleblowers are entitled to receive up to 30% of what the government recovers. To be eligible, the amount must exceed $2 million. The program allows reporting through counsel without revealing the identity of the whistleblower.