The IRS is asking U.S. taxpayers to blow the whistle on the misuse, diversion, or fraudulent use of federal funds and grants by tax-exempt organizations, individuals, and businesses.
The tax agency on April 17 issued a Whistleblower Alert, a new way for the IRS to spotlight high-risk areas and reach people who may have direct knowledge of noncompliance.
“We are expanding how we identify potential fraud, and these alerts will help connect us with individuals who can provide credible, timely information,” IRS CEO Frank Bisignano said in a statement.
The IRS Whistleblower Program offers monetary awards of up to 30% of proceeds collected based on whistleblower-provided information. The IRS encourages whistleblowers to report specific, timely, and credible information about noncompliance with tax laws or other laws the agency is authorized to administer.
Whistleblowers should report what they know via Form 211, Application for Award for Original Information, at IRS.gov/SubmitATip.
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In its quest to root out federal funds and grants fraud, the IRS says it’s seeking the following information from the public, which the agency says may help protect taxpayer dollars and ensure that federal funds are used for their intended purpose:
- False statements or misrepresentations in grant applications.
- Misuse of federal funds and grants, including the diversion of funds for personal use.
- Self-dealing or undisclosed conflicts of interest.
- Improper payments to insiders, officers, or related parties.
- Failure to perform required services or deliver promised outcomes.
- Falsified reporting to federal agencies.
- Misclassification of activities to maintain tax-exempt status.
- Any other tax-exempt organization misconduct, such as tax fraud, money laundering, or operating for non-exempt purposes.
- Other criminal or suspicious behavior.
The IRS gave whistleblowers 105 awards totaling $123.5 million for information attributable to $474.4 million in tax revenue being collected in fiscal year 2024.
The total dollar amount of awards paid increased substantially from $88.8 million in FY 2023. The total number of awards in FY 2024, however, decreased from 121 in FY 2023 to 105 in FY 2024.
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The IRS Whistleblower Office intends to issue additional Whistleblower Alerts in the future as other high-risk areas emerge.
Photo credit: bluebudgie/Pixabay
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