Calling All Rats - The IRS Will Pay You To Snitch On Your Friends and Family

f you knew coworkers, former bosses or exes who cheated on their taxes, would you turn them in? The Internal Revenue Service can make it worth your while.

As tax season nears, we all want to get as much money back from the IRS as possible. And while taking advantage of this year's new tax breaks will put some extra money in your pocket, snitching on a tax cheat could make you rich.

In a recent poll from the IRS Oversight Board, 13% of those surveyed think cheating is acceptable, up from 9% in 2008. As the recession puts the squeeze on household finances, the lure of fudging on a tax return is even greater.

"In a down economy, the temptation to cheat on taxes is much stronger because people are in more desperate situations more often," said Bill Raabe, a tax expert at Ohio State University's business school.

More people may be just as desperate to turn in a business, rat out an ex–spouse or report a colleague to collect a reward.

Small–time crooks: The IRS's informant program has been around for more than 140 years. If you suspect a person is committing tax fraud and report it, you could receive up to 15% of the amount that has been underpaid, with a maximum award of $10 million.

Informants are required to complete a claim, which is available on the IRS Web site, and mail it to the agency or call the IRS tip line at 1–800–829–0433. While you must reveal your identity to the IRS, your name will not be made public.

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At a time when more and more people are struggling to make ends meet in a horrible economy the IRS predicts that there will be no shortage of tax filers looking to cut corners or withhold earnings during this tax season. Since the IRS can't be everywhere at one time, they are appealing to the worst human trait of all....greed.

In short, the IRS will pay a percentage of the collected revenue to anyone who is willing to rat out their spouse, employer, neighbor or family member. While you must provide detailed information about the offender, it is done anonymously and with little risk of exposure. You can receive up to 15% of the amount collected.

The IRS pay to snitch program relies heavily upon disgruntled employees, mostly middle management types who have not been able to progress forward and have a grudge to settle. And surely the entire segment of ex spouses who undoubtedly will cash in at the expense of a former wife or husband who may be witholding from Caesar.

My question here, is this morally a correct thing to do on the part of the IRS? Should they even be putting this type of program out there, encouraging people to become informants and rats? And how do you protect one's own self from someone filing a faulty claim and making your life a living hell?

And lastly......is it ok for family members, friends and employees to snitch on their neighbors and co-workers for financial gain? Isn't this "bottom of the barrell" type of behavior? Using money to entice people to snitch appeals to the lowest common denominator and sets a very poor precedent.

On a personal level this whole thing disgusts me, snitches are the lowest form of insect. Especially pertaining to a situation like income tax when no real crime has been commited, unless you consider not paying the government goon squad their yearly kickback a crime.

I don't see any difference in this than in any other bounty program.

Does it piss me off when I know my friends cheat on their taxes? You bet.
Do I call them on it? You bet.
Does it piss me off when they call me a sucker for playing it straight? You bet.
Am I going to turn them in? I've thought about it, but no, probably not.



[edit on 3/3/2010 by Phage]

Everybody snitch on everyone else.

Give them so much to do they couldnt possibly do it.
Grab a phone book and start with Aaron Aaronson.

Well that's just horrible!

I wonder if the reward is tax free?

Originally posted by thisguyrighthere
Everybody snitch on everyone else.

Give them so much to do they couldnt possibly do it.
Grab a phone book and start with Aaron Aaronson.

I was thinking the same thing, report so many people that it bogs down the machine.

Apparently you do have to supply your name and info to the IRS in order to receive a payoff. I guess treachery has no bounds for some people, and it doesn't pain the IRS scum to use American citizens against each other in order to collect their blood money.

There is a catch... your reward is a percentage of what's owed...

now given that fact... I don't know anyone who has enough squirreled away hidden from the IRS for me to bother with...

I know they want people who are hiding tens of thousands but my peers are the type to hide maybe a couple hundred here and there... what's the percentage of that? 5 bucks to turn in a neighbour and friend...naw not worth it

this isn't a new policy. it's been around for a long time and, in truth, is it any different from, say, the NYPD's tip hotline? They give you 5 grand (I think) for a tip that leads to an arrest.

Or the Govt' offering millions for Bin Laden?

Nope. I'm not snitching on anyone. Even if it was my worst enemy.

The way I see it, until the government can prove themselves responsible with taxpayer money, my support goes to the taxpayer who knows how to keep it even if it's not fully on the up and up.

The IRS is a corrupt system. If a crook gets conned by a crook, tough beans. Don't come crying to me to rat out someone who is stealing from a government sanctioned mafia like entity.

ETA: And just for the record, I'm not 'anti-tax' and understand we need taxes to run our country. However, the government has proven themselves to be buffoons when it comes to handling money. Not to mention, too many horror stories of good, hardworking citizens being screwed over by the IRS. I just have no sympathy.

[edit on 3/3/2010 by AshleyD]

Originally posted by Phage
I don't see any difference in this than in any other bounty program.

Does it piss me off when I know my friends cheat on their taxes? You bet.
Do I call them on it? You bet.
Does it piss me off when they call me a sucker for playing it straight? You bet.
Am I going to turn them in? I've thought about it, but no, probably not.



[edit on 3/3/2010 by Phage]

All due respect but I have a hard time understanding why someone you know finding a way to NOT have to pay all of their income to the IRS would anger you.

If the same opportunity to do the same were available to you, then you too would have that same option. They are taking a huge risk by doing so and if caught surely would be punished to the fullest.

If you prefer to be straight laced and do things by the book I can respect that, and in turn you can sleep at night knowing there wont be an audit in your future. But why show hostility towards those who wish to try and circumvent the tax goblins?

In my opinion a corrupt criminal organization such as the IRS, an entity which is responsible for countless horror stories and nightmares in regard to ruining American lives, gets no sympathy here. If you can find a way to beat the corrupt system and beat the criminals at their own game then I say do it.

And anyone who snitches on their neighbor for trying to defy the great monster is petty and venomous and cannot be trusted.

reply to post by AshleyD


I understand the thought, believe me. And no, I wouldn't be likely to turn anyone in to the IRS. But people scamming the IRS aren't doing anything but stealing from all of us. The honest people pay more because of the crooks.

If you saw someone offloading hot big screen tvs from WalMart, would you report it? I don't see much of a distinction. Avoiding taxation is one thing. Evading it is something altogether different. The problem I think is way too many people see it as an unfair and onerous system, so there's little compelling reason for compliance other than the fear of prosecution.

One answer might be to make taxes logical and fair and eliminate the loopholes for the mega wealthy. Flat tax, anyone?

reply to post by BlackOps719

All due respect but I have a hard time understanding why someone you know finding a way to NOT have to pay all of their income to the IRS would anger you.

I don't pay all of my income to the IRS and I don't know anyone who does.

While not wanting to get busted has a certain amount to do with my reasons for keeping things above board, it is a low priority. I have plenty of opportunity and am able to avoid the temptation. The risk of getting busted is not high, not many get caught.

So we fight the "crime" of the IRS with more crime. Sorry, I'm not taking a ride on that boat.

And anyone who snitches on their neighbor for trying to defy the great monster is petty and venomous and cannot be trusted.

It can also be argued that anyone who cheats on their taxes will cheat in other aspects of their lives and cannot be considered trustworthy.

[edit on 3/3/2010 by Phage]

reply to post by Phage




I guess it comes down to one question.....is it a crime to steal from the criminals?


Now more than ever our government is robbing and stealing from it's tax base like never before, gouging working Americans in order to rake in ungodly tax revenue to do eveil across the world.

What if you feel like your tqax dollars are being spent to fund unethical, criminal enterprises...like say for instance an unsolicited war against people who have done us no harm?

And we should all know, income tax is not used to build schools and highways and parks. It is used to pay the rachateers at the Federal Reserve, it is a ransom that is paid to fund the enemy of the people.

So why is it ok for our government to abuse and cheat the American tax payer at every turn, but the tax payer trying to earn a living has to forfit half of their income willingly and honestly to a rogue criminal enterprise?

I understand what you are saying, but I must disagree with many of your points. And for struggling Americans to turn on other Americans who are in the same boat as them for profit, that leaves a bad taste in my mouth.

Hey, I think we should all start to investigate the taxes of the people in government.

I wonder if anyone was given any bounty for Rangle or Geithner?

Time to fire up the old FOIA requests and start nailing some Government tax cheats.

Turn about fairplay?

It's the same concept as Crime Stoppers. You call them if you know the where-abouts of criminals, in turn you get a cash reward. The difference for me is that if I knew where a criminal was, I'd let the authorities know so they can get him/her off the streets. If I knew someone cheated on their taxes I would NOT tell the IRS on them. they'll fins a way to get there money without me snitching on a neighbor or friend.

reply to post by BlackOps719

By this same logic it is justifiable for major corporations to cheat on their income taxes. They're just "fighting" the IRS, right?

Wow...this could be lucrative. Do you have to know someone personally to turn them in? Because if that is the case I want to turn in a list that includes folks like Tim Geithner, Rangel, Pelosi, the Clintons, the Bushes, Oprah, et al.
I bet there are a lot of wealthy actors, bankers, and business owners who cheat on their taxes also. I better get busy....I have a lot of people to report to the IRS.

reply to post by endisnighe




That sounds like a grand idea......or even better how about we audit the Fed and actually see where all of this tax revenue is really going?


Great idea but it will never happen. Washington politicians and corporate CEO's exploit every loop hole known to man with off shore accounts and trsusts, after all he who makes the rules would surely know how to bend them.

If you are a politician or on the payroll then you can do as you wish, but if you are a regular tax payer you are expected to lay down and take it because it is the "right thing to do".

reply to post by BlackOps719


Yeah, I know, I was kind of being facetious.

Just imagine though, if a million people sent in snitch reports on the asshats. Or better yet, a list of all the IRS agents, saying all of them should be audited.

I would really like to be in one of those backrooms listening to those conversations.

Click here for more information.

You know what, I may just put together a list of all the people elected to office in the Federal government, including the Supreme Court. Then send that to the nearest IRS office suggesting that all of these people should be audited. Maybe add on to the list, all presidential appointments also.

I wonder if I would get a response.

I think I am going to do this. If any of them in the future get in trouble for tax problems, would I get the money offered? Could I sue the IRS for it?

There is a possibility here.