posted on Mar, 3 2010 @ 01:02 PM
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
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.
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
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
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.