Monday, January 5, 2009

If you've got the dope on a tax dodger, here's how to jumpstart your own stimulus check.

Ready to put some of that "little bit" of tax revenue into your own pocket?

You could be just a phone call away from riches. Just dial the Informant Communication Hotline at 1-800-829-0433. Be sure to tell them upfront that you want to file Form 211, Application for Reward for Original Information. You can download the form: http://www.irs.gov/pub/irs-pdf/f211.pdf

Without it, you won't see any monetary reward.

Form 211 will ask for your true name and signature. Mail it to the Informants Claim Examiner at the IRS center nearest you. Addresses are listed on the back of the form or call the Informant Communication Hotline for help. Here are the details: http://www.irs.gov/irm/part25/ch02s01.html

Here's where the quality of your information is critical. IRS investigators are swamped with leads, most of them more vindictive than substantial, and understandably tend to pursue those with the best likelihood of recovering substantial revenue.

The information you provide could be rewarded by the IRS on one of three levels based on the amount recovered:
15 percent for specific information responsible for the investigation and a factor in the recovery,
10 percent for information, but not specific, resulting in an investigation and determination of tax liabilities and
1 percent for information leading to an investigation, but with no direct relationship to the determination of the tax liabilities (for instance, you only supplied a name).

To increase your reward chances, provide as much detail as you can. The IRS is especially grateful when informants have the tax cheat's full name, address, Social Security number, tax years involved, types of violation, bank account information and any documentation you might have to support your claims. You need to provide this to the cheat's local office of the IRS:
http://www.irs.gov/localcontacts/index.html

If somebody just says, 'My next door neighbor just pulled up in a new Jaguar, I know he's not reporting all of his income,' that is not very useful information. On the extreme other side, 'I was the bookkeeper for this company and during that period of time, this is what Bob had me doing with the books and by the way, here's a copy,' that's clearly 15 percent.

It absolutely depends upon the type of information, the quality and detail of the information and the amount your boss, relative or "friend" is hidding from the IRS.

ME? The IRS and I are on good terms... I always owe them money and they know it!

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