WASHINGTON — The Internal Revenue Service is making it easier for whistle-blowers to collect rewards for turning in big-time tax cheats.
The agency proposed new rules yesterday to jump-start a five-year-old program designed to entice people to turn in businesses or individuals trying to bilk the government out of $2 million or more in taxes.
The IRS issued guidance last summer saying that whistle-blowers could get rewards only if their tips resulted in businesses or individuals paying additional taxes. The new rules would qualify whistle-blowers for rewards if their tips prevent businesses or individuals from claiming illegitimate tax refunds. Whistle-blowers could also benefit if their information results in a company getting fewer tax credits.
