Tattling for Dollars: The Ranks of IRS Tax Informants Grows - DailyFinance

Daily Finance.com reports that a lot more people are informing on others to the Internal Revenue Service the past few years.

Jonathan Berr mentions that there is a good compliance rate of around 85% but that this allows the government to get more dollars than they otherwise would.

The change came about following the passage of the Tax Relief and Healthcare Act of 2006.

For those with a dispute or a grudge with an ex it allows them to get revenge and make a considerable amount of money. The prior law was changed in two significant ways that it is no longer up to the government to decide if they are going to give a reward and only when and how much they feel like but they are now always giving 15-30% depending on the circumstances of collections from tax evasion of money owed which is above $2 million dollars.

An interesting issue being discussed is what if any involvement could the person have in creating the evasion. Bradley Birkenfeld the former UBS Banker who blew the whistle on the massive tax evasion scheme by wealthy Americans is reportedly seeking a reward in the billions although the government does not want to give him anything since he played a role in helping billionaire Igor Olenicoff cheat on his taxes a crime that he is serving a 40 month jail term for.

The article also points out that because of the economic downturn the IRS is making fewer deals with taxpayers to settle for less than is owed.