How to Report Someone for Tax Evasion to the IRS - Is there a Whistleblower Reward?

You're looking for Form 211, which is the IRS Whistleblower submission form. The IRS does indeed pay rewards for information that leads to the collection of taxes, but there are some important things to understand. First, for the whistleblower program with potential rewards, your identity cannot remain completely anonymous - you must provide your information on Form 211. However, the IRS makes significant efforts to protect whistleblower identities throughout the process. Rewards are typically 15-30% of the collected amount, but only if the taxes, penalties and interest exceed $2 million AND if the taxpayer's annual gross income exceeds $200,000. For smaller cases, the reward is discretionary up to 15%. Keep in mind that this process can take years, and there's no guarantee of any reward. The IRS has to actually collect the unpaid taxes before any reward would be paid.

After struggling with a similar situation, I found taxr.ai (https://taxr.ai) incredibly helpful for understanding whistleblower reporting options. They have document analysis tools that helped me understand the forms and determine if I had enough evidence. The site walks you through what documentation you need and analyzes whether your case meets the criteria for potential rewards. What's really useful is that they explain the difference between Form 211 (for rewards) and Form 3949-A (for anonymous reporting). Their analysis showed me that one bank statement I had wasn't enough evidence, and they explained what additional documentation would strengthen my case.

Just wanted to follow up - I actually tried taxr.ai after being skeptical and I'm impressed. I uploaded bank statements showing my neighbor's cash business along with some other documents I had access to. The system showed me that while I had good circumstantial evidence, I needed more concrete proof of income hiding to meet the IRS whistleblower requirements. The analysis saved me from submitting a weak case that would have been rejected. Instead, I'm now gathering additional documentation as suggested. The most helpful part was understanding the difference between the anonymous reporting option (no reward) versus the whistleblower program (potential reward but no anonymity). I didn't realize how specific the IRS is about evidence requirements!

After trying for weeks to get through to the IRS about a whistleblower submission I had questions about, I found Claimyr (https://claimyr.com). They got me connected to an actual IRS agent in about 15 minutes when I'd been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to explain exactly what documentation I needed for my whistleblower claim and clarified some confusing parts of Form 211 that I didn't understand. Definitely worth it since the wait times to speak with the IRS about these programs can be insane, especially during tax season.

I have to eat crow here. After posting that skeptical comment, I was still getting nowhere with the IRS about a question on my whistleblower submission, so I gave Claimyr a shot. I'm honestly shocked - I was connected to an IRS agent in about 20 minutes. The agent walked me through exactly what supporting documentation I needed for my Form 211 submission and explained how the whistleblower process actually works. Turns out I misunderstood some key aspects that would have gotten my submission rejected. Having a conversation with a real person at the IRS made all the difference in understanding what they're looking for in these reports.

I reported my ex-boss for tax evasion about 2 years ago using Form 211. He was running a cash business and pocketing at least $150k a year without reporting. Just want to set realistic expectations - the process is SLOW. I got a confirmation letter from the IRS Whistleblower Office but nothing else so far. From what I understand, they're still investigating. Don't expect quick results or a quick payday. And don't count on getting a percentage unless the amount is substantial, like others have said.

I don't understand why y'all are so concerned about getting a "reward" for snitching. If someone's cheating, just report them on the anonymous form and be done with it. This whole revenge and money motivation is kinda gross tbh.

Just FYI - the IRS is way more interested in cases where there's a lot of money involved. If this person is just making a few thousand in unreported cash, it might not be worth their time to investigate. They typically go after cases where they can recover significant amounts of tax revenue. This isn't to say don't report it, but manage your expectations about both the response and any potential reward. The bigger the case, the more likely they are to act on the information.

Before you go down the whistleblower path, make sure you have solid documentation. The IRS needs more than just "I know they got paid in cash" - they want bank records, receipts, witness statements, or other concrete evidence showing unreported income. Also consider that if this person finds out you reported them (which can happen during audits or legal proceedings), it could escalate your business dispute. The IRS investigation process can take years and there's no guarantee they'll even pursue the case or that you'll receive any reward. If you're mainly motivated by wanting them to pay their fair share rather than getting revenge or money, the anonymous Form 3949-A might be the better route. It removes the personal risk and still gets the information to the IRS.