The United States of America Will Pay Huge Rewards to Anyone Who Exposes the Underreporting of Tax

THE PROBLEM:  Billions of Dollars in Unpaid Taxes

In the United States of America, a small percentage of taxpayers (i.e., individuals, businesses, trusts, and estates) underreport and fail to pay up to $400 billion in taxes every year, according to a study released by the Internal Revenue Service.  This small group is comprised of an elitist group of wealthy Americans and businesses who neglect or refuse to pay their fair share of tax and who undermine the stability of the country to satisfy their own personal greed.  This missing revenue causes unnecessary increases in annual deficits, national debt, and national interest payments.  In the end, this missing revenue must be made up by honest Americans through higher taxes.

Each year, the United States is forced to spend over $11 billion to finance IRS enforcement efforts aimed at catching individuals and corporations who underreport and fail to pay tax. However, the schemes, devices, and shelters used by these individuals and corporations to avoid the payment of tax have become so sophisticated that efforts by the IRS to detect them have failed.  As a result, the annual amount of unreported and unpaid tax has steadily grown each year.  Confronted with the devastating effect of the ongoing and systematic underreporting of tax by individuals and corporations, the United States is taking a new approach to enforcement efforts aimed at detecting the underreporting and nonpayment of tax.

THE SOLUTION:  The American People

In recently enacted legislation (December 2006), Congress turned to the American people to expose taxpayers (i.e., individuals, businesses, estates, and trusts) who underreport and fail to pay tax.  The United States has announced that it will reward any person who provides information that leads to the identification of $2 million or more of unreported tax, including interest and penalties.  This new legislation guarantees that any person who provides information under this “Tax Whistleblower Reward Program” will receive a minimum of 15%, and a maximum of 30%, of the amount that the IRS actually collects.  The new law, which provides a potential “windfall” to honest Americans who expose those who underreport and fail to pay tax, is known as the IRS Whistleblower Reward Program.