IRS Boosts Tax Cheat Whistleblowers

The Internal Revenue Service (IRS) has announced that it will be making it “easier” for whistleblowers to report tax noncompliance to the IRS, through the launch of a new digital form.

Why It Matters

The American tax system is based on the principle of voluntary compliance: taxpayers file returns and pay their taxes.

Noncompliance with tax laws can lead to significant tax gaps, or the difference between tax liability for a given tax year and the amount that is paid on time.

For example, the U.S. system’s annual gross tax gap for the 2022 tax year was well over $600 billion.

The IRS said in a press release that since 2007, the Whistleblower Office has awarded some $1.4 billion to whistleblowers, and that the information they have provided has contributed over $7.86 billion in returned revenue.

What To Know

The form is titled: Form 211, Application Award for Original Information.

A press release issued by the IRS states that with the form, “Individuals can now quickly and securely provide information electronically to the Whistleblower Office. Digital submissions reduce transcription errors and costs and further IRS agency-wide efforts to digitize paper forms.”

To complete the claim, individuals need:

The name, address, and taxpayer identification number of the person or entity being reported
A description of the noncompliance
Documents to support the allegation
An explanation of how and when the person filing the claim was made aware of the alleged violation
A description of the relationship to the subject of the claim
Your own contact information

The form can be submitted online.

The move comes amid some potential broader tax changes. The IRS has laid the groundwork for a significant education-related tax credit effective in 2027. It would allow states to sign up early for a new program under a federal tax law. The program gives people a federal tax credit when they donate money to organizations that provide scholarships.

At the same time, President Donald Trump is considering eliminating federal taxes paid on gambling winnings by Americans, a move that comes as part of a broader campaign to overhaul the U.S. tax system, building on recent legislative developments such as the One Big Beautiful Bill Act.

Meanwhile, Congress is considering major changes to U.S. pensions. That consideration comes after a proposal was put forward by Democratic Representative Eugene Vindman of Virginia, which seeks to make it easier for Americans to build emergency savings without sacrificing their retirement security.

What People Are Saying

Acting Whistleblower Office Director Erick Martinez said in a press release: “Enhancing the taxpayer experience is one of the top priorities of the IRS Whistleblower Office. With the launch of the digital Form 211, whistleblowers can easily share what they know with the IRS from their phone or laptop.”