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.
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.
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 form can be submitted online.
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