WASHINGTON, D.C. — The Internal Revenue Service is asking the public to report suspected misuse of federal funds, launching a new alert system aimed at identifying fraud involving tax-exempt organizations, businesses, and individuals.
The agency issued a Whistleblower Alert highlighting concerns about potential fraud and misuse of federal grants, marking a new effort to identify high-risk areas and gather information from people with direct knowledge of violations.
The IRS Whistleblower Program allows individuals to submit information using Form 211, a formal application for a monetary award tied to enforcement actions.
Officials said the alert focuses on potential misconduct involving federal funds and tax-exempt entities.
Examples include false statements in grant applications, diversion of funds for personal use, undisclosed conflicts of interest, and improper payments to insiders or related parties.
The IRS is also seeking information on organizations that fail to deliver promised services, falsify reports to federal agencies, or misrepresent activities to maintain tax-exempt status.
“Whistleblower Alerts are a new way for the IRS to spotlight high-risk areas and reach people who may have direct knowledge of noncompliance,” said...
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