Though US laws always warn the employed residents about tax liabilities, some non-compliant citizens and business entities manage to conceal the income and target at outfoxing the law. Therefore, IRS has generated a whistleblower program to spot the trespassers and reward the “detectives.”
The focal aspect of the program sounds as follows: IRS Whistleblower Office refunds the individuals who identify people and organizations who fail to pay taxes. All disclosed data is accurately examined as the claimant should mandatorily provide proof, including official documents like ledgers and books. If the office deems the disclosed data correct and authentic, the whistleblower is rewarded up to 30 percent of the extra tax amounts, interest gains, and penalty amounts the government raises from the irresponsible taxpayer.
To avoid personal relationship issues and guesses, the IRS Whistleblower Office relies on verified data and serious Federal tax issues. Non-compliant whistleblowers who desire to settle the score with prior business partners or employers will be banned from the program’s privileges.
The benefit is regulated by the IRS Section 7623 (a), and the participants must meet the demands of the Informant Claims Program. Potential claimants should prepare and serve to the IRS an official application for award 211 form, providing all required verifications and proof. The destination address is stated in the application itself. Use the second page to understand the privacy terms and the filing address details.
There are two categories of rewards:
Application for Award for Original Info 211 Form covers one page. You are welcome to browse for the valid document on the IRS portal. To save time and effort, we encourage you to use our advanced template-building online tools and generate an up-to-date PDF file. Enter the inherent info instantly and be ready to file the form within minimum time.
Before you begin completing the document, ensure to leave the upper right section blank. This part is executed by the IRS representatives.
[image 01_leave blank]
The form consists of two parts. Section “A” covers info regarding the non-compliant individual about whom the preparer provides the report. Section “B” is dedicated to the preparer’s personal data. Follow our illustrated guidelines to submit the required details.
Specify If This Is the First Submission
In Unit 1, the preparer should define if the report regarding the business or individual is created for the first time. If positive, check the corresponding box and proceed to the next statement. If there are previous submissions, enter the claim numbers assigned by the revenue service.
[image 02_application number]
Indicate the Entity’s (Individual’s) Tax Identification
In Unit 2, the preparer needs to specify the taxpayer’s data. For individuals, enter the SSN. Entities and proprietorships require TINs or EINs. You need to enter only the last four characters of the tax ID number.
[image 03_tax IDs]
Complete the Taxpayer’s Personal Data
In Units 3 through 5, the whistleblower should identify the taxpayer. Make sure to enter the below-listed info:
Include the legal name and any aliases. Also, add individuals who relate to the breach committed.
If you, as the preparer, are not sure about the trespasser’s date of birth, enter their estimated age.
[image 04_taxpayer’s personal data]
Clarify the IRS Representative Info
In Unit 6, you should enter the IRS representative’s name and contact info (if known) to whom you have reported the tax trespassing originally. Besides, you need to enter the employee’s title.
[image 05_IRS employee]
Describe the Tax Violation
Units 7 and 8 contain info about the tax violation committed by the individual or business identified in Unit 3. The section covers several types of tax law violations. Choose the correct one. If none is applicable, select the “Other” box and provide inherent details.
Next up, you are encouraged to provide extra details and describe your assumptions of the act of violation. Use section 8 to fulfill the task.
[image 06_tax crime]
Explain the Info Source
In Unit 9, the preparer is supposed to clarify how they have learned about the tax law breach. You are empowered to use additional sheets if needed and file the attachments together with Form 211.
[image 07_info source]
Specify the Preparer’s Relationship with the Taxpayer
In Units 10 through 12, the preparer should clarify their relation to the taxpayer identified in Unit 3. Describe the character of your business communication and if it continues.
Submit If There Is a Current Proceeding
In Units 13-14, the preparer needs to clarify if the preparer and the taxpayer are involved in any legal proceedings jointly. If you select “Yes,” please, provide details in Unit 14 or attach an extra sheet with a detailed explanation.
Submit the Tax Amount Owed and Tax Period
In Unit 15, you are encouraged to provide details regarding the tax amounts owed by the trespasser. Here, you should submit proof, including ledgers, books, or other official documentation. If extra space is required, use attachments to describe the aspects.
In Unit 16, provide specific amounts per each tax period at issue.
[image 10_tax amount owed and tax period]
Introduce the Preparer
Use Units 17 through 19 to submit details about the claimant. Disclose info as follows:
[image 11_claimant’s ID]
Specify If the Claimant is IRS-Related
In Units 20 through 23, the claimant should disclose any professional relation to IRS. Select and checkbox the appropriate variant.
Submit the Preparer’s Address
Use Units 24-26 to disclose the claimant’s contact data. Enter the info as follows:
[image 13_claimant’s address]
Authorize the Form
Conclude the form by appending your signature and current calendar date. Read attentively the data disclosed and sign if everything is correct and true. Remember that any knowingly false statement will not only damage your reputation but involve penalties for perjury.
[image 14_preparer’s signature]
File the Paperwork
Compile Form 211 and all attachments (if any) and send the application for the award set to the address indicated on the second page of the respected claim form.