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The IRS knows they cannot fix this colossal issue just by running routine audits. The evasion is too layered, the money trails are too messy, and digital assets move too fast. They need help. They need specific, credible information from insiders, from people who know exactly where the deception is buried.
That is precisely why, in April 2025, the agency made a move you simply cannot ignore. They released the first ever multi-year operational blueprint: the IRS Whistleblower Operating Plan.
This is not some dull bureaucratic memo. This plan is a strategic pivot. It's a literal roadmap that spells out what kinds of IRS whistleblower tips the agency is actively hunting for and what they are ready to pay millions for. If you have witnessed sketchy financial activity and wondered if reporting it is worth the hassle, the answer has never been clearer. It absolutely is.
Following the Money: Why You Should Care
Before we look at what the agency wants, let's talk about the reward. The law says the IRS must share the wealth with those who help them collect. This is a huge incentive.
- Since 2007, the Whistleblower Office has paid out over $1.3 billion in awards.
- In Fiscal Year 2024 alone, awards totaled $123.5 million, all derived from collected proceeds.
- In qualifying cases, tipsters legally receive 15% to 30% of the money the IRS brings in.
Those numbers are staggering. Yet, the program has been historically underutilized. Why? Because people didn't know what qualified as worthwhile IRS whistleblower tips. The new operating plan is designed to fix that communication breakdown. It tells you exactly what they consider high value.
The 6 Types of IRS Whistleblower Tips the Agency Wants Most
The new IRS Whistleblower Operating Plan makes it clear: they are not interested in small change. They are chasing systemic, high dollar tax evasion. These are the six primary areas where the agency is focusing its manpower and its reward budget.
1. Offshore Tax Havens and Hidden Foreign Accounts
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This is the ultimate old school evasion tactic. Wealthy individuals use complicated layers of foreign shell companies or undisclosed foreign bank accounts to hide income. The IRS is dedicated to dismantling these schemes.
Remember the massive story about former UBS banker Bradley Birkenfeld? He exposed thousands of Americans hiding assets overseas. His reward, a record breaking $104 million, shows how serious the IRS is about these cases. The agency is looking for the next big fish in the offshore pond.
2. Cryptocurrency and Digital Asset Evasion
The days when promoters could claim crypto was untraceable are over. The IRS Whistleblower Operating Plan identifies digital asset evasion as a major focus. The IRS treats cryptocurrency like property. That means every time you trade one coin for another, you create a taxable event.
The agency is hunting for people who:
- Fail to report capital gains from crypto sales.
- Use foreign exchanges or wallets specifically to obscure wealth.
- Treat token swaps or mining income as tax free.
If you work at a crypto exchange, serve as a tax preparer, or have inside knowledge of how wealthy investors are hiding digital assets, your IRS whistleblower tips could be worth millions.
3. Corporate Tax Fraud and Transfer Pricing
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Corporate fraud gets highly technical, but the goal is simple: avoid US taxes. Multinational companies often use a technique called transfer pricing. They sell goods or intangible property to their own subsidiaries in low tax countries at artificially low prices. This shifts the profit outside the US.
The IRS Whistleblower Operating Plan emphasizes the need for tips exposing complex corporate structures, phantom expenses, and attempts to conceal genuine ownership. Corporate insiders, accountants, and financial analysts are in the perfect position to spot these schemes.
4. Employment Tax Violations
This type of fraud is particularly unfair. When a company misclassifies employees as independent contractors, it allows them to skip out on paying payroll taxes, Social Security, and Medicare contributions. This hurts workers and robs the government.
Because these violations are rarely accidental (they are usually systemic), they create substantial tax liabilities. The IRS Whistleblower Operating Plan ensures the agency is aggressively prioritizing these claims. HR professionals, payroll managers, and employees who notice widespread misclassification patterns should pay attention.
5. Abusive Tax Shelters
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These are schemes that sound too good to be true because they are. The IRS is focused on dismantling the structures and holding the promoters accountable. Two schemes in particular are high on the list:
Syndicated Conservation Easements: Promoters sell massive, fraudulent tax deductions based on inflated appraisals of donated land.
Micro Captive Insurance Arrangements: These use small, supposedly internal insurance companies to claim huge, unwarranted business deductions.
The IRS Whistleblower Operating Plan makes it clear that the agency will pursue any complex scheme designed solely to manufacture tax deductions without real economic purpose.
6. Tax Exempt Organization Fraud
Charities and non-profits have tax exempt status because they benefit the public. When that status is abused, it is a serious crime. The IRS is pursuing tips on 501(c)(3) organizations that use tax exempt funds for private benefit. Think directors buying themselves luxury cars or paying for family homes using funds earmarked for the needy.
Nonprofit employees, board members, and volunteers often have the clearest view of whether funds are being misused.
Why Your IRS Whistleblower Tips Will Get Faster Results in 2025
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Maybe you have heard the program takes a decade to deliver a payout. That was often true. The biggest complaint about the Whistleblower Office was the painfully slow process.
The new plan is specifically designed to fix this. It is a commitment to modernization and efficiency.
In 2024, the Whistleblower Office hired 36 new full-time employees, increasing its staff by about 75%. These new personnel are dedicated to improving claim processing and communication. The IRS Whistleblower Operating Plan also details the imminent rollout of a new digital submission portal. This change is huge; it moves the system from slow paper pushing to a streamlined digital workflow, drastically cutting down review times.
Your tip is more likely to be reviewed quickly, investigated thoroughly, and result in an award within a reasonable timeframe.
The Thresholds: Do Your IRS Whistleblower Tips Qualify for the Big Award?
Not every tip gets the mandatory 15% to 30% reward. To qualify for the most lucrative awards under Section 7623(b), your information must clear two specific hurdles, which are heavily emphasized in the IRS Whistleblower Operating Plan:
- The total disputed amount of tax, penalties, and interest must exceed $2 million.
- If you are reporting an individual, their gross income must exceed $200,000 for any relevant tax year.
If you don't hit these minimums, you can still file, but the award is discretionary. The agency's focus is clearly on the claims that meet or exceed these statutory limits.
Common Mistakes That Kill IRS Whistleblower Tips
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The difference between a million dollar payout and a rejected claim often comes down to how you present your information. Here are the mistakes that sink most submissions:
Filing Without Documentation: The IRS needs proof, not hunches. Emails, financial records, contracts, and internal memos matter enormously. If you are just speculating, your claim will be dismissed.
Waiting Too Long: Tax fraud has a statute of limitations. If the violations happened years ago and the IRS can no longer collect, your tip becomes worthless. Time matters.
Filing Second: The IRS operates on a first to file principle. If someone else submits information about the same fraud before you do, they get the reward. Even if you have better evidence.
Poor Presentation: The IRS receives thousands of claims. If yours is disorganized, vague, or incomplete, it will sit in a pile. Professional preparation dramatically increases your chances of success.
Not Understanding Confidentiality Rules: You cannot steal documents or violate attorney client privilege. There are legal ways to gather evidence and illegal ways. Crossing that line can destroy your claim and expose you to liability.
What to Expect After Submitting Your Tips
Once you file Form 211 (Application for Award for Original Information), here's what typically happens:
Initial Review (Weeks to Months): The Whistleblower Office evaluates whether your information is specific, credible, and meets the threshold requirements.
Investigation Phase (Months to Years): If the IRS proceeds, they will conduct audits, examinations, or criminal investigations. You may be interviewed once, but often you will hear nothing for extended periods.
Collection and Appeals (Months to Years): After the IRS assesses taxes, the target can appeal or litigate. Awards cannot be paid until all appeals are exhausted and the money is actually collected.
Award Determination (Months): Once proceeds are collected, the Whistleblower Office calculates your percentage based on the quality and significance of your information.
The average processing time has been decreasing thanks to the new operating plan, but you should still expect the process to take several years from start to finish.
Your Identity Stays Protected
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One of the biggest fears potential whistleblowers have is exposure. The IRS takes confidentiality seriously. Federal law prohibits the agency from disclosing your identity. Even when they pay your award, your name is not revealed.
Additionally, the Taxpayer First Act of 2019 strengthened protections against retaliation. If your employer fires, demotes, or harasses you for reporting tax fraud, you have legal recourse.
The new IRS Whistleblower Operating Plan commits to even stronger protections around confidentiality, security, and privacy in the coming years.
Time to Take Action
The IRS Whistleblower Operating Plan is a clear signal. The IRS has the money, the mandate, and the staff to aggressively pursue these six types of fraud. They are ready to listen.
But you cannot walk into this process unprepared. The agency needs evidence that is specific, credible, and timely. Vague accusations get tossed out. More importantly, the person who files first usually wins the award. You need to present your information to the IRS in the precise language they require.
If you possess firsthand knowledge and documents proving high dollar tax fraud, you should not go it alone.
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Professional representation matters. Tax matters involve complex rules and strict procedures. Having knowledgeable guidance helps ensure your case is handled properly and your rights are protected throughout the process.
If you're facing tax challenges or considering reporting tax fraud, professional assistance can help you understand your options and take appropriate steps.
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