Know a tax Cheat?

[stimpyzu]

I've read the article "Know a tax Cheat?" by Jeffrey Strain. I do know of one, but all the documentation are with the lawyers and for ethics reasons, they can't say anything, but I sure want to!

Any advice?

[ThriftoRama]

Well, no one but you can make a decision based on your ethics. But I will say this. If you're tempted because of the payout the IRS offers to people who turn tax cheats in, it probably isn't worth it. I have a friend high up in the IRS who says most people who turn people in get next to nothing for it, and even if they do,it's only a small percentage of the assets the IRS actually recovers, not the amount the tax cheat actually owes. Just a thought...

[cindyg86]

My brother's best friends' father was a tax cheat. They had tons o'money due to it but of course, was eventually caught. Now the father is in federal prison and my brother's friend and his mother have definitely been knocked down a few rungs on the social class ladder.

it's sad. They should spend all their time actively saving and learning about finance as opposed to cheating the system.

[MonkeyMama]

I don't think you need any documentation to turn in a tax cheat. There is a form you fill out (probably mentioned in Jeffrey's article). You provide the info you can. You really don't need much info. Like their name and address and the nature of their transgressions is all you need for them to be scrutinized further.

The IRS has also revamped their reward system, for turning in cheats who owe something like six figures. So if you know a BIG tax cheat, the rules have really changed and it is quite rewarding. OF course, few people will have this insider info. (Yes, under the old rules whistle blowers rarely got anything).

Beyond that I have to agree with Thrift - really a personal call.