Sequestration prompts IRS to cut reward for whistleblowers who turn in tax cheats

[Redfairen]

Source: AL.com

Whistleblowers now have one less reason for turning in someone they suspect of not paying their taxes. Actually, they now have 8.7 percent less reasons.

The Internal Revenue Service announced budget cuts caused by sequestration will lower the amount paid to those who turn in corporations or individuals who are suspected of not paying their taxes. Those who turn in tax cheats are eligible for up to 30 percent of the recovered amount, including the amount of the back taxes, fees and penalties.

Now, because of the across-the-board cuts from sequestration, the IRS announced each award will be lowered by 8.7 percent. If Congress doesn't do something to end sequestration, the reduced amount will stay in place through the end of the year.

.......

The refundable portion of the Small Business Health Care Tax Credit that's given to certain small tax-exempt employers will also be reduced by 8.7 percent. The tax credit is designed to help small businesses cover the cost of employee health insurance.

Read more: http://blog.al.com/wire/2013/03/sequestration_prompts_irs_to_c.html#incart_river_default

[Bay Boy]

1. That makes no sense...

...cutting back on the reward only cuts back on the number of people other people are willing to rat out.

[AnotherMcIntosh]

7. x2. The payments to whistleblowers are self-funding and cutting back serves no good purpose.

[naaman fletcher]

8. It serves the purpose of a scary press release. nt.

[Paul E Ester]

10. ding ding ding.

What would be the point of cutting their budgets if no one notices. The first thing they did during the California budget crisis was close the state parks. It makes a lot of noise and little sense.

[L0oniX]

2. Won't change anything for the too big to fail sociopaths. n/t

[One_Life_To_Give]

3. They only report the wrong people anyways

They report people with money who have friends and make political contributions. Not the working poor who can't defend themselves.

[LiberalFighter]

4. 30% could be a huge chunk of change

I'm sure they would get good results with 20%.

[LiberalFighter]

5. Everyone should whistleblow on

Romney
McConnell
Boehner
Paul Ryan

All those corporate big shots that steal exorbitant salaries and benefits from their company.

[broadcaster75201]

6. Meh. I wouldn't turn anyone in to the IRS. Don't care who they are. NT

n/t

[naaman fletcher]

9. I used to have that view

But recently got screwed by an Ex-business partner who I know has overseas accounts that he didn't report, so I am going to report him. I am just waiting until 6/30 which is the next period at which you are supposed to report those things. I have exact account numbers and everything.

I'll be pissed if I don't get the full 30% reward (assuming they actually go after him and he ever pays).

[Turbineguy]

11. Do it for fun then!

[olddad56]

12. You mean I turned my mom in for nothing? That sucks