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.
What This Means for You
- You can report suspected misuse of federal funds to the IRS
- Whistleblowers may receive up to 30 percent of recovered funds
- Reports can include fraud, misuse of grants, or improper payments
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.
What the IRS Is Looking For
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 IRS Chief Executive Officer Frank J. Bisignano.
How the Program Works
Whistleblowers can receive awards of up to 30 percent of the proceeds collected by the IRS based on the information they provide.
To qualify, submissions must include specific, timely, and credible details about potential violations of tax laws or related regulations.
Reports are submitted through Form 211, available online at IRS.gov/SubmitATip.
Next Steps
The IRS said it plans to issue additional alerts as new areas of concern are identified.
More information about the program is available at IRS.gov/Whistleblower.
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