IRS Paid $53 Million To Whistleblowers In 2013

WASHINGTON (April 4, 2014) The Internal Revenue Service says in an annual report to Congress that it paid 122 whistleblowers a total of $53 million last year for turning in tax cheats, an average award of nearly $435,000.

The tips led the IRS to collect more than $367 million in taxes, interest and penalties.

In general, whistleblowers can claim awards if they provide information that helps the IRS collect more than $2 million in taxes, penalties and interest, but it can take years to collect awards.

U.S. Sen. Chuck Grassley of Iowa, who helped write the whistleblower law, applauded the payouts, but said he worries that the slow pace of payment will discourage whistleblowers.

The report says the IRS received 9,268 whistleblower claims last year, up slightly from 2012.

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