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- AmericanAwarenessFinancial
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- United States
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- Every April 10
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National Report IRS Tax Fraud Day is observed every April 10, shining a light on the crucial role citizens play in upholding tax integrity. Founded by attorney Joel Hesch, this day highlights the IRS Whistleblower Incentive Program. Discover how to report tax fraud and contribute to a fairer financial system.
Want to sponsor National Report IRS Tax Fraud Day? Learn how
History of National Report IRS Tax Fraud Day
Congress approved the Revenue Act of 1862 to generate funds for the American Civil War and to start the Bureau of Internal Revenue. The Sixteenth Amendment to the U.S. Constitution was sanctioned in 1913, which enabled Congress to levy an income tax, regardless of the source. The Bureau of Internal Revenue was also created shortly. The Internal Revenue Service (I.R.S.) was established in 1953, and has undergone several modifications and reforms ever since.
For the benefit of the federal government, the I.R.S. is in charge of collecting most of the revenue. In 2021, it processed more than 261 million tax returns and collected more than 4.1 trillion dollars in gross taxes. In 1867, a reward program was established to enable the I.R.S. to reward people who reported tax fraud. Surprisingly, the former tax incentive program was hardly used.
In December 2006, the I.R.S. introduced the Tax Whistleblower Rewards Program that established minimum compensation amounts and permitted a whistleblower to hire an attorney to claim the award amount. However, the new approach only applies to tax fraud of $2 million or above. In order to be eligible for a reward, the whistleblower must complete I.R.S. Form 211 and submit thorough information. The paperwork and information can be filed by the applicant’s lawyer as well. In the U.S., the federal and state governments each have their own tax systems and taxes come in many forms, including property taxes, income taxes, sales taxes, capital gains taxes, etc.
National Report IRS Tax Fraud Day timeline
Congress approves the creation of the Revenue Act, and on July 1, President Abraham Lincoln officially signs the bill into law.
The I.R.S. starts a program to reward people who report tax fraud.
The Internal Revenue Service is established.
The I.R.S. introduces a new program that marks the minimum compensation amounts and allows a whistleblower to hire an attorney to request the award amount.
National Report IRS Tax Fraud Day FAQs
When is National Report IRS Tax Fraud Day?
In 2027, National Report IRS Tax Fraud Day will be observed on Saturday, April 10. This annual observance consistently highlights the importance of reporting tax fraud.
What is the IRS Whistleblower Program?
Established to incentivize reporting, the IRS Whistleblower Program is a crucial tool in combating tax evasion. It allows individuals to anonymously report substantial tax underpayments, with the potential for a significant reward if their information leads to successful collection of taxes.
How much tax fraud is reported each year?
The volume of whistleblower submissions to the IRS remains consistently high, reflecting ongoing efforts to uncover tax fraud. The program has been instrumental in recovering substantial amounts of unpaid taxes, with awards to whistleblowers often totaling hundreds of millions of dollars over time.
What is the difference between tax evasion and tax fraud?
While often used interchangeably, tax evasion specifically refers to the illegal act of not paying taxes. Tax fraud is a more general term for any intentional misrepresentation or concealment of financial information to avoid tax, and can include evasion, but also other deceptive practices.
How to Observe National Report IRS Tax Fraud Day
Visit the website
Learning about the Whistleblower Reward Program is the ideal way to commemorate this day. For more information, you can visit the official website.
Report a case of tax evasion
If you have evidence related to tax fraud, speak with an experienced whistleblower attorney. Find out if your case qualifies for a reward.
Spread the word
No one enjoys paying taxes, particularly those incurred by others due to tax avoidance. Use this day to inform others about tax fraud. Share information about the application process for whistleblower rewards on social media.
5 Interesting Facts About Tax
The tax code
Following the tax code costs Americans 6.1 billion hours and $233.8 billion per year.
A doubled workforce
In 2012, the I.R.S. more than doubled its identity theft and fraud prevention workforce to 3,000 people.
Paper forms are error prone
Paper forms tend to have a high likelihood of errors compared to electronic ones.
Tax-exempt organizations
The I.R.S. identifies around 1.5 million tax-exempt organizations.
The tax code
The U.S. tax code has over one million words, with an average page length of 450 words.
Why National Report IRS Tax Fraud Day is Important
It contributes to nation building
This day contributes to the development of the nation. A country cannot function without taxes.
It backs welfare programs
From employment programs to pension plans, the government has created a variety of programs to assist people from all walks of life. These support systems are funded by taxes.
It creates awareness
The I.R.S. assists a vast majority of law-abiding taxpayers. This day raises awareness about the importance of combating tax fraud and evasion.
