We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How Successful Is the IRS Whistleblower Program?

Every schoolchild is told that no one likes a tattletale, but once you've become a taxpayer, the benefits of reporting a tax cheat undoubtedly become apparent. In fiscal year 2018 alone, the Internal Revenue Service dished out $312 million USD to whistleblowers who informed on tax evaders trying to avoid paying their fair share. The IRS collected $1.441 billion in taxes, penalties, and interest from those would-be cheats. Interestingly, the payout to the whistleblowers was approximately nine times more than the $33.9 million doled out in 2017, suggesting that the program is catching on in a big way. In total, the IRS made 217 awards in FY2018, with an average amount equal to 21.7 percent of what was eventually collected by the agency.

Inside the IRS:

  • The first U.S. income tax was instituted by President Abraham Lincoln in 1861 as a way to pay for the Civil War.
  • The legendary gangster Al Capone went to prison on tax evasion charges; he was sentenced to 11 years in jail.
  • The common IRS 1040 tax form has grown from three total pages in 1914 to today's document that contains 101 pages of instructions alone.

Discussion Comments

By anon1001842 — On Jul 06, 2019

What about the people that have family in Mexico? The nieces (non citizens) come over and have their children in the USA, giving those children a social security number. The family members use those numbers to claim dependents in another state and split the refund with the mother that provided the SS numbers. It's been going on for many years.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.