Informant tips also help the IRS determine
which tax returns get IRS audits. Informant tips are
information the IRS receives from various sources concerning
questionable activities or tax information of a tax payer or
The IRS relies on information from
informants to determine the IRS audit potential of a tax
return. Many informants provide the information to the
IRS anonymously. Sometimes informant tips come with
rewards, monetary or otherwise.
But if the informant wants to collect
rewards or money for the information, the IRS informant must
provide his or her identity to the IRS.
Don't discuss any tax information with
Since you don't know who will turn out to be
IRS informants and provide the IRS with informant tips, you
should nevermore discuss confidential tax information with
anyone. This includes friends and family members.
Informant tips could be deciding factors for IRS audits of a
tax payer' s tax return.