This refers to the process of obtaining Internal Revenue Service (IRS) Form 211, Application for Reward for Original Information. This form is used by individuals who wish to provide information to the IRS about potential tax law violations and subsequently apply for a reward if the information leads to the recovery of taxes, penalties, interest, or other amounts. For example, an individual aware of significant tax evasion by a corporation would utilize this form to report the activity and potentially receive compensation.
The availability of this form and the corresponding reward program are intended to incentivize the reporting of tax fraud and non-compliance. This program plays a significant role in the IRS’s enforcement efforts, supplementing traditional audit processes and enabling the agency to uncover tax violations that might otherwise go undetected. The program has evolved over time, with adjustments to reward amounts and eligibility criteria to better align with the government’s revenue protection goals.
