Did you know that every year you pay an extra $1,000 just to cover the amount others are cheating? Well, there is something you can do about that and perhaps receive a million dollar reward from the IRS in the process!

The IRS is taking a new approach to recover the $350 billion a year that companies and individuals are cheating on their taxes. Congress recently mandated that the IRS start paying whistleblowers rewards of at least 15% and as high as 30% of what it recovers based on their information. That’s right. The IRS will pay you a significant reward for reporting tax fraud.

And there is no limit to the amount, meaning you could literally receive $100 million if you have the right information. In fact, the IRS can pay billions in rewards to anyone reporting tax evaders.  It’s not necessary to show they intended to cheat. A reward is paid simply if they owe taxes.

The IRS reward program goes like this. Suppose the company you work for cheats on its taxes by $10 million. You report it, following the procedures of the program. The IRS investigates and collects the money. You get between $2 million and $3 million. What's not to love?

The good news about this program is that the IRS is committed to maintaining its confidences. In most cases, your name will never be revealed, even if you receive a $100 million reward.

But the process is far more than calling a hotline or simply filling out a form. You must scrupulously follow each technical requirement and informal procedure. There are also some pitfalls to avoid. For instance, you must not only fill out a specific form, but how you present your information can make all the difference in whether you get a reward or rejected.

You can also have an attorney help you file the claim and negotiate the amount of your reward with the IRS. Should the IRS attempt to give you a reward that is too low, your attorney can challenge the amount in federal Tax Court.

Why not get paid a reward from the IRS instead of paying taxes for deadbeats?