Question

You overhear Matheus say i am so glad to be divorced from my cheating wife Larissa. She keeps two sets of books in her design business, and I wish the IRS would find out about it." Is Matheus a candidate for the informant award program that is operated by the IRS? Explain how the program works and how an award might be paid to Matheus.

Answer 1

See the explanation for the answer

Step-by-step explanation:

1. IRS ( internal revenue service is an agency of government which is directed under commission of internal revenue.

2. It provides assistance to income tax payers and council them for non filing.

3. IRS runs various voluntary program which include the tax counselling for elders. Most of the tax payers rely on the notifications released by the IRS as it facilitates how to file the return.

4. IRS reward program is designated by the IRS to get information from the people of others who do not pay tax. (called the whistle blowers)

5. Matthew in this case can be whistle blower who informs the IRS regarding her wife's business and can be rewarded with (15-30% of amount collected), if the information is genuine and the team can collect taxes from such persons.

6. Therefore, IRS can achieve good result if it could get exact information thus making the persons included in the tax slab.