IRS Whistleblower Office Director Stephen Whitlock has announced that the whistle blower claims have risen dramatically in 2008, with upwards of 900 claims so far this year. IRS believes the increase is due to the fact that possible rewards are higher than they were under the old law. Now, for cases in which the taxes, penalties, interest and other amounts in dispute exceed $2 million, the IRS will pay 15 to 30 percent of the amount collected to the whistleblower. If the case deals with an individual, the taxpayer who gets turned in by the informant must have annual gross income of more than $200,000. If these qualifications are not met, whistleblowers can still get an award maxing out at 15 percent of the amount collected up to $10 million.

Procedure. Claims for awards must be filed on Form 211 Application for Reward for Original Information.

Key Point: Most new claims come from disgruntled spouses, business partners, or key employees, according to IRS.