Tuesday, October 27, 2009

City to Pay for Informing on Tax Cheats

According to a new article from NBC Chicago, a few cities in the Chicago metropolitan area are going to begin offering financial rewards for citizens who provide information on tax cheats. Although the IRS has been running a whistleblower program for years, it is a new development for local governments. Check out the article explaining the new tax protocol below.

Chicago and Cook County residents aren’t the only ones about to get shocking tax news; the city is debuting a “tax whistle-blower” plan that could turn neighbor against neighbor in Chicago’s business community.

The folks at city hall will pay cash bounties to informants who turn in business tax cheats around the city. The reward would amount to some sort of percentage of the tax money that the city recovers.

"It's just another way of bringing people into compliance," Revenue Department spokesman Ed Walsh told the Sun-Times.

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