In 2006, Congress enacted a new tax whistleblower law  This new tax fraud whistleblower law provides for significant compensation to individuals who furnish the IRS with information about tax fraud or tax underpayments:

• Whistleblowers are eligible to recieve between fifteen percent (15%) and thirty percent (30%) of the entire amount collected by the IRS when that Whistleblower provides information about tax fraud to the IRS.
• Better hurry! The first Whistleblower to provide the information gets paid. Where multiple parties disclose the same information, tthe total reward may be reduced, or denied.
  
• The information provided must indicate a fraud or tax underpayments  in excess of two million dollars ($2,000,000). In computing the amount, the government counts the unpaid tax,any penalty on that tax, and the interest. 
• Whistleblower dissatisfied with the reward amount may appeal the amount paid to them to the United States Tax Court.
  
• Whistleblower(s) who initiated or planned the tax fraud, may find themselves denied any compensation. The IRS may also reduce the total compensation paid where an individual participated in the fraud.

Under prior and existing law the Whistleblowers identity remains confidential.