The US Internal Revenue Service (IRS) has issued a new whistleblower alert focused on suspected misuse, diversion or fraudulent handling of federal funds by tax-exempt entities, private individuals and businesses.

The agency has urged the public to submit information on alleged fraud involving federal funds and grants.

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Under the IRS Whistleblower Programme, those who provide original information that leads to the recovery of funds can receive a payment of up to 30% of the proceeds collected.

The IRS is asking whistleblowers to supply specific, timely and verifiable accounts of suspected breaches of tax rules or other statutes the agency is tasked with enforcing.

The IRS noted that the information must be submitted on Form 211, Application for Award for Original Information, which can be filed through IRS.gov/SubmitATip.

IRS chief executive officer Frank Bisignano said: “Whistleblower Alerts are a new way for the IRS to spotlight high-risk areas and reach people who may have direct knowledge of non-compliance.

“We are expanding how we identify potential fraud, and these alerts will help connect us with individuals who can provide credible, timely information.”

The IRS Whistleblower Office said it plans to roll out further whistleblower alerts as additional high-risk compliance areas are identified.

The IRS recently launched a new digital tool designed to help taxpayers understand and manage their tax debt.

The tool enables individuals and businesses to quickly review payment options and determine their next steps. The launch was part of the agency’s broader effort to expand online services and make it easier for people to comply with tax rules.