Tuesday, October 27, 2009

Chicago Politics: Cash bounties for tax informants

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Mayor Daley's tough-times, 2010 budget includes a first-ever "Tax Whistleblower Program" expected to include cash bounties for informants who deliver the goods on unpaid business taxes.

The cash reward would be a percentage of the amount recovered, but specifics are still being worked out. The dreaded employee head tax and lease tax are just two of the most frequent targets for tax cheats.

"It's just another way of bringing people into compliance," said Revenue Department spokesman Ed Walsh.

"It would probably be ... a business knowing that a competitor is not remitting a tax. An employee [of the tax-dodging business] could know that, too. Typically, you need to provide some type of incentive."