The Internal Revenue Service is strengthening its partnership with the United Kingdom’s tax authority to uncover major tax evasion schemes, and people who report wrongdoing could potentially receive substantial financial rewards. In an October 7, 2026, announcement, the IRS highlighted its collaboration with His Majesty’s Revenue and Customs (HMRC), which recently established a strengthened whistleblower reward program. The effort focuses on uncovering tax violations involving wealthy individuals, large corporations, and complicated international financial arrangements. For people with credible information about serious tax evasion, the programs could offer a financial incentive to come forward.
IRS and UK Tax Officials Expand Cooperation
According to the IRS’s October 7 announcement, the partnership builds on cooperation between the IRS Whistleblower Office and HMRC.
The UK launched its Strengthened Reward Scheme in November 2025 after drawing on the experience of the IRS Whistleblower Office.
The program targets serious tax avoidance and evasion, particularly involving high-net-worth individuals, large corporations, offshore accounts, and complex international transactions.
IRS Chief Executive Officer Frank J. Bisignano emphasized the importance of international cooperation in identifying tax evasion that crosses national borders.
HMRC Chief Executive JP Marks also acknowledged the IRS’s assistance in developing the UK’s program and the role informants can play in uncovering financial misconduct.
Whistleblowers Could Receive Significant Financial Rewards
One of the most important details is that individuals who provide valuable information may qualify for monetary awards.
Under the IRS Whistleblower Program, qualifying whistleblowers can generally receive between 15% and 30% of collected proceeds when statutory requirements are met.
The UK’s Strengthened Reward Scheme similarly provides potential awards ranging from 15% to 30% in qualifying cases involving substantial recovered taxes.
For example, a hypothetical case involving $5 million in qualifying collected proceeds could produce an award of $750,000 to $1.5 million under the applicable U.S. percentage range.
However, receiving an award is not automatic, and the amount depends on the program’s eligibility requirements, the usefulness of the information, and the money ultimately recovered.
Billions Have Already Been Recovered Through IRS Whistleblower Tips
The IRS whistleblower program has an established history of recovering unpaid taxes.
According to figures highlighted in 2026, the program has helped the federal government collect more than $8 billion in unpaid taxes since the modern award program was established.
During that period, whistleblowers received more than $1.4 billion in awards.
Those figures demonstrate why tax authorities consider credible inside information valuable when investigating complicated financial arrangements.
The new UK program seeks to build on that approach by encouraging individuals with direct knowledge of significant tax violations to report what they know.
Why Offshore Accounts and Shell Companies Are a Focus
International tax evasion can involve financial arrangements that cross multiple countries and banking systems.
Investigators may encounter offshore accounts, shell companies, layered business structures, and transactions designed to conceal income or assets.
These arrangements can make it difficult for one country’s tax authority to identify the full scope of potential violations.
Someone working in accounting, banking, corporate finance, or business management may possess records or firsthand knowledge that helps investigators connect transactions across jurisdictions.
By coordinating their whistleblower efforts, the IRS and HMRC hope to strengthen their ability to identify and pursue these cases.
You Don’t Have to Be a U.S. or UK Citizen to Qualify
Another notable feature of the programs is that eligibility is not necessarily limited by citizenship or residency.
According to the IRS announcement, individuals do not have to be citizens or residents of either country to potentially qualify for a whistleblower award.
However, each program maintains its own requirements concerning the information submitted, the amounts involved, and who may receive compensation.
The IRS generally requires detailed, credible information rather than speculation or unsupported allegations.
Potential whistleblowers should also understand that awards may take years to resolve, and payments can have tax consequences.
How to Report Suspected Tax Evasion
People with specific, credible information about potential violations of U.S. tax law can begin by visiting the IRS Whistleblower Office.
The IRS also provides guidance on submitting information and the circumstances under which a monetary award may be available.
Individuals reporting serious UK tax avoidance or evasion can consult HMRC’s official government website for reporting procedures and eligibility information.
Before submitting confidential financial records, potential whistleblowers should consider obtaining appropriate legal advice, particularly if the information involves an employer, client, or legally protected communications.
A New Financial Incentive to Report Major Tax Fraud
The IRS-HMRC partnership reflects a growing effort to use credible whistleblower information to uncover large-scale international tax violations.
For governments, the financial benefit is recovering tax revenue that might otherwise remain unpaid.
For qualifying whistleblowers, the potential rewards can be substantial, although they are not guaranteed and depend on successful enforcement and collection.
The broader lesson is that international financial secrecy does not necessarily prevent tax authorities from investigating suspected wrongdoing, especially when individuals with firsthand knowledge come forward.
Do you think offering whistleblowers a percentage of recovered tax money is an effective way to uncover major financial fraud?
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Amanda Blankenship is the Chief Editor for District Media. With a BA in journalism from Wingate University, she frequently writes for a handful of websites and loves to share her own personal finance story with others. When she isn’t typing away at her desk, she enjoys spending time with her daughter, son, husband, and dog. During her free time, you’re likely to find her with her nose in a book, hiking, or playing RPG video games.
