The IRS Whistleblower Office is a branch of the United States Internal Revenue Service. Hoping to entice insiders to rat out big-dollar cheats and corporate tax shelters and games, the U.S. Congress directed the IRS to pay tipsters at least 15% and as much as 30% of taxes, penalties and interest collected in cases where $2 million or more is at stake. Section 406 of the Tax Relief and Health Care Act of 2006

Tax Relief and Health Care Act of 2006

The Tax Relief and Health Care Act of 2006 , includes a package of tax extenders, provisions affecting health savings accounts and other provisions in the United States.-Extenders:...

 called for the creation of a Whistleblower Office within 12 months to handle potential incoming whistleblower claims. George W. Bush

George W. Bush

George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....

 signed the act on December 20, 2006. Charles Grassley, chairman of the Senate Finance Committee, modeled the office after the False Claims Act

False Claims Act

The False Claims Act is an American federal law that imposes liability on persons and companies who defraud governmental programs. The law includes a "qui tam" provision that allows people who are not affiliated with the government to file actions on behalf of the government...

, which allows people to file actions against federal contractors committing fraud against the government.

On February 2, 2007 the IRS named Stephen A. Whitlock as director of the new Whistleblower Office.

In 2008, $65 billion in unreported income was alleged by tipsters.