Let’s say you meet with your tax practitioner (enrolled agent, certified public accountant, or attorney) for the first time. Let’s call him Tom.

Tom establishes your preliminary requirements, and he makes some notes about your overall tax situation. You both sign the engagement letter.

Then, you tell Tom of your plans to hide some of your income and fabricate some deductions. You tell him that you have been fooling the taxman for years. You are serious.

Tom knows that your actions are illegal, so he advises you to change your plans. You insist on continuing your non-compliance with the tax law.

You have Tom in what baseball calls a pickle. We’ll explain as we move along.

But here’s one option: Tom could turn you in to the IRS and possibly collect a substantial whistleblower reward. Two questions here:

Can he do it?

Should he do it? ... Log in to view full article.