On October 7, 2026, the IRS issued IR-2026-120, highlighting its partnership with His Majesty’s Revenue and Customs (HMRC), the United Kingdom’s tax authority, on tax whistleblower programs.
What the IRS Announced
HMRC’s Strengthened Reward Scheme launched in November 2025 to encourage reporting of serious tax avoidance and evasion involving the wealthiest individuals and largest businesses. The IRS said HMRC drew on the expertise of the IRS Whistleblower Office to establish the program.
The announcement describes cooperation aimed at identifying global tax evasion and strengthening cross-border compliance. It is not an announcement of a new Schedule C filing requirement or a new deduction for small businesses.
What Information Authorities Are Seeking
The IRS and HMRC encourage people with specific, timely, significant, and credible information about suspected tax-law violations to submit reports. The release lists examples including:
- Undeclared foreign bank accounts and failure to file a Report of Foreign Bank and Financial Accounts (FBAR).
- Hidden assets routed through foreign trusts, foundation structures, financial instruments, or anonymous holding entities in tax havens.
- Money laundering.
- Transfer pricing manipulation and illicit cross-border profit shifting by high-net-worth individuals and multinational entities.
These are examples from the announcement, not a complete description of reporting obligations or the rules for each program.
Reporting and Potential Awards
For U.S. reporting, the announcement directs readers to the IRS Whistleblower Office or IRS.gov/SubmitATip. For UK reporting, it points to Reporting Serious Tax Avoidance or Evasion on GOV.UK. Start with the official guidance for the relevant jurisdiction before submitting information.
Whistleblowers may qualify for a monetary award when their information leads to the collection of taxes or other proceeds. The IRS release says whistleblowers do not need to be citizens or residents of the United States or United Kingdom to receive an award. An award is not guaranteed; eligibility and procedures depend on the applicable program.
Why It Matters for Small Business Owners
The announcement focuses on serious tax violations and international enforcement rather than routine bookkeeping. For a sole proprietor, the practical takeaway is to keep accurate business records and seek qualified advice when foreign accounts or cross-border transactions raise reporting questions.
Simple-C helps Schedule C filers organize business income, expenses, and supporting records. It does not determine whistleblower award eligibility or replace advice about international tax obligations.
This article provides general information, not tax or legal advice. Confirm current guidance from the relevant tax authority and consult a qualified professional about your circumstances.