Two whistleblowers reported perceived tax evasion to the IRS.The first whistleblower estimates that the amount of underpaid taxes is $50,000.The second whistleblower estimates that the amount of underpaid taxes is $4 million.Which of these two whistleblowers is most likely to be an altruistic whistleblower?

Question

Quizplus · Accepted Answer

The first whistleblower who reported an estimated amount of underpaid taxes of $50,000 is more likely to be an altruistic whistleblower because the reward for reporting tax evasion is generally 15-30% of the total amount recovered by the IRS. Thus, the reward for the first whistleblower is likely to be much lower compared to the second whistleblower who reported an estimated amount of underpaid taxes of $4 million. This suggests that the second whistleblower might be more motivated by financial rewards.

Two Whistleblowers Reported Perceived Tax Evasion to the IRS