Tax Fraud and Evasion
If a business, corporation, or an individual files a fraudulent tax report or does not pay all taxes, they are engaged in direct fraud against the U.S. government. Most claims of fraud against the federal government are covered under the False Claims Act and can be fought with a Qui Tam lawsuit. However, tax fraud is not covered under the Act, and therefore this type of case is handled differently.
Whistleblower Protections and Benefits
After a person or an organization reports suspected fraud to the Internal Revenue Service (IRS), the IRS will investigate the claim, keeping the whistleblower’s identities private during the investigation and any subsequent legal action. Commonly reported types of tax fraud and evasion may include:
- Overstatement of tax deductions
- Falsified documents
- Omission of income from foreign stocks
- Transfer of assets outside the U.S.
Tax laws established in 2006 now allow individuals or organizations who report tax fraud or other tax-evasion practices to the IRS to qualify for certain financial rewards. If whistleblowers report fraudulent claims that total $2 million or more in losses, they may qualify for awards totaling 15 to 30 percent of the losses recovered by the government.
Contact Us
An experienced tax fraud attorney can help make the complicated process of reporting tax fraud and evasion much easier. To learn more about your legal options, contact the offices of Tycko & Zavareei, LLP at 202-973-0900.
