Tax Fraud
Whistleblowers who are able to provide information to the IRS about tax fraud or underpayment of taxes may qualify for a reward according to new tax laws established in 2006. If the individual is able to provide information about fraudulent claims or underpayment totaling $2 million or more, he or she may qualify for an award of up to 15%-30% of the total recovered by the government.
Tax fraud is not considered to be a part of the False Claims Act, so persons who reveal serious tax fraud do not need to file a Qui Tam lawsuit. The fraud is typically reported directly to the Internal Revenue Service (IRS) and the claim will be investigated and pursued by that department, and whistleblowers’ identities will be kept secret during the investigation and the following legal action. Any rewards will be issued following the completion of an investigation and the recovery of money owed to the government.
Common Types of Tax Fraud
Commonly reported types of tax fraud include:
- Companies or individuals omitting income from foreign stock exchanges
- Companies or individuals transferring assets outside the United States
- Overstating the amount of tax deductions
- Falsifying financial documents or ledgers
- Claiming false tax deductions
- Under-reporting employee income
- Paying employees in cash
- Keeping two sets of financial records
Contact Us
Reporting cases of tax fraud can be stressful and complicated, but working with an experienced attorney can make the process much faster and easier. For assistance with your tax fraud case, contact the law firm of Tycko & Zavareei, LLP at 202-973-0900 to discuss your legal options.
