We are all starting to gather documents and receipts in preparation for tax season. We have all heard stories of corporations that pay “no taxes” or friends that claim to have found loopholes that allow them to avoid taxes. The first question I ask when I hear this is, “is what they are describing legal?” As a whistleblower attorney, the second question I ask is, “if it is not legal, what sort of reward can my clients receive for exposing that fraud?” Historically, the False Claims Act, which rewards whistleblower for exposing fraud against the United States government and for retaliation based on that exposure, has excluded claims based on individuals’ underpayment or failure to pay taxes. However, Congress created an Internal Revenue Service whistleblower law in 2006 that allows private individuals to become whistleblowers.
If you are considering becoming an IRS whistleblower here in Mississippi, you will need the help of an experienced whistleblower attorney. Contact Barrett Law now at (800) 707-9577 to attain the guidance you require.
The IRS Whistleblower Program
As of 2006, the IRS Whistleblower law set up a rewards program for private individuals who are aware of tax underpayments and violations of internal revenue laws. Again, this was significant changes, as the False Claims Act prohibited tax whistleblowing regarding violations of the Internal Revenue Code. Like the False Claims Act, whistleblowers who are reporting fraud allegations can receive an award of between 15% to 30% of penalties that the government recovers.
There are significant differences between the False Claims Act and the IRS Whistleblower Law, however. Under the IRS Whistleblower Law, whistleblower reports are handled by the IRS Whistleblower Office, and disputes may be appealed to the Tax Court. This is a significant difference from the False Claims Act, where a whistleblower action must be filed as a legal claim in federal court, where the U.S. Department of Justice then prosecutes it.
Another significant difference between the two laws is that the IRS Whistleblower Law has a minimum violation threshold requirement, while the False Claims Act can be brought against fraud of any amount. The IRS Whistleblower Law only applies in cases of individual taxpayers to only those individuals with a gross income above $200,000 for the relevant taxable year and when the penalties connected to the dispute exceed $2 million. That is a significant threshold, so you will not be able to be a whistleblower just because you are aware your brother-in-law claimed his beer-strewn mancave as a home office tax deduction.
What Should You Do if You are Considering an IRS Whistleblower Claim?
Are you considering filing a whistleblower case regarding underpayment or nonpayment of taxes the IRS? The reward for submitting a successful claim can be significant, 15% to 30% of any amount recovered by the government, but you will only receive this sort of award with the help of an experienced whistleblower attorney. The IRS Whistleblower Office receives thousands of potential whistleblower claims each year, and only those that meet their requirements and are reported in a way that triggers their interest are acted upon. Careful pleading and an organized approach to gathering evidence are critical to this process and will require the help of an experienced whistleblower counsel. Contact Barrett Law now at (800) 707-9577.
Experienced whistleblower lawyer Barrett can provide you with the advice you will need to file a successful IRS whistleblower case. Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower reward and losing your career and livelihood. Call us today.
