Tax Fraud Overview
International Tax Whistleblower Representation
Tax fraud occurs when an individual or business engages in illegal schemes intended to avoid paying taxes mandated by the government. Both civil and criminal penalties may be assessed in tax fraud matters. Tax whistleblowers are entitled to a reward for reporting tax fraud and are also entitled to a reward for reporting tax underpayments that are not the result of fraud. For an action to be considered tax fraud, the IRS must be able to prove willful intent to engage in illegal methods with the express purpose of withholding taxes from the federal government.
Actions Indicative of Tax Fraud
Businesses and individuals engage in a variety of different types of tax fraud in order to avoid paying the government rightfully owed taxes. These schemes often utilize a combination of the following actions in order to make the underpayment seem legitimate:
- Failing to file a tax return
- Deliberately underreporting or omitting income
- Claiming false deductions
- Hiding or transferring assets or income
- Overstating the amount of deductions
- Making false entries in records
- Failing to report income earned in a stock exchange
- Maintaining two sets of books
- Misusing trusts
- Abusing charitable deductions
The Tax Whistleblower Program
In 2006, Congress passed the Tax Relief and Health Care Act, providing a substantial reward for informants whose knowledge of tax fraud helps the IRS recover a large sum of money. Tax whistleblowers may receive between 15% and 30% of recovered taxes, penalties, and interest. To qualify for consideration, the amount in dispute must be greater than $2 million in unpaid taxes, fines, interest, and penalties.
The percentage of your reward will vary depending on your contribution to the case. Therefore, in order to maximize your tax reward, it is essential that you provide the IRS with detailed information and assist it throughout every phase of the investigation.
Superior IRS Tax Whistleblower Representation
The lawyers at Kenney & McCafferty specialize in tax whistleblower claims. We can help maximize the recovery by the IRS while providing you with the greatest likelihood of receiving the maximum whistleblower reward. We have handled tax whistleblower cases for more than a decade, and our firm has obtained the first and only multi-million dollar tax reward since the changes in the Tax Whistleblower statute in 2006. With our assistance, the IRS has recovered hundreds of millions of dollars, resulting in substantial rewards for our clients.
Our lawyers possess a diverse background and we work with in-house accountants. Our firm includes a former IRS Revenue Agent and a former Department of Justice tax prosecutor. We have the experience necessary to ensure that your rights, and your reward, are protected.
If you have knowledge of tax fraud resulting in the underpayment of more than $2 million to the IRS, please contact our tax whistleblower attorneys today. Kenney & McCafferty will consult with you about your case, without obligation. All communications with Kenney & McCafferty attorneys regarding your case are confidential and protected by attorney-client privilege.
For information about securities fraud, please see information about the SEC Whistleblower Program.
