The whistleblower reward section of the Tax Relief and Health Act of 2006, source of what is known as the IRS Whistleblower Program, is based on the False Claims Act qui tam provisions. Before the new tax whistleblower law was enacted, rewards to tax fraud informants was very rare and paid just 1% to 15% of the amount recovered.
Consult With an Atlanta Tax Fraud Attorney to Get Your Fair Share of a Whistleblower Award
To motivate people to notify the IRS of their firsthand knowledge of tax-evasion, the U.S. Congress directed the IRS to pay tipsters at least 15% and as much as 30% of the amount the IRS collects in taxes, penalties, and interest collected in cases where $2 million or more is at stake.
Drawing on the False Claims Act qui tam provisions, the Tax Relief and Healthcare Act of 2006 increased the rewards for convictions of tax fraud to give insiders with knowledge of large scale tax fraud a significant financial incentive to report any information about tax underpayments, including accounting errors, tax evasion, or tax fraud.
Whistleblowers should consult with an Atlanta tax fraud attorney to ensure they get their fair share of the Whistleblower award. Employing this simple move will keep you from making a mistake that might disqualify your right to claim.
An Experienced Georgia IRS Whistleblower Lawyer Protects Those Who Report Tax Fraud
An experienced Georgia IRS whistleblower lawyer protects those who report tax fraud. The IRS Whistleblower Program’s guidelines clearly mandate reward amounts, but that doesn’t always mean clients don’t have to fight for their right to collect.
Examples of IRS Tax Fraud:
- Improper tax return filing/payment (false records, unpaid taxes)
- Unreported income
- Improper deductions
- Falsified payments
- Falsified Asset Reports
- Offshore tax evasion
There are certain requirements in addition to the $2 million benchmark. For instance, the annual income of an individual committing the fraud must exceed $200,000.
Additionally, some actions may have an adverse effect on whistleblowers. Participation in the fraud and/or previous allegations by the claimant may result in a reduced reward.
Knowledgeable attorneys are vital to ensuring that you best prepare, package, and explain your case. Failure to properly develop your information before filing can reduce your award — or more likely, result in no award at all. If you have knowledge about tax fraud that exceeds $2 million, call the Bothwell Law Group whistleblower protection attorneys in Atlanta or click for a free evaluation of your case.
Atlanta Qui Tam Law Firm Bothwell Law Group: Experienced in Skillful Representation
Not sure the fraudulent act you’re reporting reaches the two million dollar mark? In addition to the tax already owed, penalties and interest are also factored in.
Has your reward been wrongfully denied by the IRS? Sometimes the IRS refuses to pay out a reward or reduces the amount. Knowledgeable of all federal fraud statutes, Atlanta Qui Tam law firm Bothwell Law Group is experienced in skillful representation of clients who wish to appeal the reward amount of an IRS whistleblower claim to the U.S. Tax Court.