Florida IRS Whistleblower Lawyer
For FY 2020, the IRS collected $472,080,014 in proceeds based on information provided to the IRS Whistleblower Office. Over 18% of the proceeds collected – $86,691,032 – was paid out in awards to the people who provided information to the IRS.
The IRS knows that unscrupulous individuals, businesses and tax preparers provide false information on their tax returns to avoid paying taxes they owe or to obtain a tax refund to which they aren’t legitimately entitled. Yet the IRS only audits less than one percent of individual and corporate tax returns. To help root out tax fraud, the IRS offers an award for information. When that information helps the IRS recover taxes owed, they share anywhere from 15 to 30% of their recovery with the whistleblower who provided the information.
The IRS Whistleblower Program is a valuable tool for the government and a rewarding process for individuals who expose the tax cheats that take advantage while the rest of us pay our fair share. The Florida IRS whistleblower lawyers at Guttman, Freidin & Celler can advise you and guide you through the process of providing information to the IRS and applying for an award for your efforts. With our guidance and assistance, we can help ensure that the maximum amount is recovered and that you receive the highest percentage of the award available.
According to Investopedia, “tax fraud occurs when an individual or business entity willfully and intentionally falsifies information on a tax return to limit the amount of tax liability.” Examples of tax fraud include:
- Claiming false deductions
- Falsely claiming tax credits
- Claiming personal expenses as business expenses
- Using a false Social Security number
- Not reporting income
- Failing to report and pay payroll taxes
- Failing to withhold income tax from employee paychecks
- Tax evasion
Informant Claims Program
The IRS whistleblower program, also known as the Informant Claims Program, includes two different types of claims, referred to by the section of the law where they are found.
The primary statute enacting the Informant Claims Program is section 7623(b). This program handles claims when the amount in dispute exceeds two million dollars. If the claim involves an individual taxpayer, that person’s gross income must be greater than $200,000 in one of the tax years at issue in order for this section of the law to apply.
Under section 7623(b), the IRS whistleblower can receive between 15 and 30% of the amount the IRS recovers, with no limit on the total dollar amount available. The percentage of the award depends on the source of the information and how much the IRS relied on the whistleblower. For instance, the IRS might only offer up to 15% if the information came from a court proceeding, government report or the news media, or if the whistleblower was the one who “planned and initiated” the non-compliance in the first place. Even in these instances, however, the financial incentive to the whistleblower can be significant.
The other part of the IRS Informant Claims Program is section 7623(a). If you provide information to the IRS related to a tax fraud that does not fit within the criteria for an award under section 7623(b), the government can still compensate you for the information you provide under section 7623(a). The amount awarded is at the discretion of the IRS.
Deciding whether to blow the whistle on the company you work for can be daunting. The IRS whistleblower attorneys at Guttman, Freidin & Celler can advise you on the strength of your claim and guide you through the process of becoming a whistleblower. You want to do what’s right, and we want to help.
Call the IRS Whistleblower Attorneys at Guttman, Freidin & Celler
If you have original information related to a tax fraud perpetrated by your employer, such as payroll tax fraud or false individual or corporate income tax returns, contact Guttman, Freidin & Celler at 800-654-8281 or reach out online to schedule a consultation with an experienced and successful IRS whistleblower attorney.