A Tax Whistleblower may qualify for the IRS whistleblower program by providing information as to any tax fraud which involves a minimum of Two Million Dollars ($2,000,000) in underpaid taxes, interest and penalties. Under this law, a whistleblower may be entitled to between 15% to 30% of the amount collected by the government, which can be quite substantial. Last year, a whistleblower was awarded $104 million dollars as his share of the moneys collected.
The amount of tax fraud by corporations and individuals in the United States is massive. By the latest estimates, the revenue lost in the U.S. of unreported income is estimated to be approximately $3.09 trillion over the last ten years. The latest estimates indicate that about 20 percent of total reportable income is not reported to the IRS. In actual yearly dollar amounts, based on statistical analyses by the IRS, it is estimated that the U.S. Federal Revenue Lost to tax evasion in 2010 was about $305 Billion in 2010 and some think this estimate to be low.
What this means is that there is an enormous amount of tax fraud going on. The Tax Relief and Health Care Act of 2006 created the IRS Whistleblower Office which allows anonymous whistleblowers to report tax fraud exceeding two million including penalties and interest and any other moneys collected by the government.
JeffreyNewmanLaw has handled a significant number of tax fraud cases including a pending action involving a transfer pricing scheme relating to off-shore tax fraud. The IRS and Congress are serious about stopping these off shore tax scams and as of December 2011, the IRS Offshore Programs have produced $4.4 billion, many starting from whistleblower tips including from Brad Birkenfeld, the Swiss Bank whistleblower who revealed billions of dollars that U.S. taxpayers kept in overseas bank accounts. He was awarded $104 million last year as his reward.
If you are aware of tax fraud exceeding $2 million and wish to speak with a whistleblower lawyer contact our office for a free consultation to see if your information falls within the IRS whistleblower program. Your information will be kept confidential.