Whistleblower Lawsuits for Tax Fraud

Washington, DC Qui Tam Lawyers

Since 1986, whistleblowers have been able to receive compensation for alerting the government of instances of fraud. If you know a company, agency, or organization, especially your employer, that is defrauding the government, the Federal False Claims Act allowed you to collect up to 30 percent of the amount recovered. In addition, the US Code 26, the Internal Revenue Code was revised in 2006 to allow people reporting tax fraud to collect a similar amount under similar provisions.

If you have knowledge that anyone is defrauding the government, please contact Chaikin, Sherman, Cammarata, & Siegel, P.C. today to learn how to pursue a whistleblower lawsuit.

What Constitutes Tax Fraud?

Tax fraud is defined very loosely for the purposes of the Whistleblower Office of the Internal Revenue Service. Essentially, it covers any underpayment of tax. It also relates to information regarding people who are guilty of violating internal revenue laws or attempting to do so. If you supply information to the IRS about someone who is not paying their taxes, and the IRS uses that information, you may be eligible to receive from 15-30 percent of the recovered amount.

In addition, unlike typical whistleblower lawsuits where awards are guaranteed only to the first people reporting information, several people other than the initial whistleblower may receive payment for recovered funds if they supply information about specific allegations of tax fraud may be awarded up to 10 percent of the collected funds.

Who Can Be Reported?

The Internal Revenue Code (IRC) stipulates that you can report any taxpayer, but if the taxpayer is an individual, the person's income must exceed $200,000. In addition, the amount in dispute should be over $2 million.

The IRS also has a separate program for reporting smaller claims, but the awards are less in this program.

Why Should I Get a Whistleblower Attorney?

The IRS Whistleblower Office allows any person to file a claim for an informant award using IRS Form 211. The IRS code allows you to have representation, and there are several reasons why you should have an attorney handle your whistleblower case.

First, there are several important statutes of limitations that apply in tax fraud cases, and these can significantly impact your award. A lawyer can help you understand what potential violations may relate to your award.

A lawyer can also help you report information in a way that is more likely to result in you receiving compensation. The IRS is under no obligation to give you an award for your information, even though it is able to do so. Working with a whistleblower attorney may increase the likelihood that you will receive an award.

If the IRS does not give you an award, or if the award is smaller than you believe you deserve, you can appeal that award in Tax Court. Involving an attorney early in the process can help you gather information to bolster your case, potentially increasing your odds of success.

An initial consultation with the whistleblower lawsuit attorneys at Chaikin, Sherman, Cammarata, & Siegel, P.C. is free. Contact us today to learn more about the provisions of IRS whistleblower lawsuits.

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