Congress is considering new legislation that will establish a new division of the Internal Revenue Service (IRS) aimed at rewarding whistleblowers who inform on tax evaders. The proposed IRS Whistleblower Office will focus on individuals and corporations with more than $200,000 in income who have hidden $20,000 or more.
Informants who substantially contribute to a tax evasion conviction stand to collect up to 30 percent of recovered taxes while whistleblowers who contribute less incriminating information may gain up to 10 percent of recovered money. The new legislation offers a greater incentive for informants who in the past have been eligible for a much smaller percentage of recovered taxes.
The proposed legislation will be a welcome relief to IRS agents who face the difficult task of exposing hidden tax shelters used by wealthy individuals and corporations to hide thousands, sometimes millions of dollars. The IRS says tax fraud is the cause of hundreds of billions of dollars of uncollected taxes each year.
If you know of a company or individual cheating the IRS, it may be important to contact an attorney
who can help you protect your legal rights. Please keep in mind that there may be time limits
within which you must commence suit.
- Federal Civil False Claims Act & Qui Tam Law (Whistleblower Litigation)