From the Tax Law Offices of David W. Klasing - Why You Should Never Brag About Committing Tax Fraud in Public!!!

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Tax Law Offices of David W. Klasing, PC

Mar 03, 2021, 06:37 ET

IRVINE, Calif., March 3, 2021 /PRNewswire/ -- The IRS Whistleblower Program was enacted as a part of the Tax Relief and Health Care Act of 2006. This act established the IRS Whistleblower Office that works with individuals who provide tips that lead to the discovery of IRS civil and criminal tax code violations. The IRS Whistleblower Office accepts tips that would aid them in uncovering incidents of tax fraud. In return for their information, the whistleblower could receive a substantial reward from the IRS. However, there are some stipulations that a whistleblower must follow if they wish to recover a reward for their information.

If a whistleblower claim is successful, the whistleblower will receive a reward between 15-30% of the taxes recovered from the target of the complaint. This provides a great incentive for a person to come forward with information against a non-compliant taxpayer. This means that taxpayers who engage in open tax fraud should beware that they could be the subject of a whistleblower case if they do not handle their tax reporting legally and appropriately.

The tax at issue in most of these claims is at least $2 million, including penalties and interest as a result, the majority of whistleblower cases involve large corporations or high-wealth individuals that commit tax fraud.

Tax fraud issues that are commonly addressed within the IRS Whistleblower Program include:

Altering records to change when revenue is recognized
Circular transactions where the money is transferred between entities for tax benefits
Cryptocurrency tax fraud
Employment tax fraud
The exploitation of tax shelters
Falsely claiming tax-exempt status
Illegally claiming tax credits (e.g., renewable energy deductions)
Underreporting of income
Claiming of false tax deductions
Falsely claiming tax credits
Falsely describing illegal source income as legal source income

The Tax Law Offices of David W. Klasing have extensive knowledge of how the IRS Whistleblower Program works, and we are here to explain how it is used to combat tax fraud and actions you should take if you feel you are at risk of being the subject of one. Call our office at 949 681-3502 or schedule an appointment online.

See the full version of this article here.

Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]

SOURCE Tax Law Offices of David W. Klasing, PC