Whistleblowers Face an Uphill Battle When It Comes to Rewards

A group calling itself the “Corporate Whistle Blower Center” is warning would-be whistleblowers not to go directly to the IRS with their information. The group asserts a better strategy is surrounding yourself with a “seasoned legal team” before presenting your information to the government. The group claims to have first-hand experience dealing with situations where whistleblowers went directly to the IRS only to have information sit on someone’s desk for years.

As many taxpayers may already know, and tax lawyers confirm, the IRS offers rewards for information leading to the arrest and conviction of tax cheats. The Agency’s program requires the fraud involve a minimum of $2,000,000, or more, and your case must be “easy to see, prove, and be well documented.”

The Corporate Whistle Blower Center and many tax lawyers appear to agree “there are literally thousands of corporate executives, accountants, bookkeepers, or individuals, who know the specifics about multi million dollar federal tax fraud.” But tax attorneys and others are quick to point out that claims seeking rewards for turning in tax cheats should be presented correctly. And, for most taxpayers, that means they’ll probably need help from a competent tax attorney, or a group specializing in whistleblower claims, to avoid problems and help ensure a higher likelihood of actually getting a reward.

IRS tax attorneys say more common tax frauds include things like calling a full time employee a 1099 subcontractor to avoid taxes, or overstating deductions, or hiding or transferring assets or income to another in order to avoid paying taxes. All of these examples of fraud are, according to tax lawyers, violations which could qualify for an IRS reward.

So if you believe you have information which may lead to the arrest and conviction of a tax cheat, you may want to consider consulting a competent tax lawyer who may be able to help put together your case for the government and answer any questions you may have about the process.

Getting the help needed will likely ensure you can increase your chances of getting a reward. Tax attorneys point out the extra help may also ensure your case is well-presented to the correct people at the IRS. What’s more, these tax lawyers say getting the right help will pretty much guarantee your case is well-organized, legally complete, and that it presents the facts and issues in a clear and concise manner making it much easier for the IRS to “see and prove” your case.

So, if you are thinking about reporting a tax fraud in hopes of collecting the reward money, spend a few dollars up-front getting help from a competent tax attorney to improve your chances of getting that cash.

 

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