IRS Fraud

People frequently ask, “Is IRS Fraud covered by any whistleblower law?” At one time the answer was only a lukewarm “sort of.” Meaning what? Well, the federal False Claims Act has always covered just about every type of fraud against the government --except for IRS Fraud. What about the Internal Revenue Code itself, you may wonder, “Does it say anything about awards for uncovering IRS fraud?” The answer is that for many years the IRS had an infrequently used, and not particularly effective, whistleblower provision in its tax code.


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 However, all that changed in 2006 when the IRS created a new whistleblower statute and office, and made a highly publicized commitment to financially reward whistleblowers who expose significant IRS fraud (meaning, the amount of taxes, penalties and interest due is more than $2 million, and, in the case of an individual taxpayer, he or she has at least $200,000 in gross income). In addition to IRS fraud, are other types of tax fraud subject to any whistleblower laws? As a matter of fact they are: some states, like New York for example, have false claims acts that specifically cover state sales tax fraud or evasion.

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IRS Fraud

 

 


 



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