The United States Will Pay Rewards to Tax Whistleblowers Who Reports Individual Tax Fraud or Corporate Tax Fraud to the IRS
THE PROBLEM: Billions of Dollars in Unpaid Taxes
Congress is attempting to improve the IRS Tax Whistleblower Program. Taxpayers (i.e., individuals, businesses, trusts, and estates) underreport and underpay up to $400 billion in taxes (tax fraud/tax evasion) every year, according to a study released by the Internal Revenue Service. This group is comprised largely of wealthy taxpayers who intentionally underreport or underpay their their tax liability. This missing revenue causes unnecessary increases in annual deficits, national debt, and interest payments and in the end, must be made up by honest Americans through higher taxes.
The recent IRS budget causes the IRS to conduct its bussiness more efficiently and therefore it use its best efforts to collect from taxpayers who underreport and underpay tax (Tax fraud is not required). However, many tax schemes and tax shelters used by these taxpayers have often become so sophisticated that efforts by the IRS to detect them have become overly burdensome. As a result, the annual amount of unreported and unpaid tax has steadily grown each year. Confronted with the devastating effect of the ongoing underreporting of tax, the United States is taking a new approach to enforcement efforts aimed at detecting these particular taxpayers.
THE SOLUTION: TAX WHISTLEBLOWERS
In recent legislation (December 2006), Congress, through the IRS, is willing to reward tax whistleblowers that have "specific and credible" information that substantailly contribute to the determination and collection of tax from taxpayers. Again, it does not have to be criminal tax fraud or civil tax fraud, but simply any underpayment of tax. The United States has announced that it will reward a tax whistleblower who provides "specific and credible" information that "substantially" leads to the determination and collection of $2 million or more of tax (including penalties and interest). This legislation mandates the IRS to pay any person who provides information under the “Tax Whistleblower Program” a minimum of 15%, and a maximum of 30%, of the amount that the IRS actually collects.
Collection of tax based upon information from a whistleblower is approximately 40% of what the cost would be if the IRS simply conducted an examination without the whistleblower information.
Contact us NOW to start the process of identifying tax avoidance and obtaining your reward! Your confidentiality is guaranteed!
Friday, 25 March 2011 12:11 | 
Written by Tom Pliske | 
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