Whistleblowers are actually private citizens who dare to speak up and bring to light government fraud and tax fraud issues. Some people are extremely afraid to divulge such tax fraud information, mainly because they fear the consequences. However, they must know that a strong team of qui tam attorneys are there to support them, and represent them in court. All of their information will be kept confidential, and at the end they will also receive a certain percentage of whatever the amount recovered in court is (typically, this amount can exceed even 25%).
Generally, in order to qualify as a whistleblower, people have to provide information regarding IRS Fraud that is higher than $2 million. The attorneys are there to provide all the information, counseling and support that the plaintiff needs. It is important to mention that the IRS will never disclose confidential information regarding the plaintiff, and the rewards are paid after the investigation is completed, and all the funds are collected and the case becomes officially closed.
So which are some of the most popular tax fraud cases?
-when the amount of deductions is overstated
-when someone avoids reporting all income that was earned on foreign stock exchange markets
-when the income from cash transductions is not reported
-when personal and business expenses are mixed up
-when someone makes false entries in the accounting related system
-when false deductions are claimed
-employees are paid using cash
-when two sets of books are kept for fraud purposes
Some other emerging tax fraud schemes include fictitious or overstated invoicing, offshore deferred compensation arrangements, abusive insurance arrangements or factoring of accounts receivable.