What is Tax Fraud?
The federal government has established certain laws and guidelines governing the amount of taxes we are required to pay. When an individual or corporation participates in illegal schemes or activities intended to avoid paying taxes which are required by law, tax fraud has occurred. This is a serious offense that can result in both civil and criminal penalties.
It is important to understand the difference between tax avoidance and tax fraud. Tax avoidance involves using government-approved means to reduce the amount of taxes owed. This is completely legal. Tax fraud, on the other hand, occurs when the means used to reduce tax liability no longer fall under the letter of the law. In order to be convicted of tax fraud, the IRS must be able to prove that you intentionally employed illegal measures to avoid paying rightfully owed taxes.
The following actions are often used by individuals and corporations in an attempt to defraud the government out of tax revenue:
- Failing to file a tax return
- Intentionally underreporting or omitting income
- Claiming false deductions
- Hiding or transferring assets or income
- Overstating the amount of deductions
- Making false entries in records
- Failing to report income earned in a stock exchange
- Keeping two sets of books
- Misusing trusts
- Abusing charitable deductions
The federal government has established the Tax Whistleblower Program in order to provide an incentive to individuals with knowledge of large scale tax underpayment to come forward with their information. Whistleblowers may receive between 15% and 30% of all recovered taxes, penalties, and interest in cases where the government recovers more than $2 million. Becoming a tax whistleblower is an important public service since it can help the government recoup needed revenue that will eventually go to pay for important programs that benefit all citizens.
The attorneys at Kenney & McCafferty have been handling tax whistleblower claims for more than a decade. Our firm includes a former IRS Revenue Agent, Forensic Accountants, and a former Department of Justice tax prosecutor. We have the skills and experience necessary to assist the IRS throughout every stage of their investigation so that you can maximize your tax reward.
If you have knowledge of tax underpayment resulting in the underpayment of more than $2 million to the IRS, please contact our tax whistleblower attorneys today. Kenney & McCafferty will consult with you about your case, without obligation. All communications with Kenney & McCafferty attorneys regarding your case are confidential and protected by attorney-client privilege.
This entry was posted on Wednesday, September 22nd, 2010 at 12:10 pm and is filed under SEC Whistleblower Program. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.