The Internal Revenue Service (IRS) assesses and collects tax obligations for businesses and individuals each year. Many taxpayers fail to fully report their assets or pay their obligations, but the IRS lacks the resources to investigate every case.

To address this limitation, the federal government allows whistleblowers who supply helpful information regarding fraud to recover a monetary award for their cooperation.

With the help of a skilled whistleblower attorney, you could provide details of tax fraud that might lead to compensation. This legal process is complex, making it vital for you to rely on the guidance of a Columbia IRS whistleblower lawyer. Contact our law office today to learn more.

Pursuing a Writ of Qui Tam

A writ of Qui Tam is a legal process that allows whistleblowers to request a monetary award based on their cooperation with an IRS investigation. This process is different from most whistleblowers operating under the False Claims Act. The IRS has its own procedure, but the result is an opportunity for anyone with evidence of tax fraud to provide information in exchange for a potential reward.

It is not enough to simply notify the IRS of an alleged act of tax fraud. First, individuals must submit a document known as Form 211. This form must include details regarding the whistleblower and the alleged act of tax fraud. Th IRS will review the information to determine if there is a good faith basis to believe that fraud has occurred.

If the IRS pursues enforcement actions based on this information, the person who provided the tip that led to the prosecution could be entitled to compensation. This award is a percentage of the funds recovered during the fraud investigation.

The amount of the award can vary, assuming that the IRS was able to recover any tax debt from the violating party. In general, the award will be between 15 and 30 percent of whatever was recovered.

This process can be complicated and stressful, but there is no reason to pursue it alone. A Columbia IRS whistleblower attorney could not only assist with filing a claim but also protect an individual from retaliation afterward.

Limits on Who Can Claim a Reward

While the IRS will always accept tips regarding underpayments or fraud, not everyone is allowed to claim a reward. Compensation is only available when an original tip results in a successful enforcement action.

A person may not recover a reward if they are legally obligated to disclose tax evasion under federal law. This usually applies to specific federal agents or employees of the Department of the Treasury.

Additionally, benefits will not be paid out in cases where the whistleblower failed to provide identifying information in their form. Lastly, the IRS will not provide a reward if the subject of the complaint earns less than $200,000 annually. Call a Columbia lawyer for more information on IRS whistleblower requirements.

Get in Touch With an IRS Whistleblower Attorney in Columbia Today

Providing tips regarding tax fraud to the IRS might qualify you for a monetary award, but attempting this process on your own can create unnecessary complications.

Tax law is complex, and the Qui Tam process is unfamiliar to most people. Let a Columbia IRS whistleblower lawyer help with your case. Call our law office today to schedule an initial consultation with a seasoned attorney.

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