The Internal Revenue Service, or IRS, is the sole governmental agency responsible for collecting taxes. This collection applies to people living in the United States as well as companies incorporated in the US.
Naturally, parties wish to limit their tax liabilities as much as possible. Sadly, this often leads to illegal activity. Not only is it illegal to not pay one’s taxes, but it is also a crime to alter data in any way to lower one’s tax burden. These tax evasion crimes are common around the country.
If you believe that you have information about tax evasion or any other tax-related crime, you have the opportunity to come forward as a whistleblower. A Lexington IRS whistleblower lawyer could help you to gather data, submit complaints to the IRS, and demand a proper reward for your participation.
The collection of taxes is the only way in which the federal government collects revenue. For many individuals, the most common form of tax that they pay to the federal government is the income tax. However, companies are also subject to taxation at the federal level on their profits.
A failure to pay these taxes for any reason is a violation of federal law. For example, an individual may not submit a tax return in a year when they had income. Additionally, companies may intentionally understate their profits to make it seem as though they do not owe as much.
The IRS relies on whistleblowers to learn about a significant portion of tax crimes. Understandably, these people may fear retaliation in the workplace if they are an employee working for a company that commits tax fraud. One way in which a Lexington IRS whistleblower attorney may be able to help is in protecting workers from potential retaliation. In addition, if retaliation does occur, a lawyer could take the lead in pursuing a civil remedy.
Whistleblowers play an important role in uncovering tax crimes around the country. In fact, if these people did not come forward, it is likely that many tax crimes would go unpunished. To encourage more people to serve as whistleblowers, the IRS offers a reward for information that leads to tax law convictions.
23 United States Code § 7623 authorizes the IRS to offer a reward for this information. The amount of the reward will vary between 15 and 30 percent of the value recovered in the investigation. However, there are limitations as to who can collect these payments. Members of law enforcement or those with a duty to report wrongdoing are ineligible. So too are participants in the illegal activity. Finally, the information that a person provides must result in a conviction and be new to the IRS. A Lexington IRS whistleblower attorney could help people to submit whistleblower complaints that seek out a reward through a writ of Qui Tam.
Tax fraud and evasion are consistent problems in Lexington and around the country. The federal government empowers the IRS to investigate instances of these crimes and to punish those who commit them. Despite this broad mandate, the IRS lacks the resources to uncover every instance of tax crime on its own. This leads them to offer cash rewards to individuals who come forward with information.
If you believe that you are a witness to tax crimes, you have the ability to serve as a whistleblower. Not only is this the just thing to do, but it can also have substantial financial benefits. A Lexington IRS whistleblower lawyer may be able to help you to develop your complaint, draft documents to send to the IRS, and seek out a fair reward for your information. Contact a Lexington IRS whistleblower attorney today to get started.