IRS Whistleblower Program Offers Rewards for Reporting Tax Cheats By Tod Aronovitz | 02/15/13 | 0 Comment

If you know of someone who is not paying all or part of their taxes to the U.S. government, you may be eligible for a whistleblower award if you report the tax cheats to the IRS.

The IRS Whistleblower program is looking for significant cases of tax avoidance by high net worth individuals, corporations, or other entities. In order to qualify for whistleblower awards, the information provided must allow the IRS to collect taxes, interest or penalties from the alleged non-compliant taxpayer.

Whistleblower payments of up to 15 to 30 percent of the amount recovered are made when the tax dispute involves $2 million or more in payments.  Individual taxpayers must have a minimum $200K gross income in order to be subject to a whistleblower claim.

Smaller amounts of recovered tax payments or individual income levels may still trigger a whistleblower award, although the percent paid will be less.

Farnell Brothers of Boca Raton Offer Example of Tax Evasion

Michael Farnell and James Farnell, residents of Boca Raton, Fla., were sentenced to prison terms last week for income tax evasion following an earlier indictment, according to the Justice Department and Internal Revenue Service (IRS). The two sold stock in a privately held Florida-based technology company between 2004 and 2006 and failed to report the capital gains or pay taxes on the capital gains from those stock sales.

While this was not a whistleblower case, it provides an example of the type of situation that could trigger a whistleblower claim. When a person with inside knowledge reasonably suspects fraud against a federal, state or county government agency, the informant can work with a whistleblower attorney, also known as a qui tam lawyer, to help the government investigate the fraud and recover losses.

A reward of 15 to 30 percent of the recovered losses is typically awarded to the whistleblower their role in uncovering waste of taxpayer money.

ARONOVITZ LAW: Miami Whistleblower / Qui Tam Law Firm

The Miami, Florida law firm of ARONOVITZ LAW routinely works with Florida whistleblowers to document fraud against the government. Click on the link to read more about our Miami Whistleblower / Qui Tam law firm services.

Contact Miami whistleblower attorney Tod Aronovitz for a confidential discussion of your potential Florida Medicare fraud case.