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Apr 7, 2022 by |

Los Angeles IRS Whistleblower Attorneys: Blowing The Whistle On Offshore Tax Avoidance Schemes And Illegal Tax Shelters

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IRS Whistleblower Process

Elements Of An IRS Whistleblower Case

Examples Of Tax Fraud

The Internal Revenue Service (IRS) rewards individuals who submit credible evidence of tax fraud to the IRS and assist the Service in pursuing tax cheats.  To be eligible for an award, whistleblowers must provide specific and credible evidence that a taxpayer is avoiding or underpaying a tax obligation to the federal government, whether fraudulently or otherwise, and that information must substantially contribute to the government’s recovery of at least $2 million, including interest and penalties. Individuals begin a whistleblower case by submitting a confidential form to the IRS describing the fraud; they do not file a complaint in court.  The whistleblower’s identity is kept confidential by the IRS while the allegations are investigated.   If the IRS recovers unpaid taxes, the whistleblower is rewarded a percentage of the recovery, which can range from 15-30% of the amount recovered.  26 U.S.C. § 7623(b).  Evans Law Firm, Inc. represents individuals with credible information of offshore tax avoidance schemes or other tax fraud and can help you submit information of the fraud and all related violations of the law to the government and present your evidence with a goal toward a reward if the IRS recovers.  If you have credible information of tax fraud in San Francisco or elsewhere in California, call us today at (415)441-8669. Our toll-free number is 1-888-50EVANS (888-503-8267).

Elements Of An IRS Whistleblower Case

The threshold amount of underpaid tax at issue to qualify as an IRS whistleblower case is $2 million.  26 U.S.C. § 7623(b)(5)(B).  The $2 million threshold can be aggregated over several tax years. If the case deals with an individual, his or her annual gross income must be more than $200,000. 26 U.S.C. § 7623(b)(5)(A).  It does not matter if the underpayment of tax is due to deliberate evasion (as in an offshore tax avoidance scheme), fraud (as in illegal tax shelters or knowingly overstated deductions or understated income), an aggressive or negligent application of the law, or even an innocent mathematical error or mistake. Any underpayment of tax, subject to the statutory threshold, can be the basis for a whistleblower submission and eventual reward.  26 U.S.C. § 7623(a)(1).

Examples of Fraud Under the Program

  • Offshore Tax Havens — when a company knowingly moves money to a bank in another country to avoid reporting taxable income in the U.S.;
  • Shell Accounts — setting up multiple bank accounts and circulating money across these accounts to evade or avoid taxes;
  • False Reporting — reporting false information on tax returns, such as underreporting revenues or taxable income;
  • Pyramiding — withholding employee taxes and intentionally not remitting taxes to the IRS, then filing bankruptcy and starting another company;
  • Failure to Pay or Report Payroll Taxes — failing to file employment tax returns or pay employment taxes on wages.

Contact Us

Ingrid M. Evans represents individuals in Los Angeles and throughout California with credible, original information of any kind of tax fraud, including offshore tax avoidance measures, and use of foreign corporations and accounts to avoid taxation or the like.  Ingrid can be reached at (415) 441-8669, or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>.  Our toll-free number is 1-888-50EVANS (888-503-8267).  Ingrid can also represent individuals who have been retaliated against for blowing the whistle on tax fraud.

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