According to statistics from the California Franchise Tax Board, the state is owed approximately 6.5 billion dollars in unpaid taxes. Some contend that a partial solution to the problem would be to implement a whistleblower rewards program to encourage people to report tax fraud. California whistleblower and securities attorneys think that implementing the program could help to recoup lost tax revenue. IRS whistleblower California attorneys agree.
The California state legislature passed bills that allow both the Franchise Tax Board and Board of Equalization to give awards to whistleblowers who provide information leading to the recovery of unpaid taxes. However, whistleblower reward programs have yet to be implemented on a state level. Many people argue that it is time to kick the reward programs into gear. Often, people with inside knowledge are the only way that the government can discover fraud and tax evasion that adds up to millions of dollars each year. On a federal level, the Internal Revenue Service is aware of the power of whistleblower reward programs. The Internal revenue Service has implemented a whistleblower reward program and has used it to recoup taxpayer dollars. The federal whistleblower program has provided the government with reports of serious tax violations worth billions of dollars overall. Whistleblower and securities attorneys think that California could learn from the federal model. IRS whistleblower California attorneys agree.
California’s Attorney General understands the power of implementing a whistleblower program. California’s False Claims Act is patterned after the federal program and has helped the state recoup billions of dollars. The California Franchise Tax Board and Board of Equalization have delayed implementing whistleblower programs in the state. According to the Board of Equalization, tax fraud schemes have become complex and sophisticated, which makes it hard to determine how much to reward whistleblowers. The fact that tax fraud schemes have become complex is a great reason to have a functioning whistleblower program. Often, rewards programs are the only way that the government has to learn about new tax fraud schemes. Whistleblower and securities attorneys think that California would benefit from a whistleblower rewards program. IRS whistleblower California attorneys agree.
California has an opportunity to create whistleblower programs through the Franchise Tax Board and Board of Equalization that could make a big difference in closing the unpaid tax gap. California could model its program on the federal and state whistleblower programs that are working so well and help to recoup lost taxes that the state desperately needs.
Evans Law Firm, Inc. handles whistleblower/false claims, consumer fraud class actions, insurance and banking fraud, consumer product liability, elder abuse, and personal injury cases. If you think that you have witnessed or are the victim of financial fraud by an insurance company, bank or individual then, contact Evans Law Firm, Inc. at (415) 441-8669 for a free and confidential consultation, or email firstname.lastname@example.org.