January 13, 2014 — Established in 2006, the IRS Whistleblower Office assists conscientious whistleblowers in notifying the IRS about tax cheats whose misconduct injures every honest U.S. taxpayer. The Tax Relief and Health Care Act of 2006 authorizes the Office to pay tipsters 15 to 30 percent of the government’s recovery in tax fraud cases. The reward is available in cases involving businesses regardless of the size of the recovery. For instances of tax fraud committed by private individuals, financial rewards are also available for whistleblowers when certain circumstances exist.
Palm Desert Businessman Failed to Report $1.4 Million in Income
A California man has been sentenced to a 16-month prison term and ordered to pay the IRS $270,725 in restitution. Gary Mach, of Palm Desert, California, had pleaded guilty in August 2013 to conspiracy to defraud the government.
Between January 2002 and December 2010, Mach allegedly declined to report significant income made from a Riverside County pool-servicing business known as CSPS. According to the U.S. Justice Department, Mach hid the income by directing that his paychecks be issued to a trust called “Quintessential.” In addition, Mach established a bank account in the name of Quintessential into which he deposited CSPS proceeds. Mach also tried to interfere with a summons the IRS served on a bank for Mach’s business account records by closing the account after the bank lawfully complied with the summons.
Mach’s admitted total unreported income for the years at issue amounted to $1,410,430. The tax owed to the IRS on that amount is $270,275.
Waters & Kraus: Lawyers Helping Whistleblowers Fight Tax Fraud
Informants in tax fraud cases usually count on a whistleblower lawyer to research the relevant tax issues, find experts and advance the costs of retaining them, prepare disclosure forms for the IRS and act as liaison with the government. With a national reputation in whistleblower litigation, Waters & Kraus offers tipsters in tax evasion cases the experienced legal counsel they need. Our qui tam lawyers understand how to protect your interests. To have one of our qui tam attorneys review your potential case, email us or call 855.784.0268.