September 20, 2013 — The Tax Relief and Health Care Act of 2006 set up the Internal Revenue Service Whistleblower Office to encourage tips from whistleblowers about tax fraud. Tipsters who collaborate with the IRS by providing unique information about tax crimes may be eligible to receive financial rewards that range from 15 to 30 percent of the amount recouped by the IRS. The rewards give informants a powerful incentive to notify the government about tax fraud.
Tax Scofflaw Ordered to Pay IRS More Than $660,000 in Restitution
Scott G. Titus, the owner of a California residential and commercial paint business, has been sentenced to an eighteen month prison sentence for filing false employment tax returns with the IRS. The government alleged that Scott Titus Painting failed to report employee wages totaling over $1.5 million. Titus pleaded guilty to filing a false 2008 quarterly employment tax return.
From 2008 to 2010, Titus received payment from clients in cash and by check. According to the IRS, Titus would use the cash payments, and withdraw cash from his business bank account, to pay his employees’ wages. In a three year period, Titus failed to disclose almost $1.6 million in wages. By falsely underreporting the wages, Titus was responsible for a tax loss to the IRS of at least $666,748.
In addition to receiving the prison term, Titus was also ordered to pay restitution of $666,748.40 to the government.
Insiders Help Fight Tax Fraud
Insiders with knowledge of tax fraud scams provide invaluable assistance to the government. Before notifying the IRS, however, whistleblowers would be wise to seek out the help of an experienced qui tam lawyer to learn how the process works. Waters & Kraus’ financial fraud attorneys offer informants the legal counsel they need and deserve. Contact us by email or phone our whistleblower attorneys at 855.784.0268 to discuss how we can guide you through the process and safeguard your rights.