March 13, 2014 — The Tax Relief and Health Care Act of 2006 established an IRS Whistleblower Office to allow tipsters with information about tax fraud to notify the IRS and receive deserved compensation. The Act provides informants with the right to rewards ranging from 15 to 30 percent of the amount recouped by the IRS as the result of a successful tip. The rules governing rewards are different for tips about businesses as opposed to those about private individuals. The qui tam lawyers with Waters & Kraus are available to explain the difference and to answer any questions you may have about the IRS whistleblower program.
Tax Cheat Failed to Pay Taxes for Several Years and Then Sought Ineligible Income Tax Refunds
A former chiropractor from New Jersey has been convicted of submitting false claims asking for tax refunds. In 2009, David Moleski submitted three phony tax returns for 2006, 2007 and 2008. The three returns asked for more than $1.3 million in undeserved income tax refunds, the U.S. Justice Department reports.
Between 1999 and 2005 Moleski did not even bother to file income tax returns. When the IRS began efforts to collect the money owed with a tax levy, Moleski obstructed the attempts and instructed a third-party financial institution not to cooperate with the IRS. He also tried to pay his bills with phony financial instruments from a non-existent account. As an example, Moleski attempted to satisfy a $500,000 mortgage debt with a bogus financial instrument.
At his sentencing in May 2014, Moleski could receive a 30-year prison sentence as well as a $250,000 fine for each count on which he was convicted.
Office Employees Notify IRS About Tax Fraud by Medical Providers
Inside employees, particularly those in billing and accounting, are often the first to spot tax violations by a health care provider. Before notifying the IRS, though, whistleblowers deserve to know exactly how the process works. The IRS tax fraud attorneys with Waters & Kraus ensure that whistleblowers’ rights are protected. Contact us by email or call our qui tam attorneys at 855.784.0268 to learn how we can help you help our government.
