Kentucky Man Indicted for Failure to File Tax Returns

September 5, 2013 — The IRS Whistleblower Office was established by the Tax Relief and Health Care Act of 2006 to allow tipsters to collaborate with the government and receive compensation. Under the Act, informants may receive up to 30 percent of the amount the IRS collects based on tips providing unique information concerning tax fraud. Rewards for information about a private individual’s tax violations may be given only when the taxpayer’s gross income tops $200,000 for every taxable year involved and the government collects over $2 million. Rewards for tips about a corporation’s tax crimes are not dependent upon the amount of the recovery.

$916,000 in Income Unreported by Kentucky Man

A Kentucky man has been indicted for failing to file tax returns, hiding income and hindering the IRS as it attempted to investigate and collect the taxes due.

Between 2006 and 2009, James S. Faller, II was the owner and operator of Call Center Communications (Call Center) as well as a private investigator and consultant. Call Center was required to pay employment taxes based on its employees’ compensation. According to the indictment, Faller allegedly failed to pay the taxes, however, and then allegedly evaded and obstructed the IRS in its attempt to collect a $216,000 penalty imposed in connection with the unpaid employment taxes. According to the DOJ, the indictment also alleges that Faller neglected to report $960,000 in income on tax returns filed during the same time period.

The criminal charges in the current action carry maximum penalties of three to five years in prison along with fines between $100,000 and $250,000 for each count. The total fine could reach well over $1 million.

Tax Fraud Revealed by Company Insiders

When business owners cheat honest taxpayers and the government by committing tax fraud, the odds are good that company employees will find out about it. Before insider employees step forward to notify the IRS, however, they need to understand how the process works. The IRS tax fraud attorneys with Waters & Kraus provide honest informants with the legal counsel they’re entitled to. Contact us by email or phone our whistleblower attorneys at 855.784.0268 to discuss how we can advance your interests.

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