June 6, 2013 — Whistleblowers with knowledge about ongoing tax fraud have a place to turn to report the violations. The Tax Relief and Health Care Act of 2006 set up an IRS Whistleblower Office to process tipsters’ information. The Act allows informants to receive a portion of the amount the IRS collects based on the information supplied — anywhere from 15 to 30 percent. To qualify for compensation based on information concerning a private individual’s tax violations, the scofflaw’s gross income must top $200,000 for every taxable year involved and the government must recover more than $2 million. To receive a reward for providing information leading to a recovery for a corporation’s tax violations, there is no minimum recovery required.
Las Vegas Physician Files No Tax Returns for Over a Decade
Robert David Forsyth, a physician in Las Vegas, has been sentenced for failing to file income tax returns and income tax evasion. The doctor was ordered to pay $306,171 and he received a three year sentence of supervised release.
According to the U.S. Department of Justice, the last tax year for which Forsyth filed a tax return was 1994. Yet between 1999 and 2008, Forsyth made money from several sources. In addition to earning money from his medical practice, Forsyth also made income from expert witness fees, and, starting in 2002, Social Security benefits.
To conceal his failure to pay taxes on his income, Forsyth operated on a cash-only basis to the extent possible. He closed out all his personal bank accounts and cashed his paychecks with a third party business. He used cash to pay personal expenses.
Not having to pay taxes freed Forsyth up to spend the extra cash on luxury goods, gambling and hotel rooms in Bangkok and Costa Rica.
Inside Informants Notify IRS About Tax Violations
Most people or businesses that hide their taxable income from the IRS are not as successful at hiding it from their own employees. Before notifying the IRS about a tax-cheat employer, however, government collaborators should seek legal counsel concerning the way the whistleblower process works. The IRS tax fraud lawyers with Waters & Kraus provide insider employees with the experienced legal representation they deserve. Contact us by email or call our whistleblower attorneys at 855.784.0268 to learn how we can safeguard your interests.