January 7, 2015 — The Tax Relief and Health Care Act of 2006 established an IRS Whistleblower Office to encourage whistleblowers with knowledge of an employer’s tax fraud to notify the IRS and receive compensation. The Act allows tipsters who collaborate with the government to receive a percentage of 15 to 30 percent of the funds recovered by the IRS based on an informant’s unique information.
Massachusetts Businessman Failed to Report Income from Adult Entertainment Establishment That Brought in Millions of Dollars
A Massachusetts businessman has admitted to tax evasion in connection with his ownership of a California adult entertainment establishment. Richard L. Furnelli reportedly failed to file individual tax returns for the tax years 2006 through 2009. Furnelli also evaded paying taxes during the same time period — in which he earned over $2 million in income.
Furnelli held a substantial interest in two entities that ran the Gold Club in San Francisco. Gold Club-SF LLC and Gold Inc. allegedly brought in gross receipts each year that varied from a low of $2.5 million to a high in excess of $10 million dollars. For the years in question, Furnelli ensured that his income from the adult entertainment venture was paid to RLF Ventures LLC, a nominee entity.
To settle the charges, Furnelli will pay the IRS for the federal income taxes he owes for the tax years 1998 through 2009. He is scheduled for sentencing in April 2015.
Employees Notify IRS About Employers’ Tax Fraud
While Waters & Kraus is not handling this particular instance of tax fraud, we are representing whistleblowers with knowledge of similar types of tax scams. Before stepping forward, tipsters should understand how the process works. The IRS tax fraud lawyers with Waters & Kraus provide government collaborators with the legal counsel they deserve. Contact us by email or call our whistleblower attorneys at 855.784.0268 to learn how we can protect your interests. Our qui tam lawyers, like Michael Armitage and Gary Paul in the firm’s California office, are committed to advancing and protecting informants’ interests in whistleblower lawsuits.