Owner of New York Construction Companies Indicted for Cheating IRS

June 13, 2013 — The Tax Relief and Health Care Act of 2006 set up an IRS Whistleblower Office so whistleblowers with information about tax fraud could notify the IRS and receive compensation. The Act allows tipsters to receive a percentage of 15 to 30 percent of the funds recouped by the IRS based on an informant’s unique information. To be eligible for compensation concerning a private individual’s IRS violations, the tax evader’s gross income must exceed $200,000 for every taxable year involved and the government’s recovery must top $2 million. To receive a reward for information about a corporation’s wrongdoing, no minimum recovery is required.

New York Contractor Indicted for Tax Fraud

Eric Anderson, the owner of three construction companies in Dix Hills, New York, has been indicted on a variety of tax crimes, according to the U.S. Justice Department. To avoid paying taxes, Anderson allegedly ran his businesses on a cash-only basis. He paid his employees in cash, for example, and neglected to deduct or to pay to the IRS the workers’ employment taxes. In addition, the IRS alleges that from 2006 to 2008, Anderson sought to obstruct the IRS by cashing more than $10.5 million in checks made payable to his construction companies: Anderson Enterprise, Anderson Framing, and Anderson Trim Specialty. Anderson allegedly hid the check cashing activities from the person who prepared his income tax returns so the cashed-out receipts would not be included on the three companies’ tax returns.

The IRS also alleges that for the 2006 tax year, Anderson filed a false corporate income tax return on behalf of Anderson Trim. In addition, he allegedly neglected to file several years’ worth of individual income tax returns, corporate income tax returns and employment tax returns.

When Anderson discovered the criminal investigation, he allegedly shredded business records and lied to IRS investigators concerning his reliance on the check cashing service to hide company income.

If convicted, Anderson could be forced to pay a fine of $5,300,000 and serve 94 years in prison.

Employees Notify IRS About Employers’ Tax Fraud

When employers fail to pay employment taxes, it stands to reason that someone will eventually question the practice and notify the IRS. Before stepping forward, though, informants need to 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.

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