January 24, 2014 — The IRS Whistleblower Office, established in 2006, helps conscientious whistleblowers who notify the government about tax cheats whose dishonesty injures honest U.S. taxpayers everywhere. The Tax Relief and Health Care Act of 2006 allows the Office to reward informants with 15 to 30 percent of the government’s proceeds in tax fraud cases. In cases of corporate tax fraud, the reward is available regardless of the amount of the recovery. When private individuals engage in tax fraud, financial rewards to whistleblowers are also offered in many circumstances.
Business Owner’s Computer Manipulation of Company’s Sales Records and Ledger Resulted In Underreporting
Harry Neuhoff, the president and partial owner of EVA TEES Inc. in New York, has been sentenced to prison for tax evasion, the U.S. Justice Department has announced. EVA TEES, a wholesale distributor of sportswear, was formerly located in Long Island City, New York and is now located in Piscataway, New Jersey.
Between 2006 and 2008, Neuhoff, a Brooklyn resident, fudged the accounts at EVA TEES by using an accounting software program to delete records of cash sales from the program’s general ledger file. In so doing, Neuhoff caused the filing of fraudulent corporate tax returns with the IRS. Not only did Neuhoff cause the underreporting of EVA TEES’ gross receipts, he also caused a corresponding underreporting of his own personal income with the IRS during the same years. As a result of Neuhoff’s computer manipulation, EVA TEES’ gross receipts were underreported by at least $1.5 million.
Waters & Kraus: Helping Honest Taxpayers Fight Tax Fraud
Whistleblowers who notify the government about tax fraud usually retain legal counsel to research the relevant tax issues, find experts and advance the costs of retaining them, prepare disclosure forms for the IRS and act as liaison with the government. Nationally known for results in whistleblower litigation, Waters & Kraus offers informants the experienced legal representation they need. Our qui tam lawyers are focused on advancing your interests. To have a knowledgeable lawyer review your potential case, email us or call 855.784.0268.
