March 4, 2014 — In 2006, the Internal Revenue Service Office was established to give informants the means to notify the IRS about tax cheats, be they private individuals or large corporations. Under the Tax Relief and Health Care Act of 2006, tipsters in tax fraud cases may receive rewards of up to 30 percent of the amount the government collects. The reward is offered for information about businesses no matter the amount recovered. For tips about private individuals, the rules are a bit different. To learn more about collaborating with the government in tax fraud cases, call one of our experienced qui tam lawyers at 855.784.0268.
Connecticut Man Hid Consulting Business Income and Family Home in Nominee Entities
John Cote has been convicted by a federal jury in Connecticut for tax evasion and conspiracy to defraud the IRS. Cote will be sentenced in April, when he could receive as much as five years in prison and a fine of $250,000.
Between 1995 and 2009, Cote neglected to file a tax return, although he had income during that time from his consulting work in the high technology welding industry. When the IRS sought to assess or collect taxes, Cote and his wife hid their assets, wrote obstructive letters to the IRS and filed bogus criminal complaints aimed at IRS employees. Between 1998 and 2009, for example, the businesses Cote consulted for paid his compensation though Costa Rican and Swedish bank accounts to nominee entities designated by Cote. Cote also hid assets in a nominee entity bearing his wife’s name. And in 2003, Cote’s wife transferred ownership of the couple’s home into her nominee entity.
Waters & Kraus: Assisting Whistleblowers in Tax Fraud Cases
Whistleblowers in IRS tax fraud cases usually consult with a lawyer prior to notifying the government. With a nation-wide presence, Waters & Kraus helps tipsters in tax evasion cases to conduct research, locate accounting and tax law experts and coordinate with the IRS. To talk with a tax fraud whistleblower attorney, contact us by email or phone at 855.784.0268.