Report Tax Fraud & Collect to 30% Reward

Report Federal Tax Fraud

If you have information and proof that individuals of corporations are and have failed to pay federal taxes totaling $2 million or more, you may qualify for an award of up to 15%-30% of the amount of money recovered by the Federal Government.

Common types of tax fraud include:

• Altering employee income to show that they are making less than what they are actually making;
• Reimbursing employees in cash;
• Companies, entities or individuals excluding income from foreign stock exchanges;
• Maintaining two sets of financial records;
• Declaring phony tax deductions;
• Overstating the amount of tax deductions;
• Companies, entities or individuals transferring assets outside the United States;
• Forging financial documents or account books.

Without the information provided by whistleblowers filing a qui tam claim under the federal and state false claims act, tax fraud would go undetected by the government.

If you have information and proof that individuals or corporations have failed to pay federal taxes totaling $2 million or more, please contact us for a free and confidential consultation by calling our 24/7 hotline at 212-605-6200 or toll free at 1.888.FRAUD.USA (1.888.372.8387), or by submitting an email inquiry.

Report NYS Tax Fraud

As of August 27, 2010, the New York False Claims Act (N.Y. State Fin. Law § 187 et seq.) permits whistleblowers to report tax fraud/tax evasion by bringing a qui tam lawsuit. Prior to the amendments, the New York False Claims Act, just like the Federal False Claims Act, expressly excluded the false claims based upon statements and records made under the tax law.

Opening the door to qui tam lawsuits for tax fraud/evasion brought by accountants, bookkeepers, employees of banks, accounting firms, and other businesses that handle tax matters, a whistleblower can now bring a qui tam lawsuit against a person or business that makes more than $1 million in annual net income and defrauds the State of New York of more than $350,000 by knowingly making a false claim¹.

Potential scenarios which would be actionable under the New York False Claims Act now include a hedge fund that is hiding funds in an offshore account, a New York based business owner who tries to claim an out-of-state exemption, a store that doesn’t turn over sales taxes, a company that hires workers off the books, or even a business that takes tax credits based on fraudulent job creation claims.

If the whistleblower lawsuit results in a finding of liability, the state may impose the highest civil penalties possible. This includes making the guilty party pay back three times the amount of money he or she defrauded the government and/or civil penalties of up to $12,000 for each false claim.

The incentive for whistleblowers to report tax fraud/tax evasion is enormous. A whistleblower could get up to 30% of the total amount collected by the State in a case where the government does not intervene and up to 25% if the government intervenes in the matter.

If you have first-hand knowledge of a person or entity in New York State worth more than $1 million that is committing more than $350,000 in tax fraud, please contact the qui tam attorneys at Levy Phillips & Konigsberg, LLP, by calling their toll-free 24/7 hotline at 1.888.FRAUD.USA (1.888.372.8783). All communication is confidential.

¹ See the relevant amendments to New York State False Claims Act.

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