What day is National Report IRS Tax Fraud Day celebrated? April 10
What is National Report IRS Tax Fraud Day? Nobody likes to pay taxes. The only thing worse than paying your own taxes is paying someone else’s taxes! Right now, you are paying $1,000 a year more in taxes that you should because corporations and individuals are committing tax evasion. The good news is the IRS is offering whistle-blower rewards for turning in tax cheats. This national day and web page outlines the IRS reward program and shows you how to file for a reward.
Who created the national day? Former Department of Justice Attorney Joel D. Hesch created the National Report IRS Tax Fraud Day to bring attention to the IRS whistle-blower reward programs and to teach the public how to go about claiming a reward. After 16 years of working in the DOJ whistle-blower reward office in Washington D.C., and working on cases recovering over $1.5 billion dollars, Mr. Hesch formed his own law firm dedicated solely to helping whistle-blowers file rewards under the various government reward programs, including the IRS Tax Fraud Reward Programs.
How to celebrate National Report IRS Tax Fraud Day? The best way to celebrate National Report IRS Tax Fraud Day is to learn about the IRS Whistle-blower Reward Programs (discussed more below) and then contact an experienced whistle-blower reward attorney to find out if you have the right type of case eligible for a reward. In addition, tell others of National Report IRS Tax Fraud Day and this web page so they can help stamp out tax fraud. Below are sections detailing how to file for a whistle-blower reward for reporting IRS tax fraud.
How to report tax fraud and received a monetary reward? In 1867, the IRS created a reward program that allowed, but did not require the IRS to pay rewards for reporting tax fraud. As you can imagine, the thought of the IRS having sole discretion to pay rewards was not very appealing. Thus, the old tax reward program was seldom used. In 2006, the IRS created a new program that set minimum amounts of rewards and allowed a whistle-blower to hire an attorney to file the reward and appeal the amount of a reward. However, the new program only applies to tax fraud over $2 million. Therefore, smaller cases are still governed by the old program. Below explains how to apply for a reward under both programs.
Reporting Tax Fraud Under $2 million
If the amount of tax fraud is under $2 million, you are governed by the old IRS reward program. Under it, a whistle-blower generally does not use a lawyer to contact the IRS. However, the IRS has wide discretion as to what amount of a reward to pay, if any. In addition, you cannot appeal the denial of a reward or the amount of a reward.
If you want a reward for reporting tax fraud under $2 million, you can visit the IRS webpage by clicking https://www.irs.gov/compliance/whistleblower-informant-award.
Reporting Tax Fraud Over $2 million for a Reward
In 2006, the IRS totally revamped its reward program. First, the IRS must pay at least 15% (and up to 30%) of the amount it recovers based on your allegations. For instance, if you report a company that underpaid taxes by $10 million, your reward is between $1.5 million and $3 million. There are no caps, so the sky is the limit for reporting large tax cheats. Second, you can use an attorney to file for the reward. The IRS might take your application more seriously if an experienced attorney investigates and files the application for you. Most attorneys take these cases on contingency basis, meaning they take a portion of the reward and you should not have any out of pocket costs. Third, your attorney can appeal the denial of a reward or contest the amount of the reward. Fourth, your name will remain confidential.
To be eligible for a reward under this program, the amount of the tax fraud must exceed $2 million, and if the allegations are against an individual they must have at least $200,000 in gross income that year. In addition, you (or your attorney) must submit the IRS Form 211 and provide the IRS with detailed information (documents preferred). Your lawyer can file the form and information on your behalf.
To read more about the IRS reward programs, you can visit the IRS website at: https://www.irs.gov/compliance/whistleblower-informant-award.
How to ask Mr. Hesch to file your reward application:
Mr. Hesch and his team of attorneys would be pleased to review your information in complete confidence and help you determine if you have the right kind of information to receive a significant IRS reward and file your whistle-blower reward application. However, The Hesch Firm, LLC is very selective in the cases it takes. This section explains the criteria his firm uses to evaluate potential reward cases and how to contact Mr. Hesch directly to ask him to consider your case.
1. $5 million tax fraud
Please note that The Hesch Firm does not handle whistle-blower cases where the amount of tax fraud is under $5 million over the past 6 years. It is the opinion of Mr. Hesch that the IRS is most interested in larger cases and if the amount of tax fraud is under $5 million it might not be worth the time and risks of blowing the whistle. Other firms may take smaller cases, but if you want Mr. Hesch to be your attorney, make sure that the amount of underpaid taxes is $5 million.
Here’s how to calculate the $5 million. Assume a Company XYZ filed a 2016 tax return and is in the 35% tax bracket. Leaving aside interest and penalties, in order to have underpaid taxes by at least $5 million, the company would have had to understate income (or overstated expenses) by close to $15 million. That is because the reward is based upon the amount of unpaid taxes collected from the defendant, not the amount of income or deductions misstated. Thus, the amount of underpaid taxes on $15 million in hidden income is $5.25 million. That is also the amount used to calculate the reward. The IRS will seek $5.25 million from the defendant and pay you 15-30% of the $5.25 million it recovers, which is between $787,500 and $1.5 million.
2. You worked for the company
In addition, Mr. Hesch does not take cases from whistle-blowers that did not work for the person or entity that committed the tax fraud. In his experience, the government rarely takes cases without inside information from someone who worked for the company committing the tax fraud.
How to Contact Mr. Hesch
If you worked for the company committing the tax fraud and the amount of underpaid taxes was at least $5 million, please contact Mr. Hesch by filling out the form at his website: www.HowToReportFraud.com or send him an email at his private email address of Joel@HowToReportFraud.com.
Below is a list of all the information you must put in your email in order for Mr. Hesch to be able to respond to you. However, please do not include the name of individuals or the company engaged in tax fraud. Mr. Hesch will request additional information after reading your email or set up an interview, but only if you supply the information set forth below.
Include in your email to Mr. Hesch a separate paragraph for each of the following five items:
- Explain in detail the fraud allegations. [Please be specific and very detailed in describing the tax fraud, but without mentioning the name of the wrongdoer.]
- Estimate how much money was underpaid in taxes. [Do your best to estimate how much in income was not reported or expense that were overstated, and state how you calculated the amounts.]
- State what type of documents you have to help prove the fraud.
- State whether you still work for the entity. [If you left, state when you left and why.]
- State whether you talked to another attorney about reporting the fraud? [If so, state the status of your communications with other attorneys.]
The Hesch Firm will treat your information confidential. The law also treats your communication with Mr. Hesch as protected and privileged during the time you are contacting legal counsel to seek to obtain representation. Mr. Hesch will not use your information for any other purposes than determining if he can represent you even if you decide not to hire him or file for a reward.
After The Hesch Firm reviews your email, an attorney will contact you. The first contact with you will be by email, so be sure to use an email address that you will check and that it is private. [Do not use an email associated with your employer.]
Mr. Hesch will endeavor to personally review every email containing the requested information and will send you an initial email either arranging for a telephone interview by himself or one of the trusted attorneys working with him on whistle-blower reward cases or explaining that it is not the type of case he can represent you.
Although we will treat the information as confidential, the transmission of any information is not intended to create, and receipt does not constitute, an attorney client relationship. Even if you submit information to The Hesch Firm, that does not make us your lawyer. Instead, we will use your information to investigate the matter and determine whether we can and will represent you in bringing your whistleblower case. Only once we both sign a written agreement will we actually become your lawyer and advocate. A fraud case can take a number of years from start to finish and it can be expensive for a lawyer to take a case. Therefore, we conduct a thorough analysis of cases and we do not accept every case. It may take time to evaluate your questionnaire, and we may be busy on other matters at the time you send your information. If our time constraints do not fit your needs, you may wish to discuss your matter with another attorney.
What other national days are there for whistle-blowing or whistle-blower rewards for reporting fraud? There are many other national days relating to reporting fraud against the government. Here are a few to consider:
- National Report Medicare Fraud Day September 12
- National Report Military Fraud Day July 2
- National Whistleblower Reward Day February 20