Tipping Fraud Incentives Soon To Be Reduced

Tipping Fraud Incentives Soon To Be ReducedSeeing something being done wrong makes anyone feel uneasy. The thought of doing something about it runs through your head. Actually going ahead and doing something can be scary and intimidating. But something has to be done, right? Telling authorities of inappropriate behavior and actions is the right thing to do and some sort of reward or compensation would be nice for the consequences you might have to pay for being a whistleblower.

In 2006 the tax fraud whistleblower program was enacted to give incentives to those who report and expose tax fraud by individuals or businesses to the Internal Revenue System.  A tipster can get 15%-30% of the money as a direct result of their tip. It has to have at least $2 million in tax evasion or $200,000 a year in tax fraud.

So IRS commissioner Steven Miller wants to propose restrictions to make payouts smaller. This means it will be close to impossible to share in rewards from a company who inflates their losses and excluding from rewards from fines known as Fbar.  This all seems quite ridiculous considering the claims are very few and far between paid out. Since 2006, 1,960 claims were made but the first payment was made in 2011 and since then they have only paid out three claims. The biggest one was a $104 million to Bradley Birkefeld that started the investigation of Swiss banks.

Regardless of payouts or not, fraud is a serious claim that needs to be dealt with properly. If you are aware of fraud or have been accused of it, you will need proper legal advice to proceed. An Illinois business attorney will be able to provide information and assistance for such a case.



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