Tax Evasion Attorney

Tax evasion occurs when someone defrauds the federal government (or state) by not paying taxes. Evasion occurs at the criminal level, but often the underpayment of taxes is also considered evasion as well. Both forms can be reported to the IRS; and in some instances, whistleblowers who report tax evasion may be entitled to an award for their information.

If you’re a whistleblower seeking a tax evasion attorney, look no further than Kohn, Kohn and Colapinto. Our firm is behind the largest IRS tax evasion cases in world history, including the Bradley Birkenfeld case, which resulted UBS paying over $780 million in fines, and Birkenfeld receiving an award of $104 million – the largest in history at the time.

This is just one of many similar cases that we’ve fought and won. The others remain confidential due to strict confidentiality offered by the IRS under their whistleblower program. Rest assured, if you’re looking for the best tax evasion attorney for your whistleblower claim, we’re the firm for you. Our attorneys work on a contingency basis, meaning we only get paid if we win your case.

There are many forms of tax evasion, some of which are more deliberate than others. Regardless of form, the main idea behind tax evasion is to save money by avoiding the payment of federal or state taxes through various tactics, which might include the following:

• Concealing Income: This includes underreporting income, utilizing offshore tax havens, or failing to report income from illegal activities like organized crime.
• Fabricated Records: This covers having multiple sets of financial records (“books”), using false or altered documents, or claiming false exemptions or deductions.
• Misrepresenting Identity/Status: This includes claiming residency in a different state or country to avoid taxes, or claiming dependents that don’t qualify.
• Improper Tax Filing: This involves filing late tax returns, failing to withhold taxes properly, or neglecting to follow tax laws altogether.
• Shifting Assets: This includes concealing assets or using illegal property easements to avoid taxes.
• Undue Use of Credits/Deductions: This involves claiming excessive or fraudulent credits and deductions on tax returns.

There are many other types of tactics tax fraudsters will deploy to evade taxes. You can learn more about it by reading 26 U.S.C. § 7201 – Attempt to evade or defeat tax, which states:

“Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 5 years, or both, together with the costs of prosecution.”

If the taxes, penalties, interest and other amounts in a dispute exceed $2 million, other qualifications are met, the IRS may award the whistleblower between 15 percent to 30 percent of the amount collected. Amounts of course depends on several factors, which include the following:

Positive Factors

• Quality of Information: Specificity and credibility of evidence provided (strong financial records, witness accounts). Uniqueness of the information (not readily available from public sources).
• Significance of the Case: Amount of tax recovery generated by the information (higher recoveries lead to higher percentages). Whether the case involves complex tax schemes or high-net-worth individuals.
• Whistleblower’s Contribution: How much the information directly contributed to IRS action (leading role vs. supporting evidence). Early reporting allows the IRS to intervene sooner (positive impact).

Factors that Decrease Award Percentage (Negative):

• Publicly Available Information: If the information was already known or easily accessible, the award percentage is reduced.
• Whistleblower’s Role in Noncompliance: If the whistleblower participated in the tax violation, the award percentage may be significantly reduced or eliminated.
• Late Reporting: Delaying the report can hinder the IRS investigation and may decrease the award percentage.

It’s important to note that there are other factors that can increase or decrease an award amount, such as if the whistleblower has experienced retaliation, if they’ve been rewarded before, and their level of cooperation in a case.

Tax evasion cases are complex and must be fought with experience – especially if they involved millions of dollars and an award is at stake. Tax evasion attorneys can help in several ways, which includes the following:

• Case Evaluation: a tax evasion attorney specializing in whistleblowing can help assess the strength and qualify of your case and its potential of being picked up by the IRS.
• Protection: a tax evasion attorney can help protect your anonymity, and also protect you against retaliation from employers.
• Maximize Awards: a tax evasion attorney can help you maximize your award potential by building a strong case, negotiating, and helping you meet certain deadlines.
• Legal Representation: an attorney will be your liaison between you and the IRS, and assist with any disputes along the way to ensure you have the best chances of winning.

A tax evasion attorney who deals in whistleblower claims can provide a wealth of expertise, experience, and confidentiality, ensure their rights are protected and challenges overcome.

If you’re a whistleblower with information about tax evasion, we suggest contacting an attorney for assistance, as the process is quite complex. However, you may choose to file Form 3949-A, Information Referral and Form 211, the Application for Award for Original Information on your own. Either way you go, the general process is as follows:

1. Hire An Attorney: While it’s technically not mandatory to have an attorney to report tax evasion under the IRS Whistleblower Program, it can be highly beneficial for protecting your interests and maximizing your potential award.
2. Gather Evidence: You must collect financial records, such as bank statements, invoices, and other receipts that indicate underreported income. You can also collect emails, memos, or witness accounts from people with firsthand knowledge
3. Choose Reporting Method: Report the suspected tax violations using Form 3949-A, if you suspect a business or individual evading taxes. This can be submitted online or by mail, but you will not be able to report over the phone.
4. Anonymous Filing: If you choose to file anonymously, you must do so with the help of an attorney. Why? Because filing directly as an individual exposes your identity, and thus a tax evasion attorney can act as a buffer between you and the IRS.
5. Cooperation: It’s best to cooperate with the IRS to not only expedite the process, but also increase your chances at receiving an award. This is also another reason why having an attorney on your side can help, as IRS cases take time.

This is the general whistleblowing process. However, it’s much more technical. Failure to follow the rules may result in your case being dismissed, so it’s important to get in touch with an tax fraud attorney to increase your odds.

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The IRS Whistleblower Claims Process

Besides being behind over 33% of all IRS whistleblower award cases, including some of the largest in world history, we’re also lawmakers who were influential in drafting the bipartisan Taxpayer First Act, which was signed into law on July 1, 2019. We provided comments to Congress to strengthen the IRS Whistleblower Program. We have intimate knowledge of IRS tax laws and the expertise to win any case, no matter the amount of the tax evaded.

We are all senior-level whistleblower attorneys who work collaboratively to ensure you receive the best results for reporting tax evaders under the IRS whistleblower program. This means protecting you against retaliation and getting you the award you deserve.

If you know of tax evasion, get in touch with us today for a free consultation.