According to research conducted by the Association of Certified Fraud
Examiners (ACFE), U.S. organizations lose an estimated 5 percent of
annual revenues to fraud. Based on the Gross Domestic Product for 2013,
this indicates estimated annual fraud losses of more than $840 billion
among organizations in the United States. That means that the maximum payout to Whistleblowers in the United States could have been $252 billion if the Government recovered the $840 billion in fraud.
In 2013, the IRS paid out only 0.2% ($52 million/$252 billion) of the potential amount that the Government could have paid to Whistleblowers. Based on the $840 billion in total potential fraud in the United States, why aren't the IRS's phones ringing off the hook with Whistleblower tips?
According to Forbes.com, "The statistics in the annual report to Congress
show that the IRS continues to fail to capitalize on the wealth of
detailed information about major tax fraud and abuse that whistleblowers
have provided to the IRS program over the past seven years. Hundreds of
millions, and likely billions of dollars, could be recovered with
whistleblower help if the IRS would act on the information provided
rather than sit on it. The IRS whistleblower program
has been a major disappointment. The root of the problem is the
anti-whistleblower attitude ingrained in the IRS culture – a status quo
that no IRS commissioner has attempted to change, leaving Senator Chuck
Grassley (R-IA) as the primary government champion to prod the IRS to
work with whistleblowers."
Sen. Chuck Grassley, R-Iowa, announced Thursday he will create the
Senate Whistleblower Caucus to ensure protections for federal employees
exposing wrongdoing at their agencies are being enforced. Good for you Sen Grassley! Why not create protection for all Whistleblowers that report wrongdoing?
"It is time to clear the air, punish the guilty and protect the whistleblowers."-Tony Leon
Related Links:
http://www.acfe.com/rttn-archive.aspx
http://abcnews.go.com/Politics/wireStory/irs-paid-53-million-whistleblowers-2013-23198128
http://www.forbes.com/sites/erikakelton/2014/04/08/irs-cheats-taxpayers-by-ignoring-whistleblowers/
Showing posts with label IRS. Show all posts
Showing posts with label IRS. Show all posts
Friday, April 11, 2014
Tuesday, April 8, 2014
How Do You Report Suspected Tax Fraud Activity?
According to IRS.gov, you can whistleblow on wide range of wrongdoings that you may not be aware of, see list below:
1. If you suspect or know of an individual or a business that is not complying with the tax laws on issues such as False Exemptions or Deductions; Kickbacks; False/Altered Document; Failure to Pay Tax; Unreported Income; Organized Crime; or Failure to Withhold.
2. If you suspect someone stole your identity and used your SSN for employment purposes or could use your SSN to file a tax return.
3. If you suspect fraudulent activity or an abusive tax scheme by a tax return preparer or tax preparation company.
4. If you suspect a tax return preparer filed a return or altered your return without your consent and you are seeking a change to your account.
5. If you suspect an abusive tax promotion or promoter.
6. If you suspect misconduct or wrongdoing by an exempt organization or employee plan.
7. If you have information and want to claim a reward.
8. If you suspect you received or are aware of fraudulent IRS e-mails and websites.
After you figure out the category to whistleblow under, you need to choose from one of the eight IRS forms to fill out and mail it in. The IRS said late last week that it paid whistleblowers $53.1 million, down from $125.4 million in 2012. No wonder the IRS has only paid out $53 million in 2013 because the process and Government forms do not make sense. Don't worry...over the next couple of blogs I will walk through the process step by step, so you can do the right thing and whistleblow on an individual or company that is not following the law.
“Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws” ― Plato
“Justice will not be served until those who are unaffected are as outraged as those who are.” ― Benjamin Franklin
Related Links: http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F
http://www.reuters.com/article/2014/04/07/us-usa-tax-whistleblower-idUSBREA361V920140407
1. If you suspect or know of an individual or a business that is not complying with the tax laws on issues such as False Exemptions or Deductions; Kickbacks; False/Altered Document; Failure to Pay Tax; Unreported Income; Organized Crime; or Failure to Withhold.
2. If you suspect someone stole your identity and used your SSN for employment purposes or could use your SSN to file a tax return.
3. If you suspect fraudulent activity or an abusive tax scheme by a tax return preparer or tax preparation company.
4. If you suspect a tax return preparer filed a return or altered your return without your consent and you are seeking a change to your account.
5. If you suspect an abusive tax promotion or promoter.
6. If you suspect misconduct or wrongdoing by an exempt organization or employee plan.
7. If you have information and want to claim a reward.
8. If you suspect you received or are aware of fraudulent IRS e-mails and websites.
After you figure out the category to whistleblow under, you need to choose from one of the eight IRS forms to fill out and mail it in. The IRS said late last week that it paid whistleblowers $53.1 million, down from $125.4 million in 2012. No wonder the IRS has only paid out $53 million in 2013 because the process and Government forms do not make sense. Don't worry...over the next couple of blogs I will walk through the process step by step, so you can do the right thing and whistleblow on an individual or company that is not following the law.
“Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws” ― Plato
“Justice will not be served until those who are unaffected are as outraged as those who are.” ― Benjamin Franklin
Related Links: http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F
http://www.reuters.com/article/2014/04/07/us-usa-tax-whistleblower-idUSBREA361V920140407
Monday, April 7, 2014
The Largest Whistleblower Awards Ever Paid Out
The
largest whistleblower payout in United States history was made in the amount of
$167.7 million under the False Claims Act. The
False Claims Act allows private persons to file suit for violations of the
False Claims Act on behalf of the government.
A suit filed by an individual on behalf of the government is known as a
“Qui Tam” action. The whistleblower is entitled
to receive between 15 and 25 percent of the amount recovered by the government
through the qui tam action. In addition
to the False Claims Act, the Internal Revenue Service,
Security and Exchange Commission, and U.S. Commodity Futures Trading Commission have whistleblower programs that offer monetary
awards. For example, the largest payout
under the Internal Revenue Service’s whistleblower program was for $104 million
to a former banker who helped the U.S. Government uncover tax evasion. Also, the biggest whistleblower award under
the Securities and Exchange Commission whistleblower program was paid out $14
million. If you’re hoping to get rich
from the U.S. Commodity Futures Trading Commission whistleblower program don’t
hold your breath, no payouts have yet been paid out to whistleblowers.
Whistleblower Award Program
Rankings:
#1.
“Qui Tam” Provision under the False Claims Act
#2.
Internal Revenue Service
#3.
Security and Exchange Commission
#4.
U.S. Commodity Futures Trading Commission
Sunday, April 6, 2014
Whistleblower Programs with Monetary Awards
This blog with discuss how anyone can report their company by reporting acts of fraud, waste and abuse to Whistleblower Programs that payout huge awards. Follow this blog and learn how to make money doing the right thing.
In the United States there is 4 Whistleblower Programs that award individuals when the Government collects money, some payouts have been over $100 million.
1. Securities and Exchange Commission (SEC)
The Dodd-Frank
Wall Street Reform and Consumer Protection Act, signed into law by President
Obama on July 21, 2010, authorizes the SEC to pay an award to eligible
whistleblowers. You may be eligible for a monetary award if the information you
submit leads to an SEC action that results in monetary sanctions exceeding
$1,000,000.
Related
Link: http://www.sec.gov/about/offices/owb/owb-tips.shtml
2. U.S. Commodity Futures Trading Commission (CFTC)
The
CFTC’s whistleblower program – which was created by the Dodd-Frank Act – allows
for the payment of monetary awards to eligible whistleblowers, and provides
anti-retaliation protections for whistleblowers who share information with or
assist the CFTC. The CFTC will pay
awards to eligible whistleblowers who voluntarily provide us with original
information about violations of the Commodity Exchange Act that lead us to
bring an enforcement action that results in more than $1 million in monetary
sanctions.
3. Internal Revenue Service (IRS)
The
IRS Whistleblower Office pays money to people who blow the whistle on persons
who fail to pay the tax that they owe. If the IRS uses information provided by
the whistleblower, it can award the whistleblower up to 30 percent of the
additional tax, penalty and other amounts it collects.
Related Link: http://www.irs.gov/uac/Whistleblower-Informant-Award
4. “Qui Tam” Lawsuit Under the False
Claims Act (FCA)
The FCA allows private persons to
file suit for violations of the
FCA on behalf of the government. A
suit filed by an individual on behalf of the government is known as a “qui tam”
action, and the person bringing the action is referred to as a “relator.”
If the government intervenes in the
qui tam action, the relator is entitled to receive between 15 and 25 percent of
the amount recovered by the government through the qui tam action. If the
government declines to intervene in the action, the relator’s share is
increased to 25 to 30 percent.
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