Tax fraud is a headache for the U.S economy. The black money generated creates a sort of underground economy or parallel economy not under the supervision of the government. The government can’t find all tax evaders without the cooperation of its responsible citizens.
As a result common citizens must come forward to report such discrepancies. These types of people are popularly termed as whistle blowers. As they provide information against their organization where they work, they often face retaliatory measures by employers.
In order to secure their life at workplace and other types of protection the government has introduced several laws. Whistleblower Protection Act (1989) is one such act aimed to protect the interest of a Tax Fraud Whistleblower. There are several agencies taking care of complaints from a Tax Fraud Whistleblower. These agencies include- Office of Special Counsel, Merit Systems Protection Board and Court of Appeals in the Federal Circuit.
The benefits provided by the government to whistle blowers evolved and strengthened further after passing of Tax Relief and Health Care Act of 2006. The new alterations to the existing act have been more favorable to the whistle blowers. Previously, the rewards were at the discretion of IRS. Now a whistle blower can get a reward between 15%-30% of the total tax evasion recovery.
Nancy on December 21st 2010 in Tax
Sales tax is consumption tax charged on purchase of goods and services. In some US states certain items are excluded from the purview of sales tax.
In some states there is gross receipts tax at 5%.The items that come under the gross receipts tax are –
- Sale of goods; and
- Sale of services.
This tax is passed on from retailer to consumers like sales tax. The state doesn’t take objection in this type of action by the retailers. Proceeds from sale of indebtness by an entity and repayment from indebtness will not come under the gross receipts tax structure. There are several other items which are exempted from the purview of this tax structure:-
- Receipts from leasing;
- Receipts from granting authority to use someone’s property and information;
- Selling a public utility to an Indian tribe;
- Receipts from garbage collection and sewage related services;
- Entertainment or athletic services for general public,
- Receipts of water utility,
- Imposition of criminal and civil fines,
- Hotel and Motels engaging in interstate telecommunication facility for guests, etc.
An entity is not liable to file tax returns for paying Gross Receipts and Compensating Tax Act. A person must register oneself with the respective authorities to pay gross receipts tax in the State of New Mexico. In case you require more clarifications it is better to get your case evaluated by a New Mexico Corporate Attorney.
Nancy on November 17th 2010 in Tax
Tax fraud or evasion is a serious issue. If you know that a certain entity, individual or business, is trying to do these, it is time to take action. You can directly report these activities to IRS (Internal Revenue Service). However, if you want to understand the implications of your actions, it is better to consult a lawyer first.
When you report a tax fraud or evasion, the IRS initiates an investigation to find out the truth. It is of further help if you can furnish proof to support your reporting. If IRS investigators and auditors find the existence of tax fraud/evasion, they attempt to collect the tax, the interest and the penalties from the entity.
As per tax laws, you become eligible for a monetary reward if the collected amount was $2 million or more from the business entity. If it is an individual, his/her gross income needs to be more than $200,000. After the collection of the amount, you may be able to get a reward of 15-30% of the amount collected.
An IRS whistleblower lawyer can help you file a report with the authorities within the deadline. Moreover, he can ascertain that you get the right reward for your action.
Nancy on October 29th 2010 in Tax
The IRS whistleblower program is available since 1867 to the citizens. The law permits the Treasury Department to provide financial support for the information that result in the collection of taxes payable and penalties, from those who violate the tax code. The IRS should use the information to amass the payable taxes and penalties for the whistleblower to get an award.
Public can always give information to the IRS concerning disobedience with the tax law, however the whistleblower law will pay if the information is used to accumulate taxes and penalties from the delinquent.
An analyst from the IRS whistleblower office will decide whether the provided information is valid or not according to the IRS.
The IRS gives awards for the correct information regarding the amounts of at least two million dollars or individuals with a gross income of two hundred thousand dollars or more. For those who have given the information does not meet the requirements, the IRS has an informer program that lids the award @ 15 percent, consistent with the IRS.
The Citizens may proffer information to the IRS exclusive of the benefit of an award but the IRS will keep the identity of the anonymous in every case when possible.
Nancy on August 31st 2010 in Tax
