The Tax Fraud Blog – Qui Tam Attorneys

Bradley Birkenfeld, the former banker who blew the whistle and helped uncover the largest tax fraud scheme to date came forward last month with additional information. Birkenfeld is now claiming that U.S. politicians took advantage of the same Swiss bank account scheme as many of the country’s executives.

Birkenfeld is currently serving a 40-month term in federal prison for his part in the UBS tax evasion scheme. Although he blew the whistle on the scam, federal prosecutors claim that he withheld important information about his own dealings.

From prison, he alleged over the phone that only the bank’s top executives knew about what they called the PEP Office (Politically Exposed Persons) for politicians who were seeking to store undisclosed money away in Swiss bank accounts. Birkenfeld alleges that the New York based “referral desk” that steered many rich Americans to the Swiss branch of UBS also served political clients whose names have not been revealed.

Birkenfeld’s lawyers are currently seeking clemency from President Obama on the ground of Birkenfeld’s importance in uncovering the largest tax evasion scheme in American history.

Michael Craig Cooper, a 55 year old man from Topeka, Kansas, was sentenced to 20 years in prison for Tax Fraud. Cooper is the founder Renaissance (The Tax People) and was sentenced on more than 70 tax fraud counts.

In addition to serving those 20 years, Cooper will also be required to pay $10 million in restitution to the United States Government to cover the extent of his fraudulent activities, as well as a forfeiture of about $75 million.

The case was decided in 2008 when a federal jury found Cooper guilty on 73 counts of tax fraud including mail fraud, wire fraud, money laundering and conspiracy.

As America files taxes, stories of tax fraud, evasion and scams begin to hit the press. Many Americans choose to have their taxes filed by a CPA, and are employed by companies that issue tax paperwork to each employee. Usually, these basic tax-season transactions go as planned. But, if you’re one of the individuals who has seen tax fraud first hand, you should report it today.

If you are having your taxes prepared by a professional who is behaving suspiciously or has tried to sell you on a scam to make more money by filing for losses you don’t have, make sure to report them. If your company has with-held information or asked you to lie to the government on your earnings, you could have a potential case. Our team of experienced attorneys can help you decide what the next steps should be.

As a whistle blower, you will receive a portion of whatever money the U.S. Government gains back in court proceedings. Do your country, fellow citizens and yourself a favor by reporting tax fraud if you suspect it. Berg & Androphy has handled many types of Qui Tam cases, including tax fraud. We’re more than happy to help you assess your potential case and decide what the next steps should be.

If you blow the whistle on fraudulent behavior, you can reap substantial financial rewards.

If you suspect tax fraud, contact Berg & Androphy using our online Qui Tam Form today!

Tough economic times may lead to more tax fraud schemes. That is good news for tax fraud whistleblowers seeking to reap substantial rewards from a law enacted by Congress in 2006. This law requires the IRS Whistleblower Office to pay rewards to individuals who blow the whistle on persons who fail to pay the taxes that they owe the Government. The rewards range from 15% to 30% of the taxes, penalties, and interests collected by the IRS in the case. However, certain conditions must be met first. For example, the whistleblower only receives this monetary reward if more than $2 million is at issue in the case and the IRS actually uses the information provided by the whistleblower.

The process begins with the whistleblower filling out a Form 211, “Application for Award for Original Information,” describing the tax fraud that he or she knows about and attaching documents to support the allegations. All whistleblower claims must be submitted under penalty of perjury; therefore, individuals often seek the assistance of an attorney.

Concerns about retaliation for “snitching” are alleviated by the provisions of this law because the whistleblower’s identity, and even his or her existence, remains a secret and kept out of the public forever. This is quite different than in a qui tam case where the whistleblower’s identity is eventually revealed.

Once the form is submitted, the IRS evaluates the case and decides whether it is worth pursuing. The IRS keeps a tax fraud whistleblower in the dark about the progress of the case until it is closed, which could take years. Even after waiting for the IRS to successfully prosecute the individual who committed the tax fraud, whistleblowers should not expect to see their reward immediately because the IRS does not pay out the reward until the accused has exhausted his appeals and paid the owed taxes.