Former Employee Nets $104M in Blowing Whistle re: Tax Issues

istock_whistle.JPGAnd people think taxes are so boring. . .   From where I sit, I see how companies evade taxes (they're not just creative with their tax planning, they're encouraging evasion).   It seems self-serving, but it's unwise when certain companies ignore sound tax counsel and advice.  I know too that those companies' employees see the evasion and how their management may choose to ignore or even assist with the evasion.    

$104 Million. . . Just for Blowing the Whistle on a Tax Evader. . .

Under the IRS Whistleblower Program, the federal agency will reward people (and certainly current and former employees are a great source for) solid information about a non-compliant taxpayer.  In fact, it just awarded $104 million to a former UBS employee who alerted the IRS to his company's tax evasion scheme with respect to its clients.  This six figure award, even when that former UBS employee had served time in prison for the very role he had played in that tax evasion!  Read this for a brief description of the convict who netted the $104 million.

It can't be taken lightly.  Employees will by-pass their own management to complain directly to the IRS about tax issues they suspect, particularly if the prospect of an award so far exceeds any holiday bonus they may get or any class action of which they think they should take part.

 

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Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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