New York State and Federal Tax Whistleblowers

New York FCA Tax Whistleblower Provision

A unique provision of the NY State False Claims Act allows individuals to bring qui tam actions against those who knowingly or recklessly underpay NY State taxes.  Whistleblowers can receive between 15% and 30% of the government recovery if successful.

As in federal qui tam actions, a relator (whistleblower) can file an action under seal alleging that a corporation has significantly underpaid its NY State tax obligations.  NYS sales taxes are specifically covered by the NY FCA .

The NY Attorney General's office has been very vigilant in enforcing the NY FCA against entities that knowingly underpay taxes to the State.

In a case setting important legal precedent, the New York Court of Appeals recently held that the plaintiffs can proceed with their False Claims Act case against Sprint for the alleged failure to collect and pay sales taxes on flat-rate calling plans. 

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The IRS Whistleblower Program, as well, provides financial incentives for individuals to report tax evasion, underpayments, tax shelters, and other tax fraud. Based in New York, tax whistleblower attorney James T. Ratner represents clients from across the nation who want to blow the whistle on the corporate tax corruption they can document.

Corporate Tax Fraud

Being a whistleblower for tax fraud or tax underpayment does not mean reporting your brother-in-law that failed to pay his taxes last year. Pursuing small cases like that is not worth your time or the IRS's.

Corporate tax fraud, however, is worth everyone's time and energy to pursue. The IRS can recover millions from the fraudulent practices of a single entity. Corporate abuse of tax laws may include:

  • Abuse of tax shelters
  • Failure to report all revenue
  • Exaggerating losses
  • Concealing earnings from foreign markets
  • Transfer mispricing for goods or services
  • Deferred compensation
  • Backdating stock option grants
  • Money laundering tax fraud

If you have knowledge of corporate tax law abuse involving these or any other circumstances, you can be rewarded financially for your efforts in providing specific and credible information to the IRS. You must have in-depth knowledge of the tax situation that goes beyond mere speculation that a corporate taxpayer has been noncompliant.

Whistleblower Compensation

The IRS awards whistleblowers who provide information that leads to the collection of substantial amounts of taxes. As a whistleblower, you may receive 15 to 30 percent of the amount collected by the IRS if the total amount in dispute exceeds $2 million. This includes taxes, penalties, and interests.

For whistleblowers who do not meet this threshold, the IRS offers the Informant Claims Program, which allows a maximum award of 15 percent of the amount collected by the IRS from the noncompliant taxpayer.

If you have knowledge and the ability to document corporate tax fraud, please contact James T. Ratner or call (845) 688-5222 today to discuss your case with an experienced tax whistleblower attorney, who serves clients throughout New York and the entire United States.

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