Corporate Tax Violations

After events such as the Enron scandal the IRS convened and gave birth to a bounty hunter of an office. They aptly deemed it The Whistleblower Office. The subdivision was created from the Tax Relief and Health Care Act of 2006. In the sake of brevity, it basically processes tips from individuals would are seeking to rat out their workplaces shady bookkeeping for a 15% to 30% of the total proceeds. The “award” is paid if the IRS moves on the information. There are stipulations: the amount in question needs to be over $2,000,000 and if it’s an individual who conducting the unlawful tax practices, they need to make at least $200,000 in gross.

For those that were intrigued, that’s a minimum of $300,000 in “award” money. According to Forbes, “In 2008, $65 billion in unreported income was alleged by tipsters”. The tax system really must be broke if you can coax individuals to turn in friends, family, and employers for fudging their documents; or that people would be so able and willing to commit such fraud for that matter. By the way ambiguity isn’t necessarily guaranteed for tipsters. Home businesses should also know their business taxes to avoid potential issues.