April 10 is National Report IRS Tax Fraud Day, founded by whistleblower advocate and former Department of Justice Attorney Joel D. Hesch

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The two purposes of National Report IRS Tax Fraud Day are (1) to bring attention to the IRS reward program that pays whistleblowers 15% to 30% of the amount of taxes collected for turning in a tax cheat, and (2) to teach people how to properly report tax fraud to receive a reward.

Report tax fraud and get a reward

National Report IRS Tax Fraud Day is celebrated on April 10. The purpose of National Report IRS Tax Fraud Day is to bring awareness to the amount of tax fraud and to invite the public to obtain a significant whistleblower reward for reporting it.

Nobody likes to pay taxes. The only thing worse than paying taxes is paying someone else's taxes! It is estimated that $1.6 million people cheat on their taxes each year, and that amounts to $270 billion in unpaid taxes each year.* That means honest tax payers are paying $1,000 a year more in taxes just to make up for the amount others are cheating.

The good news is the IRS is offering whistleblower rewards for turning in tax cheats. This national day not only highlights the problem but shows the public how to file for a whistleblower reward.

After working for 15 years in the Department of Justice whistleblower reward office and working on fraud cases totaling $1.5 billion, whistleblower advocate and attorney Joel D. Hesch formed National Report IRS Tax Fraud Day. According to Mr. Hesch, “I formed the National Report IRS Tax Fraud Day to help whistleblowers properly report tax fraud and get a reward in the process. While at DOJ, I’ve seen whistleblowers make a lot of mistakes. Unless they properly report it, there’s no guarantee an investigation will take place. Worse yet, if they don’t scrupulously follow the formula, they won’t receive a reward. I want to change all of that.”

Hesch adds, “National Report IRS Tax Fraud Day puts tax cheats on notice that the public is fed up with tax fraud and is now armed with information on how to report it. Given the large monetary rewards offered by the IRS for reporting tax fraud, there is a strong incentive for whistleblowers to take a stand. The more whistleblowers step forward, the less likely companies or rich people will try to cheat because they will finally realize they can’t get away with it anymore.” After leaving DOJ, Hesch formed his own law firm to exclusively represent whistleblowers nationwide in filing for rewards for reporting tax fraud or fraud against any other government programs.

How to celebrate National Report IRS Tax Fraud Day?

The best way to celebrate National Report IRS Tax Fraud Day is to learn about the IRS Whistleblower Reward Programs (discussed more below) and then contact an experienced whistleblower reward attorney to find out if you have the right type of case eligible for a reward. In addition, tell others of National Report IRS Tax Fraud Day so they can help stamp out tax fraud.

How to report tax fraud and received a monetary reward?

In 1867, the IRS created a reward program that allowed, but did not require the IRS to pay rewards for reporting tax fraud. As one can imagine, the thought of the IRS having sole discretion to pay rewards was not very appealing. Thus, the old tax reward program was seldom used. In 2006, the IRS created a new program that set minimum amounts of rewards and allowed a whistleblower to hire an attorney to file the reward and appeal the amount of a reward. However, the new program only applies to tax fraud over $2 million. Therefore, smaller cases are still governed by the old program. Below explains how to apply for a reward under both programs.

Reporting Tax Fraud Under $2 million

If the amount of tax fraud is under $2 million, a person is governed by the old IRS reward program. Under it, a whistleblower generally does not use a lawyer to contact the IRS. However, the IRS has wide discretion as to what amount of a reward to pay, if any. In addition, a person cannot appeal the denial of a reward or the amount of a reward.

To report tax fraud under $2 million, visit the IRS webpage by clicking https://www.irs.gov/compliance/whistleblower-informant-award.

Reporting Tax Fraud Over $2 million for a Reward

In 2006, the IRS totally revamped its reward program. First, if the tax fraud exceeds $2 million, the IRS must pay at least 15% (and up to 30%) of the amount it recovers based on the allegations. For instance, if a person reports a company underpaying taxes by $10 million, the reward is between $1.5 million and $3 million. There are no caps, so the sky is the limit for reporting large tax cheats. Second, a person can use an attorney to file for the reward. The IRS might take an application more seriously if an experienced attorney investigates and files the application. Most attorneys take these cases on contingency basis, meaning they take a portion of the reward and the person should not have any out of pocket costs. Third, an attorney can appeal the denial of a reward or contest the amount of the reward. Fourth, the name of the whistleblower remains confidential.

To be eligible a person must submit the IRS Form 211 and provide the IRS with detailed information (documents preferred). The person’s lawyer can file the form and information on behalf of the whistleblower.

To read more about the IRS reward programs, visit the IRS website at: https://www.irs.gov/compliance/whistleblower-informant-award.

How to ask The Hesch Firm to file a reward application?

Mr. Hesch and his team of attorneys are be pleased to review potential cases. To learn more about hiring The Hesch Firm, LLC, either visit his website or the National Day website link to National Report IRS Tax Fraud Day, which provides his contact information and criteria for taking cases.

There are other national days celebrating whistleblowers and other government rewards for reporting fraud. See National Report Medicare Fraud Day (September 12) and National Whistleblower Reward Day (February 20).



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