Getnick Law’s experience in handling tax whistleblower matters includes representing the whistleblower in one of the largest tax fraud settlements under the New York State False Claims Act. In that case, Getnick Law, along with co-counsel, represented a whistleblower in a tax evasion case against a hedge fund and related entities/individuals. The case alleged that the defendants evaded New York State and City taxes by shifting income derived from New York to Alabama to avoid New York’s higher tax rates. As a result of the case, Getnick Law recovered $70 million for the government across two settlements and obtained a 22% award for our client.
Tax Fraud and Tax Evasion
Tax fraud and tax evasion are widespread in the United States. The Internal Revenue Service (“IRS”) has estimated that the United States loses approximately $1 trillion in unpaid taxes every year. A separate IRS study estimated that about 16 percent of all federal taxes go unpaid. Tax fraud and tax evasion can take many different forms on the federal and state level, including but not limited to: false exemptions or deductions; kickbacks; falsified documents; failure to pay tax; unreported income; failure to withhold; payroll tax violations; failure to collect sales tax; improper business deductions; and improper use of tax havens at home and abroad.
Whistleblowers Are Needed to Combat Tax Fraud
Despite its prevalence, tax fraud can often go undetected. Whistleblowers therefore play a crucial role in alerting federal, state, and local governments to instances of tax fraud and tax evasion. One important tool for tax whistleblowers is the IRS Whistleblower Program, which enables people with information about tax fraud to help the government recover money that should have been paid under the tax laws. In addition, many state False Claims Acts – such as New York, Maryland, and the District of Columbia—allow whistleblowers to bring lawsuits based on violations of local tax laws. These laws award a portion of the government’s recovery to the whistleblower.
Tax Fraud Spotlight: Harbinger Capital
Contact Us
If you think you may have information relating to federal or state tax fraud, fill out our contact form or call us at (212) 376-5666 for a free confidential evaluation of your potential case. We represent our whistleblower clients on a contingent fee basis, meaning that an attorney’s fee is paid only if your case is successful.