Nobody likes paying taxes, but most of us follow the law and pay what we owe. Unfortunately, many companies and individuals fraudulently avoid paying their fair share. When people and companies don’t pay the taxes they owe, it leaves less money for essential government services and places more of a burden on the rest of us.
Under the IRS Whistleblower Program, a whistleblower can report federal tax fraud and receive an award of 15% to 30% of proceeds collected if the whistleblower’s information leads to a successful enforcement action. The IRS Whistleblower Office has collected over $5.7 billion in unpaid taxes and awarded nearly $1 billion to whistleblowers.
However, most states lack similar whistleblower provisions. Only a few jurisdictions permit whistleblowers to report state tax fraud: the District of Columbia, Illinois, Indiana, New York, and Rhode Island.
Fortunately for law-abiding citizens—and unfortunately for tax cheats—Maryland has now added a similar statute to the books. The new law, which takes effect October 1, 2021, permits whistleblowers to report the underpayment of taxes against companies with over $2 million in annual taxable income and individuals with over $250,000 in annual taxable income, as long as the unpaid tax bill totals at least $250,000.
According to Baron & Budd attorney Noah Rich, “it’s very encouraging to see states continue to enact laws that reward whistleblowers for reporting tax fraud. Thanks to whistleblowers, the states with these laws on the books have recovered hundreds of millions of dollars—money that can now pay for vital infrastructure and services.”
Maryland’s new law provides a strong incentive for whistleblowers to report tax fraud. A whistleblower is entitled to receive 15% to 30% of the amount the government recovers in a successful enforcement action. If you have evidence that a person or company is committing tax fraud, an experienced whistleblower attorney can help you file an effective complaint and maximize your share of any recovery.
With more than 30 years of experience, the attorneys on Baron & Budd’s whistleblower representation team have represented dozens of clients in government fraud cases returning over $5.4 billion to federal and state agencies, with whistleblower recovery shares as high as 49%. They are ready to help if you have evidence of tax fraud.
Please call (866) 401-5971 or complete our contact form if you would like more information. For more information, see What You Need to Know About Becoming a Whistleblower. Please understand that contacting us does not mean that you have established an attorney-client relationship with Baron & Budd, P.C.