The Tax Questions Blog

Posts Tagged ‘whistleblower tax fraud’

Question: Can I receive whistleblower protection if I turn my company in for taxes?

Here's the problem though - we all get paid under the table; if I turn my company in, can I be protected or have a reduced amount I would owe from back taxes? The owner always says he will put me on payroll every month and hasn't. Any help would be great. I am totally against this but it has been tough to leave with this economy.

Answer: You owe what you owe. The IRS won't be likely to offer you a reduced amount on your back taxes just because you turned in your employer. They might cut you a break on penalties, but even that isn't very likely.

And when you say "paid under the table", what exactly does that mean? If you are an independent contractor (see link) and you get paid gross (i.e. no tax withholdings), as long as the company files a 1099-misc for you and their other independent contractors, no law has been broken. If that's the case, you may find yourself in a situation where the IRS doesn't do a thing to your employer, and they turn around and demand back taxes, interest and penalties for all of the taxes you neglected to pay.

(AFX UK Focus) 2010-06-17 12:49 TIMELINE-Swiss battle with U.S. tax authorities over UBS

June 17 (Reuters) - Switzerland's parliament backed a Swiss-U.S. tax treaty crucial to the future of UBS AG, ending months of uncertainty over the deal and paving the way for renewed recovery at the Swiss bank. Following is a timeline of major events during the tax row:

Financial Whistleblowing Panel with Jesselyn Radack and Jack Blum