How To Report Suspected Tax Fraud in PA?
Though the old saying may indicate that “in this world, nothing can be said to be certain, except death and taxes,” the truth is that there are many who attempt to avoid the latter. Tax cheats impact all of us, as when individuals and businesses fail to pay their fair share, it creates a shortfall in programs and services that we all rely upon. In the state of Pennsylvania, taxes pay for education, health care, transportation, low-income assistance and correction: though it is legal to use strategies to minimize the amount of taxes you owe, evading taxes is a crime. If you are an employee or insider who is aware that a company that owes taxes to the state, you may want to consider reporting tax fraud in PA.
Tax fraud whistleblowers are people who take advantage of whistleblower laws designed to encourage people to come forward and report wrongdoing against the government. These laws provide a powerful incentive for people to notify the government of wrongdoing and fraud in a way that the government can successfully pursue. When a tax fraud whistleblower brings enough information to the government for the government to achieve a recovery, they become entitled to a percentage of the amount that the government is able to get back through either settlement or recovery and penalties through the trial system.
If you suspect tax fraud but aren’t sure that what you’re observing qualifies as a crime, here are some examples:
- Employers who pay wages in cash under the table rather than through the typical payroll process which withholds personal income tax on wages and more.
- Failure of in- or out-of-state vendors to register to collect sales tax on goods sold in the state or taxable services provided in the state.
A recent Pennsylvania Supreme Court decision made clear that those who choose to be tax fraud whistleblowers – or whistleblowers reporting any type of fraud affecting the state – will be entitled to both economic damages and noneconomic damages, but to ensure that you get the compensation that you deserve for coming forward, you need to make sure that the process is done correctly. For information on how we can help you move forward correctly, contact our Philadelphia law firm today to set up an appointment.