THE FERRARO LAW FIRM
Contact: David A. Jagolinzer, Esq. The Ferraro Law Firm
305-375-0111
daj@ferrarolaw.com
January 11, 2008 WASHINGTON (DC) Today, The Ferraro Law Firm filed a tax whistleblower submission of more than $600 million to the recently created IRS Whistleblower Office. In the one year that this IRS Whistleblower Office has been in existence, The Ferraro Law Firm has now brought to its attention more than $4 billion of underpayments to the US Government by taxpayers. The informant’s claim filed today comes on the heels of a record breaking $2 billion submission also filed by The Ferraro Law Firm on December 11, 2007. “We know the IRS has already begun to act on previous tips we have given them, and we hope the information we have provided helps bring the parties responsible for cheating on their taxes to justice,” said Founding Partner James Ferraro.
In this most recent submission, a tax whistleblower has come forward to allege that a household-name company has underpaid its U.S. tax liability by more than $600 million by systematically taking aggressive tax positions on its tax returns. “It is not unusual for a company to have potential tax liabilities running in the hundreds of millions,” said Tax Partner Scott Knott. “Unfortunately, many companies, like the company that is the subject of this submission, choose to take many aggressive tax positions, set up a reserve for them on their publicly-filed financial reports, and then hope the IRS misses some of them on audit,” said Tax Partner Greg Lynam. “With this particular company, it has had a pretty good success rate of getting away with many of its tax plays, but it won’t this time,” said Knott.
The Ferraro Law Firm’s tax lawyers have represented some of the world’s largest companies and wealthiest individuals and have learned first-hand about the extent of tax underpayments. Knott and Lynam joined the firm at the end of July from prominent Washington D.C. tax practices to focus on tax whistleblower cases. For more information on The Ferraro Law Firm’s tax group and tax whistleblower submissions, call 1-800-275-3332 or visit www.tax-whistleblower.com.