THE FERRARO LAW FIRM
Contact: David A. Jagolinzer, Esq. The Ferraro Law Firm 305-375-0111 daj@ferrarolaw.com
For Immediate Release
WASHINGTON (DC) Today, The Ferraro Law Firm filed a new record tax whistleblower submission of more than $4.4 billion to the IRS Whistleblower Office. The Ferraro Law Firm has now brought to the U.S. government’s attention dozens of taxpayers who have collectively underpaid their taxes by more than $10 billion. The previous known record submission of $2 billion was also filed by the firm on December 11, 2007. The IRS established the Whistleblower Office in 2007 to collect information about tax fraud, evasion and underpayments and must, by law, pay a reward of up to 30 percent of the amount collected to the tax whistleblower.
In this most recent submission, a tax whistleblower has reported that a Fortune 500 company has underpaid its U.S. tax liability by more than $4.4 billion, over a short period of time, by engaging in tax fraud. “In our experience, $4.4 billion is just the tip of the iceberg when it comes to corporate tax underpayments,” said Tax Partner Scott Knott. “Given staffing levels at the IRS, many companies take dozens of aggressive positions including fraud and evasion of tax figuring the IRS cannot find them all. For many companies, the tax department is one of the most profitable business units,” said Tax Partner Greg Lynam. “This particular multi-national company started with smaller tax fraud and evasion plays and became emboldened after it continually got away with it. After today, that will change,” said Knott.
Congress wanted to attract individuals with high-quality inside information about large tax underpayments, so it significantly increased the incentives to come forward and report corporate tax fraud to the IRS. 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, 2007, 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 http://www.tax-whistleblower.com.