Tax evasion is a serious problem in the U.S. It leads to ethical issues of unfairness within the American society since everybody should pay their fair share of taxes. To fight it, the Internal Revenue Service (IRS) has been increasing the number of audits it conducts over the past few years. Yet, many companies still manage to get around the system. If you've been witnessing tax underpayments within your company, it's your legal duty to expose them.
Hiring a whistle-blower attorney will help maximize the impact of your information:
What are the effects of tax evasion?
These include but aren't limited to:
- Inefficiency of the tax system
- Greater difficulty to balance the federal budget
As mentioned earlier, tax evasion creates competitiveness issues at the business level since it enables certain industry players to have a lower tax liability towards the IRS. Because their tax bill is smaller than what it should be, these companies are able to save a considerable amount of money that they then use to gain more competitive advantage against rivals.
Another direct effect of tax evasion is that it makes it harder for the government to balance its budget. As you might know, the government's only source of revenues is taxes. If public spending is higher than the amount of taxes collected, the balance will be negative, which means that the country will have to borrow money abroad to finance its debt.
Common issues associated with whistleblowing
As a whistleblower, you're dealing with one main obstacle: the ability to thoroughly articulate your claim. This can be difficult to do if you've never been in that situation before or have no real experience whatsoever with corporate tax laws.
If you decide to self-represent and are unable to make your evidence sufficiently compelling, your contribution will hardly be deemed significant, which means that you'll not only get a proportional reward, but the sanctions inflicted on your company will also be meaningless.
If your company has unlimited cash access, you can imagine that it'll quickly bounce back and then explore unethical ways to retaliate against your actions.
Given the huge amount of risks that you've taken to come forward, it's in your best interests to ensure that your information will have the most impact since this will usually mean that you get the highest reward. Working with a whistleblower lawyer will considerably boost your chances of being heard by competent authorities.
To learn more, contact a company like Whistleblower Justice Network, Inc. with your questions.