Tagged Articles

tax fraud 7 articles

U.S. Appeals Court Says Vanguard Whistleblower Lawsuit Should Be Heard

A former in-house tax lawyer for investment giant Vanguard Group should have his whistleblower retaliation complaint heard, the U.S. Third Circuit Court of Appeals has ruled. The appeals court ruled last week that the U.S. District Court in Philadelphia should reconsider David Danon’s lawsuit against his former employer alleging the mutual-fund behemoth fired him for voicing his objections over federal and state income tax underpayments. Mr. Danon says Vanguard’s alleged underpayments amounted to billions of dollars. Mr. Danon claims Vanguard violated the whistleblower protections under the Dodd-Frank Act of 2010 when it wrongfully terminated him. Writing for the three-judge panel, ... Read More

Alabama company Pays New York State $40 Million To Settle False Claims Act Tax Fraud Case

An Alabama investment group and some of its top executives have agreed to pay New York State $40 million to settle a New York False Claims Act lawsuit brought by a whistleblower who claimed the company committed tax fraud, cheating New York out of millions of dollars in taxes. The settlement is the largest-ever recovery of its kind since New York’s False Claims Act law was expanded to include tax claims. It resolves allegations that Birmingham-based Harbert Management Corporation, sponsor of Harbinger Capital Partners, a $26 billion New York City-based hedge fund, failed to pay millions in state taxes on ... Read More

IRS Whistleblower Program Shows Signs of Dramatic Improvement in 2016

The IRS Whistleblower Office has never enjoyed the reputation of being an efficient, effective, and productive operation, but its 2016 Annual Report to Congress shows some encouraging signs that things may be getting more whistleblower friendly in the nation’s least-loved federal agency. According to the report, the IRS’s Whistleblower Office paid out 418 awards to whistleblowers last year. That means fiscal year 2016 ended with a 322 percent increase in the number of whistleblower awards from 2015, in which only 99 awards were paid out. The number of claims also went up 6.4 percent since 2015 and the number of ... Read More

Pillow Manufacturer Settles Tax Fraud Case With New York, Whistleblower

Lawyers for a whistleblower who sued a pillow manufacturer on behalf of the state of New York over alleged tax fraud said Monday the parties have reached a settlement for more than $1 million. My Pillow Inc., a Minnesota company, will pay the state of New York $1.109 million to resolve the complaint, filed by a whistleblower under the New York False Claims Act in New York Supreme Court, New York County. According to the firm, the settlement resolves allegations that My Pillow knowingly failed to collect and remit New York use taxes on Internet and telephone sales to in-state ... Read More

TaxAct confirms data breach; more than 9,000 customer accounts suspended

With tax season ramping up, many Americans are using various means of filing, whether it be with a tax specialist or tax preparation software. TaxAct, one of the many tax preparation software developers, announced this week that it suffered a data breach sometime between Nov. 10 and Dec. 4, 2015, leading to the suspension of more than 9,000 customer accounts. While the data breach occurred at an inconvenient time for people, TaxAct did confirm that the incident only affected a small percentage of its customer base. “TaxAct recently suspended a small number of accounts—less than 0.25 percent (less than ¼ ... Read More

Multimillion dollar tax refund fraud includes former IRS employee among those charged

A former Internal Revenue Service (IRS) employee is among those charged with filing false claims in a multimillion dollar tax refund fraud conspiracy. Others charged include an employee of the U.S. Food & Drug Administration (FDA) and a former New York City Corrections officer. The U.S. Department of Justice (DOJ) and IRS announced the indictments Jan. 16. The DOJ says Rodney Chestnut, a retired New York City Department of Corrections officer; Clive Henry, a former IRS employee whose job it was to prepare tax returns; and Nafeesah Hines, a former FDA employee, have been indicted on 20 counts of filing ... Read More

Jailed whistleblower received record $140-million award in tax evasion case

The Internal Revenue Service (IRS) awarded a record $104 million to a whistleblower for his role in helping to expose an enormous tax fraud scheme orchestrated by Swiss banking giant UBS AG. The award, the largest ever paid by the federal government to an individual whistleblower, was given to Bradley Birkenfield, a UBS AG banker who was also thrown in prison to serve a 40-month sentence as part of the same case. The IRS confirmed last week that Mr. Birkenfield will receive the record award for his part in a federal investigation that resulted in UBS being fined $780 million ... Read More