Baum Hedlund Aristei & Goldman changed its name to Wisner Baum in January 2023.

Tax Fraud

Tax Fraud Lawyers

Representing Whistleblowers in IRS and Tax Fraud Claims

Tax fraud by individuals and businesses has been estimated to cost the United States government over $450 billion annually. Tax evasion or fraud can be carried out by filing false or deceptive tax returns, hiding assets and income in offshore bank accounts, concealing business ownership or other financial activities, or through outright identify theft.

Cracking down on tax fraud is a simple matter of fairness to the vast majority of taxpayers who regularly pay the government what they owe. Tax whistleblowers are a vital weapon in the fight against tax fraud. Individuals who bring information to the Internal Revenue Service (IRS) relating to tax fraud or tax underpayments exceeding $2 million may also be eligible to receive a reward if their information leads to a successful enforcement action.

Based in California, our legal team at Wisner Baumcan represent tax fraud and IRS whistleblowers nationwide. Call (855) 948-5098 for a free consultation.

About IRS Whistleblowers

IRS whistleblowers play an important role in exposing corporate tax fraud, and the Tax Relief and Health Care Act offers IRS whistleblowers significant rewards for bringing original information concerning tax fraud to the government’s attention.

Under the Tax Relief and Health Care Act, tax fraud whistleblowers may be entitled to receive between 15 and 30 percent of the amount recovered by the IRS in a successful enforcement action, as long as the tax, penalties, interest, and additional amounts in dispute exceed $2 million. If the tax, penalty and interest is less than $2,000.000 the reward will be limited to a maximum of 15% and will be at the discretion of the IRS.

The IRS whistleblower program gives any individual with original information concerning large-scale tax underpayments, fraud, or evasion—including accounting errors—significant financial incentive to file a whistleblower lawsuit against the perpetrator(s). Since 2007, whistleblowers have helped the IRS collect billions in lost revenue, and whistleblowers have been rewarded hundreds of millions for their assistance.

What the IRS Wants From Tax Whistleblowers

  • “Specific and credible information concerning the person(s) that the claimant believes have failed to comply with tax laws and which will lead to the collection of unpaid taxes;
  • “Documentation to substantiate the claim (e.g., financial data; the location of bank accounts, assets, books, and records; transaction documents or analyses relevant to the claim);
  • “An explanation of how the information that forms the basis of the claim came to the attention of the claimant, including the date(s) on which this information was acquired, and a complete description of the claimant’s present or former relationship (if any)” to the person or persons they believe have violated tax laws.

Tax whistleblowers who are aware of supporting documents, but not able to get them, are instructed to describe these documents and identify their location to the best of their ability.

Types of Tax Fraud

Below are some common types of tax fraud:

  • Hiding Income Offshore – Occurs when individuals or businesses attempt to hide income in offshore banks, brokerage firms or by using nominee entities in an attempt to limit their tax liability. Those who attempt this scheme typically do so through the use of offshore credit or debit cards, foreign trusts, employee-leasing schemes, private annuities or wire transfers. In one landmark case, Swiss banking group UBS agreed to resolve criminal charges that it conspired to defraud the United States by promoting tax evasion through secret offshore accounts. The bank was forced to pay a fine of $780 million and turn over the names of over 4,000 account holders. The IRS whistleblower who exposed the tax evasion scheme was awarded $104 million.
  • Filing False or Misleading Returns – Occurs when individuals or businesses fraudulently file returns in order to reduce their tax bill or claim refunds or tax credits they are not entitled to receive. False tax returns may also be filed in order to cover up other illegal activities. In 2005, KMPG, a firm that provides audit, tax, and advisory services, agreed to pay $456 million in fines, restitution and penalties to settle charges that it designed, marketed and implemented fraudulent tax shelters. The defendants allegedly filed false tax returns in support of the scheme.
  • Transfer Pricing – Transfer pricing schemes involve multinational corporations doing business in several countries attempting to avoid taxes by making it appear that its operations in a high-taxed country produced relatively little profit, while its operations in a low-taxed country did well. The practice is widespread and the IRS has an entire team devoted to pursuing transfer pricing fraud. The GlaxoSmithKline scandal in 2006 is a good example of a transfer pricing scheme. GSK paid $3.4 billion to settle IRS charges that it engaged in transfer pricing by assigning too little of its worldwide drug sales to its U.S. subsidiary. In 2011, Western Union paid $1.2 billion to settle transfer pricing charges.
  • Abuse of Charitable Organizations and/or Deductions – Occurs when individuals or businesses highly overvalue or overstate donations to a charitable organization in order to fraudulently reduce their taxable income.
  • Disguising Business Ownership or Financial Activity – Occurs when corporations or businesses operate using a third party to disguise the true owners. These third parties can be used to underreport assets, create fictitious deductions, and launder money or a variety of other financial crimes.
  • Misstating Wages – Occurs when businesses file false statements about wages or income in order to limit the amount of taxes owed at the end of a fiscal year.
  • Abuse of “Independent Contractor” Rules for Actual Employees – Occurs when employees are designated as contractors and given 1099s at the end of the year, therefore avoiding the employer’s share of taxes. It has been estimated that employers misclassify millions of workers as independent contractors every year in order to avoid the payment of employment taxes.

Whistleblower Attorneys for Tax Fraud Claims

If you are thinking about becoming a tax fraud whistleblower, it is in your best interest to hire an attorney with experience in preparing and filing these types of cases. Thousands of tax whistleblower claims get filed each year, but some are rejected because they are not properly prepared and submitted.

The IRS whistleblower attorneys at Wisner Baum work with you to evaluate and prepare all of the evidence necessary for your claim. As your advocate, our attorneys work with the IRS and provide whatever additional assistance and evidence the government requests in order to present the best possible case.

Contact us today at (855) 948-5098 to start exploring your legal options. Located in Los Angeles, we take cases across the U.S.

Contact Us Today

No Fees Unless We Win
  • Please enter your first name.
  • Please enter your last name.
  • +1
    Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please enter your city.
  • Please make a selection.
  • Please make a selection.
  • Please make a selection.
  • Please enter a message.
  • Whistleblower Settlement $18 Million

    $18 million settlement for Boeing government overcharging on aircraft maintenance

  • Whistleblower Settlement $8.5 Million
  • Whistleblower Settlement $8.5 Million
  • Whistleblower Settlement $6.5 Million
  • Whistleblower Settlement $1.2 Million
  • Whistleblower Settlement $1.3 Million
  • Best Law Firms 2023
    Best Law Firms 2023

    A ranking in The U.S. News – Best Lawyers® “Best Law Firms” is widely regarded by both client and legal professionals as a significant honor. It is considered the most reliable, unbiased source of legal referrals anywhere.

  • The Truck Safety Coalition
    The Truck Safety Coalition

    Wisner Baum is proud to be a sponsor of The Truck Safety Coalition, a a group of caring individuals dedicated to reducing the number of deaths and injuries caused by truck-related crashes. Our support enables them to help families and save lives.

  • California Powerhouse
    California Powerhouse

    Law360 recognizes law firms that have a strong regional presence, working on important matters within their home state. “[Wisner Baum] possesses a David v. Goliath-sized slingshot while seeking justice for everyday citizens it believes were harmed or killed through corporate wrongdoing.”

  • Elite Trial Lawyers
    Elite Trial Lawyers

    NLJ and American Lawyer Media honor law firms and attorneys as Elite Trial Lawyers for their cutting-edge legal work on behalf of plaintiffs in practice areas ranging from mass torts to securities litigation.

  • Listed in Best Lawyers
    Listed in Best Lawyers

    Best Lawyers is the oldest and most respected peer-review publication in the legal profession. A listing in Best Lawyers is widely regarded by both clients and legal professionals as a significant honor, conferred on a lawyer by his or her peers.

  • AV Top Ranked Law Firm
    AV Top Ranked Law Firm

    Less than one-half of one percent of firms across the nation have achieved this ranking. A firm must have a high percentage of lawyers who have achieved the prestigious AV® Preeminent rating by Martindale-Hubbell®.

  • Verdicts Hall of Fame
    Verdicts Hall of Fame

    The National Law Journal inducted Wisner Baum into the Verdicts Hall of Fame for obtaining the $2 billion landmark verdict in the Roundup cancer case of Pilliod et al. v. Monsanto. The verdict was #1 in California and #2 in the U.S. in 2019 and is #9 in American history.

  • Super Lawyers
    Super Lawyers

    Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement.

  • National Trial Lawyers Top 100
    National Trial Lawyers Top 100

    The National Trial Lawyers Top 100 recognized the law firms of Wisner Baum, the Miller Firm and Audet & Partners with the 2019 Trial Team of the Year award (in the Mass Torts category) for their work in the groundbreaking case of Dewayne “Lee” Johnson v. Monsanto Company.

  • AV Preeminent Peer Review Rated
    AV Preeminent Peer Review Rated

    An AV® rating reflects an attorney who has reached the heights of professional excellence. The rating signifies the highest legal ability, and very high adherence to professional standards of conduct, ethics, reliability, and diligence.

  • Avvo 10.0 Rating
    Avvo 10.0 Rating

    Wisner Baum is proud to have all of its lawyers listed in Avvo, a legal directory connecting people in need of legal services with lawyers and connecting lawyers to lawyers. Eight of our attorneys have earned a 10.0 perfect rating with Avvo.

  • Top Jury Verdict in <br> CA and USA
    Top Jury Verdict in
    CA and USA ranks our $2 billion verdict in Pilliod et al. v. Monsanto as the biggest verdict in California and the second largest verdict in the U.S. in 2019. It is the ninth largest verdict in U.S. history.

  • Lawdragon 500 Leading Plaintiff Consumer Lawyers
    Lawdragon 500 Leading Plaintiff Consumer Lawyers

    Published annually, the Lawdragon 500 Leading Plaintiff Consumer Lawyers list recognizes the “best of the best” in this area of the law through nominations, research, and review by a board of their peers.

  • Product Liability Practice Group of the Year
    Product Liability Practice Group of the Year

    In 2020, Law360 honored the law firms ”behind the litigation wins and major deals that resonated throughout the legal industry.” It recognized our success in several landmark cases.

  • Top Personal Injury Jury Verdict in California
    Top Personal Injury Jury Verdict in California

    In 2018, our $289 million Johnson v. Monsanto verdict was the largest personal injury verdict in California. also ranked it #2 among all verdicts in California and #10 in the nation.

  • Bar Register of Preeminent Lawyers
    Bar Register of Preeminent Lawyers

    The Bar Register is the definitive guide to the most distinguished law firms in America. It includes only those select law practices that have earned the highest rating in the Martindale-Hubbell Law Directory and have been designated by their colleagues as preeminent in their field.


Firm Reviews

What Our Clients Are Saying
  • I Can’t Imagine a Better Law Firm

    “Multiple lawyers recommended Wisner Baum to me and I have been consistently impressed with the quality of their work.”

    - Best Law Firms Survey
  • They Are About Changing the Systems...

    “Wisner Baum are not only amazing attorneys but more importantly, they are activists. They are about changing the systems which got us into trouble in the first place. They understand their role in the process of making change.”

    - Kim Witczak
  • Top Legal Minds in the Country

    “The Wisner Baum firm has some of the top legal minds in the country; they are driven, determined, trustworthy, ethical and passionate.”

    - From Best Lawyers® Best Law Firms
  • Diligent & Professional Representation

    “Thanks to your efforts I was able to recover from a tragic experience and turn my life around for the best.”

    - W.T.
  • Our Best Interest Was Always Number One on Your List

    “A special thank you to your Spanish-speaking staff for the extra effort put into this case. The language barrier was never a problem, and we are so very thankful to them. Your name holds much respect in our family.”

    - G.C. & C.C