Tax Evasion Qui Tam

How do I report tax evasion from a large a corporation?

The short answer is, you need to file an IRS Form 211, Application for Award for Original Information with the IRS’ Whistleblower Office in Washington, D.C. If you use an attorney to file your report then you also need to file an IRS Form 2848, Power of Attorney and Declaration of Representative. Although not required, it is a best practice to also file a disclosure statement that lays out your allegations and provides an investigative road map for corroborating documents and witnesses.

Is there any downside to reporting tax evasion?

You may end up reporting on yourself. Therefore, it is very important to be aware of any tax liabilities you may have as a result of the tax evasion that you would like to report. It is also possible your whistleblower status may become known even though the IRS will protect your identity as a whistleblower to the fullest extent permitted by the law.

Can you get a tax whistleblower reward only if the IRS collects money from the person/company who committed the tax evasion?

Yes, all awards are paid out of collected back taxes, penalties and interest. The law governing whistleblower rewards is found at Title 21, United States Code, Section 7623.

How much of a reward can an eligible tax whistleblower receive?

Generally, the IRS will pay an award between 15% and 30% of the collected proceeds resulting from administrative or judicial actions (including related actions) or from any settlement in response to an administrative or judicial action. The maximum award percentage decreases to 10% percent if your case is based principally on publicly disclosed information (such as from government audit reports). The Whistleblower Office also can reduce your award if you planned and initiated the actions that led to the underpayment of tax. It should also be noted that not everyone can be an eligible whistleblower and not every instance of tax evasion is subject to the whistleblower law.

What are the monetary limitations for reporting tax evasion?

To qualify for a whistleblower award, the information must:
• Relate to a tax noncompliance matter in which the tax, penalties, interest, additions to tax, and additional amounts in dispute exceed $2,000,000; and
• For individual taxpayers only, relate to a taxpayer whose gross income exceeds $200,000 for at least one of the tax years in question.

How far back in time will the IRS look at allegations of tax evasion?

Ordinarily, in making its assessment the IRS will go back three years from the date after a tax return is due or filed, whichever is later. However, if a taxpayer omits from the gross income stated in the tax return an amount that is in excess of 25 % of the gross income so stated, the timeframe can extend to 6 years after the return was filed. Additionally, there is no statute of limitations where a taxpayer files a false or fraudulent return with the intent of evading taxes.

"Tim McInnis is an amazing attorney. He is intelligent, thorough, ethical, kind and he works very strategically in order to insure the best outcome for his clients. I would trust him with my life. He is not only an excellent attorney, but he is a compassionate person."
Denise A. Romano, January 2004

"Tim McInnis is a superb lawyer for whistleblowers. As both a relator and a lawyer I worked with for more than three and a

On October 14, 2020, medical device maker Merit Medical Systems Inc. (MMSI), of South Jordan, Utah, agreed to pay $18 million to settle allegations the company helped submit false claims to the federal Medicare and TRICARE programs and numerous state Medicaid programs by giving kickbacks to physicians and hospitals to induce the purchase and use of MMSI’s durable medical equipment devices and products. NYC attorney Timothy J. McInnis was a member of the legal team that successfully represented the whistleblower in the case, Charles J. (“CJ”) Wolf, M.D., who was the former Chief Compliance Officer of MMSI.

According to Dr. Wolf’s complaint and the government’s settlement agreement, for over six years MMSI paid kickbacks to physicians, medical practices, and hospitals. The payments were made indirectly under the guise of free advertising assistance, practice development, practice support, and so-called “educational” grants. All of this was intended to induce the healthcare providers to purchase and use MMSI’s products, including EmboSphere devices, which are used for uterine fibroid embolization procedures, and QuadraSphere devices, which are used for other types of embolization procedures. Among other things, MMSI used local advertising campaigns to steer patients to healthcare providers as a reward for past sales and to increase future purchases of MMSI products. Dr. Wolf and the government further alleged that MMSI disregarded numerous internal warnings, including from Dr. Wolf, that MMSI’s sales practices potentially violated the healthcare Anti-Kickback Statute (AKS).

The lawsuit was filed in the federal court in District of New Jersey, where attorney McInnis formerly served as an Assistant U.S. Attorney. The case is captioned United States ex rel. Wolf v. Merit Medical Systems, Inc., No. 2:16-cv-01855-CCC-MF (D.N.J.). Of the $18 million MMSI is paying to settle the case, $15.21 million will be go to the U.S. Treasury, and the remaining $2.79 million will go to the approximately 30 individual states that also joined the lawsuit.

half years and his counsel and perseverance were always spot on. His work was critical to a successful settlement of the case."
Stephen B. Diamond, Esq., August, 2016

"Tim McInnis Law represented my case with the up most professionalism. He communicated with me at every turn of the case ensuring I understood the process as well what was to come next. His patience, comprehension of Qui Tam Law and persistence in getting me the highest amount possible out of the case is unmatched. I wouldn't hesitate to recommend his law firm for a minute."
Don A. Briscoe, September 2016