We all know that people, organizations, and businesses cheat on their taxes. Certainly, this does not mean everyone does it, nor does it make it okay. But it can be easy to believe that taxpayer fraud is simply a fact of life and that it is not worthwhile to take steps as a private citizen to do anything about it. The fact of the matter, though, is that, while taxpayer fraud is widespread in the United States, it is far more prevalent in other countries, and many of those countries experience devastating corruption and mismanagement as a result which keeps their economies in shambles while only protecting the criminals who perpetrate the fraud. The federal government takes tax fraud seriously and provides significant financial rewards to the courageous individuals who bring information relating to tax fraud to the government’s attention. Not only can it provide the whistleblower with a well-deserved reward, but it also prevents further damage to our economy. With that in mind, here are five reasons “successful” taxpayer fraud creates even more fraud.
It Emboldens Tax Criminals
Simply put, if you get away with a crime when others know about it and yet they do not anything to stop it, then the message is that tax crime pays. If committing tax fraud helps a business’ bottom line, and its managers find they can get away with it, then what’s to stop them from doing it again?
It Empowers Tax Criminals
Adding to this, paying less taxes rewards tax cheats by providing them with the ill-gotten gains to expand their fraudulent operations. If Company A pays its full rate in taxes while Company B successfully avoids paying half of its taxes, who is rewarded with a competitive advantage in the marketplace? Clearly, Company B will be in a position to gain an economic advantage over Company A and commit even more fraud.
Fraud Creates Economic Struggles For All
When individuals and businesses cheat on their taxes, the victim is not the government but rather all of the honest taxpayers who depend on the services provided by the government. Either one or both of the following occurs to deal with tax fraud: 1) the government must raise the tax rates on honest taxpayers, which only encourages more people to commit tax fraud to avoid their higher tax liability; and 2) fewer government services are available to support programs which help keep the marketplace fair and provide for citizens, thus lowering the amount of prosperity all around, again making fraud an attractive option.
How to Recover a Financial Reward While Protecting Taxpayers
At Kreindler and Associates, we have over 15 years experience working with courageous individuals to help bring harmful tax fraud to light. We will work with you every step of the way to make sure your claims are properly presented, that your confidentiality is protected, and that you receive the recovery you deserve as quickly as possible. If you have evidence of tax fraud or questions about how to report tax improprieties and receive a whistleblower award, contact us today and let Kreindler and Associates help you determine your best course of action.
