Tax Fraud Alerts
  • May 18, 2020
  • admin
  • 0

According to a survey, the gap between the tax collected by the IRS and what it should rightfully collect is around $450 billion. It is a huge problem for the IRS knows and even threats of penalties and IRS tax investigation are not always enough to dissuade taxpayers from defaulting or committing tax frauds. To try and overcome this problem, the IRS uses a number of investigative techniques to identify tax evaders. If you are under any kind of IRS tax investigation, it is advisable to connect with a tax resolution attorney or IRS tax lawyer. Nick Nemeth can help you get the best resolution to all tax issues, should you qualify. Continuing on the topic, in this blog post, we present three common ways the IRS discovers tax frauds. Take a look.

Related Blog: Tax Problems that Call for an Experienced IRS Attorney

1. Computer Data Analysis

Employers and third parties send information to the IRS which is recorded in the Information Returns Processing (IRP) system. The IRS matches the information from individuals to the records stored in its system and filters out tax evaders. While some omissions are plain mistakes, most of those identified are people that are not paying their taxes. It is believed that the IRS also uses the information from credit card transactions and medical records to find tax frauds.

2. Social Media Footprints

The use of social media by the IRS is just conjecture as the government agency never discloses much about the issue. Social media is used to gain insights into the lifestyles of individuals that are under IRS investigations. Keep in mind that under the Electronic Communications Privacy Act, the federal agency can look into your personal emails when conducting an investigation without the need for a warrant.

Related Blog: Who Should File a Tax Return: Explained by Nick Nemeth

3. Whistle-Blowers

A whistle-blower is someone that gives valuable information to the IRS about tax fraud. They can be anyone such as a former spouse or a disgruntled employee. They help identify the fraud and in carrying out proper IRS tax investigation usually in anticipation of some reward. The IRS pays a mandatory reward of 15 to 30% of the amount recovered from whistleblowing if the disputed amount is more than 2 million.

Wrap Up

If you are the subject of an IRS investigation, you need to consult an experienced tax attorney immediately. The Law Offices of Nick Nemeth, a team of professional Dallas tax lawyers with a history expertly representing and advising taxpayers facing IRS investigations. Whatever your IRS tax problems, the lawyers at the Law Offices of Nick Nemeth, PPLC, in Dallas will help you understand your situation and get the best resolution. Feel free to call (972) 426-2553 or fill out our contact form and we will take it from there.

Please follow and like us:

What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
Quick Inquiry


    Enter the text you see above