Tax Fraud Whistleblower

You notice that your employer is cheating the government of taxes, and you don’t think it’s right. The New York State Law False Claims Act and the New York City False Claims Act encourage you to let the government know that your employer is committing tax fraud. Under the New York these False Claims Acts, you are a “relator”, a sort of private detective who provides information of employer tax fraud, and you assist the government as a so-called “qui tam” complainant (someone who acts on his or her own behalf and on behalf of the government) to help catch employer tax cheats. As a whistleblower, you will fighting fraud and corruption. Both New York State and New York City have expanded the rights of whistleblowers because of the important public function they serve.

You are enabled and protected by the New York State False Claims Act if you bring the employer tax cheating to light, provided your employer makes more than $1 million in annual net income and knowingly defrauds the government of more than $350,000 in taxes. Under the New York City Law, the monetary threshold is $25,000. False claim situations include where your employer cheats on taxes. A few examples are when your employer hires workers off the books and does not pay payroll taxes, or doesn’t turn over sales taxes, or does not pay income taxes due. The employer need not need not have knowingly or intentionally violated the tax code. A false tax return submitted in “reckless disregard” of the law is sufficient. An employer who cheats the government on taxes is subject to high civil penalties, up to three times the amount of money that the employer defrauded the government as well as penalties of up to $15,000 per false claim. You, as whistleblower, relator or “qui tam” complainant could be entitled to up to 30 percent of the amount of the fraud, provided you are an “original source” and have not obtained the information of fraudulent conduct from public sources, such as a newspaper. You may also be an “original source” if you have information that is independent from public disclosures and materially adds to them.

You may be afraid to bring the fraud to light, but you should know that the False Claims Acts protect you from employer retaliation. Your employer is not allowed to subject you to discharge, demotion, suspension, threats, harassment, or in any other manner discriminate against you in the terms and conditions of your employment or otherwise harm or penalize you for your complaints of tax fraud. You may also be protected by the law if you take data from your employer to support a tax fraud claim, even if you have signed a confidentiality agreement. If your employer fires you for your complaints that the employer is cheating the government on taxes, you may be entitled to receive double the amount of back pay plus interest, reinstatement and compensation for “special damages” under the False Claims Acts.

In our more than 25 years of experience, we have been helped hundreds of employees who have complained of illegal employer practices, and we will be your lawyer for negotiations or a court suit in New York State so that injustice is stopped.

Contact us online or call us at (212) 949-1001 so that we can review if your New York City employer has subjected you to retaliation when you complain about employer cheating on taxes in violation of the New York State False Claims Act in New York State or New York City.