When the divorcing husband admitted in his affidavit that he had not paid taxes, the judge in Hashimoto v. De La Rosa, 2004 slip op. 51081(Sup. Ct. N.Y. County, June 23, 2004) reported him to the I.R.S. In Beth M. v. Joseph M., 2006 slip op. 51490 (Sup. Ct. Nassau County, July 25, 2006), the judge similarly reported a husband who testified during divorce / child support proceedings that he had not filed tax returns for the years 1997 through 2001 and other times. The admissions made by these two divorcing spouses could possibly have led to tax fraud charges pursuant to 26 U.S.C. § 7201.
Like the presiding judges in Beth M. and Hashimoto, parties to divorce or child support cases sometimes report tax fraud to the I.R.S. Some tip the I.R.S. by sending an Information Referral (Form 3949-A) or letter as mentioned by “How Do You Report Suspected Tax Fraud Activity?” No matter how one ultimately communicates with the I.R.S., it is important to first consider eligibility for the Whistleblower or other reward programs. The kinds of activities typically reported to the IRS include: hiding or transferring assets or income; keeping multiple sets of books; claiming personal expenses as business ones; etc.
In some cases where there has been a tax fraud and spouses have filed joint tax returns, it may also be advisable to seek innocent spouse tax relief as more fully described by I.R.S. Publication 971. To examine this very issue, (and to ensure that providing a particular tip to the IRS is appropriate), a party to a divorce or child support case should always seek the advise of a knowledgeable attorney.
Copyright 2007-2015 Fred L. Abrams