Lebau & Neuworth partner attorney Richard Neuworth was recently given the honor of making a presentation on October 5 during a conference hosted by the Maryland State Bar Association, Labor & Employment Section, at the University of Baltimore Law School. Richard spoke on "Taxes and Employment Law, " including the topic of "Civil Damages for Filing a Fraudulant Return."
Specifically, Richard addressed:
- Wages and Possible Causes of Action concerning Taxes;
- Health Insurance and Possible Causes of Action concerning Taxes; and
- Retirement Plans and Possible Causes of Action concerning Taxes.
He noted that under 26 U.S.C. Section 7434, an employer and an individual that prepares a fraudulent information return can be a defendant in a civil tax case. Section 7434 stipulates:
- If any person willfully files a fraudulent information return with respect to payments purported to be made to any other person, such other person may bring a civil action for damages against the person so filing the return.
- In any action brought upon a finding of liability on the part of the defendant , the defendant shall be liable to the plaintiff in an amount equal to the greater of $5,000 or the sum of any actual damages sustained by the plaintiff as a proximate result of the filing of the fraudulent information return.
- The costs of the action , and in the court’s discretion, reasonable attorneys fees.
In his presentation, Richard further examined several relevant topics:
- What constitutes a fraudulent return under Section 7434;
- What type of employers are potential targets of actions under 26 U.S.C. 7434;
- Attorney use of Section 7434;
- Case law interpreting Section 7434;
- Lost Social Security benefits and Unemployment benefits;
- Whistleblower claims under 26 U.S.C. 7623 (a) or (b);
- Actions under Section 7623 (a) and (b);
- Awards under Section 7623;
- Statute of Limitations issues;
- State remedies (Maryland has no qui tam or other whistleblower action for tax fraud);
- Health Insurance and taxes;
- How employers fit the definition of 50 employees;
- Tax penalties for not offering health insurance;
- And more.
View Richard's presentation
For more information, contact Lebau & Neuworth at 888-456-2529 or lebauneuworth.com/contact-us.