IRS Whistleblower and Tax Qui Tam Lawsuit

In 2006, Congress enacted a new tax whistleblower law, known as the False Claims Act.

This new tax fraud law provides significant compensation to individuals who furnish the IRS with information about tax fraud or tax evasion:

  • Whistleblowers are eligible to receive between fifteen percent (15%) and thirty percent (30%) of the entire amount collected by the IRS when that person provides information about tax fraud to the IRS.
  • Remember to hurry! The first whistleblower to provide the information gets paid. When multiple parties disclose the same information, the total reward from the qui tam lawsuit may be reduced or denied.
  • The information provided must indicate a fraud or tax underpayments in excess of two million dollars ($2,000,000). In computing the amount, the government counts the unpaid tax, any penalty on that tax, and the interest.
  • A whistleblower dissatisfied with the reward amount may appeal the amount paid to them to the United States Tax Court.
  • Whistleblower(s) who initiated or planned the tax fraud may find themselves denied any compensation. The IRS may also reduce the total compensation paid if an individual participated in the fraud.
  • See Also: IRS Whistleblower Rewards

 

 

Under prior and existing laws, the whistleblower’s identity remains confidential.

You do not have to decide whether to blow the whistle on IRS fraud and corruption alone. Taking on a qui tam lawsuit is a difficult proposition, but when done properly, it can lead to a substantial and rightful reward. If you or someone you know has knowledge about fraudulent claims filed with the IRS, contact the experienced Maryland tax attorneys at JDKatz to discuss your legal options with IRS fraud reporting.

Request a free consultation by filling out the form on above, or call us at (301) 605-1243.