Editor’s note: Thanks to the False Claims Act, IRS-related fraud is being reported and exposed more than ever due to the brave efforts of whistleblowers – who then get rewarded for their actions. This older blog post is from our Qui Tam archives and is worth viewing and reading again.
A recently passed law in the state of New York will allow IRS whistleblowers to file qui tam lawsuits against the wealthy who cheat on their taxes under the False Claims Act.
Under the qui tam law, whistleblowers who file suits against those who defraud the government can receive a portion of the potential penalty imposed by the state on the defendant. Previously, the law had focused on those who committed Medicare Fraud or Defense Contractor Fraud, but now the scope has been expanded in New York to include those who cheat on their taxes, according to the New York Times.
Qui tam law experts said that the New York law is the first of its kind in the US. Another positive step by NY to stop cheaters, says attorney and partner Joel Androphy. California and other tax states should follow.
The new law targets only wealthy individuals because qui tam lawsuits can only be filed against those defendants who make more $1 million in net income a year. In addition, suits can only be filed when the damage against the government is more than $350,000.
Are you interested in Qui Tam lawsuits or perhaps even searching for Qui Tam attorneys? Berg & Androphy has a practice area in that specific field. Learn more about our Qui Tam expertise here.