Does the False Claims Act cover tax fraud?
No. The False Claims Act explicitly excludes tax fraud. Section 3729(e) states that the Act “does not apply to claims, records, or statements made under the Internal Revenue Code.” That said, there is a new IRS Whistleblower law, separate from the Federal False Claims Act, which provides for up to triple damages and whistleblower awards of 15 to 30 percent of the amount recovered. To file under this section of the law, however, the tax, penalties, interest, and additions in dispute must total a sum in excess of $2,000,000.
