Tax Relief and Health Care Act of 2006
In order to reduce the overwhelming burden of fraudulent behaviors committed against the federal government, Congress passed the Tax Relief and Health Care Act in 2006. While this bill addressed a large number of concerns, it also increased the penalties that could be pursued against those who have committed tax fraud. As a result of increasing these punitive measures, the law also increased the importance of whistleblower action in tax fraud cases.
If you have information that could help the government pursue a case of tax fraud, contact the qui tam lawyers of Tycko & Zavareei, LLP, at 202-973-0900 today.
Understanding the Law
While qui tam lawsuits generally produce rewards for whistleblowers relative to the sum of the fraud, the Tax Relief and Health Care Act of 2006 increased this overall amount for qui tam suits brought against parties found to have violated IRS standards. Accordingly, the rewards related to bringing forward a qui tam suit remain a fraction of the original fraudulent sum, but work along these modified lines:
- A suit against a group or corporation must exceed fraud of $2 million
- A suit against an individual must exceed a personal income of $200,000
- The minimum reward amount equals 15 percent
- The maximum reward amount equals 30 percent
While these maximums and minimums apply to the majority of situations, they are not necessarily absolute figures. In certain situations, depending on the quality of the information or how it is used in court, the figures may be different.
Contact Us
Qui tam litigation is an important method to reclaim taxpayer money and protect the federal government from criminal activity. For more information regarding whistleblower protections and benefits, contact the qui tam attorneys of Tycko & Zavareei, LLP, by calling 202-973-0900 today.
