Can I bring a qui tam case under the False Claims Act for tax fraud?
The federal False Claims Act contains a specific exclusion for taxes owed to the federal government. Accordingly, the only way to obtain a reward for blowing the whistle on federal tax fraud is to file a claim with the IRS Whistleblower Office. However, some states—most notably New York—do permit private parties to bring lawsuits under state law to recover state taxes. Accordingly, if you have information that a company or individual owes taxes to the State of New York, you may wish to consider bringing a lawsuit under the New York False Claims Act.