Tag: False Claims Act

Is Tax Whistleblowing Making a Comeback?

Takeaways:

  • The IRS is modernizing its somewhat anemic whistleblower program.
  • IRS whistleblower awards are finally rebounding.
  • The IRS is aggressively targeting high-net-worth taxpayers and large corporations.
  • Meanwhile, state false claims acts allowing tax-related claims continue to grow in number and have already yielded hundreds of millions of dollars in recoveries.

$40 Million Settlement with Bitcoin Billionaire and Company Shows the D.C. False Claims Act’s New Tax Provision has Sharp Teeth

Takeaways:

  • The Office of the Attorney General for D.C. announced a $40 million settlement with Michael Saylor and MicroStrategy, Inc., marking the largest income tax recovery in D.C. history.
  • The resolution arose from a qui tam lawsuit filed under the D.C. False Claims Act relating to allegations of a longstanding income tax evasion scheme.

UK’s View Across the Pond at U.S. Whistleblower Program Success – Time to Incentivize Tipsters?

Several recent developments may spark a renewed effort to incentivize United Kingdom (UK)-based whistleblowers who frequently provide tips to U.S.-based agencies, such as the Security and Exchange Commission (SEC). The confluence of legislative developments, remarks by the director of the UK’s Serious Fraud Office (SFO), and the British Parliament’s focus on a scandal that rocked the post office may pave the way for new legislation providing incentives for tips to government authorities in the UK.

Whistleblowers – A Powerful Antidote to Private Equity Abuses in Healthcare?

Senate testimony focusing on the impact of the rising presence of private equity (PE) firms’ control of major healthcare providers touched on the “substantial overlap between the risks associated with private equity ownership of healthcare companies and the activities targeted by the False Claims Act (FCA), a federal law that establishes liability for individuals or companies that defraud governmental programs.” See O’Grady Statement.pdf (senate.gov).

3rd Cir. Clarifies FCA Retaliation Standard, Widens Door for Plaintiffs, Leaves Loose End

On November 30, 2022, the United States Court of Appeals for the Third Circuit revived a quality control manager’s FCA retaliation claim in United States ex rel. Ascolese v. Shoemaker Constr. Co., — F.4th —, 2022 WL 17335121 (3d Cir. 2022).

The Third Circuit’s precedential opinion addressed for the first time how Congress’s 2009 and 2010 amendments affect the False Claims Act’s retaliation standard.

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