The Fake Claims Act is a ray of hope for the taxpayers of the United States of America who are fed up with their taxes being taken from under their noses by central authority contractors. It is a crucial tool in the hands of American taxpayers with the power to make uncountable billions of dollars of money that goes within the pockets of the government contractors each year return to where it belongs.
Under the False Claims Act, those people who intentionally submit or induce another person or entity to submit fake claims for payment of government funds will be liable to pay three times of the government's damages and also civil penalties ranging between $5,500 and $11,000 per false claim.
Tax fraud is however not included in the Fake Claims Act. Section 3729 (e) of the aforementioned act states that the Act "does not apply to claims, records, or statements made under the Internal Revenue Code." As such any crime related to taxes will not come under the Fake Claims Act. For this, there are IRS related laws that may look into the matter and submit penalties for perpetrators.
The Fake Claims Act has provisions for 'qui tam'. The qui tam is a unique feature in the laws of our country. Qui tam allows ordinary voters of the country to sue for the govt if she has evidence of crime in central authority programs and contracts so that the thieved funds can be recovered.
The voter who goes thru the effort of filing a qui tam case can be awarded compensation for his risk and work done. The citizen whistle blowers could be awarded a little of the funds he helps in recovering usually something between 15% and 25 percent. After a qui tam suit has been filed, it generally remains under seal in which time the Department of Justice investigates and decides whether to join the action.
Under the False Claims Act, those people who intentionally submit or induce another person or entity to submit fake claims for payment of government funds will be liable to pay three times of the government's damages and also civil penalties ranging between $5,500 and $11,000 per false claim.
Tax fraud is however not included in the Fake Claims Act. Section 3729 (e) of the aforementioned act states that the Act "does not apply to claims, records, or statements made under the Internal Revenue Code." As such any crime related to taxes will not come under the Fake Claims Act. For this, there are IRS related laws that may look into the matter and submit penalties for perpetrators.
The Fake Claims Act has provisions for 'qui tam'. The qui tam is a unique feature in the laws of our country. Qui tam allows ordinary voters of the country to sue for the govt if she has evidence of crime in central authority programs and contracts so that the thieved funds can be recovered.
The voter who goes thru the effort of filing a qui tam case can be awarded compensation for his risk and work done. The citizen whistle blowers could be awarded a little of the funds he helps in recovering usually something between 15% and 25 percent. After a qui tam suit has been filed, it generally remains under seal in which time the Department of Justice investigates and decides whether to join the action.
About the Author:
Learn the importance of the Federal False Claims Act to stop Medicaid fraud. Read on the piece of Karylle Piesse to find out why.
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