The False Claims Act is a glimpse of hope for the taxpayers of the U. S. of America who are sick and tired of their taxes being stolen from under their noses by government contractors. It's a vital tool in the hands of American taxpayers with the power to make many billions of bucks of money that goes inside the pockets of the governing body contractors every year return to where it belongs.
Under the Fake Claims Act, those folks who purposively submit or prompt someone else or entity to submit false claims for payment of govt funds will be responsible to pay 3 times of the government's damages and also civil penalties ranging between $5,500 and $11,000 per fake claim.
Tax fraud is however not included in the Fake Claims Act. Section 3729 (e) of the said act states that the Act "does not apply to claims, records, or statements made under the Internal Money Code." As such any crime related to taxes will not come under the Fake Claims Act. For this, there are IRS related laws that will look into the matter and submit penalties for malefactors.
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 may be awarded compensation for his risk and work done. The citizen whistle blowers may be awarded a part of the funds he assists in recovering customarily something between 15% and 25%. After a qui tam suit has been filed, it usually remains under seal in which time the Office of Justice investigates and decides whether to join the action.
Under the Fake Claims Act, those folks who purposively submit or prompt someone else or entity to submit false claims for payment of govt funds will be responsible to pay 3 times of the government's damages and also civil penalties ranging between $5,500 and $11,000 per fake claim.
Tax fraud is however not included in the Fake Claims Act. Section 3729 (e) of the said act states that the Act "does not apply to claims, records, or statements made under the Internal Money Code." As such any crime related to taxes will not come under the Fake Claims Act. For this, there are IRS related laws that will look into the matter and submit penalties for malefactors.
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 may be awarded compensation for his risk and work done. The citizen whistle blowers may be awarded a part of the funds he assists in recovering customarily something between 15% and 25%. After a qui tam suit has been filed, it usually remains under seal in which time the Office of Justice investigates and decides whether to join the action.
About the Author:
Learn the seriousness of the Federal False Claims Act to stop Medicaid fraud. Read on the tract of Karylle Piesse to know why.
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