3. Your buddy mentioned that she is thinking about suing under the qui tam law.

Question

3. Your buddy mentioned that she is thinking about suing under the qui tam law. You are not sure what that is.

a. What is a qui tam provision? Explain?

b. Can employees who do not work for the government sue under this provision? Explain?

c. Should the IRS offer a qui tam provision to reward citizens who help the government recover unpaid taxes? How many people would you “rat out” if you knew that you could collect, say, 20% of the unpaid taxes, fines, and penalties collected by the government? Explain?

Explanation / Answer

What is a qui tam provision? Explain?

Qui Tam is the formal written order which is issued by a body with administration or judicial jurisdiction in which a person who assists the prosecution could receive all or part of the penalty imposed to the prosecution. In other words, the Qui Tam provision allows a private individual or also known as “Whistleblower” who is aware of the past or present misconduct committed against the federal government to bring the suit on the behalf of the government.

Can employees who do not work for the government sue under this provision? Explain?

Yes, employees who do not work for the government can be whistleblowers and sue the employer or business or any entity under this provision. Whistleblower refers to any person who discloses the misconduct of his/her employer or business or any entity. A whistleblower can be employees who do not work for the government. When he exposes the fraudulent activities on the government can bring the Qui Tam lawsuit on behalf of the government. He can also receive a part of the recovery recovered by the government as a reward for his fair and ethical act.

Should the IRS offer a qui tam provision to reward citizens who help the government recover unpaid taxes?

Yes, the IRS can offer a Qui Tam provision to reward citizens to help the government to recover unpaid taxes. A reward would motivate any person to reveal any misconduct of the party on the government and hence can help the government to recover the unpaid taxes.

How many people would you “rat out” if you knew that you could collect, say, 20% of the unpaid taxes, fines, and penalties collected by the government? Explain?

Not all would have the guts to be whistleblowers. In the given scenario, there would be approximately just 5% of the people who would “rat out” to help the government collect 20% of the unpaid taxes, fines and penalties. Since the aftermath of a whistleblower have consequences, not everyone would have the courage to inform the government.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.