Handling Qui Tam/Whistleblower Claims

The law firm of Hertz Schram is available to represent employers and employees in False Claims Act and Internal Revenue Service whistleblower cases.

Our experienced attorneys are bold, forward-thinking and uncommonly creative. We are enthusiastic about digging deep into complex cases, sorting through challenging issues and coming out with the resolution that is right for our client. When you choose us to represent you or your business, you can be assured that we will put forth every effort to get you the results you deserve.

Email or call us at 248-494-4486 to schedule a consultation with a whistleblower claims attorney.

At Hertz Schram, our lawyers are available to represent employees and employers in Detroit and the surrounding parts of southeast Michigan and throughout the United States. For more than three decades, we have provided strong employment law representation.

False Claims Act

The federal False Claims Act and the Whistleblowers' Protection Act in Michigan allow people to bring lawsuits against individuals and companies that they believe committed fraud against the government. These cases are also referred to as whistleblower claims. Often, the person bringing the claim is an employee of the company that the whistleblower claim is against. The qui tam provision of the False Claims Act allows this individual to collect a percentage of the recovery if there is a successful outcome.

These cases typically revolve around government contracts and allegations of fraud or misspending. Often, they relate to:

  • Health care (Medicare and Medicaid)
  • HUD funds (Department of Housing and Urban Development)
  • Military contracts
  • Construction contracts

IRS Whistleblower Claims

In addition to our qui tam whistleblower practice, we represent tax whistleblowers pursuant to the IRS Code's whistleblower provisions. The law is designed to reward whistleblowers who reveal people who cheat on their taxes. The IRS whistleblower provisions provide an excellent tool for our clients to secure large monetary rewards.

IRS whistleblower clients include executives, health care professionals and accountants. Our clients are heroic in their efforts to expose fraud. We are well-suited to help clients because, as qui tam lawyers and tax attorneys, we have the experience to advise our whistleblower clients on these legal claims.

How The Law Works

Under the code, the IRS considers not only the back tax amount, but also interest and penalties. The combination of these could be significant. The law caps informants' rewards at 30 percent of all collected proceeds. The law also allows an above-the-line deduction for attorney's fees and costs paid by and/or on behalf of the individual involved in the submission of information. The IRS has created, per statutory mandate, a whistleblower office to administer the mandatory reward program.

A whistleblower is eligible for an award under the IRS program if the violations of the tax laws involve tax, penalties and interest of over $2 million and if the case involves an individual, only if the individual's gross income exceeds $200,000 for any taxable year subject to such action.

This high threshold eliminates small claims.

The process begins with the submission of IRS Form 211 and requires submission of the informant's information under penalty of perjury. If the ultimate reward is not satisfactory to the client, it can be appealed to the U.S. Tax Court. We are experienced in analysis of the data, preparation of the requisite form and representation of a claimant before the IRS.

Statutory Provisions

If you are considering filing a whistleblower claim, our team can provide you with proper guidance. We will help you initiate the claim and stand by your side throughout the process.

If you are a business faced with one of these claims, we can help. Our attorneys will cut to the heart of the allegations. We are committed to helping you resolve your whistleblower claim and to doing so in a manner that does not impact the future of your business.

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We offer consultations in whistleblower cases. Email or call us at 248-494-4486.