No. The FCA generally excludes most tax fraud from its scope. However, it can apply to fraudulent claims tied to federally funded tax programs or benefits.
Se Habla Espanol
Tax Fraud
Understanding Tax Fraud
While most traditional tax fraud matters fall under the jurisdiction of the Internal Revenue Service (IRS) and are excluded from the False Claims Act (FCA), certain tax‑related misconduct can still lead to FCA liability. These cases generally involve fraudulent claims tied to federal programs, federally funded tax credits, or improper claims for payment or benefits that fall within the FCA’s scope.
In addition, whistleblowers may pursue tax fraud claims through the IRS Whistleblower Program, which can offer substantial rewards for credible, original information leading to a recovery of unpaid taxes, penalties, and interest.
Examples of FCA Liability
While uncommon, certain scenarios may result in FCA liability:
- A business falsely certifies eligibility for an alternative energy tax credit administered through a federal grant program.
- A contractor misrepresents tax‑exempt status to win a federal procurement contract.
- A corporation inflates payroll or other expenses to qualify for pandemic‑related tax credits linked to federal funding.
The False Claims Act and Tax Fraud
The FCA provides a civil enforcement mechanism when false claims for payment involve federally funded tax‑related programs. In cases outside FCA jurisdiction, the IRS Whistleblower Program is the appropriate reporting avenue.
Under the IRS Whistleblower Program, qualifying whistleblowers may receive 15–30% of the collected proceeds when their information leads to a successful enforcement action.
Under the IRS Whistleblower Program, qualifying whistleblowers may receive 15–30% of the collected proceeds when their information leads to a successful enforcement action.
Whistleblower Protections
The FCA and IRS whistleblower statutes prohibit retaliation against individuals who lawfully report fraud or assist in an investigation. Retaliation can include termination, demotion, reduced pay, harassment, or blacklisting. Remedies may include:
- Reinstatement
- Double back pay plus interest
- Compensation for emotional distress (less common)
Reporting Tax‑Related Fraud
- Determine whether the matter falls within the FCA, the IRS Whistleblower Program, or both.
- Preserve relevant evidence, including tax filings, contracts, and communications.
- Consult experienced whistleblower counsel to evaluate the claim and select the proper reporting path.
- File confidentially to initiate a government review or investigation.
Common Types of Tax Fraud
False Claims for Federal Tax Credit Programs
Misrepresenting eligibility for tax credits funded or backed by federal programs, such as renewable energy tax incentives.
Fraud in Federally Funded Subsidy Programs
Providing false information to receive government subsidies or grants that have a tax‑related reimbursement component.
Misrepresentation of Tax Status in Federal Contracting
Claiming improper tax‑exempt status to gain a competitive advantage in bidding for federal contracts.
Overstating Losses or Expenses in Federal Program Claims
Inflating losses or expenses to qualify for greater benefits or relief under federally funded programs tied to tax incentives.
Frequently Asked Questions About Tax Fraud
Does the False Claims Act cover all tax fraud?
What is the IRS Whistleblower Program?
A federal program that allows individuals to report significant tax underpayments or tax fraud directly to the IRS in exchange for a potential monetary award.
How much can whistleblowers receive for reporting tax fraud?
Under the IRS Whistleblower Program, successful whistleblowers can receive 15–30% of the collected proceeds. FCA‑eligible cases offer similar potential recovery percentages.
Can tax‑related fraud occur in federal contracting?
Yes. Misrepresenting tax status or improperly claiming tax exemptions to gain an advantage in government contracting may trigger FCA liability.
What should I do if I suspect tax fraud involving federal programs?
Document the misconduct, preserve all relevant evidence, and speak with a whistleblower attorney to determine whether the FCA, IRS Whistleblower Program, or both apply.
Are you ready to blow the whistle
Over 1 BILLION Recovered
Our team is equipped and prepared for complicated, high-stakes cases in all areas of business and civil litigation. We continuously strive to achieve the best possible results for our clients.
Eversource Energy ERISA Class Action Settlement
$14 Million
Eversource Energy ERISA Class Action Settlement
Universal Health Services ERISA Class Action Settlement
$12.5 Million
Universal Health Services ERISA Class Action Settlement
Beth Israel Medical ERISA Class Action Settlement
$2.9 Million
Beth Israel Medical ERISA Class Action Settlement
Rush University Medical ERISA Class Action Settlement
$2.9 Million
Rush University Medical ERISA Class Action Settlement
Words From Our Clients
Client
James and Chris at Miller Shah LLP have been fantastic. Professional to a tee, we cannot recommend these guys enough. If you are after an attorney, then look no further. Definitely worthy of 5 stars.
Anonymous
I have known Eric for many years. He is an excellent lawyer.
Brian G.
Amazing law firm, nationally recognized
Michael M.
Attentive and caring law firm.
Contact
Miller Shah LLP
While this website provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. To schedule a meeting with an attorney, please call 866-540-5505 or complete the intake form to email us. To inquire about employment opportunities with Miller Shah LLP, please see our Opportunities page.
866-300-7367
Fax number
866-540-5505
Telephone
Attorney Advertising. This information is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Past results and testimonials are not a guarantee, warranty, or prediction of the outcome of your case, and should not be construed as such. Past results cannot guarantee future performance. Any result in a single case is not meant to create an expectation of similar results in future matters because each case involves many different factors, therefore, results will differ on a case-by-case basis. By providing contact information, users acknowledge and give explicit consent to be contacted via the methods of communication provided, including SMS. Message and data rates may apply. Message frequency may vary. Reply STOP to opt out.
NUVEW | Copyright 2026 All Rights Reserved | Accessibility Notice | Privacy Policy
Alec J. Berin - Partners
PA Philadelphia | 866-540-5505
Alfonso Vilaboa - Partners
NY New York City | 866-540-5505
Ana Barba - Project Analyst
NY New York City | 866-540-5505
Anika S. Keuning - Project Analyst
NY New York City | 866-540-5505
Anna D’Agostino - Associate
NY New York City | 866-540-5505
Bruce D. Parke - Partners
PA Philadelphia | 866-540-5505
Caroline Soper - Project Analyst
NY New York City | 866-540-5505
Christopher A. Miller - Associate
PA Philadelphia | 866-540-5505
Deborah C. England - Of Counsel
CA San Francisco | 866-540-5505
Elena M. DiBattista - Legal Assistant
FL Fort Lauderdale | 866-540-5505
Elise M. Wilson - Project Analyst
NY New York City | 866-540-5505
Eric L. Young - Of Counsel
PA Philadelphia | 866-540-5505
Gina S. Demetriades - Office Staff
CT Chester | 866-540-5505
Heidi A. Wendel - Of Counsel
NY New York City | 866-540-5505
Henry Fina - Project Analyst
PA Philadelphia | 866-540-5505
Isack Fadlon - Of Counsel
CA Los Angeles | 866-540-5505
James C. Shah - Partners
CA Los Angeles | 866-540-5505
James E. Miller - Partners
CT Chester | 866-540-5505
Jasmine Griswold - Legal Assistant
CT Chester | 866-540-5505
Jayne A. Goldstein - Partners
FL Fort Lauderdale | 866-540-5505
Jillian M. Lussier - Office Staff
CT Chester | 866-540-5505
Jocelyn McNamara - Law Clerk
NY New York City | 866-540-5505
Johanna C. Richter - Law Clerk
PA Philadelphia | 866-540-5505
Jonathan A. Dilger - Office Staff
NY New York City | 866-540-5505
Katie Canfield - Legal Assistant
PA Philadelphia | 866-540-5505
Kolin C. Tang - Partners
CA San Diego | 866-540-5505
Kyla Golding - Project Analyst
PA Philadelphia | 866-540-5505
Laurie Rubinow - Partners
CT Chester | 866-540-5505
Leanne Alvarado - Project Analyst
NY New York City | 866-540-5505
Madison A. Gregg - Associate
NY New York City | 866-540-5505
Mark Xiao - Associate
NY New York City | 866-540-5505
Matthew P. Suzor - Associate
PA Philadelphia | 866-540-5505
Natalie Finkelman Bennett - Partners
PA Philadelphia | 866-540-5505
Nathan C. Zipperian - Partners
FL Fort Lauderdale | 866-540-5505
Nicholas Day - Of Counsel
NJ Hoboken | 866-540-5505
Nicholas K. Ono - Project Analyst
NY New York City | 866-540-5505
Nicole Jefferson - Project Analyst
PA Philadelphia | 866-540-5505
Quintin C. Cerione - Project Analyst
PA Philadelphia | 866-540-5505
Robert W. Biela - Staff Attorney
PA Philadelphia | 866-540-5505
Shuping Li - Law Clerk
NY New York City | 866-540-5505
Stephen T. Rutkowski - Law Clerk
CT Chester | 866-540-5505
Sue Moss - Legal Assistant
PA Philadelphia | 866-540-5505
Sydney D. Finlay - Associate
CA San Diego | 866-540-5505
Tara Gideon - Office Staff
PA Philadelphia | 866-540-5505
Tina Moukoulis - Staff Attorney
PA Philadelphia | 866-540-5505
Tracy Feldman - Office Staff
PA Philadelphia | 866-540-5505
Zacky P. Rozio - Of Counsel
CA Los Angeles | 310-203-0600