What is the connection between the IRS's Whistleblower Reward Program and the False Claims Act?

IRS's Whistleblower Reward Program and False Claims Act Comparison

1) Both encourage whistleblowers to file suit against individuals as well as companies.

2) Both provide financial incentives to whistleblower citizens in the form of a percentage of money recovered.

3) Both provide financial incentives to whistleblower citizens in the form of standardized monetary rewards.

4) Both provide total anonymity for the whistleblower.

Final answer:

Both the IRS's Whistleblower Reward Program and the False Claims Act provide financial incentives to whistleblowers based on a percentage of the money recovered, lifting the burden of misconduct and fraud discovery from government shoulders.

Explanation:

The IRS's Whistleblower Reward Program has in common with the False Claims Act the feature that both provide financial incentives to whistleblower citizens in the form of a percentage of money recovered. This aligns with option 2 of the presented choices.

Under the whistleblower programs, individuals who report misconduct, specifically tax evasion for the IRS and fraud against the federal government for the False Claims Act, are eligible to receive a portion of the recovered funds, which serves as a significant incentive for whistleblowers to come forward. These incentives aim to encourage private citizens to assist in uncovering and prosecuting fraud and misconduct.

However, unlike the False Claims Act, which allows whistleblowers to file suit directly against fraudulent parties, the IRS program requires whistleblowers to report to the IRS, which then takes action based on the information provided. While both have mechanisms to protect whistleblowers, there are no guarantees of anonymity in either program, and the standardized monetary rewards do not apply to either as the rewards vary based on the recovery amount.