Some states expanding their whistleblower laws to include tax whistlebloweing including California, Michigan and D.C.

California Attorney General Xavier Becerra will present a plan to expand the state’s False Claims Act (FCA) to tax matters  In addition, Michigan and the District of Columbia will consider bills that add tax code violations to the list of actionable frauds coming under their false claims laws.

State false claims laws allow whistleblowers to file suits against parties that knowingly perpetrate frauds against the state. Whistleblowers are permitted to render a bounty, typically between 15% and 30% of any proceeds won, and attorney’s fees. Thirty-one states have false claims laws that also permit whistleblowers to file qui tam actions.