Meet the Lincoln Law Thats Saved $59 Billion for Taxpayers!

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There is no Law Requiring most Americans to Pay Federal Income Tax

  

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Summary

➡ The False Claims Act, a law from 1863, is still used today to stop fraud against the government. It was first used to stop suppliers from cheating the Union Army during the Civil War. Today, it’s used to stop any false claims for government money or approval, including things like a company avoiding taxes by hiding where their goods come from. This law helps protect taxpayer money and promote good public policy.

Transcript

Did you know there’s a law enacted in 1863 that is still used today to combat government fraud? It’s called the False Claims Act. Originally passed during the U.S. Civil War and dubbed the Lincoln Law, it was designed to fight rampant defense contractor fraud by targeting suppliers who overbuild or delivered substandard goods to the Union Army. The law laid dormant for decades until 1986, when the government revitalized it to combat modern-day fraud. The False Claims Act makes it illegal to knowingly submit false claims for government payment or approval, but it also covers conspiracies to defraud the government.

The False Claims Act not only protects taxpayer money, but can also advance good public policy. For example, a government contractor that awards subcontracts based on race is violating the False Claims Act. Same with an importer company who evades tariffs by obscuring an imported goods country of origin. Penalties for violating the Lincoln Law can be substantial. Violators must pay damages equal to three times the government’s loss, plus civil penalties of up to $28,000 per false claim. The False Claims Act is also a powerful tool for whistleblowers. If the government pursues the false claim allegation and recovers funds for taxpayers, whistleblowers are awarded 15 to 30 percent of the total recovery.

Since its revitalization in 1986, the False Claims Act has helped recover more than $59 billion for taxpayers, including $2.9 billion in 2024 alone. The False Claims Act empowers citizens, whistleblowers, and the government to fight fraud together, creating a powerful partnership for accountability. Understanding the power of the False Claims Act is essential for anyone that is interested in good governance and accountability. To learn more about Judicial Watch’s work combating government waste, fraud, and abuse, visit judicialwatch.org because no one is above the law. [tr:trw].

See more of Judicial Watch on their Public Channel and the MPN Judicial Watch channel.

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There is no Law Requiring most Americans to Pay Federal Income Tax

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