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Whistle-blower lawsuit settled
The Madison County Commission approved an out-of-court settlement Friday of a federal whistle-blower lawsuit that could save more than $1.3 million in taxpayers' money. Five of the six commissioners voted to pay $53,750 as the county's part of a $110,000 settlement to end litigation that stemmed from the defunct Working Connection welfare-to-work program. Tommie Lockhart of Huntsville, who sued in October 2001 under the federal False Claims Act, will receive 30 percent of the settlement. The government will receive a 70 percent share after payment of $45,000 to Lockhart's attorney, Kerri Riley, for legal fees. Lockhart was executive director of the program from December 1999 to August 2000. Commissioner Faye Dyer was absent Friday, and Commission Chairman Mike Gillespie does not vote unless there is a tie.
New measure encourages telling IRS of tax cheats
The Internal Revenue Service estimates that the difference between what Americans owe in federal taxes and what they actually pay every year is about $345 billion annually. To close this huge "tax gap," Congress and President Bush enacted a measure in December designed to give people more motivation to tattle on dishonest employers, employees, co-workers, acquaintances and former spouses. But the enhanced incentives -- higher cash rewards to those who blow the whistle on tax cheats -- will go only to those informants who provide specific, useful information. "Evidence and analysis is what we are looking for rather than hearsay and speculation," said Stephen Whitlock, director of the IRS' new Whistleblower Office. "People who come in with hearsay, speculation and a motive tend to be less reliable.
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