Senator Servaiso advances bill to permit tax-fraud rewards; committee tables measure 22–0

Senator Servaiso outlined a proposal to allow Virginia residents to receive a reward when information they provide to the Department of Taxation leads to collections for state tax fraud. He framed the bill as an extension of existing False Claims Act mechanisms used for contracting fraud and as a tool to encourage reporting of sales-tax, gasoline-tax, or other tax evasion.

"So what this bill would do would be to build on that and to give Virginians the incentive to blow the whistle on tax fraud," Servaiso said, describing scenarios such as false residency claims or schemes to avoid fuel taxes. He told the committee the Department of Taxation’s commissioner would have authority to provide a reward to a resident whose information results in a collection.

Members asked for further consultation with the Department of Taxation and staff before advancing the measure. After discussion, a committee member moved to lay the bill on the table; the motion was seconded and the committee voted to table the bill by recorded vote 22–0. The transcript records no subsequent referral or amendment during the session.