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Government In Jurisdictional Pickle Over Reverse-False-Claims Action For Unpaid Customs Duties

Client Alert | 1 min read | 06.20.06

The U.S Court of International Trade (CIT), in U.S. v. Universal Fruits & Vegetables Corp. (May 25, 2006), has dismissed for lack of jurisdiction the government's False Claims Act (FCA) lawsuit alleging that defendants who falsified country-of-origin information to avoid customs duties incurred treble damages and civil penalties by knowingly making false statements to decrease an obligation to pay money to the U.S.  Because the case was at the CIT only because the Ninth Circuit had previously ruled that the forum originally chosen by the government, i.e., the federal district court for the Central District of California, lacked jurisdiction over this customs-related matter, the government now appears to be left without a forum, unless it appeals the CIT's decision to the Federal Circuit, in which case a conflict of circuits could result, with the Supreme Court eventually being asked to determine the jurisdictional fate of the government's potentially lucrative "reverse-false-claims" theory. 

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Client Alert | 3 min read | 10.10.25

New Post Appeals Mediation Pilot Program

On October 1, 2025, the IRS Independent Office of Appeals launched a two-year pilot program to make Post Appeals Mediation (PAM) more attractive and accessible to taxpayers. See IRS Announcement 2025-10. The new PAM pilot program offers taxpayers the opportunity to be assigned to a new Appeals team, which is otherwise unconnected to the underlying case, who will represent the original Appeals team in the mediation session. The assignment of the new Appeals team does not begin a new appeals process but rather is intended to help facilitate an expedited and impartial look at the underlying case with the goal of further exploring all potential paths to resolution prior to litigation....