You need to hire a tax lawyer if you get audited. It will take some searching to find the right one. It is highly unlikely that you can make a successful claim against the agency under these facts. I have had some exposure to claims by government contractors arising overseas. and they seem to be almost impossible to bring in court. Usually the contracts contain language that insulates both the formal employer and the government from liability. There is also the problem of governmental immunity. If you were to pursue this matter in the courts it would be very difficult and expensive. You should have your contract reviewed by a lawyer, however. It may contain a provision for administrative claims or arbitration.
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There are steps you must follow before filing suit against a government entity as they are protected under sovereign immunity. This is a difficult process and you should consult an attorney to assist you due to the many consequences of making a mistake. Best of Luck.
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Why are you considering suing the government (which is immune in suit and has bottomless pockets to quash such an action)? For changing the applicable code? It not clear that you have any grounds to sue the government
You MAY have something against your employer--but I am skeptical that they have failed in some duty.
Recommend you see an employment lawyer in your area and have a chat about options. Many offer free consultations.
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