On August 31, 2022, the D.C. Attorney General Karl Racine announced that his office was pursuing an action against an individual, Michael Saylor, for allegedly owing individual income tax to the District as a resident under a “fraudulent scheme.” The Attorney General is also pursuing a violation of the False Claims Act related to his
False Claims Act
New York’s false positive: Reforming the False Claims Act
By Jeffrey Friedman & Cyavash Ahmadi on
Posted in In the News, New York
New York is considering expanding its False Claims Act to “knowingly or illegally failing to file” a tax return.
Not only should the legislature reject the proposed legislation, New York should roll back its FCA so it does not apply to taxes.
In this installment of “A Pinch of SALT” in Tax Notes State,…
A deep dive into the attempt to expand the False Claims Act
By Nikki Dobay on
In this episode of the SALT Shaker Podcast policy series, host and Eversheds Sutherland Partner Nikki Dobay welcomes back Stephanie Do, Senior Tax Counsel for the Council On State Taxation (COST), for a discussion about two recent proposals to expand the False Claims Acts in Connecticut and New York.
As our listeners know, most…
New York Court allows art sales tax False Claims Act suit to proceed
By Daniel Schlueter & Justin Brown on
Posted in New York
The New York State Supreme Court, Appellate Division, affirmed a New York trial court decision denying a taxpayer’s motion to dismiss a False Claims Act suit brought against the taxpayer in relation to its sales of artwork to an alleged art collector under a resale exemption. According to the complaint, an employee of the taxpayer…
New York False Claims Act case remains in federal court
By Jonathan Feldman & Jeremy Gove on
Posted in Income Tax, New York
The Southern District of New York denied a plaintiff-relator’s motion to remand a dispute over the defendant’s transfer pricing arrangement brought under the New York’s False Claims Act to New York state court. The plaintiff initiated the suit on behalf of the State of New York in state court alleging that the company did knowingly…
New York’s Governor Hochul rejects flawed False Claims Act expansion
By Nikki Dobay, Michael Hilkin & Cyavash Ahmadi on
Posted in New York, Policy and Legislation
On New Year’s Eve 2021, New York’s Governor Hochul vetoed Senate Bill S. 4730, delivering a win to taxpayers. The bill as passed by the New York Legislature earlier this year proposed to expand New York’s already overreaching False Claims Act (FCA).
Most states have a false claims act that is modeled after the federal…
California’s Flawed Proposal to Expand False Claims Act to Tax
By Jeffrey Friedman & Dennis Jansen on
In a forthcoming article in State Tax Notes, Eversheds Sutherland SALT partner Jeff Friedman and associate Dennis Jansen explore the issues with A.B. 2570 – California’s latest attempt to extend the state’s whistleblower statute to tax claims.
The bill is purportedly designed in increase revenues by targeting tax fraud. However, instead of exposing tax…
It’s All About the Paper: Delaware Supreme Court Holds Overstock Not Liable for False Claims and Reporting Act Damages for Failure to Report Unclaimed Gift Card Balances
By Chelsea Marmor & Maria Todorova on
Posted in Noteworthy Cases
The Delaware Supreme Court reversed a lower court’s ruling and held that Overstock.com was not liable for nearly $7 million in damages because there was insufficient evidence to show that Overstock violated the Delaware False Claims Act by not reporting gift card unredeemed balances. The Plaintiffs – Delaware and the whistleblower who brought this case…
California False Claims Act Expansion Bill Forges Ahead
By Timothy Gustafson on
Posted in California
On Monday, May 11, 2020, the California Assembly Judiciary Committee approved AB 2570 (Stone), which expands the state’s False Claims Act (FCA) to cover certain tax matters. Specifically, AB 2570 applies the FCA to claims, records, or statements made on or after January 1, 2021, under the Revenue and Taxation Code if damages pleaded…
Kroger False Claims Act Lawsuit Remanded to Indiana State Court for Lack of Diversity Jurisdiction
Posted on
Posted in Noteworthy Cases, Policy and Legislation
By Dmitrii Gabrielov and Jonathan Feldman
An Indiana federal court remanded a lawsuit brought under the Indiana False Claims and Whistleblower Protection Act (False Claims Act) back to Indiana state court. The relator, Michael Harmeyer, alleges that Kroger and affiliates violated the False Claims Act by failing to collect sales tax on various items at…