Federal Court Sends False Claims Act Case Against Citigroup Back to State Court


Peter Faber said that, when a federal court ruled it lacked jurisdiction to consider a NY State False Claims Act tax case, “it illustrates an often overlooked aspect [in which] positions taken on a federal tax return can result in FCA liability” because New York tax law incorporates much of the Internal Revenue Code.” This, Mr. Faber added, means “corporations that take positions on their federal income tax returns that could be challenged by the Internal Revenue Service risk FCA liability.”