“Taxpayer Hunting Season in the Empire State”
BNA Tax Management – Multistate Tax Report, February 25, 2011
Matthew Boch, Catherine Battin and Jane Wells May wrote that the amendment of the New York False Claims Act to allow whistleblower suits to enforce state and local tax statutes is a first for any state. The authors believe it “undermines fair and efficient tax enforcement” by sending taxpayers into high stakes litigation instead of the normal audit and appeal processes. Because, like New York, other states are also in need of additional revenue, the state’s action “may be the harbinger of a new era of tax disputes” in many jurisdictions that now prevent whistleblower suits in tax matters.