False Claims Act as Applied to Taxes Should Be Repealed

Peter Faber’s letter to the editor criticized a former New York official’s assertion that the False Claims Act should apply to tax controversies, saying a taxpayer held to have committed tax fraud as a result of whistleblower action should not have to pay greater penalties. “New York state has extensive civil and criminal penalties that apply to people and companies that deliberately cheat on their taxes,” Mr. Faber declared. “There is no reason why the penalty should be different if the taxpayer is brought to the government’s attention by a whistleblower than they are if the taxpayer’s liability arises during the normal audit process.”