The Case for Qui Tam Tax Claims: Former New York Attorney General Bureau Chief Tells Why States Should Lift Their Bar

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Randall M. Fox, a partner at Kirby McInerney LLP and former Bureau Chief of the New York Attorney General's Taxpayer Protection Bureau, is a proponent of state qui tam tax claims—a whistleblower law that allows private citizens who allege tax fraud to sue on the government's behalf. Many state and local tax practitioners say qui tam tax claims should be excluded from False Claims Acts as the federal government does. Six of 29 states (Delaware, Florida, Nevada, New Hampshire, New Jersey and New York) that have implemented an FCA don't include a tax bar. Three of the 29 states (Illinois, Indiana and Rhode Island) have partial tax bars, disallowing income tax claims.