Taxpayer Hunting Season in the Empire State: New York Expands Its False Claims Act to Include Tax Enforcement Related Articles

New York's False Claims Act was amended in August 2010 to allow “whistleblower” lawsuits over alleged violations of state and local tax law, as long as the annual income or sales of the defendant are $1 million or more and the pleaded damages exceed $350,000. Patterned in part on the federal False Claims Act, the New York law appears to be the first in the nation to specifically authorize qui tam actions over tax law violations. In this article, authors Matthew C. Boch, Catherine A. Battin, and Jane Wells May, of McDermott Will & Emery, analyze the new law and discuss its implications for tax enforcement in New York.