Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
A state court dismissed a whistle-blower lawsuit against Citigroup Inc. alleging that the company improperly took state net operating loss deductions ( New York ex rel. Rasmusen v. Citigroup, Inc., N.Y. Sup. Ct., 100175/2013, 5/17/17 ).
In a May 17 ruling from the bench, state Supreme Court Judge Charles Ramos granted Citigroup’s motion to dismiss the case.
The case, along with one against Sprint Nextel Corp., is being watched closely by tax practitioners because it is among the first and highest-profile tax cases filed under the state False Claims Act.
The lawsuit was filed under the FCA by Eric Rasmusen, an Indiana University economics professor who argued that Citigroup improperly took some $800 million in state net operating loss deductions in connection with the sale of stock to the U.S. Treasury Department under the Troubled Asset Relief Program (TARP).
Attorneys for both sides declined to comment on the decision.
The U.S. District Court for the Southern District of New York remanded the case to a state trial court in December, ruling that it lacked jurisdiction because Citigroup failed to raise a federal issue.
To contact the reporter on this story: Gerald B. Silverman in Albany, N.Y. at GSilverman@bna.com
To contact the editor responsible for this story: Ryan C. Tuck at email@example.com
Copyright © 2017 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)