Knowledge Center

Wednesday, May 13, 2015

HMB's Jordan Goodman Quoted in State Tax Today on Illinois AG's Dismissal of Qui Tam Sales and Use Tax Collection Suits

State Tax Today

May 13, 2015

"Illinois Attorney General DismissesQui TamSales and Use Tax Collection Suits"

J.P. Finet

The Illinois attorney general has moved to intervene and dismiss about 80 of the qui tam lawsuits filed by Stephen B. Diamond PC against out-of-state liquor retailers involving allegations that the retailers failed to pay sales and use taxes on shipping and failed to pay the state's gallonage tax...[t]he attorney general's actions leave in place hundreds of other qui tam actions Diamond has filed against other out-of-state retailers for failing to pay sales tax on shipping.

"The [attorney general's] motions dealt with about 80 cases that were a little different than the rest because they deal with the selling of wine and spirits in other states," Jordan Goodman told Tax Analysts on May 11. Goodman is the chair of Horwood Marcus & Berk's state and local tax group.

"Diamond was trying to reach them [the liquor retailers] through the liquor control registration requirement, and the attorney general did not think it was appropriate," said Goodman. "From a taxpayer's perspective, it is good to see the attorney general intervene. We have tried to get them to intervene in a host of other cases and they do so very sparingly."

Goodman said that there has been an effort to legislatively limit the number of qui tam actions in Illinois and that the Multistate Tax Commission is drafting legislation that would limit the role of the relator in the cases brought by Diamond.

He said the goal is to have something closer to the federal model in which the Department of Revenue would step in, not the attorney general. The Council On State Taxation has also been involved, Goodman said.

Copyright 2015 Tax Analysts. Reprinted with permission.

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