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
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
"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
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
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.