Knowledge Center

Thursday, March 08, 2018

HMB Article Cited in MN Supreme Court Qui Tam Case

A Recipe for Bad Tax Policy: False Claims Acts and State Taxation

By: Christopher T. Lutz, Fred O. Marcus and Jordan M. Goodman

In 2013, Christopher T. Lutz, Fred O. Marcus and Jordan M. Goodman wrote an article urging states to reject the applications of False Claims Acts to state and local taxes. The article was published in the Journal of Multistate Taxation and Incentives, Thomson Reuters/WG&L. Volume 22, Number 9. January 2013. Read the original article here.

Since, the article was cited in various case briefs including, most recently in a Minnesota Supreme Court case regarding MN's false claims acts' applicability to telecom taxes. In that case, a relator has taken the position that a number of telecommunications companies in the state fraudulently underpaid telecommunications charges. The defendants, however, have argued that the telecommunications charges are taxes under Minnesota law, and therefore are not subject to the state's False Claims Act. You can read the Chamber of Commerce amicus brief here or the Respondents' brief here.

HMB regularly represents defendants of Qui Tam claims and is a frequent source for updates. Unlike in Minnesota, the Illinois False Claims Act applies to a number of state taxes and HMB has been heavily involved in defending such cases. To keep up with HMB's progress in these cases, be sure to check out David Ruskin's thoughts. David is a thought leader in this area, regularly speaking on the topic and representing defendants in such cases. 

Recent news can be found here: 

Tailors Object to Litigation by Notorious Illinois Whistleblower

Notorious Whistleblower Takes Custom Tailors to Court

Scary Stuff: Illinois Sales Tax Whistleblower Update - First E-tailers and now Custom Tailors

Some Good News for the Good Guys: Retailer Wins Illinois Qui Tam Ruling

Lessons Learned from New York's Largest Ever False Claims Act Tax Settlement

No Ostrich Here: Qui Tam Victory for Taxpayer from the Illinois Appellate Court

Illinois Trial Court Judge Dismisses Qui Tam Suit Against Wineries


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