Federal Judge Approves Tax Settlement Between Taxpayer and New York State Over Objections of Qui Tam Plaintiff
In this article, the author discusses a recent decision by a federal district court in New York that demonstrates the potential benefits of working with the New York State Tax Department to resolve qui tam claims, even where the qui tam plaintiff objects to the settlement.
A recent decision by the U.S. District Court for the Southern District of New York, under the New York False Claims Act, offers good news to New York taxpayers that may be facing qui tam actions from private party litigants making questionable and frequently onerous tax claims.
A federal judge granted New York State’s motion for court approval of a corporate tax settlement between the state and a New York corporate taxpayer for $100,000, over the objections of a qui tam plaintiff that claimed millions of dollars of taxes were allegedly owed by the corporation.
The decision, in State v. Egon Zehnder Int’l, Inc., demonstrates the potential benefits of working with the New York State Tax Department to resolve qui tam claims, even where the qui tam plaintiff objects to the settlement, as courts tend not to second guess the state’s settlement judgment.
To read the full article, please click here.
“Federal Judge Approves Tax Settlement Between Taxpayer and New York State Over Objections of Qui Tam Plaintiff,” by Irwin M. Slomka was published in the November 2022 edition of Pratt’s Government Contracting Law Report (Vol. 8, No. 11), an A.S. Pratt Publication, LexisNexis. Reprinted with permission.
This article is updated from its original version, first published in The BR State + Local Tax Spotlight: September 2022.