Qui Tam Plaintiffs’ Bar Expects Increase in New York Whistle-Blower Cases12/29/2015 | Bloomberg BNA
Daily Tax Report
December 29, 2015
Bloomberg BNA quoted Kirby McInerney partner Randall M. Fox, former New York Attorney General Bureau Chief, in an article addressing a high profile whistle-blower tax case against Sprint Nextel Corp. for the company’s alleged failure to collect and pay sales taxes on flat-rate calling plans, and why the plaintiffs’ bar expects more of these types of cases to be filed.
As quoted in the article, Mr. Fox says that qui tam cases “change the mind-set” of tax payers from one of “catch me if you can.” He said the cases allow tax authorities to zero in on the specific area of dispute, as opposed to trying to find a needle in a haystack. “Some people have gotten awfully good at hiding needles in haystacks” he told Bloomberg. Fox also said that companies that take aggressive or questionable tax positions should “carefully consider the legality of what they’re doing” and be in a position to explain why it was a valid position.
The full article is reproduced with permission of Bloomberg BNA and is accessible here.