In 2010, New York amended its False Claims Act to apply to violations of the New York State Tax Law. The NYS FCA is a powerful tool for tax enforcement because, under certain circumstances, it provides for treble damages, allowing the state to triple the amount of tax, penalties, and interest that is due. The NYS FCA also allows private whistleblowers to initiate claims and to receive an award equal to a percentage of the damages recovered. This panel outlines how the NYS FCA works, when it applies, and what practitioners should consider when representing clients who face liability under the FCA.
Identify issues that have arisen as a result of New York State using its false claims act as a tax enforcement tool.
Randall M. Fox is a partner in our New York office, focusing on whistleblower and qui tam matters in False Claims Act cases and before the IRS Whistleblower Office, the SEC Whistleblower Office and CFTC Whistleblower Office, as well as antitrust and consumer fraud cases. His cases generally concern claims involving tax fraud, healthcare fraud (such as Medicaid, Medicare and Tricare fraud), procurement fraud, and investment fraud. Mr. Fox writes and speaks frequently about whistleblower issues and is on the Editorial Advisory Board for the Law360 Government Contracts newsletter.
James N. Mastracchio is a partner resident in New York and Washington DC and heads Eversheds Sutherland's federal tax controversy and criminal tax practices. Jim also plays a central role in the firm’s cross-border governmental investigations and tax enforcement practices, and is widely recognized as one of the leading advisers to the global tax community with regard to civil and criminal tax enforcement matters.
Thomas Teige Carroll currently serves as Chief of the Taxpayer Protection Bureau, in the Economic Justice Division of the New York State Attorney General. The Taxpayer Protection Bureau administers the New York State False Claims Act, conducting investigations and litigation to combat fraud of various types against the state government, including tax fraud.
Before joining the Taxpayer Protection Bureau in 2014, Mr. Carroll served for six years with the Attorney General’s Investor Protection Bureau, New York State’s securities fraud enforcement unit, first as Senior Counsel and then as Deputy Chief of that Bureau.
Prior to joining the New York State Attorney General’s office, Mr. Carroll was in private practice at an international law firm for eight years. After law school, he clerked for United States District Judge Thomas C. Platt.
Tim focuses his practice in the state and local tax area. His work primarily involves New York State and New York City tax litigation and controversy. Over the past 20 years, he has handled more than 1,000 personal income tax, sales tax, corporate tax, or other New York tax audits. Tim also has handled about 100 cases in New York’s Division of Tax Appeals. Tim leads the firm’s New York State Residency Practice and he is one of the leading practitioners in this area of the law. He has handled some of the most highprofile residency cases in New York over the past decade, including a 2014 win in the Gaied case, one of the first New York residency cases to ever reach New York’s highest court. Tim also co-authored the 2018 edition of the CCH Residency and Allocation Audit Handbook and Contesting New York State Tax Assessments--Fourth Edition, published by the New York State Bar Association. He is often quoted by media outlets, including The Wall Street Journal, The New York Times and Forbes, on residency and other state tax issues. As the “Noonan” in “Noonan’s Notes,” a monthly column in State Tax Notes, Tim is a nationally recognized author and speaker on state tax issues. And in 2018, he was appointed to the Advisory Board of Tax Analysts' State Tax Notes. In addition to the CCH Residency and Allocation Audit Handbook, Tim has served as a contributing author or editor for several other tax publications and treatises, including the American Bar Association's Sales and Use Tax Deskbook, the "New York Sales Tax Guide" published by practicallaw.com, the corporate apportionment chapter in Thomson Reuters’ Checkpoint Analyst, the New York chapter of LexisNexis’s Practice Insights, and the New York Tax Litigation chapter in Thomson Reuters’ Commercial Litigation in New York State Courts treatise. He has also written more than 150 articles in state and local tax publications around the country over the past several years.
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