New York: False Claims Act Expanded to Include Non-Filers

The New York State Assembly and Senate have passed Senate Bill 4730, which expands liability under the False Claims Act to encompass tax obligations owed to the state. Currently, the Act applies only to claims, records or statements made under the tax law. In other words, non-filers could not be sued under the False Claims Act. Specifically, a person would be liable under the False Claims Act for knowingly and illegally failing to file New York tax returns if (1) the individual or corporation had net income or sales that equaled or exceeded $1 million for any taxable year, and (2) the damages in such action exceeded $350,000. The bill is expected to be delivered to the Governor shortly for signature. For more information, please contact Russ Levitt.