Groundbreaking Tax Qui Tam Whistleblower Case Settles in New York

New York State leads the way with another qui tam tax whistleblower settlement under its so-called “False Claims Act on Steroids” that notably – and uniquely – expressly allows for whistleblowers to report and obtain a reward for reporting large-scale tax frauds. This case involved a violation of complicated tax law provisions that allow taxpayers to defer income taxes in connection with certain qualified “like-kind” exchanges of properties.  Acting on the information of a qui tam whistleblower, the New York State Attorney General’s office obtained a $1.1 million settlement from real estate developer Asher Roshanzamir based on his illegal conduct under the “like-kind” exchange rules of section 1031 of the United States Internal Revenue Code – which are incorporated into New York Tax Law. The whistleblower in the case received $200,000 for reporting the fraud.

Getnick & Getnick LLP took a leading role in the passage and development of the New York State False Claims Act in 2007 and in the legislation that strengthened the act in 2010 to empower and reward tax whistleblowers.