The Illinois False Claims Act (“IFCA”) has been perpetually abused by parasitic litigants seeking to force businesses into unwarranted tax claims. In the latest example, The People ex rel. Stephen B. Diamond v. Henry Poole & Co., Ltd., the Illinois Appellate Court (the “Court”) rejected an action filed by a well-known IFCA litigant against a UK-based tailor, Henry Poole & Co (“Poole”), for failure to collect Illinois use tax on custom clothing sold and shipped…
On October 17, 2022, a Maryland state judge in the Circuit Court of Anne Arundel County struck down the state’s Digital Advertising Tax (“Digital Ad Tax”) as violating the Internet Tax Freedom Act (“ITFA”) and the Commerce Clause and First Amendment of the U.S. Constitution. Comcast of California/Maryland/Pennsylvania/Virginia/West Virginia LLC, et al. v. Comptroller of the Treasury of Maryland, Case No. C-02-CV-21-000509 (Md. Cir. Ct. Anne Arundel Cnty.). The judge issued her ruling from the…
On March 4, 2022, a federal judge ruled that the federal Tax Injunction Act (“TIA”) bars a challenge to Maryland’s Digital Advertising Gross Revenues Tax (“Digital Ad Tax”) from proceeding in federal district court, but does not bar the plaintiffs from challenging Maryland’s prohibition on passing the tax to a customer “by means of a separate fee, surcharge, or line-item” (the “Pass-Through Prohibition”). Chamber of Commerce of the United States of America v. Franchot, No.…
Beginning for tax year 2021, California will require businesses that file certain California tax returns to report their California unclaimed property filing history. Specifically, most 2021 California business tax returns filed with the Franchise Tax Board (e.g., Forms 100, 565, and 568) have been updated to ask whether the entity has previously filed an unclaimed property Holder Remit Report with the State Controller’s Office, and if so, the date of the last report and the…