State Tax Notes Runs Cover Feature On Private Tax Enforcement
An article by partners David Bertoni and David Swetnam–Burland, “Barbarians at the Gates: Private State Tax Enforcement,” is the cover feature in the November 21, 2016, issue of State Tax Notes (subscription required). In the article, Bertoni and Swetnam–Burland detail the rise in litigation over state tax obligations brought by private parties, either as class actions or under state false claims laws. Private parties have increasingly sought to benefit from class actions alleging over–collection of sales tax, and false claims cases alleging under–collection. In both circumstances, the insertion of private litigants, whose interests are in financial remuneration, into disputes between taxpayers and state revenue departments has created perverse incentives and negative consequences for states and taxpayers alike.