Whistleblower Can't Avoid Tax On FCA Award, NJ Court Says

Law360 (February 8, 2018, 5:56 PM EST) -- A New Jersey appellate court on Thursday affirmed that a whistleblower’s $1.2 million payout from his False Claims Act lawsuit over unlawful Medicare billing is subject to state income tax, clarifying in a published opinion that the award falls within the legal damages that constitute taxable income under state law.

A three-judge Appellate Division panel turned down the appeal by hospital billing consultant Anthony Y. Kite, agreeing with former Tax Court Judge Patrick DeAlmeida’s take on the legislative intent of the word “award” as it appears...
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