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Whistleblowers Can Call Out State and Local Tax Violations, But Only in a Few Jurisdictions
Tax violations have received unique treatment in the whistleblower world. The federal government’s primary whistleblower statute, the False Claims Act, bars cases alleging violations of federal tax laws. Only in 2006 did Congress provide for the creation of an agency-based tax whistleblower program, administered within the Internal Revenue Service, in an effort to collect unpaid taxes.
Newsday reports on DEC probe showing Covanta violated state environmental law in practices brought to light by KM whistleblower case
Newsday has published an article covering the results of a New York Department of Environmental Conservation (DEC) probe, initiated in 2021, concerning the conduct of Covanta, a waste incineration company, at its Brookhaven landfill in Westbury, Long Island between 2007 and 2013.   The probe, which was initiated further to a case brought by KM whistleblower client Patrick Fahey and, later, a Newsday investigation of the alleged conduct, found that the company had indeed repeatedly violated environmental law.
Supreme Court Confirms Whistleblower-Favorable Standard in Retaliation Cases
On February 8, 2024, the U.S. Supreme Court unanimously rejected efforts by employers to impose new hurdles to whistleblower retaliation claims. For whistleblower retaliation claims under the Sarbanes-Oxley Act, the Court rejected an argument by employers that tried to read into the law a requirement that did not exist in the language of the Act. See Murray v. UBS Sec., LLC, No. 22-660, 2024 WL 478566, at *1 (U.S. Feb. 8, 2024).

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