New Jersey Appeals Court Gives State Larger Chunk of Whistleblower Awards

A whistleblower who was awarded $1.2 million in a False Claims Act suit must pay state taxes on the entire amount of the award, even if the amount paid in legal fees and portions of the proceeds were shared with other relators, a New Jersey appeals court ruled Thursday. Anthony Kite, who filed a whistleblower suit accusing several hospitals of overbilling Medicare by as much as 400 percent, was able to deduct his legal fees for the case from his federal income taxes. But he must pay state tax...
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