Under the leadership of New York Attorney General Eric Schneiderman, New York amended its False Claims Act to permit whistleblower-initiated tax fraud cases and is putting that law to use.
The law doesn't apply to taxcases, although in a case against Sakura Global Capital last year he unsuccessfully tried an end-run around this exemption.
The state legislature could do so simply by removing a single sentence from the existing False Claims Act so that tax fraud cases could be brought under that whistleblower law.
It protects documents that would normally be protected by the common-law attorney-client privilege, except in corporate tax-shelter cases and criminal cases.
That was a first for Congress: in the four cases regarding income tax brought before the Court, not one had ever struck down a law as unconstitutional.