On March 12, 2013, Judge Thomas R. Mulroy of the Circuit Court of Cook County, Law Division, dismissed with prejudice a state and local tax controversy case alleging that TDR’s client incorrectly calculated tax on sales made through the client’s website.
The lawsuit was one of over 100 individual suits filed against Internet retailers from around the nation and consolidated before Judge Mulroy. In each suit, a private law firm alleged on behalf of the State of Illinois that the business violated the Illinois False Claims Act by improperly calculating the Illinois state and local sales tax due on sales made over the Internet that included shipping and handling charges. These tax controversy cases involve a disputed and controversial area of Illinois state and local tax law relating to taxation of Internet sales.
On March 12, Judge Mulroy dismissed the case with prejudice, ending the lawsuit at the trial level. The case against TDR’s client was the first of the consolidated lawsuits to be dismissed with prejudice without a settlement. TDR partners Caesar Tabet, Daniel Konieczny, and Jack Barber represented TDR’s client in this matter.