An email comes from the general counsel: your company has been sued by a customer who alleges that the company systematically overcharges sales tax. The complaint—the legal document that starts the lawsuit—contains multiple counts for various violations of state statutes and common law doctrines and demands damages, attorney’s fees, and costs and, maybe worst of all, requests class certification. The general counsel wants to meet in a few hours to discuss the allegations and next steps.
This article is a primer on what to do when you are served with a consumer class action complaint alleging the collection of excessive state taxes. The article focuses on the nuts and bolts of what a company must consider and act upon over the next few hours, days, and months. Although unique facts and circumstances drive each case, this article provides the foundation for defending against a state tax consumer class action.
To view the full article, please download the PDF below. Originally published in the May/June issue of Tax Executive.