Costly legislation (AB 2570, Stone) that would expose California businesses to even more unnecessary lawsuits is quietly making its way through the California Legislature, and we need your help to stop it in its tracks!
California businesses are already struggling from the economic impacts of the COVID-19 pandemic, and AB 2570 would impose additional, costly and unnecessary burdens.
WHY IS AB 2570 (Stone) SO HARMFUL?
New incentive for contingency-fee lawyers
Creates double jeopardy for taxpayers
- Private attorneys could bring actions against taxpayers even when the tax agencies or attorney general determine no action is warranted.
- There has been rampant abuse in a handful of states with similar laws: 72 percent of actions brought by private attorneys are frivolous (2007 Columbia Law Review study).
- Opens the floodgates for costly and unnecessary tax litigation, similar to the experience with California’s Private Attorney General Act and Americans with Disabilities Act (ADA) statutes.
A solution in search of a problem
- Guilty Until Proven Innocent: Taxpayers would have to pay expensive court costs to defend themselves even after the state agencies audit their tax returns and clear them of wrongdoing.
- Tax agencies are not short of resources, have not found large-scale fraud in California and did not ask for this change.
- California already has robust tax fraud statutes and enforcement programs – existing whistleblower programs can be strengthened to provide financial incentives.
Your involvement is what makes Californians Against Higher Taxes so effective! Please take a minute and email your legislators to vote! Thank you for your continued efforts and please contact us if you have any questions.