Citigroup accused of improperly avoiding $800m in taxes
Citigroup is being accused of using an unusual federal tax break during the financial crisis to avoid paying $800m in New York State taxes by Eric B. Rasmusen, a professor at Indiana University. He has challenged the validity of the unusual federal tax break; the claim seeks to treble damages of $2.4bn, under the False Claims Act. The case revolves around Citigroup using the federal government $45bn taxpayer-funded bailout to improperly reduce its New York State franchise taxes in 2010 and 2011. This case reignites an issue that was debated in Congress after the bailout of Wall Street, when Citigroup won approval in December 2009 to begin repaying its bailout money, it also received what critics called a "bailout within a bailout" - a one-time approval to hold on to $38bn in tax-related benefits that, under other circumstances, it would have lost.

According to the article, the professor of business economics and public policy at the Kelley School of Business at Indiana University said Citigroup used an unusual federal tax break during the financial crisis to avoid taxes.

He seeks $2.4 billion in damages under the False Claims Act, the article said and the bank is expected to respond by Dec. 7.

For the full story see newyorktimes.com.

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