PA Supreme Court Says Whistleblower Payments are Taxable Compensation
February 18, 2022
Recently, in O’Donnell v. Allegheny County North Tax Collection Committee, et al., No. 8 WAP 2021 (Dec. 27, 2021), the Pennsylvania Supreme Court held that whistleblower payments constituted compensation subject to local earned income taxes. In 2014, the taxpayer had filed an action alleging that his employer violated the federal False Claims Act (“FCA”).