Civil RICO and State and Local Taxes

The U.S. Supreme Court has addressed the state or local tax implications of civil RICO in Anza v. Ideal Steel Supply Co., 547 U.S. 451 (2006), Bridge v. Phoenix Bond & Indemnity Co., 553 U.S. 639 (2008), and Hemi Group, LLC v. City of New York, 130 S. Ct. 983 (2010). In Anza and Hemi, the civil RICO claims failed; in Bridge, they succeeded. This Interpretation Matters installment considers the lessons these recent decisions teach and the continued viability of civil RICO claims based on a party's alleged violation of state or local tax rules or procedures