NEW YORK (Legal Newsline) — My Pillow Inc. will pay $1.1 million after allegations of knowingly failing to collect and remit New York sales taxes on sales made to New York consumers through its website and over the phone, New York Attorney General Eric T. Schneiderman has announced.

  The case began after a whistleblower filed a complaint against the Minnesota-based pillow retailer. Schneiderman’s office looked into the matter and contended that, from 2011-2015, My Pillow did not collect and remit roughly $537,000 in sales taxes on taxable sales to New York consumers. The company sold products at trade shows in the state and through independent contractors, meaning it needed to collect and remit New York sales tax, the office said.

“Out-of-state companies like My Pillow cannot shirk their obligations to New York," Schneiderman said. "Companies that fail to collect and remit applicable sales taxes harm the state and local governments—something that cannot be tolerated.” 

Schneiderman noted his appreciation for the whistleblower and its attorneys, as well as the New York State Department of Taxation and Finance. 

The case was handled by assistant attorney general Maureen A. Fitzgerald and deputy bureau chief Scott J. Spiegelman of the Attorney General’s Taxpayer Protection Bureau.

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