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