Diann Smith
Subscribe to Diann Smith's PostsDiann Smith focuses her practice on state and local taxation and unclaimed property advocacy. Diann advises clients at any stage of an issue, including planning, compliance, controversy, financial statement issues and legislative activity. Her goal is to find the most effective method to achieve a client's objective regardless of when or how an issue arises. Diann emphasizes the importance of defining a client's objective - whether it is finality of a frequently audited issue, quick resolution of a stand-alone tax liability, or avoiding competitive disadvantages in the application of a tax. The defined objective then governs the choice of the path to a solution. Read Diann Smith's full bio.
Rate Reduction for D.C. QHTC Capital Gains to Begin… in 2019
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jan 23, 2015
Posted In Allocation/Apportionment, District of Columbia, Sales Tax
Investors keeping a close eye on pending legislation (the Promoting Economic Growth and Job Creation Through Technology Act of 2014, Bill 20-0945) promoting investments in D.C. Qualified High Technology Companies (QHTC) will be happy to know it passed—but not without a serious caveat. While the bill was originally set to allow investors to cash in...
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Beleaguered D.C. Taxpayers Achieve Another Success in Ongoing Challenges to the Methodology Used in the District’s Transfer Pricing Audit Program
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Nov 20, 2014
Posted In District of Columbia, Income Tax, Nationwide Importance, Procedure, Transfer Pricing
On Friday, November 14, 2014, an administrative law judge (ALJ) issued three identical orders granting the taxpayer’s motion for summary judgment in Hess v. OTR, Shell v. OTR and ExxonMobil v. OTR. In these orders, the ALJ determined that based on an early ruling that the challenged methodology was fatally flawed, the Office of Tax and...
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Extraordinary Turnout and Discussions at ULC Unclaimed Property Drafting Meeting
By Diann Smith and Stephen P. Kranz on Nov 10, 2014
Posted In Delaware, Nationwide Importance, Unclaimed Property
Failing to attend last week’s Uniform Law Commission’s (ULC’s) Drafting Committee meeting to revise the 1995 Uniform Unclaimed Property Act (the Act) was worse than missing the 2012 Extravakranza. On November 7 and 8, 2014, the Who’s Who of the Abandoned and Unclaimed Property world (AUP for insiders needing abbreviations for texting) met in Washington,...
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A Very Scary Time of the Year: MTC Joint Audit Selection
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Oct 23, 2014
Posted In Alabama, District of Columbia, Hawaii, Income Tax, Kentucky, Nationwide Importance, New Jersey, Transfer Pricing
With both Halloween and the Multistate Tax Commission (MTC) Income Tax Audit selection nearing, taxpayers should prepare themselves for the possibility of being spooked in the near future. On Thursday, October 30, from 2-4 pm EST, the MTC Audit Committee—including representatives from the 22 states participating in the upcoming round of joint income tax audits—will...
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D.C. Bill Ostensibly Lowers Tax on Capital Gains from QHTC Investments… But How?
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Oct 9, 2014
Posted In Allocation/Apportionment, District of Columbia, Income Tax, Nationwide Importance, Tax Base
On September 23, District of Columbia Council Chairman Mendelson introduced the Promoting Economic Growth and Job Creation Through Technology Act of 2014 (Bill 20-0945 , hereinafter the “Act”) at the request of Mayor Vincent Gray. This marks the second time that the Council has considered the introduced language; it was originally included as part of the...
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Multistate Taxpayers Take Note! Recap of the First Day of the MTC Pricing Summit
By Diann Smith and Stephen P. Kranz on Oct 7, 2014
Posted In Income Tax, Nationwide Importance, Transfer Pricing
On October 6, 2014, the Multistate Tax Commission (MTC) held the first day of a two-day meeting intended to educate state revenue authorities on corporate income tax issues surrounding intercompany transactions, and further refine a path forward for states interested in collaborating on audit and compliance strategies. This first day focused entirely on presentations by...
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Did You Pay a Michigan Assessment After an MTC Audit? What the State’s Retroactive Compact Repeal May Mean
By Diann Smith and Stephen P. Kranz on Sep 30, 2014
Posted In Income Tax, Michigan, Minnesota, Nationwide Importance, Sales Tax, UDITPA
On September 11, 2014, Michigan Governor Rick Snyder signed legislation (SB 156) retroactively repealing the Multistate Tax Compact (Compact, formerly codified at MCL § 205.581 et seq.) from the state statutes, effective January 1, 2008. Among other things, the bill’s passage ostensibly supersedes the Michigan Supreme Court’s decision in Int’l Bus. Machines Corp. v. Dep’t...
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Can Taxpayers Find an Advantage in Vodafone Nowhere Income Argument?
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Sep 29, 2014
Posted In Allocation/Apportionment, Tennessee, UDITPA
It is difficult, but not impossible (and quite satisfactory), to find a silver lining for taxpayers in the alternative apportionment opinion Vodafone Americas Holdings Inc. v. Roberts, M2013-00947-COA-R3CV, 2014 WL 2895900 (Tenn. Ct. App. June 23, 2014). In this much discussed case, the Tennessee Court of Appeals affirmed a variance from the statutory cost of...
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MTC to Hold Transfer Pricing Group Meeting with Third-Party Contract Auditors
By Diann Smith and Stephen P. Kranz on Sep 23, 2014
Posted In Alabama, District of Columbia, Florida, Georgia, Hawaii, Income Tax, Iowa, Kentucky, Nationwide Importance, New Jersey, North Carolina, Transfer Pricing
On October 6 and 7, 2014, the Multistate Tax Commission (MTC) will hold an Arm’s-Length Adjustment Service (ALAS) Advisory Group Conference at the Atlanta Airport Marriott. On the first day, third-party contract auditors will give presentations on transfer pricing issues. An ALAS Advisory Group meeting will be held on the second day. This past year,...
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Connecticut Hires Chainbridge Software LLC for Transfer Pricing Training
By Diann Smith and Stephen P. Kranz on Aug 21, 2014
Posted In Connecticut, Income Tax, Nationwide Importance, Tax Base, Transfer Pricing
On July 15, 2014, the Connecticut Department of Revenue Services awarded Chainbridge Software LLC a contract worth $50,000 for on-site and remotely supported training for transfer pricing audits. Chainbridge is infamous for being the contract auditor hired by the District of Columbia Office of Tax and Revenue to manufacture transfer pricing-based assessments. In 2012, the...
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