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.
Is 2015 the Beginning of Mandatory Single Sales Factor Apportionment for D.C. Taxpayers?
By Diann Smith and Stephen P. Kranz on Aug 13, 2014
Posted In Allocation/Apportionment, Constitutional Issues, District of Columbia, Income Tax, Local Tax, UDITPA
On July 14, 2014, the Fiscal Year 2015 Budget Support Emergency Act of 2014 (2015 BSEA) was enacted after the D.C. Council voted to override Mayor Vincent Gray’s veto. The act includes a tax relief package recommended by the D.C. Tax Revision Commission, and includes a change to D.C.’s apportionment formula, moving the city to...
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Was It Wirth It? The Pennsylvania Supreme Court Sets a Low Bar for Minimum Contacts
By Diann Smith and Stephen P. Kranz on Jul 28, 2014
Posted In Constitutional Issues, Income Tax, Nexus, Pennsylvania
In Wirth v. Commonwealth, the Supreme Court of Pennsylvania held that Pennsylvania personal income tax applied to non-resident limited partners whose only connection with the state was the ownership of a small interest in a partnership that owned Pennsylvania property. This ruling has weakened the effectiveness of the Due Process Clause as a defense against...
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Allied Domecq: Nexus-Combined Reporting
By Diann Smith and Stephen P. Kranz on Jul 16, 2014
Posted In Constitutional Issues, Income Tax, Massachusetts, Nexus
In Allied Domecq Spirits & Wines USA, Inc. v. Commissioner of Revenue, the Massachusetts Court of Appeals held that the parent company of a Massachusetts taxpayer could not be included in the taxpayer’s Massachusetts nexus-combined returns because the parent’s nexus with Massachusetts was a sham. Regardless of the validity of the parent’s presence in the...
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State and Local Tax Supreme Court Update: June 2014
By Diann Smith and Stephen P. Kranz on Jun 25, 2014
Posted In Alabama, Allocation/Apportionment, Colorado, Constitutional Issues, Income Tax, Local Tax, Mississippi, Nationwide Importance, Sales Tax, Transaction Taxes
On June 10, 2014, the Supreme Court of the United States distributed three state and local tax cases for a conference to be held on June 26, 2014: Equifax, Inc. v. Mississippi Department of Revenue, Direct Marketing Association v. Brohl, and Alabama Department of Revenue v. CSX Transportation, Inc. The Supreme Court previously agreed to...
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You Do the Math: Unclaimed Property Lawsuit Filed Against Kelmar
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jun 9, 2014
Posted In Constitutional Issues, Delaware, Nationwide Importance, Unclaimed Property
Mark McQuillen, president of Kelmar Associates, LLC, was misinformed when he was quoted as saying “I’ve never been sued” on May 26—less than one week after suit was filed against Kelmar and three Delaware state officials in a Delaware Federal District Court. See 72 State Tax Notes 455 (May 26, 2014). While the timing of...
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2015 D.C. Budget Bill Includes Several Significant Business Tax Changes
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on May 21, 2014
Posted In Allocation/Apportionment, District of Columbia, Income Tax, UDITPA
The FY 2015 District of Columbia Budget Request Act (BRA, Bill 20-749) is currently being reviewed by the D.C. Council after being introduced on April 3 at the request of Mayor Vincent Gray. This year’s Budget Support Act (BSA, Bill 20-750), the supplementary bill implementing changes based on the BRA, contains several significant modifications to...
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An End to the Madness? Delaware Bill Introduced to End Contingent Fee Unclaimed Property Audits
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on May 20, 2014
Posted In Delaware, Unclaimed Property
Any holder who has been involved in an unclaimed property audit has experienced frustration when dealing with third party contingent fee auditors. Delaware’s increasing aggressiveness in collecting unclaimed property has been inextricably tied to the use of these auditors, who are known for taking liberties with unclaimed property laws, harassing holders and inflating the values...
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Retailers Should Examine Gift Card Practices in Light of a Recent Unclaimed Property False Claims Action
By Diann Smith on May 14, 2014
Posted In Delaware, Nationwide Importance, Unclaimed Property
A complaint in the Superior Court of Delaware alleges that numerous retailers “schemed to deprive the State of Delaware of hundreds of millions of dollars due to the State under the Abandoned Property Law” (emphasis added). Delaware v. Card Compliant et al., Del. Sup. Ct (New Castle County), Case No. N13C-06-289 FS (6/2013). The complaint...
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Alenia Decision May Benefit D.C. Corporate Taxpayers
By Diann Smith and Stephen P. Kranz on May 13, 2014
Posted In Allocation/Apportionment, Constitutional Issues, District of Columbia, Income Tax, Tax Base
The recent decision in Alenia N. America, Inc. v. District of Columbia Office of Tax and Revenue in the District of Columbia Office of Administrative Hearings (OAH) could present opportunities for District taxpayers to receive corporate franchise tax refunds by including their joint ventures’ apportionment factors in the taxpayers’ District apportionment percentage calculation. Alenia N....
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Revise Your Tax Matrix: Remote Access of Software Exempt in Michigan and Idaho
By Diann Smith and Stephen P. Kranz on May 6, 2014
Posted In Idaho, Michigan, Nationwide Importance, Sales Tax, Tax Base, Transaction Taxes
A trend is developing in response to aggressive Department of Revenue/Treasury policymaking regarding cloud computing. The courts and legislatures are addressing the issue and concluding that the remote access to software should not be taxed. Here are two recent developments that illustrate the trend: Michigan – Auto-Owners Insurance Company v. Department of Treasury On March...
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