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.
Litigation Alert | Third Circuit Reaffirms Scope of Federal Priority Rules
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Dec 7, 2017
Posted In Audits, Delaware, Procedure, Unclaimed Property
On December 4, 2017, the US Court of Appeals for the Third Circuit issued its much-anticipated precedential opinion in Marathon Petroleum Corp. et al., v. Secretary of Finance et al., No. 16-4011. The opinion affirms the Third Circuit’s existing view (described in its 2012 New Jersey Retailers Association decision) that US Supreme Court precedent permits a...
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State Income Tax Implications of Base Broadening Components of House and Senate Tax Reform Bills
By Diann Smith, Mark Nebergall and Stephen P. Kranz on Dec 5, 2017
Posted In Nationwide Importance, Tax Base, Uncategorized
While there are differences between the House and Senate tax reform bills that remain to be worked out between the two chambers, both bills are positioned to broaden the tax base and reduce the tax rate. This article highlights the possible impact on state income tax liabilities stemming from the base broadening provisions. Continue Reading.
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Get Ready for the Countdown: Final Delaware Unclaimed Property Regulations Published
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Oct 5, 2017
Posted In Audits, Delaware, Unclaimed Property
On October 1, 2017, the Delaware Department of Finance published final regulations in the Register of Regulations repealing its former unclaimed property regulations and promulgating a new reporting and examination manual. See 21 DE Reg 336 (Oct. 1, 2017). The final reporting and examination regulation contains no substantive changes from the revised version that was...
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South Dakota Petitions US Supreme Court for Opportunity to Overturn Quill
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Oct 3, 2017
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, South Dakota, Transaction Taxes
On October 2, 2017, the State of South Dakota (State) filed its petition for a writ of certiorari with the United States Supreme Court (Court). A copy of the cert petition is available here and the case, South Dakota v. Wayfair, Inc. et al., is expected to be docketed on October 3, 2017. The State...
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Holders Beware: Delaware Department of State Notices to be Mailed in Two Weeks!
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Sep 29, 2017
Posted In Audits, Delaware, Unclaimed Property
In two weeks, the Delaware Secretary of State (SOS) will begin mailing notices to holders who have been identified as likely being out of compliance with Delaware unclaimed property law. Holders that do not enroll in the SOS Voluntary Disclosure Agreement Program (VDA Program) within 60 days of the mailing of this notice will be...
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Delaware (Re)Proposes Unclaimed Property Reporting and Examination Manual Regulation
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Aug 16, 2017
Posted In Audits, Delaware, Interest and Penalties, Unclaimed Property
On August 1, the Delaware Department of Finance (DOF) published a revised version of its proposed reporting and examination manual regulation addressing audit procedures and method of estimation. See 21 DE Reg 123 (Aug. 1, 2017). The revised proposed regulation is substantially similar to the first draft proposed earlier this year, but contains a dozen or...
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Resistance is not Always Futile: New Decision in Ongoing Delaware Unclaimed Property Audit Litigation
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Aug 14, 2017
Posted In Audits, Constitutional Issues, Delaware, New Jersey, Pennsylvania, Unclaimed Property
On August 9, 2017, the US Court of Appeals for the Third Circuit (Third Circuit), overruling the US District Court for the District of Delaware (District Court), allowed a claim by a holder seeking to prevent an unclaimed property audit by Delaware on due process grounds to proceed. See Plains All American Pipeline L.P. v....
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Illinois Unclaimed Property Law Substantially Revised As Part of Revenue Package Supporting Illinois Budget
By Diann Smith and Eric D. Carstens on Jul 7, 2017
Posted In Illinois, Unclaimed Property
Yesterday the Illinois House of Representatives voted to override Governor Bruce Rauner’s veto of Senate Bill (SB) 9, the revenue bill supporting the State’s Fiscal Year (FY) 2017-2018 Budget. Just days before the vote, SB 9 was amended to include a revised version of the Illinois Unclaimed Property Bill (House Bill (HB) 2603) on which...
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Connecticut Will Make You Disclose Personal Customer Data!
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jul 6, 2017
Posted In Connecticut, Constitutional Issues, Nationwide Importance, Nexus, North Carolina, Sales Tax
The Connecticut Department of Revenue Services (DRS) recently issued demand letters to many remote sellers requiring that they either: (a) provide electronic sales records for all individual sales shipped to a Connecticut address over the past three calendar years; or (b) register to collect and remit Connecticut sales and use tax. This action is consistent...
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Substitute Alert ‒ Delaware Technical Corrections Bill
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jun 6, 2017
Posted In Audits, Delaware, Interest and Penalties, Unclaimed Property
Last Friday, the Delaware Senate released a substituted version of the bill (Senate Bill 79) introduced last month as a technical corrections bill to Senate Bill 13—the unclaimed property rewrite legislation enacted earlier this year. The Senate substitute differs from the introduced version of Senate Bill 79 as follows: It does not strike § 1147(a)—the provision...
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