Eric D. Carstens
Subscribe to Eric D. Carstens's PostsEric D. Carstens focuses his practice on state and local tax matters, assisting clients with state tax controversy, compliance and multistate planning across all states for a variety of tax types and unclaimed property. Eric engages in all forms of taxpayer advocacy, including litigation, legislative monitoring and audit defense. He works closely with several of the Firm's taxpayer coalitions focused on specific state tax policy issues such as the taxation of digital goods and services and unclaimed property. Read Eric D. Carstens' full bio.
False Claims Act Risk for Unclaimed Property Holders
By Diann Smith, Stephen P. Kranz and Eric D. Carstens on Mar 15, 2021
Posted In False Claims Act, Nationwide Importance
In what has become an unfortunate trend, unclaimed property holders continue to be subject to lawsuits under state false claims acts (FCA – also called a qui tam or whistleblower action) for alleged underreporting and remittance of unclaimed property obligations. More than 30 states have a false claims act with whistleblower provisions and nearly all...
Continue Reading
Maryland Enacts First Digital Advertising Services Gross Receipts Tax: Now What?
By Stephen P. Kranz, Mark Nebergall and Eric D. Carstens on Feb 12, 2021
Posted In Allocation/Appointment, Connecticut, Constitutional Issues, Indiana, Maryland, Montana, Nationwide Importance, New York, Oregon, Washington
General Assembly Veto Override On February 12, 2021, the Maryland General Assembly overrode Governor Larry Hogan’s veto of HB 732 (2020) (the Act), a bill enacting a first-of-its-kind digital advertising services tax on the annual gross receipts from the provision of digital advertising services in Maryland. The tax only applies to companies having annual gross...
Continue Reading
DC Council Expands False Claims Act to Tax Claims
By Stephen P. Kranz, Diann Smith and Eric D. Carstens on Dec 1, 2020
Posted In District of Columbia, False Claims Act, Nationwide Importance
The DC Council has passed an amended bill (the False Claims Amendment Act of 2020, B23-0035) that beginning as early as January 2021 will allow tax-related false claims to be raised against large taxpayers for up to 10 years of prior tax periods! This troubling legislation creates a real and imminent possibility of prior tax...
Continue Reading
False Claims Act Tax Expansion Bill Advanced by DC Council
By Stephen P. Kranz, Diann Smith and Eric D. Carstens on Nov 17, 2020
Posted In District of Columbia, False Claims Act, Illinois, Nationwide Importance, New York
The DC Council has once again advanced a bill (the False Claims Amendment Act, B23-0035) that would allow tax-related false claims against large taxpayers! The bill passed a first reading of the Committee of the Whole on Tuesday, November 17, 2020, by a vote of 8-5. The bill is sponsored by Councilmember Mary Cheh, who...
Continue Reading
New York Legislation Proposes to Retroactively Remove FCA Culpability Standard for Tax Law Claims
By Stephen P. Kranz, Diann Smith and Eric D. Carstens on Oct 14, 2020
Posted In False Claims Act, Nationwide Importance, New York
With Halloween just a few weeks away, a scary proposal is brewing in the New York State Legislature that should give taxpayers chills. Companion bills Assembly Bill 11066 and Senate Bill 8872 were recently introduced by committee chairs (Assembly Ways and Means Chairwoman Helene Weinstein and Senate Committee on Judiciary Chairman Brad Hoylman). This legislation...
Continue Reading
Business Victorious in Unclaimed Gift Card False Claims Case
By Diann Smith, Stephen P. Kranz and Eric D. Carstens on Jun 26, 2020
Posted In Delaware
The Delaware Supreme Court gave Overstock.com a win in a False Claims Act (FCA) suit alleging the retailer failed to remit unclaimed gift card funds to the state. Overstock.com Inc. v. the State of Delaware and French, DE Sup. Ct., No. 327,2019 (June 25, 2020). A jury previously found Overstock liable for approximately $7.3 million....
Continue Reading
Maryland General Assembly Sends Digital Advertising Tax to Governor; Nearly Identical Bill Pending in New York
By Eric D. Carstens and Stephen P. Kranz on Mar 18, 2020
Posted In Allocation/Apportionment, Constitutional Issues, Maryland, Nationwide Importance, New York, Transaction Taxes
With gatherings larger than 50 people banned and the State House cleared of visitors, on March 18, 2020, Maryland’s legislature approved HB 732, which contains a massive new punitive tax on digital advertising services, and sent it to Governor Larry Hogan (R) for his consideration. Digital Advertising Gross Revenues Tax Contradicting the clear legislative trend...
Continue Reading
Vermont Bill Would Repeal Cloud Software Tax Exemption
By Eric D. Carstens and Stephen P. Kranz on Jan 17, 2020
Posted In Nationwide Importance, Sales Tax, Tax Base, Vermont
On January 16, a bill (H. 756) was introduced in the Vermont Assembly that would repeal the sales and use tax exemption for remotely accessed prewritten computer software. If enacted as introduced, the exemption would no longer protect Vermont taxpayers from this legally suspect tax beginning July 1, 2020. This is not the first time...
Continue Reading
Plaintiffs’ Lawyers Descend as DC Considers False Claims Act Expansion Again!
By Eric D. Carstens and Stephen P. Kranz on Jan 16, 2020
Posted In False Claims Act, Nationwide Importance
The D.C. Council is once again preparing to consider legislation (B23-0035; the False Claims Amendment Act of 2019) that would authorize tax-based false claims actions, allowing private, profit-motivated parties to bring punitive civil enforcement lawsuits—a practice that is prohibited under current law consistent with the vast majority of other states with similar laws. The Committee...
Continue Reading
Batten Down the Hatches: Digital Tax Nor’easter Coming This Fall
By Eric D. Carstens, Mark Nebergall and Stephen P. Kranz on Jun 28, 2019
Posted In Connecticut, Rhode Island, Sales Tax, Tax Base
Recently passed budget legislation in both Connecticut and Rhode Island included tax increases on sales of digital goods and services. The Connecticut bill has been signed into law. The Rhode Island bill passed late last night awaits executive action. Below are brief summaries of the impacts of these bills on the sales taxation of digital...
Continue Reading
