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.
Alabama Legislature Rejects (Yet Another) Attempted Digital Tax Expansion
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Mar 21, 2016
Posted In Alabama, Audits, Nationwide Importance, Sales Tax, Tax Base, Transaction Taxes
Last month, a much-anticipated bill drafted by the Alabama Department of Revenue (Department) was introduced in the Alabama Senate that would have expanded the definition of tangible personal property to include “digital goods.” See Senate Bill 242 (introduced February 16, 2016). Fortunately, the Senate Finance and Taxation Education Committee (Committee) rejected the bill on March...
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California Supreme Court Denies BOE Petition for Review in Lucent Technologies
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jan 26, 2016
Posted In Audits, California, Nationwide Importance, Procedure, Sales Tax, Tax Base, Transaction Taxes
Last week, the California Supreme Court denied the State Board of Equalization’s (BOE’s) petition for review in Lucent Technologies, Inc. v. State Bd. of Equalization, No. S230657 (petition for review denied Jan. 20, 2016). This comes just months after the California Court of Appeals held against the BOE and ordered it to pay Lucent’s $25...
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Michigan Backs Off Cloud Tax, Refund Opportunities Available
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jan 14, 2016
Posted In Audits, Michigan, Nationwide Importance, Procedure, Sales Tax, Tax Base, Transaction Taxes
After refusing to back down on the issue for years, the Michigan Department of Treasury (Department) issued guidance last week to taxpayers announcing a change in its policy on the sales and use taxation of remotely accessed prewritten computer software. This comes after years of litigating the issue in the Michigan courts, most recently with...
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D.C. Council Holds Hearing on New Tax to Fund Unprecedented Family Leave Benefits
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Dec 3, 2015
Posted In District of Columbia, Local Tax, Nationwide Importance, Tax Base
Yesterday, the D.C. Council Committee of the Whole held an advocates-only hearing on the Universal Paid Leave Act of 2015 (Act), which was introduced on October 6, 2015 by a majority of councilmembers. As introduced, this bill establishes a paid leave system for all District of Columbia (District) residents and all workers employed in the...
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Taxpayers Stand to Lose Under Chicago’s Lease Tax VDA Offer
By Catherine A. Battin, Eric D. Carstens and Stephen P. Kranz on Nov 20, 2015
Posted In Audits, Illinois, Incentives, Interest and Penalties, Local Tax, Transaction Taxes
Yesterday, the City of Chicago (City) Department of Finance (Department) published an Information Bulletin that provides additional guidance on the Personal Property Lease Transaction Tax (Lease Tax) and extends a new Voluntary Disclosure Agreement (VDA) offer to providers and customers. The updated guidance includes an overview of the Lease Tax, a description of the amendments...
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Chicago Mayor’s Tax-Heavy Budget Passes: Lease and Amusement Tax Implications
By Catherine A. Battin, Eric D. Carstens and Stephen P. Kranz on Nov 4, 2015
Posted In Illinois
Last week the Chicago City Council approved Mayor Rahm Emanuel’s 2016 revenue ordinance as part of his tax-laden budget proposal. The revenue ordinance included noteworthy changes to the personal property lease transaction tax (lease tax) and amusement tax, both of which we have covered in-depth since the Department of Finance (Department) issued two rulings over...
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Tax Haven List Repealed by D.C. Council
By McDermott Will & Emery, Diann Smith, Eric D. Carstens and Stephen P. Kranz on Nov 3, 2015
Posted In District of Columbia, Income Tax
After being in effect for only a week, the Council of the District of Columbia (Council) unanimously enacted legislation today that will repeal the list of tax haven jurisdictions specifically enumerated in the D.C. Code. The legislation, titled the Fiscal Year 2016 Second Budget Support Clarification Emergency Amendment Act of 2015 (Act), was introduced on...
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Precedential Cloud Victory in Michigan Court of Appeals
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Oct 30, 2015
Posted In Audits, Michigan, Nationwide Importance, Sales Tax, Transaction Taxes
On Tuesday, a three-judge panel sitting for the Michigan Court of Appeals unanimously affirmed a lower court decision finding that the use of cloud-based services in Michigan is not subject to use tax in Auto-Owners Ins. Co. v. Dep’t of Treasury, No. 321505 (Mich. Ct. App. Oct. 27, 2015). While there have been a number of...
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Post-DMA, Federal Court of Appeals Broadly Interprets Jurisdictional Limitations of Anti-Injunction Act
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Sep 3, 2015
Posted In Constitutional Issues, Interest and Penalties, Nationwide Importance, Procedure
Earlier this month, the United States Court of Appeals for the D.C. Circuit held in Florida Bankers Ass’n v. U.S. Dep’t of the Treasury, No. 14-5036 (D.C. Cir. Aug. 14, 2015) that the Anti-Injunction Act (AIA, codified at 26 U.S.C. § 7421(a)) barred two state banking associations from challenging Treasury regulations that: (1) required banks to...
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Should Companies Adjust Their Incentive Strategies in Light of New Governmental Accounting Disclosure Requirements?
By Eric D. Carstens and Scott M. Susko on Aug 28, 2015
Posted In Incentives, Nationwide Importance
Earlier this month, the Governmental Accounting Standards Board (GASB) approved Statement No. 77, Tax Abatement Disclosures, which requires state and local governments to report on foregone revenue from tax abatement agreements. This will significantly increase scrutiny of negotiated tax incentives, particularly at the local level. Businesses need to consider how this may change their local...
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