Stephen P. Kranz
Subscribe to Stephen P. Kranz's PostsStephen (Steve) P. Kranz is a tax lawyer who solves tax problems differently. Over the course of his extensive career, Steve has acquired specific skills and developed a unique approach that helps clients develop and implement holistic solutions to all varieties of tax problems. He combines strategic thinking with effective skills for the courtroom, the statehouse and the conference room. Read Stephen Kranz's full bio.
Breaking News: Physical Presence Requirement Bill Introduced in Congress
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jul 15, 2016
Posted In Audits, Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes
Yesterday, Congressman Jim Sensenbrenner (R-WI) introduced the No Regulation Without Representation Act of 2016 (H.R. 5893) in the US House of Representatives (House). The bill would codify the physical presence requirement established by the US Supreme Court in Quill. The bill would specifically define physical presence, creating a de minimis threshold, and would significantly affect...
Continue Reading
Pennsylvania General Assembly Passes Revenue Package with Significant Digital Tax Expansion
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jul 14, 2016
Posted In Audits, Pennsylvania, Sales Tax, Tax Base, Transaction Taxes
Yesterday, a legislative conference committee was appointed to approve an already agreed-upon $1.3 billion revenue package, which was immediately approved by both the House (116-75) and Senate (28-22) and sent to Governor Wolf for approval. The governor subsequently issued a press release confirming that he “will sign this revenue package.” A copy of the conference...
Continue Reading
Breaking News: Federal Court Finds Delaware’s Unclaimed Property Enforcement “Shocks the Conscience”
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jun 29, 2016
Posted In Audits, Constitutional Issues, Delaware, Nationwide Importance, Procedure, Unclaimed Property
On June 28, 2016, the much-anticipated memorandum opinion of the US District Court for the District of Delaware in Temple-Inland, Inc. v. Cook et al., No. 14-654-GMS was released on the parties’ cross-motions for summary judgment, finding Delaware’s extrapolation methodology and audit techniques collectively violate substantive due process. According to Judge Gregory M. Sleet, “[t]o put...
Continue Reading
Breaking News: Tennessee Submits Proposed Economic Nexus Regulation for Publication
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jun 16, 2016
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Tennessee, Transaction Taxes
Earlier today, the Tennessee Department of Revenue (DOR) submitted a new sales and use tax regulation for publication titled “Out-of-State Dealers” (Rule 1320-06-01-.129) that would administratively create an economic nexus threshold. With the submission, Tennessee becomes the most recent addition to the growing list of states seeking to directly attack the Quill physical presence standard. ...
Continue Reading
Alabama Issues Remote Sellers Use Tax Assessments, Newegg Inc. Appeals
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jun 15, 2016
Posted In Alabama, Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, South Dakota, Transaction Taxes
Ever since Alabama’s new economic nexus regulation went into effect, litigation over its constitutionality has been expected given that Alabama Commissioner Julie Magee and Governor Bentley said as much when announcing it (Rule 810-6-2-.90.03, effective January 1, 2016). It appears that they finally got their wish. On June 8, 2016, Newegg Inc. (Newegg) filed a...
Continue Reading
Unclaimed Property Hunger Games: States Seek Supreme Court Review in ‘Official Check’ Dispute
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jun 10, 2016
Posted In Alabama, Arizona, Arkansas, Audits, Colorado, Constitutional Issues, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Montana, Nationwide Importance, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, Procedure, South Carolina, Texas, Unclaimed Property, Utah, West Virginia
Background As detailed in our blog last month, MoneyGram Payment Systems, Inc. (MoneyGram) is stuck in between a rock and a hard place as states continue to duel with Delaware over the proper classification of (and priority rules applicable to) MoneyGram’s escheat liability for uncashed “official checks.” The dispute hinges on whether the official checks...
Continue Reading
Breaking News: Texas Comptroller Publishes Retroactive Rule Targeting IT, Pharmaceutical Retailers; Clock Running on Comment Period
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on May 20, 2016
Posted In Audits, Income Tax, Texas
On May 20, 2016, the Texas Comptroller of Public Accounts published proposed amendments to 34 Tex. Admin. Code 3.584 – relating to the reduced rate available under the Texas Franchise Tax for retailers and wholesalers – in the Texas Register. As previously reported, these proposed revisions have the potential to double the tax rate for...
Continue Reading
Unclaimed Property Litigation Update – Spring 2016
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on May 16, 2016
Posted In California, Delaware, Nationwide Importance, Pennsylvania, Unclaimed Property
Litigation over unclaimed property rules and obligations continues to accelerate. The first quarter of 2016 brought developments in several cases, including a much-watched contest over merchandise credits and a new battle between the states over which state gets the money. California Merchandise Credits Not Subject to Remittance as Unclaimed Property; Implicit Application of Derivative Rights...
Continue Reading
Alabama Appellate Court Finds Photos Merely Incidental to Nontaxable Photography Services
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on May 6, 2016
Posted In Alabama, Audits, Nationwide Importance, Sales Tax, Tax Base, Transaction Taxes
Last Friday, the Alabama Court of Civil Appeals handed the Department of Revenue (Department) a significant loss in their continued attempt to tax non-enumerated services and tangible property provided in conjunction with those services under the sales tax. See State Dep’t of Revenue v. Omni Studio, LLC, No. 2140889 (Ala. Civ. App. Apr. 29, 2016)....
Continue Reading
No Surprises in Ohio CAT Nexus Oral Argument
By Diann Smith and Stephen P. Kranz on May 4, 2016
Posted In Audits, Constitutional Issues, Nationwide Importance, Nexus, Ohio, Sales Tax, Transaction Taxes
Oral argument before the Ohio Supreme Court took place on May 3 in the three cases challenging Ohio’s Commercial Activity Tax (CAT) nexus standard. Crutchfield, Inc. v. Testa, Case No. 2015-0386; Mason Cos. Inc. v. Testa, Case No. 2015-0794; Newegg, Inc. v. Testa, Case No. 2015-0483. Ohio imposes its CAT on a business that has...
Continue Reading
