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.
Should I Register in South Dakota?
By McDermott Will & Emery and Stephen P. Kranz on Apr 21, 2016
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, South Dakota, Transaction Taxes
Introduction On March 22, 2016, South Dakota Governor Dennis Daugaard signed into law Senate Bill 106, which requires any person making more than $100,000 of South Dakota sales or more than 200 separate South Dakota sales transactions to collect and remit sales tax. The requirement applies to sales made on or after May 1, 2016....
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Retailers, Such as IT and Pharmaceutical Vendors, Among Businesses Targeted by Texas Comptroller’s Proposed Rule Change
By Diann Smith and Stephen P. Kranz on Apr 19, 2016
Posted In Audits, Income Tax, Texas, Transaction Taxes
The Texas Comptroller of Public Accounts recently proposed amendments to 34 Tex. Admin. Code 3.584 relating to the reduced rate available under the Texas Franchise Tax for retailers and wholesalers. These proposed revisions, which appear to formalize elements of informal guidance issued in August of 2015, have the potential to substantially impact a great number...
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MTC Arm’s-Length Adjustment Service (Part II): “An Expression of Grief, Pity, or Concern”
By Diann Smith and Stephen P. Kranz on Apr 8, 2016
Posted In Audits, Income Tax, Nationwide Importance, Transfer Pricing
Executive Summary Multistate Tax Commission (MTC) transfer pricing program moving forward in some fashion; Priority includes information sharing among participating states (and possibly their third party vendors) on transfer pricing issues. Because a formal agreement was found necessary, the scope of the information shared is presumed to include taxpayer specific information; and States currently have...
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Viral Marketers Beware – In Alabama, Sales Tax Nexus Created for Out-of-State Bookseller Even Though In-State Teachers Not Acting on Behalf of Seller
By Diann Smith and Stephen P. Kranz on Mar 31, 2016
Posted In Alabama, Audits, Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes
After a quarter of a century, the school book nexus cases continue to proliferate, delight and mystify. The latest installment in the saga is from Alabama. Scholastic Book Clubs, Inc. 2931 v. State Of Alabama Department Of Revenue, Ala. Tax Tribunal, Dkt. No. S. 14-374 (March 25, 2016). Like the other cases, the question addressed...
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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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Financial Statement Countdown for Remote Sellers Selling into Alabama
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on Dec 16, 2015
Posted In Alabama, Nationwide Importance, Nexus, Sales Tax
Remote sellers making sales into Alabama have until January 1, 2016, to begin collecting sales tax regardless of their physical presence in the state or consider whether there is any impact on financial statement issues as a result of non-collection. This summer, the Alabama Department of Revenue issued a surprising new regulation, § 810-6-2-.90.03. This...
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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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Delaware Court Denies Most of Defendants’ Motion to Dismiss Unclaimed Property Gift Card False Claims Action
By Diann Smith and Stephen P. Kranz on Dec 1, 2015
Posted In Audits, Delaware, False Claims Act, Nationwide Importance, Procedure, Unclaimed Property
Two years ago, a former employee of Card Fact, LLC (subsequently purchased by Card Compliant), a company providing gift card issuance and management services to retailers, filed a false claims action in Delaware alleging that his former company and its retailer clients concocted a scheme to avoid remitting unclaimed gift card funds to Delaware. Last...
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