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.
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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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Tax Haven List Repealed by D.C. Council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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Hut, Hut, Phlmph — Florida Judge Denies Dismissal of Tax on Delivery Charges Lawsuit
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on Sep 10, 2015
Posted In Florida, Sales Tax
In the latest development in the Florida litigation regarding the taxation of delivery charges, Judge Jack Tuter of the 17th Judicial Circuit Court of Florida determined that the complaint against Pizza Hut was sufficient to withstand a motion to dismiss for failure to state a claim. Order, Lauren Minniti v. Pizza Hut of America, No....
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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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Straight Outta Delaware: JLI Invest S.A. et al. v. Cook et al.
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Aug 25, 2015
Posted In Audits, Constitutional Issues, Delaware, Procedure, Unclaimed Property
As soon as we start to think that Delaware’s unclaimed property practices and administration couldn’t possibly get any more egregious, another lawsuit like JLI Invest S.A. et al. v. Cook et al., Case No. 11274 surfaces. The facts alleged in the complaint highlight the fundamental issue of just how much “protection” state unclaimed property laws provide...
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Uniform Law Commission Completes First Reading of the Revised Uniform Unclaimed Property Act
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jul 20, 2015
Posted In Audits, Nationwide Importance, Procedure, Unclaimed Property
On Tuesday, July 14, 2015, at their Annual Meeting the Uniform Law Commission (ULC) completed their first reading of the Revised Uniform Unclaimed Property Act (RUUPA or the Act). While over half of the sections comprising the current draft of the Act were passed over due to strict time constraints imposed by the ULC President...
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Delaware Senate Passes Unclaimed Property Reform Bill
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jun 23, 2015
Posted In Audits, Delaware, Interest and Penalties, Procedure, Unclaimed Property
On June 18, 2015, a bill (S.B. 141) was unanimously approved by the Delaware Senate that would place limits on the look-back period and permanently extend the Voluntary Disclosure Agreement (VDA) program. This represents the second bill this year that seeks to implement the recommended changes contained in the Unclaimed Property Task Force’s (Task Force)...
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