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.
Remote Transactions Parity Act Introduced in the U.S. House
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jun 15, 2015
Posted In Audits, Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes
Today, Representative Jason Chaffetz introduced H.R. 2775, the Remote Transactions Parity Act of 2015 (RTPA), in the United States House of Representatives (House). The RTPA addresses the Internet sales tax issue using the structure of the Marketplace Fairness Act (MFA), which passed the Senate in 2013 and was re-introduced earlier this year. Although the RTPA retains...
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Tax Amnesty Hits the Midwest (and Beyond)
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jun 12, 2015
Posted In Arizona, Audits, Income Tax, Indiana, Interest and Penalties, Local Tax, Maryland, Missouri, Oklahoma, Property Tax, Sales Tax, South Carolina, Tax Base, Transaction Taxes
With many state legislatures wrapping up session within the past month or so, there has been a flurry of last-minute tax amnesty legislation passed. Nearly a half-dozen states have authorized upcoming tax amnesty periods. These tax amnesties include a waiver of interest and, in some circumstances, allow taxpayers currently under audit or with an appeal...
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Arizona ALJ: Remote Provider of Subscription Research Service is the Lessor of Tangible Personal Property
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on May 15, 2015
Posted In Alabama, Arizona, Idaho, Nationwide Importance, Sales Tax, Tax Base, Transaction Taxes
In a curious decision out of Arizona, an Administrative Law Judge (ALJ) found an out-of-state provider of online research services was properly assessed transaction privilege tax (TPT, Arizona’s substitute for a sales tax) based on the logic that the provider was renting tangible personal property to in-state customers. The Office of Administrative Hearings (OAH) decision,...
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D.C. Proposes Law to Allow Indefinite Suspension of Limitation Period for Assessment and Collection
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on May 6, 2015
Posted In Audits, District of Columbia, Income Tax, Procedure, Sales Tax, Transaction Taxes
The Fiscal Year 2016 Budget Support Act of 2015 (BSA), introduced by the Washington, D.C. Council at the request of Mayor Muriel Bowser on April 2, 2015, contains a subtitle (see Title VII, Subtitle G, page 66-67) that would give the Office and Tax and Revenue (OTR) complete discretion to indefinitely suspend the period of...
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Maryland Offers Attractive Amnesty Program – Even for Taxpayers Under Audit!
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Apr 23, 2015
Posted In Income Tax, Interest and Penalties, Local Tax, Maryland, Sales Tax, Transaction Taxes
Starting September 1, 2015, the Comptroller of Maryland (Comptroller) will offer qualifying taxpayers that failed to file or pay certain taxes an opportunity to remit tax under very attractive penalty and interest terms. The 2015 Tax Amnesty Program (Program) is the first offered in Maryland since 2009, when the state raised nearly $30 million, not...
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District of Columbia’s Transfer Pricing Enforcement Program and Combined Reporting Regime: Taking Two Bites of the Same Apple
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on Apr 20, 2015
Posted In Allocation/Apportionment, Audits, District of Columbia, Income Tax, Local Tax, Tax Base, Transfer Pricing
In his recent article, “A Cursory Analysis of the Impact of Combined Reporting in the District”, Dr. Eric Cook claims that the District of Columbia’s (D.C. or the District) newly implemented combined reporting tax regime is an effective means of increasing tax revenue from corporate taxpayers, but it will have little overlap with D.C.’s ongoing...
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Delaware’s Unclaimed Property Audit Program Dealt Blow
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on Mar 13, 2015
Posted In Constitutional Issues, Delaware, Unclaimed Property
The judge in a case challenging Delaware’s use of sampling and extrapolation to determine unclaimed property liability denied the state’s motion to dismiss and in doing so, seriously questioned the State’s approach. Temple-Inland v. Cook, U.S. Dist. Ct. (DE), Civ. No. 14-654-SLR (3/11/2015). Temple-Inland brought a suit against the State following an unclaimed property audit...
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Let the Training Begin: MTC Transfer Pricing Audits Draw Near
By McDermott Will & Emery, Diann Smith, Eric D. Carstens and Stephen P. Kranz on Mar 6, 2015
Posted In Income Tax, Nationwide Importance, North Carolina, Tax Base, Transfer Pricing
Deputy Executive Director Greg Matson (a nice guy at heart) announced this week that the Multistate Tax Commission (MTC) has hired its first transfer pricing training consultant and is scheduled to begin training state auditors. The training, titled “Identifying Related Party Issues in Corporate Tax Audits” will be hosted by the North Carolina Department of...
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SCOTUS: Colorado Notice and Reporting Challenge Not Barred by the Tax Injunction Act
By Arthur R. Rosen, Eric D. Carstens and Stephen P. Kranz on Mar 3, 2015
Posted In Colorado, Constitutional Issues, Nationwide Importance, Procedure, Sales Tax, Transaction Taxes
The United States Supreme Court released a unanimous decision today holding that the Tax Injunction Act (TIA), 28 U.S.C. § 1391, does not bar suit in federal court to enjoin the enforcement of Colorado notice and reporting requirements imposed on noncollecting out-of-state retailers. See Direct Marketing Ass’n v. Brohl, No. 13-1032, 575 U.S. ___ (March...
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MTC Puts Designs on Increasing State Transfer Pricing Revenues
By Diann Smith and Stephen P. Kranz on Feb 6, 2015
Posted In Income Tax, Transfer Pricing
This past December, the Multistate Tax Commission’s (MTC) transfer pricing advisory committee and its project facilitator Dan Bucks recommended what it calls the “preliminary design” approach for a proposed Arm’s Length Adjustment Services (ALAS) program. While still subject to approval, states already anticipate that the program will increase their state transfer pricing revenues. The MTC...
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