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.
Alert: California False Claims Expansion Bill Preparing to Advance
By Charles Moll, III, Stephen P. Kranz and McDermott Will & Emery on May 8, 2020
Posted In California, False Claims Act, Illinois, Nationwide Importance
The revived False Claims expansion bill in California, A.B. 2570, is on the agenda to be heard by the Assembly Judiciary Committee on May 11 at 10:00 am PDT. The proposal would authorize tax-based false claims actions, allowing private, profit-motivated parties to bring punitive civil enforcement lawsuits—an abusive practice that is prohibited under current law...
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Déjà Vu – Marketplace Model Debate May Resume Again
By Diann Smith, Stephen P. Kranz and McDermott Will & Emery on Apr 20, 2020
Posted In Nationwide Importance, Nexus, Sales Tax, Transaction Taxes
The debate over state marketplace laws may resume again, after the Uniform Law Commission (ULC) announced it has set up a committee to study whether to draft a uniform state law on online sales tax collection, focusing on marketplaces. The study committee is chaired by Utah Sen. Lyle Hillyard. The lead staffer (“reporter”) will be...
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The Digital Advertising Tax Trend Continues: New York Introduces Another Bill
By Stephen P. Kranz and McDermott Will & Emery on Apr 15, 2020
Posted In Nationwide Importance, New York, Sales Tax, Transaction Taxes
On April 13, S. 8166 was introduced in the New York Senate, which would expand the sales tax base to include receipts from the sale of digital advertising services. The bill would dedicate the revenue raised to student loan relief. As introduced, “digital advertising services” would be broadly defined as “advertisement services on a digital...
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DC and New Jersey Join Mississippi in Disregarding Coronavirus-Caused Remote Work for Tax Purposes
By Stephen P. Kranz and McDermott Will & Emery on Apr 14, 2020
Posted In District of Columbia, Federal Tax, Franchise Tax, Income Tax, Mississippi, Nationwide Importance, New Jersey, Nexus
As part of our open letter to state tax administrators urging relief of undue tax administration burdens in light of COVID-19, we urged the disregarding of remote work for tax purposes. The public health necessity for businesses to close central operations and direct employees to work from home should not be used as an “opportunity”...
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Iowa Responds to McDermott’s Call to Drop Unnecessary or Dangerous Tax Administration Requirements
By Stephen P. Kranz and McDermott Will & Emery on Apr 14, 2020
Posted In Federal Tax, Income Tax, Interest and Penalties, Iowa, Nationwide Importance, Property Tax, Sales Tax
In late March, we wrote an open letter to state tax administrators requesting that they take steps to relieve undue tax administration burdens in the wake of the COVID-19 situation. We gave five suggestions, including postponing deadlines for tax filing and payment, waiving requirements to use hard-copy documents or checks, suspending accrual of interest on...
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Tax Commissioners: Please Drop Unnecessary or Dangerous Tax Administration Requirements
By Stephen P. Kranz and McDermott Will & Emery on Mar 27, 2020
Posted In Federal Tax, Income Tax, Interest and Penalties, Local Tax, Nationwide Importance, Sales Tax
This week we wrote a letter to state tax administrators, sharing five key suggestions for relieving undue tax administration burdens in the wake of this difficult COVID-19 situation. As explained, “at a time when many people are working from home and should not or cannot go to post offices or banks, a business-as-usual attitude for...
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New State Digital Ad Taxes? Will Maryland’s Take Effect? Which States Will Follow? Litigation Guaranteed!
By Diann Smith and Stephen P. Kranz on Mar 25, 2020
Posted In Allocation/Apportionment, Constitutional Issues, Maryland, Nationwide Importance, Tax Base, Transaction Taxes
On March 18, 2020, Maryland legislature sent a massive new tax on digital advertising services to Governor Hogan for consideration. The tax imposes a rate of up to 10% on annual gross revenue in the state derived from digital advertising services. This tax is on a sliding scale based on companies’ global revenues and would...
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Maryland General Assembly Sends Digital Advertising Tax to Governor; Nearly Identical Bill Pending in New York
By Eric D. Carstens and Stephen P. Kranz on Mar 18, 2020
Posted In Allocation/Apportionment, Constitutional Issues, Maryland, Nationwide Importance, New York, Transaction Taxes
With gatherings larger than 50 people banned and the State House cleared of visitors, on March 18, 2020, Maryland’s legislature approved HB 732, which contains a massive new punitive tax on digital advertising services, and sent it to Governor Larry Hogan (R) for his consideration. Digital Advertising Gross Revenues Tax Contradicting the clear legislative trend...
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BREAKING NEWS: Nebraska Bill Clarifies GILTI and Repatriation Are Deductible
By Stephen P. Kranz on Jan 23, 2020
Posted In Federal Tax, Income Tax, Nebraska, Tax Base
Most states have historically not subjected foreign-source income to state income tax. Consequently, since the passage of TCJA, the vast majority of states have opted not to tax GILTI (with most states explicitly decoupling from GILTI or excluding at least 95% of GILTI from the state tax base) or repatriation income (only five states have...
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BREAKING NEWS: New York Considers 5% Gross Receipts Tax on Almost Every Corporation
By Diann Smith and Stephen P. Kranz on Jan 22, 2020
Posted In Constitutional Issues, Gross Receipts Tax, Local Tax, New York, Tax Base
On January 21, A. 9112 was introduced in the New York Assembly. An identical Senate companion bill, S. 6102, has been referred to the Senate Budget & Revenues Committee after being introduced in May 2019. The bills would impose an additional 5% tax on the gross income of “every corporation which derives income from the...
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