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.
Victory? Delaware Suggests an End to Contingency Compensation for Unclaimed Property Contract Auditors
By Diann Smith and Stephen P. Kranz on Jan 17, 2020
Posted In Audits, Delaware, Unclaimed Property
For years, Delaware has used contract audit firms to enforce their unclaimed property laws and paid them based, at least partially, on the amount recovered. Motivated by this financial reward and empowered as an agent of the state, the contract-auditing firms with the State’s complicity harass holders, inflate liabilities by deploying aggressive estimation techniques and...
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Vermont Bill Would Repeal Cloud Software Tax Exemption
By Eric D. Carstens and Stephen P. Kranz on Jan 17, 2020
Posted In Nationwide Importance, Sales Tax, Tax Base, Vermont
On January 16, a bill (H. 756) was introduced in the Vermont Assembly that would repeal the sales and use tax exemption for remotely accessed prewritten computer software. If enacted as introduced, the exemption would no longer protect Vermont taxpayers from this legally suspect tax beginning July 1, 2020. This is not the first time...
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Plaintiffs’ Lawyers Descend as DC Considers False Claims Act Expansion Again!
By Eric D. Carstens and Stephen P. Kranz on Jan 16, 2020
Posted In False Claims Act, Nationwide Importance
The D.C. Council is once again preparing to consider legislation (B23-0035; the False Claims Amendment Act of 2019) that would authorize tax-based false claims actions, allowing private, profit-motivated parties to bring punitive civil enforcement lawsuits—a practice that is prohibited under current law consistent with the vast majority of other states with similar laws. The Committee...
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New Trend Developing? Another Digital Advertising Tax Proposal
By Diann Smith and Stephen P. Kranz on Jan 15, 2020
Posted In Constitutional Issues, Nationwide Importance, Nebraska, Sales Tax, Tax Base, Transaction Taxes
On January 14, LB 989 was introduced in the Nebraska Legislature, which would impose sales and use tax on “the retail sale of digital advertisements.” The bill defines “digital advertisement” as “an advertising message delivered over the Internet that markets or promotes a particular good, service, or political candidate or message” (see pages 5-6 of...
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BREAKING NEWS: Maryland Proposes (French) Tax on Advertising – Digital Platforms and Advertisers Beware!
By Diann Smith and Stephen P. Kranz on Jan 10, 2020
Posted In Constitutional Issues, Maryland, Sales Tax, Transaction Taxes
On January 8, SB 2 was introduced to establish a new digital advertising gross revenue tax of up to 10% on “annual gross revenues of a person derived from digital advertising services in the state.” This uncharted new tax would make Maryland the first state or locality in the United States to impose a targeted...
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Gross Receipts Taxes Face Policy and Legal Challenges
By Diann Smith and Stephen P. Kranz on Sep 24, 2019
Posted In Constitutional Issues, Gross Receipts Tax, Local Tax, Nationwide Importance
“Generally, the only places with gross receipts taxes today are U.S. states and developing countries.” –Professor Richard Pomp, University of Connecticut As the economy shifts to a digital one, we are finding that states are turning toward unconventional revenue options. One trend we’re seeing is the surprising comeback of the gross receipts tax (GRT): Oregon’s...
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Vultures Circling as Bill to Expand California FCA to Tax Looms in Legislature
By Charles Moll, III, Diann Smith, Stephen P. Kranz and Troy M. Van Dongen on Aug 26, 2019
Posted In California, False Claims Act, Interest and Penalties, Nationwide Importance, Procedure
Legislators in Sacramento are mulling over one of the most (if not the most) troubling state and local tax bills of the past decade. AB 1270, introduced earlier this year and passed by the Assembly in late May, would amend the California False Claims Act (CFCA) to remove the “tax bar,” a prohibition that exists...
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BREAKING NEWS: New Jersey Is GILTI, Again!
By Stephen P. Kranz on Aug 23, 2019
Posted In Federal Tax, Income Tax, New Jersey, Tax Base
Taxpayers may have celebrated too soon when the New Jersey Division of Taxation announced that it was withdrawing TB-85 and the GDP-based apportionment regime for global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII) in favor of a more fair apportionment regime. Read our first post on T8-85 here. Yesterday, the Division issued a...
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BREAKING NEWS: New Jersey Is Not GILTI! The Division Withdraws TB-85
By Stephen P. Kranz on Aug 20, 2019
Posted In Federal Tax, Income Tax, Tax Base
Many New Jersey taxpayers have a reason to celebrate today as the Division of Taxation withdrew Technical Bulletin-85, providing for a special apportionment regime for global intangible low-taxed income (GILTI) and income used to compute the foreign-derived intangible income (FDII) deduction that many felt was unfair and potentially unconstitutional. In December 2018, the New Jersey...
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Batten Down the Hatches: Digital Tax Nor’easter Coming This Fall
By Eric D. Carstens, Mark Nebergall and Stephen P. Kranz on Jun 28, 2019
Posted In Connecticut, Rhode Island, Sales Tax, Tax Base
Recently passed budget legislation in both Connecticut and Rhode Island included tax increases on sales of digital goods and services. The Connecticut bill has been signed into law. The Rhode Island bill passed late last night awaits executive action. Below are brief summaries of the impacts of these bills on the sales taxation of digital...
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