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.
Hearing Scheduled for DC False Claims Expansion – Taxpayers Beware!
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Dec 10, 2018
Posted In District of Columbia, False Claims Act, Nationwide Importance
DC Council Chairman Phil Mendelson recently announced that a public hearing will take place later this month before the Committee of the Whole to consider a bill (The False Claims Amendment Act of 2017, B22-0166) that would allow tax-related false claims against large taxpayers. The hearing will begin at 9:30 am on Thursday, December 20,...
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STAR Partnership and State Responses to GILTI
By Diann Smith and Stephen P. Kranz on Nov 27, 2018
Posted In Federal Tax, Nationwide Importance, Tax Base
While the state treatment of global intangible low-taxed income (GILTI) was on the mind of many taxpayers, most state legislatures that enacted legislation in 2018 focused on the state treatment of foreign earnings deemed repatriated under IRC § 965, leaving the state treatment of GILTI unclear in many states. That said, of the states that...
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2018 Recap: State Responses to the Repatriation Transition Tax in the Tax Cuts and Jobs Act
By Diann Smith and Stephen P. Kranz on Nov 26, 2018
Posted In Federal Tax, Income Tax, Nationwide Importance, Tax Base
Since the Tax Cuts and Jobs Act (TCJA) passed in December 2017, over 100 bills were proposed by state legislatures responding to the federal legislation. Thus far in 2018, nearly half of states have passed legislation responding to the TCJA. With some exceptions, in this year’s legislative cycles the state legislatures were primarily focused on...
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Federal Digital Goods Bill: Rules of the Road for State Sales and Use Taxation of Digital Goods and Services
By Eric D. Carstens, Mark Nebergall and Stephen P. Kranz on Oct 11, 2018
Posted In Nationwide Importance, Sales Tax, Uncategorized
Today, US Senators John Thune (R-SD) and Ron Wyden (D-OR) filed the Digital Goods and Services Tax Fairness Act of 2018 (S.3581) for reintroduction in the United States Senate. A companion version is expected to be reintroduced tomorrow in the House of Representatives by Representatives Lamar Smith (R-TX) and Steve Cohen (D-TN). This bill, if...
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House Judiciary Committee to Consider Wayfair Decision Impact
By McDermott Will & Emery, Eric D. Carstens, Mark Nebergall and Stephen P. Kranz on Jul 20, 2018
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax
The US House Committee on the Judiciary has scheduled a hearing for Tuesday, July 24 at 10:00 am EDT in 2141 Rayburn House Office Building. According to a press release circulated last night, the topic of the hearing will be “[e]xamining the Wayfair decision and its ramifications for consumers and small businesses.” According to comments made by...
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BREAKING NEWS: US Supreme Court Overrules Quill
By McDermott Will & Emery, Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jun 21, 2018
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, South Dakota, Transaction Taxes
Moments ago, the US Supreme Court issued its highly-anticipated decision in South Dakota v. Wayfair, Inc., et al., No. 17-494. The 5-4 opinion was authored by Justice Kennedy and concluded that the physical presence requirement established by the Court in its 1967 National Bellas Hess decision and reaffirmed in 1992 in Quill is “unsound and incorrect”...
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McDermott Defeats New York False Claims Act Case Alleging Starbucks Failed to Collect and Remit Sales Tax
By McDermott Will & Emery, Joseph B. Evans, Stephen P. Kranz and Todd Harrison on May 31, 2018
Posted In Audits, False Claims Act, Nationwide Importance, New York, Sales Tax, Transaction Taxes
On April 9, 2018, the New York State Supreme Court granted Starbucks’ motion to dismiss claims that it had failed to collect more than $10 million of sales tax at its New York stores. Lawyers from McDermott’s State and Local Tax (SALT) group and its White Collar and Securities Defense team handled the matter. A...
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Overview of Minnesota’s Response to Federal Tax Reform
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Mar 29, 2018
Posted In Federal Tax, Income Tax, Local Tax, Minnesota, Nationwide Importance
Minnesota has several bills pending that would address the Minnesota state tax implications of various provisions of the federal tax reform legislation (commonly referred to as the Tax Cuts and Jobs Act). HF 2942 HF 2942 was introduced in the House on February 22, 2018. This bill would provide conformity to the Internal Revenue Code...
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Illinois Confirms Treatment of Deemed Repatriated Foreign Earnings Provisions
By Diann Smith and Stephen P. Kranz on Mar 23, 2018
Posted In Federal Tax, Illinois, Income Tax, Nationwide Importance, Tax Base
On Wednesday, the Illinois Department of Revenue (Department) issued additional guidance concerning its treatment of the new deemed repatriated foreign earnings provisions found in Internal Revenue Code Section 965, enacted in the federal tax reform bill (known as the Tax Cuts and Jobs Act, or “TCJA”). The Department confirmed key aspects of Illinois’ treatment of...
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BREAKING: Indiana Enacts Cloud Software Tax Exemption
By Eric D. Carstens and Stephen P. Kranz on Mar 23, 2018
Posted In Arizona, Indiana, Nationwide Importance, Sales Tax, Tax Base
This morning, Indiana Governor Eric Holcomb signed a bill into law that will exempt cloud-based software transactions from State Gross Retail and Use Taxes, effective July 1, 2018. The signing took place at the headquarters of Indiana-based cloud service provider DemandJump, Inc. Specifically, Senate Enrolled Act No. 257 (which was unanimously passed by both chambers...
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