Eric Carstens
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Eric D. Carstens focuses his practice on state and local tax matters, assisting clients with state tax controversy, compliance and multistate planning across all states for a variety of tax types and unclaimed property. Eric engages in all forms of taxpayer advocacy, including litigation, legislative monitoring and audit defense. He works closely with several of the Firm's taxpayer coalitions focused on specific state tax policy issues such as the taxation of digital goods and services and unclaimed property. Read Eric D. Carstens' full bio.
DC Council Expands False Claims Act to Tax Claims
By Stephen P. Kranz, Diann Smith and Eric Carstens on Dec 1, 2020
Posted In District of Columbia, False Claims Act, Nationwide Importance
The DC Council has passed an amended bill (the False Claims Amendment Act of 2020, B23-0035) that beginning as early as January 2021 will allow tax-related false claims to be raised against large taxpayers for up to 10 years of prior tax periods! This troubling legislation creates a real and imminent possibility of prior tax...
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False Claims Act Tax Expansion Bill Advanced by DC Council
By Stephen P. Kranz, Diann Smith and Eric Carstens on Nov 17, 2020
Posted In District of Columbia, False Claims Act, Illinois, Nationwide Importance, New York
The DC Council has once again advanced a bill (the False Claims Amendment Act, B23-0035) that would allow tax-related false claims against large taxpayers! The bill passed a first reading of the Committee of the Whole on Tuesday, November 17, 2020, by a vote of 8-5. The bill is sponsored by Councilmember Mary Cheh, who...
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New York Legislation Proposes to Retroactively Remove FCA Culpability Standard for Tax Law Claims
By Stephen P. Kranz, Diann Smith and Eric Carstens on Oct 14, 2020
Posted In False Claims Act, Nationwide Importance, New York
With Halloween just a few weeks away, a scary proposal is brewing in the New York State Legislature that should give taxpayers chills. Companion bills Assembly Bill 11066 and Senate Bill 8872 were recently introduced by committee chairs (Assembly Ways and Means Chairwoman Helene Weinstein and Senate Committee on Judiciary Chairman Brad Hoylman). This legislation...
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Business Victorious in Unclaimed Gift Card False Claims Case
By Diann Smith, Stephen P. Kranz and Eric Carstens on Jun 26, 2020
Posted In Delaware
The Delaware Supreme Court gave Overstock.com a win in a False Claims Act (FCA) suit alleging the retailer failed to remit unclaimed gift card funds to the state. Overstock.com Inc. v. the State of Delaware and French, DE Sup. Ct., No. 327,2019 (June 25, 2020). A jury previously found Overstock liable for approximately $7.3 million....
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Maryland General Assembly Sends Digital Advertising Tax to Governor; Nearly Identical Bill Pending in New York
By Eric 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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Vermont Bill Would Repeal Cloud Software Tax Exemption
By Eric 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 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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Batten Down the Hatches: Digital Tax Nor’easter Coming This Fall
By Mark Nebergall, Eric Carstens 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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Kentucky to Begin Taxing Video Streaming Services under Telecom Tax
By Mark Nebergall, Eric Carstens and Stephen P. Kranz on May 24, 2019
Posted In Kentucky, Sales Tax, Tax Base, Transaction Taxes
Legislators in Frankfort added a new “video streaming service” tax to the omnibus tax bill (HB 354) as part of a closed-door conference committee process before the bill was hastily passed in the House and Senate. Notably, the new video streaming service tax was not previously raised or discussed as part of HB 354 (or...
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Nevada Bill Proposes Broad New Excise Tax on Sales of Digital Goods and Services
By Eric Carstens, Mark Nebergall and Stephen P. Kranz on Apr 2, 2019
Posted In Nevada, Tax Base, Transaction Taxes
A bill (AB 447) was introduced on March 25th in the Nevada Assembly that would create a broad new excise tax on the retail sale of “specified digital products” to Nevada customers. Instead of expanding the scope of Nevada’s sales and use tax, the bill would enact an entirely new chapter of the Revenue and...
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