Eric D. Carstens
Subscribe to Eric D. Carstens's PostsEric 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.
District of Columbia Takes First Step to Decouple from Federal Tax Reform
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Dec 29, 2017
Posted In District of Columbia, Federal Tax, Franchise Tax, Local Tax
On December 19, 2017, DC Councilmember Mary Cheh introduced the District Tax Independence Act of 2017 (Act), which would require the Chief Financial Officer (CFO) to submit a report outlining the steps and amendments necessary to decouple the District’s tax deduction laws from federal law. As introduced, the Act would require this report by no...
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Litigation Alert | Third Circuit Reaffirms Scope of Federal Priority Rules
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Dec 7, 2017
Posted In Audits, Delaware, Procedure, Unclaimed Property
On December 4, 2017, the US Court of Appeals for the Third Circuit issued its much-anticipated precedential opinion in Marathon Petroleum Corp. et al., v. Secretary of Finance et al., No. 16-4011. The opinion affirms the Third Circuit’s existing view (described in its 2012 New Jersey Retailers Association decision) that US Supreme Court precedent permits a...
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Get Ready for the Countdown: Final Delaware Unclaimed Property Regulations Published
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Oct 5, 2017
Posted In Audits, Delaware, Unclaimed Property
On October 1, 2017, the Delaware Department of Finance published final regulations in the Register of Regulations repealing its former unclaimed property regulations and promulgating a new reporting and examination manual. See 21 DE Reg 336 (Oct. 1, 2017). The final reporting and examination regulation contains no substantive changes from the revised version that was...
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South Dakota Petitions US Supreme Court for Opportunity to Overturn Quill
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Oct 3, 2017
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, South Dakota, Transaction Taxes
On October 2, 2017, the State of South Dakota (State) filed its petition for a writ of certiorari with the United States Supreme Court (Court). A copy of the cert petition is available here and the case, South Dakota v. Wayfair, Inc. et al., is expected to be docketed on October 3, 2017. The State...
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Holders Beware: Delaware Department of State Notices to be Mailed in Two Weeks!
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Sep 29, 2017
Posted In Audits, Delaware, Unclaimed Property
In two weeks, the Delaware Secretary of State (SOS) will begin mailing notices to holders who have been identified as likely being out of compliance with Delaware unclaimed property law. Holders that do not enroll in the SOS Voluntary Disclosure Agreement Program (VDA Program) within 60 days of the mailing of this notice will be...
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South Dakota Supreme Court Rules in Favor of Remote Retailers; Next Step US Supreme Court?
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Sep 15, 2017
Posted In Constitutional Issues, Nationwide Importance, Nexus, South Dakota
Yesterday, the South Dakota Supreme Court released its much-anticipated opinion in the Wayfair litigation, affirming a March 2017 trial court decision granting the remote retailer’s motion for summary judgment on the basis that the economic nexus law enacted in 2016 (SB 106) is unconstitutional and directly violates the US Supreme Court’s dormant Commerce Clause precedent...
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MTC Marketplace Seller Voluntary Disclosure Initiative Underway
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Aug 18, 2017
Posted In District of Columbia, Incentives, Income Tax, Interest and Penalties, Massachusetts, Minnesota, Missouri, Nationwide Importance, Nexus, North Carolina, Sales Tax, Tennessee, Transaction Taxes
Yesterday, the application period opened for the limited-time MTC Marketplace Seller Voluntary Disclosure Initiative opened and it will close October 17, 2017. Since our last blog post on the topic detailing the initiatives terms, benefits and application procedure, six additional states (listed below) have signed on to participate in varying capacities. The lookback period being...
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Delaware (Re)Proposes Unclaimed Property Reporting and Examination Manual Regulation
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Aug 16, 2017
Posted In Audits, Delaware, Interest and Penalties, Unclaimed Property
On August 1, the Delaware Department of Finance (DOF) published a revised version of its proposed reporting and examination manual regulation addressing audit procedures and method of estimation. See 21 DE Reg 123 (Aug. 1, 2017). The revised proposed regulation is substantially similar to the first draft proposed earlier this year, but contains a dozen or...
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Resistance is not Always Futile: New Decision in Ongoing Delaware Unclaimed Property Audit Litigation
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Aug 14, 2017
Posted In Audits, Constitutional Issues, Delaware, New Jersey, Pennsylvania, Unclaimed Property
On August 9, 2017, the US Court of Appeals for the Third Circuit (Third Circuit), overruling the US District Court for the District of Delaware (District Court), allowed a claim by a holder seeking to prevent an unclaimed property audit by Delaware on due process grounds to proceed. See Plains All American Pipeline L.P. v....
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MTC Offers 18 State Marketplace Seller Amnesty Initiative
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Aug 8, 2017
Posted In Incentives, Income Tax, Interest and Penalties, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes
The Multistate Tax Commission (MTC) is moving quickly to implement a multistate amnesty program through its current National Nexus Program (NNP) for sellers making sales through marketplaces. The new MTC marketplace seller amnesty program is limited to remote sellers (3P sellers) that have nexus with a state solely as the result of: (1) having inventory...
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