Stephen P. Kranz
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Stephen (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 P. Kranz's full bio.
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....
By Stephen P. Kranz, Charles Moll, III, Troy M. Van Dongen and Elle Kaiser on Jun 16, 2020
Posted In California, False Claims Act, Illinois, Interest and Penalties, Nationwide Importance, New York, Procedure
Like the days of the Old West, last week a masked gang held up local businesses demanding their wallets. Unlike the days of the Old West, this was not the hole-in-the-wall gang, but the California State Assembly who, on June 10, 2020, approved AB 2570, a bill that authorizes tax-based false claims actions. If passed, AB...
By Stephen P. Kranz, Kathleen M. Quinn and Fahad Mithavayani on Jun 15, 2020
Posted In California, Franchise Tax, Income Tax, Nationwide Importance
A concerning bill is pending in the California Senate. SB-972 would require the California State Controller’s Office (the Controller) to make taxpayer information publicly available. The bill would require that the Controller post on its website a list of all taxpayers subject to the California corporation tax with gross receipts of $5 billion or more...
By Stephen P. Kranz, Charles Moll, III, Troy M. Van Dongen, Elle Kaiser and McDermott Will & Emery on Jun 4, 2020
Posted In California, False Claims Act, Illinois
Recently, AB 2570 has cleared the Assembly Appropriations Committee, which authorizes tax-based false claims actions—allowing private, profit-motivated parties to bring punitive civil enforcement lawsuits. The bill is now on the Assembly floor for consideration and faces a June 19 house-of-origin deadline for passage. The bill is similar to a bill that failed to pass last...
By Kathleen M. Quinn, Alysse McLoughlin, Stephen P. Kranz and McDermott Will & Emery on May 18, 2020
Posted In Local Tax, Maryland, Oregon, Washington
On May 8, Washington’s 1.2% surtax on “specified financial institutions” (banks with at least $1 billion a year in net revenue) was struck down by a King County Superior Court judge. Judge Marshall Ferguson ruled that the tax, which is imposed on top of all other taxes, violates the Commerce Clause of the US Constitution...
By Stephen P. Kranz, Elle Kaiser, Charles Moll, III and Troy M. Van Dongen on May 12, 2020
Posted In California, False Claims Act, Illinois
California’s bill to authorize tax-based false claims actions—allowing private, profit-motivated parties to bring punitive civil enforcement lawsuits—cleared the Assembly Judiciary Committee on May 11 in a party-line vote. The bill, AB 2570, is sponsored by the committee’s chair, Assemblymember Mark Stone (D), and has strong backing from Attorney General Xavier Becerra. It now goes to...
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...
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...
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...
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”...