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.
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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More States Respond to Federal Tax Reform
By Diann Smith and Stephen P. Kranz on Mar 19, 2018
Posted In Federal Tax, Idaho, Income Tax, Iowa, Minnesota, Nationwide Importance, New York, Tax Base
It’s been nearly three months since the federal tax reform bill (commonly referred to as the Tax Cuts and Jobs Act, or “TCJA”) was enacted and states continue to respond to the various provisions of the TCJA. Recently, there have been notable legislative efforts in New York, Idaho, Iowa and Minnesota. New York Starting with...
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Southeast States Respond to Federal Tax Reform and NJ Senate Leader Talks Tax Surcharge to Limit Corporate “Windfall”
By Diann Smith and Stephen P. Kranz on Mar 9, 2018
Posted In Federal Tax, Georgia, Income Tax, Nationwide Importance, New Jersey, Tax Base, Virginia
Virginia and Georgia are two of the latest states to pass laws responding to the federal tax reform passed in December 2017, known as the Tax Cuts and Jobs Act (TCJA). Both states updated their codes to conform to the current Internal Revenue Code (IRC) with some notable exceptions. Virginia On February 22, 2018, and...
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Update on State Responses to Federal Tax Reform: Illinois and Oregon
By Diann Smith and Stephen P. Kranz on Mar 8, 2018
Posted In Federal Tax, Illinois, Income Tax, Nationwide Importance, Oregon, Tax Base
States are moving to advance different solutions in their efforts to address federal tax reform. Illinois recently introduced legislation to addback the new deduction for foreign-derived intangible income (a topic we’ve previously covered), and its Department of Revenue has issued its position on other aspects of federal reform. Oregon, after resolving a controversy between its...
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McDermott’s Take on State Tax after Reform
By Diann Smith, Mark Nebergall and Stephen P. Kranz on Mar 1, 2018
Posted In Constitutional Issues, Income Tax, Local Tax, Nationwide Importance, Sales Tax
Due to the current impact and the likelihood that states will consider legislation and agency guidance addressing federal tax reform implications for state business taxes, a united, effective, nationwide advocacy effort is needed to ensure the issues are consistently addressed on a multi-state basis. In preparation for anticipated ramifications, a multi-state coalition will need to...
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Tax Takes Video: State Tax after Reform…Where Are We Going?
By Diann Smith and Stephen P. Kranz on Feb 21, 2018
Posted In Allocation/Apportionment, Income Tax, Nationwide Importance, Tax Base
Determining financial statement impact from the state flow through of federal tax reform will be complicated by changes in state tax policy expected to be adopted. In our latest Tax Takes video, McDermott’s Steve Kranz and Diann Smith discuss the issues with Joe Henchman, Executive Vice President of the Tax Foundation. The group suggests options for companies...
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