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.
New Delaware Unclaimed Property Decision Further Complicates Landscape
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Sep 29, 2016
Posted In Audits, Constitutional Issues, Delaware, Interest and Penalties, Nationwide Importance, Procedure, Unclaimed Property
Another federal judge slams Delaware’s unclaimed property audit methodology but rejects the holder’s reliance on the priority rules as a defense to the audit demands. See Marathon Petroleum Corp. et al. v. Cook et al., No. 1:16-cv-00080-LPS (D. Del., Sept. 23, 2016). The court recognized the unjustness of Delaware’s audit approach, but followed a previous case...
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BREAKING NEWS: House Passes Mobile Workforce State Income Tax Simplification Act
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Sep 21, 2016
Posted In Income Tax, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes
Moments ago, the United States House of Representatives (House) passed the Mobile Workforce State Income Tax Simplification Act of 2015 (H.R. 2315) Mobile Workforce State Income Tax Simplification Act of 2015 (H.R. 2315) by voice vote. The Act will now be delivered to the United States Senate (Senate) for introduction and referral to committee for...
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BREAKING NEWS: Discussion Draft of Online Sales Simplification Act of 2016 Released
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on Aug 25, 2016
Posted In Audits, Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes
Today, the Chairman of the House Judiciary Committee, Rep. Goodlatte from Virginia, released the long-anticipated discussion draft of the Online Sales Simplification Act of 2016. Highlights of the bill include: The bill implements the Chairman’s much-discussed ‘hybrid-origin’ approach. The bill removes the Quill physical presence requirements for sales tax collection obligations under certain circumstances. States...
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Settlement Reached in Temple-Inland; Delaware Internally Reviewing Unclaimed Property Audit Practices
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Aug 11, 2016
Posted In Audits, Constitutional Issues, Delaware, Nationwide Importance, Procedure, Unclaimed Property
The court case challenging Delaware’s unclaimed property audit methodologies has settled following an opinion brutalizing Delaware’s position. This settlement leaves the US District Court for the District of Delaware (District Court) holding as precedent, but the issue of what methods Delaware must jettison remains open. Last Friday, Temple-Inland and Delaware filed a joint motion to...
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Texas Comptroller’s Office Holds Roundtable on Proposed Regulation Targeting IT, Pharmaceutical Industries
By Diann Smith and Stephen P. Kranz on Aug 9, 2016
Posted In Audits, Income Tax, Texas, Transaction Taxes
On August 4, 2016, representatives of the Texas Comptroller of Public Accounts held a limited-invite roundtable to discuss the proposed amendments to 34 Tex. Admin. Code 3.584, relating to the reduced rate available under the Texas Franchise Tax for retailers and wholesalers. As previously reported, these proposed revisions were published in the Texas Register on...
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Breaking News: Physical Presence Requirement Bill Introduced in Congress
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jul 15, 2016
Posted In Audits, Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes
Yesterday, Congressman Jim Sensenbrenner (R-WI) introduced the No Regulation Without Representation Act of 2016 (H.R. 5893) in the US House of Representatives (House). The bill would codify the physical presence requirement established by the US Supreme Court in Quill. The bill would specifically define physical presence, creating a de minimis threshold, and would significantly affect...
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Pennsylvania General Assembly Passes Revenue Package with Significant Digital Tax Expansion
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jul 14, 2016
Posted In Audits, Pennsylvania, Sales Tax, Tax Base, Transaction Taxes
Yesterday, a legislative conference committee was appointed to approve an already agreed-upon $1.3 billion revenue package, which was immediately approved by both the House (116-75) and Senate (28-22) and sent to Governor Wolf for approval. The governor subsequently issued a press release confirming that he “will sign this revenue package.” A copy of the conference...
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Breaking News: Federal Court Finds Delaware’s Unclaimed Property Enforcement “Shocks the Conscience”
By Diann Smith, Eric D. Carstens and Stephen P. Kranz on Jun 29, 2016
Posted In Audits, Constitutional Issues, Delaware, Nationwide Importance, Procedure, Unclaimed Property
On June 28, 2016, the much-anticipated memorandum opinion of the US District Court for the District of Delaware in Temple-Inland, Inc. v. Cook et al., No. 14-654-GMS was released on the parties’ cross-motions for summary judgment, finding Delaware’s extrapolation methodology and audit techniques collectively violate substantive due process. According to Judge Gregory M. Sleet, “[t]o put...
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Breaking News: Tennessee Submits Proposed Economic Nexus Regulation for Publication
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jun 16, 2016
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Tennessee, Transaction Taxes
Earlier today, the Tennessee Department of Revenue (DOR) submitted a new sales and use tax regulation for publication titled “Out-of-State Dealers” (Rule 1320-06-01-.129) that would administratively create an economic nexus threshold. With the submission, Tennessee becomes the most recent addition to the growing list of states seeking to directly attack the Quill physical presence standard. ...
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Alabama Issues Remote Sellers Use Tax Assessments, Newegg Inc. Appeals
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jun 15, 2016
Posted In Alabama, Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, South Dakota, Transaction Taxes
Ever since Alabama’s new economic nexus regulation went into effect, litigation over its constitutionality has been expected given that Alabama Commissioner Julie Magee and Governor Bentley said as much when announcing it (Rule 810-6-2-.90.03, effective January 1, 2016). It appears that they finally got their wish. On June 8, 2016, Newegg Inc. (Newegg) filed a...
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