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.
Pennsylvania Cuts Corporate Tax Rate, Makes Other Changes to Corporate Tax Law
By Stephen P. Kranz and Michael J. Hilkin on Jul 14, 2022
Posted In Federal Tax, Income Tax, Local Tax, Nationwide Importance, Nexus, Pennsylvania
Pennsylvania Governor Tom Wolf has signed into law omnibus tax legislation to implement the Commonwealth’s fiscal year 2022 – 2023 budget. Among other things, the enacted legislation: (1) cuts the corporate net income tax (CNIT) rate from 9.99% to 4.99% on a phased-in basis; (2) adopts market sourcing rules for intangible-related receipts; and (3) codifies the Pennsylvania...
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“Voluntary” in Name Only? New Jersey Introduces Transfer Pricing Initiative
By Stephen P. Kranz, Diann Smith and Michael J. Hilkin on Jun 16, 2022
Posted In Audits, Income Tax, Interest and Penalties, New Jersey, Transfer Pricing
The New Jersey Division of Taxation (Division) has announced a “voluntary” transfer pricing initiative beginning June 15, 2022, and continuing through March 2, 2023. According to the Division, the initiative is targeted toward companies that have intercompany transactions that would be subject to transfer pricing adjustment. The initiative is broadly available to taxpayers with related...
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State False Claims Acts: “Knowing” Why They Matter for Tax Professionals
By Stephen P. Kranz, Michael J. Hilkin and Jonathan C. Hague on May 12, 2022
Posted In False Claims Act, Nationwide Importance
Like the federal government, many states have adopted False Claims Act (FCA) provisions that exclude tax matters from coverage. The federal model makes clear that matters under the Internal Revenue Service are not covered by the law,[1] and in the vast majority of cases, states also explicitly exclude tax from coverage.[2] However, there is a...
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Maryland Attorney General’s Office Says Taxpayers May Inform Customers of Increased Charges Resulting from Digital Advertising Tax
By Stephen P. Kranz, Michael J. Hilkin and Eric D. Carstens on May 3, 2022
Posted In Constitutional Issues, Maryland, Nationwide Importance
In a brief filed on April 29, 2022, the Maryland Attorney General’s Office (Attorney General) agreed that the “pass-through prohibition” of the state’s digital advertising tax “does not purport to impose any restriction on what the taxpayer may say to the customer, or anyone else, about” increased billing charges because of the tax. Last year,...
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Maryland Comptroller Adopts Digital Advertising Gross Revenues Tax Regulations
By Stephen P. Kranz, Eric D. Carstens and Jonathan C. Hague on Dec 3, 2021
Posted In Allocation/Appointment, Constitutional Issues, Maryland, Nationwide Importance, Procedure
On December 3, 2021, the Maryland Comptroller published notice of its adoption of the digital advertising gross revenues tax regulations (which was originally proposed on October 8, 2021). Per the Maryland Administrative Procedure Act, the final adopted regulations will go into effect in 10 calendar days, or December 13, 2021. (See Md. Code Ann., State...
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Nebraska District Court Holds That GIL 24-19-1 is Not Afforded Deference
By Stephen P. Kranz and Sarah Hogarth on Jun 24, 2021
Posted In Federal Tax, Income Tax, Local Tax, Nationwide Importance, Tax Base
Last week, the Lancaster County District Court granted the state’s motion to dismiss in COST v. Nebraska Department of Revenue. COST brought this declaratory judgment action to invalidate GIL 24-19-1, in which the department determined that earnings deemed repatriated under IRC § 965 are not eligible for the state’s dividends-received deduction and are thus subject...
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Massachusetts Supreme Judicial Court Approves Sales Tax Apportionment for Software
By Stephen P. Kranz, Richard C. Call, Mark Nebergall and Jonathan C. Hague on May 25, 2021
Posted In Allocation/Appointment, Constitutional Issues, Local Tax, Massachusetts, Nationwide Importance, Sales Tax
On May 21, 2021, the Massachusetts Supreme Judicial Court issued a decision affirming the Massachusetts Tax Appeal Board’s decision in favor of Microsoft and Oracle, ruling that the companies may apportion sales tax to other states on software purchased by a Massachusetts company from which the software was accessed and seek a tax refund. The...
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US Treasury Issues Guidance on the ARPA Claw-Back Provision
By Stephen P. Kranz, Mark Nebergall and McDermott Will & Emery on May 12, 2021
Posted In Constitutional Issues, Franchise Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
Earlier this week, the US Department of the Treasury (Treasury) issued formal guidance regarding the administration of the American Rescue Plan Act of 2021 (ARPA) claw-back provision. The guidance (Interim Final Rule) provides that the claw-back provision is triggered when there is a reduction in net tax revenue caused by changes in law, regulation or...
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Kansas Decouples from GILTI and 163j
By Stephen P. Kranz and McDermott Will & Emery on May 4, 2021
Posted In Federal Tax, Income Tax, Kansas, Tax Base
Yesterday afternoon the Kansas legislature overrode Governor Laura Kelly’s veto of Senate Bill (SB) 50, effectively enacting the provisions of the bill into law. Among those are provisions decoupling from certain Tax Cuts and Jobs Act (TCJA) provisions that taxpayers have been advocating for since 2018. Under the new law, for tax years beginning after...
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The US Department of the Treasury Says State IRC Conformity Bills Do Not Trigger Federal Relief Claw-Back Provision
By Stephen P. Kranz and Mark Nebergall on Apr 9, 2021
Posted In Constitutional Issues, Franchise Tax, Gross Receipts Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
As we’ve blogged about in the past, the recently enacted American Rescue Plan Act of 2021 (ARPA) includes an ambiguous claw-back provision. If broadly interpreted, it could result in states losing relief funding provided under the APRA if there is any state legislative or administrative change that results in the reduction of state revenue. This...
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