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.
Iowa Responds to McDermott’s Call to Drop Unnecessary or Dangerous Tax Administration Requirements
By Stephen P. Kranz and McDermott Will & Emery on Apr 14, 2020
Posted In Federal Tax, Income Tax, Interest and Penalties, Iowa, Nationwide Importance, Property Tax, Sales Tax
In late March, we wrote an open letter to state tax administrators requesting that they take steps to relieve undue tax administration burdens in the wake of the COVID-19 situation. We gave five suggestions, including postponing deadlines for tax filing and payment, waiving requirements to use hard-copy documents or checks, suspending accrual of interest on...
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Tax Commissioners: Please Drop Unnecessary or Dangerous Tax Administration Requirements
By Stephen P. Kranz and McDermott Will & Emery on Mar 27, 2020
Posted In Federal Tax, Income Tax, Interest and Penalties, Local Tax, Nationwide Importance, Sales Tax
This week we wrote a letter to state tax administrators, sharing five key suggestions for relieving undue tax administration burdens in the wake of this difficult COVID-19 situation. As explained, “at a time when many people are working from home and should not or cannot go to post offices or banks, a business-as-usual attitude for...
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New State Digital Ad Taxes? Will Maryland’s Take Effect? Which States Will Follow? Litigation Guaranteed!
By Diann Smith and Stephen P. Kranz on Mar 25, 2020
Posted In Allocation/Apportionment, Constitutional Issues, Maryland, Nationwide Importance, Tax Base, Transaction Taxes
On March 18, 2020, Maryland legislature sent a massive new tax on digital advertising services to Governor Hogan for consideration. The tax imposes a rate of up to 10% on annual gross revenue in the state derived from digital advertising services. This tax is on a sliding scale based on companies’ global revenues and would...
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Maryland General Assembly Sends Digital Advertising Tax to Governor; Nearly Identical Bill Pending in New York
By Eric D. Carstens and Stephen P. Kranz on Mar 18, 2020
Posted In Allocation/Apportionment, Constitutional Issues, Maryland, Nationwide Importance, New York, Transaction Taxes
With gatherings larger than 50 people banned and the State House cleared of visitors, on March 18, 2020, Maryland’s legislature approved HB 732, which contains a massive new punitive tax on digital advertising services, and sent it to Governor Larry Hogan (R) for his consideration. Digital Advertising Gross Revenues Tax Contradicting the clear legislative trend...
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BREAKING NEWS: Nebraska Bill Clarifies GILTI and Repatriation Are Deductible
By Stephen P. Kranz on Jan 23, 2020
Posted In Federal Tax, Income Tax, Nebraska, Tax Base
Most states have historically not subjected foreign-source income to state income tax. Consequently, since the passage of TCJA, the vast majority of states have opted not to tax GILTI (with most states explicitly decoupling from GILTI or excluding at least 95% of GILTI from the state tax base) or repatriation income (only five states have...
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BREAKING NEWS: New York Considers 5% Gross Receipts Tax on Almost Every Corporation
By Diann Smith and Stephen P. Kranz on Jan 22, 2020
Posted In Constitutional Issues, Gross Receipts Tax, Local Tax, New York, Tax Base
On January 21, A. 9112 was introduced in the New York Assembly. An identical Senate companion bill, S. 6102, has been referred to the Senate Budget & Revenues Committee after being introduced in May 2019. The bills would impose an additional 5% tax on the gross income of “every corporation which derives income from the...
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Victory? Delaware Suggests an End to Contingency Compensation for Unclaimed Property Contract Auditors
By Diann Smith and Stephen P. Kranz on Jan 17, 2020
Posted In Audits, Delaware, Unclaimed Property
For years, Delaware has used contract audit firms to enforce their unclaimed property laws and paid them based, at least partially, on the amount recovered. Motivated by this financial reward and empowered as an agent of the state, the contract-auditing firms with the State’s complicity harass holders, inflate liabilities by deploying aggressive estimation techniques and...
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Vermont Bill Would Repeal Cloud Software Tax Exemption
By Eric D. Carstens and Stephen P. Kranz on Jan 17, 2020
Posted In Nationwide Importance, Sales Tax, Tax Base, Vermont
On January 16, a bill (H. 756) was introduced in the Vermont Assembly that would repeal the sales and use tax exemption for remotely accessed prewritten computer software. If enacted as introduced, the exemption would no longer protect Vermont taxpayers from this legally suspect tax beginning July 1, 2020. This is not the first time...
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Plaintiffs’ Lawyers Descend as DC Considers False Claims Act Expansion Again!
By Eric D. Carstens and Stephen P. Kranz on Jan 16, 2020
Posted In False Claims Act, Nationwide Importance
The D.C. Council is once again preparing to consider legislation (B23-0035; the False Claims Amendment Act of 2019) that would authorize tax-based false claims actions, allowing private, profit-motivated parties to bring punitive civil enforcement lawsuits—a practice that is prohibited under current law consistent with the vast majority of other states with similar laws. The Committee...
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New Trend Developing? Another Digital Advertising Tax Proposal
By Diann Smith and Stephen P. Kranz on Jan 15, 2020
Posted In Constitutional Issues, Nationwide Importance, Nebraska, Sales Tax, Tax Base, Transaction Taxes
On January 14, LB 989 was introduced in the Nebraska Legislature, which would impose sales and use tax on “the retail sale of digital advertisements.” The bill defines “digital advertisement” as “an advertising message delivered over the Internet that markets or promotes a particular good, service, or political candidate or message” (see pages 5-6 of...
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