Late summer yields flowers, and soon after fruits mature on the plant. It is found mostly in shady locations in moist or dry soil. It can be pulled from moist soil or mowed in late summer before the seeds are produced. The best way to control Japanese Stilt Grass is with very early spring pre-emergence herbicides. It can also be managed in the summer with certain post-emergence herbicides that are labeled for the control of summer annual grassy weeds.
Source: Lawn Care and Maintenance at ProLawnPlus.com

Hand pulling: If you have a small or manageable patch of Japanese stilt grass, hand pulling is a viable option. This annual grass is capable of producing a prodigious number of seeds that end up in the soil seed bank. Physical removal can encourage seed from previous seasons to germinate and grow in the disturbed soil, so you need to be mindful of when you pull the grass.

Mowing: For large areas, mowing or weed-whacking are good options. These methods are best done late in the season (August through early September), before the grass flowers and forms seeds.

Pre-emergent crabgrass preventer:
Agway recommended Dow Dimension® Specialty Herbicide (Dithiopyr)
The Belle Mead Co-Op recommended Dimension and Preen Crabgrass Control (Dithiopyr, Dipropylene glycol)

Ohio State and the National Park Service recommended the following which are EPA restricted to licensed landscapers.
Pendimethalin (Pendulum®, AquaCap™)
and Imazapic (Plateau®, Journey®)

When to Apply:
Early spring (Before soil temperatures reach 50-52° F for 24-48 hours - When Forsythia blooms) and July.

Spraying and Burning: Will also kill lawn
Source: E Tip of the Week: Removing Invasive Japanese Stilt Grass | NY Botanical Garden

At www.nyis.info/index.php?action=invasive_detail&id=32 they say, "The New York State Office of Parks, Recreation and Historic Preservation has been battling Japanese Stilt Grass for many years in some of its Parks and has developed a couple new/experimental control techniques. Park Biologists have proven that covering Stilt Grass with 4-6 inches of mulch (chips, leaf litter) will prevent Stilt Grass from emerging."