A busy time for the State and Local Taxation Section CouncilState and Local Taxation, February 2002With the reconvening of the General Assembly on January 9, 2002 our section council has once again begun the task of reviewing numerous pieces of newly introduced legislation.
Recent case summaryBy Louise CalvertState and Local Taxation, February 2002The First District Appellate Court held that the plaintiff, Schawk, Inc., was not engaged in manufacturing and thus was not entitled to the investment tax credit pursuant to section 201(e) of the Illinois Income Tax Act. Schawk, a digital imaging prepress service provider, produces and sells color separated film used by its customers to print packaging materials for consumer products.
Recent Illinois unitary income tax casesBy John B. TruskowskiState and Local Taxation, February 2002Illinois imposes its income tax on a unitary basis. This means that all members of a unitary business group are treated as one taxpayer, and must file a combined return. 35 ILCS §§ 5/304(e0 and 5/502(e).
Responsible person liability under state tax lawBy Stanley R. KaminskiState and Local Taxation, February 2002Responsible person liability is derived from the nonpayment of taxes owed by a corporation, or in some instances, a partnership or limited liability company (LLC).
State and Local Taxation Section Council minutesState and Local Taxation, February 2002Chair Timothy E. Moran convened the meeting of the SALT Section Council at 8:10 A.M. Although the meeting was scheduled for 9:00 A.M., this meeting was advanced to 8:00 A.M. due to scheduling conflicts.
An update on business and non-business incomeBy John B. TruskowskiState and Local Taxation, February 2002The classification of a multi-state corporation's income as business or non-business income can have a significant impact on its overall state income tax liabilities.
Editor’s notesState and Local Taxation, November 2001Is your client a "responsible person" or merely an investor? Ask whether he knew of the corporation's financial troubles, signed checks and whether he became involved in the day-to-day operations of the corporation.
Illinois State Bar Association State and Local Taxation Section Council minutesState and Local Taxation, November 2001Chair Timothy E. Moran convened the meeting of the SALT Section Council at 12:30 P.M. Although the meeting was scheduled for Noon, and the Chair usually calls the meetings to order with punctuality, an exception was made to accommodate several of the members who chose to join the crowd assembled at the Daley Center in remembering the victims of the World Trade Center.
The Illinois Training Expense Credit: what else!By Alexander P. WhiteState and Local Taxation, November 2001In the June 2001 issue of Tax Trends (Volume 44, No. 6), the newsletter of the State and Local Taxation Section of the Illinois State Bar Association (the ISBA), an article entitled "The Illinois Training Expenses Credit: What Next?" reviewed the history and current controversies and offered guidance in respect to the Illinois training expense credit (TEC).
Responsible and willful? Yes Responsible and willful? NoBy Alexander P. WhiteState and Local Taxation, November 2001A recent unpublished opinion of the Appellate Court of Illinois, First Judicial District, addressed the position taken by the Taxpayer that the period of his tax liability could be divided into two periods for the purpose of determining whether he was a responsible person who acted willfully in failing to pay a corporation's taxes.
From the co-editor, Mary Ann ConnellyState and Local Taxation, October 2001This newsletter contains an article on the payment of real property taxes by legal description in Cook County, Illinois.
Payment of real estate taxes on an undivided PIN: the necessity to pay by legal descriptionBy Martha A. MillsState and Local Taxation, October 2001One of the best kept secrets is the right of taxpayers to pay their real estate taxes on an undivided property index number ("PIN") by legal description. While property owners have the duty to pay property taxes, they also have the right to pay only the taxes on property they own.
Are Illinois’ tax caps still a good fit after 10 years?By Richard F. Dye & Therese J. McGuireState and Local Taxation, September 2001Illinois' Property Tax Extension Limitation Laws (PTELL), popularly known as "tax caps," have been around for a decade.
From the editorsState and Local Taxation, September 2001This newsletter contains an article on the history of tax caps in Illinois. This article originally appeared in the July 2001 issue of the Illinois Tax Facts, published by the Taxpayers' Federation of Illinois, Springfield, Illinois.
Recent developmentsBy Mary Ann ConnellyState and Local Taxation, August 2001On July 24, 2001 Governor Ryan signed HB 509 now PA 92-0133. Public Act 92-0133 authorizes the Cook County Board of Review to destroy or otherwise dispose of complaints and records pertaining thereto after the lapse of five years from the filing dat
A rock, a hard place, and a level of assessment in Cook CountyBy James W. ChipmanState and Local Taxation, July 2001What do the General Assembly, the appellate court, and the Property Tax Appeal Board (PTAB) have in common? Each branch of government must wrestle with the latest hot-button issue to surface in real estate tax law--the proper formula to be used for debasing market value to assessed value in PTAB appeals.
Taxpayers beware—using consultants may be hazardous to your appeal.By John K. NorrisState and Local Taxation, July 2001Attorneys practicing real estate tax assessment appeals received another favorable opinion reinforcing the proposition that the representation of taxpayers before boards of review (also referred to as "Board" or "Boards" throughout this article) remains the domain of lawyers.
Welcome to the 2001-2002 State and Local Taxation Section CouncilState and Local Taxation, July 2001Let me begin by thanking you for taking the time to read this edition of Tax Trends and those published in the past, and for those new to the section and this newsletter, welcome.
Finally—jurisdiction on reviewing a PTAB decisionState and Local Taxation, June 2001As a matter or protecting your client's interests, the most important concept in administrative review of property tax cases dealing with assessed value is jurisdiction.
Illinois circuit court: complete liquidation proceeds are non-business incomeBy Garland Allen, Louise Calvert, & Reena KhoslaState and Local Taxation, June 2001On January 24, 2001, reversing an administrative decision of the Illinois Department of Revenue ("IDOR"), the Circuit Court of Cook County held that gain recognized on a complete liquidation was non-business income, notwithstanding Illinois' adoption of the "functional test" of business income. Blessing/White, Inc., et al., No. 99 L 51087.
The Illinois training expense credit: what next?By Garland Allen & Kathryn MichaelisState and Local Taxation, June 2001The Illinois training expense credit has been the subject of much controversy over the past five years. From 1995 through 2000, the Illinois Department of Revenue (the "Department") and taxpayers have disagreed on whether a 1995 regulation that expanded the scope of the credit was to be applied retroactively or prospectively.
