Legislative agenda item: Alternative minimum taxFederal Taxation, September 2006DISCLAIMER: The following comments are the individual views of the members of the Federal Taxation Section Council of the Illinois State Bar Association and do not represent the position of the Illinois State Bar Association.
Legislative agenda item: Estate Tax RepealFederal Taxation, September 2006DISCLAIMER: The following Comments are the individual views of the members of the Federal Taxation Section Council of the Illinois State Bar Association and do not represent the position of the Illinois State Bar Association.
State tax advisoryState and Local Taxation, August 2006Using a drop shipper can be quite taxing according to the Tennessee Appellate Court which recently upheld an assessment of uncollected sales use tax from a non-Tennessee business (ARCO) that utilized Tennessee manufacturers to manufacture and ship products to Tennessee customers. The products were single story metal buildings.
Substantial tax penalties can be avoided by the proper tax reporting of damage awards and settlementsBy Stanley R. KaminskiState and Local Taxation, August 2006Nowadays, every mid- to large-size business and government agency has encountered the problem of paying out damage awards or settlements to third parties as a result of claimed contract violations, torts and other actions, as well as amounts paid to their employees for alleged labor law, civil rights, and other violations.
Illinois legislation corrects income tax bonus Depreciation ModificationsBy David J. Kupiec & Natalie M. MartinState and Local Taxation, June 2006On May 19, 2006, Governor Blagojevich signed House Bill 2706 (Public Act 94-0776) - a Bill put forth as a Department of Revenue technical correction to primarily address various issues concerning the Illinois income tax bonus depreciation provisions.
Individual income tax updateBy Richard M. Colombik & Linda GodfreyFederal Taxation, June 2006In Comm’r v. Banks, 543 U.S. 426; 125 S. Ct. 826 (2005), the Supreme Court held that a taxpayer’s gross income from the proceeds of litigation included the portion of the damages recovery that was paid to his attorneys according to a contingent fee agreement.
Internal Revenue Service Liaison UpdateBy Katie S. BeardFederal Taxation, June 2006The following is a summary of select materials presented by the author at the 2005/2006 Federal Tax Law Ed Program in Chicago and Springfield.
Tax and trust fund issuesBy Richard M. Colombik & Linda GodfreyBusiness Advice and Financial Planning, June 2006A look at the legal difficulties that business owners may encounter when corners are cut with the Internal Revenue Service.
Gross revenue tax: Will Illinois be next?By Stanley R. KaminskiState and Local Taxation, May 2006Currently, Texas has a Franchise Tax with an Income Tax component somewhat similar to the Illinois Income Tax. Essentially, under this Income Tax component, Texas only taxes the net income of a corporation that is apportioned to Texas.
The Historic Residence Assessment Freeze Law (Residential Properties)By Mary Ann ConnellyState and Local Taxation, May 2006The Historic Residence Assessment Freeze Law, formerly known as the Property Tax Assessment Freeze Program entitles the owner of a landmark residence to real estate tax relief upon completion of a rehabilitation project.
Review of 2005 Hurricane Tax Relief legislationBy Donna F. HartlFederal Taxation, April 2006The Gulf Opportunity Zone Act of 2005 (“GOZA”) was signed on December 21, 2005. GOZA supplements the Katrina Emergency Tax Relief Act of 2005 (“KETRA”) and grants tax relief to individuals and businesses affected by Hurricanes Katrina, Rita, and Wilma. GOZA also includes technical corrections to 10 tax acts.
Does your foreign, international or interstate business have a hidden and costly state tax liability?By Stanley R. KaminskiState and Local Taxation, March 2006Contrary to common belief, a foreign, international or interstate business, including a foreign subsidiary of a domestic company, may have a state tax liability even if such business does not have an office in a state, but it has an employee, agent or third-party representative traveling into a state.
Estate and gift tax updateBy Sarah Delano PavlikFederal Taxation, March 2006New Amounts for 2006. The following amounts became effective on January 1, 2006:
Internal Revenue Service Liaison UpdateBy Thomas F. ArendsFederal Taxation, March 2006IRS Announcement on Tax Lien Filings and Releases: The editorial staff of the newsletter would like to inform members of the Federal Taxation Section that Mr. Thomas Arends of the Section Council currently serves as liaison for the Section to the Internal Revenue Service.
News from the IRSBy Sarah Delano PavlikFederal Taxation, March 2006Political Campaign Intervention. On February 24, 2006, the IRS released a report on its examination of political activity by tax-exempt organizations during the 2004 election campaign.
The successor liability aspects of a tax bulk sales in IllinoisBy Julie-April MontgomeryState and Local Taxation, March 2006It is often said that when a new owner of a business comes along it prefers to buy the assets of the business so as to avoid liability for the seller’s obligations that could arise as the result of a stock sale.
Tax incentives for historic residencesBy David DwyerYoung Lawyers Division, February 2006Significant real estate tax incentives are available for owners of historic buildings in Illinois
Recent decisions in real estate tax casesBy Timothy E. MoranState and Local Taxation, January 2006In re Application of the County Treasurer (H&H Investments v. Green Tree Servicing, LLC), Appellate Court, Third District, Docket No. 3-04-0777, 2005 WL 2841145, October 28, 2005.
The 25th Annual State & Local Taxation ConferenceBy Alexander P. WhiteState and Local Taxation, December 2005The 25th Annual State and Local Taxation Conference of the National Conference of State Tax Judges took place in Cambridge, Massachusetts on Thursday, September 29 through Saturday, October 1, 2005.
Attacking tax deed orders: Recent developmentsBy Matthew A. FlammState and Local Taxation, December 2005It is critical for a party seeking to contest a tax deed order to do so either before the order is entered or within 30 days thereafter.
Federal individual income tax updateBy Michelle L. HellerFederal Taxation, October 2005Passing the House and Senate on September 21, 2005, this Act provides $6.11 billion in tax incentives to aid or encourage donations to the victims of Hurricane Katrina.