Recent developments in federal taxBy David A. BerekTrusts and Estates, October 2005On August 22, 2005 the Service issued eight Revenue Procedures setting forth sample trust language for charitable remainder unitrusts.
Revised Form 1023: What it means for new charitable organizationsBy Marjorie A. HarrisFederal Taxation, October 2005In order to qualify for exemption from Federal income tax, most new charitable organizations are required to file Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, within 27 months following the end of the month in which the organization was established.
When stepping up to pay your taxes pays off (amnesty & voluntary disclosure programs)By Julie-April MontgomeryState and Local Taxation, September 2005You've just found out that you never paid sales taxes as required by law for the last 10 years. Or you've underpaid your Chicago Transaction Tax for the past year because of a software error.
Amendments to Internal Revenue Code Section 5291By Thomas F. ArendsFederal Taxation, August 2005Internal Revenue Code Section 529 provides for a tax exemption for qualified tuition programs as well as tax-free treatment on distributions from such plans to eligible, qualified beneficiaries.
Amendments to Internal Revenue Code Sections 55 and 56By Kelli E. MadiganFederal Taxation, August 2005The alternative minimum tax (the “AMT”) is a system of income taxation that operates separate from the regular income tax system.
Discharge of personal responsibility for federal taxBy Mary CascinoTrusts and Estates, August 2005The executor or administrator who is "qualified and appointed and acting in the United States" may apply in writing for discharge of personal liability for the decedent's income and gift tax liabilities. IRC §6905(a) (referred to herein as "executor").
Estate tax repealBy Robert J. KruppFederal Taxation, August 2005The debate surrounding the estate tax focuses on eliminating the tax in total or reforming it by increasing the exemption level and lowering the top rate.
Final regulations on GST Elections-Even more taxpayer friendlyBy Katarinna McBrideTrusts and Estates, August 2005IRS has issued Final Regulations that provide guidance for making IRC Section 2632(c)(5)(A)(i) election to not have the deemed allocation of unused generation-skipping transfer (GST) tax exemption apply for certain transfers to a GST trust (IRC Section 2632(c)(1)), and the Code Section 2632(c)(5)(A)(ii) election to treat a trust as a GST trust.
A review of the final regulations under Circular 230By Guy E. Williams & Scott E. GarwoodFederal Taxation, August 2005Estate planning practitioners face the prospect of fines, censure, suspension and disbarment from practice before the IRS for violations beginning June 20, 2005—Further regulations issued on May 18, 2005 (see last page) help to clarify some of the problem areas.
Recent court decisionsBy William SeitzState and Local Taxation, July 2005The appellate court reversed and remanded a summary judgment order by the circuit court in Du Page County.
Appellate Court affirms denial of motion to vacate tax deedBy Karen DimondState and Local Taxation, June 2005In a recent published opinion, the Appellate Court, Fourth District, held that (1) a trial court's order is final the day it is entered if the trial court does not request the submission of a written order; (2) a post-trial motion filed after a notice of appeal is filed does not deprive an appellate court of jurisdiction if the motion is not directed against the judgment; (3) a section 2-1401 motion was properly denied because it did not rely on any of the grounds for relief listed in section 22-45 of the Property Tax Code; and (4) section 22-45 of the Property Tax Code does not violate the constitutional equal-protection principles.
The proposed amendments to the practice and procedure before the Property Tax Appeal BoardState and Local Taxation, June 2005Property Tax Appeal Board notice of proposed amendments
1.Heading of the Part: Practice and Procedure for Appeals Before the Property Tax Appeal Board
2. Code Citation: 86 Ill. Adm. Code 1910
3. Section Numbers: Proposed Action:
1910.11 New Section
1910.70 Amended
1910.72 New Section
1910.80 Amended
4. Statutory Authority: 35 ILCS 200/ Art. 7 and 16-180 through 16-195
5.A Complete Description of the Subjects and Issues Involved:
Corporate and partnership tax updateBy James S. ZmudaFederal Taxation, May 2005The Internal Revenue Service ("IRS") has issued final regulations regarding qualified real estate investment trust ("REIT") subsidiaries, qualified subchapter S subsidiaries and single-owner eligible entities that are disregarded as entities separate from their owners.
Estate and gift tax updateBy Franklin S. MitvalskyFederal Taxation, May 2005Here are some recent developments which have occurred in the areas of marital deduction planning, estate administration, will construction and charitable deduction planning which the estate and gift tax practitioner will hopefully find useful.
IRS liaison updateBy Thomas F. ArendsFederal Taxation, May 2005The editorial staff of the Newsletter would like to inform members of the Federal Taxation Section that Mr. Thomas Arends and Mr. William Gasa of the Section Council currently serve as liaisons for the Section to the Internal Revenue Service.
Recent decisions in real estate tax casesState and Local Taxation, May 2005Certain property assessed as open space was included within tax increment financing redevelopment area.
Do I really get my money back? (The local tax credit/ refund issue)By Julie-April MontgomeryState and Local Taxation, April 2005What if you mistakenly paid your Chicago tax money to the State of Illinois? Or you paid tax to Cook County on a transaction for which you qualified for an exclusion or exemption from tax?
Real estate tax exemption for a substance abuse facilityBy Alexander P. WhiteState and Local Taxation, April 2005The Defendant, the Illinois Department of Revenue ("The Department"), appealed an order of the Circuit Court of Cook County, which had granted the Plaintiff, Hazelden Foundation ("Hazelden"), a charitable-use exemption for certain real property owned by Hazelden for the tax year 1998.
City of Chicago tax increasesState and Local Taxation, March 2005The City of Chicago recently increased a number of its taxes.
Collection procedure updateBy William M. GasaFederal Taxation, March 2005The reaction of the professional community to the IRS Restructuring and Reform Act of 1998 (RRA98) signed by President Clinton on July 22, 1998 was that there would be a "kinder and gentler" IRS.
Corporate and partnership tax updateBy James S. ZmudaFederal Taxation, March 2005The Internal Revenue Service ("IRS") has issued final regulations that exempt employers from depositing FUTA taxes until their FUTA tax liability exceeds $500.
The Streamlined Sales Tax amnesty: To wait or not to wait, that is the questionBy Stanley R. KaminskiState and Local Taxation, March 2005By the end of 2005, 10 or more states comprising 20 percent or more of the total population of the United States may be approved as fully compliant members of the Streamlined Sales and Use Tax Agreement ("SSUTA").