USX Corporation v. White (1st. Dist. 2004)By John B. TruskowskiState and Local Taxation, May 2004The appellate court upheld the Illinois Secretary of State's determination that a reverse triangular merger was not a statutory merger for Illinois franchise tax purposes.
Recent decisions in real estate tax casesBy Timothy E. MoranState and Local Taxation, April 2004Appellate court reversed granting of agricultural exemption, and remanded for application of four-part test to determine the property's primary use.
Taxpayers beware: Illinois broadens its state and local real estate transfer taxesBy Stanley R. KaminskiState and Local Taxation, April 2004Effective June 1, 2004, the Illinois Real Estate Transfer Tax has been expanded to include not only transfers of real property by deeds and beneficial interests in land trusts, but also: (a) the transfer of ground leases that provide for a term of 30 years or more; and (b) the indirect transfer of an interest in real property as reflected by the transfer of a controlling interest in a real estate entity.
Corporate and partnership tax updateBy James S. ZmudaFederal Taxation, March 2004In Alphonse Mourad, 121 T.C. No. 1 (2003), the Tax Court ruled that a Chapter 11 filing does not cause termination of a corporation's S status.
Recent decisions in real estate tax casesBy Timothy E. MoranState and Local Taxation, March 2004Appellate Court affirmed granting of charitable-use exemption to senior housing facility.
Tax administration and procedure updateBy Thomas F. Arends & Richard M. ColombikFederal Taxation, March 2004The 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.
The United States Virgin Islands tax incentive ProgramsBy Donna F. HartlFederal Taxation, March 2004The United States Virgin Islands (USVI) offers incentives to certain qualified businesses. If a qualifying business is established in the U.S. Virgin Islands and hires a minimum number of local employees, it may be eligible for government tax incentives which will eliminate a large percentage of income taxes and local taxes for up to 10 years or more.
Envirodyne case summaryBy John B. TruskowskiState and Local Taxation, February 2004In a rare decision by a federal appellate court involving Illinois taxes, the Seventh Circuit ruled that two subsidiaries of a holding company were not part of a unitary business group.
Estate and gift tax updateBy Kelli E. MadiganFederal Taxation, February 2004Decedent's estate was entitled to an estate tax charitable deduction under §2055(a) equal to the present value of the remainder interest in two trusts reformed under local law pursuant to Reg. §20.2055-2(e)(2).
The importance of “government” for taxesBy Julie-April MontgomeryState and Local Taxation, February 2004The power of government to tax is of unequivocal importance in today's modern society. But what is government for purposes of taxation?
Some interesting IRS rulingsBy Mark E. ZumdahlTrusts and Estates, February 2004PLR 200340012-In this Private Letter Ruling, the IRS ruled favorably whether decedent's interest in rental real estate qualified as a closely held business for purposes of electing installment payment of estate taxes under §6166 of the Internal Revenue Code.
Tax administration and procedure updateBy Thomas F. Arends & Richard M. ColombikFederal Taxation, February 2004The 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.
Tax Court decisionBy Mark E. ZumdahlTrusts and Estates, February 2004Estate of Mildred Green v. Commissioner, TC Memo 2003-348 decided by the Tax Court, illustrates the importance of a clearly drafted tax apportionment clause.
Accounting says maybe, but the tax laws say yesBy Bart A. BasiBusiness and Securities Law, January 2004This year is the first full year in which the Financial Accounting Standards Board's (FASB) guidance on how to account for goodwill and other unidentifiable intangible assets is in effect for presentation in financial statements.
Follett Corporation v. Illinois Dept. of Revenue (4th Dist. 2003)By John B. TruskowskiState and Local Taxation, January 2004The appellate court upheld the Circuit Court of Sangamon County's decision that Follett must include in the numerator of its sales factor sales from Illinois to a state in which Follett was not taxable, but another member of Follett's unitary business group was.
Historical perspectiveTrusts and Estates, December 2003For many years, Illinois, like many states, had its own death tax system. In the case of Illinois, this was an inheritance tax (varying according to the relationship of the recipient to the deceased).
Zebra Technologies Corporation v. TopinkaBy Stanley R. KaminskiState and Local Taxation, December 2003On October 27, 2003 the Illinois Appellate Court issued its modified decision (upon rehearing) in the Zebra Technologies ("Zebra") case.
Illinois sales and use tax exemptionsBy John B. TruskowskiState and Local Taxation, November 2003Recent legislation made significant changes to the Illinois sales and use tax exemptions. Some of the existing exemptions were repealed, while new ones were added.
Recent decisions in real estate taxesBy Timothy E. MoranState and Local Taxation, November 2003In the Matter of the Application of the County Treasurer et al v. Phoenix Bond and Indemnity Company, (Docket No. 1-02-2539) (Rule 23) Ill.App. (1st Dist.), decision issued July 24, 2003.
Illinois’ new tax amnestyBy Stanley R. KaminskiState and Local Taxation, October 2003Effective October 1, 2003 and running through November 17, 2003, taxpayers in Illinois will be able to take advantage of a new Illinois tax amnesty.
Preemption-The covert exemptionBy Julie-April MontgomeryState and Local Taxation, October 2003Everyone is constantly seeking a way to legally avoid the payment of taxes to which they can be subject. To that end, one is normally aware that the greatest source for such relief is an exemption.