Section Newsletters

Articles on Taxation

Chicago’s new tobacco products tax declared illegal By Amy McCracken State and Local Taxation, April 2017 In a refreshing opinion, in the case of Iwan Ries & Co., et al. v. City of Chicago, et al., the Cook County Circuit Court recently held that “or” means “or” when interpreting a statutory limitation on the imposition of new tobacco taxes by municipalities. In doing so, the Court declared the City of Chicago’s new tax on Other Tobacco Products in violation of Illinois law since it was expressly prohibited by a 1993 state statute.
A review of Carle Foundation v. Cunningham Township By Keith Staats State and Local Taxation, April 2017 Depending on the outcome of this case in the circuit court, the appellate court and Supreme Court may finally reach the issue of the constitutionality of the Illinois charitable hospital property tax exemption.
Office of the Cook County Assessor Attorney, Representative, and Appraiser Meeting— February 23, 2017 By Thomas A. Jaconetty State and Local Taxation, March 2017 Takeaways from the recent meeting.
2016 tax year in review By Paul A. Meints Trusts and Estates, February 2017 A look back at last year and predictions of what's to come.
Profit motive or hobby? By Patrick D. Owens Federal Taxation, February 2017 In Roberts v. Commissioner, the United States Court of Appeals for the Seventh Circuit reversed the Tax Court’s opinion and voided the taxpayer’s tax deficiencies in 2005 and 2006 in finding that the taxpayer’s horse racing activities amounted to a business rather than merely a hobby.
Recent local tax decisions By Stanley R. Kaminski State and Local Taxation, February 2017 A list of recent court and administrative decisions in Illinois involving local taxation.
IRS inflation adjustments for 2017 By Jennifer Bunker Trusts and Estates, January 2017 The Internal Revenue Service has announced its annual inflation adjustments for tax year 2017.
Proposed 2704 changes meet stiff resistance at IRS hearing By Bruce A. Johnson Trusts and Estates, January 2017 Since the tax court decision of Kerr v. Commissioner, the IRS has been concerned that certain loopholes exist in IRC 2704 that allow taxpayers to gift interests to family members in entities that have no business purpose and allow the transfer of wealth without due consideration of the value to the transferor.
The 36th Annual State & Local Taxation Conference By Hon. Alexander P. White State and Local Taxation, December 2016 The 36th Annual State and Local Taxation Conference of the National Conference of State Tax Judges took place in Portland, OR on Thursday, September 8 through Saturday, September 10, 2016.
Court dismisses declaratory judgment action against Department of Revenue for failure to exhaust administrative remedies By Brian Fiflet State and Local Taxation, December 2016 Can a nonresident corporation seek judicial determination on nexus without first exhausting administrative remedies?
Proposed 2704 changes meet stiff resistance at IRS hearing By Bruce A. Johnson Business Advice and Financial Planning, December 2016 Since the tax court decision of Kerr v. Commissioner, the IRS has been concerned that certain loopholes exist in IRC 2704 that allow taxpayers to gift interests to family members in entities that have no business purpose and allow the transfer of wealth without due consideration of the value to the transferor.
Recent decisions in real estate tax cases By Timothy E. Moran & Ciarra J. Schmidt State and Local Taxation, December 2016 Recent cases of interest to practitioners.
2016 court decisions State and Local Taxation, November 2016 Recent cases of interest to tax practitioners.
2016 legislative update State and Local Taxation, November 2016 Newly enacted laws.
Collections State and Local Taxation, November 2016 Answers to common questions regarding the Collections Bureau.
Could a departing shareholder’s continuation with the company as an employee or a consultant be treated as a “retained interest” under Section 2036 or 2701 of the tax code? By Hilary E. Wild Federal Taxation, November 2016 What if your client wants to remain an employee or an independent contractor of a corporation after gifting his stock in the corporation to his children?
Legislation and rulemaking State and Local Taxation, November 2016 New laws and rules of note.
Proposed IRS regulations may eliminate long-standing discounts for family-owned businesses By Bruce A. Johnson Federal Taxation, November 2016 The Internal Revenue Service released proposed regulations on August 2, 2016 that would modify and expand Internal Revenue Code 2704 (IRC 2704) impacting the valuation of privately-held, minority interests that are controlled by the same family.
Sales/excise tax update – 2016 legislation and rulemaking State and Local Taxation, November 2016 Recently enacted laws and rules related to sales and excise tax.
Staff directory State and Local Taxation, November 2016 A useful resource of personnel and contact information.
Submitted questions and answers State and Local Taxation, November 2016 Read the recent questions and answers from the most recent DOR Practitioners Meeting.
Upcoming changes for business income tax returns and payments State and Local Taxation, November 2016 Changes that will affect businesses.
Proposed Cook County Hail Vehicle and Ride Sharing Trip Tax  By Evan W. Schanerberger State and Local Taxation, October 2016 Learn more about this proposed new Cook County tax.
Summary of seminar on post-Provena: Illinois’ not-for profit property tax issues, Part 1 By William Seitz State and Local Taxation, October 2016 A recap of “Post-Provena: Illinois’ Not for Profit Property Tax Issues, Part 1” and an overview of Part 2, to be held on November 16th.
Could a departing shareholder’s continuation with the company as an employee or a consultant be treated as a “retained interest” under Section 2036 or 2701 of the tax code? By Hilary E. Wild Trusts and Estates, September 2016 What if your client wants to remain an employee or an independent contractor of a corporation after gifting his stock in the corporation to his children?
The disappearance of the requirement that the Internal Revenue Service exhaust all reasonable collection efforts against the primary obligor By Benjamin Haskin Federal Taxation, September 2016 Recently, an increasing number of Memorandum Decisions in the United States Tax Court have summarily disposed of this requirement by stating that the existence and extent of transferee liability must be determined by state law, which often does not require the exhaustion of all reasonable collection efforts.
Illinois Governor signs sales tax bill providing clarity for new cancer treatment By David J. Kupiec & Natalie M. Martin State and Local Taxation, September 2016 On August, 19, 2016, Governor Rauner signed Senate Bill 3047 (Public Act 99-0858), which provides that FDA classified medical devices that are used for cancer treatment pursuant to a prescription will be taxed at the reduced 1% rate of tax applied to medicines rather than the standard 6.25% sales tax rate.
IRS proposes significant changes to valuation discount regulations By Jeffrey A. Mollet Agricultural Law, September 2016 On August 4, 2016, the IRS released proposed regulations (REG-163113-02) seeking to restrict valuation discounts in the context of family transfers.
Property Tax Code Legislative Round-Up for the 2016 Regular Session By Whitney Carlisle State and Local Taxation, September 2016 Updates on legislation of interest to state & local tax practitioners.
What is a coordinated appeals issue? By James Creech Federal Taxation, September 2016 Known internally as Appeals Coordinated Issues, or ACI for short, they can be a peek into what the IRS considers hot topics in tax or potential areas for abuse.

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