Collection issues and the IRSBy William M. GasaFederal Taxation, May 2008As financial times get tight, more people are having trouble paying their taxes. IRS employees follow certain procedures for collection of those taxes.
Individual income tax updateBy Thomas F. ArendsFederal Taxation, May 2008The following is a summary of materials presented at the Federal Taxation Section’s 2007/2008 Federal Tax Conference in Chicago and Springfield with respect to recent developments in individual income taxation.
Let’s review the basics of local taxationBy Julie-April MontgomeryState and Local Taxation, May 2008As a practitioner, are you aware of the vast number and variety of local taxes for which a client can be held accountable, or even what constitutes a local taxing authority in Illinois?
United States Supreme Court vacates and remands MeadWestvaco and provides further clarification concerning determination of unitary assetsBy David J. Kupiec & Natalie M. MartinState and Local Taxation, May 2008On April 15, 2008, the United States Supreme Court unanimously vacated and remanded MeadWestvaco Corporation v. Illinois Department of Revenue (U.S. Sup. Ct. No. 06-1413) back to the Illinois Appellate Court for determination as to whether MeadWestvaco Corporation (hereafter “Mead”) and its wholly owned business division, Lexis/Nexis (hereafter “Lexis”), were part of a unitary business.
January 2008 IDOR Practitioners MeetingsBy Stanley R. KaminskiState and Local Taxation, April 2008Questions and answers from the January, 2008 Illinois Department of Revenue Practitioners Meeting.
Tax-exemption and charity care updateBy Carolyn V. MetnickHealth Care Law, March 2008Many stories out of Illinois topped the national headlines as several tax-exempt hospitals in central Illinois saw their property tax-exemption challenged and in some cases, revoked or denied.
Case summaryBy Stanley R. KaminskiState and Local Taxation, February 2008Pooh-Bah Enterprises, Inc. v. Cook County, City of Chicago, et al, Ill. App. Court. (1st Dist. 12\21\2007)
Illinois Appellate Court affirms Department of Revenue’s treatment of electricity for Investment Tax Credit purposes and limits Uniformity Clause application for creditsBy David J. Kupiec & Natalie M. MartinState and Local Taxation, February 2008In Exelon Corporation v. Illinois Department of Revenue and Brian A. Hamer, No. 1-06-3388 (Ill. App.Ct., 1st Jud. Dist) (September 24, 2007), the Illinois Appellate Court affirmed the Circuit Court’s Summary Judgment Order, which affirmed the Illinois Department of Revenue’s (Department’s) Decision denying an electric utility company a Personal Property Tax Replacement Income Tax Investment Credit and denying that the Uniformity Clause of the Illinois Constitution was violated by the Department’s granting of such credit to gas companies and a combined gas and electric utility company.
Chicago adds new taxes for 2008By Stanley R. KaminskiState and Local Taxation, January 2008The City of Chicago has increased a number of its taxes, effective January 1, 2008.
A note from the Co-EditorsBy Mary Ann ConnellyState and Local Taxation, January 2008Happy New Year! This year should be an exciting year for the State and Local Taxation Section Council. In our May 2007 issue of Tax Trends, Judge Alexander White authored an article entitled “The Saga of Lexis-Nexus.”
Intangible holding companies under increased fire by state taxing agenciesBy Stanley R. KaminskiState and Local Taxation, December 2007Massachusetts has now joined the growing list of states asserting taxable nexus (i.e., jurisdiction) over Intangible Holding Companies (“IHCs”). See, Geoffrey, Inc. v. Commissioner of Revenue, Mass. App. Tax Board, C271816 (July 24, 2007).
Major “Kiddie Tax” changesBy Edward J. FellinFederal Taxation, December 2007The Small Business and Work Community Tax Act of 2007 extends the reach of “Kiddie Tax” that is imposed on the investment income of minor children.
A review of the 26th Annual State and Local Taxation Conference of the National Conference of State Tax JudgesBy Judge Alexander P. WhiteState and Local Taxation, December 2007The 26th Annual State and Local Taxation Conference of the National Conference of State Tax Judges (NCSTJ) convened on September 27-29, 2007, in Cambridge, Massachusetts. Fifty state tax judges convened at the Sheraton Commander Hotel, two blocks from the headquarters of the Lincoln Institute, which is located on Brattle Street, in a mansion located next to the Henry Wadsworth Longfellow Museum and two blocks from Harvard Yard.
Tax professionals take note: Monetary penalties for misconductBy Kevin ThornFederal Taxation, December 2007On April, 23, 2007, the Internal Revenue Service issued Notice 2007-39 (“the Notice”), which provides guidance to the IRS Office of Professional Responsibility (“OPR”) in exercising its authority to impose monetary penalties for practitioner misconduct.
The 7 percent tax cap & other relief measures of Public Act 644By John K. NorrisState and Local Taxation, November 2007Any discussion of tax relief and homeowner exemptions cannot be adequately held without first providing some background information on how Illinois arrived at the current state of the law.
IRS Extends Section 409A Transition Relief and Deadlines to December 31, 2008By Brian M. Pinheiro & Jacquelyn M. GrayCorporate Law Departments, November 2007On October 22, 2007, the Internal Revenue Service issued Notice 2007-86, which provides relief through 2008 for amending nonqualified deferred compensation plans to comply with the final regulations issued under Section 409A of the Internal Revenue Code, and a much-needed extension of certain transition relief through 2008.
IRS Collection Financial StandardsFederal Taxation, October 2007Effective October 1, 2007, the IRS Collection Financial Standards for use in calculating repayment of delinquent taxes have been revised.
IRS Stakeholder LiaisonFederal Taxation, October 2007Information of interest to tax practitioners.
Valuing private company stock: Determining fair market value for purposes of §409ABy Alan R. SingletonFederal Taxation, October 2007Internal Revenue Code §409A requires all non-qualified stock options and stock appreciation rights to have exercise prices set at or above the fair market value of the underlying stock at the time the grant is made.
Major “Kiddie Tax” changesBy Edward J. FellinTrusts and Estates, September 2007The Small Business and Work Community Tax Act of 2007 extends the reach of “Kiddie Tax” that is imposed on the investment income of minor children.
