Publications

Section Newsletter Articles on Taxation

Trust fund recovery penalties By David P. Dorner State and Local Taxation, July 2010 If a business were to default on the payment of its trust fund taxes, the Department could seek recovery of such taxes, plus penalties and interest, in the form of a 100 percent penalty directly from the responsible officer or employee.
Employer’s expense tax relief ordinance FAQs State and Local Taxation, June 2010 Frequently asked questions relating to an employer's expense tax.
I’m a nonresident of Illinois—maybe? By David P. Dorner State and Local Taxation, June 2010 While a person may believe he or she is no longer a resident of Illinois, they in fact may still be considered residents for Illinois income tax purposes.
I’m a nonresident of Illinois—maybe? By David P. Dorner General Practice, Solo, and Small Firm, June 2010 While a person may believe he or she is no longer a resident of Illinois, they in fact may still be considered residents for Illinois income tax purposes.
New financial reporting rules and proposed IRS rules would raise the stakes on taking aggressive tax positions By Edward J. Hannon and Michelle B. Baxter Federal Taxation, May 2010 Two recent changes to financial reporting and tax return disclosure rules could impact whether taxpayers will choose to take tax positions that have a significant chance of being challenged by the IRS.
Provena Covenant Medical Center v. Department of Revenue, No. 107328. (Illinois Supreme Court, March 18, 2010) By William Seitz State and Local Taxation, May 2010 Provena Hospitals sought administrative review of a decision by the Director of Revenue that it was not entitled to a property tax exemption for charitable and religious organizations for the 2002 tax year.
Who wants cake? Section 368 tax-free reorganizations for corporations By Derek P. Usman Federal Taxation, May 2010 By utilizing the reorganization exit strategy, business owners are able to sell their business while deferring their gain.
With great power comes great responsibility—Deferring cancellation of debt income for tax partnerships By Brian A. Smith and William E. Russell Federal Taxation, May 2010 The American Recovery and Reinvestment Act of 2009 became effective on February 17, 2009, and many questions regarding how the cancellation of indebtedness (COI) deferral election applies to partnership situations still remain unanswered.
Does the Voluntary Payment Doctrine trump state unclaimed property laws? By Stanley R. Kaminski and David I. Curkovic State and Local Taxation, April 2010 Under a state’s voluntary payment doctrine, money considered voluntarily paid should not be subject to a state’s unclaimed property law.
“What’s in a name …”—The importance of properly classifying “independent contractors” By Betsy Johnson Corporate Law Departments, April 2010 Studies have shown that companies can save as much as 30% of payroll and related taxes by classifying workers as independent contractors.
The Cook County Board of Review v. The Illinois property tax Appeals Board and Fulton House Condominium Assoc., Ill. App. Ct. , First Dist. ( Sept 30, 2009) By William Seitz State and Local Taxation, March 2010 This case involved the 2003 triennial for the 113-unit Fulton House Condominium.
Practice note: Abatement of tax penalties for reasonable cause: Best practices By David P. Dorner General Practice, Solo, and Small Firm, March 2010 With many states facing historical fiscal deficits and the need for additional revenues, the issue of tax penalties and the abatement of such penalties for reasonable cause have become increasingly relevant.
Why the “25/10 ordinance” should not impact tax load calculations in 2009 property tax appeal cases By Gary H. Smith State and Local Taxation, March 2010 On September 17th, 2008, the Cook County Board adopted ordinance 08-O-51, which amended the levels of assessment for all properties in the county, commencing with the 2009 tax year.
Illinois Supreme Court holds Wal-Mart properly charged sales tax on shipping charges applied to customers’ Internet purchases of tangible personal property By David J. Kupiec and Natalie M. Martin State and Local Taxation, February 2010 On November 19, 2009, The Illinois Supreme Court issued an opinion holding that shipping charges for certain Internet purchases of tangible personal property are subject to the Illinois sales tax.
A review of American Airlines v. Illinois Dept. of Revenue By William Seitz State and Local Taxation, February 2010 On December 18, 2009, the First District issued its decision in American Airlines v. Illinois Department of Revenue (No. 08-2985).
Cook County’s Department of Administrative Hearings: The new kid on the block By Julie-April Montgomery State and Local Taxation, January 2010 In today’s litigious society, more and more matters are being initially handled outside of the courts and in administrative proceedings—specially matters that involve government enforcement, compliance and collection. 
Abatement of penalties for reasonable cause: Best practices By David P. Dorner State and Local Taxation, December 2009 Every state imposes penalties for the failure to file tax or information returns or to pay taxes within the time proscribed by statute. In most instances, however, a state will abate imposed penalties if the taxpayer can demonstrate reasonable cause for the noncompliance.
Congressional support for enhancing the Historic Rehabilitation Tax Credit: ISBA’s Section of Federal Taxation liaison meeting with legislative aides, May 6 & 7, 2009 Federal Taxation, December 2009 The federal Historic Rehabilitation Tax Credit (HTC) Program is the nation’s largest program to stimulate the preservation and reuse of historic buildings. 
Estate tax issues: ISBA’s Section of Federal Taxation liaison meeting with legislative aides, May 6 & 7, 2009 Federal Taxation, December 2009 The debate surrounding the estate tax no longer focuses on eliminating the tax in total. 
Extension of IRC Section 1031: ISBA’s Section of Federal Taxation liaison meeting with legislative aides, May 6 & 7, 2009 Federal Taxation, December 2009 There is a strong link between historic preservation, economic development, housing, and jobs. Abandoned and underutilized historic buildings are often located in some of the nation’s most disinvested communities. 
Offer in compromise: ISBA’s Section of Federal Taxation liaison meeting with legislative aides, May 6 & 7, 2009 Federal Taxation, December 2009 A primary concern is that the OIC program is not being properly utilized by the IRS.
A review of In re Application of the County Collector (A.P. Properties, Inc. v. Ezra Chaim Properties), Appellate Court, Second District, Docket No. 2-08-0755, 2009 WL 2767020, August 27, 2009 By Tara H. Ori State and Local Taxation, December 2009 Homeowner’s property taxes were sold for failure to pay real estate taxes for the year 2003. The taxes were purchased by tax buyer A.P. Properties, Inc. at the tax sale in December 2004.
Taxation of employment-related settlement payments By Elizabeth Erickson and Ira B. Mirsky Employee Benefits, December 2009 In an internal memorandum dated October 22, 2008, but released only in July of this year, the Internal Revenue Service (IRS) Office of Chief Counsel has outlined information necessary to determine the correct tax treatment of employment-related settlement payments. 
Delayed implementation of a statutory amendment necessitated a finding that the Legislature intended to apply the statutory amendment prospectively and that tax objectors were entitled to the pre-amendment interest rate up until the effective date of the statutory amendment By Christopher B. Kaczynski and Jacki Dobesh State and Local Taxation, November 2009 The First District Appellate Court has recently ruled that tax objectors who paid taxes and filed Specific Objection lawsuits prior to amendment of Section 23-20 of the Property Tax Code were entitled to the pre-amendment interest rate up until the effective date of the statutory amendment, even though judgment orders granting statutory interest were entered after the statutory amendment.
2009 Illinois legislation review and update By David Eldridge State and Local Taxation, September 2009 Legislation of interest to state & local tax practitioners.
Taxation by association: Amazon.com law and state taxation of Internet sales By Scott Drago Corporate Law Departments, September 2009 Historically, Internet retailers have not collected state and local sales taxes on sales made through an associate program, provided the Internet retailer itself does not have a sales force or store in a particular state. However, the days of relying on this exemption may be numbered. 
Renegotiating debt? Beware of tax traps By Steven W. Swibel Commercial Banking, Collections, and Bankruptcy, August 2009 In a non-bankruptcy, noninsolvency context, debtors and creditors are often surprised that a debt modification that does not appear to reduce principal or the effective interest rate may nevertheless result in adverse tax consequences.
Estate and gift tax recent cases and rulings By Joseph P. O’Keefe and Elizabeth C. Hesselbach Federal Taxation, July 2009 Recent updates in estate and gift taxes.
IDOR Practitioners’ meetings Q&A State and Local Taxation, July 2009 Questions and answers from the recent Illinois Department of Revenue Practitioners' meeting.
Individual income tax update: Legislation, cases and rulings By Thomas F. Arends and Philip D. Speicher Federal Taxation, July 2009 The following outline is a summary of recent tax legislation and select cases and rulings presented by the Federal Taxation Section Council at its annual Law Ed Program, the 2009 Federal Tax Conference. The materials focus on income tax issues for individuals and sole proprietors. Also included is a summary of the newly enacted American Recovery and Reinvestment Act of 2009.