Publications

Section Newsletter Articles on Taxation

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.  
Tax updates and opportunities in the current economy By Donna F. Hartl, Justin W. Clark, and Samuel Hans Federal Taxation, July 2009 If utilizing any of these techniques could reduce some clients’ estate tax, then now is the time to consider implementing such a plan with the current depressed market conditions and the looming possibility that legislative action may curtail the effectiveness of these techniques.
Renegotiating debt? Tax traps for creditors By Steven W. Swibel Corporate Law Departments, June 2009 Tax consequences of debt modification are not only a debtor’s concern. Creditors are often surprised that debt modification can result in unanticipated adverse tax consequences. 
Mediation of tax Disputes through the Multistate Tax Commission (MTC) By Lee Christoff State and Local Taxation, May 2009 We’ve had a number of, what I consider to be, very successful mediation programs between states with taxpayer disputes, where per
Illinois Supreme Court holds electricity is “tangible personal property” for purposes of the Illinois Personal Property Tax Replacement Income Tax Investment Credit By David J. Kupiec and Natalie M. Martin Energy, Utilities, Telecommunications, and Transportation, April 2009 At issue in this case is whether the Taxpayer’s 1995 and 1996 investments in property used for generating, transmitting and distributing electricity to customers in Illinois qualified for the .5% investment credit provided under Section 201(e) of the Illinois Income Tax Act.
Clarification to “Inside out—Revaluation of Partnership Capital Accounts” By Michelle L. Heller Federal Taxation, March 2009 In reviewing for publication the article by Derek P. Usman titled “Inside out—Revaluation of Partnership Capital Accounts” published in the December 2008 Newsletter, I started to elaborate on section 754 elections. So, to clarify, the partnership may elect under IRS section 754 to adjust the basis of partnership property “as the result of a transfer of an interest in a partnership by sale or exchange or on the death of a partner” as provided in IRC section 743.
Collection Issues and the IRS—Part III By William M. Gasa Federal Taxation, March 2009 In addition to massive bailouts authorized by our federal government, other federal agencies have taken action to assist citizens. On January 8, 2009, the IRS issued “IRS TAX TIP 2009—Special Edition, IRS Help for Financially Distressed Taxpayers.” Because of the potential impact on everyone representing taxpayers before the IRS, the news release follows in full.  
Economic Recovery Package Federal Taxation, March 2009 WASHINGTON, D.C.—Ways and Means Committee Chairman Charles B. Rangel (D-NY) today released details of the economic recovery package falling under the jurisdiction of the Committee. This groundbreaking plan will provide critical tax, health and job-training benefits to American families, incentives for businesses to grow and create jobs and assistance for those who have lost their jobs or are economically disadvantaged.
Fed Tax Section to Capitol Hill, Washington D.C. By Leonard S. DeFranco Federal Taxation, March 2009 The Federal Tax Section Council is planning another trek to visit with members of Congress.
To C or not to C….With apologies to Shakespeare By Gregory A. Zbylut Federal Taxation, March 2009 It’s the bane of every attorney—the client who doesn’t pay.
Bond or lien requirements of the Uniform Penalty and Interest Act in administrative proceedings By David R. Reid State and Local Taxation, February 2009 An unconstitutional argument based on equal protection and pertaining to 35 ILCS § 735/3-7 is plausible, but is unlikely to prevail.
Legal and tax issues for franchisees By William A. Price General Practice, Solo, and Small Firm, January 2009 Buying and operating a franchise is different than most of the other purchase or investment decisions your client will make in the course of your lifetime. Your client is getting a business that they will run using a more-or-less established system, not purchasing something physical like a car or a house.  
Collection Issues and the IRS – Part II By William M. Gasa Federal Taxation, December 2008 In our October newsletter, I reported that the IRS has made Internal Revenue Manual (IRM) procedural changes previously issued to field personnel also available to the public.
Estate and gift tax changes for 2009 By Mike Drone Federal Taxation, December 2008 Several changes in the estate and gift tax law go into effect in 2009.
Illinois Department of Revenue 2008 Practitioners Meeting State and Local Taxation, December 2008 The Illinois Department of Revenue has scheduled its annual Tax Practitioners’ Meetings.
President-Elect Obama’s proposed rise in capital gains doesn’t mean you will pay more taxes when you sell your home By Michael S. Schimmel Federal Taxation, December 2008 Your stocks are worthless and your retirement plan is virtually nonexistent.
President-Elect Obama’s proposed rise in capital gains doesn’t mean you will pay more taxes when you sell your home By Michael S. Schimmel Real Estate Law, December 2008 Your stocks are worthless and your retirement plan is virtually nonexistent.
Should your LLC make an S election to save on social security and Medicare taxes? By Tracy J. Nugent Business and Securities Law, December 2008 Many factors are relevant in making the decision to elect S corporation tax status for an LLC, including whether the LLC qualifies to make the election, whether the LLC is likely to own, sell or refinance appreciating property, obtaining basis for loans to the LLC, the ability to adjust the LLC’s basis in it assets, and whether special allocations of income and expense items may be involved.
Tax trends By David Eldridge State and Local Taxation, December 2008 A compilation of information about certain major bills and other matters considered during 2008 through Veto Session that may be of interest to ISBA State and Local Tax Section members.
Jurisdictional competition between states and off-shore tax havens for corporate charters By Andrew J. Tessman State and Local Taxation, November 2008 This article attempts to explain jurisdiction competition between states and answer whether the presence of off-shore jurisdictions with highly favorable tax law affects the jurisdictional competition dynamic among the states for corporate charters.
A tax on real estate transfers pursuant to divorce—In Chicago now and coming soon to a municipality near you!! By Barbara Downs Family Law, November 2008 On October 6, 2008 the City of Chicago Finance Committee voted unanimously to support Alderman Burke’s proposed ordinance to exempt transfers of the marital home pursuant to a divorce or legal separation judgment from payment of the Chicago Real Estate Property Transfer Tax.
The Vienna Conventions—Now they have a few waltzes for state and local taxation By Julie-April Montgomery State and Local Taxation, November 2008 Have you ever wondered if international law affects the practice of state and local taxation?
Collection issues and the IRS—Part I By William M. Gasa Federal Taxation, October 2008 The IRS has made Internal Revenue Manual (IRM) procedural changes previously issued to field personnel also available to the public.
It seems straightforward, but it’s not… tax traps for the unwary By Gregory A. Zbylut Federal Taxation, October 2008 The average taxpayer has a ‘tax attention span’ of a few years, at most. And tax preparers often do, too. Yet, a good memory, and some homework up front can often avoid headaches later.
Recent decisions in real estate tax cases By Timothy E. Moran State and Local Taxation, October 2008 Two recent cases of interest to practitioners.