Publications

Section Newsletter Articles on Taxation

State tax legislation passed by the 95th General Assembly By William Seitz State and Local Taxation, October 2008 Recent legislation of interest to state and local tax practitioners.
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, October 2008 We recently had a horrendous case involving the enforcement of the Chicago Real Estate Transfer Tax in an old divorce case. First, some background.
4H and FFA income tax By Paul A. Meints Agricultural Law, September 2008 Your client’s 16-year-old child is involved with the Future Farmers of America (FFA) program at his high school.
Illinois Department of Revenue proposing numerous new and revised Illinois income tax regulations By David J. Kupiec and Natalie M. Martin State and Local Taxation, September 2008 The Illinois Department of Revenue is in the process of updating existing and drafting new income tax regulations primarily to address recently enacted income tax legislation, Public Acts 95-0233 (SB 1544) and 95-0707 (SB783).
Legislative agenda item: Arguments in favor of eliminating or limiting the Independent Contractor Designation By Gregory A. Zbylut Federal Taxation, August 2008 One of the largest problems facing small businesses, during boom times as well as recessions, is having sufficient cash on hand to pay bills as they come due.
Legislative agenda item: Estate Tax Repeal By Robert J. Krupp Federal Taxation, August 2008 The debate surrounding the estate tax no longer focuses on eliminating the tax in total. Rather, the debate centers on the amount of the exemption and the rate.
Legislative agenda item: Offers in compromise By William M. Gasa Federal Taxation, August 2008 These comments are submitted as a follow-up to last year’s report, which is attached in its entirety at the end of these comments, and will address the status of last year’s recommendations.
Legislative agenda item: Proposed changes to Section 6694—Understatement of Taxpayer Liability by Return Preparer By George E. Marifian Federal Taxation, August 2008 These Comments address the need for amendments to recent changes to the tax return preparer penalty and the definition of tax return preparer in IRC Sections 6694 and 7701(a)(36).
Legislative agenda item: Proposed changes to Section 6694—Understatement of Taxpayer Liability by Return Preparer By George E. Marifian Federal Taxation, August 2008 These Comments address the need for amendments to recent changes to the tax return preparer penalty and the definition of tax return preparer in IRC Sections 6694 and 7701(a)(36).
Summary of the new proposed ROT (and use tax) regulations as they relate to vehicles—Effective July 1, 2008 State and Local Taxation, August 2008 Recently, the Illinois Department of Revenue has proposed amendments to its existing (1) dealer incentive/rebate rules, (2) drive away vehicle rules and (3) Interim Use Rules. Such rules significantly change how the Illinois Retailers Occupation Tax and Use Tax apply in these areas.
Recent decisions in real estate tax cases By Timothy E. Moran State and Local Taxation, July 2008 Plaintiff brought action to quiet title in a case where it had redeemed taxes and acquired title to the property from the former owner.
Recent procedural developments in real property taxation By Jacqueline Gianneschi State and Local Taxation, June 2008 Recent cases of interest to real estate tax practitioners.
Collection issues and the IRS By William M. Gasa Federal Taxation, May 2008 As 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 update By Thomas F. Arends Federal Taxation, May 2008 The 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 taxation By Julie-April Montgomery State and Local Taxation, May 2008 As 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 assets By David J. Kupiec and Natalie M. Martin State and Local Taxation, May 2008 On 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.  
Appellate court rules on utility corridors and burdens of proof, persuasion and production in PTAB appeals By Scott E. Longstreet State and Local Taxation, April 2008 The Second District Appellate Court recently issued an opinion regarding the assessment of high-voltage transmission corridor parcels owned by Commonwealth Edison Company (“ComEd”).
January 2008 IDOR Practitioners Meetings By Stanley R. Kaminski State and Local Taxation, April 2008 Questions and answers from the January, 2008 Illinois Department of Revenue Practitioners Meeting.
Collecting the rent: Renting real estate to your business By Roman A. Basi Federal Taxation, March 2008 All too often when meeting with a client, I determine that one of the largest assets in their company is real estate.
Corporate and partnership update By David F. Jarmusz Federal Taxation, March 2008 Changes to corporate and partnership laws.
Court strips Chicago of its exotic dancing tax as violating the First Amendment By Stanley R. Kaminski State and Local Taxation, March 2008 A summary of Pooh-Bah Enterprises, Inc. v. County of Cook, et al.
Tax-exemption and charity care update By Carolyn V. Metnick Health Care Law, March 2008 Many 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 summary By Stanley R. Kaminski State and Local Taxation, February 2008 Pooh-Bah Enterprises, Inc. v. Cook County, City of Chicago, et al, Ill. App. Court. (1st Dist. 12\21\2007)
Content-based regulations run afoul of the First Amendment—Pooh-Bah Enterprises, Inc. v. County of Cook By John H. Brechin Local Government Law, February 2008 In 1999, the City and County amended their amusement tax ordinances with the intent to foster the production of live performances that offer theatrical, musical or cultural enrichment.
Illinois Appellate Court affirms Department of Revenue’s treatment of electricity for Investment Tax Credit purposes and limits Uniformity Clause application for credits By David J. Kupiec and Natalie M. Martin State and Local Taxation, February 2008 In 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.
Should a utility company be responsible for property taxes on a utility easement? By Francis W. O’Malley Real Estate Law, February 2008 Most properties are encumbered by easements of utilities or regulated entities, such as gas, power or telecommunications easements.
Chicago adds new taxes for 2008 By Stanley R. Kaminski State and Local Taxation, January 2008 The City of Chicago has increased a number of its taxes, effective January 1, 2008.
A note from the Co-Editors By Mary Ann Connelly State and Local Taxation, January 2008 Happy 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 agencies By Stanley R. Kaminski State and Local Taxation, December 2007 Massachusetts 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” changes By Edward J. Fellin Federal Taxation, December 2007 The 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.