Publications

Section Newsletter Articles on Taxation

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.
Phantom gain—It’s magic “Minimum” gain arising from partnership nonrecourse debt By Derek P. Usman Federal Taxation, December 2007 Section 702(a) provides a list of items arising from partnership operations that are to be separately distributed to each partner.
A review of the 26th Annual State and Local Taxation Conference of the National Conference of State Tax Judges By Judge Alexander P. White State and Local Taxation, December 2007 The 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 misconduct By Kevin Thorn Federal Taxation, December 2007 On 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 644 By John K. Norris State and Local Taxation, November 2007 Any 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, 2008 By Brian M. Pinheiro and Jacquelyn M. Gray Corporate Law Departments, November 2007 On 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 offers limited relief from year-end deadline for compliance with Code Section 409A By J. Paul Jacobson Corporate Law Departments, November 2007 On September 10, 2007, the IRS released Notice 2007-78 (the “Notice”), containing a limited extension of the deadline for bringing documents into compliance with Code Section 409A.
95th General Assembly: Governor Actions By William Seitz State and Local Taxation, October 2007 New laws signed by the Governor.
IRS Collection Financial Standards Federal Taxation, October 2007 Effective October 1, 2007, the IRS Collection Financial Standards for use in calculating repayment of delinquent taxes have been revised.
IRS Stakeholder Liaison Federal Taxation, October 2007 Information of interest to tax practitioners.
IRS Telephone Directory for Practitioners Federal Taxation, October 2007 Information of interest to tax practitioners.
Valuing private company stock: Determining fair market value for purposes of §409A By Alan R. Singleton Federal Taxation, October 2007 Internal 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” changes By Edward J. Fellin Trusts and Estates, September 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.
A new franchise tax amnesty and some major changes to the Illinois income tax signed into law By Stanley R. Kaminski State and Local Taxation, September 2007 By the Governor’s signing of SB 1544 ( now Public Act 095-0233), Illinois has enacted MAJOR changes to its Income Tax, as well as instituted a new Franchise Tax Amnesty and made a small change to its sales tax.
The role of attorney-accountants in administrative state and local tax proceedings By Julie-April Montgomery State and Local Taxation, September 2007 Your company just received a sales tax notice of tax liability from the Illinois Department of Revenue for hardware sold to a Chicago company along with the lease of various software packages that are both customized and canned.
Alternative Minimum Tax By Sarah Delano Pavlik Federal Taxation, August 2007 Everyone agrees that something must be done to fix the alternative minimum tax (AMT).
Amendment to applicable sections of the Internal Revenue Code: Changing the deductibility of attorney fees By Sarah Delano Pavlik Federal Taxation, August 2007 In previous years, we discussed the case of Officer Cynthia Spina which made national headlines in 2002.
Estate Tax Repeal By Robert J. Krupp Federal Taxation, August 2007 The debate surrounding the estate tax focuses on eliminating the tax in total or reforming it by increasing the exemption level and lowering the top rate.
Offer in compromise By George E. Marifian Federal Taxation, August 2007 These Comments are submitted partly in response to changes to the offer in compromise program (the “OIC Program”) enacted as part of the Tax Increase Prevention and Reconciliation Act of 2005 (Pub. L. No. 109-222) (“TIPRA”).
The taxman cometh By Julie-April Montgomery State and Local Taxation, August 2007 The following outline was originally presented at the ISBA May 24, 2007 seminar.
Recent decisions in real estate tax cases By Timothy E. Moran State and Local Taxation, July 2007 Taxing districts filed petitions to intervene in certain tax objection cases brought by property owners seeking refunds of property taxes paid.