Illinois Appellate Court Affirms Tax Tribunal Decision Holding That Subsidiary Was Improperly Excluded from Parent Company’s Illinois Unitary Group as Subsidiary Was Not an 80/20 Company
By David J. Kupiec, JD,CPA & Natalie Martin, JD
State and Local Taxation,
April 2025
On March 19, 2025, the Illinois Appellate Court issued an order in Pepsico, Inc. and Affiliates v. The Illinois Department of Revenue and The Illinois Independent Tax Tribunal, 2025 IL App (1st) 230913-U, Third Division (March 19, 2025), holding that The Independent Tax Tribunal, properly entered a judgment in favor of the Illinois Department of Revenue. The Court agreed with the Department’s determination that a subsidiary’s income was improperly excluded from the parent corporation’s income tax returns. In addition, the Appellate Court held that the Tax Tribunal properly declined to abate tax penalties imposed against the parent corporation.
Illinois Appellate Court Holds Lowe’s Violated the Illinois False Claims Act by Remitting Illinois Use Tax and Not Retailers’ Occupation Tax on Certain Appliance Sales After Receiving Guidance in 2015 Department of Revenue Compliance Alert
By David J. Kupiec, JD,CPA & Natalie Martin, JD
State and Local Taxation,
November 2024
On September 30, 2024, the Illinois Appellate Court issued an order in People of the State of Illinois, ex rel., Richard Lindblom and Ralph Lindblom v. Lowe’s Home Centers, LLC, Sears Brands, LLC, Home Depot U.S.A., Inc., Best Buy Stores, L.P., and Gregg Appliances, Inc., affirming in part and reversing in part the trial court’s judgment finding Lowe’s Home Centers, LLC liable for violating the Illinois False Claims Act and remanding the matter for a new trial on the issue of damages.
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