Articles on Taxation | Illinois State Bar Association

Join us for a tax day diversion! Lawyer’s Workshop makes Downstate debut April 15 By Alice M. Noble-Allgire Racial and Ethnic Minorities and the Law, February 2005 A distinguished slate of Metro East lawyers and judges has been assembled for this year's Lawyer's Workshop, which is making its debut in downstate Illinois with a mix of "nuts and bolts" and "cutting edge" presentations on Family Law, Civil Discovery, Attorney Ethics and Federal Practice.

Illinois’ license fee increases under attack By Stanley R. Kaminski State and Local Taxation, January 2005 On November 29, 2004, Judge Patrick McGann of the Circuit Court of Cook County (Chancery Division) struck down as unconstitutional the surcharge imposed on Employers' Workers Compensation Insurance Premiums by Public Act 93-0032 (the fiscal year 2004 budget implementation act). 215 ILCS 5/416.

In re Application of the County Treasurer et al David Wright v. Glen Investments By Steven Kandelman State and Local Taxation, January 2005 Petitioner, David Wright, was the owner of the home in which he resided. Petitioner's procrastination in paying his taxes caused his house to be sold three times at a tax sale and each time he redeemed it before the deadline.

93rd General Assembly 2003/04 Legislation-Summary By Donald T. Rubin State and Local Taxation, December 2004 Public Act No. Statute Affected Brief Description Effective Date P.A. 93-0017

Corporate and partnership tax update By Kelli E. Madigan Federal Taxation, December 2004 The tax court in Comtek considered, after stipulation of facts by the taxpayer and the Service, whether the taxpayer, a Connecticut corporation, and Crocus International, a Russian corporation, were joint venturers.

Correction State and Local Taxation, December 2004 In the November 2004 issue of Tax Trends, John Norris was mistakenly listed as author of the article entitled, "2004 IDOR Practitioners' Meeting Questions and Answers."

Estate and gift tax update By Sarah Delano Pavlik Federal Taxation, December 2004 Two significant opinions have been released regarding family limited partnerships and Section 2036 of the Internal Revenue Code, one by the Fifth Circuit Court of Appeals and one by the Third Circuit Court of Appeals

Individual income tax update By James H. Schultz Federal Taxation, December 2004 The Working Families Tax Relief Act of 2004 and American Jobs Creation Act of 2004 represent an election year gift for the individual taxpayer.

Tax rulings By James K. Say Trusts and Estates, December 2004 PLRs 2004-32027, 2004-32028, and 2004-32029 (8/6/04) were requests brought by three siblings to determine whether an IRA owned by their father could still be subdivided to each of them, even though the IRA had passed through a trust which had itself paid various estate and administrative expenses from IRA assets.

2004 IDOR Practitioners’ Meeting Questions and Answers State and Local Taxation, November 2004 1. Why must refunds of state and local income taxes, other than Illinois, previously deducted on US 1040 schedule A in prior years and included on current year US 1040 page 1, be reported as a subtraction on line 9? Why not change the reporting for IL 1040 line 7?

Update on Tax Cases (06/01/2004 to 10/25/2004) State and Local Taxation, November 2004 Recent cases of interest.

The 24th Annual State and Local Taxation Conference By Alexander P. White State and Local Taxation, October 2004 The 24th Annual State and Local Taxation Conference of the National Conference of State Tax Judges took place in Chicago, Illinois on Thursday, September 30 through Saturday, October 2, 2004.

Illinois enacts new tax shelter legislation By John B. Truskowski State and Local Taxation, October 2004 On July 30, 2004, Governor Blagojevich signed Senate Bill 2207 (Public Act 93-0840), which includes three sets of new tax shelter provisions that are now added to the Illinois Income Tax Act. 35 ILCS 5/101 et seq.

Revenue Ruling 2004-64 provides guidance on the grantor’s payment of income taxes for irrevocable trust By Justin J. Karubas Trusts and Estates, October 2004 On July 6, 2004, the Service issued Revenue Ruling 200464 providing that for gift tax purposes, there will be no gift when grantor pays income taxes, but depending on how those payments are reimbursed there may be estate tax inclusion.

State tax consequences for community college student housing By John Cummins Business Advice and Financial Planning, October 2004 Recently community colleges in Illinois began exploring the possibilities of constructing housing facilities for their students.

Barge company wins commerce clause case in American River Transportation Company v. Bower, __ N. E. 2d __ ( Ill. App. 2004) 19-15-326-017-0000 State and Local Taxation, September 2004 The Illinois Appellate Court, Second District, recently determined that Illinois’ imposition of use tax on the consumption of fuel and supplies acquired outside Illinois and consumed by vessels engaged in the transport of bulk cargo between Illinois and New Orleans was improper.

Exchange tax dollars for investment dollars By Hugh E. Pollard State and Local Taxation, September 2004 Would you like to show your clients how to increase their wealth using tax-deferred dollars?

The 7 percent assessment cap creates uncertainty in residential real estate closings By John K. Norris State and Local Taxation, August 2004 I'm back," and with those often-heard remarks still ringing, let us revisit an issue that our Section Council was involved in during the past year: Public Act 93-715 is the embodiment of three bills that the Section collectively opposed.

Changes to Illinois’ tax laws By Stanley R. Kaminski State and Local Taxation, August 2004 1. New Watercraft Use Tax enacted on the privilege of using any watercraft acquired by any means other than a purchase at retail from a retailer which is already subject to Illinois Sales\Use Tax.

The ins and outs of understanding the Illinois Income Tax By Stanley R. Kaminski State and Local Taxation, July 2004 This article is taken from the recent Illinois State Bar Association (Law Ed Services) Seminar presented by the ISBA State and Local Taxation Section Council at the 2004 ISBA Annual Meeting on June 19, 2004, at the Abbey in Fontana, Wisconsin.

Swilley, et al. v. County of Cook, et al. By Steven Kandelman State and Local Taxation, July 2004 Factual Background: The Plaintiffs, a group of taxpayers, challenged the Cook County Treasurer's authority to transfer property to the City of Chicago, for no cash.

Case summary By Steven Kandelman State and Local Taxation, June 2004 Procedural History: The Illinois Department of Revenue found that the Plaintiff, the Calvary Baptist Church of Tilton ("Calvary"), did not qualify for the religious purposes tax exemption.

Corporation and partnership tax update By Kelli E. Madigan Federal Taxation, June 2004 1. Charles Schwab Corp., 122 T.C. 191 (March 9, 2004). The taxpayer successfully showed the value and useful life of discount brokerage customer accounts purchased from a discount stock brokerage and was therefore entitled to amortize them under Internal Revenue Code Section 167.

Estate and gift tax update By Edward J. Schoen, Jr. Federal Taxation, June 2004 In TAM 200341002, a father created an irrevocable trust and appointed one of his children as trustee.

Real property tax advantages of a Class L (Landmark) designation By Karen Dimond State and Local Taxation, June 2004 Under the Cook County Real Assessment Classification Ordinance, non-residential property that has been designated a landmark building or a contributing building in a historic or landmark district may be eligible for a "Class L" designation.

Tax procedure and administration update: Innocent spouse - Equitable relief available under IRC section 6015(f) By William M. Gasa Federal Civil Practice, June 2004 Section 3201(c) of the Internal Revenue Service Restructuring and Reform Act of 1998, commonly known as RRA 98, enacted Section 6015 and amended Section 66(c) of the IRC, hereinafter referred to as the Code.

Estate and gift tax update By Sarah Delano Pavlik Federal Taxation, May 2004 1. 2004 Numbers. As of January 1, 2004, the federal and Illinois estate tax exemption amount is $1.5 million, and the unified credit amount is $555,800.

The Illinois Supreme Court limits the ability of consumers to challenge state taxes: An analysis of Wexler v. The Wirtz Corporation, Illinois Supreme Court, April 1, 2004 State and Local Taxation, May 2004 In Wexler v. The Wirtz Corporation, the Illinois Supreme Court narrowed when consumers of products have standing to challenge taxes in Illinois.

Individual income tax update By James S. Zmuda Federal Taxation, May 2004 In Montgomery, 122 T.C. No. 1 (2004), the Montgomerys filed a joint return reporting tax due of $196,006. The taxpayers did not remit the payment. The Internal Revenue Service ("IRS") assessed the reported tax, accepted the return as filed and did not audit the return or issue a notice of deficiency.

Tax administration and procedure update By Thomas F. Arends & Richard M. Colombik Federal Taxation, May 2004 The editorial staff of the newsletter would like to inform members of the Federal Taxation Section that Mr. Thomas Arends and Mr. William Gasa of the Section Council currently serve as liaisons for the Section to the Internal Revenue Service.

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