Section Newsletters

Articles on Taxation

USX Corporation v. White (1st. Dist. 2004) By John B. Truskowski State and Local Taxation, May 2004 The appellate court upheld the Illinois Secretary of State's determination that a reverse triangular merger was not a statutory merger for Illinois franchise tax purposes.
Recent decisions in real estate tax cases By Timothy E. Moran State and Local Taxation, April 2004 Appellate court reversed granting of agricultural exemption, and remanded for application of four-part test to determine the property's primary use.
Taxpayers beware: Illinois broadens its state and local real estate transfer taxes By Stanley R. Kaminski State and Local Taxation, April 2004 Effective June 1, 2004, the Illinois Real Estate Transfer Tax has been expanded to include not only transfers of real property by deeds and beneficial interests in land trusts, but also: (a) the transfer of ground leases that provide for a term of 30 years or more; and (b) the indirect transfer of an interest in real property as reflected by the transfer of a controlling interest in a real estate entity.
United Airlines, Inc. v. Maria Pappas, Cook County Treasurer and Ex-Officio County Collector (Ill. App. Ct., 1st Dist., decided 2/27/04) State and Local Taxation, April 2004 This is a consolidated appeal for the 1994, 1995 and 1996 tax years, which involves United Airlines, Inc.'s objection to the real estate assessment pertaining to its leasehold interest of terminal space at O'Hare Airport.
The 70-80 percent tax trap: How to help clients avoid the double taxation of money in their qualified plan or IRA By Roccy DeFrancesco Federal Taxation, March 2004 The 70-80 percent tax problem revolves around the topic of income in respect to a decedent (IRD). IRD includes any income an individual is entitled to but does not receive over his/her lifetime.
Circuit court requires the Department of Revenue to have evidence to support its administrative decision: A review of Hollinger International, Inc. v. Bower, 02 L 051514 (Cir. Ct. Cook, 1/6/04) By Stanley R. Kaminski State and Local Taxation, March 2004 In a rare reversal of an administrative decision of the Illinois Department of Revenue ("Department") under the "manifest weight of the evidence" standard, the Cook County Circuit Court held that the Department's findings "still must be supported by the evidence," to be prima facie correct.
Corporate and partnership tax update By James S. Zmuda Federal Taxation, March 2004 In Alphonse Mourad, 121 T.C. No. 1 (2003), the Tax Court ruled that a Chapter 11 filing does not cause termination of a corporation's S status.
Recent decisions in real estate tax cases By Timothy E. Moran State and Local Taxation, March 2004 Appellate Court affirmed granting of charitable-use exemption to senior housing facility.
Tax administration and procedure update By Thomas F. Arends & Richard M. Colombik Federal Taxation, March 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.
The United States Virgin Islands tax incentive Programs By Donna F. Hartl Federal Taxation, March 2004 The United States Virgin Islands (USVI) offers incentives to certain qualified businesses. If a qualifying business is established in the U.S. Virgin Islands and hires a minimum number of local employees, it may be eligible for government tax incentives which will eliminate a large percentage of income taxes and local taxes for up to 10 years or more.
The 70-80 percent tax trap: How to help clients avoid the double taxation of money in their qualified plan or IRA By Roccy DeFrancesco Business Advice and Financial Planning, February 2004 The 70-80 percent tax problem revolves around the topic of Income in Respect to Decedent(IRD). IRD includes any income an individual is entitled to but does not receive over his/her lifetime.
Caution- Is the 412(i) defined benefit plan the right income tax reduction plan for your clients? By Roccy DeFrancesco Federal Taxation, February 2004 First it was charitable split dollar, then IRC section 419A(f)6 and soon it could be the 412(i) defined benefit plan.
Envirodyne case summary By John B. Truskowski State and Local Taxation, February 2004 In a rare decision by a federal appellate court involving Illinois taxes, the Seventh Circuit ruled that two subsidiaries of a holding company were not part of a unitary business group.
Estate and gift tax update By Kelli E. Madigan Federal Taxation, February 2004 Decedent's estate was entitled to an estate tax charitable deduction under §2055(a) equal to the present value of the remainder interest in two trusts reformed under local law pursuant to Reg. §20.2055-2(e)(2).
The importance of “government” for taxes By Julie-April Montgomery State and Local Taxation, February 2004 The power of government to tax is of unequivocal importance in today's modern society. But what is government for purposes of taxation?
Minimizing risk in taxable portfolios: Initiating and closing out derivative transactions without unexpected tax consequences By Randall H. Borkus Federal Taxation, February 2004 Financial derivatives provide insurance and wealth protection for taxable portfolios. Derivative instruments are complex risk management tools that require knowledge of stochastic calculus algorithms and theorems to establish accurate pricing.
Some interesting IRS rulings By Mark E. Zumdahl Trusts and Estates, February 2004 PLR 200340012-In this Private Letter Ruling, the IRS ruled favorably whether decedent's interest in rental real estate qualified as a closely held business for purposes of electing installment payment of estate taxes under §6166 of the Internal Revenue Code.
Tax administration and procedure update By Thomas F. Arends & Richard M. Colombik Federal Taxation, February 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.
Tax Court decision By Mark E. Zumdahl Trusts and Estates, February 2004 Estate of Mildred Green v. Commissioner, TC Memo 2003-348 decided by the Tax Court, illustrates the importance of a clearly drafted tax apportionment clause.
Accounting says maybe, but the tax laws say yes By Bart A. Basi Business and Securities Law, January 2004 This year is the first full year in which the Financial Accounting Standards Board's (FASB) guidance on how to account for goodwill and other unidentifiable intangible assets is in effect for presentation in financial statements.
Cook County Board of Review v. Property Tax Appeal Board and The Lurie Company, Docket No. 1-01-3232 (1st Dist., December 16, 2003) By Timothy E. Moran State and Local Taxation, January 2004 In August 2002, the appellate court issued its ruling in Board of Review v. Property Tax Appeal Board (Bosch).
Follett Corporation v. Illinois Dept. of Revenue (4th Dist. 2003) By John B. Truskowski State and Local Taxation, January 2004 The appellate court upheld the Circuit Court of Sangamon County's decision that Follett must include in the numerator of its sales factor sales from Illinois to a state in which Follett was not taxable, but another member of Follett's unitary business group was.
Historical perspective Trusts and Estates, December 2003 For many years, Illinois, like many states, had its own death tax system. In the case of Illinois, this was an inheritance tax (varying according to the relationship of the recipient to the deceased).
An overview of the recent “TIF” ruling in Board of Education v. Burr Ridge By Mary Nicolau State and Local Taxation, December 2003 For many communities, Tax Increment Financing ("TIF") plays an important role in luring developers to develop properties.
Zebra Technologies Corporation v. Topinka By Stanley R. Kaminski State and Local Taxation, December 2003 On October 27, 2003 the Illinois Appellate Court issued its modified decision (upon rehearing) in the Zebra Technologies ("Zebra") case.
Illinois sales and use tax exemptions By John B. Truskowski State and Local Taxation, November 2003 Recent legislation made significant changes to the Illinois sales and use tax exemptions. Some of the existing exemptions were repealed, while new ones were added.
Recent decisions in real estate taxes By Timothy E. Moran State and Local Taxation, November 2003 In the Matter of the Application of the County Treasurer et al v. Phoenix Bond and Indemnity Company, (Docket No. 1-02-2539) (Rule 23) Ill.App. (1st Dist.), decision issued July 24, 2003.
Case study: Employing complex financial and operative techniques to keep a troubled TIF afloat: Sauk Village’s experience with its own TIF III By Lou Vitullo & Brandon Hummel Local Government Law, October 2003 Sauk Village's ("Village") experience with its third tax-increment financing district ("TIF III") provides invaluable insight into how a municipality can use creative operational and financial techniques to steer a TIF through economically trying times and ultimately to financial recovery.
Illinois’ new tax amnesty By Stanley R. Kaminski State and Local Taxation, October 2003 Effective October 1, 2003 and running through November 17, 2003, taxpayers in Illinois will be able to take advantage of a new Illinois tax amnesty.
Preemption-The covert exemption By Julie-April Montgomery State and Local Taxation, October 2003 Everyone is constantly seeking a way to legally avoid the payment of taxes to which they can be subject. To that end, one is normally aware that the greatest source for such relief is an exemption.

Select a Different Subject