Publications

Section Newsletter Articles on Taxation

Foreclosures and real property tax valuation revisited: Continuing challenges and responses By Thomas A. Jaconetty State and Local Taxation, October 2012 A look at the complex issues involved in determining market value of real property in the current economic environment without comprising the principles of appraisal and valuation of real property.
Gift tax annual exclusion concerns when conveying business interests By Hugh F. Drake Trusts and Estates, October 2012 A recent Tax Court decision in Wimmer v. Commissioner holds that limited partnership interests gifted over a period of years qualified for the gift tax annual exclusion due to the receipt of income distributions from the partnership.
97th General Assembly state and local tax legislation now law By William Seitz State and Local Taxation, September 2012 New laws relating to state & local tax.
Due process tax nexus and the expatriate inter vivos trust By Stanley R. Kaminski State and Local Taxation, September 2012 Is it legal for the original domiciliary state to continue to impose an income tax on a now-expatriated trust, given the fact that the trust no longer has any contacts with the state?
Electronic filing safeguards By James Creech Federal Taxation, September 2012 While electronic filing has made most taxpayer’s lives easier, it has also created issues with unauthorized filing of tax returns.
Gift tax annual exclusion concerns when conveying business interests By Hugh F. Drake Business Advice and Financial Planning, September 2012 A recent Tax Court decision in Wimmer v. Commissioner holds that limited partnership interests gifted over a period of years qualified for the gift tax annual exclusion due to the receipt of income distributions from the partnership.
ISBA Federal Tax Section Council goes to Washington By James Creech Federal Taxation, September 2012 On May 9th and 10th, 2012 the Federal Taxation Section Council made its annual trip to DC to advise our nation’s leaders on tax issues.
Proposed technical correction to Section 7430—Awarding of costs and certain fees By George E. Marifian Federal Taxation, September 2012 Section 7430, as currently drafted, allows Revenue Agents to take unreasonable initial positions in an examination with no adverse consequences for such unreasonable positions.
Tax reform policy considerations By Leonard S. DeFranco Federal Taxation, September 2012 A list of principles that the Federal Taxation Section Council believes should be adhered to as Congress tackles simplification of the tax code.
Taxation without borders: Allowing states to collect tax from out-of-state sellers By Gregory A. Zbylut Federal Taxation, September 2012 The proposals in this article offer a workable and sustainable solution to provide brick-and-mortar retailers some modicum of protection, without unduly burdening Internet retailers and discouraging further growth. 
AT&T Teleholdings, Inc. v. Department of Revenue By David P. Dorner State and Local Taxation, August 2012 In a Rule 23 Order, the appellate court ruled in favor of the Illinois Department of Revenue, holding that AT&T Teleholdings may not use the combined apportionment method to allocate its unitary business group’s 2002 net capital loss among its members for purposes of carrying back the loss to 1999, a tax year in which its members were members of different unitary business groups.    
Cook County tobacco wholesalers succeed in limiting Cook County tobacco tax By Elinor Harter State and Local Taxation, August 2012 In Arangold Corporation v. Cook County, two local wholesale tobacco distributors were substantially successful in their action brought against the Cook County Department of Revenue challenging the constitutionality of the County’s broad expansion of the Cook County Tobacco Tax Ordinance. 
Illinois Amazon law declared unconstitutional By Carolyn Sprinchorn State and Local Taxation, July 2012 A look at Performance Marketing Association, Inc. v. Hamer.
Appellate court upholds finding that doubled interest is improper under 2003 Illinois Amnesty Program By Kathleen M. Lach State and Local Taxation, June 2012 The Metropolitan Life Insurance Company v. Hamer court found, and the appellate court upheld, that the phrase “all taxes due” within the Tax Delinquency Amnesty Act did not encompass taxes that were not already assessed.
Case note: Clarcor, Inc. v. Hamer By Brian E. Fliflet State and Local Taxation, June 2012 A summary of the recent decision in Clarcor, Inc. v. Hamer.
How do foreclosures affect real property tax valuation? And what can we do about it? By Thomas A. Jaconetty State and Local Taxation, May 2012 Some insight to help us find within our commonly-accepted principles a framework for confronting the challenges of a depressed economy and a national real estate market under severe stress.
Another taxpayer victory on defined value formula clauses: Estate of Petter v. Commissioner By Ryan A. Walsh Federal Taxation, April 2012 Defined value clauses like the ones used by Anne Petter allow a taxpayer to transfer difficult-to-value assets while minimizing potential transfer taxes.
Appellate court holds treasurer not subject to higher post-judgment interest rate with indemnity awards By Mary Nicolau State and Local Taxation, April 2012 The Illinois Appellate Court recently issued a unanimous opinion addressing the post-judgment interest rate applicable to awards made pursuant to the Indemnity Fund.
For what it’s worth—Odds and ends By Paul A. Meints Federal Taxation, April 2012 Updates of interest to tax practitioners.
List of recent Illinois decisions State and Local Taxation, April 2012 Recent tax cases of note.
Roth 401(k) plans By Leonard S. DeFranco Federal Taxation, April 2012 An overview of Roth accounts for retirement planning.
IDOR Practitioners Meeting, February 3, 2012— Questions Submitted in Advance State and Local Taxation, March 2012 Questions and answers from the Illinois Department of Revenue Practitioners Meeting.
Taxation of software licenses in Illinois: Is the “click” as mighty as the pen? By Paul G. Bogdanski and David P. Dorner State and Local Taxation, January 2012 In Illinois, the imposition of sales and use tax is statutorily limited to transfers of “ownership of” or “title to” tangible personal property in a retail transaction. Accordingly, unlike most other states, Illinois does not impose sales or use tax on the rental, lease or license of tangible personal property, since these type of transactions do not convey ownership or title to the property being rented, leased or licensed.
Audit Alert—A summary of the IRS Audit Plans for 2012 By James C. Krupp Federal Taxation, December 2011 Some notable “planned audits” and “performance challenges” for fiscal year 2012.
Be aware—A practical reminder as tax season approaches By Gregory A. Zbylut Federal Taxation, December 2011 A list of clients and issues to watch for.
Does the loss of the Long Time Occupant Homestead Exemption increase taxes, or does it merely reflect the removal of a previously granted protection no longer needed because of the declining market? By Gary H. Smith State and Local Taxation, December 2011 What effect does a reduced Long Time Occupant Homestead Exemption in a depreciating real estate market have upon the tax burden to the long-time homeowner?
Historical review of inflation adjustments to estate tax exemptions By Gregg M. Simon Trusts and Estates, December 2011 A compilation of tables that illustrate the changes that have been made in estate tax exemptions over the years.
The Illinois gift tax and a planning opportunity, perhaps? By Gary R. Gehlbach Trusts and Estates, December 2011 With the $5 million federal gift and estate tax exemption and the $2 million Illinois estate tax exemption, a popular planning technique is to have clients make substantial lifetime gifts, using some or all of their $5 million federal gift tax exemption.
IRS guidance on carryover basis for 2010 decedents By Ryan A. Walsh Federal Taxation, December 2011 Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax, is now due January 17, 2012.
Potential presidential Republican candidates’ federal income tax proposals By Lauran Corcoran Federal Taxation, December 2011 A brief summary of the plans set forth by Rick Perry and Herman Cain.