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May 7, 2013
Urgent Update to "The Most Important Sales Tax Change"
Yesterday, the United States Senate passed a bill that will require remote retailers (including those in foreign countries) to collect sales and use taxes across the United States.
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April 25, 2013
City Seeks to Increase Revenue by Taxing Deed-in-Lieu Transactions
In an effort to increase transfer tax revenue, the City of Chicago seeks to amend its Municipal Code in a manner that would result in tax liability for some real estate investors on transfers of real property that traditionally have been treated as exempt transfers.
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April 12, 2013
Advising Foreign Businesses on U.S. State and Local Taxation
Taxes imposed by states and localities in the United States can be a source of confusion for foreign business entities making sales in or into the United States, and for foreign tax professionals advising those businesses.
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April 1, 2013
Mortgage Foreclosure Alert - Alternative Means to Sell Property Under Illinois Mortgage Foreclosure Act
For many foreclosure sales, the typical sale process – selling the property at a court-ordered auction – is sufficient. The result of most such sales is the bank “credit bidding” against its debt. In certain cases, however, a traditional judicial auction may not be appropriate.
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April 1, 2013
Federally Deductible Employee Benefits Are Not Subject to the Texas Margins Tax
On March 18, 2013, the Travis County, Texas District Court held that an employer could deduct the costs of benefits, including parking expenses, occupation taxes, and continuing education expenses when calculating its taxable income under the Texas franchise tax.
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March 25, 2013
Real Estate Lending and Equity Deal Terms for Middle Market Real Estate Investors, Spring 2013
Commercial real estate loan origination growth remained steady for the first quarter of 2013. Among property types, health care properties saw the largest increase in loan originations in 2012 with a 33% increase over 2011. Multi-family property loan originations for 2012 also spiked 30% over the prior year. Hotel properties proved to be the dark horse of 2012 originations with an unexpected increase of 8% over 2011, while retail properties enjoyed origination growth of 24% in 2012.
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March 18, 2013
Commercial Lending and Equity Deal Terms for Middle Market Businesses, Spring 2013
As the dust settled on Capitol Hill following yet another year-end fiscal cliff crisis, middle market borrowers and lenders alike were hoping that the opening months of 2013 would establish a sense of stability and certainty with respect to the middle market lending market allowing businesses to invest in capital improvements with debt. Unfortunately, all indications point to prolonged uncertainty and a continuation of the status quo for the foreseeable future.
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March 18, 2013
Cook County Non-Titled Use Tax To Go Into Effect April 1, 2013
On April 1, 2013, the Cook County Non-Titled Personal Property Use Tax will go into effect. The tax is imposed at 1.25% of the value of property when it is first brought into the county after being purchased elsewhere.
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March 13, 2013
Fiduciary Alert - Fiduciaries Beware: New California Franchise Tax Notice Requirements
Since the 1990s, The California Revenue & Tax Code has had a provision that requires bankruptcy trustees and like fiduciaries to give specific notice to the Franchise Tax Board upon their appointment. Historically, fiduciaries in many cases have merely filed a copy of the federal notice required under Treasury Regulation §301.60663-1. However, the Franchise Tax Board determined that a regulation would assist with administration of the statutory section.
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March 5, 2013
Banking Alert - Mortgage Case Reversed
About a year ago, we sent an alert concerning an opinion in a bankruptcy court matter from the Central District of Illinois that held that the failure of a mortgage to contain the interest rate or maturity date constituted noncompliance with the Illinois Conveyance Act. The result, held the court, was that the mortgage did not provide constructive notice to third parties and that the mortgage was avoidable by a trustee in bankruptcy.
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January 24, 2013
Estate Planning After the Cliff: What You Need to Know
On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012, which retroactively extended most of the tax breaks for individuals that expired on January 1, 2013. This Act has allowed individuals and their advisors to engage in estate planning without the uncertainty caused by prior legislation.
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January 17, 2013
Taxpayer Victory In Refund Case Involving Illinois Amnesty Program
The Illinois Appellate Court, 1st District, issued a decision in favor of the taxpayer in Con-Way Transportation Services, Inc. v. Hamer. The Court held that Con-Way Transportation Services, Inc., who was undergoing a federal audit at the time of an Illinois amnesty program, is entitled to a refund of tax paid under amnesty for the 1997 tax year. Fred Marcus and Jennifer Zimmerman of Horwood Marcus & Berk represented the Taxpayer in this case.
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January 9, 2013
American State and Local Taxes for Businesses Headquartered Abroad
European, Asian, and other foreign-based businesses selling goods and services in the United States seek to capture a part of the world's largest consumer market; however, these businesses need to be aware of the tax dangers presented by each of the 50 states.
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January 8, 2013
The Most Important Sales Tax Change in Almost 50 Years
Whether they know it or not, businesses that make sales by mail order, Internet or any other "remote" method have been relying on a 45 year old interpretation of the United States Constitution. That interpretation appears to be overturned, perhaps in the next year.
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January 1, 2013
A Recipe for Bad Tax Policy: False Claims Acts and State Taxation
A handful of relators have mischaracterized complicated and controversial areas of state tax law as having been settled and are instituting actions against taxpayers that have made justifiable decisions regarding their responsibilities.
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December 1, 2012
Understanding Fiduciary Obligations Applicable To Delaware Limited Liability Companies
Delaware’s corporate-friendly laws have long made the state one of the most popular choices for the formation of all types of business entities, based upon a steadfast adherence to a market-based philosophy that generally promotes the negotiated will of seemingly sophisticated business-people, over the impulse to impose paternalistic regulation.
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November 27, 2012
Michigan Court of Appeals Says the Multistate Tax Compact Is Not Binding
On November 20, 2012, the Michigan Court of Appeals, in International Business Machines v. Dep’t of Treasury, held that the taxpayer was not entitled to elect the three factor apportionment formula in the Multistate Tax Compact. This is the first such case to be decided since the Gillette decision in California, which held that the Compact is a binding contract and that the taxpayer was entitled to the election.
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November 5, 2012
American State and Local Taxes: Know What You Do Not Know -- "The Big Three"
Israeli businesses selling goods and services in the United States seek to capture a part of the world’s largest consumer market. However, these businesses need to be aware of the tax dangers presented by each of the 50 states. Unfortunately, most Israeli businesses do not know of these dangers. Based on experience, the following are the three most important state tax unknowns.
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October 18, 2012
Washington May Not Impose Sales Tax on Gross Receipts For Sales Advertised to Include Tax
On Tuesday, October 9, 2012, a Washington State Court of Appeals held that the Department is unambiguously prohibited from using gross receipts as the basis for calculating the retail sales tax owed from a sale advertised as including tax. This case confirms that Washington retailers may "back out" the sales tax from their gross sales so long as the sales are clearly advertised as such.
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October 16, 2012
Use It or Lose It: Unprecedented Gift Tax Exemption Expires at Year-End
Real Estate Group Bulletin sent on Tuesday, October 16, 2012.
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October 9, 2012
Illinois Appellate Court Holds That Taxpayers Must Utilize Capital Loss On a Pre-Apportionment Basis
On September 28, 2012, an Illinois appellate court sided with the Department of Revenue in refusing to allow a taxpayer to claim a refund based on its request to carry back a capital loss incurred by its parent company to offset a capital gain the taxpayer had reported on a prior year’s return.
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October 5, 2012
Protecting and Monitoring Impact as an Investor: Part II
In the first part of this series, I wrote about how an impact investor can track traditional tools used by venture capital investors to protect and monitor an impact investment. In this part, I will discuss a new tool that needs to be created and the traditional concept that serves as its underlying foundation.
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October 4, 2012
Protecting and Monitoring Impact as an Investor: Part I
Impact Investors will be increasingly challenged to distinguish their investment practices from traditional venture capital investors to protect and monitor their impact investments. This two-part series looks at some tactics that will enable impact investors to do just that.
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October 3, 2012
California Court of Appeals Allows UDITPA Election Under the Multistate Tax Compact (Again)
On July 24, 2012, a California Appeals Court ruled in Gillette Co. & Subsidiaries v. Franchise Tax Board that for the years the State was a party to the Multistate Tax Compact, it had to allow taxpayers to elect to use the equal weighted, three part apportionment formula in Article IV of the Compact. The Court vacated the decision on its own ruling shortly after issuing its ruling. On October 2, 2012, the ruling was re-issued in virtually identical form.
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September 19, 2012
Taxpayer Victory in Local Sales Tax Situs Case
On September 17, 2012, the Illinois Appellate Court, Third District, ruled in Hartney Fuel Oil Company v. Hamer, 2012 IL App (3d) 110144, that local tax, for both Retailers’ Occupation Tax (ROT) and Motor Fuel Tax (MFT) purposes, is due based on where acceptance of an order occurs.
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August 31, 2012
Why and When a Sweetheart Will (or No Will at All) is Not Enough
Young couples at the stage where they are having children and purchasing their first home may not realize that they need estate planning. The assets a couple is likely to acquire in the early stages of building wealth, such as a home, retirement accounts and life insurance, often do not pass according to the terms of a Will
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August 30, 2012
Taxpayers May Benefit From Electing the UDITPA Formula on Amended Returns
On July 24, 2012, a California Appeals Court ruled in Gillette Co. & Subsidiaries v. Franchise Tax Board that for the years the State was a party to the Multistate Tax Compact, it had to allow taxpayers to elect to use the equal weighted, three part apportionment formula in Article IV of the Compact
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August 24, 2012
Taxpayer Loss In Illinois Amnesty Interest Case
On August 23, 2012, the Illinois Appellate Court, 1st District, issued a decision against the taxpayer in Marriott International Inc. v. Hamer. The Court held that Marriott International Inc. is subject to a double interest penalty (interest imposed at 200% the statutory rate) due to its failure to participate in the 2003 amnesty program.
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August 15, 2012
Tips for Minimizing the Risk of Fiduciary Litigation
From experience comes lessons for avoiding, or effectively managing, disputes that may arise between trust and estate fiduciaries and beneficiaries.
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July 4, 2012
Blending Real Estate and Philanthropy
This article explores the various alternatives for the real estate owner to leverage charitable giving through planning with real estate.
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June 4, 2012
Family Ties: Leveraging Charitable Giving
This article will explore various cash and non-cash charitable gift alternatives available to families today and will provide examples and techniques for leveraging family charitable giving.
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June 1, 2012
HB 5192 Illinois Independent Tax Tribunal Act of 2012
On Friday, June 1st the Illinois Senate Revenue Committee approved H.B. 5192 establishing an Illinois Independent Tax Tribunal
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May 28, 2012
No Uniformity Shouldn't Be Enough: How the MTC Has Failed
The business community has long awaited a uniform approach to states' corporate income taxes. Without a uniform rule, "there is a risk of both over-taxation and under-taxation of multi-state businesses..."
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May 22, 2012
Bankruptcy Trustee Avoids Mortgages Missing Interest Rate, Maturity Date
Horwood Marcus & Berk Real Estate Group Bulletin
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May 1, 2012
Food Truck Regulations Drive Controversy
Are food trucks the underdog of the food industry or are they a force to be reckoned with? Mobile vending operations are facing a multitude of regulations as this trend gains popularity.
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May 1, 2012
Avoiding Hearsay Traps in Fraudulent Conveyance Litigation
Although there is privity between a debtor's bankruptcy estate (or an appointed Trustee) and the pre-filing entity, the distinction between the two is significant in litigation, particularly with respect to the application of the hearsay rule and the determination of "adverse party" status.
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March 28, 2012
Are Your Secrets 'Thumbing' a Ride?
Electronic storage media are easy and convenient and allow the portability of information. However, portable media devices like USB drives can also be easily stolen or lost. Tracking what information is confidential, who has access to it and restricting how that information is used are key maneuvers for any employer that seeks to protect its information.
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March 18, 2012
American State and Local Taxes: Trends and Developments
Israeli businesses are effective vendors of goods and services, and export some $7 billion of goods and services to the United States annually. However, while mid-sized Israeli businesses commonly plan for taxes enforced by the Internal Revenue Service and covered by the treaty between Israel and the United States, many do not plan for state taxes.
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March 7, 2012
Taxpayer Victory in Illinois Amnesty Interest Case
On March 5, 2012 The Illinois Appellate Court, 1st District, issued a decision in favor of the taxpayer in Metropolitan Life Insurance Company v. Hamer. The Court held that Metropolitan Life Insurance Company is not subject to a double interest penalty due to its failure to participate in the 2003 amnesty program.
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January 4, 2012
Go for the Gold: Attracting and Retaining Key Executives with Incentive Compensation
As companies vie for executives with track records or proven success, executive compensation plans can make the difference to the closely held businesses in attracting and retaining the key personnel required to enhance the value of the entity...
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January 1, 2012
Imagine the Possibilities: Opportunities for Non-Cash Donors
A high percentage of donors, advisors, and charitable organizations are now exploring alternative methods to structure charitable gifts using assets other than cash, and charitable organizations are increasingly accepting these non-cash gifts...
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December 1, 2011
Investing Beyond Exit
Recently, I wrote about a pair of questions that social entrepreneurs should be addressing when “Constructing the Case for Impact Investment.” Here is a third question that social entrepreneurs should also be thinking about and, while this questions relates to an issue that we have seen arise constantly, it should be noted that it does not apply to all social enterprises.
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November 30, 2011
Constructing the Case for Impact Investment
Here is a pair of questions that all social entrepreneurs need to be thinking about when approaching impact investors and making the pitch for investment capital.
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November 28, 2011
New Tax Bill Under Consideration By Illinois General Assembly
On November 27, 2011, Representative John E. Bradley filed House Amendment #3 (“Amendment #3”) to Senate Bill 397 (“SB 397”) with the Illinois General Assembly...
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November 15, 2011
Are You Covered?
For privately held food companies, recall insurance coverage is definitely worth taking a second look.
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November 9, 2011
Tax Bill Under Consideration By Illinois General Assembly
On November 7, 2011, Representative Barbara Flynn Currie filed House Amendment #2 (“Amendment”) to Senate Bill 397 (“SB 397”) with the Illinois General Assembly...
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November 1, 2011
Life Is Short, Art Endures: Issues for Collectors and Their Heirs
Significant collections of art or other “collectibles” can present unique challenges for estate planners, collectors, fiduciaries and their advisors, both during life and after death...
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November 1, 2011
Have You Been Compromised?: Tips for employers who suspect theft of confidential information
Every business has employee turnover. Every business will at some point encounter circumstances which cause the employer to question whether the former employee took confidential information with them upon their departure...
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October 19, 2011
Increased Gift Tax Exemption Only Temporary: Use it or Lose it?
During the short window while the temporary increase in the amount of the gift tax exemption for 2011 and 2012 is in play, taxpayers can take advantage of a variety of tax-reduction opportunities...
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October 19, 2011
Estate, Gift, and GST Taxes: What Actually Happened
The increased gift tax exemption and other provisions contained in the 2011 Act provide tremendous opportunities to save federal estate and GST taxes and if applicable, state estate taxes...
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October 19, 2011
The Art of Non-Cash Charitable Giving
For most Americans, charitable giving is an essential part of their lives...
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October 19, 2011
Illinois Arbitrarily Extends Its Statute of Limitations
The Illinois Department of Revenue has asserted that the Illinois statute of limitations is no longer 3 years, but rather 3 years and 6 months no matter when the return is filed...
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October 17, 2011
Avoiding Litigation: Prohibited Interview Questions
Employers are generally aware that they cannot discriminate against their current employees based on race, skin color, religion, gender, pregnancy, national origin, disability, age or union membership (collectively, the “protected classes”).
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September 12, 2011
California Amazon Nexus Update
On June 28, 2011, California Gov. Jerry Brown signed into law California's budget for fiscal 2011-2012...
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August 11, 2011
Top 10 Tips for Food Safety
How new and existing baking and snack companies can avoid potential food safety problems...
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July 15, 2011
Pack Rat or a Clutter Freak - The Right Records Retention Policy to Protect Your Business Lies Somewhere in Between
Some of us are “pack-rats” – we can’t allow ourselves to throw things away because of the off-chance that they may come in handy one day...
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July 15, 2011
Should You Put All Your Eggs In One Basket?
The Pros and Cons of Exclusive Contract Packaging Service Arrangements - For Both Buyers and Sellers...
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July 1, 2011
Raising Money for Real Estate Deals: Today's Market Terms
As debt financing remains challenging to secure, private financing remains an attractive option...
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June 14, 2011
Cost of Performance Victory - Operational Approach
The Massachusetts Appellate Tax Board (the "Board") on June 8, 2011 issued its written decision in a cost performance matter, holding in favor of AT&T...
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April 1, 2011
Illinois Taxpayer: Don't Pack Your Bags Yet
In the wee hours of January 12, 2011, less than 12 hours before a new and more Republican electorate would be sworn in, the outgoing Illinois General Assembly voted to significantly increase Illinois income tax rates...
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April 1, 2011
The Practicability of the Commercial Impracticability Defense
Commercial impracticability and impossibility are defenses to performance of contracts. Recently, these defenses have been used by parties faced with the inability to obtain commercial financing due to the worldwide financial credit crisis of 2008...
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March 15, 2011
Identifying and Protecting Confidential Information
From proprietary formulas to production processes to marketing strategies, both service buyers and sellers have critical assets that need protection to preserve value...
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March 3, 2011
Nonlitigated Resolutions of Multistate Tax Disputes: Three Case Studies Show How Taxpayers, States Can Find Common Ground
At some point, almost every multistate business will find itself pregnant with a potential state tax dispute....
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February 23, 2011
Beware the tax man…in another state
When Illinois Gov. Pat Quinn pronounced his fiscal house “on fire” in December 2010, many businesses and individuals in the state understandably feared that the lawmaker’s solution to the emergency would be reflected in their tax bills...
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February 16, 2011
Taxpayer Friendly Legislation Introduced in the Illinois Senate
Two “taxpayer friendly” bills were introduced in the Illinois Senate last week...
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February 1, 2011
Mind the Gap: The Current Debate Between States & Municipalities and Online Travel Companies over the Taxability of the Remittance Gap
Breen Schiller describes the current debate between states and municipalities and online travel companies over whether the local hotel occupancy taxes charged by online travel companies should be based upon the retail or the wholesale price...
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January 28, 2011
Preliminary Injunction Blocks Colorado Notification and Reporting Requirements for Out-of-State Retailers
On January 26, 2011, the U.S. District Court for the District of Colorado granted Direct Marketing Association ("DMA") Motion for Preliminary Injunction and enjoined the Colorado Department of Revenue ("Department") from enforcing its sales/use tax notice and reporting requirements on out-of-state retailers who are not required to collect/remit sales tax...
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January 27, 2011
Successful Challenges Under the State (Not Federal) Constitution
Often times, state constitutions are ignored when challenging state tax assessments...
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January 12, 2011
Illinois Houses Approve Increased Income Tax Rates and Moratorium on NOLS
Early this morning (January 12, 2011), Senate Bill 2505 (“S.B. 2505") passed both houses of the Illinois legislature, and it will be sent to the governor for signature...
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January 7, 2011
Amnesty Interest Not Due On Federal RAR Payment
On January 6, 2011, the Circuit Court of Cook County, Illinois addressed the imposition of double interest under the 2003 Tax Delincuency Amnesty Act ("Amnesty Act") and ruled in favor of the taxpayer, Metropolitan Life...
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January 7, 2011
Illinois Houses Approve Amazon and Affiliate Nexus
On January 6, 2011, House Bill 3659 (“H.B. 3659”) passed both houses of the Illinois legislature, and it will be sent to the governor for signature...
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January 1, 2011
Insights and Lessons for Surviving the Sale of a Family Business
A liquidity event can be a major life-changing occasion that requires planning...
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December 16, 2010
Taxes: What To Expect in 2011
Many of the popular tax cuts enacted during the Bush administration automatically expire after December 31, 2010...
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November 15, 2010
Angel Investment Tax Credits: A Win-Win-Win for Taxpayers, New Ventures, and the States
New businesses get an infusion of capital, investors receive a tax credit, and the states see increased employment and innovation that enhance the local economy...
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October 1, 2010
Five of the Dumbest Things You Can Put In an E-mail
The convenience and speed of e-mail makes doing business more efficient...
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October 1, 2010
The Complexities in Sourcing Receipts from the Sale of Other Than Tangible Personal Property
Marilyn Wethekam explores the complexities in sourcing receipts from sales of other than tangible personal property, such as identifying income producing activities, what constitutes direct costs, and the treatment of third-party costs when using the cost of performance method...
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August 17, 2010
Illinois Adopts Amnesty (Again)
On August 16, 2010, Governor Pat Quinn signed SB 377, the amnesty bill that allows delinquent taxpayers to pay back taxes without penalty or interest...
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August 2, 2010
Delaware Enacts Unclaimed Property Administrative Review Process
On July 23, 2010, Delaware Governor Markell signed into law SB 272, which adds a new administrative review process to the state’s Escheats Law and makes other important changes to reporting abandoned and unclaimed property...
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August 2, 2010
Life Insurance Litigation Post-Divorce: Easy to Avoid, Commonly Neglected
Under Illinois law, a former spouse's designation as a beneficiary to a life insurance policy is not automatically terminated upon divorce...
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July 13, 2010
Employment Law Update, July 13, 2010
On June 17, 2010, the United States Supreme Court unanimously upheld an employer’s ability to access and review employee text messages...
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July 1, 2010
Restructuring a Loan With a Third-Party Personal Guarantor
In today's economy, more and more real estate investors are finding themselves in the situation where they have personally guaranteed a loan on a real estate deal that is not performing...
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June 16, 2010
Business Succession Planning for the Family-Owned Food Industry Business
The vast majority of food industry businesses are family-owned or controlled...
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June 4, 2010
Taxpayer Wins Cost of Performance Dispute Through an Operational Analysis
On May 28, 2010, the Massachusetts Appellate Tax Board (the "Board") addressed a cost performance issue and ruled in favor of the taxpayer, AT&T...
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June 1, 2010
Investment Banker Customary Fees
In our previous two articles we walked you through the reasons to hire an investment banker for the sale of your middle market business (i.e. transaction valued between $25 million and $250 million) as well as typical terms for how the relationship will work. Now your attention turns to fees...
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May 1, 2010
Is Taxing Services too Taxing? A primer on Complexity Created by State's Efforts to Expand Their Sales Tax Bases
As states continue to struggle with severe budget shortfalls, more and more states are turning to services as a potential source of revenue...
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April 1, 2010
Investment Banking Customary Terms
In the first of our three part series we walked you through the process of deciding whether to hire an investment banker for your middle market business...
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March 20, 2010
Putting Family First: Intergenerational Wealth Transfer and Investment Planning
Researchers have estimated that over the next 50 years, a wealth transfer of over $41 trillion will pass from one generation to the next...
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March 19, 2010
How Much Charity Must a Hospital Confer to be Exempt From Illinois Property Taxes?
Yesterday, the Illinois Supreme Court affirmed the appellate court's judgment and upheld the Department's administrative decision to deny Provena Hospitals' claim to a charitable exemption from real property taxes for the 2002 tax year...
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March 1, 2010
Fiduciary Duties of Shareholders of Closely Held Corporations
Counsel to businesses take note: shareholders of closely held corporations have fiduciary obligations to each other greater than those in the world of publicly traded organizations...
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February 25, 2010
IL Supreme Court: Internet shipping charges are subject to sales tax
When Nancy Kean purchased a trampoline through Wal-Mart’s internet store, little did she realize that she would ignite a controversy that would find its way to the Illinois Supreme Court...
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February 17, 2010
Oregon Tax Court Finds No Duty to File Uniformly in all States
In a case of first impression, the Oregon Tax Court has held taxpayers do not have a duty to uniformly and consistently report business income to states that have adopted the Uniform Division of Income Tax Purposes Act ("UDITPA")...
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February 1, 2010
GC Advantage™ Provides A Cost-effective Integrated Legal Solution For Middle-Market Businesses
Middle-market businesses, defined loosely as privately–held companies with $5 Million to $500 Million in sales, should carefully consider whether they are using the right legal counsel...
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January 28, 2010
Internal Revenue Service Plans to Require Reporting of FIN 48 Tax Positions Beginning With Returns Filed in 2011
The Internal Revenue Service has announced that it will begin requiring business taxpayers to report their uncertain tax positions under accounting statement FIN 48 beginning in 2011...
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January 18, 2010
Charitable Planning: Troubled Gifts in Troubled Times
Although charitable pledges have become a significant means to make a gift to charity in today's world, charitable pledges are not insulated from problems and often result in troubled gifts...
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January 1, 2010
Making the Most of Charitable Real Estate Gifts
Charitable gifts of real estate can take many forms, from the simple outright gift, to the gift of a remainder interest in a personal residence, to a gift using a charitable remainder trust or donor advised fund...
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January 1, 2010
International Fraud Remedies
Perpetrators of fraud frequently flee or transfer assets offshore, so it is vital to assess opportunities for recoveries from abroad...
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December 31, 2009
In Support of the Investment Banker
So why do business owners want to hate investment bankers? Too often, it is based on...
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December 30, 2009
Liquidation Gain is Allocable "Nonbusiness Income" Says the Illinois Circuit Court
After suffering a series of losses, the Department finally prevailed in a "business income" liquidation case...
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December 22, 2009
Statute of Limitations For Illinois Sales/Use Tax Refund Claims
This past Friday, the Illinois Appellate Court reversed the Illinois Circuit Court's decision and held that sales tax refund claims filed by a taxpayer after the statute of limitations had run did not relate back to and amend the taxpayer's timely-filed refund claims...
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December 18, 2009
Illinois' Individual Income Tax for Taxes Paid to Other States
Illinois affords its residents (individuals and certain estates and trusts) a credit for income taxes paid to other states on income subject to tax both by Illinois and another state...
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November 20, 2009
Illinois Supreme Court Rules That Shipping Charges For Certain Internet Purchases of Tangible Personal Property Are Subject to Sales Tax in Illinois
The Illinois Supreme Court ruled that shipping charges are part of the selling price of goods purchased at Wal-Mart's internet store...
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October 1, 2009
Employment Law Update, November 2009
Paid Sick Leave and Pandemic Concerns, New Employment Posters, Employee Handbook Updates...
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October 1, 2009
Estate and Gift Planning: Ten Reasons to Plan Now
With the economy still unsteady, the attorneys in our firm are often asked by clients whether they should wait to do income, estate, and gift planning. With respect to planning, we think "the best of times is now" and "there's no time like the present."
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October 1, 2009
The FTC's Red Flags Rule: Is Your Company Required to Have an Identity Theft Prevention Program by November 1, 2009?
On November 1, 2009, the Red Flags Rule will go into effect. “Red Flags” refer to signs of potential identity theft which the Federal Trade Commission (FTC) will require many businesses to detect and report with regard to their customers’ and vendors’ accounts...
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August 27, 2009
Massachusetts Supreme Court Rules That a New Hampshire Vendor is Not Required to Collect Massachusetts Use Tax on Sales Made in New Hampshire
In a closely watched case, the Massachusetts Supreme Judicial Court ruled that a New Hampshire tire vendor was not required to collect Massachusetts use tax on sales made to Massachusetts residents at New Hampshire stores...
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August 3, 2009
Educating Younger Generations Through the Estate Plan
It is never too early to start the financial education of the next generation, and experience is the best teacher...
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June 1, 2009
Strategies for Private Foundations Planning
It has been estimated that over the next 50 years a large transfer of wealth to charity will occur. The forms donors will use to make these charitable contributions will have a wide range, from outright gifts to testamentary trusts to more sophisticated giving techniques. One sophisticated giving technique that continues to increase in popularity is the organization of private foundations...
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May 12, 2009
Management Equity Incentives in LLCs
Limited liability companies (LLC) are the preferred choice of entity for business lawyers since LLCs combine the limited liability benefits of a corporation with the significant tax advantages and flexibility available to partnerships...
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May 1, 2009
I Personally Guaranteed a Loan on a Real Estate Deal That's Gone Sour: Now What Do I Do?
In today's economy, more and more real estate investors are finding themselves in the situation where they have personally guaranteed a loan on a real estate deal that is not performing...
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March 19, 2009
Department's Explanation and Direction Regarding Audits Dealing with Section 404 (the Equivalent to IRC Section 482)
In a memorandum dated September 4, 2008, we discussed a recent amendment made to Section 404 of the Illinois Income Tax Act...
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February 26, 2009
Electricity Now Tangible Personal Property for Illinois Tax Purposes
The Illinois Supreme Court on February 20, 2009 issued its decision in Exelon Corporation reversing the Appellate Court and concluding that electricity is tangible personal property for purposes of the Corporate Income and Replacement Tax...
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February 1, 2009
The Ins And Outs And Do's And Don'ts Of Taking Outside Capital
For a client with an entrepreneurial spirit, motivation, and a good business plan, outside capital can provide the basis for starting a business and growing it much more quickly and effectively than would be possible with other forms of financing...
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January 1, 2009
Play Ball: Baseball Strategies that Empower Executives to Win the Human Resources Game
Key concepts used by cutting edge baseball franchises for making enlightened player personnel decisions provide useful guidance to corporation’s in developing a decision framework to maximize human resources investments...
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January 1, 2009
Real Estate and Divorce: Breaking Up Is Hard To Do
The majority of divorces involve a division of property, and many entangle real estate. With more second marriages, and more marriages later in life, incorporating divorce planning into other practice areas, such as real estate, becomes even more important when one considers the ancillary effects of divorce...
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December 10, 2008
We Meant What We Said: Illinois Appellate Court Affirms Application of Business Liquidation Exception to 338(h)(10) Gain
In an unpublished order, the Ilinois Appellate Court (First District) ruled that the "business liquidation exception" to the former definition of business income under Illinois law applied to a taxpayer's sale of stock of a unitary subsidary, which was treated as an asset sale pursuant to an IRC Section 338(h)(10) election...
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October 1, 2008
Lessons That Planners Can Learn From Celebrity Estate Battles
The lessons learned from the difficulties faced by celebrity estates are a reminder for estate planners to stop and consider the impact that thoughtful planning can have on the lives of those whom estate practitioners serve...
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October 1, 2008
Challenges to State Tax Amnesty Laws
A constitutional challenge to the Illinois’ Tax Delinquency Amnesty Act, which imposed double penalties and interest retroactively, was recently struck down by the Illinois Appellate Court...
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September 23, 2008
Maryland Corporate Income Taxes & Pro Forma Returns
Maryland's corporate income tax, since it was originally enacted in 1937, is based on a separate-company tax filing...
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September 22, 2008
Follow the Money
A few years ago, Rick Rein got a call from a Chicago-area bank that had lost $1 million to a con artist who cashed a fake check that looked so authentic it easily passed through the bank's computer system...
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September 4, 2008
New Limitations on Illinois Department of Revenue's IRC Section 482-Type Powers - and - Recent Illinois Court Decisions
On August 29, 2008, Illinois Governor Blagojevich signed House Bill 5069 into law...
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August 1, 2008
Human Issues In Estate Planning For The Family Business Owner
At this time, estate tax repeal seems like a great topic for a slow news day, as the uncertainty creates angst, which makes good news. If, however, we pause a moment to consider the other headlines that have been making news in the recent past, they demonstrate that wealth succession planning in general is driven by many issues not related to taxes...
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July 23, 2008
Abandoned Property Voluntary Disclosure Program
The Illinois Treasurer, Alex Giannoulias, has announced that his office will join seventeen other states and offer a Voluntary Disclousre Program for delincuent holders of unclaimed property...
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May 28, 2008
Illinois Appellate Court Upholds The Tax Amnesty Act and Its Retroactive Imposition of Double Penalties and Interest
On May 22, 2008, the Illinois Appellate Court (First District) issued an unpublished order upholding the constitutionality of the Illinois Tax Delinquency Amnesty Act...
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May 1, 2008
Promoting Family Values: Intergenerational Charitable Planning
Over the next 50 years, researchers have estimated that over $41 trillion will pass to charity...
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April 25, 2008
Illinois' New Flow-Through Entity Withholding Requirements
Illinois law now requires every partnership (except for publicly-traded partnerships and investment partnerships), S corporations, and trusts to withhold from each nonresident partner, shareholder, or benificiary (with certain exceptions explained below) an amount...
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April 16, 2008
The United States Supreme Court's Decision in Meadwestvaco v. Illinois Department of Revenue
In an eagerly anticipated decision, the United States Supreme Court unanimously vacated and remanded the decision of the Illinois Appellate Court in Meadwestvaco Corp. v. Illinois Department of Revenue...
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March 1, 2008
A Critique of Current State Tax Shelter Laws
Corporate business transactions may result in a reduction of federal, international and/or state income tax...
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February 6, 2008
Illinois' Franchise Tax Amnesty Program
Illinois imposes a franchise tax on corporations "doing business" in Illinois...
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February 1, 2008
Navigating Recoveries of World-Wide Frauds
The wrongdoer has absconded with millions of dollars. Bad news – your defendant is out of the country, you don’t know where or whether there are assets. In today’s global business environment, this situation is becoming increasingly common...
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January 23, 2008
Illinois Sales Tax Provisions of Mass Transit Act
On January 11, 2008, Governor Blagojevich filed an amendatory veto with respect to a HB656 ("Bill") dealing with among things funding for mass transit in the Chicagoland area...
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January 10, 2008
Illinois' FY2008 Budget Implementation Act
Please be advised: On January 4, 2008, Governor Blagojevich filed an amendatory veto with respect to the FY2008 Budget Implementation Act SB783 ("Bill")...
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January 1, 2008
Knowledge Is Power: Understanding Your Donor's Personality and Motivations
A famous football coach once told a story about being on vacation with his wife in an area where he expected no one to know him...
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October 30, 2007
Illinois Employee Classification Act
Construction contractors and subcontractors be advised: Illinois' new "Employee Classification Act" goes into effect on January 1, 2008, and it carries stiff civil and criminal penalties for misclassifying employees as independent contractors...
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September 5, 2007
Textron Case
On August 28, 2007, the United States District Court for the District of Rhode Island denied the IRS's petition to enforce a summons for Textron to produce its "tax accrual workpapers" for the 2001 tax year...
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August 20, 2007
Illinois Tax Legislation - 2007
In June 2007, we issued a Memo to our Clients and Friends that highlighted the key provisions of Illinois HB 1558 (passed both houses on May 22, 2007), and SB 1544 (passed both houses on May 31, 2007)...
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June 15, 2007
Illinois Tax Legislation - 2007 (Jun 15, 2007)
The Illinois General Assembly rejected Illinois Governor Blagojevich's (D) proposal for a gross receipts tax...
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April 4, 2007
Custom Designing LLCs for Real Estate Provides Maximum Protection and Flexibility
Real estate entrepreneurs have increasingly turned towards the use of limited liability companies, or LLCs, to purchase and hold real estate...
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April 1, 2007
State Income Taxation of Israeli Citizens
Two recent losses by Israelis provide a reminder that American state taxes demand attention...
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March 1, 2007
Practical Guidance for Trustee Risk Management
Serving as a trustee used to be an honor bestowed by a longtime client or friend. It is an increasingly risky business to serve as trustee, however, as fiduciary litigation is on the rise...
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January 1, 2007
Doing Business in the United States (Part II)
Before opening a United States office or hiring any employees or representatives in the United States, Israeli businesses should negotiate with local jurisdictions for available tax benefits...
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December 1, 2006
Doing Business in the U.S.: American State and Local Taxes
Israeli businesses are accustomed to thinking of taxes as being imposed by a single level of government, as is the case in Israel...
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August 1, 2006
Doing Business in the United States (Part I)
State Tax Considerations From the Time When a Business is Preparing to Enter the United States and Continuing Through its Operation Throughout the Country...
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July 1, 2006
Private Foundations: Trust or Corporation?
It has been estimated that over the next 50 years $41 trillion will pass to charity...
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July 1, 2006
Constitutional and Other Jurisdictional Constraints on State and Local Taxation Outline
Federal Constitutional Limitations, Federal Statutory Limitation: P.L. 86-272...
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July 1, 2006
Operation as a Partnership or Limited Liability Company: State Income Tax Consequences to the Entity, Its Partners and Its Members Outline
Classification as a "Partnership," Taxation of Partnerships, Taxation of Corporate Partners...
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June 7, 2006
Gift Acceptance Agreements Avoid Headaches for Charitable Donors, Their Decendants and the Charities They Wish to Support
Many donors do not want to give unconditional gifs to charities...
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June 1, 2006
American State and Local Taxes Demand Attention
Israeli businesses exporting goods into the United States must plan for a variety of taxes...
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May 1, 2006
Fundamentals of the Escheat of Abandoned Property Outline
States have long claimed the power of escheat over abandoned property, characterizing themselves as taking custody of the property from the holder of the property for the benefit of the property’s rightful owner...
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May 1, 2006
Purchases and Sales of United States Businesses (Part II)
Purchases and sales of businesses operating in the United States offer state and local tax planning opportunities...
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April 1, 2006
Purchases and Sales of United States Businesses (Part I)
Purchases and sales of businesses operating in the United States offer state and local tax planning opportunities — and trigger exposure to new and historical tax liabilities...
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March 1, 2006
Unclaimed Property Liabilities
As American businesses know, all states have “unclaimed” property laws, and almost every business has liabilities for unclaimed property...
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February 15, 2006
Your Tax in 2006: Planning for America's "Hidden" Taxes
During the first 11 months of 2005, Israel exported $14.2 billion of goods to the United States...
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February 1, 2006
State and Local Real Property Transfer Taxes
Purchasers and sellers of American land and buildings must consider the effects of state and local real property transfer taxes...
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January 1, 2006
Tax Trends: A 12-Month Look Back (First Quarter 2006)
HMB's "Tax Trends" replaces the former "Illinois Tax Update"...
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January 1, 2006
Income Taxation by American States and Cities
Almost every state and some large cities impose taxes on income earned within their borders...
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December 1, 2005
Personal Liability of ‘Responsible Persons’ for Their Business’s Unpaid Taxes
Of the many varieties of taxes imposed by American state and local tax jurisdictions, several are characterized as “trust fund” taxes...
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November 1, 2005
American Sales and Use Taxes
In the United States, 45 states and thousands of local jurisdictions impose sales taxes on the retail sale of goods and services...
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November 1, 2005
Introduction to American State and Local Taxes
Every Israeli business selling goods or services in the United States knows that federal income tax requirements demand attention...
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July 1, 2005
Creative New Mechanisms for Banks to Recover Stolen Collateral
In the simplest terms, there are four basic steps to recovering assets for a bank...
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January 22, 2005
Memorandum to Our Clients and Friends Concerning Illinois' New Penalty Provisions
On January 15, 2005, Illinois Governor Blagojevich approved a bill that amends the penalty provisions for taxes administered by the Department of Revenue...
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January 1, 2005
Tax Trends 2004: Illinois Tax Update
Circuit Court holds fund surcharge in budget implementation act unconstitutional...
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November 24, 2004
The Illinois Department of Revenue's New Policy is Contrary to Law: You Are Entitled to a Refund of Overpaid Federal Liabilities Paid Under Tax Amnesty
In mid-November 2004, the Illinois Department of Revenue issued an informational bulletin entitled "Refund Claims for RAR Liabilities Paid Under Amnesty"...
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October 19, 2004
Memorandum to Our Clients and Friends Concerning Illinois' Tax Shelter Legislation and State Tax Amnesty Programs
Illinois recently adopted "tax shelter" legislation, based in large part on recent California legislation, that requires the disclosure of certain "reportable" or "listed" transactions...
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July 28, 2004
Memorandum to Our Clients and Friends Concerning Illinois' Tax Law Changes
On July 24, 2004, the Illinois General Assembly passed a budget plan for Fiscal Year 2005...
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January 1, 2004
Construction Financing from the Borrower's Perspective
Construction loan financing presents interesting challenges to the borrower, lender, and each party's counsel...
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September 17, 2003
Memorandum to Our Clients and Friends Concerning Illinois' Tax Amnesty & New Penalty and Interest Provisions
On September 12, 2003, the Illinois Department of Revenue issued emergency regulations concerning Illinois' Tax Delinquency Amnesty Act...
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July 1, 2003
Memorandum to Our Clients and Friends Concerning Illinois Tax Law Changes
The Illinois General Assembly has sent Gov. Rod Blagojevich (D) a fiscal year 2004 budget package with items of significant interest to Illinois taxpayers in virtually every industry...
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June 16, 2003
Memorandum to Our Clients and Friends Concerning Illinois' Tax Amnesty Program
On May 31, 2003, the Illinois General Assembly enacted the Tax Delinquency Amnesty Act (Senate Bill 969)...
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June 2, 2003
New York Court Reels In Off-Shore Limited Partnerships that Failed to Make Appropriate Distributions to Former Partners
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February 25, 2003
Memorandum to Our Clients and Friends Concerning Dot.Com Sales/Use Tax Non-Filers - Whistleblower Cases
On the State of Illinois' behalf, a Chicago law firm has sued various dot.coms that have an affiliate located in Illinois, alleging that the dot.coms were required, but knowingly failed, to collect and remit sales/use taxes on their internet sales...
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January 1, 2003
Memorandum to Our Clients and Friends Concerning Property Tax Appeals in Illinois
In an opinion having profound implications for the conduct of property tax appeals in Illinois, the appellate court has recently held that the Property Tax Appeal Board, the state's independent, quasi-judicial property tax appeals tribunal, may not consider evidence supporting a challenge to the legality of an assessment if the property owner did not previously introduce the evidence before the county board of review...
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January 1, 2003
Tax Trends 2004: Illinois Tax Update
Brian Hamer appointed as the new Director of Revenue...
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December 1, 2002
Investment Credit Recapture May Be Triggered By Some Surprising Transactions
Taxpayers are often surprised to learn that an investment credit that they have worked so hard to earn must be “recaptured”...
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October 30, 2002
Aircraft Acquisitions, Exchanges, Leases and Refinancings: Multistate Sales and Use Tax Considerations Outline
Background, Which States Must Be Analyzed, Acquisition of New or Used Aircraft...
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October 11, 2002
Memorandum to Our Clients and Friends Concerning Illinois' Business Income Exception for Liquidations
On October 2, 2002, the Illinois Supreme Court denied the Department of Revenue's petition for leave to appeal the appellate court's decision that Illinois could not classify and tax as apportionable business income a non-domiciliary corporation's gain from selling substantially all of its business assets when the corporation distributed nearly all the sale proceeds to its owners...
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August 30, 2002
Memorandum to Our Clients and Friends Concerning Illinois' New Business Income Election
On August 23, 2002, Illinois' business income definition was amended to provide an annual, irrevocable election starting with tax years that begin on or after January 1, 2003, to treat all income other than compensation as business income...
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June 10, 2002
Memorandum to Our Clients and Friends Concerning Revocation of Illinois Private Letter Rulings
A private letter ruling from the Illinois Department of Revenue can give Illinois taxpayers assurance of the tax treatment of a specific transaction or activity...
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March 5, 2002
Memorandum to Our Clients and Friends Concerning Missouri Supreme Court Decision In Income Tax Refund Case
The Supreme Court of Missouri has ruled that due process prohibits the Director of Revenue from denying refund claims for corporate income taxes the Director collected under a statute that the supreme court had previously declared unconstitutional...
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August 1, 2001
SALTNET Journal: Newsletter of the State and Local Tax Network
Sales and use taxes and cell phone "giveaways"...
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August 1, 2001
Illinois Job Tax Credit Gives State the 'EDGE' in Relocations and Expansions
In a tight job market, companies wishing to remain competitive often offer bonuses and other incentives to entice high-quality workers to join their workforce...
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April 1, 2001
The Apportionability of Liquidation Gain in Light of Lenox, Inc.
In the 1994 film "classic" Dumb and Dumber, Lauren Holly handicaps co-star Jim Carrey's odds of making a love connection with her at something less than one-in-100 million and Jim Carrey responds, "So you're saying there's still a chance?"
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January 1, 2001
Family Limited Partnerships
Family limited partnership (“FLPs”) have long been used for the management of family business assets...
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January 1, 2001
Illinois Tax Update: Tax Trends 2000
Firm adds special consulting practice...
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November 20, 2000
E-Planning
In less than a decade, two factors have dramatically affected estate and wealth protection planning: the sustained economic boom, and the advent of the “new economy.” E-commerce, the Internet, technology, IPO’s, stock options; all have created significant wealth planning opportunities and challenges...
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July 1, 2000
Field of Schemes
The President/Owner of a small company (we’ll call him Mark) is on a business trip when he meets a reserved man from California and an exuberant western Canadian. As the three men talk, Mark learns that his two new friends are business partners who sell something they call subscription shares, which Mark learns represent parts of an investment account that will pay a high interest rate, with the opportunity to eventually roll over the investment into corporate stock...
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July 1, 2000
Litigation and Recovery of Assets in Argentina
The turbulent political, economic and judicial climate, long associated with Argentina, has subsided...
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May 1, 2000
Bankruptcy is Not a Haven to Elude Judgment Creditors After Willfully Transferring Assets
Judgment creditors are often faced with the threat of bankruptcy when pursuing collection efforts. Sophisticated financial planning techniques have provided new avenues for judgment debtors to attempt to protect their assets...
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February 1, 2000
State Taxation of Business Trusts: Limits, Concerns, and Opportunities
As any multistate business owner knows, most states have developed a taxing methodology designed to tax the state’s “fair share” of business income...
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November 1, 1999
Recovering Assets in the Wake of Fraud
Fraud and breach of contract or fiduciary duty are thriving businesses. They exist internationally and domestically. They express themselves in securities fraud, Ponzi schemes, investment frauds and even divorce. Conspiracies abound...
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February 1, 1999
International Fraud: Freeze, Seize, and Retrieve
As technology evolves at exponential rates, it becomes easier to transfer funds faster using means undetectable in attempts to fraudulently conceal assets...
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January 1, 1999
Corporate Aspects of Dissolution
This chapter focuses on the procedural requirements found in Article 12 of the BCA with respect to dissolving, winding up, and liquidating an Illinois closely held corporation.
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July 1, 1998
The Competitive Edge: Creating Attractive Incentive Compensation Plans for Privately Held Entities
As companies vie for executives with track records of proven success, executive compensation has taken on increased importance for businesses in today's highly competitive job market...
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July 1, 1994
Transitioning the Ownership of a Closely Held Business Through a Leveraged Employee Stock Ownership Plan
The tax and non-tax considerations involved in determining whether a leveraged ESOP is a viable alternative for accomplishing the transition of ownership of a closely held business are analyzed...
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January 1, 1991
Real Estate Operations in the Corporate Form: When Does It Make Sense?
Real estate owned by partnership or limited partnership, C corporations, S corporations...
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January 1, 1991
Legal and Procedural Aspects of Advising Closely Held Corporations: Shareholder Relations/Voting & Control Issues
Outline of shareholder relations and voting and control issues...
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April 29, 1983
Criminal Tax Fraud: Does Uncle Sam Want You?
Whether the voluntary compliance tax system truly remains vigorous and healthy is open to debate...
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