"I’ve worked closely with Dave for over 15 years on a variety of state income tax matters involving roughly 15-20 states. Over the course of that time, I can attest that Dave’s subject matter knowledge, attention to detail, professionalism and creativity are unsurpassed! Best of all, Dave is a pleasure to work with." – Senior Tax Director
David is a partner in HMB’s State and Local Tax (SALT) Group and is a member of HMB’s Board of Directors. He helps clients limit their state and local tax exposure through sensible planning and, when necessary, vigorous litigation strategies.
David advises Fortune 500 companies, privately-held companies, middle-market businesses and individuals on strategies to minimize their state and local tax exposure, maintain compliance and reduce the risk of audit problems. This includes income tax, sales/use tax, franchise tax, gross receipts tax, and unclaimed property matters involving nexus, apportionment, business income, unitary business groups, credits, losses and exemptions.
Read MoreIn addition to helping clients all over the country structure their businesses to reduce state and local tax liabilities, David represents them in audits, administrative proceedings, litigation and appeals. He has argued cases for clients at the Illinois Supreme Court, the Illinois Appellate Court and the New York Supreme Court (Appellate Division). In addition to Illinois, David is licensed to practice in Wisconsin.
Multistate Expertise, National Impact
As an active thought leader and speaker in the SALT community, as well as an adjunct professor at Northwestern University Pritzker School of Law, David offers a unique perspective and knowledge drawn from years of hands-on, practical experience.
Experience
- MeadWestvaco Corp. v. Illinois Department of Revenue, 128 S.Ct. 1498 (2008) (income tax on sale of non-unitary division)
- Irwin Industrial Tool Co. v. Department of Revenue, 238 Ill2d 332, 938 NE2d 459, 345 Ill Dec 20 (2010)(use tax on airplane hangared outside the state)
- Milwaukee Safeguard v. Selcke, 179 Ill 2d 94, 688 NE2d 68 , 227 Ill Dec 731 (1997) (constitutional challenge to insurance premiums tax)
- Borden Chemicals and Plastics v. Zehnder,726 NE2d 73, 312 Ill App 3d 35 (2000) (income tax on non-resident limited partner)
- Home Interiors & Gifts v. Illinois Department of Revenue,251 Ill Dec 820, 741 NE2d 998 (2000) (income tax on interest from non-working capital)
- The Home Depot USA v. Hamer, Illinois Appellate Court unpublished order (2010) (sales tax bad debt deduction)
- Ogden Chrysler Plymouth v. Bower,251 Ill Dec 820, 741 NE2d 998 (2004) (sales tax on car manufacturer incentive payments)
- Exxon Corp. v. Bower,Illinois Appellate Court unpublished order (2004) (income tax on distributive share from non-resident partnerships)
- Stark Materials Company v. Illinois Department of Revenue,812 NE2d 362, 349 Ill App 3d 316 (2004) (sales tax on delivery charges)
- The Dow Chemical Company v. Illinois Department of Revenue,359 Ill App. 3d 1, 832 NE2d 284 , 295 Ill Dec 133 (2005) (unitary business group determination for income tax)
- Nationwide General Insurance Company, et al. v. Shapo, 263 Ill Dec 210 , 767 NE2d 936 (4th Dist. 2002)(insurance premiums tax refunds for unconstitutional tax)
- Nicor Corp. v. Illinois Department of Revenue, No. 1-07-1359 (Illinois Appellate Court, unpublished) (2008) (income tax on sale of subsidiary)
Education
Columbia University, J.D.
University of Notre Dame, B.A., magna cum laude
Admissions
Illinois
Wisconsin
Professional Memberships
- Adjunct Professor, LLM Tax Program at Northwestern University Pritzker School of Law
- Chicago Tax Club, Board of Directors and Chair, Indirect/Operational Tax Committee
- American Bar Association
- Chicago Bar Association, former SALT Committee Chair
- Illinois CPA Society, former SALT Committee Chair
- Taxpayers Federation of Illinois (Sales/Use Tax and Local Taxes Committees)
- Association of Consumer Vehicle Lessors (ACVL)
- Unclaimed Property Professionals Organization (UPPO)
- Chicagoland Chamber of Commerce
News
- David A. Hughes Elected to the Chicago Tax Club Board of DirectorsMarch 2, 2021
HMB congratulates David A. Hughes on being elected to the Chicago Tax Club Board of Directors. David is a partner in HMB’s State and Local Tax (SALT) Group and is a member of HMB's Board of Directors. He helps clients limit their state and local tax exposure through sensible planning and, when necessary, vigorous litigation strategies. David advises Fortune 500…
- David A. Hughes Discusses IL Gov. Pritzker's Pitch to Raise State Budget with Law360February 23, 2021
In this article by Law360, David A. Hughes discusses Illinois Gov. J.B. Pritzker's budget plan that would reverse several tax laws that the governor signed just two years ago, including a phaseout of the state's franchise tax. Read the full article by Law360 here (subscription required). Illinois' governor proposed temporarily capping net operating losses, reducing state deductions for global intangible…
- David A. Hughes Discusses Chicago's "Netflix Tax" with Bloomberg Law TaxJanuary 25, 2021
In this article by Bloomberg Law Tax, David A. Hughes discusses Chicago's "Netflix Tax". Read the full article here. Chicago will inject an economic presence standard and a safe harbor for smaller streaming and cloud services into its administration of the city’s “Netflix tax,” beginning July 1. Chicago’s Department of Finance issued a bulletin late Thursday outlining its enforcement of the amusement…
- HMB 2021 Board of DirectorsJanuary 1, 2021
HMB welcomes Sean D. Auton, Christin A. Handa, Jeffrey A. Hechtman, David A. Hughes and Kate Kanabay to its 2021 Board of Directors.
- David A. Hughes Discusses Illinois Nonresident Workers and State Income Tax with Law360June 29, 2020
In an article by Daniel Tay and published by Law360, David A. Hughes discusses how Illinois nonresident employees have received a 30-day safe harbor against state income tax to carry out a 2019 law intended to prevent double taxation. Illinois' 30-day threshold is longer than the periods seen in other states David told Law360. He also noted that the Illinois…
Events
- David A. Hughes Presents, "Illinois Spring Legislative Wrap-Up" for the Chicago Tax Club - 6/9/21May 25, 2021
6/9/21 11:30AM - 12:45PM CT In this presentation for the Chicago Tax Club, David A. Hughes, with Korwin Roskos and Jacob Seitz from Andersen and Illinois Chamber Tax Institute Executive Director Keith Staats, will discuss the tax-related legislation passed – or not passed - by the Illinois General Assembly during the spring legislative session. This presentation qualifies for CPE and…
- Chris T. Lutz and David A. Hughes Present and Moderate the Webinar, "What to do with Public Law 86-272?" at the ABA-IPT Conference - 3/17/21March 2, 2021
3/17/21 Chris T. Lutz and David A. Hughes will be presenting and moderating at the ABA-IPT conference for webinar titled, “What to do with Public Law 86-272?” Public Law 86-272 is now 60 years old. While P.L. 86-272 made sense in the pre-internet, manufacturing oriented economy of 1959, many commentators have called into question the law’s continuing relevance in a…
- David A. Hughes and Jordan M. Goodman Present at the Sales Tax Institute's 2021 Advanced Sales and Use Tax Workshop - 4/19/21 - 5/18/21February 18, 2021
4/19 - 5/18 Join David A. Hughes and Jordan M. Goodman for ten virtual sessions at the Sales Tax Institute’s 2021 Advanced Sales and Use Tax Workshop. They’ll be discussing many niches of sales tax from the impact of remote employees and local taxes to healthcare and construction. The ten sessions will start at 11:00AM and end at 1:15PM ET…
- David A. Hughes Presents a Webinar, "State Tax Impacts of a Mobile Workforce" for the Illinois CPA Society - 1/21/21January 21, 2021
1/21/21 This webinar addresses the SALT issues faced by businesses whose employees have chosen to work in a different (out-of-state) location. David A. Hughes will discuss topics including nexus, withholding, sourcing, unemployment insurance and reciprocal agreements.…
- David A. Hughes Presents a Webinar, "To File or Not to File: Residency and Related Issues" for the Illinois CPA Society - 1/20/21January 20, 2021
1/20/21 David A. Hughes will explore income tax issues faced by individual taxpayers with a primary focus on residency. Other issues will include credits for tax paid to other states, taxation of nonresident individuals, and determining domicile for businesses.…
blog
- Cover Your SaaS - Issue IVDecember 8, 2020
With the holidays upon us, it seems like a good time to take a pleasant stroll through the cloud computing and digital product SALT developments you and your clients should be aware of. We returned to the “classic” format for this edition, organizing the stories by jurisdiction, headlining them in summary fashion, and then providing context and snappy analysis. If you have follow-up questions, please let us know.
- Cover Your SAAS - Issue IIIAugust 18, 2020
Welcome to the third edition of Cover Your SaaS. Following a brief mid-summer hiatus from which the authors returned pale as ever, we dive once more into the cloud computing and digital product SALT developments you and your clients should be aware of. This is a bumper edition, so we have organized the updates by general topic rather than solely by jurisdiction.
- Cover Your SaaS - Issue IIJune 22, 2020
Welcome to the second edition of Cover Your SaaS, your new favorite(ish) semi-regular publication from HMB Legal Counsel’s State & Local Tax team. Far from accepting a sophomore slump, this edition boldly delves into SALT developments in the digital products sphere, the importance of separately stating charges, and the dangers of straying into taxable telecommunications.
- Cover Your SaaS: A Semi-Regular Publication on State and Local Tax Developments in the Cloud Computing and Digital Space - 4/10/20April 10, 2020
Welcome to the first edition of Cover Your SaaS, a new semi-regular publication from HMB Legal Counsel’s State & Local Tax team. Using the latest in news-scanning technology, i.e., the daily emails that land in our inbox, our goal is to keep you updated on key SALT developments in the digital and cloud computing space.
- To Deduct or Not Deduct: The Illinois Personal Service Income ConundrumJanuary 17, 2018
On December 11, 2017, the Illinois Department of Revenue (?Department?) issued proposed regulations that seek to clarify the scope of the deduction by setting forth specific rules and hypothetical examples. Nevertheless, even with the proposed regulations, the deduction is beset by ambiguities that will continue to create confusion for taxpayers currently under audit or who intend to claim the deduction in future years.
