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Illinois Corporate Income Tax- Financial Organizations07/17/2018

Financial organizations in Illinois are required to follow different apportionment rules than general service providers. Prior to December 31, 2017, such businesses were also required to file separate unitary business returns from taxpayers that filed their income tax returns under the standard apportionment rules. Beginning …

HMB Takeaways from Wayfair07/09/2018

Everyone is by now likely familiar with the recent Wayfair decision and its central holding. Prior to Wayfair, businesses had some degree of comfort that they would not be required to collect and remit sales or use taxes to states in which those businesses did …

Wayfair and its Impact on Illinois’ Economic Nexus Legislation06/26/2018

The Commerce Clause and interstate commerce were thrust into the spotlight last week, as the United States Supreme Court reversed the longstanding physical presence standard for sales tax nexus.

Key Phrases From the Wayfair Decision and My Initial Reactions06/22/2018

In a landmark decision, the Supreme Court overturned Quill giving States more authority to collect sales tax. Jordan Goodman shares his initial reactions while reading the decision.

Local Sourcing Rules for the Illinois Retailers’ Occupation Tax06/12/2018

As we have discussed previously, Illinois localities have adopted a variety of unique taxes, such as the Chicago Personal Property Lease Transaction Tax, the Amusement Tax, and dozens more. Illinois localities may also impose a local option tax which is imposed in addition to the …

Illinois Adopts A New Remote Seller Nexus Law06/11/2018

Wayfair, Quill, Sales tax nexus, remote seller. Illinois adopted a South Dakota remote seller nexus rule effective October 1, 2018.

Illinois Corporate Income Tax: Throw-Back and Throwout05/29/2018

In calculating the Illinois sales factor, Illinois employs both a “throw-back” and “throwout” rule. While many states employ some form of throw-back rule, Illinois’ adoption of both a throw-back and throwout rule is unique.

Illinois’ Unique Treatment of Leases and Traps for the Unwary Lessor05/22/2018

Illinois? treatment of leases is an anomaly when compared to almost all other jurisdictions. While most jurisdictions impose sales tax on the lease receipts collected from the lessee, the user of the equipment, Illinois differs by treating the lessor as the user of the equipment. …

Clarifying the Cloud: Taxation of Software in Illinois05/15/2018

Determining whether computer software is taxable is no easy task, especially in light of the changing technological landscape. The Illinois Department of Revenue (“Department”) has been asked by taxpayers for a number of years to provide clarification, but until recently has been largely silent on …

Illinois Corporate Income Tax Basics – Apportionment05/07/2018

In a previous post, we addressed the basics for calculating Illinois base income. In this post, we will focus on Illinois’ general apportionment rules, and in later posts, we will discuss Illinois’ combined reporting rules and the specific treatment of insurance companies and financial organizations …

Tax Amnesties Popping up…and should be taken seriously!05/03/2018

Alabama, Connecticut and Texas are offering tax amnesty programs that have some huge benefits.

Chicago Personal Property Lease Transaction Tax05/01/2018

Although businesses entering a new jurisdiction are often primed to handle local sales and use taxes, even sophisticated taxpayers can be unprepared for the myriad of unfamiliar local taxes waiting to greet them when beginning to transact business in Chicago.

Illinois Corporate Income Tax Basics- Base Income04/24/2018

Now that we have provided a primer on procedural issues at Illinois, Chicago, and Cook County, it’s time to jump into the fun stuff! Illinois has a relatively high corporate income tax rate compared to most states. While calculating Illinois base income is generally straightforward, …

Navigating a Cook County Department of Revenue Audit and the Procedure for a Formal Protest04/17/2018

A recent national trend in the practice field of state and local tax has been the uptick in local jurisdictions’ audit activity. The Cook County Department of Revenue has taken aggressive positions in the interpretation of its tax ordinances which has led to increased litigation …

Navigating a Chicago Audit and the Procedure for a Formal Protest04/09/2018

Although not on the mind of most taxpayers, an audit by the City of Chicago Department of Finance (“Department”) is a risk for any taxpayer who may be operating in the City or who enters Chicago for any business purpose. With a variety of unusual …

An Introduction to Illinois Audits and Appeals04/03/2018

There’s no way around it: Illinois is a complicated state in which to do business. This post is the first in a series that will address how to navigate even the most byzantine aspects of Illinois’s tax structure. More specifically, this post will address the …

What Illinois Auto Dealers, Financial Institutions and other Lessors Need to Know About Taxing Post Lease Charges03/12/2018

Three years ago, Illinoisans cheered the changes to the motor vehicle leasing law that were to lead to tax savings for lessees and level the playing field with other state’s leasing laws. Now, as the first wave of three-year leases comes to an end, lessors …

South Dakota v. Wayfair, Inc. and Illinois’ Marketplace Fairness Act03/02/2018

The U.S. Supreme Court granted South Dakota’s certiorari petition in South Dakota v. Wayfair, Inc. et al., No. 17-494 and scheduled oral arguments for April 17, 2018. Illinois now proposes to enter the fray with the Marketplace Fairness Act.

To Deduct or Not Deduct: The Illinois Personal Service Income Conundrum01/17/2018

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 …

Federal Courts Determine OTCs’ Service Fees not Subject to Hotel Occupancy Taxes12/05/2017

The federal courts just gift-wrapped a decision for taxpayers, right in time for the holidays. In late November, the U.S. Court of Appeals for both the Fifth and Seventh Circuits held that local hotel occupancy taxes do not apply to the service fees online travel …

Scary Stuff: Illinois Sales Tax Whistleblower Update – First E-tailers and now Custom Tailors10/31/2017

You may have already seen the Bloomberg article issued on June 1, 2017 which outlines what many of us have sadly come to know as the ?Diamond? qui tam claims: the ongoing exploitation of the Illinois False Claims Act and abuse of the state and …

In the Matter of Product of Conagra Foods Ingredient Co., New Mexico Administrative Hearing Office, Dkt. No. 17-39, September 15, 201710/02/2017

The New Mexico Office of Administrative Hearings granted Conagra Foods? Motion for Summary Judgment concluding the interest earned on notes was properly characterized as non-business income.

Illinois Appellate Court Issues Decision on Temporary Storage Exemption08/04/2017

On June 28, 2017, the Illinois Appellate Court in Shared Imaging, LLC v. Hamer, 2017 IL App (1st) 152817, P1 (Ill. App. Ct. 1st Dist. June 28, 2017) reversed the Circuit Court?s decision and held that Shared Imaging, LLC (the ?Taxpayer?) is entitled to a …

The Cubs Won the World Series and Illinois Finally Has a Budget!07/07/2017

Today marks the first time in over two years that Illinois will be operating under a budget. This is a result after the House voted to override Governor Rauner?s veto of Senate Bill 9. The House garnered the necessary votes to end the two year …

Lessons Learned from New York’s Largest Ever False Claims Act Tax Settlement05/03/2017

A little good faith can go a long way. Insight can be hard to gain from publicly announced settlements, mostly because litigation is typically settled due to the cost of defense and overall frustration with litigating. But the recently announced settlement of a False Claims …

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