Welcome to DUGGAN BERTSCH, LLC — A law firm dedicated to thoughtful, innovative and uncompromising legal representation for the Private Client.

The needs of the private client are both pointed and diverse. While you require the advanced skills of a specialist, you also have diverse needs that must be understood and integrated by your lawyer. With its broad base of multi-degreed, multi-disciplinary attorneys, DUGGAN BERTSCH is uniquely positioned in the legal space to best serve the needs of Private Clients.

We look forward to showing you the DUGGAN BERTSCH difference.

 

News From DUGGAN BERTSCH

Year-end Change to Partnership Audit Rules

Partnership Audits - The partnership audit procedures have dramatically changed in favor of the Internal Revenue Service, and amendments to your Operating Agreement or Partnership Agreement are required now.

There is a new party involved in partnership audits on your behalf starting on New Year’s Day 2018.  The old audit regime using the “Tax Matters Partner” (“TMP”), with its retained notice and appeal rights for the partners, is now history for most partnerships, limited partnerships (“LPs”), limited liability partnerships (“LLPs”) and limited liability companies (“LLCs”).  The new party replacing your TMP is your “Partnership Representative” (“PR”), and one must be appointed by you to be effective as of January 1, 2018.  There is a significant difference between the two types of tax representatives, and you must be aware and take appropriate steps to protect yourself as a partner or member (both “partner” in this letter and for tax purposes), as well as understand your obligations and liabilities if you become a PR.

Most of the details regarding the new laws and regulations are of interest to lawyers and accountants, but you need to be aware of the new audit regime which was enacted by the Bipartisan Budget Act of 2015 (“BBA”) and set under a new regulatory structure from the Treasury Department published on June 13, 2017.  It is generally effective on January 1, 2018. 

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Illinois Enacts Sweeping Changes to LLC Act

The Illinois Limited Liability Company Act (805 ILCS 180/1-1) has undergone significant changes via House Bill 4361, which was signed into law by Governor Rauner on July 28, 2016.  These amendments took effect July 1, 2017.  The consequences of the amendments to the Act may require revisiting and amending existing documents to ensure compliance with new provisions under the Act, and consistency with the intent of the parties.  Some of these changes are detailed below.  Please feel free to contact us to discuss how these amendments may impact you.   

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STATE AND LOCAL TAX UPDATE – Illinois Increases Taxes

by Michael H. Israel, M.A.,J.D., LL.M

The Illinois Department of Revenue has issued an information bulletin regarding the new Illinois income tax rates.  These rates became effective July 1, 2017

Regarding individuals, trusts, and estates, the Illinois Income Tax is increasing from 3.75 percent (.0375) to 4.95 percent (.0495).

Regarding corporations (excluding S corporations), the Illinois Income Tax is increasing from 5.25 percent (.0525) to 7 percent (.07).

Guidance has also been issued as to how estimated payments are impacted by the mid-year tax increases as well as the impact on the apportionment method of calculating income. 

Please feel free to contact us to discuss how these issue may impact you.  

David Henderson to present at Illinois CPA Society

David Henderson, CPA, CFP, J.D., LL.M., will present on the topic of International Captive Insurance Companies on Thursday, June 22, 2017 at the Illinois CPA Society’s All Tax Committee Meeting.  David will provide information about international captive insurance companies that is vital for practitioners working with clients with international captive insurance companies.  The Illinois CPA Society is a professional organization representing more than 24,000 accounting and finance professionals working in public accounting, corporate finance, not-for-profits, consulting, government, and education.  Founded in 1903, the Illinois CPA Society is one of the largest state CPA societies in the U.S.

State and Local Tax Reminder about State Income Tax Residency

At DUGGAN BERTSCH, LLC, we are often asked by clients to explain the process by which a taxpayer can establish a “new” state residency for income tax purposes. 

Sometimes we are asked to explain the impact of moving to a new state altogether  or about the impact of remaining in your current state of residence while spending significant amounts of time in another or several other states.