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

State and Local Tax Quarterly Update

Will Physical Presence Remain The Determinative Factor Or Will Quill Be Overturned?

Since 1992, the states have operated based upon the reasoning of Quill Corporation v. North Dakota, 504 U.S. 298 (1992) which established that a state could not require a retailer to collect sales tax unless... Click HERE to continue reading!

Illinois Supreme Court Provides Guidance With Regards To Classification Of A Retailer Under The Retailers’ Occupation Tax Act (“ROTA”).

Citibank N.A. claimed a refund of approximately $1.6 million in sales tax resulting from bad credit card debt for accounts financed by the bank.  On November 30, 2017, the Illinois Supreme Court ruled unanimously that... Click HERE to continue reading!

Compressed Natural Gas not subject to the Motor Fuel Tax Law According to First District, (at least for certain tax periods).

The Illinois Appellate Court, First District, reversed a granting of summary judgment by the Illinois Independent Tax Tribunal that determined the Motor Fuel Tax Law did not impose a tax on compressed natural gas.  The decision hinged upon... Click HERE to continue reading!

Recent U.S. Supreme Court Case Impacts Trust Taxation

The U.S. Supreme Court recently issued its opinion on North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust, which addressed “….the limits of a State’s power to tax a trust.”  This is the first time in decades the Supreme Court has addressed this issue, and its decision could have significant implications for the private client.

Planning with trusts is a central component to any comprehensive wealth plan, and in addition to leveraging the estate, gift, and GST exemptions, consideration should be given to a trust’s income tax treatment.  And when a trust is structured as a “non-grantor” trust - meaning it is responsible for its own income tax burden - state law governs the state where a trust may be taxed.

CLICK HERE to read the complete article!

Article Written By:       

Jennifer A. Mendel, JD, and Michael H. Israel, MA, JD, LL.M.

 

DUGGAN BERTSCH, LLC would like to congratulate our 2019 Leading Lawyers & Emerging Lawyers

Leading Lawyers – Leading Lawyers have been recommended by their peers to be among the TOP LAWYERS in the areas of practice noted on this website.  Less than 5% of all lawyers licensed in each state have received the distinction of Leading Lawyer.

Gregory J. Bertsch

  • Closely & Privately Held Business law
  • Tax Law: Business
  • Tax Law: Individual
  • Trust, Will & Estate Planning Law

James M Duggan

  • Taw Law: Individual
  • Trust, Will & Estate Planning Law

Timothy L. Epstein

  • Arts, Entertainment & Sports Law
  • Commercial Litigation

Allen J. Gable

  • Closely & Privately Held Business law
  • Real Estate Law: Finance
  • Tax Law: Business
  • Tax Law: Individual

David M. Henderson

  • Tax Law: Individual
  • Trust, Will & Estate Planning Law

Michael H. Israel

  • Tax Law: Individual
  • Trust, Will & Estate Planning Law

CLICK HERE TO READ MORE!

DUGGAN BERTSCH, LLC would like to Congratulate our 2017 Leading Lawyers

Leading LawyersLeading Lawyers have been recommended by their peers to be among the TOP LAWYERS in the areas of practice noted on this website. Less than 5% of all lawyers licensed in each state have received the distinction of Leading Lawyer. 

 

David M. Henderson

Tax Law: Individual
Trust, Will & Estate Planning Law

Michael H. Israel

Tax Law: Individual
Trust, Will & Estate Planning Law

Timothy L. Epstein

Arts, Entertainment & Sports Law
Commercial Litigation

Gregory J. Bertsch

Closely & Privately Held Business Law
Tax Law: Business
Tax Law: Individual
Trust, Will & Estate Planning Law

James M. Duggan

Tax Law: Individual
Trust, Will & Estate Planning Law

Allen J. Gable

Closely & Privately Held Business Law
Real Estate Law: Finance
Tax Law: Business
Tax Law: Individual 

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.  

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. 

STATE AND LOCAL TAXATION REMINDER:

Our firm represents both individuals as well as numerous and varied business entities.  While determining state tax obligations is always a complex process, when a taxpayer has income from sources in multiple states, the complexity greatly increases.  Past considerations relied upon “physical presence” as the main factor in determining tax reporting obligations - those days have quickly changed.  Some states now assert obligations based upon “economic presence”.

Click Here To Continue Reading

Mr. Israel, a partner, chairs both the Firm’s State and Local Taxation Controversy Group and its Commercial Litigation Group.  Prior to joining the firm, Michael was a Special Assistant Attorney General in the Office of the Illinois Attorney General for three years, where he represented the Illinois Department of Revenue in the circuit courts of Illinois and federal court.  Michael dealt with complex state and local, income tax, and sales tax, litigation matters including those related to nexus, apportionment, responsible officer liability, residency, and the defense of the constitutionality of state property tax exemption statutes; as well as matters related to federal income taxation.

Prior to his employment with the Office of the Illinois Attorney General, Michael practiced in federal and state courts in the areas of commercial litigation and tax litigation.  In addition to handling complex tax matters, Michael has represented clients in actions involving: claims under the Illinois false claims act, breach of contract,  non-compete agreements, limited liability disputes among members, an action seeking removal of a trustee, declaratory judgment actions, “white collar” fraud investigations conducted by federal agencies such as the Federal Bureau of Investigation and the Criminal Division of the Internal Revenue Service, and asserted and defended claims for temporary restraining orders and preliminary injunctions.  Michael has experience in conducting arbitrations as well as trial experience. 

Michael is an adjunct professor at the John Marshall Law School and has taught Advanced Federal Income Taxation in the school’s Master of Law in Taxation program since 2013. 

Education:
Northwestern University School of Law, Master of Laws in Taxation 
Northwestern University School of Law, Juris Doctor
Northwestern University, Master of Arts
Northwestern University, Bachelor of Arts

Law License:
Illinois (1999)

Court Admission:
United States District Court, Northern District of Illinois, member of the General Bar and the Trial Bar

Bar Associations:
Chicago Bar Association
Illinois State Bar Association

Subscribe to RSS - Michael H. Israel, M.A., J.D, LL.M