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!

DUGGAN BERTSCH, LLC would like to congratulate our 2021 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

  • Closely & Privately Held Business Law
  • Tax Law: Business
  • Tax 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

Rafael A. Ruiz-Ayala

  • Closely & Privately Held Business law
  • Health Law
  • Mergers & Acquisitions Law

Scott A. Sissel

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

Russell Q. Thirsk

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

Ronnie E. Webb, Jr.

  • Elder Law
  • Trust, Will & Estate Planning Law

Emerging Lawyers – Emerging Lawyers have been selected by the state’s Leading Lawyers. Less than 2% of all lawyers licensed in each state have received the distinction of Emerging Lawyer.

 

Clint A. Costa

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

Brian C. Konkel

  • Arts, Entertainment & Sports Law
  • Commercial Litigation

Michael A. Passananti

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

Greta R. Staat

  • Transportation Defense Law: Including Aviation/FELA/Maritime
  • Tax Law: Business
  • Tax Law: Individual

CLICK HERE to read more

The “Fair Tax for Illinois," Possibly to Become Known as "I’m Leaving for Florida," By Michael H. Israel, M.A., J.D., LL.M. (Taxation)

With the looming vote on the “Fair Tax for Illinois,” state residency planning has taken on new importance. The coverage to date regarding the proposed “Fair Tax For Illinois,” largely tainted by political bias, has been anything but clear.  

The proposal is simple enough, though – it intends to change the existing Illinois income tax structure from one rate to a series of graduated rates.   The impact, however, is neither certain nor clear.

First, the existing flat tax is mandated by the Illinois Constitution, which is why the rate system can only be changed by amending the Illinois Constitution.  Doing so is a complex and difficult process, making systemic tax changes difficult.

CLICK HERE to continue reading...

Illinois’ 2019 Tax Amnesty Program

The Illinois Department of Revenue recently announced that under the Illinois Tax Delinquency Amnesty Act (the "Act"), taxpayers are allowd to pay outstanding eligible tax liabilities and to have eligible penalties and interest forgiven on taxes that are paid pursuant to the Act. Below are the highlights of the program.

Amnesty Period

            Unpaid taxes that are collected by the Illinois Department of Revenue (“IDOR”) from periods after June 30, 2011, and prior to July 1, 2018 (“the Amnesty Period”) are the tax liabilities eligible for the Amnesty Program. If the required filing and payment is completed between October 1, 2019 and November 15, 2019 (“the Participation Period”), IDOR will waive all eligible penalties and interest. This program does not apply if only penalties and interest are owed...

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

  • Tax 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”.

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