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Welcome to The Chicago Tax Club

The Chicago Tax Club, organized in 1933, is a nonprofit association consisting of individual tax professionals employed by corporations and other businesses. The principal function of our organization is providing educational and networking events, in order to assist our members in identifying and resolving tax compliance, planning and audit issues relating to their employers.


The Club is dedicated to the professional development of our members, promoting an interchange of ideas and mutual assistance among members and providing the opportunity to participate in accredited continuing professional education programs (CPE and CLE). The Club also fosters the highest standards of integrity, competence and professional ethics and it recognizes that an atmosphere of mutual trust and confidence must prevail among the membership, other tax professionals, employers and government tax administrators.






Our 
Next Meeting
will be held
on
Monday,
February 26, 2018


at
The Gleacher Center

in
Chicago, IL

Register / View
Members: login first for member pricing


TAX NEWS



STATE AND LOCAL TAX

Illinois Personal Service or Reasonable Compensation Deduction

The Illinois replacement tax allows an LLC or partnership to deduct from its base income ‘‘personal service income’’ or a reasonable allowance for compensation paid or accrued for services rendered by the partners. In an article titled To Deduct or Not Deduct: The Illinois Personal Service Income Conundrum, which was published in Bloomberg Tax Reports, David A. Hughes and Samantha K. Breslow of Horwood Marcus & Berk Chartered discuss recently proposed regulations seeking to clarify the deduction and what taxpayers should do in preparing for future audits. Click here to read it.

 




INDIRECT & OPERATIONAL TAX

Ohio and Rhode Island State Amnesty Programs to End February 15, 2018

The Ohio Department of Taxation and the Rhode Island Division of Taxation are running tax amnesty programs for a variety of state taxes, set to end February 15, 2018. Ohio Tax Amnesty opened January 1, 2018 and is available to eligible taxpayers that have unreported or underreported taxes that were due and payable prior to May 1, 2017. For taxpayers who fully pay qualifying tax delinquencies, the Ohio DOT will waive penalties and half of the interest normally charged. The Rhode Island Tax Amnesty Program opened December 1, 2017 and applies to any taxable period ending on or before December 31, 2016. For qualified taxpayers, the Rhode Island Tax Administrator generally will not seek civil or criminal prosecution, will waive penalties, and will reduce the applicable interest rate by 25%. For more information about these tax amnesty programs visit: http://www.salestaxinstitute.com/resources/sales-tax-amnesty


Supreme Court Agrees to opine on the South Dakota v. Wayfair Online Sales Tax Case

On January 12, 2017, the U.S. Supreme Court agreed to hear the case of South Dakota v. Wayfair Inc., paving the way for a potentially decisive verdict in the ongoing debate over how to apply sales taxes to remote/online seller activity.  Under current Supreme Court precedent (Quill v. North Dakota), remote/online retailers are not required to collect sales taxes unless they have a physical presence in a state. A number of states have proposed or passed anti-Quill legislation to assert economic nexus standards.  Traditional brick-and-mortar retailers that are required to collect sales taxes feel that they are at a competitive disadvantage and the states are potentially losing tens of billions of dollars in sales tax revenue annually. Will the Supreme Court issue new guidance overturning Quill or will they reaffirm necessary limitations on the states authority to tax remote sales?  A ruling could be announced as early as this summer.  Stay tuned!

 

Jim Tauber, Managing Director-Andersen Tax LLC 


Illinois Unclaimed Property Update

The Illinois General Assembly passed landmark legislation on 7/6/17 that enacts the new Illinois Revised Uniform Unclaimed Property Act (“IL RUUPA”).  The IL RUUPA makes sweeping changes to Illinois unclaimed property reporting and administration including: (a) elimination of business-to-business exemption, (b) imposes extrapolation penalty for failure to retain records, (c) creates 5-year transitional period, (d) reduces dormancy periods from 5 years to 3 years for many property types, and (e) compensates 3rd party auditors up to 15% contingent fee on assessments, amongst many other changes.  The IL RUUPA is effective 1/1/2018.  More information available in State Tax Notes https://www.taxnotes.com/state-tax-notes/audits/radical-changes-coming-illinois-unclaimed-property-reporting/2017/11/27/1x8g6(user name and ID login required to access article)

 

Submitted by: Joseph R. Carr, Partner & National UP Practice Leader, BDO USA LLP

 

 

2018 Tax Reform – State & Local Tax Deduction Limitation

As part of the 2018 tax reform package, Congress is limiting the state and local tax deductions (income tax, sales tax, property tax) that taxpayers can claim on their federal returns.  Congress is also generally prohibiting taxpayers from pre-paying their 2018 income tax in 2017.  This restriction, however, does not apply to pre-payment of 2018 property taxes in 2017 in order to take full advantage of the deduction.  Taxpayers should check with the property tax administrator in their county to see if pre-payment of 2018 taxes is an option.  Note that pre-payment of 2018 property taxes might not be beneficial if a taxpayer is in an AMT position.  

 

Submitted by: Shawn Kane, Managing Partner-Crowe Horwath LLP











"For those of you that knew Kevin, either personally or professionally, I know I don’t have to tell you that he truly was one of the good guys. Kevin always had a smile on his face, never had a bad word to say about anybody and was always willing to help out.  I am sure I speak for my fellow committee members that we are very thankful for all his contributions to our committee over the many years that he was a member. He will be truly missed!"

"My heart goes out to his family – this is a tremendous loss to many."

"I’m stunned and feeling sorrow for Kevin’s family, as well as the CTC. Kevin has been a real contributor."



To our dear Chicago Tax Club members and friends.

 

It is with great sadness that we announce that our dear friend, Kevin Mullen died on Monday night, January 9, 2017.  Kevin has been a part of the Chicago Tax Club family for more than 30 years and was so much a part of what we are as an organization, including several committees and most recently as a member of the Board of Directors of the Chicago Tax Club.  We have emailed a copy of the obituary with information on the wake and funeral arrangements to you.  Words cannot properly express our sadness at the loss of this dear man who touched so many people in such a positive and caring way.  The family has asked that anyone who attends the wake please wear Cubs or Black Hawks gear in support of Kevin’s great love of sports.  Included here are a few snipettes from his friends as we try to comprehend this loss.  We will include more information about Kevin and the family as it becomes available.  Please pray for Kevin and his family during this most sorrowful time in our lives.

 

Scott Milnes

2017 President


Chicago Tribune article







"Kevin was a wonderful person and only vacated his chairmanship of the sales/use tax committee due to impending knee surgery.  The last couple of years he walked with a minor limp as a result.

It his hard to believe I saw him at the CTC Director/Officer meeting just this  last Friday.  As always, he had a smile on his face and a kind word for everyone.

God Bless Him and his family."

"I am saddened to hear the loss of my friend, who also played such an important part in keeping the CTC moving forward. 
My condolences to his family, co-workers, and his many friends."   

"My thoughts and prayers go out to Kevin’s family at this sad time of loss."



Membership

New Members - If you are a corporate tax professional and would like to join our organization, please apply online.

Members - Membership to the Club expires at December 31. We hope that you will continue to support our organization by renewing your membership.

 
 






2018 Events

Monday,
February 26
February Meeting    Gleacher Center
Chicago, IL
Monday,
April 2
April Meeting The Hyatt Lodge
Oak Brook, IL
Monday,
May 7
May Meeting
(with COST)
Meridian Banquets
Rolling Meadows, IL
Thursday,
June 28
Summer Seminar Saddle & Cycle
Chicago, IL
Tuesday - Wednesday 
November 6 - 7
Fall Seminar Stephens Convention Center
Rosemont, IL
Friday
December 7
Winter Meeting TBD