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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:

the 
Fall Seminar

will be held from
Tuesday November 6 to Wednesday, November 7

at
The Stephens Convention Center
in Rosemont, IL

View / Register
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


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


The Texas Tax Amnesty Program will run from May 1, 2018 through June 29, 2018.
The Texas Tax Amnesty Program provides delinquent taxpayers with relief from penalties and interest on tax due. Tax amnesty applies to periods prior to January 1, 2018, and only includes liabilities that have not been previously reported to the Comptroller. If a taxpayer has been notified that a period or periods are scheduled for an audit review or if they are already under audit review, then those periods are not eligible for amnesty. Additionally, the amnesty doesn’t apply to the local motor vehicle tax, IFTA taxes, PUC gross receipts assessments and unclaimed property payments.  Limited details are available on the Texas Comptroller's website. More to come!

Jim Tauber, Managing Director-Andersen Tax LLC

Alabama enacts tax amnesty program commencing on July 1
On March 6, 2018, Alabama Governor Kay Ivey signed House Bill 137, establishing a tax amnesty for a three month period beginning July 1, 2018 and ending on Sept. 30, 2018.  Eligible taxpayers will receive a complete waiver of interest and penalties. Additionally, a limited look-back of 36 months applies separately to each applicable tax. The amnesty is available for most taxes administered by the Alabama Department of Revenue, except for motor fuel, motor vehicle and property taxes. Taxes eligible for the amnesty include taxes due or payable for taxable periods that began prior to Jan. 1, 2017.  Participating taxpayers must agree to waive the right to protest or initiate an administrative or judicial proceeding. Taxpayers that have been contacted by the department in the past two years concerning the tax type at issue are ineligible to apply for amnesty for that tax. Other restrictions apply (see House Bill 137)! 

Jim Tauber, Managing Director-Andersen Tax LLC






In Memoriam

The following Chicago Tax Club members and distinguished speakers have passed away recently.
We remember them with gratitude for their friendship and their service to our club.

CTC Member and Director - Kevin Mullen

CTC Member – Paul Bauer

CTC Member & Past CTC President Norm Dupont

Speaker – Paul Frankel, Morrison & Foerster

Speaker – Tom Donohoe, McDermott Will & Emery




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 Hamburger University
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 The Estate by Gene Georgetti
Rosemont, IL