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By McDermott Will & Emery on Mar 30, 2020
Posted In Federal Tax, Income Tax, Nationwide Importance, New Jersey, Tax Base
The federal stimulus bill (the CARES Act), HR 748, which was signed into law by President Trump on March 27, includes certain corporate income tax provisions designed to provide relief to corporate taxpayers. One such provision–the net operating loss (NOL) provision that allows taxpayers to carryback NOLs to prior years–could have unintended consequences at the...
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Tax Commissioners: Please Drop Unnecessary or Dangerous Tax Administration Requirements
By Stephen P. Kranz and McDermott Will & Emery on Mar 27, 2020
Posted In Federal Tax, Income Tax, Interest and Penalties, Local Tax, Nationwide Importance, Sales Tax
This week we wrote a letter to state tax administrators, sharing five key suggestions for relieving undue tax administration burdens in the wake of this difficult COVID-19 situation. As explained, “at a time when many people are working from home and should not or cannot go to post offices or banks, a business-as-usual attitude for...
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Illinois Amnesty Programs Now Underway
By Mary Kay McCalla Martire and McDermott Will & Emery on Oct 1, 2019
Posted In Franchise Tax, Illinois, Income Tax, Interest and Penalties, Procedure, Sales Tax
As previously announced, the Illinois Department of Revenue has begun a new amnesty program, running October 1 through November 15, 2019. All taxes paid to the Illinois Department of Revenue for taxable periods ending after June 30, 2011, and prior to July 1, 2018, are eligible for amnesty with relief from penalties and interest. Unlike...
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Illinois Moves One Step Closer to Enacting Captive Reform
By Mary Kay McCalla Martire and McDermott Will & Emery on Nov 21, 2018
Posted In Illinois, Insurance Tax, Local Tax
On November 14, the second day of its 2018 veto session, the Illinois Senate voted unanimously to override Governor Rauner’s amendatory veto of Senate Bill 1737 (Bill). As we have previously reported, the Bill is a proposed new law that would reform the Illinois Insurance Code’s regulatory framework for captive insurance companies and significantly drop...
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Illinois Department of Revenue to Waive Penalty for Late Filing of Business Income Tax Returns Due October 15
By Mary Kay McCalla Martire and McDermott Will & Emery on Oct 12, 2018
Posted In Federal Tax, Illinois, Income Tax, Interest and Penalties, Procedure
The Illinois Department of Revenue (Department) announced that it will grant abatement of late filing penalties for taxpayers that file their Illinois business income tax returns on or before November 15 and request penalty waivers for reasonable cause. The Department stated that it will waive late penalties due to the “complexity” of recent federal tax...
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Illinois Department of Revenue Issues Post-Wayfair Guidance Implementing October 1 Economic Nexus Law
By Mary Kay McCalla Martire and McDermott Will & Emery on Sep 28, 2018
Posted In Constitutional Issues, Illinois, Local Tax, Nexus, Sales Tax
In June 2018, just before the US Supreme Court ruling in Wayfair, Illinois enacted an economic nexus standard modeled after South Dakota’s law (see our prior coverage). The new Illinois standard takes effect on October 1, 2018. On September 11, the Illinois Department of Revenue (Department) issued an emergency rule (Regulation 150.803), together with other...
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Illinois Budget Bill Makes Few Tax Changes except the Adoption of an Economic Nexus Standard
By Mary Kay McCalla Martire and McDermott Will & Emery on Jun 18, 2018
Posted In Constitutional Issues, Federal Tax, Illinois, Income Tax, Nationwide Importance, Nexus, Sales Tax
On June 4, Illinois Governor Bruce Rauner signed into law the state’s fiscal year (FY) 2019 budget implementation bill, Public Act 100-0587 (the Act). The Act makes a significant change to the Illinois sales/use tax nexus standard by adopting an “economic nexus” standard for a sales/use tax collection obligation. The economic nexus language was added...
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New Mexico Administrative Hearings Office Issues Timely Opinion Regarding State Taxation of Subpart F Income and Dividends from Foreign Affiliates
By McDermott Will & Emery and McDermott Will & Emery on Apr 19, 2018
Posted In Federal Tax, Income Tax, Nationwide Importance, New Mexico, Tax Base
Earlier this month, the New Mexico Administrative Hearings Office issued an opinion that addressed the questions on the minds of many state tax professionals in the wake of federal tax reform: under what circumstances can a state constitutionally impose tax on a domestic company’s income from foreign subsidiaries, including Subpart F income, and when is...
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Illinois Responds to Federal Tax Reform Bill by Proposing Legislation to Decouple from the FDII Deduction
By McDermott Will & Emery on Mar 2, 2018
Posted In Federal Tax, Illinois, Income Tax, Tax Base
The 2017 federal tax reform bill, known as the Tax Cuts and Jobs Act (Act), made a number of significant changes to the law, particularly to the international tax provisions of the Internal Revenue Code (IRC). Last month, Illinois joined the growing number of states responding to the Act by proposing legislation purporting to add-back...
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Illinois Franchise Tax Relief on the Horizon
By McDermott Will & Emery on Dec 4, 2017
Posted In Franchise Tax, Illinois, Local Tax
For Illinois corporate clients who pay significant Illinois corporate franchise tax, relief may be on the way. Illinois is on the verge of joining Delaware and many other jurisdictions that permit simple conversions from corporate to limited liability company (LLC) form, by enacting the “Entity Omnibus Act” as part of House Bill 2963, passed by...
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