Corporate or trust income tax at the highest rate (21% for corporations, 35% for trusts, in 2019)[i] applies if a nonprofit entity fails to qualify, engages in prohibited transactions, or stops operations that are exempt from taxation.[ii] 378 entity 501(c)(3) exemptions are listed by the IRS as having been revoked through formal hearings since 2005,…
The Illinois Policy Institute has examined IRS data, and thinks this is a problem. Texas and Florida appear to be prime destinations, see https://www.illinoispolicy.org/reports/irs-data-show-continuing-illinois-wealth-flight/ The real problem appears, however, to be attraction of new residents, since an aging population moving to warmer climates may have nothing to do with tax burdens, see https://www.chicagotribune.com/news/ct-census-illinois-population-trend-leavers-met-20190925-55e2uha64rardg7pa5734u6twu-story.html Past increases in…
The Illinois Supreme Court’s decision in Oswald v. Hamer (2018 IL 122203, 115 N.E.3d 181, 425 Ill.Dec. 626 (Ill., September 20, 2018)) upheld a General Assembly action changing the statute which was interpreted to deny a charitable use exemption for a hospital…
Top Ten Church, Charity, and School Illinois Property Tax Exemption Mistakes By: William A. Price, www.growthlaw.com Don’t apply for property tax relief before you get your federal exemption letter. You have the burden of proof of exemption, and though the IRS “Good Housekeeping Seal Of Approval” is not enough to prove state qualification, it is…
The practice of law has changed, starting in London, and moving fast around the world. The four biggest law firms are the “Final Four” accounting firms, with law licenses in many countries and over 10,000 lawyer employees collectively. British solicitors (their term for non-trial lawyers, where trial lawyers are barristers) firms like Eversheds, Allen &…
Stock option plans and other stock plans let you compensate your employees or independent contractors for improving the value of the company without making them immediately liable for taxes on the value of their stock or options. There are several variations. These include: Classic stock options: Employee or Contractor purchase rights, exercisable immediately…
The Illinois General Assembly passed, and Governor Pritzker is expected to sign SB 75. This legislation: a. Increases information exchange between state departments concerning candidates for state licenses or those holding same whose licenses may be refused, revoked, or suspended as a result of commission of a civil rights violation. b. Specifies that a “hostile…
The General Assembly repealed the 1/10 of 1% capital assets of business corporations franchise tax, and the Governor has signed the repeal, P.A. 101-0009. The tax disappears for amounts due below $30 in 2020, below $1,000 in 2021, $10,000 in 2022, $100,000 in 2023, and all amounts in 2024. The tax comes back in 2026…
When Roman tenants stumbled back into the lobby of their apartment buildings after a night of drinking, they probably threw a few coins into a clay pot by the stairway. If they died of drink (or the lead lined pipes, or the diseases that city life still features), the coins in the pot would pay…
Jim Nepple and I presented a half day seminar on LLC and S corporation tax issues on May 15, 2018. My part focused on what pass-through entities are, and how Illinois LLC operating agreements should be modified to define agency authority (e.g., who can sign contracts for the company) and manager rights, if the company…