Will Internet Purchases Be Subject to Sales Taxes?

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie was quoted in an article published on May 10, 2013 for Compliance Week magazine. The article entitled, “Companies Take on Debt to Keep Foreign Cash Offshore” discusses how U.S. based corporations are starting to take on debt to manage their cash needs at home, even as they accrue cash offshore, where taxes are lower. Compliance Week is an information service on corporate governance, risk and compliance that features weekly electronic newsletters, a monthly print magazine, proprietary databases, industry-leading events, and a variety of interactive features and forums.

To read the article in full, please click here.

Ashley Forte

Arnstein & Lehr Chicago Associate Ashley Hayes Forte was quoted in a May 8, 2013 article in Forbes Magazine entitled, “First Comes the Marketplace Fairness Act. Then, the Lawyers.” Ms. Forte contributes her thoughts from a tax attorney perspective on the recent Senate passing of the Marketplace Fairness Act. The complete passing of this Act would grant states the authority to collect sales tax at the time of the transaction, but only after they simplify their sales tax laws.

To read the article in full, please click here.

Adam Fayne

Arnstein & Lehr LLP Chicago Partner Adam Fayne was quoted in an April 16 Compliance Week article on the recent judicial victory for the Internal Revenue Service that imposes penalties on certain types of deferred compensation that were previously considered abusive tax shelters.  Compliance Week is an information service on corporate governance, risk and compliance that features weekly electronic newsletters, a monthly print magazine, proprietary databases, industry-leading events, and a variety of interactive features and forums.

To read the article in full, please click here.

Robert A. McKenzie

Arnstein & Lehr Chicago partner Robert A. McKenzie was recently featured on WGN Channel 9′s evening news to offer last-minute tips on filing your taxes.  He offers tips on state and local taxes, tips for those with children, those who are homeowners, and those who need to file an extension.

To watch the segment in its entirety, click here.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie continues to be a highly sought expert on the Internal Revenue Services Offshore Voluntary Disclosure Program. He was interviewed last week for an article that appeared online on the Bloomberg News BNA website. The article, “Dozens With Bank Leumi Accounts Rejected From OVDP After Acceptance” appeared online on March 12. The article reviews how the IRS has notified dozens of taxpayers who were previously accepted into its offshore voluntary disclosure program that they have been disqualified from participation. Mr. McKenzie noted in the piece that nearly all the taxpayers had accounts at the Tel Aviv-based Bank Leumi. He also pointed out that he discovered that as many as 40 other taxpayers with Bank Leumi accounts had been disqualified. The development comes as IRS focuses increasing attention on Israel as a potential location of hidden assets.

To read the complete article, please click here.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie offered his thoughts in a March 8 Accounting Today article on the Internal Revenue Service notifying tax attorneys around the country that their clients have been disqualified from participation in the Offshore Voluntary Disclosure Program (OVDP), even after they had initially been accepted in the program. The Wall Street Journal also asked Mr. McKenzie for his thoughts on the subject.

The IRS offered the OVDP as a way to encourage taxpayers with previously undisclosed bank accounts, particularly at Swiss banks like UBS, to come forward voluntarily, pay their back taxes and avoid heavy penalties. In some cases, the clients and their tax practitioners had filed amended returns and paid the back taxes and interest on previously undisclosed accounts at foreign banks after receiving assurances that they had been accepted in the program. Now some are concerned that they will face stiff penalties and even the possibility of prison sentences after coming forward voluntarily.

To read the Accounting Today article featuring Mr. McKenzie’s comments, please click here.  To read his Wall Street Journal comments, please click here.

Kathleen Lach

Arnstein & Lehr Chicago Partner Kathleen M. Lach’s article on AT&T Teleholdings, Inc.’s recent state tax case appeared in the February 2013 issue of the Illinois State Bar Association’s Tax Trends newsletter, the newsletter of the ISBA’s section on State & Local Taxation. In an appeal by the Department of Revenue from an order of the circuit court reversing the determination of the Administrative Law Judge in the underlying hearing, the appellate court upheld the circuit court’s reversal finding that the Department did not properly utilize the mathematical error procedure to correct Ameritech’s pre-merger return.

To read the article in full, please click here.

Ronald Fieldstone

Rebecca Sarelson

Arnstein & Lehr Miami Partners Ronald R. Fieldstone and Rebecca Abrams Sarelson were asked for their thoughts on the new American Taxpayer Relief Act in a February 7 article in Miami Today entitled “Tax act makes it harder to define who’s wealthy.”

To read the article and their comments, please click here.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie has been elected as secretary treasurer of the American College of Tax Counsel. He is now in the line of succession to become chair of the College. The College is composed of tax lawyers selected fellows (approximately 695 in number) chosen by their peers in recognition of their outstanding reputations and contributions in the field of tax law, and is governed by a board of regents consisting of one regent from each federal judicial circuit and two regents at large. Prior to his election to the secretary treasurer post, Mr. McKenzie served as the 7th Circuit regent for the past six years. Membership in the College is by invitation only after an affirmative vote by the board of regents.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie presented a national teleseminar on January 23 for Winning Strategies, a national organization for tax practitioners. His topic reviewed the IRS enforcement activities during 2012.

To read more about the organization, click here.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie had another productive month of lectures during September. He presented a program on trust fund recovery penalties with Judge James Halpern of the U. S. Tax Court at the fall meeting of the ABA Tax Section in Boston. He made three presentations to Illinois CPA groups on ethics in tax practice. He spoke at two webinars for the National Society of Accountants and two webinars for Spidell Publishing of California. Mr. McKenzie”s webinars topics concerned various issues in IRS representation. He is scheduled for nine presentations in October in Baltimore, Washington, Portland, St. Louis, Los Angeles, Las Vegas and Lisle.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie spoke on August 24 on Money For Lunch, a talk radio channel, regarding various taxation issues and the IRS. Mr. McKenzie comments the average taxpayer has 1.1% chance of being audited, plus he describes various factors that increase the chance of being audited. Mr. McKenzie’s segment starts at the 47 minute, 35 second point in the below link.

To listen to the radio interview, please click here.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie was quoted in an August 10 article in the Chicago Daily Law Bulletin, titled “Lawyers fight stigma of offshore accounts.” The article discusses the common misconception of wealthy U.S. citizens holding assets offshore and the IRS’ rules governing foreign assets, making it harder to transfer money overseas without paying taxes on them. Mr. McKenzie comments that holding money overseas can serve as a way to protect it from creditors so long as a person puts it there before the creditors exist and the person pays his or her share of the taxes.

To read the article in full, click here.

Thomas F. McGuire

Arnstein & Lehr Chicago Partner Thomas F. McGuire participated in Finding Value in Building Green, a free seminar held July 28 at the Orren Pickell Design Showroom in Northfield, Illinois. Mr. McGuire participated with design experts who shed light on the benefits of incorporating eco-friendly options – from environment, health, sustainability, and work place safety. They also demonstrated how to incorporate these environmentally-sound choices in an existing home, new construction or remodel. During his presentation, Mr. McGuire addressed the tax implications of building green. Orren Pickell Designers & Builders is an architectural, home building and remodeling business based in Lake Bluff, Illinois.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie was quoted in a July 19 article in Forbes magazine, titled “Both Left And Right Got The Taxes On The Romneys’ Olympic Horse Wrong.” The article discusses Mitt Romney’s 2010 tax return and his claims for passive activity loss on Rafalca, a riding horse that will represent the U.S. in the “dressage” competition in the London Olympics. Mr. McKenzie comments that the Romneys did all the paperwork right and can assert they thought they would make a profit, even if they never do.

To read the article in full, click here.

Robert E. McKenzie

Adam S. Fayne

On April 30, the U.S. Supreme Court entered an order in favor of a firm client. The client had entered into an investment that was challenged by the IRS. In April 2007, the IRS issued a Notice of Deficiency to the client. Arnstein & Lehr Chicago Partners  Robert E. McKenzie and Adam S. Fayne filed suit in the U. S. Tax Court alleging that the IRS notice was tardy. The Tax Court ruled in favor of the taxpayer and found that the statute had expired in August 2009. In September 2009, the IRS issued a retroactive regulation that purported to overrule the order of the Tax Court. The government then filed an appeal of the Tax Court decision and the 7th Circuit subsequently ruled against the client in January 2011. An appeal was taken on behalf of the client to the Supreme Court. Several other appeals with similar issues also sought relief from the Court. The client and the other taxpayers each filed briefs of the case issues. The Supreme Court chose the Home Concrete case to hear for oral argument on the issues. In April 2012, the Court ruled favorably in that case and then issued a favorable ruling for the client, receiving relief from millions of dollars of taxes and penalties. Mr. McKenzie and Mr. Fayne are also representing three other taxpayers with similar issues and the savings for the clients total more than $40 million as a result of the Supreme Court decision. In June, the Tax Court entered favorable orders for our firm in two of the three matters.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie was quoted in a June 26 article in Forbes magazine, Personal Finance section. The article, titled “IRS Cuts Middle Class Expats Big (And Deserved) Penalty Break,” discusses the IRS’ new rules granting a penalty break to middle class U.S. expats and dual citizens who have been living in high tax foreign countries, such as the U.K. and Canada. Mr. McKenzie describes one of his clients, a widow in Canada, who will be excused from a $75,000 Report of Foreign Bank & Financial Accounts penalty as a result of the new rules.

To read the article in full, click here.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie had a productive June, giving 15 presentations on IRS representation topics during the month. He presented before the New York University Tax Representation Forum, Chicago Kent Law School Not For Profit Tax Seminar, the American Society of Tax Problem Solvers, National Society of Accountants, California Society of Enrolled Agents, McGladrey & Pulen CPA and Rothschild Investments. The speeches were in New York, Beverly Hills, Reno, St. Charles and Chicago. He also presented two national webinars.

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie authored a May 27 article titled “New IRS Offer in Compromise Policies,” which appears on the Forbes website. The article discusses the Internal Revenue Service’s more flexible terms to its Offer in Compromise (OIC) program, which promises to enable some of the most financially distressed taxpayers an opportunity to clear up their tax problems, and in many cases, more quickly than in the past.

To read the article in full, please click here.