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Lawmakers who are sent to the State capitol this November will have the daunting task of deciding whether or not the state’s person income tax will remain at 5% or roll back to 3.75% at the beginning of 2015.  The choice to continue the tax at 5% is a sticky issue considering that allowing the roll back could make the job of figuring out how to pay state expenses and bills even more difficult for lawmakers. In close races this November, the debate about the personal income tax rate may sway … [Read more...]

Over a week ago, Mayor Rahm Emanuel stated that there would be no new taxes, fines or fees in the coming year.  However, there is a shortfall in the budget of nearly $3 million that the Mayor would not address at the time.  Emanuel stated he would not be closing tax loopholes nor would he extend tax collections to other services with the exception of parking meter rates. Chicago will have to wait until the Mayor releases his new budget (scheduled for October 10) to see how he manages to make … [Read more...]

It is unknown exactly how much Illinois Tool Works had to pay because of an IRS whistle-blower; however, it is estimated that it could have paid as much as $383 million to the IRS because of information received from the whistle-blower.  IRS whistle-blowers receive payment based on information they provide only after the company pays taxes based on that information. A spokesperson from Illinois Tool Works stated that the matter might have gone back to a 1995 transaction.  For full details … [Read more...]

In a nice twist, homeowners in Orland Park will be able to receive a portion of their property taxes back that they paid during 2011.  This is because the village board approved a rebate program worth $2.5 million in August.  Rather than paying additional taxes as many homeowners do in other villages, Orland Park homeowners will be able to recoup some of the taxes they paid due to the surplus. Applications for the tax rebate program will be accepted beginning October 29. For more information … [Read more...]

There were a lot of charges and counter-charges thrown around last night during the first presidential debate. Who was telling the truth and when? The Tribune takes a close but concise look at many of the more important statements made during the debate, particularly the ones about Mitt Romney’s ideas on taxation. Checking the facts once the rhetoric has died down is a must after every debate of this type, when emotions get aroused and candidates repeat the same charges over and over again, … [Read more...]

Chicago attorney, Donna Guerin, pleaded guilty last month in U.S. District Court for tax evasion and conspiracy to defraud the United States.  Guerin assisted rich clients reduce their tax liability by drafting false documents. Tax shelters were used to create false loses that allowed wealthy clients to get out of paying millions of dollars in taxes to the government.  Prosecutors have said this is the biggest tax fraud prosecution in history.  One of the tax-shelter schemes resulted in … [Read more...]

That lawyer who has invited you to a fund-raiser for Barack Obama might be one of the many attorneys that has profited quite handsomely from the Obama administration’s crackdown on corporate fraud. Representing whistle-blowers has proven to be quite beneficial during the Obama presidency, and now those lawyers who have made big money in this area of law are trying to keep the payouts coming. The Obama administration has focused specifically on corporate fraud over the past four years, which has … [Read more...]

As if filing bankruptcy is not stressful enough, some clients of bankruptcy attorney Bradley F. Aubel had their identity stolen and their credit cards used without their knowledge.  Aubel and an employee created false tax returns and used clients’ credit cards to get cash advances. To make matters worse, after the employee was arrested Aubel tried to “buy her off” to keep her from cooperating with the authorities.  He also used the employee to help him try to get out of paying his student … [Read more...]

If your eyes glazed over when the HR rep at work begins to explain Flexible Savings Accounts that are taken right out of your paycheck, you missed out on the chance to save hundreds of dollars per year. That’s because FSAs can be used on a variety of medical expenses, and the money placed in them is tax-free income. Consequently, you can save an average of $450 per year by using an FSA. Now you’re paying attention! Columnist Gregory Karp gives all of the details in this recent column, which … [Read more...]

There are actually several ways that you can turn that favorite pastime into a tax-deductible activity. Most taxpayers have no idea that they can write off time and money spent pursuing a passion if they frame it in the correct way on their return. This article gives several great tips on making your hobby work for you at tax time. It doesn’t involve any sleight of hand, either, just prudent record-keeping and an understanding of how that given hobby is used to generate income, yet can be costly … [Read more...]