Need a better understanding of the Cook County property tax system and its complexities? Our own Donald T. Rubin will participate in a tax panel discussion and networking session hosted by the Institute of Real Estate Management on Oct. 11 at Maggiano’s in Chicago. Learn more and register today here.

Although the Illinois tax on personal property was eliminated nearly four decades ago, the approach to classifying real and personal property remains controversial.

Before Illinois’ personal property tax was abolished, both real and personal property were assessed and taxed the same. Nobody cared if property was called “real” or “personal.” But when the tax on individuals was eliminated in 1970 and its corporate counterpart was phased out nine years later through a constitutional amendment, classifying property as real or personal suddenly became a big deal. Since then, only real property has been taxed.

Any corporate taxpayer contemplating an appeal should call a property tax attorney sooner rather than later.

A corporation is considered a person under the law, albeit an artificial one. It sounds like an odd concept, but it’s been around for a while. Odder yet is that corporate personal rights exist and are expanding. Pro se or self-representation is a right that’s as old as our Constitution. In the property tax appeal process, an individual can always represent themselves, but does the same rule apply to a corporation? It depends.

While the appeal process now includes more transparency, understanding the best way to proceed and succeed often requires the assistance of a trusted property tax attorney.

Each county in Illinois has a three-member panel called the board of review, which acts as an intermediary between township assessors and taxpayers. Boards hear and decide assessment complaints after giving taxpayers an opportunity to be heard. They also make rules so that the appeal process is orderly and fair.

Last year, both the City of Chicago and Cook County enacted mandatory paid sick leave laws, which went into effect on July 1, 2017. The agency responsible for enforcing the law, the Cook County Commission on Human Rights, previously advised employers that it would extend a one-year “grace period” to allow employers time to comply, in good faith, with the new law. During the grace period, enforcement actions were focused on intentional failures to comply, rather than on employers who attempted to comply, but may have failed to appreciate some nuance or unusual aspect. Now that the one-year period is over, all employers located in Cook County have even more reason to review their paid sick leave policies to make extra sure that they are in line with the new requirements.

• Does Your Business Qualify For A Tax Incentive program?
• GCT Participates In An Event That Is Close To Our collective Heart
• Update On Mandatory Paid Sick Leave Laws And A supreme Court Decision Affecting Employment agreements
• Addressing Negative Online Reviews When They Go Big

No matter where you live or what type of property you own, you may qualify for any number of special tax incentives that could save you hundreds or even thousands of dollars.

Illinois may be second in the nation when it comes to the highest property tax burden, but the Prairie State offers its fair share of tax breaks too. Here are a few of the laws designed to help homeowners and businesses cut their taxes.

As an owner, you’re entitled to your privacy. However, denying a request for an interior inspection could work against you without a property tax attorney to assist.

Township assessors will begin giving all properties in their jurisdiction a look when the 2019 reassessment period begins on January 1. State law requires property in Illinois to be reassessed once every four years, while it’s every three years in Cook County. But just how close of a look are assessors entitled to take?

Reviewing your property record card for errors or misjudgments could lead to a reduction in your assessment and overall tax liability.

An easy way to reduce your property’s assessment—and ultimately your tax liability—is to find and correct any inaccuracies that appear on your property record card.

From understanding complicated laws to knowing how to dispute exorbitant assessments, having an expert on your side can ensure you’re not overpaying when it comes to property taxes.

Property taxes affect us all, whether we’re paying them directly or receiving services or benefits covered by the tax. That’s especially true in Illinois, where property taxes are the 2nd highest in the nation, behind only New Jersey.*

The Bipartisan Budget Act (“BBA”) repealed and replaced the preexisting audit rules with a new set of centralized partnership tax audit and tax litigation rules. The most significant BBA Rule is that any “imputed underpayment” or “partnership adjustment” (collectively, “Partnership Adjustment”) will now be paid by the partnership, not the individual partners/members. The BBA Rules also replaced the role of a “Tax Matters Partner” with that of a “Partnership Representative,” who will have sole authority to act on behalf of the partnership. Additionally, either the partnership or its partners/members (as discussed below) will pay any tax assessed during the tax year in which the audit is resolved (“Adjustment Year”), not the tax year to which the audit is subject (“Reviewed Year”). Taking effect for all partnership taxable years that begin on or after January 1, 2018, these new BBA Rules govern IRS tax audits of partnerships, limited liability companies, and other entities and arrangements classified as partnerships for U.S. federal income tax purposes.

In 2017, Illinois amended its Human Rights Act to strengthen protections granted to an employee’s sincerely held religious beliefs. The amended statute, known as the Religious Garb Law, prohibits an employer from taking action that would cause an employee to “violate or forgo a sincerely held practice of his or her religion including but not limited to, the wearing of any attire, clothing, or facial hair in accordance with the requirements of his or her religion.” These beliefs could affect an employee’s ability to work on certain days or times, work with certain foods or products, engage in prayer, attend worship services, or observe religious holidays. Additionally, an employee might need to display religious objects or markings, refrain from participation in certain activities at work, and/or wear certain garments.

In a surprising decision, a federal court in Illinois recently determined a frequently used clause in non-compete agreements was overly broad. In Medix Staffing Solutions, Inc. v. Dumrauf, the court found that a clause prohibiting a former employee from taking any position with another company that engaged in the same business as his former employer was overly restrictive. The court found the clause improper because it failed to consider what services the employee actually performed for his former employer or whether his new employer was really a competitor. The court was concerned that the clause could prohibit employment with a company that was not actually a competitor finding it wrongfully prohibited the employee, “from taking any number of more plausible roles at another industry player, no matter how far removed from actual competition with [his former employer].” Rather than judicially modifying the agreement to be more reasonable, the court threw out the entire agreement.

Property taxes affect us all, whether we’re paying them directly or receiving services or benefits covered by the tax. That’s especially true in Illinois, where property taxes are the 2nd highest in the nation, behind only New Jersey.*

Cease and desist letters are pretty self-explanatory. They are letters that demand the recipient stop taking actions that interfere with the letter writer’s rights. A cease and desist letter is not a legal document. But it is a notice that a claimant feels something is wrong with what the recipient is doing. It could lead to a lawsuit. But not automatically.

• How The New Partnership Tax Audit Rules Apply To You
• Complying With Religious Garb Law And Binding Non-compete Agreements
• Reasons To Consider Hiring A Property Tax Attorney
• Should You Respond To A Cease And Desist Letter?

You have worked hard to build up a nice little nest egg. You may have started or purchased a successful business, own a home, have savings in the bank, put aside money to pay for your kids’ college education, and accumulated several investments which you hope will carry you though retirement. The stock market is at an all-time high, and you may have even been diligent enough to prepare an estate plan. But the future is impossible to predict and your assets should be protected in case of a rainy day.