By Andrew Thomason | Illinois Statehouse News

SPRINGFIELD – Mark Bohart opened Bo’s Hardware in 1987.

“I built it from scratch,” Bohart said.

Despite an income tax hike in January and the proliferation of franchised hardware stores in the area, Bohart said his Alton business is still holding up. But asked about his thoughts on a plan to give CME Group, and Sears Holding Corp. millions of dollars in annual tax breaks to stay in Illinois and he gets angry.

CME Group is the parent company of the Chicago Mercantile Exchange and the Chicago Board of Trade, both of which make money by trading in the financial markets. 

“The state government has absolutely no reason to be giving any tax money away. I just don’t think it’s right that they give corporations tax breaks and other tax incentives,” Bohart said.

For Bohart, it’s a matter of survival. Just two miles from Bohart’s shop there’s a Sears department store that he competes with.

Legislators are working to give CME and Sears tax breaks to keep the companies’  in the state. Both companies have said other states are offering them incentives to move, which would be bruising to state government’s bottom line.

CME’s $108 million in income taxes alone accounted for 6 percent of the state’s corporate income tax last year. Without $85 million in proposed yearly tax breaks, CME will pay an estimated $158 million in income taxes this year.

Sears would get tax breaks of $15 million for the next decade. Sears would also be allowed to continue getting a break on its local property taxes for fifteen years. The company has been paying reduced property taxes for about 20 years.

Sears would be required to keep a minimum of 4,250 employees in the state at its headquarters in Hoffman Estates under the plan. But that would allow the company to downsize its current workforce of 6,100 by 1,850 and still get the benefits of lower taxes.

Not everyone in the Legislature is on board with the tax breaks.

“When I think about the other businesses we’ve given tax breaks to, what do we get as taxpayers in return? Another threat? When is enough, enough?” state Rep. Mary Flowers, D-Chicago, asked.

CME Chairman Terry Duffy said at a committee hearing Tuesday that his company isn’t seeking a handout from the state and isn’t threatening anyone.

“I would not be going through all this effort if we did not have a commitment to stay here,” he said.  “I simply would have gone to another state, accepted very lucrative proposals and moved our firm.”

The cost of the measure has increased to more than $500 million annually by tacking on research and development tax breaks for companies and tripling the earned income tax credit in hopes of getting more legislators’ support. The earned income tax credit is a tax break for low-income and working class families.  

To pay for all of this lawmakers are looking at decoupling the state from a federal tax code that allows businesses to get deductions on capital investments all at once instead of over a series of years.

 ”The framework for a good bill is out there, it just needs to be rebalanced so you’re not taking too much away from certain employers in order to benefit others,” Todd Maisch, vice president of government relations for the Illinois Chamber of Commerce, the state’s largest business association.

That move, however, would only generate $570 million in the first year and $354 million in the second year before disappearing. 

At the same time, the second year cost of the tax incentives to CME and Sears, tripling the earned-income tax credit for families, and offering research and development tax breaks for companies around the state outlined in the plan would go up to $700 million.

David Vaught, Gov. Pat Quinn’s budget director, said economic growth in the state created by package would cover costs in the future during a committee hearing Tuesday.

If there isn’t a corresponding economic growth, the burden of covering the costs of the program will fall to the taxpayers of the state, including Bohart and his business.

“I resent that, I resent that a lot,” he said.

There are other businesses that could use the money from decoupling more than CME and Sears, some argue. The state owes between $4 billion and $5 billion in overdue bills to state vendors, schools and small businesses that the state contracts will.

“They employ people (and) we are doing nothing here by way of paying any back bills,” state Rep. David Harris, R-Arlington Heights, said.

Advocates of paying off the state’s old bills say doing so would allow those owed to avoid furloughs, layoffs or even closing, thus keeping tax revenue from those workers and businesses flowing into state coffers. 

Originally reported by Illinois Statehouse News. Read the original article here.

Small business left out of tax break discussion | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

CHICAGO, Feb. 16, 2011 /CHICAGOPRESSRELEASE.COM/ — The deadline for taxes is just around the corner. While businesses are reviewing their 2010 bookkeeping software, they should be sure to take into account their business deductions. Though owners must meet their responsibilities to the IRS, they should make use of the breaks afforded them to keep their business financials strong.

While managing their bookkeeping, businesses should deduct all ordinary and necessary expenses from their revenue so their taxable income is decreased. These can include the following deductions:

1. Vehicle expenses that are used for the business. Owners can use either an actual expense method or a standard mileage rate method to determine their deduction. The proper method will depend upon whether the owner uses the auto primarily for business or both personal and business use.

2. Bookkeeping, payroll services, legal, tax and other professional fees are fully deductible because they are a cost of running the company.

3. Business losses can be deducted from an owner’s personal income if the owner experiences financial losses that exceed the personal income for the year. Additionally, some of the year’s company losses can be used to decrease the taxable income in upcoming years.

4. Certain travel and entertainment costs can be deducted. If travel is more than 50% business related, then expenses such as plane tickets, transportation costs, lodging, meals, laundry and communication expenses can be deducted. However, if family joins, their expenses cannot be included. Half of entertainment tabs can be deducted if the owner pays for the cost of entertaining present or potential clients.

5. When in review of the bookkeeping, remember that some interest, new equipment and taxes may be deductible. Take into account interest on personal loans or credit. New equipment for company use, such as software, may be added. Taxes can be a little trickier, so a professional bookkeeper should be consulted. Generally these are taxes incurred while operating the company, such as sales tax on new items, employment tax, real estate tax, etc.

Some deductions are not well known so a bookkeeping or tax professional should be consulted to ensure a company is able to seize all their deduction opportunities. These can include moving expenses, advertising and promotion costs, charitable contributions, and training and education expenses.

About Bookkeeping.net:

Bookkeeping.net offers a free service that connects businesses with bookkeeping professions to manage their specific needs. You can find the perfect fit for your business, whether you are interested in payroll processing, accounts payable, accounts receivable, tax reporting, bank reconciliations, financial statement creation, general bookkeeping or small business bookkeeping. Regardless of your needs, you can learn more about the services available and find the right professional for your business by visiting the website today!

This press release was issued through eReleases(R).  For more information, visit eReleases Press Release Distribution at http://www.ereleases.com.

SOURCE Bookkeeping.net

http://www.bookkeeping.net

Bookkeeping Tips for Business Deductions | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

CHICAGO – October 2, 2010. Governor Pat Quinn today announced the start of Illinois’ tax amnesty program. Under the program, which Governor Quinn signed into law earlier this year, Illinois taxpayers have the opportunity to pay overdue state taxes without penalty or interest from Oct. 1 to Nov. 8.

“During these unprecedented fiscal times, we must do everything we can to bring additional revenues to the state,” said Governor Quinn. “This is the best opportunity for people who owe the state back taxes – for any reason – to pay them without the added burden of penalties and interest.”

To participate in the program, taxpayers must fully pay any overdue taxes between Oct. 1 and Nov. 8. The program waives penalties or interest for tax periods after June 30, 2002 and before July 1, 2009. If a taxpayer failed to file a tax return or filed incorrectly during that period, they must also file missing returns or amended returns to correct errors.

Taxpayers who participate in the amnesty program will see a significant benefit from the waiver of penalties and interest that account for $4 out of every $10 in tax debt owed to the state. Taxpayers who do not take advantage of the amnesty program will face doubled interest and penalties starting on Nov. 9.

The tax amnesty program waives interest and penalties only – the actual tax liability does not qualify. The program does not cover lien filing fees, bad check penalties or overdue taxes for which an offer of compromise has been accepted. Additionally, taxpayers who are under criminal investigation or have court cases pending are not eligible.

“Amnesty offers those who have a tax debt hanging over their head the chance to clear the slate and start over,” said Illinois Department of Revenue Director Brian Hamer. “I urge all delinquent taxpayers to take this opportunity to pay what they owe. Once the amnesty ends, we will initiate a major new effort to collect delinquent taxes, using such tools as bank levies, property liens, wage garnishments, business and professional license revocations, and even criminal prosecutions when appropriate.“

Additional information is available at Tax.Illinois.gov. The state’s Taxpayer Assistance Center representatives are available Monday through Friday, 8 a.m. to 5 p.m., at 1-800-732-8866 or 217-782-3336.

Governor Quinn Launches State Tax Amnesty Program – Delinquent Taxpayers Have Until Nov. 8 to Pay Overdue State Taxes Without Interest or Penalties | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

BLOOMINGTON, Ill. (AP) — Illinois Gov. Pat Quinn says the income tax increase he’s pushing should also require schools to lower local property taxes.

The Chicago Democrat wants to raise income taxes to 4 percent, up from 3 percent now. He wants the added money set aside for schools.

Quinn repeatedly said Wednesday that his plan would lead to lower property taxes. Pressed on that, Quinn said he would seek legislation requiring schools to cut local taxes in order to get more state aid.

This appears to be the first time Quinn has discussed this requirement.

Republican challenger Bill Brady said the idea doesn’t seem to make sense. He called it “smoke and mirrors.”

Calls for a “tax swap” aren’t new, but most work by giving individual taxpayers a credit — not by requiring schools to cut taxes.

Quinn: Tax plan should include property tax relief | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Almost $196 Million in Unpaid Bills from Tax Year 2008 May Go to Auction

CHICAGO, Aug. 4 /CHICAGOPRESSRELEASE.COM/ — More than 57,000 owners of real property who owe almost $196 million in delinquent taxes can pay online at cookcountytreasurer.com before September 1 to avoid having their taxes go to auction, Cook County Treasurer Maria Pappas said today.

The names of the owners of unpaid bills issued in 2009 were being published in community newspapers today and Thursday to advise them that their unpaid taxes could go to the Annual Tax Sale beginning September 13. The owners also were receiving certified letters about the unpaid bills.

Pappas said the owners of unpaid bills on homes, businesses and land should pay before September 1 to ensure that their taxes are not offered for sale to tax buyers at the four-day Tax Sale, an auction of unpaid taxes for tax year 2008, which were mailed and collectible in 2009.

At the Annual Tax Sale, tax buyers enter electronic bids on unpaid taxes.  Winning bidders pay the taxes, then claim penalties and interest from owners seeking to redeem the taxes.  When an owner does not redeem, the tax buyer may ask a court for the deed to the owner’s property.

Pappas said that for the first year, payment can be made online at cookcountytreasurer.com from a checking or banking account, making it easier for owners to avoid the Tax Sale.

Personal or company checks are not accepted.  Payment must be made by certified check, cashier’s check, money order or cash at the 390 Chase Bank facilities around Chicagoland or at the Treasurer’s Office in Room 112 of the Cook County Building, 118 N. Clark Street, Chicago.

Pappas said owners can review their tax status at cookcountytreasurer.com or 312.443.5100.  Whether reviewing by web or phone, owners should have their 14-digit Property Index Number at hand, Pappas said.

SOURCE Cook County Treasurer’s Office

http://www.cookcountytreasurer.com

Online Payment at cookcountytreasurer.com Possible Through September 1 for Owners of 57,000 Delinquent Properties, Pappas Announces | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

The state started the year with $1.3 billion in the bank and still had $830 million left in reserves as of June 30, state auditor Tim Berry said Friday after closing the books on the 2010 fiscal year.

But Berry had a message for lawmakers who will meet in January to work on a new two-year state budget: “Don’t get giddy.”

The current budget calls for $300 million of reserves to be spent in the 2011 fiscal year, which began July 1. So the state is really starting the 2011 fiscal year with a $530 million cushion.

Berry predicts that state reserves will dwindle to $188 million by the end of June 2011 — less than 2 percent of the state’s $12.9 billion budget for that year. And if economic growth is slower than the 5 percent gain expected in fiscal year 2011, it could bring the reserves to near zero.

Five percent growth from 2010 to 2011 seems optimistic, said John Ketzenberger, president of the Indiana Fiscal Policy Institute. Numbers released in fiscal reports Friday show that 2010 revenue fell more than 5 percent below 2009 numbers.

The administration of Republican Gov. Mitch Daniels says tax increases aren’t an option — even if revenues fall short of budgets again in the 2011 fiscal year. That could mean spending all of Indiana’s reserves and making more severe cuts.

“Staying in the black when most states are broke and cutting taxes while they are raising them is the best way to help Hoosier families through this recession and out-compete other states for the new jobs we need,” Daniels said in a statement. “Thanks to our agency heads and state employees who are helping us find new ways to stretch tax dollars and do more with less every day.”

During fiscal year 2010, Daniels ordered state agencies to spend 10 percent less than budgeted, and schools were cut $150 million. Those measures — along with using some previously dedicated funds to help prop up the state’s general fund — helped the state spend $784 million less than budgeted.

Berry said a disproportional amount of cuts came from state agencies compared to schools and higher education. Public schools get about 55 percent of the state’s money, but made up 21 percent of spending reductions. State agencies get about a third of the state budget and accounted for 61 percent of cuts.

Daniels has ordered state agency spending in fiscal year 2011 to drop 15 percent below budgeted numbers. Schools will be cut another $150 million and could face more cuts on top of that, although officials haven’t decided yet whether more reductions need to be made.

Democrats noted that the state stayed afloat in part by using money from the federal stimulus program passed in 2009. The budget includes more than $500 million for Medicaid and about $600 million for basic school spending.

“Since the report issued today failed to do so, I want to make sure that the people of Indiana realize that this budget survives thanks to support from the federal stimulus package that has often been attacked by the governor and his administration,” said House Speaker Patrick Bauer, D-South Bend.

Democrats also said they wanted more information on exactly what was cut in 2010. Information posted on the state’s website shows how much individual agencies spent, but doesn’t detail how the reductions were made.

___

Online:

http://www.in.gov/sba/2550.htm

Ind. spends savings, cuts budgets to balance books | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

State officials have sharply reduced the sales tax that retailers must charge on back-to-school items from Aug. 6 to Aug. 15. From coats and jackets to rubber pants, from protractors to paste sticks, the tax owed during the “holiday” will be 1.25 percent, down from 6.25 percent.

“Working families with kids going back to school, we want to give them a break,” said Rep. Keith Farnham, an Elgin Democrat who sponsored the measure that is awaiting Gov. Pat Quinn’s OK. “And we hope to stimulate sales, thereby creating business.”

The state typically charges 6.25 percent on retail sales, but returns 1.25 percent to local government agencies. The August holiday temporarily eliminates the state portion.

The downside is the sales tax holiday could cost the state $40 million to $60 million while lawmakers continue to struggle to close a $13 billion deficit.

But Farnham and the Quinn administration believe increased sales – not only of school supplies but of other items pulled off shelves while Mom’s in the store – could fill up cash registers.

“It stimulates the economy, it draws people in from border states,” said Rob Karr of the Illinois Retail Merchants Association.

Florida will offer a school-supply tax holiday this summer after discontinuing it the last two years because of downturns in revenue. The holidays had been an annual event so popular lawmakers were forced to bring it back. But this year it will only be two days, instead of the week it used to run.

In Illinois, the holiday covers 10 days – a week book-ended by two weekends – and will apply to clothing and shoes under $100, along with school supplies such as binders, calculators, notebooks, paper, crayons and lunch boxes.

Computers and computer supplies are not included. Nor are art supplies such as paintbrushes or drawing pads or instructional materials such as textbooks or globes.

Kelly Kraft, spokeswoman for Quinn’s budget office, said officials believe increased sales will actually outrun the drain on tax revenue because it will “get people out to the stores shopping.”

Republicans cried foul. Although they’ve supported tax holidays in the past and oppose Quinn’s proposal to raise the income tax for education, many argued a time of dire financial straits is not ripe for cutting back on revenue.

“There’s a lot of cries about reducing taxes from the Republicans,” Farnham said. “This is a very practical, hands-on, limited-to-a-certain-period-in-time reduction in taxes.”

Illinois taxes lower on classroom purchases | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Lawmakers have approved legislation that would lift the income tax on any state settlement to someone who was wrongly imprisoned.

The final step was a 101-10 vote in the House on Wednesday. The legislation now goes to the governor.

Illinois has seen many prisoners released after evidence surfaced that proved they were innocent. In some high-profile cases, the prisoners had been sentenced to die.

The legislation is SB3648.

On the Net: http://www.ilga.gov

Read the original article from WBBM News Radio.

Lawmakers offer break to wrongly imprisoned | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Admission explains Obama’s recent attempts to alter his middle class tax pledge

WASHINGTON, April 21 /CHICAGOPRESSRELEASE.COM/ — President Obama made it official today: He is open to the imposition of a Value-Added Tax (VAT) on the American people.  A VAT would violate Obama’s central campaign promise – a “firm pledge” that no family making less than $250,000 per year would see “any form of tax increase“.

Obama’s admission came during an interview with CNBC’s John Harwood.  Asked if he could see the potential for a VAT, the President said:

“I know that there’s been a lot of talk around town lately about the value-added tax. That is something that has worked for some countries. It’s something that would be novel for the United States.  And before, you know, I start saying ‘this makes sense or that makes sense,’ I want to get a better picture of what our options are.”

Obama’s VAT admission may explain his recent attempts to alter the terms of his central campaign promise.  Twice in the past two weeks, Obama has claimed his middle class tax pledge only applied to income taxes rather than “any form of taxes”.  

In his April 10 Weekly Radio Address, Obama said:

“And one thing we have not done is raise income taxes on families making less than $250,000.  That’s another promise we’ve kept.”

In a speech on the evening of April 15, Obama repeated the truncated promise:

“And one thing we haven’t done is raise income taxes on families making less than $250,000 a year — another promise that we kept.”

The two recent statements stand in stark contrast to Obama’s original promise:

“I can make a firm pledge.  Under my plan, no family making less than $250,000 a year will see any form of tax increase.  Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.” (Dover, NH)  Transcript Video

The Obama VAT admission also comes the day after White House economic advisor Austan Goolsbee refused six consecutive opportunities to permanently close the door on a VAT and two days after White House spokesman Robert Gibbs said a VAT “is not something the President has proposed nor is it under consideration.”

Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose all tax increases.  For more information or to arrange an interview please contact John Kartch at (202) 785-0266 or by email at jkartch@atr.org.

SOURCE Americans for Tax Reform

Obama Floats a VAT: ‘It’s Something That Would Be Novel for the United States’ | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

“Those are real numbers, they are not doomsday numbers,” Quinn budget director David Vaught said Tuesday. “They are numbers we are going to implement in this budget.

Quinn also is expected to renew his call for more state revenues, although aides refused to provide details of any potential tax increase proposal during a news media briefing Tuesday night.

Instead, Quinn will give lawmakers a spending plan that includes no money from a tax increase.

Don’t count on tax hike

“The governor will discuss the need for more revenue,” said Jerome Stermer, Quinn’s chief of staff, “but you have to develop (budget) numbers assuming you won’t get one.”

That assumption is based on talks with legislative leaders.

“Every meeting we have with them they say, ‘Don’t count on that,’” Stermer said.

Stermer also would not talk about where additional money would be spent if lawmakers did agree to increase taxes, leaving it unclear what state services or spending might be spared if the administration was given more money.

The crisis is in the state’s general funds, which pay for most state services. The state has about $32.1 billion in spending obligations, said budget director David Vaught, but expects to take in only get about $27.4 billion in revenue. Stermer called that “precariously low.”

Stermer also insisted that the budget plan meets the legal requirement that it be balanced, despite its heavy reliance on borrowing and on pushing nearly $6 billion in unpaid bills into the 2012 budget year.

The administration said the budget is based on five principles: Job creation, cuts, borrowing, securing federal aid and increasing state revenues. Quinn has previously called for a 50 percent increase in the state income tax. Before the February primary, he said he still stands by that proposal.

Spending cuts

Quinn also plans to save money by cutting the amount of state income tax shared with local governments. Now, 10 percent of income tax revenues are sent back to local governments to help with their expenses. Quinn wants to cut that to 7 percent next year, taking $300 million from local governments and letting state government use it for its expenses.

About $276 million would be cut from some human service programs, including senior home care, community mental health services and child care subsidies.

About $70 million – half the program – would be cut from a state program that helps seniors pay for prescription drugs. The state plan helps plug a hole in coverage provided by the federal government.

Retired state employees would be asked to pay more for their state-subsidized health insurance.

Schools to suffer

Education also would suffer under Quinn’s proposal. Nearly $1 billion in federal stimulus money that propped up elementary and secondary education this year is expiring, and the Quinn administration is not counting on it being renewed. That will play a major role in the $1.3 billion being cut overall from education.

General state aid – basic state assistance to schools – would feel much of that reduction. Stermer said the state rollback could eliminate the jobs of as many as 13,000 educators.

About $94 million of the $1.3 billion would come from spending on higher education.

To foster jobs, Quinn will call for the state to provide a $2,500 tax credit for each full-time job created over the next year by small businesses – those with 50 or fewer employees. The administration expects 20,000 jobs to be created, but officials could not say how many of those jobs might be created even without an incentive program.

Stermer said the administration hopes to save $11 million by consolidating state offices and reducing the amount of leased space.

All 250 state contracts worth over $1 million will be reviewed individually to determine if savings can be extracted, either by cutting them or rebidding them.

Doug Finke can be reached at 788-1527.

Impact on state workers

In a briefing Tuesday, officials of Gov. Pat Quinn’s administration said the budget Quinn will propose Wednesday would wring $203 million in savings from state employees through furlough days, travel restrictions and $70 million in cuts to health insurance costs.

Materials distributed Tuesday project headcount reductions of more than 400 at the Illinois State Police and 30 at the Department of Corrections. However, other agencies show increases, including more than 200 each at the Department of Transportation and Department of Children and Family Services.

The budget also assumes the state will save $300 million from a pension agreement that Quinn’s chief of staff, Jerry Stermer, said is “in the works now.”

Stermer later acknowledged that the agreement involves creation of a two-tiered pension system, under which newly hired employees would get less generous benefits than current employees. Adovcates of pension reforms have long argued for a two-tiered system, but lawmakers so far have not gone along with it.

Key numbers

• Total expected spending: $32.1 billion
• Total expected revenue: $27.4 billion
• New deficit: $4.7 billion
• Proposed spending cuts: $2 billion
• Unpaid bills: $6 billion

Proposed spending cuts

• $1.3 billion from education. Most of the money would be squeezed out of general state aid to public schools because of the expected loss of federal stimulus money.
• $203 million in reduced spending on state workers through furlough days, travel restrictions and other steps
• $300 million in savings via a less-generous pension system for new employees.
• $300 million by reducing the share of state income taxes allocated to local governments.
• $276 million in human services, including cuts in child care, community mental health services and home care for adults.
• $325 million cut from health care, including reduced prescription drug assistance and a managed care pilot program for seniors and the disabled.

–Ryan Keith

Read the original article from The State Journal-Register.

Quinn budget heavy on borrowing, but no tax details | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

The City Council is expected to vote at its Tuesday meeting on proposed new tax hikes in an effort to close the remaining $5.5 million gap in the city’s budget.

The three revenue-generating ordinances include:

• A increase to the motor fuel tax from 2 cents per gallon to 5 cents per gallon.

• The creation of a $3.50 refuse fee for garbage collection added to residents’ monthly bills

• A change in the food and beverage tax that would divert 25 percent of funds collected to the General Fund instead of the Special Events and Cultural Amenities Fund for the upcoming fiscal year. Beginning the following fiscal year, 50 percent of funds would be diverted to the General Fund.

All of the changes would be implemented May 1, the start of the city’s fiscal year.

Two of the changes, the hike in the motor fuel tax and the moving of funds from SECA to the General Fund, were met with protests at the council’s previous meeting.

The council is expected to approve the taxes and fees but is set to revisit them in two years. The city estimates the combined revenue generated by the three taxes will be $4.5 million, leaving a $1 million gap in the budget for fiscal year 2011.

The council will also be voting on and discussing a number of items relating to the city’s workers.

Employees of the city may be subject to an increase in their health insurance premiums. A resolution to be voted on will increase employee contributions from 10 percent of premiums to 15 percent.

Following the council workshop Feb. 22, the council is set to revisit the subject of pension reform and decide on a course of action for lobbying Springfield to make changes to state pension system. The council will consider joining the Pension Fairness for Illinois Communities Coalition at a cost of between $1,000 and $10,000 to pool lobbying efforts.

The city cannot make direct changes to pensions for fire, police, or municipal employees because they are protected by the Illinois Constitution. Also on the agenda, the council is expected to approve temporary weekend overnight parking at three parking decks downtown.

The Naperville City Council will meet at 7 p.m. Tuesday in the council chambers at the Naperville Municipal Center, 400 S. Eagle St.

Read the original article from WBBM News Radio.

Suburb eyes garbage, gas hikes | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Federation president Laurence Msall says first and foremost, the state must reform its pension system and then roll back spending by around $2.5 billion.

Then and only then, he says, does the group recommend tax hikes. “We are recommending an increase in the individual income tax from 3 to 5 percent and an increase in the corporate income tax which is currently 4.8 percent to 6.2 percent.”

Msall acknowledges this is a tough sell in an election year.

“There is nothing politically palatable about what the Civic Federation is urging but there is nothing politically palatable about not paying your schools…your universities and jeopardizing the future of the state of Illinois.”

He says in essence, the state right now is bankrupt with the situation growing worse by the day.

The full report is available at civicfed.org/iifs/illinoisrehab

Regine Schlesinger reporting

Read the original article from WBBM News Radio.

Civic Fed urges reform, tax increases to avoid financial disaster | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

A spokesman for the IRS says individuals may be eligible for tax credits or deductions that may help them save money on their taxes this year, including the earned income tax credit if there was a decline in income or change in marital status.

Also under the American Recovery and Reinvestment Act of 2009, taxpayers with three or more children get an extra boost with a larger credit this year.

And the IRS says taxpayers who aren’t able to cover their full tax bill by April 15 can arrange for a payment schedule or extension.

The IRS has offices locally including:

Chicago – 230 S. Dearborn Street
Orland Park – 14479 South John Humphrey Drive

Schiller Park – 5100 River Road

These offices will be open from 9 a.m. to 2 p.m.

To locate the site nearest you call the IRS at 1-800-906-9887.

Read the original article from WBBM News Radio.

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GREENBELT, MD—Minh-Vu Hoang, age 59, of Bethesda, Maryland, pleaded guilty today to conspiracy to defraud the Internal Revenue Service and the U.S. Bankruptcy Trustee in connection with a scheme to conceal millions in profits earned from the purchase and sale of foreclosure properties.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge C. André Martin of the Internal Revenue Service – Criminal Investigation; Montgomery County State’s Attorney John McCarthy; and Special Agent in Charge Richard McFeely of the Federal Bureau of Investigation.

“People who create elaborate schemes that have no purpose but to mislead others and defraud the IRS run the risk of prosecution,” stated C. André Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge.

“Those Americans who file accurate, honest and timely tax returns can be assured that the Government will hold accountable those who do not.”

According to Hoang’s plea agreement, Minh-Vu Hoang, her husband and other family members purchased property at foreclosure auctions beginning in 1999, and resold some of the properties at a profit.

Hoang and others deposited and withdrew money from an escrow account for the purchase and sale of properties, and transferred money from the escrow account to business entities they controlled in order to conceal Hoang’s financial interests in the properties.

From 2000 to 2005, Hoang and others purchased and sold hundreds of foreclosure properties using the names of their agents or business entities to conceal their involvement in the purchase and sale of the properties, and thereby avoid taxes.

On May 10, 2005, Minh-Vu Hoang filed for a voluntary petition under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Maryland.

On May 27, 2005, Minh-Vu Hoang filed several false schedules and a false Statement of Financial Affairs with the Bankruptcy Court, in support of her petition.

In her Schedules, Minh-Vu Hoang reported a financial interest in only six properties, knowing that she had an interest in other properties, and further reported income in 2003 and 2004 of only $96,000 each year, knowing that her income for those years was substantially higher.

She also failed to report her interest in various bank accounts.

For example, on or about May 10, 2005, the same day that she filed her bankruptcy petition, Minh-Vu Hoang withdrew $10,000 from an account she controlled in order to purchase property located at 9807 Moreland Street in Fort Washington, Maryland in the name of Cybele GP.

Neither that property nor her interest in Cybele PG was reported in the bankruptcy schedules submitted in conjunction with her bankruptcy petition.

Similarly, in July 2005, Minh-Vu Hoang’s sister, Van Vu, opened a bank account in the name of Madison Plus LLC. Van Vu was the sole signatory on the account. Over the course of the next several months, proceeds from the sale of real estate controlled by Minh-Vu Hoang were deposited into the Madison Plus LLC account.

Over the life of the Madison Plus LLC account, more than $1 million flowed through the account.

The government contends that the tax loss and the loss from the bankruptcy fraud exceeded $2.5 million but was not more than $7 million. The defendant contends that the loss was less. Chief U.S. District Judge Deborah K. Chasanow will determine the amount of loss at Minh-Vu’s sentencing, which has not yet been scheduled.

Minh-Vu Hoang faces a maximum sentence of five years in prison.

Minh-Vu’s sister, Van Thanh Vu, age 55, of Bethesda, and Van Vu’s ex-husband, Hai Duc Ngo, age 61, of Fairfax, Virginia pleaded guilty on Monday and Wednesday this week to misprison of a felony, for attempting to conceal Minh-Vu’s interest in the Madison Plus LLC account.

Specifically, in July 2005 Van Vu filed a voluntary Chapter 11 bankruptcy petition. Hai Duc Ngo, with Van Vu’s knowledge and consent, submitted an affidavit in Van Vu’s bankruptcy proceeding, claiming that the Madison Plus LLC account was to be managed by Van Vu for Hai Duc Ngo’s exclusive benefit.

At the time this affidavit was filed, Van Vu and Hai Duc Ngo knew that Minh-Vu Hoang was in bankruptcy and that Minh-Vu Hoang did not disclose that she had a financial interest in the Madison Plus LLC account on her bankruptcy schedules or in her Statement of Financial Affairs.

Knowing that Minh-Vu Hoang had an interest in the Madison Plus LLC account, neither Van Vu nor Hai Duc Ngo made that fact known to any law enforcement personnel, including the IRS.

Van Thanh Vu and Hai Duc Ngo face a maximum sentence of three years in prison. Judge Chasanow has scheduled their sentencings for May 3, 2010 at 2:00 p.m. and July 19, 2010, at 9:00 a.m., respectively.

Minh-Vu’s husband, Thanh Hoang, age 64, of Bethesda, pleaded guilty to conspiracy to impede the IRS for his role in the scheme and is scheduled to be sentenced on June 14, 2010 at 9:00 a.m. Hoang faces a maximum sentence of five years in prison.

United States Attorney Rod J. Rosenstein thanked IRS – Criminal Investigation; Special Investigator Daniel N. Wortman of the Montgomery County State’s Attorney’s Office; the Federal Bureau of Investigation and the Greenbelt Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees, for their work in this investigation and prosecution.

Mr. Rosenstein commended Assistant United States Attorneys David I. Salem and Emily N. Glatfelter, who are prosecuting the case.

Maryland man pleads guilty in massive house-flipping scheme | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Thorpe’s attorney, Mark Horwitz, said Friday that Thorpe must turn himself in to authorities by April 1.

The American golfer also was sentenced to two years of supervised release and 200 hours of community service.

He must try to repay the taxes while he’s on supervised release.

In September, Thorpe pleaded guilty to two counts of failing to pay income taxes and had faced up to two years in prison.

Horwitz said Thorpe “has accepted his punishment and will be getting on with his life.”

Read the original article from Tribune News Services.

Golfer Jim Thorpe gets one-year prison term | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Under normal circumstances filing a tax return can be time consuming and confusing. But for military personnel and their families tax season only adds to the stress of trying to maintain a sense of normal life.

To help them at least in a small way, the Illinois CPA Society is offering free preparation of personal federal and state income tax returns through its Military Service Tax Preparation Project, offered in partnership with the Internal Revenue Service.

The project matches families with CPA volunteers throughout the state who can guide them through tax benefits, exclusions and extensions that are unique to members of the armed forces.

Who qualifies for free personal income tax return filing assistance?

Illinois residents who are claiming combat pay on their 2009 taxes qualify for assistance, that is residents who are members of the U.S. Armed Forces having served in a combat zone or qualified hazardous duty area within the 2009 tax calendar year, or who are members of the U.S. Armed Forces serving in a contingency operation.

When and where is assistance available?

This is a year round service available throughout the State of Illinois, but it’s best to request a volunteer CPA as early as possible in the tax season. A spouse or family member — son, daughter or parents — can request assistance for military personnel still overseas.

How does the program work?

Once basic information is provided to the Illinois CPA Society, military personnel and/or family members are matched with a CPA volunteer in their area. Contact information is shared so volunteer CPAs and individuals filing their taxes can make arrangements to work together to complete the tax returns.

Who do I contact for more information or to request assistance?

More information can be found in the Consumer Section of the Illinois CPA Society’s Web site, icpas.org.

To ask questions or request assistance, contact Jill Wiles, Community Service Manager at 312-993-0407, extension 277 or via e-mail at wilesj@icpas.org.

The Military Service Tax Preparation Project is designed to help those who don’t have a relationship with a CPA and who would otherwise have few resources for financial advice and information on IRS guidelines for military personnel.

With the professional expertise of a CPA, the tax filing process can be less overwhelming, and military members and their families can benefit from their knowledge and experience.

About the Illinois CPA Society

The Illinois CPA Society, founded in 1903, is the fifth largest state CPA society in the nation, with more than 24,000 members. It is the premier professional organization that represents CPAs in Illinois.

During its over 100 years of existence, the Society has advanced the highest ethical and financial standards of the profession, and has been a leader in educating the public on financial issues.

Illinois CPA Society Offers Free Tax Preparation for Military Personnel and Their Families | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Former Hammond Mayor Thomas McDermott Sr. is behind by nearly $120,000. His $1.6 million home in one of Crown Point’s most affluent neighborhoods narrowly escaped the Lake County treasurer’s tax sale in July.

McDermott says he is appealing the 2006 assessment of his house. He says his property tax bills are too high because the home was improperly assessed.

McDermott has been behind on his bill almost since he bought the home in 2002 for $1.3 million. He has paid smaller and smaller property tax amounts each year since. He has paid less than $10,000 in the last two years.

His son, Thomas McDermott Jr., is now mayor of Hammond.

– Associated Press

Read the original article from Tribune News Services.

Ex-Hammond mayor owes nearly $120K on taxes | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

“The economic recession that has plagued our nation for well over a year continues to affect most of Chicago working families,” the Mayor said in a City Hall news conference.

“I understand that times are still tough for people and I don’t feel right asking them to pay for more city government right now,” he said

The Mayor said that people are still losing their jobs as businesses continue to cut spending and adjust to a new economic reality.

He said businesses aren’t able to create enough new jobs, families are still losing their homes to foreclosure and credit remains tight.

Daley said that every level of government across the nation is facing the same challenge of still-falling revenues.

He gave these examples for Chicago:

• Income tax revenues are expected to fall by an additional $55 million below 2009 levels.
• The real estate transaction tax is projected to drop an additional $2 million from the record-low 2009 levels.
• And sales taxes are also projected to drop an additional $25 million below 2009 levels.

The Mayor pointed out that Chicago acted early in the recession to cut spending and get ahead of slowing revenues.

Some other cities didn’t act as quickly or boldly and have been forced to eliminate key services, such as police, fire and 311 services.

“In Chicago, we haven’t eliminated any service — instead we’ve tried to do more with less and provide services more efficiently,” Daley said.

The Mayor said that:

• Last year, the City cut more than $168 million in spending.
• This year, the City has already cut spending by $59 million and plans to cut it even further through improved management and efficiencies.
• This year, the City reached meaningful agreements with many of its unions — agreements that helped avoid layoffs and continue to provide basic services.
• Chicago will reduce city services for three days this year and Daley and his top managers are taking a total of 15 unpaid days this year.
• Other cities have been forced to raise taxes and fees, including property taxes, the sales tax and gas tax to balance their budgets. I won’t support that in Chicago,” Daley said.

He said final details of the proposed 2010 budget are still being worked on and he assured taxpayers the budget will protect them.

“The budget we’ll offer next week will operate government more efficiently and openly, even as we invest in our city’s key needs,” he said.

MEDIA CONTACT:

Mayor’s Press Office, 312-744-3334

Mayor Daley Announces No Property Tax Increases in 2010 City Budget | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Illinois House Republicans are proposing legislation that would allow delinquent taxpayers to pay what they owe in income and sales taxes to the state during a month and a half period in early 2010 with NO interest or penalty.

The revenue would be used to pay for college scholarships in the spring semester that were eliminated from the FY2010 state budget.

The Commission on Government Forecasting and Accountability estimates this amnesty program for individuals and corporations that didn’t pay their taxes on time between June 20, 2002 and January 15, 2010 could bring in approximately $104.9 million in revenue owed that would be deposited into the Illinois Student Assistance Commission Monetary Award Program fund according to the legislation.

In the proposal, the window to pay taxes without delinquency payments would open from January 1, 2010 until February 15, 2010.

Rep. Bob Pritchard (R-Hinckley) is sponsoring the bill in the Illinois House and hopes to get it called for a vote during the upcoming veto session to ensure the program is established and students receive assistance through the MAP grant funding this spring.

“Due to state budget reductions, the MAP grants were only funded for the fall semester,” said Pritchard. “An additional $200 million is needed to fund scholarships in the spring semester. This bill will partially fill the gap.”

“Amnesty programs give tax offenders incentive to pay what they owe during a relatively short period of time by waiving interest and penalties,” Pritchard added. “The state will collect more than one-hundred million dollars in cash quickly.”

According to the Illinois Student Assistance Commission, almost 140,000 students receive assistance through the MAP program. Grants are awarded based upon financial need and can total up to $4,968 per year.

“We pledged to work with the governor and other legislators in the General Assembly to come up with potential revenue sources to pump money into the MAP grants fund that tens of thousands of students in our state are counting on for the spring semester,” House Minority Leader Tom Cross said. “We want to be able to fund the MAP grants in the spring, and we will continue to work with the other leaders in the state to come up with solutions. With this legislation—we’re halfway there.”

The last tax amnesty program, established through legislation in 2003, collected $279.7 million in delinquent taxes for the State of Illinois.

New Legislation Proposed by Illinois House Republicans Would Fund College MAP Grants Without Raising Taxes | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.