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Time to Come Clean with Cook County (and Chicago too?)

On Thursday, September 29, Cook County Board President Toni Preckwinkle announced a Cook County tax amnesty program. To qualify, taxpayers must pay all outstanding tax liabilities by October 31, 2011. In exchange, all penalties and interest will be abated and tax will only have to be remitted for the past four years. Taxpayers who do not participate could be liable for tax, penalties, and interest for up to seven years.

Taxes administered by Cook County include the following:

• Use Tax
• Amusement Tax
• Parking Lot and Garage Operation Taxes
• Cigarette Tax
• Gasoline Tax
• Liquor Tax
• Motor Vehicle Taxes

While reviewing exposure for transactional taxes, this is a good opportunity for taxpayers to ensure they are complying with taxes imposed by the City of Chicago. These taxes include:

• Use Tax on Non-Titled Personal Property
• Employers' Expense (Head) Tax
• Personal Property Lease Transaction Tax
• Restaurant and Other Eating Places Tax
• Fountain Drink Tax
• Use Tax on Titled Personal Property
• Amusement Tax
• Cigarette Tax
• Boat Mooring Tax

While Chicago does not have an amnesty running currently, it does have a voluntary disclosure program. Under the voluntary disclosure program, taxpayers must remit tax and interest for four years. In exchange, all penalties are abated. If audited, taxpayers would need to remit tax, penalties, and interest for six years.

In the past year, we have seen an increase in taxpayers audited by both Cook County and the City of Chicago. Amnesty and voluntary disclosure offers taxpayers an opportunity to “come clean” with jurisdictions and minimize liabilities.

To find out more about any of the above taxes, Cook County’s amnesty program, or Chicago’s voluntary disclosure program, contact Jason Parish at jparish@BlackmanKallick.com or 312-980-2959, Kristen Dahl at kdahl@BlackmanKallick.com or 312-980-3321, or your Blackman Kallick representative.Our thanks to Deb Rood for her contribution to this article.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.