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Congressional Inaction Creates Estate Planning Mess

By failing to act before December 31, 2009, the US Congress may have created a 2010 mess out of the vast majority of the Wills and Living Trusts that are currently in existence.What happened?Congress did not act. As a result...

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NAIC Adopts Temporary Changes to SSAP 10

At the winter meeting in San Francisco, California on December 5–9, 2009, the National Association of Insurance Commissioners (NAIC) adopted changes to Statutory Statement of Accounting Principles (SSAP) 10 – Income Taxes and issued SSAP 10R.The adoption is meant to...

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Surviving the Upturn... Be "The Other"

In February 2008, Barry Cain and David Spitulnik provided a road map for surviving the impending recession in Getting Through 2008 and Beyond. Similarly, this article provides forward-looking strategies for seizing opportunity during the budding recovery.According to many economic pundits,...

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Foreign Investment Reporting Extended for Certain Taxpayers

On August 7, 2009, the Internal Revenue Service issued Notice 2009-62 (the Notice), which provides additional relief for persons (individuals, entities, tax-exempt organizations, IRAs and other taxpayers) regarding the filing of the Report of Foreign Bank and Financial Accounts (FBAR).The...

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Recovery Act Recipients: Understand Your Record-Keeping and Reporting Obligations

The American Recovery and Reinvestment Act of 2009 (ARRA) is capturing news headlines around the country. Approximately $300 billion of additional federal funds are being passed down from federal agencies to entities that are generally subject to single audits. ARRA...

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Illinois Ends Deduction for Reasonable Compensation Paid to Partners

On July 16, 2009, Illinois Governor Pat Quinn signed SB 1912 into law, which ends the deduction for the greater of personal service income or a reasonable allowance for the compensation of partners on Illinois partnership returns for tax years ending...

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Time-Sensitive FBAR Requirements

Recently, there has been a lot of discussion regarding foreign bank financial account reporting requirements (FBAR) and in what situations taxpayers are required to file Form TDF 90-22.1 (the FBAR form). The FBAR form is required to be filed with...

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Illinois Secretary of State Warns of Franchise Tax Business Scam

There is a new scam that attempts to get Illinois and Indiana businesses to file what looks like a franchise tax return and corporate minutes with a fee of $150. The Illinois Secretary of State Jesse White has posted a...

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Change in COBRA Rules for Employees Who Left After September 1, 2008

The American Recovery and Reinvestment Act of 2009 (the Stimulus Act) provides that the federal government will subsidize 65% of COBRA health insurance payments for eligible individuals. What the headlines did not mention was how that subsidy will be funded....

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Important SAS 70 Internal Control Reporting Changes and Their Impact on Service Organizations

Timothy R. Bowling, CPA, Senior Audit Managertbowling@BlackmanKallick.com, 312-980-2927Significant changes to SAS 70 internal control reporting are in the works, and they'll impact not only the way the reports are used, but also how your auditor performs their tests and how...

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Emergency Economic Stabilization Act of 2008 Offers Many Tax Benefits

On Oct. 3, President Bush signed H.R. 1424, the Emergency Economic Stabilization Act of 2008 (the Act) into law. This 451-page bill establishes a $700 billion Treasury fund to purchase troubled assets from financial institutions.The Act also includes 41 pages...

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Stuck in 2008 or Moving Purposefully Into 2009?

Barry S. Cain, JD, CMC, Managing Director, Strategic Services bcain@BlackmanKallick.com, 312-980-2976David B. Spitulnik, Director, Strategic Services dspitulnik@BlackmanKallick.com, 312-980-3339The Recession Isn’t Waiting for You … What Are You Waiting For?In February, we authored an alert titled, "Getting Through 2008 … and...

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Eclipse Builds Business in Asia Through Strong Relationships

Client Success Story Eclipse Inc., a 100-year-old worldwide maker of burners for industrial processes, has essentially followed its customers into Asia. "Our customers have taken us to all parts of the Far East—China, Japan, Korea, Taiwan, Thailand and Vietnam," explains...

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China Raises Income Tax to 25%

Effective Jan. 1, 2008, China has increased its income tax rate to 25%, and incentives routinely granted to foreign businesses are gone. This effectively changes China from a low-tax to a relatively high-tax jurisdiction.How will this tax law change affect...

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California Appellate Court Holds LLC Fee Unconstitutional

In a judgment filed on August 11, 2008 by the California Court of Appeal (the Court) in Ventas Finance, LLC (Ventas) v. California Franchise Tax Board (FTB), the Limited Liability Company (LLC) gross receipts fees were held unconstitutional. The Court...

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New Housing Act Contains Several Changes Affecting Both Individuals and Businesses

The Housing and Economic Recovery Act of 2008 (the Housing Act) is designed primarily to help troubled borrowers and their lenders, including Fannie Mae and Freddie Mac. However, it also contains changes, incentives and tax breaks for certain homebuyers, homeowners,...

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Getting Through 2008 ... and Beyond

Barry S. Cain, JD, CMC, Managing Director, Strategic Servicesbcain@BlackmanKallick.com, 312-980-2976David B. Spitulnik, Director, Strategic Servicesdspitulnik@BlackmanKallick.com, 312-980-3339Let's face it—2008, and possibly 2009, are going to be challenging at the very least, perhaps even worse if the economic climate continues to turn...

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The Economic Stimulus Act of 2008

Tax law enacted to spur U.S. economyThe Economic Stimulus Act of 2008 (the Stimulus Act) is designed to boost the U.S. economy by providing tax rebates to individuals and tax incentives for businesses.Recovery rebatesTo encourage spending that stimulates economic recovery,...

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50% Bonus Depreciation on New Equipment Purchased in 2008

Similar to the old bonus depreciation rules, the new law allows a bonus first-year depreciation of 50% of the adjusted basis of qualifying property placed in service after December 31, 2007, and before January 1, 2009.To be considered qualifying, the...

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Section 179 Expensing Limits for Businesses Drastically Increased for 2008

For years beginning in 2008, the maximum Section 179 expense deduction is raised to $250,000. The $250,000 limitation is reduced by the amount by which the cost of Section 179 property placed in service during the tax year beginning in 2008 exceeds...

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Many Working Americans Will Get Tax Rebates

Under the new law, at least 117 million low- and middle-income households will receive one-time tax rebates, along with 20 million senior citizens living on Social Security and 250,000 disabled veterans. How do the tax rebates work?Single tax filers must have...

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Supply Chain Relationships Lead Oxford International Overseas

Blackman Kallick Client Success StoryBlackman Kallick client Oxford International, Ltd., a supplier to the automotive industry, found itself pushed into expanding overseas in the 1980s as its customers became more serious about international business."We had to go along for the...

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East Balt "Goes Local" in Locations Around the World

Blackman Kallick Client Success StoryBlackman Kallick client East Balt is a long-term supplier to McDonald's. "We actually served [McDonald's founder] Ray Kroc the first hamburger buns in his store here in Des Plaines in 1955," says John Borowski, the company's...

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Resources for Midsize Companies Doing Business Abroad

International accounting firms Blackman Kallick is a member of HLB International, a network of professional accounting firms providing audit, tax and business advisory services throughout the world.HLB's Web site offers "Doing Business in ..." booklets for most countries in which...

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What Should Midsize U.S. Manufacturers Know About Doing Business in China?

Is your company considering conducting business offshore? Consider the experience of one Blackman Kallick client, a mid-size manufacturer that has been sourcing product in China for more than 20 years. "Our company started doing business overseas primarily because of competition,"...

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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.