Welcome to the IMA Tax Policy Blog. The blog format reflects our efforts to provide IMA members with timely, relevant and thought provoking information in a form that is accessible for easy reference. IMA’s Tax Policy Blog will be updated on a regular basis. Weekly news update emails will be sent out to notify subscribers of new information posted on the blog. IMA members are welcome to submit material for the blog, or request specific information. Simply email Editor Stefany Henson at shenson@ima-net.org with your information or request. Editorial submissions are subject to review. 

Wednesday
Jan282015

McGladrey Webcast series: It’s not a matter of if, but when you’ll experience a data breach

From IMA member McGladrey …

With today’s advanced threats and rapidly evolving malware, your company faces data security risk exposures from internal and external sources every day. Not only is the complexity and number of cybersecurity incidents steadily rising, but so is your organization’s financial and reputational risk to harm. 

Attend McGladrey’s three-part webcast series 

Develop preventive controls to harden your internal and external environment and reduce the likelihood you will be breached

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Wednesday
Jan282015

Illinois Tax Rate Decrease and Net Operating Loss Changes Discussed

From IMA member Plante Moran …

The Illinois Department of Revenue (DOR) has issued an information bulletin that discusses the decrease in corporate income and personal income tax rates effective for income received on or after January 1, 2015. The bulletin also provides information on how estimated payments are affected by the income tax rate change, how fiscal-year filers, short-year filers, and 52/53 week filers will calculate their income tax rate, and changes to the Illinois net operating loss (NOL) deduction for corporations. The tax rate for corporations is decreasing from 7 percent to 5.25 percent, and the tax rate for individuals, trusts, and estates is decreasing from 5 percent to 3.75 percent. The replacement tax rates of 2.5 percent for corporations and 1.5 percent for S corporations, partnerships, and trusts remain the same.

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Wednesday
Jan142015

Relief from Penalties and Interest?

To fight theft and abuse in public assistance programs such as Medicaid and unemployment insurance, lawmakers required certain employers to submit wage reports on a monthly basis. Previously, all employers reported such information quarterly. For the same purpose, agreed rulemaking also expanded the requirement for electronic wage reporting to more employers. Among other things, wage reports help stop improper benefit payments before they are issued. Electronic and monthly wage reporting have the potential to stop improper payments sooner and save Illinois taxpayers hundreds of millions of dollars each year. The unemployment benefit savings would apply downward pressure on unemployment insurance tax rates.

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Wednesday
Jan142015

The Decline of America’s Corporate Sector

New report explains why America has lost one million corporations since 1986

The U.S. loses about 60,000 corporations per year and has lost about one million corporations since the Tax Reform Act of 1986, according to the latest report from the nonpartisan Tax Foundation. The number of traditional C corporations in the U.S. has fallen to a historically low level and in-turn eroded the corporate tax base. There is now more net business income taxed under the individual income tax system than the traditional corporate tax code, a trend that does not appear to be stopping any time soon.

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Wednesday
Jan072015

Business Tax Policy Issues — Your input is critical, take the survey today

The Civic Committee of the Commercial Club of Chicago is sponsoring a study of major business tax policy issues, designed to assist Illinois policy makers and elected officials as they review the Illinois tax code. The study will examine sales, income, franchise, property and unemployment insurance taxes. In addition, we want to examine tax administration in Illinois. The focus is to identify where the Illinois tax code and administrative practices differ significantly from those in other states and detail the effects of those differences.

The mechanism selected for such input is a questionnaire, the link to which is: https://www.surveymonkey.com/s/85HYBL5

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