We look forward to discussing with you in more detail any of the following that affect your particular situation.

FINISHED BUSINESS

1. IRS WARNING: SPAM: Throughout 2009 and continuing as late as January 4, 2010, the IRS has been issuing consumer warnings advising taxpayers about the fraudulent use of the IRS name in Phishing and Spam scams.  The basic rule is:

2. Retroactive Changes:  Haiti:

On the evening of January 22, 2010 the President signed the Haiti Assistance Income Tax Incentive Act that permits taxpayers to make contributions between January 12, 2010 and February 28, 2010 for Haitian relief and deduct those contributions on their 2009 tax return.  Moreover, the only documentation needed to vouch the deduction is a telephone bill if it shows the name of the donee organization, the date of the contribution, and the amount of the contribution.

3. 2010 Opportunity to Convert to Roth IRA.

2010 is the first year in which taxpayers may convert funds in traditional IRAs (as well as qualified retirement plan funds) to Roth IRAs regardless of their income level. A Roth IRA is a nondeductible IRA that allows income to accrue tax free.  Unlike traditional IRAs, Roth IRAs are not subject to taxation on distribution if certain age and timing requirements are met.  Conversions to a Roth IRA are subject to tax in the year of conversion.  In spite of the upfront tax liability, conversion may be desirable because distributions from Roth IRAs will be tax-free if the age and timing conditions are met.  Moreover, a Roth IRA owner does not have to commence lifetime required minimum distributions (RMDs) from Roth IRAs after he or she reaches age 70 1/2. Accordingly, if you do not need to withdraw funds from your IRA for living expenses, a Roth IRA allows you to accumulate tax free income for your beneficiaries.  Roth IRAs are popular now because account values are low and a special rule allows you to elect to defer the tax due on your conversion to 2011 and 2012.  By converting, you would be paying tax now for the future privilege of tax-free withdrawals, and freedom from the RMD rules. The conversion is not for everyone and if your account value drops you could end up paying tax on income you never receive.  However, it does have a reconversion option to mitigate your risk of declining account values for the next year.  Conversions are subject to several technical rules and strict time limits.  We can discuss with you whether a conversion is appropriate for your situation.

Read more of the New Tax Laws passed in 2009.

Alert: The following provisions are actual law as of December 31, 2008.  In January 2009, Congress is considering and expected to pass amendments which could further modify the following.

We look forward to discussing with you in more detail any of the following that affect your particular situation. 

1.       Alternative Minimum Tax:  To prevent millions of taxpayers falling prey to the AMT, Congress passed a one year stop gap extension of the AMT exemption.  For tax years 2008, and 2008 only, the AMT exemption amounts are increased from their 2007 level as follows:

·     From $66,250 to $69,950 in the case of married individuals filing a joint return and surviving spouses;

·     From $44,350 to $46,200 in the case of unmarried individuals other than surviving spouses; and

·     From $33,125 to $34,975 in the case of married individuals filing a separate return.

·     The significance is that without this one year extension and without a similar extension for 2009, substantially more taxpayers would be subject to Alternative Minimum Tax because the exemption would be:

·     $45,000 instead of $69,950 in the case of married individuals filing a joint return and surviving spouses;

·     $33,750 instead of $46,200 in the case of unmarried individuals other than surviving spouses; and

·     $22,500 instead of $34,975 in the case of married individuals filing a separate return.

2.   Deductions – Charitable:  Extends for 2008 and 2009 the up-to-$100,000 annual exclusion from gross income for taxpayers age 70 1/2; who make otherwise taxable individual retirement account (IRA) distributions that are qualified charitable distributions.

3.   Deduction – Section 179:  For tax years beginning in 2008, the maximum regular section 179 property expense deduction is $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 $800,000. 

4.   Depreciation – Passenger Automobiles:  For passenger automobiles placed in service in 2008, first year depreciation is increased by $8,000.  The maximum first year depreciation is $10,960.  The usual rules regarding deducting auto expense continue to apply.

5.   Depreciation – Recycling:  For property placed in service after Aug. 31, 2008, 50% first year bonus depreciation is allowed for any machinery and equipment (not including buildings or real estate), which is used exclusively to collect, distribute, or recycle scrap plastic, scrap glass, scrap textiles, scrap rubber, scrap packaging, recovered fiber, scrap ferrous and nonferrous metals or electronic scrap.

Visit the National Tax Law Firm of Horowitz & Weinstein for the full list of new tax laws. 

Born Little Neck / Douglaston / Bayside, New York, April 27, 1951, admitted to bar, 1976, Illinois; 1977, U.S. Tax Court; 1982, New York.

Education:
- Syracuse University (B.S., 1972; M.S., 1973)
- John Marshall Law School (J.D., 1976. Lecturer: Estate and Gift Taxation
- College of Lake County, 1981-1982
- Tax Aspects of Residential Realty, Northwest Cook County, 1983-1984.

Member:
Chicago and Illinois State Bar Associations and Illinois State Bar Association’s

Practice Areas:

• Mr. Horowitz specializes in tax matters (including federal and state, pension, retirement and estate and gift) taxation of entertainers, foreign taxation, IRS controversy work, and planned gift programs.
• Income Tax
• Tax Controversies
• Tax Planning
• Wills, Trusts and Estates
• Elder Law
• Business Law
• Estate Planning
• International Law

He has also authored several newsletters on the subject of taxation. Mr. Horowitz has also written and produced the nationally broadcast radio show “The Legal Navigator,” a humorous program spotlighting unusual law cases, which has been heard on radio stations across the country.

Mr. Horowitz earned his Bachelor’s and Master’s Degrees in Accountancy from Syracuse University and his law degree from John Marshall Law School. He served on the Illinois State Bar Association’s Council on Federal Income Taxation and has taught estate and gift taxation at the college level.

Mr. Horowitz delivers seminars on income taxation, estate planning and business succession which have been arranged by life insurance companies, brokerage firms, national trade associations, the Chicago Board Options Exchange and the Illinois State Bar Association.

Mr. Horowitz is a member of both the Illinois and New York State Bars. Mr. Horowitz has served on the Board of Director’s of the: School of Chicago Ballet; the Columbus Hospital Foundation; and presently serves on the Rudolf Nureyev Dance Foundation where he also serves as Treasurer.

Email: phorowitz@hwchicagolaw.com

Born Berwyn, Illinois; admitted to bar, 1982, Illinois.

Education:
- University of Illinois (B.S., 1979)
- DePaul University College of Law (J.D., 1982; L.L.M., Taxation, 1990)
- Certified Public Accountant, Illinois, 1981.

Member:
Chicago and Illinois State Bar Associations.

Practice Areas:

Over twenty years experience in Complex Income Tax issues at both the individual, corporate and partnership level; Well over twenty years experience in Commercial Real Estate Transactions; Twenty years plus experience in Sophisticated Estate Planning Techniques.

Phone #:  312 787 5533

HTML clipboardEmail: kkobialka@hwchicagolaw.com

Tami Tolitano was admitted to bar, 1997, Illinois and U.S. District Court, Northern District of Illinois; U.S. District Court, US Tax Court, Western District of Wisconsin.

In almost ten years of practice Tami Tolitano interacts on a daily basis with the Internal Revenue Service and the Illinois Department of Revenue.  She is constantly battling for taxpayers on a variety of tax controversy issues from Employee audits to Sales Tax Audits to Income Tax Audits to Criminal Tax Referrals.

Ms. Tolitano’s extensive Bankruptcy background provides a broader range of options for her taxpayer clients involved in IRS and IDOR tax collection, tax enforcement, and wage garnishment and levy issues.

EDUCATION: Loyola University of Chicago (B.B.A., 1993); John Marshall Law School (J.D., cum laude, 1997). Certified Public Accountant.

PRACTICE AREAS: Corporate; Estate Planning; Tax Controversy; Federal Taxation; and Bankruptcy; International Enforcement of Judgments; Foreign Corporations Establishing a U.S. Business Presence.

PHONE: 312 787 5533

Email: ttolitano@hwchicagolaw.com

Admitted to New York Bar, 2000; and Admitted to Illinois Bar 2001.

E-Mail: sneschis@hwchicagolaw.com

Samuel Neschis is a commercial litigator with extensive experience in both federal and state courts.  Sam represents a diverse group of clients including individuals, corporations, and family owned and other closely held businesses.

Sam’s focuses his practice in the areas of shareholder litigation, contract litigation, real estate litigation, probate litigation, art law litigation, and employment litigation.  Many of Sam’s cases involve disputes between owners of closely held businesses.  Sam also advises individuals and businesses on ways to avoid litigation and represents clients in mediation and other forms of alternate dispute resolution.

Sam began his legal career as an Assistant District Attorney in the Office of the New York County District Attorney’s Office.  In that position, he first chaired numerous jury trials and accepted lead responsibility for long term narcotics investigations.

Sam is a certified mediator and is an active volunteer with the Center for Conflict Resolution.  Sam is also a member of the Chicago Bar Association and Illinois State Bar Association.

Sam is licensed in state and federal courts in both Illinois and New York.

Born Grand Rapids, Michigan spending much of her childhood in Britt, Iowa.

Ms. Paplauskas is an accomplished musician and prior to becoming a member of the Illinois Bar, she toured throughout Europe as a violist with the Blue Lake International Symphony.  Among the venues she has appeared in are the Alsace region of France, Tivoli in Copenhagen, as well as various venues in Germany, The Netherlands, Mulhouse France, San Pellegrino Italy, Bern Switzerland, Austria, Copenhagen Denmark and Luxembourg.

Ms. Paplauskas embarked on a legal career where her education included courses in Chinese Business Law in Beijing China.  When she returned to the U. S., Ms. Paplauskas was elected President of the Christian Legal Society, John Marshall Chapter.

Education:
- Trinity Christian College, (B.A., 2001)
- John Marshall Law School (J.D., 2006;
- John Marshall Law School LLM - Masters in Taxation, 2006

Member:
South Suburban Estate Planning Council, Illinois Bar Association

Bar Membership:
Illinois Bar and United States District Court, Northern District, Eastern Division.

Charitable Activities:
Cardiac Care unit of Blodgett Hospital; intake specialist at the Cabrini Green Legal Aid program; and various food bank and teddy bear drives.

Practice Areas:

Currently, Ms. Paplauskas’ practice includes estate planning, will and trust drafting, Probate of Estates, charitable planning, real estate transactions, and corporate and LLC formations and special issues.

E-Mail: lpaplauskas@hwchicagolaw.com

We are a Chicago law firm which with a history that has evolved over the past 31 years.  We represent a broad range of local and international businesses and individuals solving their complex legal problems and litigating their difficult disputes.