Mary Kay McCalla Martire
Subscribe to Mary Kay McCalla Martire's PostsMary Kay McCalla Martire focuses her practice on state and local tax disputes. She helps clients with audits, tax-related litigation, letter rulings and settlement conferences. Mary Kay has experience resolving disputes involving income, sales and use, utility and telecommunications taxes, as well as premium and retaliatory tax. Read Mary Kay McCalla Martire's full bio.
Illinois Department of Revenue Reaffirms Cloud-Based Services Not Taxable
By Mary Kay McCalla Martire and Nick Furtwengler on May 16, 2017
Posted In Illinois, Sales Tax
In two recent General Information Letters (GILs), the Illinois Department of Revenue (Department) reaffirmed that computer software provided through a cloud-based delivery system is not subject to tax in Illinois. The Department announced that while it continues to review cloud-based arrangements and may determine they are taxable at some point, any decision to tax cloud-based...
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Tax Highlights of Proposed Illinois “Grand Bargain”
By Mary Kay McCalla Martire on Mar 14, 2017
Posted In False Claims Act, Illinois, Income Tax, Local Tax, Sales Tax
In an effort to resolve Illinois’ 20-month budget impasse, the Illinois Senate leadership (Senate Majority Leader John Cullerton and Senate Minority Leader Christine Rodogno) have jointly proposed a series of bills to increase revenue, reduce spending, and respond to the Illinois Governor’s concerns regarding pension reforms, workers compensation reform and property tax relief. A series...
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Another Effort at False Claims Act Reform: Bills Introduced to Amend Illinois Act to Restrict Tax-Related Claims
By Mary Kay McCalla Martire on Feb 16, 2017
Posted In False Claims Act, Illinois
Illinois Legislators have recently introduced three bills that would amend the Illinois False Claims Act (“Act”) to restrict the ability to bring tax-related claims. Senate Bill 9, the proposed “grand bargain” to resolve Illinois’ budget stalemate, includes language that would eliminate the ability to use the Act to bring tax claims. In addition, Representative Frank...
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Illinois Appellate Court Delivers Another Blow to Relator in False Claims Act Litigation
By Catherine A. Battin and Mary Kay McCalla Martire on Oct 19, 2016
Posted In False Claims Act, Illinois, Sales Tax
On Monday, October 17, the Illinois Appellate Court issued another taxpayer-friendly opinion in an Illinois False Claims Act case alleging a failure to collect and remit sales tax on internet and catalog sales to customers in Illinois (People ex. rel. Beeler, Schad & Diamond, P.C. v. Relax the Back Corp., 2016 IL App. (1st) 151580))....
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Another Taxpayer Victory in Illinois False Claims Act Litigation, Affirming a Taxpayer’s Right to Rely On Qualified Third Parties For Tax Return Preparation
By Mary Kay McCalla Martire on Sep 13, 2016
Posted In Illinois
On August 30, 2016, following a one day bench trial, Cook County Circuit Judge Thomas Mulroy ruled in favor of Treasury Wine Estates (“TWE”) in Illinois False Claims Act (“Act”) litigation filed by the law firm of Stephen B. Diamond, PC (“Relator”). Relator alleged that TWE had violated the FCA by knowingly failing to collect...
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Cook County Circuit Court Dismisses 201 False Claims Act Lawsuits
By Mary Kay McCalla Martire on May 24, 2016
Posted In Constitutional Issues, False Claims Act, Illinois, Nexus, Sales Tax
At a hearing yesterday, Cook County Circuit Judge James Snyder granted the State of Illinois’ (State) Motion to Dismiss 201 Illinois False Claims Act (FCA) cases filed by the law firm of Stephen B. Diamond, PC (Relator) against out-of-state liquor retailers. The lawsuits alleged that the defendants were obligated to collect and remit sales tax...
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Illinois Department of Revenue Further Revises its Proposed Amendments to Shipping and Handling Regulations
By Mary Kay McCalla Martire on Feb 19, 2016
Posted In False Claims Act, Illinois, Local Tax, Sales Tax
The Illinois Department of Revenue (Department) has further revised its recently proposed amendments to the regulations governing the taxability of shipping and handling charges. See our prior coverage here. The revisions to the Proposed Amendments to 86 Ill. Admin. Code §§ 130.415 and 130.410 (Revised Proposed Amendments) were made in response to particular comments and concerns raised...
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City of Chicago Debt Relief Program – A Tax Amnesty Opportunity
By Mary Kay McCalla Martire and Nick Furtwengler on Dec 8, 2015
Posted In Illinois, Interest and Penalties, Local Tax
Chicago’s Department of Finance currently is offering an amnesty program called the Debt Relief Program (Program). The Program gives individuals and businesses the opportunity to resolve outstanding debt and avoid certain interest and penalties. The Program is outlined in Article IV of the Management Ordinance enacted with the City of Chicago’s (City’s) Fiscal Year 2016...
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Illinois Proposed Regulations Governing Apportionment of Income for Transportation Companies Moving Forward
By Mary Kay McCalla Martire on Nov 19, 2015
Posted In Allocation/Apportionment, Illinois, Income Tax
On November 17, the Illinois Joint Committee on Administration Rules approved a proposed regulation promulgated by the Illinois Department of Revenue (Department) implementing statutory changes to the apportionment formula for business income derived from providing transportation services. The changes are effective for tax years ending on or after December 31, 2008. See Prop. 86 Ill....
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Economic Presence Standard for Income Tax Nexus
By Mary Kay McCalla Martire on Oct 6, 2015
Posted In Illinois, Income Tax, Nexus
In a question of first impression for Illinois, on May 12, 2015, Judge Schmidt of the Circuit Court of Sangamon County granted a summary judgment for the Illinois Department of Revenue, holding that the proper test for corporate income tax nexus is whether a “significant economic presence” exists in Illinois. Capital One Financial Corporation v....
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