Lavelle Law News and Events

COBRA Coverage Explained: What Employees and Employers Need to Know

Mon, 27 Apr 2026 21:15:17 GMT

Losing a job or experiencing a change in employment status can be stressful, particularly when it impacts health insurance coverage. The Consolidated Omnibus Budget Reconciliation Act (“COBRA”) provides a critical safety net by allowing employees and their families to continue employer-sponsored health coverage under certain circumstances.

What Plans Are Covered by COBRA?

COBRA applies to group health plans sponsored by:

Private-sector employers; and
State and local government employers

To qualify, the employer must have at least 20 employees on more than 50% of its typical business days during the prior calendar year. If this threshold is met and the employer offers a group health plan, COBRA likely applies.

Step 1: What is a “Qualifying Event”?

COBRA coverage is triggered by a qualifying event, a specific change in circumstances that would otherwise cause a loss of health coverage.

For Employees

A qualifying event includes:

Termination of employment (for any reason other than “gross misconduct”), or
Reduction in hours

These events generally entitle the employee to up to 18 months of continued coverage.

For Spouses & Dependent Children

Additional qualifying events include:

Termination or reduction in hours of the employee
The employee becoming entitled to Medicare
Divorce or legal separation
Death of the employee

For Dependent Children

Loss of dependent status under the plan (e.g., aging out at age 26 under the Affordable Care Act)

Step 2: Notice of the Qualifying Event

COBRA is a notice-driven statute, meaning rights are triggered only after proper notice is provided.

The employer must notify the plan within 30 days if the qualifying event is:
Termination or reduction in hours
Death of the employee
Medicare eligibility
Employer bankruptcy
The employee or qualified beneficiary must notify the plan if the event is:
Divorce or legal separation
Loss of dependent child status

Importantly, the plan has no obligation to act until it receives proper notice.

Step 3: COBRA Election Notice

Once the plan receives notice of a qualifying event, it must send a COBRA Election Notice within 14 days.

This notice must clearly explain:

The right to continue coverage
How to elect COBRA
Deadlines and costs
Contact information for the plan administrator

If coverage is denied, the plan must issue a written notice of unavailability within 14 days, explaining the reason for denial.

Step 4: Electing COBRA Coverage

After receiving the election notice, the individual has at least 60 days to decide whether to elect COBRA coverage.

The 60-day period runs from the later of:

The date the election notice is provided; or
The date coverage would otherwise be lost

If elected, coverage is typically retroactive to the date of loss, ensuring no gap in insurance.

Documentation Matters

COBRA rights and procedures must be outlined in the plan’s Summary Plan Description (SPD), a written document employers are required to provide to participants. Both employers and employees should be familiar with this document, as it governs how COBRA operates in practice.

If you have questions regarding COBRA rights and procedures, contact James Berg at jberg@lavellelaw.com or 312-888-4115 to schedule a consultation.

Success Story - Strategic Defense in Probate Property Dispute

Mon, 27 Apr 2026 18:15:37 GMT

Background:
In a contentious probate matter involving a disputed deed to residential property, our client, the administrator of the estate, seeks to recover assets after the deed was recorded by the decedent’s neighbor. The case centers on reclaiming the property through filing a citation to recover assets. Lavelle Law represents the estate administrator, navigating complex proceedings that have included summary judgment motions, amended pleadings, and extensive discovery disputes as the matter advances towards trial.

Challenges:
The opposing party attempted to introduce new witnesses shortly before the scheduled trial date, prompting additional discovery demands. Despite court orders compelling the production of witness contact information and requiring in-person depositions within a strict 60-day window, compliance issues arose, including incomplete contact details and a key witness refusing to appear for deposition in Illinois. The opposing side filed motions to quash subpoenas, seek protective orders for out-of-state deposition alternatives, and repeatedly challenge prior rulings, creating procedural hurdles and delays in preparing for trial.

The trial court granted our motion, barring the non-compliant witnesses from testifying at trial due to failure to sit for deposition as ordered. This effectively precluded key testimony from the opposing side. The court also denied related protective and quash motions as moot and affirmed prior dispositive orders.

The opposing party then filed an interlocutory appeal under Supreme Court Rule 307(a)(1), asserting that the Trial court’s denial of her motion for a protective order for her witness was injunctive in nature, permitting Appellate jurisdiction under Rule 307(a)(1). This appeal completely stalled the trial proceedings until the appellate court could consider the issues of the case.

Results:
On March 20, 2026, the appellate court entered its ruling dismissing the appeal for lack of jurisdiction. In its ruling, the appellate court noted that “The key to a Rule 307(a)(1) appeal is whether the order relates to an 'injunction' versus some other type of interlocutory order.” Zitella v. Mike’s Transportation, LLC , 2018 IL App (2d) 160702, ¶ 13. “Illinois courts have construed the meaning of ‘injunction’ in Rule 307(a)(1) broadly.” Skolnick v. Altheimer & Gray , 191 Ill. 2d 214, 221 (2000); see In re A Minor , 127 Ill. 2d 247, 262 (1989). Still, “not every nonfinal order of a court is appealable, even if it compels a party to do or not do a particular thing.” Short Brothers Construction, Inc. v. Korte & Luitjohan Contractors, Inc. , 356 Ill. App. 3d 958, 960 (2005).

Ultimately, the Appellate Court held that the order barring the witness from testifying was essentially a discovery order “relating to the control of the court’s own docket” and is proper as part of the “inherent power possessed by any court to compel the appearance of witnesses, to regulate their testimony, and to control the court’s own docket.” Zitella , 2018 IL App (2d) 160702, ¶ 14. For this reason, the Appellate Court lacked jurisdiction, and the appeal was dismissed.

This outcome strengthened the estate’s position, advancing the case toward resolution while protecting our client’s interests in our attempts to recover the disputed property.

Spring Cleaning: Dusting Off Your Estate Plan

Tue, 14 Apr 2026 20:15:11 GMT

Spring has sprung! This year, the spring cleaning you need to worry about most might not be finally scrubbing down those gross shower tiles: you may need to worry about keeping your estate plan fresh.

This is because, contrary to what many assume, creating an estate plan is *not* a “one-and-done” legal activity. Major life events, shifts in financial status, and changes in the applicable law can all affect your estate plan, and those changes may require you to make some edits to your documents. So, this spring, dust off your estate plan and consider the following:

1. Have you actually “funded” your trust yet?

Sure, you sat down with that nice attorney, they drafted up estate documents according to your meticulous instructions, and you signed on the dotted line. But if your estate plan involved the creation of a trust, your work didn’t end when you walked out of your attorney’s office with that stack of paper. In order for a trust to be effective in avoiding probate and distributing your assets as intended, you have to ensure that you funded your trust. The method of funding a trust is different depending on what assets you own, but generally, most, if not all of your assets should be tied to your trust in some way. If you are unsure if you took this step, or if you have any new assets you’ve purchased or inherited, then you should talk to your attorney about how to properly fund your trust with those assets.

2. Have you named beneficiaries on all of your accounts?

If you own an asset in your individual name, with no beneficiaries named, then on your death your family may need to go to probate court on your behalf. In order to avoid this result, your attorney can provide you with detailed recommendations on what beneficiaries should be named on your accounts. This step can help to save your family time and money after you have passed.

3. Have you had a child?

This seems like an obvious one, but you’d be surprised how often it bears repeating: if you’ve just had a child, either you are in need of an estate plan, or your old estate plan is out-of-date. Making sure your affairs are in order is a responsible step after you’ve had your first child. Your estate plan will allow you to: (a) appoint successor guardian(s) to be able to take care of your children if something happens to you, (b) ensure that your assets pass as intended (i.e., allows you to avoid being stuck with what the state of Illinois believes is best), and (c) potentially protect a child from inheriting a large sum of money that they are unable to manage responsibly. Even if you already have a will and trust, you should make sure to update your documents following the birth of a new child.

4. Have you bought any real estate?

If you have bought any real estate since you last signed your estate planning documents, then you may need to revise your estate plan to ensure that this new piece of real estate is not tied up in probate court following your death. If you own real estate then your real estate will often be retitled into the name of your trust(s), but some states allow you to name an individual (or individuals) to receive the property upon your death (without utilizing a trust). Either way, if you have purchased real estate then you should meet with your attorney to confirm that your property is covered.

5. Has anyone in your family passed away?

Estate plans often have secondary beneficiaries and/or back-up plans built in, but if someone previously named in your estate plan has passed away then you should meet with your attorney to confirm that your plan still reflects your wishes.

6. Has your net worth increased significantly?

This is a big one: if your net worth has increased significantly since you completed your estate plan, then your estate plan almost certainly needs revisiting. Illinois has its own state specific estate tax, meaning that if you are approaching or over a net worth of $4 million, then you need to consider how this estate tax may affect you. Similarly, the federal estate tax exemption currently stands at $15 million per spouse, but may be sun-setting in the next couple of years to be significantly lower. Proactive planning can help you mitigate unnecessary estate taxes.

7. Have you gotten married or divorced?

If you’ve tied the knot or left a marriage since signing your original estate plan, major revisions to your estate plan will be in order. A majority of married couples leave most assets—if not all of them—to the surviving spouse, so, if you’ve gotten divorced since signing your estate plan, then you will likely want to revisit the distribution of your estate. Likewise, if you have gotten married then you will likely want to revamp your estate plan to provide for your new spouse. Similarly, if you are now entering into your second (or third, etc. ) marriage then you will want to be clear about who should receive your assets – if you or your spouse have children from a previous marriage then you may or may not want to provide for your step-children, and careful drafting is required to ensure the proper result.

8. How long has it been since you last signed your estate plan, and have you updated your estate plan since the new Trust Code was passed?

As of January 1, 2020, the Illinois Trust Code became the law of the land in Illinois. Depending on how long it’s been since your trust has been signed, it may be a good idea to revise your trust to ensure that your document complies with the new Trust Code.

Ultimately, you should set a reminder to review your estate plan regularly so that your estate plan stays up to date with you and your family’s needs. The questions above are only a few of the reasons why you should review, and potentially update, your estate plan, but if it has been several years since you completed your estate plan then you should make an appointment with your attorney to review your documents.

While estate planning can be intimidating, the Lavelle Law team makes it a priority to make the process approachable and effortless. We do the hard work for you so that you can feel confident. If you would like to schedule a free consultation to hear more about how an estate plan can benefit you and your family or to discuss possible revisions to your estate plan, please call attorney Heather A. McCollum at (847) 705-7555 or email her at hmccollum@lavellelaw.com .

Tim’s Tax News on the Tenth – April 2026

Fri, 10 Apr 2026 15:47:39 GMT

IRS Announces Filing Season is Progressing Smoothly

The Internal Revenue Service recently announced that it is seeing the 2026 filing season have a rise in tax refunds. With the April 15 ^th deadline approaching, the IRS stated that there is a smooth pace at which taxpayers are getting their refunds, with the high use of electronic filing.

Highlights from the 2026 filing season, through March 20, 2026:

Over 80 percent of refunds were issued in less than 21 days with an average refund amount of $3,571.
Over 98 percent of tax refunds have been issued electronically via direct deposit, out of a total of 57 million refunds issued.
Over 98 percent of returns were filed electronically, out of a total of more than 78 million individual federal income tax returns.
The average refund is up by more than 10 percent, with total refunds now at more than $202 billion.

The IRS encourages all taxpayers who are expecting a refund to include banking information when they file. Taxpayers who did not provide valid bank information when they filed can use online tools on IRS.gov to provide the necessary information to get their refund faster.

Only about one percent of taxpayers received a CP53E notice informing them that their banking information on the return is missing or invalid. Taxpayers do not have to wait to receive the notice to act. They can check the “ Where’s My Refund? ” tool for next steps, and if this situation applies to them, they can use their “ IRS Individual Online Account ” to resolve the issue quickly by providing accurate banking information or the reason they cannot. Once updated, the IRS will issue their refund, usually within seven days. For security purposes, IRS employees cannot update bank account information over the phone or in person.

Taxpayers who receive a CP53E notice generally have 30 days from the date on the notice to act. If a taxpayer does not act within the 30-day window, the IRS will issue a paper check six weeks after the date the notice was issued.

Direct deposit remains the fastest and most secure way to receive a refund, helping reduce the risk of lost or stolen payments. Across government, paper instruments (e.g., checks and money orders) are far more likely than electronic payments to be lost, stolen, altered, or delayed.

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 32 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

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Lavelle Law Presents an "Entrepreneurial Boot Camp"

Fri, 03 Apr 2026 17:31:42 GMT

A Lavelle Law Breakfast Briefs

Lavelle Law Presents an "Entrepreneurial Boot Camp"

A Lavelle Law Breakfast Briefs

May 13, 2026

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, Il 60173

This session provides a practical overview of key legal and structural considerations for starting and growing a business. Topics include selecting the appropriate business entity (such as corporations, LLCs, partnerships, or sole proprietorships), understanding capital structure decisions (including debt vs. equity and equity incentives like sweat equity or profit interests), and navigating essential contract terms like attorney fee provisions, warranties, indemnification, and guarantees. The presentation also covers the importance of well-drafted operating and shareholder agreements in defining roles, rights, and responsibilities. The session will conclude with an open Q&A to address specific attendee questions.

Join Lavelle Law attorneys Ted McGinn and Frank Portera on May 13, and learn key legal tips for entrepreneurs. Doors will open at 7:45 for a complimentary continental breakfast, and the presentation will begin at 8:00. This is a free seminar, but registration via Eventbrite is required.

 Meet the Panel

Buying a Business

Tue, 24 Mar 2026 19:50:33 GMT

Thinking about buying a business? There’s more than one way to do it, and choosing the right path can save you time, money, and headaches. In this video, experienced business attorney Kerry Lavelle breaks down the three main avenues for buying a business, along with the pros and cons of each:

Negotiating directly with a seller you already know
Working with a business broker
Going through an investment banker

Whether you're just starting to explore opportunities or already have a deal in mind, understanding these options upfront is one of the smartest moves you can make. Watch the video to learn which approach might be best for your situation.

If you're ready to move forward and want experienced legal guidance with purchase agreements, due diligence, or negotiations, contact Attorney Kerry Lavelle today at 847-705-7555 or klavelle@lavellelaw.com .

Don’t Let a Handshake Cost Millions: Lessons from the Chance the Rapper Manager Dispute

Thu, 19 Mar 2026 17:26:48 GMT

A lawsuit involving Chance the Rapper and his former manager, Pat Corcoran, highlights a costly lesson for businesses, creatives, and entrepreneurs alike: handshake deals can lead to million-dollar disputes.

The legal battle centers on Corcoran’s claim that he is owed roughly $3 million in unpaid commissions after being terminated as the rapper’s manager in 2020. The dispute stems from an alleged sunset clause that Corcoran says entitled him to continue receiving royalties for three years after their working relationship ended.

However, according to testimony in Cook County Circuit Court at the Richard J. Daley Center, the partnership operated largely without a written contract. Instead, the relationship developed through informal agreements and mutual trust over the years as the artist’s career grew.

When Business Relationships Grow Without Contracts

Situations like this are not limited to the entertainment industry. Many partnerships begin informally. Friends start businesses together. Early collaborators agree to split revenue. Managers and creators work on trust while a project gains momentum.

At the beginning, a written contract may feel unnecessary. The parties know each other and share the same goals. As the business grows, however, money, ownership interests, and expectations become more complex. Without a written agreement, the parties may later discover that they never had the same understanding of their arrangement.

When disputes arise, courts must determine what the parties intended based on testimony and surrounding facts. That process can be uncertain and expensive.

Why Written Agreements Matter

A written contract provides clarity. It creates a record of what each party agreed to and what each party is expected to do. Clear terms can reduce misunderstandings and give both sides guidance if the relationship changes.

When agreements are not written down, basic questions may become the subject of litigation. How much compensation was promised? How long the relationship was expected to last. What happens when the parties decide to part ways?

These issues are easier to resolve when the agreement is documented at the start.

Key Terms That Should Be in Writing

A well-drafted agreement should address several core issues. Compensation terms should be defined clearly. The contract should explain how payments are calculated, when they are due, and what percentage or fee applies.

Termination provisions are also important. The agreement should explain how either party can end the relationship and what obligations continue after termination.

If the parties expect payments to continue after the relationship ends, those terms should be stated directly. Provisions such as post termination commissions or sunset clauses are common in management agreements, but they must be defined clearly to avoid disputes. The contract should also outline the roles and responsibilities of each party. When expectations are clear, it becomes easier to determine whether those obligations were met.

The Takeaway

The dispute between Chance the Rapper and his former manager illustrates how a successful partnership can lead to litigation when key terms were never written down.

Putting agreements in writing does not signal distrust. It protects both sides and provides a shared understanding of the relationship. For businesses, creators, and entrepreneurs alike, taking the time to document the deal at the beginning can prevent costly disputes later.

For further inquiries or questions regarding contract structure and best practices for drafting enforceable agreements, please contact me at aletto@lavellelaw.com or at (847)-705-7555.

Success Story – Strategic Timing Saves Client $330K in Federal Tax Debt

Wed, 18 Mar 2026 15:28:17 GMT

 Background: Our client was haunted by non-dischargeable federal tax liabilities of over $400K from a business venture. The client had experienced health issues, creating a lot of non-tax liabilities that created great stress on him and his family. He insisted upon filing for Chapter 7 bankruptcy relief to resolve the non-tax debt.

Challenges: For many years, we had helped the client hold off IRS collections, and a bankruptcy filing would undo that work and likely have the IRS view his case with new eyes. We researched the collection statute and discovered $330K would be written off in four months if no bankruptcy were filed before that write-off date. Otherwise, the collection statute would be extended at least 9 months if the bankruptcy were filed immediately. We had to explain to the client the benefit of waiting and that our office could address his non-tax creditors in the interim.

Result: The $330K was written off by the IRS before we filed the Chapter 7 for the client, and he suffered no adverse results from the four-month delay.

Play Ball with Lavelle Law! Join us April 9!

Fri, 13 Mar 2026 16:00:05 GMT

An SBA Business After Hours Event

April 9, 2026
5 PM - 7 PM
1933 N. Meacham Rd., Suite 600
Schaumburg, IL 60173

In celebration of Spring (finally) and the start of baseball season, we’re stepping up to the plate with our annual Lavelle Law Business After Hours event. We’re excited to partner with our friends in the Schaumburg business community for an evening of networking, good vibes, and a few surprises - all hosted in the friendly confines of our Schaumburg office. Bonus points: Feel free to rock your favorite baseball team’s gear and show off your fandom while you’re at it!

Here’s what’s on deck for the night:

Raffle: Mix and mingle with our team for a shot at winning a cool prize. It’s a fun way to connect and maybe walk away with a little something extra.

Drinks: We’ve got a lineup of refreshments ready—think signature cocktail (courtesy of Bella Napoli), ice-cold beer, wine, and plenty of soda and water to keep things flowing.

Food: Fuel up with a variety of hearty appetizers and finish strong with some tasty sweets. There’s something for everyone to enjoy.

Rain or shine, we’re ready to make this a win. It’s the perfect chance to catch up with familiar faces, meet new ones, and talk shop in a relaxed setting. Since this is an SBA event, be sure to secure your spot by registering through the Schaumburg Business Association. FREE to SBA members! ($40 non-members)

Mark your calendar and join us - we can’t wait to see you there!

Tim’s Tax News on the Tenth – March 2026

Tue, 10 Mar 2026 15:10:22 GMT

IRS Announces its Dirty Dozen Tax Scams for 2026

Last week, the IRS announced its annual Dirty Dozen list of tax scams for 2026 that threaten the tax and financial information of taxpayers, businesses, and tax professionals. The Dirty Dozen is part of a broader campaign conducted by the IRS to educate taxpayers about identity theft schemes and other forms of fraud, particularly during the tax filing season.

A notable change to this year’s list is the addition of abusive undistributed long-term capital gains claims as item #6, replacing prior fuel tax credit concerns, as the IRS has seen an increase in overstated or fabricated claims tied to Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains. The IRS advises all taxpayers to remain cautious year-round, as criminals will always be on the lookout for new ways to obtain money, personal identifiable information, and data.

The 2026 Dirty Dozen: 12 key scams to watch for:

1. IRS impersonation by email and text (phishing + smishing). Scammers send emails, direct messages (“DM”), and texts that appear to be from the IRS, often using alarming language and QR codes that direct taxpayers to fake IRS websites to “verify” accounts, enter personal information, or claim refunds. The IRS urges taxpayers not to click links or open attachments from unexpected messages and to report suspicious IRS-related emails, DMs, and texts. The IRS reported over 600 social media impersonators during fiscal year 2025.

As a reminder, never click any unsolicited communication claiming to be from the IRS, as it may install malware surreptitiously. These links may install malicious software, including ransomware, on a taxpayer’s personal device, potentially preventing access to their files or personal information.

2. AI-enabled IRS impersonation by phone (robocalls, voice mimicry, spoofed caller ID). Phone scams continue to evolve, including calls that use computer-generated tactics and spoofed caller ID to appear legitimate. The IRS reminds taxpayers that it generally contacts taxpayers by mail first and does not leave urgent, threatening prerecorded messages, call to demand immediate payment, or threaten arrest. Taxpayers should not rely on AI-generated responses to complex tax questions, and they should verify any calculations or information provided by artificial intelligence.

3. Fake charities. Fraudsters often exploit tragedies and disasters by creating fake charities to collect donations and personal information. The IRS is committed to preventing fraudulent nonprofits from taking advantage of the American taxpayer.

4. Misleading tax advice on social media. Viral “tax hacks” can push taxpayers to file returns with false information or claim credits they don’t qualify for, leading to refund delays, audits, penalties, or worse. The IRS continues to warn that social media-driven misinformation and disinformation remain a major driver of tax scams.

5. Identity theft involving IRS Online Account access. Criminals may attempt to use stolen personal information to gain unauthorized access to a taxpayer’s IRS online account or may pose as helpers to collect sensitive information during account setup. Taxpayers should create their account directly through IRS.gov and should not rely on unsolicited third parties offering assistance. The IRS provides official guidance to help taxpayers securely establish and protect their accounts.

6. Abusive undistributed long-term capital gains claims. The IRS identified an increase in the abuse of Form 2439. This form allows shareholders of certain investment funds or real estate trusts to claim a refundable credit for taxes paid on undistributed capital gains. Identified schemes involve overstated or fabricated Form 2439 claims, including claims tied to organizations that are not legitimate investment funds or real estate trusts. The IRS has also seen fake claims falsely linked to real, well-known organizations. Improper claims may result in refund delays, audits, penalties, or enforcement action.

7. Bogus “Self-Employment Tax Credit” promotion. Scammers use misleading claims about a broad “self-employment tax credit” to encourage inaccurate filings and generate improper refunds. The IRS reminds taxpayers to rely on trusted sources and qualified tax professionals, not social media promotions, when determining eligibility for credits. Many taxpayers do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk.

8. Ghost preparers. A “ghost” preparer prepares a return but refuses to sign it and/or refuses to include a Preparer Tax Identification Number (PTIN). When a preparer refuses to sign or provide a PTIN, that is a major red flag; the taxpayer is legally responsible for what is filed. The IRS urges taxpayers to avoid preparers who will not sign the return and to choose reputable help. Taxpayers should never sign a blank or incomplete return. Instead, the IRS reminds taxpayers to use a trusted tax professional for help.

9. Non-cash charitable contribution schemes. Some schemes involve inflated appraisals of donated property using syndicated conservation easements or art. Promoters often promise to eliminate or substantially reduce tax liability. The IRS warns taxpayers not to file returns with made-up information and reminds taxpayers that it can hold refunds while verifying claims.

10. Overstated withholding schemes (fabricated wage/withholding data). Scammers encourage taxpayers to inflate withholding amounts (sometimes described as “other withholding”) to manufacture a larger refund by reporting zero or little income on incorrect forms. The IRS may delay processing while it verifies wages and withholding against third-party records. Inaccurate claims can lead to penalties and enforcement action.

There are multiple variations of the overstated withholding credit scheme, including those involving Forms W-2 and W-2G; Forms 1099-R, 1099-NEC, 1099-DIV, 1099-OID, and 1099-B, as well as the Alaska Permanent Fund Dividend, Schedule K-1 with Withholding Reported, and Unspecified Source of Withholding Credit Claimed.

11. Spear-phishing and malware campaigns targeting tax professionals. Tax professionals and businesses remain targets of “new client” or “document request” emails that deliver malicious links or attachments to steal client data or access systems. The IRS and the Security Summit urge preparers to remain vigilant and to strengthen their security practices.

Businesses and individuals, including tax pros, should always be cautious and look out for any suspicious requests or unusual behavior before sharing any sensitive information or responding to an email. Warning signs may include unexpected requests for sensitive information, mismatched or unfamiliar sender addresses, urgent payment demands, or links directing users to websites that do not clearly originate from IRS.gov. Be aware that by gaining access to a hacked email account, scammers can locate a genuine email from a previous victim's email account sent to their tax professional.

12. Aggressive or misleading Offer in Compromise marketing (“OIC mills”). The Offer in Compromise program can help certain eligible taxpayers resolve tax debt when they are unable to pay in full, but “OIC mills” often overpromise results and charge high fees to taxpayers who don’t qualify. Instead, the IRS reminds taxpayers to use a trusted tax professional for help.

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New Illinois Employment Laws for 2026 – a Recording

Thu, 19 Feb 2026 22:17:21 GMT

A Breakfast Briefs Recording

Lavelle Law hosted a seminar focused on the new employment-related laws that take effect in Illinois in 2026. While over 280 new laws were enacted statewide, this session zeroes in on the critical updates that directly impact employers, workplace policies, hiring, and HR practices. The presentation covered several significant updates that took effect January 1, 2026 (with additional changes rolling out later in the year), including:

Expanded protections and restrictions under the Illinois Workplace Transparency Act for employment, severance, and settlement agreements
Prohibitions on discriminatory uses of artificial intelligence in employment decisions
Paid break time for nursing mothers under the amended Nursing Mothers in the Workplace Act
Expanded coverage under the Illinois State Employees Group Insurance Act
Upcoming unpaid leave under the Family Neonatal Intensive Care Leave Act (effective June 1, 2026)

These changes impact workplace policies, compliance obligations, hiring practices, and more for Illinois employers. For personalized assistance or to discuss compliance strategies, contact Attorneys Lance Ziebell or Sarah Reusché . They can be reached at 847-705-7555.

IRS Issues New Guidance to Benefit Businesses’ Capital Improvements

Mon, 16 Feb 2026 22:54:21 GMT

The IRS recently released new guidance confirming how businesses can take advantage of the return of 100 percent bonus depreciation beginning in 2026. IRS Notice 2026‑11, issued in January, explains how the bonus depreciation rules apply following the passage of the One Big Beautiful Bill Act, which permanently restored full first‑year expensing for qualifying business property.

This guidance is important for business owners planning equipment purchases, vehicle acquisitions, or facility improvements in 2026 and future years.

Background on Bonus Depreciation

Bonus depreciation allows businesses to deduct the cost of qualifying assets faster than under traditional depreciation schedules. Under prior law, bonus depreciation had been gradually phased down and was limited to 40 percent for property placed in service in 2025.

Recent legislation reversed that phase‑down and reinstated 100 percent bonus depreciation for qualified property acquired and placed in service after January 19, 2025. This is a major transformation of the Code to benefit businesses. Now businesses can expense in year 1, the entire cost of the purchase of capital assets that would have been previously subject to depreciation over many years, depending on the specific asset being placed in service. IRS Notice 2026‑11 confirms that taxpayers may rely on existing bonus depreciation regulations, updated solely to reflect the new effective dates, until formal regulations are issued.

Property That Qualifies for 100 Percent Bonus Depreciation

Qualifying property includes tangible business assets with relatively short recovery periods. Examples commonly relevant to business owners include machinery and equipment, manufacturing and construction assets, medical and dental equipment, office furniture, computers, servers, and other technology systems. For example, a commercial printing machine that previously would have been depreciated over 5 years can now be fully expensed in a single year; similarly, certain large industrial HVAC units or warehouse‑level systems that might have required 15 to 20 years of depreciation can now be written off immediately.

The guidance also confirms that certain heavy vehicles used primarily for business purposes may qualify. This includes assets such as earth‑moving trucks used in construction or heavy‑duty pickups, such as a Ford F‑150 or F‑250, when used more than 50 percent for business. In addition, interior improvements to non‑residential buildings that are classified as qualified improvement property may be eligible for full expensing even though the building itself is not. These improvements previously required a 15‑year depreciation period before being deductible in full.

Importantly, the IRS reaffirmed that both new and used property may qualify for bonus depreciation, provided the taxpayer did not previously use the property and the acquisition satisfies statutory requirements.

Property That Does Not Qualify

Certain assets remain excluded from bonus depreciation. Land is never depreciable and therefore cannot be expensed. Residential and commercial buildings must generally continue to be depreciated over 27.5 or 39 years, respectively, and do not qualify for accelerated depreciation as a whole.

However, specific components of buildings may still be eligible through qualified improvement property treatment or, in appropriate cases, cost‑segregation analysis. For example, interior lighting systems, interior wiring or piping, fire‑suppression systems, and interior HVAC components may qualify even though the building itself does not. Assets used primarily for personal purposes also remain ineligible.

Elections Available Under IRS Notice 2026‑11

IRS Notice 2026‑11 highlights several elections that give taxpayers flexibility in how they apply the bonus depreciation rules, depending on their income level and planning objectives.

For the first tax year ending after January 19, 2025, taxpayers may elect to claim a reduced bonus depreciation percentage rather than the full 100 percent. In most cases, this reduced rate is 40 percent, although a 60 percent rate may apply to certain long‑production‑period property and aircraft.

For example, a business that purchases $500,000 of qualifying equipment in 2026 would normally be eligible to deduct the full $500,000 in the year the equipment is placed in service. However, if the business expects significantly higher income in future years, it may choose to claim only 40 percent bonus depreciation in year one and recover the remaining cost over time. This approach can help smooth taxable income and avoid wasting deductions in a low‑income year.

Taxpayers may also elect to opt out of bonus depreciation entirely for a particular class of property. This election may be appropriate where traditional depreciation better aligns with long‑term income projections, financing covenants, or state tax considerations. Once made, the election applies to all assets within that class placed in service during the year.

Interaction with Section 179 Expensing

Bonus depreciation often operates alongside Section 179 expensing , another provision that allows businesses to immediately deduct the cost of certain capital assets. Section 179 is designed primarily for small and medium‑sized businesses and allows qualifying property to be expensed in the year it is placed in service, subject to annual dollar limits and business‑income restrictions.

Unlike bonus depreciation, Section 179 cannot create a tax loss . Deductions under Section 179 are limited to the amount of taxable business income for the year, and unused amounts generally carry forward. Bonus depreciation, by contrast, has no dollar cap and may generate losses that can be carried forward to future years.

For example, assume a business purchases $800,000 of qualifying equipment in 2026 and has $600,000 of taxable business income. The business may elect to expense $600,000 under Section 179, fully offsetting current‑year income. The remaining $200,000 basis may then be deducted using bonus depreciation, even though it creates a net operating loss. That loss may be carried forward to offset income in future years.

Planning Considerations for Business Owners

The restoration of full bonus depreciation significantly affects capital‑investment planning for businesses. To qualify, assets must be placed in service during the tax year, not merely purchased or paid for. The timing of acquisitions can materially affect current‑year tax liability, and elections should be coordinated with broader income and cash‑flow objectives.

Conclusion

IRS Notice 2026‑11 confirms that 100 percent bonus depreciation is once again available and permanent for qualifying assets placed in service in 2026 and beyond. For many businesses, the ability to fully expense capital investments in the first year presents a meaningful opportunity to reduce tax liability and reinvest in growth. Proper classification, timing, and election planning remain essential to maximizing the benefit.

For further inquiries or questions, please contact fportera@lavellelaw.com or aletto@lavellelaw.com or (847) 705-7555.

Banking and Business – February 2026

Tue, 10 Feb 2026 21:24:18 GMT

New FinCEN Reporting Rule for Certain Residential Real Estate Transactions

Introduction

Beginning March 1, 2026, new federal regulations issued by the Financial Crimes Enforcement Network (FinCEN) will significantly affect how certain residential real estate closings are handled. Issued under the authority of the Bank Secrecy Act, 31 U.S.C. § 5311 et seq., and codified at 31 C.F.R. § 1031.320, the rule requires the reporting of specified non-financed residential real estate transfers involving legal entities and trusts. The regulations were published at 89 Fed. Reg. 70258 and, following a delayed implementation period, will take effect on March 1, 2026. Their stated purpose is to increase transparency in all-cash residential real estate transactions. (1)

For clients, this means the closing process may involve additional steps, earlier preparation, and closer coordination among the attorney, the real estate broker, and the settlement agent. Understanding the new rule will help ensure a smooth, timely, and fully compliant transaction.

Background

The new federal reporting requirement applies when a buyer acquires residential real property through an entity or trust using non-financed funds. Residential real property includes one-to-four-family homes, condominiums, cooperative units, and land intended for residential construction. (2) The rule is triggered only when the buyer takes title through an LLC, corporation, partnership, or trust, and the purchase does not involve a loan from a financial institution subject to federal anti-money laundering oversight. (3)

Many buyers use entities or trusts for legitimate reasons, including privacy and estate planning. Under 31 C.F.R. § 1031.320, however, these ownership structures now require the collection and reporting of ownership and control information. Although certain transactions are exempt under § 1031.320(n), in practice, most all-cash residential purchases through an entity will fall within the scope of the rule. (4)

Because the settlement agent must file a federal report, the information required must be assembled well in advance of closing. This makes early communication between the client, real estate broker, and attorney essential.

Impact on the Closing Process

Beginning March 1, 2026, the settlement agent must complete and file a Real Estate Report for any transaction that meets the criteria in § 1031.320. (5) This report includes information about the buyer’s entity or trust, the individuals who ultimately own or control it, the property being transferred, and the source of the funds used at closing.

This requirement affects multiple participants in the transaction. Clients using an entity or trust must be prepared to provide documentation identifying the structure and ownership of that entity. Real estate brokers are often the first to learn whether a buyer intends to purchase through an entity or trust and should communicate that information as early as possible. This allows the attorney to determine whether the rule applies and to advise the client on what information will be required.

Attorneys play a pivotal role in ensuring that clients understand what must be disclosed and that their personal information is handled with care. They also coordinate with the title company and settlement agent to ensure the reporting requirements do not interfere with the scheduled closing date. A well‑coordinated team reduces uncertainty, prevents last‑minute document requests, and ensures that all legal requirements under the regulations are satisfied efficiently.

Takeaway

The new federal reporting rules represent an important change in how many all-cash or entity-based purchases will be closed after March 1, 2026. Under 31 C.F.R. § 1031.320, buyers using LLCs, corporations, partnerships, or trusts must expect to provide ownership and control information, and sellers must be prepared for this requirement if their buyer uses one of these structures. (6)

Early planning makes the process smooth. Working with a real estate broker who communicates clearly and an attorney who understands the new reporting requirements ensures that transactions remain on schedule and fully compliant with federal law. The combination of proper legal guidance and informed real estate representation helps protect the client’s interests and promotes a seamless closing experience. If you have questions about how these rules may affect an upcoming transaction, or if your real estate broker would like a more detailed explanation, we are available to assist.

Thanks go to Anthony Letto for his help writing this article. For further inquiries or questions, please contact me at smigala@lavellelaw.com or at (847) 705-7555.

(1) https://www.fincen.gov/news/news-releases/fincen-announces-postponement-residential-real-estate-reporting-until-march-1

(2) https://www.fincen.gov/rre

(3) Bank Secrecy Act, 31 U.S.C. § 5311 et seq .

(4) https://www.fincen.gov/rre

(5) https://www.gao.gov/products/b-336653

(6) https://www.fincen.gov/rre

Tim’s Tax News on the Tenth – February 2026

Tue, 10 Feb 2026 17:05:44 GMT

Bankruptcy Cannot Discharge Taxpayer’s Questionable Tax Liabilities

Last month, I wrote that certain income taxes can be discharged in bankruptcy if they meet a four-part test, the last test being a subjective test. Well, on January 20, 2026, Judge Bentley of the United States Bankruptcy Court for the Southern District of New York issued a 46-page judgment determining that a chapter 7 debtor did not meet the fourth test. The IRS filed an adversary lawsuit to challenge the dischargeability of the Debtor’s almost $9 million in federal tax liabilities. The judge agreed that the liability was more attributable to the deliberate conduct of the debtor rather than financial misfortune.

The debtor, Jeffrey Winick, was one of New York City’s top commercial real estate brokers. As the CEO and majority owner of Winick Realty Group, LLC, he earned millions of dollars of cash compensation each year - an average of $4.75 million a year during the 2012 through 2016 tax years at issue in the adversary lawsuit. During and after that time, he spent lavishly, funding a luxurious lifestyle and incurring almost $12 million in gambling losses, while grossly underpaying his tax obligations. Following a decline in his brokerage business, initially caused by the loss of a key client and then exacerbated by the onset of the COVID-19 pandemic, he filed for Chapter 7 in August 2020. His bankruptcy schedules reported only $530,000 of assets and more than $10 million of debts, including almost $9 million in federal tax liabilities.

The Court found that rather than paying quarterly estimated taxes on his substantial commission income, the debtor directed that taxes be withheld only from his base salary, leaving millions in tax liabilities unpaid year after year. When the IRS attempted to collect, he repeatedly entered into installment agreements and submitted an offer-in-compromise—each of which temporarily barred enforcement—while allegedly misrepresenting that he had no income subject to estimated tax payments.

Looking at the facts, the judge held that nearly $9 million in federal income tax liabilities were not dischargeable because the debtor had willfully attempted to evade his taxes within the meaning of the Bankruptcy Code. The judge found Debtor’s conduct to evade or defeat taxes caused the liability over a mere passive nonpayment of the taxes. The debtor’s conduct went far beyond passive nonpayment. Judge Bentley emphasized there was a systematic failure to pay estimated taxes, despite clear knowledge of the legal obligation to do so; affirmative misrepresentations made to the IRS—through accountants and counsel—to secure installment agreements and block enforcement actions; asset-protection behavior, including transfers of millions of dollars in business interests and luxury items to family members for no consideration, rendering the debtor effectively judgment collection-proof. And Debtor’s lavish discretionary spending, including gambling, even while substantial tax liabilities remained unpaid.

While the debtor argued that his gambling addiction explained much of his conduct, the court rejected that defense, noting he had successfully structured his finances in other years to ensure taxes were paid before discretionary spending. The Court did not deny the Debtor his bankruptcy discharge, but only exempted from the discharge the tax debt that otherwise could have been discharged but for the debtor’s failing to meet the fourth test.

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Supreme Court Allows Candidates to Challenge Vote-Counting Rules

Wed, 04 Feb 2026 21:11:49 GMT

On January 14, 2026, the U.S. Supreme Court decided that political candidates can bring lawsuits over election rules. In Bost v. Illinois State Board of Elections , 607 U.S. ___ (2026), the Court held that a candidate for office has the right to challenge state rules about how votes are counted, even if the candidate cannot prove the rule will change the outcome of an election.

The Case

Illinois law allows election officials to count mail-in ballots that are postmarked by Election Day and received up to two weeks later. See Ill. Comp. Stat., ch. 10, §§5/19–8(c), 5/18A–15(a). Congressman Michael Bost and other candidates sued the Illinois State Board of Elections, arguing that counting ballots received after Election Day violates a federal law that sets a single national Election Day. Lower courts dismissed the case, reasoning that the candidates lacked standing because they had not shown that the rule would actually cause them to lose or materially affect the election results.

The Supreme Court disagreed with the lower courts’ interpretation. Writing for the majority, Chief Justice Roberts explained that candidates have a direct and personal interest in the rules that govern how votes are counted in their elections. That interest goes beyond simply winning or losing. According to the Court, candidates are entitled to a fair and lawful election process. When election rules allegedly depart from the law, candidates are harmed because the fairness and public confidence in the election can be undermined even if the final outcome stays the same. The Court also rejected the idea that candidates must show a real risk of losing an election before they can sue. Requiring that kind of proof, the Court said, would force judges to guess how elections will turn out and would push lawsuits to the very end of the election cycle, when court involvement is most disruptive.

Justice Barrett and Kagan concurred with the result but for a narrower reason, focusing on the campaign costs candidates incur to monitor vote counting. Justice Jackson and Sotomayor dissented, arguing that concerns about election fairness are shared by voters generally and should not automatically give candidates the right to sue.

Overall Takeaway

The Supreme Court did not decide whether Illinois’s vote-counting rule is lawful. Instead, it ruled that the candidates are allowed to bring their challenge and have it heard on the merits. The decision makes it easier for candidates to challenge election procedures before an election occurs, rather than after votes are counted. As a result, Bost is likely to play an important role in future election-law disputes and in how courts handle challenges to election administration rules.

Should you have additional questions regarding this ruling's impact on Illinois elections, or wish to consult an attorney about participating in an upcoming Illinois or federal election, please call Lavelle Law at 847-705-7555 or email Attorneys John (Jack) Lydon ( lydonj@lavellelaw.com ) or Jacob Rotolo ( jrotolo@lavellelaw.com ) to schedule your free and confidential one-hour consultation.

Sarah Reusché: Rooted in Community

Tue, 03 Feb 2026 16:38:47 GMT

As seen in North Shore City Lifestyle, February 2026

Full article: https://citylifestyle.com/articles/sarah-reusch-rooted-in-community

Success Story - Smooth Acquisition of Fast Food Franchise Assets

Mon, 02 Feb 2026 18:39:13 GMT

Background:
A small business owner sought to acquire the assets of a mall-based fast food franchise. The client needed experienced legal guidance to navigate a complex, multi-party transaction involving the seller, the franchisor, the mall’s leasing agency, and a lending institution providing bank financing.

Challenges:
The deal included multiple layers of complexity: franchise approval requirements, asset transfer terms, lease obligations, and lender conditions. Coordinating between all parties and resolving these legal and financing issues was critical to ensuring a successful acquisition.

Result:
Attorney Frank Portera successfully guided the client through negotiations with all involved parties. By addressing franchise requirements, asset transfer details, lease agreements, and financing conditions, the acquisition closed smoothly. The client was able to move forward with confidence and a solid foundation for growth.

Elgin Chamber Chat: KCT and Lavelle Law

Tue, 27 Jan 2026 23:58:07 GMT

Community Spotlight: On January 27, Lavelle Law Shareholder Steve Migala, who also serves as 2026 Board Chair of the Elgin Area Chamber, joined Chamber President & CEO Carol Gieske on Chamber Chat (WRMN 1410 AM). Special guest Yvonne Irving from KCT Credit Union participated as well, and together they shared valuable insights on supporting local businesses and the greater Elgin community. Catch the conversation and stay connected with area happenings!

Appointed Agent Under Power of Attorney for Property? Know the Law Before You Act!

Wed, 21 Jan 2026 19:06:35 GMT

If you are named as agent under a Power of Attorney for Property for someone, be sure to act responsibly and know what is required under the law. Attorney Nataly Kaiser explains a key duty under the Illinois Power of Attorney Act - keeping complete, detailed records of EVERY receipt, disbursement, and significant action. Follow the law to protect yourself from disputes and prevent unnecessary court demands for records. For more information on POAs, estate planning, or personalized guidance, contact Lavelle Law attorney Nataly Kaiser at 847-705-7555 or nkaiser@lavellelaw.com .

New Year, New Employment Laws: Key Illinois Changes Effective 2026

Thu, 15 Jan 2026 19:55:32 GMT

A Lavelle Law Breakfast Briefs Seminar

New Year, New Employment Laws: Key Illinois Changes Effective 2026

A Lavelle Law Breakfast Briefs Seminar

February 18, 2026

7:45 – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

Join Lavelle Law for a focused seminar dedicated to the major new employment-related laws that took effect in Illinois on January 1, 2026. While over 280 new laws were enacted statewide, this session zeroes in on the critical updates that directly impact employers, workplace policies, hiring, and HR practices.

Led by Lavelle Law attorneys Lance Ziebell and Sarah Reusché, you'll receive clear, actionable legal guidance on the most significant employment law changes. Learn practical strategies to maintain compliance, reduce liability, and protect your business from potential claims involving wages, leave, discrimination, non-competes, employee classification, retaliation, and more.

This free seminar is designed for business owners, managers, HR professionals, and advisors who need to understand and implement these employment-specific updates effectively.

Doors will open at 7:45 for a complimentary continental breakfast, and the presentation will begin at 8:00. Registration is required as seating is limited.

Meet the Panel

Tim’s Tax News on the Tenth – January 2026

Sat, 10 Jan 2026 18:28:43 GMT

Bankruptcy Can Discharge Some Tax Liabilities

The toll of the high inflation of the past few years, combined with lingering economic aftershocks from COVID-19, has created a great amount of economic uncertainty for many people. Our office has been contacted by numerous individuals and businesses about how to handle their debts, which for many include IRS and IDOR debt. Over the years, our firm has helped numerous clients with tax debts via an Offer in Compromise, Abatement of Penalties, favorable Installment Agreements, or Partial Installment Agreements. We have also, in the right circumstances, helped taxpayers by filing bankruptcy for them to eliminate (or greatly reduce) their tax obligations. Yes, some taxes can be discharged in bankruptcy.

If the IRS or state filed a tax lien, while the bankruptcy may eliminate your personal liability to pay the underlying tax debt, the lien itself remains attached to your property (assets) until the debt is fully paid or the lien is otherwise settled. Income taxes can be discharged if the tax liability meets a four-part test.

First test: is the tax year older than three years (for example, 2021, which was due without an extension on April 15, 2022), you add three years to that filing due date, arriving to April 15, 2025; therefore, 2021 and earlier years could be discharged, provided that there was no extension. If, however, there was an extension, then October 16, 2025, would be the operative date, provided the next three tests are met.

Second test: The return must be filed at least two years before the bankruptcy filing date. A fairly straightforward and simple test, however, if the IRS were to prepare a return for the taxpayer (called a Substitute for Return – SFR), then that would prevent this test from being met for the client. Assuming that no SFR was prepared, and the return was filed more than two years before the bankruptcy case is filed, then that year’s liability could be discharged, provided the next two tests are met.

Third test: The bankruptcy is filed at least 240 days after the IRS makes its assessment for that tax year. This simple step (but very critical) can be verified by reviewing IRS transcripts in a pre-filing due diligence step necessary to ensure the taxpayer’s taxes can be discharged.

Fourth test: The last test is not as objective as the above three tests. The final test boils down to this question: “Was the liability accrued as a pattern of fraud?” Again, like the first three tests, this test requires a thorough understanding of the client’s case, as well as being able to argue the merits of why the liability accrued in the manner it did by the taxpayer.

The above four-part test is for both federal and state income taxes. Unfortunately, employment tax (trust fund) and sales and use tax are not dischargeable in bankruptcy.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

Elgin Area Chamber announces attorney Steven A. Migala as 2026 board chair

Thu, 08 Jan 2026 18:23:03 GMT

In the News: https://patch.com/illinois/elgin/elgin-area-chamber-announces-attorney-steven-migala-2026-board-chair

Success Story: Lavelle Law Secures Emergency Guardianship and Protects a Vulnerable Mother from Exploitation

Thu, 08 Jan 2026 16:19:42 GMT

Background:

An elderly woman suffering from dementia was unexpectedly discharged from the hospital directly into the care of what appeared to be a complete stranger. The family did not know the individual in question. While still in a vulnerable state at the hospital, she was persuaded to sign a new Power of Attorney (POA) in favor of this individual. Her devoted son, our client, grew deeply concerned when she went missing for several days. After an exhaustive search, he finally located his mother at the individual's home, where she was being kept under questionable circumstances. The family later learned that the individual was an old high-school acquaintance of the woman. The family immediately sought legal help to protect her safety and well-being.

Challenges:

This was a true emergency guardianship case filled with significant obstacles. The new POA created a legal barrier that the stranger attempted to use to maintain control over the ward. The situation was complicated by the ward's dementia, as she was unable to understand why she needed to leave the stranger's home, making voluntary removal impossible. The stranger refused to release her, creating a tense standoff. Standard legal processes were insufficient to quickly resolve the crisis, requiring our firm to take decisive, aggressive action in court to safeguard the vulnerable woman.

Result:

Attorney Nataly Kaiser successfully petitioned the court to obtain an emergency order suspending the improperly obtained POAs and appointing our client as temporary guardian. When voluntary compliance still failed, we secured a writ for involuntary commitment, which authorized the sheriff to physically remove the ward from the bad actor's home and ensure her safety. Once removed and protected, we swiftly proceeded with the guardianship proceedings. The court ultimately appointed our client, the loving son, as guardian of his mother, restoring proper family oversight and protection.

This outcome prevented further exploitation and ensured the ward received appropriate care in a safe environment. The family can now rest easier knowing their loved one is secure.

Rise in Wiretapping Litigation Should Prompt Dealers to Audit Their Data Tracking Tools

Mon, 05 Jan 2026 22:06:26 GMT

Dealerships, like many businesses in today’s data-driven market, use various tracking technologies such as session replay software, cookies, pixels, chatbots, pen registers, geotargeting or geofencing tools, and other related technologies to collect, track, and store personal data from consumers when they visit the dealership’s website. These tools and technologies are designed to enhance the user experience and improve dealers’ marketing, but their use is becoming increasingly risky as consumers grow progressively more aware of how their personal data is being collected and used.

The past two years have brought an increase in class action litigation against auto dealers alleging that the use of these tools constitutes illegal wiretapping or unauthorized recording of consumer activities and communications without consent in violation of state wiretapping laws. It is important that Illinois automobile dealers, and Wisconsin dealers that service Illinois consumers, fully understand this growing trend and take the proper steps to minimize their risk.

Class Action Litigation under State Wiretapping Laws

Several recent cases involving California’s Invasion of Privacy Act (“CIPA”) highlight this trend. California is a so-called “two-party consent” state, and under the CIPA, any party seeking to record an audio or text-based conversation must obtain consent from all parties to be recorded, no matter where the other parties are located. The California plaintiffs filing these claims allege certain tracking tools on dealership websites, including cookies, session replay tools, or chat modules, violate state and federal wiretapping laws by tracking or recording interactions with consumers without their consent. California residents are filing these actions against dealers in states other than California, demonstrating this issue affects any dealership doing business with consumers located in a two-party consent state, regardless of that state’s own wiretapping laws.

Like California, Illinois is a two-party consent state. It is increasingly likely that Illinois dealers, or dealers in Wisconsin that service Illinois consumers, could face similar litigation under the Illinois Eavesdropping Statute, 720 ILCS 5/14-1, et seq . A successful claim could subject a dealer to injunctive relief and actual and punitive damages. See 720 ILCS 5/14-6. Therefore, it is important that Illinois dealers and Wisconsin dealers that service Illinois consumers review their data tracking tools to mitigate risk.

How Dealers Can Protect Themselves

Dealers must fully understand what tools are being used on their websites, exactly what data those tools collect, and how that data is stored and protected. Even if a dealer knows such tools exist, they may not fully understand how they operate, what information they gather, and where such information is shared. For example, one specific feature many plaintiffs have identified in the California class actions is Google Analytics, which may share customer data without the dealer fully knowing how it operates.

Dealers must also clearly inform customers what specific tools they are using on their website and give customers the option to consent to their use. Two critically important items to customer consent are the cookie consent banner and a robust privacy policy. First, a cookie consent banner requires a customer to click “accept” before a cookie or tracking pixel can load. Second, a dealer must update its website’s privacy policy to include language disclosing the use of any data-collection tools and what information those tools collect. Simply understanding the tools being used and implementing proper cookie consent banners and privacy policies will help dealers adequately minimize their litigation risk.

Takeaway

If you are an auto dealer concerned about the risk of facing class action litigation from the use of consumer tracking technology, it is important that you fully understand the data-collection and consumer tracking tools in use on your website and take the proper steps to minimize your risk by disclosing the use of such tools to your consumers and implementing the proper consents.

Should you have additional questions regarding this subject matter, or wish to consult an attorney regarding possible data-privacy litigation faced by your dealership, please call Lavelle Law at 847-705-7555 or email Attorneys Sarah Reusché ( sreusche@lavellelaw.com ) or Mitchell Parker ( mparker@lavellelaw.com ) to schedule your free and confidential one-hour consultation.

Cheers to 2026! Happy New Year from Near and Far

Wed, 31 Dec 2025 15:58:52 GMT

Happy New Year from Lavelle Law! As we say farewell to 2025, we’re excited to look back on some cool travel destinations of our Koozie Challenge - from fiery volcanoes in Guatemala to icy glaciers in Alaska! A big thank you to our staff, family, and friends who took part in the fun.

We wish you all a happy, healthy, prosperous, and adventurous 2026!

New Year, New Laws – 2026

Fri, 19 Dec 2025 23:06:59 GMT

Over 280 New Illinois Laws are going into effect in 2026. Listed below are some that may have a significant impact on you or your business.

New Illinois Bivens Act (HB 1312)

Allows civil suits and damages for constitutional violations committed during civil immigration enforcement, expands whistleblower protections, and establishes safeguards against civil arrest for individuals attending court proceedings. It also enacts broad “sanctuary” protections across hospitals, schools, and child care centers by limiting immigration-related disclosures and law enforcement access, requiring institutional policies and procedures, and providing enforcement mechanisms and civil remedies.

Workplace Transparency Act Amendments (HB 3638)

Expands the definition of unlawful employment practices to include wage-hour, safety, and labor violations. Invalidates unilateral contract terms that shorten filing deadlines, designate non-Illinois venue or law, or restrict concerted activity. Enhances protections for participation in legal proceedings and confidentiality rules in settlements.

AI in Employment Decisions (HB 3773)

Amends the Illinois Human Rights Act to prohibit discriminatory decision-making using AI tools in hiring, promotion, discipline, or termination. Employers must notify employees when AI is used and disclose its evaluative functions; zip codes cannot serve as proxies for protected characteristics.

Guaranteed K–12 Education Regardless of Immigration Status (HB 3247)

Prohibits Illinois schools from denying enrollment or educational services to students or staff due to actual or perceived immigration status. Schools may not collect or share immigration information and must develop protocols for law enforcement visits, including requiring a judicial warrant for immigration-related entries.

Corporate Tax Reform (HB 2755)

Introduces the “Finnigan” method for combined reporting, modifies GILTI deduction levels, and changes interest expense add-back rules—effective for tax years ending December 31, 2025.

Statewide Grocery Tax Repeal (FY2026 Budget / HB 2755)

Eliminates the 1% statewide grocery tax. However, local jurisdictions that have approved ordinances by October 1, 2025, may continue levying their own 1% grocery tax.

Illinois Receivership Act (HB 0028)

Creates a uniform framework for court-appointed receivers, authorizing courts to appoint a receiver to take possession of, manage, and, if approved, dispose of real property and related business assets. The Act clarifies the powers and duties of receivers and courts, while excluding most small residential properties, governmental receivers (unless elected), and receivers appointed under the Illinois Mortgage Foreclosure Law.

Safe Gun Storage Act (SB 0008)

Sets new safe-storage requirements to prevent access by minors or at-risk individuals. Includes civil penalties and shortens the required reporting timeframe for lost or stolen firearms from 72 to 48 hours.

New “Anti-Squatter” Bill (SB 1563)

Amends the Code of Civil Procedure to clarify that the Eviction Article does not limit law enforcement’s authority to enforce criminal trespass laws or other Criminal Code violations. It also confirms that police may remove persons or property from premises when criminal trespass is present.

Amendment to the Mobile Home Landlord and Tenant Rights Act (HB 2849)

Restricts park owners from passing common-area utility costs onto tenants by prohibiting such charges where utilities are billed by a public utility, capping recoverable costs at 80% when usage is not separately metered, and requiring annual disclosure of cost-allocation methods and access to underlying utility bills upon request.

Pipeline Impact Compensation (SB 1697)

Requires pipeline companies to compensate landowners for any property damage or disturbance caused during installation, including costs related to access and restoration. This law places a clearer financial obligation on pipeline operators and strengthens landowner protections.

Amendment to the State Employees Group Insurance Act of 1971 (SB 0773)

Expands insurance coverage requirements by mandating infertility diagnosis and treatment coverage, including pre-implantation screening procedures, for group health policies with pregnancy benefits issued or renewed on or after January 1, 2026. It also requires large group and individual policies to cover annual menopause health visits for individuals age 45 and older without cost-sharing, while setting defined applicability periods and making conforming changes across multiple insurance statutes.

Amendment to the Pharmacy Practice Act (HB 3489)

Expands the definition of the “practice of pharmacy” to include assessing patients and dispensing all contraceptives, including emergency contraception, rather than only hormonal contraceptives. It also amends the Illinois Public Aid Code to require Medicaid coverage for pharmacist-provided contraceptive care, including emergency contraception.

Amendment to the Fair Patient Billing Act (HB 1431)

Requires hospitals that charge outpatient facility fees to adopt a clear, written policy explaining how patients are notified of those fees, what they cover, why they are charged, and how patients can obtain more information. It authorizes the Illinois Attorney General to enforce compliance through investigations, civil penalties, and referral to the Illinois Department of Public Health for repeated violations.

Amendment To The Caregiver Advise, Record, and Enable Act (HB 1332)

Requires hospitals to offer patients the opportunity to designate an emergency contact both upon admission and again before discharge. This measure strengthens patient support, communication, and care coordination.

Enactment of the Family Neonatal Intensive Care Leave Act (HB 2978) Effective June 1, 2026

Allows eligible Illinois employees to take job-protected, unpaid leave when their child is in a neonatal intensive care unit (“NICU”). Employees of employers with 16 to 50 workers may take up to 10 days, and those with 51 or more may take up to 20 days.

Expansion of “Bullying” Definition (HB 3851)

Expands the School Code’s definitions of bullying and cyberbullying to include posting or distributing sexually explicit images and, beginning in the 2026–2027 school year, the electronic distribution of AI-generated digital replicas. It also adds definitions for artificial intelligence, generative artificial intelligence, and digital replicas.

Updates to the Illinois Police Training Act (SB 1953)

Requires disclosure of complete law enforcement personnel files to hiring agencies after a final offer of employment and expanding immunity for entities releasing those records. It replaces qualified immunity with full immunity for the Training Standards Board and prior employers when providing employment record information for law enforcement hiring decisions.

Amendment to the Illinois Human Rights Act (SB 2487)

Specifies that the Illinois Department of Human Rights (“IDHR”) will no longer automatically require fact-finding conferences in workplace discrimination cases; instead, conferences will be held only if both parties request one within 90 days and agree to extend the investigation by 120 days, or at IDHR's discretion.

Amendment to the Affordable Housing Planning and Appeal Act (HB 3616)

Requires the Illinois Housing Development Authority to collect and publish detailed affordability data across multiple income tiers for owner-occupied and rental housing, issue a statewide report to the General Assembly at least every five years, clarify that the data is informational only and not used to determine exemptions, and expand the Act’s legislative findings.

Rooftop Safety Standards (SB 1742)

Requires parapets, guardrails, or masonry extensions on new or renovated low-sloped roofs, with municipalities surveying building compliance by January 1, 2027.

Veteran-Inclusive SNAP Eligibility (SB 0032)

Broadens SNAP eligibility thresholds, allowing veteran and military households access with gross income up to 200% of the non-farm poverty guidelines.

Amendment to the Victims' Economic Security and Safety Act (HB 1278)

Prohibits employers from retaliating against employees or withholding employer-issued equipment because it was used to document domestic or sexual violence or other violent crimes against the employee or a family or household member. It also requires employers to provide employees access to relevant recordings or digital materials on those devices, while preserving compliance with lawful investigations and reasonable workplace policies.

Amendment to the Civil Administrative Code of Illinois (SB 0058)

Allows the Department of Commerce and Economic Opportunity to enter into grants, contracts, or agreements to offer technical help for regional manufacturing partnerships. These partnerships can involve employer associations representing manufacturers, secondary and postsecondary institutions like public universities and community colleges, and workforce stakeholders such as local workforce innovation boards and areas.

Amendment To the Crematory Regulation Act (SB 1793)

Establishes a religious-practice exemption allowing individuals to scatter cremated remains in Illinois rivers. This change recognizes and accommodates certain faith traditions that include water-based burial rituals.

Amendment To the Illinois Vehicle Code (SB 1883)

Prohibits the use of tape, coverings, or any other device that obstructs or alters the visibility of a vehicle’s registration plates. The law aims to improve roadway safety and support accurate plate identification.

Amendment To the Illinois Vehicle Code (HB 1120)

Removes the longstanding requirement that Illinois driver’s licenses include a space for listing a person’s blood type. This update streamlines license formatting and eliminates a field with limited practical use.

Amendment To the Illinois Vehicle Code (SB 2285)

Expands the statutory definition of “bicycle” to include low-speed electric bicycles. By doing so, the law clarifies how these devices are regulated and ensures consistent application of traffic and safety rules.

For a comprehensive list of the new Illinois laws, CLICK HERE .
Contact us to schedule a complimentary consultation to explore how these new laws may impact you or your business. 847-705-7555

Tim’s Tax News on the Tenth – December 2025

Wed, 10 Dec 2025 18:53:03 GMT

IRS Issues Guidance on Trump Accounts Established Under the Working Families Tax Cuts

The Department of the Treasury and the Internal Revenue Service recently issued a notice announcing upcoming regulations and providing guidance regarding Trump Accounts, which are a new type of individual retirement account (IRA) for eligible children.

IRS Notice 2025-68 provides a general overview of how Trump Accounts work and addresses certain initial questions about creating initial and rollover Trump Accounts, the $1,000 pilot program contribution, other contributions – including qualified general contributions and section 128 employer contributions – eligible investments, distributions, reporting, and coordination with the rules applicable to other types of IRAs.

The Working Families Tax Cuts provides for establishing a Trump Account on behalf of every eligible child for whom an election is made, generally by a parent or guardian, and who has not turned age 18 before the end of the calendar year in which the election is made. Contributions to Trump Accounts cannot be made before July 4, 2026.

Additionally, the federal government will make a one-time $1,000 pilot program contribution to the Trump Account of each eligible child for whom an election is made, who is a U.S. citizen and who is born on or after January 1, 2025, through December 31, 2028.

Certain governmental entities and charities may also make qualified general contributions to Trump Accounts if given to a qualified class of account beneficiaries. Other persons are also able to make contributions up to an aggregate limit of $5,000 per year. Furthermore, an employer may contribute to a Trump Account of the employee or the employee’s dependent up to $2,500 per year (which counts against the $5,000 annual limit) under an employer’s Trump Account contribution program, and the contribution will not count toward the employee’s taxable income. The annual contribution limits are indexed to inflation and will adjust starting after 2027.

The funds in Trump Accounts must be invested in certain mutual funds or exchange-traded funds that track the S&P 500 or another index of primarily American equities. (For more information on Trump Accounts, you can visit www.trumpaccounts.gov ).

Amounts generally cannot be withdrawn from Trump Accounts before January 1st of the calendar year in which the child turns 18 years old. After that point, the account generally is treated as a traditional IRA and generally is subject to the same rules as other traditional IRAs.

The recent notice addresses certain areas of interest to prospective trustees of Trump Accounts and to those individuals, such as parents and guardians, who would like to establish and/or contribute to these accounts. The notice requests comments on numerous issues related to Trump Accounts.

The IRS is posting a draft version of Form 4547, Trump Account Election(s), to its website. When final, the new form can be used to establish a Trump Account and to enroll in the pilot program.

The IRS continues to provide updates and additional information related to the tax benefits from the Working Families Tax Cuts at IRS.gov.

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 31 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

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This article was republished on mondaq.com : Tim's Tax News On The Tenth – December 2025 - Tax Authorities - United States

How Do I Find the Right Law Firm?

Tue, 09 Dec 2025 22:34:32 GMT

How do you choose the right attorney or law firm for your needs? After decades of practicing law and building a highly respected firm, Attorney Kerry Lavelle has refined his answer to this common question into a clear, two-part test - one that helps individuals and businesses identify legal representation that is both highly competent and truly client-focused.

Lavelle Law exemplifies this balance. We are large enough to offer the cross-disciplinary strength required for complex legal matters, yet intentionally sized to ensure every client is known by name, understood personally, and supported with unwavering attention.

To learn more, contact Founding Partner Kerry Lavelle at 847-705-7555.

Condominium Law in IL: Updates, HOA Strategies, and Financing Insights

Mon, 24 Nov 2025 17:23:21 GMT

A Breakfast Briefs Recording

Attorneys Stephen Daday and Robyn Kish discussed the essentials of Illinois condominium and common interest community association law. Designed for property managers, board members, unit owners, and bankers, the presentation highlighted recent legal updates impacting HOA operations and addressed key issues in collections and safeguarding the financial interests of the association. Key topics included assessment enforcement, eviction procedures, reserve studies, and project financing. For follow-up questions or to schedule a free, initial consultation, contact us at 847-705-7555 or info@lavellelaw.com .

Understanding Grandparent Visitation Rights in Illinois

Wed, 19 Nov 2025 18:38:56 GMT

Family dynamics can be complex, especially when it comes to balancing the rights of parents with the interests of extended family members, such as grandparents. In Illinois, grandparent visitation rights are not automatic, and the law prioritizes the fundamental right of parents to make decisions about their children’s upbringing. However, under certain circumstances, grandparents may have legal grounds to seek court-ordered visitation.

Parental Rights Take Precedence

The Illinois courts have consistently held that parents have a constitutionally protected right to raise their children without undue interference. In Wickham v. Byrne (2002), the Illinois Supreme Court emphasized that allowing automatic grandparent visitation would infringe upon a parent’s fundamental rights to make decisions concerning the care, custody, and control of their children.

In this context, Illinois law presumes that a fit parent’s decision to deny or limit grandparent visitation is not harmful to the child. Therefore, the burden is on the grandparent to demonstrate otherwise.

When Grandparents Can Petition for Visitation

Under Section 750 ILCS 5/602.9 of the Illinois Marriage and Dissolution of Marriage Act, grandparents (as well as great-grandparents, siblings, and step-parents) may file a petition for visitation only under specific circumstances , including:

One of the child’s parents is deceased or has been missing for at least 90 days;
A parent has been deemed legally incompetent;
A parent has been incarcerated for more than 90 days;
The child’s parents are divorced or legally separated, and at least one parent agrees to the visitation;
The child was born to unmarried parents who are not living together, and the petitioner is related through a legally established parent-child relationship.

The child must also be at least one year old, and the petitioning grandparent must show that an unreasonable denial of visitation has caused, or is likely to cause, undue mental, physical, or emotional harm to the child.

What the Court Will Consider

When evaluating a petition, the court must balance the child’s best interests with the parents’ rights. The statute provides a list of factors the judge will consider, including:

The wishes of the child (based on their maturity and ability to express preferences);
The mental and physical health of the child and the grandparent;
The length and quality of the existing relationship between the child and the grandparent;
The good faith of the party seeking visitation and the person denying it;
The amount of visitation time requested and any potential disruption to the child’s routine;
Whether visitation can occur without exposing the child to adult conflicts.

Additionally, courts may give weight to the history of the relationship, including whether the grandparent:

Lived with the child for six consecutive months;
Had regular contact with the child for at least 12 consecutive months; or
Served as a primary caretaker for at least six months within the previous two years.

The Takeaway

While Illinois law recognizes that grandparents can play a vital role in a child’s life, it also strongly defers to the rights of parents. A grandparent seeking visitation must overcome a high legal threshold and demonstrate that denial of contact would likely harm the child’s well-being.

If you are a grandparent concerned about maintaining a relationship with your grandchild, or a parent responding to a petition for visitation, legal guidance is essential. Our family law attorneys can help you understand your rights, evaluate your options, and navigate the legal process with care and experience.

For further inquiries or questions, please contact Attorney Elizabeth C. Thompson at ethompson@lavellelaw.com or (847) 705-7555.

The 2025 Lavelle Law Charities Food Drive - A Heartfelt Thank You

Mon, 17 Nov 2025 20:34:28 GMT

The 2025 Lavelle Law Charities Food Drive wrapped up excitingly on October 24, 2025! After weeks of heartfelt community giving, Lavelle Law team members personally delivered an enormous haul to the Schaumburg Township Food Pantry. In addition to the many abundant bags and boxes of donations from around our 19 collection sites, we delivered a truckload of groceries valued at more than $13,000 plus a check for over $11,000 — totaling more than $24,000 in critical support. These donations will help stock the pantry through the holidays and well into the new year, helping feed the more than 1,300 local households (over 4,000 individuals), who depend on it every month. None of this would have been possible without our amazing community and partners.

A huge thank you to every individual who dropped off food or donated cash, the businesses that hosted collection boxes, and our outstanding corporate sponsors. Because of your generosity, families in our community will have brighter holidays and greater hope for the months ahead. From all of us at Lavelle Law Charities — thank you for making a real difference!

Tim’s Tax News on the Tenth – November 2025

Mon, 10 Nov 2025 17:26:29 GMT

Impact of Partial Government Shutdown on IRS – Day 41

Due to the current lapse in appropriations, IRS operations are limited. However, the underlying tax law remains in effect, and all taxpayers must continue to meet their tax obligations as normal.

Tax refunds will generally not be paid during this period, with one key exception. For taxpayers filing a Form 1040, refunds will continue to be paid on electronically filed, error-free tax returns that can be automatically processed and direct deposited. The IRS urges individual taxpayers to file electronically with direct deposit to avoid delays.

During this period, the IRS will accept and process any payments and remittances received, whether received electronically or by mail.

Limited live IRS telephone customer service assistance will be available, however most automated toll-free telephone applications will remain operational.

IRS walk-in Taxpayer Assistance Centers will be closed. For people with appointments at a Taxpayer Assistance Center, all of these will be cancelled until the government reopens.

While the government is closed, people with appointments related to the Independent Office of Appeals or Taxpayer Advocate Service cases are cancelled. IRS personnel will reschedule those meetings when the government reopens.

With the 2026 filing season rapidly approaching, the IRS will be continuing some critical operations during this period to be ready for taxpayers. This includes testing and preparation of filing season programs and related issues.

Important information for taxpayers:

Taxpayers must continue to file and pay taxes as normal.
All tax deadlines remain in effect, including those covering individuals, corporations, partnerships, and employers. The regular payroll tax deadlines remain in effect as well.
The IRS will continue processing payments received, whether by check or electronic means, during this period.
Taxpayers can file their tax return electronically or on paper - although the processing of paper returns will be delayed until full government operations resume. Payments accompanying paper tax returns will still be accepted and deposited as the IRS receives them.
The IRS website, www.IRS.gov , will remain available, along with some of the automated tools on the site.
Tax professionals, tax software companies, and Free File will remain available.

Limited services during this period; details on specific areas:

Automated applications. IRS.gov and some automated applications remain available, including such things as Where’s My Refund, the IRS2go phone app, and online payment agreements.
Telephones. Automated toll-free telephone applications will remain operational. Limited live IRS telephone customer service assistance will be available. The IRS encourages people to use IRS.gov for information.
In-person service. IRS walk-in taxpayer assistance centers are closed. During the government shutdown, all appointments are cancelled.
Taxpayer appointments. While the government is closed, people with appointments related to the Independent Office of Appeals or Taxpayer Advocate Service cases are cancelled. IRS personnel will reschedule those meetings when the IRS reopens.
Taxpayer correspondence. While the IRS will be able to receive mail and deposit tax payments received, the agency generally will not be responding to paper correspondence. Taxpayers who mail in correspondence to the IRS during this period should expect a longer delay for a response after full government operations resume due to a growing correspondence backlog.
Transcripts. When taxpayers and tax professionals may need historical filing information to complete new tax returns, the IRS encourages the use of automated tools where this information will remain available. In addition, the IRS will be processing transcript requests related to disaster relief.
Income verification. The IRS Income Verification Express Service (IVES) will remain available. IVES lets taxpayers authorize mortgage lenders, banks, and others to request their tax return or wage transcripts for income verification. The IRS provides tax records to a third party only with the consent of the taxpayer.
Tax-exempt groups. The IRS will not be processing applications or determinations for tax-exempt status or pension plans.
Enforcement activity. Criminal Investigation work continues during this period, as does compliance work related to protecting statutes of limitations.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

Success Story - $65 Million Sale of Business

Wed, 29 Oct 2025 16:12:15 GMT

Background:
Lavelle Law represented a private group of owners in the sale of their business to a strategic party using a type F reorganization.

Challenges:
The parties encountered complicated negotiations related to closing working capital requirements, roll-over equity, and structuring in order to achieve favorable tax treatment.

Result:
We were able to effectively negotiate the terms in a manner that enabled both buyer and seller to achieve their objectives.

Illinois Condominium Law: Updates, HOA Strategies, and Financing Insights

Mon, 27 Oct 2025 20:18:51 GMT

A Lavelle Law Breakfast Briefs Seminar

Illinois Condominium Law: Updates, HOA Strategies, and Financing Insights

A Lavelle Law Breakfast Briefs Seminar

November 19, 2025

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, Il 60173

Join Lavelle Law on November 19 for an engaging seminar on the essentials of Illinois condominium and common interest community association law. Designed for property managers, board members, unit owners, and bankers, the program will highlight recent legal updates impacting HOA operations and address key issues in collections and safeguarding the financial interests of the association. Key topics include assessment enforcement, eviction procedures, reserve studies, and project financing. Attendees will gain practical, actionable strategies to ensure legal compliance, enhance HOA management, and streamline the lending process — equipping them to effectively navigate today’s condominium and HOA challenges in Illinois.

Doors will open at 7:45 AM for a complimentary continental breakfast, and the presentation will begin at 8:00 AM. This is a free event, but registration is required as seating is limited .

Meet Our Presenters

Stephen G. Daday focuses on civil litigation, including actions on behalf of creditors and mortgage foreclosures, real estate litigation and condominium law, and eviction matters on behalf of condominium associations. He is a graduate of the University of Notre Dame and the John Marshall Law School.

Robyn K. Kish represents community associations in civil litigation in actions involving claims for breach of fiduciary duty, violations of governing documents, collections, and other complex civil claims. Robyn earned her Bachelor of Arts degree cum laude from Bradley University in 2001 and her Juris Doctor from Chicago-Kent College of Law in 2005.

Illinois Legislature Increases Key Debtor Exemptions Starting on January 1, 2026

Wed, 15 Oct 2025 20:50:19 GMT

On August 19, 2025, the Illinois General Assembly enacted Public Act 1738 (SB 1738), amending several provisions of the Illinois Code of Civil Procedure (735 ILCS 5) to raise debtor exemption limits effective January 1, 2026 . The new law provides expanded protection for Illinois residents against judgment enforcement and creditor collection, marking the most significant increase to the state’s exemption statutes in over a decade.

Under the amended 735 ILCS 5/12-901 , the homestead exemption , which shields the equity in an individual’s primary residence, will increase from $15,000 to $50,000 per person. For property jointly owned by two or more individuals, such as married couples, the exemption rises from $30,000 to $100,000. The General Assembly cited rising housing values and cost-of-living pressures as the basis for the increase, noting that the expanded protection better reflects the financial realities faced by homeowners. This change may also help judgment defendants retain their homes in enforcement proceedings or bankruptcy filings by preserving a larger share of their equity from forced sale or levy.

In addition to the homestead increase, personal property exemptions under 735 ILCS 5/12-1001 have also been adjusted. The automobile exemption rises from $2,400 to $3,600 per individual, allowing debtors to protect a greater portion of their vehicle’s value. This is an especially important update for working individuals who rely on personal transportation. Likewise, the tools-of-the-trade exemption increases from $1,500 to $2,250, expanding the amount of equipment, books, and instruments of a debtor’s occupation that can be protected from creditors. Additionally, the wildcard exemption remains at $4,000 for personal property, which debtors may allocate to cash, bank accounts, or other personal assets. This flexibility allows individuals to protect modest savings or non-traditional assets.

Public Act 1738 includes additional procedural updates relevant to judgment enforcement and small claims practice. It modifies provisions related to the revival of consumer judgments entered before January 1, 2020, and amends sections of the Clerks of Courts Act to prohibit certain filing fees for small claims defendants. These changes collectively aim to modernize Illinois’s judgment enforcement framework and enhance fairness for individual debtors.

The new exemption thresholds under Public Act 1738 are expected to benefit homeowners, consumers, and small business owners across Illinois by providing a greater financial cushion during debt collection or bankruptcy proceedings. Attorneys representing debtors, creditors, or trustees should review the amended statutes and update client advisories and collection strategies to ensure compliance with the new law once it takes effect on January 1, 2026.

If you would like more details, please do not hesitate to call our office. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

Put Your Home in a Trust to Avoid Probate

Mon, 13 Oct 2025 16:00:45 GMT

A crucial estate planning tool that many people in Illinois overlook is putting their home in a trust. Placing your house in a revocable trust offers multiple benefits: it avoids probate, which can save your family time and money after your death; it ensures a successor trustee can manage and maintain the property if you become incapacitated; and it allows you to control how the home is distributed, such as setting conditions for beneficiaries or protecting it for minor or special-needs children. Contact estate planning attorney Heather McCollum to learn more and to set up a free consultation. 847-705-7555 or hmccollum@lavellelaw.com

Tim’s Tax News on the Tenth – October 2025

Fri, 10 Oct 2025 12:00:04 GMT

IRS Has Started to Phase Out Paper Tax Refund Checks

In response to Executive Order 14247 requiring the Internal Revenue Service to eliminate the use of physical checks, the U.S. Department of the Treasury announced that paper tax refund checks for individual taxpayers will be phased out beginning on September 30, 2025. This marks the first step of the broader transition to electronic payments.

The IRS will publish detailed guidance for 2025 tax returns before the 2026 filing season begins. Until further notice, taxpayers should continue using existing forms and procedures, including those filing their 2024 returns on extension of a due date prior to December 31, 2025.

The new procedures are designed to

Protect taxpayers: Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments. Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.
Speed up refunds: Electronic refunds give taxpayers faster access to refunds, with payments issued in less than 21 days if filing electronically, choosing direct deposit, and there are no issues with the return, whereas non-electronic payments may take 6 weeks or longer for refunds sent by mail.
Cut costs: Electronic payments are more efficient and cost less than paper remittances.

What this means for individual taxpayers

Filing stays the same: Taxpayers should continue to file their returns as they normally would, using one of the existing filing options provided by the IRS.
Refunds go digital: Most refunds will be delivered by direct deposit or other secure electronic methods.
Help for those without access to bank accounts: Options such as prepaid debit cards, digital wallets, or limited exceptions will be available.

Most individual taxpayers already receive their refunds by direct deposit into their bank accounts. During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7 percent of individual refund recipients received their refunds by check through the mail.

Next steps

Executive Order 14247 also applies to payments made to the IRS. Taxpayers should continue to use existing payment options offered by the IRS until further notice. Additional guidance and information for filing 2025 taxes will be issued prior to the 2026 filing season.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

The 2025 Lavelle Law Charities Food Drive is Underway!

Wed, 01 Oct 2025 19:12:45 GMT

The 2025 Lavelle Law Charities Food Drive benefiting the Schaumburg Township Food Pantry has begun! Join us in our efforts to bring food, dignity, and hope to residents in need who rely on the food pantry. The need is greater than ever this year, as the food pantry serves over 1,300 households each month! That’s over 4,000 individuals who are at risk of hunger. We ask for both food and cash donations. No amount is too small! All nonperishable food items, paper goods, personal care items, baby formula, and diapers are needed.

Our Food Drive ends on October 24. Visit our Food Drive page for more information and a list of our collection box locations. Together, let's make this year's food drive the most successful one yet!

Marital Agreements, Collaborative Divorce, and Child Custody in Illinois

Wed, 24 Sep 2025 22:21:04 GMT

A Breakfast Briefs Recording

Our experienced family law attorneys, Joe Olszowka, Annette Corrigan, and Kristina Buchthal Alkass, discussed three key areas of family law matters: prenuptial/postnuptial agreements, collaborative divorce, and child custody. This video is a recording of their presentation on September 17, 2025, designed for individuals as well as professionals, including financial advisors, family counselors, and therapists. For follow-up questions or to schedule a free, initial consultation, contact us at 847-705-7555 or info@lavellelaw.com .

Success Story – Lavelle Law Saves Dealership Client Thousands for Alleged Advertising Violations

Wed, 24 Sep 2025 16:01:54 GMT

Background:

Lavelle Law represented a dealership client who allegedly violated state advertising laws.

Challenges:

Attorney Sarah Reusché previously negotiated an agreement with the state agency charged with enforcing the advertising laws, and the agency alleged the client violated the prior agreement.

Result:

Ms. Reusché provided a written response on behalf of the client, then met in person with executives at the state agency to defend the client’s purpose and intent with direct mail advertisements. As a result of the meeting, the agency decided to not impose a penalty against the client.

What Would a Taylor-Travis Prenup Look Like?

Fri, 12 Sep 2025 19:51:07 GMT

Taylor Swift’s engagement to Travis Kelce has made a big splash in the news. In this podcast, Lavelle Law family law attorneys Joe Olszowka and Kristina Buchthal Alkass discuss the importance of prenuptial agreements - not just for the wealthy, but for engaged couples who have acquired assets and couples who are entering a second marriage. In a parody style and as a sneak peek into prenup negotiations, Kristina assumes the role of Ms. Swift’s attorney, while Joe represents Mr. Kelce. What are the “non-negotiable” issues? What is the most important part of a prenup? How is a prenup similar to an estate planning document? Watch this episode of Chicago’s Legal Latte, brought to you by Lavelle Law. Contact us at 847-705-7555 or info@lavellelaw.com .

Tim’s Tax News on the Tenth – September 2025

Wed, 10 Sep 2025 15:21:13 GMT

One Big Beautiful Bill’s No Tax On Tips

Last month, we briefly discussed the One Big Beautiful Bill Act (“ OBBBA ”) and a few of its major features. One of those features mentioned was the “no tax on tips” provision. We received some inquiries on how it will be implemented, so without further ado, a little more detail on the 2025 “no tax on tips.” The U.S. Treasury Department issued a preliminary list of nearly 70 jobs that qualify (the list is at the bottom of this article) for “no tax on tips.” The occupations include a wide range of services spanning from Rickshaw drivers to digital content creators.

Employees and self-employed people may deduct qualified tips received in eligible jobs that “customarily and regularly receive tips,” effective for 2025 through 2028. Qualified tips are voluntary cash or charged tips received from customers, or through tip sharing. The annual deduction is capped at $25,000. For self-employed people, the deduction may not exceed an individual’s net income. The deduction phases out for taxpayers with modified adjusted gross income over $150,000, or $300,000 for joint filers.

The Congressional Budget Office projects the act will increase federal government deficits by $3.4 trillion over 10 years. Its cost will be partially offset by changes to Medicaid, the Supplemental Nutrition Assistance Program, and student loan programs.

The Yale Budget Lab estimated that there were about 4 million workers in tipped jobs in 2023, or about 2.5% of all U.S. employment, so the direct effect of the law on the workforce will likely be small. Tipped workers tend to be lower income.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

JOBS ELIGIBLE UNDER THE ‘NO TAX ON TIPS’ PROVISION

Beverage and food service

Bartenders

Wait staff

Food servers, non-restaurant

Dining room and cafeteria attendants and bartender helpers

Chefs and cooks

Food preparation workers

Fast food and counter workers

Dishwashers

Host staff, restaurant, lounge, and coffee shop

Bakers

Entertainment and events

Gambling dealers

Gambling change persons and booth cashiers

Gambling cage workers
Gambling and sportsbook writers and runners

Dancers

Musicians and singers

Disc jockeys, except radio

Entertainers and performers

Digital content creators

Ushers, lobby attendants, ticket takers

Locker room, coatroom, and dressing room attendants

Hospitality and guest services

Baggage porters and bellhops

Concierges

Hotel, motel, and resort desk clerks

Maids and housekeeping staff

Home services

Home maintenance, repair workers
Home landscaping and groundskeeping workers

Home electricians

Home plumbers

Home heating and air conditioning mechanics and installers

Home appliance installers and repairers

Home cleaning service workers

Locksmiths

Roadside assistance workers

Personal appearance and wellness

Skincare specialists

Massage therapists

Barbers, hairdressers, hairstylists, and cosmetologists

Manicurists and pedicurists

Shampooers
Eyebrow threading and waxing technicians

Makeup artists

Exercise trainers and group fitness instructors

Tattoo artists and piercers

Tailors

Shoe and leather workers, repairers

Personal services

Personal care and service workers

Private event planners

Private event and portrait photographers

Private event videographers

Event officiants

Pet caretakers

Tutors

Nannies and babysitters

Recreation and instruction

Golf caddies
Self-enrichment teachers

Recreational and tour pilots

Tour guides and escorts

Travel guides

Sports and recreation instructors

Transportation and delivery

Parking and valet attendants

Taxi and rideshare drivers and chauffeurs

Shuttle drivers

Goods delivery people

Personal vehicle and equipment cleaners

Private and charter bus drivers

Water taxi operators and charter boat workers

Rickshaw, pedicab, and carriage drivers

Home movers

Banking and Business – September 2025

Thu, 04 Sep 2025 20:53:32 GMT

Does the Expiration of the Statute of Limitations for a Mortgage Extinguish the Mortgage Lien?

Introduction

On August 20, 2025, the First District of the Illinois Appellate Court decided Chicago Title Land Trust Co. v. Watkin , 2025 IL App (1st) 241354 (August 20, 2025). At issue in Watkin was whether the expiration of the statute of limitations barring enforcement of a mortgage also extinguishes the mortgage lien. The First District determined that the mortgage lien is not automatically extinguished by the running of the related statute of limitations.

Background

In 2011, plaintiff Chicago Title Land Trust Company executed a mortgage in its capacity as trustee to a land trust in favor of the Defendant. With the beneficial owners of the land trust, plaintiff executed a “Secured First Mortgage Note” (Note) for a line of credit of up to $150,0000. The Note was secured by a mortgage on a parcel of real property with a maturity date of June 24, 2012. No payments were made under the Note, leading the defendant to seek foreclosure on the mortgage by filing a complaint on June 23, 2022. On February 2, 2023, the Circuit Court of Cook County granted a motion to dismiss the complaint without prejudice.

Later in 2023, the plaintiff filed a complaint to quiet title, alleging the mortgage was unenforceable because its statute of limitations expired. The plaintiff further argued the unenforceable mortgage signified a cloud on title and requested the court find defendant had no right or interest in the property. Defendant responded by filing a motion for summary judgment, claiming that her mortgage lien was still valid despite acknowledging the statute of limitations for enforcing the mortgage had run. Plaintiff responded with a cross-motion for summary judgment that the mortgage was no longer a lien on the property because the statute of limitations for enforcement had run. The circuit court granted the defendant’s motion and denied the plaintiff’s motion and cross-motion for summary judgment. The lien remained a valid encumbrance on title, preventing the plaintiff’s complaint for quiet title. Plaintiff appealed.

Decision

The Illinois Appellate Court affirmed the circuit court’s decision that the inability to enforce a mortgage lien does not extinguish the lien. While the statute of limitations bars the availability of a remedy, it does not affect the substantive right at issue. The statute of limitations is an affirmative defense that a party must raise to an allegedly time-barred claim or else forfeit. As such, the statute of limitations is a procedural bar, not a “substantive discharge of an underlying property interest.” The court stated that the expiration of the statute of limitations does not automatically extinguish the mortgage lien.

Instead, the court pointed to §13-116 of the Illinois Code of Civil Procedure, which provides a specific mechanism to extinguish a mortgage lien by operation of law after 20 years unless certain actions are taken by the mortgagee. Under §13-116, the mortgagee may either (1) record an affidavit stating the indebtedness remains unpaid or otherwise that the lien is in effect; or (2) record an extension agreement to extend the lien’s validity past the statutory 20-year period. If neither of these documents is recorded within 20 years from the debt’s maturity, the lien automatically becomes void. When a lien is valid within the 20-year period, the plaintiff may resolve a lien in a variety of ways to remove it from title. The plaintiff may satisfy the underlying debt obligation or negotiate a voluntary release with the mortgagee and file that mortgage release with the recorder of deeds.

Since the 20-year statutory extinguishment period had not elapsed and there was no evidence of a release or satisfaction of the mortgage, the lien continued to be a valid encumbrance on the title. The underlying debt had not been paid, nor did the mortgagee release the plaintiff from the debt. Being within the 20-year period, the mortgagee was not required to record an affidavit or extension agreement to preserve her interest. Therefore, because the mortgage still represented a valid interest in the property, it could not be considered a “cloud on title,” and the plaintiff’s quiet title action failed.

Takeaway

Under Illinois law, the expiration of the statute of limitations barring enforcement of a mortgage does not automatically extinguish the mortgage lien itself. There is a clear distinction between a remedy and a right. Unless the mortgage is statutorily extinguished, such as by §13-116 of the Illinois Code of Civil Procedure, the lien remains valid. In addition, a quiet title action cannot succeed if the opposing party retains a valid, even if unenforceable, interest in the property.

Thanks go to Michael Boland for his help in writing this article. For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555.

New Illinois Small Estate Affidavit Law: Key Updates for 2025

Tue, 26 Aug 2025 22:53:06 GMT

The Illinois General Assembly has updated the Probate Act of 1975, specifically Section 25-1, to improve the small estate affidavit process for settling estates without formal probate. ( See 755 ILCS 5/25-1 ). Effective immediately, this amendment raises the personal estate value limit and clarifies motor vehicle transfers, offering significant benefits for Illinois residents managing a loved one’s estate. At Lavelle Law, our experienced probate and estate planning attorneys are here to guide you through these changes and ensure your estate matters are handled efficiently.

What’s New in the Illinois Small Estate Affidavit Law?

Increased Estate Value Threshold: The maximum value for a decedent’s personal estate (excluding motor vehicles registered with the Illinois Secretary of State) has increased from $100,000 to $150,000. This change allows more estates to qualify for the streamlined small estate affidavit process, avoiding costly and time-consuming probate proceedings. 755 ILCS 5/25-1(a-5)(2)(A) .
Simplified Motor Vehicle Transfers: The amended law permits the transfer of motor vehicles via a small estate affidavit, regardless of the estate’s total value, in accordance with Section 3-114 of the Illinois Vehicle Code. This provision makes it easier to transfer vehicle titles, a common need for families settling estates. 755 ILCS 5/25-1(a-5)(2)(B) .
Streamlined Process for Small Estates: The small estate affidavit enables individuals, corporations, or financial institutions holding a decedent’s assets—such as bank accounts, personal property, or safe deposit box access—to distribute these assets to heirs or legatees without court involvement, provided no letters of office are outstanding and no probate petition is pending.
Affiant Responsibilities and Protections: The affidavit requires listing all assets, debts, and heirs or legatees. The affiant must pay valid claims against the estate before distribution and indemnify creditors or heirs for losses due to reliance on the affidavit. Non-resident affiants must submit to Illinois court jurisdiction and appoint an agent for service of process.
Effective Date: The changes apply to decedents whose date of death is on or after the effective date of this Act, as enacted by the 104th General Assembly. 755 ILCS 5/25-1(j) .

Why Choose Lavelle Law for Probate and Estate Planning?

Navigating probate and estate matters can be complex, but the updated Illinois small estate affidavit law offers a faster, cost-effective solution for qualifying estates. The estate administration and probate group at Lavelle Law is a robust team of seasoned attorneys who provide personalized guidance to ensure compliance with Illinois law. Whether you need assistance preparing a small estate affidavit, probating an estate, or administering an estate, we’re here to help.

Contact us today for a consultation with our Illinois probate attorneys. Contact attorney Nataly Kaiser at 847-705-7555 or nkaiser@lavellelaw.com to learn how we can help.

Who Gets the Pet in the Divorce?

Mon, 25 Aug 2025 22:06:25 GMT

A common consideration in a divorce case is who will get to keep the family pet. Illinois has a specific law that addresses this issue. In this video, divorce attorney Joe Olszowka explains the various factors the court considers when there is a pet involved in an Illinois family law case. Contact Joe for more information or for any other family law questions - jolszowka@lavellelaw.com or 847-705-7555.

Success Story – Lavelle Saves Homeowner from Real Estate Tax Bill Disaster

Wed, 20 Aug 2025 16:47:54 GMT

Background:

Our client purchased a residential home from a foreclosure sale for about $15,000. The client then renovated the property with over $100,000 worth of improvements. At the closing, he paid the taxes due on the property and deposited sufficient funds with the title company to pay the next installment. The title company failed to pay the taxes in a timely manner, even though they held our client’s payment in escrow, and the property was subsequently sold for delinquent taxes to a third-party buyer. The client’s efforts to redeem the taxes were unsuccessful on his own, so he hired Lavelle Law. We were able to make the title company pay the $15,000 it owed under the title policy, but said policy did not cover the improvements to the property, resulting in a significant 6-figure loss to our client. Lavelle was also able to negotiate a repurchase agreement with the tax buyer, which allowed our client to stay and live with his family in the residence while Lavelle moved for judgment against the Cook County Indemnity Fund since our client was an innocent party. Lavelle obtained judgment against the Indemnity Fund for 90% of the value of the property, $245,000, which it then assigned to the tax buyer in exchange for reconveyance of the property back to our client and payment of attorney fees he was forced to expend in Court to rectify this wrong.

Challenges:

This involved many parties, various property tax laws, the Indemnity Fund, and a novel approach to solving this problem for our client.

Result:

In the end, our client clawed back ownership of his family’s home and was made whole on the attorney fees he was forced to pay to rectify this unfortunate situation.

“Matthew Sheahin and his team at Lavelle Law are the best at what they do. I was told by one attorney at another law firm that my case wasn’t even credible enough to fight for or take on, so I found these guys at Lavelle Law, and they got the job done.”

Why the Motor Vehicle Franchise Model Enhances Competition and Protects Consumers More Than the Direct-to-Consumer Model from OEMs like Tesla

Thu, 14 Aug 2025 22:50:30 GMT

Recently, more OEMs like Tesla, Rivian, Lucid, and Polestar have implemented a direct-to-consumer approach that many state motor vehicle dealer laws are intended to prohibit. On May 27, 2025, the National Automobile Dealers Association (NADA) submitted a Public Comment , explaining:

the franchise model is the best new-car sales model for consumers;
franchise laws are an appropriate exercise of state power in the context of federalism; and
the franchise model does not create any of the harms that its opponents assert.

This article summarizes NADA’s statement defending state franchise laws.

First, the modern dealer franchise model is the most effective means of distribution for new vehicle sales. Why? NADA explains that a recent study conducted by Oliver Wyman provides conclusive evidence that the franchise model creates salutary intra-brand competition and allows for customer-by-customer price optimization, both of which provide consumers with a better overall experience and lower end price. The intra-brand competition allows for geographically close dealers to compete with one another for the local business, giving the dealers the ability to provide specialized financing and trade-in options that other business models cannot.

In addition to furnishing the lowest price to consumers, the franchise dealer model helps consumers by providing service and warranty repairs for vehicles, even if the OEM were to go out of business (as seen in 2008 and 2009 with the bankruptcies of Saad, Frisker, and Suzuki). The benefit to consumers under warranty is even greater because now OEMs must reimburse dealers for maintenance, and the consumer ultimately saves. The dealer, as the intermediary, creates a shield for the consumer from predatory OEM tactics, such as producing low-quality vehicles for a marginal profit at the cost of consumer safety.

Second, because federal antitrust laws significantly constrain the ability of dealers to act collectively against OEMs, the only way to protect consumers from the broad overreach of OEM power is through state franchise laws. The abuse of power by OEMs is well-documented, ranging from threatening termination or a shorter-term franchise agreement and pressuring dealers to accept slow-moving inventory, to coercing dealers to make unnecessary, costly facility changes and engage in two-tiered pricing where some dealers receive preferential pricing from the OEM. After the federal antitrust laws shackled the modern dealer franchise from seeking and exercising economic self-help, the states determined that the importance of franchise laws is so paramount that all 50 states have enacted dealership laws.

Third, NADA emphasizes that the rise of direct-to-consumer electric vehicle companies such as Tesla, Rivian, Lucid, and Polestar creates serious risks for consumers. The data shows that franchise dealers offer much greater vehicle options at lower prices and are on track to sell more electric vehicles than direct-selling OEMs in 2025. Moreover, a consumer’s ability to get a car serviced at one of these direct-to-consumer OEMs can be extremely difficult. For example, there are only three Rivian facilities in Illinois that can perform repairs on Rivian vehicles.

Lavelle Law’s dealership practice group represents dealers in Illinois and Wisconsin in a variety of issues impacting their franchise. Contact Sarah Reusché at sreusche@lavellelaw.com or 847-241-1795 for a free consultation.

Essential Guide to Marital Agreements, Collaborative Divorce, and Child Custody

Mon, 11 Aug 2025 23:15:25 GMT

A Lavelle Law Breakfast Briefs Seminar

Essential Guide to Marital Agreements, Collaborative Divorce, and Child Custody

A Lavelle Law Breakfast Briefs Seminar

September 17, 2025

7:45 AM – 9:00 AM
1933 N. Meacham Rd., Suite 127
Schaumburg, IL 60173

Join Lavelle Law for an informative presentation tailored to individuals seeking expert guidance on critical family law matters. Our experienced family law attorneys will break down three key areas — prenuptial/postnuptial agreements, collaborative divorce, and child custody — offering you clear, practical solutions to protect your interests and achieve peace of mind during life’s transitions.

Designed for both individuals and professionals, including financial advisors, therapists, and other trusted advisors, the seminar will provide practical legal guidance for navigating complex and unique family law matters.

Prenuptial and Postnuptial Agreements: Protect your financial future with our expertise in drafting ironclad prenuptial and postnuptial agreements. We’ll walk you through how these agreements safeguard your assets, clarify financial expectations, and provide security for you and your spouse, whether you’re planning to marry or strengthening your existing marriage.

Collaborative Divorce: Explore how our collaborative divorce approach can help you resolve your separation amicably, saving time, money, and emotional stress. Learn how our skilled team works with you, your spouse, and neutral professionals to craft fair agreements tailored to your unique needs, avoiding the adversarial nature of courtroom battles.

Child Custody: Understand your options for child custody with our client-centered guidance. We’ll explain legal and physical custody, how courts prioritize your child’s best interests, and how we advocate for parenting plans that support strong family bonds. Discover how we can help you navigate co-parenting or modify existing custody arrangements with confidence.

This presentation will empower you with the knowledge to make informed decisions. Reserve your spot today to learn how Lavelle’s family law team can support you through every step of your family law journey.

Doors will open at 7:45 AM for a complimentary continental breakfast, and the presentation will begin at 8:00 AM. This is a free event, but registration is required as seating is limited .

Meet Our Presenters

Joseph A. Olszowka has over 32 years of experience handling family law cases. Mr. Olszowka has successfully litigated hundreds of cases, including complex divorce, parental allocation, parentage, child support, business valuation, adoption, and domestic violence cases. Olszowka attended John Marshall Law School, has a certificate in family law, is on the DuPage and Will County approved Child Representative/Guardian ad Litem appointment list, and is an approved mediator in DuPage County and Will County for family law cases.

Annette K. Corrigan came to Lavelle Law with more than 20 years of experience in civil litigation. For the past 10 years, Annette has focused her practice exclusively in family law and has specialized training and experience as a Guardian ad Litem, divorce mediator, and collaborative divorce attorney. Annette not only handles divorces and legal separations, but she also represents clients in premarital and post-nuptial agreement matters, guides clients through parentage cases and relocations, expertly handles child support and support modification cases, and, when necessary, takes on some of the more difficult family law matters that result in court actions in the domestic violence arena. Annette has recently added to her area of expertise in family law her representation of Guardians of minors and disabled adults.

Annette attended Marquette University for both her undergraduate and legal education. She obtained her licenses to practice law between 1989 – 1992 in the States of Wisconsin, Missouri, Kansas, and Illinois (but is currently only practicing in Illinois). She is a member of the Cook, DuPage, Will, and Kane County Bar Associations, as well as a long-term member of the Illinois State Bar Association. Annette has written and presented on the topic of alternative dispute resolution methods relating to pre- and post-decree divorce cases. She is a firm advocate for keeping families, especially children, out of the courtroom whenever possible.

Kristina Buchthal Alkass is a domestic violence, divorce, and custody attorney. Kristina joined Lavelle Law the day after her last law school exam more than 16 years ago, and she has been a family law attorney at Lavelle Law ever since. Kristina received her Juris Doctor from DePaul University College of Law. She earned a Bachelor of Science in Journalism from Northwestern University’s Medill School of Journalism. Prior to becoming an attorney, Kristina was a news reporter at the Associated Press, the Indianapolis Star, Crain’s Chicago Business, and Restaurants and Institutions Magazine.

Kristina is a tireless advocate for custodial parents and survivors of domestic abuse. She is licensed to practice law in the State of Illinois, the United States District Court for Northern District of Illinois, and the United States Seventh Circuit Court of Appeals.

Tim’s Tax News on the Tenth – August 2025

Sun, 10 Aug 2025 15:41:00 GMT

One Big Beautiful Bill

On August 7, 2025, the IRS announced that, as part of its phased implementation of the July 4 ^th One Big Beautiful Bill Act (“ OBBBA ”), there will be no changes to certain information returns or withholding tables for tax year 2025 related to the new law. In the press release, the IRS outlined key points for tax year 2025 relating to the OBBBA provisions. Three relevant changes to tax filers effective for 2025 through 2028 are discussed below.

First , the key points for forms, withholdings, and procedures for TY 2025 relating to the OBBBA provisions are:

All payroll returns, including Form W-2, existing Forms 1099, and Form 941, will remain unchanged for TY 2025.
Federal income tax withholding tables will not be updated for these provisions for TY 2025.
Employers and payroll providers should continue using current procedures for reporting and withholding.

The IRS’s intention in doing so is to avoid disruptions during the tax filing season and to give the IRS, businesses, and tax professionals time to effectively implement the necessary changes.

Second , the IRS highlighted that effective for 2025 through 2028, there are new deductions for qualified tips, qualified overtime, interest paid on qualified vehicle loans, and senior citizen deductions. Itemizing and non-itemizing employees and self-employed individuals may deduct up to $25,000 for qualified tips received in occupations listed by the IRS as customarily and regularly receiving tips. By October 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before Dec. 31, 2024. Notably, Self-employed individuals in a Specified Service Trade or Business (SSTB) under section 199A and employees whose employer is in an SSTB are not eligible. Tip deductions phase out for taxpayers with modified adjusted gross income above $150,000 ($300,000 for joint filers). Employers and other payors must file information returns with the IRS and furnish statements to taxpayers showing certain cash tips received and the occupation of the tip recipient. The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and payors subject to the new reporting requirements.

Additionally, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay required by the Fair Labor Standards Act (FLSA) and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual. Single itemizing and non-itemizing taxpayers can deduct up to $12,500 ($25,000 for joint filers) for qualifying overtime. Overtime deductions phase out for taxpayers with modified adjusted gross income above $150,000 ($300,000 for joint filers). Employers and other payors are required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year. Again, the IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and payors subject to the new reporting requirements.

Also, itemizing and non-itemizing taxpayers may deduct up to $10,000 of interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. Lenders or other recipients of qualified interest must file information returns with the IRS and furnish statements to taxpayers showing the total amount of interest received during the tax year. Used vehicle and lease payments do not qualify for the deduction. The deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers). To qualify for the deduction, the interest must be paid on a loan that is (i) originated after December 31, 2024; (ii) used to purchase a vehicle originally used by the taxpayer; (iii) the vehicle is for personal use; and (iv) secured by a lien on the vehicle. A qualified vehicle is a car, minivan, van, SUV, pick-up truck, or motorcycle, with a gross vehicle weight rating of less than 14,000 pounds and that has undergone final assembly in the United States.

Lastly, individuals who are age 65 and older may claim an additional deduction of $6,000 ($12,000 for married couples where both spouses qualify), whether itemizing or non-itemizing. To qualify, the taxpayer must attain the age of 65 on or before the last day of the taxable year. Further, the deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers). This deduction is also available to both itemizing and non-itemizing taxpayers. The taxpayer must include their Social Security number of the qualifying individual(s) on the return and file jointly, if married, to claim the deduction.

Third , the IRS, in looking ahead to tax year 2026, has stated that they are working on new guidance and updated forms for tax year 2026. The Treasury Department and the IRS are preparing additional guidance for both reporting entities and individual taxpayers, as the IRS confirmed there will be changes to how tip and overtime pay are reported. The IRS further notes that more information will be shared in the coming months about how taxpayers can claim OBBBA-related tax benefits when they file their returns.

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Success Story – Saved Client $1 Million in Estate Tax

Wed, 30 Jul 2025 16:41:35 GMT

Background:

Lavelle Law represented a client with a taxable estate for Illinois estate tax purposes.

Challenges:

Client owed a variety of difficult-to-value assets for estate tax purposes.

Result:

Due to Lavelle’s extensive knowledge in estate and gift tax, we were able to generate a combined federal and Illinois estate tax savings of $1 million for the client.

Know the Law Before You Hit Record! Comments on the Illinois Eavesdropping Statute

Tue, 29 Jul 2025 16:59:49 GMT

Do you know it’s a felony in Illinois if you record a conversation without consent? The Illinois Eavesdropping Statute prohibits the secret recording of private conversations—whether in person, by phone, or online—without the consent of all parties involved. Protect yourself – Get consent before you hit record! Lavelle Law attorney, Nataly Kaiser, explains the statute and shares tips on best practices when you are recording a conversation.

Summer Special! Discounted Rate on Powers of Attorney for College-bound Students and Young Adults

Thu, 24 Jul 2025 21:11:53 GMT

Summer Special! - Now through 10-1-25, Lavelle Law is offering a special discounted rate on powers of attorney for college-bound students and young adults. Don't send your child to college without POA docs in place! Contact Attorney Jackie Luthringshausen to start the process. jluthringshausen@lavellelaw.com or 847-705-7555.

Summary of the One Big Beautiful Bill Act and Its Tax Implications

Tue, 22 Jul 2025 15:38:10 GMT

The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, as Pub. L. No. 119-21, permanently extends and modifies key provisions from the 2017 Tax Cuts and Jobs Act (TCJA) while introducing new tax benefits and limitations. The law affects individuals, seniors, children, businesses, and charitable organizations, aiming to simplify long-term tax planning by making many provisions permanent. However, some benefits, such as clean energy credits and senior deductions, have temporary sunsets, and complexities arise with non-grantor trusts and other provisions. This summary highlights the OBBBA’s key changes, organized into tables for clarity, covering individual tax provisions, estate planning, charitable contributions, and business tax benefits.

Tax Changes for Individuals

The OBBBA makes the TCJA’s individual tax rates permanent, adjusts deductions, and introduces temporary relief for specific groups. Below is a summary of the major changes.

1. Permanent Tax Rates and 2025 Brackets

The TCJA’s tax rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent and indexed for inflation post-2025. An additional year of inflation adjustment (from 2017) applies to the 10% and 12% brackets starting in 2026 to provide middle-class relief.

The dollar amounts for each tax bracket in 2025 set by the IRS are as follows:

2. Standard and SALT Deductions

Standard Deduction: Permanently increased and indexed for inflation.
SALT Deduction: Temporarily increased from $10,000 to $40,000 (2025–2029), with a phase-out for high earners and a reversion to $10,000 in 2030.

2025 Standard and SALT Deduction amounts are:

3. Child and Adoption Credits

Child Tax Credit: Permanently increased to $2,200 per child ($1,400 refundable), with phase-out thresholds at $200,000 (single) or $400,000 (joint).
Adoption Credit: Permanently set at $5,000 (refundable), indexed for inflation.

4. Temporary Deductions (2025–2028)

Senior Bonus Exemption: $6,000 deduction for taxpayers 65+ (phases out at $75,000 single/$150,000 joint).
Vehicle Interest: Up to $10,000 for interest on loans for US-made passenger vehicles.
Qualified Tips: Up to $25,000 deduction for tips in specified industries, phasing out above $150,000 (single)/$300,000 (joint).
Overtime: Up to $12,500 (single)/$25,000 (joint) deduction for qualified overtime, with similar phase-out.

5. Other Individual Changes

Personal Exemption: Repealed permanently.
Alternative Minimum Tax (AMT): Higher exemptions extended, with faster phase-out for high earners.
Home Interest Deduction: Limited to $750,000 of acquisition indebtedness; home equity loan interest eliminated.
Miscellaneous Itemized Deductions: Permanently eliminated, except for certain educator expenses.
529 Plans: Expanded to cover more K-12, homeschool, and postsecondary expenses.
Pease Limitation: Replaced with a new formula reducing itemized deductions for high earners.

6. Green New Deal Phase-Outs

Clean energy credits (e.g., clean vehicles, energy-efficient homes) will phase out between September 2025 and June 2026.

Estate Planning & Charitable Contributions

The OBBBA enhances estate planning opportunities and modifies charitable contribution rules.

1. Gift and Estate Tax Exemptions

Federal Gift/Estate Tax: Permanently increased to $15M (single)/$30M (joint), indexed for inflation from 2026.
Generation-Skipping Transfer (GST) Tax: Matches the $15M/$30M exemption.

2. Trump Accounts

A new IRA-like account for minors, with $5,000 annual contributions and a pilot program providing $1,000 seed money for children born 2025–2029. Withdrawals are restricted until age 18.3.

3. Charitable Deduction Changes:

Tax Changes for Businesses

The OBBBA provides significant benefits for businesses, particularly small businesses and pass-through entities.

1. Qualified Small Business Stock (QSBS)

Definition Expanded: Small business asset cap raised from $50M to $75M.
Capital Gains Exclusion: Tiered based on holding period (50% for 3+ years, 75% for 4+ years, 100% for 5+ years).
Exclusion Limit: Increased to $15M or 10x investment (whichever is greater).

QSBS Capital Gains Exclusion:

2. Qualified Business Income Deduction Changes

20% Deduction: Permanent for partnerships, LLCs, S-Corps, and sole proprietors (not C-Corps).
Minimum Deduction: $400 for taxpayers with ≥$1,000 qualified business income.
Phase-Out: Increased to $75,000 (single)/$150,000 (joint).

3. Other Business Provisions

Bonus Depreciation: Permanent 100% for qualified property acquired after January 19, 2025.
Section 179 Expensing: Increased to $2.5M (phase-out at $4M), indexed for inflation.
Research & Experimentation: Immediate deduction for domestic costs, retroactive to 2022 for small businesses.
Employer Credits:
Childcare credit increased to $500,000 ($600,000 for small businesses).
Paid family/medical leave credit made permanent.
Student loan payment exclusion ($5,250) made permanent and indexed.
Tip Credit: Expanded to include barbering, nail care, esthetics, and spa industries.
Business Interest: Higher deduction limit based on EBITDA (not EBIT) starting in 2025.
Excess Business Loss Limit: Retained at $262,000 (single)/$524,000 (joint), with disallowed losses carried forward as net operating losses.

4. Qualified Opportunity Zones (QOZ/RQOZ)

Rural Expansion: New Rural QOZ category for areas with <50,000 population.
Capital Gains Deferral: Available for investments in QOZ or RQOZ funds.
Basis Step-Up: 10% for QOZ (5 years), 30% for RQOZ (5 years).
Designation Period: 10-year rolling period starting July 1, 2026.

5. Green New Deal Phase-Outs

Clean vehicle credits, hydrogen production credits, and energy-efficient building deduction will phase out between June 2026 and January 2028.

Conclusion

The OBBBA establishes a robust framework for tax planning by making many TCJA provisions permanent while introducing new benefits like Trump Accounts and expanded QSBS exclusions. However, temporary provisions (e.g., SALT relief, senior exemptions) and clean energy credit sunsets require strategic timing. Thanks go to our summer associate, Paul Slade Morley, for his assistance writing this article.

For detailed guidance, contact Steve Migala at smigala@lavellelaw.com or (847) 705-7555.

The Impact of New Tax Bill - The One Big Beautiful Bill Act - a videocast

Mon, 21 Jul 2025 17:46:59 GMT

Lavelle Law Shareholder Steven Migala and DHJJ Financial Principal Ed Brooks join host Jim Mitchell for an in-depth look at the new U.S. tax legislation, the One Big Beautiful Bill Act, and discuss how it will impact both businesses and individuals.

For detailed guidance on how the OBBA impacts you or your business, contact Steve Migala at smigala@lavellelaw.com or 847-705-7555.

The Impact of New Tax Bill - The One Big Beautiful Bill Act

Mon, 21 Jul 2025 17:18:07 GMT

How Do I Get the Other Party to Pay My Attorney’s Fees?

Tue, 15 Jul 2025 20:34:01 GMT

In the United States, the "American Rule" generally requires each party in a legal dispute to cover their own attorney's fees, regardless of the case's outcome. However, exceptions exist where a judge may order one party to pay the other's attorney’s fees in specific circumstances. Lavelle Law attorney Sarah Reusché describes the two exceptions to the American Rule in Illinois civil litigation. For more information on this topic or other legal issues, contact Sarah at sreusche@lavellelaw.com or 847-705-7555.

Reconciliation of Common Area Maintenance Charges, Taxes, and Insurance: What to Know

Mon, 14 Jul 2025 15:26:34 GMT

In commercial leases, particularly those involving retail or office spaces, tenants typically pay not only base rent but also a share of additional operating expenses. These include Common Area Maintenance (CAM) charges , property taxes , and insurance premiums . The reconciliation of these expenses is a key process that ensures both landlord and tenant are properly accounting for their respective financial responsibilities. Here's an overview of how this reconciliation works and what each party should expect. In addition, below are strategies a tenant may use in order to protect themselves.

What is Reconciliation?

Commercial leases typically require the tenant to make a monthly payment to the landlord for reimbursement of a wide range of operating expenses. The monthly payment, though, is based on an estimate. Reconciliation is the annual process by which the landlord compares the estimated charges collected from the tenant throughout the year with the actual expenses incurred. If the estimates were too low, the tenant owes the landlord the difference; if too high, the landlord may owe the tenant a refund or credit. If tenants are not careful, they may be unfairly overcharged by the landlord. Or alternatively, if the lease is not carefully drafted, a landlord may be unable to pass on costs to the tenant.

Components Subject to Reconciliation

1. Common Area Maintenance (CAM) Charges: These include costs to maintain shared areas of the property, such as:

Landscaping
Parking lot maintenance
Janitorial services for common areas
Security services
Repairs to lobbies, elevators, and hallways

2. Real Estate Taxes: These are the landlord’s property taxes, often passed through to tenants based on their pro-rata share of the property.

3. Insurance Premiums: The landlord’s cost to insure the property against risks like fire, vandalism, and liability is typically shared among tenants.

In addition, the parties may also shift risks and move the responsibility for the repair and or replacement of components of the premises. A tenant must guard against a deceptive way of passing on such costs of which are otherwise the responsibility of the landlord.

How the Reconciliation Process Works

1. Estimated Payments Throughout the Year: At the beginning of each lease year, the landlord provides the tenant with a budget estimate of CAM, taxes, and insurance. The tenant then pays monthly installments based on this estimate.

2. End-of-Year Actual Expense Statement: After the calendar or fiscal year ends, the landlord compiles actual expense data. This usually happens within 90 to 120 days after year-end.

3. Issuance of Reconciliation Statement: The landlord issues a reconciliation statement comparing:

Estimated expenses paid by the tenant
Actual expenses incurred
Difference (credit or shortfall)

4. Tenant Review Period: Many leases allow tenants a period (e.g., 30–60 days) to review supporting documentation and, if needed, audit the charges.

5. Payment or Credit:

If actual expenses exceed estimates, the tenant pays the shortfall.
If actual expenses are less, the landlord credits or refunds the overpayment.

Tenant Protections and Audit Rights

Most leases include provisions allowing tenants to:

Request supporting documents (invoices, tax bills, insurance policies)
Dispute charges within a set time
Audit the landlord’s books, often at the tenant’s expense unless an error above a certain threshold (e.g., 5%) is found

Best Practices for Reconciliation

For Landlords:

Provide detailed and transparent reconciliation statements
Maintain accurate records of all expenses
Communicate any major cost changes during the year

For Tenants:

Understand lease terms regarding additional rent
Track monthly estimated payments
Review annual statements carefully
Consider auditing if discrepancies appear significant

Strategies Tenants Can Use to Protect Themselves

To avoid being overcharged or caught off guard by unexpected costs, tenants should consider the following proactive strategies:

Negotiate Caps on Increases:
Ask for an annual cap (fixed or percentage-based) on increases in CAM charges, especially for controllable costs (e.g., landscaping, maintenance, janitorial services).
Clearly Define Exclusions in the Lease:
Ensure the lease specifies which expenses cannot be passed through to tenants (e.g., landlord’s legal fees, capital improvements, or costs related to other tenants' defaults).
Request Annual Budgets and Timely Reconciliations:
Require that landlords provide detailed annual budgets and reconcile expenses within a set timeframe (e.g., 90–120 days after year-end).
Secure Audit Rights:
Include strong audit rights with access to source documents and specify conditions under which the landlord must pay for audit costs (e.g., if a discrepancy exceeds 3–5%).
Limit Administrative Fees:
Some landlords add administrative or management fees (e.g., 10–15% of CAM). Tenants should negotiate a reasonable cap or seek to exclude them.
Ask for Detailed Breakdowns:
Require that reconciliation statements itemize each category of expense, rather than bundling all costs into a lump sum.
Review Reconciliations Annually:
Even if no discrepancies are suspected, it’s wise to review each year’s statement with a professional, especially if costs rise significantly without explanation.
Push for Pro-Rata Fairness:
Ensure your pro-rata share of expenses is calculated fairly, especially in mixed-use or partially vacant buildings, so you’re not subsidizing non-contributing spaces.

Conclusion

The reconciliation process ensures fairness and accuracy in the financial relationship between landlords and tenants. While it can be complex, especially in large or multi-tenant properties, understanding the process helps both parties avoid disputes and maintain transparency. With clear lease terms and timely communication, reconciliation can be a smooth and predictable part of the lease cycle. However, it is critical that the parties use an attorney who understands this process and that precise language consistent with the economic agreement of the parties.

If you would like more information about the reconciliation process or to schedule an initial consultation with one of our experienced attorneys, contact Ted McGinn at tmcginn@lavellelaw.com or 847-705-7555.

Banking and Business – July 2025

Fri, 11 Jul 2025 21:48:11 GMT

Delaware Supreme Court’s Analysis of Indemnification Notices in Merger and Escrow Agreements

Summary

Attorneys drafting or reviewing indemnification clauses and notice provisions in a sale or acquisition governed by Delaware law should be aware of the recent Delaware Supreme Court decision in Thompson Street Capital Partners IV L.P. v. Sonova U.S. Hearing Instruments, LLC , No. 166, 2024, 2025 Del. LEXIS 157 (Apr. 28, 2025). In Thompson , the Delaware Supreme Court reversed and remanded for further fact-finding the Chancery Court's Dismissal of the lawsuit brought by Thompson Street Capital Partners IV L.P. (“Thompson”) seeking to declare that Sonova United States Hearing Instruments, LLC (“Sonova”) had not complied with the Merger Agreement's indemnification notice requirements. The Delaware Supreme Court reversed the Delaware Court of Chancery’s order holding that Sonova’s indemnification notice met the requirements outlined in the parties' integrated merger and escrow agreements.

The case examines the question of whether noncompliance with the timing and specificity requirements in a notice provision may be excused. Here, the Delaware Supreme Court determined Sonova’s noncompliance may be excused if the timing and specificity requirements were not material to the agreement and the noncompliance would result in a disproportionate forfeiture. Because the facts relating to materiality and disproportionate forfeiture were not sufficiently developed in the record, the Delaware Supreme Court reversed and remanded the case for further development of these points.

Background

In 2022, the parties engaged in multiple transactions through which Sonova acquired certain audiology practices. The transactions were governed by two integrated agreements: a Merger Agreement and an Escrow Agreement. These agreements governed the process by which Sonova could submit claims to recover alleged damages from the Indemnity Escrow Fund in the event of a Thompson breach.

Post-closing, Sonova provided notice in writing, alleging that the billing practices at the audiology practices were not in compliance with applicable laws and reimbursement rules. Sonova sought unquantified damages exceeding the full amount of the indemnification fund. Sonova argues that it complied with the notice requirements in Section 9.3.2 of the Merger Agreement. Thompson filed a complaint with two counts. Count I sought a Declaratory Judgment declaring that Sonova had not complied with the Merger Agreement’s indemnification notice requirements, and Count II sought specific performance or a mandatory injunction requiring Sonova to execute a joint instruction letter directing the escrow agent to release the contents of the Indemnity Escrow Fund to Thompson. The Chancery Court found that Sonova’s notice was sufficient to meet the requirements of the Escrow Agreement, but did not determine whether Sonova met the more stringent notice requirements in Section 9.3.2 of the Merger Agreement, which required Sonova to provide reasonably prompt written notice, but in any event not later than 30 days after it became actually aware of such claim, to describe the claim with reasonable detail, including the justification for the demand under the Merger Agreement with reasonable specificity, to provide copies of all available material written evidence thereof, and an estimated amount of damages if reasonably practicable. The last sentence of Section 9.3.2 stated that “The Purchaser Indemnified Parties shall have no right to recover any amounts pursuant to Section 9.2 unless the Purchaser notifies the Members’ Representative in writing of such Claim pursuant to Section 9.3 on or before the Survival Date.”

Decision

The Delaware Supreme Court first determined that the Court of Chancery erred in focusing on the Escrow Agreement instead of the notice requirements in Section 9.3.2 of the Merger Agreement, finding that both agreements are integrated, thus requiring the parties to comply with the provisions of both agreements.

The court then held that the final sentence of Section 9.3.2(a) of the Merger Agreement unambiguously creates a condition precedent that provides for a forfeiture due to Sonova's noncompliance with the notice requirements. The Delaware Supreme Court determined that the condition precedent required Sonova to comply with the stricter notice requirements of Section 9.3 and stated a consequence for noncompliance. The court also determined that Thompson pled sufficient facts such that it was reasonably conceivable that Sonova violated the notice requirements.

The court next turned its attention to whether the forfeiture from noncompliance with the condition precedent could be excused. It cited Section 229 of the Restatement (Second) of Contracts, which provides that "[t]o the extent that the non-occurrence of a condition would cause disproportionate forfeiture, a court may excuse the non-occurrence of that condition unless its occurrence was a material part of the agreed exchange.” Here, while the court found it was unable on this record to resolve the materiality and disproportionate forfeiture questions, it provided a framework for the lower court to use in its analysis. The Delaware Supreme Court instructed the lower court to look at the materiality issue first, such that if the occurrence of the condition is a material part of the agreement, then the proportionality analysis is not applied and the forfeiture cannot be prevented. But if the condition is not material, then the court is to engage in the proportionality analysis. Regarding materiality, the court listed the materiality factors found in Section 229 of the Restatement (Second) of Contracts:

(a) the extent to which the injured party will be deprived of the benefit which he reasonably expected;

(b) the extent to which the injured party can be adequately compensated for the part of that benefit of which he will be deprived;

(d) the likelihood that the party failing to perform or to offer to perform will cure his failure, taking account of all the circumstances, including any reasonable assurances; and

(e) the extent to which the behavior of the party failing to perform or to offer to perform comports with standards of good faith and fair dealing

If the lower court determines that the provision was not material, then it should turn to the proportionality prong of Section 229 to determine if the forfeiture was disproportionate, which requires the lower court to weigh the extent of the forfeiture by Sonoma against the importance to Thompson of the risk from which it sought to be protected and the degree to which that protection will be lost if the nonoccurrence of the condition is excused to the extent required to prevent forfeiture.

Takeaways

Among the takeaways from the Thompson case are the following:

Ensure notice provisions are consistent throughout those agreements that are to be integrated. If they are not, the more stringent notice provision may prevail. The Delaware Supreme Court stated that integrated agreements must be read together, and so required compliance with both agreements, thus ensuring the more stringent language is adhered to.
The party desiring strict compliance with a provision’s requirements should consider the purpose of the requirements and develop ample evidence that the parties, in negotiating the requirements, considered them to be material, in order to avoid the other party from being excused for its noncompliance with them. The party desiring strict compliance should aim to develop the Section 229 materiality factors listed above.

Thanks go to our summer associate, Slade Morley, for his help writing this article. For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555.

Tim’s Tax News on the Tenth – July 2025

Thu, 10 Jul 2025 15:20:39 GMT

Update on Illinois Tax Changes

Beginning July 1, Illinois residents will face a series of tax increases related to the Fiscal Year 2026 budget, which takes effect from July 1, 2025, to June 30, 2026. These increases are from the $55+B state budget that is supposed to generate $700+M of new taxes ranging from gasoline, short-term rentals, tobacco, sports gambling, and much more. The gasoline tax will increase from 47 cents per gallon to 48 cents per gallon, and diesel fuel will increase from about 54 cents to 55 cents. The increased gasoline tax is based on lawmakers' votes in 2019 to tie future increases to inflation, with the purpose of the tax to fund needed infrastructure improvements throughout Illinois.

Short-term rental companies such as Airbnb and VRBO will be subject to and must pay the Illinois state Hotel Operators’ Occupation tax. The hotel tax is on top of other state and local lodging taxes already in effect for short-term rentals (under 30 days). Additionally, one of the most significant increases is the state tax increase on most tobacco products, such as chewing tobacco and cigars, rising from 36% to 45%. Vapes, and other smokeless nicotine products, such as Zyn, are seeing taxes on their products triple, increasing from 15% to 45%.

The biggest shock, however, is the recent approval of the Illinois state tax on sports betting. The tax is aimed at major sports betting websites such as FanDuel and DraftKings in particular. The new tax applied to sports betting affects each wager that a sportsbook accepts. The tax is 25 cents per bet for the first 20 million wagers, and 50 cents per wager after that. Flutter, the owner of FanDuel, said on June 10, 2025, that they will be introducing a per-wager transaction fee to offset the new tax the state of Illinois has instituted. The fee is set at 50 cents per wager; however, Flutter states they would immediately remove the transaction fee cost shall the state reverse its tax decision. DraftKings has not explicitly stated that they would be adding a charge, but stated that they would be releasing a statement soon, implying that they will follow FanDuel in implementing a transaction charge.

Illinois state law requires you to withhold lottery, wagering, and gambling winnings of more than $1,000. Payments received in taxable years ending on or after December 31, 2021, of winnings from sports wagering must be conducted under the Sports Wagering Act and are allocable to the state of Illinois.

If you meet the threshold of winnings from the Illinois lottery, gambling, pari-mutuel wagering, and or sports wagering, you must complete an Illinois Department of Revenue Form IL-5754 Statement by Person Receiving Gambling Winnings. This form provides a record of who received winnings and to whom the winnings are taxable. Notably, the payer will use the information on the Form IL-5754 to prepare Federal Form W-2G.

Importantly, if you receive payment of Illinois lottery winnings of $1,000 or more, you have met the minimum threshold and must file and complete a Form IL-5754. Furthermore, gambling, pari-mutuel wagering, and sports wagering winnings that are subject to federal withholding (more than $5,000) must also complete a Form IL-5754. Note, in Illinois, you must keep track of your Form IL-5754, and by January 31 of each year, you must submit your W-2G electronically to the Illinois Department of Revenue. Additionally, if you withheld from gambling winnings, you must give each recipient two copies of federal Form W-2G. Lastly, it is important you keep any undeliverable Form W-2G for at least three years after the date you are required to give the form to the recipient.

Federal Form W-2G is for Certain Gambling Winnings. The form should be completed and filed to report gambling winnings and any federal income tax withheld on those winnings. The requirements for reporting and withholding depend on:

The type of gambling
The amount of the gambling winnings, and
The ratio of the winnings to the wager

The IRS website states, the withholding rate under Section 3402(q) applicable to winnings of $5,000 or more from sweepstakes, wagering pools, certain parimutuel pools, jai alai, and lotteries is 24%. ⁷ This rate appears in the Withholding, Regular Gambling Withholding for Certain Games, Noncash payments, and Backup Withholding sections under Specific Instructions for Form W-2G; the Withholding section under 1. Horse Racing, Dog Racing, Jai Alai, and Other Wagering Transactions Not Discussed Later; the Withholding section under 2. Sweepstakes, Wagering Pools, and Lotteries; and the Withholding and Forms W-2G for Multiple Winners section under Specific Instructions for Form 5754.

If you are an avid Bingo, Keno, or Slot player, you may also have to report your income. The IRS requires a payee of gambling winnings meeting the reporting thresholds for bingo and slot machines ($1,200), keno ($1,500), and a payee of gambling winnings meeting the withholding thresholds from horse racing, dog racing, jai alai, sweepstakes, wagering pools, lotteries, and certain other wagering transactions, but not from a state-conducted lottery, you must present two forms of identification, one of which must include the payee's photo.

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Banking and Business – June 2025

Mon, 30 Jun 2025 23:07:02 GMT

Contaminated Cilantro and the Need to Provide Notice to a Seller of a Breach of the Implied Warranty of Merchantability

Background

Restaurant patrons allegedly became ill from eating contaminated cilantro and filed personal injury lawsuits against two Chicago restaurants. As part of the litigation, the distributor who sold the cilantro to the restaurants, Martin Produce, Inc. (Martin), filed a third-party complaint for contribution against the wholesalers from whom it purchased the cilantro, including Jack Tuchten Wholesale Produce, Inc. (Tuchten), alleging the wholesalers breached an implied warranty of merchantability. Before Martin brought its claim, Tuchten was a named defendant in the underlying personal injury lawsuits, and Tuchten answered them and participated in discovery.

At issue in this case was whether the distributor satisfied its obligation to notify the wholesaler of its claim of breach of the implied warranty of merchantability pursuant to section 2-607(3)(a) of the Illinois Uniform Commercial Code (UCC), 810 ILCS 5/2-607(3)(a). Martin alleged in its third-party complaint that Tuchten had actual notice of the alleged defect of the cilantro as a result of being named as a defendant in the personal injury lawsuits. Tuchten, on the other hand, argued that these allegations in a complaint did not constitute direct notice of the claim of breach of implied warranty.

Decision

The Illinois Supreme Court held that Tuchten being named defendant in the underlying litigation was enough to constitute sufficient notice under UCC §2-607(3)(a). Andrews v. Carbon on 26 ^th , LLC , 2025 IL 130862. For breach of implied warranty of merchantability claims, UCC §2-607(3)(a) states that the buyer must, within a reasonable time after discovering or after it should have discovered any breach, notify the seller of breach or be barred from any remedy. While the general rule is that a buyer must directly notify the seller of the troublesome nature of the transaction or be barred from recovering for a breach of warranty, the court noted two exceptions. First, a buyer can fulfill the notice requirement without giving direct notice to the seller where the seller has actual knowledge of the defect of the particular product. Second, a consumer buyer who has suffered personal injuries from a defective product can satisfy the notice requirement simply by filing a complaint alleging a breach of warranty against the seller. While it is unnecessary to list specific claims of breach of warranty in giving notice under 810 ILCS 5/2-607, it is essential that the seller be notified that this particular transaction is troublesome and must be watched.

Here, the court determined that only the first exception was applicable since Martin is not a consumer buyer. The court then determined that Tuchten had actual notice because, before Martin filed its complaint on April 16, 2019, the wholesalers were aware of the buyer, the particular product, the alleged defects, and the specific transactions at issue, based on being named as defendants in the personal injury complaints.

Takeaways

As a buyer, you should directly inform the seller as soon as you discover a problem with a product that gives rise to a breach of the implied warranty of merchantability under UCC §2-314. As the court noted, the general rule is that direct notice is required. Nevertheless, the court confirmed that actual knowledge can arise from a number of sources, and whether the buyer has provided sufficient notice to the seller is a question of fact that turns on the particular circumstances of each case. Thus, if direct notice is not provided, there are other avenues a buyer can look towards to satisfy the actual notice requirement in an implied breach of warranty case.

Thanks go to our summer associate Ayisha Kecht for her help writing this article. For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555.

A Guide to Preparing and Completing the Dreaded “Financial Affidavit” in Illinois Divorce Cases

Thu, 26 Jun 2025 22:37:53 GMT

In Illinois, anyone going through a divorce is required by law to complete a financial affidavit as part of the legal process. Each spouse completes their own financial affidavit independently, utilizing all financial records and information available to them, electronically, in hard copy, by referencing tangible assets/things, or any other means available. The financial affidavit is critical because it ensures that both parties have a complete picture of all marital and non-marital assets, debt, and income. When it is utilized in court proceedings, it provides the court with a clear and comprehensive picture of the financial standing of the parties, which helps determine key issues such as spousal maintenance, child support, and the division of marital assets and debt. Properly preparing and completing your financial affidavit is essential to ensure accuracy and avoid delays or complications in your case. This guide will walk you through the steps to prepare and complete your financial affidavit effectively.

Understanding the Purpose of the Financial Affidavit

The financial affidavit is a sworn document that details your income, expenses, assets, and debts. Accurately completing the financial affidavit must be taken very seriously. As provided on the first page of the form, it states that, “ (i)f you intentionally or recklessly enter inaccurate or misleading information on this form, you may face significant penalties and sanctions, including costs and attorney's fees. ” It also provides at page 10 of the financial affidavit, just above the signature line, that upon signing your financial affidavit, you are certifying “that everything in the Financial Affidavit is true and correct. (That you) understand that making a false statement on this form is perjury and has penalties provided by law under 735 ILCS 5/1-109.” [Among other things, that statute states that, “(a)ny person who makes a false statement, material to the issue or point in question, which he does not believe to be true, in any pleading, affidavit or other document certified by such person in accordance with this Section shall be guilty of a Class 3 felony. ”]

In Illinois, divorcing parties are required to use the standardized, Supreme Court approved form entitled “FINANCIAL AFFIDAVIT (FAMILY & DIVORCE CASES). This form is required to be used in all Illinois Circuit Courts. You can go to this link to find the PDF-fillable version of the required financial affidavit form, as well as instructions on completing the form and additional forms that may be utilized to accompany the financial affidavit.

The point is this: errors or omissions can lead to unfavorable outcomes or even legal consequences, so accuracy and thoroughness are paramount in completing the financial affidavit.

Step 1: Gather Necessary Financial Documents

Before filling out the financial affidavit, collect all relevant financial records to ensure your information is accurate and complete. This preparation will save time and reduce stress. Key documents to gather include:

Pay stubs for at least the last three months to verify your income.
Tax returns (complete copies with all Forms and Schedules for both federal and state) for the past two to three years to provide a clear picture of your earnings.
Bank statements (at least three months) for all checking, savings, and investment accounts to document your assets and cash flow.
Credit card statements (at least three months) and loan documents to outline your debts.
Bills and receipts for monthly expenses, such as rent or mortgage, utilities, insurance, and childcare.
Retirement account statements (e.g., 401(k), IRA) to report savings and investments.
Property records , including deeds or appraisals, to detail real estate holdings.

Organize these documents in a binder or digital folder for easy reference. Having everything at hand will make it easier to fill out the affidavit accurately.

Step 2: Understand the Affidavit Form

The Illinois financial affidavit form is divided into sections, each focusing on a specific aspect of your finances:

Personal Information : Basic details like your name, address, and employment status.
Income : All sources of income, including wages, bonuses, self-employment income, investments, and benefits like Social Security.
Expenses : Monthly living expenses, such as housing, transportation, food, medical costs, and childcare.
Assets : Everything you own, including bank accounts, real estate, vehicles, and personal property.
Debts : All liabilities, such as mortgages, car loans, credit card balances, and personal loans.

Reviewing the form in advance helps you understand what information is required and ensures you do not miss any details.

Step 3: Be Honest and Accurate

When completing the financial affidavit, honesty is critical. As stated above, the document is signed under oath, meaning inaccuracies or misrepresentations could result in penalties, including perjury charges. If you are unsure about certain figures, such as irregular income or estimated expenses, provide a reasonable estimate based on your records and note on the financial affidavit that you are providing an estimate. Discrepancies between your financial affidavit and your spouse’s financial affidavit may raise red flags.

For example, when listing expenses, do not inflate or underestimate costs to sway the court’s decision. Instead, use your bank statements and receipts to calculate realistic averages. If your income fluctuates (e.g., due to commissions or freelance work), provide an annual average based on past tax returns or pay stubs and indicate on the financial affidavit that you did so to come up with your entry.

Step 4: Complete the Form Methodically

Work through each section of the affidavit systematically. Be sure to confirm when you are working through each section if the entries call for monthly or yearly amounts (e.g., income and expenses) or a total value (e.g., marital residence). Starting with income, list all sources and provide documentation to back them up. For expenses, categorize them as requested (e.g., housing, utilities, personal care). Be sure to double-check your math. When listing assets and debts, include an accurate description of the asset or debt, include the last 4 digits of any account numbers, and include the balances. If you co-own property or share debts with your spouse, note this clearly on the financial affidavit to avoid confusion.

If a section doesn’t apply to you (e.g., you have no retirement accounts), write “N/A” or “0” rather than leaving it blank. Incomplete forms can lead to misunderstandings.

Step 5: Review and Seek Professional Help if Needed

Once you have completed your financial affidavit, review it carefully for accuracy and completeness. Cross-reference your entries with your financial documents to ensure consistency. If you are unsure about any section or have a complex financial situation (e.g., business ownership or significant investments), it is highly recommended that you consult with your divorce attorney. They can help clarify tricky areas and ensure your financial affidavit aligns with Illinois law.

Step 6: Finalizing and Exchanging Financial Affidavits with Your Spouse

After completing your financial affidavit, it is important that you send it, along with all your corroborating financial documents, to your attorney for their review. They will request further input from you or request dialogue on any of the entries that are unclear, reveal new information to them, or require further elaboration as part of the financial affidavit. Once you and your attorney are satisfied that everything is complete and accurate, you will be required to sign and date the financial affidavit.

Once the financial affidavit packet (made up of the completed, signed, and dated financial affidavit and all corroborating financial documents) is ready, your attorney will coordinate exchanging financial affidavit packets with your spouse’s attorney. Be sure to keep a copy of your completed financial affidavit packet for your records.

Tips for Success

Start Early : Gathering documents and completing the affidavit can take time, so don’t wait until the last minute.
Be Thorough : Omitting assets or debts can harm your credibility and affect the court’s rulings.
Update as Needed : If your financial situation changes significantly during the divorce process, you may need to file an updated affidavit. Financial affidavits should be updated every three - four months while the divorce litigation is pending.
Stay Organized : Keep all documents and a copy of your completed affidavit in a safe place for future reference.

Conclusion

Completing a financial affidavit in an Illinois divorce case may seem daunting, but with careful preparation and attention to detail, you can navigate the process successfully. By gathering the right documents, understanding the form, and being honest and thorough, you are contributing to providing a clear picture (along with your spouse’s financial affidavit) of your finances, both marital and non-marital, thereby paving the way for expeditious and equitable decisions to be made on support and/or division of the marital estate.

Annette Corrigan is one of the highly experienced attorneys making up Lavelle Law’s Family Law Team. If you or someone you care about is facing divorce, reach out today at 847-705-7555, and Annette or one of our other family law attorneys can provide you with a complimentary and confidential consultation, usually the same day you call.

Success Story – Sale of Company for Over $10 Million Cash + Rollover Equity + Earn-Out Consideration

Wed, 25 Jun 2025 15:29:45 GMT

Background: Lavelle Law represented an educational consulting company in its equity sale by its founder and certain key employees to a private equity-backed buyer looking for a strategic bolt-on acquisition.

Challenges: The sale required our client to undergo an F-reorganization immediately before the sale to achieve the parties’ tax objectives, which involved tight coordination and timing. The deal had many other moving parts, including the negotiation of rollover equity documents, a new real estate lease with the client’s affiliate as the landlord, and the concurrent refinancing of the landlord’s mortgage loan. Finally, the deal had its share of diligence issues, including obtaining third-party consents and risks arising from operations in multiple states.

Result: The sale closed successfully in line with the parties’ expectations.

Understanding the Many Types of Commercial Leases

Fri, 13 Jun 2025 22:05:19 GMT

Other than payroll costs, there is generally no other larger ongoing cost that a business pays than its commercial lease obligation. Moreover, often the term for a typical commercial lease will extend far into the life of any business. Finally, there are a multitude of ways in which a poorly drafted lease can cause a business to incur significant unforeseen costs. Accordingly, it is critical that every business devotes the necessary resources, including the use of an experienced lawyer, to negotiate a fair lease.

Lavelle Law will be writing a series of articles commenting on the issues faced by a Tenant in commercial leases.

Here, we explore some of the most common commercial lease types and how they impact both parties.

1. Gross Lease

A gross lease is a simple lease and most understood. In a gross lease, the tenant pays a fixed base rent, usually monthly. Such amount is not impacted by the costs of the landlord to maintain the common areas of the property. The landlord assumes responsibility for managing and paying the various operating and property expenses (such as insurance, real estate taxes, landscaping, and janitorial) using the rent received from the tenant. Because of this, the base rent in a gross lease is typically higher than in other lease types, but tenants benefit from predictable costs and simplified budgeting. Gross leases are commonly found in office buildings and multi-tenant properties where landlords maintain overall control of property expenses.

2. Net Lease

A net lease is a highly flexible commercial lease in which the tenant pays a lower base rent but also assumes responsibility for specific property expenses such as taxes, insurance, and maintenance. There are five main types of net leases:

Single Net Lease: Tenants pay a base rent plus a portion of the property taxes, while the landlord covers building expenses. The tenant is also responsible for utilities and other direct service costs.
Double Net Lease: Similar to a single net lease, but the tenant also pays a share of property insurance in addition to property taxes. The landlord remains responsible for maintaining common areas.
Triple Net Lease (NNN Lease): Tenants pay for property taxes, insurance, and common area maintenance (CAM) in addition to the base rent. This structure shifts more financial responsibility to tenants but allows them to review the landlord’s operating expenses, potentially leading to cost savings. This is the most common form of a net lease.
Absolute Triple Net Lease: This lease structure transfers full financial responsibility to the tenant, including all repairs and rebuilding costs in the event of damage. It is rare and often seen as an alternative to property ownership.
Modified Triple Net Lease: This is similar to a triple net lease. However, the primary difference is that the tenant is only responsible for the operating costs if they exceed the costs for a particular base year.

Key Differences: Triple Net Lease vs. Gross Lease

The fundamental difference between a triple net lease and a gross lease is how expenses are allocated between the landlord and tenant:

Gross Lease: The tenant pays a single, fixed rent, and the landlord covers all additional operating expenses. This makes financial planning easier for tenants but usually results in higher base rent.
Triple Net Lease: The tenant pays a lower base rent but is also responsible for property taxes, insurance, and common area maintenance (CAM) expenses. This structure can benefit tenants who actively manage costs and landlords who prefer minimal financial responsibility.

Triple net leases are common in retail and industrial properties, while gross leases are typically found in office buildings and multi-tenant spaces. Choosing the right lease type depends on financial strategy, risk tolerance, and operational needs.

In a later article within this series, we will explore the reconciliation process of triple net leases.

3. Industrial vs. Warehouse vs. Office Leases

Industrial Leases: Industrial spaces cater to manufacturing, production, and heavy-duty operations. These properties often include features such as high ceilings, loading docks, and robust utility infrastructures. Lease agreements for industrial spaces typically include terms that address zoning compliance, equipment installations, and environmental regulations.

Warehouse Leases: Warehouses are primarily used for storage and distribution purposes. Unlike industrial properties, warehouses may have minimal office space and fewer modifications for specialized operations. Lease agreements focus on aspects such as accessibility, storage capacity, and security requirements.

Office Leases: Office spaces are leased for professional, administrative, or corporate operations. These leases range from small single-suite offices to multi-floor corporate headquarters. Lease terms may include provisions for common area maintenance (CAM), tenant improvement allowances, and rent escalation clauses.

Leveraging Leases for Business Advantage

Businesses can leverage lease structures to optimize financial and operational efficiency. Understanding market conditions is critical in identifying your respective negotiating leverage. Lease rates fluctuate based on market supply and demand, as well as location and type of property. Knowing market trends can help secure competitive rates and other favorable terms.

Key considerations include:

Negotiating Favorable Terms: Tenants should negotiate improvement allowances and renewal options to maximize benefits.
Flexibility and Scalability: Choosing the right lease type ensures that a business can scale operations without unnecessary financial burdens.
Rental rates: The most obvious term in any lease is the square footage rent. Often, though, Landlords would prefer to provide concessions in the form of rent abatement, in order to keep the stated rent per square foot higher.

Understanding the various types of commercial leases helps both landlords and tenants make informed decisions, ensuring alignment with financial and operational goals. Whether selecting a gross or triple net lease, exploring lease-to-own options, or securing the right type of commercial space, careful lease negotiation is essential to a successful business.

If you have any questions regarding commercial leases, contact Ted McGinn at tmcginn@lavellelaw.com or 847-705-7555 to schedule a consultation.

Tim’s Tax News on the Tenth – June 2025

Tue, 10 Jun 2025 15:28:17 GMT

IRS Issues Statistics on its 2024 Operations

A recent press release by the IRS addressed the Fiscal Year (“FY”) 2024 (Oct. 1, 2023 – Sept. 30, 2024) Data Book, describing the Agency’s activities. For the first time, revenue collected exceeded 5 trillion dollars, accounting for 96% of total government revenue. The IRS’s expenditures to collect over $5 trillion were $18.2 billion for overall operations in FY 2024, with 90,516 full-time equivalent employees.

Fiscal year 2024 saw a 9% increase from the prior year’s total of $4.7 trillion to a record high total of $5.1 trillion. In addition, the IRS successfully collected $29 billion in recommended additional tax after successfully closing 505,514 tax return audits. The IRS did, however, issue close to $553 billion in refunds to individuals ($490.6 billion), businesses ($36 billion), and estate and employment taxpayers during FY 2024.

The IRS has made notable efforts to improve customer satisfaction regarding phone conversations and trying to transition more people online. Notably, the IRS pilot program ‘Direct File’ for forms 1040 and 1040-SR succeeded with 140,803 accepted returns out of the 423,450 logged taxpayers.

Illinois was the fifth-largest contributor to the IRS behind California, New York, Texas, and Florida. In Illinois specifically, the IRS collected over $222 billion, roughly $190 billion from individual income tax filings, and over $25 billion from businesses. The IRS refunded approximately $16 billion to Illinoisians– approximately 7% of total IRS revenue collected from Illinois– with businesses receiving less than $2 billion in refunds. Individual filers received the majority of the remainder.

In an effort to improve on the IRS’s ‘Digital First’ initiative, they launched more digital tools than they had during the prior 20 years, including initiatives for tax professionals and C corporations. There were more than 2 billion taxpayer assistance transactions, a significant increase of 47% compared to FY 2023. The most popular automated assistance tool used in 2024 was the ‘Where’s My Refund?’ function.

The IRS issued over 1.5 million Math error notices in 2024. For tax year 2023, individual income tax returns processed during FY 2024, the two most common types of math errors were related to tax Calculations/ Other Taxes, which made up 22.5% of total math errors, and Adjusted Gross/Taxable Income Amount, which accounted for 20.1%.

The IRS Appeals Office received 51,990 cases and closed 65,573 cases, with 33,428 Cases pending as of September 30, 2024. The IRS initiated 2,667 criminal investigations in 2024. The IRS completed 2,481 investigations, 1,571 convictions, and 1,198 incarcerations. 75.7% of the total people sentenced were incarcerated. The IRS assessed $84.1 billion in civil penalties in FY 2024, with $20.2 billion being assessed on individual, estate, and trust income tax returns.

Lastly, the IRS Chief Counsel received 51,704 cases and closed 53,191 cases, of which 60.4% were from the Small Business/ Self-Employed Division. Nearly 80.2% of new cases received and about 82.2% of cases closed were related to tax law enforcement and litigation, including Tax Court litigation; collection, bankruptcy, and summons advice and litigation; Appellate Court litigation; criminal tax; and enforcement advice and assistance.

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Estate Planning and Major Life Events

Mon, 02 Jun 2025 22:07:54 GMT

As life changes, it is important to recognize major life events when it is pertinent to prepare, review, or update estate plan documents. Whether you recently got married, just had a baby, bought a house, went through a divorce, have an adult child, or are acquiring assets that may need tax planning provisions, be proactive and make sure the proper estate plan documents are in place. Contact estate planning attorney Jackie Luthringshausen to get started. jluthringshausen@lavellelaw.com or 847-705-7555

Essential Legal Protections for Your Business – A Lavelle Law Breakfast Briefs Recording

Tue, 27 May 2025 23:08:32 GMT

Key strategies and tools to protect business assets were the topics of Lavelle Law’s Breakfast Briefs presentation on May 21, 2025. Attorneys Matt Sheahin and Jennifer Tee presented important legal strategies for business owners as well as business and office managers, business brokers, and insurance professionals. Topics included Non-Compete Agreements, Shielding Trade Secrets, Nuances of Temporary Restraining Orders (TROs), Injunctive Relief, Contracts, and Managing Risks. Contact Matt: msheahin@lavellelaw.com or Jennifer: jtee@lavellelaw.com if you have any questions or to schedule a free initial consultation. 847-705-7555

CLICK HERE for a PDF version of the slide deck.

Success Story – Lavelle Law Helps Employer Navigate Difficult Employee Termination

Fri, 23 May 2025 19:35:47 GMT

Background:
Our client contacted us for advice regarding the termination of a long-time employee who was failing to meet performance standards. Our client already provided several accommodations for this employee, but they still were not meeting the mark.

Challenges:
Although many employees in Illinois are at-will employees and can be terminated for any reason, the reason cannot be discriminatory. In this situation, we needed to ensure that the employee our client terminated was not going to bring any legal action later as a result of the termination.

Result:
Our client received the result they wanted. We drafted a termination letter on behalf of our client, and the employee did not dispute the grounds for termination.

“Sarah and the entire Lavelle Law team are true professionals who really listened to my concerns and were able to explain all of my options for courses of action. I would recommend Sarah to anyone who needs compassionate legal counsel for delicate matters regarding staff changes and contracts.”

Why Every Adult in Illinois Needs an Estate Plan (Even If You Think You Don’t)

Thu, 22 May 2025 21:01:50 GMT

When people hear “estate planning,” they often picture wealthy individuals with sprawling mansions and complex assets. But the truth is, everyone — regardless of income, age, or family size — can benefit from having an estate plan.

Whether you're 30 or 70, single or married, a good plan protects the people you love and the life you've worked hard to build. Estate planning isn’t just for the wealthy or elderly — it’s for anyone who wants a say in what happens if they’re no longer able to make decisions themselves.

1. It’s Not Just About Money — It’s About Control

An estate plan lets you decide:

Who will care for your children if something happens to you;
Who makes medical and financial decisions if you're unable; and
How your assets (no matter the size) will be passed on.

Without a plan, the laws of the state of Illinois will decide these things for you — and the outcome might not reflect your wishes.

2. A Simple Plan Can Prevent a Lot of Trouble

Even a basic plan can:

Avoid probate (a long and costly legal process);
Minimize taxes or fees;
Prevent family disputes; and
Ensure your wishes are followed.

3. Peace of Mind for You and Your Loved Ones

Estate planning isn't just about preparing for the worst — it's about making life easier for the people you love. It’s a gift you give to your future self and your family.

Need Help Getting Started?

I help Illinois residents create clear, effective estate plans that fit their lives and their goals. Schedule a quick call to learn how easy it can be to protect what matters most. If you would like to schedule a free consultation to hear more about how an estate plan can benefit you and your family, please call attorney Heather A. McCollum at (847) 705-7555 or email her at hmccollum@lavellelaw.com .

Tim’s Tax News on the Tenth – May 2025

Sat, 10 May 2025 13:00:12 GMT

IRS Whistleblower Office Releases Operating Plan Outlining Integrated Approach to Advance Program

The Internal Revenue Service recently issued a press release addressing the IRS Whistleblower Office’s publishing its first-ever multi-year operating plan that outlines its guiding principles, strategic priorities, recent achievements, and current initiatives to advance the IRS Whistleblower Program.

The IRS Whistleblower Office administers claims from whistleblowers that identify taxpayers who may not be complying with tax laws or other laws the IRS administers, enforces, or investigates.

“The IRS Whistleblower Office Operating Plan incorporates extensive feedback received from whistleblowers, whistleblower practitioners, IRS employees, oversight bodies, and other program stakeholders,” said IRS Whistleblower Office Director John Hinman. “Whistleblower information that the IRS can act on is an important component of effective tax administration as it bolsters the fair, efficient and effective enforcement of our nation’s tax laws, the success of our voluntary tax system, and our efforts to reduce the tax gap.”

The Whistleblower Office’s plan reflects a multi-year approach to improving processes and operations, expanding collaboration and outreach, and integrating valuable stakeholder feedback.

The operating plan is framed around six strategic priorities:

Enhance the claim submission process to promote greater efficiency.
Use high-value whistleblower information effectively.
Award whistleblowers fairly and as soon as possible.
Keep whistleblowers informed of the status of their claims and the basis for IRS decisions on claims.
Safeguard whistleblower and taxpayer information.
Ensure that our workforce is supported with effective tools, technology, training, and other resources.

Within the above six strategic priorities, there are 38 initiatives addressing short-term and long-term focus areas to advance the program. Some of the initiatives will require completion of detailed, specific activities, while other initiatives are broad. The plan identifies areas of significant importance while allowing flexibility to address other concerns that may arise.

The IRS is committed to continuous improvement of the Whistleblower Program through ongoing collaboration with program stakeholders.

The IRS appreciates the valuable assistance it receives from whistleblowers and the whistleblower practitioner community. An effective whistleblower program provides an invaluable deterrence against non-compliance with tax laws, and whistleblower information significantly boosts revenues while improving tax fairness.

Since the inception of the Whistleblower Office in 2007, the Whistleblower Office has made awards of over $1.3 billion based on the collection of more than $7 billion attributable to whistleblower information. In fiscal year 2024, the IRS paid awards totaling $123.5 million based on tax and other amounts collected of $474.7 million attributable to whistleblower information. The total dollar amount of awards paid in fiscal year 2024 was the third highest in the program’s history. The awards paid to whistleblowers generally range between 15% and 30% of the proceeds collected and attributable to their information.

Individuals with specific, timely, credible, relevant, and significant information regarding non-compliance with any laws the IRS is authorized to administer, enforce, or investigate are encouraged to consider filing an IRS Form 211 to be considered for an award.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

Navigating New Pricing Transparency Laws for Dealerships

Wed, 23 Apr 2025 21:33:03 GMT

In California, the Honest Pricing Law SB 478 mandates that businesses include all fees in the advertised price of goods and services, except for government taxes and reasonable shipping charges. The new law aims to eliminate deceptive pricing practices and promote transparency, which will help consumers avoid unexpected costs at checkout and create more informed purchasing decisions. Businesses must now integrate service fees into the advertised price, ensuring that the price a consumer sees is the price they pay. This law applies to purchases such as ticketing, hotel stays, and food delivery services; however, certain sectors, such as motor vehicle dealerships, do not need to follow these rules when advertising the MSRP of their inventory. Failure to comply with the Honest Pricing Law could lead to lawsuits from the California Attorney General’s Office and private lawsuits under the Consumer Legal Remedies Act .

Despite California’s Honest Pricing Law excluding motor vehicle dealerships, California’s CARS Act takes aim at dealerships and will be effective on July 1, 2025. This bill requires that dealerships do not make any misrepresentations of material information about the sale of the vehicle including: the costs or terms of purchasing, financing, or leasing a vehicle, the availability of vehicles at an advertised price, and the remedy available if a dealer fails to sell or lease a vehicle at the offering price.

In Illinois, “The Junk Fee Ban Act,” Senate Bill SB1486 was introduced on January 31, 2025, by Senator Omar Aquino. This act seeks to enhance pricing transparency by amending the Consumer Fraud and Deceptive Business Practices Act . As of today's date, SB1486 is under consideration in the Illinois Senate. If enacted, this legislation would protect consumers from hidden fees and promote fair business practices in Illinois. While there has yet to be legislation in the proposed Junk Fee Ban Act that excludes dealerships, it will be important to look for future updates on this bill, as Illinois is quickly becoming a hub for vehicle innovation and automotive plant expansion.

Lavelle Law can assist dealers in defending against claims brought by consumers. For further questions, please contact attorney Sarah Reusché at sreusche@lavellelaw.com or (847) 705-7555.

Across State Lines: Understanding Ancillary Probate

Mon, 21 Apr 2025 17:03:42 GMT

When someone passes away owning property in another state, their estate may need to go through ancillary probate—a secondary court process in that state.

What Is Ancillary Probate?

Ancillary probate is required when a person dies owning real estate outside of their home state (their “domicile”). For example, if a resident of Illinois passes away while owning a vacation home in Florida, a separate probate case may need to be opened in Florida to transfer or sell that property.

When Is It Needed?

It’s usually necessary if:

The out-of-state property is in the deceased’s name alone; or
The property wasn’t placed in a trust or owned jointly with survivorship rights.

How It Works: The Basics

The main probate case is filed in the state where the deceased lived. Then, with certified documents from that case, the executor can open an ancillary probate in the other state, following that state’s legal process.

How to Avoid It

Ancillary probate can often be avoided with proper planning, such as:

Holding property in a revocable trust;
Joint ownership with right of survivorship; or
Transfer-on-death deeds (in states that allow them).

Final Note

Owning property in more than one state can complicate the distribution of your assets; however, with proper planning, you can simplify the distribution process and make this process easier for your loved ones. If you would like to schedule a free consultation to hear more about how an estate plan can benefit you and your family, please call attorney Heather A. McCollum at (847) 705-7555 or email her at hmccollum@lavellelaw.com .

Success Story - $9.9 Million Dollar Purchase of Packaged Multi-Unit Properties

Fri, 18 Apr 2025 18:11:15 GMT

Background:
Lavelle Law represented a joint venture in its $9.9 Million acquisition of four multi-unit buildings.

Challenges:
The transaction was complicated due to the nature of the joint venture, vacant units, turnover of security deposits, and existing building code violations.

Result:
The purchase was successful despite tough negotiations with the seller’s team. All leases and security deposits were transferred to the buyer, and Lavelle Law effectively represented the buyer in removing the building code violations on the property.

An Overview of F Reorganizations in M&A Deals

Mon, 14 Apr 2025 21:03:11 GMT

Background

A Type F reorganization (“F Reorg”), governed by Section 368(a)(1)(F) of the Internal Revenue Code, provides a strategically significant mechanism for corporate restructuring. Defined as a “mere change in identity, form, or place of organization of one corporation,” an F Reorg permits a corporation to alter its legal existence while being treated for federal tax purposes as the same entity. This recharacterization allows for the uninterrupted preservation of tax attributes while maintaining shareholder continuity.

The Internal Revenue Service, through Treasury Regulation §1.368-2(m), has articulated six criteria to qualify as an F Reorg, including:

distribution of the resulting corporation’s stock in exchange for the stock of the transferor;
identical stock ownership before and after the transaction;
absence of prior assets or tax attributes in the resulting corporation;
the complete liquidation of the transferor corporation for tax purposes;
exclusivity of the resulting corporation as the acquiring entity; and
exclusivity of the transferor as the acquired entity.

Strategic Benefits

F Reorgs can be used as preparatory vehicles in transactional and tax structuring. One of the principal benefits is that the reorganization is generally tax-deferred—there is no recognition of gain or loss, and the tax attributes are carried forward to the resulting entity. This tax continuity makes the structure ideal for effectuating legal changes without triggering tax consequences.

Additionally, an F Reorg offers flexibility when repositioning a corporate structure in anticipation of a financing event or exit. It is commonly used to insert a holding company atop an existing operating company, thereby facilitating venture capital investment or an acquisition while preserving the operating entity’s history and status. The structure is also beneficial in circumstances where a corporation seeks to change its jurisdiction of incorporation.

In the context of a target S corporation, the F Reorg is particularly useful. It allows for the target to first convert to a qualified subchapter S subsidiary (“QSub”) and then to become a single-member LLC. It can also be a critical tool in estate planning, allowing shareholders to reorganize equity holdings under new trusts or vehicles without interrupting the business’s operational or tax continuity.

Possible Disadvantages

Despite the advantages, F Reorgs are not without complexity or risk. The transaction must be structured with precision to ensure compliance with the regulatory criteria. Failure to meet any of the six IRS requirements may result in the loss of tax-free treatment and the imposition of corporate and shareholder-level tax on what would otherwise be a non-recognition transaction.

The structure also imposes certain limitations. Because the resulting corporation must not possess any assets or tax attributes prior to the transaction—other than a de minimis amount required for legal existence—care must be taken to ensure proper formation and sequencing. Furthermore, while the transferor must completely liquidate for tax purposes, it may not be legally dissolved under state law, potentially creating ongoing administrative burdens.

Types of Transactions where an F Reorg is Useful

Taking into account the strategic benefits detailed above, below are examples of where F Reorgs can be a useful planning technique to accomplish tax planning goals:

Enabling the sale of an LLC interest as opposed to S corporation stock : Performing an F Reorg prior to the sale of a business owned by an S corporation can enable the seller to sell a subsidiary single member LLC interest, not the corporate stock directly. By purchasing a single member LLC interest, the buyer would receive a step up in basis in all of the assets held by the LLC at the time of purchase.

Facilitating new equity investments from investors that would otherwise be disqualified S corporation shareholders : The type and number of shareholders of an S corporation are restricted. As businesses grow, they may want to issue equity to new investors who would be ineligible to own shares. Performing an F Reorg can be a useful way to bring on such investors and retain pass-through tax treatment.

Implementing a rollover equity transaction : Equity rollover transactions are popular methods for keeping past shareholders and owners invested in the future success of a business even after a significant portion of the business is sold. Target corporations can perform an F Reorg and allow S corporation shareholders to obtain equity in the acquirer on a tax-free basis.

Conclusion

For corporations navigating sophisticated transactions—whether preparing for a capital raise, acquisition, state re-domiciliation, or intergenerational ownership transfer—a Type F Reorg offers a means of achieving structural change while preserving tax continuity and operational identity. While the F reorganization does not lend itself to every scenario, in the right context, it can unlock significant advantages, including tax deferral, investor alignment, and streamlined legal compliance. For further inquiries or questions, please contact Steven Migala at smigala@lavellelaw.com or (847) 705-7555.

Estate Planning for Your Pet: Securing Your Pet’s Future with a Pet Trust

Thu, 10 Apr 2025 21:52:48 GMT

When it comes to estate planning, most people think about providing for their loved ones—but what about the furry, feathered, or scaled members of your family? In the United States, 68% of households own at least one pet, according to the American Pet Products Association’s 2023-2024 National Pet Owners Survey. For many, pets are more than just companions—they’re family. Ensuring their care after your death or incapacity is a vital part of comprehensive estate planning. In Illinois, a Pet Trust offers a powerful solution to guarantee your pet’s well-being long after you’re gone.

Pets as Property in Illinois
Under Illinois law, pets are property. You can name a beneficiary in your Will to inherit your pet, including care instructions and funds. But a Will has limitations:

No Oversight: Once your pet is transferred to the beneficiary, there’s no legal mechanism to ensure your care instructions are followed.
No Control Over Funds: Money left for your pet’s care could be spent elsewhere, leaving your pet without the resources you intended.
Incapacity Gap: A Will only takes effect after your death, offering no protection if you become incapacitated and unable to care for your pet during your lifetime.

For pet owners seeking peace of mind, there’s a better option: a Pet Trust .

The Power of a Pet Trust in Illinois
Illinois law explicitly recognizes Pet Trusts under 760 ILCS 3/408, part of the Illinois Trust Code. This statute allows you to create a trust specifically for the care of one or more pets, ensuring they’re looked after according to your wishes. Notably, all 50 states now have some form of Pet Trust legislation, reflecting the growing importance of pets in our lives.

Unlike a Will, a Pet Trust is a legal entity that holds property—your pet and the funds for their care—under the direction of a trustee . The trustee oversees the trust’s assets and ensures your pet receives the care you’ve outlined, while a caregiver takes physical custody of your pet and manages their day-to-day needs.

Key Elements of a Pet Trust
To create an effective Pet Trust, the following key components should be included:

Trustee and Contingent Trustee : Choose a trusted individual (friend, relative) or entity (animal welfare organization, bank) to manage the Trust. Name a backup trustee in case your first choice is unavailable.
Beneficiaries : Identify the specific pet(s) the Trust will benefit.
Caregiver and Contingent Caregiver : Select someone familiar with your pet to provide hands-on care, along with an alternate caregiver as a safeguard.
Funds : Set aside a reasonable amount of money to cover your pet’s care for its lifetime, including food, veterinary expenses, and grooming.

Choosing the Right Caregiver
Selecting a caregiver is a deeply personal decision. Ask yourself:

Who do I trust to honor my pet’s needs?
Who knows my pet’s personality and routines?
Who’s equipped to handle the responsibility?
Should my pets stay together, or do they need separate caregivers?
Does my pet have special medical or behavioral needs?

Additional Considerations for a Pet Trust
A well-crafted pet trust goes beyond the basics. Here are some factors to address:

Funding the Trust : Calculate a reasonable sum of money to fund the Pet Trust based on your pet’s life expectancy and care needs. Illinois courts can reduce excessive amounts if they far exceed what’s necessary—think practicality, not extravagance (sorry, Leona Helmsley fans…12 million for your pet’s care is excessive!).
Standard of Care : Specify the level of care your pet is accustomed to, such as premium food or regular grooming.
Pet Inspections : Allow the trustee to periodically check on your pet’s well-being.
Reporting Requirements : Require the caregiver to submit regular updates, including veterinary reports, to the trustee.
Insurance : Consider liability, life, or health insurance to cover unexpected costs.
Contingency Plans : Outline what happens if the Trust funds run out or your pet passes away, including burial or cremation preferences.
Remaining Funds : Designate a person or charity to receive any leftover assets after your pet’s death.

Why Work with an Estate Planning Attorney?
Creating a Pet Trust requires careful planning to comply with Illinois law and reflect your unique wishes. An experienced estate planning attorney can help you draft a Pet Trust that’s legally sound and tailored to your pet’s needs. Without professional guidance, you risk leaving loopholes that could jeopardize your pet’s future.

Tim’s Tax News on the Tenth – April 2025

Thu, 10 Apr 2025 17:51:28 GMT

IRS Press Release Addresses Payment Plan Options

A recent press release by the IRS addressed the options that are available to taxpayers who may owe more on April 15 ^th than they can pay. The IRS advised taxpayers that they do not need to wait until April 15 to file their 2024 federal return, and if they owe and are unable to pay the balance in full, there are payment plans available to help them pay their tax obligation.

Tax returns for 2024 are due on April 15, 2025, with exceptions for taxpayers in a disaster area , combat zone , or living and working abroad . April 15 is also the deadline for making tax payments to avoid late charges, such as interest and the late payment penalty for 2024’s taxes. It is also the date for the first estimated tax payment for tax year 2025.

The IRS urged those who cannot pay their full balance to file and pay as much as they can on or before April 15. Filing on time avoids the late filing penalty, which is usually 5% per month on the unpaid balance.

In addition, by paying at least part of what they owe on time , taxpayers can reduce the amount of interest and late payment penalty that will be added to any payments made after April 15. Currently, the interest rate is 7% per year, compounded daily, and the penalty rate is usually 0.5% (one-half of one percent) per month.

For anyone with unpaid tax, the IRS cautions that requesting an extension is not a solution because it only gives a taxpayer more time to file, not more time to pay.

Most individual taxpayers that have a balance due should qualify for a payment plan. The payment plan must meet certain criteria to be accepted. It should be noted that a payment plan agreement does not stop the accrual of penalties and interest. Anyone who cannot qualify for a payment plan can explore other options, such as: an Offer in Compromise -- taxpayers qualify to settle their tax liabilities for less than the total amount owed by submitting an Offer in Compromise. If a taxpayer cannot qualify for an Offer in Compromise, they may qualify for a temporary delay of collection -- taxpayers can contact the IRS to request a temporary delay of the collection process. If the IRS determines that the taxpayer is unable to pay, it may delay collection until the taxpayer’s financial condition improves. Penalties and interest continue to accrue until the full amount is paid.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

Essential Legal Protections for Your Business

Wed, 09 Apr 2025 21:00:39 GMT

A Lavelle Law Breakfast Briefs Seminar

May 21, 2025

7:45 - 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

Essential Legal Protections for Your Business

Join us on May 21 in Schaumburg for an engaging Breakfast Briefs seminar, delving into vital strategies to fortify your business. This session will explore the critical role of crafting ironclad non-compete agreements, shielding your trade secrets, and mastering the nuances of temporary restraining orders (TROs) and injunctive relief. Our presenters, attorneys Matthew Sheahin and Jennifer Tee, bring a wealth of experience in this legal domain. Seize this chance to bolster your company’s legal protections and lay a solid groundwork for enduring success!

Doors will open at 7:45 for a complimentary continental breakfast, and the presentation will begin at 8:00. This is a free event, but registration is required as seating is limited.

Meet Our Presenters

Matt Sheahin is an experienced business litigation attorney who has tried cases involving various business disputes in Illinois state and federal courts. He has filed and defended claims for breach of contract, breach of fiduciary duties, violation of the Illinois Business Corporation Act and Illinois Limited Liability Company Act, as well as various business torts. He has also filed actions for injunctive relief, including TROs and Preliminary and Permanent Injunctions.

Jennifer Tee is a fierce advocate for justice and zealously advocates for her clients in the courtroom and during all stages of the litigation process. Litigation can be daunting for clients. She helps her clients understand the litigation process by educating them on the law and providing the rationale behind it. Her goal is to ease her clients' concerns and get the case over the finish line so that they may put the litigation behind them. Ms. Tee represents individuals and businesses in a broad range of complex litigation matters involving commercial, business, probate, contract, employment, and injunctions in both federal and state court. She also has a great deal of experience handling arbitrations and was appointed as an Arbitrator in Cook County on the Commercial Calendar, Law Division.

FinCEN Eliminates BOI Reporting Obligations for Domestic Companies

Tue, 25 Mar 2025 19:59:19 GMT

On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) issued its interim final rule stating that those entities previously classified as "domestic reporting companies" are now exempt from all BOI reporting requirements. On the other hand, all foreign entities registered to do business in the USA must file their own initial BOI reports within 30 days of the initial final rule's publication, if they have not done so already.

Play Ball with Lavelle Law!

Wed, 19 Mar 2025 22:42:37 GMT

An SBA Business After Hours Event

April 3, 2025

5 PM - 7 PM
1933 N. Meacham Rd., Suite 600

Schaumburg, IL 60193

Spring is here, and with baseball season kicking off, we’re stepping up to the plate with our annual Lavelle Law Business After Hours event. We’re excited to partner with our friends in the Schaumburg business community for an evening of networking, good vibes, and a few surprises—all hosted in the friendly confines of our Schaumburg office. Bonus points: Feel free to rock your favorite baseball team’s gear and show off your fandom while you’re at it!

Here’s what’s on deck for the night:

Raffle: Mix and mingle with our team for a shot at winning a cool prize. It’s a fun way to connect and maybe walk away with a little something extra.

Drinks: We’ve got a lineup of refreshments ready—think signature cocktail (courtesy of Bella Napoli), ice-cold beer, wine, and plenty of soda and water to keep things flowing.

Food: Fuel up with a variety of hearty appetizers and finish strong with some tasty sweets. There’s something for everyone to enjoy.

Mark your calendar and join us—we can’t wait to see you there!

FREE to SBA members! ($40 non-members)

Delaware Court Reverses Chancery Court and Provides the Standard of Review for the Redomestication of Corporations

Wed, 12 Mar 2025 20:20:59 GMT

Background

Delaware corporations seeking to redomesticate to another state should be advised that on February 4, 2025, the Delaware Supreme Court issued its highly anticipated decision in Palkon v. Maffei , C.A. No. 2023-0449-JTL , addressing a challenge to TripAdvisor's redomestication from a Delaware corporation to a Nevada corporation. The case raised important questions regarding the standard of review applicable to such reincorporations, particularly when fiduciaries may derive a benefit from shifting to a legal regime perceived as more friendly.

The case followed a long-standing debate over Delaware’s stringent corporate governance laws versus Nevada’s more flexible, director-friendly legal framework. Delaware has historically been the jurisdiction of choice for corporations due to its well-developed corporate law and judiciary, while Nevada has marketed itself as offering greater liability protections for corporate directors and officers.

The Present Case

In April 2023, TripAdvisor’s board of directors decided to redomesticate to Nevada. The board's materials and proxy statements cited several justifications, including the belief that Nevada law provided “greater protection” against “unmeritorious litigation.” In June 2023, stockholders voted to approve the move, but the approval relied on the vote of TripAdvisor’s controlling stockholder.

Stockholder plaintiffs sought to enjoin the redomestication, arguing that the move provided a non-ratable benefit to fiduciaries by limiting potential liability at the expense of minority shareholders. The Delaware Court of Chancery declined to block the redomestication but allowed stockholders to seek damages based on potential trading price fluctuations resulting from the conversion. It further determined that because Nevada law offered greater protection to fiduciaries, the redomestication conferred a material, non-ratable benefit to TripAdvisor’s controlling stockholder, triggering an entire fairness review instead of the more deferential business judgment rule.

The Delaware Supreme Court’s Decision

The Delaware Supreme Court unanimously reversed the Chancery Court’s decision, holding that the business judgment rule, rather than the entire fairness standard, applies to corporate reincorporation decisions. The Court emphasized that Delaware law has historically permitted boards to take steps to mitigate future liability exposure, such as obtaining D&O insurance or adopting indemnification provisions, without triggering an entire fairness review.

The Supreme Court clarified that a reincorporation decision will be protected under the business judgment rule if it occurs on a “clear day,” meaning there is no existing liability the move seeks to extinguish or pending litigation it aims to avoid. Here, the plaintiffs failed to allege any past misconduct or ongoing claims that would have made the redomestication improper. The Court also stated that comparing Delaware and Nevada corporate laws is not the judiciary’s role, as such policy decisions are the responsibility of state legislators and corporate boards.

Future Outlook

The Palkon decision, holding that courts will apply the business judgment rule to a board’s redomestication decisions if they were made on a clear day, significantly limits stockholder challenges to them. In making that “clear day” distinction, the Court differentiates “existing potential liability” for the fiduciaries from their “future potential liability.” If, for example, there was another pending or contemplated lawsuit (i.e., existing potential liability), then that would weigh “heavily in determining materiality” of a non-ratable benefit to a controller that would trigger an entire fairness review. As the Palkon Court stated, “…the hypothetical and contingent impact of Nevada law on unspecified corporate actions that may or may not occur in the future is too speculative to constitute a material, non-ratable benefit triggering entire fairness review.” Here, plaintiffs did not allege any past conduct that would lead to litigation, so there was no existing potential liability. In Delaware then, the temporal nature of the potential liability matters in determining whether there is a material non-ratable benefit to a controller and thus which standard of review to apply to redomestication decisions.

Moving forward, boards of directors of Delaware corporations contemplating redomestication should carefully document their decision-making process to demonstrate that the move occurs on a “clear day” and is not designed to evade existing potential liability. Legal counsel should be engaged early in the process to ensure compliance with corporate governance best practices and to mitigate potential stockholder disputes.

For further inquiries or questions, please contact Steve Migala at smigala@lavellelaw.com or 847-705-7555.

Transforming Chicago’s Housing Market: New Legislation and Opportunities for Property Owners

Wed, 12 Mar 2025 16:30:39 GMT

Land Use Reform in Chicago: Expanding Housing Opportunities

Recent legislative efforts in Illinois are reshaping the state’s approach to residential zoning, with significant implications for the housing market. A new bill, House Bill 1814 , introduced last week, aims to eliminate single-family zoning in municipalities across Illinois. If passed, this bill will allow for the development of multi-unit buildings in areas currently zoned exclusively for single-family homes. This initiative, alongside a similar bill introduced last year, has the potential to address the state’s growing housing shortage and make housing more affordable for middle-class families.

The Impact of House Bill 1814

Sponsored by State Rep. Bob Rita, Rep. Jay Hoffman, and Rep. Kam Buckner, House Bill 1814 would require municipalities with populations of 10,000 or more to permit multi-unit buildings on most residential lots. In cities with populations of 25,000 or more, zoning laws would allow multi-unit buildings on lots of 5,000 square feet or more. This legislation is part of a broader movement to encourage the development of "middle-density" housing—such as duplexes, triplexes, and townhouses—that is affordable for middle-income families, which are often left out of both the luxury housing market and the subsidized affordable housing sector.

With the goal of addressing the lack of affordable housing options for the middle class, this bill provides a pathway to building more units on existing residential lots, which improves the overall housing supply. Governor JB Pritzker has endorsed these reforms, recognizing that increasing housing availability is crucial for the economic well-being of families across Illinois.

Opportunities for Converting and Expanding Properties in Chicago

For property owners in Chicago, this legislation opens up several opportunities for development. One practical option is converting existing three-unit buildings into four-unit properties. This type of conversion allows property owners to increase the rental income potential of their buildings while maintaining the existing structure. However, it's important for property owners to consult with zoning experts and understand local regulations to ensure compliance with zoning laws, especially in neighborhoods zoned for low-density residential use, such as RS-3.

The potential for converting properties into higher-density units aligns with the broader goal of increasing affordable housing options in the city. As zoning regulations evolve, property owners may find it easier to make such conversions in the future.

Building Coach Houses: A Growing Trend

Another avenue for increasing housing density in Chicago is the construction of coach houses. These are small, detached secondary units built behind or beside a primary residence. Chicago’s Additional Dwelling Units (ADU) Ordinance , implemented in 2021, allows for the construction of coach houses in certain areas of the city. These units provide homeowners with an additional source of rental income and offer flexible housing options, such as accommodations for extended family members or long-term renters.

Coach houses are becoming an increasingly popular way to add housing without drastically changing the character of neighborhoods. However, property owners must ensure that their projects comply with zoning regulations related to unit size, height, and rental use.

Conclusion

The potential reform of residential zoning laws in Illinois, especially in Chicago, presents significant opportunities for property owners and developers. Whether through converting three-unit buildings into four-units or adding coach houses, these changes help address the growing demand for affordable housing in urban areas. As legislation progresses, it is crucial for property owners to stay informed about evolving zoning laws to take full advantage of these new opportunities.

Should you have additional questions regarding the subject matter hereinabove, please call us at 847-705-7555 or email Attorney Chance W. Badertscher at cbadertscher@lavellelaw.com to schedule your free and confidential one-hour consultation.

LATEST UPDATE on the Corporate Transparency Act and BOI Report Filings

Tue, 11 Mar 2025 16:36:01 GMT

On February 27, 2025, FinCEN issued an immediate press release stating it would not impose fines, penalties, or take any other enforcement actions against companies that fail to file or update Beneficial Ownership Information ("BOI") reports pursuant to the Corporate Transparency Act ("CTA") by the current deadlines. FinCEN also announced that it would be revising BOI reporting deadlines through an interim final rule set to be issued no later than March 21, 2025.

Following FinCEN’s announcement, the Treasury Department released a statement on March 2, 2025, confirming that it will not enforce any penalties or fines related to the BOI reporting rule under the existing deadlines. Moreover, once the forthcoming rule changes take effect, the Treasury Department has indicated that U.S. citizens, domestic reporting companies, and their beneficial owners will not be subject to enforcement actions for prior noncompliance. The agency also revealed plans to issue a proposed rulemaking that would narrow the rule’s applicability to foreign reporting companies only.

For those domestic reporting companies that have already filed BOI reports, note that any continuing obligations to file updated BOI reports will seemingly terminate pursuant to the interim final rule that is expected before March 21, 2025. However, the BOI filings remain voluntary at this point, and if any reporting companies desire to comply with the CTA and avoid any non-compliance or confusion that may occur if the CTA is ever reinforced after the interim final rule takes effect, those reporting companies may still file a BOI report.

For further inquiries or questions, please contact Attorney Frank J. Portera at fportera@lavellelaw.com or (847) 705-7555.

Tim’s Tax News on the Tenth – March 2025

Mon, 10 Mar 2025 17:12:31 GMT

IRS Releases its List of Dirty Dozen Tax Scams for 2025

The IRS recently published its yearly list of the most prevalent tax scams known as its Dirty Dozen. The list is obviously not exhaustive but an attempt to warn taxpayers of trends seen by the IRS. The IRS list of tax scams for 2025 came with a warning for taxpayers, businesses, and tax professionals to watch out for common schemes that threaten their tax and financial information.

Ranging from email schemes to misleading tax credits, many of the Dirty Dozen items peak during filing season as people prepare their tax returns. In reality, these scams can occur throughout the year as fraudsters look for ways to steal money, personal information, and data.

“Scammers are relentless, and they use the guise of tax season to try tricking taxpayers into falling into a variety of traps. These red flags can lead to everything from identity theft to being misled into claiming tax credits for which they’re not entitled,” said Terry Lemons, IRS communications senior adviser. “For more than two decades, the IRS has highlighted the Dirty Dozen through far-reaching communications and education campaigns as part of a wider effort by the agency to protect taxpayers from being scammed.”

1. Email phishing scams: The IRS continues to see a barrage of email and text scams targeting taxpayers and others. Taxpayers and tax professionals should be on alert to fake communications from entities posing as legitimate organizations in the tax and financial community, including the IRS, state tax agencies, and tax software companies. These messages arrive in the form of unsolicited texts or emails to lure unsuspecting victims into providing valuable personal and financial information that can lead to identity theft. There are two main types:

Phishing: An email sent by fraudsters claiming to come from the IRS. The email lures the victims into the scam with a variety of ruses such as enticing victims with a phony tax refund or threatening them with false legal or criminal charges for tax fraud.
Smishing: A text or smartphone SMS message where scammers often use alarming language such as, "Your account has now been put on hold," or "Unusual Activity Report," with a bogus "Solutions" link to restore the recipient's account. The promise of unexpected tax refunds is another potential tactic used by scam artists.

As a reminder, never click on any unsolicited communication claiming to be from the IRS as it may surreptitiously load malware. This may also be a way for malicious hackers to load ransomware that keeps the legitimate user from accessing their system and files.

2. Bad social media advice: Another growing concern in 2025 continues to involve incorrect tax information on social media that can mislead honest taxpayers with bad advice, potentially leading to identity theft and tax problems. Social media platforms routinely circulate inaccurate or misleading tax information, including on TikTok where people share wildly inaccurate tax advice. Some involve urging people to misuse common tax documents like Form W-2.

The IRS warn people not to fall for these scams and urge them to follow trusted social media advice from the IRS, tax professionals, and other reputable sources. The IRS reminds taxpayers who knowingly file fraudulent tax returns that they could potentially face significant civil and criminal penalties.

3. IRS Individual Online Account help from scammers: Swindlers can pose as a "helpful" third party and offer to help create a taxpayer's IRS Individual Online Account at IRS.gov. In reality, no help is needed, and the agency offers tips on how to sign up and avoid scams. The IRS Individual Online Account provides taxpayers with valuable personal tax information. But watch out: Third parties making these offers will try to steal a taxpayer's personal information and try to submit fraudulent tax returns in the victim's name to get a big refund.

4. Fake charities: Bogus charities are a perennial problem that can intensify whenever a crisis or natural disaster strikes. Scammers set up these fake organizations to take advantage of the public's generosity. They seek money and personal information, which can be used to further exploit victims through identity theft.

Taxpayers who give money or goods to a charity might be able to claim a deduction on their federal tax return if they itemize deductions, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.

5. False Fuel Tax Credit claims: A major concern during the past year involved taxpayers who were misled into believing they were eligible for the Fuel Tax Credit. The credit is meant for off-highway business and farming use and is not available to most taxpayers. However, unscrupulous tax return preparers and promoters, including people on social media, continue enticing taxpayers into inflating their refunds by erroneously claiming the credit. The IRS has seen an increase in the promotion of filing certain refundable credits using Form 4136. The IRS urges people to get more information and ensure they are properly claiming this credit.

6. Credits for Sick Leave and Family Leave: This specialized credit is available for self-employed individuals for 2020 and 2021 during the pandemic; the credit is not available for later tax years. The IRS is seeing repeated instances where taxpayers are using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to incorrectly claim a credit based on income earned as an employee and not as a self-employed individual.

7. Bogus self-employment tax credit: Social media advice continues to circulate about a non-existent “Self-Employment Tax Credit” that’s misleading taxpayers into filing false claims. Promoters market it as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to misleading marketing around the Employee Retention Credit, there is inaccurate information being circulated that suggests many people qualify for the tax credit and payments of up to $32,000 when they actually do not.

In reality, the underlying credit being referred to in social media is not called the “Self-Employment Tax Credit,” it’s a much more limited and technical credit called the Credits for Sick Leave and Family Leave. Many people simply do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk.

8. Improper household employment taxes: Taxpayers “invent” fictional household employees and then file Schedule H (Form 1040), Household Employment Taxes, to claim a refund based on false sick and family medical leave wages they never paid.

9. The overstated withholding scam: This is a recent scheme circulating on social media encouraging people to fill out Form W-2, Wage and Tax Statement, or other forms like Form 1099-NEC and other 1099s with false income and withholding information.

In this overstated withholding scheme, scam artists suggest people make up large income and withholding amounts as well as the fictional employer supplying those amounts. Scam artists then instruct people to file the bogus tax return electronically in hopes of getting a substantial refund due to the large amount of fraudulent withholding.

If the IRS cannot verify the wages, income, or withholding credits entered on the tax return, the tax refund will be held pending further review. Taxpayers should always file a complete and accurate tax return. They should only use legitimate information returns, such as an employer-issued Form W-2, to complete returns correctly.

There are multiple variations of the overstated withholding credit scheme, including those involving Forms W-2 and W-2G; Forms 1099-R, 1099-NEC, 1099-DIV, 1099-OID, and 1099-B; as well as the Alaskan Dividend Fund, Schedule K-1 with Withholding Reported, and Unspecified Source of Withholding Credit Claimed.

10. Misleading Offers in Compromise: The Offers in Compromise (OIC) program is an important program that helps people settle their federal tax debts when they are unable to pay in full. But "mills" can aggressively promote Offers in Compromise in misleading ways to people who clearly don't meet the qualifications, frequently costing taxpayers thousands of dollars. A taxpayer can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.

11. Ghost tax return preparers: Most tax preparers provide outstanding and professional service. However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. A major red flag or bad sign is when the tax preparer is unwilling to sign the return. Avoid these "ghost" preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number (PTIN) as required by law. Taxpayers should never sign a blank or incomplete return. Instead, the IRS reminds taxpayers to turn to a trusted tax professional for help.

12. New client scams and spear phishing: In 2025, the IRS continues to see the "new client" scam, which involves spear phishing attempts that target tax pros. Cybercriminals impersonate new, potential clients to trick tax professionals and other businesses into responding to their emails. Once the tax pro responds, the scammer sends a malicious attachment or URL that can compromise the preparer's computer systems and allow the attacker to access sensitive client information.

Phishing is a term given to emails or text messages designed to get users to provide personal information, and spear phishing is a phishing attempt tailored to a specific organization or business. Tax professionals frequently find themselves a target of this type of scam. Spear phishing holds greater potential for harm because a successful spear phishing attack can ultimately steal client data and the tax pro’s identity, allowing the thief to file fraudulent returns using the stolen information.

Businesses and individuals, including tax pros, should always be cautious and look out for any suspicious requests or unusual behavior before sharing any sensitive information or responding to an email. Warning signs include poorly constructed sentences and unusual word choices. Be aware that by gaining access to a hacked email account, scammers can locate a genuine email from a previous victim's email account sent to their tax professional.

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Success Story – Small Business Owner Recovers Substantial Amount Levied by the State

Wed, 05 Mar 2025 17:24:23 GMT

Background:

Lavelle Law represented a small Illinois business owner who had accumulated a large sales tax balance due to their accountant’s negligence. Unbeknownst to the client Illinois Department of Revenue (“IDOR”) was at the levy issuance phase in its collection. And the IDOR levied the taxpayer’s account right after the taxpayer had deposited funds from a HELOC that was obtained to provide capital to the company for the next 6 plus months.

Challenges:

Once IDOR levies funds, it is very difficult to get all or even some of the funds released.

Result:

After persistent presentation of the facts, the IDOR released about 60% of the levied funds back to the taxpayer. That release allowed the taxpayer to keep its doors open and provided time for the owner to negotiate a resolution with the IDOR.

New Illinois Child Support Law: Closing Loopholes on Voluntary Unemployment

Thu, 27 Feb 2025 00:27:05 GMT

The Illinois legislature has recently taken a significant step in closing a longstanding loophole in child support. This amendment represents a pivotal change in how courts assess and calculate child support obligations, providing greater protections against those who attempt to evade their financial responsibilities.

Previous Challenges in Child Support Enforcement

Historically, Illinois law lacked a clear statutory directive for handling cases where a parent deliberately chose not to work or earned significantly below their capacity to reduce child support obligations. Courts could consider voluntary unemployment or underemployment on a case-by-case basis, but there was no uniform rule requiring the imputation of income. This led to inconsistencies in how courts addressed parents who manipulated their employment status to avoid paying fair child support.

The lack of clear statutory language often resulted in protracted litigation, as custodial parents sought to prove that the other parent was intentionally earning less than they were capable of. The burden of proof on custodial parents was significant, and many payors were able to successfully argue that their lower income was legitimate, despite evidence suggesting otherwise. This loophole created financial hardships for children who depended on child support for their well-being.

New Statutory Provisions on Potential Income

The recent amendment to the Illinois child support statute introduces Section (3.2a) Unemployment or Underemployment, which explicitly empowers courts to calculate child support based on a parent’s potential income rather than just their reported earnings. The statute provides a structured approach to determine a parent's earning capacity by considering multiple factors, including but not limited to:

The parent's assets and substantial non-income producing assets;
Their residence and standard of living;
Employment and earning history;
Job skills and educational background;
Literacy, age, and health;
Criminal records and employment barriers;
Record of seeking work;
The availability of local jobs and prevailing earning levels.

Additionally, if a parent has insufficient work history to determine their probable earnings, courts will apply a rebuttable presumption that their potential income is 75% of the Federal Poverty Guidelines for a single-person household. This ensures that even in cases where past employment records are lacking, courts have a baseline for calculating child support.

Key Implications of the Amendment

With this new provision, Illinois courts now have statutory authority to address bad faith attempts to evade child support by remaining unemployed or underemployed. This amendment:

Reduces Legal Ambiguity – Courts now have a clear mandate to assess potential income, leading to more consistent rulings.
Protects Children’s Financial Interests – By imputing income based on ability rather than actual earnings, courts can ensure that children receive the support they need.
Discourages Bad Faith Employment Decisions – Parents can no longer manipulate the system by choosing not to work or taking significantly lower-paying jobs to reduce their obligations.
Establishes a Fair Standard – The consideration of multiple factors ensures that the determination of potential income is equitable and based on realistic earning potential.

It is also important to note that incarceration is explicitly excluded from being considered voluntary unemployment when establishing or modifying child support obligations. This clarification prevents undue hardship on individuals who are unable to work due to incarceration.

What This Means for Parents

For custodial parents seeking child support, this change provides stronger legal footing to argue for a fair assessment of support obligations. For paying parents, it reinforces the importance of making genuine efforts to maintain employment and fulfill financial responsibilities toward their children.

If you have questions about how this change might impact you or your child support case please contact Joseph Olszowka at jolszowka@lavellelaw.com or 847-241-1783.

LATEST UPDATE on the Corporate Transparency Act and New Deadline for Filing BOIR

Thu, 20 Feb 2025 22:26:38 GMT

On February 13, 2025, we published an article titled “Updates Regarding the Corporate Transparency Act Hold: Key Implications for Businesses." This article will serve as another update to the ongoing Corporate Transparency Act developments. As of February 17, 2025, a federal judge in the Eastern District of Texas lifted the injunction it had ordered on January 7, 2025, in Smith v. U.S. Department of the Treasury , 6:24-cv-00336 (E.D. Tex.), allowing the federal government to once again enforce the Corporate Transparency Act and its Beneficial Ownership Information Report requirements.

Note that FinCEN has instituted a new March 21, 2025, deadline for all Reporting Companies that have not yet filed their initial FinCEN BOIRs, although FinCEN has stated that it will assess its options to further modify deadlines while prioritizing reporting for those entities that pose the most significant national security risks. Further, FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce the burden for lower-risk entities, including many US small businesses. For further inquiries or questions, please contact Attorney Frank J. Portera at fportera@lavellelaw.com or (847) 705-7555.

Litigation 101: A Step-by-Step Guide to Bringing a Lawsuit in Illinois

Fri, 14 Feb 2025 23:18:40 GMT

In our first Litigation 101 article, we discussed how to approach key phases of a lawsuit after being sued. This article is the second in our Litigation 101 series. It focuses on the flip side: how to sue someone else.

Suing someone is a serious decision that requires careful thought and preparation. Before pursuing legal action, it’s crucial to reflect on the issue and understand the steps involved in bringing a lawsuit. This article outlines the basics to help you approach the process with confidence and make informed decisions.

Step 1: Assess the Validity of Your Claim

The first step is determining whether you have a valid claim. Not every wrong or grievance constitutes grounds for a lawsuit. Legal claims often require proving specific elements, which can vary depending on the type of case. Consulting with an experienced attorney is essential to evaluate your situation and determine whether you have a viable case.

In some instances, sending a demand letter to the opposing party may resolve the issue without litigation. A demand letter formally outlines your grievance and requests a resolution, potentially saving you time and legal expenses. Exploring alternative dispute resolution (ADR) methods before initiating a lawsuit can often lead to quicker and less costly outcomes.

Step 2: File a Complaint

If informal efforts to resolve the matter are unsuccessful, the next step is filing a complaint. A complaint is a legal document that outlines your claims and the relief you are seeking. This stage requires careful attention to detail and legal strategy, so consulting an attorney is strongly recommended.

Choosing the Proper Court

Selecting the correct court to file your case in is more complex than it might seem. Courts have specific rules regarding jurisdiction—the authority to hear a case—and venue, which determines the most appropriate location for the trial. Multiple courts may have jurisdiction over your case, but strategic considerations often influence the choice of where to file.

Service of Process

Once the complaint is filed, the next step is serving the defendant with a summons and a copy of the complaint. This process, known as “service of process,” must follow strict guidelines based on the jurisdiction. Proper service ensures the defendant is notified of the lawsuit and their obligation to respond.

Step 3: Engage in Discovery

After the defendant responds to the complaint, the discovery phase begins. For more information on responding to complaints, please review our "Litigation 101: A General Guide" article.

Discovery is a critical part of litigation where both sides gather evidence and information to support their claims. Common discovery methods include:

Interrogatories : Written questions that the opposing party must answer under oath.
Document Requests : Requests for specific documents relevant to the case.
Depositions : Oral testimony taken under oath, usually in the presence of attorneys for both parties.

Discovery can be time-consuming and procedural rules vary by jurisdiction. Adhering to deadlines and processes is essential to avoid jeopardizing your case.

Step 4: Consider Settlement or Alternative Dispute Resolution (ADR)

Many lawsuits are resolved without going to trial. During or even before discovery, parties often explore settlement options or ADR methods, such as:

Negotiation : Informal discussions between parties or their attorneys to reach a mutually acceptable resolution.
Mediation : A facilitated negotiation led by an impartial mediator who helps the parties reach an agreement.
Arbitration : A more formal process where an independent arbitrator hears both sides and renders a binding decision.

These alternatives can save significant time and costs while providing more control over the outcome.

Step 5: Present Your Case at Trial

If settlement efforts fail, the case proceeds to trial. During the trial, both parties present evidence and arguments before a judge or jury, who will decide the outcome. Trials can be lengthy, expensive, and unpredictable.

In Illinois, approximately 96% of civil cases are resolved before reaching trial. This statistic highlights the importance of exploring settlement or ADR methods where possible. However, if your case goes to trial, working closely with an attorney ensures your rights and interests are effectively represented.

Step 6: Appeal the Decision

If either party is dissatisfied with the trial court’s decision, they may file an appeal. An appeal asks a higher court to review the case for legal errors that may have impacted the outcome. Appeals focus on the application of law rather than re-examining evidence or witness testimony.

The appeals process is complex and requires skilled legal representation. Discussing the merits of an appeal with an attorney can help you weigh the potential benefits and drawbacks of continuing your legal fight.

Final Thoughts

Bringing a lawsuit in Illinois involves multiple steps, each with its own set of rules and challenges. From assessing the validity of your claim to navigating discovery, settlement negotiations, and potentially a trial, every stage requires careful planning and legal expertise.

Consulting with an experienced attorney ensures you’re well-prepared and positioned to achieve the best possible outcome. If you have questions regarding initiating a lawsuit or managing a current legal dispute contact Sarah Reusché, at sreusche@lavellelaw.com , to schedule a consultation.

Updates Regarding the Corporate Transparency Act Hold: Key Implications for Businesses

Thu, 13 Feb 2025 21:17:17 GMT

BACKGROUND

On December 11, 2024, we published an article titled “ Corporate Transparency Act on Hold: Key Implications for Businesses ,” which addressed the nationwide injunction impacting the enforcement of the Corporate Transparency Act (“CTA”) and its Beneficial Ownership Information Reporting (“BOIR”) rule.

Since then, there have been a few significant legal developments that businesses should monitor closely. While the Financial Crimes Enforcement Network (“FinCEN”) is currently prohibited from enforcing BOIR requirements, ongoing litigation, and the related appeals may alter this status. Below, we provide a timeline of key events and insights into what business owners should anticipate moving forward.

KEY LEGAL DEVELOPMENTS

December 3, 2024 : The U.S. District Court for the Eastern District of Texas issued a nationwide injunction, blocking the enforcement of the CTA. Texas Top Cop Shop, Inc., et al. v. McHenry, et al. , No. 4:24-cv-00478 (E.D. Tex.) (formerly Texas Top Cop Shop, Inc., et al. v. Garland, et al. ).
Impact : This ruling suspended BOIR compliance obligations for Reporting Companies under the CTA.
December 23, 2024 : The Motions Panel of the U.S. Court of Appeals for the Fifth Circuit granted a stay of the District Court’s December 3, 2024 injunction.
Impact : This stay reinstated the BOIR obligations, requiring Reporting Companies to comply with the CTA before a new January 13, 2025 deadline.
December 26, 2024 : The Merits Panel of the Fifth Circuit vacated the December 23, 2024 stay issued by the motions panel.
Impact : The District Court’s December 3, 2024 injunction was reinstated, again suspending BOIR requirements indefinitely.
December 31, 2024 : The United States Department of Justice filed an application for stay with the U.S. Supreme Court requesting the December 3, 2024, injunction be stayed or narrowed pending proceedings in the Fifth Circuit.
Impact : This set the stage for further judicial review and potential changes in compliance obligations.
January 7, 2025 : The U.S. District Court for the Northern District of Texas issued a second nationwide injunction enjoining the enforcement of the CTA. Smith v. Dept. of the Treasury, E.D. Tex. , No. 6:24-cv-00336.
Impact : This ruling further reinforced the suspension of BOIR compliance requirements.
January 23, 2025 : The U.S. Supreme Court granted a stay on the December 3, 2024, injunction ( Top Cop Shop ) pending the appeals process.
Impact : While this lifted the first injunction, it did not affect the second nationwide injunction issued on January 7, 2025, and FinCEN is still prohibited from enforcing the BOIR requirements.

FUTURE OUTLOOK

On January 24, 2025, FinCEN issued an advisory report confirming that BOIR obligations remain suspended due to the January 7, 2025 injunction. However, given the United States Supreme Court’s intervention in the December 3, 2024 injunction, Reporting Companies should be prepared for the possibility of a similar ruling affecting the Smith injunction issued on January 7, 2025. If this occurs, compliance obligations could resume swiftly.

RECOMMENDATIONS

Prepare for Potential Compliance: If the current injunction is lifted, businesses may need to act quickly to meet reporting deadlines. Establishing compliance mechanisms in advance and gathering required information can help mitigate risks.

Consider Voluntary Compliance: While not mandatory at this time, businesses may opt to voluntarily follow BOIR obligations to avoid last-minute compliance challenges should the legal landscape shift.

Monitor Ongoing Legal Developments: Given the rapid changes in CTA enforcement, staying informed is crucial. Businesses should consult legal counsel to navigate compliance requirements effectively.

For further inquiries or questions, please contact Attorney Frank J. Portera at fportera@lavellelaw.com or (847) 705-7555.

Breakfast Briefs Presentation - New Illinois Employment Laws for 2025

Wed, 12 Feb 2025 21:40:53 GMT

Watch this video to understand the new Illinois employment laws taking effect in 2025 and learn how to protect your business. This video was recorded on January 29, 2025, during a Lavelle Law Breakfast Briefs presentation with attorneys, Lance Ziebell and Kelly Anderson.

CLICK HERE for a pdf version of the slide deck.

Tim’s Tax News on the Tenth – February 2025

Mon, 10 Feb 2025 22:45:39 GMT

IRS Special Payments Sent to 1 Million Taxpayers Who Did Not Claim 2021 Recovery Rebate Credit

The Internal Revenue Service is issuing automatic payments to eligible people who did not claim a Recovery Rebate Credit on their 2021 tax returns. The payments are in follow up to an IRS announcement last month of the intent to take this special step. The IRS took this step after reviewing internal data showing many eligible taxpayers who filed a return but did not claim the credit. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (“EIP”), also known as stimulus payments.

No action is needed for eligible taxpayers to receive these payments, which should have arrived in most cases by late January 2025. The payments will be automatically direct deposited or sent by paper check; eligible taxpayers will also receive a separate letter notifying them of the payment. The payments vary depending on several factors, but the maximum payment is $1,400 per individual. The IRS has estimated the amount of payments going out will be about $2.4 billion.

The IRS also reminded taxpayers who have not filed 2021 tax returns they might be eligible as well, but they face an April 15, 2025, deadline to file their returns to claim the credit and any other refund they might be owed.

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Banking and Business – February 2025

Wed, 05 Feb 2025 20:14:07 GMT

SCOTUS Resolves Circuit Split on FLSA Exemption Standard

BACKGROUND

The Fair Labor Standards Act (FLSA) establishes federal minimum wage and overtime pay requirements, with exemptions for employees in bona fide executive, administrative, professional, computer or outside sales roles. 29 U.S.C. § 213. Employees classified as "outside sales" must primarily engage in making sales or obtaining contracts for services or the use of facilities, and they must conduct their work primarily away from their employer’s place of business. 29 C.F.R. § 541.500.

Until recently, a key question for employers has been: What standard of proof is required to demonstrate that an employee qualifies for an FLSA exemption? This issue led to a circuit split, with the Fourth Circuit applying a heightened clear and convincing evidence standard, while other circuits, such as the Fifth Circuit, adhered to the more common preponderance of the evidence standard. See Carrera v. E.M.D. Sales Inc. , 75 F.4th 345 (4th Cir. 2023); Adams v. All Coast, L.L.C. , 15 F.4th 365 (5th Cir. 2021).

In 2025, the Supreme Court of the United States resolved this dispute in E.M.D. Sales Inc. v. Carrera , 220 L.Ed. 2d 309 (2025), holding that the preponderance of the evidence standard applies when proving FLSA exemptions.

CASE HISTORY

E.M.D. Sales Inc. (EMD), a food product distributor in the Washington, D.C. area, employed sales representatives responsible for managing inventory and taking orders at grocery stores. Carrera v. E.M.D. Sales, Inc. , 402 F.Supp. 3d 128, 129 (D. Md. 2019). Several of these sales representatives sued EMD, alleging that they were misclassified as outside sales employees and were therefore entitled to overtime pay under the FLSA. Id .

EMD argued that the employees fell under the FLSA’s outside sales exemption. Id . at 146. However, the U.S. District Court for the District of Maryland ruled that EMD failed to prove the exemption by clear and convincing evidence, concluding that the employees primarily executed pre-existing sales agreements rather than making independent sales. Id .

On appeal, EMD contended that the preponderance of the evidence standard should apply, as it is the standard used in most civil litigation. Carrera v. E.M.D. Sales Inc. , 75 F. 4th, 345, 351 (4th Cir. 2023). The Fourth Circuit disagreed, affirming its precedent that FLSA exemptions must be proven by clear and convincing evidence. Id . at 355.

SCOTUS DECISION

The Supreme Court granted certiorari to resolve the circuit split on the appropriate burden of proof for FLSA exemptions. E.M.D. Sales , 220 L.Ed. 2d 309, 314 (2025). The plaintiffs argued for a heightened standard, citing the public interest in protecting employees and the non-waivable nature of FLSA rights. However, the Court rejected this argument, noting that other employment laws with significant public policy implications—such as Title VII of the Civil Rights Act—use the preponderance of the evidence standard. Id . at 316.

The Supreme Court held that preponderance of the evidence is the correct standard for proving FLSA exemptions. Id . at 317. The Court emphasized that preponderance of the evidence is the default standard in civil litigation unless a statute or constitutional provision mandates a higher standard, or the case involves coercive government action—neither of which applied in E.M.D. Sales. Id . at 312.

TAKEAWAYS

The Supreme Court’s ruling provides clarity and consistency for employers, but it also underscores the importance of correctly classifying employees. In our M&A practice, we are seeing employee misclassification as a hot diligence issue. Employers should consider the following:

Ensure Proper Classification – Employers must carefully assess whether employees classified as exempt truly meet the job duties and salary threshold tests under the FLSA. Misclassification can lead to costly class action lawsuits and substantial back pay liability. In the M&A context, misclassification can lead to buyers requesting additional indemnification and holdbacks from the purchase price.
Conduct Internal Audits – Employers should work with counsel to conduct regular internal audits to ensure that job duties and salaries align with both federal and state exemption requirements. Importantly, state laws may impose stricter exemption standards, and compliance with federal law alone may not be sufficient. If an employee qualifies as exempt under federal law but not under state law, state law governs, and the employee must receive overtime pay.
Monitor Federal and State Regulations – Employers should stay informed on wage and hour law developments, including the Department of Labor’s April 23 Final Rule increasing the federal overtime salary threshold. The Trump administration’s approach to enforcement will be key in shaping future compliance requirements.

While the Supreme Court’s decision in E.M.D. Sales Inc. v. Carrera is a favorable development for employers, making it easier to prove FLSA exemptions, employers must remain vigilant in properly classifying employees, conducting compliance audits, and staying current with federal and state labor laws.

For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555.

A Guide for Dealers in Navigating Recent Amendments to the Illinois Biometric Information Privacy Act (BIPA)

Thu, 23 Jan 2025 20:00:36 GMT

On April 30, 2024, we published an article on "BIPA Compliance: A Guide for Vehicle Dealerships to Mitigate Litigation Risks" . This article highlights recent amendments to BIPA and ways in which they will likely impact dealers.

Amendments to BIPA

SB 2929 became effective on August 2, 2024. Codified as 740 ILCS 14/10 and 14/20, this Act introduced two pivotal changes to BIPA that dealers should be aware of:

Limiting Per-Scan Damages: The amendments clarify that a single violation under BIPA accrues per type of violation, rather than per scan. This significantly reduces the financial exposure for dealerships.
Electronic Consent: The amendments formalize electronic signatures as a valid means of securing biometric consent, streamlining compliance processes for businesses.

Implications for Compliance and Violations

These amendments represent a step toward mitigating BIPA’s financial impact on all businesses and especially dealerships that use extensive database technology when interfacing with customers.

By capping damages for violations, the amended BIPA weakens the financial incentive for plaintiffs and class-action suits predicated on accumulating per-scan penalties. This may lead to a reduction in litigation and provide dealers with greater leverage in settlement negotiations.

However, the amendments do not specify retroactivity. This leaves Illinois courts to decide whether these changes apply to claims that existed prior to August 2, 2024. If deemed retroactive, the amendments could substantially reduce liability for pending lawsuits. If not, their impact will be delayed until existing claims fall outside the statute of limitations.

Despite these changes, dealers still face significant risks, particularly in cases involving large datasets or systemic non-compliance. BIPA’s private right of action remains intact, and dealers must adhere to stringent compliance requirements to avoid costly litigation.

Final Thoughts

The passage of amendments to BIPA mark an important acknowledgment by the Illinois legislature of the expansive liability risks companies faced under the original BIPA. While the amendments limit potential damages and simplify consent procedures, dealers must remain vigilant in their compliance efforts. The private right of action and stringent procedural requirements still pose considerable challenges.

If you have questions about BIPA compliance or need guidance on navigating potential violations, contact Sarah Reusché at sreusche@lavellelaw.com to schedule a consultation.

Election Law & Tips for a Successful Candidacy

Wed, 22 Jan 2025 00:22:30 GMT

Attorney Jack Lydon delivers an insightful breakdown of election law, covering everything from getting on the ballot to staying on it, along with the necessary timing and procedural steps. If you're considering running for local office in Illinois, this video is a must-watch. Begin the process early and make sure to follow the right procedures every step of the way. For more information, contact attorney Jack Lydon at 847-705-7555 or lydonj@lavellelaw.com .

Tim’s Tax News on the Tenth – January 2025

Fri, 10 Jan 2025 17:26:23 GMT

IRS National Taxpayer Advocate Releases Annual Report to Congress. And in an Unrelated Matter DOJ Tax Division Obtains Denial of Discharge Against Married Couple.

The National Taxpayer Advocate, recently released her annual report to Congress. A few highlights from the report are summarized below:

Taxpayers and tax practitioners are supposedly receiving better service from the IRS. The Taxpayer Advocate said that the wait times to reach an IRS customer service representative have been shortened.
Taxpayers are supposedly receiving their income tax refund timelier.
The Taxpayer Advocate’s report criticized the long wait times for taxpayers to receive their legitimate Employee Retention Tax Credit Payments. There is currently a backlog of 1.2M claims. Most of these claims are taking well in excess of 1 to 2 years to process. The Service only expects to process 500K this fiscal year.
The problem of Identity Theft Victim Assistance has worsened in the past year. It is now taking the IRS about 24 months to handle an individual claim. This is up from 19 months in 2023. These delays affected more than 500K taxpayers last year.

In a matter unrelated to the Taxpayer Advocate’s report, and in follow-up to a recent TNT Article on the possible discharge of income taxes in bankruptcy - the US DOJ Tax Division stopped such relief to a married couple in Oklahoma. The couple failed to keep sufficient records, failed to file tax returns for several years, and could not satisfactorily explain their loss of $90 million in assets in the years leading up to the bankruptcy. The couple listed about $79,000 in assets and debts of more than $30 million, mostly tax liabilities to the IRS. The IRS was able to prove that they were not worthy of a fresh start.

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New Year, New Laws – 2025

Wed, 08 Jan 2025 22:31:18 GMT

Nearly 300 New Illinois Laws are going into effect in 2025. Listed below are some that may have a significant impact on you or your business.

Illinois Human Rights Act

(SB 3310/PA 103-0973) : Extends the deadline for employees to file discrimination charges from 300 days to 2 years but does not affect claims under the federal Equal Employment Opportunity Commission.
(HB 4867/PA 103-0785) : Amended to include the prohibition of discrimination on the basis of “reproductive health decisions.”
(HB 2161/PA 103-0797) : Amended to include the prohibition of discrimination on the basis of “family responsibilities.”

Equal Pay Act (HB 3129/PA 103-0539) : Requires employers with 15+ employees to include pay scale and benefits in job postings for Illinois-based or reporting positions, notify current employees of promotion opportunities within 14 days of external postings, and imposes escalating penalties for noncompliance, ranging from $500 to $10,000.

Personnel Record Review Act (HB 3763/PA 103-0845) : Expands the documents employers must provide to employees upon request to include benefits-related records, employment contracts, handbooks, and policies affecting employment qualifications. It clarifies that requests for personnel records must be made in writing, with a 7-day response deadline from receipt, and outlines specific requirements for the employee’s request. It also allows employees to file suit in state court if an Illinois Department of Labor (IDOL) complaint is not resolved within 180 days, with the possibility of seeking attorney fees.

Illinois Wage Payment and Collection Act (SB 3208/PA 103-0953) : Requires employers to provide employees with copies of pay stubs within 21 days of request, up to twice in any 12-month period, including the 12 months following employment separation. Employers must retain pay stubs for 3 years and may require requests to be made in writing to the individual responsible for maintaining the records.

Illinois Freedom to Work Act (SB 2737/PA 103-0915) : Limits the enforceability of non-compete and non-solicit agreements in the mental health industry for providers serving veterans and first responders, making such covenants unenforceable if their enforcement would likely increase the cost or difficulty for veterans or first responders seeking mental health services.

Landlord Retaliation Act (HB 4768/PA 103-0831) : Prohibits landlords from retaliating against tenants for taking certain protected actions unless the landlord can prove a legitimate, non-retaliatory reason or that the action began before the tenant's protected activity.

Landlord Tenant Act (HB 4926/PA 103-0840) : Bans landlords from charging application screening fees if a prospective tenant provides a reusable screening report prepared within the last 30 days, meeting specific state and federal requirements, including income verification and criteria consistent with the landlord's screening process.

Illinois Insurance Code

(HB 3639/PA 103-0454) : Amended to limit medically necessary epinephrine injectors for children and teens to $60 for a twin-pack.
(HB 2443/PA 103-0530) : Amended to require insurance companies to provide medically necessary hearing instruments for all individuals rather than just those under 18 years old.
(SB 2195/PA 103-0512) : Permits an enrollee at any age coverage of a prosthetic or custom orthotic device for the most appropriate model medically necessary for the enrollee.
(HB 5357/PA 103-0858) : Amended to require Insurance companies to respond to all applications for homeowners insurance by providing availability of coverage for loss caused by a sewer backup or overflow from a sump pump.

Worker Freedom of Speech Act (SB 3649/PA 103-0722) : Bans mandatory employee attendance at captive-audience meetings, for example, meetings providing information to employees on why they should not unionize.

Right to Privacy in the Workplace Act (SB 0508/PA 103-0879) : Prohibits employers from voluntarily enrolling in an E-Verify program or similar electronic employment verification system. Prohibits employers from imposing work E-Verify programs or similar electronic employment verification systems.

Whistle Blower Act (HB 5561/PA 103-0867) : Expands protections by replacing "retaliate" with "retaliatory action," broadening the scope to include not only adverse employment actions that would discourage an employee from reporting information (including about immigration status) but also threats of such actions.

Illinois Secure Choice Savings Program Act (HB 4719/PA 103-0681) : Altered so employers can designate open enrollment periods for the program, allowing employees who previously opted out to enroll later. Now allows employers to establish a qualified retirement plan at any time.

Large Event Facilities Act (SB 2876/PA 103-0927) : Requires event facilities with capacities of 3,500+ to provide labeled recycling and organic waste disposal, sets penalties for noncompliance, and authorizes prosecution by state or municipal attorneys.

State Employees Group Insurance Act of 1971

(SB 0446/PA 103-0818) : Amended to require state, county, and municipality employee-group-insurance-programs provide coverage for mental health therapy services for police officers and firefighters and their spouses or partners.
(HB 5643/PA 103-0870) : Amended to include coverage for at-home urinary pregnancy tests in group or individual policies for accident and health insurance or managed care plans.

Condominium Property Act (SB 2740/PA 103-0916) : Requires the board of managers of a condominium to adopt policies to reasonably accommodate unit owners with a disability, including accessible parking.

Illinois Municipal Code

(SB 3538/PA 103-1011) : Orders municipalities or counties that are self-insured for health insurance to include coverage for mental health counseling for first responders.
(SB 2751/PA 103-0621) : Prohibits charging building permit fees to veterans with disabilities or their caregivers for home improvements necessary to accommodate the veteran's disability.
(SB 2918/PA 103-0929) : Bars using any physical or mental disability, in whole or in part, that is the basis for an application of benefits under the Illinois Pension Code as grounds for discharging a police officer.
(HB 2154/PA 103-0796) : Forbids counties, townships, or municipalities from requiring permits or other approvals for the installation, maintenance, placement, replacement, or servicing of a battery-charged fence in certain instances.

Illinois Public Labor Relations Act (HB 5324/PA 103-0856) : Specifies that the annual reporting requirements for the Illinois Labor Relations Board and the Illinois Educational and Labor Relations Board will be based on a timeliness goal outlined in the Act rather than a specific schedule.

Illinois Vehicle Code

(SB 3775/PA 103-1047) : Requires the driver of a vehicle involved in certain types of crashes, where no police officer is present, to notify the specified law enforcement agency by the fastest available means.
(HB 5325/PA 103-0706) : Updates vehicle registration sticker placement requirements, revises definitions and rules related to motor vehicles and bicycles and modifies provisions on towing, traffic signals, crash reporting, vehicle lighting, street racing, and other operational regulations.
(HB 4589/PA 103-0677) : Requires transactions involving a catalytic converter to include the identification number of the vehicle from which it was removed and the party number or other identifying number.

State Revenue Sharing Act and Public Funds Investment Act (SB 0536/PA 103-0880) : Permits public agencies to invest funds in non-specified instruments, provided the investments comply with applicable laws and the agency's adopted investment policy.

Retailers Occupation Tax Act (SB 3362/PA 103-0983) : Clarifies that retailers making out-of-state sales of tangible personal property to Illinois customers are subject to the Retailers' Occupation Tax if certain conditions are met, treating the business as operating at the Illinois location where the property is delivered, or possession is taken.

Automatic Contract Renewal Act (SB 2764/PA 103-0919) : Mandates that businesses offering free trials longer than 15 days must email consumers at least three days before the cancellation deadline.

Consumer Fraud and Deceptive Business Practices Act (SB 3479/PA 103-0783) : Requires businesses offering veteran or military benefit services for a fee to disclose all terms upfront.

Child Labor Law of 2024 (SB 3646/PA 103-0721) : Demands employers obtain certificates authorizing minor employment, maintains detailed personnel records, restricts minors' working hours, prohibits them from certain hazardous industries, allows exceptions for specific roles like performing arts, and imposes penalties up to $60,000 for severe violations.

Abandoned Newborn Infant Protection Act (SB 3232/PA 103-0958) : Amended to require hospitals to provide the name and contact information of the child welfare agency holding custody of a newborn infant to any person who gave up the infant if the person seeks to reclaim the child within 30 days, similar to the policies followed by police and fire departments.

For a comprehensive list of the new Illinois laws, visit: https://www.ilga.gov/reports/Preview/Lawsfor2025

Cheers, and Happy New Year from Around the World and Lavelle Law!

Tue, 31 Dec 2024 20:37:31 GMT

As we say farewell to 2024, we’re excited to look back on the unforgettable moments from our Koozie Challenge! From the frozen wonders of Antarctica to the excitement of the Paris Olympics, and countless incredible destinations in between, the Lavelle Law koozie truly went the distance this year! A big thank you to our clients, staff, family, and friends who took part in the fun. Here’s to even more adventures in 2025! Happy New Year from Lavelle Law!

Lavelle Law concludes food drive benefiting the Schaumburg Township Food Pantry

Mon, 30 Dec 2024 16:36:03 GMT

As seen in the Daily Herald:

Schaumburg-based Lavelle Law wrapped its annual food drive benefiting the Schaumburg Township Food Pantry. During the month of October, Lavelle Law set up collection boxes around Schaumburg and the surrounding area, where residents and workers could drop off nonperishable food items, paper goods, personal care items, baby food and diapers. Participants could also make cash donations online.

Thanks to the generosity of residents and sponsors, the food drive was able to collect a massive amount of food for the pantry. The box located at the main branch of the Schaumburg library, for instance, was overfilled and needed to be picked up five times throughout the three-and-a-half-week event.

In addition to the food collected in the 16 boxes located throughout the northwest suburbs and the $12,115 collected in online cash donations, Lavelle Law Charities, in cooperation with Tony’s Fresh Market, provided the food pantry with $13,000 worth of food.

“This is a very important event for us each year,” Lavelle Law Managing Partner Ted McGinn said. “We have always been very involved in our community, and this event addresses a huge need that exists right here in our backyard. We are so grateful to everyone who participated and to all our business sponsors for helping make an impact.”

The Schaumburg Township Food Pantry currently serves more than 1,100 families per month, and demand has grown substantially since 2022. This event will go a long way in ensuring families won’t go hungry this winter.

After collecting the final boxes of food donations, Ted McGinn of Lavelle Law presented Schaumburg Township Supervisor Timothy Heneghan and Supervisor of Program Support Services Marianne Rogenski with a check for the cash donations at an event attended by local politician, State Sen. Laura Murphy.

To learn more about Lavelle Law and Lavelle Law Charities, visit lavellelaw.com .

Corporate Transparency Act Update - Preliminary Injunction Lifted; New Extended Deadline of 1/13/25

Mon, 23 Dec 2024 17:17:37 GMT

Around December 4, 2024, our office sent out an e-blast notifying our clients of a recent US Federal District Court decision in Texas that enjoined the enforcement of the Corporate Transparency Act and its FinCEN BOIR requirements nationwide. Since then, the nationwide preliminary injunction has been appealed in the 5th Circuit Court of Appeals and the constitutionality of the Corporate Transparency Act continues to be argued.

As of December 23, 2024, the 5 ^th Circuit Court of Appeals stayed the nationwide preliminary injunction and reinstated the Corporate Transparency Act's FinCEN BOIR requirement. Because of the timing of the recent injunction, FinCEN is instituting an extended deadline beyond the original one of 12/31/24. The new deadline for existing reporting companies is now 1/13/25 . If your company has not yet filed its initial FinCEN BOIR, please contact Attorney Frank Portera at 847-705-7555 or fportera@lavellelaw.com for assistance and more information about our flat fee reporting packages.

New Year, New Laws – New Illinois Employment Laws for 2025

Fri, 20 Dec 2024 23:38:52 GMT

A Lavelle Law Breakfast Briefs Seminar

 January 29, 2025

7:45 – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

Join us for an informative seminar on New Year, New Laws as Illinois implements nearly 300 new laws in 2025, many of which impact employment practices. Led by Lavelle Law attorney Lance Ziebell, this session will provide valuable legal insights into these major changes and offer strategies to ensure compliance. Participants will learn how to protect their businesses from potential employee claims, contract disputes, and other legal challenges. This free seminar is a must-attend for business owners, managers, HR professionals, and advisors. Don't miss this opportunity to stay ahead of legal updates and safeguard your business.

Doors will open at 7:45 for a complimentary continental breakfast and the presentation will begin at 8:00. Registration is required as seating is limited.

MEET THE PRESENTER

Success Story – Former Spouse Forced to Pay-up

Tue, 17 Dec 2024 23:41:50 GMT

Failure to Follow a Court’s Order Could Result in Paying the Other Party’s Attorney’s Fees

Background:
Our client divorced several years ago. The divorce judgment required her former husband to remove her name from all business records and accounts on a business they owned during the marriage. The ex-husband refused to remove our client’s name for a business loan. We filed a petition for contempt against the ex-husband and though he used numerous excuses and caused significant delay, in the end, he was required to finally remove our client’s name from the loan and pay our client’s attorney’s fees.

Challenges:
The ex-husband’s actions revealed he had no respect for the court’s authority. He came up with numerous excuses and caused great delays in the process.

Result:
Our client received the result she wanted – the removal of her name from the business loan. She also received reimbursement of her attorney’s fees from her ex-husband.

Today I completed my court case with attorney Annette Corrigan and had a great outcome. All I can say is she is outstanding. Annette came in on my case after (my former attorney) retired. Annette immediately updated herself with the situation and professionally and efficiently took control to get a great outcome for me. She is a good communicator and a dynamo in court. In court when the other attorney came at us, she confidently and firmly made her points. She fought for me, her client and I felt that, and I felt the judge did too.

She is confident and very professional. I didn't worry as I could see she had everything under control. Annette kept me updated, scheduled and filed all documents and court requirements on time. I never had to worry. She gave accurate instructions and directions.

Lavelle Law has a wonderful attorney representing your firm. I will refer Annette and your firm in the future to my family and friends.

It means a lot when you're in a situation where you require legal representation to have such a knowledgeable and kind attorney to help you through the tough times.

Thank you, Annette Corrigan.

Banking and Business Monthly – December 2024

Mon, 16 Dec 2024 21:39:33 GMT

Mortgage Foreclosure Law Amendments Enable Online Judicial Sales

Public Act 103-930 amends the Illinois Mortgage Foreclosure Law (IMFL) to authorize online judicial sales of foreclosed properties, establish standards for such sales and online bidders, and prohibit certain related fees. The Public Act changes Section 15-1507 of the Illinois Code of Civil Procedure and adds Sections 15-1507.2 and 15-1510.1, effective January 1, 2025. 735 ILCS 5/15-1507, 15-1507.2, 15-1510.1.

Online Judicial Sales

The mortgagee may request that a property subject to a judgment of foreclosure be sold either in person, online, or both and, if online, the website where online bidding may take place. 735 ILCS 5/15-1507(c)(1)(F). The sheriff or other person conducting the online judicial sale must comply with several requirements in Section 15-1507.2, including documented processes and procedures for conducting online auctions, adequate recordkeeping, the ability to comply with IMFL requirements, and satisfactory internal informational security controls. 735 ILCS 5/15-1507.2(f), (o). Persons conducting the sale, such as third-party online sales providers, may engage in promotional activities, including listing the property on real estate websites and email campaigns, but they are solely responsible for any related fees and expenses. 735 ILCS 5/15-1507.2(p).

Bidders’ Requirements

Online bidders must complete a registration process that identifies them and provides their contact information and other relevant information in order to complete the sale, as determined by the person conducting the sale. 735 ILCS 5/15-1507.2(j). The person conducting the sale must verify the identity of all online bidders through a process which may include verification through a government-issued identification, biometric verification or other method selected by such person. 735 ILCS 5/15-1507.2(m).

Prohibited Fees

Certain fees charged to the public, such as fees for viewing the properties for sale, or to participate in any auction, are prohibited. 735 ILCS 5/15-1507.2(h). For the sale of residential real estate, no fee, including a buyer’s premium, may be charged to a third-party bidder beyond the winning bid amount. 735 ILCS 5/15-1510.1.

For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555. Starting next year, I will be making this a quarterly publication. Happy Holidays!

Corporate Transparency Act on Hold: Key Implications for Businesses

Wed, 11 Dec 2024 18:10:04 GMT

On December 3, 2024, the U.S. District Court for the Eastern District of Texas (the “Court”) issued a nationwide preliminary injunction suspending enforcement of the Corporate Transparency Act (“CTA”) and its Beneficial Ownership Information (“BOI”) reporting rule. The injunction effectively suspends the requirement under the CTA for certain companies to disclose their BOI to the Financial Crimes Enforcement Network (“FinCEN”), a bureau within the U.S. Department of the Treasury, for an indefinite period of time and until such injunction is overturned by an appellate court with jurisdiction.

Court Reasoning

The Court’s decision to grant this injunction was based on the Court’s preliminary assessment that the CTA and its reporting rule are outside of the power granted to Congress under the U.S. Constitution and may violate other constitutional protections. In granting the injunction, the Court determined the injunction should apply nationwide, noting that the CTA and its reporting obligations apply to “approximately 32.6 million existing reporting companies” across the nation. The Court determined it could not provide meaningful relief to those affected without enjoining the CTA and reporting rule nationwide.

Next Steps

Companies subject to the CTA and their beneficial owners should continue to monitor FinCEN’s webpage for updates regarding compliance deadlines and enforceability of the CTA’s reporting requirements. Evaluating the next steps regarding compliance can depend on that particular company’s status in filing its initial FinCEN Beneficial Ownership Information Report (“BOIR”).

Businesses Filed with FinCEN

Pause on Compliance Efforts: The injunction currently halts enforcement of the CTA. While FinCEN may appeal, no immediate action is required at this stage.

Monitor Litigation and Administrative Updates: Stay updated on litigation outcomes and any policy shifts under the next administration.

Business Not Filed with FinCEN

Delay Filing: The nationwide injunction means that no business is currently required to comply with the CTA, but further guidance or appellate court decisions could reinstate the CTA’s enforceability.

Consult Legal Counsel: Businesses should collaborate with legal advisors to evaluate their exposure under the CTA if the injunction is lifted or enforcement resumes.

Prepare for Potential Compliance: If the injunction is overturned on appeal, businesses may need to act to meet reporting deadlines. Having compliance mechanisms in place will help mitigate risks.

Future Outlook

On December 5, 2024, FinCEN filed an appeal against the nationwide preliminary injunction of the CTA. The appeal challenges the Court’s decision that the CTA likely exceeds Congress' constitutional authority. The appellate court with jurisdiction is expected to move swiftly to either uphold the injunction, modify its scope, or overturn it, potentially reinstating the CTA's reporting requirements as of a new, future deadline. Given this uncertainty, we recommend that businesses remain prepared to comply with the CTA should the injunction be lifted. This includes gathering necessary BOI and staying informed about legal developments.

For further inquiries or questions, please contact Attorney Frank Portera at fportera@lavellelaw.com or (847) 705-7555.

Tim’s Tax News on the Tenth – December 2024

Tue, 10 Dec 2024 17:27:26 GMT

IRS Releases Fiscal Year 2024 Criminal Investigation Annual Report

The Internal Revenue Service Criminal Investigation (“IRS-CI”) recently released its Fiscal Year 2024 (October 1, 2023, to September 30, 2024) Annual Report that details significant cases involving crimes ranging from tax fraud to cybercrime, enhanced domestic and foreign partnerships and investigative statistics for the 2024 Fiscal Year.

The 2024 report highlights several firsts for the IRS – the first sentencings tied to syndicated conservation easement schemes, the first sentencings and guilty plea of a U.S. taxpayer solely for not paying taxes on gains from cryptocurrency sales, the first time Treasury agencies have led a task force and public outreach series to combat fentanyl trafficking, and a historic financial settlement by the world’s largest cryptocurrency exchange for violating anti-money laundering and sanctions laws.

In Fiscal Year 2024, IRS-CI initiated more than 2,667 criminal investigations, obtained 1,571 convictions, and reclaimed its 90% conviction rate. The agency’s investigative work identified over $9.1 billion in fraud from tax and financial crimes, obtained court orders totaling $1.7 billion in restitution to the IRS, and seized criminal assets totaling approximately $1.2 billion.

Other significant items in this year’s annual report include:

IRS-CI extended the agency’s international footprint by launching a new attaché post in Nassau, Bahamas, and a Cyber attaché post in Singapore.
The International Training Team delivered more than 30 trainings to over 930 participants from more than 70 countries. These trainings play a critical role in global partnerships and investigations.
Combatting cybercrime continued to be a focus for the agency. In Fiscal Year 2024 alone, IRS-CI initiated 111 new cybercrime investigations, and defendants in these cases continue to receive prison sentences averaging more than five years.

If you would like more details, please do not hesitate to call our office. Our office has been successful in helping taxpayers with IRS and IDOR collection problems for over 30 years. If you have a tax or debt problem, please contact me at 847-705-9698 or thughes@lavellelaw.com and find out how we can help you.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

Lavelle Law Hires First CFO Bruce Pulitini to Manage Finances and Growth

Mon, 09 Dec 2024 21:44:50 GMT

Daily Herald Article Link: https://www.dailyherald.com/20241205/submitted-content/lavelle-law-hires-first-cfo-bruce-pulitini-to-manage-finances-and-growth/

Litigation 101: A General Guide for Lawsuits

Wed, 27 Nov 2024 18:36:11 GMT

If you're facing a lawsuit, it's important to understand the steps involved in litigation. Litigation is a legal process that can be complex and time-consuming, and it often involves multiple stages. Here's an overview of the key phases of a lawsuit and what you should consider at each step.

Step 1: Initial Actions

If you have received a demand letter or are being threatened with a lawsuit, the first step is to contact an attorney. An experienced attorney can help you navigate the rules of litigation, ensure that deadlines are met, and assess your legal options. Ignoring deadlines or failing to follow proper procedures can have severe consequences, such as financial penalties or the loss of your case.

Additionally, it's critical to preserve all relevant documents, communications, and other evidence related to the dispute. Destroying or altering evidence, even accidentally, is known as spoliation and can lead to serious penalties, including sanctions or adverse judgments in court.

You should also confirm the statute of limitations on the alleged claims. This is the legal deadline by which the dispute must be filed in court. If the lawsuit is filed after this period, the claims may be dismissed.

Finally, consider early dispute resolution options such as mediation or arbitration. These methods can often resolve a case more quickly and at a lower cost than full litigation.

Step 2: Responding to the Complaint

If you do not respond to a demand letter or resolve the dispute informally, the next step is that the plaintiff (the party bringing the lawsuit) will file a formal complaint in court. The complaint includes important details such as the court’s jurisdiction, the venue where the case is filed, the legal claims, and the damages the plaintiff is seeking.

Once the complaint is filed, you will be served with a summons and the complaint itself, which alerts you to the lawsuit and provides a deadline for your response. Your attorney will typically prepare and file an "answer" to the complaint, admitting or denying the allegations and stating any defenses you may have. You can also raise counterclaims against the plaintiff or third parties if appropriate.

Alternatively, you may file pre-answer motions, such as:

Motion to Dismiss – A request to dismiss the case based on legal grounds;
Motion for a More Definite Statement – A request for more specific information from the plaintiff;
Motion to Strike – A request to remove certain claims or evidence from the case.

Step 3: Discovery

Discovery is the phase where both parties exchange information relevant to the case. During discovery, each side can request documents, ask written questions (interrogatories), and take depositions (sworn testimonies) from witnesses.

There are two main types of discovery:

Written Discovery – Includes interrogatories (questions you must answer), requests for documents, admissions of fact, and third-party subpoenas.
Oral Discovery – Primarily depositions, where witnesses or parties provide testimony under oath before a court reporter.

Failure to respond to discovery requests can lead to motions to compel, forcing the non-compliant party to produce the required information.

Step 4: Settlement and Alternative Dispute Resolution (ADR)

Settlement is an agreement between the parties to resolve the dispute without further litigation. Settlements can occur at any stage of the litigation process and often help parties avoid the high costs and uncertainties of a trial.

Other alternatives to trial include mediation and arbitration :

Mediation is a voluntary, non-binding process in which a neutral mediator helps the parties negotiate a resolution. Mediation is confidential, and discussions cannot be used later in court if the mediation fails.
Arbitration is a binding process where an independent arbitrator makes a final decision on the dispute, much like a judge. Arbitration is typically faster and less formal than a trial.

Both mediation and arbitration offer the potential for resolving disputes more quickly and sometimes with less expense than a full trial.

Step 5: Trial – When Disputes Go to Court

If the case doesn’t settle or resolve through ADR, the dispute will proceed to trial. Trials can be lengthy and expensive, and preparation is critical. There are two types of trials:

Jury Trial – A group of citizens will determine the facts of the case and render a verdict.
Bench Trial – A judge alone will decide the facts and issue a verdict.

During the trial, both parties present their cases. The plaintiff presents their evidence first, followed by the defendant's defense. The parties may call witnesses, cross-examine each other's witnesses, and introduce evidence. After hearing all the evidence, the judge or jury will render a verdict based on the facts presented.

Step 6: Appeal – Challenging the Court’s Decision

After the trial, either party may appeal the court’s decision if they believe there were legal errors that affected the outcome of the case. An appeal asks a higher court to review the trial court’s ruling and potentially reverse or modify the judgment.

Final Thoughts

Whether you end up in trial or reach a settlement, it’s important to have knowledgeable legal representation to guide you through the litigation journey and protect your interests. If you have any questions regarding litigation or have been served with a lawsuit, Lavelle Law can help. Contact Sarah Reusche at sreusche@lavellelaw.com or by phone at (847) 705-7555 to schedule a free consultation.

The 2024 Lavelle Law Charities Food Drive Delivers!

Mon, 25 Nov 2024 21:33:35 GMT

The 2024 Lavelle Law Charities Food Drive culminated in an incredible success on October 25. Our 4-week long food drive concluded on a beautiful Friday afternoon when Lavelle Law employees delivered well over $13,000 worth of food items and a check for $12,115 for the Schaumburg Township Food Pantry. These donations will keep the shelves stocked throughout the holiday season and beyond. This achievement would not have been possible without the support of our generous community. Thank you to everyone who donated, the organizations who hosted a collection box, and everyone who pitched in to help. We also thank our corporate sponsors for their generous support: Tony’s Fresh Market, Clearwater Capital Partners, Norman Mechanical, Quick Delivery Service, Kleen Air, and Tenant Advisors, and all who rallied behind the 2024 Lavelle Law Charities Food Drive and donated cash! Your support has made the holiday season brighter and brings hope for months ahead for the 1,200 families who rely on the Schaumburg Township Food Pantry.

Thank you for making a difference!

Banking and Business Monthly – November 2024

Mon, 25 Nov 2024 16:54:38 GMT

Corporate Transparency Act Redux

Back in October of last year, I wrote about the Federal Corporate Transparency Act (“CTA”), 31 U.S.C. § 5336, and its obligations for Reporting Companies (as defined thereunder). Since then, we helped many Reporting Companies complete and file their BOI Reports.

For business entities created before January 1, 2024, that are Reporting Companies, the January 1, 2025 deadline to file their BOI Reports is fast approaching. Yet, it seems many business owners remain unaware of the CTA and its reporting obligation, despite potentially large penalties for failing to file the BOI Report. As I write this, we just finished a webinar informing a variety of local chambers of commerce about the CTA, so for this month’s article, I thought I would remind our B&B audience of the CTA and its requirements, and to let everyone know we are here to assist owners of Reporting Companies with completing and filing their BOI reports – check out this flyer for a description of our $149 flat fee service offering.

For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555. Happy Thanksgiving!

Success Story – Acquisition of Four Domino’s Pizza Businesses!

Tue, 19 Nov 2024 23:49:47 GMT

A Thanksgiving Reflection on Estate Planning

Mon, 18 Nov 2024 23:19:39 GMT

As Thanksgiving approaches, it’s the perfect time to reflect on our blessings and ponder how you’d like to preserve them for the future. This season of gratitude is an ideal opportunity to reflect on and implement your estate plan so that you can ensure your legacy is served up just the way you want it.

Feast on Gratitude and Planning

Thanksgiving reminds us to be thankful for what we have and to plan ahead. By setting up your estate plan, you’re not just stuffing your will and trust with legal details; you’re providing clarity and peace of mind for your loved ones. By preparing your estate plan you will be making decisions about how your assets will be distributed, who will handle your health care decisions, and appointing a trusted person to manage your affairs.

Cooking Up a Lasting Legacy

Estate planning isn’t just about passing down material possessions—it’s about creating a legacy that leaves a lasting impression. Whether it’s through charitable gifts, treasured family heirlooms, or financial support, you’re making sure your impact will be felt long after you’re gone.

Action Steps to Gobble Up

As you gather with family, consider using this time to talk about your estate plan. It’s a great chance to share your plans and ensure everyone is on the same page. If you haven’t yet whipped up your estate plan or need to update it, now’s the time to get cooking.

Wishing you a Thanksgiving filled with warmth, joy, and the satisfaction of knowing your future is well planned. If you need a hand with your estate planning, we’re here to help—no need to wing it alone!

Happy Thanksgiving!

If you would like to schedule a free consultation to hear more about how an estate plan can benefit you and your family, please call attorney Heather A. McCollum at (847) 705-7555 or email her at hmccollum@lavellelaw.com .

Business Owners: Don't Miss the Deadline for Filing Your BOI Report!

Mon, 18 Nov 2024 19:51:28 GMT

Time is running out for business owners to file the Beneficial Ownership Information Report with FinCEN! The deadline for filing is December 31, 2024. If you don’t file accurately by then, you can face a $500 per-day civil penalty and a possible criminal fine of up to $10,000 and/or up to two-years imprisonment! Why risk it – call Frank Portera for our flat fee filing service and avoid the worry of penalties. 847-705-7555

How Do Real Estate Investors Structure Their Businesses?

Fri, 15 Nov 2024 18:37:53 GMT

Owning investment properties is often exciting and lucrative. However, investments in real estate, whether vacation rentals, long-term rentals, or properties for resale, can also create liabilities. Those liabilities make it critical for real estate investors to wisely choose how they will structure their businesses.

Choosing a legal entity for your real estate investment business is an important decision that has both legal and tax consequences. Successful real estate investors are not just skilled at spotting a good investment they are knowledgeable and savvy about all aspects of their business, including the way it is legally organized.

Some business structures, such as Sole Proprietorships and General Partnerships, leave property owners personally responsible if someone sues for damages caused at a property. Other business entity types offer some level of personal liability protection. Without personal liability protection, a property owner’s personal bank accounts, stock, home, and other investment properties may become vulnerable to cover legal costs and settlements.

ENTITY OPTIONS

Limited Liability Company

A limited liability company (LLC) is a legal business entity that merges the advantages of a corporation with those of a partnership or sole proprietorship. It is a favored option for small businesses and real estate ventures due to its adaptability and tax advantages.

A key benefit of an LLC lies in its provision of limited liability protection for its members, especially when there's more than one owner involved. This shielding typically safeguards personal assets from business debts and legal obligations.

To make the most of this liability protection many investors use multiple LLCs - keeping rental property assets legally separated.

A series LLC refers to an umbrella or master LLC with separate LLCs for each property structured beneath it. While there’s just one Articles of Organization required to form a series LLC, each LLC in the series operates as a separate entity. Each LLC in the series has its own business name, establishes its own bank accounts, and maintains its own records. The individual series’ assets, liabilities, operations, and membership interests are independent of other series under the umbrella LLC.

Another structure that real estate investors might choose is a Limited Partnership (LP). Real estate investors who seek outside investments from people or companies that do not wish to run the business may find this an attractive option.

Limited Partnerships

Limited Partnerships (LP) often come into play when investors want a more casual involvement in the day to day managing and operations, offering an accessible route for laypeople to reap the potential rewards of real estate investment without managing the details.

LPs typically consist of two roles: general partners and limited partners.

General partners are the individuals or entities responsible for managing the day-to-day operations of the company. A general partner makes key decisions about where to invest, manages those properties and decides the right time to sell. However, they have unlimited liability, which means they are personally responsible for the entity’s debts and obligations.

Meanwhile, limited partners are passive investors. They provide capital to the partnership but have limited involvement in its daily operations. Their liability is typically limited to the amount of money they’ve invested in the partnership. Profits or losses from these ventures are then divided among all partners based on their investment share.

KEY CONSIDERATIONS TO BEGIN THE PROCESS

1. Transferring an Existing Property Deed to the Business Entity

After forming a business entity, the investor needs to sign a deed ( usually quit claim deed ) transferring the property to the business. Also, the deed must be recorded with the county where the property is located. Failure to do this may mean that the investor will legally remain the property owner personally—and, therefore, be the defendant in any lawsuit associated with it.

2. Insuring the Property Under the Business Entity

To protect property from liability and damage, investors should consider a comprehensive landlord’s property insurance policy in the business name. It’s critical to have written proof showing the business name as the entity insured, so the insurance company won’t have reason to deny coverage in the event of a claim. Investors who have registered separate entities for individual properties would likely need separate coverage for each one.

3. Keep the Business Entity in State Compliance

Investors not maintaining their business entities as required can put their personal assets at risk in a lawsuit against the business. Noncompliance pokes a hole through a business’s corporate veil, the protective shield that maintains legal separation between a business entity and its owners. Different states have different requirements. Regardless of where a business entity is located, real estate investors should keep their personal funds separate from those of their companies.

If you are considering becoming a real estate investor or already own real estate property and have questions concerning this topic, please reach out to the attorneys at Lavelle Law at 847-705-7555, or email Attorney Eso Akunne at eakunne@lavellelaw.com to schedule your free and confidential consultation.

Major Changes Coming to Illinois Personnel Record Review Act in 2025

Thu, 14 Nov 2024 19:47:51 GMT

The Illinois Personnel Record Review Act (PRRA) will undergo significant changes effective January 1, 2025, expanding employee rights and imposing new obligations on employers. These amendments reflect a growing focus on workplace transparency and employee access to information.

Expanded Access Rights

Under the amended PRRA, employees gain broader access to their personnel records. Previously, employees could request reviews twice per year. Starting in 2025, employees can make reasonable requests to inspect their records up to four times annually. Employers must provide access within seven working days, reduced from the previous 14-day window.

The definition of "personnel records" has also been expanded to explicitly include electronic communications about an employee's qualifications for employment, promotion, transfer, compensation, discharge, or discipline.

New Employer Obligations

Employers face enhanced record-keeping requirements. They must now maintain personnel records for a minimum of five years following an employee's separation, extended from the previous three-year requirement. This includes preserving electronic communications that may impact employment decisions.

Organizations must also provide written notification to employees whenever disciplinary actions or performance evaluations are added to their personnel file. This notice must be given within 14 days of the addition and include a copy of the new document.

Expanded Disclosure Requirements

The amendments mandate broader disclosure of personnel records during litigation. Employers must now produce all personnel records relevant to employment-related claims or defenses, including internal communications and investigation records previously considered privileged under certain circumstances.

Enhanced Privacy Protections

While expanding access rights, the law strengthens privacy protections. Employers must implement reasonable security measures to protect electronic personnel records from unauthorized access. They must also maintain logs of all internal and external access to employee files.

Penalties and Enforcement

The amendments introduce stronger enforcement mechanisms:

Increased civil penalties for violations, up to $2,500 per occurrence
New provisions for compensatory damages
Attorney fee recovery for successful plaintiffs
Enhanced Illinois Department of Labor investigation powers

Practical Implications for Employers

To comply with these changes, employers should:

Update personnel record policies and procedures
Review and modify electronic communication retention practices
Implement new notification systems for file additions
Enhance security measures for electronic records
Train HR staff on new requirements
Review and update record retention schedules

Small Business Considerations

Organizations with fewer than 50 employees receive some flexibility in implementation timelines and may request hardship exemptions for certain electronic record-keeping requirements. However, core access and retention obligations still apply.

Conclusion

These amendments significantly expand the scope and requirements of the PRRA. Employers should begin preparing now to ensure compliance by January 1, 2025. Organizations should consult with legal counsel to review and update their policies and procedures, particularly regarding electronic communications and record retention practices.

The changes reflect a broader trend toward increased employee access to employment records and greater transparency in employment decisions. Employers who proactively adapt their practices will be better positioned to meet these new obligations while maintaining efficient operations.

If you have any questions regarding these changes, please contact Lance Ziebell at 847-705-7555 or email him at lziebell@lavellelaw.com .

Tim’s Tax News on the Tenth – November 2024

Sun, 10 Nov 2024 16:23:22 GMT

Bankruptcy Can Discharge Some Tax Liabilities

The high inflation of the past couple of years coupled with economic aftershocks from COVID-19 has created a great amount of economic uncertainty in many people. Our office has been contacted by numerous individuals and businesses about how to handle their debts, which for many include IRS debt. Over the years, our firm has helped numerous clients with tax debts via an Offer in Compromise, Abatement of Penalties, or favorable Installment Agreements. We have also in the right circumstances helped taxpayers by filing bankruptcy for them to eliminate (or greatly reduce) their tax obligations. Yes, some taxes can be discharged in bankruptcy.

Income taxes can be discharged if the liability meets a four-part test.

The First Test is: if the tax year is older than three years (for example 2020, which was due without an extension on April 15, 2021), you add three years to that filing due date arriving to April 15, 2024, therefore 2020 and earlier years could be discharged, provided that there was no extension. If, however, there was an extension, then October 16, 2024, would be the operative date, provided the next three tests are met.

Second Test: The return must be filed at least two years before the bankruptcy filing date. A fairly straightforward and simple test, however, if the IRS were to prepare a return for the taxpayer (called a Substitute for Return – SFR), then that would prevent this test from being met for the client. Assuming that no SFR was prepared, and the return was filed more than two years before, then that year’s liability could be discharged, provided the next two tests are met.

Third Test: The bankruptcy is filed at least 240 days after the IRS makes its assessment for that tax year. This simple step (but very critical) can be verified by reviewing IRS transcripts in a pre-filing due diligence step necessary to ensure the taxpayer’s taxes can be discharged.

Fourth Test: The last test is not as objective as the above three tests. The final test boils down to this question: “was the liability accrued as a pattern of fraud?” Again, like the first three tests, this test requires a thorough understanding of the client’s case, as well as being able to argue the merits of why the liability accrued in the manner it did by the taxpayer.

The above four-part test is for both federal and state income taxes. Unfortunately, employment tax (trust fund) and sales and use tax are not dischargeable in bankruptcy.

Our firm has helped many of our clients to meet the four-part test requirements and ultimately to successfully have both their federal and state income taxes discharged in bankruptcy. Or if bankruptcy is not an option help them with a penalty abatement, installment agreement or offer in compromise.

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New Rules, New Moves: What Chicago Landlords Need to Know About Tenant Purchase Rights

Wed, 06 Nov 2024 21:19:19 GMT

A new Chicago ordinance has introduced a pilot program for landlords within certain districts of the city, expanding the current pilot program already in place in Woodlawn . If successful, this program may eventually be expanded further. For now, however, the Tenant Opportunity to Purchase Block (606) District Pilot Program (Chapter 5-11) is designed to provide tenants in Block 606 the right to be notified when their rental property is up for sale and, in many cases, to give them a Right of First Refusal (ROFR) to purchase the property. Block 606 is the area bounded by Addison Street, the north branch of the Chicago River, Western Ave, Division Street, California Ave, North Ave, Kedzie Ave, Hirsch St, Kostner Ave, Fullerton Ave, and Pulaski Road. This ordinance primarily aims to reduce tenant displacement, stabilize communities under gentrification pressures, and preserve affordable housing. However, this has direct implications for landlords, and failure to follow this ordinance may result in fines and litigation.

Here’s what landlords in Block 606 need to know!

Right of First Refusal (ROFR) for Tenants

The ROFR is central to this ordinance. It allows tenants to match any legitimate third-party offer to buy their building, giving them the first opportunity to purchase. The ordinance applies to multi-unit residential buildings and works differently depending on the size of the property:

Buildings with five or more units : Tenants are granted 90 days to form a tenant association and notify the landlord of their intent to purchase.
Buildings with four or fewer units : The time frame for tenants to organize and respond is shorter— 30 days for buildings with 3-4 units and 15 days for 1-2 unit properties .

Notice Requirements for Landlords

Landlords intending to sell a property in Block 606 must provide written notice to both the city’s housing department and tenants well in advance:

For buildings with five or more units , notice must be given at least 60 days before the property is listed for sale.
For buildings with four or fewer units , the notice period is 30 days before listing.

This notice must be delivered in person or by certified mail, and landlords are required to post a notice of sale at all public entrances to the rental property. Additionally, the notice must include critical details such as the property’s asking price, a description of the property, and a summary of tenant rights under this new ordinance.

Exemptions from the Ordinance

There are specific transfers where the ordinance does not apply, including:

Transfers through foreclosure or bankruptcy proceedings.
Transfers via inheritance or among family members.
Tax sales or transfers due to eminent domain.
Transfers without consideration, such as adding property to a revocable trust.

What Happens if Tenants Wish to Purchase?

If tenants (through an association or individually) decide to exercise their ROFR, they must provide a written notice of intent to purchase along with an earnest money deposit. They are then given time to conduct due diligence and secure financing— 120 days for larger buildings and 60 days for smaller ones.

If the tenants cannot complete the purchase or choose not to exercise their rights, the landlord is free to sell the property to a third party. However, if there are material changes in the sale terms or the third-party deal falls through, the tenants’ ROFR is reinstated.

Penalties and Enforcement

Failure to comply with the ordinance can lead to penalties ranging from $200 to $1,000 per offense, with each day of violation counting as a separate offense. Tenants also have the right to pursue civil action, seeking remedies that could include treble damages, court costs, and attorney fees.

Final Thoughts

This ordinance marks a significant step toward protecting tenants from displacement in Chicago’s gentrifying neighborhoods. While it places new obligations on landlords, it also ensures transparency and gives tenants an opportunity to remain in their homes under new ownership. Landlords should carefully review the requirements and work closely with legal counsel to ensure compliance. For landlords in the Block (606) District , keeping abreast of these regulations is vital to avoiding potential penalties and ensuring smooth property transactions.

If you have any questions regarding the new rules under this ordinance contact, Kelly Anderson at kanderson@lavellelaw.com , to schedule a consultation!

Illinois Pay Range Disclosure: What Employers Need to Know

Thu, 31 Oct 2024 21:52:19 GMT

In a significant move towards pay transparency and equity, Illinois is set to join a growing list of states requiring employers to disclose salary ranges in job postings. This new requirement, part of amendments to the Illinois Equal Pay Act, will take effect in January 2025. As businesses prepare for this change, understanding its implications is crucial for both compliance and strategic workforce management.

The New Requirement

Starting January 2025, employers in Illinois must include pay scale information in job postings for positions that will be performed in Illinois or remotely from Illinois. This requirement aims to promote pay equity and transparency, allowing job seekers to make more informed decisions about their career moves.

Scope and Application

The law applies to all employers with employees in Illinois, regardless of company size. It covers not just traditional job postings but also internal transfer and promotion opportunities. Importantly, the requirement extends to remote positions that could be performed from Illinois, potentially affecting out-of-state employers who hire Illinois residents for remote work.

What Needs to Be Disclosed

Employers must provide a "pay scale," which typically includes the salary or hourly wage range that the employer reasonably expects to pay for the position. While the exact format is yet to be specified in regulations, it's likely to include:

Minimum and maximum salary or hourly wage
Description of other compensation, such as bonuses, commissions, or equity grants
Overview of benefits offered

Challenges and Considerations

Implementing this new requirement presents several challenges for employers:

Determining Appropriate Ranges: Employers must carefully consider how to set pay ranges that are both competitive and realistic. Too broad a range may not be informative, while too narrow a range may limit flexibility.
Internal Equity Issues: Published salary ranges may raise questions among current employees about their own compensation, potentially leading to morale issues or increased turnover.
Compliance Across Multiple Jurisdictions: Companies operating in multiple states may need to navigate differing pay transparency laws, adding complexity to their hiring processes.
Updating Job Posting Practices: HR departments and hiring managers will need to revise their job posting procedures to ensure compliance.
Preparing for Increased Scrutiny: With salary information publicly available, companies may face more questions about their pay practices from employees, candidates, and potentially regulators.

Benefits of Pay Transparency

Despite these challenges, pay range disclosure can offer significant benefits:

Attracting Qualified Candidates: Clear salary information can help attract candidates whose expectations align with the offered range, potentially streamlining the hiring process.
Promoting Pay Equity: Transparency can help identify and address pay disparities, supporting broader efforts towards pay equity.
Improving Negotiation Processes: With salary ranges known upfront, negotiations can focus more on a candidate's qualifications and fit rather than starting salary.
Enhancing Company Reputation: Embracing transparency can position a company as fair and progressive, potentially improving its employer brand.

Preparing for Compliance

To prepare for this new requirement, employers should:

Review and update compensation structures
Train hiring managers and HR personnel on the new requirements
Develop a communication strategy for current employees
Update job posting templates and processes
Consider conducting a pay equity audit to address any existing disparities

Looking Ahead

As Illinois joins states like Colorado, Washington, and California in mandating pay range disclosures, it's clear that pay transparency is becoming a national trend. Employers who proactively embrace these changes may find themselves better positioned to attract top talent and foster a culture of fairness and openness.

While the specific regulations are still forthcoming, Illinois employers should start preparing now for this significant change in hiring practices. By thoughtfully implementing pay range disclosures, companies can turn this compliance requirement into an opportunity to enhance their hiring processes and reinforce their commitment to pay equity.

If you have questions regarding this new law, contact Lance Ziebell at 847-705-7555 or lziebell@lavellelaw.com .

Breakfast, Benefits, & Business Best Practices

Wed, 23 Oct 2024 20:43:25 GMT

Consider Adding an ILIT to Your Estate Plan to Minimize Estate Tax

Thu, 17 Oct 2024 15:57:49 GMT

One important goal of effective estate planning is to minimize the amount of tax that your estate will be subject to upon your death. If the value of your assets at your death exceeds a threshold amount, your estate will be subject to federal estate tax and potentially state estate tax as well, depending on the state in which you reside at your death. Currently, twelve states (including Illinois) and the District of Columbia impose a state estate tax in addition to any federal estate tax due. Currently, the Illinois estate tax exemption is $4 million per individual, which means a person can transfer up to $4 million worth of assets at death without incurring Illinois estate tax. The current federal estate tax exemption, put in place in 2017 by the Tax Cuts and Jobs Act (TCJA) , is $13.61 million per individual; however, this amount is scheduled to “sunset” at the end of 2025 and revert to pre-TCJA levels, which is estimated to be around $7 million per individual (adjusted for inflation).

While many individuals think that the value of their estate will never exceed the federal and/or state estate tax exemption levels, often people don’t realize that life insurance policies are included in the value of one’s estate for estate tax purposes. Accordingly, owning a life insurance policy or policies with significant value can often cause an individual’s estate to be valued above the current estate tax exemption levels. Additionally, the fact that the federal estate tax exemption is set to sunset at the end of 2025 could further reduce the amount of assets that an individual can pass on tax free. Federal and state estate taxes are paid from the assets of your estate before the remaining assets can be distributed to your beneficiaries.

As a result, now is a good time to consider implementing strategies for reducing the value of your estate so you can minimize estate taxes and maximize your gifts to your loved ones. One effective strategy for reducing the value of one’s estate for estate tax purposes is to prepare an Irrevocable Life Insurance Trust, or “ILIT”, as part of your estate plan.

Simply put, an ILIT is a special type of trust established while the insured is alive, set up to hold and manage one or more life insurance policies—either term or permanent. An ILIT is an “irrevocable” trust, meaning that once it is established, the grantor ( i.e. , the one who creates the trust) cannot modify or dissolve it, effectively relinquishing control over all assets titled to the trust. The ILIT is then managed by a trustee, who is responsible for paying the premiums and overseeing the policy. Upon the insured’s death, the policy’s death benefit is paid out to the ILIT directly, and the trustee distributes these funds according to the terms set out in the trust document.

One of the primary benefits of an ILIT is its ability to reduce the grantor's taxable estate. Since the ILIT is a separate legal entity, once the insurance policy is transferred into the trust it is no longer considered part of the grantor’s estate. This means that when the death benefit from the policy is paid out into the trust, it will not be subject to any estate taxes, which can significantly lower the grantor’s overall estate tax liability. Additionally, contributions made to the ILIT, such as premium payments, may be treated as gifts to the trust’s beneficiaries. When properly structured, these contributions can take advantage of the annual gift tax exclusion and lifetime gift tax exemption, reducing potential gift tax liabilities. Although, of course, there are limits and certain notices to beneficiaries required when contributions to the ILIT are made—always consult your attorney and financial advisor before setting up and contributing to these trusts.

The ILIT also provides liquidity to the estate, offering funds to cover estate taxes or other expenses without the need to sell other estate assets. Even better, since the ILIT is not subject to probate, the insurance proceeds are distributed directly to the beneficiaries, bypassing the potentially lengthy and costly probate process (which, trust me, you always want to avoid if possible).

The ILIT can be funded with a new life insurance policy purchased by the ILIT or by transferring an existing policy; however, it’s important to note that the insured must survive the transfer of an existing policy by a least three years to avoid the policy proceeds being included in his/her taxable estate at death.

If you would like to discuss adding an ILIT to your estate plan, Lavelle Law offers a free estate planning consultation to get this process underway and answer any questions you may have about your unique situation. ILIT or no ILIT, everyone needs an estate plan to make sure that they and their family are protected in the event of unexpected death or incapacity. If you’d like to get your estate plan started or add an ILIT to an existing plan, please do not hesitate to contact me at jluthringshausen@lavellelaw.com or (224) 836-6176.

Success Story – Home Health Agency Sold to Private Equity for Over $18M

Thu, 17 Oct 2024 15:32:25 GMT

Background:
Lavelle Law represented an owner of a home health care agency, for the sale of their equity to a private equity firm. The agency provided home health and home care services to patients throughout the greater Chicagoland area.

Challenges:
The transaction presented challenges with respect to the determination of a fair closing working capital, as well as obtaining third-party governmental and accreditation approvals of the sale.

Result:
The transaction closed once the parties were able to agree on fair and reasonable provisions of the purchase documents.

Banking and Business Monthly – October 2024

Tue, 15 Oct 2024 21:48:36 GMT

SCOTUS Clarifies National Banking Act Preemption Standard

This past May, the Supreme Court of the United States clarified the boundaries between state and federal banking laws in Cantero v. Bank of America . This ruling not only addresses the preemption of state laws by the National Bank Act (“NBA”), but also sets the stage for significant legal debates over the powers of national banks. As banks navigate an evolving regulatory landscape, this case provides much-needed industry clarity.

The Court's unanimous decision clarified that federal preemption of state banking law occurs only under very specific conditions: primarily when a state law either discriminates against national banks or prevents or significantly interferes with their federally granted powers.

The dispute underlying Cantero arose from a New York law mandating that banks with escrow accounts for mortgage loans pay borrowers at least 2% interest annually. Bank of America, which does not pay interest on such accounts, argued that this state law was preempted by the NBA. The bank maintained that the federal Real Estate Settlement Procedures Act (“RESPA”) allows national banks to have escrow accounts without requiring interest payments--thus rendering the New York state law inconsistent with federal law.

Initially, the U.S. District Court for the Eastern District of New York sided with the borrowers, ruling that the New York law could coexist with federal regulations. However, the Second Circuit reversed this decision, asserting that federal law preempts any state law that attempts to control the operations of federally chartered banks.

The Supreme Court vacated the Second Circuit's ruling, remanding the case for further consideration. In his opinion, Justice Kavanaugh emphasized that the preemption standard is rooted in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. According to this standard, a state law is preempted if it either discriminates against national banks compared to state banks or prevents or significantly interferes with the exercise of a national bank's powers, referencing precedent set in Barnett Bank of Marion County, N.A. v. Nelson , 517 U.S. 25 (1996).

The Court did not elaborate on the specific circumstances that would constitute “significant interference,” leaving it to lower courts to clarify in the coming years. While the Court recognized a desire for clearer guidelines, it reiterated Congress’ intent for a comparative analysis rather than a straightforward preemption rule.

When determining whether a state law is preempted by the NBA, SCOTUS instructs us to make a practical assessment of the nature and degree of interference with national bank powers caused by the state law. Thanks go to Gabriel Kokoszka for his assistance with this month’s article. For inquiries or to schedule a free initial consultation on your banking or business matter, please contact me at smigala@lavellelaw.com or (847) 705-7555.

Protecting Your Dealership: Defending Against Consumer Actions

Fri, 11 Oct 2024 16:56:40 GMT

In Illinois, consumer actions against new and used vehicle dealerships are often brought under the Illinois Consumer Fraud and Deceptive Business Practices Act (the “Act”) codified as 815 ILCS 505 . Section 10a of the Act allows individuals to file a lawsuit if they suffer actual damages from unfair or deceptive acts or practices from a new or used vehicle dealership. Section 2 of the Act details the prohibitions against “unfair or deceptive acts or practices.” Many of these actions include but are not limited to:

Misrepresentation: Providing false or misleading information about a vehicle’s condition, history, or features.

Omission of Material Facts: Failing to disclose important information that could affect a consumer’s decision to purchase a vehicle.

Deceptive Advertising: Engaging in false advertising or using bait-and-switch tactics to lure customers.

Unfair Practices: Conduct considered unethical, oppressive, or causes substantial injury to consumers.

If the court favors the consumer, they can be entitled to actual damages, injunctive relief, and attorney's fees and costs. These costs can add up quickly and cause significant financial strain to both family-owned and national dealerships, underscoring the importance of a robust defense strategy.

Defenses for Dealerships in Response to Consumer Actions

Illinois dealerships have numerous options in defense to a consumer action alleging unfair or deceptive acts.

Lack of Causation Defense: Dealers can argue the alleged deceptive act did not cause the consumer’s damages. This defense is based on the Act’s general requirement that the consumer must suffer "actual damage" because of the alleged unfair or deceptive act.

Good Faith Error Defense: Dealers can defend with evidence of good faith. The Act does not apply to actions authorized by law and, therefore, dealers can argue the alleged violation resulted from a good faith error and that reasonable procedures were in place to avoid such errors.

Statute of Limitations Defense: Dealers can assert the consumer is time-barred. This defense is based on Section 10a(e) of the Act, which imposes a three-year statute of limitations for a consumer action.

Protections Under the Illinois Automotive Repair Act

The Illinois Automotive Repair Act (IARA) is designed to protect consumers from fraudulent and deceptive practices in the automotive repair industry. However, it also provides protection for dealerships that operate vigilantly and adhere to its requirements.

By strictly following the provisions of the IARA, dealerships can mitigate risk of potential legal claims while maintaining a positive reputation. Compliance with the IARA involves keeping updated records, disclosing warranties and parts costs, and providing accurate estimates. These practices ensure that dealerships operate within the law, and foster trust and transparency to consumers.

Other Options for Dealerships Aside from Litigation

Litigation, often seen as the last resort for resolving disputes, can be a double-edged sword. The process is not only time-consuming and costly, but it can also potentially damage a dealership's hard-earned reputation and customer relationships.

Mediation, a collaborative process involving a neutral third-party mediator, empowers both the dealership and the consumer to reach a mutually acceptable resolution. Unlike litigation, mediation gives the parties more control over the outcome, allowing dealerships to address consumer grievances directly and preserve business relationships.

Mediation is less formal, typically faster, and less expensive than going to court, offering a more amicable path to resolution.

Arbitration is another alternative dispute resolution method where a neutral arbitrator hears both sides and makes a binding decision. While it shares similarities with litigation, arbitration is usually faster and can be less formal.

Many dealerships include arbitration clauses in their consumer contracts, which can streamline dispute resolution. Take a look at our article on arbitration here .

Lavelle Law can assist dealers in defending against claims brought by consumers. For further questions, please contact attorney Sarah Reusche at sreusche@lavellelaw.com or (847) 705-7555.

Tim’s Tax News on the Tenth – October 2024

Thu, 10 Oct 2024 20:14:40 GMT

Court Settlement Highlights the Importance of Choosing a Reliable and Trustworthy Tax Professional

On September 13, 2024, Adam R. Oliva (“Oliva”), a tax professional from Rolling Meadows, Illinois, pleaded guilty to defrauding his clients out of over $1.1 million.

From 2015 to 2020, Oliva misrepresented that the funds his clients provided would be used to satisfy their tax liabilities with the IRS and state authorities. Instead, Oliva misappropriated the funds for personal uses such as gambling and retail purchases, while filing false tax returns that understated his clients’ tax liabilities. This strategy minimized the risk of the IRS contacting his clients about their unpaid taxes, allowing the scheme to continue undetected for years. Oliva faces serious criminal penalties, including up to 20 years in prison for wire fraud and three years for preparing false tax returns.

The implications for Oliva’s clients are significant. Despite being victims of fraud, they are still liable for the taxes owed, along with accrued interest, and potential penalties. Under the Internal Revenue Code (“IRC”), the obligation to ensure taxes are paid correctly remains with the taxpayer, even if a taxpayer is a victim of fraud. The case of Adam R. Oliva serves as a stark reminder that taxpayers must exercise due diligence when selecting a tax professional. It is crucial to verify that payments made for taxes are received by the IRS or state revenue authorities. Taxpayers should regularly check their tax accounts, request confirmation of payments, and ensure all filings reflect accurate and timely payments. Even if a taxpayer entrusts a professional with their financial matters, they remain ultimately responsible for their tax liabilities.

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Lavelle Law prepares for annual Food Drive benefiting the Schaumburg Township Food Pantry

Mon, 07 Oct 2024 21:24:46 GMT

Daily Herald article link: https://www.dailyherald.com/20241003/submitted-content/lavelle-law-prepares-for-annual-food-drive-benefiting-the-schaumburg-township-food-pantry/

Navigating the Changing Landscape of Non-Compete Agreements

Fri, 04 Oct 2024 21:39:06 GMT

Non-compete and non-solicitation agreements have been utilized by business owners for decades. The practice was recently challenged by the Federal Trade Commission in an action that generated several court cases. Lavelle Law Managing Partner Ted McGinn and Associate Joshua Brill discuss the purpose of the agreements, enforceability, the recent FTC action, and the outcome of several court challenges.

Legal Challenges to Non-Compete Agreements

Thu, 03 Oct 2024 22:25:37 GMT

Podcast Link

Announcing the 2024 Lavelle Law Charities Food Drive: OCT 1 – OCT 25

Tue, 01 Oct 2024 21:25:50 GMT

The Lavelle Law Charities Food Drive supports the Schaumburg Township Food Pantry, which provides crucial assistance to over 1,100 families every month. Due to inflation and rising grocery prices, the need is greater now than ever! Please consider supporting our efforts by either donating non-perishable items at one of our collection boxes around the community or by donating monetarily via our secure payment portal. 100% of financial donations will used to stock the pantry shelves for months to come. Visit our web page for donation locations and a secure payment portal. Thank you to all who have donated already and a special recognition to this year’s corporate sponsors - Tony’s Fresh Market, Clearwater Capital Partners, Norman Mechanical, Tenant Advisors, and Kleen Air Service.

Deferred Compensation Plans for Business Owners

Mon, 23 Sep 2024 19:00:43 GMT

Owners of closely held businesses can learn about deferred compensation plans that provide opportunities to increase their tax-deferred retirement contributions. Steven A. Schoenbrun of Midwest Benefit Consultants, Ltd. discusses different plans that are IRS-approved and provide owners with the chance to increase their contributions. Attorney Kerry Lavelle adds insight into how these plans can be of benefit to owners and executives.

Deferred Compensation Plans

Thu, 19 Sep 2024 21:58:13 GMT

Podcast Link

Banking and Business Monthly – September 2024

Wed, 18 Sep 2024 16:26:23 GMT

Sell-Side Considerations When Preparing a Company for Sale

Introduction

We spend considerable time educating our sell-side M&A clients on the sale process. In this month’s article, I’ll summarize some of the key considerations when helping our clients prepare for a sale of a company.

Timeline

Timelines for the process vary depending on size and complexity. A typical timeline for a private company sale from the signing of a letter of intent (LOI) to closing is around 90 days. This may be a bit longer if there is a lender involved. Note that LOIs often have a period of exclusive dealing with the potential buyer that is somewhat longer, often 120 days or more.

Deal Structure and Tax Consequences

Generally, there are three types of transactions: asset sales, equity sales, and mergers. Early in the sale process, preferably before receiving any LOI, we assist clients in helping them decide which structure is appropriate for them, and we work with their tax advisors to determine whether and how the structure will be taxable or tax-free.

Third-Party Consents and Licenses

Among the considerations in selecting the deal structure is the extent of any regulatory or contractual third-party consents that must be obtained to complete the sale, apart from the typical board and equityholder consents. For many clients, we often need to review their contracts to determine whether the counterparty must consent to a transaction. Some contracts require consent for any assignment of a contract, whereas others state that any change in control of a party is deemed to be an assignment requiring the other party’s consent. Note that asset sales generally require sellers to obtain more consent to contract assignments than equity sales. We also consider whether the company has any licenses that are not transferable, which argues in favor of an equity sale.

Financial Statements

After a confidentiality agreement or non-disclosure agreement is executed and before an LOI is presented, buyers often request the company’s financial statements for the previous three years in order to propose a purchase price in the initial draft of the LOI and any related working capital targets and earn-out provisions. After an LOI is executed and during due diligence, buyers will want more financial information, such as current financial statements, tax returns, and projections. The financial information is used to fine-tune the working capital targets and earn-out provisions, as well as to identify any risks associated with taxes, customer concentration, and the like.

Real Estate

Real estate may be an important asset of a company, so the parties should pay attention to any real estate owned or leased by the company and deal with related issues. If the real estate is leased, the lease’s assignment provisions need to be reviewed and complied with. Buyers may want an assignment of the existing lease, or they may want to enter into a new lease with more favorable terms. If the real estate is owned, then the buyer should decide whether it wants to purchase the real estate too. If so, then during the diligence process, the buyer should conduct a property inspection, review existing title insurance and surveys, order any updates to them, and consider whether to obtain a Phase I environmental site assessment.

Purchase Agreement

During the due diligence process, the parties and their counsel are also often negotiating the purchase or merger agreement. Among the issues that are negotiated are the following:

Employees

Buyers often want key employees to continue their employment, and may also want founders to stick around to assist with the transition. Both can be accomplished through ancillary employment and consulting agreements. Ensuring key employees stay is important to sellers as well, especially if an earn-out is a component of the purchase price. The parties may want to consider stay bonuses and other incentives to maximize the value of the company through closing and beyond.

Restrictive Covenants

Buyers often want to prevent founders from competing with the company once any transition services conclude, and this can be accomplished by way of non-competition covenants, either in the purchase agreement or the above-mentioned employment or consulting agreement. Note that the FTC Rule we discussed here previously has an exception for non-competition agreements related to a sale of a company. We often negotiate various parameters associated with non-competes, such as duration and geographic restrictions, as well as exceptions for any specific activities that founders may want to do post-closing, such as small investments, charity work, or other ventures.

Indemnification

The indemnification section of a purchase agreement is often heavily negotiated. Indemnification protects a party from losses associated with the acts or omissions of another party. For example, a seller may agree to defend, hold harmless, and make whole the buyer for any losses arising out of the seller’s breach of a representation or warranty. Sellers usually want to limit the duration of the indemnity obligation post-closing, as well as the amount of the indemnity obligation. Buyers like to carve out certain representations and warranties as “fundamental representations” that will not be subject to the same indemnification limits as general breaches of representations and warranties. The availability of representation and warranty insurance may favorably impact these negotiations from the seller’s perspective.

Conclusion

The foregoing is a brief overview of some of the important considerations when helping our clients prepare for the sale of a company. If you or someone you know is considering a company sale, please contact me at smigala@lavellelaw.com or (847) 705-7555 for a free initial consultation.

Success Story – Shareholder Steven Migala Provides Expert Witness Testimony in Breach of Fiduciary Duty and Fraud Case

Tue, 17 Sep 2024 21:27:00 GMT

Background:

Shareholder Steven Migala provided expert witness testimony to a Taft Stettinius & Hollister LLP trial team, assisting them to obtain a jury verdict in Cook County for its client, Michael Eggum, who sued his former restaurant business co-owner Ryan Kowalis for fraud and breach of fiduciary duty regarding Eggum’s investments in the restaurant co-owned by Kowalis. The evidence at trial included Mr. Migala’s expert opinion/report and testimony concerning the interpretation of key contract documents.

Challenges:

For this project, Steve and his team researched and produced an expert opinion letter / report concerning the interpretation of key contract documents, including a combined Stock Purchase Agreement and Shareholder Agreement. Mr. Migala ardently defended our firm’s opinions at deposition and at trial, persuasively explaining to the jury the meaning of various terms and conditions.

Result:

On September 4, a Cook County Circuit Court jury found Kowalis liable for fraudulently inducing Eggum to invest the money he saved while serving 10 tours of combat duty in Afghanistan and Iraq into the restaurant business that Kowalis co-owned and for which he acted as an officer and director. The jury found Kowalis liable for fraud and breach of fiduciary duty and awarded Eggum almost $400,000, which included $113,837 in compensatory damages and almost $300,000 in punitive damages.

“Steve’s expert witness testimony and analysis of the investment contract was incredibly persuasive at the jury trial. His balanced thoughtful testimony was clearly impactful on the jury. Despite the defendant's lawyer trying to push Steve to suggest that the investment funds could have been sent to any account, his opinion testimony was crystal clear – the money was directed and paid to the company's account and essentially could not thereafter be moved without unanimous shareholder approval. The jury clearly followed Steve’s testimony and the trial evidence, in finding the defendant liable for fraud in the inducement by clear and convincing evidence. We look forward to working with Steve on other cases!”

Todd Rowden – Taft Law Partner

Business Formation Workshop

Fri, 13 Sep 2024 21:56:30 GMT

Have you ever wanted to start a business but are unsure how to organize it? If so, then this seminar is for you. We discuss the organizational steps you should consider when forming your new venture. Tips for selecting the appropriate form of entity are provided, including a discussion of the income tax consequences flowing from each choice. We also highlight the organizational documents needed for each entity type, with a focus on the importance of shareholder and operating agreements. Contact Ted McGinn to find out more or to set up a consultation. 847-705-7555 or tmcginn@lavellelaw.com .

Tim’s Tax News on the Tenth – September 2024

Tue, 10 Sep 2024 21:06:11 GMT

IRS IS SLOW IN HELPING TAXPAYERS ADDRESS IDENTITY THEFT BUT HAS MADE ADVANCES IN SCOFFLAWS

Identity Theft

In two unrelated stories, the IRS was criticized by the National Taxpayer Advocate in her report to Congress that the IRS is failing to assist victims of identity theft with receiving their tax refunds. The National Taxpayer Advocate’s report highlighted significant delays that identity theft victims face when trying to resolve their cases and receive their refunds. As of April 2024, the IRS took over 22 months on average to resolve identity theft cases, leaving approximately 500,000 cases unresolved. This continues to be an ongoing issue, with last year's report showing similar delays. Despite efforts by the IRS to address these problems, the backlog remains substantial.

In response to the National Taxpayer Advocate’s comments, the IRS acknowledged the challenges but emphasized ongoing efforts to improve services, particularly in reducing the identity theft backlog and enhancing phone service capabilities. The IRS has been utilizing funds from the Inflation Reduction Act to address these issues and trying to improve overall taxpayer services.

Crackdown on Scofflaws

In a recent news release from the IRS, not related to the National Taxpayer Advocate’s report, the IRS announced that it had collected $1.3 billion from wealthy individuals who have avoided paying taxes for the past few years. IRS Commissioner Danny Werfel made the announcement, citing "new milestones" under the Inflation Reduction Act and how they have worked to ensure that wealthy individuals pay taxes.

"The IRS in February 2024 launched an initiative to pursue 125,000 high-income, high-wealth taxpayers who have not filed taxes since 2017," the IRS said in the announcement. "These are cases where the IRS has received third-party information—such as through Forms W-2 and 1099s—indicating these people received income between $400,000 and $1 million or more than $1 million but failed to file a tax return. Prior to the Inflation Reduction Act, the IRS non-filer program ran sporadically since 2016 due to severe budget and staff limitations that did not allow these cases to be pursued."

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Illinois Appellate Court Affirms Direct-To-Consumer Auto Sales

Mon, 09 Sep 2024 18:24:08 GMT

On August 23, 2024, the appellate court in Illinois’ First Appellate district concluded that neither the Illinois Vehicle Code nor the Motor Vehicle Franchise Act prohibits manufacturers from obtaining dealer licenses to sell directly to consumers.

For Illinois auto dealerships, the threat of direct-to-consumer sales has been lingering over their business model since Tesla arrived on the scene in 2009. Shortly thereafter, electric motor vehicle manufacturers Rivian and Lucid also sought to obtain licenses from the Illinois Secretary of State to sell their vehicles directly to consumers.

Legal challenges followed, culminating in success at the trial court for Rivian and Lucid, and now this most recent appeal in Illinois Automobile Dealers Association v. Office of the Illinois Secretary of State , 2024 IL App (1st) 230100 (August 23, 2024). Trade associations for franchise motor vehicle dealerships argued that the Illinois Vehicle Code and the Motor Vehicle Franchise Act limited the sale of new motor vehicles to franchised dealerships, thereby precluding direct sales by manufacturers. Likewise, they argued that granting dealer licenses to Rivian and Lucid represented violations of their Due Process and Equal Protection clause rights under the U.S. Constitution.

On each legal claim brought, the Court sided with Rivian and Lucid, cementing direct-to-consumer automotive sales in Illinois for the foreseeable future.

Statutory Arguments

The court dismissed the Illinois dealers’ statutory arguments regarding the Vehicle Code and the Motor Vehicle Franchise Act.

Rivian and Lucid contended that the plain wording of the Vehicle Code and the Act did not forbid them from acquiring dealer licenses to sell directly to consumers. They argued that the law only restricted them from directly owning or operating a motor vehicle franchise.

Illinois dealers disagree and contend that interpreting the Vehicle Code and the Act together implies that manufacturers are prohibited from selling directly to consumers. The dealers argue that the “mandatory contract requirement” under Vehicle Code § 5-101(b)(6) suggests that the Code prevents manufacturers from obtaining a dealer license because a manufacturer cannot contract with itself. The dealers also cite § 5-101(d)(1), which provides that no person can be licensed as a dealer without an authorized contract with a manufacturer or franchised distributor.

The court held that while Section 5-101(d)(1) prohibits granting a license to a new vehicle dealer absent a contract between the dealer and manufacturer, this provision must be interpreted in light of the purpose of the Code--to prevent fraud via a mandatory license and record keeping process. With this express purpose in mind, the court concluded that the contract requirement demands only that parties other than the manufacturer obtain a dealer license to sell new motor vehicles.

Constitutional Arguments

The dealer associations argued in Illinois Automobile Dealers Association v. Office of the Illinois Secretary of State that the granting of dealer licenses to Rivian and Lucid amounted to a procedural Due Process violation by creating a bypass system for obtaining a dealer license and damaging their interest in the established franchise system.

The court disagreed, concluding that dealers are not required by statute to operate as franchises; this business method is voluntary, and no protectable property interest arises from it. The court further held that even if the dealers had such a property interest in their existing franchise arrangements, their licenses remain intact and freedom from such competition is not a constitutionally protected interest.

The dealerships also asserted Equal Protection claims on the grounds that they are similarly situated with Rivian and Lucid, but are treated differently. The court disagreed with this comparison and affirmed the lower court’s ruling that the dealers failed to state a claim on this cause of action.

Takeaway for Automotive Dealers

The decision in Illinois Automobile Dealers Association v. Office of the Illinois Secretary of State affirms that direct-to-consumer automobile sales are here to stay in Illinois.

Dealers can protect themselves by retaining legal counsel with knowledge and experience in the auto industry. If you have questions about this decision or any issues currently impacting your dealership, contact Attorney Sarah Reusche at sreusche@lavellelaw.com or (847) 241-1795 for a free consultation.

Banking and Business Monthly – August 2024

Thu, 22 Aug 2024 21:57:44 GMT

Updating Our July 2024 Article on the FTC’s Nationwide Ban on Noncompete Agreements

Background

As detailed in our May article , on April 23, 2024, the FTC finalized a Non-Compete Clause Rule banning employers under its jurisdiction from using non-compete agreements with any worker, regardless of their job title or income, unless the agreement is part of selling a business. As part of the Rule, existing non-compete agreements would become unenforceable for most employees, except those classified as “senior executives” under the Rule.

The Ryan Case

When the Rule was released, Ryan LLC filed a lawsuit in the Texas District Court against the FTC, arguing that the agency exceeded its authority under the Federal Trade Commission Act by creating rules that dictate substantive aspects of competition regulation. On July 3, 2024, as discussed in our July article , the District Court granted Ryan’s motion for a stay and preliminary injunction, agreeing that the FTC lacks authority to enforce the non-compete ban. However, the court restricted this relief to the plaintiffs, opting at the time not to issue a universal injunction or extend it to members of the plaintiffs’ business associations.

August Update

On August 20, 2024, the court granted summary judgment for the plaintiff and issued this order setting aside the FTC’s ban on non-compete agreements and ordered that the Rule shall not be enforced or otherwise take effect on September 4, 2024. This means employers will not be required to void employee’s existing non-competes covered by the Rule, and are no longer required to send employees notices regarding the status of any non-competes.

In granting summary judgment, the court reasoned that the FTC lacked the authority to implement the Rule, as Congress had not granted the agency authority to promulgate substantive rules regarding unfair methods of competition. The court also held that the rule was “arbitrary and capricious” in violation of the Administrative Procedure Act “because it is unreasonably overbroad without a reasonable explanation” and that “the Rule imposes a one-size-fits-all approach with no end date, which fails to establish a rational connection between the facts found and the choice made.” The decision also questioned “[t]he Commission’s lack of evidence as to why they chose to impose such a sweeping prohibition” rather than “targeting specific, harmful non-competes.”

Future Outlook

As we write this article on August 22, 2024, the FTC’s website states: “The FTC is considering an appeal. The decision does not prevent the FTC from addressing noncompetes through case-by-case enforcement actions.” It is anticipated the FTC will continue to pursue enforcement actions against companies that utilize non-compete agreements, particularly for lower-wage workers. For further inquiries or questions regarding the status of the FTC Rule, or non-compete agreements generally, please contact me at smigala@lavellelaw.com or at (847) 705-7555. Thanks go to Nathan Toy for assistance with this month’s article.

Ensuring Compliance with Illinois Motor Vehicle Advertising Laws

Tue, 20 Aug 2024 22:29:25 GMT

The following article will explain the various laws and regulations related to motor vehicle advertising in Illinois. However, this information is not all-encompassing, and as always dealers should consult with legal counsel to ensure their specific advertising complies with Illinois Law. If you have questions regarding Illinois dealership law, contact Sarah Reusche at sreusche@lavellelaw.com to schedule a consultation.

General Advertising Practices

It is an unfair and deceptive practice to advertise or sell a vehicle without clearly and prominently disclosing all important details right from the start of the offer. Dealers should not use footnotes or asterisks that might confuse or change the main terms of the ad or use a font size smaller than 10 point that is hard to notice.

Dealers should also avoid using inaccurate photos or illustrations, such as showing a fully loaded car when the offer is for a basic model. It is also an unfair and deceptive practice to use confusing or uncommon abbreviations that most people would not understand.

Price Advertising

Advertisements must include all costs to the purchaser in the total price of the vehicle, except for taxes, license and title fees, and documentary service fees if clearly disclosed otherwise. Advertised prices must be honored, allowing purchasers to buy vehicles at the stated price.

Limitations to advertised prices must be clearly and prominently disclosed. For example, claims of "lowest prices" or similar must be substantiated by continual monitoring of competitors' prices and verifiable evidence. Ads with price matching statements like "meet your best offer" must disclose a price matching policy that is consumer friendly.

Price comparisons with higher prices must clearly state their basis, except for certain conditions in the new vehicle context. Comparisons with prices offered by other dealers must be fair and clearly disclosed, or the dealer must specifically identify the other dealer. For new vehicles, claiming savings based on a list price is deceptive unless it is the MSRP or the dealer's former price. Used vehicle price comparisons must be based on a recognized price guide and clearly disclosed, with a disclaimer about varying vehicle values.

Certain terms like "sale" or "discount" must reflect a reasonable reduction from the regular price, with a 5% reduction considered reasonable. Terms like "sale" or “discount” must clearly specify how long they last and which vehicles are included unless the model cannot be reordered from the manufacturer.

Claims of "liquidation sale" or similar must accurately reflect the dealer’s intention to cease operations after disposing of vehicle inventory. And range-based pricing claims must disclose the highest price or lowest discount in the range, and a reasonable number of vehicles at the largest discount must be available.

Terms like "dealer’s cost" must clarify that the dealer's profit is not limited to the amount over an invoice, unless specific conditions are met. Also, "buy-down" rates must disclose if not sponsored or subsidized by the manufacturer, and below-market finance rates must comply with federal lending regulations.

Other Advertising Practices

Demonstrator vehicles must clearly disclose their year, make, model, and demonstrator status. Executive or official vehicles can only be advertised if exclusively used by designated executives or as promotional vehicles. Vehicles previously leased or rented must be clearly labeled as "used" and disclose relevant details.

Cash rebates must be solely funded by the manufacturer and disclosed accordingly. Advertised prices or payments after deducting rebates must be available to all eligible consumers. Also, trade-in allowances must be clearly specified without range ambiguity. Claims of "no money down" must not require any down payment in any form (i.e. financing or cash).

Advertised prices based on shopped price or surveys must meet strict criteria including but not limited to being recent and independent. Also, claims of special manufacturer relationships must not imply greater authority than other dealers.

Additional costs for warranties or services must be disclosed and agreed upon before sale. Offers of free prizes or gifts with vehicle purchase must disclose all terms upfront. Warranties can be included with purchases but cannot be advertised as "free”.

Credit Sales Advertising

Closed-end credit terms cannot be advertised without clearly disclosing: (1) the down payment amount or percentage, repayment terms, and annual percentage rate (APR); (2) for balloon-note financing, the final amount owed at the end of the payment schedule near the triggering terms; and (3) the details of any manufacturer's tiered financing offers. Advertised credit terms must be available to consumers.

Finance rates must be disclosed with applicable conditions such as: (1) the limitations to specific models; (2) the potential price increases due to dealer contributions; (3) the requirements to purchase additional options or services; (4) the impact on final vehicle or option/service prices; (5) the expiration dates or other time-limited conditions; and (6) any other significant terms affecting rate availability. Terms like "bank rates" can only be used if offered by a bank, bank association, or authorized trust company in Illinois.

Assistance with Compliance

Failure to comply with these laws can have astronomical effects on dealerships such as penalties, litigation costs, increased exposure, etc. Legal counsel well-versed in dealership law serves as a proactive partner in ensuring that dealers not only meet but exceed the standards set by motor vehicle advertising rules and regulations, thereby protecting dealers from legal risks and enhancing their reputation with consumers.

If you have questions regarding Illinois dealership law, contact Sarah Reusche at sreusche@lavellelaw.com to schedule a consultation.

Success Story – Successfully Helped Client Get Passport Released From IRS

Mon, 19 Aug 2024 19:56:38 GMT

Background: Our client faced significant federal tax liabilities stemming from a failed family business venture. The situation worsened when he discovered that his passport had been frozen due to an outstanding balance of over $100,000 owed to the IRS. This freeze came at a particularly challenging time, as he wished to visit a sick grandparent in Europe.

Challenges: The IRS has employed a collection tactic where they request the U.S. Secretary of State to impose a passport freeze on taxpayers with substantial unpaid balances. This policy had a direct impact on our client’s ability to travel abroad.

Result: Our office acted quickly to negotiate an Installment Agreement with the IRS, resulting in the release of the client’s passport, and restoring his ability to travel.

Chicago Paid Leave and Paid Sick and Safe Leave Ordinance – Things Employers Need to Know!

Fri, 16 Aug 2024 15:24:06 GMT

For purposes of Chicago’s Paid Leave and Paid Sick Leave Ordinance (the “Ordinance”), there are several critical definitions:

“Covered Employee” is one who, in any two-week period, performs at least two hours of work for an Employer while physically present within the city's geographic boundaries.

“Employer” encompasses a person or entity who gainfully employs at least one Covered Employee.

“Small Employer” means an Employer with 50 or fewer Covered Employees.

“Medium Employer” means an Employer with between 51 and 100 Covered Employees.

General

Under the Ordinance, Covered Employees working for an Employer are entitled to Paid Leave and Paid Sick Leave, compensated at the same rate as their regular wages. The minimum hourly pay should not be less than the highest applicable wage among Federal, Illinois, or Chicago minimum wages. For employees that are not exempt from overtime requirements, Paid Leave and Paid Sick Leave are calculated based on the average wage divided by total hours worked in previous pay periods.

Employers must pay for Paid Leave and Paid Sick Leave by the next regular payday after the leave is taken. They are prohibited from interfering with, denying, or altering workdays or hours to avoid providing these benefits. Absence-control policies cannot use paid time off as a basis for disciplinary actions. Any Paid Sick Leave accrued before July 1, 2024, that does not meet new requirements must be transferred to comply with current rules. Employers cannot require employees to find replacement workers for Paid Sick Leave or Paid Leave.

Accepted Uses

Covered Employees can use Paid Leave for any purpose without needing to provide a reason or documentation. Paid Sick Leave can be used for personal illness, family member illness, domestic violence situations, public health emergencies, or compliance with quarantine or isolation orders. Employers can establish policies requiring up to seven days' notice and reasonable pre-approval, but must comply with rules set by the Office of Labor Standards.

Accrual

Employers can choose between accrual or frontloading methods for Paid Leave and Paid Sick Leave. If not frontloaded, paid and sick leave each accrue at one hour for every 35 hours worked. Employers may set an annual cap of 40 hours for both types of leave, but up to 80 hours of Paid Sick Leave and 16 hours of Paid Leave can carry over each year. Frontloaded leave does not need to carry over if the Employer opts for this method.

Termination

Upon termination, resignation, retirement, or any other separation, Employers must pay out unused accrued Paid Leave at the employee’s final pay rate, except for Small Employers who are not required to make this payout. Medium Employers must pay up to 16 hours of unused Paid Leave until June 30, 2025. From July 1, 2025, they must follow the same payout requirements as other Employers.

Notice

Employers must post a notice about Paid Leave and Paid Sick Leave rights in a visible location at each facility and provide written notice with the first paycheck and annually within 30 days of July 1. They must also inform employees of their accrued leave and accrual rates, using reasonable methods like online systems or reflecting leave time on paycheck stubs.

Violations

Violations of the Ordinance can result in fines ranging from $1,000 to $3,000 for each offense, with notice-related violations starting at $500. Employers are also liable for damages equivalent to three times the denied or lost leave amount, plus interest and reasonable attorney fees. Covered Employees can pursue legal action for violations, seeking damages, interest, and attorney fees.

Records

Employers must retain records of employee leave and payment details for at least five years or the duration of any pending claims, whichever is longer.

Employers should be aware of and prepare for these changes that went into effect on July 1, 2024. Violations of these rules can create liability for an Employer, including the payment of fines, excess Paid Leave benefits, and civil action damages. This article is not all encompassing and if you have questions regarding the Ordinance, contact Lance Ziebell at 847-705-7555 or lziebell@lavellelaw.com to schedule a consultation.

Business Formation Workshop

Thu, 15 Aug 2024 22:08:21 GMT

A Lavelle Law Breakfast Briefs Presentation

September 11, 2024

7:45 – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

Have you ever wanted to start your own business but are unsure how to organize it? If so, then this seminar is for you. We will discuss the organizational steps you should consider when forming your new venture. Tips for selecting the appropriate form of entity will be provided, including a discussion of the income tax consequences flowing from each choice. We will also highlight the organizational documents needed for each entity type, with a focus on the importance of shareholder and operating agreements. There will be time for you to ask questions of our panel. The seminar will conclude with a special package offer to attendees for our services.

Doors will open at 7:45 for a complimentary continental breakfast and the presentation will begin at 8:00. Registration is required as seating is limited. No walk-ins.

MEET THE PANEL

Ted McGinn is the managing partner and a shareholder of Lavelle Law and focuses his practice on business formations, capital structuring, mergers and acquisitions, and other transactions. He also provides guidance in areas of intellectual property including trademarks and copyrights, handles employment and labor law issues, and represents individuals and businesses in bankruptcy and other debtor relief and wind-down strategies. Mr. McGinn serves as Immediate Past Chair of the Board of Directors for the Schaumburg Business Association and is a member of the Schaumburg Business Development Commission of the Village of Schaumburg. Additionally, Ted supports the Palatine Area Chamber of Commerce’s Young Entrepreneurs Academy (YEA!) and currently serves on the Harper College Legal Studies Advisory Committee.

Steve Migala is one of the shareholders of Lavelle Law, and is an experienced business attorney practicing in the following areas:

Corporate / M&A: Steve counsels business organizations in all stages of their life cycle, from start-up issues, contract negotiation and documentation, assets and equity sales/purchases, and mergers and joint ventures.
Banking: Steve represents banks and borrowers in commercial lending and workout matters, including negotiating and documenting a variety of loans and forbearance agreements, as well as handling foreclosures and other collection actions.
Real Property: Steve represents sellers, buyers, landlords, and tenants with acquisitions, dispositions, and leasing of real estate, as well as with related municipal zoning matters.
Estate Planning: Steve assists business owners with their succession planning and exit strategy, as well as their estate plans, probate, and trust administration.

Steve serves on the Planning and Zoning Commission in the City of Elgin and is a member of the Board of Directors for the Elgin Area Chamber of Commerce. He is a former chair of the Chicago Bar Association’s Corporation and Business Law Committee.

Frank Portera manages the Corporate Compliance Practice Group at Lavelle Law, and focuses his practice on new business formations, drafting shareholder/operating agreements, and mergers and acquisitions. Through Frank’s general business law practice, he works closely with many business owners to assist them in applying for and maintaining trademarks and negotiating commercial lease agreements. Mr. Portera serves on the Board of Directors for the Arlington Heights Chamber of Commerce and is a member of the Arlington Heights Zoning Board of Appeals. He also serves on the Board of Directors for Gerry’s Café in Arlington Heights. Frank received both his B.A. and J.D. from Marquette University in Milwaukee, Wisconsin.

The Real Estate NARS Tea: What are these momentous changes in real estate that everyone is talking about?

Thu, 15 Aug 2024 16:47:47 GMT

Starting this Saturday, August 17, 2024, new rules go into effect for the National Association of Realtors (“NARS”) that change the way realtors will be paid their commission when representing people buying and selling homes. These new rules came about as part of a $418 million settlement by NARS in March, and effectively eliminate the existing informal payment structures that have historically been used by realtors. Until now, sellers of homes typically would sign listing agreements agreeing to pay anywhere from 4-6% of the purchase price in commission, which commission amount would then be split between their agent and the buyer’s agent. So, Buyers did not have to pay anything to their realtor for their assistance. The new rules could change that.

Since the March settlement, realtors across the country have been evaluating the changes and how they are to implement them. There have been training sessions regarding new paperwork that will have to be signed by buyers and sellers, in addition to the traditional listing agreements.

More specifically – buyers’ agents, who were typically paid by the seller, now will need to let their buyer know at the outset of their relationship that some sellers may not agree to pay their commission, and therefore, the buyer would need to pay it. So, for example, if someone is buying a $1,000,000 home where the seller will only pay for their own agent’s 3% commission ($30,000), the buyer’s agent will ask the buyer to sign something agreeing to pay their commission. And depending on the commission negotiated with that buyer, that commission could tack on an additional $10-$30,000 on the purchase price.

Additionally, realtors used to be able to include in the MLS listings for a home the amount of commission that a buyer’s agent would receive. The rules will no longer allow that. In other words, a buyer’s agent will have to reach out to the other agent directly to find out whether the Seller will pay any commission.

So, realtors have been doing everything they can to prepare for this in the past several months. It remains to be seen just how the market will respond. Will prices be impacted if Sellers are paying less in commission? Will buyers be willing to sign something agreeing to pay their agent’s commission? And if they are getting a loan for the purchase, will this commission payment be allowed by their lender? And if not, are buyers’ agents going to be disincentivized to show properties where their commissions won’t be paid by the seller? Or will buyers decide to go without an agent altogether to avoid paying a commission? If so, what sort of problems might arise during the negotiation process? And will attorneys representing buyers have to get involved earlier in the process because the buyer doesn’t have their own agent? Will buyer’s agents quit real estate altogether? Or will buyers realize the value of their agent and willingly agree to pay these commissions if the seller won’t?

As an attorney who traditionally represents both sellers and buyers after they have already nailed down the key terms with the help of their respective agents – I feel strongly that each party should have their own agent educating them and advocating for them early in the process. Both listing and selling agents, who are experienced, are the most equipped and knowledgeable as to the properties that fit the bill for their clients and how to market a property they are selling.

If you have questions about the new rules and how they might impact you, feel free to reach out to me at 847-705-7555 or kanderson@lavellelaw.com to discuss.

Tim’s Tax News on the Tenth – August 2024

Sat, 10 Aug 2024 17:16:30 GMT

IRS Moves Forward with Employee Retention Credit Claims

On August 8, 2024, the IRS announced additional actions to help small businesses and prevent improper payments in the Employee Retention Credit (“ERC”) program, which include accelerating more payments and continuing compliance work on the complex pandemic-era credit that was flooded with claims following misleading marketing.

The IRS is continuing to work denials of improper ERC claims, intensifying audits and pursuing civil and criminal investigations of potential fraud and abuse. The findings of the IRS review, announced in June, confirmed concerns raised by tax professionals and others that there was an extremely high rate of improper ERC claims in the current inventory of ERC claims.

The IRS has sent out over 28,000 disallowance letters to businesses whose claims showed a high risk of being incorrect. The IRS estimates that these disallowances will prevent up to $5 billion in improper payments. Thousands of audits are underway, and 460 criminal cases have been initiated.

Given the complexity of the ERC and to reduce the risk of improper payments, the IRS emphasized it is moving methodically and deliberately on both the disallowances as well as additional payments to balance the needs of businesses with legitimate claims against the promoter-fueled wave of improper claims that came into the agency.

The ERC program began as an effort to help businesses during the pandemic, but as time went on the program increasingly became the target of aggressive marketing – and potentially predatory in some cases – well after the pandemic ended. Some promoter groups called the credit by another name, such as a grant, business stimulus payment, government relief or other names besides ERC or the Employee Retention Tax Credit (ERTC).

To counter the flood of claims, the IRS announced last fall a moratorium on processing claims submitted after September 14, 2023, to give the agency time to digitize information on the large study group of ERC claims, which are made on amended paper tax returns. The subsequent analysis of the results during this period helped the IRS evaluate next steps, providing the agency valuable information to improve the accuracy of ERC claims processing going forward.

The detailed review during the moratorium allowed the IRS to move into this new stage of the program with more payments and disallowances. In addition, the IRS will remain in close contact with the tax professional community to help navigate through the complex landscape. The IRS’ work continues to respond to improper claims, and they are closely monitoring feedback; the appeals process available for denied claims.

The recent issuance of 28,000 disallowance letters, is not the only action the IRS is and has taken. Other IRS activity with respect to ERC is summarized as follows:

ERC Claim Withdrawal Program: The claim withdrawal process for unprocessed ERC claims has led to more than 7,300 entities withdrawing $677 million.
ERC Voluntary Disclosure Program: During the VDP, which ended in March, the IRS received more than 2,600 applications from ERC recipients that disclosed $1.09 billion worth of credits.
Criminal investigations: As of July 1, 2024, IRS Criminal Investigation has initiated 460 criminal cases, with potentially fraudulent claims worth nearly $7 billion. In all, 37 investigations have resulted in federal charges so far, with 17 investigations resulting in convictions and nine sentencings with an average sentence of 20 months.
Promoter investigations: The IRS is gathering information about suspected abusive tax promoters and preparers improperly promoting the ability to claim the ERC. The IRS’s Office of Promoter Investigations has received hundreds of referrals from internal and external sources. The IRS will continue civil and criminal enforcement efforts of these unscrupulous promoters and preparers.
Audits: The IRS has thousands of ERC claims currently under audit.

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Deadline approaches to file new mandatory report with Treasury Department

Fri, 09 Aug 2024 17:16:52 GMT

Link to Daily Herald Article: https://www.dailyherald.com/20240807/submitted-content/deadline-approaches-to-file-new-mandatory-report-with-treasury-department/

Navigating “Gray” Divorce in Illinois

Wed, 07 Aug 2024 21:25:22 GMT

Divorce among older couples, often referred to as “gray divorce,” has become increasingly common in recent years. In Illinois, like many other states, this trend has significant legal, financial, and emotional implications. As couples over 50 decide to end their marriages, they encounter a set of considerations distinct from those faced by younger couples. Understanding these nuances is crucial for anyone going through a gray divorce in Illinois.

Financial Complexity

One of the primary concerns in gray divorce is the division of assets accumulated over what may have been decades of marriage. Illinois follows the principle of equitable distribution , meaning that marital property is divided fairly, though not necessarily equally between spouses. Determining what constitutes marital property (versus non-marital property) and how to equitably divide it can be complex, especially when retirement accounts, pensions, a marital residence, and other assets are involved.

Illinois law recognizes several factors when dividing marital property, including the duration of the marriage, each spouse’s contribution to the marital assets, and the economic circumstances of each spouse post-divorce. [Illinois statute 750 ILCS 5/503(d), sets out each of the relevant factors that a judge shall consider when allocating the marital assets “in just proportions” between the parties in a divorce.] This is a different approach than the process followed in community property states, which automatically apply the 50/50 rule.

Spousal Support

In gray divorces, spousal support, also known as maintenance or alimony, may play a significant role, particularly if one spouse has been out of workforce for an extended period of time or has a significantly lower earning potential. This often occurs when one parent was the stay-at-home-parent whose role for much of the marriage was to care for the children. Illinois law provides guidelines for calculating maintenance based on factors such as the length of the marriage, each spouse’s income and earning capacity, and the standard of living during the marriage.

Unlike some states with strict formulas for calculating maintenance, Illinois law allows judges significant discretion in determining the amount and duration of support payments. This flexibility lets the courts tailor maintenance awards to specific circumstances of each case, taking into account factors such as the age and health of the parties involved.

Retirement Accounts and Benefits

Retirement assets, including pensions, 401(k) accounts, and Social Security benefits, are often among the most substantial assets in a gray divorce. Illinois law treats these assets as marital property subject to division even if only one spouse earned them during the marriage. Dividing retirement benefits requires careful consideration of possible tax implications, valuation methods and eligibility criteria. For example, dividing a 401(k) account will require obtaining a Qualified Domestic Relations Order (QDRO). This is a specific court order that directs the 401(k)-plan administrator on how to distribute the funds in that account between the divorcing spouses. Social Security benefits may also be divisible under certain circumstances, particularly if the marriage lasted 10 years or longer.

Health Insurance and Long-Term Care

Gray divorces often coincide with significant life changes, including retirement and changes in health insurance coverage. In Illinois, spouses may be eligible following divorce to stay on their former spouse’s health insurance plan under COBRA (Consolidated Omnibus Budget Reconciliation Act) for a limited period of time. However, finding alternative health insurance coverage, especially for older individuals who may have pre-existing conditions can be challenging and costly.

Long-term care planning is another important consideration in gray divorce, especially as spouses are advanced in age and may require assistance with healthcare or daily activities. Addressing these concerns during divorce negotiations can help ensure that both parties are adequately protected in their later years.

Emotional Considerations

While the legal and financial aspects of gray divorce are essential, the emotional impact should not be overlooked. Ending a long-term marriage can be particularly challenging for older adults who may be facing issues such as loneliness, grief, and uncertainty of the future. Having a support network in place consisting of family, friends and a therapist during a gray divorce can be invaluable during this time of transition.

From navigating complex financial arrangements to addressing emotional concerns, divorcing later in life requires a comprehensive approach that takes into account the specific circumstances of each case. By understanding the intricacies of gray divorce in Illinois and seeking appropriate guidance, individuals can manage this process with greater confidence and clarity.

Annette Corrigan is one of the highly experienced attorneys making up the Lavelle Law’s Family Law Team. If you, or someone you care about, is facing divorce, reach out today at 847-705-7555, and one of our divorce lawyers will be available for a complimentary and confidential consultation.

Banking and Business Monthly – July 2024

Thu, 25 Jul 2024 16:23:28 GMT

Updating Our May 2024 Article on the FTC’s Nationwide Ban on Noncompete Agreements

On July 3, 2024, the U.S. District Court for the Northern District of Texas issued a preliminary injunction against the FTC’s non-compete rule, which is set to ban most non-compete agreements nationwide starting September 4, 2024. The case, Ryan LLC v. Federal Trade Commission , was brought by Ryan LLC and several intervenor organizations including the U.S. Chamber of Commerce and Business Roundtable.

Background

As we explained in our May article , on April 23, 2024, the FTC finalized its Non-Compete Clause Rule that bans employers under its jurisdiction from using non-compete agreements with any worker, regardless of their job title or income, unless the agreement is part of selling a business. Under the Rule, “worker” is defined broadly to include any employee regardless of whether they are paid or unpaid, irrespective of title or status, including “independent contractor, extern, intern, volunteer, apprentice, or sole proprietor who provides a service to a person.” Existing non-compete agreements would become unenforceable for most employees, except for those classified as “senior executives” under the Rule. The Rule defines a “senior executive” as a worker earning total annual compensation of at least $151,164 in the preceding year who is in a “policy-making position.” Employees in policy-making positions are defined as an entity’s president, CEO, or equivalent, and any other officer of a business who has the authority to make policy decisions that control significant aspects of the business.

Starting September 4, 2024, employers must notify affected workers that their non-compete clauses will not be enforced. However, non-solicitation and confidentiality clauses may still be enforceable as long as they do not unfairly restrict competition.

The Ryan Case

When the Rule came out, Ryan LLC (Ryan) filed a lawsuit against the FTC. Ryan argued that the FTC exceeded its authority under the Federal Trade Commission Act (FTC Act) by creating rules that dictate substantive aspects of competition regulation. They claimed that the Rule was not authorized by law and thus unconstitutional, as the FTC lacked authority to engage in rulemaking. Ryan requested the court to declare the Rule unlawful. Additionally, they sought an order from the court to postpone the Rule’s effective date and prevent the FTC from enforcing it while the legal challenge was ongoing. In response, the FTC contended that it possesses statutory authority, as delegated by Congress, to establish the Rule. This authority includes the ability to classify all non-compete agreements as “unfair methods of competition.”

Districts Court’s Decision

On July 3, 2024, the District Court granted Ryan’s motion for a stay and preliminary injunction. The Court agreed with Ryan’s argument that the FTC lacks authority to enforce the non-compete ban. It also recognized that the plaintiffs would suffer irreparable harm if forced to comply with the Rule, particularly in the financial costs associated with notifying affected workers about the non-enforcement of existing non-compete clauses. Moreover, the Court determined that granting injunctive relief would uphold the public interest, as the Rule could render longstanding contractual agreements unenforceable. However, the Court restricted this relief to the plaintiffs, opting not to issue a universal injunction or extend it to members of the plaintiffs’ business associations. The Court plans to fully resolve the case and determine the scope of relief by August 30, 2024.

Future Outlook

The District Court’s ruling on the non-compete ban sets the stage for future legal challenges. By August 30, 2024, that court plans to decide the merits of the lawsuit, just days before the Rule banning non-competes is set to take effect. In a different lawsuit, ATS Tree Services, LLC v. FTC , the U.S. District Court for the Eastern District of Pennsylvania rejected ATS Tree Services' Motion for Stay of Effective Date and Preliminary Injunction on July 23, 2024, creating a split in decisions. The court found no irreparable harm and ruled that ATS Tree Services failed to demonstrate a likelihood of success in challenging the FTC’s Rule, which likely falls within the FTC’s authority. Appeals in both circuits—Fifth and Third—are now likely to follow, potentially leading to a U.S. Supreme Court review of the Rule in light of its recent overturning of Chevron deference to administrative agencies in Loper Bright Enterprises v. Raimondo , which changed how federal courts are to approach their review of a federal agency’s interpretation of a statute. The Loper Bright Enterprises decision means that federal courts are now less likely to defer to federal agencies’ interpretations of laws. Instead, courts will independently assess statutory interpretations, potentially influencing future decisions on regulatory challenges and federal agencies’ legal interpretations of statutes, such as embodied in the Rule.

In sum, until we have a nationwide injunction or court order holding the Rule to be unconstitutional, the prudent course for employers is to continue their preparations to comply with the Rule. For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555. Thanks go to Anthony Letto for assistance with this month’s article.

Success Story – Negotiated Settlement Saves Client from Huge City of Chicago Violations

Tue, 23 Jul 2024 20:55:24 GMT

Background:

Our client was investigated by the City of Chicago regarding its Minimum Wage and Paid Sick Leave Ordinance. Our client was faced with potential violations in the amount of between $359,000.00 and $593,000.00

Challenges:

Our client was able to produce some, but not all, of the evidence necessary to rebut the City of Chicago’s allegations. This made it challenging to negotiate with the City of Chicago to lower the potential penalties.

Result:

After lengthy negotiations Lavelle Law resolved our client’s matter for a total amount of $36,245.00, saving the client potentially hundreds of thousands of dollars.

Dealership Law and its Intricacies

Mon, 15 Jul 2024 20:47:15 GMT

There are a number of unique legal characteristics to launching and operating a dealership for automobiles or construction, landscaping, and agricultural equipment. In this video, attorney Sarah Reusche describes the Dealership Law practice group at Lavelle Law. She discusses the legal complexities of securing and starting a dealership and examines the unique operating requirements and compliance and reporting needs for dealerships and franchisees.

Daily Influence - From Mission Trips to Legal Advocacy: Sarah’s Journey of Spreading Positivity

Mon, 15 Jul 2024 20:16:37 GMT

Lavelle Law attorney Sarah Reusche sat down with the host of the Daily Influence podcast, Greg Koleno, and shared her inspiring journey from participating in youth mission trips to becoming a dedicated legal advocate. Sarah discusses how her early experiences in mission work opened her eyes to the challenges faced by others and fueled her passion for making a positive impact. She reveals her strategies for maintaining positivity, the importance of scheduling meaningful connections, and the role of kindness and mentorship in creating supportive communities and workplaces.

Powers of Attorney – An Essential for College Students

Mon, 15 Jul 2024 17:08:52 GMT

Sending your child off to college is a significant milestone in their life. While it is important to devote time to picking your dorm accessories or drawing a map of your classes on campus, it is crucial that you also consider the legal ramifications of your child turning 18 and moving away.

A power of attorney (POA) is a legal document that grants authority to another person (known as the agent) to act on behalf of the signer (known as the principal). For college-bound students, two types of POAs are particularly relevant:

Power of Attorney for Health Care : This document allows the appointed agent to make medical decisions on behalf of the student if they become incapacitated and unable to communicate their wishes. This can include decisions about medical treatments, surgeries, and other healthcare matters. Without proper documentation, parents will be unable to access the medical records or assist in the care of their child if they have turned 18.
Durable Power of Attorney for Finances : This POA grants authority to the agent to manage financial matters on behalf of the student. This could include accessing bank accounts, signing leases, managing investments, or handling other financial transactions. This POA allows parents to continue to assist the student in managing their finances and also ensures that a parent can step in to manage affairs if the student is incapacitated or unavailable.

For parents, having these POAs in place offers peace of mind knowing that they can assist their child effectively in times of need, regardless of distance or circumstance. Without these documents, parents may find themselves navigating complex legal processes to gain authority over their child’s affairs, which can be time-consuming, expensive, and emotionally challenging.

Moreover, college environments can present unique situations where having a POA can be invaluable. Whether it’s a medical emergency, a legal matter, or a financial transaction, having a designated agent empowered by a POA can expedite decision-making and ensure that the student’s interests are protected.

It’s important to note that POAs are customizable to fit the specific needs and preferences of each family. Consulting with an attorney can help ensure that the documents are properly drafted according to Illinois law and that they accurately reflect the wishes and intentions of the parties involved.

While sending a child off to college is an exciting milestone, it’s also a prudent time for families to consider the legal implications and to prepare accordingly, such as having powers of attorney in place. At our firm, we understand the importance of these documents, which is why we're currently running a special promotion on the creation of powers of attorney (please note, offer ends on October 1st, 2024). This offer ensures that you can protect your child's interests and handle any unforeseen circumstances with confidence while they pursue their educational goals.

If you would like to schedule a free consultation to learn more, or to discuss how powers of attorney and an estate plan can benefit you and your family, please call attorney Heather A. McCollum at (847) 705-7555 or email her at hmccollum@lavellelaw.com .

Understanding Probate Court in Illinois

Thu, 11 Jul 2024 18:57:02 GMT

In the state of Illinois, as in many other jurisdictions, probate court plays a crucial role in managing the estates of deceased individuals. Probate refers to the legal process through which a deceased person's assets are distributed to heirs and beneficiaries, and debts are settled under court supervision.

Key Functions of Probate Court:

Validating Wills: One of the primary functions of probate court is to determine the validity of the deceased person's will. If a valid will exists, the court ensures that the terms of the will are followed when distributing assets.
Appointing Executors/Administrators: The court appoints an executor (if named in the will) or an administrator (if there is no will or no executor named) to oversee the probate process. This person is responsible for gathering the deceased person's assets, paying debts and taxes, and distributing remaining assets to beneficiaries.
Settling Debts and Taxes: During probate, creditors have the opportunity to make claims against the estate for unpaid debts.
Distribution of Assets: Once debts, taxes, and administrative expenses are settled, the remaining assets are distributed to the beneficiaries named in the will or, if there is no will, according to Illinois intestacy laws.
Supervision and Dispute Resolution: Probate court provides a forum for resolving disputes that may arise during the administration of the estate. This could include challenges to the validity of the will, claims by creditors, or disagreements among beneficiaries.

Probate court in Illinois plays a pivotal role in overseeing the distribution of a deceased individual's assets and settling debts under legal supervision, however, estate planning attorneys often advise clients to prepare an estate plan during their life that minimizes or wholly avoids probate for several reasons:

Challenges of Probate:

Cost and Time: Probate proceedings can be costly, involving court fees, attorney fees, and executor/administrator expenses. Delays in the process can tie up assets that beneficiaries may need promptly.
Lack of Privacy: Probate proceedings are public record, potentially exposing details of the deceased person's assets, debts, and beneficiaries.
Potential Disputes: Probate court provides a forum for resolving disputes among heirs, creditors, and other interested parties. These disputes can prolong the process, increase legal costs, and cause emotional strain.
Loss of Control: Without proper estate planning, assets are distributed according to Illinois intestacy laws, which do not always align with the deceased person's specific wishes.

While probate court serves an essential function in estate administration in Illinois, its potential drawbacks lead estate planning attorneys to advocate for proactive planning strategies which often allow clients to avoid probate altogether. By taking these steps and working with experienced legal counsel, individuals can protect their estates and streamline the process for their loved ones, saving them time and money.

If you would like to schedule a free consultation to learn more, or to discuss how an estate plan can benefit you and your family, please call attorney Heather A. McCollum at (847) 705-7555 or email her at hmccollum@lavellelaw.com .

Tim’s Tax News on the Tenth – July 2024

Wed, 10 Jul 2024 14:00:01 GMT

IRS Provides Newlyweds with a Tax Checklist

Recently the IRS announced a Tax Checklist for newlyweds. This was prompted by the IRS recognizing that summer wedding season has arrived. Accordingly, the IRS wanted to expound some guidance to the newlyweds to make their tax filing easier by doing a few things now. A taxpayer's marital status as of December 31 determines their tax filing options for the entire year, but that's not all newlyweds need to know.

Report a Name Change

Report any name changes to the Social Security Administration. The name on a person's tax return must match what’s on file at the SSA. If it does not, it could delay any tax refund. To update information, taxpayers should file Form SS-5, Application for a Social Security Card. It’s available on SSA.gov , by phone at 800-772-1213, or at a local SSA office.

Update Address

Notify the United States Postal Service, employers, and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must complete and submit Form 8822, Change of Address . See page 2 of the form for detailed instructions.

Check Withholding

Newly married couples must give their employers a new Form W-4, Employee's Withholding Certificate , within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the additional Medicare tax . They can use the Tax Withholding Estimator on IRS.gov to check their withholding and for help completing a new Form W-4.

Review Filing Status

Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it's best to figure out the tax both ways to find out which makes the most sense. Taxpayers should remember that if a couple is married as of December 31, the law says they're married for the whole year for tax purposes.

Beware of Scams

All taxpayers should be aware of and avoid tax scams . The IRS will never contact a taxpayer using email, phone calls, social media, or text messages. The first contact generally comes in the mail. To find out if they owe money to the IRS, taxpayers can view their tax account .

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Illinois - Corporate Practice of Medicine

Fri, 28 Jun 2024 16:28:34 GMT

Any medical service provider in Illinois, including many spas, must be physician-owned under the Corporate Practice of Medicine doctrine. In this discussion. Ted McGinn, Managing Partner at Lavelle Law, and Eso Akunne, Associate at Lavelle Law, discuss the law, fee splitting, management services organizations, and other aspects impacting the operation of any medical services facility in the state.

Intricacies of Dealership Law

Thu, 27 Jun 2024 15:14:32 GMT

There are a number of unique legal characteristics to launching and operating a dealership for automobiles or construction, landscaping, and agricultural equipment. Attorney Sarah Reusché recently launched a new Dealership Law practice group at Lavelle Law. She discusses the legal complexities of securing and starting a dealership and takes a look at the unique operating requirements and compliance and reporting needs for dealers.

Podcast Link

The Corporate Practice of Medicine Doctrine

Thu, 27 Jun 2024 14:42:11 GMT

Podcast Link

Banking and Business Monthly – June 2024

Tue, 25 Jun 2024 16:02:22 GMT

SCOTUS Provides Valuation Guidance to Closely Held Corporations for Estate Tax Purposes

On June 6, 2024, the United States Supreme Court unanimously decided Connelly v. United States, No. 23-146 , ruling that a corporation’s contractual obligation to redeem shares at fair market value is not necessarily a liability that reduces a corporation’s value for purposes of the federal estate tax.

Background

Michael and Thomas Connelly were the sole shareholders of Crown C Supply (“Crown”), a building supply corporation. They had an agreement that if either brother died, the surviving brother may buy the deceased's shares. If the surviving brother declined his option, Crown must then redeem the deceased brother’s shares at fair market value. Crown funded its redemption obligation by purchasing $3.5 million of life insurance on each brother.

Michael passed away and Thomas declined his option to purchase Michael’s shares. Michael’s son and Thomas agreed that the value of Michael’s shares was $3 million. The corporation received the life insurance proceeds and redeemed the shares at that price. As the executor of Michael’s estate, Thomas then filed a federal estate tax return reporting the value of Michael’s shares as $3 million. The Internal Revenue Service (IRS) audited the return. During the audit, Thomas obtained a valuation from an outside accounting firm. That firm determined that Crown’s fair market value at Michael’s death was $3.86 million, an amount that excluded the $3 million in insurance proceeds used to redeem Michael’s shares on the theory that their value was offset by the redemption obligation. The IRS disagreed with the valuation, insisting that the corporation’s redemption obligation did not offset the life insurance proceeds, calculating the value of Michael's shares as $5.3 million. Based on this higher valuation, the IRS determined that the estate owed an additional $889,914 in taxes. The estate paid the deficiency under protest and subsequently sued the Government for a refund. The District Court granted summary judgment for the IRS, and the Eighth Circuit Court of Appeals affirmed this ruling. The Supreme Court granted certiorari to resolve this split between the Eighth Circuit and several other courts.

Legal Analysis by The Court

The U.S. Supreme Court held that a corporation’s contractual obligation to redeem shares at fair market value is not necessarily a liability that reduces a corporation’s value for purposes of the federal estate tax. The Court reasoned that a fair market value redemption has no effect on any shareholder’s economic interest, and thus, no hypothetical buyer purchasing Michael’s shares would have treated Crown’s obligation to redeem Michael’s shares at fair market value as a factor that reduced the value of those shares. Although the remaining shareholders have a larger ownership percentage in a less valuable company following the buyback, the value of their holdings stays the same. The Court rejected the argument that the buyback obligation is a liability that offsets the life insurance asset, noting that a stock buyback reduces a company's value and concentrates ownership among fewer shares. The Court concluded that Crown’s promise to redeem Michael’s shares at fair market value did not reduce the value of those shares.

Implications

Connelly has significant implications for our estate and succession planning clients and the valuation of closely held corporations:

The decision confirms that life insurance proceeds intended to fund share redemptions are a corporate asset and should be included in valuations for estate tax purposes.
A corporate redemption obligation in a shareholder agreement does not reduce the value of the decedent’s shares if the redemption is at fair market value.

The Court acknowledged that its decision “will make succession planning more difficult for closely held corporations.” The Court, however, also identified “other options,” such as cross-purchase agreements, that are still available to carry out the same goals as the device employed here but acknowledged that those options pose a drawback of their own. Shareholders of closely held corporations, especially those with potential taxable estates, should review their shareholder agreements and estate plans with their attorneys and advisors and make any necessary changes. We can assist with the review and changes.

For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555. Thanks go to Jacob Rotolo for assistance with this month’s article.

Success Story – Deadbeat Dad Owing Child Support in Excess of $85,000 Held Accountable

Fri, 21 Jun 2024 21:48:33 GMT

After Years of Pursuing Child Support From Ex-Husband, Lavelle Law Helps Client Get Results

Background: The client’s ex-husband moved away and, despite having a child support obligation, he refused to pay. The total owed exceeded $85,000, accruing over a period of 8 years. The client attempted to work with governmental agencies on her own to pursue the child support owed to her, to no avail.

Challenges: Lavelle Law took immediate steps to locate the deadbeat dad and upon confirming his location, filed a petition for contempt against him. We also reached out to the Illinois Department of Healthcare & Family Services seeking their assistance to find and garnish bank accounts, tax refunds, and any other means to obtain and/or compel payment of the child support arrearages. We were persistent and unrelenting.

Result: Once deadbeat dad realized he was going to be held responsible for all arrearages, plus interest and penalties, (nearly $100,000), he was ready to negotiate. The client was in need of funds immediately. To be able to secure her a large amount of the outstanding funds sooner rather than later, we agreed to waive interest and penalties in exchange for a large initial lump sum payment but only on the condition that if deadbeat dad fell behind on any future payment, all interest and penalties would become immediately due. The client received 50% of the arrearages within 30 days, and the rest was scheduled to be paid off over time. We were also successful in the Court granting our request to keep the matter on the “active call” for status on “compliance of payment” to ensure that all future payments would be paid in full within the agreed-upon timeline.

"When I was ready to give up on a very long and messy child support case because I had no fight left in me, Annette Corrigan took my case and fought for me. She listened patiently, asked for information gently and answered my questions clearly. I was in a very emotionally and mentally fragile place after years of struggling in and out of court and Annette never made me feel silly for asking the same questions over and over and never lost her patience when I needed things explained repeatedly. I would trust Annette to represent my own children and I recommend her to anyone needing legal help. The legal expertise, kindness and commitment I received from Annette and Lavelle Law is hard to find, so grateful to have had her on my side and help me get what I deserved. "

Happy Summer Solstice 2024

Thu, 20 Jun 2024 17:42:10 GMT

The wait is over! IT’S SUMMER! As we celebrate the 2024 Summer Solstice and officially usher in summer, we share some amazing places the Lavelle Law Koozie has traveled so far this year. Thanks to our adventurous family and friends who accepted the Lavelle Law Koozie Challenge! Where would you like to go? Happy Summer friends! Cheers!

Department of Labor Issues Final Rule Updating Minimum Monetary Threshold for Overtime Pay under the Fair Labor Standards Act

Tue, 18 Jun 2024 19:10:50 GMT

On April 23, 2024, the Department of Labor (“DOL”) issued a final rule regarding the minimum pay threshold that employees must meet in order to be exempt from being paid overtime. This rule goes into effect on July 1, 2024. The rule increases the standard salary level that defines and limits which salaried workers are entitled to overtime under the Fair Labor Standards Act (“FLSA”).

The rule provides that most salaried workers who earn less than $844 per week will be eligible for overtime pay; conversely, employees salaried (as opposed to paid hourly) at an amount greater than $844 per week may be exempt from overtime. As of January 1, 2025, most salaried workers who make less than $1,128 per week become eligible for overtime pay.

The rule also increases the total annual compensation requirement for highly compensated employees, which are employees who are NOT entitled to overtime pay under the FLSA if certain requirements are met. That threshold will increase from $107,432 per year to $132,964 per year on July 1, and then rise to $151,164 per year on January 1, 2025.

Additionally, there will be an automatic updating of these thresholds every three years. These updates will begin on July 1, 2027.

Employers have various options when responding to these updated thresholds. They can 1) increase the salary of the employee to the new salary level to retain their exempt status; 2) pay an overtime premium of 1.5x the employee’s regular rate of pay for overtime hours worked; 3) reduce or eliminate overtime hours; 4) reduce the amount of pay allocated to an employee’s base salary (as long as the employee still earns the applicable hourly minimum wage) to offset new overtime pay; or 5) a combination of these responses.

Note that certain employees may be exempt from minimum wage and overtime protections of the FLSA if they fall within certain exemptions. Employees must meet all requirements of the exemption tests to be exempt from the coverage of the FLSA overtime rules.

While there may be litigation over these new monetary requirements and their alignment with the FLSA, employers should be aware and prepare for any changes in the paying of overtime on July 1, 2024. Misclassifications can create liability for an employer, including the payment of back wages, unpaid overtime, and further monetary penalties. If you have questions regarding overtime exemptions or need review of your policies to ensure their compliance with federal rules, contact Lance Ziebell at lziebell@lavellelaw.com or MaryAllison Mahacek at mmahacek@lavellelaw.com to set up a consultation.

Tim’s Tax News on the Tenth – June 2024

Mon, 10 Jun 2024 23:10:56 GMT

The IRS Warns Taxpayers of its 2024 Dirty Dozen List of Tax Scams

For over two decades, the IRS has been issuing its yearly list of its perceived prevalent tax scams. The 2024 list has been announced by the IRS and the twelve are listed below.

Bogus tax avoidance strategies include syndicated conservation easements, micro-captive insurance
Fraudulent offshore schemes include Maltese retirement arrangements, digital assets
High-income filers vulnerable to illegal tax schemes; face risk from improper art donation deductions, charitable remainder annuity trusts, monetized installment sales
IRS warns tax pros, businesses to be cautious of ongoing spearphishing attacks to gain sensitive information; warns of surge in "new client" scams
Taking tax advice on social media can be bad news for taxpayers; inaccurate or misleading tax information circulating
IRS urges taxpayers to not fall prey to untrustworthy tax preparers; "ghost preparers" can disappear with taxpayer cash, information
Fake charities exploiting taxpayer generosity
Compromise "mills" that falsely claim their services are necessary to resolve IRS debt
False Fuel Credit Claims
"Helpful" scammers offering to set up an online account
Aggressive ERTC promoters who dupe taxpayers into making questionable Employee Retention Credit claims; risks continue for small businesses; special withdrawal program remains available
Phishing and smishing scams

As part of the Dirty Dozen awareness effort regarding tax schemes and unscrupulous tax return preparers, the IRS urges individuals to report those who promote abusive tax practices and tax preparers who intentionally file incorrect returns.

To report an abusive tax scheme or a tax return preparer, people should use the online Form 14242 or mail or fax a completed Form 14242 and any supporting material to the IRS Lead Development Center in the Office of Promoter Investigations. Mail the material to: Internal Revenue Service Lead Development Center, Stop MS5040, 24000 Avila Road, Laguna Niguel, California 92677 3405.

Taxpayers and tax professionals can also submit this information to the IRS Whistleblower Office, where they may be eligible for a monetary award.

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Can an Employer Enforce a Non-Compete When It Terminates the Employee Without Cause?

Tue, 04 Jun 2024 16:22:00 GMT

The enforceability of non-compete agreements against former employees in Illinois has garnered much attention. In 2022, the Illinois Freedom to Work Act, 820 ILCS 90/1, et seq ., went into effect. The Freedom to Work Act, among other things, prohibits non-compete agreements between an employer and any employee who earns $75,000 or less per year. The Freedom to Work Act also prohibits non-solicitation agreements between an employer and any employee who earns $45,000 or less annually. 820 ILCS 90/7.

The Freedom to Work Act, however, leaves several important questions about the enforceability and limitations of non-compete agreements unanswered. This article addresses one of those questions, specifically: May an employer successfully enforce a non-compete agreement against a former employee if the employee was not terminated "for cause"?

The answer, as frustrating as it is for employers and employees alike, is "it depends." In addition, it depends on the language of the non-compete agreement and a host of other case-specific facts. In the absence of a bright line rule, employers and employees would do well to peer through the lens that Illinois courts use when analyzing such matters. In the process, employers and employees can gain some valuable insights.

Background

When it comes to non-compete agreements, Illinois courts start their analysis with the general proposition that non-compete restrictions deserve "close scrutiny" because courts favor fair competition and disfavor restraints on trade and competition. MBL (USA) Corp. v. Diekman , 112 Ill. App. 3d 229, 237 (1st Dist. 1983). Given the courts' preference for competition over restraint, any ambiguities contained in the non-compete agreement are resolved against the restriction. Lempa v. Finkel , 278 Ill. App. 3d 417, 427-28 (2nd Dist. 1996).

Courts then analyze the specific language of the non-compete and the facts related to the old and new employment. From a high level, Illinois courts ask if the non-compete is “reasonable and necessary to protect a legitimate business interest of the employer.” Cambridge Eng'g, Inc. v. Mercury Partners , 378 Ill. App. 3d 437, 447 (1st 2007). In answering that question, courts take into consideration a number of factors, including the following:

The hardship caused to the employee,
The effect upon the general public, and
The scope (in duration, geography, and specific activity) of the restrictions. Id .

It should be apparent that each of these factors is very fact-specific. As a result, it is very difficult for courts to craft a bright line rule. Regardless, employers bear the burden of demonstrating that the full extent of the non-compete is necessary for protecting its interests.

Bishop

With that background in mind, we turn to an important case that addresses our specific question.

In Bishop v. Lakeland Animal Hospital , a veterinary doctor was fired from his place of employment and brought suit seeking to have the non-compete clause within his contract declared unenforceable. Bishop v. Lakeland Animal Hosp., P.C. , 268 Ill. App. 3d 114, 115 (2nd Dist. 1994).

The Bishop court held that because the veterinarian was fired without cause, the non-compete clause was unenforceable. Id . The court reasoned that in order for a non-compete clause to be enforceable, a company must show “(1) an employee was terminated for cause or by their own accord; (2) the non-compete clause must be reasonable; and (3) the clause must have as its purpose the protection of a business interest on the part of the employer.” Id at. 118. This further means that a non-compete clause will not be enforceable if it is only used to stifle completion. Id .

On its face, the Bishop opinion appears to establish a bright line rule, viz. non-compete agreements are only enforceable against a former employee who is either terminated for cause or voluntarily resigns. Unfortunately, what appears to be a bright line rule has been narrowed by a subsequent opinion.

After Bishop

A separate Illinois appellate court, the Fourth District, later construed the Bishop case narrowly. In Am. Pest Control, Inc. v. Rakers , 2012 WL 7050434 ¶ 15 (4th Dist. 2012), the Fourth District argued that the Bishop holding did not create a bright line rule and the outcome was determined in favor of the employee because the Bishop court found some ambiguity in the term "for any cause". That ambiguity was resolved in favor of the employee.

It should be noted that the Raker's case is an unpublished opinion, which does have some significance to this analysis. Regardless, the answer to the subject question will remain murky until the Illinois Supreme Court or legislature squarely addresses it.

Employers and Employees Proceed with Caution

Owning and controlling a business is challenging on the best of days. Having your employment terminated and wondering if a new job prospect will force you into litigation with your former employer is a very scary proposition.

This work merely scratches the surface of issues related to non-compete agreements in Illinois. Hopefully, it provides a helpful framework to analyze the issue for both the employer and employee.

If you would like more information about non-compete agreements and how to protect yourself or your business, please contact attorney Brian Massimino at (847) 736-1262 or bmassimino@lavellelaw.com .

Historic Changes in Home Buying and Commission Structure

Fri, 31 May 2024 20:59:45 GMT

New legislation is changing how realtor commission is paid in a home sale and laws have been introduced in several states in response to various lawsuits regarding transparency in real estate broker commissions. Lavelle Law Shareholder Kelly Anderson and Realtor Cathy Betourne discuss the implications for buyers, sellers, realtors, and the closing process.

Department of Labor Issues Rule on Independent Contractor versus Employee Classification

Fri, 31 May 2024 18:25:05 GMT

The US Department of Labor (“DOL”) has updated its regulations concerning the classifications of Independent Contractors versus employees. The updated rule went into effect March 11, 2024.

This rule rescinds the prior 2021 Independent Contractor rule (“IC rule”) because, according to the DOL, it departed from prior case law in applying the well-known multifactor economic reality test. Further, the DOL reported that the IC rule did not align with the Fair Labor Standard Act’s test and purpose. This rule had “core factors” that were weighed more heavily in determining the status of workers.

The new rule adopts the “economic reality test” for federal wage and hour law issues. Primarily, this test looks at whether, as a matter of economic reality, the workers are in business for themselves. Further, it is a “totality of the circumstances” approach, meaning that each factor holds the same amount of weight when determining worker classification, and should be reviewed globally as opposed to focusing in on or two factors. The factors are:

Opportunity for profit or loss depending on managerial skill;
Investments by the worker and potential employer;
Degree of permanence of work relationship;
Nature and degree of control;
Extent to which work performed is an integral part of employer’s business; and
Skill and initiative.

The DOL clarified that additional factors may be considered if they are relevant to the overarching question of economic dependence.

DOL enacted this guidance to provide direction to employers in determining the economic dependence of workers, and to workers in determining if they are correctly classified. Further, DOL stated that they recognize the importance of independent contractors in our economy, and find it to be a primary objective to provide a consistent approach to businesses and workers who employ and are independent contractors.

For more information, please see the resource page from the Department of Labor. Misclassification of Employees as Independent Contractors Under the Fair Labor Standards Act | U.S. Department of Labor (dol.gov)

Employers who hire independent contractors must be aware of this rule when deciding wages, hours, and benefits for these types of workers. Misclassifications can create liability for an employer, including the payment of lost wages and back pay, PTO, benefits, and/or unpaid overtime. If you have questions regarding the classifications of your workers or need review of your policies to ensure their compliance with federal rules, contact Lance Ziebell at lziebell@lavellelaw.com or MaryAllison Mahacek at mmahacek@lavellelaw.com to set up a consultation.

Historic Changes in Home Buying

Fri, 31 May 2024 16:45:14 GMT

Laws have been introduced in a number of states in response to various lawsuits regarding transparency in real estate broker commissions. Lavelle Law Shareholder Kelly Anderson and Realtor Cathy Betourne discuss the implications for buyers, sellers, realtors, and on the closing process.

Podcast Link

Legal Victory for Auto Dealers Reaffirms the Value of Illinois Warranty Reimbursement Law

Thu, 23 May 2024 15:25:45 GMT

The current Warranty Law in Illinois became effective on January 1, 2022, by Public Act 102-232 , and is now codified as 815 ILCS 710/6. The purpose of the Warranty Law is to ensure that dealers are compensated equitably, aligning warranty reimbursement, recall, and stop-sale repairs directly with the rates charged to retail customers. The Warranty Law also prohibits manufacturers from imposing cost recovery surcharges on dealers who choose to be reimbursed at their retail rate.

Volkswagen Grp. of Am., Inc. v. Giannoulias

On May 6, 2024, the Northern District of Illinois dismissed a lawsuit filed by Volkswagen: Volkswagen Grp. of Am., Inc. v. Giannoulias , No. 22-cv-7045 . (N.D. Ill. May 6, 2024). The suit challenged the constitutionality of the 2022 changes to the Warranty Law, asserting violations of the U.S. Constitution, including Due Process, Equal Protection, First Amendment, and the Commerce Clause.

The court rejected Volkswagen’s Due Process claim based in part on a finding that the Illinois legislature has a legitimate state interest related to ensuring that dealers are fairly compensated for warranty repairs.

The court disagreed with Volkswagen’s argument that the Warranty Law discriminates against traditional manufacturers by not imposing similar requirements on manufacturers that do not use independent dealers. The court held that if direct sale manufacturers chose to adopt dealer networks, the Warranty Law would apply to them in the same way it applies to traditional manufacturers such as Volkswagen.

Additionally, the court disagreed with Volkswagen’s argument that the Warranty Law infringes on its free speech rights and concluded that the Warranty Law did not prevent Volkswagen from raising prices or communicating the reasons for such increases.

Lastly, the court disposed of Volkswagen’s Commerce Clause arguments by clarifying that the Warranty Law does not prohibit Volkswagen from recovering increased warranty costs through price adjustments.

Dealer Rights Under The Warranty Law

The decisive ruling of Volkswagen Grp. of Am., Inc. v. Giannoulias not only affirms the strength of the Warranty Law but also underscores its value to Illinois dealers.

The Warranty Law empowers dealers to claim reimbursements that accurately reflect the value of their services. Under the Warranty Law, a manufacturer’s time allowance must be at least equal to the time allowance for retail customers for the same repair work. If no extended warranty time guide is agreed upon, the time allowance must equal the manufacturer’s time guide multiplied by 1.5. The Warranty Law also requires manufacturers to compensate dealers for diagnostic time, including time spent on calls and on-hold with technical assistance centers.

Additionally, the Warranty Law allows dealers to charge retail rates for parts used in warranty, recall, and stop-sale repairs. Reimbursement for parts is calculated by multiplying the dealer’s purchase price by the sum of 1 plus the dealer’s average percentage markup for customer pay repairs. Dealers are further entitled to receive a 30% markup on parts for entire engine and transmission assemblies.

Dealers may submit a request to a manufacturer for an increase in warranty reimbursement once each year. A manufacturer must approve or disapprove warranty reimbursement claims within 30 days. Unchallenged claims within this period are automatically considered approved.

Lavelle Law can assist dealers in submitting warranty reimbursement claims and enforcing their right to greater compensation for labor and parts used in warranty repairs. For further inquiries or questions, please contact attorney Sarah Reusche at sreusche@lavellelaw.com or (847) 705-7555.

Success Story – Over $100k in Student Debt Discharged

Tue, 14 May 2024 21:26:02 GMT

Background:

Lavelle Law represented an individual who had accumulated a lot of credit card debt in a Chapter 7 Bankruptcy. The individual also had sizeable government student loans that we filed an adversary lawsuit against the U.S. Dept. of Education to challenge their discargeability.

Challenges:

There is a presumption in the Bankruptcy Code that student loans are not discharged in bankruptcy. The individual filing bankruptcy can overcome this presumption by successfully prosecuting a lawsuit to have them determined to be discharged.

Result:

The client’s unique facts allowed us to overcome the presumption that his $100k student loans could not be discharged.

Estate Planning: An Important Next Step for “New Moms” as well as for “Experienced Moms” with Young Children

Sun, 12 May 2024 20:18:04 GMT

Happy Mother’s Day to all the amazing moms in our lives who tirelessly and selfishly care for us, guide us, support us through hard times, and celebrate our successes. I recently saw this very appropriate definition of “mother” on social media:

Mother

[muh th –er] noun

One person who does the work of twenty, for free.

Person who always believes in you.

Tim’s Tax News on the Tenth – May 2024

Fri, 10 May 2024 15:50:30 GMT

When a Taxpayer Should File an Amended Federal Tax Return

When a taxpayer realizes that their federal tax return has a math error, missing income, or other mistake, they should file an amended tax return. If you need to amend your Form 1040, 1040-SR, 1040-NR, or 1040-SS/PR for the current or two prior tax periods, you can amend these forms electronically using available tax software products. Any amended Form 1040, 1040-SR, 1040-NR or 1040-SS/PR returns older than the current or prior two tax periods cannot be amended electronically. Amended returns for those earlier tax years must be filed by paper. Also, if the originally filed return was via paper during the current processing year, then the amended return must also be filed on paper.

A taxpayer must file an amended return if they need to correct:

• Filing status

• Income

• Deductions

• Credits

• Tax liability

Math Errors and Missing Schedules

Taxpayers usually do not need to file an amended return to fix a math error or if they forgot to attach a form or schedule. The IRS will correct the math error while processing the tax return and notify the taxpayer by mail. The agency will send a letter to request any missing forms or schedules.

How to File an Amended Tax Return

Taxpayers should use Form 1040-X, Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040-series return or to change amounts previously adjusted by the IRS. Taxpayers can file Form 1040-X electronically for their 2020, 2021, 2022 and 2023 Forms 1040 or 1040-SR. Additionally, they can electronically amend Form 1040-NR and Form 1040-SS/PR for tax years 2021, 2022, and 2023.

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Banking and Business Monthly – May 2024

Fri, 03 May 2024 17:10:20 GMT

Understanding the FTC’s Nationwide Ban on Noncompete Agreements

On April 23, 2024, the Federal Trade Commission (“FTC”), in a 3-2 vote, issued its final Non-Compete Clause Rule (“ Rule ”) which prohibits noncompete clauses in agreements between employers and their workers. This highly anticipated Rule follows a substantially similar proposed rule from the FTC released on January 19, 2023. The Rule will not become effective until 120 days after publication in the Federal Register, and covered employers will be required to comply with the Rule by that effective date, which could come as early as August of this year. By the FTC’s estimate, this ban could affect up to one in five American workers.

The Rule broadly defines “noncompete clause” to include any term or condition of employment that “prohibits,” “penalizes” or “functions to prevent” a worker from seeking or accepting work in the U.S. from a different person where such work would begin after the conclusion of employment that includes the term or condition, or operating a business in the U.S. after the conclusion of employment that included the term or condition. Under the Rule, “worker” is defined broadly to include any employee regardless of whether they are paid or unpaid, irrespective of title or status, including “independent contractor, extern, intern, volunteer, apprentice, or sole proprietor who provides a service to a person.” Some key features of the Rule include:

Prohibition of new noncompete clauses between employers and workers on a go-forward basis.

Rendering unenforceable existing noncompete clauses with workers other than pre-existing noncompetes for workers qualifying as “senior executives.” - The Rule defines “senior executive” as workers earning total annual compensation of at least $151,164 in the preceding year who are in a “policy-making position.” Employees in policy-making positions are defined as an entity’s president, CEO, or equivalent, and any other officer of a business who has the authority to make policy decisions that control significant aspects of the business.

Requiring employers to provide notice to employees subject to prohibited noncompetes that the clauses will not be enforced. Notices should be delivered prior to the effective date and should signal to workers that the employer no longer plans to enforce their noncompete against the worker in the future. The FTC provides model language within the Rule for employers to use as notice to workers that fulfills the notice requirement.

Establishing narrow exceptions for worker noncompete clauses entered into as part of a bona fide sale of a business entity’s equity or substantially all of its assets, as well as for existing causes of action under worker noncompetes that accrued before the issuance of the Rule.

Effect of the Ban on Trade Secret Protections

In areas where noncompete agreements have been enforceable, they have provided some level of deterrent to trade secret misappropriation, and without them, employers may be faced with an increased risk that trade secrets could find their way into the hands of competitors. Companies should begin taking steps to mitigate the heightened risks that will result from a ban on such agreements. For example, companies should consider whether agreements can be drafted to provide some protection against flagrant theft and disclosure of trade secrets.

In addition, companies should begin auditing and diligently practicing good hygiene around trade secret protection through employment policies and written agreements and acknowledgments regarding the confidentiality of company information and procedures governing access to trade secrets, among other best practices. Companies should also routinely confirm their employees’ understanding of these policies and, where possible, obtain contractual agreements from departing employees that they will return all confidential and trade secret information to the company upon their exit.

Enforcement

To enforce violations of the Rule, the FTC could potentially commence a proceeding to seek an injunction under Section 13(b) of the Federal Trade Commission Act (“FTC Act”). Accordingly, the FTC could seek to enjoin a defendant in federal court when the defendant, “is violating, or is about to violate” Section 5 and when the injunction is in the public’s interest. In this case, the FTC could seek an injunction forcing companies to follow the Rule, including rescinding existing noncompete agreements and informing current and former workers that they have been canceled.

By contrast, the FTC may be unable to seek monetary relief for violations of this Rule. Section 19 of the FTC Act enables the FTC to seek monetary relief for violations of consumer protection rules on unfair or deceptive practices, but it is silent regarding remedies for unfair methods of competition.

Future Outlook

While employers should prepare to comply with the Rule within a few months, the Rule faces legal challenges that could delay or impact its implementation or result in its invalidation. On April 24, 2024, for example, in Texas federal court, business groups led by the U.S. Chamber of Commerce sued the FTC to block its non-compete ban, arguing that the agency lacks the authority to issue rules that regulate unfair methods of competition. Chamber of Commerce for United States v. FTC, et al. , No. 6:24-cv-00148, 2024 U.S. Dist. (E.D. Tex. Apr. 24, 2024) . The complaint alleges that while the FTC Act grants the FTC the ability to challenge particular practices, it does not allow the agency to promulgate unfair methods of competition in rulemaking. The suit requests that the court vacate and permanently enjoin the non-compete ban, among other forms of relief. Such challenges could further delay—or bar altogether—enforcement of the Rule.

For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555. Thanks go to Nathan Toy for assistance with this month’s article.

Business Ownership and Divorce

Thu, 02 May 2024 21:36:46 GMT

Divorces that involve small and medium businesses have unique concerns and considerations for both parties to the divorce process.

In the event of a divorce, Illinois law provides that any asset, including any interest acquired by a party during the marriage, is deemed to be marital property, that is subject to equitable division between the parties by the Court. Marital property must be equitably divided between the parties after considering a number of factors, including but not limited to the following: the value of marital property assigned to each of the spouses during the divorce; the duration of the marriage; the economic circumstances of the parties; any premarital agreements regarding distribution of assets in the event of a divorce; the age, health and occupation of each party; and whether the award of property is in lieu of maintenance (alimony) to one of the parties. 750 ILCS 5/503.

When determining how to distribute the marital assets between parties to a divorce, the division of an interest in a small or medium business owned by one or both of the parties is more complex and requires a careful examination of the value of the business or business interests. The Court must determine the value of the business interest in order to determine how to equitably divide all marital assets in which the parties have an interest. The Court will regularly rely on the valuation reports of the parties' experts regarding the value of the business. The business valuation expert will utilize a number of different methods in determining the value of a business. The professional appraiser will examine and assess the value of the business and provide expert testimony and reports to the parties and the Court. The business appraiser will consider a number of factors when determining a business value including the assets, equipment, and inventory of the business; any real estate ownership of the business; the income and cash flow of the business; the debts and liabilities of the business, and whether the business has any enterprise goodwill. The choice of a skilled and experienced business appraiser and experienced attorney is critical in any divorce case involving a business.

The income generated by a business or business interest can also have implications for determining the amount of child support and maintenance that may be awarded to the parties in the divorce. Issues can also arise when the business or business interest is jointly owned by the parties, or if the ownership interest is shared by third parties. The proper valuation of these interests is critical to the Court’s determination of the division of marital assets. The Court may award the entire business interest to one party and offset that value by awarding other marital assets to the other party. The Court may also require a business owner to buy out the other parties’ interest, through a buyout agreement, or in some cases, order the business or business interest to be sold.

It is also important to understand the nature of the business interest involved. Sole Proprietorships, Partnerships, Limited Liability Corporations, and Corporations, each have their own legal and financial concerns and complexities. Understanding these complexities is crucial in the determination of the value of a business and the equitable division of marital assets between the parties to a divorce.

If you are a party to a divorce in which a business or business interest is involved, or have any questions or concerns regarding divorce or any family law related issues, please reach out to the attorneys at Lavelle Law at 847-705-7555, or email attorney Joseph Olszowka at jolszowka@lavellelaw.com to schedule a free consultation to discuss your legal options.

BIPA Compliance: A Guide for Vehicle Dealerships to Mitigate Litigation Risks

Tue, 30 Apr 2024 21:48:36 GMT

In this era of technological innovation, the adoption of biometric data for various applications in the workplace has surged. From fingerprint scans for timekeeping to facial recognition for access control, biometric technology has become a key aspect of modern business operations. However, this integration has also raised privacy and security concerns, leading to legislative responses aimed at protecting individuals' biometric information. At the forefront of this is the Illinois Biometric Information Privacy Act (“BIPA”).

Vehicle dealerships particularly have recently found themselves needing to navigate the complex terrain of adhering to the BIPA’s stringent requirements to avoid being targeted through lawsuits. There has been a recent noticeable uptick in class action lawsuits under the BIPA, serving as a critical wake-up call for the automotive retail industry, highlighting the need for dealerships to review and enhance their practices if they are using biometric technology.

Class Action Suits Under the BIPA

BIPA class action lawsuits have targeted employers who use biometric systems to track workers’ paid hours or to control access to secured or sensitive areas in a workplace. An example of this can be seen in this class action lawsuit filed in September of 2023, in which a Chicago area car dealership was accused of violating the BIPA by requiring workers to access a secure vehicle key box at the dealership. Along with granting the employee access to a key, the system created audit trails to identify the employees, and the employees’ biometric information was enrolled and retained in the dealership’s database and cloud system.

The suit noted that this could expose employees to serious and irreversible privacy risks due to the potential danger of the database being breached, and the employees having no means by which to prevent identity theft and unauthorized tracking. The Plaintiffs also allege that the Defendants violated the BIPA by not properly informing employees of the collection and storage, not providing a publicly available retention schedule and guidelines for the destruction of the fingerprint information, and not obtaining a written release from the employees authorizing the collection and storage of their biometric information. Another example of biometric system usage that could result in such a lawsuit is collecting and storing employee fingerprints for timekeeping purposes.

How Dealers Can Protect Themselves

The most effective way for a vehicle dealership to protect themselves is to ensure compliance by being aware of the following issues:

What disclosures are being made? The BIPA requires a written notice explaining that biometric information will be collected, the purpose for doing so, and the length of time the information will be retained. Creating a clear company policy concerning the collection, use, retention, and security of biometric information will, if done properly and provided to employees, satisfy notice requirements and may also help ease some concerns from employees.

Is a written release being obtained? In addition to providing notice, a “written release” must be obtained prior to collecting and storing an individual’s biometric information to serve as written consent.

Is there a written policy for retention and deletion? If a company collects or stores biometric data, then it must have a written policy for handling such data. This written policy must include a retention schedule and guidelines for permanently destroying the data when required.

Enforcement

The BIPA carries a private right of action for harmed individuals and includes statutory damages of $1,000 per negligent violation and $5,000 per intentional violation, or actual damages, whichever is greater. Additionally, successful plaintiffs may receive reasonable attorney’s fees and costs, and courts can issue an injunction to order the offending party to change their practices to comply with the Act’s requirements.

Given these harsh penalties and the risk of non-compliance, dealers should contact legal counsel for advice on how to best navigate the BIPA. For further inquiries or questions, please contact attorney Sarah Reusche at sreusche@lavellelaw.com or (847) 705-7555.

The Not So Simple Truth About Entering Into a Commercial Lease Agreement

Mon, 29 Apr 2024 23:26:21 GMT

A Lavelle Law Breakfast Briefs Presentation

June 12, 2024

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

Just Want a Simple Lease Agreement? Think again. Many people and businesses think that the simpler a lease agreement is, the easier their life will be. The truth is, if you are handed a 3-page commercial lease, unfortunately, it is likely to be rife with pitfalls and does not fully protect you. Things can go wrong – and you don’t want to be trapped in a 10-year lease with no way out. Navigating and negotiating the intricacies of a commercial lease and all its legal terms can present many challenges, especially in Illinois’ ever-changing market. It is imperative, as a tenant or landlord, to gain a thorough understanding of these complexities before attempting to negotiate your own lease. Having this foundation will facilitate a more amicable and mutually agreeable leasing relationship, which is essential for any business to be successful in the current business environment.

Join us for this seminar as Lavelle Law attorneys Kelly Anderson and Chance Badertscher will unpack the complexities of Illinois commercial leases in order to prepare you for strong leasing relationships.

Doors will open at 7:45 for a complimentary continental breakfast and the presentation will begin at 8:00. Registration is required as seating is limited. No walk-ins.

MEET THE PANEL

Kelly Anderson is a shareholder of Lavelle Law who concentrates her practice in the area of real estate, both commercial and residential. Kelly provides her clients with the knowledge, education, and guidance needed to negotiate and protect their interests in whatever real estate transaction they are entering.

Chance Badertscher is an experienced associate attorney in Lavelle Law’s real estate practice group, having worked with individuals, investor clients, and businesses in their real estate pursuits. Chance provides his clients with his expertise, support, advice, and explanation of the risks involved in their real estate transactions.

Success Story – Emergency Estate Tax Savings

Tue, 16 Apr 2024 23:01:00 GMT

Background: Lavelle Law represented a client who owned a business and other complex assets in the estate planning process by preparing a full set of estate planning documents to mitigate estate tax.

Challenges: The client became unexpectedly and critically ill before the estate planning documents could be finalized and signed. Without the estate planning documents in place, the client’s estate would have been subject to significant estate taxes, however, the client lacked the mental capacity to sign them, due to illness.

Result: Our team worked very quickly (in a matter of just a few days) to establish temporary guardianship of the client, and – most importantly – successfully argued for the judge to authorize the guardian to execute and finalize the estate plan documents on the client’s behalf. Finalizing the estate planning documents in advance of the client’s death saved the estate and the client’s family nearly $500,000 in estate taxes.

Legal Considerations for Owning and Operating a Medical Spa in Illinois

Fri, 12 Apr 2024 21:54:45 GMT

Businesses classified as medical spas have a variety of special considerations that must be adhered to in the state of Illinois. In this video, Lavelle Law attorney Eso Akunne discusses critical issues that must be met to operate with state laws. If you are interested in getting involved in this rapidly growing industry be sure to watch this video. Contact Eso at 847-705-7555 or eakunne@lavellelaw.com .

Tim’s Tax News on the Tenth – April 2024

Wed, 10 Apr 2024 17:13:03 GMT

Tax Year 2020 Time to Claim a Refund is About to Expire on May 17, 2024 Deadline, Then $1 Billion in Refunds Will Be Lost by Taxpayers

The IRS recently announced that almost 940,000 people across the nation have unclaimed refunds for tax year 2020 but face a May 17 deadline to submit their tax returns. The IRS estimates more than $1 billion in refunds remain unclaimed because people have not filed their 2020 tax returns yet. The average median refund is $932 for 2020. The IRS estimates that about 36,200 Illinois taxpayers may lose $40,608,000 in potential refunds.

“There’s money remaining on the table for hundreds of thousands of people who haven’t filed 2020 tax returns,” said IRS Commissioner Danny Werfel. “We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds. There’s a May 17 deadline to file these returns so taxpayers should start soon to make sure they don’t miss out.”

Under the law, taxpayers usually have three years to file and claim their tax refunds. If they do not file within three years, the money becomes the property of the U.S. Treasury.

However, for 2020 tax returns, people had a little more time to file to claim their refunds. Typically, the normal filing deadline falls around an April 15 tax deadline, which is the case for 2023 tax returns. But the three-year window for 2020 unfiled returns was postponed to May 17, 2024, due to the COVID-19 pandemic emergency.

By missing out on filing a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2020. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2020, the EITC was worth as much as $6,660 for taxpayers with qualifying children.

The IRS reminds taxpayers seeking a 2020 tax refund that their funds may be held if they have not filed tax returns for 2021 and 2022. In addition, any refund amount for 2020 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past-due federal debts, such as student loans.

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College of Law names 57 employers to 2023-2024 Employer Honor Roll

Tue, 09 Apr 2024 19:18:11 GMT

Full article from the Illinois College of Law News: https://blogs.illinois.edu/view/7000/233345519

Banking and Business Monthly – April 2024

Tue, 09 Apr 2024 16:48:55 GMT

Delaware Chancery Court Nullifies Common Stockholder Agreement Terms

In a significant ruling by the Delaware Court of Chancery, specific terms within a stockholder agreement were invalidated. Presided over by Vice Chancellor J. Travis Laster, the case of West Palm Beach Firefighters’ Pension Fund v. Moelis & Co. , No. 2023-0309-JTL (Del. Ch. Feb. 23, 2024) , scrutinized the limitations imposed on the board of directors’ authority by a stockholder agreement under the Delaware General Corporation Law (“DGCL”). This decision challenges the conventional structuring of stockholder agreements involving a controlling stockholder.

Moelis & Company, an internationally recognized investment bank, transitioned from a private to a public entity in 2014. Before its IPO, a stockholder agreement was reached between the company’s founder, Ken Moelis, and three affiliate entities, granting substantial rights and control over the company’s board of directors. Among the rights were comprehensive pre-approval rights spanning 18 distinct categories of board actions, including incurring certain debt, issuing securities, entering into new lines of business and certain contracts, hiring or firing officers, and issuing dividends (collectively, the “Pre-Approval Requirements”), and control over the board’s composition and committee structure.

The Delaware Court of Chancery’s decision to grant partial summary judgment in favor of the plaintiff invalidated several key components of the stockholder agreement. The court found that these components contravened Sections 141(a) and 141(c) of the DGCL, which safeguard the board’s authority to govern and manage the corporation’s affairs without undue interference. The court’s judgment zeroed in on those terms that effectively reallocated decision-making powers from the collective board to an individual, thereby diminishing the board’s inherent governance capabilities.

The court applied a two-pronged analysis aimed at discerning the nature of the contested terms. The first prong required the court to determine whether the stockholder agreement’s terms were part of an internal governance arrangement rather than an external commercial contract. Because this prong was satisfied, the court then examined the second prong, applying the Abercrombie test to gauge the extent of encroachment on directors’ managerial discretion and to invalidate terms that substantially limit directors’ judgment on management matters or restrict their decision-making. The analysis revealed that the Pre-Approval Requirements improperly delegated board authority and constrained directors’ independent judgment. Similarly, the agreement’s stipulations on board and committee composition were found to unlawfully restrict the board’s discretion, thus breaching the DGCL’s statutory mandates.

However, the court did uphold the validity of three of the board composition provisions, (1) the designation right, allowing Mr. Moelis to designate a certain number of directors for election based on his percentage of voting power (subject to certain qualifications and limitations); (2) the nomination requirement, requiring the Board to nominate Mr. Moelis’ designees for election as directors; and (3) the efforts requirement, requiring the Company to use reasonable efforts to cause Mr. Moelis’ designees to be elected and continue to serve as directors. The court held these provisions did not violate the DGCL because they only allowed Mr. Moelis to identify and facilitate director candidates for election, but did not bind the Board to a particular course of action.

The implications of this ruling extend beyond Moelis & Company, signaling a significant shift in the corporate governance of Delaware corporations. The decision underscores the critical importance of constructing stockholder agreements that respect the statutory authority of the board of directors. Delaware corporations are urged to review their governance documents, especially those pertaining to board authority and stockholder rights, to ensure compliance with the DGCL.

This verdict also prompts a broader reflection on corporate governance practices, encouraging businesses to explore alternative strategies for aligning interests between boards and stockholders. As suggested by the court, moving certain terms from stockholder agreements directly into the company’s certificate of incorporation may offer a legally sound avenue for achieving the objectives traditionally sought through stockholder agreements, because Section 141(a) of the DGCL expressly allows for charter-based limits on board authority.

In sum, the Delaware Court of Chancery nullified many stockholder agreement terms previously thought to be “market” or common. This case highlights the necessity for companies to stay abreast of legal developments and to proactively adapt their corporate governance structures in response to evolving legal standards. Delaware corporations are advised to seek knowledgeable legal counsel to review their corporate governance documents and determine whether they remain enforceable. For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555. Thanks go to Nathan Toy for his assistance with this month’s article.

Considerations for Starting a Medical Spa in Illinois

Mon, 25 Mar 2024 21:27:49 GMT

Businesses classified as medical spas have a variety of special considerations that must be adhered to in the state of Illinois. In this discussion, Lavelle Law attorney Eso Akunne discusses critical issues that must be met to operate with state laws. If you are interested in getting involved in this rapidly growing industry be sure to listen to this conversation.

Podcast Link

Historic Changes in Home Buying and Selling!

Wed, 20 Mar 2024 23:31:02 GMT

Homebuyers and sellers, rejoice? A settlement reached out of Missouri last week is poised to upend a longstanding, expensive norm in residential real estate: the dreaded 6 percent sales commission.

In the majority of real estate transactions across the United States, both the seller and buyer enlist representation from agents. For many years, a customary practice has governed the payment arrangement for these agents: a commission ranging from 5 to 6 percent of the home's sale price, typically borne by the seller and then divided between the two agents involved.

No longer! After a protracted legal battle initiated by a coalition of home sellers in Missouri, adjustments are coming to the compensation structure for realtors representing sellers and buyers, overseen by the influential National Association of Realtors, which has historically regulated the sale of U.S. homes. Additionally, it will alter the party responsible for footing the bill.

The settlement could dramatically drive down homebuyers’ costs. Should the settlement receive approval from a federal court, the traditional 6% commission standard will be eliminated. Sellers would be relieved of the obligation to present a compensation offer to potential buyers and their agents, a practice critics argue has incentivized brokers to steer clients towards pricier properties.

Another proposed regulation entails prospective homebuyers entering into a formal agreement with a broker prior to engaging their services—a requirement that could result in some homebuyers opting out of utilizing brokers altogether.

The effects are going to be potentially earth-shattering for the entire real estate sector. Housingwire, an outlet keyed in our industry news, had these predictions as to the cascading effects:

Loan officers and mortgage executives expect home sellers and homebuyers to negotiate more aggressively on commission paid to buyer agents, potentially bringing costs down. At this early stage, it’s unclear how such commissions would be paid since buyers could pay their agents out of their pockets or negotiate commissions as a seller concession in the closing costs.

Meanwhile, trade groups representing lenders believe that more details on the settlement are needed to understand its coming impact on the housing market. However, they already worry about some groups of considered vulnerable borrowers who could not pay for the buyers’ agent commission due to affordability challenges.

While potentially a source of exciting savings for buyers and sellers, the settlement will completely upend the role of the real estate agent.

For questions about this and other real estate issues or any legal needs, Lavelle Law offers free consultations. Please contact Attorney Kelly Anderson at (847) 241-1786 or kanderson@lavellelaw.com and we can set up your appointment!

Success Story – Enforcement of an Oral Settlement Agreement

Fri, 15 Mar 2024 21:57:18 GMT

Background:

Lavelle Law represented a commercial lessee in a $6MM federal court foreclosure.

Challenges:

After we believed that the parties settled this lawsuit via various email exchanges with opposing counsel containing all material settlement terms, the opposing party attempted to renege on the settlement resulting in Lavelle seeking an Order from federal enforcing the settlement terms in the email exchanges.

Result:

Lavelle won the Motion to Enforce Settlement Agreement.

Banking and Business Monthly – March 2024

Tue, 12 Mar 2024 21:57:30 GMT

The CFPB’s New Rule Regulating Credit Card Late Fees

The Consumer Financial Protection Bureau (“CFPB”) announced a regulatory amendment on March 5, 2024, targeting credit card late fees, a significant move poised to alter the financial landscape for both consumers and credit card issuers. Under this new rule, the maximum allowable late fee chargeable by large credit card issuers is significantly reduced to $8. This decision follows a proposal released in March 2023 and will take effect 60 days after publication in the Federal Register.

Who Does this Rule Apply to?

The rule differentiates between credit card issuers based on the size of their account holdings, specifically targeting large issuers while providing exemptions for smaller issuers. Entities with one million or more open accounts are the primary subjects of the new regulations. The CFFB estimates this group includes the largest 30 to 35 credit card issuers, which accounts for more than 95% of the credit card market’s total outstanding balances.

In contrast, issuers with fewer than one million open accounts are not subject to the $8 cap. The CFPB has indicated that applying the rule to these smaller entities would impose a disproportionate compliance burden. Smaller card issuers may still charge a higher safe harbor threshold for credit card late fees and automatically increase the safe harbor dollar amount based on the Consumer Price Index.

Key Provisions & Requirements

Reduction of Safe Harbor Late Fees: The rule substantially reduces the safe harbor late fee from the existing amounts of up to $30 for the first violation and $41 for subsequent violations within six billing cycles. The new amount is $8 for late payments, applicable to all subsequent late payment violations occurring within six months of the initial violation.

Requirement for Cost Analysis: For larger card issuers wishing to charge late fees above the $8 threshold, the rule mandates a rigorous cost analysis to demonstrate that such fees are necessary to cover the actual costs incurred from late payments. The rule clarifies that costs related to post-charge-off collections cannot be included in this analysis.

Inflation Adjustment Limitations: The rule modifies the approach to annual inflation adjustments for late fee safe harbor amounts. Unlike previous practices that allowed for automatic annual adjustments based on inflation, the CFPB will now monitor the market and make adjustments to the safe harbor amount as deemed necessary.

Rate and Fee Increases and Management Tools: The rule also acknowledges that issuers can deter late payments and manage associated risks through other means, such as increasing interest rates, raising annual and monthly fees, and adjusting credit lines. However, the rule stipulates that larger card issuers considering adjustments to their APRs must conduct a rate reevaluation under Section 1026.59 of Regulation Z.

Charges Up to Amount of Required Minimum Payment: The rule maintains the provision that allows card issuers to charge late fees up to the full amount of the required minimum payment due, provided such fees comply with the cost-analysis requirements established by Regulation Z.

Exclusion of Courtesy Period: The CFPB considered including a 15-day courtesy period requirement before a late fee could be assessed. However, the final rule did not implement any courtesy period for late fees. The CFPB indicated the potential benefits were outweighed by the burden it could cause regarding customer confusion.

What’s Next for Large Credit Card Issuers?

Policy Assessment and Adjustment: Large credit card issuers should conduct a thorough review of their current late fee policies to ensure alignment with the new rule, including evaluating whether to adopt the $8 safe harbor for late fees or undertake a detailed cost analysis.

Cost Analysis for Higher Fees: For issuers considering fees above the $8 limit, a comprehensive cost analysis becomes imperative. This analysis must demonstrate that the higher fees are necessary to cover the specific costs associated with the late payments, excluding post-charge-off collection costs.

Disclosure and Communication Updates: The new late fee provisions necessitate updates to a range of customer communications and disclosures. This includes changes to account-opening disclosures, periodic statements, and advertising materials to reflect the revised fee structure. Issuers will need to ensure that all relevant disclosures are clear, accurate, and in compliance with the requirements of Regulation Z.

The expertise and guidance of legal professionals can be useful in navigating the complexities of the CFPB's new rule on credit card late fees. For further inquiries or questions, please contact me at smigala@lavellelaw.com or at (847) 705-7555. Thanks go to Nathan Toy for his assistance with this month’s article.

Tim’s Tax News on the Tenth – March 2024

Sun, 10 Mar 2024 16:36:52 GMT

IRS Issues News Release to Debunk Myths about Receiving a Form 1099-K

This month the IRS released a news release trying to resolve confusion over the reporting requirements related to Form 1099-K, Payment Card and Third Party Network Transactions. The Form’s use has been the subject of much misinformation, so without further ado here is the list:

1099-K FACTS vs MYTHS

Myth: People will get a Form 1099-K from friends and family sending them personal payments.

Fact: Payments from friends and family should generally not be reported on a Form 1099-K. Form 1099-K reports payments for goods or services and should not report personal payments like rent, dinner, travel, and other gifts or reimbursements gifts, no matter the amount. Generally, in payment apps, the default is personal payments unless the sender designates that they are purchasing goods or services, or it is designated a business account.

Myth: If taxpayers did not receive a Form 1099-K, they do not have to report income.

Fact: According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless of if they receive a Form 1099-K.

Myth: Individuals will not get a Form 1099-K if they sold goods or services under the $20,000 and 200 transactions payment threshold set for 2023 and previous tax years.

Fact: The 2023 federal reporting threshold of over $20,000 and 200 transactions is a reporting requirement, but companies may still send a Form 1099-K for goods or services payments that are less than that amount. Payment apps and marketplaces that have held backup withholding for a payee during calendar year 2023 must file a Form 945 and a Form 1099-K. Also, their state may have a lower reporting threshold, which could result in receiving a Form 1099-K, even if the total gross payments they received in the year did not exceed the federal reporting threshold.

Myth: Taxpayers owe taxes on the gross amount reported on the Form 1099-K.

Fact: The form provides the gross or total amount of payments individuals got per app or marketplace. Just because a payment is reported on a Form 1099-K does not mean it is taxable. Taxpayers will need to use the form and other records to determine their actual tax liability when they file their tax return. More information is available to help determine an individual’s tax obligations at IRS.gov What to do with Form 1099-K .

Myth: People can only get a 1099-K if they are running a business.

Fact: People may receive a Form 1099-K from payment apps or online marketplaces they used to sell goods or services, or accepted payments from a bankcard. See Form 1099-K FAQs on Fact Sheet 2024-03PDF for more information.

Myth: People do not need to do anything with their Form 1099-K.

Fact: Individuals should use the information on the Form 1099-K with their other tax records to determine their correct tax owed. See Understanding your Form 1099-K and visit the Form 1099-K frequently asked questions for more information.

Someone who receives a Form 1099-K when they should not have should take these steps .

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What is the Corporate Transparency Act?

Fri, 08 Mar 2024 22:50:20 GMT

As of January 1, 2024, most businesses in the U.S. are required to comply with the Corporate Transparency Act. In this video, Lavelle Law attorney Frank Portera shares important details about the new Act and how it impacts businesses. He will cover the scope of the Act, deadlines, requirements, and penalties. If you own even a portion of a business, this is an important topic for you to learn about.

Corporate Transparency Act

Thu, 07 Mar 2024 17:41:04 GMT

Beginning January 1, 2024 most businesses in the U.S. are required to comply with the Corporate Transparency Act. In this podcast, Lavelle Law attorney Frank Portera shares important details about the new Act and how it impacts businesses. He will cover the scope of the Act, deadlines, requirements, and penalties. If you own even a portion of a business, this is an important topic for you to learn about.

Podcast Link

Business After Hours - Play Ball with Lavelle Law!

Mon, 04 Mar 2024 22:36:07 GMT

April 4, 2024

5 PM - 7 PM

1933 N. Meacham Rd.*

Suite 600

Schaumburg, IL 60193

We had a wonderful time hosting the Schaumburg Business Association’s Business After Hours - aka “Play Ball with Lavelle Law” on April 4, 2024! It was a full house with a terrific and energetic turnout! Thanks to all who joined us in our friendly confines as we celebrated our professional connections with a little baseball flair. And congratulations to our raffle winners, Theresa, Matt, and Michael!

Do the Math Before You Vote in the Illinois Primary

Tue, 27 Feb 2024 22:59:34 GMT

Understanding the Referendum: “Amending the Real Estate Transfer Tax”

Chicago residents participating in the March 19th primary will walk into the voting booths expecting to make consequential decisions about their nominees for President and States Attorney. But, the typical voter may find themselves slightly confused and overwhelmed when they reach a lengthy referendum at the end of their ballot, entitled “ Amending the Real Estate Transfer Tax .” This referendum is four entire paragraphs of tax jargon and financial chatter, informing the reader about a ballot measure on a local tax change.

In fact, this is a highly consequential ballot referendum on a proposed change to the local real estate transfer tax, and it’s essential to understand what the referendum means before primary day. Read on, and we’ll break it down for you.

Flat Tax No More: Changes to Chicago Real Estate Transfer Tax

The current real estate transfer tax rate in Chicago is 0.75 percent of the sales price of the subject property, regardless of what the price is. This means that no matter what type of property you sell in the city of Chicago, big or small, the city takes a 0.75 percent slice of the total sale price.

This proposed ballot referendum would change that. If passed, the transfer tax on properties sold for more than $1 million would increase from 0.75 percent to 2 percent, more than doubling the existing rate, but would only apply to the amount of the sale greater than $1 million. Basically, every dollar over $1 million would be taxed at that higher rate.

In addition, properties sold for more than $1.5 million would be taxed at an increased rate of 3 percent, with the increase, once again, only applying to every dollar in the sale price over $1.5 million.

And finally, the transfer tax on properties sold for less than $1 million, would receive a tax decrease from that original rate of 0.75 percent to 0.60 percent.

The referendum requires that the increased revenue generated from the tax must “be used for the purpose of addressing homelessness, including providing permanent affordable housing and the services necessary to obtain and maintain permanent housing.”

Critics have attacked the city’s lack of specifics for how the funds must be used, and insist that while many properties that sell for less than $1 million will receive a tax cut, the tax increases on the sales above $1 million will chill commercial investment in Chicago at a time when downtown is struggling with post-pandemic work culture, and this could also result in residential and commercial renters seeing increased transfer tax costs passed on to them by landlords.

Meanwhile, proponents of the referendum insist that the above arguments amount to fearmongering over a relatively minor tax change, and emphasize Chicagoan’s shared interests in not seeing homelessness go unabated—both from a standpoint of human compassion and due to the blight and decreased livability that cities can experience if homelessness is not addressed.

Possibly a Moot Point?

At this time, interestingly, the ballot referendum has been declared invalid and will not be counted in response to a February 23rd ruling from a Cook County judge, who decided in part that the ballot measure was an illegal, textbook example of “logrolling,” or putting politically-unpopular proposals with popular ones on a ballot, and asking voters or legislators to decide on them in a single vote. In this case, the ballot referendum frames the single proposal as both a tax cut for some, and two types of tax increases for others, amounting to three separate tax decisions at once.

So, although the question will remain physically on the ballot, the results will not be tallied and reported unless the judge’s decision is overturned on appeal. However, an appellate court decision could make this ballot measure binding again in the blink of an eye. And even if the ballot language remains stricken, proponents of the tax change will likely rephrase the referendum and work to get it on the next citywide ballot. If you rent, own, or are looking to own property in the city of Chicago, this referendum could ultimately impact you, and you should walk into the voting booth with a clear understanding of that impact.

For questions about this and other real estate tax issues or any legal needs, Lavelle Law offers free consultations. Please contact Attorney Kelly Anderson at (847) 241-1786 or kanderson@lavellelaw.com and we can set up your appointment!

Success Story - $50,000,000 Asset Sale

Tue, 20 Feb 2024 17:32:39 GMT

Background:

Our client, who operated a successful professional services business, was acquired in a transaction that closed earlier this year.

Challenges:

The transaction included a detailed working capital reconciliation structure, meaningful intellectual property transfers, as well as significant post closing earn out provisions. Moreover, a number of the seller’s employees were transitioned to positions with the buying entity. Lastly, there were a number of contracts that were assigned to the buying entity.

Result:

The transaction was successfully closed and the parties continue to operate a successful business.

What is Accord and Satisfaction?

Mon, 12 Feb 2024 23:46:23 GMT

If a business is disputing an amount owed to them from a customer or vendor they need to be careful about accepting and depositing payments that are labeled Payment in Full. In this video, Lavelle Law Shareholder Jennifer Tee discusses the legal concept of Accord and Satisfaction and outlines steps businesses should take when processing payments to prevent accepting payments that are less than what is owed.

Tim’s Tax News on the Tenth – February 2024

Sat, 10 Feb 2024 15:00:00 GMT

Some People Accustomed to Getting a Tax Refund May be Surprised This April When They Instead Discover They Have a Balance Due

As of the end of April 2022, over 18 million individual taxpayers owed the IRS $316 billion in overdue taxes.

And while the dollar amount and the reason for the tax debt people owe varies widely, one thing is sure this year, the IRS will be aggressively going after unpaid taxes. Using new funding from the Inflation Reduction Act, IRS workers will be focused on collecting unpaid taxes and the pause in their collection efforts during the pandemic is now a thing of the past.

There are two main reasons for the expected “file-and-owe” surprise trend. First, for workers who get a steady paycheck, taxes are withheld, but the withholding might not be enough if someone gets a higher-paying job or has investment gains. In such cases, if taxpayers did not do a withholding checkup or complete a new W-4 withholding form with their employer, they may be surprised to learn they owe taxes beyond what was withheld in their paycheck.

Another reason many people may be surprised come this April is the rise in short-term or temporary jobs and part-time positions filled by independent contractors and freelancers, a/k/a the gig economy. Gig workers have to pay taxes throughout the year in quarterly estimates, and if they fail to do so, they will definitely be surprised this April when they discover they not only have a tax balance due, but possibly an underpayment penalty as well.

If you happen to be one of many caught off guard and learn that instead of a refund, you now have a tax balance due this April, do not lose hope, this is the time to be proactive. One way is to pay up or negotiate with the IRS before the agency comes calling. The danger of owing the IRS back taxes is that the debt will keep growing. The longer you wait to pay, the more the penalties and interest will accrue until the debt is paid in full. If you are unable to pay in full, the IRS may offer payment plans, and, in special cases, taxpayers can settle their tax debt for less than what they owe.

Taxpayers who owe money to the IRS get an initial balance-due notice, followed by a series of more aggressive notices demanding payment. The IRS sends out annual balance-due reminders to anyone with a tax debt. Erin Collins, the national taxpayer advocate, and IRS watchdog, has called on Congress to increase those notices to quarterly. “By sending infrequent billing notices, the IRS received fewer payments from taxpayers, and as a result, more taxpayers face aggressive IRS collection actions such as levies and liens,” she wrote in her latest annual report to Congress.

As the IRS ramps up their collection efforts, tax liens and levies will be their key enforcement tools. And failure to pay back taxes will only result in penalties and interest accruing, causing your tax debt to just keep growing. So be proactive and do not ignore those IRS collection notices, because the longer you wait the worse the tax debt becomes.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

Accord and Satisfaction

Thu, 08 Feb 2024 22:37:16 GMT

If a business is disputing an amount owed to them from a customer or vendor they need to be careful about accepting and depositing payments that are labeled Payment in Full. Lavelle Law Shareholder Jennifer Tee discusses the legal concept of Accord and Satisfaction and outlines steps businesses should take when processing payments to prevent accepting payments that are less than what is owed.

Podcast Link

Banking and Business Monthly – February 2024

Thu, 08 Feb 2024 17:54:08 GMT

FTC’s Revised Hart-Scott-Rodino Filing Thresholds, Filing Fee Schedule, and an Increased Civil Penalty for M&A Transactions

The Federal Trade Commission (“FTC”) announced on January 22, 2024, revised thresholds used for pre-acquisition filings under the Hart-Scott-Rodino Antitrust Improvements Act (“HSR”). These are expected to become effective 30 days after notice is published in the Federal Register. Under the new thresholds, the parties to a merger, consolidation, or acquisition of voting securities or substantial assets will in most cases need to file pre-acquisition notifications with the FTC and the Department of Justice and observe the HSR waiting periods before closing, if the transaction meets one or more tests which look at both the size of the transaction and the sizes of the persons in the transaction.

Size of Transaction: This test is both a floor below which no filing is required, and a threshold for automatic filing regardless of the size of the persons discussed below. No filings are required for transactions under $119.5 million this year notwithstanding the size of the persons. If the value of the securities or assets exceeds $478 million, then the persons must report the transaction notwithstanding the size of the persons.

Size of Person: If the value of the securities and assets held as a result of the transaction is between $119.5 million and $478 million, the transaction must be reported in most cases if either the acquired or acquiring party has annual net sales or total assets of at least $23.9 million and the other party to the transaction has at least $239 million in annual net sales or total assets. For the purposes of applying the above thresholds, “person” means the ultimate parent entity of the party engaged in the transaction.

Filing Fees and Thresholds: The amounts of the filing fees and thresholds have been revised as follows:

Transactions valued at more than $119.5 million but less than $173.3 million pay $30,000.
Transactions valued at $173.3 million or more but less than $536.5 million pay $105,000.
Transactions valued at $536.5 million or more but less than $1.073 billion pay $260,000.
Transactions valued at $1.073 billion or more but less than $2.146 billion pay $415,000.
Transactions valued at $2.146 billion or more but less than $5.365 billion pay $830,000.
Transactions valued at $5.365 billion or more pay $2,335,000.

Increased Civil Penalty: Separately, the FTC announced on January 11, 2024, that the maximum daily civil penalty amount for violations of the HSR would increase from $50,120 to $51,744.

Note that certain filing exemptions may apply depending on the nature of the transaction and the nature and location of the assets and entities involved. Consequently, additional analysis is often required before making a final determination regarding the need for an HSR filing. Counsel is recommended, as noncompliance with HSR leads to significant penalties, as noted above. We can assist with this analysis. For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555.

ENJOINED TO PLAY—Illini Basketball Player Succeeds on Temporary Restraining Order and Injunctive Relief Against University of Illinois

Tue, 30 Jan 2024 23:51:39 GMT

*** Lavelle Law is not making any statement as to the underlying criminal case in this matter, and affords both the victim and accused each their legal rights.***

On December 27, 2023, University of Illinois at Urbana Champaign (“Illinois”) Basketball Star Terrence Shannon Jr. (“TJ” or “Plaintiff”) was arrested on rape and sexual assault charges in the state of Kansas. He is accused of inappropriate sexual conduct with a young woman when he went to visit the University of Kansas on September 8, 2023, for an Illinois-Kansas football game.

On December 28, 2023, the University Of Illinois Division Of Intercollegiate Athletics (“DIA”) provided formal written notice to TJ of his indefinite suspension from all team activities. After this suspension, a panel convened within 48 hours of notice to TJ of the suspension to determine if the ban on team activities should remain in place. TJ submitted a personal statement and a supporting letter from his attorneys, but could not present a defense nor see the evidence that the panel considered in ruling that his suspension was appropriate.

While out on suspension, TJ's legal team filed a Complaint and Emergency Motion for TRO and Injunctive Relief ( Terrence Shannon Jr. v. The Board of Trustees of The University of Illinois, and Timothy Kileen, in his official capacity , Case No. 24-CV-2010). The injunctive relief sought, barring the school from banning him from team activities while his criminal case is still pending, is the focus of this article.

The standard used for determining if a Plaintiff should obtain preliminary injunctive relief contains four factors: Plaintiff must show 1) he has a protected right; (2) he will suffer irreparable harm if injunctive relief is not granted; (3) his remedy at law (meaning money damages) is inadequate; and (4) there is a likelihood of success on the merits.

After considering arguments from both TJ and the University, the Court found in favor of TJ. The Court found that TJ had a likelihood of success on the merits in his underlying claim against President Timothy Killeen under 42 U.S.C. § 1983, also known as the Civil Rights Act of 1871 (“Civil Rights Act”) for deprivation of TJ’s protected interests without procedural due process.

The Court reviewed the required factors for a Civil Rights Act claim, which include a property interest, a liberty interest, and procedural fairness. The court found that TJ could have success on this claim because a court could find that his participation in athletics and his future earning potential as an NBA player is protected under the 14th Amendment, and in turn, created a contractual right and legitimate claim of entitlement to not be suspended from the team without good cause. Further, the court opined that TJ’s suspension could deprive him of a protected liberty interest, which is the freedom to pursue a career of his choice in basketball, and that reputational harm was inflicted as he was wrongfully suspended for allegations of sexual misconduct without affording him adequate due process. Finally, the Court found that there was a likelihood of success as to the inadequate procedural safeguards afforded to TJ during the DIA disciplinary process. The DIA did not afford him the opportunity to view the evidence against him, nor was he allowed in the hearing that determined staying his suspension or given a recording or a transcript of the proceeding. There was no written decision provided to TJ, nor an avenue to appeal the decision to uphold his suspension.

Further, the Court found, using relevant case law ( Ganden v. NCAA , 1006 WL 680000 at *6 (ND Ill. Nov. 21, 1996), Huntsonville Cmty. Unit Sch. Dist. No. 1 v. Illinois High Sch. Ass’n , 195 N.E.3d 662 (5th Dist. 2021)) that TJ would be irreparably harmed as 1) his draft stock had already begun to plummet since his suspension, 2) he could lose compensation through loss of his NIL deal as his name, image, and likeness is worth very little if he is not on the basketball court, and 3) he loses opportunities to play basketball at the highest level on a national stage. Most importantly, even if the charges against him are dismissed, or he is acquitted on said charges after the conclusion of the basketball season and the NBA draft, the Court found that TJ would not have an adequate remedy at law. The court opined that at that point, TJ would have already suffered irreparable harm. PDF of Opinion

As demonstrated through this case, swift injunctive relief can serve as a key litigation strategy in order to obtain equitable (non-monetary) relief. If you are seeking emergency injunctive relief for yourself or your business, or need assistance in any other complex business litigation matter, Lavelle Law Attorneys would love to assist you. Please contact the authors, Matthew Sheahin, msheahin@lavellelaw.com , MaryAllison Mahacek, mmahacek@lavellelaw.com , or any of our litigation attorneys for a free consultation.

Success Story – Homeowner Saved Possible Loss of Equity in Home – Over $200,000 with Chapter 13 Bankruptcy

Tue, 16 Jan 2024 23:39:21 GMT

Background:

Our client, because of bad litigation advice, was facing a judicial sale from a second mortgage lender that had a relatively small balance.

Challenges:

Because of the prior protracted litigation, the small bank did not want to work with the client through non-foreclosure means. The client had a large amount of equity but because of the pending foreclosure judgment, he could not tap into that resource or resolve the foreclosure which was heading to a looming judicial sale.

Result:

After explaining the Chapter 13 bankruptcy process, we filed the client’s case just before the judicial sale was to occur and the client’s bankruptcy plan was confirmed. He saved the equity of over $200,000 in his home.

Banking and Business Monthly – January 2024

Mon, 15 Jan 2024 17:36:59 GMT

FTC and DOJ’s 2023 Merger Guidelines

In the August article , I discussed the proposed merger guidelines issued by the U.S. Department of Justice Antitrust Division (“DOJ”) and the Federal Trade Commission (“FTC” and collectively with DOJ, “Agencies”). They were finalized and released by the Agencies on December 18, 2023. They continue the Biden Administration’s theme of increased scrutiny of mergers and stricter enforcement of antitrust laws.

The draft guidelines’ thirteen principles have been reduced to eleven principles. Mergers are more likely to be challenged by the Agencies if they violate one or more of the following principles:

Significantly increases concentration in a highly concentrated market;
Eliminates substantial competition between firms;
Increases the risk of coordination;
Eliminates a potential entrant in a concentrated market;
Creates a firm that may limit access to products or services that its rivals use to compete;
Entrenches or extends a dominant position;
When an industry trends toward concentration, substantially lessens competition or tends to create a monopoly;
Is part of a series of multiple acquisitions;
Affects competition with respect to a multi-sided platform;
A merger involving competing buyers that substantially lessens competition for workers, creators, suppliers, or other providers; and
An acquisition involving partial ownership or minority interests that substantially lessens competition.

Among the changes is the combination of draft principles 5-6 into final principle 5, used to examine vertical mergers. Principle 5 maintains the same analysis for reviewing a vertical merger, such as presuming illegality for vertical mergers where the merged firm has a greater than 50% share of the related product market. Prior principle 8, which is now principle 7, contains additional, stronger language signaling that the Agencies will scrutinize mergers that occur in industries that are trending towards concentration. The removal of Principle 13 in the prior guidelines, which was a catch-all for any merger that otherwise substantially lessens competition or tends to create a monopoly, may reflect a slightly softer approach than that taken in the proposed guidelines.

The final guidelines reveal that a merger that creates a firm with a market share over thirty percent is presumed to substantially lessen competition or will tend to create a monopoly if it also involves an increase in the Herfindahl-Hirschman Index (HHI), which measures market concentration levels, of more than 100 points. This presumption also is raised when a market has an HHI above 1,800 and the transaction increases the HHI by over 100.

Just as with the proposed guidelines, the final guidelines are not binding on courts, although courts may view them as persuasive authority. It remains to be seen whether the Agencies can persuade federal courts that the proposed merger guidelines are supported by case law.

For further inquiries or questions, please contact me at smigala@lavellelaw.com or (847) 705-7555.

Learn About the Corporate Transparency Act and its Reporting Requirements

Fri, 12 Jan 2024 17:32:26 GMT

A Lavelle Law Breakfast Briefs Presentation

February 21, 2024

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

The federal Corporate Transparency Act (CTA) went into effect on January 1, 2024. All business entities formed or registered to do business in the United States will need to submit a timely Beneficial Ownership Information (BOI) report to the U.S. Treasury’s Financial Crimes and Enforcement Network (FinCEN) unless they qualify for an exemption. Business owners and their advisors are encouraged to attend this seminar, where you will learn about which business entities must file and when, as well as the information that is required to complete the BOI report. We will discuss how Lavelle Law can assist you with this filing and with your annual compliance obligations generally.

Doors will open at 7:45 for a complimentary continental breakfast and the presentation will begin at 8:00. Registration is required as seating is limited. No walk-ins.

ATTENTION Accountants: You will be eligible to earn CPE credit by attending this Breakfast Briefs seminar.

MEET THE PANEL

Steven Migala is one of the shareholders of Lavelle Law, and is an experienced business attorney practicing in the following areas:

Corporate / M&A: Steve counsels business organizations in all stages of their life cycle, from start-up issues, contract negotiation and documentation, assets and equity sales/purchases, and mergers and joint ventures.
Banking: Steve represents banks and borrowers in commercial lending and workout matters, including negotiating and documenting a variety of loans and forbearance agreements, as well as handling foreclosures and other collection actions.
3Real Property: Steve represents sellers, buyers, landlords, and tenants with acquisitions, dispositions, and leasing of real estate, as well as with related municipal zoning matters.
Estate Planning: Steve assists business owners with their succession planning and exit strategy, as well as their estate plans, probate, and trust administration.

Frank Portera manages the Corporate Compliance Practice Group at Lavelle Law, and focuses his practice on new business formations, drafting shareholder/operating agreements, and mergers and acquisitions. Through Frank’s general business law practice, he works closely with many small business owners to assist them in applying for and maintaining trademarks and negotiating commercial lease agreements. Mr. Portera serves on the Arlington Heights Zoning Board of Appeals, is a member of the Board of Directors of the Arlington Heights Chamber of Commerce, and is a member of the Board of Directors Gerry’s Café in Arlington Heights. Frank received both his B.A. and J.D. from Marquette University in Milwaukee, Wisconsin.

Lavelle Law Awarded Platinum Level Status by the University of Illinois College of Law

Thu, 11 Jan 2024 20:17:05 GMT

Lavelle Law is honored to receive special recognition from the University of Illinois College of Law. On January 9, 2024, Dean Greg Miarecki presented the firm with Platinum Level status for the 2022-2023 Employer Honor Roll. We are proud to employ attorneys from the University of Illinois College of Law and we look forward to continuing our relationship. https://law.illinois.edu/

Tim’s Tax News on the Tenth – January 2024

Wed, 10 Jan 2024 14:00:00 GMT

IRS Announces Novel New Voluntary Disclosure Program – Lets Employers Who Received Questionable Employee Retention Credits Pay Them Back at Discounted Rate

The IRS announced as part of its ongoing initiative aimed at combating dubious Employee Retention Credit (ERC) claims, the IRS launched a new Voluntary Disclosure Program to help businesses who want to pay back the money they received after filing ERC claims in error. The new disclosure program is meant to help “innocent taxpayers” who were misled by aggressive marketing ERC companies that caused some unqualified employers into filing claims. The special disclosure program runs through March 22, 2024, and the IRS added provisions allowing repayment of 80% of the claim received.

The IRS also continues to urge employers with pending ERC claims to consider a separate withdrawal program that allows them to remove a pending ERC claim with no interest or penalty. The IRS has already received more than $100 million in withdrawals as it continues intensifying audits and criminal investigation work in the ERC area.

As the IRS continues special initiatives addressed towards ERC, the IRS plans on providing an update in early 2024 on the status of the moratorium. Additionally, the IRS mailed out 20,000 denial letters to ERC claimants in early December 2023. The novel ERC Voluntary Disclosure Program (closing March 22, 2024) with its 80% repayment for those that the IRS accepts into the program also waives repayment of interest that may have been paid to the taxpayer. The 20% discount was conceived to help taxpayers repay the credit they received after paying promoter fees. If the taxpayer is unable to repay the required 80% of the credit, the IRS may allow for an installment agreement on a case-by-case basis, pending submission and review of a Collection Information Statement for Businesses form and all required supporting documentation.

The IRS will not charge program participants interest or penalties on any credits they repay. However, if the employer is unable to repay the required 80% of the credit at the time of signing their closing agreement, then the employer will be required to pay penalties and interest in connection with entering into an installment agreement.

Are you receiving the Lavelle Law eNewsletter? Sign up today and receive valuable updates and perspectives on a wide range of legal issues: http://goo.gl/pjeJkm

New associate joins Lavelle Law

Mon, 08 Jan 2024 16:47:42 GMT

Article Link: h ttps://www.dailyherald.com/20240105/submitted-content/new-associate-joins-lavelle-law/

New Year. New Laws. 2024

Wed, 03 Jan 2024 23:13:45 GMT

There are over 300 New Illinois Laws that take effect in 2024. Here is a summary of some that may impact your life.

PAID LEAVE FOR ALL WORKERS ACT (SB 0208/PA 102-1143) : Requires employers to provide 40 hours of paid leave annually for full-time employees or prorated amounts for part-time employees, which may be used for any reason and without documentation. Note that employers in Chicago are subject to the City of Chicago’s paid leave and sick ordinance that may have different requirements than the Paid Leave for All Workers Act. For more on the Chicago Ordinance, Click Here .

TRANSPORTATION BENEFIT PROGRAM ACT (HB 2068/PA 103-0291 ): Requires employers with 50 or more employees and located within one mile of transit service to allow employees to exclude public transit costs from taxable wages.

VICTIMS’ ECONOMIC SECURITY AND SAFETY ACT (HB 2493/PA 103-0314) : Amended to entitle an employee to two work weeks of unpaid leave from work for specified reasons relating to a family or household member who is killed in a violent crime.

EQUAL PAY ACT (HB 3129/PA 103-0539) : Modifies the Equal Pay Act of 2003 by requiring employers with 15 or more employees with a physical presence in Illinois or for a job which reports to an Illinois supervisor to include a pay scale and benefits in their job postings for positions.

FREELANCE WORKER PROTECTION ACT (HB 1122/PA 103-0417) : Imposes economic protections for individuals who provide freelance work as independent contractors. The legislation also allows freelance workers to file a complaint with the Illinois Department of Labor regarding violations of the Act.

ELECTRONIC WILLS AND REMOTE WITNESSES ACT (HB 2269/PA 103-0301) : Legislation amends the Electronic Wills and Remote Witnesses Act by authorizing the execution of electronic nontestamentary estate planning documents and validating electronic signatures.

UNEMPLOYMENT INSURANCE ACT (HB 3301/PA 103-0343) : Amends the Act to require Illinois employers to report newly hired independent contractors to the Illinois Dept. of Employment Security so that they may be placed on the Illinois Directory of New Hires.

PROBATE ACT (HB 1268/PA 103-0280) : Amendment allowing individuals convicted of a felony to serve as an executor of an estate so long as they are not currently incarcerated.

HUMAN RIGHTS ACT (SB 1817/PA 103-0232) : Amendment prohibiting discrimination of an individual’s immigration status in real estate transactions and prohibiting loan providers from discriminating based on immigration status or source of income. However, financial institutions may consider immigration status in compliance with State or Federal law.

SALES FINANCE AGENCY ACT (HB 3236/PA 103-339) : Amendment to prevent sales finance agencies from purchasing a loan secured by: (1) retail installment contracts; (2) retail charge agreements; or (3) the outstanding balance of retail installment contracts or retail charge agreements for sale of a canine or feline.

CORPORATE TRANSPARENCY ACT (SB 2563/PA 103-0036) : Mandates that qualified U.S. businesses report their beneficial owners to combat financial crimes. The law affects both domestic and foreign corporations, requiring them to disclose specific ownership information to FinCEN.

DIGITAL FORGERIES ACT (HB 2123/PA 103-0294) : Legislation that will give victims legal recourse if they are the victim of “deep fakes,” or digitally altered sexually explicit images.

COMMUNITY BENEFITS ACT (HB 2719/PA 103-0323) : Amendment legally requiring Hospitals to screen patients for eligibility for public financial assistance before sending them to collections. Hospitals will also be required to refer patients to free, unbiased resources if immigration-related concerns arise.

PERSONNEL RECORD REVIEW ACT (HB 3733/PA 103-0201) : Amendment requiring employers to provide copies of personnel records via email or mail. Employers may continue to charge a fee for making copies of the personnel records up to the actual cost of the copies.

LIQUOR CONTROL ACT (HB 1557/PA 103-0020) : Amendment requiring for-profit music venues with a capacity of more than 1,000 persons to maintain a staff member trained to administer on-site opioid overdose treatment.

SMOKE-FREE ILLINOIS ACT (HB 1540/PA 103-272) : Amendment that adds electronic smoking devices to the 2008 Smoke-Free Illinois Act, which banned smoking in most indoor public spaces in the state.

ILLINOIS INSURANCE CODE (HB 1049/PA 103-0011) : Amendment preventing homeowners insurance providers from modifying or adjusting the coverage of a policyholder based on the specific breed of dog that individual owns. However, insurance providers can still modify or cancel coverage if they can support a finding that a given dog is “dangerous.”

ILLINOIS VEHICLE CODE (HB 2431/PA 103-0310) : Amendment making it illegal to take a video conference call like Skype or Zoom while driving a car. The first violation of this amended Code provision will result in a $75 fine, but repeated violations could escalate as high as $1,000.

IDENTIFICATION CARD ACT (HB 3882 HB 3882/103-0210) : Amendment permitting undocumented residents of Illinois who have been in the state for at least a year to receive a standard Illinois driver license, replacing the existing Temporary Visitor Driver's License (TVDL) program currently used by about 400,000 undocumented residents.

ILLINOIS VEHICLE CODE (HB 2245/PA 103-0300) : Amendment requiring the country sheriff of counties of over 3,000,000 citizens to establish a vehicle theft hotline to help facilitate the location of stolen vehicles using their existing global positioning systems.

SECURITY DEPOSIT RETURN ACT (SB 1741/PA 103-0224) : Amendment removing the limitations of security deposit protections for buildings with fewer than five units and requires landlords to provide an itemized statement of damages before withholding a security deposit for all rental units regardless of the number of units within 30 days of the end of possession.

ILLINOIS MARRIAGE AND DISSOLUTION ACT (HB 1591/PA 103-0021) : Amendment repealing provisions of the Act that stated marriages are void in Illinois if they are void in other states, and the requirement of individuals who live in another state, obtaining a license in Illinois, to need a signature from their home state.

ILLINOIS ANTI-TRUST ACT (HB 2222/PA 103-0526) : Requires healthcare facilities and provider organizations to notify the Attorney General of a transaction involving a merger, acquisition, or contracting affiliation within 30 days of the transaction’s closing or effective date.

ILLINOIS CRIMINAL CODE (HB 3304/PA 103-0184) : Provides that prosecution for fraud relating to COVID-19 relief may commence within five years following the discovery by an individual with a legal duty to report the activity or following an officer becoming aware of the fraudulent offense.

ILLINOIS SCHOOL CODE (HB 3570/PA 103-0452): Amendment requiring the Illinois State Board of Education to analyze and assess the most recent rating data for all non-tenured teachers broken down by race and ethnicity, and the race, ethnicity, and free and reduced-price lunch status of the students in the school where the teacher is employed.

For a comprehensive list of the new Illinois laws, visit: https://www.illinoissenatedemocrats.com/images/PDFS/2023/bills-taking-effect-2024.pdf

Contact attorney Lance Ziebell at 847-705-7555 or lziebell@lavellelaw.com to set up a consultation to discuss how these new laws may affect you or your business.

Happy New Year from Around the World and Lavelle Law!

Thu, 28 Dec 2023 15:22:56 GMT

Have Koozie. Will Travel! As we close the books on 2023, we’re happy to share our Lavelle Koozie pics from around the world. We had great participation in this year’s koozie challenge from our clients, family, and staff, and we’re excited to see where the new year will take us!! Happy New Year from all of us at Lavelle Law! May all your days be merry and bright in 2024!

Success Story – Crucial Life Insurance Secured for Family of Missing Person Presumed Dead

Tue, 12 Dec 2023 23:31:30 GMT

Background:

Our client was married to the decedent and had a young child with him. The decedent disappeared in a foreign country never to be seen again. Several years prior to his disappearance, the decedent purchased a life insurance policy naming his wife as the pay on death beneficiary. Probate was necessary to collect life insurance proceeds for the decedent’s family.

Challenges:

It is very difficult to establish to a probate court that a missing person should be deemed deceased. Most probates relate to persons who are clearly deceased or disabled. Many probates for missing persons presumed dead do not meet the required legal burden to be opened.

Result:

We were able to successfully gather enough evidence and prove to the probate court that our client’s husband was deceased. With the court order, our client was able to obtain life insurance proceeds to help raise her and the decedent’s child.

Lavelle Law leads community effort in support of food pantry

Tue, 28 Nov 2023 16:03:01 GMT

Daily Herald Article Link: https://www.dailyherald.com/submitted/20231127/lavelle-law-leads-community-effort-in-support-of-food-pantry

Protect Your Business with a Well-Drafted Employee Handbook

Tue, 28 Nov 2023 00:23:33 GMT

In this video, Lavelle Law Shareholder Lance Ziebell draws on his experience in representing businesses in legal matters as he discusses the importance of having an employee handbook. Lance not only explains why they are important, but what should be included and how to effectively use one to protect your business from legal claims from employees.

The 2023 Lavelle Law Charities Food Drive Delivers!

Thu, 16 Nov 2023 23:56:39 GMT

The 2023 Lavelle Law Charities Food Drive has culminated in an incredible success, surpassing expectations. Our 4-week long food drive concluded on October 27, when Lavelle Law employees delivered well over $10,000 worth of food items and a check for $12,780 for the Schaumburg Township Food Pantry. These donations will keep the shelves stocked throughout the holiday season and beyond. This achievement would not have been possible without the support of our generous community. Thank you to everyone who donated, the organizations who hosted a collection box, and everyone who pitched in to help. We also thank our corporate sponsors for their generous support: Tony’s Fresh Market, Clearwater Capital Partners, Britt Industries, Norman Mechanical, Kleen Air, Tenant Advisors, and Quick Delivery Service.

To all who rallied behind the 2023 Lavelle Law Charities Food Drive, your support has made the holiday season brighter and brings hope for months ahead for over 1,100 families who rely on the Schaumburg Township Food Pantry.

Thank you for making a difference!

Success Story – Appeal Win Results in Settlement for Client

Mon, 13 Nov 2023 23:26:28 GMT

Background:

Our client owned a strip mall that was largely destroyed in a fire. While the insurance covered most of the rebuild, it did not cover business income losses, which the insurance agent had assured the client their policies contained.

Challenges:

Lavelle Law represented the Plaintiff in this lawsuit against the insurance company, insurance brokers, and insurance agent. Plaintiff’s Amended Complaint was dismissed in the trial court and Lavelle Law, Ltd. appealed to the Appellate Court.

Result:

Lavelle Law won the appeal on behalf of the Plaintiff and the case was sent back to the trial court for further proceedings. After the matter was sent back to the trial court, the case was settled in Plaintiff’s favor for an amount acceptable to Plaintiff to resolve its claims.

Importance of Employee Handbooks Focus of Upcoming Seminar

Wed, 01 Nov 2023 22:16:34 GMT

Article Link: https://www.dailyherald.com/submitted/20231026/importance-of-employee-handbooks-focus-of-upcoming-seminar

Success Story – $9 Million Secured Mortgage Loan

Tue, 24 Oct 2023 20:18:46 GMT

Background:

Lavelle Law represented a commercial bank in its $9 million mortgage loan secured by an office park.

Challenges:

The loan was complicated as it was conditioned on the prior closing of a note purchase and deed-in-lieu of foreclosure transaction.

Result:

The mortgage loan was successfully completed despite its complexities. It required the negotiation of many subordination agreements with tenants, and it also required the prior closing of a note purchase and deed-in-lieu of foreclosure transaction, which raised significant title issues.

Factors align to increase need for annual food drive

Fri, 20 Oct 2023 14:46:56 GMT

Article Link: https://www.dailyherald.com/submitted/20231018/factors-align-to-increase-need-for-annual-food-drive

The Significance of Employee Handbooks & Navigating New Laws

Wed, 18 Oct 2023 16:28:57 GMT

A Lavelle Law Breakfast Briefs Presentation

November 8, 2023

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

Join us on November 8 for a Lavelle Law Breakfast Briefs presentation that will focus on the significance of Employee Handbooks, emphasizing their role in protecting employers, setting employee expectations, and outlining employee obligations. During this presentation, Lavelle Law attorneys will shed light on what an Employee Handbook should contain and how new Illinois laws expected in 2024 will impact existing Handbooks, urging attendees to take proactive measures to ensure compliance.

This presentation will serve as an essential resource for businesses and HR professionals, underlining the importance of Employee Handbooks, guiding them on what these documents should contain, and alerting them to the imminent changes in employment law. By attending this event, employers can prepare themselves for the legal challenges of the future and maintain a compliant and harmonious workplace.

Doors will open at 7:45 for a complimentary continental breakfast and the presentation will begin at 8:00. Registration is required as seating is limited. No walk-ins. Register through Eventbrite using the link below.

MEET THE PANEL

Lance Ziebell is an experienced employment law and business litigation attorney and a shareholder of Lavelle Law. He represents businesses and employers in a variety of arenas including courts (state and federal) and state and federal administrative agencies such as the Department of Labor, Equal Opportunity Employment Commission, Department of Human Rights, National Labor Relations Board, Occupational Safety and Health Administration, and various other agencies. Mr. Ziebell has expertise in breach of contract scenarios, shareholder disputes, and employer/employee disputes of many different varieties.

Ted McGinn is the managing partner and a shareholder of Lavelle Law and focuses his practice on business formations, capital structuring, mergers and acquisitions, and other transactions. He also provides guidance in areas of intellectual property including trademarks and copyrights, handles employment and labor law issues, and represents individuals and businesses in bankruptcy and other debtor relief and wind-down strategies. Mr. McGinn is the Chair of the Board of Directors for the Schaumburg Business Association and currently serves on the Harper College Legal Studies Advisory Committee.

Preventing Business Disputes the topic of upcoming presentation

Fri, 06 Oct 2023 15:12:01 GMT

Article Link: https://www.dailyherald.com/submitted/20231006/preventing-business-disputes-the-topic-of-upcoming-presentation

The 2023 Lavelle Law Charities Food Drive is Underway

Thu, 05 Oct 2023 17:31:03 GMT

The 2023 Lavelle Law Charities Food Drive benefiting the Schaumburg Township Food Pantry runs from October 2 – October 27. The Schaumburg Township Food Pantry serves over 1,000 families each month who are at risk of hunger. Our goal is to help bring food, dignity, and hope to residents in need who rely on the food pantry. All nonperishable food items, paper goods, personal care items, baby formula, and diapers are needed. Visit our website for more information and a list of our collection box locations. www.schaumburgfooddrive.org

The Importance of Employee Handbooks

Wed, 04 Oct 2023 15:53:41 GMT

Lavelle Law Shareholder Lance Ziebell draws on his experience in representing businesses in legal matters as he discusses the importance of having an employee handbook. Lance not only explains why they are important, but what should be included and how to effectively use one to protect your business from legal claims from employees.

Podcast Link

Thanks for the Ride, Summer!

Fri, 22 Sep 2023 15:51:33 GMT

Thanks for the ride, Summer! As the sun sets on Summer 2023, check out where our Lavelle Can Koozie has been since our last Koozie video! Our family & friends have traveled to some awesome places around the world over the last 3 months! What’s your favorite? Do YOU want to join in our ongoing Koozie Challenge? Let us know and we’ll send you a Koozie. Where would you like to go? info@lavellelaw.com

Success Story – Saved Taxpayer Over $500,000 with OIC Settlement

Wed, 20 Sep 2023 15:34:40 GMT

Background:

Our client, because of bad tax advice, accumulated a tax debt with the IRS of over $500,000.00.

Challenges:

Because of the poor tax advice given to the client by a prior tax strategist, the IRS did not view the client’s case in a favorable light and they were close to bringing the IRS Criminal Unit in to investigate the taxpayer. Lavelle Law had to act swiftly to get the taxpayer in compliance and address the other issues that were troubling the IRS. And once the client’s facts were presented in a more favorable light, the Criminal Unit was not called in and we resolved the matter with the IRS.

Result:

After compliance issues were resolved, Lavelle Law represented our client in an Offer in Compromise proceeding and successfully settled with the IRS for $5,000.00, saving our client over $500,000.00!

Lavelle Law Breakfast Briefs in September to Focus on Probate

Tue, 29 Aug 2023 15:54:14 GMT

Article Link: https://www.dailyherald.com/submitted/20230824/lavelle-law-breakfast-briefs-in-september-to-focus-on-probate

Trademark Protection, Infringement, and Litigation

Wed, 23 Aug 2023 19:04:37 GMT

Do you have a trademark you want to protect? Lavelle Law Shareholder Matthew Sheahin, an experienced business litigator, discusses the importance of establishing trademarks for a business and then details how to effectively use the legal process to defend those trademarks. Matt shares the steps business owners should take while he shares some examples of recent cases involving trademark infringement.

ESOPs can be an exit strategy for small and mid-sized business owners

Mon, 21 Aug 2023 17:51:19 GMT

Article Link: https://www.dailyherald.com/business/20230820/esops-can-be-an-exit-strategy-for-small-and-mid-sized-business-owners

“Sit down, Judith!” - Issue Spotting at the Dinner Table: A deep dive into the many facets of Probate Court and Contested Estates

Tue, 15 Aug 2023 19:32:34 GMT

A Lavelle Law Breakfast Briefs Presentation

September 13, 2023

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

Remember that classic SNL skit with “Judith” being silenced at the table? They really captured the dreaded family holiday dinner. Year after year, we all follow the family tradition of packing into that one relative’s slightly too small home, to break the less-than-desirable but proverbial bread with your next of kin. The family holiday dinner is a custom honored across all cultures and divides. Yet, why is this institution—the family holiday dinner—dreaded by so many? Is it the reminder that great Uncle Larry is in an ever-declining state? Is that greedy cousin Susan who seems to have her nose in everyone’s business and private finances? Is it your overbearing brother Tom, who seems to control every aspect of your parents’ lives including when they visit and what they eat?

The truth is everyone at the dinner table represents a probate case or contested estate waiting to happen. Oftentimes, we fail to see the warning signs until we are served with a subpoena or worse yet, a summons.

Understanding how Probate Court works can help you protect your loved ones or keep you from staring down the wrong side of a contested matter. Join us on September 13 for this FREE presentation on Contested Probate matters. We will cover topics ranging from:

Contested Guardianship Proceedings;
Petitions to Suspend or Revoke Powers of Attorney;
Elder Abuse and Financial Exploitation;
Contested Administration of Decedent’s Estates; and
Will Contest or Renunciation

MEET THE PANEL

Brian Warens is a shareholder of Lavelle Law who concentrates his practice in the areas of estate planning, estate and trust administration, special needs planning, estate and gift tax, guardianship, and probate. Brian provides his clients with the knowledge, understanding, and comfort that their wishes will be carried out no matter what may come to pass.

Nataly Kaiser is a vital member of the Trusts and Estates Litigation team at Lavelle Law. As an associate attorney, she handles a variety of contested estate and probate matters and has been very busy lately representing parties in a variety of trust disputes. Nataly provides her clients with a clear roadmap of their options and the risks involved in their legal matters.

Success Story - $3.5 Million Purchase of Shopping Center Outlot Property

Tue, 08 Aug 2023 23:32:26 GMT

Background:

Lavelle Law represented a company in its $3.5 Million acquisition of the outlot building it was leasing for its expanding business.

Challenges:

The purchase was complicated by buyer requiring two loans to fund the purchase, the numerous covenants, conditions and restrictions and redevelopment agreements affecting the parcel, and the handling of property taxes at closing on the newly subdivided land.

Result:

The purchase was successfully completed despite the hurdles. It required extensive negotiations with a large national seller, detailed review of numerous title exception documents, and the coordination of closing two loans for funding the purchase.

Trademark Infringement

Mon, 07 Aug 2023 20:38:43 GMT

Lavelle Law Shareholder Matthew Sheahin, an experienced business litigator discusses the importance of establishing trademarks for a business and then details how to effectively use the legal process to defend those trademarks. Matt shares the steps business owners should take while he shares some examples of recent cases involving trademark infringement.

Podcast Link

Success Story - $40 Million Merger

Fri, 07 Jul 2023 18:00:35 GMT

Background:

Our client, who operated a successful online business-to-consumer operation, was sought after by a foreign entity to grow its business portfolio.

Challenges:

The transaction required the navigation of both U.S. law and foreign jurisdiction. In addition, the parties sought to utilize non-recognition provisions of the Internal Revenue Code.

Result:

The merger was successfully closed and the parties continue to operate a successful online business.

Success Story – Triple Wins for Real Estate Investor Saves Client Millions

Tue, 27 Jun 2023 21:31:39 GMT

Background:

As a real estate investment, our client purchased an undeveloped subdivision comprised of 110 lots. After the deal closed, a third party who had previously worked on similar developments, and contacted our client regarding the investment opportunity, sued our client for 4 million in damages plus a 50% interest in asset.

Challenges:

Lavelle Law represented the Defendants in this lawsuit wherein the Plaintiff was seeking a preliminary injunction as well as monetary damages of over 4 million under a variety of legal theories.

Result:

At the outset of the case, Lavelle Law’s first victory was the Court’s denial of Plaintiff’s request for a TRO and preliminary injunction against the Defendants. This success came after a multiple-day evidentiary hearing with witnesses, testimony, and evidence provided to the Court, and at the conclusion, the Court denied the Plaintiff’s request for a TRO and preliminary injunction against the Defendants.

Lavelle Law’s second victory came when it filed a Motion for Summary Judgment on the Defendants' behalf seeking judgment in favor of Defendant on all claims filed by Plaintiff. Again, the Court ruled in favor and entered judgment in favor of Defendant on all claims except one count for unjust enrichment.

Lavelle Law’s final victory was winning at trial on the one remaining cause of action asserted by the Plaintiff against the Defendants. This resulted in a judgment being entered in the Defendants’ favor and against the Plaintiff. Despite being sued for millions and half of its ownership interest in the development, Lavelle Law’s clients paid no money to Plaintiff and retained 100% ownership interest in the subdivision.

Protect Your Legacy - Consider an ESOP When Selling Your Business

Fri, 23 Jun 2023 17:49:23 GMT

In this video podcast, Lavelle Law attorneys Steven Migala and David O'Leary review the advantages and strategies of using an Employee Stock Ownership Plan as a business succession option. ESOPs are a mechanism by which owners can sell their business to employees allowing their legacy to be protected. Learn about the advantages of the approach and some of the mechanisms involved in an ESOP transaction from two very experienced attorneys.

Happy Summer from Lavelle Law and Friends!

Wed, 21 Jun 2023 12:30:00 GMT

As we celebrate the 2023 Summer Solstice and officially usher in summer, we share with you some of the amazing places the Lavelle Law Koozie has traveled so far this year. Thanks to our adventurous family and friends who accepted the Lavelle Law Koozie Challenge! Where would you like to go? Happy Summer friends! Cheers!

ESOPs as a Business Succession Option

Fri, 16 Jun 2023 20:36:07 GMT

Employee Stock Ownership Plans are reviewed by Lavelle Law attorneys Steven Migala and David O'Leary, both of whom have extensive experience with this business succession option. ESOPs are a mechanism by which owners can sell their business to employees allowing their legacy to be protected. Learn about the advantages of the approach and some of the mechanisms involved in an ESOP transaction.

Podcast Link

5 Must-Address Items in Your Attorney Review Letter - Expert Advice with Chance Badertscher from Lavelle Law

Thu, 08 Jun 2023 17:10:03 GMT

In this Tuesday Tip episode of Straight Up Chicago Investor, real estate attorney Chance Badertscher outlines the five items every investor should address in their Attorney Review Letter.

Podcast Link

Business Law Team Grows at Lavelle Law

Mon, 05 Jun 2023 21:49:05 GMT

Article Link: https://www.dailyherald.com/submitted/20230601/business-law-team-grows-at-lavelle-law

Minimize Taxes with Estate Planning Tools

Tue, 23 May 2023 22:29:54 GMT

Once you pass away, your assets, including any businesses you own, can be passed on to your spouse, children, or anyone else you designate. However, they may be subject to taxes unless you prepare a sound estate plan that uses the right instruments. Lavelle Law Shareholder Brian Warens discusses how to minimize tax obligations for your heirs in this detailed estate planning discussion.

Podcast Link

Minimize Taxes with Proactive Estate Planning

Tue, 23 May 2023 22:22:44 GMT

Once you pass away, your assets, including any businesses you own, can be passed on to your spouse, children, or anyone else you designate. However, they may be subject to taxes unless you prepare a sound estate plan that uses the right instruments. In this video podcast, Lavelle Law Shareholder Brian Warens details how to minimize tax obligations for your heirs by using the proper estate planning tools.

Lavelle Law Podcasts Take Deep Dive into Legal Topics

Thu, 18 May 2023 16:24:32 GMT

Daily Herald article link: https://www.dailyherald.com/submitted/20230516/lavelle-law-podcasts-take-deep-dive-into-legal-topics

Shareholder Agreements and Why Your Business Needs One

Fri, 05 May 2023 21:36:47 GMT

When people start a business their focus is on the here and now. If a task is not critical, it often gets overlooked or deferred. Lavelle Law Managing Partner Ted McGinn and Associate Meghan Hartnett discuss the importance of creating a sound shareholder agreement right from the start. They'll discuss what should be included and how to make sure all parties are represented and protected.

Why Your Company Should Have a Shareholder Agreement

Thu, 27 Apr 2023 20:55:45 GMT

Podcast Link

Financing Options for Home Buyers

Thu, 27 Apr 2023 17:49:40 GMT

Mortgage interest rates have more than doubled in the last year causing some buyers to sit out for now while others look for the best way to finance their new home. Lavelle Law Shareholder Kelly Anderson and Sheila DuPaw of Guaranteed Rate discuss financing a home purchase in today's market including the seller buydown option. Learn more about this financing tool and other approaches in this informative discussion.

Podcast Link

Financing Options for Home Buyers in Today’s Market

Wed, 26 Apr 2023 19:35:46 GMT

Mortgage interest rates have more than doubled in the last year causing some buyers to sit out for now while others look for the best way to finance their new home. Lavelle Law Shareholder Kelly Anderson and Sheila DuPaw of Guaranteed Rate discuss financing a home purchase in today's market including the seller buy-down option. Learn more about this financing tool and other approaches in this informative discussion.

Business After Hours - Play Ball with Lavelle Law!

Fri, 21 Apr 2023 18:06:32 GMT

April 18, 2023
5 PM - 7 PM
1933 N. Meacham Rd. Suite 600
Schaumburg, IL 60193

We had a wonderful time hosting the Schaumburg Business Association’s Business After Hours - aka “Play Ball with Lavelle Law” on April 18! It was a terrific turnout with over 120 in attendance! Thanks to all who joined us in our friendly confines as we celebrated our professional connections with a little baseball flair. And congratulations to our raffle winners, Allen and Melanie!

Lavelle Law Hosts Free Seminar About ESOPs and Their Role in Transitioning a Business

Tue, 11 Apr 2023 17:51:42 GMT

Press Release: https://www.dailyherald.com/submitted/20230406/lavelle-law-hosts-free-seminar-about-esops-and-their-role-in-transitioning-a-business

Transitioning a Business: Is an ESOP Right for You?

Fri, 24 Mar 2023 18:29:43 GMT

A Lavelle Law Breakfast Briefs Presentation

May 10

7:45 AM – 9:00 AM

1933 N. Meacham Rd.

Suite 127

Schaumburg, IL 10173

An Employee Stock Ownership Plan (“ESOP”) is a type of qualified employee benefit plan that is designed to invest primarily in the stock of the sponsoring company. It provides employees with an ownership interest in the company, giving them an incentive to be more productive. It is also a retirement plan and shareholder transition vehicle which may provide selling shareholders and the company with significant tax benefits. Join Lavelle Law attorneys Steven Migala and David O’Leary, together with GreatBanc Trust Company representative Steve Ryan, as they offer strategies for determining if an ESOP is the right structure for your business, or perhaps your client’s business. Topics they will cover include:

The benefits of an ESOP
What makes a company a good ESOP candidate
Tax benefits
ESOP financing
The parties involved in an ESOP transaction
Transaction responsibilities
Timing of an ESOP transaction

MEET THE PANEL

Steven Migala

Attorney Steven Migala is one of the shareholders of Lavelle Law, and is an experienced business attorney practicing in the following areas:

1. Corporate / M&A: Steve counsels business organizations in all stages of their life cycle, from start-up issues, contract negotiation and documentation, assets and equity sales/purchases, and mergers and joint ventures.

2. Banking: Steve represents banks and borrowers in commercial lending and workout matters, including negotiating and documenting a variety of loans and forbearance agreements, as well as handling foreclosures and other collection actions.

3. Real Property: Steve represents sellers, buyers, landlords, and tenants with acquisitions, dispositions, and leasing of real estate, as well as with related municipal zoning matters.

4. Estate Planning: Steve assists business owners with their succession planning and exit strategy, as well as their estate plans, probate, and trust administration.

Steve is a former chair of the Chicago Bar Association’s Corporation and Business Law Committee and is a Commissioner on the City of Elgin's Planning and Zoning Commission.

David O’Leary

Attorney David O’Leary has over 40 year’s experience advising clients on innovative and cost-effective ways of planning and solving problems with respect to ESOPs, ERISA, executive compensation, taxation, family business, and estate planning issues.

ESOPs - There are many parties to an ESOP transaction. Whether you are a company wanting to adopt an ESOP, a selling shareholder wanting to sell stock to the ESOP, a bank wanting to loan money to finance the ESOP transaction, or the ESOP trustee acting on behalf of the ESOP, Mr. O’Leary has the knowledge and expertise to advise you. He has been involved in all facets of the ESOP cycle and was the co-chairman of the ESOP Team at Holland & Knight, LLP.

Executive Compensation and ERISA - Mr. O’Leary has had significant experience with all types of benefit plans, including 401(k) and other qualified plans, nonqualified deferred compensation plans, and equity-based incentive arrangements. He is very knowledgeable of ERISA fiduciary liability issues, plan asset rules, avoidance of prohibited transactions, and multiemployer pension plan withdrawal issues. He provides clients with creative and practical solutions to all types of ERISA issues. He is the past chairman of the Chicago Bar Association Employee Benefits Committee. David is Bar certified in both Illinois and Florida, is a CPA, and was named Illinois Leading Lawyer in 2018.

Steve Ryan

Steve serves as a Senior Vice President in the Client Services group at GreatBanc, focusing on managing client relationships and ESOP transactions. Throughout his career, he has acted as a trusted advisor to many privately-held companies to assist them in growth initiatives, business transitions, and liquidity events. Steve has helped business owners transition their business via either an internal transition (ESOP/MBO/ Family) or external (strategic/PE/ Family Office). He has over 25 years of new business and banking experience with clients throughout the country. Steve has led commercial banking teams that interact with business owners and C-level executives of private and public companies. Throughout his career, he has acted as a trusted advisor to many privately-held companies to assist them in growth initiatives, business transitions, and liquidity events. Steve frequently presents on a variety of topics including board governance, ownership transition alternatives, financing ESOPs, and capital allocation in a wide variety of venues including the National Center for Employee Ownership (NCEO) The ESOP Association & The Private Directors Assoc. Steve is a board member on S7 an ESOP Company located in Idaho, & the Missouri Center for Employee Ownership. He also Chairs the National ESOP Committee for the Private Directors Association. In addition, he is a member of the Snow City Arts organization where he served as a treasurer. He is also a Board member of the Indian Boundary Y.M.C.A.

Illinois Supreme Court Rulings on BIPA

Fri, 24 Mar 2023 15:38:45 GMT

The Illinois Biometric Information Privacy Act was enacted several years ago but as often happens with new laws, it is being defined through a series of court cases. Lavelle Law attorney Thomas Fox talks about several of those cases and what the outcomes mean for employers and the future enactment of the law.

Podcast Link

Finding a Divorce Attorney

Tue, 21 Mar 2023 22:34:55 GMT

If you or someone you know is confronting divorce, or is considering filing for a divorce, watch this short video for guidance on how to start the process. Finding the right attorney to represent you and to advocate on your behalf is critical. To learn more and to schedule a free initial consultation, contact family law attorney Annette Corrigan at acorrigan@lavellelaw.com or 847-705-7555.

Lavelle Law Adds Attorney Eso Akunne to Business and Real Estate Teams

Mon, 20 Mar 2023 21:43:22 GMT

Article Link: https://www.dailyherald.com/submitted/20230320/lavelle-law-adds-attorney-eso-akunne-to-business-and-real-estate-teams

Dismissing Student Loan Debt in Bankruptcy

Tue, 14 Mar 2023 23:15:35 GMT

Until recently, it was very unlikely that student loan debt could be discharged in a bankruptcy proceeding. In this video podcast, Lavelle Law attorney Timothy Hughes discusses a new change to laws that provide an opportunity for some filers to have a clearer path to dismissing that debt.

Can Student Loans be Discharged in Bankruptcy?

Fri, 03 Mar 2023 22:37:23 GMT

Until recently, it was very unlikely that student loan debt could be discharged in a bankruptcy proceeding. Lavelle Law attorney Timothy Hughes discusses a new change to laws that provide an opportunity for some filers to have a clearer path to dismissing that debt.

Podcast Link

Happy National Love Your Pet Day 2023!

Mon, 20 Feb 2023 18:31:35 GMT

Happy National Love Your Pet Day from Lavelle Law and our furry family members! Check out our adorable family photos as we celebrate our beloved pets.

Speaking of pets, have you ever considered a Pet Trust? Estate Planning attorney Jackie Luthringshausen explains how setting up a Pet Trust for your beloved pet is more common than you may think! For more information about Pet Trusts, listen to this podcast or contact Jackie Luthringshausen at jluthringshausen@lavellelaw.com or 847-705-7555.

Issues in High Asset/Net Worth Divorce

Tue, 07 Feb 2023 22:39:41 GMT

A Lavelle Law Breakfast Briefs Presentation - March 8, 2023

MEET THE PANEL

Joseph A. Olszowka

Attorney Joseph Olszowka has over 30 years of experience handling family law cases. Before joining Lavelle Law’s Family and Divorce Law Practice Group, Mr. Olszowka was the Principal Attorney at the Law Offices of Joseph A. Olszowka, Jr., where he successfully litigated hundreds of cases, including complex divorce, parental allocation, parentage, child support, business valuation, adoption, and domestic violence cases.

Olszowka attended John Marshall Law School, has a certificate in family law, is on the DuPage and Will County approved Child Representative/Guardian ad Litem appointment list, and is an approved mediator in DuPage County and Will County for family law cases.

Colleen M. Breems

Attorney Colleen Breems is a vital member of our Family and Divorce Law team. She handles high net worth divorce cases, prenuptial agreements, and postnuptial agreements and has skillfully handled family law cases of every shape and size. Ms. Breems is on the Cook County approved Child Representative/Guardian ad Litem appointment list and accepts appointments by Judges in Cook County to represent minor children in domestic relations matters. She also is certified in Mediation Skills Training from Northwestern University.

Ms. Breems has been recognized by the Chicago Bar Association, winning the David C. Hilliard Award for Outstanding Committee Service in 2022, and serves as Chair of the Young Lawyers Section Family Law Committee. Colleen has sat on DePaul University Family Law Center Advisory Board as an alumni advisor, and currently serves as Vice President of the Advocacy Council at the Junior League of Chicago. Colleen also provides pro bono legal services through Chicago Volunteer Legal Services.

Heather G. Walser

Attorney Heather Walser is a Lavelle Law Shareholder with more than 20 years of experience. She focuses her practice in the areas of estate planning, wills and trusts, estate and trust administration, and elder law, and is the shareholder in charge of the Estate Planning Practice Group at the firm. Heather works closely with her clients to provide comprehensive solutions for protecting them and implementing their wishes. Heather is committed to understanding all details and aspects of her clients’ issues and providing them with the highest level of service for their legal needs. She is frequently consulted by our family law attorneys when complicated issues arise pertaining to dividing large assets including the sale of a business, retirement accounts, and pension plans.

Your Small Business: Finding the Best “Brick and Mortar” Location

Tue, 07 Feb 2023 21:47:33 GMT

Learn about the main leasing, operational and legal considerations for small businesses looking to lease, buy or relocate their business. Benna Hermanson of BRH Real Estate Consulting with Realty Associates Network Inc. and Frank Portera & Kelly Anderson of Lavelle Law will share insights and answer your questions about finding and securing the perfect space.

Alternative Approaches to Divorce Part 3 – Dividing Assets

Wed, 25 Jan 2023 23:55:49 GMT

This video series has focused on alternative approaches to divorce other than the traditional two-attorney courtroom process. Approaches include uncontested divorces, mediation, and collaborative divorce. Following those approaches, our participants discuss the division of property and assets in this final installment. Join Lavelle Law attorneys Patti Levinson and Annette Corrigan and licensed family and marriage therapist Amy Wilhelmi for this insightful discussion.

Lavelle Law Attorneys Host Event for Small Business Owners Focused on Finding Retail Space

Wed, 25 Jan 2023 22:08:18 GMT

Article Link: https://www.dailyherald.com/submitted/20230124/lavelle-law-attorneys-host-event-for-small-business-owners-focused-on-finding-retail-space

Podcast series offers alternative approaches to divorce

Wed, 25 Jan 2023 21:43:13 GMT

Article Link: https://edition.pagesuite.com/popovers/dynamic_article_popover.aspx?artguid=cba57cc5-77f7-4056-b59a-1390eeb16183&appid=1031

Alternative Approaches to Divorce Part 3

Tue, 24 Jan 2023 16:46:18 GMT

This podcast series has focused on alternative approaches to divorce other than the traditional two-attorney courtroom process. Approaches include uncontested divorces, mediation, and collaborative divorce. Following those approaches, our participants discuss the division of property and assets in this final installment. Join Lavelle Law attorneys Patti Levinson and Annette Corrigan and licensed family and marriage therapist Amy Wilhelmi for this insightful discussion.

Podcast Link

Alternative Approaches to Traditional Divorce Part 2 – Parenting

Wed, 18 Jan 2023 00:02:40 GMT

In the 2nd installment of the Lavelle Law series on alternative approaches to divorce, attorneys Patti Levinson and Annette Corrigan are joined by licensed marriage and family therapist Amy Wilhelmi to discuss parenting responsibilities during and after a divorce. In an alternative approach such as collaborative divorce or mediation, parents can reach agreements on parenting time and decision-making that better protect their children from the trauma of divorce.

Alternative Approaches to Divorce Part 2 – Parenting

Tue, 17 Jan 2023 19:07:58 GMT

Eliminate Your Tax Debt by Filing for Bankruptcy

Thu, 12 Jan 2023 21:44:21 GMT

In this video, Lavelle Law Managing Partner Ted McGinn and Shareholder Timothy Hughes wrap up their series on taxes by discussing bankruptcy as an option for eliminating a tax debt. They explain what requirements need to be met and outline the advantages and disadvantages of using this tactic.

Filing Bankruptcy Due to Tax Debt

Thu, 12 Jan 2023 18:29:57 GMT

In this podcast, Lavelle Law Managing Partner Ted McGinn and Shareholder Timothy Hughes wrap up their series on taxes by discussing bankruptcy as an option for eliminating a tax debt. They explain what requirements need to be met and outline the advantages and disadvantages of using this tactic.

Podcast Link

How to Resolve a Tax Debt – Part Two of our Tax Series

Wed, 04 Jan 2023 21:27:08 GMT

In part two of the Lavelle Law video series on taxes, Managing Partner Ted McGinn and Shareholder Timothy Hughes discuss ways to address a tax debt. There are several options available based on the conditions of the debt. Watch this video for strategies to resolve a tax debt.

Tax Series Part Two - Tax Debt

Wed, 28 Dec 2022 18:21:31 GMT

In part two of the Lavelle Law series on taxes, Managing Partner Ted McGinn and Shareholder Timothy Hughes discuss ways to address a tax debt. There are several options available based on the conditions of the debt. Learn more about them in this discussion.

Podcast Link

Cheers to a New Year from Around the World!

Tue, 27 Dec 2022 16:04:48 GMT

Happy New Year!

Our clients, family, and friends joined us in a Lavelle Law Can Koozie Challenge this year. Kind of like Flat Stanley, but with a twist. Take a look to see how many places you recognize. From our hometown celebrations, to Africa and Brazil, we wish you a safe, healthy, prosperous, and adventurous New Year!

Alternative Approaches to a Traditional Divorce - Part 1

Thu, 15 Dec 2022 23:51:06 GMT

Divorce is never an easy process but in some cases, it is not contentious. In this first segment of a 3-part series, Lavelle Law attorneys Patti Levinson and Annette Corrigan are joined by marriage and family therapist Amy Wilhelmi to discuss alternatives to the traditional process. They share thoughts on collaborative divorce, mediation, and other approaches that can be far less stressful and difficult for all involved.

Alternative Approaches to Divorce Pt 1

Mon, 12 Dec 2022 22:21:26 GMT

Divorce is never an easy process but in some cases, it is not contentious. In this first segment of a 3-part podcast series, Lavelle Law attorneys Patti Levinson and Annette Corrigan are joined by marriage and family therapist Amy Wilhelmi to discuss alternatives to the traditional process. They will share thoughts on collaborative divorce, mediation, and other approaches that can be far less stressful and difficult for all involved.

Podcast Link

The Tax Audit – Part One

Mon, 12 Dec 2022 21:56:51 GMT

Why are certain individuals or businesses selected to be audited by the IRS? If you receive notification of an audit, how do you proceed? In this video, Lavelle Law attorneys Ted McGinn and Tim Hughes discuss the audit process in part one of a new 3-part series on tax audits.

The Tax Audit

Wed, 07 Dec 2022 18:04:33 GMT

Why are certain individuals or businesses selected to be audited by the IRS? If you receive notification of an audit, how do you proceed? Listen in, as Lavelle Law attorneys Ted McGinn and Tim Hughes discuss the audit process in part one of a new 3-part series on tax audits.

Podcast Link

Attorney Griffin Flais Joins Lavelle Law

Thu, 01 Dec 2022 23:29:06 GMT

Article Link: https://www.dailyherald.com/submitted/20221129/attorney-griffin-flais-joins-lavelle-law

Lavelle Law Adds New Attorney to Litigation Group

Mon, 28 Nov 2022 22:38:58 GMT

Article Link: https://www.dailyherald.com/submitted/20221128/lavelle-law-adds-new-attorney-to-litigation-group

Lavelle Law Attorney Elected to Chamber Board

Mon, 28 Nov 2022 18:15:50 GMT

Lavelle Law Associate Frank Portera has been elected to serve on the Board of Directors for the Arlington Heights Chamber of Commerce. Portera has been active in the 500+ member group for several years. "Frank is a great example of the commitment our attorneys and partners make to local communities," said Ted McGinn, managing partner of the 37-attorney firm. "Local chambers of commerce are really the heartbeat of business in the communities we serve and I am pleased to see Frank take on a leadership role in an organization as highly-regarded as the Arlington Heights chamber."

Lavelle Law Charities Food Drive 2022

Mon, 21 Nov 2022 16:36:16 GMT

The 2022 Lavelle Law Charities Food Drive benefiting the Schaumburg Township Food Pantry wrapped up on October 28 with overwhelming success! Watch this video for a glimpse of our food drive in action as Lavelle Law employees delivered over 10K worth of food items, a check for $11,380 in additional funds, as well as over 75 boxes of donations from around the community. Thank you to our sponsors and to everyone who donated. Together, we made a difference!

Estate Administration 101 - A Lavelle Law Breakfast Briefs Presentation

Mon, 14 Nov 2022 19:14:19 GMT

Do you know what happens to your assets when you die? Have you been named Executor of someone’s estate or Trustee of their Trust? Watch this presentation and learn the dos and don’ts of estate administration. Lavelle Law attorneys Brian Warens, Nataly Kaiser, and Jonathan Lee discuss what you need to know about Probate, Heirship, and what happens to your property upon your death. They also address what it means to be an Executor or Trustee, to help you make an informed decision before accepting this important role.

Estate administration can be a very complicated area of law to navigate, especially if an estate plan was not properly drafted, or if the estate is contested. Each state has its own laws regarding aspects of estate planning, and in Illinois, there has been an increase in Will Contests, Guardianship Litigation, Powers of Attorney Disputes, and Trust Administration Disputes.

If you have any follow-up questions or would like to set up a consultation, call us at 847-705-7555 or email us at info@lavellelaw.com .

Don’t Drop the Ball - File Your Annual Report on Time!

Wed, 09 Nov 2022 18:54:04 GMT

Even the Chicago Bears can drop the ball and make a costly mistake by not filing their annual report on time. In this video, business law attorney Frank Portera explains how important it is to file your annual report on time to avoid late penalties, extra fees, and even dissolution or the loss of your limited liability shield. Learn more about Lavelle Law’s corporate compliance program, which keeps you in good standing with the Illinois Secretary of State and gives you peace of mind knowing we have your back. We offer this package as a flat fee service for Illinois corporations and LLCs. Contact Frank Portera at 847-705-7555 or fportera@lavellelaw.com to sign up and get the ball moving.

Lavelle Law Charities Rallies Community for Successful Food Drive

Mon, 07 Nov 2022 17:54:47 GMT

Article Link: https://www.dailyherald.com/submitted/20221103/lavelle-law-charities-rallies-community-for-successful-food-drive

Navigating Election Law

Thu, 06 Oct 2022 21:48:23 GMT

Are you a candidate running for office or thinking about running? In Illinois, there are over 1,300 municipal governments and hundreds of state offices, each of which field multiple candidates. In this video, election law attorney, Jack Lydon, provides an overview of election law and describes how he can assist you and your campaign. Want to find out more, contact Jack at jlydonj@lavellelaw.com or 847-705-7555.

Lavelle Law Charities Kicks-off Annual Schaumburg Food Drive

Thu, 06 Oct 2022 16:51:51 GMT

Daily Herald Article Link: https://www.dailyherald.com/submitted/20221004/lavelle-law-charities-kicks-off-annual-schaumburg-food-drive

The 2022 Lavelle Law Charities Food Drive is Underway

Tue, 04 Oct 2022 18:41:47 GMT

October 4 - October 28

The 2022 Lavelle Law Charities Food Drive benefiting the Schaumburg Township Food Pantry runs from October 4 – October 28. The Schaumburg Township Food Pantry serves over 800 families a month at risk of hunger. Our goal is to help bring food, dignity, and hope to residents in need who rely on the food pantry. All nonperishable food items, paper goods, personal care items, baby formula, and diapers are needed. Visit our f ood drive web page for more information and a list of our collection box locations. www.schaumburgfooddrive.org

Post-pandemic reality

Wed, 14 Sep 2022 15:26:58 GMT

Lavelle keynote speaker at Good Morning Schaumburg

From remote working to quiet quitting, the new realities of business leadership in a post-pandemic world were addressed Tuesday before members of the Schaumburg Business Association by the founder of Schaumburg-based Lavelle Law.

With all deference to The Who and the British band’s hit “Won’t Get Fooled Again,” Kerry Lavelle said the new boss is no longer the same as the old boss.

Full Article: https://edition.pagesuite.com/popovers/dynamic_article_popover.aspx?artguid=0bfeeb6c-b7ca-48b5-a77b-e9bba317ab1a&appid=1031

Gomberg Sharfman Team joins Lavelle Law

Mon, 15 Aug 2022 17:44:04 GMT

Full Press Release: https://www.dailyherald.com/submitted/20220812/gomberg-sharfman-team-joins-lavelle-law

Choosing a Guardian for Minor Children

Tue, 19 Jul 2022 16:05:54 GMT

Have you considered who should care for your children if you are ever unable to do so? While it isn’t fun to talk about, proactive estate planning allows you to make that important decision for yourself. Contact estate planning attorney, Heather A. McCollum, at hmccollum@lavellelaw.com or 847-705-7555, to learn more about how the proper documents can help save you and your family from unnecessary costs and disagreements.

Special Needs Trusts

Thu, 23 Jun 2022 20:34:32 GMT

If you or someone you know has a loved one with special needs, you should consider a special needs trust. A special needs trust protects your loved one and allows you to provide assistance for them without disqualifying them for the government benefits they may be receiving. This legal document will give you peace of mind knowing that your loved one will be cared for, even when you are no longer around to do so. If you would like more information about special needs trusts or other estate planning matters, contact estate planning attorney, Heather A. McCollum, at hmccollum@lavellelaw.com or 847-705-7555.

Buying or Selling a Business - The Closing

Wed, 08 Jun 2022 15:43:49 GMT

In the final installment of our 3-part series on buying or selling a business, we discuss the closing. Lavelle Law Managing Partner Ted McGinn, Bill Germanetti, Principal at Impact Business Coaching, Inc., and David Gronski, President, North Coast Capital Advisors, Ltd discuss what takes place, who attends, and how to prepare.

Podcast Link

The Closing

Fri, 03 Jun 2022 22:03:56 GMT

In the final installment of our 3-part series on buying or selling a business, business experts discuss the closing process. Lavelle Law Managing Partner Ted McGinn, Bill Germanetti, Principal at Impact Business Coaching, Inc., and David Gronski, President, North Coast Capital Advisors, Ltd. discuss what takes place, who attends, and how to prepare.

Estate Administration 101

Thu, 12 May 2022 16:18:48 GMT

A Lavelle Law Breakfast Briefs Presentation

June 15, 2022

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

Do you know what happens to your assets when you die? Have you been named Executor or Trustee of someone’s estate? Attend our Breakfast Briefs and learn the dos and don’ts of estate administration. Lavelle Law attorneys Brian Warens and Nataly Kaiser will discuss what you need to know about Probate, Heirship, and what happens to your property upon your death. You will also get the rundown on what it means to be an Executor or Trustee, to help you make an informed decision before accepting this important role.

Learn how to protect yourself and/or your loved one’s wishes. Join us on June 15 for this FREE presentation. A complimentary continental breakfast will be offered. Registration is required as seating is limited. No walk-ins.

MEET THE PANEL

Nataly Kaiser is a vital member of the Trusts and Estates Litigation team at Lavelle Law. As an associate attorney, she handles a variety of contested estate and probate matters and has been very busy lately representing parties in a variety of trust disputes. Nataly provides her clients a clear road map of their options and the risks involved in their legal matters.

Due Diligence

Tue, 03 May 2022 16:33:34 GMT

When businesses are bought, sold, or merge, a due diligence period allows both parties to review all elements of the entities involved in the transaction. Lavelle Law Managing Partner Ted McGinn and Bill Germanetti, Principal at Impact Business Coaching, Inc. take you through the critical elements of the due diligence process.

The Due Diligence Process

Thu, 28 Apr 2022 22:29:06 GMT

Guilty Pleas in Illinois Circuit Courts

Wed, 20 Apr 2022 22:14:08 GMT

During this episode of Liberty and the Law, defense attorney James Doerr discusses various aspects of the consequences of guilty pleas in Illinois Circuit Courts.

Podcast Link

Lavelle Law Expands Family Law Group

Fri, 08 Apr 2022 16:23:40 GMT

Article Link: https://www.dailyherald.com/submitted/20220406/lavelle-law-expands-family-law-group

Are You in Debt to the IRS?

Fri, 18 Mar 2022 16:17:25 GMT

If you owe the IRS an amount you cannot pay, there may be options available to you. Attorney Tim Hughes discusses a few options that are available in some cases. Whether you need to discharge 1040 taxes, resolve an IRS levy, file bankruptcy, seek an abatement, or Offer In Compromise, Tim can help. Find out more information by contacting attorney Tim Hughes at 847-705-7555 or thughes@lavellelaw.com .

Why do I Need Powers of Attorney Documents?

Mon, 14 Mar 2022 20:46:34 GMT

If you are over the age of 18, you should have a Power of Attorney for Health Care and a Power of Attorney for Property. Having both of these POAs in place is a smart, proactive move, and strongly encouraged to avoid the expense and headache of probate court. Give yourself peace of mind knowing that YOU determined who should make healthcare and/or financial decisions on your behalf, should you become incapacitated, instead of a judge. Don’t delay, set up your POAs and contact estate planning attorney, Heather A. McCollum, at hmccollum@lavellelaw.com or 847-705-7555.

Business After Hours - Play Ball with Lavelle Law!

Fri, 11 Mar 2022 23:17:21 GMT

EVENT RECAP: On April 7, 2022, Lavelle Law hosted an SBA Business After Hours – AKA “Play Ball with Lavelle Law” in the friendly confines of our Schaumburg office. It was also Opening Day for baseball and many of our guests got into the spirit this year, wearing their favorite team’s jersey! Visit our Facebook album for more photos.

BATTER UP! Join us as we celebrate MLB Opening Day with a GRAND SLAM networking event. We have teamed up with the Schaumburg Business Association to HIT ONE OUT OF THE PARK on April 7. Here is a glimpse of our LINEUP for this Business After Hours and what you will find in our FRIENDLY CONFINES:

RAFFLE: “Round the Bases,” and meet our COACHES for a chance to win a raffle prize!

SIGNATURE COCKTAIL: We will be offering a delicious signature cocktail that is sure to be a HIT! And of course, there will be plenty of “COLD BEER HERE” as well as wine.

CONCESSIONS: Delicious tasty bites will be provided in partnership with Tasty Catering!

We hope you can join us. Rain or shine, we will PLAY BALL!

April 7, 2022
5 PM - 7 PM

1933 N. Meacham Rd.*
Suite 600
Schaumburg, IL 60173

Registration is required. Register through the Schaumburg Business Association.

*Please be a dvised that the bridge on the Drummer Drive entrance will be closed to traffic while the bridge is being rebuilt. Access to 1933 North Meacham is available utilizing Thoreau Drive from both its Meacham Road and Algonquin Road intersections

Attorney Brian Warens Becomes a Shareholder at Lavelle Law

Wed, 09 Mar 2022 18:58:15 GMT

Article Link: https://www.dailyherald.com/submitted/20220303/attorney-brian-warens-becomes-a-shareholder-at-lavelle-law

Happy International Women’s Day from Lavelle Law

Tue, 08 Mar 2022 18:19:54 GMT

Lavelle Law recognizes all the smart, hardworking, diverse women around the world as we celebrate International Women's Day 2022. We know you are breaking barriers and biases and we cheer you on. Have a look at some of our amazing team members that deliver results for Lavelle Law and our clients. Cheers to you all - today and every day!

What is a Letter of Intent?

Tue, 01 Mar 2022 19:09:20 GMT

Before entering detailed negotiations to buy, sell, or merge businesses, it is advisable to have a clear letter of intent drafted. In this podcast, Ted McGinn, Managing Partner of Lavelle Law, Bill Germanetti, Principal at Impact Business Coaching, and David Gronski, President, North Coast Capital Advisors discuss the important elements of an LOI.

Podcast Link

Letters of Intent

Tue, 01 Mar 2022 19:01:55 GMT

Before entering detailed negotiations to buy, sell, or merge businesses, it is advisable to have a clear letter of intent drafted. Ted McGinn, Managing Partner of Lavelle Law, Bill Germanetti, Principal at Impact Business Coaching, and David Gronski, President, North Coast Capital Advisors discuss the important elements of an LOI.

Attorney Frank Portera Accepts Appointments to Serve Arlington Heights Groups

Tue, 22 Feb 2022 22:04:52 GMT

Article Link: https://www.dailyherald.com/submitted/20220217/attorney-frank-portera-accepts-appointments-to-serve-arlington-heights-groups

2022 Cook County Home Reassessment

Mon, 07 Feb 2022 22:39:31 GMT

If you own a home in Chicago’s Northwest suburbs, in Cook County, an assessor will be revaluing your house during the 2022 reassessment period. If you believe that you have been unreasonably assessed too high, contact attorney Tim Hughes, to see if you are able to contest the assessment to lower your taxes. For a free consult or more information, contact Tim at 847-705-7555 or thughes@lavellelaw.com .

What is the Difference Between a Will and a Trust?

Wed, 02 Feb 2022 19:25:22 GMT

Do I need a will and trust? In the state of Illinois, the answer might not be as simple as you think. Estate planning attorney, Heather A. McCollum, explains how setting up a will and trust can keep your family’s information private, and save you from the costly, and long process of probate court. Interested in learning more? Contact Heather at hmccollum@lavellelaw.com or 847-705-7555 to set up your free initial consultation.

Employment Law Update 2022

Thu, 27 Jan 2022 16:55:16 GMT

A Lavelle Law Breakfast Briefs Presentation

February 23, 2022

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

New Year, new laws. And where are we going with mask and vaccine mandates? Join attorneys from Lavelle Law to discuss changes in the law and their effect on employment and severance agreements, the urgency of having a good employee handbook, and the status of mask and vaccine mandates.

Join us on February 23 for this FREE presentation. A complimentary continental breakfast will be offered. Registration is required as seating is limited. No walk-ins.

MEET THE PANEL

Ted McGinn is the managing partner and a shareholder of Lavelle Law and focuses his practice on business formations, capital structuring, mergers and acquisitions, and other transactions. Many of his clients operate in the health care industry including physicians, therapists, and nurses. Moreover, he provides guidance in areas of intellectual property including trademarks and copyrights. He also represents individuals and businesses in bankruptcy and other debtor relief and wind-down strategies. Mr. McGinn serves on the Board of Directors for the Schaumburg Business Association and is a member of the Village of Palatine Zoning Board of Appeals. He is also a former Adjunct Professor with The John Marshall Law School and a former chair of the Chicago Bar Association Asset Protection Committee.

Steve Migala is an experienced business attorney and one of the shareholders of Lavelle Law. Steve counsels business organizations in all stages of their life cycle, from start-up issues, contract negotiation and documentation, assets and equity sales/purchases, and mergers and joint ventures. He also represents banks and borrowers in commercial lending and workout matters. Steve's real estate practice includes representing sellers, buyers, landlords, and tenants with acquisitions, dispositions, and leasing of real estate, as well as with related municipal zoning matters. He assists business owners with their succession planning and exit strategy, as well as their estate plans, probate, and trust administration. Steve is a former chair of the Chicago Bar Association’s Corporation and Business Law Committee and is a Commissioner on the City of Elgin's Planning and Zoning Commission.

Chapter 13 Bankruptcy May Save Your House

Tue, 18 Jan 2022 20:10:54 GMT

If you have been falling behind on your mortgage payments, a Chapter 13 Bankruptcy may be the right solution to save your house. Attorney Tim Hughes shares the benefits of a Chapter 13 when you are concerned about losing your house. For more information, or to schedule a free consultation, contact Tim at thughes@lavellelaw.com or 847-705-7555.

Thoughts About Jury Trials

Fri, 14 Jan 2022 22:07:03 GMT

In this podcast, defense attorney James Doerr discusses the legal twists and turns of jury trials and recent jury decisions that have made headlines.

Podcast Link

Is Chapter 7 Bankruptcy the Right Solution?

Wed, 05 Jan 2022 17:26:33 GMT

Have you fallen behind on your payments and creditors are chasing after you? Filing Chapter 7 Bankruptcy may be the right solution for you. You could get a fresh start and move forward to rebuild your credit without worrying about creditors. If you believe a Chapter 7 is the right solution for you, or want to learn more, contact Tim Hughes at 847-705-9698 or thughes@lavellelaw.com for a free consultation.

Residential Real Estate Today: A Hot Market - A Lavelle Law Breakfast Briefs Presentation

Tue, 04 Jan 2022 21:34:49 GMT

Recorded Presentation

The real estate market has thrived during the pandemic – but not without a new set of complexities, in addition to the traditional issues that arise with the buying and selling of homes. But with legal guidance, you can get through these transactions with fewer bumps and more protections. You can also jump into this hot market as an investor, so long as you know how to do it safely. Watch this Breakfast Briefs presentation as Lavelle Law’s real estate attorneys, Kelly Anderson, Chance Badertscher, and Kevin Mitrick discuss how to go into what may be the biggest purchase or sale of your life, with confidence. If you have any follow-up questions or would like to set up a consultation, call us at 847-705-7555 or email us at info@lavellelaw.com .

Lavelle Law Adds Attorney Clayton Thomas Dant to Personal Injury and Litigation Teams

Wed, 29 Dec 2021 23:36:32 GMT

Full Article: https://www.dailyherald.com/submitted/20211206/lavelle-law-adds-attorney-clayton-thomas-dant-to-personal-injury-and-litigation-teams

Happy Holidays!

Tue, 21 Dec 2021 23:36:30 GMT

Lavelle Law wishes you and your family the merriest of holidays and a healthy, happy, and peaceful new year! Check out our 2021 reflections and highlights of the year. CLICK HERE

Recent Examples of Civil Asset Forfeiture

Tue, 14 Dec 2021 23:04:54 GMT

In this podcast, defense attorney James Doerr discusses examples of civil asset forfeiture and policy decisions. Know your rights in this sometimes unjust procedure!

Podcast Link

Lavelle Law Welcomes Attorney Shannon Bauer

Mon, 06 Dec 2021 17:23:13 GMT

Full Article: https://www.dailyherald.com/submitted/20211201/lavelle-law-welcomes-attorney-shannon-bauer

Lavelle Law Charities Food Drive 2021

Thu, 02 Dec 2021 22:55:46 GMT

Watch this video for a behind-the-scenes look at the 2021 Lavelle Law Charities Food Drive. We delivered over two truckloads of food and household supplies and raised $8,620 for the Schaumburg Township Food Pantry. Our goal for this annual food drive is to help bring food, dignity, and hope to residents in need who rely on the food pantry. Thank you our collection box hosts, our corporate sponsor, Tony’s Fresh Market, and to everyone who donated!

Department of Justice’s New Policy Regarding Chokeholds & No-Knock Warrants

Mon, 29 Nov 2021 18:05:52 GMT

During this podcast, defense attorney James Doerr will discuss the recent memo released by the Deputy Attorney General limiting the use of chokeholds, carotid restraints, and no-knock warrants.

Podcast Link

Important Developments in BIPA Litigation

Mon, 29 Nov 2021 17:56:38 GMT

State and federal courts continue to render important decisions regarding the scope and reach of Illinois' Biometric Information Privacy Act or BIPA for short. BIPA is intended to protect the biometric identifiers, including fingerprint and facial identification, of Illinoisans. In this podcast, attorney Brian Massimino will dig into the important takeaway lessons from these cases, including the statute of limitations, the risks of mere possession of protected information, and business insurance coverage. If you have any questions about BIPA or other business risk management issues, reach out to Brian at 312-332-7555.

Podcast Link

Lavelle Law Charities wraps up food drive for local pantry

Mon, 22 Nov 2021 23:07:41 GMT

Full Article: https://www.dailyherald.com/submitted/20211115/lavelle-law-charities-wraps-up-food-drive-for-local-pantry

Lavelle Law Designates Attorney Jennifer Tee as Diversity and Inclusion Officer

Mon, 22 Nov 2021 22:36:14 GMT

Full Article: https://www.dailyherald.com/submitted/20211028/lavelle-law-designates-attorney-jennifer-tee-as-diversity-and-inclusion-officer

Employer Mandates and Vaccines

Thu, 18 Nov 2021 21:57:20 GMT

Employers – it’s imperative to talk to an attorney before implementing a vaccine mandate. If you are considering such a policy, protect yourself from liability. Call Ted McGinn for more information. 847-705-7555.

Lavelle Law Wins Schaumburg Business Association's Business of the Year!

Tue, 26 Oct 2021 19:33:39 GMT

We are very honored to have won the Schaumburg Business Association’s Brian H. Burke BUSINESS OF THE YEAR award at the 2021 Toast of Schaumburg! This award honors and recognizes an SBA Member who has exemplified the five pillars of the association during the year – Relationships, Economic Development, Resource, Advocacy, and Community. We are proud to be a part of this robust business community and are grateful that our efforts have been recognized by the SBA.

Read Press Release: https://www.dailyherald.com/submitted/20211102/lavelle-law-receives-business-of-the-year-award

Keyword Search Warrants Raise Fourth Amendment Concerns

Wed, 20 Oct 2021 21:36:00 GMT

During this podcast, defense attorney James Doerr explores the increasing use of keyword internet searches and the possible consequences regarding search warrants and criminal investigations.

Podcast Link

Residential Real Estate Today – a Hot Market

Mon, 18 Oct 2021 22:07:07 GMT

A Lavelle Law Breakfast Briefs Presentation

November 17, 2021

7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127

Schaumburg, IL 60173

The real estate market has thrived during the pandemic – but not without a new set of complexities, in addition to the traditional issues that arise with the buying and selling of homes. But with legal guidance, you can get through these transactions with fewer bumps and more protections. You can also jump into this hot market as an investor, so long as you know how to do it safely. Join us for this Breakfast Briefs presentation as Lavelle Law’s real estate attorneys, Kelly Anderson, Chance Badertscher, and Kevin Mitrick discuss how to go into what may be the biggest purchase or sale of your life, with confidence.

Join us on November 17, 2021, for this FREE presentation. A complimentary continental breakfast will be offered.

Registration is required as seating is limited. No walk-ins. Register today by emailing Danielle Palermo dpalermo@lavellelaw.com or click the link below.

MEET THE PANEL

Kelly Anderson

Kelly Anderson is a shareholder and has been an attorney with Lavelle Law since 2011. Although Kelly started out her law career as a litigator, she has been focused on residential and commercial real estate transactions since starting at Lavelle Law, Ltd. Handling everything from the purchase or sale of condominium units to the sale of multi-million dollar properties, she has seen the real estate world from all angles. Kelly attended Loyola University of Law, Chicago, for her law degree, and graduated from the University of Illinois Champaign Urbana with a rhetoric degree. Kelly lives in Cary, IL with her husband, Matt, son, Sam, daughter, Amelia, and dog, Lily.

Chance Badertscher

Chance W. Badertscher is a graduate of The University of Wisconsin (2007) and Chicago-Kent College of Law (2014). Chance joined Lavelle Law’s Real Estate Practice Group in 2015, focusing primarily on work with real estate investors. In addition to handling residential real estate closings, investors benefit from Lavelle Law’s assistance with LLC formation, 1031 exchanges and property tax appeals. Chance is a Professional Board member of Imerman Angels, a charity that organizes one-to-one support for all cancer fighters, survivors, and caregivers.

Kevin Mitrick

Kevin P. Mitrick is a graduate of The John Marshall Law School (2011) and joined Lavelle Law’s Real Estate Practice Group in 2018. Kevin’s practice is primarily focused on residential real estate a nd he regularly handles over 150 closings per year. Kevin currently serves on the Board of Directors for the Darst Center for Social Justice and previously served as the legislative liaison for the Chicago Bar Association’s Probate Practice Committee and as the coordinator of the Help Desk for Adult Guardianship at the Cook County Circuit Court. Kevin actively volunteers and fundraises for organizations that advocate on behalf of individuals with disabilities.

Succession Planning: The Estate Plan for a Business

Mon, 11 Oct 2021 21:42:12 GMT

In this video, Lavelle Law attorneys Heather Walser and Steven Migala discuss how to plan for a successful exit of a business while also ensuring that business owners have the correct estate planning documents in place before the exit. Walser and Migala presented this webinar to the Northwest Suburban Estate Planning Council in September 2021. If you have any follow-up questions or would like to set up a consultation, call us at 847-705-7555 or email us at info@lavellelaw.com .

Jury Selection Concepts and Issues

Fri, 08 Oct 2021 18:55:29 GMT

In this podcast, defense attorney James Doerr explores the process of jury selection in the United States and answers frequently asked questions.

Podcast Link

Annual Lavelle Law Food Drive is Back

Thu, 07 Oct 2021 16:21:47 GMT

Full Article: https://www.dailyherald.com/submitted/20211006/annual-lavelle-law-food-drive-is-back

What Happens When Law Enforcement Exceeds Their Authority?

Wed, 15 Sep 2021 16:07:24 GMT

This podcast explores some recent examples of law enforcement exceeding the scope of action authorized by judicial authorities.

Podcast Link

Succession Planning: The Estate Plan for a Business

Fri, 10 Sep 2021 17:59:35 GMT

A Case Discussion: Lange v. California

Mon, 16 Aug 2021 20:24:40 GMT

Lavelle Law defense attorney, James Doerr, continues his series of discussions of newly decided cases. In this episode, we discuss the recently published case of Lange v. California .

Podcast Link

Tailgate After Hours with Lavelle Law!

Wed, 11 Aug 2021 15:43:43 GMT

DA BRATS, DA BREWS, DA BEARS! Join Lavelle Law on August 24 as we host Schaumburg Business Association's “Business After Hours." Enjoy two hours of open networking as we celebrate the beginning of the football season! Here is a glimpse of our playbook:

GAME TIME: 5 – 7 PM

SIGNATURE COCKTAIL: Upon arrival, enjoy a refreshing Black + Blue Mojito!

KICKOFF: Kickoff the event by snapping a selfie at our photo booth, compliments of Tic-Tac-Tag Brands.

CONCESSIONS: Enjoy a smorgasbord of delicious tasty bites and a variety of brews and wines.

RAFFLE: Work your way around the office and advance the ball across the goal line to enter our touchdown raffle.

Join us at Lavelle Law’s home field at 1933 N. Meacham Rd., Suite 600 in Schaumburg. Hope to see you there!

Registration is required, via the SBA.

Constitutional Classics - A Discussion of Landmark SCOTUS cases. Miranda v. AZ

Mon, 09 Aug 2021 15:35:20 GMT

A series of discussions of landmark Supreme Court decisions begins with this discussion. In this episode, attorney James Doerr discusses the classic case of Miranda v. Arizona .

Podcast Link

Lavelle Law Welcomes Attorney Victoria R. Paton

Fri, 06 Aug 2021 18:03:46 GMT

Full Article: https://www.dailyherald.com/submitted/20210803/lavelle-law-welcomes-attorney-victoria-r-paton

Part II: An Introduction to Court Proceedings - Appeals

Thu, 05 Aug 2021 16:45:43 GMT

During this podcast, attorney James Doerr answers several basic questions about the legal system, particularly appellate law.

Podcast Link

Unpacking Less Common Issues in Divorce – A Lavelle Law Breakfast Briefs Webinar

Thu, 29 Jul 2021 18:33:07 GMT

While even the most simple divorce proceeding can be complex, there are certain issues that make it more complicated, such as estate planning and immigration issues. On the other hand, amicable divorce proceedings can be resolved without extensive court proceedings by engaging in collaborative divorce. In this video, Lavelle Law’s family law attorneys, Amil Alkass, Joseph Olszowka, and Patti Levinson explore how these issues can impact a family law proceeding. If you have any follow-up questions or would like to set up a consultation, call us at 847-705-7555 or email us at info@lavellelaw.com .

EPISODE 78: STRAIGHT UP TUES TIP 8

Wed, 28 Jul 2021 15:58:44 GMT

Real Estate Attorney Chance Badertscher was the special guest on Straight Up Chicago’s Tuesday’s Tip podcast. Listen in, as Chance discusses the steps and responsibilities for an investor to get from attorney review to the closing table. For follow-up questions, or other questions regarding real estate, contact Chance at cbadertscher@lavellelaw.com or 847-705-7555.

Podcast Link

Business Formations and Corporate Compliance

Mon, 19 Jul 2021 17:22:33 GMT

Whether you are starting a new business and want to select the appropriate business entity, or need legal guidance with corporate compliance and regulatory issues of your established business, our attorneys are here to assist you. Watch this short video as attorney Frank Portera summarizes Lavelle Law’s business formation package as well as our registered agent services. To schedule a free consultation and to learn more, contact Frank at 847-705-7555 or fportera@lavellelaw.com .

Unpacking Less Common Issues in Divorce

Tue, 22 Jun 2021 21:51:21 GMT

A Lavelle Law Breakfast Briefs webinar

July 21, 2021
8:00 AM – 9:00 AM (CST)
Zoom

While even the most simple divorce proceeding can be complex, there are certain issues that make it more complicated, such as estate planning and immigration issues. On the other hand, amicable divorce proceedings can be resolved without extensive court proceedings by engaging in collaborative divorce. Join us for this Breakfast Briefs presentation as Lavelle Law’s family law attorneys, Amil Alkass, Joseph Olszowka, and Patti Levinson explore how these issues can impact a family law proceeding.

This webinar is FREE but registration is required. To register on Zoom, click the link below.

MEET THE PANEL

Amil Alkass

Amil Alkass is a Partner and has been an attorney at Lavelle Law, Ltd. since 2007. While Amil primarily focuses his work on matters related to divorce and family law, he also handles matters related to immigration law, commercial litigation, criminal and traffic defense, and automobile lemon law. Amil is a Board Member of the Assyrian-American Bar Association and a member of the Illinois Bar Association, the Chicago Bar Association, and the DuPage County Bar Association.

Amil received his J.D. from the UIC--The John Marshall Law School in Chicago and has a B.A. degree in Criminal Justice, with a minor in English, from the University of Illinois at Chicago.

Joseph A. Olszowka

Attorney Joseph Olszowka has nearly 30 years of experience handling family law cases. Before joining Lavelle Law’s Family and Divorce Law Practice Group, Mr. Olszowka was the Principal Attorney at the Law Offices of Joseph A. Olszowka, Jr., where he successfully litigated hundreds of cases, including complex divorce, parental allocation, parentage, child support, business valuation, adoption, and domestic violence cases.

Patti S. Levinson

Partner and Family Law attorney, Patti Levinson, is an experienced attorney whose capability is strengthened by her training and accreditation in the Divorce Mediation Training Program at Northwestern University and the Collaborative Training Program from the Collaborative Family Law Council of Wisconsin. Ms. Levinson’s work has been recognized by the Collaborative Divorce Illinois and the International Academy of Collaborative Law Professionals.

Ms. Levinson is a regular participant in the Northwest Suburban Bar Association's Divorce Court and Paternity Court Facilitator programs, providing advice and assistance to parties without legal representation.

Levinson received her J.D. with High Honors from the Chicago-Kent College of Law, where she was accepted to the Order of the Coif.

What Business Owners Need to Know About Employee Stock Ownership Plans (ESOPs)

Wed, 16 Jun 2021 22:51:32 GMT

A Lavelle Law Lunch & Learn Webinar

This recorded webinar introduces ESOPs as an exit strategy for business owners contemplating a sale. Lavelle Law attorneys Steve Migala and David O’Leary describe the structure of an ESOP, when it makes sense for a corporation and its shareholders to consider an ESOP, its typical use cases, and an ESOP’s unique tax advantages for corporations and their shareholders. If you have any follow-up questions or to set up a consultation, call Steve or David at 847-705-7555. Or email: smigala@lavellelaw.com doleary@lavellelaw.com

Lavelle Law Welcomes Attorney Joseph A. Olszowka, Jr.

Tue, 08 Jun 2021 22:20:22 GMT

Full Article: https://www.dailyherald.com/submitted/20210608/lavelle-law-welcomes-attorney-joseph-a-olszowka-jr

Divorcing a Spouse with a Substance Abuse Problem

Tue, 08 Jun 2021 17:29:51 GMT

Kristina Buchthal Alkass, family law and divorce attorney for Lavelle Law, discusses the complications when one spouse has a substance abuse problem in a family law matter. Careful strategizing with your attorney is essential before raising allegations of substance abuse. When proving your spouse is unfit to care for your child because of his or her substance abuse, you need to also be aware of the risk that the same argument may negatively affect your financial circumstances when determining alimony, or what is now called maintenance. To find out more about this careful balance between what is best for you and what is best for your child in a divorce or custody case, reach out to Kristina at 847-241-1777 or kalkass@lavellelaw.com .

Toolkit to Elevate Your Business

Thu, 13 May 2021 17:19:17 GMT

A Good Morning Schaumburg Presentation

Are you looking to start or grow your business as we emerge from the pandemic? Are you considering changing your existing business from a sole proprietorship to an LLC or an S Corporation? In a recent “Good Morning Schaumburg” presentation, Lavelle Law attorneys discussed how to choose the correct entity for your business, as well as how to structure the relationships among the entity and its owners through the careful use of shareholder and operating agreements. New and emerging businesses seeking to raise capital learned how they can do so through certain private placements of their securities without the need to incur the time and expense of registering them with the SEC and the Illinois Securities Department. Watch this video as attorneys Ted McGinn, Samantha Bonamassa, and Steve Migala outline the tools needed to grow your business. For follow-up questions, reach out to one of the attorneys at 847-705-7555.

What Business Owners Need to Know About Employee Stock Ownership Plans (ESOPs)

Wed, 12 May 2021 20:51:04 GMT

A Lavelle Law (virtual) Lunch & Learn Presentation

June 16, 2021
12:00 PM – 1:00 PM

This presentation will introduce ESOPs as an exit strategy for business owners contemplating a sale. Lavelle Law attorneys Steve Migala and David O’Leary will describe the structure of an ESOP, when it makes sense for a corporation and its shareholders to consider an ESOP, its typical use cases, and an ESOP’s unique tax advantages for corporations and their shareholders. Time will be reserved for your questions and answers.

Grab your lunch, and join us for this free webinar. Registration on Zoom is required.

Legal Perspective for Business Owners

Wed, 12 May 2021 19:47:15 GMT

Steve Migala, Shareholder of Lavelle Law, recently sat down with Paul Heinze of Goldberg Heinze, to discuss recent changes, trends, and a business owners’ relationship with their attorney. Steve offers perspective on financing, succession planning, annual compliance, and more. For follow-up questions or to discuss your business needs, contact Steve at smigala@lavellelaw.com or 847-705-7555.

An Introduction to Court Proceedings

Mon, 10 May 2021 17:50:03 GMT

This podcast answers several basic questions about the legal system. Attorney James Doerr discusses the differences between civil suits and criminal cases, the various types of courts and how cases are assigned, and how cases work their way through the legal system.

Podcast Link

Cybersecurity & Safeguards for Businesses – a Lavelle Law Breakfast Briefs

Wed, 05 May 2021 21:54:04 GMT

In this webinar recording, attorneys Ted McGinn, Lance Ziebell, and Steve Migala discuss cybersecurity and provide guidance on what internal steps all businesses should take to safeguard against an attack. They explain strategies to minimize liability resulting from a cyberattack and effective practices your business can implement to secure data. Business continuity plans are also discussed. For follow-up questions regarding your specific business needs, contact us at 847-705-7555.

Defend Your Business Against Cyber Attacks

Wed, 28 Apr 2021 21:58:12 GMT

51% of US businesses fall victim to cyber attacks every year! Join us May 5, 2021, for our Breakfast Briefs seminar, “Cybersecurity & Safeguards for Businesses” as attorney Lance Ziebell will discuss how to defend your business against cyber attacks by having the right employee policies and procedures in place. For a full list of the topics we will cover, and to register for this seminar via Zoom, click the link below.

Cybersecurity & Website Terms & Conditions

Mon, 26 Apr 2021 22:10:59 GMT

One component of cybersecurity that all businesses should pay attention to is their website Terms and Conditions. Join us May 5, 2021, for our Breakfast Briefs seminar, “Cybersecurity & Safeguards for Businesses” as attorney Steven Migala will talk about this important topic. For a full list of our topics, and to register via Zoom, click the link below.

Cyber security — a business requirement

Thu, 22 Apr 2021 15:37:52 GMT

Full Article: https://www.dhbusinessledger.com/business/20210421/cyber-security-x2014-a-business-requirement

M&A Intermediaries & Brokers

Wed, 21 Apr 2021 18:38:03 GMT

An M&A intermediary or broker provides valuable advice to companies who are seeking a sale or acquisition. In this podcast, Steven Migala, Lavelle Law Attorney and Shareholder, is joined by Paul Heinze, President of the Paul M. Heinze Company and an alliance partner in Goldberg Heinze Business Advisors. Steve and Paul discuss the value of working with an M&A Intermediary or Broker when selling your business or growing by strategic acquisition.

Podcast Link

Lavelle Law plans two events for small businesses

Thu, 15 Apr 2021 20:06:38 GMT

Full Article: https://www.dailyherald.com/business/20210414/lavelle-law-plans-two-events-for-small-businesses

Cybersecurity & Business Continuity Plans

Tue, 13 Apr 2021 21:21:29 GMT

Cybersecurity is an ever-growing and essential component for businesses, small and large. One important safeguard for businesses to have is a well-thought-out and detailed business continuity plan in place. We’re going to talk more about this in an upcoming Breakfast Briefs: “Cybersecurity & Safeguards for Businesses.” Join us May 5 by registering with Erin Bowers at ebowers@lavellelaw.com

Cybersecurity & Safeguards for Businesses

Mon, 12 Apr 2021 18:05:52 GMT

May 5, 2021
8:00 AM - 9:00 AM

According to the FBI, the cost of cyberattacks exceeded $3.5 Billion in 2019, and businesses of all sizes are often the targets of cyberattacks! Join attorneys Ted McGinn, Lance Ziebell, and Steve Migala for this informative seminar on May 5. They will provide businesses strategies to minimize liability resulting from a cyberattack and guidance on what internal steps all businesses should take to safeguard against an attack. In particular, Lavelle Law will discuss the following:

• What is Cybersecurity?

• What makes businesses vulnerable to cyberattacks?

• What is the cost to a business that has suffered a cyberattack?

• What are effective practices businesses can implement to secure their data and minimize liability?

• What policies should a business consider to guard against attacks?

• What terms and conditions should businesses include on their websites?

https://us02web.zoom.us/webinar/register/WN_yY2lzNjHRKOQ-AQBB8rlsg

Tax Day for Individuals Extended to May 17, 2021

Thu, 18 Mar 2021 16:15:55 GMT

Full IRS News Release: https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline

A Case Discussion: People v. Patel, 2019 IL App. (2d.) 170766

Thu, 18 Mar 2021 15:49:25 GMT

This podcast with defense attorney James Doerr provides a discussion of the 2019 Illinois Supreme Court decision of People v. Patel involving discovery issues in DUI cases.

Podcast Link

Debtor in Possession Financing

Fri, 12 Mar 2021 17:30:23 GMT

Bankruptcy laws have been changed whereby it is much easier for a business to reorganize and restructure its debt. But when a business does file for a bankruptcy reorganization, it needs to secure a lending relationship whereby cash flow needs can be financed through the bankruptcy. In this podcast, Lavelle Law attorney Ted McGinn and his guest, Tom Stamborski, president of Liquid Capital of Illinois, discuss debtor in possession financing, what financing options are available, and what steps a business can take in order to establish such a relationship in anticipation of a bankruptcy.

Podcast Link

Cash Flow Solutions

Thu, 11 Mar 2021 17:43:36 GMT

This podcast explores alternative cash flow solutions for companies not involving traditional bank financing. The impact of COVID-19 on cash flow will be discussed, as well as how alternative financing products can address the different cash flow needs that a business may experience. Join Lavelle Law attorney Steve Migala and his guest, Tom Stamborski, president of Liquid Capital of Illinois, as they discuss cash flow solutions in the current business environment.

Podcast Link

IRS Penalties

Mon, 08 Mar 2021 18:20:13 GMT

When individuals and businesses fall behind on tax filings and payments, they often underestimate how costly the problem can be to fix, in large part due to the significant penalties the IRS assesses in non-compliance. In this podcast, attorney Joshua Nesser discusses the most common penalties taxpayers face and what can be done to resolve them.

Podcast Link

File Your 2020 Tax Return On Time

Thu, 04 Mar 2021 22:51:00 GMT

No matter what your financial situation is, it is imperative that your file your 2020 tax return on time, on or before April 15, 2021. Last year, there was an extension due to the COVID-19 pandemic, but that is not the case this year. Even if you cannot pay your taxes, you still must file the return on time to avoid fines and to shield yourself from even more financial risk. Even the most responsible taxpayers can find themselves with overwhelming tax debt due to unplanned life events, such as divorce, mounting medical bills, and the unprecedented pandemic that negatively impacted the financial health of many. There are various options available to you if you find yourself in this situation. Contact attorney Tim Hughes if you want legal guidance relating to tax and IRS issues. 847-705-7555 thughes@lavellelaw.com .

Should a Business Owner Rollover Their Equity in a Sale?

Thu, 04 Mar 2021 16:40:58 GMT

Are you thinking of selling your business? An owner’s decision to roll over its equity in a transaction can be a very good one with many advantages. However, selling owners should be cautious before they agree to rollover equity, and they should conduct significant due diligence and negotiations to ensure they are not agreeing to unfavorable terms in the future. In this podcast, attorney Steve Migala discusses the pros and cons to consider before making a decision to rollover equity in the sale of a business.

Podcast Link

Small Business Entity Selection, Formations, and Corporate Compliance

Wed, 17 Feb 2021 16:44:06 GMT

In this podcast, attorney Frank Portera discusses Lavelle Law’s process in forming new companies by explaining exactly what filings are required in order to get your new start-up operating properly. Frank also explains the continuing annual reporting and corporate compliance requirements that are needed for all Illinois companies.

Podcast Link

A Case Discussion: People v. White 2020 IL App (1st) 171814

Wed, 17 Feb 2021 16:36:01 GMT

This podcast with defense attorney James Doerr provides a discussion of the recent Illinois Supreme Court decision of People v. White . James discusses the 4th Amendment, Search and Seizure, Motion to Suppress Evidence, and other legal issues of this case.

Podcast Link

Attorney Joseph Vito Elevated to Partner at Lavelle Law

Thu, 11 Feb 2021 22:06:37 GMT

Full Article: https://www.dailyherald.com/submitted/20210202/attorney-joseph-vito-elevated-to-partner-at-lavelle-law

Using Litigation to Heal Your Business & Avoid Disaster– A Lavelle Law Breakfast Briefs Webinar

Thu, 11 Feb 2021 17:37:51 GMT

As business activity ramps back up with the COVID-19 vaccine on the horizon, business owners are looking to maximize their earnings in 2021. Interestingly, although usually a last resort, litigation may offer certain business disputes and issues an opportunity to recapture some of the losses sustained in the past year. In this video, Lavelle Law’s team of partners in the business litigation group, Matthew Sheahin, Jennifer Burt Tee, and Lance Ziebell, discuss various ways to utilize litigation as a value add to your business. They review the injunctive relief available in Illinois, including TROs and Preliminary and Permanent Injunctions to protect your rights as a business owner. They also discuss employment agreements as well as how businesses can protect their trade secrets.

For more information, contact Matthew Sheahin , Jennifer Tee , or Lance Ziebell .

Attorney Heather Walser’s Interview with Inverness Life Magazine

Mon, 25 Jan 2021 21:03:17 GMT

Lavelle Law estate planning attorney Heather Walser sat down for an interview with Bob Roig of Inverness Life magazine. Heather explains why she became a lawyer, what sets Lavelle Law apart from other law firms, and shares some other fun facts you may not know about her.

Using Litigation to Heal Your Business & Avoid Disaster

Wed, 20 Jan 2021 21:45:00 GMT

February 10, 2021

8:00 AM - 9:00 AM (CST)

A Webinar

As business activity ramps back up with the COVID-19 vaccine on the horizon, business owners are looking to maximize their earnings in 2021. Interestingly, although usually a last resort, litigation may offer certain business disputes and issues an opportunity to recapture some of the losses sustained in the past year. Lavelle Law’s team of partners in the business litigation group, Matthew Sheahin , Jennifer Burt Tee , and Lance Ziebell will discuss various ways to utilize litigation as a value add to your business. During this interactive webinar, we will review the injunctive relief available in Illinois, including TROs and Preliminary and Permanent Injunctions to protect your rights as a business owner. We will discuss how to protect yourself in the event of litigation in your business contracts and agreements. We will also discuss trade secrets and how businesses can protect their trade secrets.

This is a FREE presentation, but registration via Zoom is required. There will be a Q&A section at the end of this presentation. In addition, if you would like to submit questions ahead of time, email us at webinar@lavellelaw.com .

Navigating the Annual Requirements for Investment Advisers

Wed, 13 Jan 2021 23:34:41 GMT

SEC-registered investment advisers must navigate several annual and ongoing regulatory and compliance requirements. Two of the most important investment adviser annual requirements are submitting an annual updating amendment to the Form ADV and conducting an annual review. Failing to comply with these annual requirements can subject an investment adviser to regulatory examinations, enforcements, fines, censures, reputational harm, and other penalties. In this podcast, attorney Samantha Bonamassa discusses the compliance requirements and answers FAQs.

Podcast Link

A Case Discussion: People v. Kaczkowski 2020 IL 170764

Wed, 13 Jan 2021 18:39:53 GMT

In this podcast, defense attorney James Doerr discusses the recent Illinois Supreme Court decision of People v. Kaczkowski involving the Fourth Amendment and the Motion to Suppress.

Podcast Link

Contracts - A discussion with Nataly Kaiser on Letip Professional Networkers Live

Wed, 13 Jan 2021 18:10:24 GMT

Attorney Nataly Kaiser was recently interviewed by Letip Professional Networkers and discussed the importance of business contracts.

Watch video: https://www.facebook.com/LetipProfessional/videos/1332566580439400/

Investment Adviser Annual Requirements Check-Up Day

Thu, 07 Jan 2021 16:47:11 GMT

January 20, 2021

9:00 AM - 5:00 PM

Video Conferences via Zoom

RSVP: ebowers@lavellelaw.com

A Case Discussion: People v. Demario Reed 2020 IL 124940

Mon, 21 Dec 2020 20:27:04 GMT

This podcast will provide a discussion of the recent Illinois Supreme Court decision of People v. Demario Reed 2020 IL 124940.

Podcast Link

Chrissie Martell joins Lavelle Law's family law practice group

Wed, 02 Dec 2020 22:00:36 GMT

Full Article: https://www.dailyherald.com/business/20201117/chrissie-martell-joins-lavelle-laws-family-law-practice-group

Lavelle Law Charities raises $25,000 for Schaumburg Food Pantry

Wed, 02 Dec 2020 21:07:02 GMT

SCHAUMBURG -- Lavelle Law Charities recently wrapped its annual food drive and, although this year's event was held virtually, the Schaumburg-based law firm was able to raise $25,000 for the Schaumburg Food Pantry.

Full Article

A Case Discussion: People v. Rasheed Casler, 2020 IL 125117

Tue, 01 Dec 2020 23:05:09 GMT

In this podcast, Lavelle Law defense attorney James Doerr discusses the recent Illinois Supreme Court decision of People v. Rasheed Casler , 2020 IL 125117.

Podcast Link

Cybersecurity Check-Up Day

Mon, 30 Nov 2020 18:05:31 GMT

December 7, 2020
9:00 AM - 5:00 PM
Video Conferences Via Zoom

RSVP: ebowers@lavellelaw.com

Final 2 Weeks of the Lavelle Law Charities Virtual Food Drive

Mon, 09 Nov 2020 23:57:19 GMT

We are in the final 2 weeks of our Virtual Food Drive! Visit our secure food drive portal where you can either shop online by selecting “Give Now” or donate monetarily by selecting “Skip & Donate.” This year has been especially difficult for our local food pantry and the community it serves, and it is more important than ever to support them. Every $1 can help provide 3 meals! Together, let’s do our part to take hunger off the table! Thank you to those who have already donated!

Click Here to Donate

What Options Do Illinois Restaurants Have to Stay Open for Indoor Dining?

Wed, 04 Nov 2020 17:12:09 GMT

In this podcast, seasoned litigator and Lavelle Law Shareholder, Matt Sheahin, discusses the options available to Illinois restaurant owners in challenging Governor JB Pritzker's emergency order that prohibits indoor dining in Illinois restaurants. Matt will explain the Illinois law, the specific emergency order, and the legal options that owners may consider.

Podcast Link

Announcing the 2020 Lavelle Law Charities Virtual Food Drive

Wed, 28 Oct 2020 16:44:58 GMT

Our annual Lavelle Law Charities Food Drive is going virtual this year! In coordination with the Schaumburg Township Food Pantry and the Greater Chicago Food Depository, an online version of our Food Drive has been developed. Users can either shop online or contribute funds through the secure food drive portal. 100% of all food and cash donations will go directly to the Schaumburg Township Food Pantry and Lavelle Law Charities will match, dollar for dollar, all donations up to $10,000. Together, let’s make a difference to take hunger off the table! Every $1 can help provide 3 meals!

Schaumburg Business Association to toast village like never before

Wed, 21 Oct 2020 16:20:20 GMT

Full Article: https://www.dailyherald.com/business/20201020/schaumburg-business-association-to-toast-village-like-never-before?fbclid=IwAR1UdwBIf0WgYFatefpEPcwAT6ljIoRTSC6ESMpWGFlEbLnCTuxaY0p8xeI

Lavelle Law to Host Virtual Food Drive Fundraiser

Wed, 21 Oct 2020 16:11:06 GMT

Full Article: https://www.dailyherald.com/submitted/20201019/lavelle-law-to-host-virtual-food-drive-fundraiser

Appellate Court Case Law Discussion – People v. Milan 2020 IL App (1st) 172181

Thu, 15 Oct 2020 17:06:29 GMT

This podcast will provide a discussion of the recent appellate case of People v. Milan , 2020 IL App (1st) 172181. Join defense attorney James Doerr, as he discusses this recent appellate court decision.

Podcast Link

Historic Exemptions and Rates for Estate, Gift, and GST Taxes May Not Last Long!

Wed, 07 Oct 2020 22:04:04 GMT

The current federal exemptions from estate, gift, and GST tax are at an all-time high, but these exemptions and the applicable tax rates could be affected by the upcoming presidential and congressional elections. Any such changes made well into next year could be retroactive to January 1, 2021, and these historic exemptions would be lost. Even without any immediate government action, the current $11.58 million unified credit will “sunset” in 2026, and be reduced to $5 million. In light of this, the remaining months of 2020 are an unprecedented opportunity to protect your estate and your loved ones from significant transfer taxes after your death. In this podcast, estate planning attorney Heather Walser explains why it’s so important to take advantage of these extraordinary exemptions and tax rates before it’s too late.

Podcast Link

Simple Steps to Prevent Waiving the Attorney Client Privilege

Wed, 07 Oct 2020 21:33:41 GMT

The attorney client privilege exists to “prevent the disclosure in judicial proceedings of the communications between the attorney and the client.” Its purpose is to encourage open and honest communications between an attorney and client. Like other “privileges,” the attorney client privilege can be waived, which means that an adverse party may be able to read communications that were intended to be confidential. And, that waiver can happen intentionally or unintentionally. Knowing these common pitfalls will certainly put individuals and businesses in a better position to avoid the dreaded “unforced error.” In this podcast, Lavelle Law attorney Brian Massimino provides useful tips to protect the attorney client privilege.

Podcast Link

Marbury v. Madison – a Discussion of SCOTUS Landmark Case and Judicial Review

Wed, 07 Oct 2020 15:56:52 GMT

It is emphatically the province and duty of the Judicial Department to say what the law is. This podcast, with attorney James Doerr, provides a discussion of the landmark Supreme Court decision of Marbury v. Madison (1803) which established the legal principle of judicial review.

Podcast Link

Defending Sales Tax Audits and Offers in Compromise – A Lavelle Law Breakfast Briefs Webinar

Thu, 01 Oct 2020 21:18:18 GMT

As the IRS and Illinois Department of Revenue return to full capacity, we expect collection and audit efforts by both agencies to pick up. During this webinar, Lavelle Law attorneys Ted McGinn and Joshua Nesser review the IRS’s offer in compromise program, which is one of the most useful tools available to resolve federal tax debts and save money with the IRS. They also discuss the state’s recent push to audit the sales tax reporting of bars and restaurants, and strategies for defending these audits and avoiding large liabilities.

If you have any questions regarding sales tax audits or the offer in compromise program, reach out to us at info@lavellelaw.com to schedule a consultation with one of our attorneys. We offer free initial consultations for new clients.

Evictions in Illinois During the COVID-19 Pandemic

Wed, 30 Sep 2020 21:16:25 GMT

This podcast will provide you with an overview of the eviction process in Illinois and how it’s being affected by the COVID-19 pandemic. Joshua Pagan is an attorney in Lavelle Law’s litigation practice group where he primarily handles commercial and business litigation matters and occasionally handles eviction matters.

Podcast Link

Lavelle Law Charities VIRTUAL Food Drive - 2020

Mon, 21 Sep 2020 17:39:34 GMT

COLLECTIVELY, OVER $25,000 RAISED!

As with so many other efforts in 2020, our annual food drive was virtual this year due to the pandemic and to avoid any unnecessary risks. In coordination with the Schaumburg Township Food Pantry and the Greater Chicago Food Depository, an online version of our food drive was developed. Donors either shopped online or contributed funds through a new, secure food drive portal. 100% of all food and cash donations went directly to the Schaumburg Township Food Pantry.

THANK YOU TO OUR 2020 DONORS!

The success of our annual Food Drive is dependent on the gracious support and contributions of the community and the wonderful businesses that partner with us to support this important cause. This year, Lavelle Law Charities matched the first $10,000 raised, bringing the grand total to over $25,000! We thank everyone who donated to the Lavelle Law Charities 2020 Virtual Food Drive. Your generosity and support of this very important cause go a long way in addressing the tremendous need in our community!

We would also like to recognize those who donated $250 or more to the cause, including:

Clearwater Capital Foundation – the philanthropic arm of Clearwater Capital Partners

Food Market La Chiquita

Lumeri LLC

Quick Delivery Service, Inc.

Staffing Network

Thunder Cares - the charitable arm of Norman Mechanical, Inc.

THANK YOU!

L avelle Law Charities, NFP is a not-for-profit IRC Section 501(c)(3) charitable organization that serves many in the Chicagoland area. Historically, 99% of what we raise directly supports our charitable causes.

Corporate Dissolutions

Thu, 17 Sep 2020 18:12:36 GMT

Episode #7 in "Bankruptcy Solutions" podcast series

In this podcast, attorney Ted McGinn discusses closing a business entity that has creditor claims exceeding its assets. Listen to episode 7 of our Bankruptcy Solutions mini-series.

Podcast Link

Governor Pritzker Announces Second Round of BIG Grants

Tue, 15 Sep 2020 20:14:01 GMT

Details: https://www2.illinois.gov/dceo/SmallBizAssistance/Pages/C19DisadvantagedBusGrants.aspx

Business Reorganization - Chapter 11

Thu, 10 Sep 2020 21:09:50 GMT

Episode #6 in "Bankruptcy Solutions" podcast series

In this podcast, attorney Tim Hughes provides an overview of the impact and requirements for filing for Chapter 11 bankruptcy protection for a business. Have a listen to this episode of our Bankruptcy Solutions mini-series and explore the options available for your business.

Podcast Link

Court reinstates sexual harassment claim of former Catholic music director fired after same-sex wedding

Thu, 10 Sep 2020 17:37:29 GMT

Sandor Demkovich was fired in 2014 from his job at St. Andrew the Apostle Parish in Calumet City. An appeals court has reinstated the claim of a former Calumet City church music director who sued after saying he was subjected to a hostile work environment because he is gay. “He was overjoyed,” said Kristina Buchthal Alkass, the attorney who represents the former music director, Sandor Demkovich. “This is not an easy fight for anyone. Being scrutinized in the courts is tough in any kind of case. When you get down to someone’s civil rights and their sexuality, it’s tougher than ever.”

The In’s and Out's of Chicago Real Estate Transactions

Thu, 03 Sep 2020 21:55:59 GMT

Lavelle Law real estate attorney Chance Badertscher was interviewed on an episode of “Straight Up Chicago Investor” and shared his expertise on real estate transactions.

Defending Sales Tax Audits & Offers in Compromise

Wed, 02 Sep 2020 21:12:58 GMT

September 23, 2020

9:00 AM – 10:00 AM

A Webinar

As the IRS and Illinois Department of Revenue return to full capacity, we expect collection and audit efforts by both agencies to pick up. During this interactive webinar, Lavelle Law attorneys Ted McGinn and Joshua Nesser will review the IRS’s offer in compromise program, which is one of the most useful tools available to resolve federal tax debts and save money with the IRS. We will also discuss the state’s recent push to audit the sales tax reporting of bars and restaurants, and strategies for defending these audits and avoiding large liabilities.

https://us02web.zoom.us/webinar/register/WN_aend52sxSaOdBPXc1Mk_5g

Business Chapter 7 Bankruptcy

jlindert@lavellelaw.com (Jackie Lindert) — Wed, 02 Sep 2020 18:15:09 GMT

Episode #5 in "Bankruptcy Solutions" podcast series

In this podcast, attorney Ted McGinn discusses whether filing for Chapter 7 bankruptcy is right for a business. Listen to episode five in our “Bankruptcy Solutions” mini-series.

Podcast Link

Gay Music Director Wins Landmark Appellate Court Decision Against Archdiocese in Discrimination Suit

Wed, 02 Sep 2020 16:40:43 GMT

Lavelle Law attorney Kristina Buchthal Alkass speaks about the recent huge victory for our client and for gay rights, in a recent interview.

Watch WGN News Video: https://wgntv.com/news/former-calumet-city-teacher-wins-lawsuit-over-sexual-orientation-dismissal-claim-against-archdiocese/

Chapter 13 & Mortgage Foreclosures

Thu, 27 Aug 2020 16:08:04 GMT

Episode #4 in "Bankruptcy Solutions" podcast series

In this podcast, attorney Tim Hughes discusses how Chapter 13 can possibly save a home from foreclosure.

Podcast Link

Lavelle Law Attorney Steve Migala Participates in Crain’s Chicago Business Roundtable Discussion on M&A Trends

Wed, 26 Aug 2020 15:51:33 GMT

Full Article: https://www.chicagobusiness.com/crains-content-studio/roundtable-ma-trends

Discharge of Debts – Special Creditors

Fri, 21 Aug 2020 17:26:51 GMT

Episode #3 in "Bankruptcy Solutions" podcast series

In this podcast, attorney Ted McGinn discusses how creditors’ claims are handled in bankruptcy.

Podcast Link

Kerry Lavelle Voted Best Lawyer: 2020 Daily Herald Readers’ Choice Awards, Best of the Best

Wed, 19 Aug 2020 20:21:42 GMT

Complete List of Winners: https://events.dailyherald.com/wp-content/uploads/2020/08/1257053.pdf-kat-edit.pdf

Protection of Assets - Chapter 7 Exemptions

Tue, 18 Aug 2020 22:02:43 GMT

Episode #2 in "Bankruptcy Solutions" podcast series

In this podcast, attorney Tim Hughes discusses what the impact is on the assets of a person when they file for bankruptcy. He will explain what happens to your property if you file for bankruptcy and how to protect your assets. Join us for our second episode in our “Bankruptcy Solutions” mini-series.

Podcast Link

Terry Stops in Illinois

Tue, 18 Aug 2020 19:29:23 GMT

In this podcast, the panelists discuss the landmark decision of Terry v. Ohio , the 4th Amendment, and Stop and Frisk.

Podcast Link

Is Consumer Bankruptcy the Solution to COVID-19 Unemployment?

Wed, 12 Aug 2020 22:41:49 GMT

Episode #1 in "Bankruptcy Solutions" podcast series

In this podcast, attorney Tim Hughes discusses whether filing for bankruptcy can help individuals facing harassment from creditors.

Podcast Link

Filing for Bankruptcy – A Fresh Start

Wed, 12 Aug 2020 22:22:08 GMT

Are you unemployed or has your income been reduced because of the COVID-19 pandemic? Are your debts piling up? There is hope. Lavelle Law attorney Ted McGinn sheds some light on how filing for bankruptcy can wipe the slate clean and provide you with a fresh start. In some cases, you can discharge your liabilities while protecting your assets. For more information about bankruptcy, call Ted at 847-705-7555. Free consultations are available.

Bankruptcy Solutions – a New Podcast Series

Tue, 11 Aug 2020 18:16:32 GMT

The impact of the COVID-19 pandemic on both businesses and individuals has caused a rise in bankruptcy filings. Because of this, Lavelle Law is creating a new podcast mini-series, Bankruptcy Solutions , as part of the weekly Chicago’s Legal Latte podcasts. This series of seven episodes will provide guidance regarding all types of bankruptcy filings, the considerations that should be taken, and the ramifications of filing for bankruptcy protection.

In many cases, bankruptcy is the right solution and can provide significant financial relief, but many considerations and outcomes should be discussed before any action is taken. We hope to share some of our three decades of experience with listeners in this new series.

Attorneys Tim Hughes and Ted McGinn will be the featured contributors to this new series. The podcast schedule is as follows:

August 11, 2020 at 4 PM
Is Consumer Bankruptcy the Solution to COVID-19 Unemployment?

August 18, 2020 at 4 PM
Protection of Assets - Chapter 7 Exemptions

August 20, 2020 at 4 PM
Discharge of Debts – Special Creditors

August 25, 2020 at 4 PM
Chapter 13 & Mortgage Foreclosures

September 1, 2020 at 4 PM
Business Chapter 7 Bankruptcy

September 8, 2020 at 4 PM
Business Reorganization - Chapter 11

September 15, 2020 at 4 PM
Corporate Dissolutions

Below is the link to our Blog Talk Radio podcast channel, Chicago’s Legal Latte. Subscribe to it via blogtalkradio.com or iTunes, for easy access to this series as well as our other podcasts. Should you wish to speak to the host during a podcast, dial 516-418-5576.

https://www.blogtalkradio.com/chicagoslegallate

The Main Street Lending Program

Tue, 04 Aug 2020 20:08:15 GMT

In this podcast, Lavelle Law attorney Steve Migala summarizes the Federal Reserve Board's new Main Street Lending Program (Program). The Program operates through three facilities offered to small and medium-sized businesses: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Each facility is highlighted in this podcast.

Podcast Link

Collaborative Divorces During COVID-19

Tue, 04 Aug 2020 17:22:15 GMT

In this popdcast, Lavelle Law attorney Patti Levinson explains the benefits of using the collaborative process for a divorce during the COVID-19 crisis.

Podcast Link

Avoiding Taxes with Estate Planning – A Lavelle Law Breakfast Briefs Webinar

Thu, 30 Jul 2020 17:21:16 GMT

No one wants to pay taxes when they can be avoided. That is especially true with estate, gift, and inheritance taxes. Illinois is (unfortunately, but not surprisingly) one of the states that has its own level of estate tax, in addition to the taxes assessed at the federal level. But rest assured, there are strategies (some very simple) that can be instituted to avoid tax. In this webinar, the estate planning attorneys at Lavelle Law explain various methods to mitigate these taxes, including gifting strategies, irrevocable trusts, insurance planning, and other options that will help ease the burden for your family. Our panelists, attorneys Walser, Warens, and Gardner, outline the steps to take now to ensure the assets you leave to your loved ones are protected from unnecessary taxes.

If you have any questions regarding estate tax or estate planning in general, reach out to us at info@lavellelaw.com to schedule a consultation with one of our estate planning attorneys.

Citizen’s Privacy Rights at the Border and Analysis of Alasaad v. McAleenan

Mon, 27 Jul 2020 21:54:10 GMT

In this podcast, defense attorney James Doerr discusses government searches and citizen’s expectations of privacy at the border.

Podcast Link

What Should I Do if Insurance Asks for a Recorded Statement After Collision?

Mon, 27 Jul 2020 20:59:02 GMT

Many times, an insurance company will try to obtain what’s called a “recorded statement” after a person is involved in an accident. Attorney Nicholas Dollenmaier explains why that is probably not a good idea and why you should obtain counsel before providing one.

Podcast Link

Avoiding Taxes with Estate Planning

Mon, 20 Jul 2020 16:44:34 GMT

July 29, 2020

8:30 AM - 9:30 AM

A webinar

No one wants to pay taxes when they can be avoided. That is especially true with estate, gift, and inheritance taxes. Illinois is (unfortunately, but not surprisingly) one of the states that has its own level of estate tax, in addition to the taxes assessed at the federal level. But rest assured, there are strategies (some very simple) that can be instituted to avoid tax. The estate planning attorneys at Lavelle Law will explain various methods to mitigate these taxes, including gifting strategies, irrevocable trusts, insurance planning, and other options that will help ease the burden for your family. Be sure to join our webinar, as attorneys Walser, Warens, and Gardner will outline the steps to take now to ensure the assets you leave to your loved ones are protected from unnecessary taxes.

This is a FREE presentation, but registration via zoom is required.

There will be live, interactive Q&A during the webinar. In addition, if you would like to submit questions ahead of time, email us at webinar@lavellelaw.com

https://us02web.zoom.us/webinar/register/WN_AjwakCsHQi2WzTlqS7djyA

Real Estate Closings in the COVID Era

Wed, 15 Jul 2020 21:08:37 GMT

Lavelle Law Attorney Kelly Anderson explains what has changed with real estate transactions in the era of COVID-19 and how buyers and sellers can be prepared for it.

Podcast Link

Land Use Law

Mon, 13 Jul 2020 16:08:19 GMT

Zoning regulations are designed to maintain community standards while also permitting personal privacy rights. But from time to time, an owner wishes to alter the existing use of a parcel and needs to obtain relief from those zoning ordinances. This podcast, with attorney Ted McGinn, is designed to provide a basic understanding of land use and the procedure to obtain relief.

Podcast Link

ESOP Repurchase Obligations in Bankruptcy - a Podcast

Tue, 07 Jul 2020 20:19:51 GMT

An employee stock ownership plan (an “ESOP”) is a type of employee benefit plan regulated by the Internal Revenue Code (the “Code”) and the Employee Retirement Income Security Act of 1974 (“ERISA”). Employees who are ESOP participants are in many ways treated similarly to shareholders of their company. This applies to bankruptcy as well, which means that ESOP participants are effectively “last in line” and usually get nothing if the company is liquidated. However, recent case law suggests that this treatment may not apply to repurchase obligations toward former employees. Repurchase obligations may be treated as debt, which may give an ESOP participant higher priority in bankruptcy putting them next in line after the senior secured lender. In this podcast, Lavelle Law attorney Roman Perchyts answers questions about ESOPs and bankruptcy and addresses concerns that banks may have regarding the priority of repurchasing obligations in bankruptcy.

Podcast Link

Unique Circumstances in Arrests and Statements in Custodial Settings

Tue, 30 Jun 2020 20:45:30 GMT

During this podcast, defense attorney James Doerr discusses arrests, custodial interrogations, Miranda rights, and polygraph examinations. He discusses how Courts determine when an arrest has occurred and whether a statement has been given voluntarily in a custodial setting.

Podcast Link

Parenting Time in Family Law Cases during COVID-19

Fri, 26 Jun 2020 17:27:24 GMT

For those co-parenting, many questions may arise as to how best to handle the challenges to parenting time COVID-19 may pose. In this podcast, Attorney Colleen Hurley of Lavelle Law discusses how family law cases have been impacted by COVID-19, how courts view co-parenting during this time, and best practices.

Podcast Link

Bankruptcy Protection for Businesses and How to Avoid it – A Lavelle Law Breakfast Briefs Webinar

Wed, 24 Jun 2020 18:22:08 GMT

Faced with a loss of income, businesses are being harassed by creditors for payment. Bankruptcy protection can provide your business with time and keep those creditors from disrupting your business. And in other cases, with the right attorney, you may be able to avoid bankruptcy altogether. In this webinar, the attorneys with Lavelle Law discuss the basics in the filing of a bankruptcy petition, the benefits and drawbacks, and other strategic uses. They will also discuss how a reorganization can save your business. Finally, they will discuss strategies to avoid the filing of a bankruptcy altogether and settle with creditors in order to salvage credit.

If your business is struggling with debt and you would like to discuss your options, reach out to us at info@lavellelaw.com to schedule a consultation with one of our attorneys.

Do I Need a Lawyer When Buying a House?

Tue, 23 Jun 2020 20:30:59 GMT

Buying or selling a house? Take a minute and listen to Lavelle Law Attorney Kelly Anderson explain the importance of having a real estate attorney as your advocate, not only to review the contract but at the closing. Contact Kelly at 847-705-7555 or kanderson@lavellelaw.com if you have any questions about a real estate transaction.

Loan Amendments, Forbearance Agreements & Litigation Update – a Lavelle Law Lunch & Learn Webinar

Mon, 22 Jun 2020 20:57:03 GMT

This webinar is for borrowers and lenders dealing with existing commercial loans in this COVID-19 climate. Lavelle Law attorneys Steven Migala, Lance Ziebell, and Joshua Nesser discuss (a) amending existing loan documents to permit borrowers to obtain PPP and other government loans, (b) the goals and the key terms of forbearance agreements, and (c) the state of litigation and how courts and existing cases are proceeding. If you have any questions regarding this topic, reach out to us at info@lavellelaw.com to schedule a consultation with one of our attorneys.

Arlington makes final offer in contract dispute with horsemen

Mon, 22 Jun 2020 15:16:40 GMT

Full Article: https://www.dailyherald.com/news/20200619/arlington-makes-final-offer-in-contract-dispute-with-horsemen

Webinar: Loan Amendments, Forbearance Agreements & Litigation Update – a Lavelle Law Lunch & Learn

Fri, 12 Jun 2020 05:00:00 GMT

Description:

This webinar is for borrowers and lenders dealing with existing commercial loans in this COVID-19 climate. Lavelle Law attorneys Migala, Ziebell, and Nesser will discuss (a) amending existing loan documents to permit borrowers to obtain PPP and other government loans, (b) the goals and the key terms of forbearance agreements, and (c) the state of litigation and how courts and existing cases are proceeding.

This webinar is free but registration is required.

Time:

June 18: 12:00 PM – 1:00 PM (CST)

Bankruptcy Protection for Individuals and How to Avoid it – A Lavelle Law Breakfast Briefs Webinar

Wed, 10 Jun 2020 14:15:43 GMT

Faced with a loss of income, individuals are being harassed by creditors for payment. Bankruptcy protection can provide a fresh start and get those creditors off of your back. And in other cases, with the right attorney, you may be able to avoid bankruptcy altogether. In this webinar, attorneys with Lavelle Law discuss the basics of filing of a bankruptcy petition, the benefits and drawbacks, and other strategic uses. They also discuss strategies to avoid the filing of a bankruptcy and settle with creditors in order to salvage credit.

If you are struggling with debt and would like to discuss your options, reach out to us at info@lavellelaw.com to schedule a consultation with one of our attorneys.

Lavelle Law Breakfast Briefs Webinar: Bankruptcy Protection for Businesses and How to Avoid it

Wed, 10 Jun 2020 05:00:00 GMT

Description:

Time:

Jun 10, 2020 09:00 AM in Central Time (US and Canada)

Lavelle Law Breakfast Briefs Webinar: Bankruptcy Protection for Individuals and How to Avoid it

Wed, 03 Jun 2020 05:00:00 GMT

Description:

Faced with a loss of income, individuals are being harassed by creditors for payment. Bankruptcy protection can provide a fresh start and get those creditors off of your back. And in other cases, with the right attorney, you may be able to avoid bankruptcy altogether. In this webinar, the attorneys with Lavelle Law discuss the basics in the filing of a bankruptcy petition, the benefits and drawbacks, and other strategic uses. They will also discuss strategies to avoid the filing of a bankruptcy and settle with creditors in order to salvage credit.

Time:

Jun 3, 2020 09:00 AM in Central Time (US and Canada)

Lavelle Law Attorneys Host Free Virtual Bankruptcy Seminars for Businesses and Individuals

Mon, 01 Jun 2020 15:05:06 GMT

Full Article: https://www.dailyherald.com/submitted/20200528/lavelle-law-attorneys-host-free-virtual-bankruptcy-seminars-for-businesses-and-individuals

Lavelle Law Welcomes Attorney Nataly Kaiser

Fri, 22 May 2020 15:25:48 GMT

Full Article: https://www.dailyherald.com/submitted/20200520/lavelle-law-welcomes-attorney-nataly-kaiser

Can I Create an Estate Plan During a Pandemic?

Mon, 18 May 2020 19:33:59 GMT

Now more than ever, it is so important to have an estate plan in place to protect you and your loved ones. Lavelle Law attorney Heather Walser discusses how her team is operating during these challenging times of the COVID-19 pandemic. The estate planning team at Lavelle Law can prepare necessary wills, trusts, and other estate planning documents safely and remotely. We also strongly advise against preparing online or DIY wills, trusts, etc., as very often, these plans cause more harm than good. If you have any questions about estate planning, reach out to Heather at hgwalser@lavellelaw.com or 847-705-7555.

An Update on How Local Circuit Courts Have Responded to the COVID-19 Coronavirus

Wed, 13 May 2020 21:38:56 GMT

During this podcast, defense attorney James Doerr provides a brief update as to how courts are dealing with the Coronavirus and what litigants can expect going forward. The discussion will include the use of video in criminal courts.

Podcast Link

Navigating Divorce – A Lavelle Law Breakfast Briefs Webinar

Wed, 06 May 2020 17:09:11 GMT

This video is a recording of a webinar presented by Lavelle Law’s family and divorce law attorneys. In this presentation, the attorneys discuss several critical issues in the entire divorce process and explain the different paths to consider in choosing what is right for you and your family. If you are considering a divorce, have questions about child custody, child support, the collaborative divorce process, prenups, or orders of protection, be sure to watch.

What Can I Expect With Recent Court Closures Due to the COVID-19 Coronavirus?

Wed, 15 Apr 2020 17:32:02 GMT

This podcast, with defense attorney James Doerr, provides a brief overview of how the courts are dealing with the COVID-19 coronavirus and what litigants can expect going forward.

Podcast Link

Business Reorganization Bankruptcies - Use Bankruptcy Law to Save Your Business

Wed, 15 Apr 2020 17:01:08 GMT

A new chapter in the Bankruptcy Code, Subchapter V, recently took effect. It provides small business debtors greater flexibility to reorganize under Chapter 11. The process is more streamlined and accessible than traditional Chapter 11 and there is more control of structure and payments of small business reorganizations. Subchapter V provides small businesses much-needed relief in light of the ongoing COVID-19 pandemic. In this podcast, Attorneys McGinn and Hughes discuss Subchapter V and how it can help you save your business.

Podcast Link

Impact of COVID-19 on Employers

Mon, 30 Mar 2020 19:54:20 GMT

COVID-19 is causing significant damage to the economy forcing many businesses to cut staffing or close down entirely. In this discussion, Lavelle Law Managing Partner Ted McGinn and Shareholder Lance Ziebell discuss how employers should handle staff reductions during this difficult period.

Podcast Link

Families First Act

Mon, 30 Mar 2020 19:52:32 GMT

The government recently enacted the Families First Act to assist businesses with the economic impact of the COVID-19 pandemic. Lavelle Law Managing Partner Ted McGinn discusses the Act in detail including an overview of how sick time is to be handled and the extension of Family Leave provisions. Employment Law Attorney Lance Ziebell also joins the conversation.

Podcast Link

Mergers & Acquisitions Landscape

Thu, 26 Mar 2020 20:16:25 GMT

Most buyers and sellers fail to properly prepare for an acquisition or exit. Learning the key components can help you avoid common pitfalls, maximize value, and minimize risk. Listen in, as attorney Steven Migala and his guest Domenic Rinaldi, owner and managing partner of Sun Acquisitions, discuss the current M&A landscape.

Podcast Link

Navigating Divorce

Wed, 18 Mar 2020 05:00:00 GMT

Due to the COVID-19 pandemic, and out of an abundance of caution for the public well-being, we have decided to postpone this event until further notice.

7:45 AM - 9:00 AM

1933 N Meacham Road

Suite 127

Schaumburg, IL 60173

The Family Law team at Lavelle Law are trusted advocates protecting clients and their families. If you are considering a divorce, have questions about child custody, child support, the collaborative divorce process, prenups, or orders of protection, be sure to attend this informative seminar.

Join Lavelle Law’s family and divorce law attorneys as they discuss several critical issues in the entire divorce process and explain the different paths to consider in choosing what is right for you and your family.

Attorney Amil Alkass will discuss how the courts and law address issues of marital versus non-marital assets and how such assets are awarded to each party in a divorce or legal separation proceeding in Illinois. A discussion will also address other financial obligations that result in a family law dispute; such as child support, maintenance, and other child and spousal financial contributions including post-high school education, extracurricular activities, and other expenses not addressed with child support.

Attorney Colleen Hurley will present and address child-related issues that arise during a family dispute or divorce and will provide an overview of how the courts address decision-making rights, parenting time/visitation, and other issues that relate to a "custody" dispute.

Attorney Kristina Alkass will discuss how a party can protect themselves from an emotionally or physically abusive spouse or relationship and will discuss the remedies available to a victim of domestic violence.

Attorney Patti Levinson will address alternatives to litigation and the use of mediation to resolve a divorce dispute between the parties. Litigation in a court proceeding is not always the only option; a discussion will be presented addressing alternative methods for resolving a family dispute or divorce.

Please join us on March 18, 2020, for this FREE presentation.

Registration is required as seating is limited.

New 2020 Tax Law May Require Immediate Changes to Your Estate Plan

Mon, 16 Mar 2020 16:29:09 GMT

Full Article: https://www.dailyherald.com/submitted/20200312/new-2020-tax-law-may-require-immediate-changes-to-your-estate-plan

Introducing “Lavelle Law Minute” - a new video series!

Thu, 12 Mar 2020 16:24:33 GMT

Introducing a new video series, “Lavelle Law Minute.” The Lavelle Law attorneys will be producing short, informative videos, answering frequently asked questions in the area of law that they practice. We will post a new video every week, covering a plethora of topics. If you have a subject or question you would like us to discuss in an upcoming video, send us the question using this link: http://bit.ly/2W0HWKO . Or, contact Ted McGinn at 847-705-7555 or tmcginn@lavellelaw.com .

Lavelle Law Attorneys Host Free Informational 'Navigating Divorce' Seminar (L-R) Lavelle Law family law attorneys Amil Alkass, Kristina Alkass, Patti Levinson and Colleen Hurley will be speaking at th

Mon, 02 Mar 2020 22:31:16 GMT

Full article: https://www.dailyherald.com/submitted/20200227/lavelle-law-attorneys-host-free-informational-navigating-divorce-seminar

What Happens When My Case Goes to Court?

Mon, 17 Feb 2020 22:52:58 GMT

This podcast, with Lavelle Law attorney James Doerr, provides a brief overview of the criminal justice system as a case progresses through the criminal justice system.

Podcast Link

Joshua A. Nesser Named a Shareholder at Lavelle Law

Mon, 10 Feb 2020 21:12:14 GMT

Full article: https://www.dailyherald.com/submitted/20200205/joshua-a-nesser-named-a-shareholder-at-lavelle-law

Police-citizen Encounters: a Fourth Amendment Discussion of Recent Decisions

Mon, 20 Jan 2020 22:00:16 GMT

During this podcast, defense attorney James Doerr discusses Fourth Amendment considerations in police-citizen encounters.
Podcast Link

Identity Theft in the New Decade

Tue, 14 Jan 2020 16:52:34 GMT

Identity theft is the illegal acquisition of one’s Personal Identifiable Information (PII). Identity theft is the fastest growing crime in the country according to the FBI. It has been the number one complaint the FTC has received for the last 17 years. There are a number of areas of identity theft-Financial, Medical, Motor Vehicle, Criminal, Child, Tax, Synthetic, and Social Security. Identity theft originates from some type of breach, which creates data loss and identity theft generally follows. Join attorney Ted McGinn and his guest, Ed Haag of Undo Identity Theft Inc., as they shed light on the dark web and discuss how to protect yourself from falling victim to identity theft.
Podcast Link

The Constitution in Our Daily Lives

Wed, 18 Dec 2019 21:26:54 GMT

The U.S. Constitution is the framework of our laws in the judicial system, which protects citizens of the United States. However, many people take their everyday freedoms for granted. Listen in as attorney James Doerr discusses overlooked ways in which the Constitution touches upon our daily lives.

Podcast Link

Lavelle Law recognized by University of Illinois College of Law

Fri, 13 Dec 2019 23:48:54 GMT

Lavelle Law is honored to receive special recognition from the University of Illinois College of Law. Dean, Vik Amar along with Executive Assistant Dean, Greg Miarecki, presented us with Platinum Level status for the 2018-2019 Employer Honor Roll. We are proud that five of our attorneys are U of I College of Law alumni and we look forward to continuing our relationship as we welcome two new law clerks who will be starting next month in our Chicago office.

Legislative Updates for 2020

Tue, 03 Dec 2019 20:54:04 GMT

During this podcast, defense attorney James Doerr discusses legislative updates and how they impact expungement for cannabis possession, privacy concerns, and much more.

Podcast Link

Lavelle Law Charities Holiday Food Drive Exceeds Expectations

Wed, 27 Nov 2019 16:35:57 GMT

Full article: https://www.dailyherald.com/submitted/20191125/lavelle-law-charities-holiday-food-drive-exceeds-expectations

Lavelle Law expands with four new attorneys

Wed, 27 Nov 2019 16:33:29 GMT

Full article: https://www.dailyherald.com/submitted/20191126/lavelle-law-expands-with-four-new-attorneys

Employment Law Update

Wed, 20 Nov 2019 22:47:38 GMT

January 8, 2020
7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127
Schaumburg, IL 60173

With the legalization of recreational marijuana use and other laws impacting the workplace scheduled to take effect January 1, 2020, it is time to review your employment practices to make sure you are doing everything you can to protect your company. Join Lavelle Law’s employment law attorneys as they discuss several critical issues, including the need to update employee handbooks in light of changing laws, employment disputes and proper termination procedures, and the use and enforceability of non-compete agreements and other restrictive covenants.

Please join us on January 8, 2020, for this FREE presentation.

Registration is required as seating is limited.

Lavelle Law Charities Food Drive - 2019

Tue, 19 Nov 2019 18:56:39 GMT

This year, the Lavelle Law Charities Food Drive benefiting the Schaumburg Township Food Pantry broke all records! We thank our corporate sponsors and all those in the community who donated, as well as the 27 donation sites for their support of this important cause. All of the donations were delivered to the Schaumburg Township Food Pantry, filling up one entire room and spilling into two others! The Schaumburg Township Food Pantry serves approximately 700 families every month and we support the work they do to stamp out hunger. At Lavelle Law, we are proud to support our community and the Schaumburg Township Food Pantry.

Attorney Kerry Lavelle Speaks at Arkansas Bar Association Event

Wed, 13 Nov 2019 18:01:24 GMT

Full article: https://www.dailyherald.com/submitted/20191111/attorney-kerry-lavelle-speaks-at-arkansas-bar-association-event

Accidents in Uber and Lyft

Wed, 30 Oct 2019 19:50:24 GMT

Personal injury attorney Joseph Vito discusses your rights and legal action that may be available to you if you are in a car accident involving a ridesharing service like Uber or Lyft.

Podcast Link

Intent in Criminal Law – From Common Law to Modern Legislation

Wed, 30 Oct 2019 19:45:34 GMT

In this podcast, defense attorney James Doerr discusses the concept of intent in criminal law including both modern usage and history.

Podcast Link

Litigation – The Last Resort

Mon, 28 Oct 2019 20:38:18 GMT

Meet Matt Sheahin, Lavelle Law’s Partner in charge of the litigation practice group. Matt and his team at Lavelle Law have over 100 years collectively of trusted counsel and a proven track record for zealous advocacy and obtaining favorable results in the courtroom. However, the philosophy of our group is that litigation is a LAST resort. Our goal is to resolve business disputes, such as breach of contract, trademark infringement, shareholder disputes, and business divorce before it reaches the point of litigation, if at all possible. If you would like to discuss whether or not you have a case, or if you are being sued, contact Matt Sheahin at msheahin@lavellelaw.com or 847-705-7555. We offer a free initial consultation and it is definitely worth a phone call to discuss your options.

Take Your Business to the Next Level!

Thu, 10 Oct 2019 18:35:43 GMT

Do you want to grow your business with a dedicated business coach? In this podcast, Lavelle Law attorney Steve Migala is joined by Josh Grodzin from Next Level Northwest, to discuss a great opportunity for existing businesses to expand and improve their business with the help of a business coach. Josh explains the unique structure of Next Level Northwest, an exciting business accelerator program offered to eligible businesses in the Chicago suburbs of Elk Grove Village, Schaumburg, Hoffman Estates, Rolling Meadows, and Hanover Park.

Podcast Link

Contracts Gone Bad & Other Business Disputes

Wed, 09 Oct 2019 16:08:26 GMT

November 13, 2019
7:45 AM – 9:00 AM

1933 N. Meacham Rd., Suite 127
Schaumburg, IL 60173

The last place you want to be as a business owner is in court. However, a well-drafted agreement can either prevent a courtroom fight or give you the upper hand if the dispute ends up in litigation. In our November Breakfast Briefs, Lavelle Law’s litigation team will show you how key provisions in your contracts – among business owners, between you and your employees, and with your customers, clients, and vendors – can help avoid litigation or provide you with the leverage you need to be successful in court. At Lavelle Law, unlike many other firms, we approach litigation as the “last resort.” We advocate on your behalf and explore all avenues to resolve legal issues before resorting to litigation. Because of this approach, we can typically save our clients time, money, and the headaches that often occur during long, drawn-out court battles.

If you would like to learn more about business litigation or if you want a legal “check-up” to make sure you are protected from unnecessary legal action, don’t miss this informative seminar.

This is a free seminar, but registration is required as space is limited. To register, email Danielle Palermo at dpalermo@lavellelaw.com .

Lavelle Law Charities gets early start to Food Drive

Tue, 08 Oct 2019 15:02:51 GMT

Full article: https://www.dailyherald.com/submitted/20191007/lavelle-law-charities-gets-early-start-to-food-drive

CPAs: Be Aware of the Accountant’s Privilege and Protect Yourself!

Thu, 03 Oct 2019 15:07:12 GMT

In this podcast, attorney Matt Sheahin discusses the accountant’s privilege, what it means for accountants, and how CPAs can us this legal protection to their benefit.

Podcast Link

Lavelle Law News and Events

COBRA Coverage Explained: What Employees and Employers Need to Know

Success Story - Strategic Defense in Probate Property Dispute

Spring Cleaning: Dusting Off Your Estate Plan

Tim’s Tax News on the Tenth – April 2026

IRS Announces Filing Season is Progressing Smoothly ﻿

Lavelle Law Presents an "Entrepreneurial Boot Camp"

A Lavelle Law Breakfast Briefs ﻿

Buying a Business

Don’t Let a Handshake Cost Millions: Lessons from the Chance the Rapper Manager Dispute

Success Story – Strategic Timing Saves Client $330K in Federal Tax Debt

Play Ball with Lavelle Law! Join us April 9!

An SBA Business After Hours Event

Tim’s Tax News on the Tenth – March 2026

IRS Announces its Dirty Dozen Tax Scams for 2026

New Illinois Employment Laws for 2026 – a Recording

A Breakfast Briefs Recording

IRS Issues New Guidance to Benefit Businesses’ Capital Improvements

Banking and Business – February 2026

New FinCEN Reporting Rule for Certain Residential Real Estate Transactions

Tim’s Tax News on the Tenth – February 2026

Bankruptcy Cannot Discharge Taxpayer’s Questionable Tax Liabilities

Supreme Court Allows Candidates to Challenge Vote-Counting Rules

Sarah Reusché: Rooted in Community

Success Story - Smooth Acquisition of Fast Food Franchise Assets

Elgin Chamber Chat: KCT and Lavelle Law

Appointed Agent Under Power of Attorney for Property? Know the Law Before You Act!

New Year, New Employment Laws: Key Illinois Changes Effective 2026

A Lavelle Law Breakfast Briefs Seminar

Tim’s Tax News on the Tenth – January 2026

Bankruptcy Can Discharge Some Tax Liabilities

Elgin Area Chamber announces attorney Steven A. Migala as 2026 board chair

Success Story: Lavelle Law Secures Emergency Guardianship and Protects a Vulnerable Mother from Exploitation

Rise in Wiretapping Litigation Should Prompt Dealers to Audit Their Data Tracking Tools

Cheers to 2026! Happy New Year from Near and Far

New Year, New Laws – 2026

Over 280 New Illinois Laws are going into effect in 2026. Listed below are some that may have a significant impact on you or your business.

Tim’s Tax News on the Tenth – December 2025

IRS Issues Guidance on Trump Accounts Established Under the Working Families Tax Cuts

How Do I Find the Right Law Firm?

Condominium Law in IL: Updates, HOA Strategies, and Financing Insights

A Breakfast Briefs Recording

Understanding Grandparent Visitation Rights in Illinois

The 2025 Lavelle Law Charities Food Drive - A Heartfelt Thank You

Tim’s Tax News on the Tenth – November 2025

Impact of Partial Government Shutdown on IRS – Day 41

Success Story - $65 Million Sale of Business

Illinois Condominium Law: Updates, HOA Strategies, and Financing Insights

A Lavelle Law Breakfast Briefs Seminar ﻿

Illinois Legislature Increases Key Debtor Exemptions Starting on January 1, 2026

Put Your Home in a Trust to Avoid Probate

Tim’s Tax News on the Tenth – October 2025

IRS Has Started to Phase Out Paper Tax Refund Checks

The 2025 Lavelle Law Charities Food Drive is Underway!

Marital Agreements, Collaborative Divorce, and Child Custody in Illinois

A Breakfast Briefs Recording

Success Story – Lavelle Law Saves Dealership Client Thousands for Alleged Advertising Violations

What Would a Taylor-Travis Prenup Look Like?

Tim’s Tax News on the Tenth – September 2025

One Big Beautiful Bill’s No Tax On Tips ﻿

Banking and Business – September 2025

Does the Expiration of the Statute of Limitations for a Mortgage Extinguish the Mortgage Lien?

New Illinois Small Estate Affidavit Law: Key Updates for 2025

Who Gets the Pet in the Divorce?

Success Story – Lavelle Saves Homeowner from Real Estate Tax Bill Disaster

Why the Motor Vehicle Franchise Model Enhances Competition and Protects Consumers More Than the Direct-to-Consumer Model from OEMs like Tesla

Essential Guide to Marital Agreements, Collaborative Divorce, and Child Custody

A Lavelle Law Breakfast Briefs Seminar

Tim’s Tax News on the Tenth – August 2025

One Big Beautiful Bill

Success Story – Saved Client $1 Million in Estate Tax

Know the Law Before You Hit Record! Comments on the Illinois Eavesdropping Statute

Summer Special! Discounted Rate on Powers of Attorney for College-bound Students and Young Adults

Summary of the One Big Beautiful Bill Act and Its Tax Implications

The Impact of New Tax Bill - The One Big Beautiful Bill Act - a videocast

The Impact of New Tax Bill - The One Big Beautiful Bill Act

How Do I Get the Other Party to Pay My Attorney’s Fees?

Reconciliation of Common Area Maintenance Charges, Taxes, and Insurance: What to Know

Banking and Business – July 2025

Delaware Supreme Court’s Analysis of Indemnification Notices in Merger and Escrow Agreements

IRS Announces Filing Season is Progressing Smoothly

A Lavelle Law Breakfast Briefs

A Lavelle Law Breakfast Briefs Seminar

One Big Beautiful Bill’s No Tax On Tips

Failure to Follow a Court’s Order Could Result in Paying the Other Party’s Attorney’s Fees