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Accounting Solutions Ltd., 3227 W Bryn Mawr Avenue, Chicago, IL (2026)

We excel at timeliness and communication, while providing results at a reasonable price point.

09/02/2026

AI Hallucinated Tax Law Causing Major Problems For Entrepreneurs

A recent Tax Court case, Clinco, T.C. Memo. 2026-16, shows exactly what not to do when using Artificial Intelligence (AI). The decision provides a cautionary example for all entrepreneurs navigating the growing use of AI in accounting, tax, and legal research

The case involved the 2015 tax return of Peter L. Clinco, an attorney and entrepreneur who co-owned and operated MedCafe Westwood, a restaurant and bar near the University of California at Los Angeles.

The IRS audited the return and determined through a bank-deposit analysis that MedCafe’s gross receipts for the restaurant were underreported on Clinco’s Schedule C by more than $2.2M. Additionally, the court found Clinco was not entitled to $56,798 in depreciation deductions for two rental properties due to a lack of substantiation.

He challenged the IRS’s determinations in Tax Court, but the court upheld them. An unusual aspect of the opinion involved Judge Holmes' faulting Clinco’s attorney for submitting briefs citing nonexistent cases that the judge said appeared to have been hallucinated by generative AI.

Among other things, Clinco challenged the validity of a notice of deficiency because it lacked a manual “wet” signature. His attorney cited four cases supporting this argument, three of which the court described as likely large language model AI hallucinations.

The cases the court said appeared to be hallucinations were...

1 - Cacchillo, 130 T.C. 132 (2008): The taxpayer’s counsel claimed this case held that an improperly signed notice of deficiency ousted the court of jurisdiction. In reality, the case doesn't exist.

2 - Miller, 57 T.C. 440 (1971): This citation allegedly clarified formal signature requirements, but the case has no mention whatsoever of deficiency notices.

3 - Tefel, 118 T.C. 324 (2002): The court described this as nonexistent, noting that the cited page actually refers to Hillman, 118 T.C. 323 (2002), a case regarding S corporation management fees.

The court explicitly warned the attorney that submitting a brief filled with fictitious caselaw is a clear violation of Civil Procedures and is a "recipe for sanctions." Judge Holmes further stated that utilizing unchecked AI hallucinations in court is completely unacceptable.

The taxpayer ultimately lost the case on its merits. The Tax Court upheld the IRS's original assessment, holding the taxpayer liable for nearly $2.3 million in tax deficiencies stemming from unreported restaurant income and undocumented depreciation deductions.

Let me leave you with this...

Did I mention that this guy was an attorney? Of course they threw the book at him charging additional tax, interest and penalties.

This isn't an isolated case. There are several that I could have written about, but I used this one because it's such a blatant misuse of AI.

Do yourselves a favor. If you have an accounting or tax question, call a professional you trust and actually listen to their answer.

Don't google the question and then call the professional. Nothing rankles more than a client who wants to take my time to provide a professional answer and then questions it based on an AI answer.

Artificial Intelligence fails for many reasons, but the most common is that it doesn't actually speak our language. We have a specific nomenclature, unused by the outside world, that AI generally can't interpret.

A common difficulty is the use of the words "Self-Employed". In tax law that refers specifically to the law regarding a Sole Proprietor.

But how could generative AI know that this doesn't refer to the President of an S Corp or the Managing Member of an LLC who is also self-employed? Of course, AI gets it wrong.

Don't end up in hot water like Mr. Clinico, the attorney. If you have a question, please call.

And as always, if you're having difficulties with your accounting and tax work, I'm waiting to hear from you.

We're all going to get through this. Let's get through it together..

Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, Accounting and Tax Work, Tax Planning, or Tax Representation, you have but to ask. I'm here and I remain,

Sincerely yours,

Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300

www.AccountingSolutionsLtd.com

Disclaimer: The content on our website or newsletter is provided solely for general informational purposes and should not be construed as tax, accounting, legal, investment, or professional advice of any kind. Accessing this information does not create, and is not intended to create, an accountant-client relationship. This information may not reflect the most current tax laws, accounting standards, or regulatory developments and may not apply to your specific jurisdiction or circumstances. It is not a substitute for consulting qualified professionals. Before making any decisions or taking any actions, you should seek advice from a professional who is fully informed of all relevant facts pertaining to your situation.

Tax-related content on this site is not intended, nor may it be used by any taxpayer, to avoid penalties that may be imposed under applicable tax laws. To comply with IRS requirements, we inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.

All information is provided “as is,” without any guarantee of completeness, accuracy, or timeliness, and without any warranty, express or implied, including but not limited to warranties of performance, merchantability, or fitness for a particular purpose. We disclaim all liability for any loss or damage arising from reliance on this information.

Links to third-party websites are provided for convenience only; we do not endorse or assume responsibility for their content. All materials are the property of our firm and may not be reproduced without prior written consent.

08/28/2026

Entrepreneurs Are Taking Advantage Of Illinois' Newest Tax Credit

During a shoot in suburban Chicago last month, Ellen White, the chief executive of sustainability consultancy EcoFixr stood beside a neat row of receptacles marked “landfill,” “compost” and “mixed recycle” while the crew working on a Walgreens commercial finished its catered Mexican lunch. When it was time for the workers to clear their salsa-stained plates, White gently directed each toward the correct receptacle for disposal.

She'd been hired to help the crew comply with new standards established by the Illinois Film Office for projects seeking green certification, a designation that makes those already taking advantage of the state’s Film Production Tax Credit Incentive Program eligible for an additional 5% credit. The production’s bottom line depended on whether the crew scraped what was left of their tacos into the bin designated for compost.

Some of the highlights of the Illinois Film Production Credit include...

1 - The base credit is 35% on qualified Illinois expenditures, including post-production and resident salaries up to $500,000 per worker.

2 - A 30% credit is available on non-resident salaries up to $500,000 per worker which is capped at 13 non-resident crew members.

3 - An additional 5% credit is available on labor expenditures for hiring Illinois residents in counties outside of Cook, DuPage, Kane, Lake, McHenry, and Will counties

4 - There's another 5% credit when a television series relocates to Illinois.

5 - And an additional 5% credit for projects certified as sustainable green productions through the Illinois Film Office.

Further qualifications include...

1 - A minimum spend of $100,000 for projects over 30 minutes and $50,000 for projects under 30 minutes.

2 - Expenses incurred from the final script stage through the end of post-production are eligible.

3 - Claims must be filed upon completion of production and no later than two years following completion

Let me leave you with this...

For years, California officials agonized over rising competition from a few select locations in North America. First came British Columbia, New Mexico and Louisiana, then Georgia, New York and others that made themselves viable alternatives to shooting in the so-called "Thirty Mile Zone" around L.A. Studios. Now the playing field has expanded even further.

California lost more than 42K film and television jobs in Los Angeles County between 2022 and 2024 .

Illinois received a major boost in 2012, when the Dick Wolf-produced NBC procedural Chicago Fire began shooting here, soon followed by sister series Chicago P.D. and Chicago Med. The trio is filmed at Cinespace Studios, a sprawling facility housed in a former steel plant on Chicago’s West Side.

Illinois has become the sunny obverse of California, where years of policy drift squandered the state’s competitive advantage and left it playing catch-up. Our state is now No. 6 among U.S. film and television production destinations, according to an analysis of publicly available data by Entertainment Partners, a production-services company.

Last year, Illinois provided $210 million in incentives, which generated $703 million in production spending.

While California lawmakers wrestled with the status of the state’s incentive program, more than 25 films, television shows, and commercials were either in production or preparing to shoot in Illinois during a week in early July. Among them was the Walgreens commercial crew.

They weren’t just making an ad. They were also composting.

Back in the early '70s under Boss Daley, Chicago was a Union Town. And if you were going to work in theater you had to join the union.

So I became the youngest member at 4 years and 11 months old to ever join Actor's Equity back in 1970. I was cast to play Tiny Tim in A Christmas Carol at the now shuttered Mill Run Theater.

I held that distinction for almost a year until some rugrat beat me by a lousy three weeks.

Since many of the larger Ad Agencies were here back then, Chicago was also a major hub for producing commercials and other ad campaigns. I found myself doing tons of commercials both on and off camera.

As a retired member of SAG, AFTRA, and Actor's Equity, my firm has always been the go to shop for many Production Houses, Entertainment Venues, and Individual Entertainers. Since a lot of this work is coming home, I find myself going to Los Angeles a lot less.

The last time I flew home, it took forty-five minutes for my Uber to get from Gate 1 to Gate 7 at LAX at 2 PM on a Thursday! Has it ever taken you the better part of an hour to get anywhere at O'Hare?

At least I'm wasting less time in Ubers nowadays.

If you have questions about these Illinois Film Credits or are having difficulties with your accounting and tax work, I'm waiting for your call.

We're all going to get through this. Let's get through it together...

Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, Accounting and Tax Work, Tax Planning, or Tax Representation, you have but to ask. I'm here and I remain,

Sincerely yours,

Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300

www.AccountingSolutionsLtd.com

Disclaimer: The content on our website or newsletter is provided solely for general informational purposes and should not be construed as tax, accounting, legal, investment, or professional advice of any kind. Accessing this information does not create, and is not intended to create, an accountant-client relationship. This information may not reflect the most current tax laws, accounting standards, or regulatory developments and may not apply to your specific jurisdiction or circumstances. It is not a substitute for consulting qualified professionals. Before making any decisions or taking any actions, you should seek advice from a professional who is fully informed of all relevant facts pertaining to your situation.

Tax-related content on this site is not intended, nor may it be used by any taxpayer, to avoid penalties that may be imposed under applicable tax laws. To comply with IRS requirements, we inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.

All information is provided “as is,” without any guarantee of completeness, accuracy, or timeliness, and without any warranty, express or implied, including but not limited to warranties of performance, merchantability, or fitness for a particular purpose. We disclaim all liability for any loss or damage arising from reliance on this information.

Links to third-party websites are provided for convenience only; we do not endorse or assume responsibility for their content. All materials are the property of our firm and may not be reproduced without prior written consent.

08/26/2026

What All Entrepreneurs Should Know About The Voluntary Disclosure Program

The IRS Voluntary Disclosure Program (VDP) has long offered taxpayers with unreported income a path to compliance before the agency discovers the problem independently. In 2026, proposed changes to the program's penalty structure are reshaping the math in our favor for coming forward.

Major changes in the proposal include...

1 - The program replaces the current 75% civil fraud penalty with a standardized 20% accuracy-related penalty.

2 - Taxpayers generally disclose income and assets over a six-year period.

3 - The agency aims to process and close cases within a 120-day target.

4 - Participants must pay all owed taxes, interest, and penalties in full within three months of receiving conditional approval, meaning installment plans are not allowed.

The program covers a wide range of situations, including but not limited to...

1 - Unreported foreign bank accounts and offshore income,

2 - Unreported domestic cash business income,

3 - Cryptocurrency gains,

4 - Freelance earnings,

5 - And inherited accounts generating taxable returns.

The most significant benefit is that taxpayers who come forward before the IRS initiates an examination generally avoid criminal prosecution. Given that willful tax evasion carries potential prison sentences of up to five years and fines up to $250,000, the civil penalty route represents a fraction of the criminal exposure.

Let me leave you with this...

I had a guy walk into my office last Monday for a complimentary tax planning session. The IRS was auditing his 2024 and 2023 Personal Income Tax Returns.

He had over $700K in W-2's on the return and several Airbnb rentals. He'd completed the returns himself using a common store bought tax program.

I looked at the 2024 return and immediately focused on a Schedule C Sole Proprietor's Return with $70 in income and a deducted loss of over $59K.

I asked him what this was and it was one of his Rental Properties. Of course, passive income such as this belongs on a Schedule E with Real Estate, where the loss would have been limited to $25K.

But I started picking through the individual deductions, and he had claimed an auto expense deduction of over $23K. At $0.67 per mile, that came to over 34K miles!

I asked him how it was possible to drive over 34K miles and only earn $70 in gross income? He asked me why I was talking about mileage.

The $23K was the total amount he had paid for the car, which, of course, can't be deducted.

There were other glaring mistakes, like claiming a $59K deduction with only $70 in income. How this guy expected to be audited and not put into the slammer is beyond understanding, but I'm sure you catch my drift.

I hadn't seen a more glaring example of income tax evasion in quite some time.

He asked what he should do and I told him that he should immediately go to the Revenue Officer, plead ignorance, show them everything that he had done wrong, and beg for mercy.

He looked at me like I was nuts and asked, "Why would I ever do that? Even in a full audit, the IRS probably won't catch half of what you noticed."

I asked the man politely to leave. Okay, maybe I wasn't so polite.

It should be understood that tax law, being an adjunct of criminal law, is about intent. If they can prove willful intent, they can and will throw the book at you. He was already being audited, so the VDP wasn't an option.

But understand that if you find yourself in one of these situations, for whatever reason, the program is probably a great idea. It lowers the penalty from 75% to 20% and generally removes the potential for jail time.

Tax compliance is a religion to most IRS Employees. If you can show them that you had a "Come To Jesus" moment, have seen the error of your ways, and won't do it again, they'll probably go easy on you.

If not, then you could be the next contestant on that fun-filled, family gameshow called, "Don't Drop The Soap."

Think about it.

If you're having problems with your accounting and tax work, we'd love to help. Please click the button below to schedule a complimentary tax planning appointment. You'll be glad you did.

We're all going to get through this. Let's get through it together..

Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, Accounting and Tax Work, Tax Planning, or Tax Representation, you have but to ask. I'm here and I remain,

Sincerely yours,

Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300

www.AccountingSolutionsLtd.com

Disclaimer: The content on our website or newsletter is provided solely for general informational purposes and should not be construed as tax, accounting, legal, investment, or professional advice of any kind. Accessing this information does not create, and is not intended to create, an accountant-client relationship. This information may not reflect the most current tax laws, accounting standards, or regulatory developments and may not apply to your specific jurisdiction or circumstances. It is not a substitute for consulting qualified professionals. Before making any decisions or taking any actions, you should seek advice from a professional who is fully informed of all relevant facts pertaining to your situation.

Tax-related content on this site is not intended, nor may it be used by any taxpayer, to avoid penalties that may be imposed under applicable tax laws. To comply with IRS requirements, we inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.

All information is provided “as is,” without any guarantee of completeness, accuracy, or timeliness, and without any warranty, express or implied, including but not limited to warranties of performance, merchantability, or fitness for a particular purpose. We disclaim all liability for any loss or damage arising from reliance on this information.

Links to third-party websites are provided for convenience only; we do not endorse or assume responsibility for their content. All materials are the property of our firm and may not be reproduced without prior written consent.

08/24/2026

Local Property Tax Increases Higher Than Inflation Rate Again

Cook and DuPage County Homeowners are again facing a sharper increase in property taxes this year than businesses. Once again, these increases are higher than the local rate of inflation.

In Cook County...

1 - Local governments countywide are seeking $743.8M in new taxes, bringing the total that property owners must pay to more than $19.9B.

2 - This is an increase of about 3.9%.

Meanwhile, in DuPage County...

1 - Local governments are getting another $143.8M in property taxes bringing the countywide total to $3.76B.

2 - That's an average increase of 3.86%

Local inflation was only 3.1%.

In the past 30 years, tax increases have pushed up the total tab for property taxes in Cook County by $12.9B, or 184%. The average rate of inflation over that period was only about 80%.

Just in case you're not keeping count, that's more than double.

Local governments such as cities, villages, park districts, school districts, and the counties themselves keep asking for more money.

This is the fifth consecutive year that the increased tax burden has fallen mostly on homeowners, as commercial property values have declined or grown at a much slower pace than those for homes.

Let me leave you with this...

It ain't called "Crook" County for nothing.

If you're a property owner in any of the local jurisdictions, you need a property tax attorney on retainer to consistently fight these ridiculous increases. Without one, a couple of things may happen.

1 - You might go broke.

2 - The value of your property won't increase as quickly as it could because the property taxes will be too high.

When you go to sell a property, most buyers look at their monthly nut. If your property taxes are higher than they should be, it will decrease the amount buyers can afford for the principal and interest on a mortgage.

This will in turn decrease what you can get for the property.

If you need help in this regard, I have a couple of property tax attorneys that have done some great work for me.

And as always, if you're having problems with your accounting and tax work, I'm waiting for your call.

We're all going to get through this. Let's get through it together..

Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, Accounting and Tax Work, Tax Planning, or Tax Representation, you have but to ask. I'm here and I remain,

Sincerely yours,

Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300

www.AccountingSolutionsLtd.com

Disclaimer: The content on our website or newsletter is provided solely for general informational purposes and should not be construed as tax, accounting, legal, investment, or professional advice of any kind. Accessing this information does not create, and is not intended to create, an accountant-client relationship. This information may not reflect the most current tax laws, accounting standards, or regulatory developments and may not apply to your specific jurisdiction or circumstances. It is not a substitute for consulting qualified professionals. Before making any decisions or taking any actions, you should seek advice from a professional who is fully informed of all relevant facts pertaining to your situation.

Tax-related content on this site is not intended, nor may it be used by any taxpayer, to avoid penalties that may be imposed under applicable tax laws. To comply with IRS requirements, we inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.

All information is provided “as is,” without any guarantee of completeness, accuracy, or timeliness, and without any warranty, express or implied, including but not limited to warranties of performance, merchantability, or fitness for a particular purpose. We disclaim all liability for any loss or damage arising from reliance on this information.

Links to third-party websites are provided for convenience only; we do not endorse or assume responsibility for their content. All materials are the property of our firm and may not be reproduced without prior written consent.

08/21/2026

IRS To Stop Illegals From Receiving Refundable Tax Credits

The Internal Revenue Service posted a set of proposed regulations prohibiting undocumented immigrants from receiving much of the money from refundable tax credits such as the Earned Income Tax Credit, the Child Tax Credit, the Adoption Tax Credit and the American Opportunity Tax Credit.

The proposed regulations aim to apply and clarify a federal law passed in 1996, the Personal Responsibility and Work Opportunity Reconciliation Act, under the Clinton Administration. But they also reflect the priorities of the new administration, which has sought to curb illegal immigration through increased enforcement by Immigration and Customs Enforcement, as well as provisions in the One Big Beautiful Bill Act.

Under the Personal Responsibility and Work Opportunity Reconciliation Act, only U.S. Citizens, U.S. Nationals, and Qualified Aliens are eligible to receive federal public benefits.

The proposal unveiled Wednesday uses a legal analysis by the Justice Department's Office of Legal Counsel concluding that the refunded portions of the affected credits are federal public benefits.

To receive the refunded portion of an affected credit, a taxpayer must...

1 - Be a U.S. Citizen, U.S. National, or Qualified Alien on the date the taxpayer files the federal income tax return first claiming the credit. Qualified aliens include lawful permanent residents, asylees, refugees and certain other groups defined or specified under PRWORA.

2 - Declare on the tax return, under penalty of perjury, that the taxpayer is eligible to receive the refunded portion of the credit.

3 - For a joint return, only one spouse must be a U.S. Citizen, U.S. National or Qualified Alien.

Only the refunded portion of the affected credits would be treated as a federal public benefit.

A taxpayer who is not qualified to receive the refunded portion could still claim any portion of an affected credit for which the taxpayer otherwise qualifies that generally offsets income tax liability. However, the proposed rules are likely to severely limit the size of the benefit for many recipients.

The proposed regulations would apply to tax years ending on or after the date the regulations are published as final regulations.

Even though this is just a proposal at this time, you know they're going to push this through. They normally only float tax proposals to soften the blow once it goes into place.

Let me leave you with this...

The Illinois Tollway Board’s unanimous Wednesday vote to raise fares for the first time in nearly 15 years is expected to bring in an extra $1B each year. The agency says that the money is needed to fund an expanding portfolio of construction projects.

The new toll rates start Jan. 1.

The hike is 45 cents per passenger vehicle at the most common toll plaza, which charges 75 cents. That toll will become $1.20, a 60% jump.

But the toll hike varies between 50% and 66% among plazas that charge more or less than that. For commercial vehicles, tolls will increase an average of 30%.

In an unprecedented move, the board also voted to raise future toll rates automatically every two years, tied to the rate of inflation. Those increases would begin in 2029.

toll hikes would match changes to the consumer price index but would be capped at 8%. The increase, was made possible by the state’s new transit funding law, which Gov. Pritzker signed last year.

When does it end? How many residents need to leave our state before they stop this madness?

I'm a born and bred Chicagoan who was born in Old Town, raised in Ravenswood, and lives in Sauganash. I can remember when the toll on the Skyway was a quarter.

Now it's $8.10. Does this mean that with a 60% increase it will go up to $12.96?

And the people leaving Illinois are mostly the One Percenters who pay the taxes that keep the state open. Who's going to pay for all of this once they're gone?

Will Illinois need to go bankrupt before they learn from this insanity?

I guess time will tell.

As always, if you're having problems with your accounting and tax work, please contact us today. We'd love to help.

We're all going to get through this. Let's get through it together..

Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, Accounting and Tax Work, Tax Planning, or Tax Representation, you have but to ask. I'm here and I remain,

Sincerely yours,

Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300

www.AccountingSolutionsLtd.com

Disclaimer: The content on our website or newsletter is provided solely for general informational purposes and should not be construed as tax, accounting, legal, investment, or professional advice of any kind. Accessing this information does not create, and is not intended to create, an accountant-client relationship. This information may not reflect the most current tax laws, accounting standards, or regulatory developments and may not apply to your specific jurisdiction or circumstances. It is not a substitute for consulting qualified professionals. Before making any decisions or taking any actions, you should seek advice from a professional who is fully informed of all relevant facts pertaining to your situation.

Tax-related content on this site is not intended, nor may it be used by any taxpayer, to avoid penalties that may be imposed under applicable tax laws. To comply with IRS requirements, we inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.

All information is provided “as is,” without any guarantee of completeness, accuracy, or timeliness, and without any warranty, express or implied, including but not limited to warranties of performance, merchantability, or fitness for a particular purpose. We disclaim all liability for any loss or damage arising from reliance on this information.

Links to third-party websites are provided for convenience only; we do not endorse or assume responsibility for their content. All materials are the property of our firm and may not be reproduced without prior written consent.

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