Reporting requirements for US citizens abroad
U.S. citizens are generally taxed on their worldwide income regardless of where the income is earned or received. A U.S. citizen who earns income in a foreign country may also…
Category: Consumer Columnists
Read More
Filipino survivors of human labor trafficking bring “Employers” to justice
EARLY this month, state and local law enforcement arrested employers who were operating adult residential and child care facilities in the Bay Area. The employers were charged with human trafficking…
What are the pros and cons of filing for bankruptcy?
LET’S assume that you have incurred too much debt. What do I mean by too much debt? By this I mean that you are now a slave to creditors because…
3 reasons why filing bankruptcy might make sense for your situation
NO one ever likes to talk about bankruptcy. However, it’s simply a fact of life. Things happen. Whether it’s losing your job, going through a divorce, having huge medical bills…
What do you bring to an IRS audit?
THE IRS will tell you what records to bring to an audit. The requested documents varies based on your situation. They will need support for income that you report and…
Do you have enough witholding?
Part 2 THE US tax system is on a pay-as-you-go basis. Taxpayers are required to pay most of the tax liabilities during the same year they earn the income. If…
Bank forcloses on client’s house despite Chapter 13 filing
Seniors choose Chapter 7 to discharge $30K and $10K credit cards CLIENT is 47, single and a registered nurse. Her income is good at $80K a year. She has no…
Don’t make these mistakes if you are filing bankruptcy
IF you are considering bankruptcy as a last resort to solve your debt problems, it is important for you to have your case evaluated by a professional who can advise…
Client files adversary against debtor for $370K
THE client is a foreign company that has been doing business with a California company since 2012. The client is one of the world’s largest manufacturers of a certain kind…
Same-sex harassment at work equally illegal
(Employer’s failure to prevent is actionable) COLE H worked as a truck driver for Beverly Fabrics for eight years. During the last 5 years of his employment, he experienced bullying…
What happens after an IRS audit is completed?
WHEN an audit is completed, you will be notified of the Agency’s determination: 1. No change: IRS accepts your returns as filed. You will be asked to sign the examination report….
Do you have enough withholding?
THE new tax law could have an impact on how much your employer should withhold from your paycheck. Too little withholding from your paycheck could mean large unexpected tax bill…
Is going to an unethical tax preparer dangerous?
YES, it can be. Going to a tax preparer who increases your refunds with phantom deductions is dangerous. You may have to return that nice refund … and more, sometimes…
Taking leave from work to care for sick family members is protected by law
Q:I HAVE been working for 5 years in a Los Angeles company with 52 employees. I requested a leave of absence from work to care for my sick 21 year-old…
To people who know they need to file bankruptcy but are afraid to do so
“If you own a home and have assets that may be at risk if you were sued by your creditors, it is in your best interest to find out how…
How does the bankruptcy means test work?
WHAT is the means test in bankruptcy? It’s a method for calculating what your household income is for the purpose of determining if you qualify for Chapter 7 or Chapter…
Delinquent tax debt could mean revocation of your passport
IN February 2018, the IRS started certification of individuals with delinquent tax debt to the State Department. How will the IRS certification impact you? • Upon receipt of certification. The…
Does shrinking IRS budget reduce your chance of being audited?
YES, shrinking budget reduces your chance of getting grilled by the IRS. • The main reason for the decline: IRS budget and staff levels are down. • Tax collectors are…
Single mom seeks Chapter 7 relief from $60K credit cards
THE client is 50 and got divorced 10 years ago. Her ex-husband decided that working was not good for him so he just disappeared. They had one daughter that client…
Are you paying your employer’s costs of doing business?
(Your rights to reimbursements may be significant) Q: AS part of my work, I travel to clients using my own car and I pay for gas. I also make several…
Here’s how you can get out of debt safely and legally
ARE you sick and tired of being in debt and having bad credit? Do you want to start over but simply don’t know where to begin? Is filing bankruptcy an…
Should employees pay the cost of “dress code” required at work?
ALEXANDER Brown and Arik Silva worked as retail sales associates at Abercrombie & Fitch Co., a company that operates retail clothing stores throughout the United States. Brown and Silva sued…
Warning: Before you hire a debt settlement company
IF you are delinquent on your debts, you may be able to avoid dealing with the bill collectors for a few months but sooner or later, you will still need…
Does rental property attract IRS audit?
NO, merely renting out your house, condo, or apartment does not attract IRS audits. But yes, there are rental items that attract IRS scrutiny: • Deducting expenses that are disproportionately…
What’s new: Tax cuts and jobs act (Part 2)
1. BLENDED Federal Income Tax Rate: For Corporations tax elected to use a fiscal year will pay a blended tax rate and not the 21% flat rate. The new rate…
Which has less chances of IRS audits – paper or e-file?
BEING audited by the IRS is dreaded by most taxpayers. My clients constantly asked which method increase their chances of getting audited. Let’s compare two methods of filing your tax…
Seniors rely on Chapter 7 and son for debt relief
THE clients are seniors who just stopped working two months ago. The husband is 75 and the wife is 71. They own a house with $140,000 in equity. Their unmarried…
Are you getting paid less because of your gender?
THE California Fair Pay Act (a.k.a. the Equal Pay Act), enacted in October 2015, prohibits employers from paying employees less than those of the opposite sex for “substantially similar work,”…
If you are in debt, this is probably what you’re afraid of
I KNOW we’ve never met. But there’s a common fear that everyone shares when they’re in debt. As a bankruptcy attorney, I hear it from people who consult with me…
What’s new: Tax cuts and jobs act (Part 1)
• PERSONAL exemptions: the personal exemptions for you, your spouse, and dependents are suspended. This line item may not even show on your 2018 Form 1040. • Credits for child…