THE only means an employer can offer employees between taxable and nontaxable benefits is through section 125 plan. What are a section 125 plan, a cafeteria plan, and the IRS requirements for this plan? 1. Cafeteria Plan: Cafeteria plan is a written plan maintained by employer for employees that meets the requirements and regulations of…
AFFECTED Transactions A. Currency Transaction Report (CTR): You must report cash transactions in excess of $10,000 during the same business day. The amount over $10,000 can be either in one transaction or a combination of cash transactions. It is filed with the Internal Revenue Service. B. Monetary Instrument Log (MIL): You must indicate cash purchases…
Both qualify for different chapters of the bankruptcy code MOST debtors prefer to have a Chapter 7 wipe-out of debt. This is called a fresh start without debt. Most debtors who qualify for Chapter 7 debt relief get to keep everything they own but are able to get rid of all of their debt, thus,…
ON May 29, 2018, about 175,000 Starbucks workers at about 8,000 locations will undergo a training on race discrimination. The training session will focus on understanding both racial bias and the history of racial discrimination in public spaces in the United States. Starbucks announced the training session after two black men were arrested for allegedly…
“If you’ve come to the end of your financial rope and don’t know what else to do, it is time to face your debt problems with dignity and do what your situation calls for.” THE last several years have been financially difficult for a lot of people. When the real estate marked crashed a few…
IN February 2018, the IRS will start certification of individuals with delinquent tax debt to the State Department. How will the IRS certification impacts you? • Upon receipt of certification. The State Department will either deny application or revoke current passport or both. • You are overseas. Limited validity passport for direct return to the…
IF you are a US citizen (or dual citizen) residing outside the U.S. but do not report your foreign accounts, you may be subject to harsh penalties—penalties that are more severe than you expect, penalties that can even exceed balances in your accounts. It is therefore critical that you learn the new rules for FBAR…
TERMINATIONS can be difficult situations, particularly where employees see the firing as unfair. The following are some helpful guidelines in navigating this difficult time: First: Make sure that the employment relationship has ended and there is no misunderstanding about this. Employment may end by resignation, lay-off, or discharge. “Discharge” includes involuntary termination (being fired). Second:…
IT can happen to anybody. At one time or another in life, we may be faced with financial and debt issues that seem impossible to overcome. A lot of people end up filing bankruptcy when they get to the point of feeling hopeless about their financial problems. Despite what others may think, there is no…
YOU have not filed your income tax returns for the current year and previous years because: 1) you decided you are not required to file? 2) You are a victim of identity theft and therefore excused? 3) You know you will owe taxes and you will have to pay when you file, decided not to…
I KNOW we’ve never met but if you are facing debt problems, I know there’s a common concern that people share when they are in your situation. As a debt relief attorney, I hear it from people who consult with me every day. t is this: The possibility of losing what they have worked hard…
IF you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing FinCEN Form 114, Report of…
WE recently discussed the problems surrounding employees who are paid only by commission. One of the problems we pointed out was that commissioned employees are often shortchanged when it comes to their rights to rest breaks. Under California law, an employer shall not require an employee to work during a rest period. If an employer…
THE client is 42 and is going through a divorce. It was a short two-year marriage. He has moved out of the marital home and now lives by himself. He has a toddler who is with his wife, so he expects to pay child support. There is not alimony because the marriage has not lasted…
THE Foreign Account Tax Compliance Act (FATCA) requires foreign financial Institutions and other non-financial foreign entities to report on the foreign assets held by their U.S. account holders or be subject to withholding on certain payments. 1. Form 8938 Statement of Specified Foreign Financial Assets: U.S. taxpayers holding financial assets outside the United States must…
A LOT of people who are in over their heads in debt think of filing bankruptcy as their last resort. But they are afraid that they might be making the wrong decision. After all, filing bankruptcy is not something that you do every day. Well, to address that concern, I’d like to first acknowledge the…
IF you have offshore bank accounts, should you report the accounts to the U.S. government? Yes, if the aggregate balances exceed $10,000 at any time during the year. What if you had the accounts before you left for the U.S.? Yes, you should. There are reasons why our government wants to know: combat money laundering,…
WORKERS generally lose when they are classified as independent contractors (ICs) instead of as employees. Companies misclassify real employees as ICs in order to save money. This is good for the employer but not for the employee. Just a few days ago, the California Supreme Court issued a ruling that favors the classification of workers…
FOR most of us, busy driving the kids (or grand-kids) to school, going to work, and trying to pay the bills, the last thing on our minds is our mortality. Perhaps that’s why more than 64% of Americans don’t have a will. It’s also partially because most people don’t like to think about death,” according…
SEC 25C refers to the $500 home or residential energy efficient credit expired after 2016. Sec 25D refers to the solar electric and solar water heating systems residential energy efficient property credit (REEP credit).There is no dollar limit on the credit and credit percentages are: through 2019 the credit amount is equal to 30 %…
Q. AM I required to report bank accounts in a foreign country? A. Yes, if you have more than $10,000 at any time outside the U.S. Q. Am I exempted if my accounts are in Euros, Chinese Yuan, Philippines pesos, or Mexican pesos? A. No, you are not exempt from reporting foreign accounts just because…
THE client and her husband are the only stockholders of an S corporation that has been doing well for the last 15 years. In fact, it’s still doing well and had a great year last year. What is the difference between an S corporation and a C corporation? In an S corporation, the business…
MICHELLE McGrath and Veronica O’Boy worked for Wyndham Resort Development Corporation and its affiliates as Salespersons in California. Wyndham employed them to sell its goods and services such as interests in timeshare properties. After a two-month training period, Salespersons are compensated only by commission and advances on commissions based on sales of Wyndham’s products and…
ARE you seriously in debt and thinking of filing bankruptcy as a last resort? Individuals who have accumulated excessive debt are often left to ponder whether they should file bankruptcy in order to get out of debt. Sometimes, these people feel that somehow, they’ve lost, failed, or that they will never have a chance to…
“Applicants for diplomatic or official visas will be exempt from the proposed revised questions.” ON March 30, 2018, the Department of State published in the Federal Register its proposed new requirements which will affect immigrant and non-immigrant visa applicants alike. There is a 60-day comment period for public comment on the proposed new…
THE client is a corporation that has been in business since 2000. It had good times and bad over the last two decades but always managed to land on its feet. It has an ever-growing list of clients that need its products, which it sources from abroad. It has two kinds of clients: clients with…
STARTING March 27, 2017, new applications for offer in compromise (OIC) plus the application fee will be returned by the IRS if all required income tax returns are not filed and there is no valid extension filed for the current year income tax returns. The initial payment submitted with the returned application will be applied…
CRIMINAL Investigations can be initiated from information obtained from within the IRS when a Revenue Agent (auditor) or Revenue Officer (collection) detects possible fraud. Information is also routinely received from the public as well as from ongoing investigations underway by other law enforcement agencies or by United States Attorney’s offices across the country. What should…
THE client is a corporation that has been in business since 2000. It had good times and bad over the last two decades but always managed to land on its feet. It has an ever-growing list of clients that need its products, which it sources from abroad. It has two kinds of clients: clients with…
THESE days, employers generally know that gender discrimination, i.e., singling out someone for negative treatment just because of their sex, is illegal. Employers may have a handbook saying all the right words to discourage gender discrimination. However, the existence of an employer’s written anti-discrimination policy does not mean that it is followed in practice. Even…
