THE cost of a college education has spiraled out of control for most families. In the last 10 years, student loan debt has sharply risen from $240 billion to $1 trillion dollars. Almost 60 percent of this debt is held by households with less than $8,500 in net worth. This makes sense because if these…
WHAT you need to do when you received a call or notice from the IRS? Below are some tips that you should be aware of: • Revenue Officer (RO) observes fair tax collection practices and taxpayer rights. • You have Right to Representation under Internal Revenue Manual (IRM) 5.1.10.7.2. • You will be advised first…
THE Internal Revenue Service (IRS) Criminal Investigation Division (CID) conducts investigations regarding violations of the Internal Revenue Code, the Bank Secrecy Act, and Money Laundering statutes. What are warning signs that you may have been referred to CID? 1. The agent starts asking about your life style and spending habits. 2. The agent asks about…
TWO clients with issues relating to known and unknown persons who used their names and social security information to borrow credit card in their names. The first client is 51 years old and married. She met this person who became her “friend.” Let’s just call the “friend” Ms. Crook. The client is a relatively new…
Q: I work at a hospital and we heard rumors that our computer servers were hacked. As a result, both patient and employee information were stolen. I am very worried about identity theft and damage to my credit. What are my rights? A: Anyone who conducts business in California and owns or licenses computerized data…
IF you are delinquent in your debt obligations and are being pursued by bill collectors, you may be wondering what these bill collectors can do to force you to pay. Maybe you’re afraid to even answer your phone or open your mailbox, fearing what you may find. Perhaps you’re sick and tired of bill collectors…
DID you know that every 35 minutes an older American dies from a traumatic brain and head injuries precipitated by a fall? In fact, each year 2 million American seniors are taken to hospital emergency rooms for fall-related injuries. According to the Center for Disease Control and Prevention (CDC), “More than one-third of adults age…
THE client is a senior at 67. He is married but has been separated from his wife for some time. He lives with a woman but is not married to her obviously because he is only separated from his wife. You can’t remarry until you have divorced. Separation, whether de facto or legal, does not…
Q: AFTER 12 weeks of medical leave for a surgery, I suffered new complications and my doctor told me I needed to take more leave time. I told my employer I could not go back to work yet and submitted my doctor’s note. Three days after I was supposed to be due back at work,…
* * * Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California. * * * He has 50 years of…
IF you are struggling to pay your bills every month due to insufficient income and/or excessive expenses, there is a way to make your debts more manageable so you can sleep better at night. Chapter 13 is the section of the US Bankruptcy Code that allows individuals in the United States to reorganize their finances. …
THE client is 50 years old and divorced. She owns her residence by herself. Ex-husband quitclaimed the house to her in the divorce and she agreed to buy him off payable when able. She has two children who live with her, so her homestead exemption is $100,000. The problem is that her equity in the…
“Any use use other than as your principal residence is nonqualified use. This includes vacation home, renting it out, vacancy and allowing someone’s living in it.” (Part 1) You may exclude from gross income gain from sale of principal residence under Internal Revenue Code Section 121. 1. You may be able to exclude gain of $250,000…
BEING in debt can be pretty depressing. I understand how you feel. When you’re drowning in debt, you may feel that your situation is hopeful and you have no motivation to even plan for your future. Your self-esteem may be shot. You may be experiencing anger, depression, guilt, or a combination of all three. You…
The client is 50 years old and divorced. She owns her residence by herself. Ex-husband quitclaimed the house to her in the divorce and she agreed to buy him off payable when able. She has two children who live with her, so her homestead exemption is $100,000. The problem is that her equity in the…
INGRID Avendano, Roxana Lopez, and Ana Medina are female Latina software engineers employed by Uber, a multi-billion dollar company that provides on-demand transportation and food delivery services globally. The engineers sued Uber, on behalf on themselves and all aggrieved employees in California, accusing Uber of violating California’s Equal Pay Act for failing to provide equal…
IF you lose an IRS audit, you have two choices: pay or appeal. Your decision depends on how you feel about the fairness of the auditor, amount of assessment, cost of defense, and extending or ending your misery with the IRS. • What is the role of Appeals? • Are Appeals Officers independent? • Do…
Secured creditor client seeks relief from buyer who filed Chapter 11 “ In any event, client does not have $100K. Client decides to have a fresh start in life with a Chapter 7 bankruptcy to wipe out the labor department award of $100K for back pay.” OH, the woes of owning and running a business come in all…
WHAT happens when your employer faces difficulties paying a significant claim for wages? Information regarding the identity of the various “employers” becomes important when employees have serious claims for unpaid wages or wrongful termination. Sometimes a smaller company may not have the financial resources to compensate employees who suffered damages. If more than one company…
IRS loves to audit Schedule C. This form is filed by taxpayers who conduct their businesses as sole proprietors (popularly referred to as “DBA” or doing business as) instead of corporations or LLCs. This includes professionals and independent contractors who receive 1099s as subcontractors (instead of W2s as employees). Sole proprietorships face a risk that’s…
IF you’re in debt and are considering bankruptcy as an option for you to get needed relief, perhaps just hearing the word “bankruptcy” makes you extremely nervous. Maybe the word conjures up images in your mind of losing everything you have and not having a financial future. Relax. It’s not what you think. Regardless of…
A SOLAR electric residential property to be qualified for the credit must meet the following requirements: 1. Costs paid must be for qualified for solar electric property. 2. Qualified solar electric property costs: These costs must be for use of solar energy to generate electricity. You may rely on the manufacturer’s certification in writing that…
THE client is 65. He operates a service-oriented business with three outlets in strip malls. He has been in business for eight years. Of the three outlets, two are losing money, while the third has some profit that subsidizes the loss of the first two, and provides the client with some disposable income that is…
In 1995, José Arias, an undocumented immigrant, began work as a milker for Angelo Dairy. Two years later, Arias wanted to accept a job offer with another dairy company. The employer threatened Arias that if he left to work at the other dairy, the employer would report the other dairy to federal immigration authorities as…
HOW did I get selected for an audit? • Random selection and computer screening – how your return compares to norms. • Related party examinations - transactions with partners, investors, or audits of other entities. How will IRS notify me of audit? • IRS will notify you by mail. • They do not start any audit by…
When your financial circumstances are forcing you to declare bankruptcy, bankruptcy can be one way of dealing with debts that you can no longer manage on your own. Of course, the decision should not be taken lightly and it is best to consult with an experienced bankruptcy attorney to see if it is best for…
WHO said that, first is chance, twice is coincidence and third is habit? I have two new clients who are actually previous clients. The first is 55 and she filed jointly with her husband 12 years ago for Chapter 7 relief of credit card debt. To tell you the truth, I still remember mostly everything…
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…
TINDER is a smartphone-based dating app. Subscribers use the app to find people whom they would like to date. Tinder presents users with photos of potential dates. In March 2015, Tinder released a premium service called “Tinder Plus,” which allows users to access additional features of the app for a monthly fee. The monthly fee…
YOU’VE probably seen a lot of these ads: “Settle your debts for pennies on the dollar!”, “Reduce your debts legally without filing bankruptcy!” “Stop bill collectors now and pay them only what you can!” Are all these just exaggerated claims? Or are any of these ads true? How can you protect yourself from being scammed?…
