Here are 4 ways to get out of debt

ARE you seriously in debt and don’t know what to do about your situation? Are you afraid that unless you do something about it, thing will just continue to get worse every day? When people are going through financial difficulty and are unable to pay their bills, their first reaction is often to ignore their…

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Why we need President Trump to overhaul our tax code

Estate Tax: AMERICANS pay taxes throughout their lives, then pay again after death. This is wrong. The death tax itself should be terminated. Yes, there are two things we can’t avoid – death and taxes. But it should not mean that taxes paid during our lives resurrect to haunt us again… after death. Alternative Minimum…

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Divorce issue and tax tips part 2

1. What is New? Same sex marriages are considered the same as couples of opposite sex marriages for Federal tax purposes. On the other hand, other relationships that are not considered marriage under state law are not considered marriage for Federal tax purposes. 2.  In most cases, tax is usually less if you file married…

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Protecting employee and consumer rights

WHEN is the Use of Deadly Force by Police Unreasonable? The Fourth Amendment of the U.S. Constitution protects persons from unreasonable search and seizures, including the use of excessive or deadly force. The U.S. Supreme Court ruled, in the case of Tennessee v. Garner, that an officer cannot use deadly force against a fleeing suspect…

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How many people were raised from the dead in the Bible?

“God has come to help his people.” YOU may be surprised to find out that quite a number of dead people were resurrected. The Bible mentions some resurrections that occurred en masse at the resurrection of Jesus. The whole Christian world celebrates the resurrection of Jesus Christ this Sunday about 2000 years ago, after His…

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Foreign earned income exclusion

ARE you a U.S. citizen or resident working in a foreign country? Did you declare your foreign income? Did you even file a tax return? Or are you hiding from the long and lovely arms of the IRS? Can the U.S. government reach you on the other side of the globe? Unfortunately, yes. But is…

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What’s new: Death of a taxpayer

ESTATE and gift tax basics • Form 706 must be filed: 1) To elect portability regardless of the size of estate, to transfer deceased spouse unused exemption (DSUE) to surviving spouse; 2) Gross estate plus adjusted taxable gifts and specific gift exemption valued in excess of $5,490,000 if death take place in 2017 or $5,450,000…

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Common misconceptions about bankruptcy part 2

(Part 2 of 2) HERE are some more misconceptions about bankruptcy that we did not discuss last week: 1. Will I lose my house? Normally, debtors get to keep their residence as long as their equity in the house does not exceed the applicable homestead exemption. If the equity of the house is within the…

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Common misconceptions about bankruptcy

“  An honest debtor is one who truthfully discloses his financial affairs, income and expenses, assets and liabilities in his bankruptcy petition.” HAVING literally represented several thousand clients in successful bankruptcy cases in the last 35 years in California, I have distilled the common misconceptions about bankruptcy into the following: 1. Will debtor go to…

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Protecting ‘managers’ from wage theft

Should they be paid additional wages? JAIMIE Quinby, Linda Gomes, and Eric Fontes worked as “General Managers” (GMs) for ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA) in its California locations. The GMs sued ULTA for unpaid overtime wages and missed meal and rest breaks. Now, one may ask: Aren’t managers exempt from overtime and the…

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12 do’s in IRS audits

HERE are 10 tips to pull you through an audit: 1. Bring the right attitude with you.  It could spell the difference between winning and losing. 2. Be on time. Some auditors get irritated with taxpayers who come in late for an appointment. 3. Bring in only what is asked for. You might be inclined…

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Are you stuck in credit card debt?

WARNING: Excessive credit card debt can lead to financial disaster and can affect your financial well-being. The reason they call it “credit card debt trap” is because once you’re in, it may be difficult or impossible to get out. It is actually the number one reason people end up filing bankruptcy when they have no…

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New California laws

Customer Service Dashboard: The goal is provide tools and resources in resolving tax matters. The “Customer Service Dashboard” was launched in March 1, 2017 with estimated time frames for your wait time. For more information go to: https://www.ftb.ca.gov Deductions for Taxes Paid or California Other State Tax Credit (OSTC) Legal Ruling 2017-01:  California resident is…

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Should I tell my boss about my medical condition?

Q: I WAS diagnosed with herniated disc and severe anxiety. I want to request leave but want to keep my privacy at work. Do I need to tell my employer about my medical or psychological condition?  A: No. The employee is not required to disclose the nature of the employee’s medical condition or disability (i.e.,…

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Should you submit messy records to an IRS auditor?

THERE are two approaches to prepare for an audit: organized and shoebox. Organized means arranging your records. Shoebox means simply being you—your naturally disorganized you. Let’s discuss each method so you can determine which one is best for your next audit. Why You Should be Organized: 1. This approach of presenting data in a structured…

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Should you pay wages in cash?

It is not a good business practice to pay cash for wages. Issues when paying employees cash 1. You are exposed to income tax audits of both agencies federal and state for not reporting the wages. 2. You have the legal obligation to withhold payroll taxes and report wages. 3. There are no check stubs,…

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Should commission employees be paid separately for rest breaks?

RICARDO Vaquero and Robert Schaefer worked as Sales Associates for Stoneledge Furniture, a retail furniture company. Stoneledge paid sales associates on a commission basis, based on the company’s Commission Compensation Pay Agreement. If a sales associate did not earn “Minimum Pay” of at least $12.01 per hour in commissions in any pay period, Stoneledge paid…

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Life cycle of an audit

(Part 3 of 3) 11. Your case is referred to an Automated Collection System (ACS). The ACS is a nameless, faceless computerized collection system that utilizes telephones. IRS personnel at various “call sites” have little authority to help you by way of compromise or installment but have great authority to harm you. If I may…

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Are you in denial about your credit card debt?

MOST people don’t talk about their credit card debt because they find it embarrassing. They can talk to their friends and family about everything else but when it comes to the subject of how much debt they are carrying, most people would not divulge any information. It makes them very uncomfortable. So what happens is…

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Life cycle of an audit

(Part 2 of 3) 6. YOU first receive a contact letter advising you that your return has been selected for examination. It spells out the preliminary areas for audit. You are required to contact the IRS office within 10 days. An appointment is made and you or your rep proceeds to the nearest IRS office….

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