Top 10 Everyday Legal Tips

Being an attorney, I get asked legal questions every day, since pretty much everyone has an issue with the law at some point in their lives. Entrepreneur.com put together a list of 10 everyday legal tips. This list covers the questions I hear the most, so nice job! Hopefully this list will save me from giving free legal consultations at every party I attend. You can check out a portion of the list below, or head over to Entrepreneur.com for the full text.

1. Make a will.

Things can get messy if you don't, and you won't be around to sort it all out. You should decide now who will inherit from you, and who won't, and name a guardian for your children, among other things. Additional estate planning documents are often made at the same time as a will: a trust (if needed), powers of attorney and a living will (saying whether you want them to pull the plug). Estate planning allows you to control what happens to you and your assets, and it can save your family from having to make some difficult - and often contentious - decisions.

2. Sign a prenup.

You don't have to be rich or famous. If you own a business or have children from a previous marriage, or simply want to keep some of your property separate, give it some thought. A prenuptial agreement can spell out what happens in the event of divorce or death. But don't write it up on your own. Make sure you and your soon-to-be spouse each consult with an attorney. Be upfront and disclose everything. An invalid prenup will get thrown out by the court.

3. Know your rights.

If you are pulled over by the police, be cooperative and polite. You'll probably be asked for identification, registration and proof of insurance, and you should comply. If the officer asks you questions about where you were, where you're going or whether you've had anything to drink, you do not have to answer. If they ask to search your vehicle

The Tax Implications of Divorce

This morning a new entry explaining the tax implications of divorce was published on the Roni Deutch Tax Center – Tax Help Blog. As the article explains, our complicated tax system can often make stressful situations, such as a divorce, even more stressful. I have included a segment of the article below, but to learn more about the tax implications of divorce, check out the Roni Deutch Tax Center – Tax Help Blog.

Tax Filing Status

Even if you spent most of the year married to your partner, if you become legally divorced on or before December 31st, you will not be eligible to file a joint return. Therefore, if you are in the process of getting divorced, which will not finalize before the end of the year, you will need to file as a married taxpayer (either a joint or separate return). If you and your former spouse are on good terms, you should try to discuss tax planning as it related to your divorce. Additionally, if you are unmarried and your spouse was not a member of the household for at least six months of the year, and you have a qualifying dependent, you may be able to take advantage of the head of household filing status.

Child Custody and Tax Exemptions

If you had children with your ex-spouse then a whole new set of tax complications may emerge depending on the specifics of your child custody arrangements. If one parent is required to make child support payments, that parent will not be able to deduct the payments on a federal return. Additionally, child support payments are not considered taxable income for the parent receiving the payments. The parent has majority custody can also claim the children as dependents, and benefit from the resulting tax incentives.

Living Situation

A home is often the most expensive purchase a taxpayer will make in their lifetime, and can result in serious financial issues during a divorce. You and your former spouse will undoubtedly need to decide what to do with the property after the divorce is finalized. One ex-spouse may decide to continue living there, possibly with dependent children, or you may decide to sell the home and split the proceeds. If you do sell the home, and profit from the sale, then you will want to reinvest those funds within two years to avoid the capital gains tax.

Divorce and Attorney Fees

There is a small category of attorney fees may be deductible expenses on your tax return. For example, although, the legal fees for the divorce itself are not deductible, legal fees related to estate planning due to a divorce may be. To be on the safe side, you should ask your attorney to divide the bill into non-deductible charges, tax-deductible alimony charges, and property settlement charges. By doing this, we will be able to help your tax preparer have sufficient proof to claim the tax deductible fees on your return.

Continue Reading…

Work-Life Balance in the Legal Profession: A Necessity Even in a Down Economy

Earlier in the week one of my favorite blogs – The Glass Hammer – posted a very interesting article on how so many attorneys have been willing to neglect their personal lives to avoid being let go. However, as the article explains it is important to give yourself some personal time so that you can be both mentally and physically ready for the demands of your job. You can find a snippet of their post below, but be sure to head over to The Glass Hammer for the full text, including a list of the top 10 family friendly law firms in the country.

Over the last year, in large law firms across the country, associates have lived in fear of losing their jobs, accepting and even seeking out longer hours at the office in the hope that if they can accumulate enough billable hours, their jobs will be spared. Unfortunately, such a practice is leading to growing dissatisfaction for all involved. Associates are worn out and resentful of their current predicament. Clients are becoming fed up with large legal bills which reflect the work of several attorneys billing a significant number of hours in order to produce a single piece of work product. Law firm partners are struggling to maintain and bring in business since clients are going in increasing numbers to smaller firms where the same legal work can be done for a lot less.

In this time of high unemployment and economic hardship, should we consider work-life balance a luxury, available only when economic times are good, and just be thankful we have jobs at all?

Although the answer from many quarters seems to be “yes”, others believe that sacrificing work-life balance is not the best strategy to surviving a tough economy. Lisa Gates, life balance coach and author of “Are You Ditching Work-Life Balance Because You’re Afraid of Losing Your Job?” explains that balancing work and personal life in a down economy is important, not just for your well-being outside of work, but to ensure you remain mentally and physically prepared to successfully carry out workplace goals and make sound decisions in your career.

Large law firms can learn from those employers which have already recognized the importance of work-life balance. According to Susan Fenton, author of “Firms Say Work-Life Balance Boosts Productivity”, companies such as Dutch mail company TNT, oil company BP, and US computer maker Sun Microsystems Inc. have found that work life imbalances lead to increased business costs. As a result of these findings, these companies have adopted more flexible working arrangements which they say motivate employees, resulting in increased productivity and efficiency.

Avvo’s Top Viewed Lawyers of 2008

I was very excited to learn that I was named as one of Avvo’s top viewed lawyers of 2008. Below is the list of the top 5 most viewed lawyers, with the links to their respective profiles on Avvo.com. As you can see I made number four, which is good, but I’m shooting for #1 next year!

1. William C. Head

2. Jon Michael Zimmerman

3. Okorie Okorocha

4. Roni Lynn Deutch

5. Thuong-Tri Nguyen

Lawyer Pleads to Tax Misdemeanors - Didn’t File Since ‘94

From ABA Journal.com:

A Mississippi attorney who allegedly hasn't filed a federal tax return since 1994 has avoided a trial in the felony tax evasion case he initially faced by pleading guilty today to two misdemeanor counts of failing to file.

Marshall Sanders, 57, who practices in Vicksburg, agreed to cooperate with the Internal Revenue Service in determining his past-due taxes and pay restitution and penalties, reports the Fort Mills Times.

"Under Mississippi Bar Association rules, a felony conviction would have resulted in the loss of a state license to practice law," the newspaper notes.

The government says Sanders grossed more than $2.3 million in 2001 and nearly $500,000 in 2002, reports the Clarion Ledger.

Sanders reportedly is a civil practitioner who earned an economics degree from Harvard University and graduated from Emory University School of Law.

No sentencing date has been set in the case, which is in the U.S. District Court in Jackson.

IRS Announces OPR Settlement

Earlier in the week, the IRS’s Office of Professional Responsibility (OPR) announced a settlement agreement with three attorneys in connection to a $31 million municipal bond issuance involving River Park Square in Spokane, Washington in 1998 handled by the former firm of Preston, Gates & Ellis LLP. However, the IRS and the attorneys both agreed that the settlement does not constitute any admission of wrongdoing. According to the IRS, the ORP is pleased to have reached this agreement because it demonstrates their commitment to ensuring bond lawyers comply with Circular 230 when involved in tax-exempt municipal bond issuances.

IRS Identifies 40 Frivolous Positions To Avoid

Recently the Internal Revenue Service issued an article detailing 40 frivolous positions that taxpayers should avoid when completing their tax returns. These positions have no basis in tax law or have been determined frivolous by tax or federal courts. If any frivolous positions are contained in a tax return, taxpayers could face a fine for filing a frivolous tax return. In 2006 congress increased the penalty from $500 to $5,000 for persons submitting tax returns that are deemed frivolous by the IRS. One of the frivolous positions includes false arguments that wages are not taxable income, among various others. For more details visit the IRS’s official website.

New Article at RoniDeutch.com

As you can see we added a new article to RoniDeutch.com regarding the use of private debt collection agencies by the IRS. The bottom line is that the IRS wants to collect more revenue and will use “heavy hitters” to accomplish this goal. You can read the full article by clicking here, or you can read any of our tax-related articles in the Roni Deutch Learning Center.

For more information on tax settlement you should contact a qualified tax lawyer.

Welcome to the Official Blog of Roni Deutch

Hello and welcome to my new blog. For those of you who don't know me, I am the Tax Attorney that you see on television. My tax law firm represents taxpayers who are in trouble the IRS. I am also the proud owner of Roni Deutch Tax Center, and we do tax preparation over the phone. For more information visit either RoniDeutch.com or RDTC.com.