Local Law Firm Commits to Goals Presented by Mayor Johnson during his State of the City Address

Last week, my law firm published a new press release regarding Mayor Kevin Johnson's State of the City Address from earlier this year. Roni Deutch, A Professional Tax Corporation sent two representatives to hear the mayor’s goals and consider how the law firm can participate in working towards those goals. Check out a snippet from the release below.

"As part of the Sacramento business community, it's encouraging to see that we have a plan for growth," notes Justin Hein, Managing Attorney for the law firm. "Strengthening the city will benefit our law firm as well as the entire region."

One of Mayor Johnson’s goals for Sacramento in 2010 is to be a national leader in the Green movement. Roni Deutch, A Professional Tax Corporation is doing their part to make this happen. Last year, the law firm transitioned to a paperless client intake system, greatly diminishing the quantity of paper it uses and this year the law firm is taking even more steps to limit the use of paper by enhancing its office technology.

Mayor Kevin Johnson’s vision for the future of Sacramento includes a commitment to the community. During his State of the City Address, he challenged the residents of Sacramento to dedicate one hour per month to volunteering. Roni Deutch, A Professional Tax Corporation is a step ahead of this challenge through its Community Action Committee, which is designed to orchestrate volunteer opportunities for the law firm’s employees to make an impact in the region. As Roni Deutch explains, “My law firm’s Community Action Committee spearheaded a number of volunteer events in 2009, and we are fully committed to spearheading even more volunteer events in 2010.”

Sacramento Business Owner Settles 4-Cent IRS Tab Amid Media Frenzy

A Sacramento car wash business owner with a 4 cent debt to the IRS made national headlines yesterday, and today the SacBee published a follow up to the story explaining that the $200 penalty was due to late payment of the 4 cents.

"We're moving forward," claimed Aaron Zeff, after sending the feds a check for 4 cents – and additional checks to cover $202.31 in interest and penalties.

What's still a mystery is why Zeff was never informed about the tardy payment (and resulting fees) before last week's visit by agents. One possibility: He changed payroll services several years ago, and the old firm may have received notices but didn't forward them.

In any case, he still thinks the agents' visit was "inappropriate – whether it was for 4 cents or $500."

Towards the end of the article SacBee also added a blurb about the Roni Deutch Tax Center’s newest NBA promotion taking place at tonight’s Kings game in Sacramento, CA. You can checkout a snippet of the article below.

At tonight's Kings game, she's offering to do federal taxes for free for the first 200 people who come to her booth outside Arco Arena.

Why work with the hapless Nets and the somewhat-better Kings?

Deutch says she identifies with teams that are "starting out at the bottom."

Partnerships with more successful franchises are possible in the future, says Deutch, a die-hard Kings fan. But she's never, ever, doing deals with the L.A. team that happens to be the Kings' opponent tonight.

"I hate the Lakers," she says. "Why would I ever get in bed with them?"

IRS visits Sacramento Carwash in Pursuit of 4 Cents

Over the weekend my hometown of Sacramento, California showed up on all the tax news sites and blogs after the SacBee reported that IRS officers visited a local carwash because of a 4 cent tax liability. Although the original debt was only 4 cents, IRS fees and penalties raised the total to $202.35. However, the owner of the local carwash asserts he has never owed the IRS and is baffled by hour a 4 cent debt could result in over $200 worth of fees. Check out the following story on the incident via SacBee.com.

Arriving at Harv's Metro Car Wash in midtown Wednesday afternoon were two dark-suited IRS agents demanding payment of delinquent taxes. "They were deadly serious, very aggressive and very condescending," says Harv's owner, Aaron Zeff.

The really odd part of this: The letter that was hand-delivered to Zeff's on-site manager showed the amount of money owed to the feds was ... 4 cents.

Inexplicably, penalties and taxes accruing on the debt – stemming from the 2006 tax year – were listed as $202.31, leaving Harv's with an obligation of $202.35.

Zeff, who also owns local parking lots and is the president of the Midtown Business Association, finds the situation a bit comical.

"It's hilarious," he says, "that two people hopped in a car and came down here for just 4 cents. I think (the IRS) may have a problem with priorities."

Continue reading at SacBee.com…

Roni Deutch Tax Center / Sacramento Kings Commercial

Before shooting our new Hidden Money commercial for the Roni Deutch Tax Center, we also shot a commercial for our Sacramento area locations on the Sacramento King’s basketball court. You can checkout the commercial below, or on my YouTube channel.

Sacramento County Facing Budget Deficit of $38 million

The State of California has been dealing with enough of their own budget problems, and now the state’s capitol – and my hometown – is beginning to have their own problems. New reports suggest that the Sacramento County is facing a budget deficit of nearly $38 million, and it could get worse soon. An article from the Sacramento Bee explains how this new revelation could affect all Californians.

Less than a month into the fiscal year and Sacramento County officials are already saying there's a near $38 million budget shortfall that could get even worse.

In addition to the $9.8 million in projected welfare costs the county chose not to fund in June, sales tax, property tax and other revenue projections made just months ago are already proving to be overly optimistic. Then there's the matter of the $10 million the supervisors have said they want to restore to the Sheriff's Department.

All of that means the county -- which laid off 243 employees and eliminated numerous contracts earlier this month in order to pass a "balanced" $2 billion general fund spending plan -- could be making more big cuts in a couple months.

The board will discuss the worsening budget situation at its meeting this afternoon. Originally the supervisors were going to talk about where they would cut $10 million from the budget in order to restore some funding to the Sheriff's Department and save 70 deputy jobs.

County Executive Terry Schutten's office, however, is recommending that "instead of a piecemeal approach...all these issues be dealt (with) at final budget hearings."

The Sheriff's Department has enough money in its budget to cover the cost of those 70 deputies until the fall when the board amends the spending plan it passed last month, according to Schutten's office.

The board will begin discussing the so-called "final budget" at a hearing Sept. 10.

U.S. Threatens To Rescind Stimulus Money Over Wage Cuts

From the LATimes.com:

Reporting from Sacramento -- The Obama administration is threatening to rescind billions of dollars in federal stimulus money if Gov. Arnold Schwarzenegger and state lawmakers do not restore wage cuts to unionized home healthcare workers approved in February as part of the budget.

Schwarzenegger's office was advised this week by federal health officials that the wage reduction, which will save California $74 million, violates provisions of the American Recovery and Reinvestment Act. Failure to revoke the scheduled wage cut before it takes effect July 1 could cost California $6.8 billion in stimulus money, according to state officials.

The news comes as state lawmakers are already facing a severe cash crisis, with the state at risk of running out of money in July.

The wages at issue involve workers who care for some 440,000 low-income disabled and elderly Californians. The workers, who collectively contribute millions of dollars in dues each month to the influential Service Employees International Union and the United Domestic Workers, will see the state's contribution to their wages cut from a maximum of $12.10 per hour to a maximum of $10.10.

The SEIU said in a statement that it had asked the Obama administration for the ruling.

The cut was highly contentious during last winter's budget talks. Republican lawmakers insisted that the rapidly growing, multibillion-dollar state program, In Home Supportive Services, be scaled back significantly.

Democrats fought major reductions in the program, which they say is a cost-effective alternative to nursing-home care, but ultimately compromised.

Reversing the wage cut would require a two-thirds vote of the Legislature, meaning Republican support would be needed.

Schwarzenegger on Wednesday sent U.S. Secretary of Health and Human Services Kathleen Sebelius a letter urging the federal government to reconsider.

"Neither the Legislature nor I make decisions to reduce wages or benefits lightly, but only as a last resort in response to an unprecedented fiscal crisis," Schwarzenegger wrote.

UOP Forecast: Sacramento Unemployment To Hit 12%

My hometown of Sacramento is facing huge unemployment rates mostly due to a record drop in construction jobs. The Sacramento Business Journal has put together an in-depth article examining the city’s unemployment problem. I have included a clip of their article below, but the full text can be found here.

Sacramento will lose 30,000 construction jobs by 2010, a 40 percent drop and the most of any Northern California metropolitan area, according to a forecast released Thursday by the Business Forecasting Center at the University of the Pacific.

The Sacramento area, currently burdened by a 10.8 percent unemployment rate, is projected to crest above 12 percent in early 2010, far beyond any previously recorded rates.

“Sacramento has disproven the notion that state capitols are recession resistant,” said the center’s director, Jeff Michael.

Unemployment is forecast to peak at 11.5 percent in San Jose, 11.3 percent in the East Bay, and 9 percent in San Francisco.

“Population shifted to the Bay, and the recession followed,” Michael said.

Unemployment in the San Joaquin Valley is forecast to peak around 18 percent, levels last seen in the early 1990s.

Housed in the Eberhardt School of Business, the center produces quarterly economic forecasts of the United States, California and 11 metropolitan areas from Sacramento to Fresno and the San Francisco Bay Area.

Schwarzenegger's Budget Proposes Tax Hikes & Steep Cuts

From LA Times.com:

Reporting from Sacramento -- The administration of Gov. Arnold Schwarzenegger presented a new plan this morning to raise several taxes and cut deep into dozens of state programs to close an 18-month budget deficit that is projected to reach $41.6 billion.

Under the proposal, presented at the Capitol by the governor's staff while he was vacationing with his family in Sun Valley, Idaho, Californians would be dealt a steep sales-tax increase, a new tax on alcoholic beverages and higher vehicle registration fees. A dependent care tax credit would be reduced, and oil companies would be charged a new severance tax.

The cuts in the proposal are deep, including a reduction of billions of dollars in K-12 education spending from current levels. State university and community college offerings would also be cut back as tuition and fees go up. Healthcare programs for the poor would be slashed, as would welfare for the elderly and disabled.

The plan also includes reductions in the state workforce, which the governor already implemented by executive order two weeks ago. The order requires state workers to take days off without pay, amounting roughly to a 10% pay cut. Labor unions are challenging that order in court.

CA Legislature Approves New Compromise Budget

From the Associated Press:

Bringing an end to the state's longest-ever budget fight, California lawmakers approved changes to their $143 billion spending plan and gave in to Gov. Arnold Schwarzenegger's demands for a more robust rainy day fund.

Still, the governor said elected officials failed to fix California's ongoing fiscal imbalance that allows the state to spend more money than it takes in.

"There's nothing to really celebrate," Schwarzenegger said at the Capitol Friday. "As I said, great things were accomplished, but there are certain things that were not accomplished."

Democrats, who hold a majority in the Legislature and had proposed tax increases to help fill the state's $15.2 billion shortfall, countered that it was the governor who lacked leadership.

California is one of three states that require a two-thirds vote to pass a budget. Democrats needed a handful of Republican votes in both houses to accomplish the task.

"The real question was, could we have done any better without a tax? The answer was no," said Senate President Pro Tem Don Perata. "The governor couldn't get anybody to support his tax in his party. Republicans had the final say. They said no."

Schwarzenegger said he will sign the compromise plan next week, allowing California to resume payments to schools, medical clinics and state vendors that haven't been paid since the July 1 start of the fiscal year.

The governor said he was pleased legislative leaders agreed to stronger controls on the state's rainy day fund and gave him the authority to make spending cuts during the year.

The impasse dragged on because Republicans opposed any tax increase, while Democrats sought to combine budget cuts with higher taxes on corporations and the wealthiest Californians. Schwarzenegger proposed a temporary 1-cent increase in the state sales tax that would drop after three years.

SacBee Article

On Saturday, my tax franchise and I were featured in the business section of the Sacramento Bee. In case you missed it I have included a quote below. You can also check out the online version of the article.

“Sacramento-area tax attorney Roni Deutch has launched more than 170 Roni Deutch Tax Center franchises across the country, mushrooming beyond the 17 centers she debuted in a nationwide opening in January.

Long known as the ‘Tax Lady’ through her tax resolution legal practice and her many television appearances, Deutch stepped last year into a U.S. accounting and tax preparation market worth upward of $65 billion.”

Meet The Tax Lady Sac Bee Article

My law firm and I were recently featured in a Sac Bee business article. The article appeared in the Sunday June 10th edition of the Sacramento Bee, and there was even a picture of me on the front page! Click here to read the full article: Meet the "tax lady" Roni Deutch.