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Asset Protection Law Firm Shares an Asset Protection Strategy

Asset Protection Law Firm Shares an Asset Protection Strategy published on

Asset Protection Law Firm Shares an Asset Protection Strategy

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What is Asset Protection?

It’s a legal process within the realm of estate planning that protects your wealth (property, financial accounts, private capital, businesses, investments, etc.) through arrangements that structure assets in a way that makes it very difficult for a creditor to collect. The goals of asset protection planning are not to be deceitful and secretive, hide assets, or defraud creditors. Instead, asset protection planning strives to improve a client’s position in bargaining and negotiations while deterring litigation and furnishing legal options. In most circumstances, it’s never too late to engage in planning an asset protection strategy. Anyone who’s been diligent and fortunate enough to accumulate assets needs some form of asset protection. Spiegel & Utrera, P.A.’s Asset Protection Law Firm brings you 175 years of experience in asset protection, estate planning, and entity formations to cover all your bases and help ensure the longevity of your wealth.

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How to Protect Your Assets from Judgments

The most common type of asset protection planning is the purchase of liability insurance—such as automobile, homeowners, or malpractice insurance—but can be unreliable due to inadequate coverage and extensive policy omissions. Many states allow residents to exempt particular assets from the claims of creditors but are subject to specific limitations, such as a threshold for the value of an asset to qualify for protection. Creating a business entity (like an LLC or a Corporation) is another common form of asset protection, allowing for limited liability and the power to segregate the business assets from the personal. Some business entities are a better fit than others to protect your assets and their effectiveness in doing so depend on the context of your particular situation.

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Asset protection planning is a complex legal matter that benefits greatly from expertise in estate planning, business law, and entity formation. Lack of mastery in any one relevant area of law might prevent a client from getting the best possible results, which is why you should call us! Read on to learn a great strategy for asset protection, and call our asset protection law firm for a free consultation so that we may tailor an asset protection plan to your specific needs.

Charging Order Protection

Business entities have Limited Liability, which shields the owners from the liabilities of the business and inhibits creditor’s from collecting through personal assets. There are several different business entities you can form to get limited liability—but for optimal asset protection, you will want a business entity that wields what is known as “charging order protection,” such as a Limited Liability Company (LLC) or Limited Partnership (LP). Charging order protection means that a creditor can’t go after the assets of the LLC or its membership interests. Traditional corporations and single-member LLCs don’t have charging order protection, allowing creditors claim to the corporate shares or company interests. The purpose of charging order protection is to shield the non-debtor members or partners from being involuntarily forced into a membership or partnership with the debtor’s creditor, which is why single-member LLC’s and S-Corporations may not provide charging order protection. A judgment against a stockholder of a corporation can result in judicial foreclosure of the shareholder’s stock or may pierce the “corporate veil” so that the corporation’s assets can be reached to satisfy a creditor’s claim. For this reason, we recommend forming multi-member LLCs, which grant you limited liability and charging order protection.

Best Business Structure for Asset Protection

A popular Charging Order Protected Entity (COPE) is the Family Limited Partnership (FLP), a limited partnership where family members hold most if not all of the ownership interests—which is an important vehicle for asset protection and estate planning. After forming the FLP, all family assets can get transferred into it, including investments and business interests. After the transfers, a husband and wife (for example) will not own those assets individually, but rather hold a major interest within a business entity that owns those assets. The family members, being General Partners—will have complete management power and control over the affairs of the partnership and can buy or sell any assets they wish on behalf of the FLP. Furthermore, as General Partners, the family members can decide either to distribute the proceeds from the sale of the assets or to have the FLP keep such proceeds. Creditors cannot reach into the FLP and seize assets such as property, investments, bank accounts and other assets owned by the FLP. For this reason, a husband and wife that wisely transferred all their formal personal assets to the FLP, possess the interest in the FLP as their only individually owned asset.

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An Asset Protection Strategy

Let’s go over a strategy you can use to structure your asset protection plan. You may use layers of limited liability to isolate and protect your valuable assets. Individuals with appreciated property or assets should place each real estate parcel or business operation into its own Limited Liability Company. For anonymity, you may want land trusts (in the states that permit them). Furthermore, all of the operating LLCs should become owned by a Limited Partnership or Family Limited Partnership comprised of a General Partner that is a business entity with limited liability itself, such as an LLC (this would not be needed if you are in a state that permits Limited Liability Partnerships or Limited Liability Limited Partnerships), and several limited partners. The reason a Limited Partnership would be the holding entity is that compared to Limited Partnerships or Family Limited Partnerships, LLCs are a relatively new type of business entity that does not have the stability and predictability of settled case law. The initial owner should get Holding Limited Partnership interests, in proportion to the value of the real estate parcel or business operation contributed to the LLCs.

asset-protection-law-firm

Following this strategy allows continuity of management and professional management, restriction of sales of Holding Limited Partnership interests, freedom from personal liability for contract, tort or hazardous waste claims regarding the real estate parcels or business operations, tax-free gifting to family or others to reduce taxable estate, participation of foreign investors, and minority discount valuation for estate tax purposes.

Spiegel & Utrera, P.A.’s Asset Protection Law Firm stands ready to help you structure your business entities for maximum asset protection. Click here to submit information about your individual situation and an attorney will contact you.

ON THE AIR with Larry Spiegel and host Joe Castello: Asset Protection 101

Interest Charge Domestic International Sales Corporation (IC-DISC 101)

Interest Charge Domestic International Sales Corporation (IC-DISC 101) published on

Interest Charge Domestic International Sales Corporation 101

What is an IC-DISC? It’s an Interest Charge-Domestic International Sales Corporation. If your business may involve U.S. manufacturing of goods for export, you may be entitled to tax savings with an IC-DISC. The new interest charge domestic international sales corporation must formally choose to be treated as an IC-DISC and must also file an annual U.S. income tax return even though it pays no U.S. income taxes.

Form an IC-DISC

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Each Corporation or Limited Liability Company is COMPLETE

INCLUDES State Filing Fee, “YES! Includes State Filing Fee”
INCLUDES Corporate or Company Seal and Book
INCLUDES Certificate or Articles of Incorporation or Organization
INCLUDES Company or Corporate Minutes
INCLUDES Corporate By Laws or LLC Regulations
INCLUDES Corporate or LLC Ownership Register
INCLUDES Banking Resolution
INCLUDES Membership or Stock Certificate
INCLUDES Preliminary Name Search
INCLUDES 110% Lowest Price Guarantee!

Yes, even INCLUDES Attorney’s Fee (No Hidden Attorney Fees).

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Interest Charge Domestic International Sales Corporation Rules and Requirements

To be eligible to make an IC-DISC election, the corporation must satisfy several IC-DISC rules and requirements:

  • There is a single class of stock with an aggregate minimum par value of $2,500;
  • 95% of gross receipts involve goods manufactured in the U.S. as described below;
  • 95% of the assets of the IC-DISC is inventory for export as described below;
  • The tax year conforms to that of the IC-DISC’s principal shareholder;
  • Separate books and records are maintained by the IC-DISC; and
  • One of the IC-DISC rules is that the IC-Disc is not a member of a controlled group involving a foreign sales corporation.

Interest Charge Domestic International Sales Corporation Commissions

Some considerations to notice in regard to IC-DISC commissions:

  • The exporter-parent corporation pays an annual, tax-deductible IC-DISC commission on its export sales to the IC-DISC (the commission deduction could yield a tax benefit as high as 35 percent).
  • The qualified gross receipts test is met if 95% or more of the gross receipts consist of IC-DISC commissions earned with respect to qualified export property, which is property (i) manufactured, produced, grown, or extracted in the United States by a person other than an interest charge domestic international sales corporation.
  • The allowable commission rate is either 50 percent of export net income or 4 percent of gross export income, whichever is greater.

IC-DISC Tax

The new corporation must formally elect to be treated as an IC-DISC and must also file an annual U.S. income tax return even though it pays no U.S income taxes. The commissions paid to the IC-DISC create 35 percent tax benefits for the U.S. exporting corporation while the individual shareholders of the IC-DISC would pay only 15 percent U.S. income tax on dividends received. That means the permanent IC-DISC tax savings for U.S. exporters and their shareholders can be as high as 20 percent!

  • The commission income is accumulated and untaxed in the IC-DISC. The deferral of income is allowable on annual export sales up to $10 million;
  • The IC-DISC shareholders are required to pay interest (to the IRS) on the accumulated but untaxed income; and
  • The IC-DISC shareholders pay U.S. income tax on dividends received from the IC-DISC when distributions are made (the IC-DISC tax on dividends for individuals is now 15 percent).

IC-DISC Dividends

Export-derived proceeds are paid to IC-DISC shareholders as a dividend taxed at a lower rate than the taxable income-reducing deduction realized by the exporter-parent (a potential tax savings of 20 percent!). Here’s an example of the process and the IC-DISC dividends paid to IC-DISC shareholders:

Gross receipts of U.S. goods exported 20,000,000
Cost of goods sold (16,000,000)
Gross Margin 4,000,000
Selling, general and administrative costs (3,000,000)
Export sales net income 1,000,000
IC-DISC commission:
50% of export net income 500,000
4% of export gross receipts (greater sum) 800,000
IC-DISC commission paid by exporter-parent corporation to IC-DISC 800,000
Commission paid by exporter-parent corporation is a deductible business expense reducing taxable income by a rate of 35%.     280,000
IC-DISC Dividend paid to IC-DISC shareholders 800,000
Federal tax rate of 15 % on IC-DISC dividend paid to IC-DISC shareholders (120,000)
IC-DISC net tax savings 160,000
For IC-DISC taxes, the IRS 1120 IC-DISC Tax Form and Instructions can be found in this link to the official IRS site.

Steps to start an LLC in Florida | LLC Formation Lawyer

Steps to start an LLC in Florida | LLC Formation Lawyer published on
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7 EASY STEPS to start an LLC in Florida

Starting an LLC in Florida gives business owners personal liability protection, great tax rates, and the business benefits that come from operating under a legal entity other than yourself as a sole proprietorship or independent contractor.

We’ve outlined the steps to start an LLC in Florida in the following 7 easy steps:

Step 1:

To start an LLC in Florida, you need to gather the following contact information for the formation of your company:

  • Name
  • Address
  • City
  • State
  • Zip Code
  • Phone Number
  • Email

Step 2:

Decide on a name, then a Suffix for the name of your Florida LLC from one of the following:

  • Limited Liability Company
  • L.L.C
  • LLC
  • Ltd. Liability Co.
Submit your details for immediate assistance in starting a Florida LLC:

Step 3:

State the purpose of your Florida LLC:

  • The purpose for an LLC may simply be written as follows: “The purpose of the Limited Liability Company is to engage in any lawful activity for which a Limited Liability Company may be organized in this state.”

Step 4:

Next, gather the following entity information:

  • Products
  • Services
  • Company Street Address
  • City
  • State
  • Zip-Code
  • County

Step 5:

Enter membership information for your Florida LLC:

  • Member Name
  • Total Percentage of Ownership of the LLC
  • Capital Contribution
  • Address Info
  • Phone
  • Social Security Number
  • Total Capital Contribution (sum of all members)

Step 6:

Name and SSN of the Operating Managers for your LLC (the operating managers can also be Members, and only one operating manager may be required):

  • Operating Manager
  • Vice-Operating Manager
  • Secretary
  • Treasurer

Step 7:

You may also need:

  • A Business License
    Your LLC may require business licenses, permits, and tax registration.
  • A Registered Agent
    The Registered Agent will collect the official mail or notifications, then process and communicate them accordingly to the business owner. Florida statutes require that you have and continue to maintain a registered office and registered agent.
  • A Company Seal and Book
    Its purpose is to contain all the corporation’s important documents, such as the certificate of organization, company minutes, LLC regulations, membership certificates, along with records of important actions taken by the corporation, such as issuing shares, purchasing real estate and other businesses, and obtaining various licenses.

Need help starting an LLC in Florida?

  • Forming an LLC with an experienced law firm rather than a non-lawyer agency or by yourself can help you avoid negative business, tax, and legal implications and penalties within your jurisdiction.
  • We’ll make sure you form an LLC with the best tax rates and corporate structure for your particular venture, using our 175 years of cumulative experience with over 260,000 clients.
  • Forming an LLC with us provides you with free legal advice and a complete corporate kit with a 110% lowest price guarantee. If you were to do it yourself or through a non-lawyer agency, you won’t receive the important legal advice you need and the complete corporate kit that LLC should have to ensure a safe and successful start.
  • Call our business lawyers for a free consultation at (800) 603-3900

Each Corporation or Limited Liability Company is COMPLETE

INCLUDES State Filing Fee, “YES! Includes State Filing Fee”
INCLUDES Corporate or Company Seal and Book
INCLUDES Certificate or Articles of Incorporation or Organization
INCLUDES Company or Corporate Minutes
INCLUDES Corporate By Laws or LLC Regulations
INCLUDES Corporate or LLC Ownership Register
INCLUDES Banking Resolution
INCLUDES Membership or Stock Certificate
INCLUDES Preliminary Name Search
INCLUDES 110% Lowest Price Guarantee !

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Mergers and Acquisitions 101: Types, Benefits, Legal Implications

Mergers and Acquisitions 101: Types, Benefits, Legal Implications published on

What are mergers and acquisitions?

The term Mergers and Acquisitions (M&A) is defined as the fusion of companies or organizations to form a single business entity. Two entities combining to create one is identified as a merger, while acquisitions would describe a business taking over and absorbing another organization. Companies use mergers and acquisitions to maximize profits, optimize productivity, and expand operations. Mergers and acquisitions may take place when purchasing or exchanging shares and assets. Mergers can rise from entities within the same, similar, or completely unrelated industries.

Should you hire a lawyer for Mergers and Acquisitions?

A large percentage of mergers and acquisitions end in failing to improve the bottom line of the companies involved. It’s not surprising that companies which had solid legal representation hosted a more favorable outcome. Mergers and acquisitions are not something you should do on your own. The reasons for hiring a lawyer during mergers and acquisitions may include:

Legal Complexity of M&A’s

There are many layers of legal complexity and implications in a merger or acquisition. Knowing and exercising them with a lawyer may put you in a position to avoid the pitfalls, save money, make gains. Knowing the shortcuts, and understanding the loopholes.

 Merging with a foreign company

If you’re merging with a company under a different legal jurisdiction, it could propose a slew of legal matters to consider. A mergers and acquisitions lawyer may act as your parachute on this business venture.

 Tax implications

When merging or acquiring another company—the tax rates may depend on the resulting entity type, legal jurisdiction, and corresponding tax structure. A good lawyer can help you figure out how to get the best possible tax outcome for your merger or acquisition.

 Complex forms and paperwork

A merger or acquisition produce the need for relevant paperwork— like forms on taxes, entity formation, restructuring, stocks, assets, membership, bylaws, regulations, and possibly many more. A lawyer can help you complete all the paperwork and avoid any negative legal implications from not having the appropriate forms and documents.
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Types of mergers and acquisitions

The types of mergers and acquisitions include:

Market-extension Merger

As the name implies, a market-extension merger depicts two businesses that sell the same thing but to different markets.

Product-extension Merger

A product-extension merger is the opposite of a market-extension merger; this is a merger of two companies that sell different things to the same markets.

 Conglomeration

A conglomeration is a merger between companies that sell different things to different markets—having completely different business areas in both consumer base and products offered.

 Horizontal Merger

A horizontal merger gets described as a fusion of two comparable organizations that compete with each other in the same market with similar products or services.
Vertical merger

A vertical merger consists of two companies in direct relation to each other as a supplier and distributor, consolidating into one company that can not only distribute the product but also produce it themselves.

Congeneric Mergers

Congeneric mergers are when two businesses provide different products or services to the same target market or consumer base.

 Purchase Mergers

Purchase mergers occur when one company buys out another. This merger allows for the sale and acquired assets to be tax deductible, among other tax benefits.

 Consolidation Mergers

A consolidation merger is when two companies are bought and combined under one new entity.

Benefits of Mergers and Acquisitions

The benefits of mergers and acquisitions include:

Market/Geographic expansion

Companies operating in a different market or geographical area combine to expand their physical reach and consumer base.

 Product or Service development

A business could increase the amount and types of products it offers by uniting with another company.

 Improved technology and staff

Merging with a company that has patented technology or skilled employees may improve operations and productivity, while possibly offer new products or services.

 Increasing brand power

Merging could increase a company’s brand potential, flexibility, reach, and influence by merging with another (preferably one with an excellent reputation and marketing strategy).

Mergers of Organizations; Corporations, LLC’s, Non-profits

mergers-and-acquisitions

Free Consultation

Businesses can fully and completely integrate their programs, functions, and membership by merging or consolidating. On occasion, two organizations will want to combine their functions to expand their outreach to the individuals or groups they serve. A merger involves one of the organizations dissolving and the other organization taking over the assets and responsibilities while a consolidation involves both organizations dissolving and creating an entirely new entity. The decision to merge or consolidate is based on legal, tax, or economic concerns, and usually it is a combination of all of these factors.

The law imposes strict fiduciary responsibilities on members of an organization’s governing body to ensure that it is in the best interests of the business. Directors and officers may be held personally liable if they fail to act prudently and with due diligence. It is also important to remember that when merging entities are tax-exempt under different classifications, the resulting merged entity will generally need to file a new application for federal tax exemption with the IRS.

Mergers and acquisitions of organizations are complex processes that require the approval of the boards of directors and membership of each organization, and a plan of merger or acquisition must be presented to each organization and its members. In addition, federal antitrust laws prohibit mergers or acquisitions that may substantially lessen competition in any line of commerce—including nonprofit organizations. An organization should have legal counsel review the impact of a proposed merger or consolidation due to the complex legal issues that may arise.

AVOID MERGER PITFALLS AND PENALTIES Call us at (800) 603-3900 for a free consultation with our lawyers—It’s quick and easy.
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Advantages of Arbitration and the Purpose of Alternate Dispute Resolution

Advantages of Arbitration and the Purpose of Alternate Dispute Resolution published on

What is Arbitration?

One of the main advantages of arbitration is being an alternative method of resolving legal disputes without involving the courts, known as an alternative dispute resolution (ADR). In arbitration, the matter gets submitted to a third-party (arbitrator) that settles the dispute after hearing a presentation from both parties. Another of the main advantages of arbitration is that most of the time—arbitration is much less expensive than the court process. There are lower costs in preparing for arbitration than there are in for preparing for trial. The rules of evidence are more relaxed than in a trial, so documents can get submitted without using formal court procedures. Arbitration can be as formal as an actual court trial, with evidence and testimony gathered and judged by the arbitrator.

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Advantages of Arbitration

Litigation is a very hostile environment, making arbitration a much better option for people that benefit from working together. Court proceedings also cost more than arbitration, even with lawyer and arbitrator fees under consideration. The arbitrator chosen may be an unbiased third-party with no financial interests involved. In Arbitration, the evidence is under less scrutiny from rules and procedures are a lot more flexible. Also, it is easier to schedule arbitration at your convenience and meetings are usually held in private.

Some of the Advantages of Arbitration may include:

  • Faster process than litigation.
  • Oftentimes cheaper than litigation.
  • Confidentiality and privacy.
  • Language selection.
advantages-of-arbitration

Disadvantages of Arbitration

If the arbitrator in arbitration renders an unfavorable decision, you’re stuck with it; making it vital to have a completely unbiased and neutral arbitrator. A court may provide a list of arbitrators wherein both parties can cross out the arbitrators they don’t want—letting the court select a random arbitrator from the remainders in the list. Arbitration may be cheaper than litigation in many cases, but it may still be very costly. Arbitration is usually a standard clause for breach of contract in many agreements, placed by companies who benefit more from keeping the matter out of litigation.

Some of the disadvantages of arbitration (ADR) may include:

  • Rules of arbitration may depend on one-sided terms from a binding agreement.
  • Conflict of interests leading to unfair and biased judgment by the arbitrator if they depend on one of the disputing parties for repeat business.
  • Less transparency due to the confidential and private nature of arbitration.
  • An unfair or bad decision may have limited room for change.
  • Favorable decisions may not be as enforceable without judicial intervention.

Spiegel & Utrera, P.A. is on your side. Before signing any agreement, give us a call for us to review the arbitration clause in your agreement. To ensure that you get the best legal outcome in arbitration and avoid all pitfalls, you should hire an arbitration lawyer that understands the process and can help you achieve settlements that may have otherwise been unknown or unavailable to you. We can help! Give us a call at (800) 603-3900.

The Advantages of Arbitration as an alternative dispute resolution

Arbitration is a method of alternative dispute resolution (ADR). Most agreements will have arbitration as a clause for the event of a breach of contract—therefore, the rules of arbitration vary greatly and depend on the terms of arbitration specified in the contract. It’s highly encouraged to read the agreement thoroughly and check for arbitration terms. The opposite party is required to provide written notice when amending arbitration terms. You may request arbitration terms to be amended if you deem them unfair or inconvenient—and if the other party wants your business bad enough—they will likely do it for you. If you’d like a quick, inexpensive, and accurate review of your agreement, contact us by clicking here now or giving us a call. Don’t allow unfair advantage from forcefully binding arbitration clauses involving one-sided rules and small print for pre-dispute adjudication.

It’s good to note that agreeing to arbitration is done in one of two scenarios:

  • Before the dispute emerges, in signing an agreement with an arbitration clause.
  • After a dispute occurs, by signing an agreement stating that the matter shall get settled through arbitration.

Arbitration Agreement Clause

When drafting a contract, both parties should pay very close attention to what will happen in the event of a breach. As a signatory, you should be able to predict what exactly will legally happen if a party were to breach the contract. For example, including a mandatory arbitration clause in the event of a lawsuit can be an effective method for resolving future disputes. The terms, conditions, and rules of arbitration may also vary depending on what’s written under the arbitration clause. The arbitration clause can be designed to give an individual or entity a legal and business advantage over the other party. We can help you create an ironclad agreement achieving favorable yet win-win scenarios for both you and the other party. If you’re on the receiving end of an unfair advantage from an agreement or it’s arbitration clause, you may need legal representation! Call our expert arbitration lawyers at (800) 603-3900 for a free consultation!

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What Triggers an IRS Audit and What To Do if Audited

What Triggers an IRS Audit and What To Do if Audited published on

What is an IRS Audit?

What triggers an IRS audit is when the IRS has reason to suspect that the income or deductions you reported are inaccurate, they might issue a tax audit wherein you prove that the numbers you stated are truthful. IRS audits are costly to the government, and only a small percentage of taxpayers receive an IRS audit. The less money you make, the less likely it is that you’ll get audited—and an IRS audit isn’t something to be feared, just understood. Receiving an IRS audit doesn’t always mean that you’re in trouble with the IRS. In this article, we’ll cover and answer the main questions taxpayers may have about IRS audits. We’ll even provide free consultations with a tax attorney, so you know your options and avoid any tax or legal difficulties.

Types of IRS Audits

The types of IRS Audits include:

Correspondence Audit

A correspondence audit is a letter from the IRS Service Center requesting that you send in copies of your canceled checks and/or receipts in order to verify certain deductions on the return.

 Field Audit

A field audit is where the agent conducts an audit at the place of business rather than the IRS office.

 Office Audit

An office audit requires you to bring certain documents to the local IRS office for the auditor’s examination.

Taxpayer Compliance Measurement Program Audit

This is a total audit in which every part of the return must be substantiated by documentation.

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How far back can the IRS audit?

Tax returns older than 3-6 years usually don’t get audited unless what triggers an IRS audit is a good reason for them to think it’s worth the audit. Typically, the IRS wants to audit tax returns as soon as possible after they get filed. The statute of limitations for tax assessment is generally three years after a return gets filed or is due, whichever of those is later. You can agree to extend the statute of limitations for a tax assessment if the audit requires it.

what-triggers-an-irs-audit

What triggers an IRS audit?

What triggers an IRS audit is normally simple matters that are easy to resolve and require you to send documentation that prove the statements on your tax return and alleviates their concerns.

The IRS uses a computer system to scan every tax return it receives and crawl for discrepancies and things that don’t make sense between taxpayer returns of similar income. Claiming too many tax deductions and that you donated a substantial amount of your money to charity will likely result in the program placing a red flag on your return. You will also send out a red flag if you deposited or used a lot of cash and the income your reported doesn’t coincide. The system also compares your deductions to others of similar tax returns and looks out for numbers that are way beyond normal. As obvious as this may be—driving around in a Porsche and owning a big house in Miami while reporting $30,000 of earned income will likely get you audited.

Filing with a “professional” won’t necessarily help you avoid what triggers IRS audits, and if they push the envelope on trying to get you the biggest return possible, it may result in your tax return getting audited. Call our tax attorneys for a free consultation, where we can inform you of the options you have to avoid any negative legal implications with the IRS, and truly get you the best outcome possible.

What happens if you get audited by the IRS?

Most IRS audits are no big deal; answer a few questions, send the information they want by mail, and go about your day. These correspondence audits may require simple documentation to bring closure to the matter. About a 5th of the time does the IRS demand someone to run to the local office for an in-person audit. In this case, you should seek legal representation. We can help, give us a call at (800) 603-3900 for a free consultation with our Miami IRS audit lawyer.

How long does the IRS audit process take?

Most IRS audits may take from 6 months to a year to finish processing. The Statute of Limitations gives the IRS 3 years to process additional taxes on your return. If the unreported income amount is large enough, the IRS can extend the statute to 6 years. The IRS wants to conclude audits as quickly as possible, but delays may happen if additional information or documentation is required. It may take even longer if the IRS finds that you have several adjustments to make, or if you own a small business with a lot of cash involved. If for some reason the IRS penalizes you—including a penalty for fraud (which happens in less than 1% of cases), or if you appeal your case with the IRS—this can significantly increase the time it takes for the IRS audit to finish processing.

What happens if you fail an IRS audit?

The possible penalties for failing a tax audit may include additional tax interests, civil penalty, fraud penalty, or criminal charges. The more severe the failure, the more stringent the penalty will be. Misstating asset values, underreporting your income, failing to comply with IRS policies, deadlines, and due dates—are some of the ways you can get a penalty on your IRS audit. The IRS will decide whether the error was due to being negligent and not taking proper care in preparing your tax returns, or if the error was due to fraud. In the case of fraud, you may be liable to owe almost twice as much in taxes among other penalties. If you have a penalty or are in fear of one, you will likely need representation; please call us for a free consultation with our tax lawyers—we have 175 years of cumulative experience helping people with such matters.

What can a Tax Lawyer do for me?

If you’re facing an IRS audit by mail or in-person—or if you have penalties, a tax lawyer will advise you of all the legal implications involved in your particular case and help you reach a much better outcome compared to going at it by yourself or with an accountant.

One reason a tax lawyer may be a better option is the attorney-client privilege; making a tax lawyer duty bound not to disclose any information in any client communications whether oral or written. We cannot testify against you, yet a CPA could be subpoenaed to testify against you in an IRS court case. Also, a tax attorney may have experience with tax settlements and how to achieve the most favorable outcome for you.

Hiring one of our lawyers is not expensive; we want to provide quality representation at a fair cost—and save you more money in the long run by helping you avoid tax and legal trouble with the IRS (something no one wants). Call us now for a quick, easy—and best of all, FREE consultation at (800) 603-3900.

CLICK HERE to read more about ‘IRS Audits’ from IRS.gov
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Child Support and Child Custody 101 | What You Need To Know

Child Support and Child Custody 101 | What You Need To Know published on

What is Child Support?

Child support is when one parent provides financial support to their child—typically occurring after a divorce or separation—and one parent makes considerably less income,but can also happen with parents who were never married or living together. A parent may get forced into child support payments even if they have no contact with the child. The parent who is not living with or raising the child will be ordered to render child maintenance payments every month, even in the situation where both parents have joint custody. However, parents can legally surrender parental rights with the consent of the court and the other parent to give up all rights, custody, and financial responsibility to the child. A child must be the genetic offspring or the adopted child of the parent to qualify for child support. A step-parent is not required to pay child support unless they legally adopted the child.

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Child Support – Taxes, Eligibility, Unpaid Child Support, Disclosure, Obligations

The primary intent of child support is to ensure that both parents have equal financial responsibility for the child. When it comes to taxes, the parent who pays child support cannot use those payments as tax deductions, and the parent who receives child support is not required to report the payments as income. Children who are over the age of 18 but still in high school may still be eligible for child support, and those with disabilities may still receive child support long after they reach the adult age. In the case of unpaid child support, a parent may still be obligated to pay it even after the child reaches the age limit and separates from the custodial parent. A parent receiving child support isn’t required to disclose what the money is being spent on and can use it on things that directly or indirectly relate to the child. Parents face incarceration if they possess the capability to pay child support but refuse to do so, not if they legitimately lose a job and are unable to pay. Child support obligations follow a parent no matter what state they choose to move to as they all work together. Fortunately for both parents, child support payments are not set in stone and can increase or decrease based on many factors including a change in either parents’ financial circumstance.

child-custody-and-support

When does Child Support end?

Child support is meant to provide the child with the same quality of life he or she would have had if the parents lived together. Every state has different formulas and factors that determine how much a parent will have to pay in child support. A parent can withdraw from paying child support temporarily if they petition with the court due to lack of income or if he or she is going to jail. Child support ends permanently when the child reaches age 18 (21 in some states), or if the child passes. Another way a parent can avoid child support payments is to attain custody of the child—which will depend on the court’s judgment of a parent’s moral, financial, physical and mental fitness—including how stable and healthy the environment is for the child. Also, a parent may be able to stop paying child support if the child gets married or joins the military before reaching the age limit. Only a lawyer can advise you of the legal implications within your particular child support situation; call us for a free consultation at (800) 603-3900.

What is Child Custody?

A parent’s rights and responsibilities towards their child is known as child custody. Child custody involves the rights a parent has to live with their child, take care of their basic needs, and make decisions for them. Married parents share full custodial rights—however, these rights may be amended and re-established during divorce. For unmarried parents, the father has no legal rights to his child unless he establishes paternity, even if the parents live together. In the case of a child custody dispute between parents, the best results typically come from setting a firm custody agreement with the child’s best interest in mind. The child is what the courts care about—and the parents’ child custody rights may depend on their financial, mental, physical, and moral fitness—including how stable their environment is for the child’s upbringing.

Types of Child Custody

The types of child custody include:

Legal Child Custody and Joint Legal Custody

Legal child custody is when a parent can legally make decisions on matters that affect the child. In the case where both parents share legal child custody, one can take the other to court if he or she is excluded from decision-making on matters impacting the child’s life.

 Physical Child Custody and Joint Physical Custody

Physical child custody refers to the rights of a parent to live with their child. Parents can have joint physical child custody, which gives both the legal right to live with the child. In many cases, one parent has Sole physical child custody and the other visitation rights.

 Sole Child Custody

Sole child custody means that one parent wields both legal and physical custodial rights to the child. If the court allows it, the other parent can still have visitation rights but is disabled from living with the child or making decisions on the child’s behalf.

How to get Child Custody?

To get the best outcome in a child custody case, you will need to prove to the court that you have the child’s best interest in mind and are beneficial to the child’s welfare. Ideally, the court wants both parents to share legal and physical custody, especially if siblings are involved so that they aren’t separated. The court may take into consideration which parent will allow the other to have frequent contact with the child. Courts don’t consider a parents’ gender when granting custodial rights, but they will consider factors that yield to the child’s wellbeing. Firstly, the child’s preference will have some weight in the child custody courtroom—how much depends on the child’s age and capacity. The amount of conflict between the parents and their ability to cooperate will also be measured. A parents’ financial, physical, mental, emotional, and moral standing get put into play as well. A court will also base their decisions on how healthy a parents’ social environment and lifestyle can be for the child’s development. Ultimately, there are many factors considered in child custody cases, and there exist differences between states and courtrooms, but the most important thing to keep in mind is what’s best for the child. Child custody is a complex legal process; the wrong move could destroy families and greatly hinder a child’s development. Call us for a free consultation with one of our lawyers. We’ll use our 175 years of experience and do everything we can to help you and your child have a better future together.

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What is Medical Malpractice? | How to sue a Doctor or Hospital

What is Medical Malpractice? | How to sue a Doctor or Hospital published on
medical-malpractice

What is Medical Malpractice?

There are a variety of circumstances in which healthcare practitioners become engaged in civil litigation. The most common example is medical malpractice lawsuits. Medical malpractice disputes involve a negligent act or omission by a health care provider, insofar as such act or omission which deviated from medical professional standards and such act or omission caused injury to the patient. There are also claims relating to injury and death from a medical device, such litigation is related to claims involving injuries caused by defects in medical device design, and medical device manufacturing and a medical device manufacturer’s failure to warn. People also die from or are seriously injured by prescription drugs they believe to be safe because they have been prescribed by doctors, but many of these defective drugs are inadequately tested or have insufficient warnings on their labels.

Can you sue a Doctor?

To have a valid medical malpractice claim, you must be able to prove that the doctor’s negligence caused the injury. You must have a doctor-patient relationship established and show that the practitioner’s negligence demonstrably led to damages. Improper treatment, failure to warn patients and properly diagnose can lead to physical and mental pain, unnecessary medical bills, and loss of work among ability to earn income. Call our lawyers directly at (800) 603-3900 for a free consultation to ascertain that suing your doctor is possible. You don’t have much time after injury to file a claim, give us a call now!

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Can you sue for misdiagnosis?

Misdiagnosis or failure to diagnose is a common medical malpractice claim. Misdiagnosis leads a patient through a domino effect of medical malpractices, such as unnecessary or improper surgery, medications, premature discharge, and poor medical aftercare. For a medical misdiagnosis claim to be valid, a doctor-patient relationship has to have existed. Also, injury—physical or mental—with losses like missed work and income had to be caused by the misdiagnosis. If you or your family has been a victim of medical malpractice or misdiagnosis, contact a board-certified medical malpractice attorney at (800) 603-3900.

Can you sue a hospital for medical malpractice, misdiagnosis, or negligence?

To sue a hospital—and determining the hospital’s liability for your injury or loss depends on a few things. The first question is whether or not the doctor or healthcare practitioner is an employee of the hospital; if the doctor is an independent contractor for the facility (which most are), the hospital cannot be held responsible for the doctor’s medical malpractice. If injury and loss from the medical malpractice originated from the negligence of a hospital’s employee, suing the hospital may be possible. If the doctor is an independent contractor, you may be able to sue the hospital instead of the doctor if you can prove that they didn’t disclose his status as a non-employee, or if they choose to keep employing a doctor with a proven record of malpractice and incompetence.

What types of Doctors can I sue?

The following are some of the types of doctors that may be sued for medical malpractice:

Allergists Anesthesiologists Audiologist Andrologists Cardiologist Cardiovascular Surgeon
Clinical Neurophysiologist Dentist Dermatologists Emergency Doctors Endocrinologist Epidemiologists
ENT Specialist Family Physicians Gastroenterologist General Psychiatrist Gynecologists Hematologist
Hepatologists Hospitalists Infectious Disease Specialist Internal Medicine Specialist Medical Geneticist Microbiologist
Neonatologist Nephrologists Neurologist Neurosurgeon Nuclear Medicine Physicians Obstetrician
Oncologist Orthopedist Ophthalmologists Primatologist Pathologists Pale Pathologist
Pediatricians Plastic Surgeon Podiatrists Preventive Medicine Physicians Psychiatrist Primatologist
Pulmonologist Reproductive Endocrinologist Rehabilitation Physicians Rheumatologist Radiologists Sports Medicine Physicians
Surgeon Thoracic Oncologist Urologist
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How to sue a contractor | What to do when a contractor does poor work?

How to sue a contractor | What to do when a contractor does poor work? published on

What to do when a contractor does poor work?

When a contractor performs poorly, the first and most obvious action is to fire the contractor. Let’s briefly talk about the implications of that and other options you have available: Firing your contractor could result in a breach of contract unless you can prove that he breached the contract first by not performing to the specifics of the contract. Some contracts include arbitration as a clause to resolve a dispute instead of involving a small claims court. Hiring a lawyer is your best bet, preferably one that doesn’t break the bank and offers a free consultation.

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What to do if a contractor breaches contract?

The first thing you may want to do is have an attorney review the contract to see if there’s any terms or conditions that were violated, resulting in a breach of contract. If so, your attorney will notify the contractor with a breach of contract letter. The letter will provide specific details of the breach and other remedies to keep this out of court. The breach of contract letter provides the court with proof that the contractor was notified and that you attempted to correct the breach of contract. You will need to provide your attorney with any related records, documents or paperwork that will strengthen your case. In the case of a breach of contract, there are several methods to remedy the situation.

The primary objective of remedies in contract law is to make sure that the non-breaching party ends up in the position they would have been in if the contractor had performed as the contract promised. The contractor at fault pays compensation for any damages incurred by the breach, along with payment to the non-breaching party for hiring someone else to complete what they failed to deliver—among any other losses. Punitive damages may be given out to punish the contractor and to deter others from doing the same. Punitive damages typically apply to a contractor that acted maliciously, fraudulently, willfully.

What recourse do I have against a contractor?

There are many options and tools available to you when dealing with a bad contractor. You can try contacting the state’s licensing board which regulate contractor licenses and file a complaint. Leave reviews on social media, the Better Business Bureau, directories like Yelp and Google, and consumer review websites. You can try and resolve this in a small claims court in which you would represent yourself, but we highly advise that you call us for a free consultation first. You could be eligible for greater monetary compensation than a small claims court can handle, which is typically only $10,000 in damages. Gather all documents, invoices, receipts, contracts, e-mails, texts, and any other communications between you and the contractor. Document and track all attempt to resolve your issue with the contractor to make your case as strong as possible. If you can meet their requirements, the Contractor (or Homeowners) Recovery Fund may compensate you for damages due to a contractor’s negligent, fraudulent, incompetent, or dishonest practices. We’ll discuss all of your options with you and review your case to make sure you receive maximum compensation.

Home improvement and contractors

No matter which state you reside in, the law will likely favor a homeowner rather than a home improvement contractor. The law applies strict standards and requirements when a contractor does any home improvement work inside a private home. In states like New Jersey, if a home improvement contract begins work before a contract is completely written and signed by both parties; one of the parties may sue the other for treble damages as well as their attorney fees. Additional things are required of home improvement contractors rather than a signed written agreement but in any case, the home improvement contractor must follow two steps. First, the home improvement contractor must determine whether or not the work being performed in the home is classified under “home improvement.” For example, in some states installing windows or a fence does not require a permit and doesn’t leave a contractor open to these strict laws, however, doing any electrical work or any bathroom plumbing will likely be classified as home improvement work which comes with strict requirements.

It is in your best interest to know and understand the law before any work is performed in a private residence. Builders who fail to keep customers dry and comfortable will almost inevitably end up in a lawsuit. Complaints also focus on defective products that fail to live up to their advertised claims, such as lifelong plastic plumbing systems and untested, leaky windows. Homeowners often feel cheated when these simple components cause trouble in their $200,000 homes. They resort to the law to help them recoup. Defects occur for many reasons, some more frequent than others. These include complex house design; changing customer expectations; new, untested, and incompatible materials; a lack of quality control on the job site; changes in the workforce; compressed schedules; and the lack of widely accepted standards for quality verification. Avoid the pitfalls, speak with an attorney at Spiegel & Utrera, P.A.

How to sue a contractor

Hiring a contractor and not getting what you paid for or what they promised can be frustrating. Fortunately, there are plenty of options available if a contractor does poor or unfinished work, damages your property, breaches the contract, or rips you off. A dispute with a licensed contractor may get resolved in mediation or arbitration, or a small claims court if he or she lacks a valid license. First, catalog the contracts, invoices, e-mail and texts, receipts, checks, among other documents or communications. Depending on the statute of limitations for your state—and if there was a contract involved or not—determine how long you may have to file a claim. Also, calculate the damages you’ll want to claim; depending on the amount and the state you’re in, it might get settled in a small claims court. Spiegel & Utrera, P.A. can assist you with properly documenting and filing your claim.

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Avoiding Probate | Living Trust, Establishing Beneficiaries, Joint Tenancy

Avoiding Probate | Living Trust, Establishing Beneficiaries, Joint Tenancy published on

What is Probate?

When someone passes away, the legal process in which their assets get properly distributed—to designate heirs and pay off debt—is known as probate. The probate court will first assign someone to manage the estate, choosing one if there is no will or if the will doesn’t appoint one. The deceased individual’s properties and assets get cataloged, appraised, then designated to heirs according to the will. If there is no will, the distribution of the decedent’s property will yield to State probate law. All debt and taxes owed by the departed—including lawyers and court fees get paid off with probate assets. For a lot of people, avoiding probate is the best way to prevent all those costs, which could take up a large sum of what the heirs would have received. Read on to learn how to avoid probate and save your loved one’s hard-earned money from unnecessary fees, penalties, and taxes.

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What Types of Assets are Subject to Probate?

Many assets may not be subject to probate, and get passed on to the beneficiaries automatically without including a probate court. Assets subject to probate include those that aren’t under a trust, don’t have an established beneficiary or heir, and aren’t jointly owned. Property with tenants in common—which several individuals share ownership of, will go through probate to find an appropriate heir to the decedent’s share in ownership.

How to Avoid Probate?

There are several ways to avoid putting your assets through probate when you pass, including:

  • Create a Living Trust
    Assets under a living trust get passed on to the designated beneficiaries automatically without going through probate. Avoiding court and lawyer fees, taxes, and other costs amidst a great expense of time and effort.
  • Establish Beneficiaries
    Many assets such as bank accounts give owners the option of naming a successor, so the account gets transferred automatically to the heir without the need for probate.
  • Joint Ownership
    Joint ownership (also known as joint tenancy) is when two or more people—own an equal share of the asset—such as a married couple. When one of the owners pass, the other owner(s) absorb their share. Not to be mistaken with tenants in common, in which two or more people share ownership, but instead of the other owner(s) absorbing the decedent’s share, it gets passed down to a beneficiary in the probate process. Joint ownership with rights of survivorship is a great way to bypass probate and expedite distribution of your wealth to your loved ones.

What is a Living Trust?

A Trust is an arrangement where money, real estate, or other assets are transferred from the settlor to be managed and administered for the benefit of another pursuant to the terms of the Trust.

  • Revocable Living Trust
    The revocable living Trust is created by a written document, known as a Trust instrument, and funding of the Trust should occur at the same time as the execution of the Trust instrument, or shortly thereafter. Most often the grantor or settlor, the creator of the Trust, and Trustee, the administrator of the Trust, are the same individual, and the grantor or settlor reserves the right to revoke or amend the Trust at any time. The main attraction of Revocable Living Trust is the avoidance of probate upon the grantor or settlor’s death. Probate is avoided because the Trust assets are owned by the Trust rather than the grantor or settlor. Also, if a grantor or settlor has properties in several states, the cost of probate administration is avoided because the administration is consolidated with one Trust instrument. The property held in the Trust will pass at the grantor or settlor’s death free of probate unless the Trust estate is to be distributed to the Personal Representative of the probate estate.
  • Irrevocable Living Trust
    A revocable Trust is a Trust where the Trust can be modified, amended, or revoked; an irrevocable Trust is a Trust, which, by its terms, cannot be modified, amended, or revoked. What does this mean? While the Revocable Living Trust allows the grantor or settlor to retain some asset control, has flexibility and avoids the costs and duration of probate, the tradeoff is that the assets in the Trust do not avoid the estate tax. With an Irrevocable Living Trust the grantor or settlor’s control is ceded, but the estate tax is avoided.

How Can I Transfer Assets To The Trust?

You should transfer title to the Trust the way it normally would happen: with a deed for real property; a vehicle title for a car; or a bill of sale for personal property. If you have a mortgage, you should contact the lender to find out if they will permit the transfer. The transfer to the Trust will be effective and perfected when the deed is signed, documented and recorded. A bill of sale is used to transfer most personal property. Anything not transferred to the Trust may be subject to probate. Because personal property may be purchased after the date of the bill of sale, periodic transfers would need to be made or purchase may be made directly by the trust with its cash, bank note or credit card.

How To Create a Living Trust

Creating a living trust entails cataloging all your assets, corresponding paperwork, titles, deeds, certificates, and choosing beneficiaries for those assets. It’s a complex legal process and you should hire an attorney to prepare the documents and create the living trust for you to cover all your bases and avoid negative legal implications. Give us a call for a free consultation at (800) 603-3900.

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