An IRA prohibited transaction issue at the center of a tax court case could have been avoided with IRA Financial Groups self directed IRA compliance service.

A recent U.S. Tax Court decision highlights the importance of working with tax professionals before using retirement funds to make an investment involving alternative assets. In Peek Vs. Commissioner, 140 T.C. No. 12 (May 9, 2013), two Colorado taxpayers used IRA assets to help them buy a fire-safety business. In a May 9 opinion, a judge ruled that Messrs. Peek and Fleck engaged in a prohibited transaction that terminated their accounts when they bought the business. The facts of the case are that the two men each used $ 309,000 of assets from their respective IRAs in August 2001 to buy two 50% shares in a corporation. The corporation then paid $ 1.1 million to buy Abbot Fire & Safety, a provider of fire alarms, sprinkler systems and related equipment. The purchase price consisted of $ 400,000 of the taxpayers’ IRA assets, a bank loan and other funds, including a $ 200,000 promissory note personally guaranteed by the two men. The note was secured by their homes. Based on the facts presented, if Mr. Peck and Mr. Fleck would have worked with a tax attorney at the IRA Financial Group, they would have been told immediately that this transaction would violate the IRS self-dealing rules under IRC 4975, stated Adam Bergman, a tax attorney with the IRA Financial Group. As a result, each owed tax of more than $ 225,000 plus more than $ 45,000 in penalties.

According to Mr. Bergman, the prohibited transaction rules are extremely broad and the penalties extremely harsh (immediate disqualification of entire IRA plus penalty). As a result each client of the IRA Financial Group is automatically enrolled in an IRA compliance program that allows the client to have a proposed self-directed IRA investment reviewed by a tax attorney to make sure the transaction does not violate any of the IRS prohibited transaction rules under IRC sections 408 and 4975. Mr. Bergman further states that the IRA owner self directing his or her investments must be especially cautious in engaging in transactions that could compromise his or her best judgment or result in a direct or indirect personal benefit.

In general, The Internal Revenue Code does not describe what a self directed IRA LLC can invest in, only what it cannot invest in. Internal Revenue Code Sections 408 & 4975 prohibits IRA disqualified persons from engaging in certain type of transactions. The purpose of these rules is to encourage the use of IRAs for accumulation of retirement savings and to prohibit those in control of IRAs from taking advantage of the tax benefits for their personal account. The facts in Peek vs. Commissioner are such that if the plaintiffs would have sought the advice of a tax professional before engaging in the IRA investment, they would have certainly been told that their proposed transaction violated the IRS prohibited transaction rules under IRC 4975, stated Mr. Bergman. This tax court case is the reason we assign a tax attorney to all of our self-directed IRA clients so they have the opportunity to have a tax professional review their transaction to confirm that it would not violate any of the IRA prohibited transaction rules, stated Mr. Bergman.

The penalties for engaging in an IRS prohibited transaction are very harsh, according to Mr. Bergman. If the IRA holder or IRA beneficiary engages in a transaction that violates the prohibited transaction rules set forth under Internal Revenue Code Section 4975, the individuals IRA would lose its tax exempt status and the entire fair market value of the IRA would be treated as taxable distribution, subject to ordinary income tax. In addition, the IRA holder or beneficiary would be subject to a 15% penalty as well as a 10% early distribution penalty if the IRA holder or beneficiary is under the age of 591/2.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading provider of self-directed IRA LLC structures. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

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One might think that with all the extra taxes added on in 2013, that there wouldn’t be anything to give. However, a March 22, 2013 Forbes article (Don’t Gamble with Gift Tax Returns forbes.com/sites/deborahljacobs/2013/03/22/dont-gamble-with-gift-tax-returns) says that those filing 2012 taxes have included Form 709 at a doubled rate from last year. Since gift taxes and exclusion amounts can be quite confusing to taxpayers, Platinum Tax Defenders offers five tips on how to avoid filing (or gain tax relief by filing for) gift taxes, and says that tax resolution services may be quite helpful in tax planning for past as well as future year returns.

First, according to Forbes, gift taxes are not just for the wealthy though the wealthy do tend to give away money so that tax burdens can be reduced. The lifetime gift tax limit is just above $ 5 million adjusted for inflation, you can now give away up to $ 5.25 million dollars during your lifetime, either in a lump sum or in chunks so that the taxable income can be reduced every year.

Second, taxpayers are allowed to give a certain amount annually without having to reduce their future base for giving, called the annual exclusion. The IRS raised the annual limit of tax-free giving from $ 13,000 to $ 14,000 annually, according to a second Forbes article written in October 18, 2012 (IRS Raises Yearly Limit for Tax-Free Gifts forbes.com/sites/deborahljacobs/2012/10/18/irs-raises-yearly-limit-for-tax-free-gifts/). This means that if gifts of $ 14,000 or less are given every year, this won’t reduce a taxpayer’s ability to give away $ 5.25 million tax-free after death, via an estate.

Third, lest you be confused between the $ 5 million of gift tax exclusion with the $ 5 or so million dollars of completely tax-free estate exclusion, these are related. Essentially, if you give away high amounts during your lifetime, this reduces the amount of tax-free giving that can be allocated after death (via the estate). Gifts over $ 14,000 given during life or after death are subject to the $ 5 million ceiling, adjusted for inflation. After that, the money will be subject to a 40% tax for giving too much.

Fourth, it pays to be married. If the estate that you leave is less than $ 5.25 million, that can be transferred to parties named in estate planning documents without incurring high estate tax rates. A January 2, 2013 Forbes article (After the Fiscal Cliff Deal: Estate and Gift Tax Explained forbes.com/sites/deborahljacobs/2013/01/02/after-the-fiscal-cliff-deal-estate-and-gift-tax-explained/), points out that this $ 5.25 million limit can really add up for married couples with joint estates, so that one married partner’s leftover exemption amount can pass on to the other partner. Widows and widowers can add any unused exclusion of the spouse who died most recently to their own. This enables them together to transfer up to $ 10.5 million tax-free.

Fifth, gifts must be documented so that the IRS knows how much money has been given away. Even if no taxes are owed, taxpayers must still file the 709 form. According to Forbes’ Don’t Gamble with Gift Tax Returns, almost 220,000 taxpayers filed a 709 form in 2011, and only 3,000 of those were giving away $ 1 million or more. Giving to a 529 plan for the education of future generations is a related topic, with similar complications.

Since the topic of giving without incurring IRS audits is quite complicated, Platinum Tax Defenders encourages taxpayers wishing to reduce their taxable basis to bring complicated questions to a tax relief office. Obtaining back tax help would also be good for taxpayers who have neglected to file any form 709′s on gifts given.

Platinum Tax Defenders is owned by Sherri Gastelum and includes a team of 10 professionals willing to answer taxpayer questions in free consultations, which can last somewhere between 20 to 45 minutes. The team of professionals include one tax attorney, at least one CPA, and a former IRS agent. After 20 years’ experience with corporate, personal business, and tax issues, Sherri has built a firm that offers quality relief to people who need guidance for intricate tax situations, especially during discussions and back tax negotiations with the IRS.

For more information from Platinum Tax Defenders on tax-related issues, call 1-877-668-1807 or send an email to info(at)tax-resolution(dot)me.

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Where as my mom gets paid 9.00 hr part time and gets one.

Could the court order be thrown out for like false repersation or something

Best answer:

Answer by candice h
I don’t think so. Doesn’t everybody have the right to have access to a court appointed attorney, regardless of income? I really don’t know though.

Know better? Leave your own answer in the comments!

The Texas legal market has vastly improved, and several practice areas are showing robust demand, according to legal recruiting firm BCG Attorney Search. Law firms are currently hiring attorneys in corporate, IP prosecution, and IP litigation.

After noticeably more restrained hiring levels during the economic downturn, the Texas legal market is booming again. BCG Attorney Search recruiter Suzanne Howe, who oversees the Texas market, identified several practice areas that are showing growth.

Our most in-demand area is corporate transactions, with the strongest needs in mergers and acquisitions, though we also have securities needs as well, said Ms. Howe. Energy transactions are another area that is hot year after year. We also have significant needs in Intellectual Property for patent prosecution and IP litigation candidates, as well as IP transactions.”

Within corporate, law firms are hiring primarily at the junior and mid-level. Because of the recent downturn in the economy and subsequent decline in corporate work, law firms are having difficulty meeting demand for transactional attorneys in the class years of 2009, 2010, and 2011. Transactional work dried up during those years, and many associates who would normally have practiced in corporate were placed into other practice groups – or worse, lost their jobs. This trend mirrors what occurred in other practice areas that were hit hard during the recession, such as real estate, which is now similarly seeing a dearth of mid-level attorneys.

Within IP, law firms are seeking candidates at all levels, and even occasionally law students, with backgrounds in Electrical Engineering, Computer Science, or Physics. For other technological disciplines, including life sciences like biology and chemistry, most of the IP need is for mid-level associates.

To a certain extent, demand in corporate and IP is a natural consequence of the type of businesses located in Texas. For the corporate market, the enormous amount of corporations headquartered in Texas keeps the deal flow fairly constant, with much higher levels than a lot of other markets, noted Ms. Howe. I also believe the large numbers of technology companies headquartered in Texas contributes to our substantial IP needs. The filings within the Eastern District of Texas bring a lot of IP litigation flow through Texas.

Unfortunately, the demand for corporate and IP attorneys comes just before the summer, a time when hiring typically slows down at law firms. During the summer months, the same law firm recruiters who spearhead the hiring process are preoccupied with running summer associate programs and preparing for fall recruitment. In addition, key partners often take vacations during these months, making it logistically more difficult to schedule interviews with all the necessary people. For these reasons, the use of a recruiter can be instrumental in a summer job search.

Not to make light, but choosing an effective recruiter can go a long way, said Ms. Howe. A recruiter who can get the attention of key decision makers during the summer months can be your best ally during these months. Its also important to have a fair amount of patience during the summer months, as everyone is waiting on everyone else who is tied up or out.While I find decisions take longer during the summer, I personally have never found that lateral hiring grinds to a halt.

Ms. Howe also noted that candidates who begin their searches now will have that much more of an advantage over those who postpone their job search until after the summer. A summer search can be tedious, but its also a great idea to start a search in the summer months as you will have a jump on everyone who starts their search in the fall.”

About BCG Attorney Search:

BCG Attorney Search is a premier recruiting firm for experienced attorneys in the United States. Since the year 2000, BCG Attorney Search has placed thousands of attorneys with employers who were the best fit for individual candidates, and helped law firms and companies with their recruitment efforts. The website of BCG Attorney Search is here http://www.bcgsearch.com/

IRA Financial Group, the leading facilitator of self-directed IRA and Solo 401(k) Plans announces a new solution that will allow self-employed individuals and small business owners the ability to make tax-deductible employer profit sharing contributions up until the tax return is filed. A self-employed individual who has not adopted a solo 401(k) Plan during that year would not be able to make an tax deductible contributions with respect to that tax year. However, IRA Financial Groups Self-Directed SEP IRA solution would allow a small business owner with no employees the ability to make tax-deductible employer contributions for a prior tax year. Our Self-Directed SEP IRA LLC solution will allow an entrepreneur to make tax deductible contributions for the 2012 taxable year and then roll those funds into the Solo 401(k) Plan solution, stated Adam Bergman, a tax attorney with the IRA Financial Group.

IRA Financial Groups Self-Directed SEP IRA solution will allow a business owner to make tax deductible contributions up to (i) 25% of the compensation amount, or (ii) $ 51,000, whichever is less. A Self-Directed SEP IRA, also called a Self-Directed SEP IRA LLC with checkbook control, is an IRS approved structure that allows one to use their retirement funds to make real estate and other investments tax-free and without custodian consent. The Self-Directed SEP IRA involves the establishment of a limited liability company (LLC) that is owned by the IRA (care of the IRA custodian) and managed by you or any third-party. As manager of the IRA LLC, the IRA holder will have control over the IRA assets to make the investments he or she wants and understands not just investments forced upon you by Wall Street.

Through IRA Financial Group Self-Directed SEP IRA solution, the small business owner would be able to rollover tax-free the SEP IRA funds into a newly established Solo 401(k) Plan, which would offer the business owner with enhanced retirement benefits. Through IRA Financial Groups Solo 401K Plan, a self-employed individual would gain the ability to make high tax-deuctible contributions (up to $ 56,500), borrow up to $ 50,000 tax-free and use the loan proceeds for any purpose, as well as make real estate and other investments on their own tax-free and penalty free without requiring the consent of any custodian or person.

By implementing our Self-Directed SEP IRA LLC solution in conjunction with a Solo 401(k) Plan, a self-employed individual would be able to make tax deductible contributions for a prior tax year and roll those funds tax-free into a Solo 401(k) Plan for the upcoming taxable year, stated Mr. Bergman. Using the Self-Directed SEP IRA would allow the self-employed individual to take advantage of making tax-deductible contributions for a prior tax year where no Solo 401(k) Plan has been established, stated Mr. Bergman.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading checkbook control Self Directed IRA and Solo 401(k) Plan Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

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The Commercial Law League of America is pleased to announce that former Chicago Mayor Richard M. Daley will give our 2013 Chicago Convention keynote presentation.

A former Cook County state’s attorney and state senator, Daley served as Chicago’s longest-running mayor from 1989 to 2011. He currently holds an of counsel position at international law firm Katten Muchin Rosenman LLP, is a director at The Coca Cola Company and chairs JP Morgan Chase’s Global Cities Initiative.

Daleys CLLA Chicago/Spring meeting keynote speech, “City CEO: Rising to Challenges and Change,” will identify unique advantages that the current global economy presents.

The 2013 CLLA Chicago Convention: The Road to Reinvention will be held from April 11-13, 2013, at the Westin Michigan Avenue, 909 N. Michigan Ave.

The dynamic annual three-day event provides daily education, networking and career development opportunities for legal, credit, bankruptcy, collections and finance industry professionals–including several exciting events debuting this year, such as a networking event for women in the collections industry and litigation-based public speaking bootcamp.

Attendees will also be able to take advantage of coursesincluding 16+ hours of continuing legal education crediton topics like construction law; Telephone Consumer Protection Act (TCPA) compliance; boosting collection rates and collection agency profitability; and handling commercial transactions and collections work under the expansion of same-sex marriage and civil unions.

“From the keynote by former Mayor Daley, who is considered a top urban executive, to world-class education and networking opportunities, the CLLA annual Chicago meeting will live up to its billing as the road to reinvention,” said Anthony Hilvers, executive vice president of the CLLA.

For more information about the CLLA or its Chicago Convention, please contact Communications Director Erin Brereton at ebrereton (at) clla (dot) org.

About the CLLA

Since 1895, the CLLA has connected experienced attorneys with credit grantors, lending institutions and other members of the commercial credit, bankruptcy and general finance industries, providing new business opportunities through networking, education, legislative advocacy and highly effective specialized legal services. For more information, visit http://www.CLLA.org.

www.mhkfamilylaw.com Pennsylvania divorce attorney Connie Merwine of MHK Attorneys talks about using your spouse’s attorney as your own. Using your spouse’s attorney is a clear conflict of interest as they cannot look out for your best interest and your spouse’s best interest at the same time. You will need to find separate representation for yourself.Watch the video now to learn more. For more information about divorce and my firm, visit our educational website at http where we look forward to representing you and looking out for what is best for you. If you have legal questions, I want you to call me at (855) MHK-ATTY. I welcome your call. MHK Attorneys HC 89, Box 105, Route 940 Pocono Summit, PA 18346 Phone: 855-MHK-ATTY Phone: 570-839-8050 Fax: 570-839-6723 Other locations include: Brodheadsville, PA Lehighton, PA Stroudsburg, PA Bethlehem, PA Easton, PA Wilkes Barre, PA Throop, PA
Video Rating: 5 / 5

Kathleen Sigurdson, Kathleen A. Sigurdson Attorney at Law, (775) 835-4549. Nevada Vehicle Rollover Law FAQs: thelaw.tv Disclaimer: thelaw.tv

With IRA Financial Groups special Individual 401(k) Solution, retirement funds can be used to buy real estate tax-free. With depressed real estate prices, many retirement investors are looking to buy their dream retirement home with retirement funds and then move in tax-free, stated Adam Bergman, a tax attorney wit the IRA Financial Group. Using an Individual 401(k) presents a number of exciting tax planning and investment opportunities, Mr. Bergman added.

Income or gains generated by a 401(k) Plan generate tax-deferred/tax-free profits. Using IRA Financial Groups Individual 401(k) Plan to purchase real estate allows the 401(k) to earn tax-free income/gains and pay taxes at a future date, rather than in the year the investment produces income.

With an Individual 401(k), you can invest tax-free and not have to pay taxes right away or in most cases for many years allowing your retirement funds to grow tax-free. All the income or gains from your real estate deals flow though to your 401(k) account tax-free.

The primary advantage of using an Individual 401(k) to make investments is that all income and gains associated with the Individual 401(k) investment grow tax-deferred. By using an Individual 401(k) plan to make real estate investments, all income and gains generated by the investment property would not be subject to tax, stated Mr. Bergman.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading Individual 401(k) Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate, without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.

John McDuff, an experienced Austin-based business lawyer and tax attorney, has recently promoted long-term legal secretary and accountant, Lynne Rathman. With this promotion, Lynne will advance to drafting lawsuit documents, as well as advising clients on basic legal matters. While previously involved in the production of legal documents, Lynne will now assume more in-depth legal responsibilities.

In her past, Lynne has worked for advanced business firms, operated her own company, and handled several large estates. Rathman’s background in business coupled with her previous work experience has proved to be a worthy resource to clients. After 12 years of employment as a legal secretary, Lynne is certainly prepared to handle her new responsibilities.

Having invaluable experience and tutelage by me over many years, Lynne is ready to assume responsibilities in rendering legal services to our clients, noted McDuff.

About the Law Office of John McDuff

John McDuff is a business lawyer and tax attorney practicing in Austin, Texas. With over 30 years of experience entirely in business and tax law, McDuff offers the knowledge necessary to help business owners and individuals protect their assets throughout the state of Texas. McDuff attended the University of Texas School of Law and established his solo practice upon graduation.

John McDuff, Attorney at Law

100 Congress Avenue, Suite 2100

Austin TX 78701

Defense attorney in Ogden shootout case disbarred
The Utah Supreme Court on Tuesday took the law license of an attorney for Matthew David Stewart, an Ogden man facing the death penalty for allegedly killing a police officer. Attorney Jonathon W. Grimes was disbarred for pocketing a $ 7,070 in a 2005 …
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