If records were kept about such things, Tonda Lynn, a waitress at a pancake house, may have received the largest tip in history when a customer gave her a
lottery ticket that turned out to be worth $10 million. As the U.S. Tax Court put it in a heading in its opinion resolving gift tax issues arising from subsequent
events, suddenly “She’s Got a Ticket to Ride.”
Report from Counsel
Criminal Background Checks On Employees
It is not a new development in employment law that many employers take into account an applicant’s or employee’s criminal history information, including
arrests or convictions, when making employment decisions. Nor is it unprecedented for the federal Equal Employment Opportunity Commission (EEOC) to
come out with policies and guidance on the subject.
LLC Member Personally Liable
The owner of a lot on which a four-unit condo complex was to be built contracted with a small residential construction company to build the condos. The
construction company was formed as a limited liability company (LLC), the only members of which were a licensed home builder and his wife. The licensed
builder served as general contractor on the project, overseeing subcontractors that the LLC had selected.
Umbrella Insurance Policies
As insurance prices continue to rise, many people are looking for more and better insurance coverage for less money, and “umbrella policies” are often a good
option for increasing coverage. Umbrella policies get their name from the coverage they offer: Like an umbrella, they provide expansive coverage for you and
your assets. Umbrella policies act as a kind of backup for your primary insurance and can provide a cost-effective way of increasing your insurance coverage.
Car Safety
What if Your Brakes Fail? Although rare, total brake failure can be a terrifying and perilous experience. As in all emergency situations, remaining calm is the first and most important step. In addition to that: Shift into a lower gear if your car has an automatic transmission. If it has a manual transmission, downshift. Engage … Read more
Confidential Emails: Proceed With Caution
Even the most technology-challenged among us would have to admit that the ease with which we can communicate by e-mail is an improvement over the forms
of correspondence that have preceded it. For most of us, there is no going back to the days before e-mail. This is no less true for communications between
attorneys and clients than it is for other types of communications.
Homebuyer Wins Tax Credit
The federal income tax code provides for a refundable tax credit to a first-time homebuyer of a “principal residence.” In 2008, the year that Joseph took the
plunge and bought his first home, the credit was 10% of the purchase price, up to $7,500. When he claimed the maximum credit on his 2008 tax return, the IRS
came calling to challenge his eligibility for the credit.
Homeowner Loses Flood Insurance
When the owner of a home with a history of seasonal flooding from a nearby creek returned to the home after an extended vacation, he noticed damage to the
home from flooding. Soon after that, he made an insurance claim on a policy administered by an insurance company under the National Flood Insurance Act.
Employee Or Contractor? IRS Offers Amnesty
The Voluntary Classification Settlement Program (VCSP) is a voluntary amnesty program created by the IRS that provides an opportunity for taxpayers to
reclassify their workers as employees for employment tax purposes for future tax periods, with partial relief from federal employment taxes. To participate, the
taxpayer must meet certain eligibility requirements, apply to participate in the VCSP by filing Form 8952, “Application for Voluntary Classification Settlement
Program,” and enter into a closing agreement with the IRS.