California Throws Out Bar to Same-Sex Marriages

Read here. Becomes second state to rule that bans on same-sex marriages violate the state constitution.

Here is the full opinion.

Avvo.com Free Webinar

Avvo.com is hosting a free webinar next week Tuesday, April 29. In the webinar, they are going to explain the benefits for attorneys to use Avvo.com. They are also going to preview some new tools on Avvo.com. Check it out.

6 Cities Busted for Shortening Yellow Light

I was just mentioning this to my family when I last visited. Apparently, Chattanooga, TN, Dallas, TX, Springfield, MO, Lubbock, TX, Nashville, TN, and Union City, CA have all recently gotten busted for shortening the yellow light on the intersections with red light cameras. As a result, they collect more fees.

AP: Feds Probed Max McGee

From the Associated Press:

Hard-partying Green Bay Packers receiver Max McGee, who scored the first touchdown in Super Bowl history, had a gambling habit that the FBI tracked after his career ended, newly released records show.

Agents investigated McGee for about a year, from late 1972 through September 1973, before dropping the case for lack of evidence, according to records released to The Associated Press under the federal Freedom of Information Act.

Information in the late player's file appears to show the FBI thought he was a bookmaker but determined he wasn't. NFL spokesman Greg Aiello said Sunday he did not know about the FBI's probe of McGee.

"I'll be damned," McGee's former teammate and longtime friend Jerry Kramer said when told of the file released to the AP last week. "You know he was betting. Everybody knows that," Kramer said Friday from his home in Boise, Idaho. "I kind of thought it was more of a social thing than serious gambling."

The Tax Lady Roni Deutch Help Clients Owing The IRS Nearly $1 Million Through Streamlined Installment Agreements

In January 2008, Ms. Deutch and her law firm, Roni Lynn Deutch, A Professional Tax Corporation, represented a group of taxpayers that owed in aggregate nearly $1 million to the IRS. On average, each client owed approximately $14,000.00. By negotiating with the IRS, Ms. Deutch and her law firm were able to get these clients on Streamlined Installment Agreements (SIA) averaging only $256.97 per month. Some of the monthly amounts were even as low as $35.00.

SIAs are one of the variations of the IRS Installment Agreement program. With an SIA, clients can find relief quickly. The IRS also does not request extensive financial information to determine the monthly payment amount. It is simply based upon how much you owe. There are, however, some specific requirements taxpayers must meet to qualify. These qualifications include:

• Total tax liability cannot exceed $25,000.00.
• Must completely repay taxes within 60 months, or before the statues of limitations expire.
• Taxpayer must be in compliance with filing all necessary tax returns.
• Taxpayer may be requested to prove that he or she cannot immediately pay the total tax liability

For more information, check out the press release.

Economic Stimulus Package: Clearing Up Any Confusion

Between the current tax season, two different versions of the package, and inaccuracies in the media, not too many people fully understand what is going on with these new “rebate checks.” Roni Deutch Tax Center provides 11 FAQ's about the economic stimulus package and the correct answers.

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Honest, Tax-paying, Potheads - Unite!

From the Tax Lady Blog:

An Oregon man trying to pay his taxes in cash led to the state’s largest marijuana bust in over 10 years after a tax clerk smelt marijuana on the money.

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Flat Tax Generating Big Results in Georgia

Effective January 1, 2005, Georgia (the country, not the U.S. State) adopted a flat tax of 12%, replacing its previous four-bracket system. The flat tax was augmented with a 20% tax on corporate profits, 20% on social insurance (reduced from 33%), and 18% (reduced from 20%) on VAT.

The new, simpler system has had a dramatic effect on economic growth - averaging 10% a year for the past three years - and taxpayer compliance. Tax revenue increased from 14.5% of GDP in 2003 to 22% in 2006, and should reach 24% in 2007. Between 2003 and 2007, the reforms reduced the number of taxes from 22 to 7.

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2007 Federal Tax Law Changes Impacting Small Business

The Small Business and Work Opportunity Tax Act of 2007, signed into law by President Bush in May of this year, features several new, advantageous wrinkles for small business. Here’s a round-up of the key changes for this tax year.

• Section 179—The act offers several new features, but chief among them is the extension of the Section 179 deduction. Based on the act, the maximum amount of qualifying property placed in service in 2007 that businesses can expense increases to $125,000, up $17,000 from 2006. That base rate, indexed for inflation, will remain increased for tax years 2007 through 2010. In addition, the annual investment limit increases $70,000 to $500,000 for 2007, a provision—indexed for inflation—that will remain in place through 2010. (To learn more about all the tax relief provisions contained in the act, see Technical Explanation of the Small Business and Work opportunity Tax of 2007.)
• Work Opportunity Tax Credit (WOTC)—The act expands the benefits of the credit and extends it. It had been set to expire for employees hired after December 31, 2007, and it now runs through August 31, 2011. The new law also broadens the scope of the credit.
• Self-Employment Tax remains level—For 2007, the self-employment tax rate on net earnings stays the same as it was in 2006. The rate breaks down as 15.3% for Social Security (i.e., old-age, survivors and disability insurance) and 2.9% for Medicare (hospital insurance). The one difference in the Self-Employment Tax is that the maximum amount subject to the Social Security part for tax years beginning in 2007 has increased from $94,200 last year to $97,500.
• Social Security tax increases—The maximum amount of wages subject to Social Security tax is up from $94,200 in 2006 to $97,500 in 2007. The tax rate remains level at 7.65% for employers and employees.
• Higher standard mileage rate—The mileage rate increases by 4 cents for 2007 to 48.5 cents per mile. In addition to the mileage allowance, you can deduct parking and toll costs. Starting in 2007, companies can subsidize up to $215 a month of parking, tax-free, for employees, a $10 per month increase from 2006. The cap on tax-free transit pass subsidies increases $5 for 2007, to $110 a month.
• Increased retirement plan contributions—The contribution limit for a 401(k) has been increased by $500 to $15,500 for 2007 (catch-up contributions for those age 50 or older remain the same at $5,000). The cap on SIMPLE IRA contributions increases $500 to $10,500, but the catch-up amount for those 50 or older remains at $2,500 for 2007. The basic maximum Roth IRA and traditional IRA contributions remain unchanged at $4,000, and the catch-up amount for people 50 and older also stays the same at $1,000 in 2007.
• New income tax brackets—Income tax brackets have increased and widened for 2007. For example, in 2006, if you were single and made up to $7,550, you were in the 10% bracket. In 2007, that bracket widens to $7,825. For 2006, the 15% bracket for singles topped out at $$30,650; this year it’s $31,850. The highest tax rate remains unchanged at 35%. To view all the bracket changes, check out 2007 Federal Income Tax Brackets.
• Increased standard deduction—For 2007, the standard deduction increases to $10,700 for those filing jointly (up from $10,300 in 2006); $5,350 for singles, a $200 uptick; and $7,850 for head of household, a $300 increase.
• Increased personal exemption—The personal exemption in 2006 increases by $100 to $3,400, which helps you modestly reduce your taxes for each family member you support.
• Estate tax exemption boost—The exemption for estate taxes is $2 million for tax years 2006 through 2008. In 2009, it increases to $3.5 million. The highest federal estate tax rate was 46% in 2006 and decreases to 45% for tax years 2007 through 2009.

To learn more about the tax changes for 2006 that affect you and your business, consult your accountant, CPA, or tax advisor.

From DHL Small Business.

See Which States Love Small Businesses Best

Entrepreneurs, zip up your parkas and head for the plains! South Dakota once again leads the list of U.S. states with the best tax and regulatory climate for small business, according to the Small Business and Entrepreneurship Council's latest ranking.

Rounding out the top three were Nevada and Wyoming, unchanged from last year. The rest of the top 10 includes Washington, Florida, Michigan, Texas, South Carolina, Virginia and Alabama.

The nation's capital came in dead last once again, preceeded by California and New Jersey.

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Enter To Get Your Federal Tax Return Prepared For Free

WatchMeFranchise.com is now accepting entries for their monthly drawing. Each month one winner will receive a gift certificate for free federal income tax return preparation, valued at $200. Any one can win the contest so enter today!

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Congress May Hang-Up on Private Debt Collectors

The House plans a vote this week on restricting the IRS's Private Debt Collection Program's funds. Representatives critical of the program since it was approved by Congress in 2004 included only $1 million for private debt collection in the 2008 budget for Treasury Department agencies. The IRS had said it would take more than $7 million to run it.



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IRS Announces No Change to IRS interest rates on Past Due Balances

The Internal Revenue Service (IRS) today announced there will be no change in the interest rates for the calendar quarter beginning July 1, 2007. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.



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New Tax Law Changes

On May 25th 2007, President Bush signed into law H.R. 2206 – the "U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007." Among the numerous provisions contained in H.R. 2206 are the "Fair Minimum Wage Act of 2007," and the "Small Business and Work Opportunity Tax Act of 2007."



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Meet the Tax Lady - Roni L. Deutch

In Sunday's Sac Bee, there is a great article talking about Roni Deutch, owner of the law firm I work at. The article also talks about Roni's plans to start up hundreds of Roni Deutch Tax Centers, Tax Preparation companies, in the coming years. Check it out by selecting read more below.

Here is a taste of the article:

Deutch, who said her firm has saved clients millions of dollars over the years, wants to be that guide. Her TV-heavy advertising campaign -- she spent about $4 million on advertising last year, according to Nielsen Monitor-Plus -- and her irrepressible spirit helped her to build one of the country's largest tax resolution law firms, Roni Lynn Deutch, a Professional Tax Corporation.

She made a believer out of 50-year-old Kenneth Cushman, a roofer for nearly 30 years before striking out on his own as a handyman in 2003. The Sacramento resident spends long days crawling on local rooftops to make a living. After becoming self-employed, the self-proclaimed "little guy" ended up owing $20,000 in back taxes to the IRS.

Six months ago, Cushman called Deutch's North Highlands offices to try to find a way out of the hole. At $420 a month for five years, Deutch's attorneys drafted an installment plan with payments reasonable enough to whittle down Cushman's tax debt.

"They kept the IRS off my doorstep, put me in a payment plan," Cushman said by telephone from a tree-trimming job in Citrus Heights. "A lot of little guys get behind. The IRS got real stinky with me. They figure you're poor, you can't afford a lawyer, but once I got Roni, they backed the hell off of me. (Deutch) gave me a way out. They helped me find a way."

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IRS Tax Fraud

Roni has a new featured blog entry - it is about IRS Tax Fraud. Check it out."The IRS claims individuals who willfully and intentionally violate their legal duty of voluntary compliance "pose a serious threat to tax administration and the American economy."



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House GOP plots "blue-slip" attack on Senate Immigration bill

From Roni Deutch:

The Hill reports this morning that conservative Republicans in the House have plans to derail the Senate immigration compromise based on a procedural matter. The bill includes tax policy, which according to the Constitution, has to originate in the House, and some Republicans have lined up to issue a "blue slip" stop to the legislation on that basis.

House conservatives are ready to stop the Senate immigration bill in its tracks with a procedural weapon should the contentious measure win passage in the upper chamber. The procedural weapon House conservatives may hold is a constitutional rule that revenue-related bills must originate in the House. The current Senate immigration measure requires that illegal immigrants pay back taxes before becoming citizens. This requirement opens the door to a House protest, dubbed a “blue slip”. The "blue slip" comes from the color of its paper.

House Republicans used the same back-taxes mandate for a blue-slip threat that derailed last year’s immigration conference. The new Senate bill still must survive two more weeks of voter scrutiny and contentious amendments, but several conservatives already are lying in wait for the Senate to “make the same mistake twice,” as one House GOP aide put it.

“If we get an opportunity to do it, believe me, we’ll do it,” the aide said. “I think it’s going to be a matter of who will get there first. A number of people in the House are dying to be fingered as the person who killed [the Senate bill].”

During a blogger conference call with Senator John McCain, one of the bill's architects, the conservative blogger, Captain Ed of Captain's Quarters, mentioned a Boston Globe story that reported the removal of a requirement to pay back taxes before entering either the Z-visa or Y-visa program. The White House reportedly requested that section be removed, and the blogger asked the Senator why illegal immigrants would get a pass on paying back taxes when American citizens don't get that privilege.

Senator McCain hadn't heard about the removal of the requirement. “I’d not heard that proposal on the part of the president,” McCain said, according to a transcript of the call. “I would resist that.” In fact, Senator McCain went back and reinstated the provision after the blogger conference call.

Inadvertently, Senator McCain may have provided an "out" for House Republicans to at least delay the bill's consideration. While any Representative can blue-slip a revenue-producing bill from the Senate, it takes a majority to enforce it. Given the heat from both sides of this debate, that may not be difficult to arrange, and it would require the Senate negotiators to start from Square One.“We would certainly have the right [to a blue slip] and could exercise it,” another House GOP aide said.

Via Captain's Quarters.



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RIAA Successfully Counter-sued

In RIAA copyright infringement case Lava v. Amurao, the defendant has successfully raised an interesting legal theory of copyright misuse. Judge Charles L. Brieant rejected RIAA's motion to dismiss this charge.

The copyright misuse counterclaim states that the plaintiffs should lose their copyrights in the songs that form the basis for their suit on the following grounds:

"they are competitors in the business of recorded music.....[and] are a cartel acting collusively in violation of the antitrust laws and public policy, by litigating and settling all cases similar to this one together, and by entering into an unlawful agreement among themselves to prosecute and to dispose of all cases in an identical manner and through common lawyers..... Such actions represent an attempt....to secure for themselves rights far exceeding those provided by copyright laws......Such acts constitute misuse of copyrights, and lead to a forfeiture of the exclusive rights.....".



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Man arrested, cuffed for using $2 bills at Best Buy

A man trying to pay a fee using $2 bills was arrested, handcuffed and taken to jail after clerks at a Best Buy store questioned the currency's legitimacy and called police.

According to an account in the Baltimore Sun, 57-year-old Mike Bolesta was shocked to find himself taken to the Baltimore County lockup in Cockeysville, Md., where he was handcuffed to a pole for three hours while the U.S. Secret Service was called to weigh in on the case.

Secret Service agent Leigh Turner eventually arrived and declared the bills legitimate.



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Hmm... Probably Not Too Smart

In a bankruptcy case in the Southern District of Florida, William P. Smith -- a partner at McDermott Will & Emery (Chicago), and the head of its bankruptcy department -- actually said the following in response to a judge's ruling:

"I suggest to you with respect, your honor, that you're a few French Fries short of a Happy Meal in terms of what is likely to take place."

Literally.

In open court.

Amazing.