WHAT’S NEW FOR NJ INCOME TAXES FOR 2012

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The2012 NJ state income tax forms and instructions are now available at the NJ Divisionof Taxation website.
Thebig change for the 2012 NJ-1040 is the new “Alternative Business Calculation Adjustment”.
Beginningwith 2012, taxpayers who have losses in the categories of -
·     netprofits from business,·     netgains or net income from rents, royalties, patents, and copyrights,·     distributiveshare of partnership income, and ·     netpro rata share of S corporation income -    can use the losses to calculate anadjustment to their taxable income (“Alternative Business CalculationAdjustment”). 
Thepercentage used to calculate the adjustment is being phased in over five years.The percentage will increase from 10 percent for tax year 2012Taxpayers cancarry forward unused losses in those categories for a period of 20 years tocalculate future adjustments. 
Taxpayerswith income and/or losses in any of these categories must complete two newreturn schedules: Schedule NJ-BUS-1 (Business Income Summary Schedule), andSchedule NJ-BUS-2 (Alternative Business Calculation Adjustment) to calculatethe amount of their adjustment or loss carryforward.
Anew Line 34 has been added to Page 2 of the NJ-1040 to enter the AlternativeBusiness Calculation Adjustment.
Ilook forward to the January 2013 NJ-NATP “Famous State Tax Seminar” to learnhow this new adjustment will work.
Theonly other changes to the NJ-1040 are –
·     Anew worksheet has been developed (Worksheet G, Use Tax Calculation) to make iteasier for New Jersey residents to determine the amount to report on Line 45,Use Tax Due on Internet, Mail-Order, or Other Out-of-State Purchases.
·     Anew oval has been added below the signature line that must be filled in if acopy of a deceased taxpayer’s death certificate is enclosed with the return.This oval should be filled in and a copy of the death certificate enclosed onlyif there is a refund due and the check needs to be issued to the decedent’ssurviving spouse/civil union partner or estate.
·     Threenew funds have been added to the list of organizations to which taxpayers cancontribute on the New Jersey tax return – the Boys and Girls Clubs in NewJersey Fund, the NJ National Guard State Family Readiness Council Fund, and theAmerican Red Cross-NJ Fund.
Other than that the 2012 NJ-1040 isno different than the NJ-1040 of past years.
FYI - For 2012, the maximum employeeunemployment insurance/workforce development partnership fund/supplementalworkforce fund contribution (SUI) was $128.78, the maximum employee disabilityinsurance contribution (SDI) was $60.60, and the maximum employee family leaveinsurance contribution (FLI) was $24.24.
Iwas pleased to find that it appears there is no longer an income limitation forsubmitting a NJ-1040 online via the NJWebFile system.  I should be able to submit the 2012 NJ-1040for taxpayers with NJ Gross Incomes over $150,000 this way.
TTFN

2012 – THE YEAR IN TAXES

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It is timefor my annual tax year in review post.Thetax filing season went relatively smoothly. Due to the idiots in Congress’ inability to think or act there wasnothing new in actual tax law – what is taxable and what is deductible – and nounnecessary processing delays for 2011 returns (except for early returns filedelectronically – which did not affect me). The expiring Bush Tax cuts, the usual extenders, and BO’s AmericanOpportunity Credit had all been extended through at least the end of 2011 in arelatively timely manner.  
Ihad been concerned before the season officially began (for me February 1st)that the major tax forms (1040, 1040A, Schedules A + B) were no longeravailable at local Post Offices – but soon discovered that the forms were nowavailable (although in a bit less “bulk) at local libraries.  As a pleasant surprise I found that, whilethe libraries did not have NJ-1040 forms, they did have New York IT-201s andIT-203s!
Themajor issue of this tax season involved the new requirements for cost basisreporting, and the resulting new Form 8949 and the revised Schedule D.  For tax year 2011 brokers were required toreport to client taxpayers, and to the IRS, the cost basis of most stocks,including foreign stocks, acquired on or after January 1, 2011 (“covered”securities) on Form 1099-B.
TheForm 8949 was used to report the individual short-term and long-termtransactions in three separate categories – sales where the cost basis wasreported to the IRS on Form 1099-B, sales where the cost basis was not reportedto the IRS on Form 1099-B, and sales that were not reported on a Form1099-B.  A separate Form 8949 wasrequired for each of the three categories. The Schedule D served as a summary of the 8949s.
Thevarious brokerage and mutual fund houses all responded to the new reportingrequirements differently, some excellently and a few poorly.  This new system required some additionaltime, but only a few cases generated additional agita. 
Thealso new requirement of credit and debit card merchants and third-party payerslike PayPal to report transactions to the IRS, and to the recipient, turnedout, despite initial concerns, to be a non-issue, as taxpayers did not have toseparately report this income on 2011 Schedules C, E, F and entity returns.
Theonly other major reporting change was in the format of Page 1 of the Schedule E(rental and royalty income and deductions). This was a PITA at first (I really saw no need for the revisions), but Isoon got used to it.
Therewere no major problems within my own practice during the season.  My new, faster, laptop, its cable access, andmy copy machine ran smoothly throughout the 2½ months.  The printer, while deciding it would onlyprint colored pages in pink, and the black printing being less than perfect,did not slow down operations.  There wereno issues with my car or any personal concerns to distract and take time awayfrom the job at hand.  And there were noindividual client issues.
TheInternal Revenue Service lost two of the major architects of the current taxreturn preparer regime in 2012 via resignation. David R. Williams, first head of the Return Preparer Office, resigned atthe end of August, replaced by Carol A. Campbell.  And Commissioner Doug Shulman stepped down onNovember 9^th.  IRS Deputy Commissionerfor Services and Enforcement Steven Miller, a 25-year veteran of the agency,took over as Acting Commissioner
Davidwill certainly be missed.  While he and Idisagreed on some of the details of the regulation regime, specificallyexempting CPAs, attorneys, and “supervised employees” from the samerequirements as other PTIN-holders and a grandfathering exemption from the testfor experienced preparers, he did a good job as the face of tax pro regulation.
2012was the first year that non-exempt PTIN-holders were required to take at least15 hours of CPE in federal taxation, including 3 hours of updates and 2 hoursof ethics.  As David predicted, many newCPE providers jumped on the bandwagon.  Anumber of tax preparer “quasi-membership” organizations sprang up during theyear, most of them solely for the purpose of promoting for-profit companies’CPE classes.  My email in-box has beenchock-a-block with CPE offerings for the past few months.  I had considered becoming a CPE provider, butdecided against it for now.
Ihave always taken more than the required 15 credits each year, most, if notall, being classes offered by the National Association of TaxProfessionals.  2012 was no different – Iended the year with 24 credits of federal CPE (and 8 more of state tax CPE).
Theconstitutionality of “Obamacare” had been in question since its passage.  In June of this year the Supreme Court upheldthe law. The Supreme Court’s decision, combined with President Obama’s re-election,ensured that Obamacare is here to stay, at least for a while, and its tax hikeswill kick in next year.
Thebiggest tax story for 2012, once again (the 3^rd year in a row thishas been the biggest tax story!), was the continued inability of the idiots inCongress to accomplish anything.  Thepopular package of “extenders”, including the temporary AMT patch, expired onDecember 31, 2011, and the various Bush and Obama tax cuts and benefits arescheduled to expire on December 31, 2012. As of this writing nothing has been done by the idiots in Washington toextend anything.  The result - the startof the upcoming tax filing season, and the processing of refunds, will bedelayed, and the country faces what has been called “Taxmagedden” on January 1,2013, as it tumbles over the “fiscal cliff”.  
Havingdone nothing all year, the idiots shouldhave just extended everything expired and expiring through 2013 (similar towhat they did in 2011) after the election and begin 2013 with serious work onserious tax reform.  At the very leastthey should have extended the AMT patch through the end of 2012.  But then again – they are idiots!
Overthe past years the members of Congress have proven that they are incompetentand ineffective dolts with no concern for the American public, and areincapable of compromise or of independent thought.  The current Congress has one of the lowestapproval ratings in history, although despite this fact most incumbents who ranin November were re-elected.  As I saidearlier, I guess the thinking was the incompetent idiot you know is better thanthe incompetent idiot you don’t.   
And, according to the NBC report “Congressto Make History -- But for the Wrong Reason” (highlight is mine) -
“By passing just 196 bills into law so far, it is in the running to become the least productive Congress since the1940s.
In fact, that amount is 710 fewer public laws than was producedby the 80th Congress (from 1947-48), which first earned the moniker‘Do-Nothing’ Congress.”
Christopher Bergin of THETAX ANALYSTS BLOG read the minds of the idiots in Congress and quoted theirChristmas message to America in his recent post “Tin Ear Tinhorns” –
“MerryChristmas from Washington, D.C. Here’s your bag of coal.
It’schilly here in Washington. We don’t care how it is where you are. We don’t careabout your 401k plan. We don’t care about whether you have to pay theAlternative Minimum Tax for this year. We don’t care if you don’t get your taxrefund on time or if you have to wait to file your tax return until July. Wejust don’t care.
InWashington, all we see is ourselves. We drive around in our self-importanthaze, yapping on our cell phones and cutting people off on I-66 because what weare doing is all that matters and is certainly more important than anythingyou’re doing.”
The 2011 Tax Offender ofthe Year Award, presented each year by Russ Fox of TAXABLE TALK, wasCongress.  The criteria for the award – “it really needs to be a Bozo-like action oractions”.  Chances are very good thatthe idiots in Congress will be the recipient of this designation again for2012.
There is nothing toindicate that the new Congress to be seated in January of 2013 will be any lessincompetent or ineffective, or will have any more concern for the Americanpublic, than the current, retiring one.
And let us not forget that 2012 wasa Presidential election year – which only further motivated the inaction of theidiots in Congress.  While the two-yearcampaign did highlight the need for tax reform, the result was a blow to thehopes for a substantive rewriting of the Code. BO’s tax plank called for more complexity and confusion and continuedmisuse of the Code.  
Atthe end of my 2011 tax year in review post I predicted –
“As2012 is an election year it is expected that nothing of any consequence will beaccomplished in the tax arena (or any other arena).  Next February the idiots in Congress willprobably extend the payroll tax cut for the rest of the year, and, as Isuggested above, next December they will pass the usual year-end extenders billand also continue the ‘Bush’ tax cuts for another year or two.”
I was almost 100% on the money,except for the idiots extending everything in December. 
Let us hope that 2013 will see thepassage of real tax reform – although I won’t hold my breath!
So, as I ask each year at the end ofthe post, did I forget anything?
TTFN

I'm married to a US Citizen -- What Happens Next?

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Marriage is a wonderful thing -- but how does it effect immigration law? Legal status? LPR (legal permanent resident or lawful permanent resident) and work status (EAD -- employment authorization documentation)?

It is important to remember that immigration is roughly divided into to sections -- innies and outties. Alright, perhaps the simplistic description is misplaced here, but the concept is the same. Are you inside the country, or outside the country? If you are outside the country, the process is I129F, I130, K3 (spouse). If you are inside the country, the process is I130, I485, and if illegal, I601 (waiver/hardship -- tricky here, as there are proposed rules changes with the 601/601A).

What are all these "I" forms, and what do they do?

First, "I" stands for "Immigration" and designates a type of government form related to USCIS (United States Customs and Immigration Service). You will occasionally also see EOIR forms (Executive Office of Immigration Review -- that's the immigration court), and DHS (Department of Homeland Security) or DS (Department of State) forms. However, for today's discussion, we're only focusing on "I" forms.

The I130 is arguably the most important form of the "spousal" immigration group. It notifies USCIS that a US citizen or LPR (green-card holder)has a family member (in this case, his/her spouse) that is eligible for entry into the US. By itself, the I130 does nothing. However, without the document, nothing else can be done to convert a non-immigrant status to an immigrant (i.e. wants to stay permanently) status.

An I129F is filed to request that a foreign national, currently outside of the United States, be granted a "K" visa. K visas permit finances (K1), family members (K2), and spouses (K3) entry into the United States for a set duration (in the case of a K3, the amount of time is 2 years, and includes permission to file an I765 once in the country to permit work). An actual "K" visa is not a form. It is a stamp/processing placed inside the foreign national's passport indicate the type of entry permitted. The form required is the I129F (F = Fiance, however, it is used for K2/K3 visas, also) filed by the US citizen/LPR. Once approved by USCIS, it is forwarded to the consulate in the area where the fiance/family member/spouse resides, and the fiance/family member/spouse can then contact the consulate to setup and interview and background check. Once they complete the interview and background check, the family member/fiance/spouse's passport is stamped, and they may enter the US under the immigrant visa classification "K".

Next blog will discuss the "in country" (innies!) processing of family members/fiances/spouses.

Have an immigration law question? Ask us! This is something we do everyday. From simple phone discussions to complex immigration court litigation. We're here to help -- and your first call is always free.

Sean R. Hanover, Esq
HanoverLawPC.com
Contact UsVisit the Hanover Law firm at www.hanoverlawpc.com

A Curious Trial: U Visas, Rape, M-A-M hearing, and CAT relief

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I was recently faced with a very difficult trial. A client of mine was suffering from torture and rape in prison, and the trial to have him released had been 10 months in the making. Additionally, I was barred from seeking Federal relief because the agency that held him was neither the state, nor even a prison -- rather it was a Federal Agency: ICE. Getting reports from that agency on anything is like pulling teeth.

After a grueling 5 hour trial, I managed to secure CAT relief for my client. In a different discussion forum, I mentioned different avenues for presenting the prison rape problem. Investigations were still underway when we went to trial on the 10th of December, 2012.

I decided to write up a motion with attendant supporting documentation showing the abuse, the investigation, and various responses from state and federal agencies. Instead of serving it in open court, I discussed it with the DHS attorney before court. To say the DHS attorney was surprised would be an understatement! She scurried off upstairs, as DHS did not know what was going on with the client and ICE had put nothing into the file. Nice.

When the judge came in, I explained the situation to him. He then took the motion packet and a stack of law books and reviewed it all in his office.

The tactic I decided on was not presentation on the record, per se – rather a soft demonstration prior to commencing operations. Gave everyone time to review and help come up with a solution. Very collaborative. I got one hell of a payback for that at the beginning of the trial, but at least at this point, my “sandbagging” the court and DHS was received with only a modest amount of grumbling. I will tell you, though, that I came prepared. The motion was properly formatted, and even hole-punched at the top! (I forget that all the time on emergency motions). I digress.

The awesome aspect of this was the ability to discuss with the judge and DHS counsel the prison conditions and rape (including medical problems, and document theft/protection money payments being required from my client) prior to any hearing on my CAT claim.

The judge proceeded with the trial, but it was obvious that he wanted to find some relief for my client just to get the guy out of prison (he had been detained by ICE for 10 months).

DHS had it’s own unexpected whammy. After the trial started, we immediately went into a M-A-M hearing – which I was entirely unprepared for. I was not even clear if I should be arguing my client was competent to stand trial (he had a couple of “not-guilty” findings due to insanity defense) or if I should try to ditch the case on grounds he could never comprehend the criminal nature of his conduct. That was a tad awkward. As a foot note – for those of you who have not done M-A-M hearings, these are generally fairly straight forward question/answer sessions based on medical reports and other corroborating evidence that speaks to your clients mental capacity. As a rule of thumb, a client represented by an attorney, and who can answer questions about the nature of the NTA, allegations, and why he/she is present at the trial, will be found competent to move forward. If the client is not found competent, the court has leave to suspend the hearing until competency can be established, appoint a guardian, or even remove the case and terminate proceedings. In the instant case, it was strange because I did not know how to argue it – especially given the prison rape, the psych background, and the need to get my client out ASAP. I hate not being prepared. For those who take the class on 18 Dec – you will have that hammered into you quite well.

Regardless, the judge found the client competent to stand trial and we had very interesting trial for many hours on homosexuals and transgenders in Venezuela.

It was a great hearing – but the take away is the tactic for handling prison situations prior to an IC wholly unrelated to the matter.

Call us today to discuss your case. WE CAN HELP. However, the longer you wait, the riskier it becomes when you are finally brought before an immigration judge.

S

Sean R. Hanover, Esq
HanoverLawPC.com
Contact UsVisit the Hanover Law firm at www.hanoverlawpc.com

IRS -- Stopping Collections and the awesome 433A (or 433F) form

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Ho Ho Ho! It's getting right around the end of the year now, and that means the dreaded specter of taxes! Everyone is ready, right!? Well, perhaps. But if you are like many of our clients, you're more worried about the past than the future. Past IRS tax debt can be a monster. In this article, I'll discuss one tool in the arsenal of tax attorneys -- the 433! IRS form 433 is a collections information form, and completing it, along with substantiating documentation, is the first step to getting things "right" with the IRS. So..what exactly is this IRS 433 form? Glad you asked!

In the days of yore, the IRS was little interested in whether you had money or not. If you did not pay your taxes, the Service would just "swoop" in and take everything. Furniture, cats, small children -- all your money, bank accounts, etc. There was extremely little they would not touch, and absolutely no mercy. If you did not pay your taxes, you were considered a fraud, and very little effort was given to relieving any of that outstanding tax burden.

Then beginning in the 1980's, and through recent times, the IRS began taking a different tactic. The idea was that if the IRS helped the taxpayer meet his/her obligations the Service would (a) look a lot nicer, (b) get a lot more money, (c) encourage folks to tell the truth. From this nascent set of ideas, came the wonderful form 433.

IRS Form 433 (see http://www.irs.gov/pub/irs-pdf/f433a.pdf) gives the IRS all the information about your income and assets, as well as your debts and obligations. Finding directions for completing this form is almost impossible. In point of fact, there are several different versions of the 433 abounding. Two of the most common for individual taxpayers are:

1. 433A -- the full enchilada. This unabridged document contains every conceivable income/asset/debt/obligation category the IRS can imagine. It is detailed, cumbersome, and rather depressing.

2. 433F -- this is the summary form of the 433A. Much easier to complete -- only two pages. Completing the 433F first makes completing the 433A much easier. In our firm, we have clients complete the summary form and then we complete the 433A, asking additional clarifying questions as needed.

The 433B is for businesses and is rarely used.

Once completed, the 433 is submitted to the auditor handling the case. If there is no auditor assigned, the attorney on the case contacts the local field office and arranges for an appointment. The taxpayer does NOT need to be there for this meeting.

It is critically important that you provide all substantiating documentation for income and expenses.

Typically, substantiating documentation includes copies of W-2 forms, pay stubs, bank records, lease agreements, titles to vehicles and property, copies of loans and investments paperwork, and any other entry on the 433 income/expense summary page.

THERE IS NO EXCEPTION TO THIS. IF YOU DO NOT HAVE THE DOCUMENTATION -- EITHER GET IT, OR YOU WILL NOT BE PERMITTED TO CLAIM THE EXPENSE, ETC.

At the meeting with the auditor, your attorney will review all the numbers and provide all supporting documentation. The idea is to figure out how much you will be able to afford to pay -- negotiate on monthly payment amounts. Note -- the withholding amount you claim on your paycheck is important here. The IRS WILL review this number when working with you at this auditor meeting. If the number is whacky wrong (i.e. you are withholding 10 and you are actually single without any reason to have anything more than 1), it will hurt you badly. Do NOT go to this meeting with a bogus withholding number.

If your income does not support paying any past taxes, you will be entitled to be placed in "uncollectable" status. This means that while liens may be placed against your property, the IRS will not garnish your wages or take anything from you. Note -- this is a two edged sword. It does not relieve you of tax liability. It does not remove your previous tax debt. It merely means the IRS will not seek to collect from you. Interest will continue to accrue. For some folks, however, the 433 and the audit represent the best method for not losing over 60% of their income to tax garnishments

Two points to remember here: 1. This is complicated form that has to be completed properly -- an attorney is best for this, and 2. The taxpayer meeting with the IRS is never a good thing (handling the audit him/herself) -- the IRS auditor cannot make the same negotiated deals he/she could with your attorney. You need a representative for this purpose.

If you have questions or need help addressing a tax law question, please do not hesitate to contact us! We are experienced immigration, tax, and bankruptcy attorneys who can help with questions from any state in the US. S

Sean R. Hanover, Esq
HanoverLawPC.com
Contact Us Visit the Hanover Law firm at www.hanoverlawpc.com

President Obama's Health Care plan and some different ways to comply!

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The IRS expanded and revised optional safe harbors on which applicable large employers may rely in complying with requirements starting in 2014 to provide health insurance coverage to their full-time employees.

The safe harbors provide methods of determining the full-time status of seasonal employees and those with unpredictable work schedules for purposes of the “shared responsibility” requirements.
Generally, for months beginning after Dec. 31, 2013, the law requires employers with at least 50 full-time employees on average during the preceding calendar year to sponsor and offer full-time employees and their dependents health coverage meeting certain requirements or else pay an assessment. [I wonder if this going to put a premium on single workers over marriied workers because a single policy is less than a family policy] The law defines full time as working on average at least 30 hours per week, but Congress left it to the IRS, along with the U.S. Department of Labor, to prescribe how that average is computed and applied.
A lookback “measurement period” safe harbor for averaging hours of ongoing employees and a “stability period” to which the average applies. For new hires an initial measurement period of between three and six months for workers with variable or uncertain hours.

The IRS expanded the measurement period for new variable-hour and seasonal employees to the same as for ongoing employees, between three and 12 months. The stability period must be at least as long as the initial measurement period and no less than six months.  The measurement and administrative periods combined must not extend beyond the last day of the first calendar month that begins on or after the first anniversary of the employee’s start date.

 

2012 Year End Tax Tips for Small Businesses

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I. Invest now.
In 2012 the bonus depreciation allowed a business to take an immediate deduction for 50% of purchased or leased qualified assets, such as machinery and off-the-shelf software. In 2013 the bonus depreciation goes away. So if you bought a new trailer truck for $100,000 in 2012, you could deduct $50,000 of the cost. If you get it into service after December 31, 2012, sorry, no bonus-depreciation deduction.

In addition, for the past several years the increase in the Section 179 limits (which allow a 100% deduction as opposed to the 50% bonus) has allowed for the immediate expensing of qualifying personal property. For 2012 the deduction limit is $139,000. In 2013 the annual deduction limit is scheduled to be reduced to $25,000. Section 179 can be taken for used property, whereas the bonus depreciation has to be new. (Although some states do not follow Section 179 rules, many do.)

 II. Hire that vet now.
In 2011 the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit were signed into law. Employers who hired veterans could receive tax credits for each veteran ranging from $2,400 up to a maximum of $9,600, depending on a variety of criteria. That’s going away.

 III. Give that gift now.
This year the gift-tax exemption was $5.12 million. On January 1, 2013, it goes back to $1 million.

If you own an S corporation (in which the company’s earnings are taxed at the individual, not corporate level) worth $10 million and you want to give 20% to your kid (for example), a gift of $2 million, then do so now. If you wait until after the first of the year, anything over $1 million will be taxed at a gift rate as high as 55%.
IV. 4. Pay those dividends now.
For 2013, qualified dividends will be taxed as ordinary income, which could increase the rate from 15% to as much as 43.4% (including the new 3.8% Medicare tax).

V. 5. Accelerate revenue recognition now.
Currently taxed at 15%, the capital-gains rate is scheduled to increase to 20%, and may also be subject to the additional 3.8% Medicare tax.


Remember: This is the year of uncertainty. As Carlson says, “This could all be irrelevant. Congress could decide to extend all the [Bush] tax cuts for next year.”

Appeals Court Rejects Golfer's Suit

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A golfer who lost an eye sued after being struck by an errant shot.  the New York State Court of Appeals says not yelling "fore" wasn't reckless act.  The highest court in New York held: "Here, Kapoor's failure to warn of his intent to strike the ball did not amount to intentional or reckless conduct, and did not unreasonably increase the risks inherent in golf to which Anand consented. Rather, the manner in which Anand was injured -- being hit without warning by a "shanked" shot while one searches for one's own ball -- reflects a commonly appreciated risk of golf" 

To read the entire opinion (it is very short) click on: Azad Anand, et al., Appellants, v. Anoop Kapoor.    

The bottom-line for the Court was that there are certain inherent risks when one chooses to participate in a sporting activity and by that participation consents to these risks.   Absent a finding of reckless or intentional conduct on the part of the defendant there can be no liability.

Sometimes bad things happen to good people and there is no one to blame. 

New York Mechanic's Lien

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This is a quickreference guide for common questions that come up regarding mechanic's liens inNew York. For specific inquiries please feel free to contact one of the attorneys in our offices. 

1.  Who Can File A Mechanic's Lien?

In general, anyone performing labor or furnishing materials for the improvementof real property may file a mechanic's lien when the labor or materials wererequested by the owner or its agent. It should go without saying that the liencan only be filed if money is owed. Some typical lienors are contractors,subcontractors, suppliers, architects, engineers and in some cases constructionmanagers.

2.  How Long Do I Have To File A Lien?

A lien filed against a residential single family private dwelling must be filedwithin four months of the last performance of labor or furnishment ofmaterials. A lien filed against any other private property must be filed withineight months after the completion of the contract, or the final performance ofthe work, or the final furnishing of the materials.

3.  How Long Does My Mechanic's Lien Last?

The lien is valid for one year. After that you must take steps to extend thelien. If not extended or foreclosed upon, the lien will expire by operation oflaw.

4.  How Do I Foreclose on a Mechanic's Lien?

Foreclosing on a mechanic's lien is a fairly complicated process that involvesfiling a formal lawsuit. There are specific people that must be included in thelawsuit and other specific requirements that justify retaining an attorney tohandle the foreclosure.

5.  What Do I Do If I Am Served With A Mechanic's Lien?

You have three options: 1) bond the lien; 2) commence legal proceedings todischarge the lien; or 3) do nothing (not recommend under most circumstances).For bonding the lien or attempting to discharge the lien through the courtsystems it is strongly recommended that you consult with an attorney.

6.  What Happens If I File A Lien That Is Not Accurate?

This is really a two part problem. First of all, a lien that is defective onits face (meaning in the actual terms set forth in the lien) can be summarilydischarged and will not protect you. Second, filing an improper lien can exposeyou to liability, especially in the case of a "willfully exaggeratedlien" where you are subject to treble damages and attorneys’ fees beingawarded against you.

Introduction to Special Needs Estate Planning - Part I

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SpecialNeeds Estate Planning focuses on the need to provide for the special needs ofour loved ones with disabilities when we are no longer there to organize andadvocate on their behalf.  It isessential that we start planning now for the coordination of the legal,financial, and care components that will provide for the maintenance of thequality of life and dignity of the beneficiary of the plan.
Itis all about maximizing opportunities and minimizing risks.
Thefour strategic steps we work through in our practice are:
PLANNING- DRAFTING - FUNDING - ADMINISTRATION
Planning- It is important to consider carefully all the factors that affect theindividual situation.  It is critical totake the time to design a complete plan that takes into account thebeneficiary's unique circumstances, and that fully explores all the optionsavailable to address his/her special needs. This advance planning could include a professional financial assessment,a public benefits profile, a distribution plan and the exploring of housingoptions.
Planningthe future of a child or adult with a disability is an enormous challenge. Itrequires specialized planning and where possible it is wise to incorporate thehelp of professionals such as financial planners or accountants, publicbenefits technicians, care coordinators, and yes, attorneys who specialize inthis area.  It is investing in drawing upthe plans for the house before we start building.  Remember the old adage, pay a little now(prevention), or pay a lot later (cure).
Drafting- Finding a competent attorney to put together the right documents.  This can be difficult, as many are enteringthe field, but are not familiar with trust law, and public benefit ordisability issues.
Funding- A great plan that is has no funds available is useless.  It is important to determine accurately thefinancial need balanced against current resources.  Initiating the right strategies now can helpto accumulate and preserve funds over the grantor's lifetime.
Administration- This is arguably the most critical step as its 90% of the plan.  This covers the execution of the plan.  The key to successful administration is thedistribution plan set out in the Special Needs Trust.  The distribution plan is critical to gettingthe right people in place with the necessary funds to execute the care planwhen you are no longer around to oversee caregivers and hold them accountable.

InPart II, we will discuss some of the important documentation you will need tocollect when accomplishing Special Needs Estate Planning.
InPart III we will present the basics of "Trusts" including what is atrust, and the types of trusts to be considered in your planning.
PartIV will talk about the qualifications and experience of the experts you partnerwith to complete this process.
PartV will be a primer on selecting a trustee to manage your plan.
PartVI lays out a road-map for completing a basic plan.
PartVII will discuss the elements of a complete plan.
Asalways, feel free to contact our offices at (585) 235-0980 to discuss anyquestions or comments.  Also, visit ourwebsite at www.CiminelliLaw.com

DAMNED IF THEY DO AND DAMNED IF THEY DON'T

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Itis December already and there is no progress in Washington on “taxmegeddon”.
If(or more likely when) BO and the idiots in Congress fail to act on the “fiscalcliff” issues before the end of 2012, what is the IRS going to do regardingwithholding tables for 2013?
Ifthe Service follows “current” law, federal income tax withholding will substantiallyincrease for many, if not most, employees, as the so-called “Bush tax cuts”will have expired on December 31, 2012, and everything will go back to pre-Bushrules.  If the idiots in Washingtoneventually pass retroactive extensions of the expiring breaks, the IRS willneed to revise the withholding tables, as will software companies, andwithholding will be totally FU-ed for an extended period of time, resulting inlower pay checks for almost all employees for a couple of months.
Ifthe Service assumes the idiots in Washington will eventually pass retroactiveextensions and does not change the federal withholding tables, keeping everythingthe same as 2012 or with some inflation adjustments, and the idiots inWashington do nothing, the IRS will need to revise the withholding tables, aswill software companies, and withholding will be totally FU-ed for an extendedperiod of time, resulting in many employees being under-withheld for the yearand owing tax when filing their 2013 returns.
Unfortunatelyit is we taxpayers, not the IRS or the idiots in Washington, who may be damnedif they do and damned if they don’t.
Wemust hope that whatever assumption the IRS uses to determine federal income taxwithholding effective January 1, 2013 turns out to be correct. 
TTFN 

WHAT FOOLS THESE POLITICIANS BE!

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Anonline article at NATIONAL JOURNAL dated Saturday told us, “Week five of the fiscal-cliff negotiationscame and went without any resolution”.
Todayis December 17^th.  The monthof December is more than half over. There are only two weeks left in the year.  And theidiots in Washington have not done a damned thing to avoid the serious problemsthat will result from the expired and expiring tax laws and the other issuesinvolved with the so-called “fiscal cliff”!
Ihave nothing but the utmost contempt for the idiots in Congress.  Thereis no legitimate excuse for their incompetence, inaction, and total disregardfor the American public.  Thesearseholes take our money, in the form of inflated paychecks and extensiveentitlements, and bitch and moan and bicker and blame and basically doabsolutely nothing but play with their private parts. 
Thelyrics from the musical 1776 echo in my ears – “Piddle, twiddle, and resolve. Not one damned thing do we {they}solve!”
Boththe Democrats and the Republicans, and their leaders (pictured above), areequally incompetent and equally to blame. 
Wehad the opportunity to throw many of the bums out this past November, but we(not me; my actions in the election booth, or rather in my case on the electiontable, reflected the concept of GRIP – Get Rid of Incumbent Politicians)re-elected most of them.  I suppose thethinking was the devil (incompetent idiot) we know is better than the devil(incompetent idiot) we don’t know.
Wehave all along assumed that these fools would eventually at least temporarily extend most of the already expired“extenders”, most important of which is the AMT patch, and the expiring “Bush”and other tax cuts for at least all but perhaps the “richest” taxpayers.  Well eventuallyis here!  
Whatwill happen if nothing is done?  The taxfiling season will not be able to start for most filers until March of 2013,seriously delaying refunds.  Thewithholding tables for 2013 will either be too little or too much, resulting ineither underwithholding or seriously reduced pay checks.  The federal income tax liability of justabout every American taxpayer will increase by potentially thousands of dollars(for the average middle class taxpayer too, and not just the “wealthy”).  And that is only the beginning.  Even if the problem is temporarily fixedretroactively in 2013 there will be delays, possible withholding FUs, and otherconsequences. 
Inshort, it will definitely not be a happy New Year!
Whatmore can I say? 
TTFN