If you are unemployed and would like to help rebuild New Jersey, this opportunity may be for you. New Jersey Department of Labor and Workforce Development will be providing temporary jobs to unemployed residents through local government agencies involved in restoring public land and infrastructure. This plan essentially kills two birds with one stone; helping to rebuild New Jersey while putting much needed money into the pockets of out-of-work residents. Interested job seekers should report to local One-Stop Career Centers. They may also send e-mails to sandyhelp@dol.state.nj.us, log onto JobsforJersey, or call 1-877-682-6238.
IRS Offers Relief to Victims of Hurricane Sandy
In the aftermath of Hurricane Sandy, the IRS have taken action to aid those affected by the storm. It has postponed various tax filing and payment deadlines that occurred starting in late October to February 1, 2013. These include:
- Fourth quarter individual estimated tax payment
- Payroll and excise tax returns
- Tax-exempt organizations required to file Form 990 with a deadline between October 31, 2012 and January 31, 2013
In addition, the IRS is waiving failure-to-deposit penalties for federal payroll and excise tax deposits normally due on or after the disaster area start date. Taxpayers now have until November 26, 2012 to remit and avoid penalties.
Thus far, IRS filing and payment relief applies to Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, Somerset, and Union counties in New Jersey. To view included counties in New York and Connecticut or for more information click here: IRS Tax Relief for NJ, NY & CT Hurricane Sandy Victims
Swiss Banks Looking to Drop American Customers
If you’re an American citizen and own a Swiss bank account, there’s a good chance you’ll be receiving a letter from the Swiss bank politely asking you to take your business elsewhere. A pending U.S. regulation, known as the Foreign Account Tax Compliance Act, or Fatca, requires foreign banks to identify Americans among their clients and to provide their financial information to the Internal Revenue Service. A devastating penalty equivalent to 30% of a bank’s U.S. income could be assessed if even one person is overlooked. Swiss banks are particularly on edge, as the U.S. has alleged that 11 Swiss banks have helped Americans avoid paying taxes. As a result they have begun ushering American clients out or limiting the range of products offered to them. The administrative cost of complying with the law, given the relatively small number and size of U.S. accounts, just isn’t worth it. While the impact can already be felt in Switzerland, banks world-wide are also concerned about the complexity of the new rules, and the difficulties and costs involved with Fatca, whose full enactment is viewed as inevitable.
Medical Practice adding a Co-shareholder? Caution!
If you are considering the addition of a co-shareholder to your medical or other professional practice, it may not be as simple as you think. While you may not mind sharing the profits with the new partner, allowing him to have input on business decisions affecting your practice may be quite another matter. As a result of a New Jersey statute long overdue for an amendment, you may be forced to hand over the controls to your new partner.
The law governing professional service corporations (N.J.S. 14A:17-6) specifies that where an entity has two shareholders, both “shall be” the directors. The terms of the statute appear to require that not only must the shareholder be a second director, but that he becomes a “minority partner” as well, which means that he will have half of the control regardless of his percentage of shareholdings. To illustrate, let’s assume you add John Smith as a 10% shareholder of your practice. He will be entitled to a 50% say in your practice’s business decisions, regardless of the fact that he only gets 10% of profits. [Read more…] about Medical Practice adding a Co-shareholder? Caution!
NJ Court Rules Discretionary Trust not Included in Alimony Calculation
The alimony statute, N.J.S.A. 2A:34-23, in determining an alimony award considers “the income available to either party through investment of any assets held by that party.” The question that arose in Tannen v. Tannen, a New Jersey Appellate Division case, is whether income from a discretionary trust falls under the category of “income available”. [Read more…] about NJ Court Rules Discretionary Trust not Included in Alimony Calculation
Thinking about Selling a Vacation Home? Get it Done Before 2013
2012 is entering its final quarter, and that means it’s time to start year-end tax planning. This year presents a bigger challenge than most, as the Bush-era tax cuts are set to expire unless Congress takes action soon. If the tax cuts expire it will result in higher tax rates for individuals, including capital gains and dividends, as well as higher estate tax rates. [Read more…] about Thinking about Selling a Vacation Home? Get it Done Before 2013