JUNISTREET TAX

FASB Member Says Lease Standard May Call for Extra Disclosures

noreply@blogger.com (JUNISTREET TAX) — Mon, 02 Jan 2012 15:28:00 +0000

As discussed in the article entitled "Lease Standard May Call for Extra Disclosures" in the December 29, 2011, issue of Accounting & Compliance Alert, the FASB and IASB may consider adding some disclosure requirements to the lease standard to help clarify the expense reporting. Speaking December 20, 2011, during a webcast on private company accounting concerns, FASB member Daryl Buck said the boards will consider disclosures related to rental expenses. "We will be considering possible disclosures around straight-line rent expenses," Buck said. "We understand concerns persist, so we will continue to ponder the model." Under the proposal being drafted by the U.S. and international boards, almost all businesses would have to report their outstanding obligations for rental expenses. The proposal calls for treating equipment or space gained via an operating lease as an asset and declaring the payments owed as a liability. Rental expenses would be replaced with implied interest cost and amortization of the capitalized asset. The boards plan to issue a lease accounting proposal for a second round of public comments in the first half of 2012, Buck said. From:Tax & Accounting -- Thomson Reuters

IRS ISSUES GUIDANCE ON CARRYOVER BASIS RULES FOR 2010 DECEDENTS' ESTATES

noreply@blogger.com (JUNISTREET TAX) — Fri, 26 Aug 2011 00:36:00 +0000

JUNISTREET TAX:

IRS Issues Guidance on Carryover Basis Rules for 2010 Decedents’ Estates

August 7, 2011

On Friday evening, the IRS issued guidance on the time and manner for making the election not to have estate tax apply to estates of decedents who died in 2010 (Notice 2011-66). The election must be made by Nov. 15, 2011. The notice also discusses how donors can elect out of automatic allocation of the generation-skipping transfer (GST) tax exemption for direct skips in 2010 and clarifies when 2010 GST tax returns are due.

The IRS also on Friday provided details on how executors who elect not to have estate tax apply can allocate increase in basis to decedents’ assets. (Rev. Proc. 2011-41).

The Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010 (PL 111-312) reinstated the estate tax for 2010 after it had been repealed under the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (PL 107-16). However, the Tax Relief Act allows executors of the estates of decedents who died in 2010 to elect to apply the Code as if the estate tax had not been reinstated. Under this election, no estate tax would be due, but assets in the estate do not receive a step-up in basis to fair market value (FMV) at the date of death (or alternate valuation date). Instead, heirs’ basis in assets they inherit is determined under the modified carryover basis rules in IRC § 1022, with their basis being the decedent’s adjusted basis at date of death; however, the executor can elect to allocate up to $1.3 million to increase certain assets’ basis to their FMV at death (basis increase).

Executors can elect to have the provisions of section 1022 apply by filing Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, on or before Nov. 15, 2011. The IRS will not grant extensions of time to file Form 8939 and will not accept late-filed forms, except in certain narrowly defined circumstances. However, as of Friday, the IRS had not yet released a final version of Form 8939.

The notice explains that executors must allocate the basis increase on Form 8939. The executor must report on Form 8939 all property acquired from the decedent (except cash and rights to receive income in respect of a decedent (IRD)). The executor must also provide a statement to each recipient of property reported on Form 8939, within 30 days of filing Form 8939, setting forth information required under section 6018(e).

Revenue Procedure 2011-41 explains in detail how the allocation of the basis increase works and what assets it applies to. It also discusses how to determine fair market value, gives special rules for community property states, and explains the interaction of section 1022 with other tax provisions.

If the executor of the estate of a decedent who died in 2010 makes the section 1022 election, the executor will allocate the decedent’s available GST exemption by filing Schedule R with Form 8939. The notice provides two ways for the executor to elect out of the automatic allocation of the GST exemption.

The due date for filing a return reporting a direct skip, taxable distribution, or taxable termination that occurred during 2010 (before Dec. 17, 2010) is Sept. 19, 2011, except in the case of Form 8939, Schedule R, which is due Nov. 15, 2011.

The IRS has asked for comments on the guidance provided in the notice. Comments can be e-mailed to Notice.comments@irscounsel.treas.gov and should include “Notice 2011-66” in the subject line.

Final Regulations Govern Establishing Evidence of Delivery to the IRS

noreply@blogger.com (JUNISTREET TAX) — Fri, 26 Aug 2011 00:19:00 +0000

JUNISTREET TAX:

TAX

Final Regulations Govern Establishing Evidence of Delivery to the IRS

August 22, 2011

The IRS issued final regulations providing guidance on how taxpayers can prove the timely delivery of physical documents to the IRS or the Tax Court, absent direct proof of delivery (TD 9543). The regulations provide that proper use of registered or certified U.S. mail or a private delivery service, under criteria to be established by the IRS, will provide prima facie evidence of delivery.

IRC § 7502(c) establishes that if “any return, claim, statement, or other document” is sent to the IRS or the Tax Court by registered mail, the registration will serve as prima facie evidence of delivery. The IRS has previously extended this treatment to certified mail, too, under authority of section 7502. The federal courts have split over the question of whether section 7502(c) establishes the exclusive means to establish prima facie evidence of delivery so that taxpayers can raise a presumption of delivery only when they have used registered or certified mail.

Given the split in the courts, the final regulations are designed to clarify the prima facie evidence of delivery rule. Under the regulations, taxpayers will be able to establish prima facie evidence of delivery if they use a private delivery service under criteria that the IRS will establish in future guidance. However, direct proof of actual delivery, proof of proper use of registered or certified mail, and proof of proper use of a private delivery service designated in the future guidance will be the only ways taxpayers will be able to establish prima facie evidence of delivery of documents that have a filing deadline prescribed by the internal revenue laws.

Some commentators had suggested that additional services offered by the U.S. Postal Service, such as priority mail and delivery confirmation, be permitted to establish prima facie evidence of delivery. In the IRS’ view, because section 7502 mentions only registered and certified mail, it does not have the authority to treat additional U.S. Postal Service services as prima facie evidence of delivery. For the same reason, it rejected a suggestion that regular first-class mail should suffice to establish prima facie evidence of delivery.

The final regulations apply to any payment or document delivered in an envelope postmarked after Sept. 21, 2004.

TIGTA: IRS DOES NOT TIMELY RESOLVE MATH ERROR DISPUTES

noreply@blogger.com (JUNISTREET TAX) — Fri, 26 Aug 2011 00:13:00 +0000

JUNISTREET TAX:

TIGTA: IRS Does Not Timely Resolve Math Error Disputes

August 24, 2011

The Treasury Inspector General for Tax Administration (TIGTA) released a report in which it recommended that the IRS develop processes to ensure that math error disputes with taxpayers are resolved more quickly and accurately. Between Jan. 1 and July 23, 2010, TIGTA reviewed 260 taxpayer responses to IRS math error notices in which the taxpayers disputed IRS adjustments to their returns. TIGTA found that 104 of the 260 responses (40%) were not resolved in a timely manner by the IRS and that 43 of the responses (17%) were not resolved accurately.

The IRS has the authority to correct math errors on taxpayers’ tax returns without performing an audit. When it makes math error adjustments to a taxpayer’s tax return, the IRS then sends a notice to the taxpayer. The taxpayer then has an opportunity to dispute the IRS’ adjustment.

During the period TIGTA studied, the IRS issued approximately 8.6 million math error notices. A total of 133,186 taxpayers disputed the adjustments made to their tax returns.

According to TIGTA, when a taxpayer disputes a math error adjustment, under IRS guidelines the taxpayer should receive a final response from the IRS within 30 calendar days from the taxpayer’s initial telephone call or from the earliest date the IRS received written correspondence from the taxpayer. Based on the 40% rate of failure to timely respond in the sample, TIGTA estimated that 12,232 taxpayer responses may not have been timely resolved during the period studied.

TIGTA found that the IRS had no processes in place to monitor the timeliness of math error notice responses. TIGTA discovered that, although the IRS function responsible for working math error responses (the accounts management function) has a process to evaluate the timeliness of its overall inventory, it could not specifically determine if responses to math error notices were being timely resolved.

Based on the 17% failure to accurately resolve math errors in the sample, TIGTA estimated that 17,627 taxpayers may not have had their responses resolved accurately during the period studied.

In the report, TIGTA recommended that the IRS Wage and Investment Division develop a process to monitor timeliness of working responses to math error adjustments. However, the IRS did not agree with this recommendation. The IRS said it has already taken steps by sending interim letters to taxpayers in cases where it will not resolve math error disputes within 30 calendar days; however, TIGTA pointed out, “sending an interim letter does not resolve the case within the 30-calendar-day goal established by the IRS.”

TIGTA also recommended that the IRS prioritize the working of written responses relating to earned income tax credit math error adjustments and reinforce to staff the need to thoroughly and accurately work responses to math error adjustments.

TIGTA noted in its report that almost every failure to timely respond in its sample occurred when taxpayers had written to the IRS. IRS management indicated to TIGTA that taxpayer telephone responses are given priority during the filing season because telephone responses are addressed when received.

Tax Breaks For Disaster Victims

noreply@blogger.com (JUNISTREET TAX) — Tue, 26 Jul 2011 02:23:00 +0000

JUNISTREET TAX: Vixtims of the following natural disaster are eligible for tax relied.Visit IRS.gov for more detail.

http://www.irs.gov/newsroom/article/0,,id=108362,00.html

North Dakota victims of floodings that began in April 2011
Vermont victims of April 2011 storms and flooding

Massachusetts victims of June 2011 storms and tornadoes

Illinois victims of April 19, 2011 severe storms and flooding

Oklahoma victims of May 22, 2011 severe storms, tornadoes, straight-line winds, and flooding
Kentucky victims of April 12, 2011, severe storms, tornadoes and flooding

Mississippi victims of May 3, 2011, flooding
Tennessee victims of April 19, 2011, severe storms, tornadoes, straight-line winds and flooding
Missouri victims of April 19, 2011, severe storms, tornadoes, straight-line winds and flooding. Also see additional relief for Jasper County (Joplin Area) and Notice 2011-47, which provides emergency housing relief

Arkansas victims of April 14, 2011 severe storms, tornadoes, straight-line winds and associated flooding
Tennessee victims of April 25, 2011 severe storms, tornadoes, straight-line winds and associated flooding
Mississippi victims of April 15, 2011 severe storms, tornadoes, straight-line winds and associated flooding

Georgia victims of April 27, 2011 severe storms, tornadoes, straight-line winds and associated flooding
Alabama victims of April 15, 2011 severe storms, tornadoes, straight-line winds, and flooding
Oklahoma victims of April 14, 2011 severe storms, tornadoes and straight-line winds
North Carolina victims of April 2011 severe storms, tornadoes and flooding

IRS Gives Truckers Three-Month Extension; Highway Use Tax Return Due Nov. 30

noreply@blogger.com (JUNISTREET TAX) — Tue, 26 Jul 2011 02:16:00 +0000

JUNISTREET TAX:

IR-2011-77, July 15, 2011
WASHINGTON — The Internal Revenue Service today advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011.

Because the highway use tax is currently scheduled to expire on Sept. 30, 2011, this extension is designed to alleviate any confusion and possible multiple filings that could result if Congress reinstates or modifies the tax after that date. Under temporary and proposed regulations filed today in the Federal Register, the Nov. 30 filing deadline for Form 2290, Heavy Highway Vehicle Use Tax Return, for the tax period that begins on July 1, 2011, applies to vehicles used during July, as well as those first used during August or September. Returns should not be filed and payments should not be made prior to Nov. 1.

Two-Year Limit No Longer Applies to Many Innocent Spouse Requests

noreply@blogger.com (JUNISTREET TAX) — Tue, 26 Jul 2011 02:13:00 +0000

JUNISTREET TAX:

IR-2011-80, July 25, 2011

WASHINGTON — The Internal Revenue Service today announced that it will extend help to more innocent spouses by eliminating the two-year time limit that now applies to certain relief requests.

"In recent months, it became clear to me that we need to make significant changes involving innocent spouse relief," said IRS Commissioner Doug Shulman. "This change is a dramatic step to improve our process to make it fairer for an important group of taxpayers. We know these are difficult situations for people to face, and today’s change will help innocent spouses victimized in the past, present and the future."

The IRS launched a thorough review of the equitable relief provisions of the innocent spouse program earlier this year. Policy and program changes with respect to that review will become fully operational in the fall and additional guidance will be forthcoming. However, with respect to expanding the availability of equitable relief:

The IRS will no longer apply the two-year limit to new equitable relief requests or requests currently being considered by the agency.

A taxpayer whose equitable relief request was previously denied solely due to the two-year limit may reapply using IRS Form 8857, Request for Innocent Spouse Relief, if the collection statute of limitations for the tax years involved has not expired. Taxpayers with cases currently in suspense will be automatically afforded the new rule and should not reapply.

The IRS will not apply the two-year limit in any pending litigation involving equitable relief, and where litigation is final, the agency will suspend collection action under certain circumstances.

The change to the two-year limit is effective immediately, and details are in Notice 2011-70, posted today on IRS.gov.

Existing regulations, adopted in 2002, require that innocent spouse requests seeking equitable relief be filed within two years after the IRS first takes collection action against the requesting spouse. The time limit, adopted after a public hearing and public comment, was designed to encourage prompt resolution while evidence remained available. The IRS plans to issue regulations formally removing this time limit.

By law, the two-year election period for seeking innocent spouse relief under the other provisions of section 6015 of the Internal Revenue Code, continues to apply. The normal refund statute of limitations also continues to apply to tax years covered by any innocent spouse request.

Available only to someone who files a joint return, innocent spouse relief is designed to help a taxpayer who did not know and did not have reason to know that his or her spouse understated or underpaid an income tax liability. Publication 971, Innocent Spouse Relief, has more information about the program.

HOPENOW OUTREACH PREVENTING FORECLOSURE JUNE 17,2011

noreply@blogger.com (JUNISTREET TAX) — Thu, 16 Jun 2011 17:00:00 +0000

JUNISTREET TAX: 2011 Homeowner Events

The HOPE NOW outreach calendar is part of a larger outreach effort to the public. Across the country, homeowners can get face to face help from servicers and counselors. These events are an opportunity to learn more about local housing task force efforts and state programs that offer assistance. These events can be sponsored by a local counseling agency or an alliance of concerned housing partners.

A comprehensive list of all events across the country can be found on the Freddie Mac Outreach site.
http://www.hopenow.com/upcoming-events.php

June 17 & 18
Friday &Saturday 11:00 a.m.-7:30 p.m.
9:00 a.m.-3:00 p.m. Georgia International Convention
Center (GICC) College Park GA

Mortgage Assistance For The Unemployed

noreply@blogger.com (JUNISTREET TAX) — Thu, 16 Jun 2011 16:53:00 +0000

JUNISTREET TAX:
The Georgia Department of Community Affairs is partnering with GHFA Affordable Housing, Inc. to deliver a statewide mortgage payment assistance program to prevent foreclosures.

HomeSafe Georgia will help by providing "bridge" mortgage assistance to many Georgians who are unemployed or have seen a dramatic decrease in their income due to national economic conditions.

Funding for HomeSafe Georgia comes from the US Department of Treasury's Hardest Hit Fund.

To qualify the homeowner must:

Currently unemployed, or
Currently substantially underemployed, or
Currently able to make their mortgage payment, but got behind while they were unemployed or underemployed; and

June 15 Tax Deadline For Overseas Americans & Military

noreply@blogger.com (JUNISTREET TAX) — Tue, 14 Jun 2011 17:01:00 +0000

JUNISTREET TAX:IR-2011-66, June 10, 2011

WASHINGTON –Taxpayers abroad qualifying for an automatic two-month extension must file their 2010 federal income tax returns by Wednesday, June 15, according to the Internal Revenue Service.

The special June 15 filing deadline applies to:

U.S. citizens and resident aliens who both live and work outside the United States
Members of the military on duty outside the United States.

Taxpayers taking advantage of this extension must attach a statement to their return indicating which of these applies.

U.S. Department of Energy Weatherization Program

noreply@blogger.com (JUNISTREET TAX) — Tue, 14 Jun 2011 16:51:00 +0000

JUNISTREET TAX:The Weatherization Assistance Program (WAP) enables low-income families to permanently reduce their energy bills by making their homes more energy efficient. Home improvements and HVAC are replaced by the local city or state to decrease utility bills. This benefits the consumer by saving them out-of-pocket cash and controlling their utility bills. Funds are used to improve the energy performance of dwellings of needy families using the most advanced technologies and testing protocols available in the housing industry,

Google the Department of Energy Weatherization Program for more information in your area.

Georgia Residents Earn Up to $6900 for Home Improvements

noreply@blogger.com (JUNISTREET TAX) — Tue, 14 Jun 2011 16:40:00 +0000

City of Atlanta Offering Rebates for Green & Clean Home Improvements

noreply@blogger.com (JUNISTREET TAX) — Tue, 14 Jun 2011 16:32:00 +0000

JUNISTREET TAX:The SHINE Gold program offers rebates to City of Atlanta homeowners for improvement projects that target how the entire house system uses energy.* Often referred to as a “whole house approach”, the SHINE Gold program includes all improvements that collectively achieve a target energy use goal. Homeowners can receive a 25% rebate (up to $2,000) on the cost of qualifying energy efficiency upgrades. Qualified projects include, but are not limited to sealing leaky heating and air ducts, upgrading attic insulation, and caulking, weather-stripping, and window replacement.

*Homes need not be owner occupied.

Green Cash for Home Improvements

noreply@blogger.com (JUNISTREET TAX) — Tue, 14 Jun 2011 16:25:00 +0000

JUNISTREET TAX: Save Money & Energy with the Georgia Power Home Energy Improvement Program

The Georgia Power Home Energy Improvement Program offers Georgia Power customers two approaches – "Whole-House” or "Individual Improvements” – when looking for ways to enjoy year-round comfort and home energy savings.

The most effective way to improve the comfort and energy efficiency of your home is through a comprehensive, whole house approach. Georgia Power customers who choose the “Whole-House” approach can qualify for up to $2,200 in rebates depending on which total energy reduction level is met.

If the "Whole-House" approach does not fit your needs, you can still take advantage of “Individual Improvements” where up to $700 in rebates are paid depending on the energy efficiency improvements made.

Want to learn more? Just click below to find out about possible Georgia Power rebates, participating contractors, answers to your frequently asked questions and more.

CALIFORNIA AMNESTY FOR OFFSHORE ACCOUNTS

noreply@blogger.com (JUNISTREET TAX) — Tue, 14 Jun 2011 16:15:00 +0000

JUNISTREET TAX:California will be offering a tax amnesty program from August 1,2011 to October 31,2011 to file and pay the tax due for tax returns due before 2010. The program is aimed at unreported foreign earned income and offshore financial accounts.

Taxpayers will be able to avoid criminal prosecution and penalties. The program is administered by the California Franchise Tax Board.

ARIZONA ACCEPTING LATE TAX FILERS AND TAX RETURNS

noreply@blogger.com (JUNISTREET TAX) — Tue, 14 Jun 2011 16:01:00 +0000

JUNISTREET TAX:Arizona is waving penalties for taxpayers who have unfiled taxes from 2004 to 2009.The tax amnesty program is called the Arizona's Tax Recovery Program, will also reduce the interest rate for unpaid taxes paid in full.

The tax amnesty program is schedule for September 1, 2011 to October 1,2011.

Details include:

Arizona's Tax Recovery Program applies to individuals and businesses
All original and amended tax returns must be filed by October 1,2011
All taxes collected by Arizona's Department of Revenue qualify except estate,property,and ad valorem

MINNESOTA 2011 VOLUNTARY SALES & USE TAX PROGRAM

noreply@blogger.com (JUNISTREET TAX) — Tue, 14 Jun 2011 15:38:00 +0000

JUNISTREET TAX: If you are a business that has willingly or unknowingly failed to file Sales and Use Tax in Minnesota, the state is offering a tax amnesty program. The tax amnesty program,formally called The Sales and Use Tax Voluntary Compliance Program allows businesses to become compliant with the State of Minnesota while limiting the risk of audit for prior years.

Benefits of the program include:

Possible waiver of some penalties, depending on the specific circumstances.
The ability to file returns in a spreadsheet format, when applicable, instead of filing a return for each period involved.
An agreement to limit the tax due for only the look back period. The look back period is approximately three years. If you have collected taxes and not reported them for periods beyond the normal look back period, it will be extended to cover those periods. The look back period for voluntary disclosure is shorter than it would be if the Department discovered your noncompliance.

Creditor News:Doctors selling your medical bills

noreply@blogger.com (JUNISTREET TAX) — Wed, 08 Jun 2011 13:43:00 +0000

JUNISTREET TAX: From ajc.com

Patients in arrears face collectors

James Choi’s ambulance trip from Northside Hospital across the street to Saint Joseph’s Hospital cost $500.Choi, an insurance agent, thought his insurance company should pay the whole cost, so he dispute the bill and believed it was resolved in his favor.

Six years later, he applied to refinance his mortgage and discovered his credit had dropped 92 points because Capio Partners, a Duluth-based company that purchases patient debt from medical providers, reported the bill to a credit rating agency.

“It hurts my pride real bad because I’m hard-working and I abide by the law, but I’m still penalized,” he said.

Increasingly, patients are receiving collection notices not from the doctors or the hospitals who treated them, but from companies who bought their unpaid bills.

Some hospitals, physicians’ groups, ambulance services and other medical providers in Georgia and across the country sell patients’ unpaid bills to debt buyers like Capio for pennies on the dollar. As the volume of medical debt grows, health care providers are under increasing pressure to recover even a fraction of delinquent patient bills.

That’s where debt buyers come in. They purchase overdue patient bills from health care providers and collect the debt themselves. They need only collect a portion of the debt to make a profit.

It’s common for businesses to use collection agencies to go after unpaid debts. But patient advocates argue that medical debt is unlike any other obligation. Buying a car or a TV on credit represents a choice the buyer makes, but most patients do not choose to need medical care and can’t shop for affordable costs. Compounding the issue, medical bills are often incorrect and complicated beyond comprehension, they say.

As the nation struggles with the rising cost of health care, the sale of medical debt adds to the overall cost, policy experts say.

That’s because aggressive collection techniques used by many debt buyers discourage patients from seeking additional care, said Gerard Anderson, director of the Center for Hospital Finance and Management at the Johns Hopkins School of Medicine.

Health care experts say preventive care and timely treatment of chronic illnesses are important in controlling overall costs. The failure to provide such care to indigent patients transfers the financial burden to taxpayers and insured patients.

“When you have medical debts, you’re going to say, ‘You know I’m not going to get my diabetes checked,’ and once you don’t, you’re going to end up getting your foot amputated or losing your eyesight,” Gerard said.

Some states are beginning to see the sale of medical debt as a problem and are moving to address it, but Georgia has yet to react.

Creditor News:Resources from Georgia's Attorney General

noreply@blogger.com (JUNISTREET TAX) — Mon, 06 Jun 2011 19:45:00 +0000

JUNISTREET TAX:

Consumer Links

Better Business Bureau
A link to the national website of the Better Business Bureau. Please be aware that while the Better Business Bureau provides information on businesses and charities in your area as well as nationally, it is not a governmental agency.

Consumer Action Handbook
A website maintained by the federal government that provides information to consumers wishing to file a consumer complaint with local or state consumer protection offices, federal agencies with consumer protection responsibilities, or the Better Business Bureau.

Federal Do Not Call Registry
To register for the federal Do Not Call list or to report a violation of the federal Do Not Call list, contact the Federal Trade Commission at the above website.

Georgia's Do Not Call List
Georgia's Do Not Call list for individuals not wishing to be contacted by telephone solicitors is maintained by the Georgia Public Service Commission. The website maintained by the PSC for the Do Not Call list can be accessed at the above link.

Governor s Office of Consumer Protection
Georgia is one of three states nationwide where the Attorney General does not have primary responsibility for investigating complaints of consumer fraud. The responsibility for investigating consumer complaints in Georgia rests with the Governor's Office of Consumer Affairs, whose website can be accessed at the above link.

U.S. Consumer Gateway
United States Government website that acts as a portal for consumers, providing information on a wide range of topics from preventing fraud and protecting your financial information to health hazards in and around your home and community.

U.S. Consumer Product Safety Commission
United States Government website that provides information related to home and consumer product safety as well as product recalls that are in effect. In addition, the website provides information for consumers wishing to file a report about potentially unsafe products which caused injury.

Creditor News: How To Report My Creditor?

noreply@blogger.com (JUNISTREET TAX) — Mon, 06 Jun 2011 19:37:00 +0000

JUNISTREET TAX: If a creditor has behaved unaccordingly,then you as a consumer have a right to report your creditor and receive possible fines for $1000 for each action.

Report any issues you have to the state Attorney General's office and the Federal Trade Commission.

Creditor News: What is the Fair Debt Collection Act?

noreply@blogger.com (JUNISTREET TAX) — Mon, 06 Jun 2011 19:29:00 +0000

JUNISTREET TAX: The Fair Debt Collection Act in Plain English

Debt Collection FAQs: A Guide for Consumers

If you’re behind in paying your bills, or a creditor’s records mistakenly make it appear that you are, a debt collector may be contacting you.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.

Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.

Here are some questions and answers about your rights under the Act.

What types of debts are covered?

The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, a medical bill, and your mortgage. The FDCPA doesn’t cover debts you incurred to run a business.

Can a debt collector contact me any time or any place?

No. A debt collector may not contact you at inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it. And collectors may not contact you at work if they’re told (orally or in writing) that you’re not allowed to get calls there.

How can I stop a debt collector from contacting me?

If a collector contacts you about a debt, you may want to talk to them at least once to see if you can resolve the matter – even if you don’t think you owe the debt, can’t repay it immediately, or think that the collector is contacting you by mistake. If you decide after contacting the debt collector that you don’t want the collector to contact you again, tell the collector – in writing – to stop contacting you. Here’s how to do that:

Make a copy of your letter. Send the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received. Once the collector receives your letter, they may not contact you again, with two exceptions: a collector can contact you to tell you there will be no further contact or to let you know that they or the creditor intend to take a specific action, like filing a lawsuit. Sending such a letter to a debt collector you owe money to does not get rid of the debt, but it should stop the contact. The creditor or the debt collector still can sue you to collect the debt.

Can a debt collector contact anyone else about my debt?

If an attorney is representing you about the debt, the debt collector must contact the attorney, rather than you. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney.

What does the debt collector have to tell me about the debt?

Every collector must send you a written “validation notice” telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don’t think you owe the money.

Can a debt collector keep contacting me if I don’t think I owe any money?

If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.

What practices are off limits for debt collectors?

Harassment. Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not:

use threats of violence or harm;
publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
use obscene or profane language; or
repeatedly use the phone to annoy someone.

False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

falsely claim that they are attorneys or government representatives;
falsely claim that you have committed a crime;
falsely represent that they operate or work for a credit reporting company;
misrepresent the amount you owe;
indicate that papers they send you are legal forms if they aren’t; or
indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying that:

you will be arrested if you don’t pay your debt;
they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

give false credit information about you to anyone, including a credit reporting company;
send you anything that looks like an official document from a court or government agency if it isn’t; or
use a false company name.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
deposit a post-dated check early;
take or threaten to take your property unless it can be done legally; or
contact you by postcard.

Can I control which debts my payments apply to?

Yes. If a debt collector is trying to collect more than one debt from you, the collector must apply any payment you make to the debt you select. Equally important, a debt collector may not apply a payment to a debt you don’t think you owe.

Can a debt collector garnish my bank account or my wages?

If you don’t pay a debt, a creditor or its debt collector generally can sue you to collect. If they win, the court will enter a judgment against you. The judgment states the amount of money you owe, and allows the creditor or collector to get a garnishment order against you, directing a third party, like your bank, to turn over funds from your account to pay the debt.

Wage garnishment happens when your employer withholds part of your compensation to pay your debts. Your wages usually can be garnished only as the result of a court order. Don’t ignore a lawsuit summons. If you do, you lose the opportunity to fight a wage garnishment.

Can federal benefits be garnished?

Many federal benefits are exempt from garnishment, including:

Social Security Benefits
Supplemental Security Income (SSI) Benefits
Veterans’ Benefits
Civil Service and Federal Retirement and Disability Benefits
Service Members’ Pay
Military Annuities and Survivors’ Benefits
Student Assistance
Railroad Retirement Benefits
Merchant Seamen Wages
Longshoremen’s and Harbor Workers’ Death and Disability Benefits
Foreign Service Retirement and Disability Benefits
Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S.
Federal Emergency Management Agency Federal Disaster Assistance

But federal benefits may be garnished under certain circumstances, including to pay delinquent taxes, alimony, child support, or student loans.

Do I have any recourse if I think a debt collector has violated the law?

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can’t prove that you suffered actual damages. You also can be reimbursed for your attorney’s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.

What should I do if a debt collector sues me?

If a debt collector files a lawsuit against you to collect a debt, respond to the lawsuit, either personally or through your lawyer, by the date specified in the court papers to preserve your rights.

Where do I report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney General’s office (www.naag.org) and the Federal Trade Commission (www.ftc.gov). Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your Attorney General’s office can help you determine your rights under your state’s law.

For More Information

To learn more about debt collection and other credit-related issues, visit www.ftc.gov/credit and MyMoney.gov, the U.S. government’s portal to financial education.

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Creditor News: How To Fight Your Harrassing Creditor?

noreply@blogger.com (JUNISTREET TAX) — Mon, 06 Jun 2011 19:22:00 +0000

JUNISTREET TAX: This information is taken directly from Atlanta Legal Aid.

The Fair Debt Collection
Practices Act Letter

by Ellie Crosby

This letter can be used to ask collection agencies to provide you with information concerning their basis for claiming that you owe a debt ("verification of the debt"). Collection agencies purchase debts from other companies (usually at a discount) and then go after the debtors - the people who owe the debts - to try to get the debtors to pay the full amount they owe on the debt, plus interest and any late fees or penalties. You may also use this letter to ask collection agencies to stop contacting you. This letter only applies to collection agencies, NOT to creditors- the people who directly sold you goods or gave you credit or loaned you money. While the collection agency must stop contacting you, they can still file a lawsuit against you based on the debt. Often on small or disputed debts, the collection agency will not take further action.

Follow these instructions in order to use the letter:

1. Fill in your name and address on the top four lines. If the collection agency does not have your address, you may not want to give it to them. In that case, simply fill in information such as your name and account number so that the collection agency can identify who you are. If you want verification of the debt, but do not want the collection agency to have your address, you may give the address of a friend or family member.

2. On the fifth line fill in the date.

3. If you are sending the letter by certified mail, write the certified mail number (which is the number at the top of the Certified Mail Receipt) on the appropriate line.

4. On the second set of lines, fill in the name of the collection agency and its address.

5. In the blank in the second sentence of the letter, fill in the name of the person or business the collection agency says you owe. Also fill in the account number if you know it. If you do not know the company that the debt is owed to or the account number, include other information from the letters you have gotten from the collection agency so that the collection agency will know what debt you are talking about.

6. At the end of the letter under "sincerely" sign your name and then print your name below your signature.

7. Write the creditor's name on the line next to "cc:".

8. If you wish, you may want to write a few lines explaining your situation at the bottom of the page. For example, you may want to state your age, and/or the fact that you are disabled and therefore unable to work. If you are living on Social Security and have no other income, you may want to put that in your note. Also, you may want to state that you want to pay the bills you owe, but simply cannot afford to pay them at this time. You are not required to give any reason why you cannot or will not pay the alleged debt, but it could be to your benefit. For example, the collection agent may decide to focus collection efforts on others who have a greater ability to pay.

9. Make three copies of the letter. Send the original to the collection agency; a copy to the creditor; and a copy to:

Southeast Region
Federal Trade Commission
Suite 1500
225 Peachtree Street, NE
Atlanta, GA 30303

Preferably send these letters certified mail, return receipt requested. Keep the third copy of the letter, the Certified Mail receipts, and the green cards (which you should receive back in the mail) for your records.

10. The collection agency should then stop contacting you except to provide information about their basis for claiming that you owe a debt. If they continue to contact you, contact Atlanta Legal Aid Society or Georgia Legal Services Program nearest you. You may also make an online complaint to the Federal Trade Commission.

Credit Card News: Can My Creditor Sue Me?

noreply@blogger.com (JUNISTREET TAX) — Mon, 06 Jun 2011 19:16:00 +0000

JUNISTREET TAX: In general terms,yes.However,you as a consumer have limits into the ways and manners your creditor can sue you.

Fair Debt Collection Act Reads:

§ 811. Legal actions by debt collectors [15 USC 1692i]
(a) Any debt collector who brings any legal action on a debt against any consumer shall --

(1) in the case of an action to enforce an interest in real property securing the consumer's obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or
(2) in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity --

(A) in which such consumer signed the contract sued upon; or
(B) in which such consumer resides at the commencement of the action.

(b) Nothing in this title shall be construed to authorize the bringing of legal actions by debt collectors.

Housing News: Home Affordable Modification

noreply@blogger.com (JUNISTREET TAX) — Mon, 06 Jun 2011 19:05:00 +0000

JUNISTREET TAX:

Home Affordable Modification

Making Home Affordable Program signed by Obama

If you’re a homeowner who is behind in your mortgage payments, in the foreclosure process, or is current on your payments but are about to default as a result of a recently experienced hardship, you may be able to modify your loan to a lower rate through the Home Affordable Modification Program.
A Home Affordable Modification can help you by bringing your monthly mortgage payment to no less than 31 percent of your gross (before tax) monthly household income by:

Reducing your interest rate, and if necessary
Extending your loan term (i.e., from 30 years to 40 years), and possibly
Forbearing (deferring) a portion of the principal amount you owe until the loan is paid off, and waiving the interest on the deferred amount

Taxes:Please bring your home modification papers to your tax accountant at Junistreet Tax to avoid possible income taxes.

The Basics of Same Sex Financial Planning

noreply@blogger.com (JUNISTREET TAX) — Fri, 27 May 2011 19:02:00 +0000

JUNISTREET TAX: What are the basics a same-sex or non-married couple should know if they decide to continue in a non-legal unrecognized civil union.Here are 5 basic non-cumbersome tools to protect these alternative unions according to the law.

A will,revocable living trust, or living trust coupled with a pour-over will. A will allows for your assets to pass to your partner.A will also creates a public record.A revocable living trust,which is difficult to contest, appoints a trustee to distribute your assets after death.The living trust,the most private of inheritance tools, keeps your affairs private and allows your assets to pour (aka pour-over will)into a trust for distribution to your partner.
Durable power of attorney for healthcare.Authorizes a same-sex partner to make healthcare decisions for you in the event you are incapacitated.
Durable power of attorney for finances.Authorizes a same-sex partner to make healthcare decisions for you in the event you are incapacitated.
Domestic partner agreement. The equivalent of the heterosexual prenuptial agreement
Beneficiary agreements on retirement,401(k), and stock options.