Berg and McLaughlin - Attorneys at Law

Business Mileage Rates

mcberg — Thu, 08 Mar 2012 22:22:08 +0000

The IRS has announced the standard mileage rates for use of a car, van, pickup, or panel truck for 2012:

55.5 cents/mile for business miles driven

23 cents/mile driven for medical or moving purposes

14 cents/mile driven in service of charitable organization

See Rev. Proc. 2010-51 for details on calculating mileage rates. http://www.irs.gov/pub/irs-drop/rp-10-51.pdf

Debtor Rights

mcberg — Thu, 08 Mar 2012 22:19:04 +0000

The Federal Fair Debt Collection Practices Act (“FDCPA”) was enacted in 1977 to protect individual consumers by imposing penalties on debt collection agencies who engage in unfair, abusive or harassing behaviors when attempting to collect a debt. Collection activities on certain debts, like those arising from unpaid taxes, business expenses or alimony, are excluded under the FDCPA because the Act aims to protect individual consumers on consumer debt.

Under the Act, all communication a consumer receives from a debt collector must be clear and easily understandable. The Act also sets out prohibited collection efforts. For example, a debt collection is not allowed to contact the consumer at their place of work if the employer does not allow such calls. Furthermore, the debt collector cannot call a consumer at home between the hours of 9 p.m. and 8 a.m. or use obscene or harassing language in any communication. Repeatedly calling or otherwise contacting the consumer is also prohibited. Each violation of the FDCPA can result in the debt collector being sanctioned in an amount up to $1,000 sanction. Additionally, if a violation of the FDCPA is found, the debt collector will be responsible for paying the consumer’s legal fees and costs.

If a consumer is experiencing harassing or unwanted communications from a creditor, it is important to know that it is a violation of the Act for the creditor to continue contacting the consumer after being notified, in writing, that the consumer refuses to pay the debt or would like the communication to cease. Also, the FDCPA prohibits a creditor from contacting a consumer who is represented by an attorney in relation to their debts.

2012 Tax Rates

mcberg — Mon, 02 Jan 2012 02:06:12 +0000

The IRS has set out the inflation adjusted tax rates for 2012 in Rev. Proc. 2011-52. http://www.irs.gov/pub/irs-drop/rp-11-52.pdf. For married couples filing jointly and surviving spouses, here are the 2012 marginal rates:

10% of income not over $17,400

15% of income between $17,400 & $70,700.

25% of income between $70,700 & $142,700

28% of income between $142,700 & $217,450

33% of income between $217,450 & $388,350

35% of income over $388,350.

Gift Tax Exclusion

mcberg — Mon, 02 Jan 2012 02:00:51 +0000

The annual gift tax exclusion remains the same in 2012. For calendar years 2011 & 2012, you may gift up to $13,000 each year to any person without filing a gift tax return and the gift amount will not be counted against your lifetime gift exclusion. This is a “per person” figure so you can make any number of individual gifts of $13,000 or less each year. Gifts to qualified charities are not taxable. Likewise, gifts to your spouse are not taxable so long as your spouse is a US citizen. Gifts to political organizations are also excluded from taxation.

If you gift more than $13,000 to a person, you must file a gift tax return and the amount of tax due will be applied against your lifetime “unified credit” amount. So tax will not be due on the excess of your gift until you have exhausted your unified credit amount. For 2012, the exclusion amount increases to $1,772,800. This translates into a maximum, tax-free lifetime gift amount of $5,120,000 through 2012. Because the gift and estate tax credit has been “unified” again, any unused credit against gifts may be applied against any estate tax that may be due at your death. Remember, if your lifetime gifts are less than $5,120,000, and the value of your estate is less than $5,120,000 at your death, no estate or gift tax will be do at your death. If you’re married, and you take the right steps, you may exclude double the individual amounts, meaning you could pass more than $10,000,000 dollars in gifts and estate value without paying any tax.

mcberg — Mon, 21 Nov 2011 23:55:41 +0000

mcberg — Mon, 21 Nov 2011 20:44:30 +0000

mcberg — Mon, 21 Nov 2011 20:43:29 +0000

Snedden Awarded!

mcberg — Tue, 25 Oct 2011 18:11:04 +0000

McLaughlin Featured

mcberg — Tue, 25 Oct 2011 17:46:49 +0000

Welcome!

mcberg — Tue, 25 Oct 2011 17:00:27 +0000

Welcome to our new website! We are pleased to present an updated website for our clients’ needs. You’ll find answers to frequently asked questions, and common forms readily available to you. We are happy to assist you. Please contact us and we will help you in any way we can.