3 Ways To Get A Fresh Start With The IRS

11. September 2017 16:22 by Junita Jackson in

Who couldn’t use a fresh start—especially when it comes to alleviating tax debt? If getting rid of debt were as easy as closing our eyes and snapping our fingers, we’d never learn the meaning of discipline. No, if getting rid of debt was that easy, then the Internal Revenue Service (IRS) wouldn’t even be necessary. But debt is a real thing that plagues most American taxpayers and while many may have it under control, there are millions who don’t. That uncontrollable debt can spill over to having issues with federal debt—something you might want to avoid altogether if at all possible.

Yet, many don’t.

The IRS’ Main Job

And aside from collecting tax debt, the IRS is very necessary for ensuring that the taxes collected are fully accounted for so that lawmakers and congressmen can disperse them to the proper legislative channels. In order for them to do this, they need to have an accurate budget of the numbers. This is projected by the number of American taxpaying citizens and their household income. The level of their income will determine exactly how much they owe in taxes.

So if those taxpayers who owe don’t file or pay the amount that the IRS claims they owe, this puts the US Treasury in a compromising situation. Take, for example, your paycheck. If you’re expecting a certain amount of money to be directly deposited into your bank account, then chances are you may have already planned to spend that money on paying bills, groceries, etc. If you don’t receive that check, then you’re put in a compromising position. With the US Treasury, they’re in a compromising position that could be well into trillions of dollars!

Success Tax Relief does not want you to be in a financially compromising predicament. If there’s a way we can help you get a fresh start, then we want to provide you with 3 simple steps in helping to clear your tax debt once and for all.

  1. Monthly Payments

Even if you owe the IRS thousands of dollars, they will work out a monthly payment plan that won’t leave you in hardship. All you need to do is communicate your intention to pay.

  1. Avoid Tax Liens a Little Better

There’s really nothing that you need to do to make this work for you except avoid your tax debt from increasing. To do this, just avoid any missed or late payments because late payments equal penalty fees, and penalty fees and missed payments mean you’ve forfeited the payment agreement, and you’re right back to where you started—in debt and/or in trouble!

  1. File for an Offer in Compromise

It’s quite possible that you might be eligible for an Offer in Compromise that allows you to pay less than you owe. This isn’t an option that everyone is qualified for. Each case is different.

To determine if you qualify for an Offer in Compromise or if you need assistance working out a monthly payment plan to the IRS, then contact Debt-Ridden Tax Relief for a free consultation. 

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Why Now, More Than Ever, Brands Big And Small Need To Work Together

25. August 2017 21:31 by Junita Jackson in

The UK economy has changed immeasurably since Napoleon called us a ‘nation of shopkeepers’.

Yet, in many respects, the phrase still rings true: small and medium-sized businesses made up an astounding 99% of all private sector firms at the end of 2016, accounted for almost half of all private sector turnover and two-thirds of all employment.

 

For some time now we have seen small and medium-sized enterprises and disrupters knocking on the doors of well-established brands and industry giants to gain expertise, contacts and ultimately bolster their own growth. However, a more interesting trend has emerged in recent years…

Larger, more well-established, brands are turning to start-ups and challenges for an injection of fresh ideas

For example, Sir Richard Branson recently launched his Platform X project through which he lured smaller brands and entrepreneurs to train his own employees and stay ahead of the curve when it comes to tech and digital innovation.

Universities are now realising that they need to be more attuned to the needs of business than previous generations of academia and connections are forming between these sectors.

And this shift towards collaboration is at the heart of Here East’s ethos as we actively curate a campus where, through ‘co-location’, our different tenants’ talents and ideas can collide and thrive together.

This is a wise move as smaller brands are often more agile, forward thinking and innovative than their larger competitors and less wedded to the cumbersome processes that develop as companies grow. These processes may protect the existing brand but they are rarely conducive to driving it forward.

 

Smaller brands are frequently in a better position to support innovation

As we look towards a very different economic future, the ideas that can be sparked by the collision of large and small brands are needed more than ever. It was for this reason that car giant Ford recently announced

the opening of its Smart Mobility Office at Here East.

According to Steven Armstrong, Ford group president and president for Europe, Middle East and Africa, the company wanted the “greater collaboration and the out-of-the-box thinking needed to tackle the urban transport challenges of tomorrow”.

Increasing numbers of incubators and innovation centres, where large and small brands can work and learn together side by side, are opening up across the UK too. The majority of these facilities are based in the capital. For instance, London Mayor Sadiq Khan recently opened London’s largest innovation centre, Plexal, on the Here East campus on the Olympic Park – a home to 800 start ups and organisations.

Interestingly, Nesta has found that the majority of the funding for these new facilities comes from the private sector, an indication that larger businesses have recognised the need to support the challenger brands that follow them, in return for advice on innovation. In return, small and medium-sized enterprises are supported with training, mentoring, HR and legal advice and networking skills.

Start-up corporate collaboration holds the key to unlocking business confidence

According to recent research from the Close Brothers Business Barometer, 57% of businesses aren’t confident about the state of the economy over the next year. This rises to 64% of start ups.

Collaboration is one of the ways to offset these concerns. The more that large and small brands continue to innovate – to share ideas and to learn from one another’s expertise, partner and generate revenue – the stronger they will be.

In spite of these concerns with  the economy, there are of course reasons to be cheerful: London remains a top global city, the economy has performed better than many expected in the past year – particularly in areas like manufacturing – and the capital attracted more tech investment in 2016 than Paris, Berlin and Amsterdam put together over the last five years.

However, continued innovation and collaboration between large and small companies remains the one of the best ways to secure future success in the years ahead. At Here East we will be playing our part in this.

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Protecting Your Wealth With A Domestic Asset Protection Trust

26. July 2017 11:32 by Junita Jackson in

                                                           

 

Just what is a Domestic Asset Protection Trust, or what is more commonly referred to as a DAPT? It’s a type of irrevocable trust that is self-settled and acts like a spendthrift trust which doesn’t allow for the appointment of the trust assets to your creditors and permits you to be a beneficiary. In more plain English, it’s a trust you can set up in certain states to protect assets from your future creditors and lawsuits against you.

There are presently 13 states (14 if you include Colorado’s limited state statute) that allow for self-settled Domestic Asset Protection Trusts. California is not one of them. However, that doesn’t mean that you can’t set one up in another state that allows them such as Nevada, Delaware, South Dakota, or Alaska, just to name a few.

Although this asset protection device has been around for a decade and a half, it has yet to be rung up the Court system except in the case of a bankruptcy. Most cases settle out of court for some lesser negotiated amount due to the expense in litigating to get to the assets. Other than in the case of a bankruptcy, DAPTs have proven to be quite effective bargaining chips for settling debts for a lesser amount and protecting assets from the reach of creditors and lawsuits.

There are various state statutes for DAPTs across the country that govern how the trust needs to set up and how and from whom the assets can be protected. Most DAPT state statutes allow the DAPT to be a “Grantor” trust. This means among other things that the Grantor of the trust can pay the income tax on the income that the trust generates. Many types of assets can be transferred to a DAPT including cash, securities, real estate, and business interests, just to name a few.

So just who is a good candidate for this type of planning? Liability concerns doctors, lawyers, high risk professionals, and other people of high net-worth. The best protection is to set this structure up far in advance of any creditor problem. This is because each state has a statutory waiting period until the assets are protected. You also don’t want to get caught in the snare of a fraudulent transfer. A court could consider the transfer to a DAPT fraudulent if you transferred property to the trust after the threat of a creditor action or lawsuit has arisen. Each state has its own statutory waiting period from the date the asset is transferred to the DAPT and when the asset is protected from a creditor’s claim. For example, Nevada’s statutory waiting period is two years.

Today there is a definite increase in liability exposure. We live in a victim mentality world where the revelation that someone has deep pockets can spur on a lawsuit or a threat of one. The plaintiffs’ attorneys are partly to blame in this regard as well with their TV commercials making it appear to be the norm to sue sue sue! Many professionals are fearful of malpractice lawsuits today because of the notoriety of malpractice and errors and omissions legal actions. For instance, in 2006, there were over 633,000 malpractice claims against physicians and surgeons alone! This was reported by the Physician Insurers Association, 2007 Report.

There is also a statute of limitations that differs depending upon whether the creditor is a preexisting creditor or a non-preexisting creditor. If there is a preexisting creditor, there is a tolling of the statute of limitations period in order to protect those creditors.

Nearly all of the states that allow for DAPTs also have exception creditor statutes. These statutes protect certain classes of creditors by allowing them access to a DAPT’s assets. One common exception creditor is a divorcing spouse. There is one state that doesn’t have exception creditors and that is Nevada.

Even though just implementing a Domestic Asset Protection Trust would stifle most plaintiffs, there are additional asset protection strategies that can be utilized to significantly increase your asset protection if used in conjunction with the DAPT. By adding one or more Limited Liability Companies (LLCs) to the mix, you can limit a creditor’s remedy to a “charging order” in some jurisdictions. A charging order, as discussed in Chapter 9, limits the creditor to the LLC member’s share of distributions and doesn’t confer any voting or management rights to the creditor in the LLC. This charging order protection offers an additional barrier when it is combined with the DAPT in a well-crafted asset protection plan.

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