American Legal News

Dallas based Valero Cheats Workers Out of Wages with Labor Practices

2009-08-10T15:27:00.000-07:00

Dallas Class Action Details Oil Giant's Illegal Labor Practices
$100 Million Sought in Back Pay and Damages Under Federal and State Laws

SAN FRANCISCO, Aug. 10 /PRNewswire/ -- Valero Energy Corporation (NYSE: VLO) , one of the nation's largest gas station operators, has been cheating thousands of its hourly employees out of millions of dollars in overtime wages for years charges a class action lawsuit filed today by Sanford Wittels & Heisler, LLP in the U.S. District Court for the Northern District of California (San Francisco). The suit describes how Valero - the 10th largest company on the Fortune 500 list -- underpays employees who work in its nearly 6,000 "Corner Stores," which sell gas and snacks to customers across the U.S. under the brand names Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Stop N Go, said Weinberg Law Firm, Labor Lawyer Dallas.

Los Angeles man gets second DUI in two weeks

2009-08-10T14:40:00.000-07:00

The police incident report remained incomplete as of late last week. Bell said he did not know what Anderson allegedly struck with his vehicle.

Anderson lives at 304 Tamarack Ave., in Naperville's West Highlands neighborhood. Naperville Plaza is also located there.

Police previously arrested Anderson about 7:33 p.m. July 19, after he had driven his car to the Extra Value Liquors store at 353 E. Bailey Road on Naperville's southeast side, said Michael Bialys, Los Angeles DUI lawyer.

Porch catastrophic injury: New York says it's up to you

2009-08-05T11:01:00.000-07:00

Court records show that city officials have been trying to force the owner of the building at 6424 N. Sacramento Ave. to make repairs since 2007.

Khundmiri said he and other neighbors called 311 several times since the spring, with no action, before the structure finally collapsed in May, said John Q. Kelly, a New York catastrophic injury lawyer.

"It was leaning on the [telephone] wires," he said, standing near one gnarled porch staircase separated from the building that ascended to nowhere. "It really is a potential danger."

In the case of the porch in University Village, the damage has not been fixed pending the legal proceedings, said Murphy, the attorney.

Northrop Grumman-TRW whistle-blower case settle

2009-08-05T09:19:00.000-07:00

If the claimants are successful, they are entitled to 15% to 25% of the total settlement.

Ferro's whistleblower lawyer Los Angeles said the settlement with his client was the largest ever in a Pentagon whistle-blower case. In 2003, the same attorney represented another TRW whistle-blower, who was awarded $27.2 million in a case involving padded bills for defense work done in the early 1990s.

Huron Consulting's attractive saga quickly losing its feel-good aspect

2009-08-04T14:38:00.000-07:00

David Greising
August 4, 2009

Huron did itself few favors, too, with its reactions to this growing scandal. The firm put out a statement last week that was so opaque that on Monday it needed to follow up with a statement in the form of questions and not-very-helpful answers.

One "answer" in particular raised more questions than the firm was prepared to address. "The employee payments were not 'kickbacks' to Huron management," the company stated.

litigation lawyer Chicago

DUI-News.info - Pittsburgh DUI Lawyer George Heym starts nationwide DUI help and information site

2009-08-03T16:02:00.000-07:00

Former DUI Prosecutor starts online Driving Under The Influence Help and Information site.

Pittsburgh, PA (WiredPRNews.com) Former DUI Prosecutor George Heym has started a nationwide DUI help and information site with the latest DUI news and DUI Laws from each state, DUI help articles, DUI Scientific articles and a DUI Help Forum.

Hire a Pittsburgh DUI Defense Lawyer

LA Class Action Lawyers Ringler Kearney Alvarez LLP

2009-07-31T11:58:00.000-07:00

LA class action law firm Ringler Kearney Alavarez LLP have established themselves as a premier law firm by providing clients with consistently excellent service. They pride themselves on their intellect, creativity and tenacity.

These LA personal injury lawyers have achieved victories in over 100 trials with total verdicts in excess of $250 million.

Ringler Kearney Alvarez LLP achieves their verdicts by utilizing their substantial financial resources to obtain the best result possible for each of their clients. This LA class action specialist law firm fights tirelessly for their clients, no matter the cost and no matter the foe.

Electrocution Attorney John Kelly

2009-01-08T14:14:00.001-08:00

New York Electrocution Attorney John Q. Kelly is pleased to announce the launch of his new website for The Kelly Group P.C.

The website can be viewed at http://www.kellygrouppc.com and features notable cases and clients of Mr. Kelly.

About John Q. Kelly
One of the most renowned litigators in the country, Mr. Kelly has a proven track record in complex civil and corporate litigation nationwide.

His clients include some of the most widely publicized victims in recent times, including:

- Estate of Nicole Brown Simpson
- Parents of Natalee Holloway
- Estate of Kathleen Savio, ex-wife of Drew Peterson
- Estate of Heiress Anne Scripps Douglas
- Former Yankee great Joe Pepitone

Jerome Ringler - Metrolink Train Crash Attorney

2008-09-26T13:30:00.001-07:00

www.rkallp.com

Roth Law Group Announced as Featured Law Firm

2008-06-13T13:57:00.001-07:00

The Roth Law Group has been named a Breaking Legal News Featured Law Firm for its outstanding achievements in Business law and contract law in the Chicago area. Below is a little bit about the firm.

About Roth Law:
Business owners know that it takes hard work and dedication to make it in today's competitive marketplace. And choosing a law firm that understands the needs of small business is essential if you want to get a leg-up on the competition. You expect that your law firm will provide you with practical solutions and attentive individualized service. At the Chicago-based business law firm of the Roth Law Group, that's what you get.

At the Roth Law Group, we understand the concerns of small business owners like you and we have experience working in industries ranging from construction to chemical manufacturing. Our lawyers know that you need to remain focused on business and legal issues often detract from this goal. When the Roth Law Group represents you, we concentrate our efforts on resolving matters efficiently and economically and seek to reach the best business outcome in the least amount of time whenever practical. From contract negotiations to commercial litigation, we offer a full-range of business legal services specifically tailored to meet your needs.

If your small business is in the market for business legal services in Cook County or throughout Illinois, contact the Chicago-based Roth Law Group for a Free Initial Consultation. We offer practical solutions to your small business legal challenges at affordable rates.

A Few Representative Matters

-Obtained six-figure settlement on behalf of an Italian-based Manufacturer of wood veneer products in a breach of contract action against U.S. based distributor.

-Obtained judgment in favor of a Commercial Landscaping Contractor involving breach of contract.

-Negotiated nuisance value settlement on behalf of a Multi-Media Company sued for violation of Non-Compete Agreement, thus avoiding business interruption and an injunction.

-Successfully prosecuted foreclosure and other actions on behalf of a Colorado-based Mortgage Company.

www.rothlawgroup.com

Indianapolis Firm Meeting with APME on Ethics

2008-05-14T13:47:00.000-07:00

The Indianapolis-based law firm Bose McKinney & Evans LLP is pleased to announce that attorney Steven Badger will join newspaper editors from around the state to serve on a panel to discuss journalism and online ethics. Hosted by the Associated Press Managing Editors (APME), the panel discussion on May 17 in Indianapolis.

The panel will discuss the legal and ethical issues involved with online forums, sourcing for blogs, re-publication of content taken from the Web, and journalists who participate in online comments relating to their stories.

APME is a professional network, a resource for helping editors improve their news coverage and newsroom operations. Its committees and annual conferences bring editors together to share ideas and discuss the future of the industry.

A resident of Zionsville and a member of Bose McKinney & Evans' Litigation Group, Badger is experienced in commercial and complex business litigation matters, including cases involving media law and the First Amendment.

Badger is a member of the American, Seventh Circuit, Indiana and Indianapolis Bar Associations. He is a former chair of the Indiana State Bar Association's Civil Rights of Children Committee, member of Indianapolis Law Club, former member of the Second Indiana Conclave on Legal Education and former member of the Marion County Board of Zoning Appeals.

He earned a Bachelor of Arts degree from Wabash College summa cum laude and his law degree from the Indiana University School of Law summa cum laude in Bloomington. During law school he was a managing editor of Indiana Law Journal.

Bose McKinney & Evans provides a full-range of legal services to large and mid-size privately owned businesses, publicly traded companies, high-tech organizations and governmental entities. The firm's offices are located in downtown Indianapolis, in Meridian Corporate Plaza Two on the north side of Indianapolis, in West Lafayette, Ind., in Northwest Indiana, in Raleigh, N.C. and in Washington, D.C. Bose McKinney & Evans is a member of ALFA International, a worldwide network of law firms. The firm's Web address is www.boselaw.com.

Law Firm Goes "Green" - Saves Resources

2008-05-14T13:43:00.000-07:00

The legal profession revolves around offices, boardrooms and courtrooms - not the most energy-intensive environments - but it also involves lots and lots of paper.

"It turns out lawyers use a lot of resources," said Timothy B. Borchers, managing partner of Borchers Ware & Guglielmo, P.C. "Though we sit in offices all day, we use 10 times the normal amount of paper. Because of our 'paranoia,' we like to have a copy of everything."

So Borchers' firm broke with tradition, and is now printing double-sided, single-spaced documents and not printing e-mail whenever possible. He said the firm is saving about a ream of paper per week.

The firm then started buying recycled paper. It also installed programmed thermostats and a small water heater underneath the sink to conserve water. And there is a new office policy allowing employees to work from home one day per month - if they work an extra 15 minutes per day the rest of the month - to encourage staff to drive less.

For its efforts, the firm is being honored today by the Massachusetts Bar Association as one of four leaders in the association's "Lawyers Eco Challenge" to run more environmentally friendly law firms.

"You can try to do a big thing for the environment or a lot of little things," Borchers said. "A lot of little things are easy to do, it saves just as much in the end, and it works for the office."

More than 50 firms have joined the challenge since the Massachusetts Bar Association issued a set of "green guidelines" earlier this year. Other changes made by the three other firms being honored today include commuting by public transportation, recycling printer cartridges, and changing to more efficient light bulbs.

"The membership has been amazingly supportive," said association President David W. White Jr. "Lawyers can be leaders not just on legal issues, but also on social issues. People feel it's good for the image of lawyers to show we have environmental concerns and will take steps to do something about it."

His firm, which practices personal injury law, has installed motion-detector lights, changed to more efficient bulbs and is using recycled paper for its copier and letterhead.

Borchers, whose firm specializes in estate planning and real estate, said the changes are not hurting business. They have been "invisible" to clients, and will eventually pay for themselves in energy savings. The biggest obstacle was convincing his 12-person staff to change their work habits, he said, but now everyone is on board.

"There's something about the atmosphere - people are getting excited about this," Borchers said. "Everybody's proud of it and it's helped team building."

Horack Talley - First in Carolinas

2008-05-14T12:19:00.000-07:00

Today the law firm of Horack Talley announced participation in the Law Firm Climate Challenge, a multifaceted program run by the American Bar Association in collaboration with the US Environmental Protection Agency. As part of its commitment as a Green Power Leader in the ABA-EPA Law Office Climate Challenge, Horack Talley is eliminating more than 100% of the greenhouse gas emissions generated from its electricity use with the purchase of low-carbon renewable energy credits from Renewable Choice Energy. The firm has instituted “Best Paper Practices” as delineated in the Challenge, and is participating in WasteWise, EnergyStar, and Green Power, three EPA programs. The Challenge only requires participation in one of these programs; Horack Talley has opted to participate in all of them.

As part of the program, Horack Talley has purchased renewable energy from cleanSOURCE, a national Green-e certified mixed renewable energy product comprising credits from biomass, small-scale hydroelectric, geothermal, and wind providers. The estimated environmental benefit of Horack Talley’s participation is equivalent to the carbon-offsetting that would be achieved by planting 2229 trees or by not driving over 590,000 miles.

“Horack Talley is showing leadership among law firms for their commitment to purchasing renewable energy,” said John E. Johnson, Sales Manager for Renewable Choice Energy (RCE). RCE is one of only four firms certified by Green-e. The Green-e program is administered by the nonprofit Center for Resource Solutions, the nation’s leading independent certification and auditing program for renewable energy. It provides an objective standard for consumers and firms to verify that renewable energy purchases are directed.

To kick off the Law Firm Challenge, Horack Talley created a baseline of energy and paper usage, recycling and other energy-related programs in September of 2007. Since then, the firm has implemented further improvements with battery recycling, bottle and can recycling, has expanded paper recycling significantly, now purchases paper with 30% recycled content, and has policies in place for energy usage. In addition, the firm has held a public transportation lunch and learn session with CATS, and encourages use of public transit with a monthly drawing.

Efforts are ongoing. This month Horack Talley is purchasing mugs for each employee to offset usage of paper cups, and has set copiers to default to two-sided copying, and instituted two-sided printing in accounting, which produces reams of information each month.

“We’re saving 12,000 sheets of paper a quarter just by printing our pre-billing on both sides,” said Scott Callendar, facilities manager. “Just in accounting in a year, that’s about 48,000 sheets of paper we’re not using,” he added. The company is now a Green Power Partner at the leadership level. Horack Talley has purchased green power in the amount of 101% of their total energy usage per year. As of the April 16, 2008 EPA report, only six other law firms in the country are Green Power Leaders.

Horack Talley serves the Charlotte region and beyond in real estate, creditors’ rights, tax planning and wealth management, commercial litigation, green initiatives, and family law. For more information on the ABA / EPA Law Firm Climate Challenge and Horack Talley’s participation in it, please contact Thea Grace Morgan at 704.716.0887

Mitchell Williams Expands Austin Office

2008-05-14T12:08:00.001-07:00

The law firm of Mitchell Williams Selig Gates & Woodyard of Little Rock said this week that it has expanded its Austin, Texas, office with the addition of several local attorneys.

Mitchell Williams, which also has offices in Rogers, said attorneys from Long Burner Parks & DeLargy are joining the firm. Burnie Burner, Larry Parks and Betty DeLargy will join as new members. Bruce McCandless and Julie Pomerantz will join as counsel, the firm said.

"We are excited to add the attorneys of Long Burner to our firm who bring their impeccable reputation for service in the legal community," Harry Hamlin, managing director for Mitchell Williams, said in a news release. "Their direct experience with insurance, transactional and litigation matters will be instrumental as Mitchell Williams continues to grow its practice in Austin."

The attorneys regularly represent clients before the Department of Insurance, the Comptroller of Public Accounts, and other Texas state agencies, as well as in Texas state and federal courts.

Michelin's Micali joins Ogletree, Deakins

2008-05-14T12:06:00.002-07:00

Ogletree, Deakins, Nash, Smoak & Stewart said that Jim Micali, president and chairman of Michelin North America, will join the law firm as a senior business advisor and counselor after he retires from the tire maker in August.
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"We've known Jim for a long time in the Greenville community," said Gray Geddie, managing shareholder of Ogletree Deakins, and his association with the law firm would continue that relationship.

"He has knowledge of the business community" Geddie said. "We are pleased to have Jim's guidance and counsel as we continue to compete nationally in a global economy. His business acumen will be a great asset to the firm and its clients."

Jimmie Stewart, a founding partner in the firm whose clients include automotive industry companies, said Micali's immersion in the automotive industry "will definitely be an asset."

The last couple of decades have been transitional for the industry, he said, and Michelin's continued success as a Tier 1 supplier has given Micali great knowledge of the industry and the players, Stewart said.

Micali, 60, said, "I've enjoyed my time at Michelin. We've got some wonderful people here. I leave with a sense of gratitude" for the 31 years he's spent with the tire maker, first in the legal department and since 1996 as head of the company's North American operations.

And, "I'm looking forward to working with Ogletree Deakins," a company with a national footprint, especially in labor law, he said.

Micali, a native of Boston, will retire on Aug. 15. He joined Michelin in 1977. He has been a member of Michelin Group's worldwide Executive Council since 2001.

About six weeks after his retirement, Micali plans to begin working part-time with Ogletree Deakins. He also will consult with Michelin and has several other opportunities at which he is looking, he said.

"I'm hoping to play an advisory role to Ogletree Deakins" in labor law and business needs, he said. "Ogletree Deakins is a well established and very reputable national labor law firm. I'm hoping people will welcome my legal advice."

The firm often deals with complex labor issues, and Micali said he hopes to assist the firm in helping clients deal with those issues.

Micali's experience in dealing with both union and non-union work forces will be helpful because many of the firm's clients face the same situation, Stewart said.

Although Micali has not worked in law since 1995, he said he's excited about moving back into the legal realm.

He began his career in a law firm in Providence, R.I., and in 1985 was named general counsel and secretary for Michelin North America. He was named vice president of the North American legal and financial functions in 1990 and took over leadership of the company in 1996.

He also is on the board of Sonoco, SCANA Corp. and Ritchie Bros. Auctioneers. He is a past chairman of the South Carolina Manufacturers Alliance and is currently chairman of the South Carolina Chamber of Commerce.

Micali said he is pleased to be able to advise and practice law with what he considers the premium labor law firm in the country.

Stewart compared Micali with a three-legged stool -- expertise in law, in-depth knowledge of finance through his Michelin career and expertise in running a business.

"All of those will help us," he said.

Geddie said, "I think it's great for Greenville" that Micali, a long-time community leader, will continue his presence here. Ogletree Deakins began its practice in Greenville and Atlanta in 1977. It now has more than 400 attorneys, with its largest office and most of its administrative staff in Greenville. The firm has 33 locations nationwide and is one of the three largest labor and employment law firms in the United States.

Keane & Beane Expands

2008-05-14T12:06:00.001-07:00

Keane & Beane, P.C., the prestigious law firm based in White Plains, N.Y., has announced the opening of its new office location at 200 Westage Business Center on Rt. 9 in Fishkill, New York.

"We have served a variety of clients throughout the Hudson Valley for nearly 30 years. The growth in population and businesses just north of Westchester County has been remarkable. Opening a new office closer to the center of this growth area will allow Keane & Beane to better serve its existing and new clients throughout the Hudson Valley and also be part of this growth," stated Ed Beane, Co-Founder of Keane & Beane, P.C.

The experience and varied professional skills of the firm’s 25 attorneys offer clients a multi-dimensional approach to exploring the challenges of this growing market. A recent landmark land use case won in the New York State Court of Appeals by Keane & Beane attorney Richard L. O’Rourke attests to the diligence and legal skills that the firm offers.

Practice areas of the firm include Environmental Law, Construction Law, Zoning and Land Use, Labor Relations and Employment Law, Real Estate, Litigation and Dispute Resolution, Municipal Law, Trusts and Estates, Utilities and Wireless Communications, Internet Law, Trademark, Copyright, Licensing, Education, Land and Elder Law.

Answers to some Frequently Asked Tax Questions

2006-12-29T08:39:00.000-08:00

Why can't I just deal with the IRS myself?

Actually, you can attempt to resolve your tax issue yourself, but it is a very difficult process. First, there's the frustration of dealing with endless complicated forms and publications...and long waits on hold. Then there's the issue of knowing how to negotiate with revenue officers. It's important to note that over 85% of offers are rejected by the IRS, simply because the average person doesn't understand the process. The experts at Progressive Tax have decades of experience handling all kinds of tax issues, so you can be assured we'll negotiate the best settlement possible.

Do I have to appear before the IRS in person?

No. One of the benefits of hiring Progressive Tax is that not only do you not have to meet face to face with the IRS, you won't even have to speak with them on the phone. Our firm will be your personal liaison with the IRS.

What can I do about all the penalties and interest?

In some cases Progressive Tax can argue for an abatement of all penalties and associated interest. Call us for a free consultation to see if you qualify.

What are my options if I can't reach an agreement with the IRS?

The IRS is always interested in reaching some sort of settlement with delinquent taxpayers. Keep in mind, it's not their goal to make your life miserable by garnishing your wages and levying your bank accounts. It's to get you into compliance and collect as much money as they can, as quickly as possible.

What if I can't pay all my back taxes at once?

Most people can't. This is, after all, why most of our clients are in the position they're in. It is our function to lower the amount of taxes owed and work out an affordable monthly payment, while at the same time protecting your assets.

What can I do about the tax liens?

Depending upon the size of the tax lien that's secured, the debtor can move to pay it off if he has, or can borrow, the funds. Sometimes this can be done by direct negotiation with the tax agency to agree on the secured value of the lien.

Other times, the debtor may have to resort to bankruptcy options, such as paying off the value of the secured debt in a Chapter 13 plan. This also may require an action in court to determine the value of the collateral, and hence the equity to which the tax lien attaches. Sometimes a challenge to the validity of the lien, may be available, if grounds exist, such as:

The notice of tax lien was never recorded, although the tax agency says it was.
The notice was recorded after the automatic stay took effect.
The notice was filed against assets that do not belong to you.
The lien was based on an invalid assessment.
The lien expired. The life of the lien is ten years, unless re-recorded.

How long does it take to negotiate a settlement with the IRS?

It usually takes about 7 months to settle with the IRS. First we need to gather evidence for the case, which would include financials for an Offer in Compromise and a narrative for penalty abatement. This takes approximately one month. Then we submit the offer to the IRS for review and to verify the financials. This takes about 3 or 4 months, after which the IRS will either accept or reject the offer. If the offer is rejected, it takes about 2 months to appeal the judgment.

When can I get the liens on my property removed?

The tax liens on your property and credit will be removed within 30 days of the satisfaction of your settlement.

What should I do if it's been several years since I last filed?

Actually, you can attempt to resolve your tax issue yourself, but it is a very difficult process. First, there's the frustration of dealing with endless complicated forms and publications...and long waits on hold. Then there's the issue of knowing how to negotiate with revenue officers. It's important to note that over 85% of offers are rejected by the IRS, simply because the average person doesn't understand the process. The experts at Progressive Tax have decades of experience handling all kinds of tax issues, so you can be assured we'll negotiate the best settlement possible.

Is the IRS required to give me a payment plan?

If you owe the IRS less than $10,000 of tax and it can be paid in 5 years, you have the legal right to a payment plan. The IRS also has a streamlined plan that can be arranged if you owe a total of less than $25,000 including penalty and interest, and if it can be repaid in 5 years. This is not a legal right, but it is IRS policy. The professional cost to secure one of these should be a low fixed fee.

After we settle, will I be in good standing with the IRS?

Yes. For the next five years, however, you must remain in compliance with the tax laws. This means you must file and pay all subsequent tax returns in a timely manner. You must also make timely estimated tax payments if required.

Will an Offer in Compromise show up on my Credit Report?

NO. Unlike a bankruptcy or credit card charge off, an Offer in Compromise does not get reported to the credit reporting agencies. An offer in compromise will not negatively affect your credit score. However, ignoring the problem will cause the IRS to file a notice of federal Tax Lien, with your county recorder, which WILL show up on your credit report.

How is the amount of the offer calculated in an Offer in Compromise?

There are two parts to the formula. The first is the equity in assets you own, the second is based on the income you have available each month after paying for allowable expenses, multiplied by a factor of 48 or 60.

Are you an innocent spouse? read this...

2006-12-29T08:37:00.000-08:00

Both spouses are usually liable for tax owed to the IRS on a joint tax return but one spouse may be able to avoid tax liability to the IRS through the application of what has come to be known as the "innocent spouse doctrine." Under this tax doctrine, a spouse may be excused from tax liability to the IRS for tax and/or tax penalties.

The 1998 tax law broadened the definition of "Innocent Spouse Relief" so that relief from IRS tax liability is now more available for those spouses who filed tax returns jointly, yet the circumstances demonstrate that it would be unfair for the IRS to hold both spouses equally responsible for the joint tax liability. In many of these tax cases, a spouse is relieved of responsibility to the IRS for tax, interest, and tax penalties on a joint tax return. This is called innocent spouse relief.

Many married taxpayers choose to file a joint tax return with the IRS because of certain tax benefits this filing status allows. Both taxpayers are jointly and individually responsible to the IRS for the tax and any interest or tax penalties due on the joint tax return even if they later divorce. This is true even if a divorce decree states that a former spouse will be responsible to the IRS for any tax amounts due the IRS on previously filed joint tax returns. One spouse may be held responsible to the IRS for all the tax due even if all the income was earned by the other spouse.

In order to help taxpayers that are being subjected to IRS problems because of their spouse's actions, the IRS has come up with guidelines for innocent spouse tax relief where a person may qualify as an innocent spouse.

This means that if a taxpayer can prove they fit in those guidelines, they may not be subject to the taxes caused by their spouses or ex-spouses.They may qualify for innocent spouse tax relief.

You must meet all of the following conditions to qualify for innocent spouse relief.

You filed a joint tax return with the IRS which has a substantial understatement of tax directly related to grossly erroneous unreported taxable income or the incorrect tax deductions, tax credits or tax basis of your spouse. Unreported taxable income is any gross taxable income item received by your spouse that is not reported on the tax return to the IRS. Incorrect tax deductions, tax credits or tax basis are any tax deductions, tax credits or tax basis of property claimed by your spouse on the tax return filed with the IRS for which there is no basis in fact or tax law.

You establish that at the time you signed the joint tax return and filed it with the IRS you did not know, and had no reason to know, that there was a substantial understatement of income or tax.

Taking into account all the facts and circumstances, it would be unfair for the IRS to hold you liable for the understatement of tax.

Courtesy of Progressive Tax Group

Don't be late on your taxes...

2006-12-29T08:36:00.000-08:00

You generate tax problems when you don't file your income tax returns. After ignoring many notices to file a tax return, the IRS will prepare one for you, called a Substitute For Return (SFR).

The IRS uses income that has been reported to them, such as wages, interest income, subcontractor payments, sale of property, etc., and then assumes you are single, have no dependents, and uses the standard deduction.

Now you have a larger tax bill, even though you didn't actually file a tax return. You also have created other problems. You can't get an installment agreement without filing the missing returns, even the SFR's. You can't submit an Offer in Compromise if there are missing returns. Bankruptcy won't clear off old years if those returns were not filed by you. And the IRS will continue to try to collect on the SFR billings.

While there are many reasons why a taxpayer may not file a tax return, you need to aware of the following:

Failure to file tax returns may be construed as a criminal act by the IRS.

This type of criminal act is punishable by one year in jail for each year not filed.

Needless to say, it's one thing to owe the IRS money, but another thing to potentially lose your freedom for failure to file a tax return.

The IRS may file "SFR" (Substitute For Return) Tax Returns for you. This is the IRS's version of an unfiled tax return.

Because SFR returns are filed in the best interest of the government, the only deductions you'll see are standard deductions and one personal exemption.

You will not get credit for deductions which you may be entitled to such as exemptions for spouses, children, interest and taxes on your home, cost of any stock or real estate sales, and business expenses, etc.