You’ve probably heard the old saying, “a verbal contract isn’t worth the paper it’s written on.” Yet many business owners and executives still enter into handshake deals. This can create problems later on that could have been easily avoided by simply getting things in writing. There’s nothing wrong with ironing out the details of a transaction  Continue Reading »

For Maine employers, the most immediate concrete change the Tax Cuts and Jobs Act (TCJA) will bring about is new payroll tax withholding rates. Here’s the latest from the IRS: “We anticipate issuing the initial withholding guidance in January reflecting the new legislation, which would allow taxpayers to begin seeing the benefits of the change as  Continue Reading »

Holder v. Howe, 2016 Cal. App. Unpub. LEXIS 8989 (Dec. 14, 2016) A bankruptcy-related suit in front of the California Court of Appeal turned on the issue of how to value an aged film that never made any money. The trial court dismissed the plaintiff expert’s approach as “illogical.” The appeals court agreed the method  Continue Reading »

Now that the Tax Cuts and Jobs Act (TCJA) has passed, everyone wants to know how much they’ll save. President Trump and Republican members of Congress say the bill will bring $3.2 trillion in tax cuts. Here’s a comparison of how tax results for a typical family of four might be affected by the tax law  Continue Reading »

When choosing financial expert for a litigation matter, recommendations from other attorneys or reputation along are often the deciding factor. But even if an expert is known as the best expert in their particular area, they may not be a good fit for every attorney. It makes sense for an engaging attorney to interview the  Continue Reading »

The most significant tax legislation in decades has passed. The new tax reform law is commonly referred to as the “Tax Cuts and Jobs Act” (TCJA). Now Maine businesses and individuals are trying to digest the details and evaluate how the changes will impact their tax situation. Fortunately, your tax advisors can help you figure things out.  Continue Reading »

The term direct deposit does not apply to payroll only. This can be a time and money saving service to businesses in other ways too. What about the checks written for expense reimbursements or commissions? For a corporation, how about depositing the dividend checks of shareholders into the bank accounts of their choice? Today, it’s  Continue Reading »

Transupport, Inc. v. Commissioner, 2016 Tax Ct. Memo LEXIS 214 (Nov. 23, 2016) Expert independence was front and center as an issue in the Exelon tax case. Now comes, a reasonable compensation case in which the Tax Court zeroed in on the same point. The court rebuked an experienced compensation analyst for what it perceived  Continue Reading »

Most small business owners realize that paying company debts is just as important as collecting accounts receivable and that these debts need just as much management. What business owners may not realize is that they can actually have a surprising amount of control over how and when company debts are paid, giving some advantages. First,  Continue Reading »

When individual taxpayers claim deductions for bad debt losses, the IRS is always skeptical. Why? Losses from purported loan transactions often fail to meet the tax-law requirements for bad debt loss deductions. For example, a taxpayer might try to write off a capital contribution to a business entity that underperformed. Or a taxpayer might have  Continue Reading »