Our Legal Blog

Are Tax Extensions Worth It?

Kentucky Tax Attorney

For various reasons, sometimes it’s simply not possible to complete and file a tax return by the April deadline. Whether it’s because all the information isn’t available, the person filing has questions they aren’t sure how to answer or a myriad of other reasons, sometimes taxpayers find that the April deadline simply isn’t going to make the cut. So what to do? While there are differences in opinion among professionals, the easiest solution, especially for an individual, is simply to file for an extension with Internal Revenue Service (IRS) form 4648. On one side of […]

A New Law Revives an Old Program

Lexington Tax Attorney

As the result of new federal regulations passed by Congress last December, the Internal Revenue Service (IRS) has announced they are bringing back a program discontinued several years ago amidst claims it was ineffective. As a means of collecting overdue taxes, the IRS has contracted four private collection agencies, two in New York, one in California and one in Iowa, to collect federal debts. New Law An IRS statement on their website explains the decision to return to the old program. It explains that the agencies will work on accounts where “taxpayers owe money, but […]

Protecting Your Firearms During Bankruptcy

If you are faced with a bankruptcy in the state of Kentucky, there are a few items that are allowed to be kept during this time. One of these items is firearms. Although guns must be listed as assets in bankruptcy, gun collections are usually exempted under the Wildcard exemption, so you might be able to keep your collection depending on its value. Most people believe they can just transfer their guns to someone else to avoid listing them in the bankruptcy petition, but this is a bad idea. If there have been any transfers […]

Tax Filing Deadline is Fast Approaching

When you see just as many ads for tax preparers as car dealers, you know it must be that time again. One of life’s two certainties, taxes are required contributions levied by the government. Income tax is the single biggest revenue source for the U.S. federal government and was first used to fund the Civil War. Today’s system has its basis in 1913’s Sixteenth Amendment to the Constitution. All but seven states also impose an income tax on salaries, interest, royalties, unemployment compensation, dividends, and more. For perspective, Kentucky’s 2014 tax revenue per capita was $2,516, […]

Little Bundle, Big Bills

Having a baby is an extraordinary and exciting time. The energetic buzz surrounding a new family member can put a person on cloud nine. The snuggles, the giggles, and each precious moment fills your heart with a kind of warmth that’s hard to describe. It’s also very exhausting to have a new baby and it can be a difficult adjustment, especially if you’re already on a tight budget. According to the U.S. Department of Agriculture, a middle income family can expect to pay more than $233,000 over the first 18 years of the child’s life, […]

Bankruptcy and Income Tax Refunds: What You Need to Know

This year, both the Easter Bunny and the Tax Man will make their rounds after the traditional April 15 tax filing deadline. The date can’t be on a weekend, and Emancipation Day is observed in Washington, D.C., on April 17. These circumstances push the cutoff to Tuesday, April 18, giving taxpayers three days more than usual to submit their income taxes. If you have recently filed for bankruptcy or are contemplating it in the near future, you may have questions about how it affects your taxes. Let’s take a brief look. Tax Refunds Post-Bankruptcy Bankruptcy […]

Debt Collection Abuses

For most people, debt is a part of life. When you’re behind on payments, life is generally more difficult. Chances are, you’re not only having a hard time paying your bills, but you’re also having to make choices about which bills to pay, how to adjust your shopping habits, and how to save money on the kids’ school clothes. Some people lose their jobs, some people suddenly fall behind because of a recent divorce, separation, or sudden death of a family member. A lot of hard-working people encounter tough times and don’t know where to […]

What is a Bankruptcy Audit?

New Bankruptcy Bar Date Drops from 120 Days to 70 Days

  The word “audit” tends to strike fear (or at least mild apprehension) in the heart of every taxpayer, but the Internal Revenue Service isn’t the only government entity that can use its official powers to investigate citizens and their paperwork. The United States Trustee Program (USTP), part of the Department of Justice, oversees the administration of corporate and consumer bankruptcy cases. One of its specific responsibilities is “taking legal action to enforce the requirements of the Bankruptcy Code, and to prevent fraud and abuse.” When the Bankruptcy Code was overhauled a decade ago, it gave the […]

Sued by Creditors?

KY Bankruptcy Lawyer

Collection lawsuits can be costly and time-consuming, so many creditors look for alternative debt repayment. They will repossess the collateral, stop providing the service, or accept reduced payments. While not all creditors turn to the courts to collect on an overdue debt, they do retain that right and may choose to pursue legal action if the debtor has any income or assets. Many creditors sell defaulted debt to collection agencies for pennies on the dollar, figuring that some payment is better than none at all. The collection agencies take on the headache and the possibility […]

Financial Planning for College

College isn’t for everyone, but if you are college-bound, or have children who are, your bank statements may be making you wonder if higher education is worth the financial risk. College tuition rates are increasing at a higher rate than general inflation. The average 2014-2015 tuition increase among private colleges was 3.7 percent, and 2.9 percent among public schools. That means that right now, 4 years of a private school will cost around $135,000, and in 18 years it will cost nearly $325,000. Four years of a public school is now approximately $40,000, and will hover […]