Tax Lawyers Are Going To Be Very Busy

The United States Tax Court Building, in Washington, D.C., headquarters of the United States Tax Court. (Photo credit: Wikipedia)

The recent news concerning the ruling on health-care legislation, handed down from the Supreme Court, has made some angry and some glad. The Congress of the United States passed a law saying that all citizens are mandated to carry health insurance and if you did not carry insurance you would be fined. The case went to the Court and they determined that the penalty was just a tax and would be allowed under the U.S. Constitution.

In life they say there are only two certainties, death and taxes, with the recent ruling government will be wanting more of your tax dollars. As long as governments want a piece of your income, tax experts will be needed for legal advice on tax implications for disputes concerning property, estates, trusts, and finances. The kind of lawyer you need for tax disputes is one with a llm in tax law.

Tax law is its own distinct and separate legal area but it is also a companion legal area. By a companion legal area I mean, knowledge of tax law is necessary if you practice other types of law like business & corporate law, estate planning, and probate law. Tax law can also be integral to other areas of law like family law, bankruptcy law, guardianship law, real estate law, and securities law. Having a knowledge of the intricacy of tax laws can be an advantage. Without this kind of knowledge, the client will be missing out on vital knowledge that could make the difference.

Tax Law is a companion to other types of law but it is also a distinct legal area all to itself. A person that needs help can seek legal counsel concerning specific tax situations. Having a knowledge of  U.S. tax laws is only part of the solution. Each state also has their own specific laws and practices concerning tax law and that can be a challenge that a tax lawyer can help you with. 

Tax law has become such a specialized area of the law that many law schools have offered separate legal degrees above and beyond the basic law degree. This special degree is called a Master of Laws (LL.M.) in taxation. Many law schools have started llm tax programs in response to the rise in the specialty of a law practice and its higher knowledge requirements.

Tax law is even thought by the court system to be so highly specialized that there is a specific court that only hears tax cases. The U.S. Tax Court only hears cases that concern tax law disputes. Additionally, there is the U.S. Bankruptcy Courts and the Court of Federal Claims and all have jurisdiction in hearing federal tax cases. All this is guided by a separate body of laws which is the Internal Revenue Code. Add to that Treasury Regulations, Revenue Rulings, Revenue Procedures, Technical Advice Memoranda, and Private Letter Rulings.

Having to face the overwhelming tax laws we have in this country without a knowledgeable tax lawyer would be foolish. If you have a tax question or tax problem it's best to seek out a tax lawyer.

Understanding the July 2012 Credit Card Reform in Five Simple Steps

(Photo credit: Wikipedia)

This is a guest post by financial writer Paul Groberts. His post is about big changes going on with financial reform in Australia. 

We’re living in a day and age in which an increasing number of consumers are choosing to liquidate their debt and do away with their credit cards. However, recent developments in local credit card policies and regulations are heralding a new age in the use of plastic. Authorities have had the credit card reform in the making for quite some time and it eventually came into force on July 1, 2012. Official information on the precise prescriptions and implications on the reform can be easily accessed online, at BankingReforms.gov.au. However, no matter how clear-cut and straightforward it all may appear there, further explanations are always in order and welcome, for the day-to-day credit card user. If you want to learn what this recent development entails and how it will affect you, the regular holder of a banking credit card, read on, to understand the reform in three simple points.

First off, the much-touted reform is essentially geared at improving handling conditions and transparency on the part of the end-user. This means that the key fact sheet you receive when you sign up for a new credit card will have to use a standard format, making essential information easier to follow, grasp and understand. No more fine-print, no more tricky wording, in a nutshell.

Secondly, there are major changes afoot with respect to going over your credit card limit. Specifically, the lending institution will have to receive your expressed agreement on being charged a fee for over-limit services. What is more, the bank or financial service provider will be mandated by law from now on to inform you when you surpass your credit limit. At that point, you will be presented with two options: either continue to use the card or pay off a part of the debt first.

The third point is perhaps the most hotly debated, since it refers to direct repayments. According to the new rules, these will be directed to the most expensive part of your credit card debt. The Government website states that this will make it easier for users to reduce their debt and it will allow them to do so at a speedier pace. It’s worth noting that this particular rule strictly applies to new users, who have had their cards issued post-July 1. Check the issuing date on your card, to make sure whether or not this applies to you as well.

Fourth on the list, control over the credit limit has now been entirely turned over to the user. You can decide for yourself what that limit is and then inform the bank of it. We searched for various types of credit cards online, in order to understand this change and ran an online comparison on those types at BankWest.com.au (http://www.bankwest.com.au/personal/credit-cards/compare-credit-cards). What has changed since July 1, is that providers now have to inform you of the exact workings of their interest-free initial offer, making the whole process of signing up for a credit card much more transparent and unpleasant surprise-free down the line.

Finally, one of the most welcome changes in credit card regulations refer to one’s monthly statements. From now on, these statements will include the period of time required to repay your current debt, if you only continue to make minimum payments. The main consequence of this change is that you’ll have an easier time planning your debt reduction, as well as balancing the rest of your expenses.

All in all, credit card ownership seems to have gotten a whole lot more user-friendly and easier to handle. As with anything, transparency and clarity are surefire ways to improve on an existing situation. Besides, since credit is one of the fueling forces of any economy, this might just spell better times for Australia’s personal finance sector.

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What Can Credit Repair Services Do For You?

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In today's world your credit report is so integral to your financial life. It used to be that your credit report was only used to see if you credit worthy to take on new debt. Today, your credit report is reviewed when you sign up for car insurance. If your credit report is bad you will definitely pay a higher rate on your car insurance. When you sign a lease for a new apartment or start a new cell phone plan, your credit is checked and if it is bad you will be denied your apartment lease or new cell phone plan.

If your credit is bad, is it possible for someone do credit repair on your report? There are many companies who can help you fix your credit report and improve it for you. 

Most people think that magically you can just remove the negative items. No one can erase negative information if it’s accurate. Only incorrect information can be removed. Accurate information stays on your record for 7 years from the time it’s reported (10 years for bankruptcy). Even information about bills you fell behind on but now are paid will remain on your report for these time periods.

Remember only incorrect entries in your credit report can be removed. If you have legitimate negative marks on your report, the only thing that will remove them is settling with those creditors. After that's done the settlement will be reflected on your report. In time your credit score will climb to a more appropriate level.

By law you have the right to dispute inaccurate, misleading, biased, incomplete, unverifiable, and questionable listings on your credit report. With a little time and energy you can work on getting these blemishes off your credit report. If it is too time consuming or confusing for you to do the credit repair yourself there are good companies that can do it for you.