New Laws Effective Jan. 1, 2012

New Laws Effective Jan. 1, 2012

The following are some of the new laws that take effect Jan. 1, 2012. The asterisk following the bill number denotes the language that became law. BUSINESS AND COMMERCE Insurance claims law modernized Consumer insurance claims statutes written decades ago didn’t include insurance for products that hadn’t been invented such as cell phones and other…

Reemployment Insurance in Minnesota

Reemployment Insurance in Minnesota

This informational post explains the reemployment insurance law, including which employers and types of employment are covered under the law, how employer taxes are calculated, how employee benefits are determined, and how a person qualifies for benefits. Application of the Reemployment Insurance Law This section explains which employers and types of employment are covered by…

Long-term Care Insurance Income Tax Credit

Long-term Care Insurance Income Tax Credit

What is the Long-term Care Insurance Income Tax Credit? The Minnesota long-term care insurance credit offsets the cost of long-term care insurance premiums by providing a credit against state income tax liability. The maximum Minnesota credit is equal to the lesser of $100 or 25 percent of the amount paid for each beneficiary. The maximum…

Kaito Souta Toru Hashimoto Attorney Scam

Kaito Souta Toru Hashimoto Attorney Scam

Recently, our firm has received several emails from someone claiming to be with the Japanese law firm Hashimoto Law Office. Hashimoto Law Office warns on their website that an impostor has been using their name. More scams targeting attorneys From the Hashimoto Law Firm website: ! An Important Notice for all Lawyer Firms in the United…

S Corporation Taxes | Form M8 Instructions

S Corporation Taxes | Form M8 Instructions

Before you complete Form M8, you must complete the following; you will need to reference them: federal Form 1120 Sand supporting schedules, and Schedule KS for each non resident shareholder and to any Minnesota shareholder who has adjustments to income (see page 10). Check Boxes Initial Return If this is the S corporation’s first return…

General Information on the S Corporation M8 Form in Minnesota

General Information on the S Corporation M8 Form in Minnesota

Payments There are four types of tax payments an S corporation can make — extension, estimated tax, tax return and amended return payments. You can pay electronically, by credit or debit card or by check. (See Payment Options above.) Note: If you’re currently paying electronically using the ACH credit method, continue to call your bank…

Senate Approves House Bill Designed to Jumpstart Job Growth (JOBS Act)

Senate Approves House Bill Designed to Jumpstart Job Growth (JOBS Act)

Update: The JOBS Act is now law. Read how the JOBS Act could affect crowdfunding in your business. The U. S. Senate has just approved a bill that reduces regulatory burdens for early-stage companies and small businesses in their capital formation efforts. President Obama had already issued a statement in support of the bill when…

During a Pending Bankruptcy Action, Creditors Must Stop Calling

During a Pending Bankruptcy Action, Creditors Must Stop Calling

Creditors Must Stop Attempting to Collect While a Bankruptcy Action is Pending Most people who ultimately file for bankruptcy first spend a lot of time trying to find another way. A person will cut out unnecessary expenses, review and re-review income and debt, and finally come to the conclusion that there is no way to…

Cautionary Notes on Minneapolis Bankruptcy Filings

Cautionary Notes on Minneapolis Bankruptcy Filings

  Filing for bankruptcy is an extremely personal decision. It can also be a very emotional decision. Filing for bankruptcy may be done by an individual without the help of an attorney, but there are consequences if a mistake is made. Corporations and partnerships are not allowed to file for bankruptcy without an attorney. Important…

Liquidation and Qualification | Chapter 7 Bankruptcy Basics

Liquidation and Qualification | Chapter 7 Bankruptcy Basics

Bankruptcies have become more and more common in today’s economy. There are many types of bankruptcies. You may have heard of Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13 bankruptcy. Those are probably the most common types. Most people who have heard of these types of bankruptcy, however, have no idea what they mean…

Second Bankruptcy: Limitations on Filing Twice

Second Bankruptcy: Limitations on Filing Twice

The United States Bankruptcy Code permits individuals to file for bankruptcy in certain circumstances. The Bankruptcy Code has many provisions and many avenues under which a person or business entity may file a for bankruptcy. Chapters 7, 11, and 13 are the most common. Chapter 12 is probably next in line but is far behind…

Chapter 13 Plans & Trustees | Minnesota Chapter 13 Bankruptcy

Chapter 13 Plans & Trustees | Minnesota Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, the United States Trustee supervises the private trustees who administer Chapter 13 cases. In this chapter, the trustee does not liquidate the debtor’s assets, but instead evaluates the debtor’s financial affairs and makes recommendations to the court regarding the debtor’s proposed repayment plan. Purpose of Chapter 13 Bankruptcy Chapter 13 bankruptcies…

Creation of Bankruptcy and the Role of the Trustee

Creation of Bankruptcy and the Role of the Trustee

The Creation of Bankruptcy Article I, Section 8, of the United States Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Under this grant of authority, Congress enacted the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times…

Chapter 11 Bankruptcy Trustee | Minnesota Bankruptcy Trustee

Chapter 11 Bankruptcy Trustee | Minnesota Bankruptcy Trustee

The Department of Justice and the U.S. Trustee are charged with ensuring the integrity of the bankruptcy system. In order to accomplish this, the U.S. Trustee program may oversee the administration of cases and engage in litigation to enforce compliance with the law. While both individuals and corporations or partnerships are permitted to file bankruptcy…

From the Petition to the End | Minnesota Bankruptcy Procedure

From the Petition to the End | Minnesota Bankruptcy Procedure

A bankruptcy case normally begins by the debtor filing a petition with the bankruptcy court. A petition may be filed by an individual, by a husband and wife together, or by a corporation or other entity. The petition will be filed in accordance with a chapter in the United States Bankruptcy Code. A determination of…

Benefits and Consequences of Filing for Bankruptcy | Minnesota Bankruptcy

Benefits and Consequences of Filing for Bankruptcy | Minnesota Bankruptcy

Minnesota Bankruptcy Pros & Cons Are creditors calling relentlessly? Do your monthly bills for past debt far exceed your monthly ability to pay? Do you lay awake at night trying to figure out what to do? Are you among the many individuals considering bankruptcy in this economy? Who Files for Bankruptcy? If you are considering…

Bankruptcy Discharge: What is a Discharge in Bankruptcy?

Bankruptcy Discharge: What is a Discharge in Bankruptcy?

Discharge in bankruptcy refers to permission to no longer repay certain debts. Certain debts are “dischargeable” in bankruptcy. Credit card debt is dischargeable. Student loans, tax debt, and court ordered child support obligations are not dischargeable through bankruptcy. Purpose of a Discharge The purpose of a discharge is to provide relief from some or all…

Litigation and Appeals in Minnesota Bankruptcy Courts

Litigation and Appeals in Minnesota Bankruptcy Courts

Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court. Bankruptcy cases cannot be filed in state court. Types of Bankruptcy Cases Each bankruptcy court hears a variety of bankruptcy cases. Debtors applying to the bankruptcy courts for financial relief may seek…

Tax Form 8832 Part II. Late Election Relief

Tax Form 8832 Part II. Late Election Relief

Complete Part II only if the entity is requesting late election relief under Rev. Proc. 2009-41. An eligible entity may be eligible for late election relief under Rev. Proc. 2009-41, 2009-39 I.R.B. 439, if each of the following requirements is met. The entity failed to obtain its requested classification as of the date of its…

When To File

When To File

Generally, an election specifying an eligible entity’s classification cannot take effect more than 75 days prior to the date the election is filed, nor can it take effect later than 12 months after the date the election is filed. An eligible entity may be eligible for late election relief in certain circumstances. For more information,…

Effect of Election | Tax Form 8832

Effect of Election | Tax Form 8832

The federal tax treatment of elective changes in classification as described in Regulations section 301.7701-3(g)(1) is summarized as follows: If an eligible entity classified as a partnership elects to be classified as an association, it is deemed that the partnership contributes all of its assets and liabilities to the association in exchange for stock in…

Who Must File Tax Form 8832?

Who Must File Tax Form 8832?

File this form for an eligible entity that is one of the following: A domestic entity electing to be classified as an association taxable as a corporation. A domestic entity electing to change its current classification (even if it is currently classified under the default rule). A foreign entity that has more than one owner,…

Default Rules and Definitions | Tax From 8832

Default Rules and Definitions | Tax From 8832

Default Rules for Tax Form 8832 Existing entity default rule Certain domestic and foreign entities that were in existence before January 1, 1997, and have an established federal tax classification generally do not need to make an election to continue that classification. If an existing entity decides to change its classification, it may do so…