Law Office of Robert L. Firth - April 2020

Law Office of Robert L. Firth - April 2020

Tips and Tricks for Filing Your Taxes Don’t Let the IRS Get the Better of You FirthLaw.com 760-770-4066 APRIL 2020

April 15 will be soon upon us, which means it’s time for our annual reckoning with the taxman. This time of year can be stressful for anyone, and even the slightest hiccup in your taxes can cause your anxiety to go through the roof. To prevent your heart rate from spiking, here are some pointers to keep in mind as the day approaches. 1. You are responsible for the contents of your tax return. I once had a bankruptcy client give me a copy of their joint tax returns per the rules of the bankruptcy code so I could pass them along to the trustee. As I reviewed the document, I asked the couple about the person who prepared the tax return, and they informed me that it was the first time they used this particular preparer. During their first meeting, the preparer asked the couple if it would be okay to be very aggressive with their tax return. Hoping to save money they said yes. I then asked them whether they realized they sold a business that gave them a $150,000 loss. This came as a surprise to the couple because they never owned a business — it was fictional and created by the tax preparer to reduce their taxes. If the IRS had caught the mistake, they would no doubt have been prosecuted for tax fraud, which would’ve entitled them to an all-expense-paid vacation to “Club Fed” for five years. I told them to find a legitimate tax preparer to file an amended return to remove that bogus tax loss and hope the IRS doesn’t come knocking on the door. Fortunately, it didn’t. The moral of the story is that you are the person responsible for the contents of your tax return. When you sign the tax return, the IRS holds you solely responsible for what’s in it and you’re subject to the laws of tax fraud. It’s not considered an adequate defense to say, “A tax preparer did it, and I just signed the return.” It’s your duty to review the returns and question the tax preparer on anything that doesn’t seem right to you. 2. File your return and send a check. I never file my returns electronically because I’ve heard too many stories of them getting lost. My preferred method is to mail the return, along with a check for what I owe. But as a self-employed lawyer, I always owe something. If you don’t have the money to pay the taxes owed on your return, my advice is twofold. First, mail the return anyway because the penalties for failing to file on time can be Draconian. It’s better to file the return with no payment and be subject to the interest on the amount you owe rather than the penalties you could incur by not filing. Second, give the IRS a check for something, even if it’s $10. When the IRS cashes the check, you will have proof they have received your return. Once again, I have had

clients tell me the IRS denied receiving the return even though the client is sure it was mailed. The canceled check is your proof the IRS got the return, and it works better than sending it with a postcard return receipt requested. The IRS can, and has, taken the position that these envelopes were empty. Maybe they were, or maybe they weren’t. So, it’s best to have proof in the form of your canceled check. 3. The IRS can be very accommodating when working out payment plans. When you file, you can include a request for a payment plan, which will set you ahead of the curve. This way, you will limit any additional penalties, and you’ll be able to set up a reasonable plan to pay your taxes. 4. If you have to decide whether to pay the IRS or the Franchise Tax Board, I recommend the FTB. The IRS will work with you to get your taxes paid, but the Franchise Tax Board tends to levy first and ask questions later. There is nothing worse than getting that call from the bank to discover that the Franchise Tax Board has taken all the money out of your bank accounts due to alleged unpaid taxes. In closing, have a happy April 15, and if you can’t get your return done on time, at least file the extension! -Robert L. Firth Helping clients with bankruptcy, estate planning, and tax resolution.

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SOMETHING IN THE WATER WHY ROB BILOTT TOOK ON DUPONT

property provided water for all the cattle and wildlife in the area. Since the sale, the stream had become frothy and discolored, and the animals that drank from it were sick, malformed, or dead, including 153 of Tennant’s 200 cows. When Bilott stumbled upon a letter from DuPont to the Environmental Protection Agency (EPA), the real horror story began to emerge — one that went far beyond the boundaries of Tennant’s farm and into the drinking water of every American. The letter mentioned a mysterious chemical called PFOA, and Bilott requested documentation from DuPont to find out more about it. However, the company refused, so Bilott requested a court order. Soon, dozens of disorganized boxes filled with thousands of 50-year-old files arrived at Bilott’s firm.

Rob Bilott never should have agreed to represent Wilbur Tennant’s case.

The cattle farmer had presented evidence of the strange malady plaguing his cattle to lawyers, politicians, and veterinarians in Parkersburg, West Virginia, but no one took Tennant’s case seriously.

in the mess of documents, but soon, his time as an environmental lawyer helped him see the bigger picture. It became clear that DuPont had orchestrated a massive cover-up regarding their use of PFOA. PFOA is used in the manufacturing of Teflon, and the company had knowingly exposed workers and the Parkersburg water supply to it. Bilott filed a class-action suit as a medical monitoring claim on behalf of the people of Parkersburg, and, as of 2011, a probable link between PFOA and six health conditions, including two types of cancer, has been found.

But when Bilott saw the evidence for himself, it was clear that something was wrong.

The videos and photographs Tennant had collected showed cattle with patchy fur, growths and lesions, white slime coming from their mouths, and staggering gaits. Tennant told Bilott that the abnormal behavior and physical deformities had started after his brother Jim sold his property to DuPont, a chemical company with a big presence in Parkersburg. Jim’s property bordered on Wilbur’s, and a stream running from Jim’s

He was worried he wouldn’t be able to find anything incriminating or even conclusive Because of the medical monitoring claim, plaintiffs can file personal injury lawsuits against DuPont. So far, 3,535 people have. If it weren’t for Bilott and Tennant, the public might have never known the dangers of PFOA. DOYOUR PART TO KEEP AMERICA BEAUTIFUL And Maintain Green Living Spaces for Everyone

jogging and picking up litter, which takes care of your health and keeps your community clean. Anybody can do it: Just throw on your running shoes, grab a bag, head out the door, and pick up any stray bits of trash you see on your morning jog or evening walk.

to better the place you live in. Here are three ways to show your appreciation for a green America this month.

Have you ever walked through a park and seen a plastic bottle or wrapper lying on the ground? If so, did you pick it up and properly dispose of it? You might not have realized it, but in that moment, you took a small step toward keeping your community — and, by extension, America — beautiful! April is Keep America Beautiful Month, and folks who celebrate aim to help each community in every state stay clean and green. Created by the nonprofit organization Keep America Beautiful, this holiday offers a perfect opportunity to roll up your sleeves and work

VOLUNTEER FOR THE GREAT AMERICAN CLEANUP.

IMPROVE RECYCLING THROUGH EDUCATION.

This event is one of America’s largest community improvement programs, with hundreds of thousands of people

An important goal during Keep America Beautiful Month is to spread awareness about recycling. There are various ways to educate those around you about recycling and encourage them to do their part. At work, for example, you can volunteer to lead a recycling initiative by printing off guides and fostering discussions on why recycling is so essential. At home, you can make a commitment with your family to fulfill the three R’s of recycling: reduce, reuse, recycle. To discover more ways to participate in Keep America Beautiful month, visit their website at KAB.org today!

participating each year. In 2019, over 550,000 volunteers participated in the GAC to bring natural beauty back into their communities. 2020 marks this event’s 22nd year, and you can be a part of it this month! Volunteer your time with a local Keep America Beautiful affiliate or another community improvement program close to home. Do your part to clean up your parks and spread awareness today.

START PLOGGING.

If you’re passionate about staying active and cleaning up your neighborhood, then this is the perfect activity for you! Plogging combines

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TAKE A BREAK

Few things change faster than the internet, and how we connect with the internet is constantly evolving. When it comes to wireless capabilities, fourth-generation (4G) networks have been the norm for 10 years. But 4G couldn’t meet demands forever, and there’s already talk of a fifth-generation (5G) network taking center stage. So, what makes 5G different from 4G, and how will it affect consumers and their internet-enabled devices? Simply put, 5G is the fifth generation of wireless technology that enables mobile devices like cellphones and stationary devices like desktop computers to send and receive >Page 1 Page 2 Page 3 Page 4

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