Tax Crimes - Is the IRS Coming to Get You? Lance Wallach, expert witness.

People who have money in other countries are a target of the IRS. I get a lot of phone calls with people who have these problems. 419, 412i, hiding money offshore etc. The IRS may be looking for you if you had anything to do with this. Tax crime attacks by the IRS are up almost 50% so you need to be careful. Last year IRS raided the offices of Benistar, Grist Mill Trust, Nova with about 50 agents and took all the files. If you did business with them the IRS will probably come to you.

The numbers are out and they aren’t good for people convicted of tax crimes. While the U.S. Department of Justice Tax Division has always enjoyed a very high conviction rate, many people convicted of tax crimes never went to jail. Not anymore. In 2001, the average tax offender received a sentence of 18 months. Now those sentences average 25 months.

The statistics are a bit misleading because a decade ago, half the people convicted never went to jail. The average sentence may have been 18 months but many folks got house arrest while others received sentences of several years. Now, those convicted are probably going to jail. In other words, not only has the average sentence increased but also so has the likelihood of receiving a prison sentence.

Sentences in federal criminal cases are governed by the United States Sentencing Guidelines. Although no longer binding on judges, they are the court’s starting point and most judges’ stay within guidelines.

The sentencing guidelines attempt to account for a wide range of factors including one’s criminal history, whether the defendant used “sophisticated means” to carry out the crime and whether the defendant took early acceptance of responsibility for his or her actions. For tax cases, the guidelines also look at “relevant conduct” tax loss. The higher the tax loss, the longer the recommended sentence.

The current guidelines impose suggest stiff penalties for tax crimes and many judges now believe that house arrest is not a strong enough deterrent to insure voluntary compliance.

What does this mean for people with tax problems? Plenty.

First, if you know you have a problem, don’t bury your hand in the sand. The IRS operates on a “first contact” basis. That means if you come clean before you are caught, criminal penalties can generally be avoided.

Second, if you are indicted and convicted, it pays to have a lawyer with extensive federal criminal tax appearance. Adjustments to the sentencing guideline calculations often can mean the difference between prison and freedom. Although there are many good lawyers that can negotiate a fair plea agreement, the final sentence is up to the court. Mastery of the federal sentencing guidelines and the thousands of court cases interpreting those guidelines separates great criminal tax lawyers from the rest of the pack.

As an expert witness Lance Wallach's side has never lost a case. People need to be careful of 419 Welfare Benefit Plans, 412i plans, Section 79 plans and Captive Insurance Plans. Most of these plans are sold by insurance agents. If you are in an abusive, listed or similar transaction plan you need to file under IRS 6707a. The participant files form 8886, and the salesmen or accountant who signs the tax returns files form 8918 if they got paid over $10,000. They are called Material Advisors and face a minimum $100,000 fine. Some plans are offshore which could involve FBAR or OVDI filings. If you have money overseas you probably need to file for IRS tax amnesty. If you want to reduce the tax we suggest that you first file and then opt out. For more information Google Lance Wallach.

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

4 Things to Think about Before Subleasing your Commercial Space

Why Subleasing Complicates Your Liability

Leasing part of your space can be a great way to make a little extra money for space you are not using.  It helps pay the rent, complimentary businesses could lead to referrals, and it could lead to great personal or professional relationships.  However, you could be putting you and your business at risk.  

Here are some liability points to consider:

Your Landlord Doesn't Care if Its the Sub-lessors' Fault

1. Your agreement between you and the landlord are between the land lord and you.  Unless the person subleasing is specifically named in the lease, the landlord is not responsible for any agreed terms to the subleased entity.

Create your own lease (with help from legal counsel) between yourself and the tenant just as if you were the landlord.  Require in the lease that the sub-lessor has at least as much insurance as you have.  A waiver of subrogation saying that you are going to take care of your stuff and they are responsible for their stuff is a great standard clause to add.  

Beware of subleasing - Picture by Josh Ulfers

Your Insurance Company Doesn't Care if its the Sub-Lessors' Fault

2. You need to tell the insurance company that you are subleasing space.  The entity you sublease to should have its own insurance and name you as an Additional Insured.  By doing that you gain protection on the sub-lessors policy if the sub-lessor has a claim that is his fault.  Without the sub-lessor having his own policy, your insurance company could even deny a claim stemming from an action from your sub-lessor.

Your Business Income Doesn't Include Rental Income

3. Making $5,000/month from leasing part of your space?  If business income from renting isn't explicitly added to your policy, then you won't be paid for that income in case of a covered loss.  It's inexpensive, but often overlooked on most business owner policies.

You Could be in Violation of your Lease
4. Make sure that your lease doesn't have a clause that prohibits sub-leasing.  In most cases it is best to talk with your landlord before making any subleasing decisions.  Violating your lease could put you in jeopardy of eviction or hefty penalties.

Talk to your landlord, commercial real estate broker, and your insurance agent before making any subleasing arrangements.

This blog article is not a substitute for professional legal advice. This answer does not create an insurance agent-client relationship, nor is it a solicitation to offer legal/insurance advice. If you ignore this warning and convey confidential information in a private message or comment, there is no duty to keep that information confidential or forego representation adverse to your interests. Seek the advice of a licensed insurance agent in the appropriate jurisdiction before taking any action that may affect your rights.  

UK Car Insurance - The Top 10 Cheapest Cars To Insure

The cheapest cars to insure

The type of car you drive is likely to have a big effect on the price of your car insurance – find out which cars are the cheapest to insure and why There is no definitive cheapest car insurance in the UK, so finding the best deal depends on a range of factors – namely, the vehicle. While common sense tells us it costs less to insure a Fiesta than a Ferrari, the value of your vehicle isn’t the only factor involved in determining car insurance cost – scroll down to see ten of the cheapest cars to insure:

1. Chevrolet Spark
Cheap to buy and decent for safety, the Chevrolet Spark makes up for what it lacks in performance with its cheap car insurance rate.

2. Citroen C1
The C1 is cheap to run, while servicing costs are also reasonable. Some Citroën deals also come with one year’s free insurance to appeal to young drivers and first-time car buyers.

3. Fiat Panda
Boasting a super-efficient engine, the pocket-sized Panda is a practical city car with low running costs across all models.

4. Vauxhall Corsa Hatchback
Popular with young drivers for well over a decade, the Corsa is a sensible and reliable supermini – all models from 2006 onwards appear in car insurance group 1.

5. Volkswagen Fox and Up
Originally designed as a Brazilian city car, the Fox is cheap to run and offers good fuel economy. Its successor, the Up, won What Car? ‘Car of the Year’ for 2012.

6. Ford Fiesta and Ka
The new Ford Fiesta is officially the UK’s best-selling car, and both the Fiesta and Ka can be found in car insurance group 2, making them the cheapest Ford cars to insure.

7. Nissan Pixo
A collaboration between Nissan and fellow Japanese manufacturer Suzuki, the Pixo is cheap to buy and comes with extremely low running costs.

8. Peugeot Partner Tepee 
The Partner Tepee is a compact and durable people carrier that’s only slightly bigger than an average hatchback. Maintenance costs are low and it generally only needs servicing every two years.

9. Skoda Fabia Hatchback and Estate
Part of the Volkswagen group, the Fabia Hatchback and Estate are both in car insurance group 2 as a result of their low prices and solid engineering.

10. Smart Fortwo Coupe and Cabriolet
Smart cars are renowned for being able to squeeze into tight spaces and are often attract cheap car insurance, though servicing and parts can be expensive.

Car insurance groups – how do they work?

Every car on the market belongs to one of 50 car insurance groups set by the Group Rating Panel (members of the Association of British Insurers and the Lloyds Market Association).
Typically, the lower a car’s group number, the cheaper it will to be to insure – for example, cars within groups 1-5 are far more likely to attract the cheapest car insurance. Insurers can also use their own grouping system if they want.
When the panel decides on which car insurance groups to assign cars to they look at:

• Car performance: the car’s acceleration and top speed
• Car security: what security features the car has
• Cost of parts: the cost of 23 of the most common parts
• Maintenance: how much and how long the car takes to fix
• Car value: the price of the car as new

West Virginia Car Insurance

West Virginia Car Insurance: Simple WV Auto Insurance Guide

It is mandatory for car owners to have car insurance in the state of West Virginia. You also need to carry a proof of car insurance while driving in WV. The Tort system is followed in the state of West Virginia, which means that the driver of the car is financially responsible for damage to property and injuries caused to any other party due to his/her negligence or fault.

The minimum liability coverage required to satisfy this responsibility is often referred to as 20/40/10: $20,000 to cover the expenses for bodily injuries per individual, $40,000 to cover for bodily injuries caused to all, and $10,000 to cover for property damage to the victim.

A minimum Uninsured/Underinsured Motorist coverage of $25,000 per individual to a total of $50,000 per accident for bodily injuries caused by an uninsured/underinsured driver's negligence is also required in West Virginia.

If you require further information on WV auto insurance policies, you can contact West Virginia Offices of the Insurance Commissioner by calling 1-888-TRY-WVIC or by visiting their website at http://www.wvinsurance.gov.

It is recommended to first get free quotes to see what’s available to you before you select and purchase a policy. A car insurance policy is something which every driver needs. Car drivers also want the premiums to be affordable. Therefore, we have a complied an easy to follow tips to get cheap insurance quotes in the state of West Virginia.

Credit Score

You can get cheap insurance quotes from car insurance companies by keeping your credit history clean. Insurance companies decide the rate of your policy by checking your credit history. This is available via credit scoring agency who provide this data to most financial institutions. If your history is not satisfactory, it is recommended you find companies that do not resort to credit checks.

Driving Courses

You can get cheap insurance quotes by taking driving courses. Insurance companies believe that drivers who have taken a specialized driving course, such as defensive driving are safe drivers and less likely to get into an accident.

Combine Car and Home Policies

You can obtain a discount by buying your home and car insurance from the same company. A 5-20% discount is offered for a combined policy.

Security System In your Car

Cars insurance companies offer discounts on cars that are less likely to be stolen. Many pay more for their auto insurance simply because the car module they drive is on the top stolen vehicles in their states or in U.S.

Comprehensive Storage Cover

It is recommended to keep just the comprehensive coverage if you’re not planning to use your car for a long time. If a car is not used often, it will not need liability coverage, as it is less likely to get into an accident.

Location and Miles Per Year

Your address is an important factor in on your insurance rate will be. If you live in an area when low crime rate, you can get your a cheap insurance quote. It is also recommended that you move near your workplace or college/school to reduce the mileage of the car. Cars that have ‘traveled less’ are given discounts by insurance companies.

Virginia Car Insurance

Virginia Car Insurance: Residents Guide to State Requirements

Car insurance is mandatory in all states by law, but the requirements of auto insurance differ in each state. Virginia has its own unique requirements for car insurance. A driver new to the state must educate himself about specific laws to avoid getting into trouble with the authorities. Once you know about specific car insurance requirements of Virginia state law, you can buy the best coverage according to your needs.

The tort system that the state of Virginia follows requires that someone must be at fault of causing the accident, and the responsible party must pay for all the damages.

All drivers need to carry a minimum amount of liability insurance. Liability is one of two types of insurance; bodily injury liability and property damage liability. The bodily injury liability includes the medical bills of drivers who may get injured or killed in vehicle accident. In case the matter goes to court, then bodily injury liability also includes the legal expenses and compensation for the affected victims.

Property damage liability is the insurance that you need to pay for the repairs of your victim's vehicle. However, this liability may also include other property that gets damaged during the accident, such as houses or fences.

The state of Virginia has set the minimum amount for bodily injury liability as $25,000 with an upper limit of $50,000. Minimum property damage liability is $20,000.

The basic coverage is referred to as 25/50/20 coverage with 25/50 UM limits.

Unlike most states, Virginia state requires all of its drivers to have uninsured motorist coverage. This coverage protects drivers against the huge costs that one would have to incur in the case of an accident with an uninsured driver.

The minimum amount for both bodily injury and property damage liabilities are the same as usual insurance.

These are the basic requirements of law in Virginia. You can also opt for more comprehensive coverage to insure yourself and your vehicle.

You can also purchase medical and funeral expense benefits for up to $2000 per person. Loss of income benefits can be bought for up to $100 per week for a maximum period of a year.

For more information regarding VA auto insurance policies, you may contact the Virginia Bureau of Insurance in Richmond by calling 804-371-9741or by visiting their website at http://www.scc.virginia.gov/boi .

Vermont Car Insurance

Vermont Car Insurance: Simple Guide to VT Car Insurance Requirements

The traffic laws of Vermont require all drivers to have car insurance, as it is the case with other states in the US. However, getting good and affordable car insurance in Vermont can be a difficult task. But first, drivers need to comply with basic insurance legal requirement.

Vermont minimum legal auto insurance coverage should meet the following requirements:

• Bodily injury liability: 25,000 for single individual injury / 50,000 for additional individual injuries.
• Property damage liability: 10,000 to cover property damage
• Uninsured/Underinsured bodily damage liability: 50,000 for single underinsured individual injury / 100,000 for additional uninsured bodily injury.

More details on VT auto insurance policies can be found on the website of the Vermont Department of Banking, Insurance, Securities and Health Care Administration at their website http://www.dfr.vermont.gov or by contacting their Montpelier office on 802-828-330.

There are a plenty of car insurance companies in Vermont and each of these companies, which are registered under the Vermont's Insurance Regulator, offer different quotes. There are roughly about 99 state insurance companies in Vermont.

Many drivers debate whether they should opt for insurance from a State Insurance Company or a National Insurance company. It is better to have insurance from a state insurance company because not all insurance companies are authorized to operate in all states. So if you opt for insurance from a national company, you have to be sure it is licensed in your state.

The premium rates vary from company to company in Vermont. This is mainly because insurance companies in Vermont have a different set of rates and different types of drivers in the state. Some car insurance companies have their focus on immature and inexperienced drivers, whereas other insurance companies in Vermont focus mainly on mature, experienced drivers.

Like most other states of the USA, in Vermont, the cost of the premium is high if you age is under below 25. If you have a bad driving record, your premium rate is likely to increase as well. If you have a good security system installed in your car like GPS, safety brake locks or air bags, you would get a discount on your premiums.

In Vermont, if you are looking for cheap car insurance, the first thing you need to do is to get as many insurance quotes as possible. When you get the quotes, compare them and select the one that best suits your needs. But before buying insurance, you must ask you insurer how you can reduce your rates without having to compromise on coverage. If you fail to research the insurance quotes, you could be losing out on the cheapest auto insurance coverage available for your needs.

The cheapest auto insurance you purchase should have the basic minimum liability coverage for bodily injury and property damage. But you can add coverage to your basic insurance such as collision coverage, comprehensive coverage, and rental reimbursement coverage, underinsured and uninsured coverage.

Tennessee Car Insurance

Tennessee Car Insurance: Quick Guide to Auto Insurance Coverage in TN

One of the most convenient ways to get cheap car insurance in Tennessee is by buying the state's minimum auto insurance requirements, which is also referred to as "liability coverage". In Tennessee, the minimum insurance requirements are:

• $10,000 for Property Damage Liability.
• $25,000 for Bodily Injury Liability per person.
• $50,000 for Bodily Injury Liability per accident.

You can upgrade to a full coverage insurance policy when you feel the need to do so.

More details on TN aut insurance policies are available by contacting the Tennessee Department of Commerce and Insurance located in Nashville on 1-615-741-2241 or by visiting their website at http://tn.gov/commerce/insurance/index.shtml.

Getting car insurance in Tennessee is not at all a daunting task. However, it will be beneficial for you to be aware of the ways in which you can get cheap car insurance in Tennessee. Some of the ways are as follows:

Use your car less frequently. The distance you drive on a daily basis can affect your insurance rates. Statistics indicate that high annual mileage implies more chances of being involved in an accident. The more mileage your car covers, the higher your insurance rates. If your car covers more than 12,000 miles per year, you may have to pay high premiums as insurance companies can assume that your car faces heavier traffic conditions on a regular basis and is more likely to get into an accident. Therefore, it is recommended that you consider going to work using a public transport vehicle at least twice a week. By doing this, you can get cheap car insurance in Tennessee.

Bundle your insurance needs. Your car insurance company will regard you as a reliable customer only if they are convinced that you can organize payments for your policy in an efficient manner. It is advised that you consider purchasing your home and car insurance from the same company in Tennessee. This way, you can get attractive discounts on your car insurance premium.

You may also prefer purchasing an annual policy rather than buying coverage for monthly or shorter period. This way, you will be able to get a cheap insurance rate that will remain unchanged for an entire year.

Opting for higher deductibles on comprehensive and collision insurance policies will reduce you premium because insurance providers in effect share some of the cost of the end customer in case of an accident.

Prove your trustworthiness. Car insurance companies in Tennessee want you to make your payments on time. Hence, if you have a good credit history and have never defaulted in making payments to your creditors, you can show it to your car insurer. Insurance companies value good credit histories, and you may have to pay less on premiums. If you have defaulted in making payments to your creditors, it is advised that you clear up any errors on your credit before buying car insurance in Tennessee.