Our attorneys have composed articles of interest concerning common issues -- bankruptcy , criminal , divorce , estate planning, taxes ,and social security disability.
Criminal
Nothing can be more traumatic and cause more upheaval in a person's life than being arrested and charged with a crime or crimes. Imprisonment and/or massive fines could have drastic and permanent effects. Other sanctions, such as the loss of a driver's license, may also be devastating to a person's future and finances. Needless to say, this is a situation no one should go through without first contacting an attorney. We can help you during this process.
Individuals charged with DWI or DUI (driving while intoxicated) will have their driver's licenses suspended 30 days after they are arrested. This is not done after a conviction, but within 30 days of their arrest. A person only has 7 days from an arrest to seek a hearing to avoid a license suspension or request a work permit. Invariably people do not know this until it is too late. There are many factors and issues that can go into the suspension of a driver's license. Individuals facing this are encouraged to contact an attorney immediately.
Other charges carry far reaching consequences that may last longer than fines or imprisonment. Charges of Domestic Battery are routinely used in divorce court to determine custody. Individuals charged with crimes involving children can be placed on lists or "registries" that could, in the future, keep them from being employed in many vocations. Convictions for felony offenses effect one's ability to vote and own firearms, regardless of the nature of the crime. Charges such as possession of a controlled substance (even a misdemeanor), minor in possession of alcohol, and even failures to appear can also result in the suspension of a driver's license.
People often make mistakes and commit violations of the law. The effects may be life altering. They may not have to be. Many times people are allowed to enter into programs that will defer the severe results discussed here. There are methods whereby people can avoid having a conviction for a criminal offense follow them on a permanent record. Consulting with and using an attorney who is familiar with these programs is imperative.
Gene A. Franco handles all the criminal cases in our law firm. To set up an appointment, please call 479-750-4444.
Divorce
The word "divorce" strikes fear in the hearts of most people. Apprehension about effects on children, custody determination, and financial security are commonplace. Needless to say, there will be few occurrences in a person's life that will cause more disruption than a divorce. Some peace of mind can be found in concrete answers to the many questions that arise when faced with this life changing event.
There are several requirements that must be met before a divorce can be finalized. A person must be a resident of Arkansas and the County where the divorce is filed for at least 60 days prior to initiating a divorce. A divorce cannot be granted for a period of at least 30 days after the process has been started by the filing of a complaint for divorce. To be granted a divorce, the requesting party must prove that he or she has grounds for the divorce. A "no-fault" divorce is not an option in Arkansas. Further, "Irreconcilable differences" is not a ground for divorce in this State. Domestic relations laws require proof of such grounds as adultery, physical abuse, or the commission of general indignities by a party to the marriage. (General indignities can most easily be defined as mental abuse). There are many ways of proving grounds for divorce, but in Arkansas, they must be shown.
Other issues in divorce cases include child custody and visitation, property division, financial support for spouses and children, and the payment of debts incurred during the marriage. It is generally these topics that cause people to have the most dread when contemplating a divorce and for which people want the most information. The ultimate outcome on any one of these topics can never be predicted from the outset of a divorce proceeding. There are many facts and issues a court will look to in deciding where children will live, who gets what items of property, how much support a spouse or parent will get and so on. Once an attorney who is experienced in handling domestic matters delves into the specific facts of any given case and applies those facts to the laws governing divorces, he can give a client information and responses that, while maybe not making the person happy, will let him or her know where they stand.
The "unknown" is what causes fear in any situation. An attorney who is experienced in matters of domestic relations and who routinely keeps abreast of current changes or updates in the law and follows the rulings of appellate courts can help explain the unknown to clients. Attorneys in this office strive to keep up with changes in the law and by focusing their practices primarily in this field, they can help their clients through this difficult and frightening time in their lives.
Gene A. Franco handles all the divorce/child support cases in our law firm. To set up an appointment, please call 479-750-4444.
Estate Planning
If you do nothing, you will have no say in what happens to your home, your belongings or your minor children in the event of your passing. By having a Will prepared, you can nominate a guardian for your minor children, designate who is to receive your assets, and simplify the probate process for your surviving family. Your Will can also create a trust for your minor children, as well as allowing you to set forth the terms of the trust and who will be the trustee over the trust.
A trust is a legal arrangement through which assets are managed by a trustee for a specific purpose. If you have assets totaling more than the federal tax exemption (currently $2,000,000.00), you need additional estate planning, which likely will include the creation of a Trust. A Trust, however, can also be helpful for anyone with assets totaling more than $100,000.00. Trusts can be either revocable or irrevocable, and they can provide benefits such as avoiding probate, caring for a special needs child, managing your assets in the event of your incapacity and managing your assets for an extended time after your passing. In most cases, you will be the Trustee of your own Trust, as well as appointing a Successor Trustee to assume those duties in the event of your incapacity or death.
Everyone should contact an attorney to discuss what manner of estate planning will benefit their family and them most, whether it be a Will or a Trust.
James Hatcher handles all the estate planning matters in our firm. To set up an appointment, please call 479-750-4444.
What's New at the IRS for 2006
Telephone Tax Refund
The telephone tax refund is a one-time payment available on your 2006 federal income tax return, designed to refund federal excise taxes collected between February 28, 2003 and August 1, 2006, on long-distance or bundled service. It is available to anyone who paid such taxes on landline, wireless, or Voice over Internet Protocol (VOIP) service.
Individual taxpayers can take a standard amount based on the number of exemptions claimed on their 2006 tax return. For those who can claim one exemption, the standard refund amount is $30; for two exemptions, the standard refund amount is $40; for three exemptions, the standard refund amount is $50; and for your exemptions or more, the standard refund amount is $60.
The standard amount may be claimed on Line 71 for Form 1040; Line 42 for Form 1040A; Line 9 for 1040EZ; Line 69 for Form 1040NR; and Line 21 for Form 1040NR-EZ.
Exemption Amount Increased
The amount you can deduct for each exemption has increased from $3,200 in 2005 to $3,300 in 2006, but you may lose part of the benefit of your exemptions if your adjusted gross income is above a certain amount. For married persons filing separately, that amount is $112,875; for single individuals, the amount is $150,500; for heads of households the amount is $188,150; and for married persons filing jointly, the amount is $225,750.
Standard Deduction Amount Increased
The standard deduction for taxpayers who do not itemize deductions on Schedule A of Form 1040 is, in most cases, higher for 2006. For heads of household, the standard deduction is $7,550; for married taxpayers filing jointly and qualifying widow(er)s, the standard deduction is $10,300; for married taxpayers filing separately, the standard deduction is $5,150;and for single taxpayers, the standard deduction is $5,150.
Limit on Itemized Deductions Increases
If your adjusted gross income is above a certain amount, you may lose part of your itemized deductions. In 2006, this amount is increased to $150,500 ($75,250 if married filing separately).
Earned Income for Additional Child Tax Credit
For 2006, the minimum earned income amount used to figure the additional child tax credit has increased to $11,300.
Restrictions on Charitable Contributions
All cash contributions made in tax years beginning after August 17, 2006, to any qualified charity must be supported by a dated bank record or a dated receipt. The tax year for most individual taxpayers begins on January 1.
Beginning with contributions made after August 17, 2006, no deduction is allowed for most contributions of clothing and household items unless the donated property is in good used condition or better.
Earned Income Credit Amount Increases
The maximum amount of income you can earn and still get the credit is higher for 2006. You might qualify for the credit if you have more than one qualifying child and you earn less than $36,348 ($38,348 if married filing jointly); you have one qualifying child and you earn less than $32,001 ($34,001 if married filing jointly); or you do not have a qualifying child and you earn less than $12,120 ($14,120 if married filing jointly). The maximum amount of investment income you can have in 2006 and still get the credit increases to $2,800.
Electric and Alternative Motor Vehicles
For 2006, the list of vehicles that are qualified hybrid vehicles for the Alternative Motor Vehicle Credit has been expanded. The tax credit for hybrid vehicles applies for vehicles purchased on or after January 1, 2006, and could be as much as $3,400 for those who purchase the most fuel-efficient vehicles.
Social Security and Medicare Taxes
For 2006, the employer and employee will continue to pay 6.2% each for social security tax (old-age, survivors, and disability insurance), and 1.45% each for Medicare tax (hospital insurance). For social security tax, the maximum amount of 2006 wages subject to the tax has increased from $90,000 to $94,200. For Medicare tax, all covered 2006 wages are subject to the tax.
Standard Mileage Rates
For tax years beginning in 2006, the allowable deductions for the standard mileage rate for business is 44.5 cents per mile; for charitable services is 14 cents per mile; for Hurricane relief services is 32 cents per mile; for medical reasons and moving is 18 cents per mile.
Tuition and Fees Deduction
You may be able to deduct qualified tuition and fees paid during the year for yourself, your spouse, or your dependent. This provision, which had expired for tax years after 2005, has been extended through tax year 2007.
These new principals and rules are general in nature and may not apply to you. Check with your tax advisor to determine how to properly determine and file your taxes.
Bankruptcy Law Changes
Arkansans with incomes above $28,949 or $37,178 if two wage earners will have to file a Chapter 13 Bankruptcy. All filers will have to submit a copy of last years tax return and will have to have completed credit counseling from a federally approved credit counselor before their debts are discharged. Persons with incomes less than $28,949 (single) or $37,178 (two wage earners) will still be able to file Chapter 7. Chapter 13 will be more difficult. Debtors will be told what expenses and amounts are allowed. Actual expense costs will be irrelevant. The automatic stay will no longer stop evictions, lawsuits for paternity or child support; divorces; or actions to withhold or suspend driver's or professional licenses. The costs of filing are expected to increase as attorneys will now have to investigate all expense allegations of their clients
Social Security Disability Eligibility Process
Two types of federal Social Security disability programs exist -- Social Security Disability (SSD) and Supplemental Security Income (SSI). The former requires someone to be "insured" under eligibility guidelines, meaning that he or she must have worked a certain number of "quarters" over a period of time to qualify. SSI guidelines don't require the "insured" status but one must be disabled and meet income and asset guidelines.
The process begins with an application submitted to the Social Security Disability Determination Office through a local Social Security branch. If one is working at the time, a determination is made whether or not the work constitutes "substantial gainful employment". If it does not, a review of one's medical condition is made. If the condition is considered "severe", which is defined as "significantly limiting one's basic work and daily activities", it is examined to see if it is included on the Listing of Impairments. If it is not on the "list", it is examined, with evidence provided by the applicant's medical providers, to determine if it meets or equals a condition found on the list. If it does, a determination is made to see if the applicant can still do the work in which he or she formerly engaged. If not, the applicant's age, level of education, skills and past work experience is reviewed to determine if there are any jobs in the national economy available to the applicant.
The process can take up to six months for the initial determination. If denied, the applicant can request a Reconsideration, essentially a paper review of the initial application. If the Reconsideration is denied, the applicant can request a hearing before an Administrative Law Judge (ALJ), where additional evidence, including testimony from the applicant, can be submitted. If the ALJ rules against the applicant, an appeal can be made to the Appeals Council and ultimately to Federal District Court.
