In a previous post, we discussed the basics and legal implications of smart contracts built upon blockchain technologies. These smart contracts are one of the highly touted tools that are set to streamline business. The recent law that formed regulatory sandboxes to promote innovative fintech (financial technology) products portends this State’s promotion of such tools as smart contracts. It is an interesting time to be in the fintech space. Continue reading →
Craven County o/b/o Jessica L. Wooten v. Adel Hageb (No. COA20-442)
Defendant Adel Hageb (“Father”) and Plaintiff Jessica L. Wooten (“Mother”) were never married but were involved in a romantic relationship. Mother gave birth to a child in 2016 and another child in 2017. After it was determined that Adel was the biological father of both children, the court consolidated the two child support cases and ordered Father to provide health insurance coverage for both children and pay Mother $2,554.00 per month in child support. Then, on September 9, 2019, the issue of permanent child support came on for hearing. The court found Father to have a gross income of $19,454.39 per month. Additionally, although two children born of another relationship lived full-time with Father, the court gave Father credit for one child because Father’s name was not listed on the birth certificate of the other child. Father timely appealed. Continue reading →
Spouses who own businesses can often keep a tight lid on finances. This may not be an issue at the onset of marriage, but it means that often, the other spouse is clueless as to how the money is being made. In the unfortunate event of divorce, income becomes a bigger issue when litigating over support and property division. This post is to serve as a primer for two common business entities you may encounter in North Carolina: the C corporation (C corp) and the S corporation (S corp). Continue reading →
The American Rescue Plan Act of 2021 (hereinafter “Plan”), also called the COVID-19 Stimulus Package, was passed by Congress and officially signed into law by President Joe Biden on March 11, 2021. The Plan seeks to aid the economy in recovering from the effects of the COVID-19 pandemic. One significant change the Plan provides for is a new federal enhanced child tax credit beginning July 15, 2021. Statistics show that the credit will go to roughly 39 million households with about 65 million children. For the 2021 tax year, the enhanced maximum child tax credit is $3,600 for children younger than age six (6) and $3,000 for children between the ages of six (6) and seventeen (17).
Henry v. Comm’r, T.C. Memo. 201924, 2019 WL 1385242 (2019)
(a) Facts: Husband and wife married in 1997 and divorced in 2013. While the divorce case was pending, the parties filed a joint income tax return for tax year 2012. The return did not report $14,650 in income earned by the husband from his second job as a church musician.
The IRS assessed a deficiency, which neither party contested. The IRS then seized funds from the wife’s 2014 tax return to satisfy the deficiency. The wife moved for innocent spouse relief. The IRS granted relief but denied the wife a refund. The wife sought review in the Tax Court.
Schorse v. Comm’r, T.C. Memo. 2018176, 2018 WL 5270556 (2018)
(a) Facts: Husband was a computer programmer and wife was a physician. During the marriage, the wife earned 80% to 90% of the parties’ income.
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(a) Facts: A husband and wife married in 2011 and divorced in 2015. During the marriage, the wife earned most of the parties’ income and handled the parties’ finances. She had unpaid federal taxes from before the marriage. The parties had difficulty meeting the mortgage payments on their home, and the husband knew this.
(a) Facts: A woman married a man who ran a struggling air conditioner business. The wife was aware that the business was struggling, as the parties had difficulty paying their bills, but the husband convinced her that a big contract was coming and success was just around the corner. He even convinced her to make a tax-penalized early withdrawal from her 401(k) plan and invest the funds in his business. The wife was abused verbally during the marriage, but not physically.
(a) Facts: A husband and wife filed joint tax returns from 2009 to 2012. The 2011 return reported $170,870 in income for the husband, $30,870 in income for the wife, and $289 in interest income. The parties did not pay the tax reported on the return.
(a) Facts: A husband and wife signed a joint tax return. The IRS assessed a deficiency. Both parties sought relief in the Tax Court.