T.A.L.K.B.O.U.T

Archive for July, 2009

Copyright (c) 2009 Jeffrey Matsen

There is no substitute for creative and well thought out tax strategy followed by the implementation of a very specific and practical plan.

Peter was the President of a small manufacturing company and acted as the General Manager of its operations. His wife, Helen, was the Executive Vice President and was responsible for all of the Company’s financial and administrative matters. Peter had just designed a new mixing machine that was used by the Company to produce low grade urethane foam and had been training plant personnel on the use of the machine. On one occasion, Peter was operating the machine and his sweater sleeve caught on a protruding bolt and his arm was pulled into the machine. As a result, Peter suffered serious injury including a fractured arm, soft tissue lacerations and second and third degree burns. The injury required surgery and the installation of a metal plate in his forearm and it was a likely that Peter would suffer some permanent loss of some use of his arm.

Peter and his corporate counsel then consulted me about the possibility of Peter putting in a claim against the Corporation for damages. The corporate counsel and I recommended that Peter retain a personal injury lawyer to handle his grievance. The personal injury lawyer and the corporate counsel negotiated a six figure settlement, which at the time (1977), was a very substantial amount. I recommended that the Company deduct the settlement payment to Peter as a legitimate income tax expense under Section 162(a) of the Internal Revenue Code and that Peter exclude the receipt of the payment on his income tax return under Section 104(a)(2) as compensation received on account of personal injuries.

The IRS subsequently audited both the Company and Peter and Helen’s personal Tax Returns. They argued that the payment from the Company to Peter was a disguised dividend and, therefore, not deductible by the Company and not excludable from Peter’s income. Peter and the Company vigorously objected to the IRS position and they hired me to fight the battle for them in the US Tax Court.

Of course, the whole position of the IRS was based on the fact that the transaction in question was between a closely held corporation and its President who along with his wife, Helen, were the controlling shareholders. Accordingly, under these facts, Peter and the Company were, obviously, not dealing at arm’s length. This engendered a greater burden on Peter and the Company to show the legitimacy of the transaction. I argued that the Court should compare the actions of Peter and the Company with what would have occurred if the transaction had been between parties who were dealing at arm’s length. Corporations, by definition are independent entities, separate from the owners yet the IRS was treating them as one in the same. If Peter had been an employee of the Company who was not a controlling shareholder and had suffered this injury, he more than likely would have hired an independent attorney to pursue his claim, just as we had recommended that Peter do. The Company’s attorney and Peter’s personal injury attorney negotiated a reasonable settlement just as probably would have happened had Peter been a typical employee with the Company without any ownership interest.

In closing arguments to the Court, I stated that the decision should be based on whether there was a reasonable basis independent of tax considerations for the Company to deduct the settlement payment and for Peter to exclude it as compensation for personal injuries. The fact that Peter was a controlling shareholder of the Corporation should not disqualify him from the reasonableness of receiving a tax free settlement under the law which allows for the Corporation to deduct such settlement payment.

During the final arguments of the case, the IRS attorney finished his closing remarks by stating that the whole transaction was just a manipulated tax saving scheme. My retort was that the obvious inference of the IRS argument was that Peter intentionally stuck his arm in the machine and suffered the grievous injury on purpose. I told the Judge that this would truly be “tax planning with a vengeance”. The Judge acknowledged the absurdity of this notion with a smile.

In any event, the Judge ruled in our favor and Peter and his Company were able to receive a huge income tax benefit. Of course, the moral of the story is that Peter and his Company had the proper tax and legal advice which included a very practical and well thought out plan: 1) the hiring of an independent personal injury lawyer for Peter; 2) the representation of the client by Peter’s personal injury lawyer which was backed up by medical reports; 3) the negotiation by the corporate attorney, reviewing the claim and the medical reports and 4) the action by the Board of Directors of the Company to give effect to the settlement proposal.

Of course, the preparation of a compelling brief to the Tax Court along with a winning trial presentation and closing argument were critical. There is, obviously, no substitute for creative and well thought out tax strategy followed by the implementation of a very specific and practical plan.

If you would like to read more, the citation for the case is Maxwell v Commissioner, United States Tax Court, 9T.C.107 (1990). As an aside, a few weeks after the issuance of the written of opinion by the Tax Court, Time Magazine ran a short article on the case with the implication that the taxpayer had really gotten away with an unbelievable tax dodge and huge tax benefits. I wrote a letter to Editor in reply to the article, more or less, summarizing my closing arguments to the Judge and pointing out that if this really was a tax dodge, it carried a very high price of injury and disability to Peter (my letter was never published). As another aside, the IRS counsel on the case, who is currently in private practice, refers me clients.

Jeffrey R. Matsen of Wealth Strategies Counsel helps people structure their personal and business assets in the best way possible to protect, preserve and transfer them in the most efficient and tax saving manner. For more information go to http://www.wealthstrategiescounsel.com

Article Source:http://www.articlesbase.com/business-articles/savy-lawyer-1084573.html

In the world of professional spray paint booths, quality of finish is the ultimate requirement. A high quality finish calls for a number of prerequisites. The lighting should be bright, focused and there should be no shadows; the enclosure should be airtight with a controllable air exhaust system working with minimum glitch.

Whereas the environment inside paint booths is composed of dense aerosol, the exhaust must be capable to take care of the pollutants. Controllers also must work inside and not be adversely affected by the atmosphere of the paint booth. All this necessitates excellent inlet filters to ensure that the quality of the incoming air is free from pollutants. The outlet filters similarly must trap all pollutants and prevent them from being released into the atmosphere. The booth cabin must have a downdraft airflow, which is positive, under pressure and at the same time, the exhaust system located in the floor must force the excess aerosol from the proximity of the vehicle. This necessitates an excellent management of airflow and control over particulate matter, temperature, pressure and humidity.

Then there is the energy requirement for the precisely controlled heating system with the added conservation criterion of recirculating the bulk of the warm air in the cycle for baking thereby effecting considerable saving in terms of fuel costs. Further, the interior surfaces of the walls must be smooth so that particles do not stick to them. This necessitates the application of anti-static technology in the walls in powder coating booths. The painting operation is thereby efficient and cleaning up is that much easier. Cabins are therefore double walled for complete insulation, strength, and powder coated both inside and outside to enhance maintenance and increase the durability of the finish.

In conclusion, paint booths today should incorporate best of technology to ensure an efficient airflow management system and an excellent contamination control systems ?placed both at the inlet and at outlet.

www.spraytech.com endeavors to be recognized as a trustworthy manufacturer of precision standard spray booths, paint booths, mix rooms, ovens, air make-ups, Powder coating booths and accessories.

Article Source:http://www.articlesbase.com/business-articles/paint-booths-and-finishing-solutions-a-brief-1084656.html

Alicante is the city which is famous for its miles of soft sandy beaches and breathtaking mountain including excellent weather, palm trees and lots of attractive places there. Both the city and the beach are absolutely beautiful. The city itself has a very resort feel to it. With a population of just 300,000 Alicante is a major travel destination for many European tourists. It offers the life style that includes everything you need, but it is small enough to make it easy to get from one place to another. When you decide to visit somewhere then your first priority is hiring a car or other vehicle from the airport to reaching the place either hotel or apartment. In addition hiring a car from Alicante airport is becomes an easy task with Car Hire Alicante Airport for all of you whether you have big amount in your pocket or not. Infact it will ensure you that your dream holiday is an unforgettable experience.
You just have to consider that what size of car you need; number of passengers, luggage, shopping, pets etc. In other words, you’re more likely to come out ahead and ensure availability of the vehicle that you need without having any inconvenience or hassle even the price difference between different models is usually surprisingly small. Basically, Alicante is one of Spain?s largest charter flight airports and car hire desks can be found at the front of the airport. But if you actually want to reduce your stress along with the guarantee while hiring a luxurious car at cheap rates then car hire in Alicante Airport is one of the suitable and convenient options for you.
There are also taxis, hotel busses and limo?s available for transport the airport. But the best option that made your trip convenient in all manners is the Car hire Alicante airport whether visiting the several places like museums, historical buildings, miles of beaches, nearby towns, night entertainment, etc. or the popular Street Markets where you will find just about everything, antiques, fresh fruit and vegetable produce of their particular region, virtual florist and plant garden centres, etc.
No one want to arrive at the airport and have to wait around trying to organize your vehicle consequently for peace of mind it is a good idea to book as far ahead as you possibly can. This is also recommended for those also who are infirmed or traveling as a large group. In order to the same Car hire Alicante airport undoubtedly best option for you and safe as well indeed even if your flight is arrived after the time of arrival at the airport your car will wait for you.
So if you are planning to visit Alicante don?t forget to Car hire Alicante airport and make you visit full of joy.

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Article Source:http://www.articlesbase.com/business-articles/car-hire-alicante-airportensure-about-the-availability-of-a-luxurious-car-1084686.html

Gem Lifestyle is a serious online business for those who want to become extremely succesful online enterpreneurs and be a part of this business opportunity called Gem Lifestyle.? Gem Lifestyle a completely new online business model based on online gaming revenue, online shopping, stock trading and online lottery. The concept of this new online business is actually quite simple, all you do is become an associate and introduce others to this business opportunity and introduce new users to their services such as online casinos, stock market, online shops and other ventures that they can spend their money at. Gem Lifestyle business model is really easy to make money with! Just think of it this way, there are loads of online casino affiliate programs that pay their affiliates to attract online gamblers to the online casinos, then the affiliates get paid a small share of the casino’s revenue.

This business model is very similar to online casino’s affiliate programs but the people that you introduce to this business called Gem Lifestyle and they can either sign up as an associate or a so called “Gemmer” so they can just use the services of the Gem Lifestyle. If you decide to sign up as an associate you will only need to introduce another 3 associates to Gem Lifestyle and you will be entered in to the first revenue pool that will pay you around 200 Euro every month! You cannot slip from this revenue pool if you don’t introduce any more associates, you will always remain there and get your share of the revenue, or you can introduce more associates to this business and move to the next revenue pool that pays even more. The last revenue pool, #4 pays 15,000 Euro Monthly! This business model is extremely well developed with amazing design of all Gem Lifestyle Websites and all services! This business uses web 3.0 model Or Web 3D Model that is very attractive.

So, all i want you to do is take a few minutes and check out Gem Lifestyle Home Page Here… watch the video on the front page and it will explain a lot about this business model. There are also a lot of other informative pages there that you need to read to fully understand this business model and how great it really is! This business is one of a kind that offers their associates a monthly recurring income and heaps and heaps of easy ways to earn that share of their multi million dollar revenues!

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Article Source:http://www.articlesbase.com/business-articles/gem-lifestyle-brand-new-business-model-become-succesful-with-gem-lifestyle–1084732.html

It depends a lot on the way you dress up when it comes to creating impression on others.? The clothes you wear reflects your thinking, and social upbringing as well. Your personality and the way you look depend totally on the type of clothes you wear. Therefore, you must select the best designer clothes for yourself and make a statement for yourself.
Whether it’s your clothes, shoes, jackets, trousers, shirts or any other outfit, it must be attractive and really trendy. Designer stuff are designed or prepared by various designers who are skilled and master of their work. They give in their best inputs in designing even the smallest of outfit.
Both men and women can wear trendy clothes that are authentic and genuine when it comes to their brand. Mens designer clothes may include a men’s trouser, designer shirts, a target=”_blank” href=”http://www.tessuti.co.uk/”>designer jackets</a>, etc. Unlike your regular casual these designer outfits are meant for different occasions. Similarly, womens designer clothes comprises of designer jeans, tops, designer shoes etc.
These clothes are manufactured by special procedures using polished technology under the supervision of various designers who are engaged in this work since years. To give you the best output, various tests and trials are conducted on them before they are introduced in the market.
As the designer outfits are in demand since a very long period of time therefore, these products are available at many fashion outlets. There are many web sites as well from where a user can easily avail information on the designer clothing.
Not only this, various web sites provides you with many other details about these products such as price ranges, designs, its effect on the skin, product’s condition after use, and many other. After looking at this information, it becomes easier for a buyer to make his/ her decision on buying the best product.
Buying a designer and branded stuff always gives you the trust in the form of guarantee of their authenticity. This means, your product can be replaced if the clothes purchased by you becomes defective anyhow. Generally, the designer wear comes detect- free or free from errors but, if in case any minor fault like colour fade,? shrink, thread coming out, etc exists then the clothes are exchanged.
It is said that the clothing is incomplete without a designer wear. If you are dressed smartly in a designer outfit, it can help creating an impression on others as well. Compromising on quality is one thing that should not be encouraged as; spending on a little more money on a product that is worth is no harm.
The best part about a designer outfit is that you don’t have to search for its outlets as you can easily find one in your nearby market or shopping mall. If you still don’t find it then, you can always search for the outlet locations on the internet.

For more insights and further information about designer clothes visit our site http://www.tessuti.co.uk/

Article Source:http://www.articlesbase.com/business-articles/designer-clothes-for-one-and-all-1084736.html