Gov't Borrows Money to Give to Banks to Give to People who Can't Pay Back Current Loans???

To contact us Click HERE
Category: Miscellaneous Musings

According to Yahoo News, the US government is borrowing an additional $27 BILLION dollars. This is because the business that is our country spends more than it takes in. President Bush also just signed the new housing law package. "As part of the housing measure, Congress voted to increase the national debt limit by $800 billion from $9.815 trillion to a new limit of $10.615 trillion."

So, the US government is borrowing money to give to banks, so that the banks (who ran out of money due to their own bad lending practices) can give money to borrowers, who already can't pay back the money they already borrowed?

What??? And who is going to be responsible at the end of the day? You, me and anyone else who pays taxes, as that is the only way to raise revenue.

See Government announces plans to borrow $27 billion

It's A GO! New Jersey Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities

To contact us Click HERE
MediLexicon News - It's A GO! New Jersey State Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities: "Department of Health and Senior Services (DHSS) Commissioner Heather Howard announced today the State has received approval from the U.S. Centers for Medicare and Medicaid Services to consolidate three Medicaid-supported home and community-based service programs currently operated by DHSS into a single program known as Global Options (GO) for Long Term Care."

This is great news and hopefully will proivded needed efficiencies and consolidated review of services.


Category: Elder Law

Haven't Paid NJ Taxes? Now Might Be the Time

To contact us Click HERE
Category: Tax Law and Planning

Courtesy of JH Cohn:

New Jersey Enacts Tax Amnesty Program

"New Jersey Governor Jon Corzine has signed a bill creating a 45-day New Jersey state tax amnesty period that will end no later than June 15, 2009. Presumably the program will begin on or about May 1, allowing the New Jersey Division of Taxation some time after the April 15 filing deadline to gear up for the program.

Under the program, taxpayers who pay outstanding state tax liabilities for tax returns due on or after January 1, 2002 and prior to February 1, 2009, plus one-half of interest owed as of May 1, 2009, will not have to pay the other half of the interest owed, nor will they be liable for collections costs or civil or criminal penalties. Taxpayers under criminal investigation for a state tax matter are ineligible for the program. On the other hand, taxpayers involved with civil tax audits are eligible.

Similar to the most recent New Jersey tax amnesty program conducted in 2002, a five percent "amnesty eligible" penalty will be imposed after the amnesty period concludes on any additional taxes found due by a taxpayer that were not paid during the amnesty period for a tax period falling under the amnesty program."

Daddy's Little Tax Deduction Takes a Tax on Accountant Mommy Both at Home and at Work

To contact us Click HERE


I heard from a working mother accountant yesterday. She works at Ernst & Young and has wonderful things to say about EY's treatment of working mothers. Just to give you a taste of how flexible EY was with maternity leave -- when she told them that she had decided to quit the firm rather than go on maternity leave because she wanted to take more time off to spend with her newborn than the existing maternity leave schedule permitted, the firm said, "Don't quit. Just take an extended leave of absence for a year and come back then."

So she did. She took a year off. Of course she did not get paid a salary after the normal maternity leave time period expired. But she was able to keep her low-premium medical benefits during this time so long as she paid the premium -- which was a great benefit.

When she returned after her time off, she worked out a reduced work schedule with the firm for reduced pay. Though difficult, the managing partner and other partners are very supportive in helping her stick to the reduced schedule. Hats off to EY for such great treatment of working mothers.

But despite the great efforts of the firm and its partners to accommodate working mothers, being a part-time working mother takes a serious tax on the enjoyment that a working mother would hope to get from her career. Here's a list of some big concerns:

1. Mid-level management. While the managing partner and other office partners are supportive of the working mother's reduced work schedule. Senior staff and managers just don't seem to get it. When they watch the working mother shut down her laptop and leave the office while it is still daylight outside (to go retrieve her toddler from day care) they stare and feel like she is playing hookie -- even though she is getting paid far less than the full-time workers. They see her leave early. They don't see the small pay check (which is barely enough to cover day care expenses). And they judge.

Often times, managers and seniors come to the working mother just as she is about to leave the office and say they need her to take care of something before she goes. They don't get it. Kids have to be picked up from day care by the close of business or you are in big trouble. There is little or no flexibility here.

A similar event occurs when the seniors and managers ask the working mother to come in to the office on the day that they know is her day-off. It is not like she spends her day-off alone sipping lemonade on the beach while reading Twilight. That's the day she does the laundry, cleans the house, and tries to spend some time with her child. And her day off is also the day care lady's day off. What is she supposed to do with the poor child if she can't take him to day care? Leave him with the creepy old man next door?

2. Lower Review Scores. Because the working mother is giving baths and cleaning up cheerios off the kitchen floor, or hunched over her laptop in a make-shift home cubicle, and not at the office in view of other team members on those late late nights, the team does not see the working mother as an equal contributor to the effort. Come review time, the very high review scores that the working mother used to get are reduced to just "average" because the review committee can't justify giving her higher scores when she didn't put in as many hours at the office as the other accountants at her level.

3. No Over Time Pay. The working mother tells me that if she goes far beyond her normally scheduled hours, she doesn't get any overtime pay. That does not make sense, as I know other working women on reduced schedule at other firms who do get overtime pay. Part time mothers are part time because the remainder of their schedule is spent taking care of children and is inflexible. If working mothers are forced to put their kids in day care longer so that they can work longer hours in the office, they should be compensated accordingly in order to cover the costs of day care.

4. Short-Term Deadlines. Most projects in the accounting world have a very short deadline. A 30-hour project often cannot be spread over the course of a working mother's 30-hour work week. The managers and seniors want it done in two days. The problem is that children's schedules are not real flexible. They need someone to feed them, bathe them, change them, and sing them to sleep every night, not just once every three or four nights. Consequently, short-term projects are killer on the working mother, who ends up staying up until 4 AM time and time again just to take care of simple projects with very short deadlines.


Anyone have any tips or advice to help our working mother?

I Don't Like Working as an Accountant at the Big 4, Maybe I Should Go to Law School?

To contact us Click HERE

One of our readers asked whether we were aware of people leaving the Big 4 to take nice jobs. Of course. But it depends on what you call a nice job, and beauty is in the eye of the beholder. This is a good topic, so we will dedicate a few separate posts to it, exploring different avenues of departure from the Big 4.

One very smart/dumb move that a lot of Big 4 accountants make is to leave the Big 4 to go to law school. A few people we know worked at the Big 4 for a couple years, then went to law school, and are now doing pretty well for themselves at big law firms or having started their own business/tax law firm. For example, one guy we know went to law school after getting his CPA license, worked at a big law firm for a couple years negotiating big deals, and then left to start his own practice providing CFO and general counsel services to start-ups and high-net-worth individuals.
But law school and lawyering is definitely not for everybody. Although, if you are going to spend the rest of your days punching numbers in a dark cubicle at the Big 4 anyway, you might want to consider upgrading to a big law firm. Let's compare some of the high-level differences between entry-level lawyers versus entry-level accountants:

Lawyers v. Accountants
1. Starting Salary. This is by far one of the most obvious differences between Big Accounting and Big Law. Starting salaries at a big law firm are double and triple what they are at the Big 4, with most Big law firms in the big cities paying $145,000 to $160,000 to its starting lawyers, and those salaries usually go up $5,000 to $10,000 each year after that. On top of that, after the first year, starting lawyers are usually paid a year-end bonus of anywhere from $20,000 to $60,000. Of course, the recession has rained on that parade a little, and many law firms froze or lowered salaries this past year by 10-20%. Also bear in mind coming out of law school you will have lots of debt, maybe even as much as $100,000 in school loans unless daddy is paying for it or you go to a less-expensive state-run school like U. of Texas or a church-run school like BYU.

2. Your Own Office. Lawyers usually get their own office right out of law school at a big law firm. And we are not talking about a glorified cubicle with a door and four walls that go almost to the ceiling. We are talking a real office with a real solid desk and and other furniture, and a nice view of something spectacular: the city skyline, a famous bridge, a body of water, or in Los Angeles, a nice big freeway.


Accountant cubicle:



Lawyer office (note the large volumes of boxes and papers everywhere -- we'll get to that later):




3. Work. Junior accountants in general spend all day hunched over a laptop preparing spreadsheets and looking for numbers. Junior attorneys spend all day at their desks drafting agreements, or researching cases and writing memos, or going through boxes and boxes of documents looking for smoking guns (see the boxes in the picture above). It's tough to objectively compare whether the work of junior attorneys is any less tedious than the work of junior accountants. Some prefer working with spreadsheets and numbers because when everything balances out at the end of the day -- you know you have it right. With legal research and writing and document searching, there is no real check to make sure you have the right answer -- you may have missed something big and will never know, or you will find out when the other side discovers it and you lose the case.




4. Hours. Hours vary so much across firms, projects, and seasons, that it is tough to compare hours worked by junior accountants with hours worked by junior attorneys. As a benchmark, most big law firms require their attorneys to work more hours than the Big 4. For example, the billable hour requirement at a Big 4 firm might be 1500 hours, while most big law firms expect 1900 - 2100 hours of their attorneys. The major difference is that accountants usually get more breaks and longer breaks between crunch times, while attorney hours stay high all year long except for short vacations.

Please chime in with your own observations . . .

What's the Tax Plan Mr. President-in-Waiting

To contact us Click HERE
Category: Estate and Inheritance Tax, Tax Law and Planning

Now that the candidates are known, what is that next question? What they propose to do with your taxes of course. A quick summary rundown courtesy of National Center for Policy Analysis - YOUR TAX BILL: HOW MCCAIN, OBAMA DIFFER:

Income taxes:

• McCain wants to make permanent the current federal income-tax rates.


• McCain opposes Sen. Obama's plan to lift the earnings cap on the Social Security payroll tax, saying such a move would be bad news for the economy.


• Obama wants to raise the top ordinary income-tax rate from 35 percent to 39.6 percent on families making more than $250,000 a year.


• Obama's plan includes increased taxes not only on ordinary income such as salary but also on capital gains and most corporate dividends.


• Obama also plans to impose higher Social Security taxes on workers making over $250,000.

Investment income:

• McCain wants to keep the current structure of tax rates on capital gains and
  dividends.


• Obama wants to raise the long-term capital-gains rate for families making more than $250,000 from its current rate of 15 percent to around 20 percent, or even higher.

Estate taxes:

• Neither candidate wants to kill the estate tax permanently, as President
  Bush has proposed.


• Under current law, the federal estate-tax exemption this year is $2 million, and the top rate is 45 percent; in 2009 that exclusion is set to rise to $3.5 million, with the rate remaining at 45 percent.


• McCain proposes raising the exclusion to $5 million and cutting the tax rate to 15 percent.


• Obama proposes a $3.5 million exclusion while keeping the top rate at 45 percent.

Gov't Borrows Money to Give to Banks to Give to People who Can't Pay Back Current Loans???

To contact us Click HERE
Category: Miscellaneous Musings

According to Yahoo News, the US government is borrowing an additional $27 BILLION dollars. This is because the business that is our country spends more than it takes in. President Bush also just signed the new housing law package. "As part of the housing measure, Congress voted to increase the national debt limit by $800 billion from $9.815 trillion to a new limit of $10.615 trillion."

So, the US government is borrowing money to give to banks, so that the banks (who ran out of money due to their own bad lending practices) can give money to borrowers, who already can't pay back the money they already borrowed?

What??? And who is going to be responsible at the end of the day? You, me and anyone else who pays taxes, as that is the only way to raise revenue.

See Government announces plans to borrow $27 billion

It's A GO! New Jersey Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities

To contact us Click HERE
MediLexicon News - It's A GO! New Jersey State Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities: "Department of Health and Senior Services (DHSS) Commissioner Heather Howard announced today the State has received approval from the U.S. Centers for Medicare and Medicaid Services to consolidate three Medicaid-supported home and community-based service programs currently operated by DHSS into a single program known as Global Options (GO) for Long Term Care."

This is great news and hopefully will proivded needed efficiencies and consolidated review of services.


Category: Elder Law

Haven't Paid NJ Taxes? Now Might Be the Time

To contact us Click HERE
Category: Tax Law and Planning

Courtesy of JH Cohn:

New Jersey Enacts Tax Amnesty Program

"New Jersey Governor Jon Corzine has signed a bill creating a 45-day New Jersey state tax amnesty period that will end no later than June 15, 2009. Presumably the program will begin on or about May 1, allowing the New Jersey Division of Taxation some time after the April 15 filing deadline to gear up for the program.

Under the program, taxpayers who pay outstanding state tax liabilities for tax returns due on or after January 1, 2002 and prior to February 1, 2009, plus one-half of interest owed as of May 1, 2009, will not have to pay the other half of the interest owed, nor will they be liable for collections costs or civil or criminal penalties. Taxpayers under criminal investigation for a state tax matter are ineligible for the program. On the other hand, taxpayers involved with civil tax audits are eligible.

Similar to the most recent New Jersey tax amnesty program conducted in 2002, a five percent "amnesty eligible" penalty will be imposed after the amnesty period concludes on any additional taxes found due by a taxpayer that were not paid during the amnesty period for a tax period falling under the amnesty program."

Assisted Living Company Sued for Forcing Out Elderly Residents

To contact us Click HERE
Category: Elder Law,

From NJ Biz.com, a report that the New Jersey Public Advocate has filed papers against Assisted Living Concepts Inc., operating eight assisted-living facilities in southern New Jersey, for "allegedly forcing out elderly residents once they have run out of savings and qualify for Medicaid."

In the Article Assisted-Living Co. Charged with Forcing Out Residents, Scott Goldstein reports that "The Public Advocate is investigating allegations that ALC is involuntarily discharging elderly residents, or threatening to discharge them once they have exhausted all of their own funds, or "spent down" their life savings, and therefore qualifies for Medicaid payments to cover the cost of their assisted-living apartment. "

The company under investigation "owns and operates eight assisted living facilities in New Jersey: Baker House in Vineland, Goldfinch House in Bridgeton and Maurice House in Millville, all in Cumberland County; Lindsay House in Pennsville, Salem County; Mey House in Egg Harbor Township, Atlantic County; Chapin House in Rio Grande, Cape May County; Granville House in Burlington, Burlington County; and Post House in Glassboro, Gloucester County."

Many nursing homes and assisted living facilities have a "key-money" requirement that essentially says that a person must spend $X of their own money before the facility will accept Medicaid for the costs of their care. So if a facility has a 12 month "key-money" requirement, and costs $5000 a month, then they will only accept a person who has at least $60,000 to pay for their care. After it is spent, if the person then qualifies for Medicaid, New Jersey will pay the cost of care, usually at a rate below the private pay rate. Here, the New Jersey Public Advocate appears to be alleging that ALC took the "key-money" and then maneuvered to have residents discharged when Medicaid took over payments.

What's the Tax Plan Mr. President-in-Waiting

To contact us Click HERE
Category: Estate and Inheritance Tax, Tax Law and Planning

Now that the candidates are known, what is that next question? What they propose to do with your taxes of course. A quick summary rundown courtesy of National Center for Policy Analysis - YOUR TAX BILL: HOW MCCAIN, OBAMA DIFFER:

Income taxes:

• McCain wants to make permanent the current federal income-tax rates.


• McCain opposes Sen. Obama's plan to lift the earnings cap on the Social Security payroll tax, saying such a move would be bad news for the economy.


• Obama wants to raise the top ordinary income-tax rate from 35 percent to 39.6 percent on families making more than $250,000 a year.


• Obama's plan includes increased taxes not only on ordinary income such as salary but also on capital gains and most corporate dividends.


• Obama also plans to impose higher Social Security taxes on workers making over $250,000.

Investment income:

• McCain wants to keep the current structure of tax rates on capital gains and
  dividends.


• Obama wants to raise the long-term capital-gains rate for families making more than $250,000 from its current rate of 15 percent to around 20 percent, or even higher.

Estate taxes:

• Neither candidate wants to kill the estate tax permanently, as President
  Bush has proposed.


• Under current law, the federal estate-tax exemption this year is $2 million, and the top rate is 45 percent; in 2009 that exclusion is set to rise to $3.5 million, with the rate remaining at 45 percent.


• McCain proposes raising the exclusion to $5 million and cutting the tax rate to 15 percent.


• Obama proposes a $3.5 million exclusion while keeping the top rate at 45 percent.

Gov't Borrows Money to Give to Banks to Give to People who Can't Pay Back Current Loans???

To contact us Click HERE
Category: Miscellaneous Musings

According to Yahoo News, the US government is borrowing an additional $27 BILLION dollars. This is because the business that is our country spends more than it takes in. President Bush also just signed the new housing law package. "As part of the housing measure, Congress voted to increase the national debt limit by $800 billion from $9.815 trillion to a new limit of $10.615 trillion."

So, the US government is borrowing money to give to banks, so that the banks (who ran out of money due to their own bad lending practices) can give money to borrowers, who already can't pay back the money they already borrowed?

What??? And who is going to be responsible at the end of the day? You, me and anyone else who pays taxes, as that is the only way to raise revenue.

See Government announces plans to borrow $27 billion

It's A GO! New Jersey Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities

To contact us Click HERE
MediLexicon News - It's A GO! New Jersey State Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities: "Department of Health and Senior Services (DHSS) Commissioner Heather Howard announced today the State has received approval from the U.S. Centers for Medicare and Medicaid Services to consolidate three Medicaid-supported home and community-based service programs currently operated by DHSS into a single program known as Global Options (GO) for Long Term Care."

This is great news and hopefully will proivded needed efficiencies and consolidated review of services.


Category: Elder Law

Haven't Paid NJ Taxes? Now Might Be the Time

To contact us Click HERE
Category: Tax Law and Planning

Courtesy of JH Cohn:

New Jersey Enacts Tax Amnesty Program

"New Jersey Governor Jon Corzine has signed a bill creating a 45-day New Jersey state tax amnesty period that will end no later than June 15, 2009. Presumably the program will begin on or about May 1, allowing the New Jersey Division of Taxation some time after the April 15 filing deadline to gear up for the program.

Under the program, taxpayers who pay outstanding state tax liabilities for tax returns due on or after January 1, 2002 and prior to February 1, 2009, plus one-half of interest owed as of May 1, 2009, will not have to pay the other half of the interest owed, nor will they be liable for collections costs or civil or criminal penalties. Taxpayers under criminal investigation for a state tax matter are ineligible for the program. On the other hand, taxpayers involved with civil tax audits are eligible.

Similar to the most recent New Jersey tax amnesty program conducted in 2002, a five percent "amnesty eligible" penalty will be imposed after the amnesty period concludes on any additional taxes found due by a taxpayer that were not paid during the amnesty period for a tax period falling under the amnesty program."

Daddy's Little Tax Deduction Takes a Tax on Accountant Mommy Both at Home and at Work

To contact us Click HERE


I heard from a working mother accountant yesterday. She works at Ernst & Young and has wonderful things to say about EY's treatment of working mothers. Just to give you a taste of how flexible EY was with maternity leave -- when she told them that she had decided to quit the firm rather than go on maternity leave because she wanted to take more time off to spend with her newborn than the existing maternity leave schedule permitted, the firm said, "Don't quit. Just take an extended leave of absence for a year and come back then."

So she did. She took a year off. Of course she did not get paid a salary after the normal maternity leave time period expired. But she was able to keep her low-premium medical benefits during this time so long as she paid the premium -- which was a great benefit.

When she returned after her time off, she worked out a reduced work schedule with the firm for reduced pay. Though difficult, the managing partner and other partners are very supportive in helping her stick to the reduced schedule. Hats off to EY for such great treatment of working mothers.

But despite the great efforts of the firm and its partners to accommodate working mothers, being a part-time working mother takes a serious tax on the enjoyment that a working mother would hope to get from her career. Here's a list of some big concerns:

1. Mid-level management. While the managing partner and other office partners are supportive of the working mother's reduced work schedule. Senior staff and managers just don't seem to get it. When they watch the working mother shut down her laptop and leave the office while it is still daylight outside (to go retrieve her toddler from day care) they stare and feel like she is playing hookie -- even though she is getting paid far less than the full-time workers. They see her leave early. They don't see the small pay check (which is barely enough to cover day care expenses). And they judge.

Often times, managers and seniors come to the working mother just as she is about to leave the office and say they need her to take care of something before she goes. They don't get it. Kids have to be picked up from day care by the close of business or you are in big trouble. There is little or no flexibility here.

A similar event occurs when the seniors and managers ask the working mother to come in to the office on the day that they know is her day-off. It is not like she spends her day-off alone sipping lemonade on the beach while reading Twilight. That's the day she does the laundry, cleans the house, and tries to spend some time with her child. And her day off is also the day care lady's day off. What is she supposed to do with the poor child if she can't take him to day care? Leave him with the creepy old man next door?

2. Lower Review Scores. Because the working mother is giving baths and cleaning up cheerios off the kitchen floor, or hunched over her laptop in a make-shift home cubicle, and not at the office in view of other team members on those late late nights, the team does not see the working mother as an equal contributor to the effort. Come review time, the very high review scores that the working mother used to get are reduced to just "average" because the review committee can't justify giving her higher scores when she didn't put in as many hours at the office as the other accountants at her level.

3. No Over Time Pay. The working mother tells me that if she goes far beyond her normally scheduled hours, she doesn't get any overtime pay. That does not make sense, as I know other working women on reduced schedule at other firms who do get overtime pay. Part time mothers are part time because the remainder of their schedule is spent taking care of children and is inflexible. If working mothers are forced to put their kids in day care longer so that they can work longer hours in the office, they should be compensated accordingly in order to cover the costs of day care.

4. Short-Term Deadlines. Most projects in the accounting world have a very short deadline. A 30-hour project often cannot be spread over the course of a working mother's 30-hour work week. The managers and seniors want it done in two days. The problem is that children's schedules are not real flexible. They need someone to feed them, bathe them, change them, and sing them to sleep every night, not just once every three or four nights. Consequently, short-term projects are killer on the working mother, who ends up staying up until 4 AM time and time again just to take care of simple projects with very short deadlines.


Anyone have any tips or advice to help our working mother?

I Don't Like Working as an Accountant at the Big 4, Maybe I Should Go to Law School?

To contact us Click HERE

One of our readers asked whether we were aware of people leaving the Big 4 to take nice jobs. Of course. But it depends on what you call a nice job, and beauty is in the eye of the beholder. This is a good topic, so we will dedicate a few separate posts to it, exploring different avenues of departure from the Big 4.

One very smart/dumb move that a lot of Big 4 accountants make is to leave the Big 4 to go to law school. A few people we know worked at the Big 4 for a couple years, then went to law school, and are now doing pretty well for themselves at big law firms or having started their own business/tax law firm. For example, one guy we know went to law school after getting his CPA license, worked at a big law firm for a couple years negotiating big deals, and then left to start his own practice providing CFO and general counsel services to start-ups and high-net-worth individuals.
But law school and lawyering is definitely not for everybody. Although, if you are going to spend the rest of your days punching numbers in a dark cubicle at the Big 4 anyway, you might want to consider upgrading to a big law firm. Let's compare some of the high-level differences between entry-level lawyers versus entry-level accountants:

Lawyers v. Accountants
1. Starting Salary. This is by far one of the most obvious differences between Big Accounting and Big Law. Starting salaries at a big law firm are double and triple what they are at the Big 4, with most Big law firms in the big cities paying $145,000 to $160,000 to its starting lawyers, and those salaries usually go up $5,000 to $10,000 each year after that. On top of that, after the first year, starting lawyers are usually paid a year-end bonus of anywhere from $20,000 to $60,000. Of course, the recession has rained on that parade a little, and many law firms froze or lowered salaries this past year by 10-20%. Also bear in mind coming out of law school you will have lots of debt, maybe even as much as $100,000 in school loans unless daddy is paying for it or you go to a less-expensive state-run school like U. of Texas or a church-run school like BYU.

2. Your Own Office. Lawyers usually get their own office right out of law school at a big law firm. And we are not talking about a glorified cubicle with a door and four walls that go almost to the ceiling. We are talking a real office with a real solid desk and and other furniture, and a nice view of something spectacular: the city skyline, a famous bridge, a body of water, or in Los Angeles, a nice big freeway.


Accountant cubicle:



Lawyer office (note the large volumes of boxes and papers everywhere -- we'll get to that later):




3. Work. Junior accountants in general spend all day hunched over a laptop preparing spreadsheets and looking for numbers. Junior attorneys spend all day at their desks drafting agreements, or researching cases and writing memos, or going through boxes and boxes of documents looking for smoking guns (see the boxes in the picture above). It's tough to objectively compare whether the work of junior attorneys is any less tedious than the work of junior accountants. Some prefer working with spreadsheets and numbers because when everything balances out at the end of the day -- you know you have it right. With legal research and writing and document searching, there is no real check to make sure you have the right answer -- you may have missed something big and will never know, or you will find out when the other side discovers it and you lose the case.




4. Hours. Hours vary so much across firms, projects, and seasons, that it is tough to compare hours worked by junior accountants with hours worked by junior attorneys. As a benchmark, most big law firms require their attorneys to work more hours than the Big 4. For example, the billable hour requirement at a Big 4 firm might be 1500 hours, while most big law firms expect 1900 - 2100 hours of their attorneys. The major difference is that accountants usually get more breaks and longer breaks between crunch times, while attorney hours stay high all year long except for short vacations.

Please chime in with your own observations . . .

Gas Costs Bringing Your Business Down

To contact us Click HERE
Category: Business Law and Planning

The skyrocketing costs of gas are hitting all of us. Business owners are especially concerned as to how this will hit their bottom line, both directly in the costs of materials and shipping, and indirectly, as employees look to balance the cost of getting to work against their paycheck.

It appears that the New Jersey Assembly is trying to help. NJ Biz reports that Bill Would Allow Gas to be Sold at Cost or Below:

"A bill designed to lower gas prices by removing the state''s gasoline "price floor" was approved by an Assembly panel yesterday. "

"Service stations with convenience stores or auto-repair shops make the most of their revenue from those more profitable services, not the sale of gasoline, [Assembly Person] Burzichelli said. Allowing gasoline to be priced below cost would allow stations to lower prices to attract more customers for those services while simultaneously providing a much-needed price break at the pump, he said.

New Jersey has required gas station owners to price their fuel above cost since 1938, when many states enacted laws to protect consumers from gas companies that would undercut competitors in sparse marketplaces to gain a monopoly on fuel sales, Burzichelli said."

Other employers are looking to take their own action to control the indirect costs of gas prices. Some ideas and concerns:

• Provide gas allowance - note however this must be included in the employees income each year

Foster telecommuting - make sure that you have an appropriate security policy in place in your employment agreement, employee handbook, or other policy regarding remote access of computers. You may also want to invest in a program to be able to track an employee's productivity while out of the office

• Adopt a flex workweek of 4 day / 10 hours, or 9 days/9 hours every 2 weeks - while you need to make sure your critical daily activities are covered, this may allow you to get all the work done for the week in a shorter period, and be a cost free "bonus" to the employees who not only have to commute less days, but get an extra day to address their out of office obligations (perhaps making for more productive employees)

What's the Tax Plan Mr. President-in-Waiting

To contact us Click HERE
Category: Estate and Inheritance Tax, Tax Law and Planning

Now that the candidates are known, what is that next question? What they propose to do with your taxes of course. A quick summary rundown courtesy of National Center for Policy Analysis - YOUR TAX BILL: HOW MCCAIN, OBAMA DIFFER:

Income taxes:

• McCain wants to make permanent the current federal income-tax rates.


• McCain opposes Sen. Obama's plan to lift the earnings cap on the Social Security payroll tax, saying such a move would be bad news for the economy.


• Obama wants to raise the top ordinary income-tax rate from 35 percent to 39.6 percent on families making more than $250,000 a year.


• Obama's plan includes increased taxes not only on ordinary income such as salary but also on capital gains and most corporate dividends.


• Obama also plans to impose higher Social Security taxes on workers making over $250,000.

Investment income:

• McCain wants to keep the current structure of tax rates on capital gains and
  dividends.


• Obama wants to raise the long-term capital-gains rate for families making more than $250,000 from its current rate of 15 percent to around 20 percent, or even higher.

Estate taxes:

• Neither candidate wants to kill the estate tax permanently, as President
  Bush has proposed.


• Under current law, the federal estate-tax exemption this year is $2 million, and the top rate is 45 percent; in 2009 that exclusion is set to rise to $3.5 million, with the rate remaining at 45 percent.


• McCain proposes raising the exclusion to $5 million and cutting the tax rate to 15 percent.


• Obama proposes a $3.5 million exclusion while keeping the top rate at 45 percent.

Gov't Borrows Money to Give to Banks to Give to People who Can't Pay Back Current Loans???

To contact us Click HERE
Category: Miscellaneous Musings

According to Yahoo News, the US government is borrowing an additional $27 BILLION dollars. This is because the business that is our country spends more than it takes in. President Bush also just signed the new housing law package. "As part of the housing measure, Congress voted to increase the national debt limit by $800 billion from $9.815 trillion to a new limit of $10.615 trillion."

So, the US government is borrowing money to give to banks, so that the banks (who ran out of money due to their own bad lending practices) can give money to borrowers, who already can't pay back the money they already borrowed?

What??? And who is going to be responsible at the end of the day? You, me and anyone else who pays taxes, as that is the only way to raise revenue.

See Government announces plans to borrow $27 billion

It's A GO! New Jersey Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities

To contact us Click HERE
MediLexicon News - It's A GO! New Jersey State Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities: "Department of Health and Senior Services (DHSS) Commissioner Heather Howard announced today the State has received approval from the U.S. Centers for Medicare and Medicaid Services to consolidate three Medicaid-supported home and community-based service programs currently operated by DHSS into a single program known as Global Options (GO) for Long Term Care."

This is great news and hopefully will proivded needed efficiencies and consolidated review of services.


Category: Elder Law

Haven't Paid NJ Taxes? Now Might Be the Time

To contact us Click HERE
Category: Tax Law and Planning

Courtesy of JH Cohn:

New Jersey Enacts Tax Amnesty Program

"New Jersey Governor Jon Corzine has signed a bill creating a 45-day New Jersey state tax amnesty period that will end no later than June 15, 2009. Presumably the program will begin on or about May 1, allowing the New Jersey Division of Taxation some time after the April 15 filing deadline to gear up for the program.

Under the program, taxpayers who pay outstanding state tax liabilities for tax returns due on or after January 1, 2002 and prior to February 1, 2009, plus one-half of interest owed as of May 1, 2009, will not have to pay the other half of the interest owed, nor will they be liable for collections costs or civil or criminal penalties. Taxpayers under criminal investigation for a state tax matter are ineligible for the program. On the other hand, taxpayers involved with civil tax audits are eligible.

Similar to the most recent New Jersey tax amnesty program conducted in 2002, a five percent "amnesty eligible" penalty will be imposed after the amnesty period concludes on any additional taxes found due by a taxpayer that were not paid during the amnesty period for a tax period falling under the amnesty program."

Hybrid Long Term Care Insurance

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Category: Elder Law, Financial Planning

The appeal of a hybrid car is more than greater bang for your buck - it is about making an investment you feel good about. When it comes to Long Term Care insurance, the only people who seem to feel good about the investment are those who have been caregivers, and have seen the devastating costs of spending every single penny of a person's savings (or at least down to the few last pennies) and it still not being enough to cover the costs of care. However, with teh US's aging population, many more families are going to find themselves in the position of caring for loved ones, and asking the question of: Where does the money come from?

Long Term Care Insurance may be a solution, but in many ways it has a bad reputation. The premiums seem very expensive, especially as the people looking at it tend to have just retired and are on a fixed income. Unscrupulous people have taken advantage of seniors with the product, tarring all long term care insurance professionals with the same suspicious brush. Another common thought is that if you never get sick, you just threw a lot of money down the drain.

A possible solution I was recently introduced to? Hybrid Long Term Care Insurance. The basic idea is that you take a lump sum of dollars and purchase Long Term Care Insurance. The dollars buy several things:

1. A total pot of greater dollars available to pay for long term care (a $100k investment might buy you $250k of long term care, depending on your age)
2. A death benefit greater then what you paid in that is "returned" to you heirs if you die and don't use the policy (A $100k investment might buy $200k in death benefity, depending on your age)
3. The ability to withdraw the lump sum you paid in at some point in the future if you need it (you get your $100k back)
4. A lump sum payment is a fixed investment - no need to pay ongoing premiums from your fixed income (you pay and "forget" it)

The cost? The loss of use of the lump sum and the growth on the lump sum unless you use the long term care benefits or the life insurance benefits.

The Street.com examined these hybrid polices in Hybrid Long-Term Care Might Be Right for You and highlighted some points to consider:

• You have significant liquid assets available. With a single premium payment ranging from $50,000 to $100,000, a hybrid policy is only for those with significant cash available that can be reallocated.
• You understand the risk to your portfolio. Once you have accepted that you may need care someday and that this care may be very expensive, the next step is to take a good look at what that will mean to your retirement portfolio.
• A stand-alone, long-term care policy is not an option. If you are not interested in paying premiums indefinitely on a policy you may never use, then the hybrid product -- with a death benefit built in -- may be an option.
• You have been planning to self-insure. If you haven't already recognized the financial risk of the cost of long-term care, you are not ready for this product.
• The ability to get something back for your premiums and retaining control of your money is important to you. You will, at minimum, get the use of your full premium either through long-term care benefits, a death benefit or by requesting a return of premium.
• Simplicity is important. While the long-term care portion of the policy contains the same framework of coverage as a stand-alone policy, there are fewer bells and whistles to add -- or to complicate the deal.

Did the Seniors You Know Get Their Tax Stimulus?

To contact us Click HERE
Category: Elder Law, Tax Law and Planning

As many of us who work with seniors blogged about when the tax stimulus package came to pass , while great in theory, the need to file a tax return to get the stimulus payment had a big hole from an action plan standpoint. Many seniors don't need to file tax returns, and haven't done so in years. This small fact is easy to forget about because for working folks the tax stimulus payment came as a matter of course from filing the return.

The result? PressofAtlanticCity.com reports that: "About 156,800 New Jersey retirees and disabled veterans, including about 1,300 in Atlantic City alone, have not yet submitted paperwork to claim their stimulus payments, according to the IRS. The IRS is asking the public for help in reaching this population with information on how to file. While 74 percent of eligible members of the group have filed, a substantial minority have yet to be contacted. The IRS this week announced a new summer campaign to reach them."

So, for those who have seniors as neighbors, clients, congregation members, or otherwise, see if they got their tax stimulus payment. It is up t0 $600 for singles and $1200 for couples. For details see prior posting: Economic Stimulus Package Now Law.

Gov't Borrows Money to Give to Banks to Give to People who Can't Pay Back Current Loans???

To contact us Click HERE
Category: Miscellaneous Musings

According to Yahoo News, the US government is borrowing an additional $27 BILLION dollars. This is because the business that is our country spends more than it takes in. President Bush also just signed the new housing law package. "As part of the housing measure, Congress voted to increase the national debt limit by $800 billion from $9.815 trillion to a new limit of $10.615 trillion."

So, the US government is borrowing money to give to banks, so that the banks (who ran out of money due to their own bad lending practices) can give money to borrowers, who already can't pay back the money they already borrowed?

What??? And who is going to be responsible at the end of the day? You, me and anyone else who pays taxes, as that is the only way to raise revenue.

See Government announces plans to borrow $27 billion

It's A GO! New Jersey Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities

To contact us Click HERE
MediLexicon News - It's A GO! New Jersey State Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities: "Department of Health and Senior Services (DHSS) Commissioner Heather Howard announced today the State has received approval from the U.S. Centers for Medicare and Medicaid Services to consolidate three Medicaid-supported home and community-based service programs currently operated by DHSS into a single program known as Global Options (GO) for Long Term Care."

This is great news and hopefully will proivded needed efficiencies and consolidated review of services.


Category: Elder Law

Haven't Paid NJ Taxes? Now Might Be the Time

To contact us Click HERE
Category: Tax Law and Planning

Courtesy of JH Cohn:

New Jersey Enacts Tax Amnesty Program

"New Jersey Governor Jon Corzine has signed a bill creating a 45-day New Jersey state tax amnesty period that will end no later than June 15, 2009. Presumably the program will begin on or about May 1, allowing the New Jersey Division of Taxation some time after the April 15 filing deadline to gear up for the program.

Under the program, taxpayers who pay outstanding state tax liabilities for tax returns due on or after January 1, 2002 and prior to February 1, 2009, plus one-half of interest owed as of May 1, 2009, will not have to pay the other half of the interest owed, nor will they be liable for collections costs or civil or criminal penalties. Taxpayers under criminal investigation for a state tax matter are ineligible for the program. On the other hand, taxpayers involved with civil tax audits are eligible.

Similar to the most recent New Jersey tax amnesty program conducted in 2002, a five percent "amnesty eligible" penalty will be imposed after the amnesty period concludes on any additional taxes found due by a taxpayer that were not paid during the amnesty period for a tax period falling under the amnesty program."

Longer Life Puts Women at Risk in Retirement

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Category: Financial Planning

We ladies have it hard enough dealing with glass ceilings, boys networks, balancing family and careers, and caring for older family members. Even with balancing all this, we statistically live longer than men. The problem with this? Our "family first" and "go along to get along" attitudes can cost of down the road when we live longer, save less, and have higher health care costs.

Longer lives, less pay — women not saving enough - Yahoo! News: "NEW YORK - Women may not earn as much as men or fly up the corporate ladder as quickly, but They get the last laugh since they live longer. Right? ADVERTISEMENT As it turns out, women probably aren't saving enough to bankroll those extra years in style.

They invest more conservatively, start saving later and are more likely to be in and
out of the work force, according to a study released Wednesday by Hewitt Associates, a human resources consulting firm. Suddenly, retirement isn't looking so rosy.

Women live an average of 22 years after retirement versus 19 years for men and medical costs are rising, so women will need to save 2 percent more than men every year over 30 years to maintain their standard of living upon retirement, the study found."

A Check-Up on your Health Care Provider

To contact us Click HERE
Category: Elder Law

Sometimes I run across the question of if a senior (or any person for that matter) is receiving the best possible health care. A site I was introduced to gives consumer feedback on health care (http://citehealth.com/ ). Health care is a choice - just because you saw a doctor once doesn't mean that he or she is best for you needs. Like any decision, you should feel you are getting the most value for your dollar. With health care, value often comes in the form of surroundings, staff attitudes, waiting times, communications, and approach to health care.

Welcome to CiteHealth

Give your Health Care Providers a Check Up
Ensure you are receiving the best care. Give your hospitals, nursing homes, rehab centers, home care agencies and other providers a free check up with our reports. We combine data from government and commercial data sources, direct verification, and people just like you give a complete picture of each provider.

Gov't Borrows Money to Give to Banks to Give to People who Can't Pay Back Current Loans???

To contact us Click HERE
Category: Miscellaneous Musings

According to Yahoo News, the US government is borrowing an additional $27 BILLION dollars. This is because the business that is our country spends more than it takes in. President Bush also just signed the new housing law package. "As part of the housing measure, Congress voted to increase the national debt limit by $800 billion from $9.815 trillion to a new limit of $10.615 trillion."

So, the US government is borrowing money to give to banks, so that the banks (who ran out of money due to their own bad lending practices) can give money to borrowers, who already can't pay back the money they already borrowed?

What??? And who is going to be responsible at the end of the day? You, me and anyone else who pays taxes, as that is the only way to raise revenue.

See Government announces plans to borrow $27 billion

It's A GO! New Jersey Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities

To contact us Click HERE
MediLexicon News - It's A GO! New Jersey State Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities: "Department of Health and Senior Services (DHSS) Commissioner Heather Howard announced today the State has received approval from the U.S. Centers for Medicare and Medicaid Services to consolidate three Medicaid-supported home and community-based service programs currently operated by DHSS into a single program known as Global Options (GO) for Long Term Care."

This is great news and hopefully will proivded needed efficiencies and consolidated review of services.


Category: Elder Law

Haven't Paid NJ Taxes? Now Might Be the Time

To contact us Click HERE
Category: Tax Law and Planning

Courtesy of JH Cohn:

New Jersey Enacts Tax Amnesty Program

"New Jersey Governor Jon Corzine has signed a bill creating a 45-day New Jersey state tax amnesty period that will end no later than June 15, 2009. Presumably the program will begin on or about May 1, allowing the New Jersey Division of Taxation some time after the April 15 filing deadline to gear up for the program.

Under the program, taxpayers who pay outstanding state tax liabilities for tax returns due on or after January 1, 2002 and prior to February 1, 2009, plus one-half of interest owed as of May 1, 2009, will not have to pay the other half of the interest owed, nor will they be liable for collections costs or civil or criminal penalties. Taxpayers under criminal investigation for a state tax matter are ineligible for the program. On the other hand, taxpayers involved with civil tax audits are eligible.

Similar to the most recent New Jersey tax amnesty program conducted in 2002, a five percent "amnesty eligible" penalty will be imposed after the amnesty period concludes on any additional taxes found due by a taxpayer that were not paid during the amnesty period for a tax period falling under the amnesty program."

Resources for sunset planning for aging parents

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Category: Elder Law,

This question was asked on www.linkedin.com:

What approach have you taken when faced with sunset planning for aging parent(s)?I am looking for information related to resources available for helping surviving children understand and execute their aging parent(s) wishes in the sunset years. Specifically, what resources did you turn to and/or what research did you do to determine the ideal solutions related to your aging or terminally ill parent(s) living conditions, medical benefits and options, estate planning, funeral arrangements, etc?

My reply:

When dealing with these issues, the family needs to consider a team of professionals to educate them on the options that will best meet your parents goals. There are a host of people out there who can help you, but their existence isn't always well known, and the type of care depends on your family’s needs. Speaking as an elder law attorney, I often work with and refer to various other professionals as needed. I have listed them below.

Note that the single most important thing is to find one of more of these professionals who you feel comfortable with who can be your trusted advisor and get you to other professionals as needed.

Elder Law Attorney - will advise you on what documents to have in place to give authority to execute the wishes, as well as how to structure assets to best pay for long term care (using private assets, long term care insurance, Medicaid) and the pros and cons of transferring assets.

Financial Planner - Where children may find themselves in the position of managing parents assets, it is critical that the assets be gathered and centrally located and the investments critically reviewed sooner rather than later. Consolidate investments to a single location, with on-line access for children to monitor. Make sure the investments are appropriate for the seniors age and income needs - many times we see seniors who have entered into investments that may not really be appropriate to their income needs.

Geriatric Care Manager - This is essentially a private social worker who can make an independent assessment of the seniors needs and create a plan of action to fulfill those needs in the reality of a family. They address the tough questions of if mom can live at home and what kind of assistance might be necessary to make that a reality, or what if they move in with a child or to a continuing care community or just senior community, as well as facilitate referrals to home care agencies, assisted living and nursing facilities and/or hospice.

Other professionals you may want to bring in:

• Insurance Professional - Long Term Care insurance may be appropriate depending on the ages and needs.
• Reverse Mortgage Specialist - To reach their goals, it make may sense to use the equity in the home.
• Home Care Agency - These will provided nursing and companion care at home or at an assisted living or nursing home facility.
• Realtor specializing in Seniors - He or she can maximize the value of the largest asset by addressing the marketing realities of a home that has likely been lived in and not updated for decades (cleanout, donation, upgrades, staging).
• Therapist - Parenting your parents in hard. A qualified therapist can give family members tools to cope with emotional issues.
• Accountant/Bookkeeper - Bill paying services and tax information.

Links:http://www.seniorsourcessite.com http://www.naela.org http://youandyoursblawg.blogspot.com/