Jeffrey M. Rosenblum, P.C.
A Fresh Start

November 2013 Archives

Holiday overspending can lead to credit card debt

Overspending during the holidays leaves some people grappling with a pile of unpaid debts, a fact that New Yorkers should be mindful of this time of year. Some people only learn the hard way and spend years paying that debt off. The best way to deal with the problem is to look at the underlying realities and then make smarter decisions.

Fast Track Settlement Program Now Available Nationwide; Time- Saving Option Helps Small Businesses Under Audit

"The Internal Revenue Service today announced the nationwide rollout of a streamlined program designed to enable small businesses under audit to more quickly settle their differences with the IRS.The Fast Track Settlement (FTS) program is designed to help small businesses and self-employed individuals who are under examination by the Small Business/Self Employed (SB/SE) Division of the IRS. Modeled on a similar program long available to large and mid-size businesses (those with more than $10 million in assets), FTS uses alternative dispute resolution techniques to help taxpayers save time and avoid a formal administrative appeal or lengthy litigation. As a result, audit issues can usually be resolved within 60 days, rather than months or years. Plus, taxpayers choosing this option lose none of their rights because they still have the right to appeal even if the FTS process is unsuccessful. Jointly administered by SB/SE and the IRS Appeals office, FTS is designed to expedite case resolution. Under FTS, taxpayers under examination with issues in dispute work directly with IRS representatives from SB/SE's Examination Division and Appeals to resolve those issues, with the Appeals representative typically serving as mediator.The taxpayer or the IRS examination representative may initiate Fast Track for eligible cases, usually before a 30-day letter is issued. The goal is to complete cases within 60 days of acceptance of the application in Appeals."

Bankruptcy filings have declined in New York

There has been a decline in the number of bankruptcy filings nationally and it is attributed to lower unemployment and banks being more conservative about lending money. According to the Federal Reserve Bank of New York, overall household debt fell by $78 billion during the second quarter of 2013 and delinquencies decreased by 5.7 percent. Mortgage debt, which comprises the largest piece of household debts, was reduced by $91 billion dollars, falling to $7.84 trillion.

Bankruptcy can save a person from messy credit card debt

For most Long Island residents, a mountain of debt means years of repayments to creditors. But what if the mountain is so big that repayment in one's lifetime becomes virtually impossible? Fortunately, bankruptcy offers a way to level the mountain and start over.

IRS Announces 2014 Pension Plan Limitations

The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2014. Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in the Consumer Price Index did not meet the statutory thresholds for their adjustment. However, other pension plan limitations will increase for 2014. Highlights include the following:

DMX may have to convert from Chapter 11 to Chapter 7 bankruptcy

DMX has many fans on Long Island, New York, among other places, and it might have been a shock for his fans to learn that the rapper is in the middle of insolvency. However, at the moment, that is not the rapper's only problem. An official from the Justice Department is challenging his bankruptcy claim after seeing delays and inconsistencies.

How Chapter 13 bankruptcy can benefit someone in debt

Deciding which bills to pay and which to put off for as long as possible is a difficult problem that faces anyone who finds him or herself in a credit mess. In an economy that is continues to recover only slowly, many Long Island residents still find it difficult to make ends meet while dealing with debt collectors.