C FEBRUARY 11-14, 2017 • LA WEEKEND ASIAN JOURNAL
Minding Your Finances Atty. RAymond BulAon ARE you feeling stuck and unable to move because of lingering debt problems in your life? Considering bankruptcy but not sure if it’s the right solution for you? For those who are struggling with debt problems, the decision to file for bankruptcy is never an easy one. So they put it off and hope that they never have to do it. Unfortunately, to some people who are at the end of their financial rope, it is simply inevitable. Is filing bankruptcy really that horrible? Isn’t that the worst thing you can do your credit? These are the common questions that people ask. Yes, there’s a certain feeling of shame or stigma associated with bankruptcy. After all, financial problems are a very personal matter and a lot of people won’t discuss their situation even with their closest friends or family members. This often creates isolation and people try to deal with their problems on their own- until one day they realize they cannot do it anymore. Do you know anyone who may be in this situa-
Barrister’s Corner Atty. Kenneth uRSuA ReyeS PRESIDENT Trump appears to be executing on his “America First” agenda by executing executive orders in record pace with the intent of securing American interest. However, these executive orders has affected certain rights of legal permanent residents and aliens residing in the United States. As a green card holder, you are still considered an Alien despite having many rights and privileges similar to US Citizens. You are not safe and may still be removed if you violate certain provisions of the immigration and nationality law. You should seriously consider applying for Naturalization or US Citizenship if you qualify. Generally, you have to have the following in order to qualify to apply for Naturalization:. Be at least 18 years old at the
Community Journal
Feeling paralyzed by debt problems? tion- perhaps you? Every day I see a lot of people who have suffered needlessly, sometimes for years, and have done nothing about their situation until one day they get sued by a creditor or their employer tells them that they just received an order to garnish the person’s wages. So they panic and decide to see a bankruptcy lawyer right away. At this point, they are so broke that they can barely put food on the table and keep the lights on. Why wait until you get to this point? In a lot of cases that I see, people could have done something much sooner to spare themselves from unnecessary debt suffering. In other words, if bankruptcy is in fact your only way out of debt, postponing the decision to implement a very much needed solution will only mean prolonging your agony and is not the smartest thing to do. Sooner or later, you will need to face your financial problems. Your problems will not magically disappear and solve themselves unless you do something about them. That’s a fact. A long time ago, our own U.S.
Congress decided that there has to be a way to help people in debt when they can no longer help themselves. So they passed bankruptcy laws to give people a chance for a fresh financial start. So the honest debtor, freed from the burden of heavy indebtedness, can now start a new life and become productive again. Thank God we have bankruptcy laws in this country that allow people to do that! Where would most people be today without having been given a second chance at one point in their lives? The simple point I am making in this article is that you are never beyond help no matter how difficult your financial situation may seem to be at the moment. Don’t let your fears paralyze you. If you don’t take action now to find out what your legal options are, your life will never change and someday, you will have no one but yourself to blame. Find an experienced and knowledgeable bankruptcy attorney who will take the time to listen and understand your situation. Once you get over your fears
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Applying for US citizenship in these turbulent times
time of filing for Naturalization. Be a permanent resident/ greencard holder for at least 5 years. Show that you have lived for at least 3 months in the state or USCIS district where you apply. Demonstrate continuous residence in the United States for at least 5 years immediately preceding the date of filing. Show that you have been physically present in the United States for at least 30 months out of the 5 years immediately preceding the date of filing. – Be able to read, write, and speak basic English. – Have a basic understanding of U.S. history and government (civics). – Be a person of good moral character. – Demonstrate an attachment to the principles and ideals of the U.S. Constitution. If there are no major issues in your case, your naturalization process should take approxi-
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Tax Tips VictoR Sy, cPA, mBA
DID you ever wonder how the IRS selects tax returns to be audited? Here’s a three-part series on how tax returns are received, stored, and chosen for audit: • How e-filed and paper-filed tax returns are verified, validated, and reviewed for accuracy. • How tax returns are stored into master files. • How IRS scores your tax returns for audit. Let’s explore the first part in this series – verification, validation, and review for accuracy. Upon receiving your income tax return, the IRS can: • Question any entry on your return, • Request an explanation of income that does not match Form W-2, 1099 and other data from 3rd parties, • Audit your return, or • Collect tax due on the return. How E-Filed Returns are Verified, Validated, and Accepted: • Electronic tax return data are transmitted to a designated Submission Processing Center. • Coding and correcting errors are sharply reduced with the elimination of manual chores.
Estate Corner
mately 5 months. If you pass the naturalization interview and your case is approved, the USCIS will schedule you for your Oath taking ceremony shortly thereafter. Atty. BriAn Lerner ***
Attorney Kenneth Ursua Reyes is a Certified Family Law Specialist. He was President of the Philippine American Bar Association. He is a member of both the Family law section and Immigration law section of the Los Angeles County Bar Association. He has extensive CPA experience prior to law practice. LAW OFFICES OF KENNETH REYES, P.C. is located at 3699 Wilshire Blvd., Suite 747, Los Angeles, CA, 90010. Tel. (213) 388-1611 or e-mail kureyeslaw@gmail.com or visit our website at Kenreyeslaw.com. ***
Please note that this article is not legal advice and is not intended as legal advice. The article is intended to provide only general, non-specific legal information. This article is not intended to cover all the issues related to the topic discussed. The specific facts that apply to your matter may make the outcome different than would be anticipated by you. This article does create any attorney client relationship between you and the Law Offices of Kenneth U. Reyes, P.C. This article (Advertising Supplement) is not a solicitation.
QUESTION: What is a ‘revocable’ Living Trust? Answer: A ‘revocable living trust’ for a single person (including a typical “survivor’s trust” that is revocable by the surviving settlor as described in) will provide for distributions to the settlor during the settlor’s lifetime. When a single settlor holds the revocation power and is also entitled to receive all of the trust property on revocation, it is not terribly difficult to draft the revocable trust. In other words, the term ‘revocable’ is when you can basically terminate and end the Living Trust. The Living Trust can be prepared so that it is revocable and so that you are able to change it, alter it, terminate it or
How IRS verifies your income tax returns for audit • Tax softwares assign a unique 14-digit Declaration Control Number to each return. • A unique Filing Location Code shown as the first two digits distinguishes returns as e-filed. • An electronic Management System provides data verification, data translation, and delivery. • Federal return is validated and accepted. • Any attached state return is transferred to a State Retrieval Subsystem. • State returns are then made available for retrieval by participating state revenue agencies. • This explains how state tax agencies learn of your IRS audit. • This also explains how the State Board of Equalization learns of undeclared sales tax. How Paper-Filed Returns are Sorted, Numbered, and Reviewed for Accuracy: • Tax returns are sorted upon arrival at a Service Center. • Payments included with the returns are removed and deposited. • Return and checks are assigned Document Locator Numbers for identification. • Different numbers may be assigned to the same taxpayer (all tied together by your social security number). • Business returns are tied by
employer identification numbers. • Each return is reviewed for completeness and mathematical accuracy. • Service Center personnel look for gross or obvious errors and fill in incomplete items • A computerized version is forwarded to the computing center in Martinsburg, WV. • Martinsburg generates refunds and notices. • It also notifies Service Centers if any other action is required to settle your account. Statistics: • Computers choose about 10% of all tax returns for audit consideration. • IRS classifiers manually screen and choose about 10% from this initial bunch. *** Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV - Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California. *** He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise - “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at vicsy@live.com. (Advertising Supplement)
What is meant by a ‘revocable living trust?
end it. It is very flexible. Question: Are there any issues of concern with the revocable Living Trust? Answer: Of course there are issues. When a joint trust is used for spouses or registered domestic partners, the issues and solutions may become more complicated—particularly if either settlor has substantial separate property. Clearly, the initial worksheet to list all property that you own and your spouse or domestic partner and the characterization and nature of the property. With a joint trust there is a substantial possibility that the day will come when both settlors are living but only one of them is competent. A settlor with substantial separate property and children from a prior marriage or partnership who becomes incompetent may be unwilling to allow the compe-
tent settlor to make unrestricted withdrawals of the incompetent settlor’s separate property—particularly when community property is available for the competent settlor’s support. Naturally, there should be provisions to explain and pursue this possibility. Question: What about community property. Answer: Similar issues can arise even with community property, but at least for community property withdrawn from a trust, the withdrawing settlor has fiduciary obligations to use the property for the benefit of the community. Community’ means you and your spouse. It should not be for separate property. Because the typical joint trust permits either settlor to revoke the trust with respect to community property, joint trust distribution provisions
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