What to do when you receive a tax notice
Wood LLP

Wood LLP is one of the nation's premier boutique tax firms concentrating in areas of specific interest to trial lawyers, insurance companies and others concerned with tax issues related to settlements and litigation

Robert Wood Podcast Feed

Add to Google
The Legal Broadcast Network
Search
Login
Tax Law Resources

Entries in robert wood (3)

Wednesday
Jul182012

Independent Contractor or Employee...Why it Matters

Tax attorney Robert L. Wood, of Wood, LLP spoke with the Tax Law Channel about the distinction between an employee and independent contractor and the associated tax implications.  A regular employee gets a W2 and payroll tax withholding, where an independent contractor gets a gross check with no withholdings.  For an employer, when paying an independent contractor, there is a lack of employment taxes and the worker has to do the withholdings.
Source: blog.dollardays.com
Wood says that some employers, even today, are surprised when they label someone as an independent contractor, even with a written agreement that specifies so, and some government agency or private party comes months or years later with a lawsuit and says they have an obligation.  These are highly emotional disputes because there are many distinctions involved and these distinctions "become so vitriolic," says Wood.  He adds that many employers find it odd that a worker signs an agreement that they're an independent contractor and will pay their on taxes, yet files a claim later on.  A lot comes down to very pivotal, fundamental distinctions.
There is a dichotomy between someone who is a full-time employee and someone who is not an employee at all, notes Wood.  He says that an employer should apply the same criteria regardless of how many hours or percentage of time they're working.  The employer needs to look at the overall factors, such as tools and equipment control supply, as how they're paid matters.  Being paid by the hour is more consistent with employment, as being paid by the job is more consistent with an independent contractor.  
However, very frequently these rules have exceptions and these exceptions have exceptions, says Wood.  For example, lawyers are most typically paid by the hour and if you hire a lawyer for a 5 hour contract review, that's an independent contractor relationship, as the lawyer does not become an employee.
Overall, Wood agrees that it is important for an employer to look at this very carefully to avoid any potential penalties.
For more information on this matter, you can read Robert Wood's article.  Attorney Robert Wood, of Wood, LLP is one of the nation's premier experts on taxation, taxable damages, structured settlements and qualified settlement funds.
Wednesday
Jul182012

Divorce and Taxes, Featuring Tax Attorney Robert Wood

 

In divorce cases, there are simple rules applying to taxes.  Most people, however, get this wrong, even with professional help.  According to Attorney Robert Wood, one of the nation's premier experts on taxation, taxable damages, structured settlements and qualified settlement funds, the fundamental rule that causes most tax problems, is section 1041 of the internal revenue code: transfers between spouses during marriage or on cessation of marriage aren't taxed an unlimited amount of money.  There are also timing rules about how long after a marriage ends that the rules apply.

Robert Wood says, "the notion that something is a tax-free transfer doesn't mean that you don't have to plan for taxes in the future."  If a home is given to one spouse during the divorce settlement and the value of the home has increased, that spouse has to assume the tax liability of the home.

Alimony, or spousal support, is actually considered income to the spouse receiving the alimony and tax-deductible by the spouse paying the alimony.  Seems simple enough, right?  There are numerous IRS audits on both sides of a divorce finding that someone who is receiving alimony thinks it should be a property settlement and not income - and someone who is paying property settlement thinks it's like alimony and should be able to deduct it. 

Bottom line is when it comes to divorce, whether it's involving sizable amounts of money or not, the help of a professional is advised to help navigate through the tax rules.

Read Attorney Robert Wood's article on Forbes.com about this topic and for more information on Robert Wood, visit his website at www.woodporter.com.

Robert Wood is also a featured commentator on The Legal Broadcast Network and the Tax Law Channel.

 

 

 

Tuesday
Mar302010

The Tax Lawyer Robert Wood... "Ten Tax Tips For Stock Options"

If your company offers you restricted stock, stock options or certain other incentives, listen up. There are huge potential tax traps. But there are also some big tax advantages if you play your cards right.

Tax Lawyer Rob Wood discusses his article in Forbes.