February 08 Newsletter

FEBRUARY NEWSLETTER

Vol. 3, Issue. 1 February, 2008

ESTATE TAX CHANGES COMING

The one unqualified success of the Bush Adminstration has been the repeal of oppressive estate tax rates. Prior to this legislation, it was not uncommon for modest income taxpayers to wind up owing estate taxes over the inheritance of a small farm or even a suburban home. However, this legislation is scheduled to sunset in 2010 and congress has refused to date to re-enact it.

The net effect of this will be a roll back of estate tax rates to their former levels. Expert opinion right now is saying the "magic number" for estate tax exemption will probably settle at around one million dollars.

Consequently, estate plans that have been drafted taking advantage of the higher exemption rates should be carefully examined in light of the expected 2010 changes.

SENIORS MUST FILE 1040 TO RECEIVE TAX REBATE

The following is provided courtesy of the Oklahoma Baptist Integris Estate Planning Newsletter:

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Following unusually rapid action by Congress in passing the $151 billion Economic Stimulus Act of 2008, President Bush signed the bill. He indicated that the bill is a favorable "piece of legislation" and the rapid assistance for middle-income Americans reflects the principles of both parties.

The rebate bill will send a minimum check of $300 to Social Security recipients, disabled veterans and US taxpayers. Most of the 130 million beneficiaries will receive a check for $600 (single) or $1,200 (married). An additional payment of $300 for each dependent child is also available.

House Ways and Means Chair Charles Rangel (D-NY) spoke approvingly of the stimulus plan. However, he also suggested that more stimulus legislation may be needed. He stated, "I want to point out that we are not sending these tax rebates to lower-income families out of compassion or because they cannot afford to put a roof over their heads or food on their tables. This stimulus package is targeted to lower-income folks because their economic situation dictates that they have no choice but to spend the rebate check and purchase goods and services to spur our economy."

Editor's Note: The IRS will begin sending rebate checks in May. For the 20 million Social Security recipients and disabled veterans, there may be a challenge in receiving the check. The IRS will send checks to those persons who have filed IRS Form 1040. A married couple with income below $18,550 or single person with income under $10,050 is not required to file and many lower-income persons do not file IRS Form 1040. Even though there is no tax due, you will need to file in order to receive a rebate. The IRS will assist lower-income taxpayers through the Volunteer Income Tax Assistance Program (1-800-829-1040). There also is assistance through the AARP Tax Aide program (1-888-227-7669).

HB 1804 and Small Businesses

The U.S. Chamber of Commerce along with the Tulsa Metro Chamber of Commerce and the Oklahoma City Chamber of Commerce have filed a lawsuit in Federal Court asking that court to find key parts of Oklahoma House Bill 1804 unconstitutional. They allege that they are interested in the matter because HB 1804 will hinder business in the State of Oklahoma. To understand what is actually being said, small business people need to know what HB 1804 actually says instead of what people are saying it says. A short explanation of the business requirements of HB 1804 follows:

Title 21 Section 246 of the bill makes it a felony for any person or corporation to knowingly or with reckless disregard transport or harbor illegal aliens. This law can be used to prosecute so-called "coyotes" who charge exorbitant fees to transport illegal aliens into the United States but can also be used to prosecute U.S. corporations who knowingly recruit, hire and house illegal aliens because they will work cheaper and under far worse conditions than American workers.

Title 25 Section 1313 requires that all public employers (basically state and municipal employers) in the state of Oklahoma and their subcontractors participate in one of the Federal programs designed to assure that a person is legally present in the United States. Both ICE and the Department of Homeland Security operate such programs. This section also provides that an employer who fires, discharges or lays off a legal resident to hire an illegal alien has committed an unfair trade practice and may be sued by the discharged employee.

Title 68 Section 2385.32 provides that any employer who hires a person who cannot provide a valid Social Security Numer must still file a 1099 for wage paid and withold all required state withholding taxes. Any employer that fails to do so is liable for the withholding taxes.

The entire bill can be read at:

http://webserver1.lsb.state.ok.us/2007-08bills/HB/HB1804_int.rtf

AT THE PODIUM:

Bill Kumpe was a guest lecturer at Oklahoma Wesleyan University Feb. 12, 2008 on the subject of the "The Law Driven Crisis in Business Ethics."

TRUE COURTROOM JOKES:

Q: What happened then? A: He told me, he says, ‘I have to kill you because you can identify me.’
Q: Did he kill you?
Q: Were you present in court this morning when you were sworn in?

TULSA MUNICIPAL COURT RULES CHANGED

The court that most Tulsans are likely to appear in is the Tulsa Municipal Court. Most people represent themselves. This is the court where city traffic citations, parking violations and many misdemeanor criminal violations are heard. While it is a lower court, it is very busy and mistakes there can be expensive and embarrasing. Here are the new rule changes courtesy of the Tulsa County Bar Association:

RULE 1--PAYMENT OF FINES (NEW)

1.1 PAYMENT All fines and costs are due in full by 5pm on the day the final plea is entered by the Court.

1.2 TIME PAY ORDER If time to pay is requested, the Court may conduct a hearing to determine a defendant's ability or inability to pay. If the Court grants a Time Pay Order (TPO), the defendant's first payment is due by 5PM on the day the Order is entered.

1.3 COMMUNITY SERVICE When the defendant does not have the ability to pay or enter into a TPO, the Court may, after a hearing, enter a community service 'work day' order (WDO).

1.4 NO ADDITIONAL EXTENSIONS If a TPO or a WDO is granted, judicial approval of the terms of payment or community service shall be recorded in writing. Once an initial TPO or WDO order is granted, there will be no additional extensions granted.

1.5 JUDICIAL DISCRETION Any willful violation of Rule 1 may result in incarceration. Any exception to Rule 1, whether it be in the form of a TPO, WDO or incarceration is solely at the discretion of the Court.

BOTTOM LINE: Be prepared to pay at least SOMETHING on your fine on the day that your final plea is entered. And if you are granted community service and don't show up, you can go to jail.

RULE 2--PROOF OF LIABILITY INSURANCE (NEW)

2.1 PROOF 48 HOURS BEFORE COURT A person charged with a ticket for having no proof of liability insurance, who can produce acceptable written proof that liability insurance was in full force and effect at the time the ticket was written, may show that proof to the Records Department of the Tulsa Municipal Court up to 48 hours prior to their first court appearance (anytime between the hours of 8AM and 5PM) and be entitled to an automatic dismissal with no court costs.

2.2 PROOF WITHIN 48 HOURS OF ARRAIGNMENT If a person so charged does not provide proof to the Records Department prior to 48 hours of their first appearance, they must show acceptable proof to the Court on the date of their first appearance to be entitled to a dismissal with no costs.

BOTTOM LINE: If you can show up with valid proof of insurance at the Records Office within 48 hours of the citation it will be dismissed. Otherwise you will have to keep your court date.

RULE 3--ADD-ON POLICY (NEW)

3.1 ADDING ON AFTER MISSED APPEARANCE. Any person who has missed a Court appearance may add their case on to be heard only as provided by this rule Monday through Friday between the hours of 8am and 9am. A defendant or his Attorney may appear at the Records Division and ask that their ticket(s) be added to that morning's docket call.

3.2 JUDICIAL DISCRETION Any exception to this rule is solely at the Court's discretion.

BOTTOM LINE: If you miss your court appearance you can have your appearance added to the docket another day if you show up at the right time. But remember, if you miss an appearance a bench warrant may be issued to bring you in in custody. So take your court appearances seriously.

RULE 25*DRESS CODE (NEW)

25.1 ATTORNEY DRESS CODE Attorneys should dress in a fashion that will materially contribute to the dignity of the forum, the profession and the practice of Law. Men should wear coats and ties; women should wear suitable conservative attire.

25.2 DEFENDANTS AND VISITORS It is important that defendants and visitors understand that appropriate dress for the Court is always required. The Court is a place of business and all parties should wear clean, fitted clothes. Shirt and shoes are required. Attorneys should consult with their clients and witnesses in advance as to proper courtroom decorum and dress.

BOTTOM LINE: No flip flops, shorts, halter tops, tank tops, baggy "urban" attire, too short skirts, "boob shirts" etc. I used to tell people to come to court dressed the same the same way they would for church but that doesn't work any more since many people dress for church the same way they would to go to the lake or work on their car. Men should wear a jacket and a tie. Ladies should wear a nice dress and heels. The judge will appreciate your tacit recognition of the dignity of his court.

The Bill Kumpe Law Firm