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EPISODE 1: Starting your first business in Texas | Legal Thoughts

Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published August 08, 2022

Starting your first business in Texas

Legal Thoughts is an audiocast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This episode of Legal Thoughts is an audiocast where the Attorney, Coleman Jackson is being interviewed by Johana Powell, Tax Legal Assistant of Coleman Jackson, P.C. The topic of discussion is “Starting your first business in Texas”. You can listen to this podcast by clicking here:

If you enjoy this podcast, make sure to stay tuned for more episodes from the taxation, litigation, and immigration Law Firm of Coleman Jackson, P.C. Be sure to subscribe. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

TRANSCRIPT:
ATTORNEY: Coleman Jackson
LEGAL THOUGHTS
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY: Coleman Jackson

Welcome to Legal Thoughts

My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.

In addition to myself, we have Alexis Brewer – Tax Legal Assistant, Leiliane Godeiro – Litigation Legal Assistant, Gladys Marcos – Immigration Legal Assistant, and Johana Powell – Tax Legal Assistant.

On today’s “Legal Thoughts” podcast, our Tax Legal Assistant, Alexis Brewer, will be interviewing me on the important topic of: “Starting your first business in Texas.”

This is a series of podcasts about how to start your first business in Texas, and this is the first episode.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Hi everyone, my name is Johana Powell and I am a Tax Legal Assistant at the tax, litigation and immigration law firm of Coleman Jackson, Professional Corporation. Our law firm is located at 6060 North Central Expressway, Suite 620, right here in Dallas, Texas.

Good afternoon, Attorney; thank you for agreeing to sit with me as I interview you with respect to this interesting topic: “Starting your first business in Texas.”

Let’s jump right into this!

Question 1: Attorney would be business entrepreneurs have the resources to invest, want to invest and want to start their own businesses in Texas, but have lots and lots of questions about how to start a business in Texas.

What do you think about this Attorney?

Attorney Answer – Question 1:

Good afternoon, Johana.

Businesses in Texas can operate in several different entity structures, such as, Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Company, and Corporation.

The choice of entity selection involves a number of legal and operational concerns and should be made in consultation with a lawyer, accountant, and possibly an insurance agent and banker depending upon the type of activities that is intended to be conducted in the state of Texas.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Question 2: Attorney what types of legal and operational concerns are you talking about?

Attorney Answer – Question 2:

Johana, that is an excellent continuation question because it allows me to expand on my answer and explain why counsel and professional advice is so important when starting a business in Texas.

  1. Organizers intending to start businesses in Texas must consider the following legal and operational factors;
  2. The federal, state and local business tax structure in the State of Texas (Texas does not have income taxes, but does have sales taxes, property taxes and franchise taxes);
  3. The ease of formation and the startup cost of starting a business in the State;
  4. The accounting and operational requirements for operating a business in the State (The Texas Tax Code requires all businesses operating in the state to keep contemporaneous books and records, to maintain them for 4 years and make them available for inspection and audit examination at the request of the Texas Comptroller of Public Accounts);
  5. The rules and regulations governing the term of operations and rules governing winding down operations within the State (The Texas Business Organization Code governs business structuring matters within the State);
  6. The personal liability concerns for operating a business in the State;
  7. The special requirements, such as, licensing requirements for operating certain types of businesses within the State; and
  8. The unique requirements that might apply to government contractors if the business intends to sale goods and services to the federal, state or local government or to government agencies.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Attorney my next question is what happens if a business entrepreneur already has a business running but no paperwork filed with the State?

Attorney Answer – Question 3:

Johana that is a very complex question because it depends upon whether the business is structured outside of our state and is coming into Texas to do business or whether the business started in Texas but simply did not file any documents with the Secretary of State.  Let me first point out that out of state businesses doing business in Texas must register with the Secretary of State’s Office.  Let me also point out that the default form of business entity is a sole proprietorship when there is only one owner; and, when there are two or more owners; the default entity is a general partnership.  I will not address the various federal tax elections that might be available for businesses.  Let’s leave that discussion to another episode of “Starting Your First Business in Texas.”  Those starting or thinking about starting businesses in Texas should consult with legal counsel to avoid making legal mistakes when starting their first business enterprise in Texas.  Business structuring in Texas is a complicated legal issue which could expose those operating businesses within Texas without following the rules to serious civil and even criminal consequences.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Oh I see; it sounds like you are saying that a lot of complex business and tax laws are at play when starting a business in Texas.  My next question is this one:

Question 4: What is the difference and the advantages between all the business structures that you mentioned previously?

Attorney Answer – Question 4:

The main differences in the business structures that I mentioned earlier in our discussions in this ‘episode one’ on the topic “Starting Your First Business In Texas” are the liability and the tax concerns. Regarding the liability concerns; in a sole proprietorship and a partnership which are structures that are not incorporated, the owners of these two entity types do not enjoy liability protection for the acts of the business entity.  What I mean by that is that the owners’ personal assets are exposed to the liabilities incurred in the business.  As for the liability concerns for owners of corporations and limited liability companies, the owners of those type business structures are limited.  What I mean by that is that the owners are not personally liable for the debts of the business entity, unless they personally guarantee those business debts.  However, a general partner in a Limited Liability Partnership is personally liable for the debts of the limited partnership whether they guarantee the business debts or not.  In the Limited Partnership only limited partners enjoy liability protection.
Now with respect to the tax differences between these various business entities we are discussing here today, generally it is more favorable to structure a business as a Limited Liability Company or corporation.

Let me point out that non-profit businesses must register as such in the State and with the U.S. Treasury and meet state and federal tax requirements to be recognized as non-profit entities in this State and for federal tax purposes; otherwise, a business cannot operate as a non-profit entity in the State of Texas.

Johana this is an extremely complex question as to what constitutes advantages or disadvantages between the choice of entity selection.  Determining what type of business structure best fits any particular entrepreneur’s goals and objectives requires a conversation with a lawyer.  Many businesses law, contract law and tax law questions need to be discussed when determining what entity fits best to achieve the goals of the new business owner.

INTERVIEWER: Johana Powell, Tax Legal Assistant

Question 5: When a business entrepreneur is ready to do the paperwork what is the first thing they have to do?

Attorney Answer – Question 5:

It depends upon what type of business they decide to form.  Remember a sole proprietorship and general partnership can for formed in Texas without filing any paperwork with the Secretary of State’s Office.  For now Johana, let’s just leave any discussion concerning operating a business in Texas under an assumed name for another episode in this series.

The organizer of any business entity in Texas must first check on name availability with the Secretary of State’s office (this is a must first step with all the business entity types that we have discussed today because you cannot infringe on the trade marks or rights of other businesses in Texas by using a name that creates confusion in the market place.)  For those types of business entities who must file organizational papers with the Secretary of State, for example, limited liability company, and corporation to name a couple; the organizer must file organizational documents compliant with the Texas Business Organization Code.  The business should request an Employer Identification Number from the U.S. Treasury if they intend to hire employees and register with the Texas Workforce Commission, and obtain a Texas Sales Tax Permit if the Texas Tax Code requires it. The Comptroller is notified whenever a business files organizational documents with the Secretary of State’s Office.  Franchise tax reports must be filed for all businesses who are required to file organizational documents.  Johana again we don’t want to make this podcast episode too long; we like to keep our podcast to about 20 minutes each; but we can discuss all of these individual topics in separate bite-size episodes so that our audience and understand these things.

Let me clarify that there are different requirements for each structure of business and our listener’s should subscribe to our Legal Thoughts Podcast if they are interested in this topic or anything dealing with international, federal and state taxation, contracts, litigation or immigration legal matters.  Legal  Thoughts Podcast is published bi-weekly on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcasts.

INTERVIEWER: Johana Powell, Tax Legal Assistant. Wrap-Up

Attorney, thank you for siting with me today to explain how to prepare in the journey of owning your first business.

TAKEAWAY: It seems like the overall idea here is that selecting the best entity structure to conduct a business in Texas is complex and has many tax, operational and legal issues that entrepreneurs starting a business in Texas should consider and discuss with their legal counsel prior to investing a dollar.  It is kind of like plan your trip before you start driving; otherwise, you might be delayed getting to your destination and possibly not arriving there at all.

I am glad this topic “Starting a Business in Texas” is going to be a series of podcast where we will discuss other aspects to starting a Texas businesses.  That is super Attorney!

  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcast. Everybody take care!  And come back in about two weeks, for more taxation, contracts, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.
  • English callers: 214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100

Attorney Closing Remarks

This is the end of today’s Legal Thoughts!

Thank you all for giving us the opportunity to inform you about: “Starting your first business in Texas.”  Remember this is the first episode of Starting Your First Business in Texas.

If you want to see or hear more taxation, contract litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast.

Stay tuned!  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

Pandemic-Related Changes to the Child Tax Credit That Are Likely to End | Legal Thoughts

Coleman Jackson, P.C. | Transcript of Legal Thoughts
Published June 27, 2022

Pandemic-Related Changes to the Child Tax Credit That Are Likely to End

Legal Thoughts is an audiocast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This episode of Legal Thoughts is an audiocast where the Attorney, Coleman Jackson is being interviewed Alexis Brewer, Tax Legal Assistant of Coleman Jackson, P.C. The topic of discussion is “Pandemic-Related Changes to the Child Tax Credit That Are Likely to End”. You can listen to this podcast by clicking here:

If you enjoy this podcast, make sure to stay tuned for more episodes from the taxation, litigation, and immigration Law Firm of Coleman Jackson, P.C. Be sure to subscribe. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

TRANSCRIPT:

ATTORNEY: Coleman Jackson

LEGAL THOUGHTS

COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY: Coleman Jackson

Welcome to Legal Thoughts

My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.

In addition to myself, we have Alexis Brewer – Tax Legal Assistant, Leiliane Godeiro – Litigation Legal Assistant, Gladys Marcos – Immigration Legal Assistant, and Johanna Powell – Tax Legal Assistant.

On today’s “Legal Thoughts” podcast, our Tax Legal Assistant, Alexis Brewer, will be interviewing me on the important topic of: “The Child Tax Credit,” specifically, the “Pandemic-Related Changes to the Credit That Are Likely to End.”

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Hi everyone, my name is Alexis Brewer and I am a Tax Legal Assistant at the tax, litigation and immigration law firm of Coleman Jackson, Professional Corporation. Our law firm is located at 6060 North Central Expressway, Suite 620, right here in Dallas, Texas.

Good afternoon, Attorney; thank you for agreeing to sit with me as I interview you with respect to this hot tax topic: “Pandemic Related Child Tax Credit Changes Are Likely to End”.

Let’s jump right in,

Question 1: What is the Child Tax Credit and why was it created by the U.S. Congress?

Attorney Answer – Question 1:

Hello Alexis.

The Child Tax Credit (CTC) is a tax credit granted to taxpayers with qualifying children. The Child Tax Credit was implemented almost 30 years ago, and was designed to provide assistance to lower-income and middle-income families raising children.

The credit aims to reduce tax liability and, in some cases, entitles taxpayers to claim a tax refund despite otherwise not being required to file a tax return.

This Refundable portion of the Child Tax Credit is known as the “Additional Child Tax Credit”

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

That leads me right into my next question –

Question 2: What are tax credits and why are they beneficial to American taxpayers?

Attorney Answer – Question 2:

That’s a great question.

Tax credits are used to benefit taxpayers by reducing dollar-for-dollar the amount of federal income taxes owed.

Tax credits are beneficial because they directly reduce American taxpayers’ federal income tax burden.

  • For example, assume a taxpayer owes $4,000 before applying tax credits of $3,000; after applying the $3,000 tax credit, the taxpayer owes only $1,000 in federal income taxes.

Tax credits can also be refundable, and in those situations, taxpayers are entitled to a tax refund if their credit exceeds the total amount of taxes they owed.

  • So in our example above, if taxpayer started out owing only $2,000 before applying the $3,000 tax credit, his tax liability would be covered, and he would be able to claim a $1,000 refund.

This, in a nutshell, is the beneficial use of tax credits in the Internal Revenue Code.

Now let’s compare a tax credit to a tax deduction. Tax deductions are applied to reduce taxpayer’s income before calculating taxes owed.

Remember credits are applied after determining income & directly reduce taxes owed

  • For example, assume the taxpayer has income for the year of $50,000 and will receive a $3,000 deduction for mortgage interest paid on their home during the tax period. The deduction is applied to reduce the taxpayer’s taxable income down to $47,000. Taxpayer will then calculate taxes owed based on their specific tax bracket, and later apply tax credits to reduce their ultimate tax burden.

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Okay, that makes sense.

Question 3: Who qualifies for the Child Tax Credit and how is the benefit claimed?

Attorney Answer – Question 3:

The child tax credit can be claimed by parents and guardians for each qualifying child.

The term qualifying child is defined in the Internal Revenue Code. The term qualifying child means a dependent that meets all of the following requirements:

  1. Be under the age of 18 at the end of the tax year
  2. Be the taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
    1. Qualifying Child includes adopted children
  3. Provide no more than half of their own financial support during the year
  4. Have lived with you for more than half the year
  5. Be properly claimed as your dependent on your tax return
  6. Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
  7. Have been a U.S. citizen, U.S. national or U.S. resident alien
    1. Qualifying child must have a social security number, ITIN not valid.

To receive the full credit amount, taxpayer’s annual income must not surpass:

  • $150,000 if you are married and filing a joint return, or if you are filing as a qualifying widow or widower;
  • $112,500 if you are filing as a head of household; or
  • $75,000 if you are a single filer or are married and filing a separate return.

As annual income increases, phaseout amounts are triggered to reduce the additional credit amounts received per child.

Taxpayers claim the child tax credit by listing dependents on their annual 1040 tax return when filing their individual tax return.

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Attorney, now that you have given a brief overview of the child tax credit; namely-

  1. The congressional policy implementing the child tax credit was to give tax relief to low- and middle-income families with children;
  2. Who qualifies for the child tax credit is defined in the internal revenue code, and
  3. The child tax credit is claimed by taxpayers with a qualified child on their annual 1040 tax return.

Question no. 4: Attorney, can you explain how much taxpayers might receive in the form of a Child Tax Credit?

Attorney Answer – Question 4:

Remember that the Child Tax Credit was originally created to provide aid to lower-income and middle-income families with children. This is possibly the reason why Congress may revise thresholds and various other aspects of the Child Tax Credit during periods of economic struggle and other issues impacting American households with children.

A great example of changes made by Congress to the Child Tax Credit were those made during the Covid-19 global pandemic. To offset the economic impacts and displacements due to the devastation caused by Covid-19 on families, the Child Tax Credit was amended in 2021.

2021 Changes to the Child Tax Credit under the American Rescue Plan were as follows:

  1. Credit was increased to $3,000/child. $3,600 for children under 6.
  2. Credit was made fully refundable. Taxpayers were able to claim 2021 child tax credit as long as they filed a tax return. Even if they didn’t owe any federal income tax for the year.
  3. Advanced monthly payments were made to taxpayers with qualifying children from July 2021 through December 2021. Families with qualifying children received about $300 in monthly benefits instead of having to wait to receive their tax refund the following year.

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Wow those sound like some great benefits.

Question no. 5: What upcoming changes to the child tax credit should taxpayers be aware of?

Attorney Answer – Question 5:

Unfortunately, the enhanced Child Tax Credit was temporary and expired December 31, 2021. Unless Congress extends these Covid-19 Child Tax Credit modifications implemented during the pandemic; the child tax credit will revert back to what it was in 2020 for 2022 and future tax periods. As of yet, Congress has not addressed the issue. Families receiving the child tax credit must budget their household affairs accordingly–

Major changes to be expected in 2022:

  1. Credit will revert to $2,000/dependent
  2. Dependents are capped at 16 and younger
  3. Credit is NOT fully refundable
    1. Max refund in 2022 is capped at $1,500
    2. The taxpayer must have earned income to be eligible for refund
  4. There will be no advanced payments. That means child tax credit is claimed on the annual 1040 and is received when that return is accepted, processed and released by the IRS; not on a monthly basis.

INTERVIEWER: Alexis Brewer, Tax Legal Assistant

Question no. 6: So, what does this all mean for taxpayers?

Attorney Answer – Question 6:

Well Alexis, as I suggested before, taxpayers should manage their expectations and adjust their household budgets for 2022 and beyond since the 2021 modifications to the Child Tax Credit were in response to the upheavals caused by the Covid-19 global pandemic.  Warning; pay attention to this:

  1. Monthly payments of child tax credit are a thing of the past,
  2. Taxpayers will have to wait until they file their tax return for 2022 and subsequent tax periods
  3. Expect smaller child tax credit amount per child than you received during the pandemic relief

Taxpayers should keep an eye on Congress; but no one in Congress seem to be talking, these days of high inflation concerns, about extending the pandemic related child tax credit changes; however,Congress could still extend 2021 child tax credit changes.

Interviewer Wrap-Up

Attorney, thank you for siting with me today to explain what the Child Tax Credit is, why it was implemented in U.S. tax law and on the very likely possibility that the expanded Child Tax Credit benefits associated Covid-19 Pandemic Relief might end soon.

It seems like the take away here is that American households who were benefiting from these expanded child tax credit benefits might have to make some budget adjustments.

To our listeners who want to hear more podcast like this one please subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or where ever you listen to your podcast.  Everyone take care!  And come back in about two weeks, for more taxation, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.

English callers:  214-599-0431 | Spanish callers:  214-599-0432 |Portuguese callers: 214-272-3100

Attorney Closing Remarks

This is the end of today’s Legal Thoughts!

Thank you all for giving us the opportunity to inform you about: “Pandemic Related Child Tax Credit Changes Are Likely to End”

If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C.  Subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever you listen to your podcast.

Stay tuned!  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

Economic Impact Payments and other Tax Benefits for those Experiencing Homelessness | Legal Thoughts

Coleman Jackson, P.C. | Transcript of Legal Thoughts Podcast
Published June 28 ,2021

Economic Impact Payments and other Tax Benefits for those Experiencing Homelessness

Legal Thoughts is an audio cast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation, and immigration legal matters.

This episode of Legal Thoughts is an audio cast where the Attorney, Coleman Jackson is being interviewed Mayra Torres, Public Relations Associate of Coleman Jackson, P.C.  The topic of discussion is “Economic Impact Payments and other Tax Benefits for those Experiencing Homelessness“. You can listen to this podcast by clicking here:

If you enjoy this podcast, make sure to stay tuned for more episodes from the taxation, litigation, and immigration Law Firm of Coleman Jackson, P.C. Be sure to subscribe. Visit the taxation, litigation and immigration law firm of Coleman Jackson, P.C. online at www.cjacksonlaw.com.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
LEGAL THOUGHTS
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Tax Thoughts

  • My name is Coleman Jackson, and I am an attorney at Coleman Jackson, P.C., a taxation, government contracts litigation and immigration law firm based in Dallas, Texas.
  • Our topic for today is: “Economic Impact Payments and other Tax Benefits for those Experiencing Homelessness”.
  • Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant, Reyna Munoz, Immigration Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our public relations associate, Mayra Torres will be asking the questions and I will be responding to her questions on this important tax topic: “Economic Impact Payments and other Tax Benefits for those Experiencing Homelessness”.

Interviewer:  Mayra Torres, Public Relations Associate

  • Good afternoon everyone. My name is Mayra Torres, and I am the public relations associate at Coleman Jackson, P.C.  Coleman Jackson, P.C. is a law firm based right here in Dallas Texas representing clients from around the world in taxation, litigation and immigration law.
  • Attorney, thank you for joining us today to discuss Economic Impact Payments and other Tax Benefits for those Experiencing Homelessness.
  • Question 1:
  • Could you give us a general overview of the struggles people experiencing homelessness face in getting the economic impact payments?

Attorney Answers Question 1:

  • Good afternoon Mayra. Yes, I can give a general overview of the struggles people experiencing homelessness face in getting the economic impact payments.
  • There are many misconceptions about who can receive Economic impact payments and who is eligible.
  • Individuals who earned less than $75,000, or $150 if filed jointly, in 2019 or 2020 are eligible for the three rounds of economic impact payments. In 2020, the IRS issued two Economic Impact Payments as part of the economic stimulus efforts. The first payments were up to $1,200 person and $500 per qualifying child. The second payments were up to $600 per eligible person and $600 per qualifying child. For 2021, eligible taxpayers who did not receive the full amount, can claim it as the Recovery Rebate Credit when filing a 2020 tax return. These stimulus checks are a great addition to individuals’ income but for people who need it the most it can be hard to get.
  • Economic payments are sent automatically to most people, but the IRS can’t issue payments to eligible American when information is not available in the IRS’s system. This is due in part to the fact that some individual’s income is low enough that filing a tax return is not required.
  • People might be hindered from claiming economic Impact payments or other tax benefits because they do not have a permanent address or a bank account, or a job. However, as long as they have a Social Security number and are not being supported by someone else who can claim them as a dependent, they are eligible to get economic impact payments as well as other tax benefits.

Interviewer:  Mayra Torres, Public Relations Associate

Question 2.

  • Attorney, you mentioned that some individual’s income is low enough that they don’t have to file taxes. Can they still file a tax return if that is the case?

Attorney Answers Question 2:

  • Mayra, even though there is not a filing requirement for these individuals, they can still file a tax return to claim all the Economic impact payments and tax benefits they are eligible for.
  • Like I said the IRS needs information from people who don’t usually file a tax return. Even if an individual did not have any income in 2019 or 2020; or their income was not large enough to require them to file, they should still file a basic 2020 tax. This only way for the IRS to have that information is for people to file a basic tax return.
  • If an individual hasn’t filed a tax return in years, they can still qualify for the first two Economic Impact Payments when they file their 2020 return by claiming the Recovery Rebate Credit. There’s a special section on IRS.gov that can help: Claiming the 2020 Recovery Rebate Credit if you aren’t required to file a tax return. For the current third round of payments, people who are experiencing homelessness usually qualify to receive $1,400 for themselves. If they are married or have dependents, they can get an additional $1,400 for each of their family members.
  • Filing a 2020 federal income tax return that provides very basic information about the person is something that can be done electronically using a smartphone or a computer. When the IRS receives the return, it will automatically calculate and issue the Economic Impact Payments to eligible individuals.
  • Like I previously stated, as long as an individual has Social Security number and are not being supported by someone else who can claim them as a dependent, they are eligible to receive Economic Impact Payments and other tax benefits under the various programs, such as, the original CAREs Act and the American Rescue Plan Act of 2021.

Interviewer:  Mayra Torres, Public Relations Associate

Question 3:

  • Attorney, I know many individuals received their stimulus check through direct deposit.
  • What if an individual does not have a bank account to include on their tax return for direct deposit?

Attorney Answers Question 3:

  • Answer No 3:
  • Mayra, many financial institutions will help a person who doesn’t have a bank account to open a low-cost or no-cost bank account. Individuals who open accounts will then have an account and routing number available when they file and claim a direct deposit of the Economic Impact Payment.
  • The Federal Deposit Insurance Corporation (FDIC) website has all the details, in both English and Spanish, on opening an account online. The site can be reached by going to https://www.fdic.gov/getbanked.
  • Among other things, people can also use the FDIC’s Bank Find tool to locate a nearby FDIC-insured bank. In addition, Bank On, American Bankers Association, Independent Community Bankers of America, National Credit Union Administration have all compiled lists of banks and credit union that can open an account online.
  • Veterans can visit a website to view the Veterans Benefits Banking Program (VBBP) and learn how to access financial services at participating banks at https://veteransbenefitsbanking.org
  • For those with a prepaid debit card, they may be able to have their refund applied to the card. Many reloadable prepaid cards or mobile payment apps have account and routing numbers that can be provided to the IRS. Individuals would need to check with the financial institution to ensure the card can be used and to obtain the routing number and account number, which could be different from the card number.

Interviewer:  Mayra Torres, Public Relations Associate

Question 4:

  • Attorney, what happens if an individual is not able to choose the direct deposit option to receive their money from the IRS?

Attorney Answers Question 4:

  • If they are unable to choose direct deposit, the IRS can mail a check or debit card for the tax refund and the third Economic Impact Payment to an address of the individual’s choice.
  • Now this does not have to be a permanent address. Individuals experiencing homelessness can list the address of a friend, relative or trusted service provider, such as a shelter, drop-in day center or transitional housing program, on the return filed with the IRS.

Interviewer:  Mayra Torres, Public Relations Associate

Question 5:

  • Attorney, are there any resources available for low income individuals to help them file their taxes with the IRS?

Attorney Answers Question 5:

  • Yes Mayra, individuals can visit IRS.gov an click the File Your Taxes for Free link. Through the IRS’s Free File System, individuals with an AGI of $72,000 or less can file at an IRS partner site. The fastest and easiest way to claim the 2020 Recovery Rebate Credit and Earned Income Tax Credit (EITC) or to get the third Economic Impact Payment is to file a return electronically using IRS Free File. It can even be done using a smartphone or computer
  • If an individual would prefer to receive in-person assistance in filing their taxes and earn moderate income or less, can receive free tac help from trained community volunteer tax preparers. Through VITA (Volunteer Income Tax Assistance) and TCE (Tax Counselling for the Elderly), volunteers prepare basic tax returns at thousands of tax help sites nationwide-e. To find the nearest, location visit https://irs.treasury.gov/freetaxprep or call 800-906-9887. VITA/TCE site availability is updated throughout the filing season, so check back if there aren’t any sites listed nearby.

Interviewer:  Mayra Torres, Public Relations Associate

Question 6:

  • Attorney, what other tax benefits can homeless and low income taxpayers be entitled to receive when they file a tax return?

Attorney Answers Question 6:

  • Mayra, for those experiencing homelessness who have a job, filing a return can have benefits such as getting a refund based on various tax benefits, especially the Earned Income Tax Credit (EITC) for low-and moderate-income workers and working families. To get the credit, federal law requires that a worker live in the U.S. for more than half of the year and meet other requirements, such as having a valid Social Security number, claim a certain filing status and be a U.S. Citizen or resident Alien all year. Therefore, individuals experiencing homelessness, including those who reside at one or more homeless shelters, can meet these requirements.
  • For 2020, the income limit is $15,820 for singles with no children ($21,710 for couples with no children). The income limit is higher for people with children. For example, the limit is $50,594 for singles with three or more children ($56,844 for couples with three or more children). Those who make less than this amount must also meet other eligibility requirements. Because it’s a refundable credit, those who qualify and claim the credit could pay less federal tax, pay no tax, or even get a tax refund. The EITC can put up to $6,660 into a worker’s pocket. The amount varies depending upon the worker’s income, marital status, and other factors. The EITC has special qualifying rules for military members, clergy members and taxpayers and their relatives with disabilities. To find out if they’re eligible, individuals can go on IRS.gov and use the EITC Assistant. It’s available in both English and Spanish.
  • Even if a individual isn’t required to file a tax return, they should still do so to claim the 2020 Recovery Rebate Credit and Earned Income Tax Credit (EITC) and to receive the third Economic Impact Payment under the American Rescue Plan Act of 2021. Bottom line:  File a tax return because you might be entitled to receive 2020 recovery rebate credits and the earned income credit even though you do not earn enough money to ordinarily file an annual tax return.

Mayra Torres’ Concluding Remarks

  • Attorney thank you very much for this very comprehensive and informative presentation on this topic:  “Economic Impact Payments and other Tax Benefits for those Experiencing Homelessness.”
  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they listen to their podcast. You can follow our blogs by going to our law firm’s website at cjacksonlaw.com.  Everybody take care for now!  Come back in about two weeks, for more taxation, government contract litigation and immigration Legal Thoughts from Coleman Jackson, P.C., which is located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.
  • English callers: 214-599-0431; Spanish callers:  214-599-0432 and Portuguese callers:  214-272-3100.

THIS IS END OF “LEGAL THOUGHTS” FOR NOW

  • Thanks for giving us the opportunity to inform you about the “Economic Impact Payments and other Tax Benefits for those Experiencing Homelessness”.
  • If you want to see or hear more taxation, government contracts litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C. Stay tune!  Watch for a new Legal Thoughts podcast in about two weeks and check our law firm’s website at www. cjacksonlaw.com to follow our blogs.  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

Reporting Foreign Bank and Financial Accounts | LEGAL THOUGHTS

Coleman Jackson, P.C. | Transcript of Legal Thoughts Podcast
Published June 14 ,2021

FBAR - Reporting Foreign Bank and Financial Accounts

LISTEN:

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Mayra Torres, Public Relations Associate of Coleman Jackson, P.C.   The topic of discussion is “Reporting Foreign Bank and Financial Accounts“. You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Tax Thoughts

  • My name is Coleman Jackson, and I am an attorney at Coleman Jackson, P.C., a taxation, government contracts litigation and immigration law firm based in Dallas, Texas.
  • Our topic for today is: “Reporting Foreign Bank and Financial Accounts”.
  • Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant, Reyna Munoz, Immigration Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our public relations associate, Mayra Torres will be asking the questions and I will be responding to her questions on this important tax topic: “Reporting Foreign Bank and Financial Accounts.”

Interviewer:  Mayra Torres, Public Relations Associate

  • Good afternoon everyone. My name is Mayra Torres, and I am the public relations associate at Coleman Jackson, P.C.  Coleman Jackson, P.C. is a law firm based right here in Dallas Texas representing clients from around the world in taxation, litigation, and immigration law.
  • Attorney, thank you for joining us today to discuss the laws that require certain individuals, businesses and other entities to timely report Foreign Bank and Financial Accounts. A very important topic anyone with foreign bank accounts and other assets abroad.
  • Question 1:
  • Could you give us a general overview of the legal source of these legal rules obligating certain individuals to disclose their foreign bank, financial accounts, and other offshore asset holdings. I mean what law requires this; who does it apply to and what are the penalties for failing to comply?  These are all questions everyone with foreign assets probably needs the answer to.  So, Attorney could you explain this in terms easy to understand?

Attorney Answers Question 1:

  • Good afternoon Mayra. Yes, I can give a general overview as to what laws impose these requirements foreign bank accounts disclosures, why Congress say they enacted these statutes, who these disclosure rules apply to and what penalties are imposed on those who fail to timely disclose their foreign holdings.
  • Answer No. 1:
  • The Bank Secrecy Act (BSA) was enacted into law in 1970. The Bank Secrecy Act is codified in 31 USC Sections 5311 et seq.  The law authorizes the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCen) to administer and enforce the law.  The BSA gives FinCen authority to collect information from a U.S. person who have financial interests in or signatory   authority over foreign bank and financial accounts.   The BSA also gives FinCen numerous powers to enforce the law as it relates to financial institutions as well; but that is beyond the scope of this particular podcast.  I am only going to talk about the application of the law to certain U.S. persons as defined in the BSA.
  • The Report of Foreign Bank and Financial Accounts (FBAR), which is FinCen Form 114 required to be filed by April 15th annually to report certain foreign bank and financial holdings by U.S. persons. A timely FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is also a tool used by the United States government to identify persons who may be using foreign financial accounts to circumvent United States law. Information contained in FBARs can be used to identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.  So, this explains what Congress is getting at in terms of certain U.S. persons.  The law is designed to detect tax fraud, money laundering, and other nefarious financial criminal activity.
  • In April 2003, the Financial Crimes and Enforcement Network (FinCEN) delegated enforcement authority regarding the FBAR to the Internal Revenue Service (IRS). The IRS is now responsible for:
  • Investigating possible civil violations;
  • Assessing and collecting civil penalties; and
  • Issuing administrative rulings.
  • But let’s it be clear, Form 114, the annual FBAR filed with FinCen not the Internal Revenue Service. The April 2003 delegation of enforcement authority to the IRS had absolutely no impact on who must file an FBAR (Form 114), or where the Form 114 must be filed or when the FBAR is required to be filed.  FBAR disclosure are filed on FinCen’s website.

Interviewer:  Mayra Torres, Public Relations Associate

Question 2:

Attorney it is abundantly clear why disclosing foreign bank accounts and other offshore assets and financial holdings annually in an FBAR is so important.

Please explain in more detail exactly who is required to file the FBAR?

Attorney Answers Question 2:

  • Under the Bank Secrecy Act, a United States person must file an FBAR under certain conditions that I will explain in a minute. U.S. person is defined in the BSA as: a citizen of the United States, a resident of the U.S.,  Business structured under the laws of any state or territory of the United States; such as, a corporation, partnership, limited liability company, trust and estate.  A U.S. person must file an FBAR with the Financial Crimes Network on FinCen Form 114 to report:
  • a financial interest in or signatory or other authority over one or more financial accounts located outside the United States if
  • the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.
  • Generally, an account at a financial institution located outside the United States is a foreign financial account. Whether the account produced taxable income has no effect on whether the account is a “foreign financial account” for FBAR purposes. But you don’t need to report foreign financial accounts that are:
  • Correspondent/Nostro accounts,
  • Owned by a governmental entity,
  • Owned by an international financial institution,
  • Maintained on a United States military banking facility,
  • Held in an individual retirement account (IRA) you own or are beneficiary of,
  • Held in a retirement plan of which you’re a participant or beneficiary, or
  • Part of a trust of which you’re a beneficiary, if a U.S. person (trust, trustee of the trust or agent of the trust) files an FBAR reporting these accounts.
  • You don’t need to file an FBAR for the calendar year if:
  • None of your foreign financial accounts, either singularly or combined exceeded $10,000 at any time during the calendar year reported.
  • All your foreign financial accounts are reported on a timely filed consolidated FBAR.
  • All your foreign financial accounts are jointly-owned with your spouse and your spouse and you authorized your spouse to file the jointly held accounts on a timely filed Form 114 by executing Form 114a.  If you own separate foreign accounts, you must file a timely Form 114.

Interviewer:  Mayra Torres, Public Relations Associate

  • I see, so if a taxpayer has foreign financial accounts and the aggregate maximum value exceed $10,000 at any time during the calendar year then they must file Form 114 with the Financial Crimes Network.
  • Question 3:
  • Attorney, what is the due date for filing Form 114 with the Financial Crimes Network to report foreign bank account holdings?

Attorney Answers Question 3:

  • Mayra, that is an excellent question because there are potential grave civil fines and potential criminal consequences for U.S. persons who fail to timely file Form 114 with the Financial Crimes Network. The FBAR is an annual report filed on FinCen Form 114.  The FBAR is due April 15th following the calendar year reported.
  • Taxpayers are allowed an automatic extension to October 15th if they fail to meet the FBAR annual due date of April 15th. You don’t need to request an extension to file the FBAR by October 15th. The October 15th  extension is automatic.
  • If you are affected by a natural disaster, the government may further extend your FBAR due date. It’s important that you review relevant for complete information.
  • If a filer does not have all the available information to file the return by the automatic extension date of October 15th, the filer should file as complete a return as possible and amend the report when additional or new information becomes available.

Interviewer:  Mayra Torres, Public Relations Associate

Question 4:

Attorney, what could happen to a taxpayer who fails to file their required FBAR by the extended filing deadline of October 15th?

Attorney Answers Question 4:

  • If a required FBAR is not filed by the appropriate date the U.S. Person in violation of the Bank Secrecy Act may be subject to civil monetary penalties and/or criminal penalties, or both, for FBAR reporting and/or recordkeeping violations. The exact penalty imposed will depend on all the facts and circumstances of each case. The current maximum penalties for failing to file required FBARs or delinquent FBARs are as follows:
  • For Non-Willful Violations: U.S. persons who inadvertently violate the law are subject to civil penalties up to a maximum of $12,921 for each negligent violation. The 9th Circuit Court of Appeals ruled earlier this year that 31 U.S.C. Section 5341 permits the IRS to impose only one non-willful penalty when an untimely FBAR is filed, no matter the number of foreign bank accounts are held by the taxpayer; but this issue is not settled in all the Circuits.  I don’t think the 5th Circuit Court; which is the Circuit Court of Appeals with federal court jurisdiction over Texas; have not as far as I know addressed this issue as to whether the delinquent FBAR penalty can be imposed based on the number of unreported accounts or whether it is to be imposed on each untimely Form 114.  Taxpayer’s need to understand that the IRS takes a very aggressive posture when imposing the penalties authorized under the Bank Secrecy Act.  I am merely warning U.S. persons with unreported foreign accounts.  The penalties for violations of the Bank Secrecy Act are very severe and are aggressively pursued by the IRS.  The courts tend to decide matters regarding whether the taxpayer acted non-willfully or willfully in kind of mechanical manner; in the sense that, the annual tax return specifically asks the question as to whether the taxpayer owns, has signatory authority over or control foreign accounts.  That question on the Form 1040 tax return must be answered yes or no.  The Form 1040 tax return instructions cautions the taxpayer to consult the form’s instructions before answering the question.  With that said, let’s talk about penalties for willful violations of the Bank Secrecy Act because proving that a taxpayer’s actions were inadvertent or non-willful can be challenging.
  • For Willful Violations: U.S. persons who fail to file Form 114 or fail to retain records of the foreign accounts willfully may be subject to  civil penalties of up to the greater of $129,210, or 50% of the amount in the account at the time of the violation.
  • For a Negligent Violation by Financial Institutions or Non-financial Business or Trade: These types businesses who negligently violate the Bank Security Act’s FBAR requirements may be subject to a negligence civil penalty up to $1,118.  This penalty does not apply to individuals who violates the BSA.
  • For a Pattern of Negligent Activity by a Financial Institution or Non-financial Trade or Business: These types of businesses who engages in a patter of negligent violations of the FBAR rules may be subject to civil penalty for Negligent Violation of $1,078 with respect to any such violation, not more than $86,976. These pattern of negligent activity penalties does not apply to individuals; they apply to businesses.
  • These penalties will be applied if an FBAR is filed late or not at all. If the taxpayer has not been contacted by the IRS about the late FBAR and are not under investigation by the IRS, they may file a late FBAR. To keep penalties to a minimum, this should be done as soon as possible.
  • When filing a late FBAR, it gives the option to provide further explanation of the late filing or indicate whether the filing is made in conjunction with an IRS compliance program. If the foreign financial account is properly reported the late-filed FBAR, and the IRS determines that the FBAR violation was due to reasonable cause, no penalty will be imposed.
  • Taxpayers can be audited by the IRS. Taxpayer’s can file Form 2848, Power of Attorney and Declaration of Representative to authorize a lawyer or other professional to represent them in delinquent FBAR matters and IRS investigations regarding foreign bank accounts and foreign assets and unreported earnings.  Sometimes the IRS discover FBAR issues during routine audit examinations of the taxpayer’s tax returns.  Sometimes delinquent FBARs are discovered during BSA/ Anti-money laundering examinations, counter-terrorist investigations and during informal and formal financial crimes enforcement actions by the Financial Crimes Network and the Office of Foreign Assets Control.  Further, banks must also make regular Suspicious Activity Reports under the Bank Secrecy Act.   So as you can see there are a lot federal agencies involved with enforcement of the Bank Secrecy Act and there are numerous ways the United States government can learn about taxpayer’s foreign accounts.  There are potentially substantial civil penalties that could be assessed against non-compliant taxpayers with unreported foreign accounts and even potentially criminal exposure for FBAR violators.

Interviewer:  Mayra Torres, Public Relations Associate

  • Wow, Attorney, hearing about all those penalties; it is obvious that the IRS and other law enforcement agencies of the U.S. government has a lot of power to enforce these rules against people who don’t follow the Bank Secrecy Act exactly right! The government doesn’t take this matter lightly. It is very important for FBARs to be filed accurately and by the appropriate due date.
  • Question No. 5
  • So Attorney, explain how and where does a taxpayer file an FBAR?

Attorney Answers Question 5:

  • An FBAR must be filed electronically through the Financial Crimes Enforcement Network’s (FinCen) BSA E-Filling System . You access FinCen’s BSA E-Filing Web Portal by going to fincen.treas.gov.
  • I mentioned this fact once before during this presentation; but let me say it again; FBARs are not filed with the taxpayer’s annual tax return. Form 114 is used to file FBARs.  Form 114 is not a tax form.
  • If the taxpayer desires to file Form 114 in paper format, the taxpayer must call FinCEN’s Regulatory Helpline at 800-949-2732 to request an exemption from e-filing. If FinCEN approves the request, FinCEN will send the paper FBAR form to complete and mail to the IRS at the address in the form’s instructions. FinCen will not accept paper-filings on TD F 90-22.1, which is obsolete and was replaced by Form 114 several years ago now) or a printed FinCEN Form 114, which is currently used for e-filing only.
  • If the taxpayer would prefer to have someone else file their FBAR on their behalf, they must sign a Record of Authorization to Electronically File FBARs, to authorize that individual or law firm to electronically file Form 114 on their behalf. FinCEN Report 114a; which I mentioned a while back in this discussion when I was talking about joint-holders of foreign accounts, are not filed with FinCen. Form 114a is for recordkeeping purposes only.  The joint-account holders must present this form for examination in the event FinCEN or IRS ask for it.
  • I would like to note that the law requires that these records be kept for five years from the due date of the FBAR.
  • Records must be kept for each foreign account that are required to be included on Form 114. The records must establish the name on the account, the account number, name and address of the foreign bank, type of account, and maximum value during the year. The Bank Secrecy Act does not precisely mandate the type of document that must be kept by the taxpayer.  It could possibly be bank statements or a copy of the filed FBAR.  Whatever document the taxpayer use to substantiate this required information, must be kept for five years after the due date of the FBAR.
  • In the case of an officer or employee who files an FBAR to report signatory authority over their employer’s foreign financial accounts; the employee is not required to personally keep records on these accounts. But their employer must keep the required records for these foreign accounts.

Mayra Torres’s Concluding Remarks:

  • Attorney thank you very much for this very comprehensive and informative presentation on the topic:  “Reporting Foreign Bank and Financial Accounts.”
  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they listen to their podcast. You can follow our blogs by going to our law firm’s website at cjacksonlaw.com.  Everybody take care for now!  Come back in about two weeks, for more taxation, government contract litigation and immigration Legal Thoughts from Coleman Jackson, P.C., which is located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.
  • English callers: 214-599-0431; Spanish callers:  214-599-0432 and Portuguese callers:  214-272-3100.

Attorney’s Concluding Remarks:

THIS IS THE END OF “LEGAL THOUGHTS” FOR NOW

  • Thanks for giving us the opportunity to inform you about the “Reporting Foreign Bank and Financial Accounts”.
  • If you want to see or hear more taxation, government contracts litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C. Stay tune!  Watch for a new Legal Thoughts podcast in about two weeks and check our law firm’s website at www. cjacksonlaw.com to follow our blogs.  We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

United States Temporary Protected Status designation for Venezuelans residing in the United States on March 8, 2021 | LEGAL THOUGHTS

Coleman Jackson, P.C. | Transcript of Legal Thoughts Podcast
Published April 26,2021.

United States Temporary Protected Status designation for Venezuelans residing in the United States on March 8, 2021

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Reyna Munoz, Immigration Legal Assistant of Coleman Jackson, P.C.   The topic of discussion is “Immigration Matters You Ought to Know About: United States Temporary Protected Status designation for Venezuelans residing in the United States on March 8, 2021”. You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Immigration Thoughts

  • My name is Coleman Jackson, and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, and immigration law firm based in Dallas, Texas.
  • Our topic for today is: Immigration Matters You Ought to Know About: United States Temporary Protected Status designation for Venezuelans residing in the United States on March 8, 2021. Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Reyna Munoz, Immigration Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our immigration legal assistant, Reyna Munoz, will be asking the questions and I will be providing the answers to the questions on this very important immigration topic: Immigration Matters You Ought to Know About: United States Temporary Protected Status designation for Venezuelans residing in the United States on March 8, 2021.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • Hi Attorney, thank you for joining me today and for taking the time to answer a few questions that I have in regard to the recent USCIS announcement about designating Venezuela Temporary Protected Status.

Question No. 1

Attorney, can you tell me, what this is about?

Attorney Answers Question 1:

  • Hi Reyna, yes what you heard is correct! On March 8, 2021, Secretary Mayorkas designated Temporary Protected Status or TPS for Venezuela. What this does is it allows Venezuelan nationals that are currently residing in the United States to file an initial application for TPS.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

Question 2:

That is great news attorney, I’m sure that this will help a lot of Venezuelan nationals. How long do Venezuelan nationals get to have this new Temporary Protected Status?

Attorney Answers Question 2:

  • Reyna, the TPS designation for Venezuelans is currently for a period of 18 months. That is it currently ends in September 2022.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

Question 3:

Why was this TPS designation for Venezuelans made at this time?

Attorney Answers Question 3:

  • TPS was designated for Venezuela because of the extraordinary and temporary conditions that prevent Venezuelan nationals from returning safely to their home country. The extreme and harsh conditions that currently confronts Venezuela are:
  • Hunger and malnutrition and lack of basic essentials for safety and security and human dignity
  • A growing influence and presence of non-state armed groups
  • Repression and recrimination by state actors, their enablers, and other bad people
  • A crumbling Venezuelan infrastructure

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • That is very interesting information attorney. It sounds like TPS for Venezuelans is a humanitarian response to dangerous times for our neighbors in Venezuela.

Question No. 4:

Who is eligible to apply for Temporary Protective Status under the new Venezuelan TPS designation?

Attorney Answers Question 4:

  • That is a very thoughtful and insightful question, Reyna, those individuals who are nationals of Venezuela who can demonstrate continuous residence in the United States as of March 8, 2021 are eligible to apply for Temporary Protected Status under this TPS designation. That means they must have been physically residing in the United States on March 8, 2021.
  • These TPS applicants will also have to go through security and background checks to determine their eligibility for TPS.
  • It’s extremely important that Venezuelans residing outside of the United States do not fall for scams and other misinformation from smugglers or others claiming that the border is now open. They must have been residing in the U.S. on March 8, 2021.  People should not risk their lives, or their families lives and health with false information that they can come from Venezuela now and claim TPS. This TPS designation is limited to Venezuelan nationals and is not applicable to citizens from other South American countries.
  • Furthermore, due to the coronavirus pandemic, travel and admission restrictions remains in full force and effect on the U.S. border.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

Question 5:

  • Thank you for explaining this in such a comprehensive manner, attorney. It is very important that people understand that:
  • they must be a Venezuelan national to be eligible for TPS under the Venezuelan TPS designation; and
  • they must have been residing in the United States on March 8, 2021;
  • Question No. 5:
  • When and how can eligible individuals apply for TPS?

Attorney Answers Question 5:

  • Those that would like to file an application for TPS will have to submit an application within the 180-day registration period, that is, March 9, 2021 through September 5, 2021. Keep in mind that they have to be able to show continuous residence in the United States since March 8, 2021 and continuous physical presence in the United States since March 9, 2021.
  • Form I-821 Application for Temporary Protected Status will have to be filed with USCIS and if the individual wishes to apply for employment authorization, they will have to file Form I 765. Furthermore, if a ground of inadmissibility applies, then Form I 601, Application for Waiver of Grounds of Inadmissibility will also have to be filed with the TPS package.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • Thank you for that information, attorney.

Question No. 6:

What sorts of evidence will need to be submitted to USCIS in support the TPS application?

Attorney Answers Question 6:

  • The individual can expect to submit evidence such as identity and evidence to demonstrate that they are a national of the designate country such as:
    • A copy of their passport
    • A copy of their birth certificate
    • Any national identity that includes a photograph and/or fingerprint issued by their country
  • The immigrant can also expect to submit entry evidence such as:
    • A copy of their passport; and
    • I-94 Arrival/Departure record
  • Finally, continuous residence evidence will also have to be submitted. This could be evidenced by such documents and information as the following:
    • Employment records
    • Rent receipts, utility bills, receipts or letters from companies
    • School records
    • Hospital records
    • Attestations by church, union, or other organization officials

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • I’m sure a lot of people that are expecting to apply for TPS will find this information very helpful, attorney.

Question No. 7:

Is there a fee to apply for TPS?

Attorney Answers Question 7:

  • As of March 10, 2021, if the immigrant is applying for Venezuelan TPS and is between ages of 14 and 65 years old and they are applying for an employment authorization card, then the filing fee for the I-821 is $50, the biometric fee is $85, and the I-765 fee is $410 bringing the total USCIS filing fee to $545. These fees could be changed by the government with little notice.
  • Under certain facts and circumstances the TPS applicant can file Form I-912, Application for Fee Waiver in these TPS cases.

Reyna Munoz’s Concluding Remarks:

  • Thank you for this detailed explanation of the new TPS designation for Venezuelan nationals, attorney. Hopefully, many of our Legal Thoughts Podcast listeners or their friends from Venezuela will find this update on the new TPS designation for Venezuelans very helpful.
  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they listen to their podcast for more taxation, litigation, and immigration Legal Thoughts podcasts. Everybody take care!  Read our taxation, government contract litigation and immigration law firm’s blogs at www.cjacksonlaw.com.  Coleman Jackson, P.C., is located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620 Dallas, Texas 75206.
  • English callers: 214-599-0431 | Spanish callers:  214-599-0432 | Portuguese callers:  214-272-3100.

Attorney’s Concluding Remarks:

THIS IS THE END OF “LEGAL THOUGHTS” FOR NOW

  • Thanks for giving us the opportunity to inform you about “Immigration Matters You Ought to Know About: United States Temporary Protected Status designation for Venezuelans residing in the United States on March 8, 2021.” If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C. Stay tuned! We are here in Dallas, Texas and want to inform, educate, and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

Immigration Matters You Ought to Know About: Undocumented Immigrants and the I-601 and I-601A Unlawful Presence Waivers | LEGAL THOUGHTS

Coleman Jackson, P.C. | Transcript of Legal Thoughts Podcast
Published March 29, 2021.

Undocumented Immigrants and the I-601 and I-601A Unlawful Presence Waivers

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Reyna Munoz, Immigration Legal Assistant of Coleman Jackson, P.C.   The topic of discussion is “Immigration Matters You Ought to Know About: Undocumented Immigrants and the I-601 and I-601A Unlawful Presence Waivers”. You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Immigration Thoughts

  • My name is Coleman Jackson, and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, immigration law firm based in Dallas, Texas.
  • Our topic for today is: Immigration Matters You Ought to Know About: Undocumented Immigrants and the I-601 and I-601A Unlawful Presence Waivers. Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Reyna Munoz, Immigration Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our immigration legal assistant, Reyna Munoz, will be asking the questions and I will be providing the answers to the questions on this very important immigration topic: Immigration Matters You Ought to Know About: Undocumented Immigrants and the I-601 and I-601A Unlawful Presence Waivers.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • Attorney, thank you for joining me today and for taking the time to discuss the Application for Waiver of Grounds of Inadmissibility, I 601 and the Application for Provisional Unlawful Presence Waiver, I 601A.

Question 1:

Attorney, can you tell me, what is the I 601 and the I 601A waiver?

Attorney Answers Question 1:

  • Sure Reyna. A lot of immigrants in Texas came to the U.S. undocumented; therefore, they need a Waiver of Unlawful Presence. many undocumented immigrant parents waste their money when their U.S. citizen children turn 21. They waste their money because although they can successfully get their I-130, Petition for Alien Relative petition approved, their U.S. citizen children do not qualify for the U.S. person who will suffer extreme and unusual hardship if the undocumented immigrant is not granted an I-601 waiver for unlawful presence in the U.S.  Bottom line, it’s a waste of money to file an I-130 when you do not have a qualifying relative to satisfy Form I-601, Application for Waiver of Grounds of Inadmissibility based on the unlawful presence ground of inadmissibility.  The undocumented immigrant needs a qualifying relative who will suffer extreme hardship if the undocumented immigrant is not permitted to immigrate to the United States.  The extreme hardship requirement for a waiver of unlawful presence can only be satisfied by a qualifying relative, such as, a U.S. citizen parent or U.S. citizen spouse.  Repeat, U.S. citizen children do not and cannot satisfy the qualifying relative requirement; therefore, unless the undocumented immigrant has a qualifying relative, it is a waste of time, effort, and money for their 21-year-old child to file an I-130, Petition for an Alien Relative on their behalf if the intent is to get a Green Card through the child.  A big log or bolder is blocking the road for the undocumented immigrant seeking a Green Card through their 21-year-old child.  The parents need a qualifying relative! If they had a qualifying relative, the parents probably would have gotten their Green Cards years ago.
  • Form I-601A, Provisional Waiver of Unlawful Presence is a waiver request based on humanitarian concerns of immigrants leaving the U.S. who are barred from returning for 5 to 10 years due to the fact that they have spent more than 180 continuous days unlawfully in the U.S. Before the I-601A provisional waiver process was implemented, these parents and other undocumented immigrants would leave the U.S. without an I-601 Waiver and when they got to the Consulate in their home country, they learned that they needed a waiver of unlawful presence to return to the United States.  The waiver was typically then prepared in the foreign country and submitted for approved by the U.S. Consulate Office.  Often times the Consulate would deny the waiver and therefore the immigrant would get stuck for 5 to 10 years in their home country with their husband, or wife and children remaining up here.  Family separation occurred as an inherent feature of the immigration waiver process.  The Form I-601A was created to hopefully prevent this harsh family separation reality.  Form I-601A can only be used to request waiver for unlawful presence.  It cannot be used to request a waiver or pardon for any other reason of inadmissibility of the undocumented immigrant.  For example, if there are crimes in the immigrants’ background or medical or health issues, DUI issues, Domestic Violence issues or other inadmissibility issues with the immigrant, the I-601A waver cannot be used for these grounds of inadmissibility.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • Thank you for this detailed explanation Attorney. You’re correct, a lot of times undocumented people think that once their child turns 21, they will immediately be able to apply for a green card, but it is important for them to understand that this is a process and they need a qualifying relative who suffer extreme and unusual hardship in the event the undocumented immigrant leaves the U.S. and is not permitted to return for 5 to 10 years.

Question 2:

Attorney, what are the differences between the I 601 and the I 601A?

Attorney Answers Question 2:

  • The I 601 waiver is used to request waiver or pardon for a host of areas of inadmissibility, such as, unlawful presence, physical or mental health (such as, DUI, domestic violence could be considered by some Consulate Officers as indications of mental illness); whereas, the I 601A provisional waiver can only be used to request a pardon for unlawful presence in the U.S. Inadmissibility based on mental health, physical health, crimes, or other grounds of inadmissibility are not eligible for consideration in an I 601A waiver case.
  • The I 601 waiver is granted to pardon numerous offending grounds of inadmissibility; whereas the I 601A waiver is a provisional waiver of unlawful presence.
  • The I 601 waiver is typically filed at the U.S. Consulates Office by undocumented immigrants seeking a green card through a qualifying relative; whereas, the I-601A provisional waiver of unlawful presence is filed inside the U.S. before the immigrant leaves the United States. It is provisional in the sense that the Consulate Officer will make the final determination as to whether the immigrant is admitted to return to the United States.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • It sounds like the these understanding the use and purpose of these two forms and this whole area of immigration waiver law are incredibly important topics for many immigrants residing in Texas and throughout the Southwest.

Question 3:

Who can file an I 601, Application for Waiver of Grounds of Inadmissibility?

Attorney Answers Question 3:

  • Reyna, the following types of immigrants may file Form I 601, Application for Waiver of Inadmissibility:
    1. Those applying for adjustment of status
    2. Those applying for Temporary Protected Status, TPS
    3. Those who are applying for adjustment of status under the Nicaraguan Adjustment and Central American Relief Act
    4. Those who are applying for an immigrant visa or adjustment of status under Violence Against Women’s Act (VAWA), And finally,
    5. Special Immigrant Juveniles who have an approved I 130, Petition for Alien Relative.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

Question 4:

Thank you for that detailed list, attorney. Now tell me, who is eligible to file the I 601A, Provisional Unlawful Presence Waiver??

Attorney Answers Question 4:

  • Reyna, those eligible to file the I 601A Provisional Waiver for Unlawful Presence must meet the following requirements:
    1. They must be physically present in the United States at the time of filing;
    2. They must be least 17 years of age or older;
    3. They must have a case pending with the United States Department of State because they are: (A) the principal beneficiary of an approved I-130 or they are the beneficiary of an approved I 360; or (B) they are the spouse or child of a principal beneficiary of an approved immigrant visa and have paid the immigrant visa processing fee; or (C) they have been selected by the Department of State to participate in the Diversity Visa program; and
    4. They must be able to demonstrate that denying admission to the United States would result in extreme hardship to a relative U.S. citizen spouse or U.S. citizen lawful permanent resident or parent.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

Question 5:

Attorney, in regard to the I 601A you mentioned “extreme hardship,” what exactly does this term mean in U.S. immigration law?

Attorney Answers Question 5:

  • That is correct, Reyna. The applicant must demonstrate that being denied the entrance back into the United States will cause extreme hardship to their qualifying relative. Some of the areas of the qualifying relative’s life that might be relevant in support of an I-601 or I-601A, Application for Waiver to overcome unlawful presence ground of inadmissibility are:
    1. Education: Disruption of current academic programs or loss of opportunity for higher education due to lower quality education in home country;
    2. Personal considerations: Such as separation for close relatives in the United States
    3. Financial considerations: Cost of caring for family members or loss of job
    4. Health of the qualifying relative: Ongoing medical treatments in the United states
    5. Special Considerations: fears of persecution or cultural differences in home country
  • Keep in mind that the U.S. citizen relative must prove that they will suffer extreme financial hardship if their immigrant relative is not allowed back into the country. The hardship must be more than the mere normal and expected financial difficulty derived from lack of the undocumented immigrants earned income, family relations or household support. The hardship that might be experienced by the undocumented immigrant or their children are not factors that the adjudicators typically would consider when evaluating waiver cases.  Even when a qualifying relative meets the extreme hardship requirement, it simply means the adjudicator of the waiver application can exercise discretion and grant the waiver.  It is not mandatory that the waiver be granted even when extreme hardship is clearly shown.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • Attorney thank you for summarizing what term “extreme hardship” means in the unlawful presence waiver context. This is such an important fact and potential hurdle for all immigrants who must meet the extreme hardship requirement to overcome the unlawful presence ground of admissibility.

Question 6

Attorney, my final question regarding the unlawful presence waiver is this:   Is there a filing fee for Form 1 601 and Form I 601A?

Attorney Answers Question 6:

  • Yes Reyna, there is a USCIS filing fee for both of these forms.
  • As of March 11, 2021, the filing fee for the I 601, Application for Waiver of Grounds of Inadmissibility is $930 and the filing fee for the I 601 A, Application for Provisional Unlawful Presence Waiver is $630.
  • USCIS filing fees are subject to change with little notice.

Reyna Munoz’s Concluding Remarks:

  • Attorney, thank you for the detailed information on both the Application for Waiver of Grounds of Inadmissibility, I 601 and the Application for Provisional Unlawful Presence Waiver, I 601A. Unlawful presence in the U.S. is a hurdle facing many immigrant families throughout Texas and the Southwest in general. This information may prevent them from spending their hard-earned money unwisely.  I mean, if they don’t have a qualifying relative in the U.S. for the unlawful presence waiver; that sounds like a big problem.  I mean that is a huge problem, Attorney!  Like you said, its like a big log or bolder stretching across the road blocking the path to a Green Card for people who have been here for a while undocumented.
  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they listen to their podcast for more taxation, litigation and immigration Legal Thoughts podcasts. Everybody take care!  Read our taxation, government contract litigation and immigration law firm’s blogs at www.cjacksonlaw.com.  Coleman Jackson, P.C., is located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620 Dallas, Texas 75206.
  • English callers: 214-599-0431 | Spanish callers:  214-599-0432. Portuguese callers:  214-272-3100.

 Attorney’s Concluding Remarks:

THIS IS THE END OF “LEGAL THOUGHTS” FOR NOW

  • Thanks for giving us the opportunity to inform you about Immigration Matters You Ought to Know About: Undocumented Immigrants and the I-601 and I-601A Unlawful Presence Waivers
  • Immigrants who have resided in the United States for more than 180 days continuously without lawful status has a major problem under current immigration law. They need a waiver or pardon for unlawful presence when they leave the U.S. in order to lawfully reenter the U.S.  That in a nutshell is what the I- 601 and I-601A waivers are designed to accomplish as far as unlawful presence is concerned.  This is the current state of immigration law in the United States as it pertains to undocumented immigrants and current waiver unlawful presence.
  • If you want to see or hear more taxation, government contract litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C. Stay tuned! We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, government contract litigation and immigration.  Until next time, take care.

Immigration Matters You Ought to Know About: USCIS Reverting back to 2008 US Citizenship Test | LEGAL THOUGHTS

Coleman Jackson, P.C. | Transcript of Legal Thoughts Podcast
Published March 5, 2021.

USCIS Reverting back to 2008 US Citizenship Test

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Reyna Munoz, Immigration Legal Assistant of Coleman Jackson, P.C.   The topic of discussion is “Immigration Matters You Ought to Know About: USCIS Reverting back to 2008 US Citizenship Test”.  You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Immigration Thoughts

  • My name is Coleman Jackson, and I am an attorney at Coleman Jackson, P.C., a taxation, litigation, and immigration law firm based in Dallas, Texas.
  • Our topic for today is: Immigration Matters You Ought to Know About: USCIS Reverting back to 2008 US Citizenship Test. Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant; Reyna Munoz, Immigration Legal Assistant; and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our immigration legal assistant, Reyna Munoz, will be asking the questions and I will be providing the answers to the questions on this very important immigration topic: Immigration Matters You Ought to Know About: USCIS Reverting back to 2008 US Citizenship Test.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

Question 1:

Good morning Attorney, as you know we will be discussing a very important topic this week to keep our listeners informed on Immigration Matters that they ought to know about. Our topic of interest is the new United States Citizenship Test that has been announced by USCIS. Can you tell me what this is about?

Attorney Answers Question 1:

  • Good morning Reyna.
  • On February 22, 2021, the United States Citizenship and Immigration Services (USCIS) announced that it will go back to the 2008 version of the naturalization test. This will begin on March 1, 2021.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

Question 2:

Attorney, why did USCIS decide to revert to the 2008 U.S. Citizenship test?

Attorney Answers Question 2:

  • Well Reyna, this is due to an executive order that the Biden Administration released on February 02, 2021 titled “Restoring Faith in Our Legal Immigration Systems.” USCIS determined that the revised naturalization civics test that was implemented on December 1, 2020 may inadvertently create potential barriers to the naturalization process. Reverting back to the 2008 civics test will eliminate barriers and make the process more accessible to all eligible individuals.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • Wow attorney, it’s good to see that these barriers will be eliminated by reverting back to the 2008 naturalization civics test!

Question 3:

Who can take this test, attorney?

Attorney Answers Question 3:

  • Reyna, the civics test is given to applicants that are applying for United States Citizenship, it is also a requirement for naturalizing.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • This test is incredibly important then, for those who wish to become naturalized US Citizens!

Question 4:

What sort of topics does the test contain?

Attorney Answers Question 4:

  • That’s a good question, Reyna!
  • The people taking the test must demonstrate knowledge and understanding of the fundamentals of the history, principles, and form of government of the United States.

Interviewer:  Reyna Munoz, Immigration Legal Assistant

Question 5:

Attorney, does USCIS provide any study guides or any assistance in helping applicants study for the test??

Attorney Answers Question 5:

  • Yes, test items and study guides can be found on the Citizenship Resource Center on WWW.USCIS.GOV/CITIZENSHIP

Interviewer:  Reyna Munoz, Immigration Legal Assistant

  • Thank you for sharing this helpful website!

Question 6:

Attorney, you’ve answered a lot of important questions! My final question is, what about the people that have been studying for the 2020 test? How will they be affected by this new order?

Attorney Answers Question 6:

  • Good question, Reyna
  • Those that filed their application for naturalization on or after December 1, 2020 and before March 1, 2021 will be given the option by USCIS to take either the 2020 civics test or the 2008 civics test. There will also be a transition period where both tests are being offered. On April 19, 2021, the 2020 test will be phased out for those taking the test for the first time and those applicants that are filing on or after March 1, 2021 will take the 2008 civics test.
  • Reyna, I hope this answered your question. Do you have any more questions?

Reyna Munoz’s Concluding Remarks:

  • That answered my question perfectly! Those are all my questions for now, Attorney, thank you! This information is incredibly helpful for those that are going to take the United States Citizenship test!
  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they listen to their podcast. Everybody take care!  Follow us for more taxation, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., which is located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620 Dallas, Texas 75206.
  • English callers: 214-599-0431 | Spanish callers:  214-599-0432. Portuguese callers:  214-272-3100.

 Attorney’s Concluding Remarks:

THIS IS THE END OF “LEGAL THOUGHTS” FOR NOW

  • Thanks for giving us the opportunity to inform you about “Immigration Matters You Ought to Know About: USCIS Reverting back to 2008 US Citizenship Test.” If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C. Stay tuned! We are here in Dallas, Texas and want to inform, educate and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.

Here’s Why People Filing Taxes Should Be Careful When Selecting A Professional Tax Return Preparer | LEGAL THOUGHTS

Coleman Jackson, P.C. | Transcript of Legal Thoughts Podcast
Published March 10, 2021.

Here’s Why People Filing Taxes Should Be Careful When Selecting A Professional Tax Return Preparer

Legal Thoughts is a podcast presentation by Coleman Jackson, P.C., a law firm based in Dallas, Texas serving individuals, businesses, and agencies from around the world in taxation, litigation and immigration legal matters.

This particular episode of Legal Thoughts is a podcast where the Attorney, Coleman Jackson is being interviewed by Reyna Munoz, Immigration Legal Assistant of Coleman Jackson, P.C.   The topic of discussion is ““Here’s why people filing taxes should be careful when selecting a professional tax return preparer.” You can listen to this podcast by clicking here:

You can also listen to this episode and subscribe to Coleman Jackson, P.C.’s Legal Thoughts podcast on Apple Podcast, Google Podcast, Spotify, Cashbox or wherever you may listen to your podcast.

TRANSCRIPT:

ATTORNEY:  Coleman Jackson
Legal Thoughts
COLEMAN JACKSON, ATTORNEY & COUNSELOR AT LAW

ATTORNEY:  Coleman Jackson

Welcome to Tax Thoughts

  • My name is Coleman Jackson and I am an attorney at Coleman Jackson, P.C., a taxation, litigation and immigration law firm based in Dallas, Texas.
  • Our topic for today is: “Here’s why people filing taxes should be careful when selecting a professional tax return preparer.”
  • Other members of Coleman Jackson, P.C. are Yulissa Molina, Tax Legal Assistant, Leiliane Godeiro, Litigation Legal Assistant, Reyna Munoz, Immigration Legal Assistant and Mayra Torres, Public Relations Associate.
  • On this “Legal Thoughts” podcast our public relations associate, Mayra Torres will be asking the questions and I will be responding to her questions on this important tax topic: Here’s why people filing taxes should be careful when selecting a professional tax return preparer.”

Interviewer:  Mayra Torres, Public Relations Associate

  • Good morning everyone. My name is Mayra Torres and I am the public relations associate at Coleman Jackson, P.C.  Coleman Jackson, P.C. is a law firm based right here in Dallas Texas representing clients from around the world in taxation, litigation and immigration law.
  • Attorney today we are discussing a very important tax topic because filing taxes is on folks minds these days. Many people may be filing taxes for the first time this year because of the recovery rebate credit issues involving their economic impact payments and other Covid-19 relief received during 2020.
  • In this Podcast, we will be discussing the safest, easiest and perhaps cheapest way folks can file their tax returns.

Question 1:

Attorney let’s start with the cheapest way folks can file their taxes for 2020!  What options exist for people who do not want to pay a professional tax return preparer?  I mean, can people file their tax returns for free?

Attorney Answers Question 1:

  • Good morning Mayra.
  • First people can always prepare and file their tax return themselves without hiring and paying anyone.
  • Second people can go to IRS.gov and select a number of brand-name tax software providers who will permit certain eligible taxpayers to use their software to prepare and electronically file their individual tax return for absolutely free. This particular free tax preparation option might be an excellent option for some taxpayers.  Typically, the software providers require people to meet certain income, age and state residency requirements.  The software vendors’ individual qualifying requirements can be found at IRS.gov. Most of the free vendors software is in English, but a few are in Spanish.  This free file option is certainly an option that taxpayers should explore.
  • Third people can use possibly find free tax preparer clients hosted by various accounting and legal societies throughout the community. Some churches and business and law schools also provide minimum fee tax advice and counsel.  People should contact the professional schools in their communities to inquire whether students in tax law training provide such services to the community.  When I attended SMU School of Law, I participated in their tax clinic that provided free or minimum fee tax controversy services by enrolled students under the supervision of the tax clinic professor.  People should make inquiries at professional societies, schools, and places of worship to see what’s available.
  • So to summarize; Mayra, as you can see there are a number of options available for people to get their tax returns prepared at little to no costs.

Interviewer:  Mayra Torres, Public Relations Associate

That is an excellent summary of the free or low-cost tax return preparation and filing options that might be available to people this year:

  1. people can prepare and file their returns without using anyone to help them;
  2. People can go to IRS.gov and select a brand-named software provider to prepare and file their return if they meet the provider’s qualification requirements, and
  3. People can search for a free or low-cost professional tax return preparer at local places of worship, or professional accounting or law societies or local law school tax clinics and accounting schools.

Question 2:

Attorney, some people can’t qualify for one of these free or low-cost tax preparation services. Some people just think taxes are very complex; they can’t prepare these complicated tax returns themselves, and they just want to hire someone to prepare the return and file it for them.  What characteristics and qualifications should people look for when hiring a tax return preparer?

Attorney Answers Question 2:

  • Mayra, that is a very good question since people are responsible for the accuracy of their tax return regardless of whether they prepare and file it themselves or hire someone else to prepare and file their return.
  • These are some of the things that people might should consider when selecting a tax return preparer:
    1. Indicial of educational training in tax law and tax accounting. This might be evidenced by a degree from college in taxes, accounting, law, finance, or some related business degree.  Return preparer might be qualified with only certificates but with increasing complexity of the tax issues involved, should cause taxpayers to exercise more exacting screening of a tax return preparer before they hire them to work on their return.
    2. Professional Tax Identification Number (or PTIN). The PTIN is an annual credentialing issued by the Department of Treasury to professionals authorized to practice before the Internal Revenue Service as paid tax return preparers. To obtain a PTIN, a tax professional must be an attorney in good standing with a State Bar Association, a licensed Certified Public Accountant in good standing with a state CPA licensing authority, an enrolled agent in good standing with the Internal Revenue Service, or a registered tax return preparer under the defunct IRS Registered Tax Return Preparer Program. Taxpayers should look for these types of credentialing when selecting a tax return preparer. In recent years, the annual PTIN fee has been suspended due to Court challenges regarding the IRS’ attempt to regulate tax practice.  The IRS’ stated goal when instituting the PTIN program was to improve the integrity and quality of the tax preparation industry.   Some tax professionals challenged this attempt in Court.  Nevertheless, PTIN credential could be a good metric for the public to use when selecting a tax return preparer.  The bottom line is this— when the professional does not have a current PTIN Card; It is possibly a bright red alert to the taxpayer that they could be taking unnecessary risk by hiring an unqualified tax return preparer.  Taxpayers are responsible and liable for the accuracy of their tax returns regardless of who prepares or files the return for them.
    3. Experience in tax return preparation is critical factor when selecting a tax return preparer. Tax law is constantly changing from year to year, and it is very important that the tax return professional maintains competencies in tax law on an annual basis.  The more experience that the tax return preparer has with the type of return involved the better.  For example, if you have foreign accounts, you should think long and hard before hiring any return preparer who has never worked with taxpayers with foreign accounts or offshore assets.  Over the years, our law firm has seen many taxpayers who have been greatly harmed by tax return preparers who failed to properly counsel and advise them with regards to proper tax accounting for offshore assets and accounts.
    4. So to summarize: taxpayers should look for relevant tax law and accounting education, IRS Tax Professional PTIN certificate and tax experience relevant to tax issues related to their particular situation when selecting a tax return preparer.
  • It is very important to make a wise selection choosing which tax return preparer to hire because taxpayers can be subject to civil penalties and even criminal exposure for inaccuracies and materially false statements and tax positions taken on their tax returns and in their claims for refunds.

Interviewer:  Mayra Torres, Public Relations Associate

  • Bright Red Alert! Before hiring anyone to do your tax return, look at the tax return professional’s educational background… like where did they go to school and where did they learn tax and accounting; look at whether they have a current IRS Tax Professional PTIN certification, and look at whether they have the right type of tax experience to prepare your tax return!
  • If any of these three things are missing; it’s a bright red alert folks! Attorney, thanks for answering my question so clearly concerning what characteristics people should look for when selecting a tax return preparer.
  • Did I get the bright red alerts right, Attorney?

Question 3:

Attorney, it sounds like taxpayers can get in very serious trouble on their taxes if they hire an unqualified, incompetent, or dishonest tax return preparer.

Is there any where a taxpayer can turn for help when they suspect that they have been harmed by their tax return preparer?

Attorney Answers Question 3:

  • The Internal Revenue Service has been given the authority by Congress to maintain the public’s confidence in the federal tax system. Under that authority the IRS maintains advisory committees who establish practices, procedures and policies of the oversight offices designed to enforce regulations governing those authorized to practice before the IRS.  The IRS is required under these regulations to maintain a list of individuals and companies who have been disbarred from practice before the IRS; list practitioners with monetary sanctions, and a list of practitioners who have otherwise been sanctioned by the IRS.
  • In addition to the IRS oversight that I have mentioned; professionals such as attorneys and certified public accountants are accountable to their respective professional licensing authorities in their states. These various professional licensing boards have specific complaint procedures where injured taxpayers can file an official complaint.
  • Finally, taxpayers harmed by tax return preparers can also turn to the courts for redress by filing a lawsuit for professional liability or other claim.
  • I should caution here that every tax position taking on a particular tax return may not rise to the level incompetence or malfeasance on the part of the tax return preparer. Judgment is an inherent part of being a tax professional.  That intangible characteristic of confidence and trust in your tax professional cannot be overstated.

Interviewer:  Mayra Torres, Public Relations Associate

Question 4:

What about the people that have an approved family-sponsorship petition outside of the United States?

Attorney Answers Question 4:

  • The Internal Revenue Code imposes an entire laundry list of civil penalties and criminal penalties on Tax Return Preparers who are incompetent or engage in disreputable conduct. The names and descriptions of these various penalties can be very informative as what goals the IRS is attempting to achieve in terms of protecting the public, protecting the public’s confidence in the tax system, and maintaining the overall integrity of the U.S. federal tax system.  So that I don’t overly complicate this for our none-tax professional listeners, I am going to leave out any references to the specific Internal Revenue Code Section or Treasury Regulation where these penalties are codified.  Most of our listeners probably don’t really care to know the actual tax code section and treasury regulation reference numbers for these penalties.
  • This is a list of some of the types of penalties that the IRS can impose on Tax Return Preparers. Taxpayers should just thing about the item on the list and look beyond what is right in front of them to what the IRS is trying to accomplish by imposing these penalties on incompetent preparers or those engaged in disreputable conduct:
    1. Civil Penalties imposed on tax return preparers for failure to meet due diligence requirements for determining eligibility for certain tax benefits, such as, child tax credit, head of household, and earned income credit. Often times, taxpayers take these tax positions in error or with bad advice from tax preparers.
    2. Penalties imposed on tax return preparers for failure to sign the return and penalties for failing to supply identifying numbers such as, PTIN etc. Again, often, returns prepared by paid tax preparers appear to be self-prepared.
    3. Various penalties imposed against tax preparers for giving false or misleading information to the Department of the Treasury or any of its officers, employees, or agents.
    4. Various penalties imposed against tax preparers for aiding, advising or abetting others in violating federal tax law by suggesting or aiding in an illegal plan to evade the proper application and administration of U.S. tax laws or payment of U.S. taxes.
  • Items three and four can result in civil negligence and civil accuracy related penalties; and willful or reckless violation of U.S. Tax laws could lead to criminal referrals and prosecution of the tax return preparer and the taxpayer.
  1. Penalties imposed on tax return preparer for failure to give the taxpayer a copy of their tax return.
  2. Penalties imposed on the tax return preparer for failure to maintain a copy of the prepared tax return.
  3. Penalties imposed on the tax return preparer for failure to maintain a record of who prepared the return.
  • Items five through seven is designed to create a contemporary record and to provide a chain of responsibility. Tax return preparer operations are subject to IRS examination and investigation.
  • These are only a few of the penalties that the IRS could impose on incompetent tax return preparers and those engaged in disreputable conduct.
  • Taxpayers must be careful when tax return preparers over promise, make claims of abilities to obtain certain refund amounts or tax results, or seek to negotiate taxpayer refund checks. Sometimes dishonest preparers claim that the taxpayer has companies, farms, and factories that the taxpayer themselves never knew they had.  Remember you are responsible for the numbers and data on your tax return and the IRS will look for you first to timely pay the correct amount of taxes.  Your tax return preparer may or may not ever be held accountable.  So, a word to the wise:  be careful when you select your tax return preparer.
  • All these penalty areas that I have mentioned in this podcast should help taxpayers to exercise wisdom and discretion when selecting a tax return preparer. Look for professionals with character and experience even though it might cost you more to have your taxes done.  It may cost more in the long run if you choose an incompetent tax preparer, or one engaged in disreputable acts.

Interviewer:  Mayra Torres, Public Relations Associate

  • Attorney, thanks for such a thorough response to my questions about characteristics, qualifications, and other things that people should consider when selecting a tax return preparer. Character and experience always matter!
  • That’s all the questions I have for now with respect to being wise and prudent when selecting a tax return preparer. It sounds like it’s very dangerous to select the wrong person or firm to prepare your tax return.

Attorney Comment:

  • Well, those were all excellent questions, Mayra. And I am glad we were able to discuss the importance of exercising wisdom and being prudent when selecting a tax return preparer.

Mayra Torres’s Concluding Remarks:

  • Attorneys thank you for this comprehensive and informative presentation on selecting a tax return preparer.
  • Our listeners who want to hear more podcast like this one should subscribe to our Legal Thoughts Podcast on Apple Podcast, Google Podcast, Spotify or wherever they listen to their podcast. You can follow our blogs by going to our law firm’s website at cjacksonlaw.com.  Everybody take care for now!  Come back in about two weeks, for more taxation, litigation and immigration Legal Thoughts from Coleman Jackson, P.C., which is located right here in Dallas, Texas at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206.
  • English callers: 214-599-0431; Spanish callers:  214-599-0432 and Portuguese callers:  214-272-3100.

 Attorney’s Concluding Remarks:

THIS IS THE END OF “LEGAL THOUGHTS” FOR NOW

  • Thanks for giving us the opportunity to inform you about the why people filing taxes should be careful when selecting a professional tax return preparer.
  • If you want to see or hear more taxation, litigation and immigration LEGAL THOUGHTS from Coleman Jackson, P.C. Stay tune!  Watch for a new Legal Thoughts podcast in about two weeks and check our law firm’s website at www. cjacksonlaw.com to follow our blogs.  We are here in Dallas, Texas and want to inform, educate, and encourage our communities on topics dealing with taxation, litigation and immigration.  Until next time, take care.