Blog
Discussing the Advantages to Living and Doing Business in Babylon Village With Mayor Mary Adams
Employee or Independent Contractor?
Discussing Mortgages with East Coast Capital
STAR Tax Credit and New Home Buyers
Tax Deadlines Extended for Ida Victims
The IRS has announced that tax filing deadlines for victims of Hurricane Ida in New York have been extended. This extension covers both individual and business filers. The new deadline is January 3, 2022. This extension applies to individuals and businesses located within FEMA areas designated to receive individual or public assistance.
The result of this announcement is that tax filings due on September 1, 2021 are extended to January 3, 2022. This extension also includes tax filers that have previously filed 2020 tax year extensions and who had a deadline of October 15, 2021 to file a return.
To see if you’re qualify for the extension the current list of eligible localities is available on the disaster relief page on IRS.gov. Eligible localities may be added so it pays to check the IRS website regularly.
As always Beige Law is ready to help taxpayers who may have been impacted by Hurricane Ida with their IRS and New York State tax issues. 
Mortgage Refinance Fraud
As was reported in numerous news outlets today a Long Island man has plead guilty to bank fraud related to a mortgage refinance scheme. As reported the scheme was as simple as it was devastating for its victims. The innocent homeowner-borrower would legitimately refinance their existing mortgage and then the defendant would divert the money to his personal accounts instead of to the original mortgage holder (lender).
This left the homeowner-borrower legally obligated to pay multiple mortgage payments and likely wiped out any equity the homeowner had in the property. Many victims fell into foreclosure.
How can a homeowner-borrower avoid being the victim of mortgage fraud when they refinance their home?
First, make sure the person and company that you are working with are licensed and have no complaints filed against them. Mortgage Brokers and Banks are licensed in New York by the New York State Department of Financial Services through the National Mortgage Licensing System. A homeowner-borrower should ask for the license number of their potential mortgage broker and contact those agencies to confirm the person is in fact licensed and no complaints have been filed against them.
Second consider retaining an attorney to represent you at the closing of your refinance loan. An attorney hired to represent you will be the only person at the closing without a conflict of interest and whose only obligation is to you, the client. An attorney can also help assure that the proper title insurance is in place to insure that the original loan will no longer be a lien on the property or obligation to you, the homeowner-borrower.
Beige Law has represented clients in all facets of real estate transactions and is ready as always to help homeowners successfully navigate their refinance.
Interest Rates on Underpayment of Taxes
The IRS has recently announced that the interest rate charged to individual taxpayers and corporations for the underpayment of taxes will remain the same for third quarter of 2021. The rates will be three (3%) percent for individual taxpayers and five (5%) percent for corporations.
Under the Internal Revenue Code the IRS is required to determine and set interest rates on a quarterly basis. The rates are set by statute and are based on the federal short term interest rate.
Taxpayers that owe the IRS as a result of failing to pay taxes or paying less than the total are subject to interest on the tax amount due as well as penalties. Beige Law can help you address your tax issues and help keep you from being overwhelmed with interest and penalties.
Heavy Use Tax Deadline
Are you are trucking company? An independent trucker? Operate a bus or tour company? If you do and your vehicles have a gross vehicle weight of 55,000 pounds or more you may be required to pay a heavy highway vehicle use tax. The deadline for July, 2021 vehicle usage is August 31, 2021.
As always a failure to timely file Form 2290 or pay the required tax can result in the IRS imposing penalties and interest as well as other enforcement actions. Beige Law is experienced in representing the trucking industry and their unique IRS issues. If you have any questions or currently have an IRS tax issue Beige Law can help.
New York State Power of Attorney
Most people have heard the phrase “power of attorney” but many are confused over what it actually does and how it may be useful to them. At Beige Law we find that many clients come to us with ideas about powers of attorney and estate planning in general that have been heavily influenced by television and movie plots. Entertaining but not necessary accurate.
Simply put a power of attorney gives someone (called the “agent”) the legal authority (“power”) to act on your behalf (the “principal”). It’s just that simple. And no, the agent does not have to be an attorney. It can be any competent adult.
Selling your house but don’t want to attend the closing? Give a power of attorney to your real estate attorney to sign the closing documents on your behalf.
Planning your estate and are concerned about how your banking and bills will be paid if you’re bedridden? Give power of attorney to a trusted relative who can then act in your place.
A power of attorney is a very useful and powerful tool in estate planning. However, like any other powerful tool it must be used carefully and wisely. At Beige Law we are always here to help our clients do just that.
Theft of Sales Tax
“We don’t charge it. We just collect it.” Most of us have seen this whimsical sign at some time or another in a store or business. It’s the owners somewhat sarcastic, humorous way of reminding the customer that the business doesn’t charge or keep the sales tax. Instead the business is, just as the sign says, collecting the sales tax on behalf of New York State.
Unfortunately, some business owners decided to collect the sales tax but not forward it on to New York State, in whole or in part. What these business owners fail to realize is that collecting but not remitting sales tax to New York State is a crime. Theft of sales tax. In addition to being liable for the unpaid sales tax (plus penalties and interest) the responsible parties may be charged criminally and could face jail time.
If you own a business and have been collecting sales tax but have fallen behind or believe you may have miscalculated the amount you were to pay New York State you do have options. Contact our office and let Beige Law help you evaluate your situation.