Legal Resources and Learning Center

It’s tax season which means the news article on what triggers an audit are rolling off the press or in today’s digital world being coded to html.  U.S. News & World Report has released “9 Red Flags That Could Trigger a Tax Audit” while The Wall Street Journal published “10 Red Flags That Could Trigger an IRS Tax Audit in 2022”.  Both are fine articles but lack some basic audit information.

Any discussion of audit risk begins with how and why taxpayers are selected. The first thing to understand is the Internal Revenue Service is underfunded and understaffed. Therefore, the Internal Revenue Service relies heavily on their computer system’s automated statistical formula which checks to see if your reported income and deductions fit into norms for your industry. The formula is developed by the National Research Program conducted by the IRS. The second thing to understand is what positions the Internal Revenue Service is hiring. On March 16, 2020 the Internal Revenue Service released IR-2022-59 announcing it would hire 200 more Information Technologists to aid in upgrading the enforcement systems.  This hiring indicates that the random sample of returns used to develop the statistical formula is growing and the data that triggers an audit will get faster. Especially as they move all returns to e-filing. Faster technology means more audit letters generated by the automated computer system.

Another way that you could be selected for an audit is when you return involves issues or transactions with other taxpayers whose returns were selected for an audit. Some may think that they wouldn’t fall into this category because their return is not tied to another taxpayer, however you may get selected based on the audit of your chosen Tax Preparer. The Internal Revenue Service realized that as an understaffed division of government that enforcement dollars are well spent by going after high volume Tax Preparers who will put anything on a return, so clients get a big refund. When the IRS audits a Tax Preparer, they gain access to their list of returns and flag all of them for audit purposes.

An Internal Revenue Service audit can be a big headache but if you make some wise decisions when filing your federal tax forms an audit is a minor inconvenience.

1. Keep all your tax documents in one organized folder with a copy of your return.
2. Make sure you use a reputable Tax Preparer, if you want a referral just call my office.
3. Make certain that the numbers reported to the IRS on W2s, 1099s, K1s or any other third-party reporting documents are correct and either match the numbers you report on your Federal Tax Return, or the difference is explained on the Federal Return.
4. Documentation is key especially if you have any of the following on your Federal Tax Return:
   1. Business Losses
   2. Home office deduction
   3. Large Business Expenses
   4. Stock Trades
   5. Cryptocurrency Transactions
   6. Large Charitable Contributions
   7. Earned $200,000 or more
   8. Took the Child Tax Credit
   9. Took the Earned-income Tax Credit
   10. Rental Income
   11. Took Education Tax Credits
   12. Early withdrawals from IRAs or 401(k)s
   13. Health Premium Tax Credit
5. Finally, if you find yourself facing an Internal Revenue Service Audit seek out the services of a Tax Attorney, CPA, or Enrolled Agent. It always helps to have someone who knows the rules.

J. Vincent Perryman is a Memphis Tax Attorney who has saved Federal Taxpayers across the United States over $2.1 Million in taxes and penalties improperly assessed by Internal Revenue Service.

J. Vincent Perryman, Esq., LL.M.
Law Offices of J. Vincent Perryman
4719 Spottswood Avenue
Memphis, TN 38117
Phone: 901.347.0647
E-mail: vperryman@midsouthattorneys.com

www.midsouthattorneys.com

Have you ever considered who would care for your children if something happened to you and your spouse?  Recently, my youngest grandson was left in my care while his parents and two older siblings went to Birmingham.  I am a fairly typical Mom - I worry about my children, especially when they are far from home.  I began to think about the events that would take place if the unspeakable happened while my kids were traveling. In an instant, my focus shifted from my own children to concern for my grandchildren as numerous questions swirled through my head.  What would happen to my grandsons if their parents died? Who would care for them? Did my kids have a will? If so, where was it? How would custody be determined if my kids did not leave a Will?

Death is a scary thought for most people, so it is simply not discussed. Parents do not want to fathom the thought of leaving their young children behind.  Yet, determining who will care for your children in the event of your untimely death is one of the most important parenting decisions you can make.  Unfortunately, most young parents (and far too many older parents) have avoided making any decisions regarding the care of their children if they, the parents, died. For some, the fear that drafting any documents related to death will somehow lead to an early demise prevents decision-making. Even those parents who openly discuss their preferences of potential guardians for their children often fail to visit a Memphis Attorney who practices in estate planning to memorialize their desires. When individuals die without making a Will, they have died intestate. Intestacy is a legal term that simply means someone died without a Will. Unfortunately, various issues arise when parents of minor children die intestate. For example:

1. Since the parents had not executed a Will with a provision stipulating a guardian to care for the minor child(ren), one will have to be appointed by the Tennessee court.  Both relatives and non-relatives will be permitted to petition for guardianship; however, preference is often given to family members who have a close relationship with the child(ren).  This is not always a smooth process because disputes arise among family members regarding where and with whom the children should reside, especially in those situations where the parents never expressed their wishes. Unfortunately,  the family discord can lead to a battle for guardianship, which only further fractures the family unit and extended family.
2. Guardianship will be determined based on the “best interest” of the child. The Tennessee court will assess factors similar to those used in custody determinations in divorce cases, including: (a) the ability of the individual(s) to provide child(ren) with necessities;  (b) physical, mental and moral fitness of the potential guardian; and  (c) the love, affection and emotional ties that exist between the child(ren) and the potential guardian.  Despite the Tennessee court’s efforts to provide for the best interest of the child(ren), it is possible that the guardian(s) appointed will not be the person(s) the deceased parents would have chosen had they had the opportunity to do so themselves.

Parents, you are uniquely qualified to choose appropriate potential guardian(s) for your child(ren).   Not only do you fully understand the needs of your child(ren), but you also are in the best position to choose caregiver(s) who are able to meet those needs.  The following simple steps will help you effectuate the most favorable outcome for your child(ren) in the event of your untimely death:

1. Have the conversation.  Talk with your spouse about potential guardians for your children. Consider what would be in the best interest of your child(ren), including the age, health, and ability of each potential caregiver to provide for your child(ren) long-term.  While grandparents might be a good choice today, will those same grandparents able to provide care in ten years?
2. Meet with a Memphis Attorney and make a Will that contains a provision designating a guardian for your child(ren).  While the best interest factors are still consider, pursuant to Tennessee law, the Tennessee court will give preference in appointing a guardian to the individuals designated in your Will.
3. After you have executed your Will, make sure that your loved ones know where to find it. Place it in a safe deposit box or other safe location for easy access in the event of your death.

Do not leave your child(ren)’s future to chance. Take the steps necessary to be an active participant in choosing a guardian for your child(ren).  Who will care for your children? The choice is yours.

Michele Brooks Gwinn, Esq.

5100 Wheelis Drive, Ste 100

Memphis, TN 38117

Phone: 901.347.0647

Fax: 901.255.0745

Email: MGwinn@midsouthattorneys.com

www.midsouthattorneys.com

I have received requests from clients, friends and family for my advice in who they should support in the Shelby County Judicial Elections, therefore I provide the public with my opinions below.

I think it is helpful for the reader to know a little bit about me as that provides some understanding for the basis of my opinions of the Judicial Candidates for Shelby. I am a 37 year old male civil attorney practicing law mainly in Shelby County I began my legal career in the fall of 2005 and prior to that I was a Law Enforcement Officer for the National Park Service. I am known for candor and telling it like it is regardless of the consequences.

I was the head of the Memphis Bar Association’s Probate and Estate Planning Section for two terms/years. I practice in Probate Court, Circuit Court, Juvenile Court, Chancery Court and General Sessions Civil Court. In these Courts I have appeared before all of the Judges. It is rare to see me in Criminal Courts for anything more than a speeding ticket so if I voice an opinion in any of those races it is because of my personal dealings with the candidates.

I will start by linking to the complete ballot then give you my endorsements and finally links for informational sources so you can make educated decisions about the candidates. If anyone has any questions feel free to email me at the address provided at the bottom of this blog with Judicial Election in the subject line.

The entire Ballot can be found here:

http://shelbyvote.com/DocumentCenter/View/9863

On the ballot there are several retention races where we can either select retain or do not retain for Appeallate and Supreme Court Judges my recommendation is to retain every one of our Appeallate and Supreme Court Judges.

Here are the contested races on the Aug. 7 ballot and the individuals that I recommend:

CIRCUIT COURT

Div. 1: Kyle Wiggins

Div. 2:  James F. Russell,

Div. 3: Lee Ann Pafford Dobson

Div. 4: Gina Carol Higgins,

Div. 5: Joseph E. "Joe" Garrett,

Div. 8: Robert "Bob" Weiss,

Chancery Court

Part 1: Walter L. Evans

Part 2: Jim Newsom

Probate Court

Div. 1: Kathleen N. Gomes,

Div. 2: Karen D. Webster

Criminal Court

Div. 1: Paula Skahan

Div. 3: Bobby Carter

Div. 5: Jim Lammey,

Div. 6: John W. Campbell

Div. 7: Lee V. Coffee

Div. 9: Mark Ward

General Sessions Court

Div. 1, Civil: Lynn Cobb

Div. 2, Civil: Phyllis B. Gardner,

Div. 3, Civil: David L. Pool

Div. 5, Civil: Ellen Fite or Betty Thomas Moore (I have a hard time with this because Judge Thomas Moore is a good Judge but I think Ellen Fite could possibly be one of the best Judges if elected)

Div. 6, Civil: Lonnie Thompson

Div. 7, Criminal: Bill Anderson Jr.

Div. 8, Criminal: Tim J. Dwyer

Div. 9, Criminal: Joyce Broffitt

Div. 10, Criminal: Chris Turner

Div. 11, Criminal: Karen Lynne Massey

Div. 12, Criminal: S. Ronald (Ron) Lucchesi,

Div. 14, Criminal (Environmental): Larry Potter

Juvenile Court: Dan Holman Michael

All attorneys are governed by licensing requirements and a code of ethics that must be followed, if there is a problem then the attorney is disciplined which can be a slap on the wrist or a loss of their law license. Check for the Judicial Candidate’s record with the TN Board of Professional Responsibility for any discipline here:

http://tbpr.org/Consumers/AttorneySearch/

Clients and Attorneys can post reviews of attorneys on Avvo and Avvo gives the attorney an opportunity to respond to the review. This can be a good indicator as to the attorney’s demeanor if there are multiple bad reviews. My own profile on Avvo has both good and bad reviews and I feel those reviews are fair. See what clients and other attorneys have to say about the candidate on Avvo:

http://www.avvo.com/find-a-lawyer

The following links are to the list of sitting Judges so you can determine the incumbent if there is one:

General Sessions Judges Civil Division:

http://gs4.shelbycountytn.gov/Directory.aspx?DID=4

General Sessions Judges Criminal Division:

http://gs4.shelbycountytn.gov/Directory.aspx?DID=5

Chancery Court:

http://www.shelbycountytn.gov/index.aspx?NID=327

Circuit Court:

http://www.shelbycountytn.gov/index.aspx?NID=341

Criminal Court:

http://www.shelbycountytn.gov/index.aspx?NID=345

Probate Court

http://www.shelbycountytn.gov/index.aspx?NID=381

Articles from the Memphis Commercial Appeal

http://www.commercialappeal.com/news/politics/2014-elections/wouldbe-memphis-judges-have-arrests-ethics-charges-on-records_12095738

http://www.commercialappeal.com/news/politics/2014-elections/restrictions-and-sheer-numbers-make-it-difficult-for-memphis-judicial-candidates-to-draw_46722462

http://www.commercialappeal.com/2014-elections

http://www.commercialappeal.com/news/politics/2014-elections/judicial_elections_factbox_48502624

Link to the Memphis Bar Associations Lawyer’s Poll on the Judicial Candidates:

http://www.memphisbar.org/sites/480/uploaded/files/2014_Memphis_Bar_Association_JQP_printable.pdf

J. Vincent Perryman, Esq., LL.M.
Law Offices of J. Vincent Perryman
5100 Wheelis Drive Ste 100
Memphis, TN 38117
Phone: 901.347.0647
Fax: 901.255.0745
E-mail: vperryman@midsouthattorneys.com

www.midsouthattorneys.com