Client Alerts

 

NC Court of Appeals Expands Guarantors’ Defenses to Payment

A February 2015 opinion of the North Carolina Court of Appeals has again brought to the forefront the issue of whether a guarantor can assert a defense to payment under a guaranty following a foreclosure sale of real property that was previously thought to be available only to a borrower. N.C.G.S. § 45-21.36 provides that when a foreclosing creditor purchases real property at a foreclosure sale and subsequently sues to collect the deficiency, certain obligors may (1) as a defense to payment, s ...
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CONSTRUCTION CLIENT ALERT: North Carolina’s Business Court Enjoins Lien Filing Service Company

You may or may not have heard of Lienguard, Inc., a company that advertises that it files commercial mechanics liens, notices, public and federal bond claims as well as municipal liens throughout the United States. Lienguard was charging a flat fee of $495 for the preparation and filing of a mechanics lien in North Carolina. The North Carolina State Bar took issue with Lienguard's conduct and brought a suit alleging that Lienguard's conduct constituted the unauthorized practice of law. Last m ...
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U.S. Supreme Court Decides Important Case regarding Creditor Rights to IRAs

If your friend inherits an individual retirement account from her mother and later files for bankruptcy protection, is the IRA exempt from payment of creditor claims in her bankruptcy proceeding?  As is often the case, the answer is "it depends." In the case of Clark v. Rameker (decided on June 12, 2014), the U.S. Supreme Court settled an issue that had been debated for a long time. Heidi Heffron-Clark was named as the sole beneficiary of her deceased mother's IRA having a date of death balanc ...
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NCDOR Issues New Directive on Sales Tax of Service Contracts

The North Carolina Department Of Revenue Issues New Directive Outlining When Service Contracts Will Be Subject to North Carolina Sales and Use Tax. Beginning January 2014, sales of "service contracts" will now be subject to North Carolina sales and use tax.  The term "service contract" is defined as a "warranty agreement, a maintenance agreement, a repair contract or a similar agreement or contract by which the seller agrees to maintain or repair tangible personal property."  N.C.G.S. 105-1 ...
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NCDOR Announces Employers Must Collect New Employee Withholding Forms

The North Carolina Department of Revenue Announces That Employers Must Collect New Forms NC-4, Employee's Withholding Allowance Certificate, for 2014.  As we have heard on the news, beginning in January 2014, the North Carolina personal income tax rate drops to 5.8%.  Previously, the North Carolina individual income tax rates were "graduated" and ranged from 6% to 7.75%.  That is the good news. The bad news is that the NC Department of Revenue issued a release on November 12, 2013, advi ...
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Estate Tax Law Made Permanent with Passage of American Taxpayer Relief Act

The Senate and House voted over New Year’s to pass the American Taxpayer Relief Act of 2012 (H.R. 8) ending (at least for now) the uncertainty of the future of the federal estate and gift tax law. The Act permanently extends a number of tax provisions, modifies the estate tax, and revises tax rates on ordinary and capital gain income, among other things. The Act permanently maintains the estate and gift tax exclusion at $5 million (indexed for inflation), but also permanently increases the ...
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Free Piece of Tax Advice for Our Best Clients

This is the time of year that I get to offer our clients a free piece of tax advice.  And, it may be some of the best tax advice they ever get from me. And so here it is: Now that October 15 is behind us, you need to get in to see your CPA, and make sure you get in before December 31.  When you show up at your CPA's office in February of next year, it probably will be way too late to do any tax planning by that point and there won't be much that your CPA will be able to do to help you re ...
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For media inquiries, please contact: Erin Molinaro | ekm@crlaw.com