Welcome to the Valensi Rose PLC Blog
To contact one of our attorneys please visit VRMLAW.COM

Thursday, April 12, 2012

Bruce Sires to Speak on Employing Minors in Entertainment Projects at California Lawyers for the Arts Workshop

Saturday, April 14, 2012, 10 - 11:30am
Canoga Park Youth Arts Center
7222 Remmet Ave.
Canoga Park, CA 91303

Since 2001, minors employed in sports and entertainment have gained a unique advantage over any other employed minors.  That is, that the money they earn is theirs, and their parents have fiduciary duties to them that do not exist for other minors.  In addition, the employers of minors have unique obligations to the minors, including deposits into Coogan accounts, and unique opportunities to avoid the minor's ability to disaffirm their contracts.  

This workshop will explore the rights of children in the business and protecting those rights for the child's benefit:  the contractual issues of which those doing business with minors need to be aware; what statutory protections are available for the adults in the transactions; what can be done if your contract is not statutorily protected will be explored; which court will hear these cases; and will a guardianship be required to protect the minors estate.  Finally, Mr. Sires will explore how to deal with the conflicts of interest inherent in representing and advising minors, their families, and those dealing with them, i.e. who do the lawyers represent?

Contact Bruce Sires

Wednesday, April 11, 2012

TAX SEASON ALERT: Beware Of Fraudulent Refund Claims Using Your Social Security Number

We were made aware of this fraud when the IRS sent a letter inquiring about a 2011 Form 1040A allegedly filed by our client, who happened to have died in January of 2011.  The taxpayer's 2011 tax return had not been prepared or filed, and it was clear that someone had obtained the taxpayer's Social Security Number ("SSN") and filed a falsified return in the taxpayer's name, claiming a fraudulent refund.  The return requested a direct deposit into an account which was not in the taxpayer's name.  The IRS was alerted to the possible fraud, because they had received notice from the Social Security Administration of the taxpayer's death.  However, in many cases there are no obvious indicators of fraud, and we've heard that the Service has made direct deposit refunds into accounts shown on fraudulent returns, which do not belong to the taxpayer!

What should be done if the IRS notifies you that someone has claimed a fraudulent refund under your SSN?  Immediately call the IRS to confirm the fraud and ask them to flag your return.  The Service will flag your account regarding potential identity theft.  Also, notify your accountant, bank, financial advisor, and credit card companies that you may be the victim of identity theft.  All of your accounts should be closely monitored for any suspicious activity, and consider closing all existing accounts (and opening new ones) to prevent unauthorized purchases, cash transfers or withdrawals. 

If you haven't received such a letter, it is still a good idea to carefully review your bank and brokerage statements as well as credit card bills to be sure there is no unfamiliar activity, and where there is a suspect transaction follow up to be sure the issue isn't anything other than authorized use by your spouse, partner or children, or a memory lapse.  Finally, in this era of identity theft and fraudulent refund claims, you may want to regularly check your account with the IRS to be sure that only returns you have actually filed are reflected on their records.

You can order tax return transcripts online (www.irs.gov and go to the "Order a Return or Account Transcript" link), with a call to the IRS at 1-800-908-9946, or by filing the appropriate form with the IRS:  Form 4506,  Request for Copy of Tax Return; Form 4506-T, Request for Transcript of Tax Return; or, Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript.   The time spent carefully and regularly monitoring your finances could save you from a major disaster.

Contact Bruce Sires

Thursday, April 5, 2012

Negotiating Listing Agreements


Now that the worst of the recession seems to be abating and you are one of the sellers who has been waiting in the wings for the past few years but ready now to take the plunge, you've selected a broker to represent you but your work does not end there.

Brokers and agents throughout the state use standard California Association of Realtors forms for every major aspect of the purchase and sales transaction.  You, as the broker's client however, are not stuck with these forms which are created by lawyers whose sole purpose is to protect the brokers and agents. 

The first significant form you as the seller will be presented with is the Residential Listing Agreement.  This is the agreement that gives the broker the right to list your home for sale.  Most agents or brokers will present this to you as just another form which you must sign "as is" to get your house sold.  Don't fall for it.  Many of them will tell you that 6% commission is standard.  It is not.  Certainly for the higher priced homes, most brokers will take a listing for 4-5%.  Also, if the transaction is an "in house" one, where the same agent represents both the seller and the buyer, most brokers will agree to even a lower commission since the entire transaction will be handled by the same people. 

This standard listing agreement contains many other traps for the unwary seller.  Unless modified, the broker is entitled to a commission if the property is not sold but leased instead and they will take their full commission out of your first rent check.  If they bring you a buyer who does not perform and you end up having to sue the buyer, the standard listing agreement requires you to pay their commission out of the proceeds of any settlement reached with the buyer or judgment obtained.  And, if you happen to retain a second broker after the first one is not successful in securing a buyer and the initial broker gives you a list of people he showed the home to, that person looks at it again and decides to purchase it, and you don't exclude that sale from the second listing agreement you signed, you could find yourself owing both brokers a commission. 

Many deals go through without a hitch but if yours does not, you do not want to be on the bad end of an agreement designed solely to protect your broker and agent.  Demand appropriate revisions to these standard agreements up front.  Once the deal goes south it will be too late.

 Contact M. Laurie Murphy