November 2012 archive

NY Appellate Court reviews the basics in allowing expert testimony

Courts are becoming more assertive in not allowing experts to testify. Because of the success obtained when an expert can be thrown out, filings to eliminate the other side’s expert(s) are become de rigueur. This article summarizes a study on this point. A New York court in re: Wathne Imports, Ltd. v PRL USA, Inc. …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/ny-appellate-court-reviews-the-basics-in-allowing-expert-testimony/

Closure of 10 Courthouses Increases Backlog in LA County

The closure of 10 courthouses throughout Los Angeles county will no doubt cause major repercussions throughout the already overburdened system.  The courthouses to be closed include the following: Beverly Hills Malibu Avalon West Los Angeles Huntington Park Whittier Pomona San Pedro San Pedro (2nd Branch) Catalina Island There will be substantial trial delays as the …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/closure-of-10-la-county-courthouses/

Cost disclosures will generate the next wave of 401(k) litigation

Now that fee disclosures under section 408(b)(2) disclosures have been made, some plan sponsors will face the logical next step of being sued because of these disclosures. Some plans participants are paying unreasonable costs, yet some plan sponsors will not take the necessary next step of making this assessment and making investment changes. The largest …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/cost-disclosures-will-generate-the-next-wave-of-401k-litigation/

Higher Taxes = Free Theater Admissions?

What does a theater company do when its very existence is threatened by a government’s tax policies? It gives its performances away for free.  Well, kind of free. Reeling from austerity measures put in place to correct for the damage caused by the government’s runaway deficit spending, Spain raised its standard VAT, or Value-Added Tax, …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/higher-taxes-free-theater-admissions/

Severance Pay FICA Tax Treatment May Change

In a decision having significant impact, the Sixth Circuit ruled that payments to employees as part of a severance program are not subject to tax under the Federal Insurance Contributions Act, or FICA. The IRS is fighting the decision. Employers should file protective claims before the statute of limitations runs out. The case involves whether …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/severance-pay-fica-tax-treatment-may-change/

Business Interruption Insurance Reminders for Hurricane Sandy

Any insurance claim must start with a specific review of your policy. Nevertheless, the following items may be of particular interest in business interruption claims associated with Hurricane Sandy:           Check your policy for whether you have coverage for storm-related flooding. Many policies contain an exclusion for floods, unless you purchased …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/business-interruption-insurance-reminders-for-hurricane-sandy/

Is IRS Whistleblower the New Caped Crusader?

He strikes again. The IRS whistleblower known only as “Mr. ABC” has claimed his third payout for assistance in bringing down tax cheats.  Mr. ABC has been critical of the government’s ability to identify and investigate sophisticated tax shelters.  Whether motivated by a sense of justice or the pursuit of yet another seven figure reward, …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/is-irs-whistleblower-the-new-caped-crusader/

RIA disputes can now use FINRA arbitration

FINRA opened its arbitration system to Registered Investment Advisors. Until now, FINRA arbitration has been used by broker-dealers. FINRA indicates that a formal announcement will occur soon, but they have already begun accepting RIA cases. FINRA operates the largest dispute resolution forum in the securities industry. FINRA reported that it closed 3,747 arbitration cases this …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/ria-disputes-can-now-use-finra-arbitration/

Conflicting Rulings about SOX’s Scope Cause Private Company Employees to Stay with DOL Adjudication

The Administrative Review Board (ARB) for the U.S. Department of Labor (DOL) recently issued a decision regarding the scope of the whistleblower protections under Sarbanes-Oxley Act of 2002 (SOX). In Spinner vs. David Landau and Associates, SOX’s whistleblower protections were extended to employees of contractors of publicly-traded companies. The ARB specifically mentioned its disagreement with …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/conflicting-rulings-about-soxs-scope-cause-private-company-employees-to-stay-with-dol-adjudication/

Is the Electoral College More Strongly Supported by Those it Benefits the Most?

Each presidential election draws great attention to the Electoral College, a political institution that was born from a clash between large and small states.  The perennial question of whether the Electoral College system is “fair” becomes especially germane in the cases of a split vote (i.e. when one candidate wins the popular vote while another …

Continue reading

Permanent link to this article: http://betweenthenumbers.net/2012/11/is-the-electoral-college-more-strongly-supported-by-those-it-benefits-the-most/