John P Fazzio III’s Answers

John P Fazzio III

Mahwah Foreclosure Attorney.

Contributor Level 16
  1. Minimizing Tax Impact on Member-Managers in Converting from a DE LLC to DE C-corp

    Answered over 2 years ago.

    1. John P Fazzio III
    2. Jeffrey Mead Kurzon
    2 lawyer answers

    This is a complicated question. As you must already be aware, the 83(b) election must be made within 30 days of the stock purchase date. Whatever you do, you want to make sure you do not miss the window for making that election. You have a few options on the conversion, but by far the most common choice would be to create a Delaware C-Corp and merge the LLC into the Delaware C-Corp. To structure the transaction to avoid tax, there must be a pro-rata distribution of C-Corp shares to the...

    3 lawyers agreed with this answer

  2. Does a husband have a legal right to see his wife's income tax files for prior years since they have been married.

    Answered over 2 years ago.

    1. John P Fazzio III
    2. Jayson Lutzky
    3. Evan A Nielsen
    3 lawyer answers

    In a divorce proceeding you will be entitled to the other party's financial information. During the marriage, you do not have a right to see these filings if you are married filing separately. I think it really depends on the reason why you want to see them. You may have a separate legal right that will entitle you to discovery of this kind of information, but there isn't a particularly common situation that is coming to mind when this would be required.

    3 lawyers agreed with this answer

  3. Wife passed away and wasnt filing taxes. Am I liable for her debt.?

    Answered over 2 years ago.

    1. John P Fazzio III
    2. Evan A Nielsen
    3. Daniel Lee O'Neil
    3 lawyer answers

    It is important to know the filing status. I take it from your question that you filed your taxes between 2007 and 2011, but it is not clear. If you were filing jointly or have joint assets, you may be on the hook or the IRS/State Tax Authorities may have a lien against your assets. The facts are really critical here. If you paid the state taxes, that may actually be a positive. Given your financial circumstances (just retired and not collecting SS), you may be able to discharge any part...

    3 lawyers agreed with this answer

  4. Im disabled & collect about $1000 month SS Disabilty. I have 380,000 in a low risk portfolio that I received from an accident. I

    Answered over 2 years ago.

    1. Deborah F Bowinski
    2. Michael A. Koplen
    3. John P Fazzio III
    4. Hermin A. Dowe
    4 lawyer answers

    The payouts in your portfolio should not be taxed just because they were withdrawn from a portfolio if they were not taxable to begin with. Generally gross income does not include damages for personal injury, worker's compensation or other benefits received as a result of an injury (IRS Sections 104-106). Therefore, these amounts are likely not taxable now. The interest of course is taxable and shows up on a 1099-INT at year's end. The company who you keep your portfolio with must have...

    3 lawyers agreed with this answer

  5. Pls help me with this mortgage question.

    Answered over 2 years ago.

    1. Michael T Millar
    2. John P Fazzio III
    3. Mitchell Aaron Nathanson
    4. Ivan E. Young
    5. Michael S. Sheena
    5 lawyer answers

    It looks like you are excerpting from your mortgage or more likely your promissory note. A balloon payment is usually a payment of the remaining balance that comes due after a certain number of years. Essentially, this is a way for the lender to make you a shorter term loan. You really need to supply more information, but I suspect that the type of loan that you have is one where it was anticipated that you would ultimately re-finance. You need to read the mortgage/promissory note carefully...

    3 lawyers agreed with this answer

  6. Filed #7 bankrupty 2 years ago, did not reaffirm , do you think if we offered 2nd mortage 10-15% of bal they might accept?

    Answered about 1 month ago.

    1. John P Fazzio III
    2. Barry W. Rorex
    3. Shawn B Alexander
    3 lawyer answers

    If the loan is underwater it is fairly common for a 2nd mortgage holder to accept far less than the loan balance to settle. Each lender has their own internal metrics and due diligence requirements. But, 10% to 15% is not out of the question. If you are showing limited resources they are likely to take it. If you have $200,000 liquid in your bank account, then they probably will say no.

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  7. The bank sold my mortgage loan to another company, can I move for dismissal of the foreclosure case ...

    Answered over 1 year ago.

    1. John P Fazzio III
    2. Grace Mary Doberdruk
    3. Robert J Adams Jr.
    3 lawyer answers

    Generally, the transfer of negotiable paper is governed by the Uniform Commercial Code. The UCC gives two different statuses to assignees. First, is the Holder in Due Course. This is like a good faith purchaser from a dealer. The Holder takes title and is immune from predatory lending claims against the originating bank. To be a Holder, the bank must have an indorse meant of the ORIGINAL note over to it. Second, is a Non-holder in Possession Status. To achieve this status, the assignee...

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  8. Possible Sales Tax Evasion & Employee liability

    Answered over 2 years ago.

    1. Roberto Lopez Jr.
    2. Daniel Lee O'Neil
    3. John P Fazzio III
    3 lawyer answers

    This is a difficult question to answer and you should really consult a local tax attorney. If you have any responsibility for collecting or remitting sales tax or reconciling the books in this regard you can be held responsible. This is a fact intensive inquiry. Certainly, now that you are aware of it, you will end up being held responsible unless you confront your boss and see that the matter is corrected. The statutory basis for the state’s power to hold corporate officers and similarly-...

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  9. My friend died owing California $53,000 and the IRS $1,495. His personal property is worth virtually nothing. What now?

    Answered about 2 years ago.

    1. Eduardo Guillermo Sanchez
    2. L. Maxwell Taylor
    3. John P Fazzio III
    3 lawyer answers

    His estate has no assets, so the IRS is out of luck. But, anything he does have should go to satisfy his last year's taxes and any IRS liens against him personally, and should not be going to his heirs.

    4 lawyers agreed with this answer

    1 person marked this answer as helpful

  10. WE received a letter from an IRS Revenue Officer asking our President to meet with him to tell him why our back taxes owed for

    Answered over 2 years ago.

    1. Gregory Herman-Giddens
    2. Andrew B Gordon
    3. Amanda Marie Cook
    4. John P Fazzio III
    4 lawyer answers

    I am confused by your question. If you are administratively dissolved you no longer enjoy 501(c)(3) status, which has stringent annual reporting requirements. It also is strange for a Revenue Officer to require an in-person meeting 900 miles away. If you have not been filing you have a serious problem and need to see local Florida tax counsel right away.

    4 lawyers agreed with this answer

    1 person marked this answer as helpful

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