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Monye in the Wrong Account
charsetndows-1252
Gerry:
Must disclose.
Probably should research and point out that per California law (Business & Professions Code or Civil Code), these are trust funds, at least what has been paid by an owner for payment to a subcontractor.
It isn't an exemption issue if the money isn't there on the filing date.
Maybe a fraudulent transfer issue, but that is why the trust fund angle is important.
Now, let's hear from the trustees!
Jason
Jason Wallach
jwallach@gladstonemichel.com
On Aug 15, 2012, at 4:32 PM, Gerald McNally wrote:
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> Dear Listmates,
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> Contractor client operates through a corporation (95% ownership, 5% co-owner not family). But on his recent big jobs, hes put the funds reserved for materials and subcontractors not into his corporate account, but his personal account. ($30,000 or so).
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> I advised him to immediately open a corporate account and put the funds into that.
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> Do I have a disclosure obligation in regards to this and if so , how long?
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> Do I have an exemption issue, other than the usual of doing a corporate asset and liability analysis?
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> Gerry McNally
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> Gerald McNally
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> McNally & Associates, P.C.
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> 517 East Wilson Ave., Ste 104
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> Glendale, CA 91206
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> 818.507.5100
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> Fax: 818.507.5001
>
>
>
> Notice to Recipient: This email is meant for only the intended recipient of the transmission and may be a communication privileged by law. If you received this email in error, and review, use, dissemination, distribution or copying of this email is strictly prohibited. Please notify us immediately of the error by return email and please delete this message and any and all duplicates of this message from your system. Thank you in advance for your cooperation.
>
>
>
> IRS Circular 230 Disclosure: In order to comply with the requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
>
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charsetndows-1252
Gerry:Must disclose.Probably should research and point out that per California law (Business & Professions Code or Civil Code), these are trust funds, at least what has been paid by an owner for payment to a subcontractor. It isn't an exemption issue if the money isn't there on the filing date.Maybe a fraudulent transfer issue, but that is why the trust fund angle is important.Now, let's hear from the trustees!Jason
Jason Wallach
The post was migrated from Yahoo.
Dear Listmates,
Contractor client operates through a corporation (95% ownership, 5%
co-owner not family). But on his recent big jobs, he's put the funds
reserved for materials and subcontractors not into his corporate
account, but his personal account. ($30,000 or so).
I advised him to immediately open a corporate account and put the
funds into that.
Do I have a disclosure obligation in regards to this and if so , how
long?
Do I have an exemption issue, other than the usual of doing a
corporate asset and liability analysis?
Gerry McNally
McNally Bus Card Smaller
Gerald McNally
McNally & Associates, P.C.
517 East Wilson Ave., Ste 104
Glendale, CA 91206
818.507.5100
Fax: 818.507.5001
Notice to Recipient: This email is meant for only the intended
recipient of the transmission and may be a communication privileged by
law. If you received this email in error, and review, use,
dissemination, distribution or copying of this email is strictly
prohibited. Please notify us immediately of the error by return email
and please delete this message and any and all duplicates of this
message from your system. Thank you in advance for your cooperation.
IRS Circular 230 Disclosure: In order to comply with the requirements
imposed by the Internal Revenue Service, we inform you that any U.S.
tax advice contained in this communication (including any attachments)
is not intended to be used, and cannot be used, for the purpose of (i)
avoiding penalties under the Internal Revenue code or (ii) promoting,
marketing or recommending to another party any transaction or matter
addressed herein.
The post was migrated from Yahoo.