Attacking the Credibility of a Witness at Trial in Pennsylvania

November 4, 2013 by

Side profile of a lawyer and a witness on the witness stand

Generally the character of a witness including the accused is not admissible at trial. However, the character of a witness is admissible when and if the accused introduces it during his testimony or the prosecution is put in a position to rebut an allegation made by defense counsel. For example, if the defense were to introduce evidence that the victim has poor vision and needs to wear corrective lenses in a case involving identification of the accused, then the prosecution can introduce evidence that the victim was wearing contact lenses, when he or she made the identification. This is the reason why defense counsel must thoroughly investigate the background of any witness called to testify including hiring an investigator when appropriate to avoid surprises.

Another exception to the general rule that character evidence is not admissible is if the defense counsel or prosecutor introduces it for another purpose. For example to show that a witness has engaged in previous crimes. The attorney introducing the evidence would submit that it being introduced to prove that the witness had prior knowledge and experience in committing the crime or had a motive to commit the crime and not as a means of attacking the witnesses character.

However even if an attorney introduces bad character evidence against opposing counsel’s witness, the opposing counsel can always impeach the credibility of the attorney’s witnesses. The rules of impeachment allow either the prosecutor or defense counsel to attack the credibility of any witness including their own witnesses. An attorney may use any evidence to impeach the credibility of a witness but is generally limited to prior convictions involving dishonesty or untruthfulness. In Pennsylvania, most courts will not allow an attorney to introduce a witness’s arrest record if it did not result in a conviction. The reason is the fact that a witness was arrested and charged with a crime, in and of itself, is not evidence of guilt.

The rules of evidence regarding character impeachment are more restrictive in Pennsylvania than they are in the federal courts. The federal rules of evidence allow an attorney to cross exam a witness on any past incidents regarding their character involving dishonesty or untruthfulness even if they did not result in a conviction.

It is important to hire an attorney that understands both the federal and Pennsylvania rules of evidence. If you have any questions or are charged with a crime please call Gregory J. Spadea at 610-521-0604 or contact us online.

Filed Under: Criminal Law Tagged With: , , , ,

Why Your Business Needs the SBA Section 8(a) Certification

October 28, 2013 by

Businesspeople meeting in conference room
What is the SBA Section 8(a) Program?
Section 8(a) of the Small Business Act empowers the Small Business Administration (SBA) to enter into contracts with other federal agencies to provide supplies, services and construction. In contracting with another agency, the SBA subcontracts all of the performance requirements to a “socially and economically disadvantaged small business concern.” Firm participation is divided into two phases over the nine year program: a four-year developmental stage and a five-year transition stage. A firm may only be certified once under the SBA Section 8(a) nine year program. During the first four years of this program, firms are in a developmental stage or growth stage. For the next five years, firms are in a transitional stage. The 8(a) program is SBA’s effort to promote equal access for socially and economically disadvantaged individuals to participate in the business sector. This program assists Section 8(a) approved firms to participate in the business sector by applying for government contracts and to become independently competitive in the marketplace.
Eligibility
To qualify for the program, a small business must be owned and controlled by a socially and economically disadvantaged individual. Presumed disadvantaged groups include African Americans, Hispanic Americans, Asian Pacific Americans, and Subcontinent Asian Americans.

Other individuals can be admitted to the program if they show through a “preponderance of the evidence” that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society. Individual applicants must be a U.S. citizen, be fully employed by the subject firm, possess and demonstrate the technical, managerial, operational experience to manage the firm. Individuals must have a net worth of less than $250,000, excluding the value of the business and primary residence.
Why you need an SBA Section 8(a) Designation and Certification
The biggest and most powerful benefit of 8(a) participation: vendors can receive sole-source contracts up to a cap of $3.5 million for goods and services and $5 million for manufacturing.

The SBA undertakes an extensive effort to provide contracting opportunities to those businesses certified under their 8(a) program. The SBA maintains close contact with various federal agencies to keep government personnel informed of the 8(a) program goals and procedures and to request that contract opportunities be reserved for the 8(a) program. There are some federal contracts that are set aside so that only 8(a) certified or Socially Disadvantaged Businesses (SDB) can bid on them. There are other cases where federal contracts are awarded to 8(a) firms without being put out for open bidding. These are called sole source contracts. It is imperative that 8(a) certified firms conduct independent marketing activities for contract opportunities both in the public and private sector. When a 8(a) firm soliciting business with federal government agencies identifies contractual opportunities, it may attempt to convince the federal agency that it is qualified to undertake the work, and that the firm’s name should be submitted to the SBA as the recommended contractor. The SBA has signed Memorandums of Understanding (MOUs) with 25 federal agencies allowing them to contract directly with certified 8(a) firms. Section 8(a) firms are also permitted to form joint ventures and teams to bid on contracts.
Spadea & Associates, LLC Offers Superior Assistance for the Entire Certification Process
Our staff provides expert assistance in the preparation and submission of the 8(a) application. Our Services are Complete and Comprehensive: We collect, analyze, prepare submission documents and professionally format your application, ensuring that it is responsive to the requirements as outlined by the Small Business Administration. We collect, prepare, package and submit your application to the respective SBA office in either King of Prussia, PA for east coast applicants or San Francisco, CA for west coast applicants. We provide on-going support, including representation at the SBA Office of Hearing and Appeals, until a final determination on the Certification Application is rendered. Our Services are all inclusive: initial strategic planning, preparing the application, submission to SBA, follow-up with SBA 8(a) officials, face-to-face representation before SBA’s Division of Program Certification and Eligibility and finally, if necessary, representation at the Office of Hearing Appeals by our trained and experienced attorneys. We also proactively address certain issues that our staff identifies which the SBA will be critical of in evaluating your application enabling your application to be processed faster. In the event the SBA raises issues in reviewing your proposal, we present strong and convincing arguments citing specific code sections of the Federal Regulations to overcome any objections preventing your application’s approval. If you have any questions or would like more information on Section 8(a) please call Gregory Spadea of Spadea & Associates, LLC at 610-521-0604 in Ridley Park, Pennsylvania.

Filed Under: Business Law Tagged With: , , , , , , ,

Discharging Federal Income Tax Debts in Bankruptcy

October 18, 2013 by

Bankruptcy sign
As a general rule, a debtor who files a bankruptcy petition is discharged from all personal liability for all debts incurred before the filing of the petition, which include those related to unpaid taxes. However there are five exceptions to this general rule that preclude federal income taxes from a discharge. Those five exceptions are:

1. A priority tax such as withheld payroll taxes or the IRS federal trust fund penalty.

2. A debt with respect to a fraudulent federal tax return.

3. More than three years must have elapsed since the tax return generating the tax liability was due, including extensions. Keep in mind various acts such as prior bankruptcies, collection due process (CDP) hearings and innocent spouse relief can extend this three-year time frame.

4. The actual tax return must have been filed more than two years earlier than the bankruptcy petition (generally applicable to late-filed returns). Note, however, that if IRS prepared “substitute for returns” (SFR) those SFR’s are not considered filed returns for this purpose, therefore a tax liability assessed from them would not be subject to discharge.

Therefore, it is always advisable for the debtor to file all delinquent returns and let the two year time frame pass before the bankruptcy petition is filed. Spadea & Associates, LLC can help prepare those delinquent federal and state tax returns to start that two year time frame.

5. At least 240 days must have elapsed since the date of an IRS assessment. This time frame is extended by an Offer in Compromise (OIC) and Collection Due Process Hearing (CDP).

Spadea & Associates, LLC can assist clients in determining if and when bankruptcy is a viable alternative for resolving federal tax liabilities by determining the composition of tax amounts owed and which tax liabilities might be dischargeable. Besides being aware of the tax resolution options of bankruptcy, we can recommend which administrative tax resolution methods the client should pursue first. These include innocent spouse relief, a request for abatement of penalties, an installment agreement or an offer in compromise (OIC). If those options are insufficient, bankruptcy may be the best way for clients either to secure a reasonable payment plan under Chapter 11 or Chapter 13 or to liquidate their assets to pay off all or a portion of their tax debt under Chapter 7. If you have any questions please call Gregory J. Spadea of Spadea & Associates, LLC at 610-521-0604 in Ridley Park, Pennsylvania

Filed Under: Tax Law Tagged With: , , , , ,

Proper Uses of Special Needs Trust Funds

October 14, 2013 by

Once you have a third party Special Needs Trust set up for a disabled beneficiary, you should know what the proper uses of Special Needs Trust funds are. The general rule is that the funds cannot be used to pay for any expense covered by Medicaid. Here is a general list of how the Special Needs Trust funds should be spent:

1. Purchase of home.
2. Architectural modification to residence owned by either the trust or the disabled beneficiary to permit greater accessibility.
3. Home improvements, repairs and maintenance including tools to perform home improvements, repairs and maintenance.
4. Furniture and home furnishings.
5. Home alarm or monitoring system.
6. Repair services for appliances, bicycle, household items and fitness equipment.
7. Cable television service like Comcast or Direct TV, telephone and internet.
8. Computer, laptop or tablet or e-readers including Apple Ipad, or Kindle with software, programs, e-books and applications.
9. Telephone service and equipment, including cell phone, pager, etc.
10. Appliances such as TV, DVD, microwave, stove, refrigerator, clothes washer and dryer.
11. Assistive technology not covered by Medicaid.
12. Snow removal, landscaping and lawn service.
13. House cleaning and laundry services.
14. Purchase of automobile or van to transport the disabled beneficiary including maintenance, insurance, repairs, fuel etc.
15. Fitness equipment.
16. Non-food grocery items such as laundry soap, bleach, fabric softener, deodorant, dish soap, hand and body soap, personal hygiene products, paper towels, napkins, tissues, toilet paper, any household cleaning products.
17. Over-the-counter medications including vitamins, herbs and protein shakes.
18. Holiday decorations, parties, dinner dances, holiday cards, reasonable modest gifts from beneficiary for customary special occasions to close family and friends.
19. Stationery, stamps, Christmas cards, etc.
20. Case management of the programs for the disabled beneficiary including attendant care.
21. Elective surgery.
22. Dental work not covered by Medicaid, including anesthesia.
23. Personal assistance services not covered by Medicaid.
24. Physical or occupational or speech therapy or any medical specialist not covered by Medicaid.
25. Musical instruments including lessons and music.
26. Prepaid funeral expense.
27. Psychiatric and psychological services including evaluations and private counseling if not covered by Medicaid.
28. Accounting services to prepare annual trust income tax returns.
29. Legal fees and Court costs to appoint a guardian.
30. Haircuts, salon services and message therapy.
31. Pet and pet’s supplies, veterinary services.
32. Educational courses or classes including supplies and tutoring.
33. Clubs and club dues including record clubs, book clubs, health clubs, service clubs, zoo, advocacy groups, museums etc.
34. Tickets for concerts and conferences
35. Travel costs like airline tickets to family and friends.

If you have any questions about setting up or operating a special needs trust please contact Gregory J. Spadea at 610-521-0604 of Spadea & Associates, LLC in Ridley Park, Pennsylvania.

Filed Under: Estate Planning Tagged With: , ,

Deducting Long Term Care Insurance Premiums on my Federal Income Tax Return

October 9, 2013 by

You may deduct long-term care policy premiums on your federal income tax return because it is considered health insurance. Premiums paid for qualified policies are treated as medical costs for federal itemized medical expense deduction purposes. However, the maximum amount that can be treated as a medical expense for 2013 is the lower of the actual premium amount paid or the age-based limit shown in the following table. These age-based limits are adjusted annually for inflation. As such, they can help you exceed the applicable adjusted gross income (AGI) hurdle. Beginning in 2013 if you are under 65 years old, your medical expenses have to exceed 10% of your adjusted gross income to be deducted.

Age at 12/31/13   |    Max Amount Treated as Medical Expense

40 and under                             $360
41 to 50                                      $680
51 to 60                                      $1,360
61 to 70                                      $3,640
Over 70                                      $4,550

If you need help preparing your federal or state income taxes please contact Gregory J. Spadea of Spadea & Associates, LLC at 610-521-0604, located in Ridley Park, Pennsylvania.

Filed Under: Tax Law Tagged With: , , , ,

How Do I Get My Criminal Records Expunged in Pennsylvania?

October 2, 2013 by

Close-up of a judge handing down a verdict

In Pennsylvania, you may have your criminal record cleared or “expunged” if you satisfy certain requirements under Pennsylvania law. If you are granted an expungement, your criminal record will be removed from the Department of Court Records’ files as well as the files of other criminal justice agencies. In essence, there will be no record that you were ever charged with a crime.

To determine which charges on your record can be removed through the expungement process, you must look at the disposition or outcome of the case. If you were convicted, typically the disposition will be listed as pled guilty or found guilty. If the charges against you were dropped, the disposition may say dismissed.

Charges with the following dispositions may be eligible for expungement:

  • Withdrawn
  • Dismissed
  • Nolle Prossed
  • Not Guilty
  • Disposition Unreported/No Further Action Taken

Additionally, if you pled guilty or were found guilty of a summary offense, the conviction for that summary offense may be eligible for expungement if you have remained free from arrest or prosecution for 5 years following the conviction. Examples of summary offenses include traffic violations and disorderly conduct.

You can also obtain an expungement if you successfully completed the Accelerated Rehabilitation Disposition Program and finished the probation period.

Please note that before you can file for an expungement in a particular case, you must pay off any outstanding fines, costs, or restitution for that case. If you still owe fines and costs, the Department of Court Records will not allow you to file your petition.

If you pled guilty or were found guilty of a misdemeanor or felony offense, you must apply for a Governor’s Pardon. Misdemeanor and felony convictions are NOT eligible for expungement.

If you need help filing a petition for expungement or pardon please call Gregory J. Spadea of Spadea & Associates, LLC at 610-521-0604, in Ridley Park, Pennsylvania.

Filed Under: Criminal Law Tagged With: , ,

The IRS Recognizes Same Sex Marriage

September 3, 2013 by

IRS Recognizes Same Sex Marriage
The Internal Revenue Service have ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage. The ruling implements the federal tax aspects of the June 26th Supreme Court decision invalidating a key provision of the 1996 Defense of Marriage Act and had been long-awaited by tax professionals who wanted more clarity from the IRS. Under the ruling, same sex couples will be treated as married for all federal tax purposes including income, gift and estate taxes. The ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits like deducting health insurance, contributing to an IRA, and claiming the earned income tax credit or child tax credit.

Any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory, or a foreign country will be covered by the ruling. However, the ruling does not apply to registered domestic partnerships or civil unions recognized under state law. Legally married same-sex couples generally must file their 2013 federal income tax return using either the “married filing jointly” or “married filing separately” filing status.

In addition, employees who purchased same-sex spouse health insurance coverage from their employers on an after-tax basis may treat the amounts paid for that coverage as pre-tax and excludable from income.

Individuals who were in same-sex marriages may file amended income tax returns choosing to be treated as married for federal tax purposes for one or more prior tax years still open under the three year statute of limitations. As a result, refund claims can still be filed for tax years 2010, 2011, and 2012. Some individuals may have signed an agreement with the IRS to extend the statute of limitations and permit them to file refund claims for tax years 2009 and earlier.

If you need assistance in filing an amended federal income tax return please call Gregory J. Spadea of Spadea & Associates, LLC in Ridley Park, Pennsylvania at 610-521-0604. Spadea & Associates, LLC provide estate and tax planning and file income tax returns year round.

Filed Under: Tax Law Tagged With: , , , , ,

What is the Pennsylvania Capital Stock Tax?

August 27, 2013 by

Philadelphia skyline
The Pennsylvania Capital Stock Tax is a property tax applicable to all Pennsylvania corporations, S-Corporations and limited liability companies. The tax is reported on the Pennsylvania RCT-101 tax return and is also known as the Franchise tax. Pennsylvania replaced the 7 digit box number with a 10 digit business partner number in the fall of 2013, and will begin using the business partner number on 2013 RCT 101 Returns

This tax is computed by multiplying the Capital Stock Value of the entity times the Capital Stock Tax Rate.

The Capital Stock Value is determined according to the following statutory formula: the product of 1/2 the sum of (1) the five year average net income capitalized at the rate of 9.5% plus (2) 75% of net worth*, from which you subtract $160,000.

The Capital Stock Rate is subject to the following gradual reduction: 2.89 mills (.00289) for tax years beginning during 2008 through 2011; 1.89 mills (.00189) for tax years beginning during 2012; and 0.89 mills (.00089) for tax years beginning in 2013. The rate is reduced to .67 mills (00067) in 2014 and .45 mills (.00045) in 2015. The tax is supposed to phase out completely on December 31, 2015.

*Net worth for a corporation is calculated by adding capital stock, paid-in capital and retained earnings, and subtracting treasury stock. All values are determined as of the end of the tax year which is typically December 31, unless the corporation uses a fiscal year. If the corporation had losses in prior years or the current year the number can be negative.

The net worth for LLCs is the entity’s assets minus its liabilities.

If your Corporation does business or owns property in Pennsylvania but is incorporated in another State you need to file RCT-106 along with the RCT-101 to pay the Foreign Franchise Tax.

Please contact Gregory J. Spadea of Spadea & Associates, LLC in Ridley Park if you need assistance in filing an RCT-101 or have any other corporate tax questions at 610-521-0604. Spadea & Associates, LLC prepares individual and business income tax returns year round.

Filed Under: Tax Law Tagged With: , , , , , , ,

What Can I Do With My Life Insurance Policy?

August 20, 2013 by

Do you have a life insurance policy and no longer want it or can’t afford the premiums? You can do more than just stop paying the premiums or cashing it in with the insurance company.

Many people have sold their policies in a life settlement sale for cash. The process is not easy, but it can be in your best interests to explore it.

How does it work?

First, we will review your policy and appraise it to determine the market value. Next, we will find a buyer. Once we have a buyer and complete the sale, you will receive a cash settlement and the buyer will pay the future premiums and collect the benefit when you die.

Finding a buyer on your own can be very difficult, which is where we come in. We have contacts in the market and are able to find the best deal for you. You will receive a percentage of your policy’s value in cash. For a free consultation contact David Edelman at 610-521-0604.

What you should know before selling your policy

  • Your life insurance policy may not have much value on the market.
  • You won’t get the full face value. Generally, sellers receive about 7 percent to 20 percent of the value of their policy.
  • Brokers charge a commission.
  • Buyers don’t want every policy.
  • Your settlement could be subject to income tax.
  • Your eligibility for government assistance programs like Medicaid may be affected.

If you would like to discuss your options or are interested in finding out more, please call David W. Edelman at 610-521-0604 at Spadea & Associates, LLC in Ridley Park, Pennsylvania.

Filed Under: Estate Planning Tagged With: , , ,

When Are Fiduciary Bonds Required in Probate?

August 5, 2013 by

Fiduciary bonds or administrator’s bonds, act like an insurance policy covering the administrator’s performance of his or her duties. The purpose is to ensure that the administrator does not steal the beneficiary’s assets, which is what the bond insures against.

Fiduciary bonds are not required if the decedent left a valid Last Will and Testament that specifically waives the requirement for a bond. This alone is a compelling reason why everyone should have a Will, even if their intended beneficiaries are the same people who would inherit under the intestacy laws.

Fiduciary bonds are required if the decedent’s Last Will and Testament did not waive bond, or if the decedent died intestate (without a will). It may take one to three weeks for fiduciary bond to be issued and the estate cannot be probated until the bond is issued.

The amount of the bond depends on the size of your estate. Pennsylvania requires the bond to be double the value of the personal assets. Real estate is not typically included in the bonded amount. Because real estate is inherently fixed, there’s no concern that the personal representative will steal it. The amount of the fiduciary bond can fluctuate over time. If more assets are discovered, the amount could increase. If a distribution is made from the estate, the amount could decrease. You should monitor the amount of the bond to be sure that it accurately reflects the value of the estate.

Fiduciary bonds are usually renewed on an annual basis. The longer the estate remains open, the more money is paid out in bond premiums by the estate. This creates an incentive for the personal representative to keep things moving and complete the process as quickly as possible. A pro rata refund of the bond premium may be available if the estate is closed before the one year anniversary of the bond issue date.

If you have any questions about surety bonds or probating an estate please call Gregory J. Spadea at 610-521-0604. Spadea & Associates, LLC located in Ridley Park, Pennsylvania provides estate and tax planning services and probates estates.

Filed Under: Estate Planning Tagged With: , , , , , ,

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