Claims by Two NY Audi Dealers Move Forward

By Jerry Meek Elsewhere, I’ve written about the power of the implied covenant of good faith and fair dealing as a litigation tool.  Last week, a New York appellate court proved the point, holding that claims by two auto dealers, based both on the express language of the Dealer Agreements and the implied covenant of […]

What is the U.S. Tax Court?

By Jerry Meek The United States Tax Court is a nationwide court, created by Congress pursuant to its powers under Article I of the U.S. Constitution.  The Court is composed of 19 Judges appointed by the President, former Judges serving on recall (known as “Senior Judges”), and Special Trial Judges appointed by the Court’s Chief […]

When a Trademark is Infringed, How Long Can You Wait Before Suing?

By Jerry Meek Claims for trademark or service mark infringement are usually brought pursuant to the Lanham Act, 15 U.S.C. § 1051 et. seq.  But that Act contains no statute of limitations.  So when infringement occurs, how long do you have to seek redress? Some Courts – including the Fourth Circuit – draw on the […]

Some People Will Do Anything to Avoid Paying Up on a Reward

By Jerry Meek I’m not a big music fan, but a decision last week by the U.S. District Court for the Southern District of New York caught my eye. It seems that Ryan Leslie – described in his Wikipedia page as an “American record producer, singer-songwriter, multi-instrumentalist and occasional rapper – lost his laptop and […]

Politics, taxes, and your business

By Jerry Meek If you run a business, there are a few things you should know about politics and taxes. 1. There’s no bad debt deduction for debts owed by political organizations.  Accrual method taxpayers are accustomed to reporting income when earned, regardless of when they actually get paid.  If, in a later tax year, […]

Can a dealer be liable for commitments made in the Dealer Application?

By Jerry Meek When a potential dealer submits an application for a dealer franchise, can the dealer be liable for failing to fulfill the commitments made in the application?  Perhaps not, one court recently said in Volvo Trucks North America v. Andy Mohr Truck Center, No. 1:12-cv-448 (S.D.Ind. October 9, 2012). In 2009, Andrew Mohr […]

Pass-through for me, but not for thee

By Jerry Meek The limited liability company (or “LCC”) is now available in every state in the United States.  Such entities have become the darlings of incorporators, largely because they offer the advantages of limited liability, combined with the tax advantages of pass-through taxation (unless some other classification is affirmatively elected).  Under the default rules, […]

After an Acquisition, When are Wages Actually Disguised Purchase Payments?

By Jerry Meek When a C-corporation sells an asset and the corporation’s owner goes to work for the buyer, there may be an incentive for the parties to pay the owner a higher salary than the market will bear, as disguised payments for the asset.  That’s because the purchaser can currently deduct salary, but must […]

Meek Speaks to Annual Meeting of CPAs and Accountants

On October 9, 2012, Jerry Meek was one of five speakers at a day-long continuing education program, attended by approximately 150 CPAs and accountants from all over North Carolina. Meek’s presentation highlighted some of the top tax law developments of 2012.  Among others, the list included the following: 1. Nat. Fed. of Independent Business v. […]

Lawyers’ Tax Disclaimers Soon to be Obsolete

by Jerry Meek At the bottom of most lawyers’ emails, you’ll find an oddly worded tax disclaimer.  In its usual form, it cautions the recipient that “any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purpose of avoiding tax related penalties or promoting, […]