| 11th Circuit Ruling Costs Lotto Winners Millions
Anthony Bertucci was a Florida Lotto winner about 10 years ago. Today, he is selling his home and moving out of state to pay the Internal Revenue Service after a federal appellate court decision last month that will cost 63 lottery winners nationwide millions in taxes. "I got to start over again. It just doesn't seem fair," said Bertucci, of Boca Raton, Fla., as his 1-year-old child cooed in the background. The 11th U.S. Circuit Court of Appeals in Atlanta ruled Dec. 19 that Bertucci and the others around the country who sold their winnings to investment companies must pay income taxes on the lump sum they received instead of lower capital gains taxes. The group was represented by Miami Beach tax attorney Steven M. Kwartin. The court did not ground its decision in the words of the internal revenue code; instead it relied on the uncodified "substitute-for-ordinary income doctrine." The difference for the petitioners: pay a tax rate of 39.6 percent as opposed to 20 percent.
Blunt's State of the State speech draws quick Democratic fire
"Our economy is growing, our schools are improving, our health care system has been transformed for the better," Gov. Matt Blunt said Tuesday night in his State of the State address to a joint legislative session, "and, most importantly, because we have the strength of Missourians as our foundation, The State of our State is strong."Attorney General Jay Nixon gave the Democratic response in a nine-and-a-half minute, pre-recorded message."We are a great state with great potential," he said. 'But like you, I am concerned that we are not moving in the right direction."On several occasions, Blunt contrasted his administration's work and accomplishments with the previous government operations under Democrat Bob Holden."Missourians want and deserve government that reflects Missouri values, government which rewards work and responsibility, encourages creativity, protects law-abiding citizens, spends tax dollars wisely, and helps those who cannot help themselves," Blunt said.
Fix foster care system
Florida's foster care system often resembles a tax-financed carousel that perpetuates the pathology of misery it is supposed to break. No one can argue the state's good intentions in removing a child from a dysfunctional home. But neither can anyone argue the system works when a child gets bounced among dozens of homes and turned out on his or her 18th birthday without the basics for entering adulthood - a family to lean on, solid life skills and a childhood steeped in confidence and trust. A lawsuit brought against the state by Karen Gievers, a Tallahassee attorney and child welfare advocate, should move the state to end the practice of forcing children to pay for their parents' mistakes. Gievers filed suit against the Florida Department of Children and Families and its nonprofit contractor in Hillsborough, saying both deprived a 17-year-old referred to as "Jacob Peters" of his rights and his childhood.
victoria m. smIth JOINS KEATS, CONNELLY AND ASSOCIATES
Keats, Connelly and Associates, an award-winning, wealth management firm that specializes in managing the complexities of accumulated wealth as well as U.S./Canadian cross-border planning, has named Scottsdale resident Victoria M. Smith, JD, CPA, as its newest tax manager. Smith will be responsible for preparing and reviewing individual, corporate, trust and partnership income tax returns for U.S. and Canadian clients. Smith will also oversee Keats staff of tax professionals, represent clients before state and provincial taxing authorities and coordinate tax activities between the Phoenix and West Palm Beach, Fla. offices. Smith is also a licensed attorney and a member of the Arizona State Bar Association, the American Institute of Certified Public Accountants and the Arizona Society of Certified Public Accountants.
Supreme Court considers eminent domain in smaller cities
A dentist asked the state Supreme Court on Thursday to prevent a St. Louis suburb from taking his property - a request that could affect property owners in hundreds of cities around the state.
The hearing, which drew an overflow audience, could make it more difficult for most of Missouri's cities and villages to use eminent domain to take private property and then use it for private development supported by special tax breaks.In Thursday's arguments, an attorney for Homer Tourkakis said the state constitution sets limits on which cities can use eminent domain to clear space for private development. Timothy Sandefur, from the California-based Pacific Legal Foundation, said without the restriction, "every town could use eminent domain to take your home, take your property away."But an attorney for the city of Arnold said eminent domain authority shouldn't be limited to select cities.In 2005, Arnold approved an ordinance that declared several properties blighted.
Snipes verdict in jury's hands
The IRS also says Snipes filed no tax returns at all from 1999 to 2004 while earning millions in income. "Nobody likes paying taxes. Nobody," Assistant U.S. Attorney Scot Morris told jurors. "But paying taxes is the price we pay to live in a civilized society, and it's the law. That's what this case is about. Three men who believe they are above the law, and they are not. Tell them that. Find them guilty." Named as co-defendants in the case are Eddie Ray Kahn, a known tax protester from Lake County whom Snipes hired as a consultant, and accountant Douglas Rosile of Venice. Jurors received the case at the end of the day and were instructed by the judge to pick a foreman before going home. They will return at 9 a.m. today to resume deliberations. Attorneys for Snipes rested their case Monday without calling a single witness.
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