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Snow tires are different from “All Season” tires.  In the northern part of the United States, all season radial tires should be considered three season tires.  

Unfortunately all season tires are not made for use where there is any snow, such as the Northeast part of the country, where I am located. 

The snow tires are made differently than all season radials, particularly for the snow conditions.  The snow tires have a different composition of rubber, specifically formulated for snow.  

Also, the treads are different on snow tires, to make it easier to grip the snow, during winter conditions. 

There are two downsides to using snow tires.  First, you have you do a winter tire changeover – change your regular tires to the snow tires, before winter arrives.   Also, the winter tires wear faster than the snow tires.   However, the added cost and inconvenience of using snow tires is made up in safety.  

Stay safe during the winter season.  

If you have been involved in an auto accident, feel free to call  Attorney Robert M.  Singer for further assistance. 

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

The State of Connecticut, Insurance Department, Bulletin PC-65, dated December 21, 2009 discusses Public Act 09-72 regarding Underinsured Motorist Conversion Coverage

I am reproducing Page 3 of the Bulletin below

INFORMED CONSENT FORM UNINSURED MOTORISTS COVERAGE

Types of Coverage

Uninsured Motorist (UM)/Underinsured Motorist (UIM) Coverage. Our law requires you to buy Uninsured Motorist (UM/UIM) coverage. Generally, this coverage only applies where the person who causes an accident is not an insured under your policy.

Anyone injured in an accident may seek to recover damages from the person causing the loss. These losses include your medical bills, lost wages (past and future), as well as payment for disabilities, pain and suffering and loss of enjoyment of life’s activities.

Normally, these damages would be paid by the other person’s insurance company. UM/UIM coverage protects you, your family and others in your car for injuries caused by someone who did not buy insurance.

You have the right to choose the amount of coverage. It can be as low as $20,000 per person and $40,000 per accident, or as high as twice your policy’s bodily injury liability coverage limit. The amount of liability coverage you buy will govern the maximum amount of UM/UIM coverage you can buy.

This coverage also includes standard Underinsured Motorist (UIM) coverage. It protects you where injuries are caused by someone whose insurance is not enough to pay your damages and is less than your UM/UIM limits. UIM coverage will pay your damages to fill in the difference between those limits. However, the protection available under standard UIM coverage is usually reduced by amounts paid by workers’ compensation, or by or on behalf of the person at-fault.

Underinsured Motorist Conversion Coverage. Under our law, you can convert standard UIM coverage to UNDERINSURED MOTORIST CONVERSION (UIMC) COVERAGE. This coverage is not reduced by payments from any source. If your damages exceed the amount of the at fault person’s insurance, or other payments, your UIMC coverage will be available for damages not paid.

Both standard (UIM) and conversion (UIMC) coverages only become available after the liability insurance of the at-fault person has been fully paid.

Stacking

Connecticut law does not provide for stacking of UM/UIM coverage. Stacking allows insureds to add together UM/UIM coverage under separate policies or, in multi-car policies, the insurance applicable to each car.

With stacking, if you had two insured cars and you purchased $100,000 of UM/UIM coverage you received (and you paid for) $200,000 of protection. Under current law, the amount purchased ($100,000) is not multiplied by the number of cars insured.

Also, your UM/UIM coverage is limited to the highest available limit under any of the policies that apply to the accident. If you are injured in a car you own, you are limited to the amount of coverage for that car

Important things to consider

1.   Uninsured motorist coverage applies if someone causes and accident and has no insurance to cover your claim.
2.   Underinsured motorist coverage applies if your insurance coverage is greater than that of the responsible party.

Example – you have bodily injury coverage of $100,000

the other party has bodily injury coverage of $20,000.  If you have $40,000 in damages, you can collect $20,000 from the responsible party, and make a claim against your own insurance policy for the additional $20,000.

If you and the responsible party each have $20,000 in coverage, you cannot bring a standard underinsured motorist claim.  To be underinsured, your coverage must be greater that the coverage of the responsible party who caused the accident.

3.  Conversion Coverage.  “This coverage is not reduced by payments from any source.”

You have a personal injury claim with a value of $40,000. The other party has $20,000 in coverage, which the insurance company pays you.

If you have a $20,000 policy, with conversion coverage, you can collect $20,000 from your own insurance company.     Without the conversion coverage, you cannot collect from your own insurance company.

4.  You and several other parties are injured by a drunk driver.  The drunk driver has $100,000 in coverage.   You also have $100,000 in underinsured motorist coverage

The drunk driver’s insurance company pays out as follows

$50,000 to injured party #1

$30,000 to injured party #2

$20,000 to you.

With the conversion coverage you can collect up to $100,000 for your injuries from your own insurance company.

Without the conversion coverage, you are not considered underinsured.

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

Ice can quickly form on a road and sidewalk, when there is rain which quickly freezes on contact with the surface.   It is called “black ice” because you cannot see the ice on the surface, as the ice is clear.  All you see is the surface.   On a road, you see the black surface, of a road, but no ice.

Black ice is extremely dangerous because your car can spin out of control, or you can fall, on a surface which is covered with ice, which you don’t see.

Be particularly careful in situations in which there is rain and the temperature is close to freezing.   The rain may freeze on contact with the ground and cause the black ice.

Also, you can have melting snow, due to a rising temperature.  When the temperature drops, ice can form, causing black ice.

Have a safe winter.

If you have been injured because of an accident from ice or snow, please feel free to call Attorney Robert M. Singer.

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

 

 

I have heard many clients tell me that the IRS is killing them with the interest charges.  Actually, in many cases, it is the tax penalties which are more costly than the interest.  Therefore, I will start by explaining the common income tax penalties provided by the Internal Revenue Code.

1. The  Fraud Penalty applies when there is “fraud” in the underpayment of tax required to be shown on a return.   The fraud is equal to 75% of the tax underpayment associated with the fraud.   Generally, if there is an underpayment of tax on a return, there is presumption that the entire underpayment is associated with the fraud.

The Internal Revenue Manual gives the definition of “fraud” as follows  – “a deception or misrepresentation of material facts, or silence when good faith requires expression, resulting in material damage to one who relies on it.”   Fraud requires a tax due and owing and fraudulent intent.   Section 25.1.1 of the Internal Revenue Manual.

Most common situations of fraud are intentional understatement of income, or improper deductions.   For example, you use a scheme to hide income, or you have business income which you intentionally fail to report.   Or you take a large deduction for an expense which was never paid or incurred.

The penalty is 75% of the tax which should have been paid, so if the tax due is $10,000, the penalty added on is $7,500, then interest is added to the $17,500 due.

A taxpayer can be separately charged with a crime for tax fraud, but that is a whole other topic.

1. A Failure to File Penalty applies when a taxpayer fails to timely file a tax return.  Income tax returns are generally due on the 15^th of April.   You can file for an automatic extension.

Generally the penalty is 5% of the amount due for the first month, plus 5% for each month until the return is filed.   The maximum penalty is 25% of the tax due.

In the case of a fraudulent failure to file, the penalty goes up to 15% per month, to a maximum of 75% .

Therefore, even if a tax is due and you don’t have the money, file the return.  

2. A Failure to Pay Penalty applies for late payment of a tax due. You are expected to pay a tax when it is due.   The filing of an extension does not extend the time to pay an income tax due on filing. Therefore, you may receive a penalty even if you file an extension.   The extension form requests the estimated amount due at filing – which needs to be paid when the extension is requested.

Generally, the penalty each month is 5% of the tax due for each month past due, up to 25% of the total tax due.   (Note, there can be two penalties at the same time – typically failure to file and failure to pay penalties – which can easily add on 50% to the tax already outstanding).

3. Accuracy Related Penalties apply for making an error, on a tax return, which results in a deficiency.  I will only cover the errors which I have most commonly seen with taxpayers

Internal Revenue Code Section 6662 provides for a penalty for negligence or disregard of the rules or regulations, and substantial understatement of income tax.   See Internal Revenue Manual Section 20.   Section 6676 imposes a penalty for an improper claim for refund or credit concerning income taxes.

Let’s start with the “substantial understatement of income.”   Generally, an understatement is the tax amount required to be shown on the return in excess of the tax shown on the return.    Basically, your correct tax bill exceeds the tax bill due on the return which you filed.   An understatement is substantial if it is greater than $5,000 or 10% of the tax return to be show on the return.  So if the actual tax due is $24,000, the understatement is substantial if it is greater than $5,000 or $2,400.

“Negligence” includes “any failure to make a reasonable attempt to ascertain the correctness of a reported item “which would seem to a reasonable and prudent person to be ‘too good to be true’ under the circumstances.”   See Internal Revenue Manaual Section 20.1.5.7.1 2.  When disregarding rules, the action includes “careless, reckless, or intentional disregard.”    Unfortunately, even if there is no substantial understatement of income, the IRS is likely to assess the negligence penalty, unless the taxpayer can show a good faith basis for reporting a particular tax item in a particular way, such as reference to the Internal Revenue Code, or Regulations.

However, if the taxpayer does not prepare his or her own return, the taxpayer can blame the tax preparer.    The IRS is supposed to consider the “experience, knowledge and sophistication and education of the taxpayer.  IRM 20.1.5.6.3 1.   Reliance on a tax opinion … may serve as a basis for .. good faith exception to the accuracy related penalty.

The penalties are equal to 20% of the additional tax due to the error.

To avoid tax trouble with the IRS, people with any type of complicated tax return need to use a tax preparation service, and provide all relevant and accurate information to the service.   Turbo Tax won’t do.

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

New Law Effective October 1, 2016

Sec. 53. (NEW) (Effective October 1, 2016) (a) For the purposes of this section, “creditor” has the same meaning as in section 36a-645 of the general statutes.
(b) No creditor or consumer collection agency that purchased debt shall initiate a cause of action to collect the debt owed by a consumer debtor when such creditor or consumer collection agency knows or reasonably should know that the applicable statute of limitations on such cause of action has expired.
(c) Notwithstanding any other provision of law, when the applicable statute of limitations on a cause of action to collect debt owed by a consumer has expired, any subsequent payment toward or oral or written affirmation of the debt owed by the consumer shall not extend the limitations period within which the creditor or consumer collection agency that purchased the debt may bring the cause of action.

Parts (b) and (c) apply to debt buyers

For part (b), it is illegal for a creditor or consumer collection collection to start a collection lawsuit if it should reasonably know that the statute of limitations has expired.  Typically, the statute of limitations runs from the date of the last payment.

For part (c), it was not uncommon for a debtor to affirm (acknowledge a debt) or make a small payment on a debt, right before or after the statute of limitations would have expired.   The acknowledgment or payment extended the statute of limitations form the date of the acknowledgment or payment.  Under the new law, the affirmation or payment to a debt buyer does not extend the statute of limitations.

Normally in Connecticut, the statute of limitations on purchased debt is 6 years from the date of the last payment.

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

AN ACT CONCERNING CONSUMER COLLECTION AGENCIES AND DEBT COLLECTION ACTIONS.

Sec. 6. (NEW) (Effective October 1, 2016) In any cause of action initiated by a creditor, as defined in section 36a-645 of the general statutes, or by a consumer collection agency, as defined in section 36a-800, as amended by this act, for a liability on debt owed by a consumer debtor, as defined in section 36a-645 of the general statutes, the creditor or consumer collection agency shall attach the following materials to the complaint:

(1) A copy of the contract or other documentation evidencing the original debt and containing a signature of the consumer debtor or, if the debt is credit card debt and no such signed documentation exists, copies of the documentation generated when the credit card was used; and

(2) A copy of the assignment or other documentation (A) establishing that the plaintiff creditor is the owner of the debt, (B) containing the original account number and name associated with the debt, and, (C) if the debt has been assigned more than once, a copy of each assignment or other documentation that establishes an unbroken chain of ownership of the debt by the plaintiff creditor.

 

RULE 1 CAN BE SUMMARIZED AS FOLLOWS

THE FOLLOWING DOCUMENTATION NEEDS TO BE ATTACHED TO THE COMPLAINT

A.  IF NOT A CREDIT CARD DEBT –  A copy of the contract or other documentation evidencing the original debt and containing a signature of the consumer debtor

The important part of this rule is the requirement that the creditor have documentation with the consumer debtor’s signature.   Note that this is consumer debt, not commercial debt.   Also, a court should strike the complaint if there is no appropriate signature.

B.  IF CREDIT CARD DEBT – Either

1.  documentation with a signature   OR

2.   copies of the documentation generated when the credit card was used.    This should require credit card statements showing use of the card, with charges.     It should be insufficient to provide statements merely showing the accrual of interest and late fees.

RULE 2 APPLIES TO DEBT BUYERS – IT REQUIRES THREE POSSIBLE

ITEMS PROVING A PROPER ASSIGNMENT  OF THE DEBT (PROVES THAT

THIS CREDITOR HAS OWNERSHIP OF DEBT)

A.  PROOF THAT THE PLAINTIFF ACTUALLY OWNS THE DEBT – TYPICALLY THIS IS DONE BY AN AFFIDAVIT BY THE ORIGINAL CREDITOR, OR COPY OF DOCUMENTS SHOWING ASSIGNMENT

B.  DOCUMENTATION SHOWS ORIGINAL ACCOUNT NUMBER AND NAME   (THIS ALLOWS A DEFENDANT TO VERIFY THE ORIGINAL ACCOUNT INFORMATION)

C.  IF DEBT IS ASSIGNED MORE THAN ONCE, PROOF OF EACH TRANSFER, FROM CREDIT GRANTOR TO CURRENT PLAINTIFF (IN SOME CASES, THE DEBT HAS BEEN TRANSFERRED MULTIPLE TIMES, AND THE FINAL OWNER CANNOT PROVE THAT EACH TRANSFER WAS LEGAL)

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

 

The following is from the Office of Legislative Research

Regarding the changes to the small loan statutes, the bill, among other things, expands the scope of activities that require licensure and simplifies the definition of a “small loan,” which under the bill is any monetary loan or extension of credit, or the purchase of, or an advance of money on, a borrower’s future income where the amount or value is $15,000 or less and the Annual Percentage Rate (APR) is greater than 12%. It also converts the existing interest rate structure to an APR capped at the maximum 36% allowed under the federal Military Lending Act. It requires small loan licensure to be done through the Nationwide Mortgage Licensing System and Registry (NMLS or “the system”) and changes the license application fee structure and the length of time a license remains valid. It establishes permitted and prohibited licensee practices and loan provisions.

 

The most relevant provisions are the following, in Connecticut General Statutes 36a-555

1.  It is a “small loan” under $15,000
2.  Based on a “borrowers future income”
3. The Annual percentage rate is capped at 36%

 

 

Further Connecticut General Statutes CGS 36a-566provides in part that

pursuant to section 36a-565, as amended by this act, no person shall, by any method, including, but not limited to, mail, telephone, Internet or other electronic means, unless exempt pursuant to section 36a-557, as amended by this act:

(1) Make a small loan to a Connecticut borrower;

 

Important things to note, this applies to

1.  internet loans
2. small loans to consumer borrowers and
3.  appears to make a small loan unenforceable if there is no license by the lender

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

 

 

The Service can be summarized as follows

1.  You are using your ATM card

2.  You don’t have enough money in your checking account to cover the transaction

3.  The Service allows you to continue to use the ATM card.

 

I looked at the Consumer Account Agreement with Wells Fargo.   As is typical with these Agreements, if you do not make a deposit by a cut-off date, you are charge a fee.

Watch out with this Service.  It is very easy to use your ATM several times, without even realizing that you have no funds in your account.   The overdraft charges can easily add up to $100 or $200, or more.

Since this is an optional service, it is best to “opt out” of the service.

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

 

 

 

 

For most people, leasing is a simple option, but a bad move.

 

One of the biggest problems with leasing a vehicle is that the lease may

limit the amount of driving which you perform, on a vehicle, without a

surcharge.  Generally, the lease will allow you to drive 10,000 to 15,000

miles per year, without the surcharge.  The typical lease term is 3 to 4

years.  If you exceed the leases permitted mileage, you will be subject to

the surcharge, which can add up to thousands of dollars at the end of a

lease term.  The surcharge per mile varies depending on the vehicle, but I

have seen typical amount of approximately 20 cents per mile.  Assuming,

you are 60,000 miles over the lease mileage, this leaves a balance due of

$12,000.

 

A lease only makes sense for someone who will clearly be driving the car

below the mileage limit set in the lease contract.  In addition, if you intend

to lease, you will want an option to buy the car, at the end of the lease

term, if you like the car.  This way, you can get rid of the vehicle, if it does

not suit your needs, or buy the car if it suit your longer term needs (lease

with an option to buy).

 

For most people, it is simply wiser to buy a vehicle, tha55555555n lease.  A vehicle

can last far beyond the lease term.  Typically, it takes 5 years, under

normal situations, to pay off a motor vehicle loan.  If you are continuously

leasing cars, it is like continuously buying a new car, every 2 to 4 years,

and never owning anything.  In addition, if you exceed the limited mileage

on a lease contract, you get a surcharge.

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com

There are many quick oil changes places.    The establishments make money by changing oil.   Watch out.

Traditionally, it was recommended that oil be changed in a vehicle every 3,000 miles.  The rules have changed.

I have gone for oil changes at a major oil change center.  I have been told that I can choose to change the oil every 3,000 miles for synthetic oil.  I told the attendant that I will wait the 5,000 miles for the oil change;  the oil change business has changed with the new oils.  Frequent changes means more money for these business, so they are often selling a more frequent service which you don’t need.

Remember that an oil change includes changing the filter.  One reason not to wait more than 3 months for an oil change is that the filter may not last longer than 3 months.

I have a car with an oil monitor, which is supposed to have a light come on when the oil needs to be changed.  I don’t trust the monitor.  Even if the oil is still “good,” the filter may be too old and need changing.  Furthermore, motor vehicles are driven under different conditions, city driving as compared to highway driving, or short trips as compared to long trips.  My concern is that different driving conditions can affect oil quality.  An engine is simply too expensive to repair, if the monitor doesn’t work effectively.

For a website discussing oil change intervals, go to

http://www.calrecycle.ca.gov/UsedOil/OilChange/

I have a 2010 Chevrolet Malibu and the site indicates that the change interval is every 7,500 miles.  I use synthetic oil and still change ever 5,000 miles.   I am being a bit conservative, but the car is often driven short distances.

Attorney Robert M. Singer

Law Offices of Robert M. Singer, LLC

2572 Whitney Avenue

Hamden, CT  06518

203-248-8278

rsingerct@yahoo.com