Charitable Remainder Unitrusts White Paper, Michael Bekas, 2009-01-01

Michael Bekas, partner in the Tax Group, has authored a white paper entitled "Charitable Remainder Unitrusts: A Must-Consider Wealth Maximization Vehicle for Owners of Hard Assets." In light of a favorable estate planning environment due to current low rates and values, the paper explores how when structured properly, Charitable Remainder Unitrusts (CRUTs) can create wealth optimization for clients, their heirs and charities.

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Navigating the Recession, Michael Bekas, Steven Eliach, Steven J. Ciavarella, 2009-05-18

The current economic downdraft is a first in many respects. Just a glance at headlines from the fourth quarter of last year reveals a perfect storm of economic trauma whose magnitude is like nothing in recent memory.

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New Requirement For Registered Investment Advisers - July 10th Deadline, Steven L. Berse, 2010-06-25

The US Securities and Exchange Commission (SEC) has amended its custody rule — Rule 206(4)-2 under the Investment Advisers Act — to help safeguard investor assets. Now it’s time for certain SEC-registered investment advisers (RIAs) to start taking steps to facilitate compliance with two major new SEC requirements.

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Navigating the Recession, Michael Bekas, Steven Eliach, Steven J. Ciavarella, 2009-05-18

The current economic downdraft is a first in many respects. Just a glance at headlines from the fourth quarter of last year reveals a perfect storm of economic trauma whose magnitude is like nothing in recent memory.

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When Owner's Commitment And Dedication Work Against Them, Lawrence Cohen, 2010-05-25

Your client’s business used to be a major success. Now it isn’t. But if you rely on your client to tell you that he or she is in trouble, you’ll be the last to know – and worse, you might be unable to intervene.

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2010 Federal Estate Tax Repeal and Haiti Relief Update, Steven Eliach, 2010-02-03

In the latest Tax Alert, MP&S outlines rules of the 2010 Federal Estate and Generation-Skipping Transfer (GST) taxes repeal and what it means for estate planning. In addition, the firm discusses President Obama's new measure that provides accelerated tax benefit for taxpayers making charitable cash contributions to the Haiti earthquake relief efforts.

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American Recovery and Reinvestment Act of 2009, Steven Eliach, 2009-04-09

The American Recovery and Reinvestment Act of 2009 totals $787 billion. Nearly $300 billion of the bill includes tax relief for individuals and businesses which is outlined in the MP&S alert.

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Effects of New York's 2009-2010 State Budget, Steven Eliach, 2009-05-28

On April 7, 2009, New York Governor David Paterson signed into law New York State’s Fiscal 2009-10 Budget. The enacted budget agreement closes a two-year $17.7 billion 2009-10 budget gap and reduces the State’s multi-year deficit by an estimated 80 percent from approximately $60 billion to approximately $11 billion.

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For Technology Start-ups, A Road Map Is Essential And It Should Cover Every Stage Of the Journey, Jeanne P. Goulet, Steven Eliach, 2011-01-11

A technology start-up is a complex entity, even if its initial scale is small.

Careful planning is needed to arrive at a roadmap – not just for product development, marketing and sales, but also for a business model that ultimately will result in a great product market fit. The ideal roadmap is one that addresses the financial needs of both the entrepreneur and the business.

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Navigating the Recession, Michael Bekas, Steven Eliach, Steven J. Ciavarella, 2009-05-18

The current economic downdraft is a first in many respects. Just a glance at headlines from the fourth quarter of last year reveals a perfect storm of economic trauma whose magnitude is like nothing in recent memory.

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Tax Alert: Congress Extends Payroll Tax Relief, Steven Eliach, 2012-01-10

After much debate and political maneuvering, Congress has passed the Temporary Payroll Tax Cut Continuation Act of 2011. The act provides an extension of payroll tax relief until February 29, 2012. This article provides a brief overview of the legislation.

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The Road Map of a Start-Up and the Entrepreneur, Jeanne P. Goulet, Steven Eliach, 2011-01-11

A start-up venture is not just about product development, marketing and sales. It is a constant search for a business model that ultimately will result in a great product market fit. During the course of this endeavor, the financial needs of both the entrepreneur and the business can be complex. The financial needs of the entrepreneur and the business model run on two parallel paths and can change substantially over the life cycle of the venture.

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Tax Tips for Start-Ups: US Sales and Employment Withholding Obligations, Alyssa Forslund, 2011-09-01

Tax ranks high among the many structural issues a start-up needs to consider. Even tax responsibilities that seem straightforward – such as collecting sales tax and setting up withholding for employees – can be challenging and need to be approached carefully.

See Alyssa's article originally published in The Metropolitan Corporate Counsel September 2011.

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A Look at Jurisdiction, Jeanne P. Goulet, 2010-08-27

You’ve weighed the entity options for your Start-Up. You now understand the tax differences between corporations and transparent entities and the impact they could ultimately have on your bottom line. You think you have a strong sense of where you want to set-up your legal entity. Or do you?

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An Introduction to the Global Start-Up, Jeanne P. Goulet, 2010-08-06

Start-Ups have been around for a long time. Traditionally, they have been local enterprises run by small business entrepreneurs. Today, however, thanks to the Internet’s global reach, entrepreneurs have the ability to tap networks and establish Start-Up operations all across the world.

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Don't Pay Tax Twice on Each Dollar of Earnings!, Jeanne P. Goulet, 2010-12-15

Many experienced entrepreneurs, investors and business owners who have successfully operated in the past in their local environment are unaware of the tax pitfalls involved in cross-border transactions. It is easy to fall prey to serious missteps and to pay tax to more than one government for the same dollar of earnings.

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For Technology Start-ups, A Road Map Is Essential And It Should Cover Every Stage Of the Journey, Jeanne P. Goulet, Steven Eliach, 2011-01-11

A technology start-up is a complex entity, even if its initial scale is small.

Careful planning is needed to arrive at a roadmap – not just for product development, marketing and sales, but also for a business model that ultimately will result in a great product market fit. The ideal roadmap is one that addresses the financial needs of both the entrepreneur and the business.

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International Tax Planning - An Essential Step For Global Start-Ups, Jeanne P. Goulet, 2011-02-01

The same turbulence that has challenged the global economy has also created pockets of opportunity around the world. Simultaneously, entrepreneurship is at a high, as recent college graduates create their own opportunities, as layoffs at senior levels transform executives into entrepreneurs.

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The Road Map of a Start-Up and the Entrepreneur, Jeanne P. Goulet, Steven Eliach, 2011-01-11

A start-up venture is not just about product development, marketing and sales. It is a constant search for a business model that ultimately will result in a great product market fit. During the course of this endeavor, the financial needs of both the entrepreneur and the business can be complex. The financial needs of the entrepreneur and the business model run on two parallel paths and can change substantially over the life cycle of the venture.

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Where in The World is My Business? Taxable Presence and the Global Start-up, Jeanne P. Goulet, 2011-07-26

You are probably comfortable – even energized – by the idea that your business can easily reach beyond geographic boundaries. Thanks to the Internet, even as a start-up, you can do business around the world, selling goods and services, quickly setting up offices to help you penetrate new markets, and moving employee teams into critical locations to put them closer to the marketplace.

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Controlling Real-World Risks of Mark-to-Market Valuation, Steven L. Henning, 2009-06-01

In an article recently published in Accounting Today, Steve Henning, the partner-in-charge of the Marks Paneth & Shron Litigation and Corporate financial Advisory Services Group urges companies and financial executives to take a hard, skeptical look at their balance sheets for assets that may be portraying false, overly optimistic valuations

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Empowering Intellectual Property, Steven L. Henning, Glenn D. Sacks, 2011-02-01

Intellectual property (“IP”) is an untapped frontier in value creation. The problem is the basic tendency regarding IP, including patents, as the single, proprietary, closely guarded holding of the patent developer. That tendency is fundamental to the patent system – indeed, to all property rights, because at the root, we are talking about patent ownership.

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Executive View, Why the US Must Adopt International Financial Reporting Standards, Steven L. Henning, 2010-03-16

Can you envision a world in which the U.S. is no longer the world’s premier marketplace for capital? We can. In fact, unless U.S. companies and exchanges act, we believe that the world may be well on its way to a new financial order, one in which the U.S. no longer leads.

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Financier Worldwide, IFRS Roundtable, Steven L. Henning, 2010-03-02

Recent events in worldwide markets have shed light on accounting principles and the differences that exist in the way assets are valued and reported. In recent years, the globalisation of financial markets has intensified calls for a unified set of accounting principles. Not only will changes impact financial reporting, but there may also be implications for tax policies, M&A, financial planning and compensation structures.

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Global Presence, Local Excellence, Steven L. Henning, Ronald Nash, 2007-06-01

JHI is a leading international business association for independent business advisers, financial consulting, and accountancy firms. JHI exists to support the development of its member firms by facilitating communications, exchange, networking, and resource sharing worldwide.

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The Future of Accounting Principles, Steven L. Henning, 2009-02-10

The events of the last few months have shed light on accounting principles and the role they might have played in prolonging the current market turmoil. Fair value accounting, in particular, has been accused, by some professionals and officials, of being at least partly responsible for the current financial troubles.

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Wealth Management for High Net Worth Individuals, Daniel Kesner, 2009-11-16

As the financial crisis took hold, high net worth individuals (HNWIs) watched their wealth decline and quickly lost faith in their wealth managers. Many withdrew assets or left their wealth management firms altogether. But as the economy improves, wealth management firms are seeking ways to alter their business models and provide a better service to their increasingly risk-averse clients, who are demanding more transparency on how their fortunes are managed.

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A Brave New World for a New Form 990, Michael L. McNee, Robert Lyons, 2008-02-01

On February 29, 2008, Michael McNee and Robert Lyons of the Nonprofit and Government Services Group presented a webinar entitled "A Brave New World for a New Form 990." This event discussed significant IRS changes to Form 990 and what they mean for the industry.

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Marks Paneth & Shron LLP Nonprofit Alert, June 2008, Michael L. McNee, Robert Lyons, 2008-06-01

On May 5, 2004 IRS issued Letter Ruling 200435020 in response to a charitable organization’s treatment of certain real estate transactions, credit cards, meals, gasoline, miscellaneous charges and cell phones.

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Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Alternative Investment, Michael L. McNee, Robert Lyons, 2008-08-01

The most recent MP&S Nonprofit and Government Group Alert discusses the tax implications that apply to common alternative investments made by exempt organizations, as well as the reporting requirements and questions organizations should consider before making investment decisions.

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Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Campaign Intervention, Michael L. McNee, Robert Lyons, 2008-09-01

During election years, the Internal Revenue Service takes a keen interest in whether charitable (501(c)(3)) organizations are intervening in political activities. This is particularly relevant in Presidential campaign years. One common characteristic to most charitable organizations is a passion about their respective causes.

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Nonprofit Alert: United States Investors in Offshore Hedge Funds Should Consider Filing the Report of Foreign Bank and Financial Accounts (FBAR), Robert Lyons, 2009-06-23

TD F 90-22.1 is required to be filed for all accounts where a U.S. person or entity has a financial interest or signature authority in foreign financial accounts if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. These relationships are reported on the calendar year by filing Form TD F 90-22.1 with the Department of the Treasury on or before June 30, of the succeeding year.

On June 12, three IRS personnel participated in a teleconference with a law firm that was designed to address open questions regarding the TDF 90-22.1 filing for calendar year 2008 that must be filed by June 30. It was their position (not official IRS position at this point) that an offshore hedge fund is a “foreign financial account” for this purposes and that, therefore, every U.S. investor in an offshore hedge fund should file a TDF 90-22.1 Form, whether or not the fund has any offshore bank or securities accounts. While the IRS’s position on hedge funds is not official, it does carry substantial weight and should be considered.

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Communicate Right From the Start, Eric A. Marks, 2006-01-01

Understanding exactly what your employer is looking for from you, will determine how satisfied and successful you will be with your job. Good communication can quickly help set you on the course to becoming a superior performer.

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Nonprofit Alert: New Update from Office of the Medicaid Inspector General (OMIG) Tightens Compliance Requirements for All Organizations Reliant on Medicaid Reimbursements, Michael L. McNee, Eric A. Marks, 2009-11-23

As of October 1, 2009, The Office of the Medicaid Inspector General (OMIG) now requires all organizations that rely on Medicaid reimbursements to ensure that all persons, providers and affiliates providing care, services or supplies under Medicaid be in good standing and eligible to receive payment.

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Benchmarking: A Challenging Task for Expert Witnesses, Donald M. May, 2011-12-02

In civil litigation, few questions are as important as where to set damages. Beyond the basic issue of who prevails, litigants, juries and courts struggle with the issue of how loss should be compensated. What is an accurate estimation of the impact on the plaintiff of the event under dispute?

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Factors to Consider When Hiring an Expert, Donald M. May, 2011-06-24

Expert guidance and testimony play a central role in the late stages of legal proceedings, when experts provide reports and serve as witnesses concerning the substance of the case and the appropriate damages. In the hope of minimizing fees, many insurers often wait until the late stages to engage them.

See Don May's article originally published in Claims Journal May 26, 2011.

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Recipe for a hedge fund litigation nightmare, Donald M. May, 2010-06-25

In many cases, domestic hedge funds are structured as limited partnerships with a general partner receiving the performance allocation and a separate limited liability company serving as the investment manager and receiving an asset-based investment management fee.

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Securities Litigation Report, Discounted Cash Flow Methodology Can Give Litigators the Upper Hand, Donald M. May, 2010-06-15

Most formulas used to arrive at valuations are based on Wall Street criteria. This is obviously the case in transactions, but not only in that instance. Valuation assumptions based on transactional formulas are commonly used by private equity investors to make strategic decisions about their portfolio companies, and by litigators and courts to argue for and arrive at determinations of damages.

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A Brave New World for a New Form 990, Michael L. McNee, Robert Lyons, 2008-02-01

On February 29, 2008, Michael McNee and Robert Lyons of the Nonprofit and Government Services Group presented a webinar entitled "A Brave New World for a New Form 990." This event discussed significant IRS changes to Form 990 and what they mean for the industry.

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Auditing Alternative Investments, Michael L. McNee, 2008-01-01

Auditing alternative investments presents unique challenges. As an auditor, it is critical to evaluate processes used by your clients to help support valuation and existence assertions in the financials.

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Endowment Accounting under FASB Topic 958-205 (Formerly FSP 117-1) and NYPMIFA, Michael L. McNee, 2011-07-28

A PREAMBLE NYPMIFA calls for: Prudence, donor notification and investment management. As the Beatles said, “Dear Prudence, won’t you come out and play?” Do not mistake NYPMIFA and FASB 958-205 for being the same. Legal issues and accounting issues do not always agree. In legal terms, as it relates to endowments, you can “borrow”, but you can’t “steal”. In accounting terms, you can’t “hide”. EXAMPLES OF ENDOWMENT RESTRICTIONS True endowment with no use restriction-My contribution should be kept intact and the income is to be used for the organization. True endowment with use restriction-same as above except the income from the contribution is to be used for supplies for the organization. Endowment for a term of years-keep the gift intact for 20 years, during which time the income is for supplies and after 20 years, the gift has no restrictions.

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Marks Paneth & Shron LLP Nonprofit Alert, June 2008, Michael L. McNee, Robert Lyons, 2008-06-01

On May 5, 2004 IRS issued Letter Ruling 200435020 in response to a charitable organization’s treatment of certain real estate transactions, credit cards, meals, gasoline, miscellaneous charges and cell phones.

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Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Alternative Investment, Michael L. McNee, Robert Lyons, 2008-08-01

The most recent MP&S Nonprofit and Government Group Alert discusses the tax implications that apply to common alternative investments made by exempt organizations, as well as the reporting requirements and questions organizations should consider before making investment decisions.

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Marks Paneth & Shron LLP Nonprofit Group Authors Alert on Campaign Intervention, Michael L. McNee, Robert Lyons, 2008-09-01

During election years, the Internal Revenue Service takes a keen interest in whether charitable (501(c)(3)) organizations are intervening in political activities. This is particularly relevant in Presidential campaign years. One common characteristic to most charitable organizations is a passion about their respective causes.

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Nonprofit Alert: New Update from Office of the Medicaid Inspector General (OMIG) Tightens Compliance Requirements for All Organizations Reliant on Medicaid Reimbursements, Michael L. McNee, Eric A. Marks, 2009-11-23

As of October 1, 2009, The Office of the Medicaid Inspector General (OMIG) now requires all organizations that rely on Medicaid reimbursements to ensure that all persons, providers and affiliates providing care, services or supplies under Medicaid be in good standing and eligible to receive payment.

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Nonprofit Investment Committees: Buyer Beware, Michael L. McNee, 2008-03-05

Increasingly, nonprofits are moving into alternative investments: private investment funds, hedge funds, real estate funds, venture capital funds, oil, and gas funds. The goal is generally higher returns and diversification.

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Real Estate Financial Reporting: Understand the Differences Between US GAAP Versus Income Tax Basis Accounting; Then Choose the Option That's Best for Your Company, Susan H. Nadler, 2010-11-30

US generally accepted accounting principles and income tax basis accounting often yield very different financial reporting results; real estate companies need to understand what the choices mean for their business and apply what best serves their needs.

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Revenue Maximization Checklist, Susan H. Nadler, 2009-07-23

The Real Estate Group at Marks Paneth & Shron LLP (MP&S) has developed a Revenue Maximization Checklist to help property owners ask the right questions and gain maximum benefit from existing lease provisions. A well designed audit of procedures surrounding property accounting such as billing, collections, lease abstracts and lease audits conducted by accountants deeply versed in commercial real estate can turn up unanticipated revenue opportunities and help ensure that property portfolios are yielding maximum returns.

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Revenue Recovery: Lease Audits Can Reveal Hidden Income Potential, Susan H. Nadler, 2010-01-20

With the commercial real estate industry still in an economic tailspin, now is the time for property owners to look at their existing portfolios and monetize any untapped opportunities.

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Global Presence, Local Excellence, Steven L. Henning, Ronald Nash, 2007-06-01

JHI is a leading international business association for independent business advisers, financial consulting, and accountancy firms. JHI exists to support the development of its member firms by facilitating communications, exchange, networking, and resource sharing worldwide.

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INCREASING BUSINESS CASH FLOW WITH AN ESOP, Ronald Nash, 2011-09-08

In the current economic environment, business owners are searching for strategies to increase their available cash flow. This becomes critical when the business owner, struggling to find capital to expand his business, must then find the resources to pay taxes on his business income. This perpetual burden on cash flow can be reduced, almost to zero, with proper planning.

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Location: A Taxing Choice For New Businesses, Solomon Packer, 2009-06-25

Given the raft of issues involved in launching a new business in the U.S., it should come as no surprise that the question of where the new legal entity should be formed is often given short shrift, when it is considered at all.

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MP&S Outlines Departure Tax in Recent Article, Solomon Packer, 2008-09-04

Solomon Packer, senior MP&S international tax consultant, publishes Corporate Business Taxation Monthly article on the recently enacted U.S. departure tax, which taxes built-in gains in excess of $600,000 from assets owned by “covered” expatriating U.S. citizens and long-term residents who relinquish their green cards.

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Tax Alert: IRS Releases Guidance on Foreign Account Tax Compliance Act (FATCA), December 2011, James M. Robbins, 2011-12-20

Temporary regulations have been issued under Section 6038(D) relating to the requirement that individuals attach a statement to their tax return with respect to foreign financial assets. The IRS will release Form 8938 shortly which will be used to identify and report interests in foreign financial assets. It is important for taxpayers to determine whether they are subject to this new requirement because the tax law imposes significant penalties for non-compliance. Form 8938 does not replace or otherwise affect a taxpayer's obligation to file an FBAR.

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Empowering Intellectual Property, Steven L. Henning, Glenn D. Sacks, 2011-02-01

Intellectual property (“IP”) is an untapped frontier in value creation. The problem is the basic tendency regarding IP, including patents, as the single, proprietary, closely guarded holding of the patent developer. That tendency is fundamental to the patent system – indeed, to all property rights, because at the root, we are talking about patent ownership.

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Forensic Accountants: An Essential Part of the Bankruptcy Team, Sareena M. Sawhney, 2010-09-21

Bankruptcy is rampant. According to the United States Bankruptcy Court, there were 1.4 million bankruptcy filings in fiscal year 2009, a 32 percent increase over 2008. Bankruptcy filings for 2010 are higher still - data from AACER (Automated Access to Court Electronic Records) shows 379,000 bankruptcy filings in the first quarter of 2010, a 17 percent increase over the same quarter of the previous year. July 2010 saw a 24.2 percent increase in bankruptcy filings over the previous month. The upsurge in bankruptcy filings is unsurprising, given the severe economic downturn and the slow pace of recovery. Predictably, along with the high rate of bankruptcy filings comes another trend – a sharp and prolonged spike in bankruptcy fraud. Economic desperation – of the sort that drives individuals and businesses into bankruptcy – also drives them into complex schemes designed to conceal assets and shelter them from creditors.

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Ponzi Schemes Continue to Thrive in Economic Downturn - Investors Need to Watch for 10 Signs that an Investment Opportunity may be Too Good to be True, Sareena M. Sawhney, 2011-12-29

The Ponzi scheme, a classic con that typically surfaces in economic downturns, made a dramatic reappearance in landmark cases involving now-convicted financier Bernard Madoff, who defrauded investors of an estimated $65 billion, and Robert Allen Stanford, who stands accused of falsifying financial statements to investors who bought $8 billion worth of certificates of deposit said to be “inflated”; he is currently in prison awaiting trial.

A similar article by Sareena M. Sawhney appeared in the November 2011 issue of the Securities Litigation Report. Please click the Download link to view it.

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Small Businesses Warned to Beware of Employee Fraud, Sareena M. Sawhney, 2011-12-13

Small businesses and nonprofit organizations often overlook the warning signs of employee fraud, especially by senior managers, according to accounting firm Marks Paneth & Shron.

This article, written by Michael Cohn appeared in Accounting Today on November 18, 2011.

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The Case for the Forensic Accountant, Sareena M. Sawhney, 2010-03-11

Suddenly, Ponzi schemes seem to be everywhere. Credit for the renewed attention to this classic financial fraud is of course due in large measure to Bernard Madoff, the now-convicted financier who defrauded investors of an estimated $65 billion. Madoff’s widely publicized crime was a classic Ponzi – he took on investor funds, diverted them to finance his own lifestyle, falsified his clients’ financial statements to show investment positions when there weren’t any, then used new investments to pay “dividends” and “interest” to past investors. It was the largest and most dramatic example of a Ponzi scheme to date.

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An Alternative Approach to a Critical Issue in Employment: Identifying and Correcting Potential Disparities in Employee Selections Before They Happen, Josefina V. Tranfa-Abboud, 2011-01-07

Employers define human resources policies and practices and make employment decisions that, while based on legitimate business decisions, may have a disparate effect on different groups of employees. A hypothetical example of selections for a proposed reduction in force (RIF) illustrates how an evaluation can reveal a disparate impact of a protected class group. Unveiling potential disparities before the implementation of the proposed RIF allows management to revise the goals, objectives, and the planning of the selections for termination, correcting a potential disparate effect of protected class groups, and minimizing the likelihood of legal disputes.

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Case Study: Assessing Damages in Lost Wages Claim, Josefina V. Tranfa-Abboud, 2011-04-06

When an employee is terminated, injured or for some other reason unable to work, what wages has he or she lost? What damages should be awarded? The question is central to thousands of personal injury claims each year. The answer is by no means straight forward.

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Damages in Labor and Employment Disputes: Designing the Economic Damages Model and the Role of the Expert, Josefina V. Tranfa-Abboud, 2011-11-01

Labor and employment disputes may result from allegations of employment discrimination, and from work-related injury, wrongful death incidents, or medical malpractice. In many cases, such disputes lead to claims of lost earnings and other compensation, and may also include a claim of damages to family members. Differences in the nature of the claim, the basis of ‘but-for’ and post-incident compensation, potential inclusion of damages to family members, along with jurisdiction-specific rules are just some of the factors that render the estimation of damages in these matters complex. The general economic environment makes the task more complicated still. A fitting economic model, one that accounts for relevant factors and is structured as allowed by the specific jurisdiction, is at the heart of the proper estimation of damages. The economic expert, serving as part of the litigation team, can and should play a central role in developing it.

See Josefina's article originally published in The Metropolitan Corporate Counsel November 2011.

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Journal of Forensic Economics, The Use of Attrition Rates for Economic Loss Calculations in Employment Discrimination Cases: A Hypothetical Case Study, Josefina V. Tranfa-Abboud, 2010-05-17

In cases involving employment discrimination, claims such as failure topromote or wrongful termination, economists are asked to calculate the differ¬ence between what the plaintiff(s) would have earned had the alleged dis¬criminatory act not occurred offset by what the plaintiff is now expected toearn given that the alleged discriminatory action did occur. The economic losses are based upon the plaintiff’s past and future income specific to the em¬ployer who committed the alleged discriminatory act. By contrast, in cases in¬volving personal injury and a permanent reduction in the plaintiff’s earningscapacity, the economic losses are usually based upon the plaintiff’s entire worklife expectancy, regardless of where the plaintiff would be working.

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Model for Estimating Lost Wages May Be Incomplete, Josefina V. Tranfa-Abboud, 2011-10-26

Claims for lost wages and other forms of compensation are at the heart of a wrongful dismissal, workplace injury, and workplace discrimination lawsuits. But the economic model designed for the estimation of damages may be incomplete if it does not adjust for unemployment trends and the probability of continued "but-for" employment, according to Josefina V. Tranfa-Abboud, Ph.D., a director in the Litigation and Corporate Advisory Services Group at New York accounting firm Marks Paneth and Shron.

See Josefina's article originally published in Human Resources Management Ideas & Trends October 5, 2011.

© Wolters Kluwer Law and Business.
All Rights Reserved.
Reprinted with permission from Human Resources Management Ideas & Trends.
October 5, 2011.

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