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BERGEN BAR TAX BULLETIN, VOL. 41, NO. 10

Author By J.G.Posted on

Written By: Theodore M. David, Chairman, Emeritus

Current Items:                                                             

  • Attention Non-filers, Under filers and Tax Cheats
  • No Tips Lawyers

1) I’ll admit some of my tax bulletins are more about sarcasm than tax information. Maybe that explains why many people read them, but this one, dear friends and readers, is one you may want to share with your clients. Our system of tax administration relies on voluntary compliance. But you know as well as I do that some people are not complying. They come in different varieties, like the blatant nonfilers, for example. They boast they have never been part of the system and have been on the run their entire adult lives. Be careful to watch how assets are purchased in the name of children and grandchildren, keeping their wealth in a safe deposit box or under their Tempur-Pedic mattress. Under filers, on the other hand, figure that if the IRS isn’t satisfied with their attempt at filing a trimmed version of their real income, they should come and get them. Whether they are shaving their income or inflating their tax deductions, the result is the same. Lastly, there are simply tax cheats. These individuals bend the tax law to its breaking point by combining elements of non-filing and under-filing simultaneously. It’s such an easy game to play, considering the complicated tax laws and “positions” to be taken. Unfortunately, as is often the case, lawyers and accountants have been caught up as advisors in some of these nasty situations. But redemption for all of these people is at hand!

Now, to clarify, the IRS has a policy of voluntary disclosure, which may help these clients get some rest if they qualify. This bulletin is not about the voluntary disclosure policy. I know that was discussed in another bulletin, and you can find it in detail on the IRS website. This is much better than that. And it doesn’t take any research. While the demolition crews have been removing about a third of the White House to make way for a much-needed spectacular gold gilt ballroom, the wrecking ball has virtually done the same thing to the IRS. I hope you’re sitting for this one. In total, about 30,000 IRS employees have been gone since January 2025. Some of those were just fired, others were laid off, and still others took “buyout offers”. That amounts to between 25% and 30% of the Internal Revenue Service. The emaciated Internal Revenue Service now has about 65,000 to 75,000 employees. So now is the time for all good men to come to the aid of their party or perhaps to throw a party. With such diminished numbers which must have the consequence of reduced morale now is the time for all of these folks to come clean. If that was not enough add the fact that for the last month the government has been shut down. IRS does not refer to it as a shutdown but as a “lapse in appropriations.” IRS reminds: “the underlying tax law remains in effect and tax professionals should continue to help clients meet their tax obligations as normal.” So it looks like IRS employees are fewer in number and many are not in fact being paid. For nonfilers, underfilers, and tax cheats of all varieties this could be the opportunity that they have been waiting for. Join the system and get a decent night’s sleep.

2) There is some sorry news. The IRS has issued proposed regulations for guidance listing occupations where workers customarily receive regular tips under the new one big beautiful tax bill. With limitations these tips may be not taxable. And though I have looked carefully lawyers are not listed. Unless of course we can squeeze under the title called “entertainment and events” or “recreation and instruction”. So contrary to prior bulletins you should remove your tip jar from your conference room.

Questions or Comments should be sent to: Tdavidlawyer@gmail.com

2025 HONORABLE PETER CIOLINO PROFESSIONAL LAWYER OF THE YEAR AWARD – JESSICA A. GOMPERTS

Author By J.G.Posted on

The Bergen County Bar Association’s Board of Trustees and Professionalism in the Law Committee are pleased to bestow the 2025 Honorable Peter Ciolino Professional Lawyer of the Year Award to Jessica A. Gomperts, Esq.

Jessica A. Gomperts served as an Assistant Bergen County Prosecutor from September 2000 until retiring on January 1, 2024. During her tenure, she worked in the Appellate, Juvenile, Grand Jury, and Trial Sections of the Office. In January 2011, she was assigned to the Domestic Violence Squad and, in 2013, was appointed its Chief. When Ms. Gomperts retired, she had held that position for 11 years, making her the longest-serving Domestic Violence Chief in the Office’s history.

Ms. Gomperts obtained her law degree from Seton Hall University School of Law and her undergraduate degree from Clark University in Worcester, Massachusetts, with a double major in psychology and philosophy and a minor in ethics and public policy. Before employment at the Office of the Bergen County Prosecutor, she was a law clerk to Justice Virginia Long, first in the Appellate Division in 1998-1999, and then in the Supreme Court in 1999-2000. During her 23+ years at the Office of the Bergen County Prosecutor, Ms. Gomperts handled literally thousands of cases, including attempted murder, aggravated sexual assault, interference with custody, kidnapping, aggravated assault, child sexual abuse and exploitation, etc.

Ms. Gomperts is a frequent lecturer on the topics of domestic violence and dating violence; sexual assault and abuse; elder abuse; intimate partner violence in the LGBTQ community; arrest, search, and seizure; courtroom testimony; and constitutional law. She is both a New Jersey Office of Continuing Legal Education and Police Training Commission-certified instructor and has taught extensively to police officers, attorneys, judges, and students from middle school through college. While at the BCPO, she served as the Domestic Violence Legal Advisor to all 72 municipal police departments in Bergen County. Ms. Gomperts was a lead instructor at the Bergen County Law and Public Safety Institute (Police Academy) for 15 years, teaching both the week-long Arrest, Search, and Seizure class and the Domestic Violence class. Ms. Gomperts has served as a trustee on the Bergen County Bar Association Board of Trustees since 2020.

Ms. Gomperts co-chaired the Bergen County Domestic Violence Working Group and served on the Statewide County Domestic Violence Liaison Working Group. Ms. Gomperts has taught innumerable Continuing Legal Education classes on domestic violence at the Attorney General’s Office Annual Domestic Violence Symposium, the County Prosecutor’s Association Annual College, the New Jersey State Bar Association Annual Meeting, the New Jersey Association for Justice Boardwalk Seminar, the New Jersey Association for Justice Meadowlands Seminar, the Bergen County Bar Association, and the Bergen County Prosecutor’s Office.

In 2023, Ms. Gomperts received the Gladiator Award from the New Jersey Attorney General’s Office, which recognizes an assistant prosecutor or detective who has “demonstrated extraordinary commitment and zeal to ensure that the criminal justice system treats victims with compassion and dignity during the prosecution process.” In 2022, she received the Law Enforcement Hero award from the Center for Hope and Safety, which recognizes a “committed, impassioned and steadfast advocate” for victims and survivors of domestic violence.

Ms. Gomperts will receive the award on Thursday, November 6, 2025, at the Annual Professionalism Dinner at Seasons, in the Township of Washington.

 

BERGEN BAR TAX BULLETIN, Vol. 41, No. 9

Author By J.G.Posted on

Written by: Theodore M. David, Chair Emeritus, Tax Law Committee

Current Item: A Rose is a Rose

“A rose is a rose is a rose.” You’ve probably heard this sentence before, but you might not know where it comes from. Many people assume it’s from Shakespeare, but it isn’t. Gertrude Stein wrote the line in her 1913 poem “Sacred Emily” and later included it in her 1922 book, “Geography and Plays.” Stein was an American novelist, poet, and playwright, born in Pennsylvania and raised in California, who lived in Paris from 1903 until her death in 1946. She hosted a Paris salon that included prominent artists and writers such as Picasso, Hemingway, Fitzgerald, Sinclair Lewis, Ezra Pound, and Henri Matisse. Stein was part of the modernist literary movement, and her partner was Alice Toklas. In the poem, the first “Rose” is the name of a person, but the phrase has become widely interpreted to mean “things are what they are.”

You might associate roses with Shakespeare because of Romeo and Juliet, where he wrote, “That which we call a rose by any other name would smell as sweet.” Shakespeare emphasized that the essence of a thing is more important than its name, while Stein suggested that names themselves are inseparable from identity.

What does this have to do with tax law? Consider the importance of names and language in framing policy. Words can shape perception, just as calling a bouquet of flowers “beautiful nightcrawlers” versus simply saying “here are your flowers” changes how it is received.

Earlier this year, I mentioned that unless something significant occurred, there would be no bulletin in July or August. Over the summer, Congress and the President proposed a major tax bill initially called the “Big Beautiful Bill,” a name that drew attention and sparked discussion. The title was later changed, reflecting public feedback, though the substance of the legislation remained the same.

Here’s a summary of key provisions of the bill:

• Individuals: Slightly higher standard deductions depending on filing status; senior deduction increase of $6,000 with income phaseouts; SALT deduction increased from $10,000 to $40,000; overtime pay and auto loan interest deductions; childcare credit doubled to $2,000; seven tax brackets from 10–37% made permanent with inflation adjustments starting in 2026.
• Businesses: 100% bonus depreciation for qualifying assets; immediate deduction for research and experimental expenses; extension of the 20% deduction for pass-through business income beyond 2025.

While the legislation provides benefits for both households and businesses, it also has the effect of delivering larger, long-term tax reductions to higher-income households. Regardless of the name, the economic impact of the bill remains.
In the end, names matter for framing and perception, but they do not change the substance—whether you’re talking about a rose, a poem, or a tax bill.

Questions or comments should be sent to Tdavidlawyer@gmail.com.

 

SEPTEMBER BENCH-BAR REPORT

Author By J.G.Posted on

Dear Members,

The Bergen County Bar Association leadership meets with the Bergen County Assignment Judge
on a bimonthly basis to discuss issues of mutual interest to the judiciary and our membership.
For matters of general importance that you believe should be raised at our next meeting, please
email the BCBA.

This is a summary of the September 9, 2025, meeting with the Hon. Carol Novey Catuogno,
A.J.S.C.

Judge Catuogno opened the meeting by extending her appreciation for the cooperation
between the Judicial Bench and the Bar.

Courthouse Updates:

  • Court User Resource Center – The former Law Library has been converted into
    a Court User Resource Center. The Ombudsman and staff will be located there,
    and the public will have access to the computers for research.
  • Exterior Renovation – Scaffolding will remain in place for some time, while the
    State Historical Renovation Committee oversees the restoration work. This has
    also pushed back the start of Phase 2 of the courthouse renovation.
  • Attorney Lounge – The County, in partnership with the Bergen County Bar Association,
    is working on refreshing the current Attorney Lounge. The County has graciously
    agreed to certain minor updates. These improvements are intended as an interim
    step until Phase 2 construction is finished and the new Attorney Lounge is
    opened.

Division Information:
1. Family Division

  • FD Blitzes are scheduled for October 17, 2025, and November 17, 2025.
  • FM Blue-Ribbon Panels of retired judges and experienced attorneys have been assisting
    in resolving matrimonial matters.
  • Family Division COOP (remote) days are set for September 19, 2025, and November
    10, 2025.

2. Criminal Division

  • The Attorney-Conducted Voir Dire (ACVD) pilot program is continuing in the Criminal
    Division; one such matter is currently on trial.
  • The Criminal Visitation Team reported a high mark for collaboration with both internal
    and external stakeholders.
  • Criminal Division COOP (remote) day is set for October 10, 2025.

3. Civil Division

  • Civil trials are proceeding; attorneys can anticipate being “sent out” on their listed trial
    date.
  • Carrier Settlement Days are as follows:
     Plymouth Rock – 9/23 and 11/18/25
     Travelers – 9/23/25
     Farmers – 10/15/25
     Geico – 9/30/25
  • Recent addition of the Round-Up cases to the MCL docket.
  • Mount Laurel Cases, in the challenge phase, are moving forward.
  • Settlement conference weeks are: 9/15, 9/29, 10/13, 10/27, 11/10, 12/8, and 12/22/25.
  • Fees for “de novo’s” have increased to $265.00, and fees for arbitrators have increased to
    $400.00 per day.
  •  Civil Division COOP (remote) day is scheduled for December 12, 2025.

4. General Equity Division

  • Judge DiBiasi, P.J.Ch. and Judge Ostuni continue to advance cases.
  • The Probate Litigation, Guardianship, and Elder Law Committee will host a CLE,
    Mastering Elder Law: Advanced Strategies for the Modern Practitioner, on October
    16–17, 2025.
  • General Equity COOP (remote) day is to be announced.

5. Miscellaneous:

  • Domestic Violence DP Contempt Calendar / Public Defender – The County has
    graciously agreed to provide funding to maintain this position through the end of 2025,
    ensuring continued representation for those whose liberty interests may be implicated.
  • The Judiciary and other stakeholders are deeply grateful to the County for their
    commitment to sustaining this vital role and hope that it will find budgetary support to
    continue into the new year and beyond.
  • Law Clerks – This year’s law clerks overlapped for a two-week period to allow for
    training and a smooth transition. The initiative proved to be both successful and highly
    beneficial for the incoming clerks.

UPDATE FROM THE BCBA’S REAL PROPERTY COMMITTEE – NJ MANSION TAX CHANGES JULY 2025

Author By J.G.Posted on

On June 30, 2025, Governor Murphy signed bill S4666 / A5804 into law, making the seller the responsible party for paying the “Mansion Tax” (N.J.S.A. 46:15-7.2 et seq.), in addition to the Realty Transfer Fee (N.J.S.A. 46:15-5 et seq.). The new law also substantially increases the rates (of said Mansion Tax) on transfers for more than $2,000,000.00. These changes are effective as of July 10, 2025, and are as follows:

1. The new tiered system of “Mansion Tax” is based upon the amount of consideration recited in the deed and will be charged as follows:
a. 1% if the consideration is in excess of $1,000,000 but not in excess of
$2,000,000
b. 2% if the consideration is in excess of $2,000,000 but not in excess of
$2,500,000
c. 2.5% if the consideration is in excess of $2,500,000 but not in excess
of $3,000,000
d. 3% if the consideration is in excess of $3,000,000 but not in excess of
$3,500,000
e. 3.5% if the consideration is in excess of $3,500,000.

2. Deeds with consideration in excess of $2,000,000 will need to be recorded by the county no later than July 9, 2025, for the prior 1% “Mansion Tax” fee to be honored.

3. For deeds recorded beginning on July 10, 2025, and before November 15, 2025, the grantor may apply for a refund with the New Jersey Division of Taxation for the difference in the additional fee that was required by the county to record the deed. The grantor will only be eligible for the refund if the contract of sale for the property was fully executed by July 9, 2025, and the refund request is submitted within one year following the date of the recording of the deed.

Presumably, the Division of Taxation will aim to either eliminate (or replace) the Affidavit of Consideration for Use by Buyer (form RTF-1EE) or potentially revise the Affidavit of Consideration for Use by Seller (form RTF-1) before the July 10 implementation date. I suggest that you closely monitor the Division of Taxation’s website for new forms: https://www.nj.gov/treasury/taxation/realtytransfees.shtml.

Based on the current situation, it is more important than ever to be certain that deeds conveying property within these revised dollar amounts are recorded immediately upon closing as any delay could result in the recording being rejected and additional fees owed.

As we obtain further information, we will keep you updated.

Linda H. Schwager, Chair, Real Property Committee

BERGEN BAR TAX BULLETIN, VOL. 41, NO. 6

Author By J.G.Posted on

Written by: Theodore M. David, Chairman Emeritus

Current Items: Special Summer Edition

1) Anniversary Travel
2) Beach Reading

1) For those of you who are celebrating your 30th Anniversary of whatever, if thinking of giving your special partner some gold or silver trinket or a fabulous dinner at some wonderful restaurant, realize there is a much better alternative. This is, in fact, the 30th anniversary of the IRS tax seminar series. Why not go the distance and make plans to take that partner of yours to Orlando in August, where temperatures can reach 110°. For a measly $319, you can be part of this IRS celebration and get yourself some CLE credits as well as the admiration and love of your dear one. Mention your Bar affiliation and get $10 off. BTW, that’s true.

2) I just got done reading the “Devil in the White City,” it’s the true story of the 1893 World’s Fair in Chicago. It’s got interesting characters and a behind-the-scenes murder plot as well. But I can’t recommend it. Not when the IRS issues its Data Book for fiscal year 2024. Forget curling up on that beach chair with Erik Larson as your reading companion, go instead to IRS.gov and order your Data Book. Imagine how you can impress your friends with all those IRS statistics, both real and imaginary.

If the weather improves and there are no groundbreaking tax developments, you may have to re-read this bulletin for both July and August.

Questions or Comments should be sent to: Tdavidlawyer@gmail.com.

STATEMENT FROM THE BERGEN COUNTY BAR ASSOCIATION’S BOARD OF TRUSTEES

Author By J.G.Posted on

The Bergen County Bar Association issues this statement to reaffirm a simple but vital principle: our system of justice depends on an independent judiciary and a legal profession that is free to represent clients without fear or favor.

We stand in support of the rule of law and the independence of our judiciary, cornerstones of our constitutional democracy. Judges, attorneys, and courts must be free to carry out their duties without intimidation, interference, or retaliation.

Public discourse from any aspect of the political spectrum that targets judges or penalizes attorneys for representing certain clients undermines confidence in our legal system and threatens the integrity of a profession dedicated to justice, fairness, and due process. Our system functions because the public trusts that courts apply the law fairly and that lawyers serve their clients without fear of consequence. That trust is not easily earned, and once lost, not easily restored.

Our association remains committed to advancing relations and understanding between both the courts and counsel, and the legal profession and the general public. Lawyers and judges are certainly not above criticism. But when criticism from any aspect of the political spectrum crosses into coercion, and disagreement by anyone encourages efforts to intimidate, it is the responsibility of the legal community to advocate zealously and ethically to ensure that our system remains impartial, independent, and accessible to all.

We, as members of the Bergen County Bar Association’s Board of Trustees who come from all political spectrums, stand firmly with the legal community and the public in upholding these essential principles.

BERGEN BAR TAX BULLETIN, VOL. 41, NO. 4

Author By J.G.Posted on

Written by: Theodore M. David, Chair, Tax Law Committee

  1. The Sleep Test
  2. Estate Tax Going?
1.

They say if you become a teacher by your students, you will be taught. I subscribe to that homily. I spent 32 years teaching at the University ending up a tenured full professor in law and taxation. One of the most satisfying parts of being a tax professor and tax practitioner was having the opportunity to mentor a new tax lawyer. I had such an opportunity in the early 1980s when I encountered in my class Scott Novak. Many years later I think he would agree I helped him get on the path of practicing tax law. So it is with much pride that I cite for this bar bulletin a chunk of his recent article which appeared in the Bloomberg publication called Tax Management Memorandum dated April 28, 2025. The Article is entitled: Businesses are facing financial headwinds – a Practical Guide. The article is a long one and extremely helpful but one part of it draws my attention. Scott asked the question that many lawyers, accountants and I am sure clients as well probably have had over the years: When do you hire a tax lawyer? Needless to say, there are many intricate and complicated issues which suggest the answer but a simple version Scott has set forth in his article: “it often occurs to me that the best service that I can provide to a client is to help the client sleep better at night. When speaking to accountants, I will sometimes get asked the question, how do we know when it’s time to refer a client to a tax attorney. There are several answers to that question, but first and foremost, send them to an attorney when their tax issues keep them up at night.” Easy to use and on point. But this is a tax bulletin, and the rest of the Article I here summarize and excerpt:

Many of my clients make decisions when faced with tough times that haunt them for years to come. What follows are some thoughts from experience in the trenches. One caveat – neither my firm nor I condone the nonpayment of taxes, or unfiled returns. But we do understand the realities that businesses might face in the difficult times ahead and would like to help you make the best decisions possible.

Trust Fund Taxes — Always Pay These! There is a reason why this comes first, ahead of the topics that follow. The moment that you collect sales tax, you are personally responsible to turn that sales tax over to the state.

Filing Tax Returns Late or Not Filing Them at All — Federal. Your business is struggling, maybe you’ve fallen behind a bit and you’re very distracted with the minute-to-minute issues that you are faced with. Wouldn’t it be simple to just not file your tax returns right now, especially if paying the tax might be impossible at the moment or might force some hard decisions that you would prefer to put off? When a client comes to me with the question of whether or not to file, here is what I tell them. The penalties for failure to file a tax return on time are far greater than the penalties for failure to pay on time.

Annual Business Registration Fees Many smaller entities neglect to register and pay the annual fees required by the state that they were organized in. While the annual fees are not onerous, if you ever want to terminate that business, and those fees have not been paid along the way, it is likely that all of those fees will all have to be paid, in addition to a penalty in some states. Better to stay on top of those fees and to terminate a business as soon as possible when it no longer serves a purpose.

W-2 or 1099? Some business owners opt to treat certain workers as independent contractors (1099) rather than employees (W-2). Why might they do that when facing financial hardships? Two primary reasons. First, the burden of state and federal employment taxes is fully shifted from the employer to the worker. Second, the employer’s workers’ compensation burden may be reduced if the individual is not the employee of the employer. What some may not realize is that the question of employee vs. independent contractor is not a simple matter of choice or preference. There are tests at both the state and federal level that are used to determine the status of a worker. There also exists an entire body of law generally called “employee misclassification.” If reading that title leaves you with the impression that there is a bias towards classifying workers as employees, you are correct. And the states are much more invested in this than the IRS. Almost no one comes out of a state employment tax audit unscathed.

I am sure if you ask, Scott would be glad to send you the complete article that you may want to share with your business clients. He’s at a Scarinci Hollenbeck. PS He got straight A’s in my class.

2.

From Martin Shenkman this note: US representative Randy Feenstra, a Republican from Iowa introduced a bill called the Death Tax Repeal Act. It was introduced February 13, 2025 with more than 170 representative signing on. Senator John Thune introduced companion legislation in the United States Senate. Marty comments: “Tax seers have a batting average well below that of local weather forecasters and that it’s just not possible to predict what this Congress may do.” I add or anyone else in this current government.

Questions or comments should be emailed to Tdavidlawyer@gmail.com.

BERGEN BAR TAX BULLETIN, VOL. 41, NO. 3

Author By J.G.Posted on

Written by: Theodore M. David, Chair, Tax Law Committee

Current Items:

  1. What is the Matter Alice?
  2. Just Do It
  3. New NSA Man at IRS

1. I’m late, I’m late, for a very important date! No time to say Hello, Goodbye, I’m late, I’m late, I’m late. If you care to remember your childhood, somewhere in your gray matter you will recall the White Rabbit in Alice in Wonderland whose obsession with time is a prominent symbol in the story. Read More

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