From understanding how cases arise and planning consequent strategy to taking the right steps, employing proactive measures and understanding key threats, the report brings to light the true nature of the threat of
personal liability in today's business world.
1402(a)-2(h) provides that an individual is treated as a limited partner unless he (1) has
personal liability for the debts of or claims against the partnership by reason of being a partner, (2) has authority under the law of jurisdiction in which the partnership is formed to contract on behalf of the partnership or (3) participates in the partnership's trade or business for more than 500 hours during the partnership's tax year.
Personal liability is increasingly troubling for CPAs in particular because of the trend that targets CPA firms as the deep pocket for investors and federal regulators.
The court concluded that the taxpayer retained all proprietary rights in the claim and simply used a portion of the award, on receipt, to discharge her
personal liability owed to the attorneys.
Contrary to the limited-liability concept in corporation law, several state legislatures (including Indiana, Michigan, New York, Pennsylvania, Tennessee and Wisconsin) have enacted statutes imposing
personal liability on shareholders for wages and salaries owed by a corporation.
Auto customers may also benefit from a Deductible Savings Benefit, which builds a credit toward future claims for loss-free driving, and MetLife Auto & Home also offers a package product, GrandProtect(SM), which bundles property,
personal liability, and auto coverage with higher limits on many coverages into one convenient policy with one deductible and one bill.
It is unlikely, from a state law standpoint, that the general partner would be released from
personal liability by the firm's creditors for the business's recourse debts.
This
personal liability exists even if the company is a corporate entity.
Rushing to sell Intermix to protect themselves from
personal liability from management misdeeds and insider trading, including: artificially inflating business metrics; ramping up activities in a business division under investigation by the New York State Attorney General; and selling $25 million of Intermix stock with the benefit of inside information.
gives rise to
personal liability under 31 USC Section 3713(b).
TBL further indicated that the costs of due diligence to assure that the company's officers and directors would not be subjected to
personal liability under Sarbanes-Oxley outweighed the potential benefits of the transaction.
the default and involvency of every party to the transaction), the financing corporation would call on the limited partners to make contributions to the extent of their
personal liability on the Petunia-Venture note.
