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Show J Seriala Order Dept. University of Utah SLC,Utah CBEE3, 3BJJS 84112 FRN AMERICANA Viinli irnnii .inrfi SAiiMiW'tpXM t4n.'.v.iMMi,-.Ki . ...... .. isrKaarf. V,-- . VOLUME 1, NUMBER 28 ! wiinftftn nfi mnum .' :A.Ju.wi.-A'.v.vs.n:4.Mk,iFi'-i..iJs.!i,- lifti-.T- lafiiiffn iiTffww fiWmi full-tim- e citizen-legislato- r, time-deman- Supreme Court Decisions Sec Details Page 1 ii I n m- - MfWiiftWih Wi mi 'i W'jhfafifii igH?lfti t H mi j n urtim.i or Utah established its Legislative Council in 1947 and extensively it re- vised its organizational format in 1966. In 1966 the Beehive State created three additional interim groups, the Joint Budget and Audit, Legal Services, and Operations Committees, all of which have grown in activity and influence since that time. Appropriations for conduct of the Legislature itself have doubled since 1966, the Foundation reported, reflecting both inflationary factors and the establishment of annual legislative sessions. In the same period of time, appropria- - Support of Judicial Candidates Announced The following District Court Judges have received running for the endorsement of the Board of Commissioners of the Utah State Bar: Second Judicial District Hon. Thornley K. Swan Third Judicial District Hon. Jay E. Banks Hon. Peter F. Leary Hon. G.Hal Taylor Fourth Judicial District Hon. J. Robert Bullock Sixth Judicial District Legals Probate Court New Partnerships Births Bountiful Power Suits Divorces Uniform Commercial Code Filings Bankruptcies Bankruptcy Sales Trust Deeds Warranty Deeds Quit Claim Deeds Liens Mortgages Attorney General Opinion Mortgages Release of Mortgages Second Mortgages . . .' Tax Liens City Business Licenses New Corporations t. . 2 3 3 3 4 4 5 5 5 5 . 6 6 6 7 10 8, in 1974-7Bills providing for abolition of the Legislative Council and of the three interim committees created in 1966, and substituting for them a new and more extensive structure along the lines of current national trends, have been introduced in recent Utah legislative sessions but have not come to final vote, the Foundation reports. It is considered likely, though not certain, that the issue will reach the action stage during the 1975 regular legislative session. Whatever decision is reached may be expected to have and effects on Utah State 5. far-reachi- long-lastin- g Government, the Foundation points out. POINT CLEAR, Ala. Educating the public on when and how to use a lawyer is a major task challenging the legal profession, the president of the American Bar Association said today. James D. Fellers, Oklahoma City attorney, said legal problems are like medical problems it is better to from them prevent arising than to resolve them after they arise. In an address prepared for the Southern Regional Conference of Bar Presidents, Fellers said he would direct his energies as president of the 185,000-membABA toward improvthe ing quality and increasing the availability of legal services. He said that, to achieve these goals, the bar must seek ways to cut legal costs through such means as prepaid legal services plans, increased use of assistants, establishing law offices outside, high-reareas, 11 11 12 12 13 13 13 13 14 16 16 16 16 16 16 non-lawy- fm in .u-.a.- .. VihtiYhVi jMMMj.rwr.y - MONDAY, OCTOBER 24, 1974 - er in This issue iwwiihm i t Tax-Dodgi- ng - The endorsement comes as the result of a recent poll whorein lawyers of the State were asked l. evaluate the qualifications and perior ance of those running for judicial offk, . The poll was conducted by the Utah State Bar Commission under a resolution pledging active support of the Bar Commission to all persons running for judicial office who received a favorable vote of 70 or more in the poll. )imi nimmmi wT-f- I The SALT LAKE CITY, UTAH of Internal the District Director Revenue Service, Mr. Roland V. Wise, today announced that the IRS has been receiving many inquiries in the Salt Lake City area regarding widely promoted plans for tax avoidance through the use of private foundations or family trusts. The schemes for escaping tax usually involve the creation of one or more private foundations or trusts. The taxpayer then turns over to the foundation or trust his business assets, including a lifetime contract for his personal services, and all, or a substantial part of his other assets, and becomes the director or trustee of the foundation or trust. The promoters of the plan usually represent that a taxpayer can operate his business under the cover of the foundation as an "educational" or "research" activity exempt from federal income tax. The District Director warned, however, that the more disguising of an otherwise business with ostensibly exempt purposes does not make it exempt. One of several things may happen profit-makin- g Educating the Public on Lawyer Use is Major Task Hon.DonV.Tibbs Marriage Licenses Building Permits Water Service Business Telephones Murray Power . Murray City Court Supreme Court Decision Third District Court MiM' iT IRS Warns of Foundations Or Trusts tions to the Legislative Council have virtually doubled, and those to the three interim committees established in 1966 have increased from four- - to Total cost of all nearly seven-fold- . interim activity comprised half the total appropriation to the Legislative Branch of Utah government in 1967-6and has grown to more than 58 i l j SALT LAKE CITY, UTAH State Legislatures across the nation have recently established a marked trend toward more sophisticated interim (between regular legislative sessions) study programs and management controls. Utah appears to be at a point of decision; to follow the trend or to stay with its present interim structure and program, according to Utah Foundation, the privates-nonprofresearch organization. Features of the current trend in interim, activity, the Foundation reports, are: Involvement of more individual legislators in interim study activity. Use of regular legislative standas joint interim study committees ing committees:, with the aim to, provide better correlation between interim and activity. To achieve this objective, many states have reduced the number of standing committees and provided that committees of the two legislative houses have the same names and jurisdictions. Provision of, and greater reliance on, expert professional staffs in the fields of research, legal, and fiscal matters. Tighter management control of interim activities. Considerable controversy surrounds the new developments in interim activity, the Foundation notes. Differences of opinion are so basic that frequently proponents and opponents of the new proposals view probably results in entirely different lights. For example: Opponents of expanded interim activity see it as a step toward longer legislative sessions, possibly culminatlegislative activity, ing in comparable to that of the Congress. This, they assert, would force the who depends for his livelihood on a business or profession, out of public life. This, in turn, would force reliance on the "professional", who makes a career of legislative activity. Proponents of the proposed change take an oppoaile view, and assert that only by expanding interim activity to include all members of the Legislature and providing them adequate procan the fessional staff on individuals be reduced sufficiently to permit the to continue to play his traditional role in American public life. Present-daconditions are so complex that interim activity cannot adequately be carried out by a few members of the Legislative Council and other established interim groups, they say. y r id iti'.'iiiui,..sia n 11 h i in iw Utah I .egislature Ponders ajor interim Changes citizen-legislat- itfri.il1liiil?iiriiiiiiifiri ABA Section of Family Law, would establish panels of retired attorneys to provide free legal assistance to elderly in their communities. The project would be carried out in cooperation with local and state bar associations. Fellers praised the proposal, saying "it encourages maximum use of human resources which society and the bar have neglected." low-inco- as a result of a tax examination. The income may be taxed to the founder as being income, earned by him, or the foundation's alleged exempt status will not be recognized and the business income will be taxed. Also, the taxpayers involved may be subject to penalties and interest as provided by the Internal Revenue Code. The IRS has also been receiving inquiries from employers regarding individual employees notifying them that the employee has established a family trust. The employer is told that under the term of the trust, the employee has conveyed his services together with all income therefrom to the trust. The employee then informs the employer that all further salary is to be paid to the family trust and that no withholding of any taxes such as Federal Income Tax or Social Security Tax (FICA) is necessary. The IRS looks upon this as merely a transparent device to attempt to shift the income tax liability to the trust. In substance, it is an anticipatory assignment of income and should be taxed as wages to the employee; and withholding of Federal Income Tax and Social Security Tax (FICA) should be continued by the life-tim- e employer. The Internal Revenue Code requires the withholding of Federal Income Tax and Social Security Tax (FICA) from an employee's wages. If the employer fails to withhold from wages paid to an employee, the employer is liable for the amounts he fails to withhold. The Director suggests that individuals who may be .involved or have further questions regarding these procedures should contact the IRS at Salt Lake City, telephone number (elsewhere in utah, or write to District Director, Internal Revenue Service, 465 South Fourth East, Salt Lake City, Utah 524-406- 0 84111. Associated General Contractors Opposes Utah Land Use Act er nt specialization, and' technological improvements such as computerization. The ABA president said these efforts should be accompanied by a campaign to prevent legal difficulties from occurring. "Today, it is the rare individual indeed who considers consulting with a lawyer prior to choosing a path which clearly involves potential legal difficulties," Fellers said. "Most Americans are their own legal advisors, until they become embroiled in critical legal problems." Fellers discussed two ABA projects which he said would help achieve the Association's goals. One, being conducted by the ABA Standing Committee on Lawyer Referral Service, involves production of a series of preventive law films, and a television documentary which would depict generally when and why an attorney should be consulted. The second project, proposed by the te - The Utah Salt Lake City, Utah General Associated of the Chapter Contractors has taken a stand opposing the controversial Utah Land Use Act that will go before the state's voters on November 5th Jack C. Alder, Association President, said, "we are in favor of land use but believe that this should Planningon a local level. There are al- ready planning commissions and groups in the cities and counties who can and do perform this function". Mr. Alder said that the group feels that another commission, as provided by SB 23, is unnecessary and only adds to the cost of government. "The size and cost of government should be reduced and not increased. To create additional commissions will not only fuel the inflation but will interfere with the performance and function of the free enterprise system that has contributed so much to the quality of life we now enjoy," he stated. The Utah Chapter of the Associated General Contractors is made up of some 350 firms from throughout the state who are engaged in various phases of the construction business including contractors, and suppliers. s, Do You Need To Register to Vote? People who have not registered may do so on the following days in the County Clerk's Office: October 16th, 17th, 18th and October 21st, 22nd. 23rd, 24th and 25th The office houus are from 8 a.m. until 5 p.m. and Friday, October 25th, is the final day for registration in our office. However, those who have not registered will have one more day to register in their respective .voting districts. That day is Tuesday, October 29th, from 8 a.m. until 9 p.m. |