For those of you who don’t know me, I’m Caroline Trautman, Chair of the NCBA Construction Law Section for the 2024-2025 bar year. As a fan of new years, fresh starts and all the fun things that come with them (school supplies, anyone?) I’m excited for what’s in store for our section this year.
Thanks to the hard work of our Deskbook and CLE committees, we expect to release the 9th Edition of the Construction Law Deskbook, and on September 20-21, we’ll meet in beautiful downtown Asheville for a Fall Construction CLE titled “The Art and Science of Dispute Resolution: Winning Your Construction Case.” This program will be administered jointly with the South Carolina Bar and include CLE credit for both North Carolina and South Carolina. Plans for a winter program in Cary are underway. Additionally, our Pro Bono committee is working to connect our section with non-profit associations doing capital improvement projects, giving our attorney members a unique opportunity to give back to the community by assisting the non-profits with legal needs. Our many other committees are also working to keep our section connected to organizations like the AIA, ABA Forum on Construction Law, CAGC, UMCNC, YLD, Paralegal Division, and many more. Last but not least, we’re hoping that our recent trend of more in-person socials and other gatherings will continue, ideally in multiple regions of the state.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00Constructionhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngConstruction2024-07-09 11:31:262024-07-09 11:32:05Welcome, Construction Law Section Members!
As we bring the 2023-24 bar year to a close, it is my pleasure to share with you the Paralegal Division’s achievements. This year has been filled with significant milestones, professional growth opportunities, and social activities that have strengthened our division and supported our members. Our collective efforts have made a meaningful impact, and I am incredibly proud of the dedication and passion shown by each of you. Serving as the 2023-24 chair has been an honor, and I am excited to reflect on our accomplishments together.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00Paralegalshttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngParalegals2024-07-09 11:08:592024-07-09 11:10:57Chair Wrap-up for the 2023-2024 Bar Year
“Do I have a case?” It seems like such a simple question. One that would seemingly lend itself immediately to an IRAC analysis (that’s Issue, Rule, Analysis, and Conclusion for those of you who have effectively blocked out your first year of law school). This question, maybe more than any other, is littered with legal booby traps for the unwary. But it also presents an opportunity for lawyers to have a full and frank conversation with prospective clients about not just legal merits but the legal process.
I get it. Just like I do with my Internist, potential legal clients want to jump right to the diagnosis. Is my hamstring torn? Do I have [name the disease]? And just as I get frustrated or impatient with my doctor wanting to run some blood work, to try physical therapy, or to just wait and see, it is easy to appreciate why those who are seeking legal advice regarding a potential employment matter can’t understand why there’s no quick (and cheap) answer.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00Marc Gustafsonhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngMarc Gustafson2024-07-09 08:42:342024-07-25 08:39:19Do I Have a Case? Let’s Talk About It
I have always had an interest in public service. My journey to the New Hanover County Attorney’s Office started as a staff attorney for Legal Aid of North Carolina. From there, I served stints as an assistant district attorney and as a staff attorney for New Hanover County Department of Social Services (DSS) before joining the County Attorney’s Office.
I have been a litigator for my entire career. My path crossed with former New Hanover Deputy County Attorney Sharon Huffman while I was with DSS, and I was intrigued. I was not sure what a county attorney’s role entailed, so I made a cold call to New Hanover County Attorney Wanda Copley, who spent forty years in that position.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00GovernmentandPublicSectorhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngGovernmentandPublicSector2024-06-27 15:11:072024-06-27 15:11:07A Litigator at Heart Finds a Great Fit Working for a County
On June 21, 2024, Margaret “Peggy” Pardue was recognized as the 2024 Distinguished Paralegal Award recipient by the North Carolina Bar Association (“NCBA”).
Pardue was nominated by Kristin Hampson, her attorney for whom she has spent the past 21 years supporting at Hampson Family Law in Raleigh. Hampson was proud to nominate Pardue for a well-deserved award.
Recently seen on Hampson Family Law’s Facebook post was the following description of Pardue’s role:
“An ear to listen . . .
A heart to help . . .
An eFile phenom . . .
An organizing beast . . .
A schedule master . . .
A document demander (but in the nicest way) . . .
A client wrangler . . .
An all-around irreplaceable and amazing paralegal . . .
Young Moore and Henderson, P.A. Welcomes New Associate
Ash C. Giri is now an associate with the firm, and he will represent clients in civil litigation matters. Giri has prior experience in workers’ compensation law, and with Legal Aid of North Carolina, where he handled landlord-tenant cases. He received his J.D., cum laude, from Campbell Law School. He served as the executive editor and bluebook editor of Campbell Law Review and president of the Business Law Association. He holds a bachelor’s degree in English from the University of Minnesota.
Each year, the NCBA Environment, Energy and Natural Resources Section Council hosts an essay contest for high school students across the state centered on the theme of sustainability. This year’s contest focused on the role geoengineering could play in reducing global warming and offsetting some of the impacts of climate change. Specifically, we sent out invitations to all high schools in the state inviting their students to respond to the following prompt:
“Geoengineering” refers to emerging technologies that could manipulate the environment and partially reduce global warming and offset some of the impacts of climate change. What geoengineering technologies are most promising? What are the pros and cons of each? How might we address some of the challenges you have identified?
The winners of the contest receive the chance to be published on NCBarBlog, and the top three winners are awarded cash prizes. This year’s winners and the links to their essays are below.
First Place ($500 prize): Dara Adegoroye
Essay title: “The Future of Geoengineering and Earth’s Atmosphere”
Dara is a rising high school junior at the Early College at Guilford, in Greensboro.
Second Place ($250 prize): Susan Anderson
Essay title: “Geoengineering Against Climate Change”
Susan is a rising high school senior at Polk County Early College in Columbus.
Linda Miles is humble about the remarkable impact she has made on the practice of law in North Carolina. She constantly looks to find success, for her clients and for others, and she is a beacon of light for all. Her professionalism, quiet excellence and demonstration of strength over her 50-year career are goals every attorney should strive to achieve.
Linda has represented local governments for over 50 years. She recently retired as the attorney for the Cape Fear Public Utility Authority (CFPUA), where she served for 15 years. Before CFPUA, Linda served the City of Greensboro for over 30 years, including her role as City Attorney from 1999 through 2007. Linda was the first woman appointed to the position of City Attorney in North Carolina. Her other notable service for local governments includes representing the towns of Granite Quarry, Rockwell, and Faith, as well as the Rowan County Department of Social Services.
I. 2023 Audit Statistics; Chances of Being Audited.
The 2023 Internal Revenue Service Data Book released in April 2024 contains audit statistics for years 2013 through 2021, as of the fiscal year ended September 30, 2023 (FY 2023). For years before 2020, the statute of limitations had generally expired as of September 30, 2023. However, for 2020 and later returns, the statute of limitations has yet to expire, so additional returns for those years may be audited.
For 2013 through 2021, audit rates dropped significantly. For example, individual tax returns had an audit rate of 0.6% for 2013 returns versus 0.2% for 2021. For individuals with income between $1 million and $5 million, the audit rate dropped from 3% for 2013 returns to 0.5% for 2021 returns.
The overall audit rate for C corporations dropped from 1.2% for 2013 returns to 0.3% for 2021 returns. For partnerships and S corporations, the audit rate for 2013 returns was 0.3% compared to 0.1% for 2021 returns.
A partnership may elect to adjust its inside basis under Sections 734(b) and 743(b) by making a Section 754 election with the partnership’s annual tax return. The basis adjustment occurs, however, only when there is (1) a distribution of partnership property or (2) a transfer of partnership interest. 754 elections can be extremely valuable because they provide the possibility of an increase in the inside basis of partnership assets.
If a 754 election is made, when a partnership distributes property to a partner, the partnership’s inside basis is increased pursuant to Section 734(b), by (A) gain recognized by the distributee partner and (B) in the case of non-liquidating distributions of property other than money, by the excess of the adjusted basis of the distributed property to the partnership over the basis of the distributed property to the distributee. Similarly, a partnership’s inside basis is decreased by (A) loss recognized to the distributee partner and (B) in the case of liquidating distributions of property other than money, by the excess of the basis of the distributed property to the distributee over the adjusted basis of the distributed property to the partnership.
Welcome, Construction Law Section Members!
Construction Law SectionFor those of you who don’t know me, I’m Caroline Trautman, Chair of the NCBA Construction Law Section for the 2024-2025 bar year. As a fan of new years, fresh starts and all the fun things that come with them (school supplies, anyone?) I’m excited for what’s in store for our section this year.
Thanks to the hard work of our Deskbook and CLE committees, we expect to release the 9th Edition of the Construction Law Deskbook, and on September 20-21, we’ll meet in beautiful downtown Asheville for a Fall Construction CLE titled “The Art and Science of Dispute Resolution: Winning Your Construction Case.” This program will be administered jointly with the South Carolina Bar and include CLE credit for both North Carolina and South Carolina. Plans for a winter program in Cary are underway. Additionally, our Pro Bono committee is working to connect our section with non-profit associations doing capital improvement projects, giving our attorney members a unique opportunity to give back to the community by assisting the non-profits with legal needs. Our many other committees are also working to keep our section connected to organizations like the AIA, ABA Forum on Construction Law, CAGC, UMCNC, YLD, Paralegal Division, and many more. Last but not least, we’re hoping that our recent trend of more in-person socials and other gatherings will continue, ideally in multiple regions of the state.
Read more
Chair Wrap-up for the 2023-2024 Bar Year
Paralegal DivisionAs we bring the 2023-24 bar year to a close, it is my pleasure to share with you the Paralegal Division’s achievements. This year has been filled with significant milestones, professional growth opportunities, and social activities that have strengthened our division and supported our members. Our collective efforts have made a meaningful impact, and I am incredibly proud of the dedication and passion shown by each of you. Serving as the 2023-24 chair has been an honor, and I am excited to reflect on our accomplishments together.
Read more
Do I Have a Case? Let’s Talk About It
Featured Posts“Do I have a case?” It seems like such a simple question. One that would seemingly lend itself immediately to an IRAC analysis (that’s Issue, Rule, Analysis, and Conclusion for those of you who have effectively blocked out your first year of law school). This question, maybe more than any other, is littered with legal booby traps for the unwary. But it also presents an opportunity for lawyers to have a full and frank conversation with prospective clients about not just legal merits but the legal process.
I get it. Just like I do with my Internist, potential legal clients want to jump right to the diagnosis. Is my hamstring torn? Do I have [name the disease]? And just as I get frustrated or impatient with my doctor wanting to run some blood work, to try physical therapy, or to just wait and see, it is easy to appreciate why those who are seeking legal advice regarding a potential employment matter can’t understand why there’s no quick (and cheap) answer.
Read more
A Litigator at Heart Finds a Great Fit Working for a County
Government & Public SectorI have always had an interest in public service. My journey to the New Hanover County Attorney’s Office started as a staff attorney for Legal Aid of North Carolina. From there, I served stints as an assistant district attorney and as a staff attorney for New Hanover County Department of Social Services (DSS) before joining the County Attorney’s Office.
I have been a litigator for my entire career. My path crossed with former New Hanover Deputy County Attorney Sharon Huffman while I was with DSS, and I was intrigued. I was not sure what a county attorney’s role entailed, so I made a cold call to New Hanover County Attorney Wanda Copley, who spent forty years in that position.
Read more
The 2024 Distinguished Paralegal Award Winner: Margaret “Peggy” Pardue
Paralegal DivisionBy the Communications Committee
Pardue was nominated by Kristin Hampson, her attorney for whom she has spent the past 21 years supporting at Hampson Family Law in Raleigh. Hampson was proud to nominate Pardue for a well-deserved award.
Recently seen on Hampson Family Law’s Facebook post was the following description of Pardue’s role:
“An ear to listen . . .
A heart to help . . .
An eFile phenom . . .
An organizing beast . . .
A schedule master . . .
A document demander (but in the nicest way) . . .
A client wrangler . . .
An all-around irreplaceable and amazing paralegal . . .
Most definitely a DISTINGUISHED PARALEGAL!”
Read more
Checking In: June 25, 2024
Checking InYoung Moore and Henderson, P.A. Welcomes New Associate
2024 EENR Section Essay Contest Award Winners Selected
Environment Energy & Natural ResourcesEach year, the NCBA Environment, Energy and Natural Resources Section Council hosts an essay contest for high school students across the state centered on the theme of sustainability. This year’s contest focused on the role geoengineering could play in reducing global warming and offsetting some of the impacts of climate change. Specifically, we sent out invitations to all high schools in the state inviting their students to respond to the following prompt:
“Geoengineering” refers to emerging technologies that could manipulate the environment and partially reduce global warming and offset some of the impacts of climate change. What geoengineering technologies are most promising? What are the pros and cons of each? How might we address some of the challenges you have identified?
The winners of the contest receive the chance to be published on NCBarBlog, and the top three winners are awarded cash prizes. This year’s winners and the links to their essays are below.
First Place ($500 prize): Dara Adegoroye
Essay title: “The Future of Geoengineering and Earth’s Atmosphere”
Dara is a rising high school junior at the Early College at Guilford, in Greensboro.
Second Place ($250 prize): Susan Anderson
Essay title: “Geoengineering Against Climate Change”
Susan is a rising high school senior at Polk County Early College in Columbus.
Third Place ($100 prize): Nicole Wetzbarger
Essay title: “Geoengineering”
Nicole is a senior graduating from Pine Forest High School in Fayetteville.
A Trailblazer Takes a Bow
Government & Public SectorLinda Miles
By Nicolette Fulton
Linda Miles is humble about the remarkable impact she has made on the practice of law in North Carolina. She constantly looks to find success, for her clients and for others, and she is a beacon of light for all. Her professionalism, quiet excellence and demonstration of strength over her 50-year career are goals every attorney should strive to achieve.
Linda has represented local governments for over 50 years. She recently retired as the attorney for the Cape Fear Public Utility Authority (CFPUA), where she served for 15 years. Before CFPUA, Linda served the City of Greensboro for over 30 years, including her role as City Attorney from 1999 through 2007. Linda was the first woman appointed to the position of City Attorney in North Carolina. Her other notable service for local governments includes representing the towns of Granite Quarry, Rockwell, and Faith, as well as the Rowan County Department of Social Services.
Read more
Federal Income Tax Update
Tax SectionI. 2023 Audit Statistics; Chances of Being Audited.
The 2023 Internal Revenue Service Data Book released in April 2024 contains audit statistics for years 2013 through 2021, as of the fiscal year ended September 30, 2023 (FY 2023). For years before 2020, the statute of limitations had generally expired as of September 30, 2023. However, for 2020 and later returns, the statute of limitations has yet to expire, so additional returns for those years may be audited.
For 2013 through 2021, audit rates dropped significantly. For example, individual tax returns had an audit rate of 0.6% for 2013 returns versus 0.2% for 2021. For individuals with income between $1 million and $5 million, the audit rate dropped from 3% for 2013 returns to 0.5% for 2021 returns.
The overall audit rate for C corporations dropped from 1.2% for 2013 returns to 0.3% for 2021 returns. For partnerships and S corporations, the audit rate for 2013 returns was 0.3% compared to 0.1% for 2021 returns.
Read more
Section 754 Elections
Tax SectionA partnership may elect to adjust its inside basis under Sections 734(b) and 743(b) by making a Section 754 election with the partnership’s annual tax return. The basis adjustment occurs, however, only when there is (1) a distribution of partnership property or (2) a transfer of partnership interest. 754 elections can be extremely valuable because they provide the possibility of an increase in the inside basis of partnership assets.
If a 754 election is made, when a partnership distributes property to a partner, the partnership’s inside basis is increased pursuant to Section 734(b), by (A) gain recognized by the distributee partner and (B) in the case of non-liquidating distributions of property other than money, by the excess of the adjusted basis of the distributed property to the partnership over the basis of the distributed property to the distributee. Similarly, a partnership’s inside basis is decreased by (A) loss recognized to the distributee partner and (B) in the case of liquidating distributions of property other than money, by the excess of the basis of the distributed property to the distributee over the adjusted basis of the distributed property to the partnership.
Read more