Greenberg, Smith & Abraham, P.A.Greenberg, Smith & Abraham, P.A.2026-04-01T14:58:24Zhttps://www.gsalawmn.com/feed/atom/WordPress/wp-content/uploads/sites/1402123/2025/08/cropped-New_Logo_1_Fav-32x32.pngOn Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[Can your business still use non-compete clauses in Minnesota?]]>https://www.gsalawmn.com/?p=477232026-04-01T14:58:24Z2026-04-01T14:58:24ZWhy you may still want these protections in place
If you own a business, you likely put time and resources into your client relationships and your team. You also develop internal processes that support how the business runs. When someone leaves, there is a concern that clients or business information may go with them.
In many cases, the concern is not simply competition. It may involve losing client relationships or having sensitive business information used elsewhere. For closely held companies and professional services firms, these risks can affect revenue and long-term stability.
That is why these types of agreements have long played a role in business planning. The change in the law does not remove those concerns. It changes how you can address them.
What the law allows going forward
While non-competes are now restricted, other legal tools remain available. Updating your agreements can help address key risks while aligning with current law. These include:
Non-solicitation provisions: Limit a former employee’s ability to contact clients, customers or co-workers for a period of time after departure
Confidentiality agreements: Protect business information such as pricing, client lists and internal processes
Trade secret protections under state law: Apply to information that meets the legal definition of a trade secret, even without a contract
Non-competes tied to the sale of a business: Remain enforceable when connected to the transfer of ownership
Compensation structures tied to conduct: Tie certain bonus or equity arrangements to post-employment behavior
Each of these options comes with limits, and enforceability will depend on how narrowly the terms are written and whether they reflect a legitimate business interest.
Where you may face risk now
You may still rely on agreements that no longer reflect current law. That gap can surface at the worst time, such as when a key employee leaves or a dispute begins. Common issues include:
Outdated non-compete language: Provisions that no longer hold up and may weaken the agreement as a whole
Overly broad non-solicitation terms: Restrictions that go beyond what is reasonable and become harder to enforce
Unclear confidentiality definitions: Gaps that create disputes over what information is actually protected
These issues can limit how much protection your agreements actually provide. You may assume your terms will hold, only to find they offer little leverage when tested.
Reviewing your agreements in light of the change
This shift in the law calls for a closer look at how your agreements are structured. A review can help identify provisions that no longer apply and refine how your business protects client relationships and internal information. Updated agreements will focus less on restricting where someone can work and more on safeguarding what matters to your operations.
Your agreements should reflect how your business actually operates, especially when it comes to client relationships. Clear, focused language can reduce uncertainty and lower the risk of disputes, even if enforcement is never needed.
]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[Who is responsible for property damage during construction?]]>https://www.gsalawmn.com/?p=477132026-01-08T13:16:09Z2026-01-08T13:16:09ZConstruction projects can be exciting, but they also come with risks. One common concern is property damage. Knowing who is responsible helps you protect yourself and your investment. Minnesota law provides general guidance, but each project is different.
Understanding liability for construction damage
Responsibility usually depends on who caused the damage and what precautions they took. Minnesota law holds contractors to a “reasonable standard of care.” The law checks if their work matches what a skilled contractor would do in similar situations. If a contractor makes a mistake, they are usually responsible.Many contracts also include indemnification clauses. They explain who is responsible for different types of damage. Reviewing them helps you spot risks before work starts.You may share responsibility if you disrupt work or do not follow the project rules. Minnesota uses a modified comparative fault rule. If you share responsibility, the law reduces your recovery. You cannot recover if you are over 50 percent at fault.Insurance can also play a role. Homeowners’ insurance may cover some damage, but many policies exclude construction-related losses. Construction projects often rely on builder’s risk and contractor insurance. Contractors should also carry insurance that protects you and them. Check coverage ahead of time to avoid disputes.
Common scenarios and protective steps
Some situations determine who is responsible. Knowing them helps you avoid surprises. Common situations include:
Accidental damage caused by contractor errors
Damage from subcontractors or hired vendors
Property damage due to preexisting conditions
Weather-related incidents during construction
Delays or negligence in maintaining safety measures
You can take steps to reduce your risk. Clear contracts, written scopes, regular inspections and confirmed insurance help protect your real estate property. Being proactive can prevent conflicts before they start.
Protect your project and your property
Responsibility for property damage can shift depending on the situation. Understanding who may be liable helps prevent disputes and costly repairs. Clear contracts, proper planning, and insurance coverage all play a role in managing risk.Staying aware of potential issues allows you to address them before they become problems. These strategies ultimately help protect your property and preserve your investment over the long term.]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[Your business is being audited. Now what?]]>https://www.gsalawmn.com/?p=477102025-10-09T14:26:34Z2025-10-09T14:26:34ZFew things cause more anxiety for business owners than learning that their company is being audited. Whether it’s a federal, state or local audit, the process can feel invasive and overwhelming. And because it can be consequential, it is important to respond thoughtfully and as proactively to this turn of events as possible.
It is important to keep in mind, however, that if your company is being audited, this does not necessarily mean wrongdoing has occurred. It means a taxing authority wants to verify that the information your business has reported is accurate. How you respond in the days and weeks following that notice can significantly affect the outcome of your situation.
Responding thoughtfully
The first step is to stay calm and review the audit notice carefully. The letter should specify which tax years or financial areas are under review. Understanding the scope can help you determine what documents you need and prevent unnecessary confusion. Once you know what’s being examined, gather relevant records such as tax returns, receipts, invoices, payroll reports and bank statements. These records will help a skilled legal team to construct an informed, detailed and thoughtful response. During the audit, honesty and organization are going to be necessary. Misleading an auditor or withholding information can result in penalties that are far worse than an audit itself. With that said, you are not obligated to answer every question immediately or provide explanations without review. Your attorney can help ensure that all communications remain professional and appropriate.Once the audit concludes, the taxing authority will issue findings that may include proposed adjustments. If you disagree, you will typically have the right to appeal. Your representative can review the findings, provide additional documentation or challenge errors in interpretation. In many cases, audits end with no change to your tax liability once all evidence is properly presented.Facing an audit is stressful, but preparation and professional guidance can make a big difference. With strong legal support, you can navigate the process efficiently, minimize disruptions to your business and protect your financial interests while maintaining compliance with the law.]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[Why worry about taxes in the “off” season?]]>https://www.gsalawmn.com/?p=475312025-07-15T16:32:10Z2025-07-15T16:32:10ZMany people and businesses think of taxes as something to worry about only during filing season, but the so-called “off” season is just as important—especially if you are dealing with unresolved tax issues or trying to avoid future problems.
Whether you are an individual grappling with complex financial matters or a business owner trying to stay compliant, taking proactive steps in the months between April and January can help protect your finances and reduce the risk of legal trouble with the IRS or state tax authorities.
Potential benefits of being proactive
One key reason to focus on taxes in the off-season is that preparation is usually an easier task when a pressing deadline isn’t looming large. The months after filing are the best time to assess your financial picture without the pressure of an urgent deadline dictating your approach. This can be especially true for those who experienced significant life changes such as marriage, divorce, buying or selling property, receiving a large inheritance or starting a new business. These events can all affect your tax liability and should be addressed before the next tax year is in full swing.Businesses should also take time during the off season to review accounting practices, confirm estimated tax payments are accurate and make sure they are classifying workers correctly. Missteps in these areas can lead to audits, penalties and even litigation. Off-season planning can also help businesses take full advantage of deductions, credits and other strategies that reduce taxable income before the year ends.For individuals and businesses facing tax controversies—such as disputes over unpaid taxes, audits or penalties—the off-season is a time during which you can take full advantage of legal assistance when others aren’t scrabbling for the same. Addressing problems early can give you a chance to negotiate payment plans, file appeals or settle tax debts without the additional pressure of deadlines or enforcement actions. Waiting until filing season to deal with these issues can limit your options and increase stress.Another reason to stay tax-aware year-round is the rise in automated enforcement efforts. The IRS uses data analytics and matching systems to identify discrepancies between reported income and third-party documents like W-2s and 1099s. If there is a mismatch, you might receive a notice months after filing, often during what feels like the off-season. Responding promptly can help you to avoid escalating problems.The off-season also allows you to evaluate long-term planning strategies. Individuals can assess retirement contributions, charitable giving or investment decisions that affect tax outcomes. Business owners can examine entity structure, payroll practices and benefits offerings to ensure they align with current tax goals.In short, tax issues do not disappear when the filing season ends. The off-season is your best opportunity to correct course, plan ahead and resolve any lingering concerns.
]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[3 issues that may prevent pre-approved buyers from getting mortgages]]>https://www.gsalawmn.com/?p=475152025-04-16T21:32:18Z2025-04-16T21:32:18ZA sudden job loss
The ability to pay a mortgage depends in no small part on maintaining consistent employment. Borrowers usually need to have had their jobs for at least a year to qualify for a mortgage with competitive terms. If a buyer with pre-approval suddenly loses their job after making an offer on a property, they likely cannot move forward with the transaction. Any significant change in income is likely to complicate financing prospects.
An increase in overall debt
Those preparing to buy a home often need to make several big purchases. They have to pay for homeowners insurance coverage, moving services and a variety of other pressing needs. Some people use revolving lines of credit to cover various expenses in the weeks leading up to a real estate transaction. If they use too much credit, they may shift their debt-to-income ratio enough to prevent the lender from finalizing the mortgage. Those who take out too much debt in between when they secure pre-approval and actually acquire the mortgage may make themselves ineligible in some cases.
Surprise issues with the property
Sometimes, the borrower is theoretically eligible for the mortgage. However, the lender may question the value of the proposed transaction. Maybe the appraisal came in unexpectedly low. Perhaps the inspection turned up several significant issues with the property that undermine its fair market value. Lenders may choose not to extend financing in scenarios where the current price or condition of the property does not meet underwriting requirements.
Buyers hoping to purchase real property may need to take steps to protect themselves. Including the right contingencies and terms in offer documents can help buyers protect their earnest money and make it easier for them to move on if a real estate transaction falls apart at the 11th hour. Those who understand the possible challenges that can derail residential closings can more successfully avoid scenarios in which unexpected complications interfere with their dreams of homeownership.]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[What happens if taxpayers don’t file their returns?]]>https://www.gsalawmn.com/?p=474982025-01-19T17:58:23Z2025-01-19T17:58:23ZThe impact of missed returns
The IRS requires that those earning income file an annual tax return to verify that they have paid what they should based on their assets and all of their sources of income. They help the IRS reconcile estimated payments with actual tax responsibilities.
Technically, there are no penalties for failing to file a tax return if the IRS actually owes the taxpayer a refund. The risk is the potential of underpaid income taxes. If a taxpayer didn't pay the full amount they should have and they fail to file an income tax return, they are then subject to the failure to file penalty.
The IRS assesses a 5% penalty based on the amount of unpaid taxes. The penalty is per month that a tax return is late. There is a cap of 25% of the value of the unpaid taxes. That amount then accrues interest. Once the return is 60 days late, a minimum penalty amount of $485 is possible.
Many circumstances could lead to a taxpayer unintentionally underpaying their taxes. Perhaps one of their dependents aged out in the last year. Maybe they divorced, and their spouse is the one claiming the children for income tax purposes. Maybe they have secondary streams of income, such as investments or rental properties. Any of those scenarios might mean that an individual owes taxes when they file their annual return.
Learning more about income tax rules can help those facing controversies choose how to respond. People who need to communicate with the IRS and resolve issues related to unfiled returns often need help to avoid worsening their circumstances, and that’s okay.]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[3 important obligations for a condo board to manage]]>https://www.gsalawmn.com/?p=474682024-10-16T18:32:54Z2024-10-16T18:32:54ZEstablishing and updating bylaws
Bylaws are rules and standards that govern homeowner behavior and community obligations. It is therefore crucial for the COA to establish bylaws when the board first begins managing the community and to occasionally update the bylaws as necessary. Bylaws may include restrictions on short-term rentals, property maintenance requirements and even limitations on pet ownership in some cases.
Enforcing community standards
One of the most difficult elements of serving on a COA board is the need to regularly enforce community bylaws and expectations. Even in scenarios where non-compliant property owners have legitimate, understandable reasons for failing to maintain their units or pay their dues, the COA board generally needs to enforce all rules consistently. Failing to do so puts the board at risk of becoming unable to engage in enforcement activities in the future.
Allowing and reviewing community feedback
Open meetings are one of the most important requirements for COA board operations. Generally speaking, boards need to hold meetings that are open to the public. They need to provide property owners with advance notice of meetings and give them an opportunity to voice their concerns. Those concerns should influence how the COA manages the community. In scenarios where property owners can reasonably claim that the COA failed in its obligations, other condo owners may be able to take legal action to remove board members or elect others to that same position.
Learning about the real estate laws that apply to COA board members can help people determine if they want to run for a position, or if they need to take action due to a COA failing in its duties. COA boards should be beneficial for property owners as a whole, and board members should seek to protect the community rather than work to benefit themselves.]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[Do you qualify for an offer in compromise to resolve tax debt?]]>https://www.gsalawmn.com/?p=474662024-07-15T13:09:08Z2024-07-15T13:09:08Zoffer in compromise (OIC) as a potential solution, under many circumstances. If you qualify for this program, you can pay a fraction of your total tax debt.
OIC can be a ray of hope during a difficult time, but is it the right solution for you? Familiarizing yourself with the qualifications can help you decide whether to explore this opportunity.
What is an Offer in Compromise?
If you qualify for OIC, the IRS allows you to make a lump sum or periodic payments that are a fraction of your total tax debt. You’re likely to qualify for this program if you can convince the IRS that settling your full tax debt would catapult you into significant financial hardship. To evaluate if you qualify for the program, the IRS will carefully examine:
The full value of your assets
Your source of income
Your daily expenses
These perimeters can help the IRS determine if you genuinely need assistance settling your tax debt. The IRS will also check to confirm that you’ve been tax-compliant for the ongoing year.
Do you qualify for OIC?
The IRS explores two main criteria to determine if you qualify for an OIC. First, they will explore all collection options to see if you can afford to settle the full amount. You may qualify if they establish, beyond a reasonable doubt, that due to your limited assets, collecting the full amount you owe is unlikely.
Secondly, the IRS will analyze if paying the full amount will cause you undue future financial hardship. You qualify for OIC if settling your entire tax debt will leave you unable to meet your basic needs.
Even if it’s likely that you could qualify for OIC, demonstrating that you meet one of these criteria can feel like an overwhelming tax during such a trying time. It can help to rely on a reliable legal group to gather necessary documentation for building and negotiating your case.]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[3 possible solutions for a breach of a business contract]]>https://www.gsalawmn.com/?p=474642024-04-22T16:54:25Z2024-04-22T16:54:25ZContract termination
Many contracts include terms that make them enforceable even if either party violates the agreement. Therefore, one party may still need to do work for the other or issue payment despite the poor performance or non-performance of the other party. Sometimes, the best outcome for a breach of contract lawsuit is to have a judge invalidate or terminate the contract. For example, a commercial tenant dealing with the landlord who doesn't properly maintain the facilities could ask to terminate the lease so that they can begin renting elsewhere without overextending the company.
Compensation for damages
Many contract breaches affect how a company operates and might even prevent the organization from fulfilling other contractual obligations. The courts can compensate a company for the financial impact of a breach. When a plaintiff in a breach of contract lawsuit can show obvious financial losses directly related to the contractual non-compliance of the other party, a judge might agree to award financial damages. Damages can also include penalties and fees assessed in accordance with the contract terms.
An order of specific performance
The failure to perform in accordance with the terms of a contractor to deliver materials to a company can cause numerous challenges, not the least of which is the need to find another supplier or service provider. Judges can sometimes enforce or uphold the terms of a contract by issuing an order of specific performance. If they do, then the party subject to that order must deliver goods or perform work in accordance with the court order. The failure to do so could lead to additional penalties, including allegations of being in contempt of court.
A pending contract lawsuit might be enough to prompt someone in breach of a contract to fulfill their obligations or agree to attempt alternative dispute resolution. Knowing when to take action can help those who operate businesses enforce their contracts and seek other remedies for contract violations, whether their pursuit of justice reaches a courtroom or not.]]>On Behalf of Greenberg, Smith & Abraham, P.A.<![CDATA[Contingencies are crucial protection for real estate buyers]]>https://www.gsalawmn.com/?p=474622024-01-27T01:55:57Z2024-01-27T01:55:57ZWhat are real estate contingencies?
When someone makes an offer to purchase real estate, they do so based on what they currently know about the property. A cursory walkthrough, the current market in the area and disclosures from the seller are often the most important considerations when buyers decide what price to offer. They are then responsible to the seller and must follow through on their offer.
Contingencies are clauses that give them an opportunity to renegotiate or cancel their offer in very specific circumstances. With the right contingencies, buyers can walk away from a real estate transaction without the loss of their earnest money. The most common contingencies address issues that could arise for the buyer or with the property before the closing occurs.
Inspection contingencies are common. If an inspector turns up significant, expensive issues with the property, an inspection contingency gives the buyer a chance to renegotiate with the seller or walk away from the closing.
Appraisal contingencies can protect a buyer's earnest money if the appraisal comes in much lower than they expected. Financing contingencies can protect buyers against multiple dangerous scenarios, including a situation in which their employment situation changes and they no longer have the income necessary to secure a mortgage.
The current circumstances of the buyer and other factors influence what contingencies are appropriate. There are also contingencies that protect those looking to purchase commercial property. Drafting customized real estate documents can help buyers better protect themselves from the risks inherent in making an offer to purchase real property.]]>