Industry News

Realty agents sued over alleged underreported commissions

Real estate law state round-ups

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Here is a rundown of the latest legal issues in real estate from a handful of states throughout the country: Lest you forget, Hawaii reminds us it doesn't pay to fool the tax man In another reminder that it's always a good idea to report all income – and duly pay taxes on every cent of that income – consider that the Hawaii Attorney General's office has filed suit against 12 real estate agents and the husband of an agent it contends failed to report and pay taxes on $9 million in commission income. According to the Hawaii Attorney General, its seven-year audit of the top 10 real estate companies in terms of sales volume, done in cooperation with the Hawaii Department of Taxation, showed the agents failed to pay more than $575,000 in taxes, including penalties and interest. The Attorney General alleges that 11 of the agents failed to make timely tax payments and one underreported commissions. Failure to pay taxes in Hawaii is a misdemeanor punishable by up to a year in pri...