Blazier, Christensen, Browder & Virr, P.C.

What first-time homebuyers should know about sellers’ disclosures

2026-06-09T10:59:40Z

Caveat emptor is a Latin phrase that means ‘let the buyer beware’. While Texas law has largely moved beyond this principle, the responsibility of understanding a property still falls on you. Hence, before you sign anything, you deserve to know exactly what you are buying. That is where a seller's disclosure becomes your most valuable tool in the home-buying process.

What is a seller’s disclosure?

A seller's disclosure is a document where the seller lists known issues with a property. In Texas, most sellers must complete a Seller's Disclosure Notice prior to closing. This form covers the home's structure, systems, and history. For first-time homebuyers, this document carries more significance than you might initially realize. It gives you a written record of the property's condition before you commit your finances and your future to it.

Six red flags you should not ignore

Reading a seller's disclosure is one thing, but knowing what to look for is another. Not every issue listed in the document carries the same weight, and some can expose you to far greater costs than you anticipate. Here are six red flags to watch for as you review the disclosure:

Structural and foundation issues: Unexplained cracks, settling, or bowing walls can signal serious structural compromise that costs tens of thousands of dollars to remediate.
Water damage and mold: Past flooding, roof leaks, or plumbing issues can lead to toxic mold and wood rot if a professional did not handle the repairs properly.
Unpermitted renovations: Additions or electrical and plumbing changes made without permits can complicate your homeowners insurance and create liability issues when you sell.
Pests and termites: Wood-destroying insects can silently damage your home's framing, so check whether the property has a transferable pest control warranty.
Environmental hazards: Texas homes built before 1978 may contain lead-based paint, and other concerns including asbestos, radon gas, and nearby underground storage tanks.
Roof and system age: An aging roof or failing heating, ventilation, and air conditioning (HVAC) system can translate into significant repair costs shortly after you move in.

Each of these issues deserves careful consideration before you move forward. That is why having the right guidance at this stage can make all the difference.

Secure your family’s future home

Buying your first home is one of the most meaningful milestones you will ever reach. You deserve to approach it with clear eyes and full confidence. Taking the time to carefully review a seller's disclosure, asking the right questions, and seeking knowledgeable guidance along the way are all part of making a sound and well-informed decision. The more informed you are, the better positioned you will be to protect your family and your investment for years to come.

How does a correspondence audit differ from a field audit?

2026-05-11T16:08:49Z

When the IRS reviews your tax return, the type of audit you face often shapes your experience. While the IRS operates across the country, including in Texas, federal rules guide the process. Most reviews fall into a few categories, but two of the most common are correspondence audits and field audits. Each follows a different process and may require a different level of effort from you.

What happens during a correspondence audit?

A correspondence audit usually starts with a formal IRS notice, such as Letter 525 or a CP2000. This type of review often focuses on a narrow issue instead of your entire return. For instance, the IRS may try to confirm income, credits or deductions that do not match its records. In many cases, you can handle the process by mail or through the IRS online portal. You gather your documents and send copies to support your position. As a result, you may not need to meet with an IRS agent in person. A correspondence audit often involves:

Responding to IRS notices within the stated deadline, often about 30 days
Providing copies of receipts, forms or other financial records
Addressing a small number of items on your tax return

This approach may feel more manageable since it limits direct contact. Still, clear and timely responses can help keep the process moving.

How does a field audit work?

A field audit usually involves a more detailed review of your finances. In this situation, an IRS agent visits your home, business or accountant’s office to review your records. Unlike a correspondence audit, a field audit may cover several areas of your return. In some cases, the agent may also review other tax years if issues arise. During a field audit, you often need to organize and present a wide range of original documents. The agent may also ask questions about your financial activity or business operations to better understand your return. A field audit often includes:

In person meetings with an IRS revenue agent
A broader review of income, expenses and financial records
Requests for more documents during the review

Because of its scope, a field audit may take more time and preparation than a mail based review.

Why the differences matter for you

The type of audit you receive can affect how much time and effort you spend on the process. A correspondence audit usually focuses on a narrow issue and relies on written communication. In contrast, a field audit often involves a deeper review and more direct interaction. Federal law, including Internal Revenue Code, allows the IRS to review records and gather information to check tax returns. At the same time, the Taxpayer Bill of Rights gives you certain protections, such as the right to seek representation during the process. How the IRS applies its authority may vary based on the type of audit.

Staying prepared for a review

No matter which type of audit you face, staying organized may help reduce stress. You might keep clear records, review IRS notices with care and respond within the required time frame to protect your options. Each tax dispute situation can differ, but understanding how these audits work may give you a clearer sense of what to expect.

Can a power of attorney override business governance documents?

2026-04-10T12:37:13Z

You may want a power of attorney to keep your business running if you cannot act. That step can bring peace of mind. You may also worry about giving up too much control. Texas law draws a clear line between your business rules and your power of attorney, which helps protect how your company operates.

How authority is prioritized under Texas law

Texas law separates business control from personal agency. The Texas Business Organizations Code (TBOC) governs how your company runs. Your bylaws, operating agreement or shareholder agreement set who can make decisions and control voting rights, management power and approval steps. Texas law governs your power of attorney primarily under the Texas Estates Code. However, when your agent acts in a business context, they must also comply with fiduciary duties under the TBOC. It lets your agent exercise only those rights you personally hold as an individual owner, not rights that belong to the business entity itself. Your agent can only use the rights you already have as an owner. If your governing documents limit your authority, those limits still apply to your agent. Clear and consistent documents reduce the risk of conflict.

Where your agent’s authority begins and ends

A Texas durable power of attorney can grant broad financial powers unless you limit those powers in the document. It helps to understand how this plays out in a business setting. Your agent may be able to:

Use your ownership rights tied to shares or membership interests
Access business accounts if you allow it
Take part in decisions you have the right to make

Your agent usually cannot:

Override board or manager authority set in your governing documents
Change those documents unless you clearly allow it
Violate the fiduciary duties they owe to you under Texas law, including duties of loyalty and care

Banks and other third parties in Texas may rely on a valid power of attorney, which makes careful drafting important and helps prevent actions you did not intend.

Protect control while planning ahead

You can plan for support without giving up control. Your power of attorney and your business documents should match. Clear boundaries can keep your agent from stepping into roles you want to reserve for others and thoughtful planning can help your business stay stable while your interests remain protected.

S-Corp to C-Corp: Smart move before a business exit?

2026-03-12T12:50:30Z

When you build a business in Austin, you likely focus on growth, customers, and revenue. At some point, you may also think about your exit. If you formed an S-corporation early on, you might now wonder whether converting to a C-corporation before a sale will help or hurt you. Many founders ask one key question: will this change increase what I keep after taxes when I sell?

Why founders consider converting before an exit

In Austin’s fast-moving market, many startups begin as limited liability companies (LLC) or S-corporations. Those structures can reduce payroll taxes and simplify early operations. As the company grows, new goals emerge. Founders consider conversion for several reasons:

Venture capital firms usually prefer C-corporations.
Qualified Small Business Stock (QSBS) benefits apply only to C-corporation stock.
Buyers may favor a traditional C-corporation structure.
Equity compensation plans tend to fit more smoothly within a C-corporation.

Each of these factors can affect what your company is worth and how a transaction unfolds. They also shape what you ultimately keep after taxes, which is why the decision should align with your broader growth strategy and long-term goals. A conversion goes far beyond filing paperwork. It can alter the way you raise capital, structure ownership, and plan for future tax obligations, all of which influence how prepared your business is for a transition.

The tax issues you need to understand

A conversion from S-corporation to C-corporation can create both opportunity and risk. First, QSBS rules under the Internal Revenue Service (IRS) allow eligible shareholders to exclude a significant amount of capital gains if they meet specific requirements, including a five-year holding period. That clock typically starts when the C-corporation stock is issued. If you convert too late, you may lose part of the benefit. Second, built-in gains tax can apply if appreciated assets existed at the time of conversion and the company sells within a set period. That tax can reduce what flows through to shareholders and affect deal modeling. Third, C-corporations face potential double taxation. The corporation pays tax on its income, and shareholders may pay tax again on dividends or certain distributions. In an asset sale, that structure can change what you ultimately receive. Austin founders who plan an exit within three to five years should weigh these factors carefully. The right structure depends on your revenue growth, investor plans, and expected deal terms.

Planning ahead protects your exit value

Converting from an S-corporation to a C-corporation before an exit can unlock major tax advantages, but it can also create unexpected costs. Timing, growth strategy, and exit goals all shape the outcome. If an eventual exit is one of your long-term goals, reviewing your entity structure early can help align tax planning with that vision. A proactive strategy can align your tax planning with your long-term vision and help protect the value you worked hard to build.

3 tips for preventing the abuse of financial power of attorney

2026-02-11T12:01:59Z

Financial powers of attorney to protect people during extended emergencies. When the person is incapable of paying their bills or managing their resources due to a medical emergency, financial power of attorney can be helpful. The agent or attorney-in-fact named in the documents can oversee resource management and the financial obligations of the incapacitated person. They can pay their bills or manage their small business. Many people recognize that financial powers of attorney are useful, but they may worry about someone else abusing the authority granted in those documents. Appropriate restrictions added to financial powers of attorney can help prevent the misuse of authority and financial losses. What protective terms can people sometimes add to powers of attorney?

1. Nominating two or more co-agents

Typically, one person holds power of attorney and manages matters for an incapacitated party. It is possible to require that two or more people work cooperatively. This approach helps prevent scenarios where one person makes damaging decisions for their own benefit. Agents sharing authority can monitor one another's choices and intervene if one agent attempts to do something for their own benefit instead of the protection of the principal who empowered them.

2. Requiring a lengthy incapacitation

Standard financial powers of attorney take effect as soon as a person becomes incapacitated. However, many medical emergencies are short-term issues that resolve within days. Some people protect themselves from the abuse of power of attorney by requiring that their medical incapacitation last a minimum amount of time before an agent can assume authority.

3. Limiting access and control

Powers of attorney do not need to provide carte blanche access to and control over personal resources. Principals can grant an agent the authority to access only one financial account or attend to specific financial needs. This approach helps protect high-value assets from inappropriate transfers or liquidation. Adults adding financial powers of attorney to an estate plan may need support as they draft appropriate documents. Discussing financial needs and concerns with a lawyer can help people ensure they have protection when they need it the most. Custom language added to financial powers of attorney can protect people from abuses of power while they are medically vulnerable.

Why buyers making real estate offers add contingencies

2026-01-16T18:50:08Z

Buying real estate comes with a degree of risk. Property owners never know when they may have to invest substantially in repairs. They have to commit themselves to making mortgage payments even if they lose their jobs or face major medical hardships. They are also usually liable if people get hurt while visiting their homes. The way that people behave during a real estate transaction can influence their degree of risk. How they hold title can protect them from liability in some cases or protect the home from creditor claims. Even before they reach that point, people trying to buy homes may need to make choices to protect their resources. Contingencies included in an offer or purchase agreement are a key form of protection for those buying residential real estate.

What are contingencies?

A purchase offer is a binding contract. Buyers typically must follow through with the offer to purchase the property even if their circumstances change. They risk the loss of their resources if they do not follow through with the transaction. Specifically, the earnest money that they deposit to indicate their sincerity when making an offer is at risk of retention by the seller. If a buyer must cancel the closing, the contingencies they add to their offer can help them protect their earnest money. Frequently, contingencies relate to factors that could make a real estate transaction less beneficial. For example, buyers may include sale contingencies that allow them to cancel the closing if they cannot list and sell their homes. Other times, they might add appraisal contingencies in case the professional valuation of the home comes in low or a financing contingency in case they cannot secure a mortgage. If a buyer has the right protection in their contract with the seller and they must cancel the closing due to unexpected complications, they can keep their earnest money and use it when making an offer on a different property later. The right contract inclusions minimize financial exposure when making an offer on a property. Partnering with a real estate attorney makes it easier for buyers to craft custom documents and protect their interests during a residential real estate transaction accordingly.

Who needs to pay quarterly estimated income taxes?

2025-12-17T10:50:54Z

Most working adults do not need to worry much about federal income tax obligations. They file paperwork with their employers that allows for automatic deductions from their paychecks. Their employers pay estimated taxes to the Internal Revenue Service (IRS) and state tax authorities with every paycheck issued.

Such arrangements are beneficial for employees, who only have to consider their tax obligations once a year when filing their annual income tax return, reconciling estimated payments with their total obligations. Others are not quite so fortunate.

They may need to make estimated tax payments on their own behalf to avoid fees, interest and falling far short of the total amount of tax due at the end of the fiscal year. Who has a responsibility to estimate and pay their own income taxes?

Independent contractors

Self-employed professionals, also known as independent contractors, are responsible for fulfilling their own income tax obligations. They have to retain funds to cover their tax obligations.

Those who have just begun working as self-employed professionals have a grace period during their first year. After filing their first annual return as a self-employed professional, they have an obligation to make quarterly tax payments that cover most, if not all, of their final tax obligation for the year.

Businesses and business owners

Successful companies and business owners generally need to make estimated income tax payments as well. The owner-operator of a small retail establishment likely needs to pay estimated quarterly taxes for the business.

Those running professional practices may also need to pay quarterly based on company revenue. Even if the owner is technically an employee receiving hourly wages or a salary, the business itself likely needs to pay estimated taxes.

People with diversified income streams

There are many sources of income that are not subject to payroll tax withholding. Maybe a successful professional has residential real estate holdings that they lease to others. Perhaps an employee who earns a salary also has investment accounts that return dividends most years.

Those who received income from untaxed sources generally need to estimate that income and pay taxes on the additional income they received, even if their employers withhold funds based on their salary or hourly wages. The failure to make estimated quarterly tax payments can result in penalties that can prove quite costly.

Professionals facing income tax controversies or claims of underpayment may need help communicating with the IRS and limiting the consequences they face. Discussing tax responsibilities and reviewing IRS letters with a legal professional can be beneficial for those facing allegations of unpaid taxes or other compliance issues.

Even very young adults need power of attorney documents

2025-11-17T09:28:12Z

Many people think that power of attorney documents are only for older adults or those facing serious health issues, but in reality, every adult—no matter how young—should have them drafted, stored safely and updated whenever necessary. Once a person turns eighteen, parents or guardians no longer have the automatic legal authority to make decisions on their behalf. Without power of attorney documents in place, even a simple medical emergency or financial matter can become complicated if a young adult is unable to act for themselves. Having power of attorney documentation in place can help to make these scenarios both manageable for an affected adult’s loved ones, and focused on the affected adult’s needs and preferences.

Why make this effort?

If you have not yet explored this subject, start by processing the fact that a power of attorney gives someone the legal authority to make decisions on your behalf if you are physically unable to do so (likely due to severe illness or injury). This can be an unnerving thought, but it can also be an empowering one. There are two main types of power of attorney documentation: financial power of attorney and medical or healthcare power of attorney. A financial power of attorney allows a trusted person—often a parent, sibling or close friend—to manage bank accounts, pay bills or handle legal or academic matters. A medical power of attorney, sometimes called an advance healthcare directive, allows someone to make healthcare decisions if a young adult is injured, hospitalized or otherwise incapacitated. Consider what might happen if a college student is in a serious accident and becomes unconscious. Without a healthcare power of attorney, doctors may not be able to share medical information or take direction from the parents. Similarly, if a young adult studying abroad loses access to their bank account or needs help with a legal document back home, no one can step in unless a financial power of attorney has been signed. These documents do not mean giving up independence. They simply help to ensure that if something unexpected happens, a trusted person can step in quickly to manage important matters. Power of attorney documents can also be limited in scope or duration, allowing flexibility depending on individual needs. Creating these documents early in adulthood is not a sign of fear—it’s a sign of responsibility. With properly drafted powers of attorney, even very young adults can protect themselves and better ensure that their loved ones have the authority to help when it matters most.

Taxes overdue for your S-Corp or C-Corp? What now?

2025-10-15T08:27:00Z

Falling behind on taxes is one of the most serious challenges a business can face, whether it operates as an S-Corporation or a C-Corporation. Unpaid taxes can trigger penalties, interest and even personal liability for certain debts under specific circumstances. While doing so may feel overwhelming for those responsible for this scenario, taking swift, informed action can prevent the situation from spiraling out of control and help protect the future of the business at issue.

Making and executing a plan of action

For both S-Corps and C-Corps, the first step in resolving overdue taxes involves determining the scope of the problem. This means reviewing all recent filings and correspondence from the IRS or state tax authorities. It’s important to understand whether any overdue taxes relate to payroll, income or other obligations, as each type can result in distinct potential liabilities, and may require different kinds of approaches. For an S-Corp, where income flows through to shareholders, unpaid taxes may also affect individual returns. A C-Corp faces taxation at the entity level, meaning that corporate and personal liabilities are separate but can both become strained if the business’s finances are mismanaged. In either case, approaching an overdue taxation situation so that a company’s response is strategic and compliant is going to be a wise move. Ignoring the issue will not make it disappear—penalties and interest will continue to accrue, and enforcement actions may follow. These can include liens against business property, wage garnishments and asset seizures. By proactively reaching out with the assistance of a skilled legal team, a business can potentially negotiate payment arrangements, request penalty relief and explore settlement options. The IRS’s installment agreement and “offer in compromise” programs, for example, can provide structured ways to resolve tax debt over time. While overdue taxes are a serious matter, they do not have to mark the end of a business. With transparency, professional guidance and timely corrective action, it is often possible to stabilize operations, satisfy tax obligations and rebuild trust with the authorities while keeping a company grappling with delinquency in this regard moving forward.

S-Corp vs. C-Corp: Key ownership restrictions

2025-08-22T14:18:11Z

If you're starting a business, choosing the right structure matters. Two common types are S-Corporations and C-Corporations. While they share some features, they differ in how ownership works—and those rules can affect your business strategy.

S-Corp ownership limits

S-Corps face strict ownership rules. You can’t have more than 100 shareholders. All shareholders must be U.S. citizens or permanent residents. This means foreign investors can’t hold shares. Also, S-Corps can only issue one class of stock. That limits how you can divide control or profits among shareholders. These restrictions help keep S-Corps small and simple. They’re popular for family businesses or closely held companies that don’t plan to raise money from outside investors.

C-Corp ownership flexibility

C-Corps offer far more flexibility. They can have unlimited shareholders, and there’s no restriction on their citizenship. Foreign investors, other corporations, or even partnerships can all hold shares. C-Corps can also issue multiple classes of stock, such as common and preferred shares. That gives you more options for managing voting rights and profit distributions. This flexibility makes C-Corps attractive for startups that plan to seek venture capital or go public. Investors often prefer this structure because it supports more complex ownership arrangements.

Why ownership rules matter

The way ownership works affects your growth plans. If you want to keep control tight and simple, an S-Corp may be a better fit. But if you aim to scale, attract investors, or operate globally, a C-Corp's open ownership rules can support those goals.