December
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in TaxesBig tax changes ahead
Beginning in January 2008, the tax rate on certain dividend income and long-term capital gains goes from 5% to
0% for taxpayers in the bottom two regular tax brackets (10% and 15%).
Do a year-end tax review of your investments
This is a good time of year to review your investments. If you're not meeting your financial goals for the year,
there's still time to make changes. Make sure your portfolio is appropriately balanced among stocks, bonds, and
other investments. New Business
Survey estimates 2008 pay raises
An August 2007 survey conducted by WorldatWork revealed that employers are expecting to increase salaries by 3.9%
in 2008. Are you paying enough attention to cash flow in your business?
In assessing their business, most owners focus on growth in sales and profits. Yet these do not guarantee business
health and success. Another important gauge is cash flow. Simply put, is there enough cash inflow to cover cash
outflow? Smart Business
Many stay on the job even after age 65
It's no longer unusual to find people of retirement age choosing to continue working. According to the Employee
Benefit Research Institute, in 2006 about 30% of Americans aged 65 to 69 were still working, up from 18% in 1985.
Do you need life insurance on your children?
Ask whether you should carry life insurance on your children and you'll receive a variety of answers. Here's a
look at the arguments for and against. November
New Business
Thanks to a provision in the Pension Protection Act of 2006, tax-exempt organizations with annual gross receipts
of $25,000 or less will generally have to file a new annual report with the IRS.
Surveys show that employees tend to underestimate the amount of money that their employer spends on employee benefits.
It's up to you to get them to realize their paycheck is only part of the compensation they are receiving as employees.
Smart Business
You know you must invest during your working years in order to build a fund for retirement. But what you don't
know is how many years you'll be drawing on your retirement money. Now there are new statistics that may be helpful
in estimating how long your retirement kitty has to last.
The holiday season should be a pleasant time - exchanging gifts, entertaining family and friends, and extending
goodwill to others. Most of us enjoy the holidays, but too often the enjoyment is followed by financial headaches.
January’s bank statements and credit card bills bring the realization that once again we lost control of our finances.
October
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Don’t fall for the latest IRS e-mail scam
The Internal Revenue Service is warning taxpayers about yet another e-mail scam. In this latest scam, the taxpayer
receives an e-mail that appears to come from the IRS. The e-mail contains a link to an online "Member Satisfaction
Survey," and the taxpayer is told he or she has been selected to participate in this survey.
If you can, plan for coming payroll tax increases
Many Americans pay more payroll taxes than federal income tax. That’s the FICA tax you see on your W-2 wage statement
- a combination of 6.2% social security tax and 1.45% Medicare tax.
New Business
Employer's tip credit isn't reduced
As of July 24, 2007, the new federal minimum wage increased from $5.15 an hour to $5.85. By the summer of 2009,
the minimum wage will increase to $7.25 an hour.
A business consultant can give useful feedback
Is there an especially baffling problem in your business? Or do you have problems you have identified but do not
have the time to address? Perhaps you should consider hiring a good business consultant.
Smart Business
Health insurance costs outpace inflation
According to the annual survey of employers conducted by the nonpartisan Kaiser Family Foundation, the cost of
health insurance rose 6.1% this year. That's more than double the annual rate of inflation (measured in July) of
2.4%.
Choosing your executor: A critical estate planning decision
An executor is the person or legal entity that you appoint in your will to settle your estate after your death.
It is common practice to name your spouse or one of your children (often the first born) to be the executor of
your estate.
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
IRS launches audit program
Beginning next month, the IRS plans to audit about 13,000 individuals for tax year 2006 as part of a research project
to update the Service's audit selection process.
An HSA might be the right prescription now
Health Savings Accounts (HSAs) are tax-sheltered accounts that, when combined with a high-deductible health insurance
plan, allow a tax deduction for contributions made to the HSA.
New Business
How’s your customer service?
According to a recent survey, 48% of consumers say that customer service is the biggest factor in creating loyalty
to a company. 37% said it was product quality; 13% said it was price. Brand name or the company’s reputation was
cited by the remaining 2%.
Make the right choice in deducting car expenses
Taxpayers generally may use one of two methods for computing business car expenses: the actual cost method or the
standard rate method. The standard mileage rate may not be used in certain situations; the actual cost method may
be used by any taxpayer.
Smart Business
Have you gone too paperless?
It can be convenient to cut out "paperwork" by conducting your financial activities online. But if you
do your banking and your investing through online bank and brokerage services, your heirs may have trouble sorting
through your finances once you’re gone.
What’s more important — saving for children’s college or your retirement?
A college education. Retirement. What do these major life events have in common? One shared characteristic
is that each comes with a price tag. Here’s another: If you have school-age kids, you might be facing the challenge
of having to decide which goal to save for. They’re both important. So how do you make the choice?
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Charities and churches warned to stay out of politics
Though national elections are not until next year, the IRS is reminding charities, churches, and other nonprofit
organizations to stay out of politics.
Manage "AGI" to keep tax breaks from disappearing
At tax time it pays to read the fine print. A variety of allowances, deductions, credits, and exemptions are phased
out as income rises. If your income reaches these "phase-out" levels, you may lose tax benefits.
New Business
Free IRS online workshop available to nonprofit organizations
The IRS now has an Internet version of its Exempt Organizations Workshop available on its Web site at www.irs.gov.
The workshop, titled "Stay Exempt – Tax Basics for 501(c)(3)s," covers tax compliance issues faced by
small and mid-sized tax-exempt organizations, including charities and churches.
Is your worker an "employee" or an "independent contractor"?
There’s an ongoing debate that’s almost as old as the tax code itself. If you have people working for your business,
should you classify them as employees or as independent contractors?
Smart Business
What’s new on the home front?
Existing home sales fell to a four-year low in May, with the median home price declining for the 10th straight
month.
Marriage? Divorce? Review your finances after a change in marital status
If you are getting married, divorced, or have recently lost your spouse, you certainly have a lot on your mind.
While you may feel overwhelmed with all there is to do, it is important not to overlook financial matters when
your marital status changes. Some actions you may want to consider include the following:
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Small Business Tax Act is signed by President Bush
President Bush signed the Small Business and Work Opportunity Tax Act on May 25, 2007. This law is part of a larger
bill that provides funds for the troops and increases the federal minimum wage over a two-year period to $7.25.
Act soon to benefit from this new IRA charitable donation option
A recent change in the charitable contribution rules provides a potential tax planning opportunity involving your
individual retirement account. If you’re 70½ or older, you can make contributions of up to $100,000 directly
from your IRA to a qualified charity.
New Business
Age 50-plus is fastest growing group of new business owners
According to the Small Business Administration, the fastest-growing category of new entrepreneurs are people aged
50 to 62. About half of all small business owners are age 50 or older.
Do a midyear review of your business tax planning
1. Establish a retirement plan if you don’t already have one. Examining the choices now gives you time to select
the best plan for your business and to get the paperwork completed. Then you’ll be set to make contributions as
your cash flow allows — and to take the deduction on your 2007 tax return.
Smart Business
New survey shows most have no will
A recent survey conducted for the legal profession by Harris Interactive showed that the majority of Americans
do not have a will.
Protect yourself from identity theft and scams
Scams are everywhere. However, identity theft and its evil twin, phishing, have become major problems. Strictly,
identity theft occurs when someone literally steals your identity. They set up bank accounts, take out credit cards,
and borrow money in your name.
New Business
IRS announces 2007 vehicle deprecation limits
The IRS has issued the depreciation limits for business cars first placed in service in 2007. For passenger
cars, the limits are —
How to put the right price on your products
In business, making pricing decisions is always tough. At times you may be tempted to cut prices hoping to
generate higher sales volume. But sometimes that just produces lower margins on a low volume.
Smart Business
New rules on inheriting a 401(k)
For surviving spouses, inheriting a 401(k) is relatively painless since the 401(k) can be rolled over into
an IRA in the spouse’s name. For others, however, inheriting a 401(k) plan can trigger significant tax. That is,
until the passing of the Pension Protection Act of 2006. Now, nonspouses may get a break as well.
Stocks: Deciding when to sell is as critical as deciding when to buy
If you are serious about managing your stocks, it's important to have a selling strategy. What is yours? Investors
tend to give a lot of thought to the buying decision, but little consideration to the sell decision. Here are some
situations that may indicate it's the right time to sell.
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
IRS warns taxpayers about phony e-mails
The IRS is warning taxpayers about Internet scams and fraudulent e-mails that appear to be from the IRS. The
e-mails direct the taxpayer to a Web link that looks like the genuine IRS site and requests information such as
the individual' s social security number and bank account or credit card numbers.
Time for midyear planning
Filing your 2006 tax return might signal the official end of 2006, but for tax-savvy individuals, it' s also
the kick-off for saving taxes in 2007. Getting an early start on your 2007 tax planning will help you take maximum
advantage of the latest tax breaks, inflation adjustments, and retirement options.
New Business
Wellness programs are in the news again
With ever-increasing health care costs, businesses are taking another look at wellness programs for their employees.
Typically, a wellness program pays employees for engaging in healthy activities - exercising, losing weight, quitting
smoking, for example.
Avoid the #1 mistake when buying a business
There are many mistakes one can make in buying a business. But if there's any one which could be given top
billing, it would be buying too quickly.
Smart Business
Stamps will cost more beginning May 14
The U.S. Postal Service announced that the cost of mailing a first-class letter will go up 2 cents to 41 cents,
effective May 14.
Use compounding to build your wealth
There are several ways to earn income on investments, but compounding may be your most reliable path to wealth.
If you put $1,000 under your mattress, it will still be $1,000 a year later, but it probably will buy you a little
less due to inflation.
April
New $5,000 penalty for making "frivolous" tax claims
In a March 2007 notice, the IRS specified forty tax positions that will be treated as frivolous. Taxpayers
who make these arguments in order to keep from paying taxes will be subject to a new $5,000 penalty.
Stop lending money to the IRS
Will you be among the thousands of taxpayers who get a big tax refund this year? While most Americans happily
accept their tax refund checks, smart taxpayers understand that refunds actually cost them money. Here’s why:
New Business
Tax refund is good news. Now the bad news. . .
Businesses are being reminded that the telephone tax refund they received this year may be taxable income
on their 2007 income tax returns.
Your business can choose a retirement plan that fits
Mention the words “employee benefits” to a small business owner and you might hear the groans of someone burned
by sky-rocketing costs and mind-numbing complexity.
Smart Business
Recent scams target debit cards
According to the Federal Reserve, debit card use has now surpassed credit card use. Unfortunately, debit card
fraud has also grown, reaching $662 million in 2005, a 21% increase from the previous year.
Don’t overlook renters insurance
Do you rent an apartment or condo? If so, do you have renters insurance to protect your belongings and to cover
you against liability claims? A surprising number of renters don’t bother with insurance. Some assume they’re covered
by their landlord’s policy. Wrong!
March
IRS gets tough on abusive telephone tax refund claims
Special IRS agents served search warrants to tax preparers in several cities, seeking evidence of fraudulent
claims for refunds of excise taxes paid on long-distance telephone service.
Smart strategies for your tax refund
Are you eagerly awaiting a 2006 tax refund? Hopefully you’ve given some thought to how you can put the money
to good use. While “good use” may be in the eye of the beholder, you should really consider the following:
New Business
Government survey gives wage and benefit costs
As you review your company’s outlay for employee wages and benefits, you may find it useful to compare your
spending with national averages.
Five things every business owner should do this year
If you own or manage your own business, you’re probably busy monitoring operations and dealing with everyday
problems. But there are a few things that you should make time to do every year. These are important for your longer
term business and personal success.
Smart Business
2007 brings changes to 401(k) plans
Last year's pension law made some important changes to 401(k) plans, changes you should pay attention to if
this type of retirement savings plan is available to you.
Avoid these retirement blunders
If your goal is to enjoy a long and financially secure retirement, try to avoid these four major blunders.
February
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Last-minute law extends tax breaks
Just before adjourning for 2006, Congress passed the Tax Relief and Health Care Act of 2006. President Bush
signed the bill into law on December 20, 2006. The law retroactively reinstates a number of tax breaks that had
expired at the end of 2005, making them effective for 2006 and 2007. Here’s a brief overview of what was extended.
Take these deductions even when you don't itemize
If you’ve given up itemizing deductions, you’re not alone. These days over half of all taxpayers find they’re better
off using the standard deduction. But even if you take the standard deduction, you can also deduct some individual
expenses. Consider the following.
New Business
Bring your corporate minutes up to date
The start of a new year is a good time to take care of a few “housekeeping” details in your business. One of
those details, and it’s a very important one, is making certain that your corporate minutes are complete, accurate,
and up to date.
Can a business grow too fast?
Most businesses hope to grow. They consider themselves successful if growth is taking place, and the faster
the growth the better. Can too much business growth be bad for a company? It can be if the company grows too rapidly
without adequate planning.
Smart Business
You can split your tax refund three ways
In past years, you could ask the IRS to deposit your income tax refund into your bank account. For your 2006
tax refund, you'll be able to have the IRS split your refund and make deposits in up to three accounts at different
financial institutions.
Be aware of the gender gap in retirement savings
Do women need to save more for their retirement than men?
January
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
IRS has 95,746 undeliverable refunds
Are you still waiting for your tax refund? If so, you may be one of the 95,746 taxpayers to whom the IRS has
been unable to deliver a refund check. The refunds total $92.2 million.
Your 2007 tax checklist
Gather the tax documents needed for filing your 2006 tax return — the W-2s, 1099s, and other information forms
you receive from your employer, broker, bank, etc. If you detect errors, notify the sender and ask for a corrected
copy.
New Business
Formula for telephone tax refund is announced by the IRS
After losing several court challenges to charging an excise tax on long-distance telephone service, the IRS
is no longer assessing the tax. In May of 2006, the IRS announced that it will refund the tax paid by individuals,
businesses, and tax-exempt organizations during the 41 months from March 2003 through July 2006.
Build relationships with your customers
Customers are just like you. They have wants, desires, and needs. They appreciate being valued, respected,
and treated fairly. Are you making the most of the potential relationship?
Smart Business
Mutual fund investments hit $10 trillion mark
According to the Investment Company Institute, investment in mutual funds hit the $10 trillion mark in October
2006, just about the time the U.S. population hit the 300,000,000 mark
What you need to know in order to simplify your recordkeeping
Deciding which records to keep and for how long can be a confusing process. A well-organized system will help
you retain important paperwork and minimize the clutter. Use legal requirements and your common sense as guidelines
for how long to hold on to records.
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