December
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Lean-burn vehicle credit
The IRS recently announced that certain advanced lean-burn technology vehicles will qualify for the alternative
motor vehicle tax credit. Previously, only hybrid, fuel cell, and alternative fuel vehicles qualified.
Will your gifts bring a tax surprise?
When it comes to gift giving, surprises are part of the pleasure. When it comes to gift taxes, surprises are the
last thing you want. To help protect you from the unexpected, here are answers to common questions about federal
gift tax law.
New Business
IRS releases new per diem travel rates
If you're in business, you probably know expenses for business travel, meals, and entertainment must meet strict
tests in order to be deductible. In addition, you must have records to substantiate the expenses.
Employee embezzlement: Are you taking steps to prevent theft in your business?
Employee embezzlement and other forms of theft often follow a predictable pattern. First, the employee is faced
with significant external pressures such as high gambling debts, mounting medical bills, or substance abuse problems.
.Smart Business
HSA limits increase for 2009
Health Savings Accounts (HSAs) allow taxpayers with high-deductible health insurance to set aside tax-deductible
dollars that can be used tax-free to pay unreimbursed medical expenses. The amount that can be contributed each
year to an HSA is adjusted annually for inflation.
Give financial gifts this holiday season
When planning gifts for children on your holiday list, you might want to think beyond the traditional retail offerings.
Consider financial gifts that can bestow benefits for many years to come.
November
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
New rescue plan extends expired tax breaks
President Bush signed the Emergency Economic Stabilization Act of 2008 into law on October 3, hoping this plan
would bring stability to the financial markets. The new legislation includes a wide range of provisions affecting
financial institutions and individuals.
Act fast to identify ways to reduce your 2008 tax bill
Year-end is fast approaching, but it's not too late to reduce your 2008 taxes. Consider the following possibilities
for actions you can take to cut your 2008 tax liability.
New Business
FUTA surtax extended for a year
The Federal Unemployment Tax Act (FUTA) imposes a 6.2% tax on the first $7,000 of wages paid annually to employees.
Years ago, a .2% surtax was added as a "temporary" measure; this "temporary" surtax was set
to expire after 2008.
Low-cost benefits can boost employee morale
Fringe benefits are important to your employees. Wage levels often don't differ much between companies, so the
fringes you offer can be an important factor in hiring and retaining workers.
.Smart Business
Social security taxable wage base will increase in 2009
The amount of wages subject to social security tax will increase next year to $106,800, up from $102,000 for 2008.
The Social Security Administration estimates that 11 million taxpayers will pay higher taxes as a result.
Got mutual funds? Pay attention to year-end tax issues
If you're among the millions of Americans who invest in mutual funds, you need to be aware of the year-end issues
that could affect your 2008 tax bill.
October
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Year-end tax planning is essential this year
As Congress works to settle the financial markets, its attention is diverted from tax issues. However, you need
to keep your eye on how any tax changes Congress makes before year-end could affect your tax situation for 2008.
You may qualify for a tax break when you sell vacant land
You probably know that you can exclude up to $250,000 of gain ($500,000 for most joint filers) when you sell your
principal residence. IRS regulations may now allow you to apply this gain exclusion when you sell vacant land that
is adjacent to your home.
New Business
Partnership filing extensions shortened next year
Partnerships are "pass-through" entities that file Form 1065 reporting partnership income but paying
no income tax. Instead the income "passes through" to partners who pay tax on their share of the partnership's
income on their individual tax returns.
S corporations are now facing increased scrutiny from the IRS
According to the Journal of Accountancy, the S corporation is the most popular form of business ownership in the
country, swelling to around four million entities. The primary reason for their growth is that S corporations avoid
the double taxation that applies to regular C corporations while still offering protection from personal liability.
.Smart Business
Review your accounts for FDIC coverage
In today's financial environment, it's wise to review your various accounts to see if you have the protection you
think you have.
Teach your children about money
If you haven't already started teaching your children about money and finances, you're neglecting an important
part of their education. Consider these suggestions:
Septermber
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Stimulus payment deadline approaching
The IRS has issued billions of dollars in tax rebate checks as authorized by the Economic Stimulus Act passed in
February of this year.
Lending money to family members could be a taxing situation
Lending to family members probably dates back to the invention of money. The IRS entered the mix a great deal later,
but it now looms large in the equation. Tax problems can arise when you first lend money, as you're being repaid,
or if you're not repaid. The issues usually involve imputed income, gift tax, or bad debts.
New Business
The clock is ticking on this tax break
Don't let time slip away and lose out on a big 2008 tax break for your business.
How to spot problem accounts early
If you extend credit to your customers, some losses are inevitable. So unless you are willing to forgo the credit
part of your sales, you have to figure out ways to control your bad debt losses
.Smart Business
401(k) debit cards: Weigh the pros and cons
If your employer's 401(k) plan offers the 401(k) debit card feature, don't sign up without a serious look at what
you're getting into.
Long-term care insurance: What you need to know before you buy
Mention long-term care insurance in a crowd, and you'll likely receive a collective groan. Lacking the immediacy
of health insurance and the certainty of life insurance, many people find it difficult to move this financial planning
issue to the top of their to-do list. And when they finally do, it's often too late.
August
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Tax changes in three new laws
Congress has passed three laws that contain some tax provisions. Here's a quick overview.
Summer is a good time for retirement tax planning
When it comes to your retirement, three areas are hot for summertime tax planning: establishing a plan, making
contributions to existing plans, and taking distributions.
New Business
Federal minimum wage increases again
The federal minimum wage increased from $5.85 an hour to $6.55 an hour, effective July 24, 2008.
IRS audit focus is on worker classification
One of the biggest headaches for business owners is the classification of their workers. If the wrong choice is
made, the IRS could step in and assess additional taxes, penalties, and interest.
Smart Business
New mortgage rules set by the Fed
Seeking to provide more protection for consumers against predatory lending practices, the Federal Reserve Board
has issued new rules on home mortgage loans. The rules prohibit lenders from making loans to borrowers without
verifying ability to repay, limit prepayment penalties, require more disclosure in advertising, and set rules to
keep lenders and brokers from seeking inaccurate real estate valuations from appraisers.
Are your bank accounts insured?
How safe are your bank accounts? You probably rely on FDIC (Federal Deposit Insurance Corporation) insurance to
protect your money if your bank fails. But this might be a good time to check your FDIC coverage for several reasons.
July
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
IRS audits more returns
The IRS recently released data showing an increase in taxpayer audits during fiscal year 2007 (which ended September
30, 2007).
Summer tax moves
* Your vacation home. If you have vacation/rental property, you might increase your tax deductions by adjusting
the number of days you use your vacation home.
New Business
IRS raises mileage rates
With gas prices soaring, the IRS has responded to numerous requests to increase the standard mileage deduction
for business driving.
Turn a complaint into an opportunity
Nobody in business wants an unhappy customer, but when a customer complains, think of it as three opportunities
in one.
Smart Business
Don't put your 401(k) on automatic pilot
Automatically enrolling new employees into a companys 40l(k) plan was made easier by the Pension Protection Act
of 2006. A survey of 5,490 plans by Plansponsor, a Connecticut research firm, revealed that about 25% of companies
now have automatic enrollment in their plans.
Reverse Mortgages: Need retirement income?
If you own your home and are age 62 or older, one option to increase your retirement income could be a reverse
mortgage
JuneMajor Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
IRS issues political activity reminder to tax-exempts
Every presidential election year, the IRS issues a reminder to tax-exempt organizations, such as churches and charities,
not to engage in prohibited political activities.
Vacation home planning can save your tax deduction
You can enjoy a vacation home and cut your taxes - with some careful planning and a little discipline.
New Business
It's time for midyear business planning
It's time to do a midyear review of your business tax planning. Here are six ideas to consider.
Customer Service: Does your business just say it or do it?
Many companies know how to SAY customer service; they just don't know how to DO customer service. Yet, good customer
service leads to repeat sales and referrals, which lead to higher revenues and profits. The result is a stronger,
more secure business.
Smart Business
Are children priceless?
Parents generally consider their children to be priceless, but one group has put a price tag on children.
Think before breaking your 401(k) nest egg
With today's shrinking home values, rising adjustable mortgage rates, and tighter loan standards, many people are
turning to their 401(k) plans as sources of needed cash. But early withdrawals can exact a heavy price, and even
borrowing from a 401(k) can have adverse consequences.
May
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Tax scam warnings
The Justice Department's Tax Division recently announced the creation of a national "tax defier" initiative
to "investigate, pursue, and, where appropriate, prosecute those who take concrete action to defy and deny
the fundamental validity of the tax laws.
You may be able to find tax-saving options in new 2008 rules
The tax law seems to change year-to-year. This year is certainly no exception. With careful planning, you can take
advantage of new tax-saving opportunities in 2008 while avoiding potential pitfalls. Here's a summary of several
key provisions.
New Business
Vehicle depreciation limits
The IRS has issued the depreciation limits for business vehicles first placed in service in 2008. Recent legislation
allows higher limits for new vehicles that will qualify for 50% bonus depreciation.
What should you do to help your child get started in business?
Perhaps you're thinking of helping one of your children get started in business. Since the failure rate for new
businesses is high, you need to do whatever you can to increase your child's chances of success. That includes
considering three M's: motivation, money, and mentoring.
Smart Business
Put your tax refund or rebate check to good use
Will you receive a 2007 income tax refund or an economic stimulus tax rebate check? Here are some suggestions
for how to put these funds to good use.
Are you prepared for a job loss?
In today's economy, the job market is not secure. Companies are downsizing, reducing hours, or cutting salaries
to remain competitive. Losing your job or having your pay cut can be financially devastating. But there are things
you can do to protect yourself, whether your job is threatened or you're suddenly terminated.
April
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Filing a 2007 tax return is required to get rebate check
Next month, the IRS will begin sending out the tax rebate checks authorized by the Economic Stimulus Act of 2008.
The only way to receive a stimulus payment in 2008 is to file a 2007 tax return.
Act fast or you'll lose your refund
If you didn't file a tax return for the year 2004, you're not necessarily in trouble. In fact, you could be about
to lose out on a nice refund check. The IRS reports that it is holding an astonishing $1.2 billion in refunds from
the year 2004. Here's how the situation arose.
New Business
Sleepy workers are a business problem
The nonprofit National Sleep Foundation recently conducted a survey that reveals many American workers suffer from
lack of sleep. Almost a third of employees surveyed said they had become very sleepy or actually fallen asleep
on the job during the past month. 12% of those surveyed said they came to work late in the past month. 36% said
they have nodded off or fallen asleep while driving, with 26% reporting driving drowsy on the job.
Turn employees into productive team players
Do you wish your employees were more motivated and focused on driving productivity and profits for your company?
Are there ways to improve participation and tap into the unused creativity and drive of your team? Here are a few
suggestions that might help in that process.
Smart Business
Check your deposit insurance
The recent failure of Bear Stearns, the fifth largest investment bank in the U.S., may have you wondering about
the health of the banking system in general. Indeed, you may be wondering if your bank accounts are safe. Here's
a quick review of deposit insurance that may help put your mind at ease.
Do a financial review at tax time
As long as your tax and financial records are out for filing your 2007 tax return, why not take one more step and
do something positive for your financial well-being? This is the ideal time to review your financial affairs and
make any needed changes.
March
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
New economic stimulus law passes
In an attempt to boost the economy, Congress hammered out a new economic stimulus package in mid-February. The
centerpiece of the new legislation, of course, is the highly publicized tax rebate program. However, other tax
incentives targeted at the business sector were also included in the law.
Tax recordkeeping: Some tips to make it easier
Are you sometimes overwhelmed and intimidated by the prospect of keeping records for federal tax purposes? Well,
you are not alone. Here are some suggestions that should help you determine what to keep and for how long.
New Business
Cost of health insurance a major concern for businesses
The cost of health insurance is a major concern, both for employees and employers. A recent survey of approximately
3,000 companies revealed that among those with 200 or fewer employees, 61% offered health insurance in 2007. This
represents a drop from 63% in 2006.
Know the tax rules for selling online
Selling items on eBay and other online auction Web sites has become a very popular way to get rid of unwanted household
stuff, as well as a way to turn a little profit. Many users have even started full-time businesses auctioning merchandise
on the Web. But like any business venture, selling items in the virtual world has tax implications that are all
too real.
Smart Business
Reverse mortgages
If you own your home and are age 62 or older, one option to increase your retirement income could be a reverse
mortgage
Do you have these basic financial documents?
There are some basic financial arrangements that all individuals should consider making, no matter what their age
or circumstances. But if you have a family, these basic documents become essential.
February
Major Tax Deadlines
Keep up to date with important tax deadlines
What's New in Taxes
Last-minute laws provide relief for taxpayers
Congress passed two new tax laws in a flurry of year-end 2007 activity. The laws, which include an alternative
minimum tax (AMT) "patch" and mortgage relief for homeowners, will affect a wide range of taxpayers.
But other proposed tax legislation was put on the shelf, at least temporarily. Here's a brief summary of the key
changes in the two new laws.
Reminders for filing your 2007 tax return
Gather the tax documents needed for filing your 2007 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
Is it time to purchase business equipment?
As 2008 gets underway, you may be analyzing your company's need for new equipment. This may be a good year for
business equipment purchases - at least from a tax standpoint.
Turn your hobby into a business for a lower tax bill
Turning your hobby into a business could lower your tax bill. If you have a hobby that takes up a lot of time and
money, take a close look to see if it qualifies as a business. Why? Having a business instead of a hobby could
mean a lower tax bill.
Smart Business
HSA limits increase for 2008
Health Savings Accounts (HSAs) allow taxpayers with high-deductible health insurance to set aside tax-deductible
dollars that can be used tax-free to pay unreimbursed medical expenses. The amount that can be contributed each
year to an HSA is adjusted annually for inflation.
