Tax and Business Alert - July 2014



Welcome to this month's edition of the Tax and Business Alert. Our goal is to provide you with current articles on various tax and business topics. The articles are intended to keep you up to date on trends and issues that may impact your business and personal financial affairs. Please contact us if you have questions about any of the issues discussed.

DO YOU NEED TO ADJUST YOUR FEDERAL INCOME TAX WITHHOLDING AMOUNT?
With over half the year already gone, now is a good time for taxpayers to check to see if they are on track to have about the right amount of federal income tax withheld from their paychecks for 2014. Underpaying taxes can result in a penalty, and overpaying is basically making an interest-free loan to the government. This article points to a location on the IRS website that can help taxpayers make this calculation. Read more...

COMPARING TAXABLE VS. TAX-EXEMPT INVESTMENT YIELDS
With rising tax rates, some taxpayers are considering allocating at least a portion of their investments to tax-exempt investments. When comparing taxable investments to tax-exempt investments, one important factor is the after-tax return. This article offers a fairly straightforward formula that can be used to compare yields for taxable vs. tax-exempt investments if one's income tax bracket is known. Read more...

TAX CALENDAR
This article lists a number of key tax reporting deadlines through September. Read more...

GETTING AROUND THE $25 DEDUCTION LIMIT FOR BUSINESS GIFTS
Sometimes doing business entails making gifts to customers, clients, employees, and other business entities and associates. For numerous reasons, such gifts often make perfect business sense. Unfortunately, the tax rules limit the deduction for business gifts to a less-than-generous $25 per person per year - a limitation that hasn't been raised in decades. But this article offers a quick rundown of some major exceptions to the $25 limit. Read more...

IRS PHONE SCAM WARNING
The IRS has issued a warning about a pervasive phone scam. The Treasury Inspector General for Tax Administration (TIGTA) called it the largest scam of its kind. In it, the thief poses as an IRS agent and makes an unsolicited call to the target, telling the victim that he or she owes taxes to the IRS. The caller demands that the victim pay the money immediately with a preloaded debit card or wire transfer, and often threatens the victim with arrest, deportation, or suspension of a business or driver's license. This article explains tactics that these scammers use and tactics the IRS does not use, and explains what to do in response to such a call. Read more...

This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. The information contained in this newsletter was not intended or written to be used and cannot be used for the purpose of (1) avoiding tax-related penalties prescribed by the Internal Revenue Code or (2) promoting or marketing any tax-related matter addressed herein. © 2014