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
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.
This article lists a number of key tax reporting deadlines through September.
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.
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.
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