Tax and Business Alert - August 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.

2015 HSA AMOUNTS
This article explains the benefits of a Health Savings Account (HSA) and how this vehicle differs from a Flexible Spending Account. It also lists the 2015 contribution limits for an HSA. Read more...

CORPORATE ANNUAL MEETINGS ARE IMPORTANT
Although most people view the requirement of an annual Board of Directors meeting as a necessary evil, it doesn't have to be a waste of time. For example, in addition to being a first step in making sure the corporation is respected as a separate legal entity, an annual meeting can be used as an important tool to support a company's tax positions. As this article explains, a well-drafted set of minutes outlining the officers' responsibilities, skills, and experience levels can significantly reduce the risk of an IRS challenge, while providing documentation to support loans and other actions the Board may have taken. Read more...

DIVIDING IRAS TAX-FREE IN DIVORCE
Generally, transfers of property, including cash, between divorcing spouses are considered tax-free gifts between the spouses. However, this rule does not apply to transfers of balances in IRAs. If an IRA owner withdraws funds from his or her IRA and gives it to his or her spouse, the withdrawal is taxable to the IRA owner and tax-free to the receiving spouse. Fortunately, there is an important exception to this rule - transferring an individual's interest in an IRA to a spouse or former spouse pursuant to a divorce decree or separate maintenance agreement is not taxable to either spouse. This article offers an example of how it works. Read more...

KEEP YOUR RECORDS SAFE IN CASE DISASTER STRIKES
Major events like hurricanes, tornadoes and fires can strike at any time. But a person can help make recovery easier by keeping their tax and financial records safe. This article looks at three basic steps the IRS suggests to prepare for a disaster. Read more...

SOCIAL SECURITY STATEMENTS AVAILABLE ONLINE
This article explains how to create an account on the Social Security website in order to see a statement that estimates one's benefits and provides other useful information. Read more...

WHAT YOU NEED TO KNOW ABOUT REQUIRED HEALTH INSURANCE COVERAGE FOR 2014
Beginning in 2014, the individual shared responsibility provision of the Affordable Care Act (ACA) requires Americans to have qualifying health insurance (called minimum essential coverage), have an exemption, or pay a shared responsibility penalty with their 2014 individual income tax return, Form 1040. This article defines "minimum essential coverage" and discusses exemptions and penalties. 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