Monthly Tax Tips
August 2008
IRS changes extension period for some types of returns
The IRS recently changed the extended due date for certain types of business and fiduciary tax returns. The purpose of the change is to help individual taxpayers better meet their filing obligations.
Federal Tax Watch
Tax planning is time-sensitive: It may be time to review your plan
The current sagging interest rates create opportunities for favorable tax planning results. Each month, the IRS establishes interest rates that are used for a variety of purposes. Based on the premise that investors earn only a rate of return measured by current interest rates, taxpayers may transfer wealth from one generation to the next without the imposition of significant gift or estate tax.
Surviving spouse home sale exclusion liberalized
Before a change in the law late in 2007, an exclusion of up to $500,000 of gain on the sale of a principal residence was available only to taxpayers who filed a joint return and met certain other tests. Under the change in the law, effective in 2008, the surviving spouse now may use the full $500,000 exclusion as long as the sale occurs not later than two years after the date of death of the other spouse.
Electronic tax payment offers many advantages
The Electronic Federal Tax Payment System is a free system used by both businesses and individuals to pay their federal tax liability. While many employers hire an outside payroll company to take care of their payroll tax obligations, including the remittance of payroll taxes, it makes sense to enroll in the electronic system. When the employer enrolls, it should obtain a separate personal identification number (PIN). The payroll company may have a contractual obligation to make the payroll taxes on behalf of the business. However, it is ultimately the employer who is responsible to make sure that all payroll taxes are paid in the correct amount and in a timely manner.
Kiddie tax changes warrant re-examining portfolio
Until recently, the so-called "kiddie" tax was applicable to minors under age 14. Recent legislation expanded the scope of this tax for 2008 income tax returns to children under age 19, or under age 24 if a full-time student. The tax is assessed at the parents' tax rate on unearned income in excess of $1,800.
Mid-Year Tax Planning for 2006
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General Business/Management Strategies
Consumer-directed health plans: Are they right for your company?
CDHPs are an attempt to make the system more rational by giving consumers a financial stake in their healthcare decision making as well as giving them tools to make good healthcare choices to stay healthier in the first place. The plans are currently most popular among large employers, but 10 percent of employees of small enterprises (those with under 200 employees) are enrolled in CDHPs, and that number is growing for all size employers.
Workplace romance: Do you have a policy?
What better place than work to meet a potential romantic partner – someone with similar values and interests that you get to know slowly over time. We all know happy couples who met at work. But when handled poorly, workplace romance can cause serious problems for the whole organization.
Investigating a Fraud: Verbal – and nonverbal – clues point to guilt
A properly planned interview can yield much more than simply learning about a subject’s background information.
Techniques such as behavior analysis can be used to determine whether someone is being truthful or deceitful.
By incorporating behavior-provoking questions during the session, the interviewer can observe and analyze verbal, as well as nonverbal, responses.
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