Federal Tax Watch Special Edition 2009

Mid-Year Tax Planning for 2008

Federal Tax Watch

General Business/Management Strategies

How to discuss employee behavior problems
Managers are often paralyzed when faced with an employee with a behavioral quirk that is disrupting the workplace. Behavioral problems may negatively affect a person’s relationships with co-workers -– and possibly with customers –- and could ultimately hurt productivity.

Temporary employees may be the answer to your staffing needs
While temporary and contract employees have been used for years, the use of temps nearly tripled in the last decade –from 1.28 million in 1990 to 3.42 million in 2000, according to the U.S. Department of Labor Bureau of Labor Statistics.

Businesses offer help to those hit by hard times
In these extraordinary economic times, a little kindness goes a long way. That’s what experts say about the good deeds they are seeing in response to the growing number of unemployed in the United States. Across the nation, individuals are reaching out to those who have been fired, laid off or are otherwise without a job because of the financial meltdown.

Family Business/Succession

Let employees know your fraud policies
Should you let employees know when fraud prevention tactics are put in place? The simple answer is a resounding “yes.” Think of your fraud prevention policies like a patrol car policing your neighborhood. Officers don’t patrol because they are hoping to catch criminals in the act. They patrol so that their presence will deter crime.

Check potential employees for 'EQ' as well as IQ
Have you ever hired someone who was highly intelligent but didn’t pan out as an employee? People may have great educational credentials and be clever and articulate. Unfortunately, sometimes they can’t get organized, are easily flustered, don’t enjoy the respect of co-workers or suffer any number of other shortcomings. One likely explanation is that an employee can possess a high degree of traditional cognitive intelligence, which we know as IQ, but lack in emotional intelligence, sometimes called EQ.

Four ways to keep employees happy
With the tight economy, you may be looking for ways to motivate your employees that involve little or no cash. You’ll be happy to know that an employee survey recently conducted by George Mason University showed that, when it comes to motivation, cash was not king. In fact, it came in at a distant fifth place.

Manufacturing

Jobs will open as Baby Boomers retire
Based on statistics, at least 83 million Baby Boomers will begin retiring in the next three to five years. While many are delaying retirement as their savings have diminished in the current economy, millions will be retiring soon. This is predicted to have serious consequences in the labor force, leaving businesses with fewer people to fill positions than they have positions available.

Cost segregation worth a look
It is probably one of the most effective – and misunderstood – tax-saving tools in your accountant’s toolbox. It is a cost segregation study. And tax experts generally agree that these studies, which affect both rental residential and commercial properties, are worth the time, effort and cost typically associated with them. But before you pick up the phone to call your accountant, you should know that cost segregation studies are not for every business, and circumstances vary in which a business benefits from this unique money-saving analysis.

R&D tax credit still available, may save you tax
The Research and Development (R&D) tax credit is like the mythological phoenix. It regularly expires, only to be resurrected over and over again. The credit came into being in 1981. For more than a quarter of a century, this tax benefit has eluded many small and mid-sized businesses. For one thing, Congress has never found the budgetary resources to make the credit permanent. The perennial short-term nature of the credit makes it difficult for some businesses to invest in the record-keeping resources necessary to support the complex credit calculations. But after more than 30 years, perhaps it is time for your business to consider the fact that the R&D credit is as permanent as any other tax provision.

Construction

Businesses also benefit from new law
Most of the press coverage of the American Recovery and Reinvestment Act - officially named the American Recovery and Investment Act - focused on individual taxpayers. But, several key provisions of the new law bestow tax benefits on businesses, particularly smaller businesses. Businesses purchasing equipment, vehicles and other business assets may claim an almost immediate tax write-off for the cost. If you need to purchase additional assets of almost any type for your construction business, there is no better time than now.

'Shovel ready' companies stand to do well in 2009
Much of the federal government’s effort to stimulate economic recovery is cast in a sense of urgency. While the government is committing billions of dollars to projects designed to increase employment, restart the banking system, create a new energy policy and reform the healthcare system, all of these plans are being pursued with a need to get something started now and work out the details later. It is clear that many of these efforts will involve construction projects. There should be numerous opportunities for those in the construction industry who have the know-how, the financing and the skilled workers ready to capitalize on the opportunities that will present themselves over the coming months.

Report details common real estate crimes
Financial crimes tend to follow happenings in the real estate industry, according to the Financial Crimes enforcement network (FinCEN). FinCEN is a U.S. Department of Treasury agency that works to enhance U.S. national security, deter and detect criminal activity and safeguard financial systems from abuse. One in four suspicious activity reports filed concern actions from the real estate industry – from rehabbers to builders to contractors.

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