Susan Spitz, Certified Coach

Had lunch this week with Susan Spitz of Focal Point. Focal Point is Powered by world-reknowned Brian Tracy, FocalPoint is the only Brian Tracy certified coaching program in the metro area. Mid-sized or small business owners and executives can double their productivity and profits while increasing their time off. Individual or group coaching, or combination thereof. Average ROI for exec coaching is 500%! Other offerings include speaking, training and consulting in these areas: sales, multi-cultural diversity, multiple generations in the workforce, personal productivity, strategic planning, goal-setting, and time management.

Susan's specialites are effective questioning, listening and motivating. Speaker, meeting facilitator, workshop designer, creation of multi-cultural direct response ads, hiring and testing, training, fluency in French, conversant in Spanish.

To contact Susan for more information check out her website at www.focalpointcoaching.com or email her at sspitz@focalpointccoaching.com

Just had a great meeting with Debi Enders with Commerce Bank. She has a great remote deposit product for companies that take checks but are spending a lot of time driving to the bank everyday. She also has several great bank products for small businesses. If you would like to learn more about remote deposit or the other products Commerce Bank has to offer email Debi at debi.enders@commercebank.com or call her at (636) 949-8407. Learn more at Favazza CPA St. Louis

IRS Warning Taxpayers About New Email Scams

If you have an email account, you know about all the scam emails you get. Scammers are getting braver and using the IRS name in their new tactics.

IRS Warning Taxpayers About New Email Scams

The IRS has begun warning taxpayers that it is seeing a surge in tax scam emails. Many of the emails even have the hubris to use the IRS name! Brave souls, indeed. Regardless, the scams seem to fall in the area of identity theft through phishing tactics.

First and foremost, you should understand that the IRS does NOT send emails to taxpayers. Never, never, never! If you get an email from the IRS, it is a fake. Unconditionally! Do not respond to it under any circumstances. Do not click links in the body of the email. Take one action and one action only delete it!

Since the turn of the year, the IRS has identified 99 new email scams targeted at taxpayers. All of the scams are aimed at bilking you out of your private information. Most try to do this by claiming your must provide information or your will not receive your tax refund. In some cases, the fake emails threaten you with an audit. Again, this is all false information.

Many people fall victim to the IRS scam emails because they click through to the site linked in the email. There, they find a site that appears for all intensive purposes to be the one published by the IRS. Make no mistake this means nothing. Anyone can copy and republish a site. Yes, even the site of the IRS. It is pretty scary when you think about it. Best Buy, in fact, had major problems with this for some time.

So, where are these scammers? It should come as no surprise that few in the boundaries of the United States would have the nerve to try this. Instead, the IRS has tracked most of the scamming emails to other countries, but not necessarily the usual suspects. The countries include England, Italy, Japan, Germany, Australia and Singapore. Usual suspects include China, Aruba, Mexico, Indonesia and Argentina. Surprisingly, only a few have originated from the scam mecca of Nigeria.

The best way to beat scammers is to know the facts. The IRS does not communicate in any way with taxpayers by email. If you get an email purportedly from the IRS, it is a fake. If you have a nagging doubt, call the agency to find out if anything is up. Otherwise, delete that email!

Important Tax Deadline Coming the 15th

What went through your head when you read this email's subject line? Something like "wait a minute, April 15 was six weeks ago?"

It's true that the April 15 tax filing deadline has passed. But the sad truth is that taxes are due every day you earn income. And if you make quarterly estimated tax payments, the next one is due on -- you guessed it -- June 15th. So this email's subject line holds true, even though April 15 has passed.

Tax deadlines are even worse if you get a paycheck. If that's the case, April 15 comes 12, 24, or 26 times a year! And withholding is the dirty little secret to making today's tax system work. That's because when your employer withholds tax, you don't actually write the checks for the tax you pay. Withholding saves time, eliminates paperwork, collects taxes regularly and timely, and verifies that you report all your wages. But it also takes the sting out of writing that tax check yourself!

What can you do? The best advice is to review your withholding and estimated tax payments any time your tax picture changes. (Employers have to make new W-4s effective by the start of the first payroll period ending on or after the 30th day after you submit your form.) Do this as soon as possible if:

You get married or divorced
You have a baby (or adopt a child)
You or your spouse takes a new job (or one of you loses a job)
You or your spouse gets a raise
You buy or sell a house
You sell appreciated property

If you own your own business, here's a trick you can consider for deferring payment until as late as possible. Withheld taxes are treated as paid equally throughout the year, while estimated taxes are credited when they're actually paid. If you operate your business as a corporation, you can draw income through the year in the form of loans, then convert it into income (and withhold the resulting tax) in a single lump sum at the end of the year.

As always, call us with any questions or concerns. You don't have to wait until April 15th to save taxes. In fact, April 15th is usually too late. So call us now for the proactive planning that gives you the savings you really want!

Food for Thought

Most tax disputes are resolved directly with the IRS or in Tax Court, and very few make it to "real" courts. When they do, billions of dollars can turn on the decision.

Sometimes, though, tax litigation turns on less profound issues.

A British court just confronted one such instance when it ruled that Pringles are potato chips.
You may not like Pringles yourself -- but you've certainly tried the uniformly-shaped chips from the tube-shaped can. Pringles start life as baked dough, with just 42% actual potato content.

They come packed in tubular can with foil-lined interior and resealable plastic cap.
That packaging is so distinctive that when its inventor died, his children honored his
wishes to actually bury his cremated ashes in one of those cans!

The issue reached court because Britain levies a 15% value-added tax on "products made from the potato, or from potato flour, or from potato starch." The tax naturally makes potato chips more expensive. So Proctor & Gamble, the chips' manufacturer, argued that Pringles don't look like chips, don't feel like chips, and don't taste like chips.

A lower court agreed with Proctor & Gamble. However, a Court of Appeals panel ruled last week that it wasn't the lower court's job to look into scientific or technical questions about the chips' composition, and that a child could give a "more relevant and sensible answer" than a food scientist. The court's decision could cost Pringles $31 million in tax per year.

This Memorial Day weekend marks the unofficial start of "summer." If you're like most clients, you'll spend your share of time around picnic tables loaded with snacks. Don't waste too much time crying for Pringles. But let this story serve as a lesson in just how far "tax planning" reaches into all of our lives. And don't be afraid to let us help you navigate your way through whatever tax questions you have!

Obama's New Tax Credit

Most of you have heard that under the Obama Administration's American Recovery and Reinvestment Act you will be receiving a "Making Work Pay" tax credit. But what does this actually mean to you? When can you expect to receive the money?

In 2009 and 2010, the "Making Work Pay" provision of the American Recovery and Reinvestment Act will provide a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.

Note: This tax credit is calculated at a rate of 6.2 percent of earned income and will phase out for taxpayers with modified adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly.

For people who receive a paycheck and are subject to withholding, the credit is typically handled by their employers through automated withholding changes. These changes needed to begin by April 1, 2009 and may result in an increase in take-home pay. The amount of the credit will be computed on the employee's 2009 income tax return filed in 2010. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return.

It is not necessary to submit a Form W-4 to get the automatic withholding change. However, an employee with multiple jobs or married couples whose combined incomes place them in a higher tax bracket may choose to submit a revised W-4 to ensure enough withholding is held to cover the tax for his or her combined income.

If you have questions about the Making Work Pay provision, call us at (636) 916-1010.

Summer Entertainment Deductions

Summer's almost here, and you're probably looking forward to some summer entertaining. So today we'll review the rules for making the most of your summer fun expenses.
Meals and entertainment you host in the course of your business are deductible if they're directly related to the active conduct of your business or they take place directly before or after a substantial, bona fide discussion directly related to the active conduct of your business. That means, clients, customers, or patients; prospective clients, customers or patients; referral sources; and other business relationships (vendors, professional colleagues, etc.).
The general rule is that you can deduct 50% of most meals. Specific deductions include meals, drinks, taxes and tips. Now for the fine print:
You'll need a diary, day planner, or similar log to verify your deductions. IRS Publication 463 directs you to record the cost of the meal, date of the meal, establishment where the meal takes place, the business purpose for the expense (or business benefit you gain or expect to gain from the meal), and your business relationship with your guest.
You'll need receipts for expenses over $75. (Many clients mistakenly think they have to keep receipts for expenses over $25.) Credit card statements work if you corroborate them by recording the business purpose of the expense in your business diary.
You can't deduct meals with your spouse unless you're traveling together for business. However, you can include the cost of a spouse or other "closely connected" person (such as children or parents) if your guest brings their spouse.
Too many clients forget the cost of entertaining at home! You can deduct costs for small gatherings at your home under the same rules that apply when you go out to eat. If you invite more than 12 guests, you can deduct "reasonable" costs if your primary purpose is business. To prove your primary purpose is business, include your employees; let your guests know your business purpose; and discuss or display your product or service at the event.
Expenses for sporting and theatrical events, golf and boating outings, and similar entertainment are also 50% deductible if they take place directly before or after a substantial, bona fide discussion directly related to the active conduct of your business. You can deduct the face value of tickets (but not a scalper's premium) to sporting and theatrical events, food and beverages, travel and parking expenses, taxes, and tips.
Meal and entertainment expenses are easy to overlook -- especially when it comes to entertaining at home. But over time, those little expenses add up. Don't lose out on those easy savings!