Executive's Tax & Management Report articles from August 2002

Executive's Tax & Management Report archives from August 2002

It's a whole new ball game for split-dollar insurance.
August 7, 2002... As promised earlier this year, the IRS recently proposed new rules governing the tax treatment of split-dollar life insurance [Prop. Reg. 1.61-22 and 1.7872-15]. If your company offers split-dollar life insurance to you and other executives,...

Tax bite.
August 7, 2002... The hardest thing in the world to understand is the income tax.

Good news/bad news for charitable givers. (Charitable Deductions).
August 7, 2002... You can, of course, claim a deduction for charitable gifts you charge on your credit card. But a new IRS ruling deals with a different situation: When your everyday purchases on your credit card also benefit a charitable organization, what's...

Tax bill targets executive compensation. (Tax Laws In The Making).
August 7, 2002... In response to the corporate accounting scandals, the Senate Finance Committee has approved the National Employee Savings and Trust Equity Guarantee Act (S. 1971). The bill is mainly designed to protect employees' retirement plan accounts when...

Withholding check-up. (Personal Taxes).
August 7, 2002... Since our federal income tax system is a "pay-as-you-go tax," the IRS wants you to pay your tax as soon as you earn or receive taxable income. To avoid interest and penalties, you need to withhold enough money from your paycheck or pay an...

What does absenteeism cost your company? (Managing Your Business).
August 7, 2002... Direct costs associated with unscheduled absences from work rose 24 percent from 2000 to 2001, according to a survey sponsored by CCH INCORPORATED. The average per-employee cost of absenteeism jumped from $610 per year in 2000 to $755 in 2001....

Companies can offer opt-out health benefits. (Compensation & Benefits).
August 7, 2002... A cafeteria plan typically allows employees to choose from a menu of employee benefits, which are paid for with pre-tax salary reductions [IRC Sec. 125]. Employees who do not elect any benefits receive their full salaries. In other words, cash...

Tax question.
August 7, 2002... Q I refinanced my home mortgage and I had to pay $3,600 in points. Can I claim those points as a deduction on my tax return? A Points paid for refinancing generally are not deductible in full in the year they are paid. Normally, the points...

CEOs' business confidence dips, but profit expectations remain high. (Executive's Briefcase).(Brief Article)
August 7, 2002... Seventy-one percent of chief executives anticipate an improvement in economic conditions in the coming months, down from nearly 80 percent in the first quarter of this year, The Conference Board reports. In assessing conditions in their...

Succession planning--it's not just for CEOs anymore. (Executive's Briefcase).(Brief Article)
August 7, 2002... An aging baby boom population is edging toward retirement, creating large gaps in the workforce in the process, say employment experts. These demographic changes in the workplace will require more companies to adopt succession planning and...

Inadequate records knock out deductions. (Business Expenses).
August 21, 2002... Taxpayers must meet specific substantiation requirements for business deductions--or face possible penalties from the IRS. That's what one couple found out when the IRS challenged certain deductions related to their family farm business, rental...

E-filing available at no cost?
August 21, 2002... If federal officials have their way, you'll be able to file your taxes online at no cost next year. The Department of the Treasury and the Office of Management and Budget (OMB) recently proposed an agreement in which a consortium of private...

Accounting method change could increase cash flow. (Tax Procedures).
August 21, 2002... Your company may realize a significant cash flow benefit by adopting a different accounting method. The IRS recently simplified some rules surrounding accounting method changes. Now is a good time to take a fresh look at your current accounting...

Tax-favored treatment for health reimbursement plans. (Employee Benefits).
August 21, 2002... If you offer a health reimbursement arrangement (HRA) to your employees, then you might be interested in a new IRS ruling. The ruling stipulates that defined contribution health plans, such as HRAs, can qualify for tax-favored treatment....

Senior executives at public companies held accountable for financial reports. (Executive's Briefcase).
August 21, 2002... President Bush recently signed into law the Accounting Industry Reform Act, which is designed to eliminate fraudulent accounting practices and ensure transparency of accounting information to stockholders. CEOs and CFOs of public companies...

Will more knowledge offset pay concerns? (Executive's Briefcase).
August 21, 2002... If your company has trimmed annual pay increases and bonuses, you might want to consider explaining your pay system to employees. That's the message from WorldatWork, a nonprofit compensation and benefits professional association...

Looking ahead to open benefits enrollment. (Executive's Briefcase).
August 21, 2002... Open enrollment this fall may mean big changes for many of America's workers covered under employer-provided health insurance plans. Significant plan design changes are in the works. Many employers are moving on at least four fronts: ...

Competitive pay rates. (Compensation & Benefits).
August 21, 2002... An effective way for you to attract and retain key personnel is to pay employees what they're worth--and then some. However, trying to devise a competitive pay structure available to all employees can be cost prohibitive. Therefore, one of the...

Tax question.
August 21, 2002... Q I lease a vehicle that I use for work. Can I deduct the cost of the lease payments plus the standard mileage rate? A No, you may use either the standard mileage rate or claim actual expenses, which would include lease payments. You cannot...

IRS oks deduction for insurance policy transfer. (Charitable Deductions).
August 21, 2002... A donor is allowed a charitable contribution deduction for a one-time premium payment on a life insurance policy that he or she plans to transfer to a charity, even though he or she will retain legal title to the policy, the IRS recently ruled...