Executive's Tax & Management Report articles from December 2002

Executive's Tax & Management Report archives from December 2002

Social Security changes go into effect in 2003.
December 7, 2002... If you're planning to retire in the next few years, keep in mind that the Social Security Administration (SSA) is gradually increasing its full retirement age threshold. Of course, you can still retire "early," but your Social Security benefits...

IRS owes $80 million undeliverable refund checks.
December 7, 2002... Due to outdated mailing addresses, nearly 97,000 taxpayers haven't received their tax refund checks totaling $80 million. The IRS wants to reissue the checks, but can't until the affected taxpayers provide their correct address. If you suspect...

12 mistakes that become employment lawsuits. (Executive's Briefcase).
December 7, 2002... If you're faced with the difficult task of terminating an employee, keep in mind that you are simply carrying out a business decision, says Paul Heylman, a partner in the Washington office of Schmeltzer, Aptaker & Shepard who specializes in...

Congress passes terrorism insurance legislation. (Executive's Briefcase).
December 7, 2002... A terrorism insurance backstop bill that was recently approved by Congress will provide relief to many building owners and their tenants who have been unable to obtain insurance at any cost. (See the November 7, 2002, issue of Executive5 Tax &...

Audit fees expected to rise. (Executive's Briefcase).
December 7, 2002... If you've got an audit coming up soon, then you should plan ahead for an increase in the fees for those services. The cost of an audit will rise as accounting firms take extra steps to satisfy government regulators and client desires for deeper...

Small businesses in lower Manhattan receive $266 million in federal funds. (Executive's Briefcase).
December 7, 2002... To assist New York City's recovery from the September 11, 2001, terrorist attacks, Congress earmarked $500 million of a $3.5 billion Community Development Block Grant to compensate small businesses, nonprofit organizations, and individuals for...

EGTRRA mandates adjustments to pension plan limits. (Retirement Planning).
December 7, 2002... Traditionally, the IRS has released annual adjustments applicable to benefit and contribution limits under qualified retirement plans. Over the years, these adjustments have been based on increases in the cost-of-living index (COLI), when the...

Sales tax plan awaits legislative consideration. (New Legislation).
December 7, 2002... State legislatures across the country will soon begin considering legislation to adopt a multistate agreement to simplify the nation's sales tax laws. Under a proposal recently approved by representatives of 33 states and the District of...

Cell phones could turn down time into company time. (Compensation & Benefits).
December 7, 2002... If your employees use cell phones to stay in touch with the office, any off-duty time they spend in job-related conversations may become compensable. Here's an analysis of the issues by Atlanta employment attorney James Wimberly, Jr. ...

Get higher retention at lower cost. (Managing Your Business).
December 7, 2002... The solution to high turnover is simple: Hold on to top performers and help them contribute to the best of their abilities, says Adrian Savage, consultant and president of PNA (Raritan, N.J.) If the solution is so simple, why isn't turnover...

Tax question.
December 7, 2002... Q I had to take a two-week business trip to New York over the summer. Since no one was available at home to watch my two children, I brought the children along on the trip. I paid a friend in New York to watch my children. Can I deduct the...

Gear up for tax-filing season. (Personal Taxes).
December 7, 2002... Now that tax year 2002 is winding down, it's time to start gearing up for the tax-filing season. Waiting until the last moment to organize your paperwork could result in costly errors or omissions. The National Association of Enrolled...

Company president liable for unpaid payroll taxes.
December 21, 2002... Employers are required to withhold federal income and FICA taxes from their employees' wages and to deposit those taxes with the IRS on their employees' behalf. Employers are liable for the taxes from the moment the wages are paid, and their...

Use stock losses to reduce your 2002 tax liability.
December 21, 2002... The bad news is, many executives lost money in the stock market this year. The good news is, you may be able to use those losses to reduce your tax burden. Generally, realized capital losses are first offset against realized capital gains....

ETI: last bite of the apple? (Business Taxes).
December 21, 2002... U.S. businesses that export U.S.-manufactured goods can obtain tax savings on those exports with the extraterritorial income (ETI) exclusion. This savings can amount to at least 5 percent of the tax on profits on those export sales that are...

IRS cites PDS timestamp as proof of untimely filing. (Executive's Briefcase).
December 21, 2002... Filing an accurate return, with proper payment of taxes, is not always enough to avoid a penalty. The IRS also insists that required tax documents and deposits be filed on time. In fact, the IRS has gone so far as to establish a list of...

Employers spent nearly $6 trillion on compensation last year. (Executive's Briefcase).
December 21, 2002... Employers spent more than $5.9 trillion on total compensation in 2001, according to recent research by the Employee Benefit Research Institute (EBRI). Of that total, wages and salaries accounted for $5 trillion (84.3 percent), while benefits...

First quarterly update of 2002-2003 Priority Guidance Plan released. (Executive's Briefcase).
December 21, 2002... Treasury and the IRS released the first quarterly update of the 2002-2003 Priority Guidance Plan (see the September 21, 2002, issue of Executive's Tax & Management Report for coverage of the original plan). The agencies added a number of...

2003 filing and deposit deadlines released. (Tax Procedures).
December 21, 2002... On the next four pages, you'll find the schedule of federal tax filing and deposit deadlines for the first half of 2003. The dates listed reflect adjustments for federal legal holidays. (State legal holidays may affect deadlines if you file...

Federal tax action calendar for January-June 2003.
December 21, 2002... Thursday, January 2 FICA and withheld income tax. Semiweekly depositors deposit the tax on wages paid December 25-27, 2002. Earned income credit. Employers should stop advance payments of the earned income credit for any employee...

Federal legal holidays in 2003.
December 21, 2002... Wednesday, January 1--New Year's Day Monday, January 20--Martin Luther King, Jr. Day Monday, February 17--Presidents' Day Monday, May 26--Memorial Day Friday, July 4--Independence Day Monday, September 1--Labor Day ...

Tax question.
December 21, 2002... Q My company is considering donating inventory (out-of-season clothing) to charity. What kind of tax deduction would we be able to take for such a donation? A As a general rule, a corporation can deduct charitable gifts up to 10 percent of...