Executive's Tax & Management Report articles from February 2003

Executive's Tax & Management Report archives from February 2003

New-for-2003 tax breaks to boost your nest egg.
February 7, 2003... If you had a crystal ball, you could foresee which of the proposed tax breaks will make it through Congress later this year. Until you can find a soothsayer to help you with this, it's probably best to focus on the tax breaks already enacted in...

IRS eases 60-day rollover rule for pension payouts.(Brief Article)
February 7, 2003... In the Economic Growth and Tax Relief Reconciliation Act of 2001, Congress gave the Treasury Department and the IRS new authority to waive the requirement that distributions from pension plans must be rolled over to another qualified plan...

New rules make it simple to slash tax on home sale profits. (Personal Taxes).
February 7, 2003... If you have to pay capital gains tax on all your profit when you sell your home, you'll be an exception to the rule. That's because new regulations from the IRS make it a cinch to qualify for relief from the tax. In fact, almost everyone will...

Using Totalization Agreements to avoid duplicate social (security) taxes. (Payroll Taxes).
February 7, 2003... Without some means of coordinating social security coverage, people who work outside their country of origin may find themselves covered under the social security systems of two countries simultaneously for the same work. When this happens,...

New case shows importance of policies on sexual harassment. (Management Strategies).
February 7, 2003... A sexual harassment lawsuit can have devastating effects on your company's reputation--and its pocketbook. The key to avoiding these headaches is to have policies in place that foster open communication about any potential problems. Reason:...

Tax question.(taxation on leases and property )(Brief Article)
February 7, 2003... Q Because we've tightened our belt in terms of our capital budget, we are planning to do a lease purchase of some new equipment. Do we deduct the lease payments or depreciate the equipment? A That depends on whether the payments are for...

50 sleight-of-hand accounting maneuvers to watch for. (Managing Your Business).
February 7, 2003... It seems that every day we hear about another company getting into hot water because it has pushed the envelope too far in terms of accounting and reporting methods. From your perspective, you need to be concerned about whether questionable...

Should you jump on the ASP bandwagon for business software? (Technology).(application service provider )
February 7, 2003... Information technology (IT) costs are a big part of most companies' expenses. Some cutting-edge companies are eliminating their IT infrastructure and all the related costs with just one simple move. GO THE ASP ROUTE * We attend various...

IRS creates new watchdog group for tax pros. (Executive's Briefcase).(Office of Professional Responsibility )(Brief Article)
February 7, 2003... Office of Professional Responsibility has been created by the IRS to beef up the agency's oversight of tax professionals. The new office, which replaces the Office of the Director of Practice, will investigate allegations of misconduct and...

FASB prone to require expensing of stock option awards. (Executive's Briefcase).(Financial Accounting Standards Board )(Brief Article)
February 7, 2003... The Financial Accounting Standards Board (FASB) will decide soon whether it will reconsider the current accounting rules for stock-based compensation. Under current FASB rules, company financial statements must include footnote disclosure of...

Should sick employees drag themselves to work? (Executive's Briefcase).(Brief Article)
February 7, 2003... A new study suggests that companies may want to encourage sick employees to stay home and recover before coming back to work. AdvancePCS (Irving, Texas), a health care consultant, examined the phenomenon of "presenteeism." Unlike absenteeism,...

How employers will deal with double-digit rise in health costs. (Executive's Briefcase).(Brief Article)
February 7, 2003... Companies will require employees to kick in a larger share of health benefit costs in 2003, reveals the latest survey from Mercer Human Resource Consulting. Costs increased sharply for 2002--a trend that is expected to continue through 2003....

Direct marketing firms may fight new national no-call registry. (Executive's Briefcase).(Brief Article)
February 7, 2003... If the Direct Marketing Association (DMA) mounts a legal challenge to a new planned national no-call registry, success is not likely. Under the new system, consumers seeking relief from unwanted telemarketing calls will be able to sign up as...

Distribution to a shareholder of an S corporation: is it salary or profits?
February 21, 2003... If you perform services for an S corporation in your capacity as an officer/shareholder, the IRS is concerned that adequate payroll tax might not be paid. If you render more than minor services and are not paid a salary (or are paid a nominal...

New, simpler pensions proposed by President Bush. (Retirement Planning).
February 21, 2003... You will be able to salt away more money for retirement if a proposal by the Bush Administration goes through. The proposal creates a new breed of retirement accounts that allow higher contributions--and eliminates confusing rules that have...

IRS tells employers how to avoid new W-2 crackdown. (Payroll Taxes).(inaccurate Social Security numbers)
February 21, 2003... The IRS will increase its efforts to ferret out companies that put inaccurate names and Social Security numbers on a recipient's Form W-2. Last year, companies that had chronic violations were targeted--but this year more companies will be...

Recent case shows how to audit-proof deductible business expenses. (Personal Taxes).
February 21, 2003... In order to claim deductions in relation to expenses you incur on behalf of your company or other business activity, you have to prove to the IRS's satisfaction that the expenses were indeed incurred--and that they had a business connection. If...

IRS adds to menu of tax guidance to be issued in 2003. (Tax Procedures).(with the Treasury Department)
February 21, 2003... The IRS and Treasury Department have unveiled the second quarterly update of the 2002-2003 Priority Guidance Plan, which includes 33 new items of additional guidance, revenue rulings, and revenue procedures. Some of the additional guidance...

Four ways to make sure your finance department is in the 21st Century. (Managing Your Business).
February 21, 2003... Leading-edge companies are pushing to enhance financial analysis and forecasting in order to have Finance become more of a strategic partner--with more influence on decisions that drive shareholder value. However, there are several hurdles...

Tax question.(deductions for charitable work )(Brief Article)(Column)
February 21, 2003... Q I use my car when I do volunteer work for several charities here in town. What kind of deductions can I claim for car expenses and what kind of records do I need to keep? A You can deduct expenses you incur for the use of your car while...

Final IRS regs help high-income families with kids in college. (Executive's Briefcase).(Brief Article)
February 21, 2003... If parents do not claim dependency exemptions for their children who are in college, the students can claim education tax credits on their own personal tax returns. This is true even if Mom and Dad shelled out the college tuition themselves,...

Companies that use EFTPS have fewer tax problems. (Executive's Briefcase).(Electronic Federal Tax Payment System)(Brief Article)
February 21, 2003... Companies that pay their taxes by using the Electronic Federal Tax Payment System (EFTPS) are hit with significantly fewer tax penalties by the IRS, says a study by the agency. The study revealed that non-EFTPS users were 31 times more likely...

Companies look to Nix health coverage for future retirees. (Executive's Briefcase).(Brief Article)
February 21, 2003... A growing trend in cutting employee health care costs is for companies to drop medical coverage for future retirees. According to the Kaiser Family Foundation and Hewitt Associates, 13 percent of large companies (those with at least 1,000...

Business growth tied to cultivating customers, says new study. (Executive's Briefcase).(Brief Article)
February 21, 2003... A new study in the PricewaterhouseCoopers Trendsetter Barometer confirms the success of a basic business fundamental: Stay close to your customers. Over the past three years, four-fifths (81 percent) of the nation's fastest growing companies...

FASB issues much-awaited accounting rules on SPEs. (Executive's Briefcase).(Financial Accounting Standards Board; special purpose entities )(Brief Article)
February 21, 2003... Companies have been waiting for guidance on how to handle special purpose entities (SPEs)--the types of financial structures used by Enron to hide debt and shift assets from the balance sheet. The Financial Accounting Standards Board has just...

New survey reveals most popular wellness programs. (Compensation & Benefits).
February 21, 2003... Employee wellness programs help companies rein in spiraling employee health care costs. However, there are many wellness programs and initiatives to choose from. Which ones are the most popular among employees? A new survey reveals the answer....