Be Alert and Aware: Tax Scammers Don’t Take a Summer Vacation

The IRS has identified several new variations of standard tax scams involving fake tax bills and demands for payments. Many of these scams involve purchasing and transferring information using a gift card or iTunes card. Other scams to be aware of include:

Electronic Federal Tax Payment System (EFTPS) Scam
This scam involves con artists claiming to be from the IRS. Scammers call and demand immediate tax payment and threaten arrest if a payment is not made immediately by a specific prepaid debit card. Victims are also warned that they should NOT talk to their tax preparer, attorney or local IRS office until after the payment is made.

“Robo-call” Messages Demanding Payment
It is important to remember that the IRS does not call and leave prerecorded messages requesting a call back, but scammers do! According to the IRS, scammers tell victims that if they do not call back, a warrant will be issued for their arrest. Those who do respond are told they must make immediate payment either by a specific prepaid debit card or by wire transfer.

Private Debt Collection Scams
The IRS recently sent letters to taxpayers whose overdue federal tax accounts are being assigned to one of four specific collection agencies. Scammers are aware of this and are now calling taxpayers posing as private collection firms. If you receive a call like this and you have not been notified by the IRS about a tax debt, it is safe to consider the call a scam.

Protect Yourself: Know the Signs of a Scam
Given the level of sophistication and perseverance of scammers, it is sometimes difficult to determine legitimate contact by the IRS (and its authorized private collection agencies) versus ploys to get your money and personal information. Protect yourself by understanding that the IRS will:

• Never contact you initially by phone or demand immediate payment by prepaid debit cards, gift cards or wire transfers.
  
  
• Never threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for non payment.
  
  
• Never demand that taxes be paid without giving the taxpayer the opportunity to question or appeal the amount owed.
  
  
• Never ask for credit or debit card numbers or other sensitive information over the phone.

Remember, the IRS will mail a bill to taxpayers who owe. And all tax payments should only be made payable to the U.S. Treasury and never to third parties.

If you are contacted via phone by a scammer this summer, do not give out any information. Hang up immediately and report the scam to the Treasury Inspector General for Tax Administration at this site or call the hotline at 800.366.4484. If you are unsure about any potential outstanding tax obligations, it is also a good idea to check with your tax preparer.

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Tips for Implementing a Successful Flex-time Schedule this Summer

Now that summer/vacation season is here, your business may be enjoying a more relaxed vibe with employees taking time off or leaving early. If you’ve ever thought about implementing a flexible work program, now may be the time to pilot one, especially if your business is a bit slower this time of year. To help, we offer the following tips:

Start with a strategy—Think through which departments and job functions can successfully work on a flex schedule. Then create a strategy that identifies which positions are suitable for flex time, the levels of flex time to be offered, and who will manage flex-time arrangements.

Make metrics matter—Studies have shown that flex-work arrangements are great for employee retention and engagement. However, these arrangements also have to support your business productivity. Be sure to identify which metrics you will track to ensure your flex schedule is beneficial for everyone.

Take a trial run—Before adopting a full-scale flex program, perform a trial run in one department or with a few select employees. This will help you work out issues related to technology, connectivity and communication—as well as help you gauge overall impact on your business before launching the program business wide.

Train your managers—Managing a flexible workforce is very different than managing employees on-site. Make sure managers know how to motivate remote and flex-time workers and understand how to best communicate with remote employees. In addition, encourage managers to hold regular meetings to keep your business on track.

Flexible work programs are a highly valued benefit for most employees. This kind of program also has many benefits for businesses, including cost savings, lower employee turnover and higher productivity. Consider using the tips above to trial your own flex work program this summer.

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Want to Work Smarter? Timing is Everything!

We all want to work smarter, not harder—all while getting the results we desire. For many tasks, however, it’s not just how you perform them, but when—and timing can make all the difference in terms of success. To help you make the most of the following common business-related scenarios, here’s some expert advice:

Momentous Meetings
Research from WhenIsGood.net indicates that only 1 in 3 employees is likely to attend a Monday morning meeting. With this in mind, it’s time to shift to a different day and time combination. Tuesday afternoon is actually one of the best times to hold a meeting because it is far enough away from the “end of the week rush” and people have had a chance to catch up on any tasks leftover from the week before.

Making a Big Decision
Researchers from Columbia Business School have found that judges hearing cases make the most consistent decisions first thing in the morning and again right after lunch, indicating that when you have to weigh your options on a serious matter, you should do so after you have eaten. If you’ve got a tough choice to make, it could be in your best interest to postpone your decision until after you’ve fueled your body and your brain with food.

Interviewing for a Plum Position
Like many things that require focus and energy, scheduling a job interview in the morning will help to improve your performance and, potentially, your rating from the interviewer. Research teams from the University of Pennsylvania’s Wharton School and Harvard Business School studied MBA applicants and found that even when job candidates were equally qualified, those interviewed last received lower scores—whether they deserved them or not.

From a single meeting to making a big decision or career move, it’s important to consider your timing. As the research cited above shows, making the right move at the right time can improve your chances of success.

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Four Money-Saving Mid-Year Financial Planning Tips

It’s almost exactly the mid-point of the year, which makes it prime time for a mid-year financial review. If you need some monetary motivation for evaluating your financial progress so far this year, you may want to think of mid-year planning as a series of potential money-saving opportunities, for example:

1. Save tax dollars by evaluating your 401(k). Take a look at your current 401(k) contributions to see if you are on track to maximize your annual contributions. Making the maximum contributions this year is not only good for your retirement fund, but will also save you money by lowering your tax bill.
   
   
2. Trim your budget. Make one or two small changes to your weekly or monthly expenditures. Skipping a meal out or your daily coffee run can save you a lot of money over the next six months.
   
   
3. Fight financial fatigue from fees. Banks and credit card companies (not to mention all those online subscriptions you have) are always changing their fee structures—which may mean you aren’t even aware of some of the things you are paying for. Now is the time to take stock and cancel or downgrade the services you no longer need. Doing so will help you reduce fees and may save you considerable money.
   
   
4. Ask about your tax estimate. You may be thinking that April wasn’t that long ago—and you are right—but the end of the year is already half-way here, and after that, you can’t impact your 2017 taxes. Now is the time to talk to our firm about your current tax situation and make any changes to increase your tax savings.

These are just four financial planning tips that can save you money before the end of the year. There are many other mid-year planning strategies that can increase your savings, too. Not sure where to start with your plan? Let us help you. Contact our firm today.

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How to Protect Your Business from the Next “Wanna Cry” Attack

The recent “Wanna Cry” ransomware attack that paralyzed several large organizations in the U.S. and Europe is a solemn reminder that the risk of cyber security breaches is real. Every business owner should take steps to assess the type of cyber security threats their business could be subject to and how to avoid them. The tips below are a good place to start:

• Don’t underestimate the risks. Many small business owners are too busy taking care of day-to-day responsibilities to keep cyber security top of mind. This is a mistake—the greatest weapon against attacks is awareness and having a plan in place to prevent them. Reinforce prevention by incorporating a plan into employee onboarding and offering ongoing training.
  
  
• Make updating software a priority process. As the “Wanna Cry” attack taught us, updating your computer software is an essential prevention strategy. Many of the infected computers at large organizations were not updated—leaving entire networks vulnerable when just a single computer was compromised. A regular schedule and protocols for updating software can help mitigate cyber security risks.
  
  
• Learn the signs of an attack and what to do about them. The most effective way to avoid falling victim to another Wanna Cry-like attack is to be aware of the type of emails that may contain ransomware or other viruses. These emails typically include an attachment (often a .zip file) that you didn’t ask for, and may come disguised as an email from someone you know. If in doubt, the best course of action is to delete the email immediately.

With the risk of cyber attacks growing by the day, it’s time to take action to protect your business. Educating your employees is key, as is updating your software on a regular basis. You may also want to ask an IT professional to help you evaluate and mitigate risk in this area.

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Key Questions to Ask Prior to Opening Your Own Physical Therapy Practice

For many physical therapists, the dream of opening their own practice is exciting and can offer tremendous personal and monetary rewards. However, it also requires a significant financial commitment and business acumen. Prior to making the leap from employed therapist to independent practice owner, it is important to answer the following questions:

What business entity will I choose for my practice?
Deciding how your business will be structured is critical because it will determine the level of legal and financial risk that you take on, as well as your tax obligations.

Will I practice in a partnership or as a solopreneur?
Having a partner who can shoulder some of the work and complement your own strengths may be a good way to start your own business, rather than going it alone right off the bat.

How will I handle my patient load and running my business?
Before you open the doors to your practice, you need to determine how you will balance serving patients while also taking care of your back-office accounting work and other administrative responsibilities. If you are starting small, you may be able to handle both and then transition to outsourcing functions such as payroll and day-to-day accounting as your practice grows.

Do I have sufficient business protection?
In order to mitigate the financial and legal risks related to owning your own business, you’ll need to ensure that you have adequate general business and professional liability insurance as well as workers' compensation coverage, if you have employees. This will help to protect your business assets and protect you from any legal action that could arise in the course of business.

Launching a physical therapy practice is a major commitment. Be sure to consider the key points above. Be sure to reach out to our firm if you have any questions about structuring your business or taking care of your back-office financial tasks.

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Tips to Help You Stem the Flow of Potential Risks This Flood Season

Whether from heavy rains or hurricanes, this time of year can bring with it the risk of floods across many parts of the United States. While you may not be able to predict the likelihood of a flood in your area, with these tips you can help to mitigate physical and financial damage if a flood occurs where you live.

1. Treat structural damage seriously. In any flood situation, the Federal Emergency Management Agency (FEMA) advises to look for any visible structural damage at the site of your home or office including warping, loosened or cracked foundations, cracks, and holes. If you aren’t sure if your home or office is safe, do not return to it until you have it evaluated by a flood remediation professional.
   
   
2. Turn off your electricity. If you experience severe flooding from a storm and power is lost, it is critical to immediately turn off the main electrical source and all individual fuse connections at your home or office to avoid electrocution. In addition, check your water, gas, electric, and sewer lines and notify the appropriate utilities if you suspect they are damaged.
   
   
3. Document any damage. Before cleaning up from a flood, be sure to fully document any damage if you plan to make an insurance claim using notes, digital photographs and video. Keep in mind, homeowners and business property insurance often do not cover flood damage, unless you have a special waiver.
   
   
4. Avoid flood-related health hazards. Flood water is often contaminated, so it’s important to protect yourself and others before coming into contact with it by using protective clothing, waterproof gloves and boots. FEMA also recommends boiling water for drinking and other uses until authorities declare the water supply to be safe.

Hopefully you or your business won’t be affected by a flood now, or in the future. However, by making note of the tips above, you’ll know just what to do if flooding occurs and how to mitigate the associated physical and financial risks.

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How to Really “Clean Up” at Your Next Yard Sale

This time of year is when you often see yard sale signs popping up. For some, holding a yard sale is a means of clearing out unwanted items. For others, it’s an opportunity to get some great “finds.” Whichever side of the yard sale fence you’re on, these tips can help you “clean up”:

Choose your timing carefully. Research continues to show early morning on Saturday is the best time for high volume traffic. If you are looking to shop yard sales, be prepared to set your alarm early on the weekend.

Tune to your local community. If you want to get the word out about your sale (or find one to go to), social media and online community yard sale listings are very effective. You can also post signs if your neighborhood permits this. Also, tell your family, friends and co-workers.

Pay attention to prices. After all the time and effort you put into your yard sale, you don’t want to be stuck with a lot of leftover items—so price your merchandise competitively. Do a little comparison shopping by looking on eBay or other auction sites to get a feel for what prices make sense. For yard sale buyers, you may want to see if the seller is willing to barter a little to get items off their hands—but be realistic, and respectful if you do this.

With these tips and a little bit of luck, whether you’re buying or selling, you should be able to really clean up at your next yard sale!

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Know the True Value of Your General Contracting, HVAC or Plumbing Business

If you own a general contracting, HVAC or plumbing business, it’s important to know its true value, not only when you are looking to sell your business, but as part of your overall financial management of it. The following are some of the important reasons to know what your business is worth at any given time. Consider that:

• Having an accurate business valuation is essential for obtaining loans from banks or other financial institutions; finalizing partnership and buy-sell agreements; and perhaps, most importantly, personal estate planning to insure the financial security of your family upon your death.
  
  
• If you are typical of most contractors, your business accounts for a significant part of your net worth. Knowing what your firm is worth can help you make informed financial decisions.
  
  
• When you analyze your family's needs for life insurance, your business value should be included in the assets necessary to provide income to your family in case of your death. An accurate business valuation will help to ensure that the life (and business) insurance you purchase is sufficient.

The value of your business is critical to decisions that affect your financial health. Our firm can provide you with an accurate valuation of your business and professional guidance to help your business succeed. Contact us today to get your questions answered.

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Take Your Spring Cleaning to the Office with These Tips

Window washing, carpet cleaning, garden grooming—these are all popular spring cleaning chores for homeowners. However, with year-end and tax season behind you, this time of year is also perfect for spring cleaning at the office. These tips will help you and your staff get—and keep—that “just cleaned my office” feeling:

Start with a clean sweep of your desk. Take an hour or two and ruthlessly cut the clutter by emptying all of your desk drawers, sorting out only what you need, and shredding or recycling the rest of your papers.

Knock-out the knick-knacks. If your desk “mementos” are covered with dust and rarely given a glance, you know what to do: take them home or, if appropriate, donate them to a charity.

Digitize your documents. If you haven’t already, move your files to cloud storage. Make a list of the documents you need to store or access on a regular basis, then evaluate your cloud-based file storage options to see which platform will best suit your needs.

Corral your online credentials. LastPass and other online password-saving applications can save you time, while also eliminating the need to keep sticky notes and paper lists of passwords on your desk.

Declutter your desk daily. Once you have invested the time to spring clean your desk and office, spend a minute or two at the end of each day to do a quick tidy up in order to preserve your pristine work area.

Spring cleaning your office is not just a feel-good activity. Studies have shown that a neat and orderly office space leads to improved productivity and efficiency, which means you may be able to leave the office a few minutes early to enjoy warmer weather or to continue your cleaning spree at home.

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These Tax Day Treats Shine Light at the End of the “Tax Season Tunnel”

With just a few weeks to go until Tax Day on April 18, it’s time to make sure that you’re on track to get your individual return filed. If you haven’t already engaged our firm to help you with your taxes and you need assistance, don’t delay…it’s time to let us know!

While tax season can be stressful, Tax Day itself can be quite rewarding if you consider some of the Tax Day freebies that are available across the country. For example, according to the website DealsPlus.com—Kona Ice, Great American Cookie, Boston Market, Target and many other businesses are offering discounts or free items to help ease the pain associated with paying taxes.

If you need a little light at the end of the proverbial “tax season tunnel” as April 18 approaches, keep these Tax Day treats in mind. You may want to check your local area for other free or discounted goodies available that day, too.

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The Winter Blues Are Real—Here’s How You Can Beat Them with Science

If you tend to feel down after the holidays—you’re not alone. According to the American Psychiatric Association, as many as 20% of Americans experience Seasonal Affective Disorder (SAD), depression brought on by the shorter days and diminishing sunlight at this time of year. Outside of SAD, many of us get a case of the winter blues or a post-holiday slump, even if we live in a more moderate climate. To help you lift your spirits, here are five scientifically proven ways to improve your outlook:

1. Brighten up your environment. One reason that we get down at this time of year is that our bodies are craving more daylight. So do what you can to lighten things up, literally. Open your blinds and curtains, get outside, sit closer to a window at work and, if you’re really feeling blue, invest in a lightbox for home use.
   
   
2. Just say no to sweets. We all know that chocolate, candy and other sugar-laden foods provide only a temporary fix when it comes to our mood. But the next time you’re tempted to get a boost from a beignet, just remember that the pick-me-up effect is temporary and indulging may ultimately increase feelings of anxiety and depression.
   
   
3. Say yes to exercise. Research has proven that even mild exercise can help you feel better. Case in point: A Harvard University study suggests that walking fast for about 35 minutes a day five times a week or 60 minutes a day three times a week improved symptoms of mild to moderate depression.
   
   
4. Turn on the tunes. Along with exercise, research has shown that listening to upbeat music can significantly improve your mood in both the short and long term. So turn on your favorite songs—you’ll feel even better if you do so while exercising.
   
   
5. Pay it forward. While you may feel like huddling in your home, doing some community outreach or volunteering is a better bet because studies have shown that it can help to improve mental health and life satisfaction.

The days may be shorter and holiday bills may have forced your credit cards higher, but don’t let this time of year get you down! Try some of the tips above to help you get the bounce back in your step well before spring arrives.

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Do You Sit All Day? Take a Stand Against a Sedentary Lifestyle

The average American sits a lot. Many of us sit while we work, while we relax and while we learn. Over the long term, this sedentary way of life can have a negative impact on our health, increasing the risk of diabetes, heart disease and cancer—in addition to shortening life spans. To counteract these negative effects, it’s important to get up, get active and get moving!

Even if you engage in a formal exercise program, it’s usually not enough to reverse the negative health effects of sitting most of the day, but it is a big step in the right direction. If your physician clears you to exercise, try doing a daily workout or at least exercise as often as you can throughout the week. Then use these tips to incorporate more movement throughout your day:

• Set a timer to get up every 30 minutes and stand, walk or stretch.
  
  
• If you sit at a desk, try a standing desk.
  
  
• Swap out your chair for an exercise ball to engage your muscles.
  
  
• Use part or all of your lunch break to take a walk.
  
  
• Walk places that are within a reasonable distance instead of sitting in a car.
  
  
• Use the stairs; they require extra effort, which helps to improve your health.
  
  
• Instead of fast forwarding through commercials when you watch your shows, use this time to take a break from sitting.

Taking a stand against excessive sitting may take a little bit of effort, but it will add years to your life and make you feel more energized while improving your health.

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Set the Stage to Help Your Home Sell This Spring

Spring is in the air...which means peak home-selling season isn’t far away. In fact, according to recent market data, 60 percent of all home sales in the United States will occur in the spring and summer months. If you’re thinking about putting your home on the market, now is the time to get prepared—which includes considering how you will “stage” your home to make it more attractive to potential buyers. These tips can help:

• Cleaning your home thoroughly is one of the most important things you can do to stage it effectively. If you don’t have the desire or time to clean, it’s worth hiring someone to help you.
  
  
• Pay special attention to sprucing up the interior and exterior of your home’s front entrance to make a great first impression.
  
  
• De-clutter all rooms and consider putting excess furniture and other items into storage.
  
  
• In addition to visual appeal, don’t forget to make your home smell good. Use sweet, but subtle, air fresheners or set out freshly baked goods, like cookies or muffins, to create that comforting smell of home. Your visitors will appreciate the treats as well.
  
  
• Be sure that the exterior of your home offers that all important curb appeal. This is especially true during the spring and summer months when plants—and weeds—are growing. Keep your lawn manicured and clean up outdoor clutter.

The aim of staging your home is to make it memorable to potential buyers—in a good way. Home buying is often an emotional process and, according to real estate experts, buyers often decide within the first minute of a home showing if it is “the one.” Use these tips to bring out your home’s full market potential.

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Avoid March Madness—Why You Should File Your Taxes Now

For sports fans, this time of year is an exciting one. First the Super Bowl, and then the buildup toward the NCAA March Madness tournament. While tax season isn’t quite as exciting as these events, you’ll still want to make the effort to get ahead of the game—and the April 18 deadline—to score the benefits of early filing.

Avoiding identity theft.
Filing your tax return early helps you sidestep criminals who want to steal your sensitive information. With identity theft related to tax returns on the rise, this is an important early filing benefit. Once your return is filed with the IRS, your social security number is locked, preventing it from being used again by someone other than yourself.

Dialing down stress.
One obvious benefit of early completion is crossing it off your to-do list and avoiding the prolonged anxiety that comes with the approaching tax deadline. Beat the “March Madness” and “April Angst” of last-minute tax filing for your business and individual taxes by having us file them for you now.

Expediting any potential refunds.
If a tax refund is in your future, the earlier you file your taxes, the sooner you will see your refund check. Keep in mind, the IRS reports some delays are expected this year for filers claiming the Earned Income Tax Credit or the Additional Child Tax Credit.

Maximizing all deductions.
Filing early allows us to have the time required to prepare your return and research all the tax deductions you may be entitled to. Starting the return process earlier gives you more time to gather your supporting paperwork and get any additional documentation you may need to claim a deduction.

Having time to pay outstanding tax bills.
If you owe taxes, filing early gives you time to save for payment if needed. It also removes the last-minute element of surprise—you’ll know exactly where you stand with the IRS.

Ready to tackle your taxes and take advantage of these early-filing benefits? Start uploading your tax documents to your portal today, or contact our office for assistance.

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Small Businesses Can Restart Health Reimbursement Accounts in 2017

Although the fate of the Affordable Care Act (aka Obamacare) is not yet clear, thanks to the passing of the 21st Century Cures Act at the end of 2016, employers with fewer than 50 employees can now start funding stand-alone health reimbursement accounts (HRAs) again. Employees can use HRAs to pay for medical expenses, including health insurance coverage on the Obamacare health insurance exchange market.

Until this year, employers were not allowed to offer stand-alone HRAs under the Affordable Care Act because they didn’t meet credible coverage rules. Now employers can restart stand-alone HRAs, and if they failed to halt them despite the Obamacare mandates, they will also receive retroactive penalty relief. However, there are some new regulations related to HRAs that business owners should be aware of including:

• A new limit to annual employer contributions of $4,950 for employee-only coverage and $10,000 for family coverage.
  
  
• Employees cannot contribute to these HRA accounts, only employers can.
  
  
• HRA funds can be used by employees to pay for insurance premiums or bills from physicians.
  
  
• The Obamacare premium tax credit will be reduced dollar for dollar by the HRA amount if an employee uses both.
  
  
• Any HRA reimbursements for health insurance purchases which fail to satisfy the “minimum essential coverage” requirements of Obamacare for will be considered income for employees.

For more information about the rules related to the reintroduction of HRAs, please review the Department of Labor fact sheet here.

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Tips to Defend Your Business from Cyber Attacks

You need only tune into the news to see that cybercrimes are a very real threat. From viruses to malware, everyday computer use and online browsing can leave you vulnerable to hackers who want your valuable information. If you have a small business, your risk of a cyberattack is likely even higher, especially if you do not have the resources or know-how to enact effective security policies. In addition to engaging an IT professional to help you identify and mitigate your cyber risks, consider using these tips from Entrepreneur.com to keep your business safe:

1. Analyze your email security to identify potential threats. If you’re not protecting your company emails and other electronic communications with encryption, you should. This will make it harder for hackers to succeed in accessing your data.
   
   
2. Do the obvious: Install malware, spyware and firewall programs. There are many good, cost-effective software programs you can use to protect your business from incoming cyberattacks such as those made by Malware Bytes, McAfee and Norton. Part of the protection plan for your business should be to install these programs on every work-related computer to help catch and eliminate threats.
   
   
3. Power up your password policies. Passwords are your first line of defense against cyber criminals, so make sure that you and your employees know how to use them effectively. While using longer, complex passwords and changing them frequently may be a bit of a hassle, it’s a crucial strategy for avoiding a devastating cyber attack.
   
   
4. Train your employees to recognize suspicious online activity. It’s definitely a good idea to school yourself on how to avoid being a victim of a cyber attack, but unless you’re a solopreneur, you need to make sure that your employees know how to protect themselves and your business, too. Be sure to provide formal computer and online security procedures and information that will help your staff spot and stop potential threats before they do damage to your business.

Protecting your company against cybercrimes is an absolute must in today’s business environment. Use the tips above to help you get started and be sure to reevaluate your cyber protection plan at regular intervals to defend your business against new and emerging threats.

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Break Barriers in 2017 with These Mind-Changing Mini Resolutions

There’s a reason why the regular New Year’s resolutions like losing weight, exercising more and sticking to a budget are popular—so many of us need to do them! There’s also a common reason why so many of us fail to meet our goals in these areas: we haven’t developed the mindset to support the changes that we want to make.

Instead of setting a big, audacious goal right now, consider making some of what Jacob Geers of the ThoughtCatalog.com terms “mini-resolutions.” They’re little changes that can have a big impact on your mindset, and which can ultimately allow you to break the barriers holding you back from reaching bigger goals, such as losing 25 pounds this year. Here are a few examples:

1. Get enough sleep. If you think sleep is a waste of time, consider that most people need between 7 and 8 hours a night to operate at peak performance. Getting less sleep can cause you to overeat, make poor choices when it comes to dealing with stressful situations, and just be plain cranky.
   
   
2. Just say “no.” If you’re always taking on one more thing to help other people out, you may be sabotaging your own health and happiness in the process. Being more mindful about how you spend your time will give you the opportunity to do things that will move you closer to your own goals.
   
   
3. Take a social media holiday. Research has shown that heavy use of social networks can actually cause feelings of negative self-worth, which is counterproductive in making good on self-improvement resolutions. Taking a break from social media will also free up your time to focus on your goals.
   
   
4. Give yourself space. It’s amazing how much calmer, in control, and focused you’ll feel if you simply give yourself a little time and space to connect with nature, or even just allow some extra breathing room between meetings and other obligations. This can have a positive impact in other areas of your life which may need some tweaking, too.

While these mini resolutions may seem too small to make a difference at first, once you try them, it’s likely you’ll find yourself feeling more ready and energized to break down the barriers that lie between you and achieving the bigger goals you have for this year.

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Keep the Holidays Merry with These Simple Stress Relievers

The holiday season can be wonderful, but they can also be one of the most stressful times of the year. Fortunately, the experts at Psychology Today also offer these simple stress relievers to put the joy back in this special time of year:

1. Take a time-out. Time-outs aren’t just for toddlers who have a tantrum. In fact, rather than being a punishment time-outs (a.k.a. quick relaxation breaks) can be a positive addition to calming adults with frenetic schedules. So, when you feel overwhelmed during the day, do one to five minutes of a relaxing activity to restore your sense of calm.
   
   
2. Opt for optimism. If you find yourself getting annoyed with friends or family over the holidays, try to shift your negative thoughts to positive ones. This can help you view the situation at hand with gratitude instead.
   
   
3. Fit in fitness. Even if you are tight on time, squeeze some exercise into your schedule. You will feel better and calmer if you get your body moving. Even just a 20 minute walk once a day will help you keep stress at bay.
   
   
4. Eat smart. Okay, easier said than done this time of year, but if you make a concerted effort to control your portions and balance your diet, you will avoid sugar crashes and the other negative effects of overdoing it on holiday treats. This will not only help to stabilize your mood, but it will keep your energy up, too.
   
   
5. Make a ‘to-do’ list—then cut it.  Writing down all that you have to do during the holidays can be overwhelming, but it can also help you realize how do-able your tasks are. Be realistic as to what you put on your lists. Then lighten your load by cutting items that are not absolutely necessary.
   
   

It’s easy to become overwhelmed by economic and social pressures to live up to unrealistic expectations for what you are supposed to do, give and feel during the holidays. Use the tips above to help you beat seasonal stress and truly enjoy this special time of year.

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Obama’s New Overtime Pay Rule is On Pause—What Does it Mean for Your Business?

Just days before it was scheduled to be implemented on December 1, a federal judge in Texas has blocked the implementation of the new Department of Labor (DOL) federal overtime rule, which would have doubled the Fair Labor Standards Act’s (FLSA’s) salary threshold for exemption from overtime pay. According to an NPR report, this extension of overtime eligibility would have affected 4 million Americans and required employers to pay time-and-a-half to their employees who worked more than 40 hours in a given week and earned less than $47,476 a year.

Lawsuits objecting to the overtime rule were filed by 21 states, the U.S. Chamber of Commerce, and other business groups concerned about the negative impacts of the legislation on businesses—including higher payroll costs and reduced staffing flexibility. The DOL plans to challenge the decision and argues that the new rule would have helped to offset income erosion due to inflation and that the rule would deliver fairer pay to lower-wage employees who are currently exempt from overtime pay. The DOL also stated that the salary level was set purposefully low to screen out obviously nonexempt employees such as executives and higher-level professionals.

Although the overtime extension rule will not take effect in December, it could still be implemented in the future. Employers should continue to follow the existing overtime regulations until a final decision is reached. For those employers who have already raised exempt employees’ salaries to meet the new threshold or who have reclassified employees who are still earning less to nonexempt status, the Society for Human Resources Management (SHRM) recommends leaving such decisions in place because they would be difficult to reverse. However, employers may want to postpone making any further moves until a final ruling is made.

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Take Note of New Business Tax Deadlines in 2017

As a result of the highway funding extension bill signed into law by President Obama in 2015, there are important changes coming in 2017 to deadlines for business tax filings including:

1. W-2 and 1099 filings are due January 31 in 2017 instead of March 31. These forms are still due employees and contractors by January 31, so it’s important to prepare and file them early if possible.
   
   
2. S-corps, partnerships, LLPs and multi-member LLCs filing Form 1065 must file by March 15 or the 15th day of the third month following the end of the organization’s fiscal year. The previous deadline was April 15. Extensions are available for up to six months, filed no later than September 15, 2017.
   
   
3. C-corps filing Form 1120 must file by April 15 (previously March 15) or the 15th day of the fourth month following the end of the organization’s fiscal year. Extensions can be filed no later than September 15. After 2026, C corporation extensions will be available for up to six months after the initial due date.
   
   
4. Trust and Estate filing Form 1041 the extension due date has changed from September 15 to September 30.
   
   
5. Exempt organizations filing Form 990 now have only one extension until November 15.

If you have any questions about the above changes please do not hesitate to contact our office.

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Five Key Areas Every Business Owner Should Review Before Year End

We’re well in to the fourth quarter of the year, which means year end is fast approaching. Here are five important areas of your business to review before the calendar turns to 2017.

1. Tax planning opportunities. November and December are prime time for tax planning, which can pay big dividends when filing time arrives. Touch base with our firm now to reduce your business tax obligations as much as possible.
   
   
2. Payroll. Make sure you have all information updated, employees are properly classified, and that you are in compliance with all payroll regulations. Plus, you’ll want to ensure that all employee information is securely stored.
   
   
3. Cash flow. As you well know, cash flow is the lifeblood of your business, so if you’re having trouble controlling it, now is the time to analyze why and ask for assistance if needed.
   
   
4. Estimated tax payments. If you've paid estimated taxes throughout the year, review your totals so that you have the information on-hand for tax season and you can make up any shortfall before the end of the year.
   
   
5. Your overall progress. Take a step back and consider if you have met your annual projections for profitability and growth. If you’ve gotten off-track it’s time to make a plan to rectify the situation. If you’re satisfied with where you are, take time to lay out next year’s plan.

By reviewing these five areas now, you’ll be able to lower your taxes, reduce potential payroll-related penalties, and have a good handle on how to move your business forward in the coming year. If you need any help in the process, please contact our firm.

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Start Holiday Gift Giving for the Kids with an IRA Contribution

If you’re like many parents and grandparents, you may already be thinking about what kind of gift to get the children on your list this holiday season. For teens and young adults especially, it can be challenging to come up with truly unique and meaningful gifts. One idea with long-lasting impact is to make a contribution to either a traditional or Roth IRA on your children or grandchildren’s behalf.

IRS rules state that the maximum that can be contributed to an IRA each year is the lesser of the child’s earned income or $5,500 (the 2016 limit for an individual under age 50). So if your child or grandchild already has an IRA, you’ll need to know if they’ve already contributed to it this year.

If your child or grandchild does not have an IRA account already, you’ll need to decide on the type of IRA you would like to use for your gift (i.e. a traditional or Roth IRA). Traditional IRA contributions are tax deductible with taxes paid when the funds are withdrawn at retirement. Conversely, Roth IRA contributions are not tax deductible. However, the distributions, including earnings, are tax-free at retirement.

As long as your contribution to an IRA is below the annual $14,000 gifting exemption, it is not subject to any gift tax unless you give additional reportable gifts throughout the year. Keep in mind that such a contribution will not hold any benefits for you on your own income tax return.

If you have questions about an IRA holiday gift for your children or grandchildren, please contact our office.

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Don’t Let Year-End Cost-Cutting Derail Your Business Goals

Many businesses need to adjust their spending to meet the reality of their cash flow during the last few months of the year. While it can be tempting to just cut expenses across the board, this strategy may actually backfire if you cut in the wrong places. Here are four budget areas you should try to preserve to avoiding derailing your long-term business goals:

1. Marketing—It’s one of the easiest things to cut, but doing so will eliminate your ability to grow. The smarter strategy is to continue doing the marketing initiatives that bring you results so you don’t miss opportunities to gain new customers.

2. Training—Instead of eliminating employee education opportunities, look for cost-effective options such as online training or in-house peer-to-peer training to reinforce skills. Regular training is especially important for frontline employees who can make an immediate difference in maintaining and winning business.

3. Safety—Cutting your budget should not mean increasing the risk for workplace injuries or creating an unsafe work environment, which can expose your business to potential workers’ comp claims. Consider safety an “untouchable” area when it comes to budget cuts.

4. Quality—Another area where shortcuts should be avoided is your product and service quality. Reducing resources to the point that it affects your end product is not going to help drive more business—in fact, it may have a significant negative impact on sales.

If you keep these four key expense areas steady, how can you make up budget deficits? The best way is to look at all of your expenses, line by line, and identify unnecessary or hidden costs that can be eliminated. It’s also important to maintain an in-depth view of your financials throughout the year—not just when your budget is tight—so you can take proactive steps to avoid future cash crunches and keep to financial goals.

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Wondering About Tax Deductions for Political Contributions? Here’s the Lowdown

With election season in full swing, you may be wondering, “Are political contributions tax deductible?” Here’s the lowdown:

Whether it’s your county mayor or the future President of the United States, the rules on taking advantage of tax deductions for political contributions are the same: Donations are deductible if the organization you give to is a 501(c)(3) tax-exempt charity. This means that the organization you give to must have tax-exempt status, which is a special designation obtained from the IRS, in order for you to claim a tax deduction.

Many political organizations are automatically disqualified from this status. For example:

• Any donation to a political party, campaign, or action committee is non-deductible.
  
  
• Other non-deductible contributions are those to individual people, labor unions, business associations, for-profit schools, for-profit hospitals, foreign governments, and fees paid to associations or state or municipal governments.

Despite these rules, you can still reap the benefits of a tax deduction if you support 501(c)(3) tax-exempt political organizations that are non-partisan, in compliance with IRS guidelines on charitable contributions. Such organizations are allowed to communicate with politicians to ask them to make an issue a priority and educate them about why they should do so.

The bottom line: While you can’t make a tax-deductible donation directly to a candidate or campaign, you can make a tax-deductible donation to an organization that lobbies candidates about issues that are important to you. Just remember that in order to reap the benefits of a tax-deductible contribution, you’ll need to itemize the deductions on your tax return.

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Take Note! The Filing Deadline for W-2s and 1099s is January 31 in 2017

Consider this blog post as early notice that the date by which employers must file their W-2s and 1099s with the Social Security Administration (SSA) and IRS will change to January 31 in 2017.

Previously, W-2s and 1099s were not due to governmental agencies until March 31, so this new deadline will significantly reduce the window for making any necessary changes. These forms are still due to the recipient by January 31.

In order to meet the new deadline, it is important to keep your payroll and employee information as up to date as possible. Please keep in mind that if our firm will be filing your W-2 and 1099 forms, we will need your data in a timely manner in January. Additionally, if you are notified of any incorrect information contained on these forms, it will need to be corrected right away.

The new filing deadline for W-2s and 1099s represents a significant change and makes it imperative that payroll and employee information is accurate and up to date. If you have any questions about this information, please contact our office.

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The World is Chipping Away at Credit Card Fraud—But Individual Vigilance is Still Key

EMV chip technology, which is the first major upgrade for credit card fraud protection in many years, is slowly being rolled out by merchants around the world, including in the United States. While this technology has the potential to provide better security for your credit card data, it still has its limits and it is not completely hacker-proof or secure. As such it is still important to be vigilant about protecting your personal information and your credit card whenever you use it. A few key points to keep in mind:

• Double check the whereabouts of your credit card often. This may sound silly at first, but the instances of people forgetting their cards in credit card terminals and bank machines is actually increasing according to industry sources (partly because chip card processing takes a little longer), so try to remember to take your card back after leaving a store so that it doesn’t get stolen….and double check that your credit card is in your possession on a regular basis.
  
  
• Create account alerts. If someone does get unauthorized access to your credit card information, you’ll want to know asap. Most financial institutions and credit card companies have free text message and email notifications that can alert you to suspicious account activity so please, sign up!
  
  
• Take data breach notifications seriously. With so many stories in the news about retail data breaches, it’s easy to tune them out. However, according to AARP (American Association of Retired Persons) 1 in 5 data-breach victims suffered fraud in 2015, up from 1 in 7 in 2014. Clearly, this is a growing problem and you should take any news or notices of a breach where your card has been potentially compromised seriously and take the actions recommended by authorities to avoid losses.

Payment industry research shows that more than $16 billion was lost in worldwide credit card fraud in 2014 and 48 percent of the losses occurred here in the United States, making it more important than ever to keep tabs on your credit card and use the tips above to avoid having your credit card and other sensitive information compromised.

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Before the First School Bell Rings, It’s Time to Reset the Alarm Clock

It’s August and children and parents everywhere are facing a grim reality: back to school season is just around the corner. At this time of year, many parents struggle to get their kids back into a regular sleep routine. To help, we offer these tips to reset your family’s alarm clock before the first school bell rings:

1. Start tonight. While child health experts advocate keeping children on the same sleep schedule all year, the reality is that over the summer break many kids get up and go to bed later than usual. It generally takes three weeks to adjust to a new sleep routine, so start now.
   
   
2. Stay strong. Set regular waking and sleeping times, then stick to them. Most kids and teens need at least 10 hours of sleep a night, so take this into account as you establish your routine.
   
   
3. Eliminate evening electronics. While you may think that playing games on a phone or tablet is relaxing, it can actually stimulate children and disrupt bedtime routines. Establish a time when electronics must be put away each night and don’t allow them in bedrooms.
   
   
4. Set a good example. It’s harder for kids to stick to a routine if they see their parents doing otherwise. While you may not want to go to bed at 8 p.m., you can still set a good example by participating in a more low-key nighttime routine and not staying up until all hours.

Now is the time to start settling into a more school-friendly sleep routine. By making it a priority now, it’s more likely that everyone will be well-rested as the school year starts.

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Getting Married this Year? Here’s Your Tax Tip Sheet

While most couples go to great lengths to ensure that their wedding day is perfect, far fewer think about how their nuptials will impact their tax liability. The truth is, the moment you get married, no matter what time of the year it is, in the eyes of the government you are considered to have been married for the entire tax year. With this in mind, here are some tax tips to consider as you prepare to walk down the aisle:

• A prenuptial agreement may impact your filing status and complicate your tax filing, so you may wish to speak with a tax professional.
  
  
• Once you combine incomes, you and your spouse may be subject to a higher tax bracket. This may eliminate tax benefits for which you were previously eligible.
  
  
• If marriage involves a name change for either party, contact the Social Security Administration to advise them and to get your Social Security card and records updated. This helps avoid delays in the processing of your tax return or potential refund.
  
  
• Review your current withholding and estimated tax payments in light of your new marital status. This will help you avoid any unexpected tax bills next tax season.
  
  
• The Affordable Care Act (ACA) may complicate your tax filing if you and/or your new spouse purchased health insurance through the ACA marketplace because any premium tax credits you have received may be impacted.
  
  
• If your new spouse owes child support or back taxes to either the IRS or the state, they may become your obligation unless you complete the IRS’ injured spouse allocation form.

Don’t let tax stress put a damper on your big day. Take a few moments to talk about taxes with your partner before your wedding, or schedule some time to consult with one of our professionals after the honeymoon.

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Key Lessons from the Financial Fallout of the ‘Brexit’ Vote

It’s fair to say that the recent ‘Brexit’ vote by Britons to exit the European Union (EU) has shaken global financial markets to their core, at least in the short-term. Financial analysts say that it’s too early to tell what the long-term impact of this historic vote will be. But one thing is for certain, the Brexit offers several important lessons that individual investors and business owners can take to heart as they review their own situation at mid-year.

1. Prepare for the unexpected. One of the reasons why the Brexit vote has people and the financial markets so on edge is that it was unexpected. No one really thought that the ‘Leave’ camp would actually win the referendum. Well, they did…and no one is prepared to handle the situation. This is not a pattern that you want to repeat with your own finances. If you do nothing else, plan ahead for unexpected shifts such as job losses or your child not getting a full-ride scholarship for college.
   
   
2. Take a long-term view. Many experts agree that the Brexit is going to create some short-term financial pain. However, things are likely to stabilize and, hopefully, improve over time. This is an important tenet for any investor or business owner to follow for their own financial sanity and planning. Working with a financial professional who can offer guidance and an objective perspective based on their experience and market data can be invaluable in this regard.
   
   
3. Seek the support of allies. In the days immediately after the Brexit vote, Britain no doubt felt somewhat ostracized by the rest of the EU. However, once the initial shock wore off, it rallied the support of its usual allies to determine what the next steps would be in the process. The parallel for individuals and businesses: having a financial advisor in your corner can help you work through difficult decisions and challenging circumstances to find the best solutions.

It is likely to be years before we know how the Brexit will affect the financial strength of our domestic and world markets. This makes it more important than ever to keep the above tips in mind, and to consider doing some proactive mid-year planning to protect your own individual and business finances this year, and in the years to come. Need help with your mid-year planning? Contact our firm today, we look forward to assisting you.

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Smart Strategies to Handle the “Downfall” Problem 1 in 4 New Businesses Experience

One of the most (if not the most) important indicators of business health is its cash flow. Even if your business is profitable and growing, if you don't have a consistent stream of cash coming in, you'll run into financial trouble. Lack of cash flow is the primary reason that more than one quarter of new businesses fail—29 percent to be exact. Here are some smart strategies that can help ease the cash flow crunch.

1. Reduce your business overhead. While this may seem obvious, trimming fixed costs is something that many business owners overlook, getting stuck in a this-is-how-we've-always-done things rut. Take a fresh look at your operations with the goal of maximizing efficiency.
   
   
2. Be proactive about securing credit. If you wait until you're financially strapped before you line up credit sources, you may be in for an unpleasant surprise (e.g., you can't get the credit you thought you could or the credit you can get is too expensive). Know how you can secure funding before you need it.
   
   
3. Know your numbers. This is so important—you should have a dashboard of key performance indicators that you follow closely so that you can head-off any cash flow issues before they happen. You can use a DIY approach with business accounting software, or work with our firm to keep you on track.
   
   
4. Encourage quick payments. An essential key to cash flow management is to keep the cash coming in from customers. Aside from keeping your invoicing current, consider incentives such as early payment discounts on large invoices or discounts for cash payments when appropriate.

With the stakes so high in today’s economy, it's not surprising that many new businesses struggle with cash flow issues. However, by implementing the strategies above and working with our professional team, you'll have a better chance to keep the cash coming in and your business going strong.

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IRS Fights Scammers – Instructs Staff to Initiate All Future Audits by Mail; Never by Telephone

With a rise in IRS phone scams, the Agency changed its policy on contacting taxpayers whose tax records are subject to an audit. The new policy instructs IRS agents to contact affected taxpayers only by mail—never by phone (which used to be the IRS’ go-to method of contact). As such, we urge all of our clients to adhere to the following guidelines should you receive a call from someone claiming to be from the IRS and you’ve NOT received a contact letter prior:

• If you receive a phone call that you suspect to be a scam, hang up right away. If you receive multiple calls, try to record them and turn the recordings and any other related information that you have over to the IRS and local law enforcement.
  
  
• If you receive emails claiming that the sender is from the IRS, save the emails, do NOT click on any links or open files contained within the email, and forward these emails to the IRS at: phishing@irs.gov.
  
  
• Never share your personal information over the phone or by email with someone claiming to be from the IRS. The IRS will never e-mail or call you to ask for this type of information or to ask you to send money right away.
  
  
• Protect your personal information. Any type of documentation that contains your sensitive data is a treasure trove for tax thieves and identity scammers. Keep documents containing your Social Security Number, bank account numbers, and other sensitive information in a secure location. Electronic forms should be stored on a password-protected or encrypted external drive or disk.

If you have any questions about the risks related to tax and financial scams, please contact our office.

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No Time to Garden? Try These Time-Saving Tips

While many of us appreciate the glory of a beautiful garden, there’s no denying that having one is a time-consuming endeavor. That’s why we’ve compiled these tips to help you make the most of your yard in less time:

1. Start with a plan.
A well-thought-out plan for your garden that utilizes low-maintenance plants and flowers will save you time throughout the season. You can even map out what you are going to plant while you’re watching Netflix!

2. Take out weeds with ease.
When low-growing weeds grow into a mat, don’t spend time taking them out one at a time. Instead, use a sharp spade to slice beneath them and turn them over to bury the leaves, which will decompose, enriching your soil.

3. Water without wasting time.
Don’t spend time filling a watering can—use soaker hoses instead! Set the pressure on low to slowly irrigate sections of your garden while you do something else.

4. Garden-on-the-go.
Make every minute you are outside of your home count! Use the time when you let your dog out or your kids are waiting for the bus to pull a few weeds or dead-head flowers. This will cut what could be a long weeding and maintenance session on the weekend into more manageable mini-sessions throughout the week.

Whether you have a green thumb or not, use these tips and you’ll have more time to enjoy a beautiful yard—and the other things you like to do.

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Overtime Pay Eligibility Expanded – What Businesses Need to Know

President Obama, declaring that “Americans have spent too long working more and getting less in return,” ordered the Labor Department to revise federal rules on overtime pay for salaried workers that log more than 40 hours a week. The long-awaited rule change will extend overtime pay to an estimated 4.2M workers.

Under current federal regulations, only salaried employees who make no more than $455 a week, or $23,660 a year, are guaranteed to receive overtime after working more than 40 hours a week. The new rules would raise that threshold to $913 a week, or $47,476 a year, giving salaried workers who are higher up the income scale the ability to work less or earn more for long hours.

The ruling also establishes a mechanism for automatically updating the salary and compensation levels every three years.

You can find detailed information on this new ruling on the United States Department of Labor website: https://www.dol.gov/whd/overtime/final2016/index.htm

Please feel free to contact our office if you have questions.

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Sleep on This! Think Quality Not Quantity When It Comes to Shut-Eye

We’ve likely all heard the news—Americans are incredibly sleep-deprived. However, according to recent research, achieving better quality sleep may be more important than actually increasing the number of hours of sleep. In fact, experts report that 6 hours of deep refreshing sleep is more beneficial than 8 hours of light interrupted sleep.

May is Better Sleep Month, so with that in mind, consider the following ways you can improve the quality of your sleep and reap the benefits of improved health and productivity:

• Establish a consistent sleep schedule by sleeping at the same time each day of the week (including weekends).
• Before bed, relax and limit any stimulating activities such as exercise and work.
• Avoid alcohol, nicotine and caffeine close to bed time, as they can disrupt sleep.
• Make the area where you sleep dark, well-ventilated, and at a comfortable temperature.
• Remove any distractions such as computers, mobile devices and televisions from your bedroom.

The key to better sleep is to create an environment that supports these habits. It may take a few weeks to do so, but the effort is worth it!

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Be $1,000 Richer by Next Year with These Simple Savings Strategies

Wow! May is already here—and if you’re like many Americans your savings account balance is still stuck where it was at the beginning of the year. So what to do? You can’t make up for lost savings opportunities…or can you? We believe that you can with a little bit of discipline. For example, saving $125 a month can be as easy as:

• Renegotiating your mobile phone, cable and other subscriptions.
• Reducing the number of takeout meals you consume.
• Relying on yourself to clean your home or mow the lawn instead of paying for third-party services.

Try these and a few more simple tips for saving serious dollars over the course of the next eight months and you can easily save at least $1,000—which you can deposit directly into your savings account for a kick start to your 2017 financial goals.

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5 Actions to Reduce Cyber Liability Risks in Your Business Today

A quick glance at the news is all it takes to realize that the threat of cyber attacks is increasing for businesses. So how can your business beat the odds and avoid becoming another victim of cybercrime? Try putting the following five action items at the top of your priority list:

1. Encrypt your data. Whether it's bank routing digits, credit card accounts or employee social security numbers, company-held information is what hackers use to steal money, so make sure it is adequately encrypted.
   
   
2. Secure your hardware. Obviously, cyber criminals use the internet to steal information, but others may actually try to steal physical hardware as well. To prevent this, make sure your business has a security system and physically lock down your computers (to desks) and servers (behind controlled-access doors) to make it harder to remove them from your premises.
   
   
3. Secure your network. Unlocked Wi-Fi networks are like an open door to your company’s data. One solution is not to have Wi-Fi at all at your company. The more practical solution may be to disable the service set identifier (SSID) broadcasting function on the wireless router. This creates a cloaked or hidden network, invisible to casual Wi-Fi snoops and accessible only to users with the exact network name.
   
   
4. Install anti-malware and anti-virus protection. Email phishing and apps that access social media accounts are popping up with increasing regularity. Loading anti-malware and anti-virus protection on your computers and mobile devices can help protect your business. In addition, keeping programs and hardware updated is key.
   
   
5. Educate your employees. If just one computer on your network becomes compromised, your entire operation is at risk. Employees are your first line of defense, so make sure you educate them about what to look for and what to avoid (a formal internet policy can help) to keep your business secure.

The risk businesses face from cybercrimes is greater than ever. Implementing these tips will help you mitigate risk and ensure that your company avoids a potentially devastating data breach or other malicious acts, which can compromise both security and business viability.

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Final Check – Did You Claim Every Eligible Tax Deduction?

Every year, American taxpayers leave millions of dollars on the table for Uncle Sam—in the form of unclaimed tax deductions. With Tax Day just around the corner, it’s time to do one final check to make sure that you are not missing out on three of the most common deductions:

• Retirement contribution deductions for single-income couples and the self-employed. It’s not too late to open an IRA account and make a contribution for a non-working spouse or yourself if you’re self-employed to gain an additional tax deduction—plus some additional retirement funding. Simply do it before the tax deadline and keep in mind the maximum annual contribution is $5,500 per person, or $6,500 for people 50 and older.
  
  
• Sales taxes on big ticket items. Tax law allows individuals to deduct the larger of the amount paid in either state income tax or sales tax. While you should check the specific rules for your state, it’s worth checking this potential deduction out, especially if you made a major purchase such as a new car, truck or boat in 2015.
  
  
• Deductions for charitable contributions. Many people contribute to charities throughout the year and incur out-of-pocket expenses. This includes clothing donated to a local shelter or miles driven (14 cents per mile deduction) while volunteering for a charity. Just remember you need a receipt for any contribution over $250.

If you have yet to file your taxes, consider asking your tax professional if you qualify for any of these deductions and take that hard-earned money off the table so you can put it back in your pocket!

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Five Snacks to Spring Clean your Body and Mind

Spring is here and the season for new beginnings. This is a good time to re-think "spring cleaning" and choose snacks that can cleanse our bodies from the inside out.

These five snacks are guaranteed to feed your mind, detoxify your body, and satisfy your palate!

1. Guacamole - High in fiber and “fat” but don’t worry, it’s good fat! Spread it on toast or eat it with veggies. This fruit is not only delicious but contains a ton of antioxidants and glutathione, a nutrient that can block up to 30 carcinogens and detoxify your liver.

2. Kale chips - Kale is king. It’s loaded with antioxidants, vitamins, and minerals and boosts metabolism while providing cancer fighting compounds. Baked Kale chips satisfy the “crunch” we all crave and taste delicious.

3. Raw almonds - Almonds are the perfect grab–and-go snack. Almonds are rich in vitamins and minerals such as magnesium, which helps break down glucose into energy.

4. Greek yogurt - Greek yogurt has fewer carbohydrates and sugar while boasting more protein than other yogurt. It’s a great source of vitamin B12 and potassium, which helps to decrease blood pressure and muscle cramps while increasing energy. Try plain yogurt and add your own fruit or a drizzle of honey.

5. Dark chocolate - Sometimes chocolate is the only thing that will satisfy your craving, so you might as well give in. Dark chocolate is one of the best sources of antioxidants on the planet, plus it has half the sugar and four times the fiber of milk chocolate. Choose 70 percent cocoa content or higher for optimal antioxidant benefits.

Whichever of these snacks you choose, planning ahead is the key to success. Make time to pack your snacks in portion-controlled containers and bring them with you so that when hunger strikes, you aren’t left having a face-off with the vending machine.

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Make Your Spring Break Worry-Free with These Home Security Tips

If you’re packing your bags for a spring break getaway, take a little time before you leave to implement the tips below—they’ll help keep your home safer while you’re gone, and free your mind of worry so that you can truly enjoy your trip.

1. Tell your neighbors that you will be away. Inform your neighbors and friends of the dates that you will be gone and ask them to keep an eye out for any suspicious activity around your home.
   
   
2. Clean up the kitchen. Dispose of any food that will spoil and take out the garbage and recycling. Any food left in the trash or even the sink can rot and may even attract unwanted, four-legged animal or insect scavengers into your home.
   
   
3. Turn off the water. If you live in an area of the country where your pipes might freeze, or if you’re concerned about a plumbing leak occurring while you’re gone, it’s a good idea to turn off the water while you are away so you can avoid a potential indoor flood.
   
   
4. Invest in simple security measures. These easy and inexpensive security tips can make your home more secure: install a light switch timer that can turn your house lights on and off on a schedule; park a car in your driveway to make it look like you’re home; make sure all windows and doors are locked before you go; and just to be safe, put valuables away out of plain sight.

Spring break should be a time to get away and relax, not to be worrying about your home. With these tips, you’ll be able to reduce your risk of theft or damage occurring at your residence, and have peace of mind as you travel.

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Tax Season is Scam Season... Keep Your Information Safe!

The IRS has joined with industry and states on a public awareness campaign to provide taxpayers with easy tips to better protect themselves. For some quick tips, you can watch an informative video here.

Tax-related identity theft occurs when someone uses your stolen Social Security Number to file a tax return claiming a fraudulent refund. To prevent becoming another victim of identity theft, the IRS has compiled the following tips to help keep you safe:

1. Don't carry your Social Security card or any documents that include your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
2. Don't give a business your SSN or ITIN just because someone asks. Give it only when required.
3. Monitor your financial information regularly, including your credit report. You can get a free report yearly at annualcreditreport.com, and several financial services now offer free monitoring at any time.
4. Review your Social Security Administration earnings statement annually.
5. Secure any personal information kept in your home.
6. Protect your personal computers by using firewalls and anti-spam/virus software, updating security patches and changing passwords for Internet accounts.
7. Don't give personal information over the phone, through the mail, or via the Internet unless you have initiated the contact or you know who you are dealing with.

If you have any questions about the security of your tax information, please contact our firm.

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Identity Protection PIN Letters List Incorrect Tax Year

According to a recent IRS notice, due to an error, taxpayers are receiving Identity Protection (IP) PIN letters with an incorrect year listed. If you received the CP01A Notice dated January 4, 2016, be aware that the PIN contained in it is valid for use on all individual tax returns filed in 2016.

The IRS notice incorrectly indicates the IP PIN issued is to be used for filing the 2014 tax return when the number is actually to be used for the 2015 tax return.

If you have any questions, please contact our office.

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Getting Over It… Quick Tips for Beating the Post-Holiday Slump

It’s a stark reality that millions of us face once the holiday season is over: the post-holiday slump. Even just a few days off can make coming back to the office seem excruciating—there’s all that work to do, the anticipation and cheer of the holidays are gone, and for many people the next vacation day is a long way off. Yes, being a working adult is tough, but getting over the post-holiday slump doesn’t have to be with these tips:

Keep the special treats coming. There’s no reason to go cold-turkey on self-kindness just because the holidays are over. Why not savor a festive mug of hot cocoa instead of coffee at your desk? Or bring that nice hand cream you received as a gift to the office and use it when you need a little pampering during the workday.

Flex your schedule, if possible. You know when you’re most productive and energized at work… so try not to fight your natural rhythm. If you’re not as perky first thing in the morning, see if you can start your workday a little later and rejuvenate with some extra sleep. If you like to get things going early, take advantage of this energy and get a head start, then leave a little earlier if you can.

Lighten your load a bit. The start of the new year often means a renewed sense of urgency to get things done. To avoid feeling completely overwhelmed and cranky, try to pace your schedule so that you have time to breathe and get things done as opposed to running from one meeting to the next.

Get on with your goals. If you find it hard to resume the regular routine after the holidays, try to respect your feelings while avoiding getting mired down in self pity. You may find that reevaluating your professional goals can be quite energizing. Break down your objectives into manageable tasks and, “Just do it!” Sometimes getting started is difficult, but once you have momentum you’ll recapture your pre-holiday mojo.

Transitioning back to post-holiday can be tough, but as we all know, all good things must come to an end. So be kind to yourself—and your co-workers—ease back into your regular workdays and tackle the goals that will make 2016 one to remember!

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Customer Service Goes Social—Is Your Business Prepared?

If your business engages in social media, you may have noticed an uptick in the number of customers who are posting questions on your Facebook page, tweeting comments or engaging with your company on other social platforms looking for customer service support. It’s a trend that is affecting just about every type of business—and using social media as a customer service channel will continue to grow in the future. So prepare your company to handle social customer service effectively with these tips:

1. The number one way to preserve your company’s reputation in the social sphere (and beyond) is to continually monitor your social media channels so that you can respond swiftly to questions and comments—especially the negative ones.
   
   
2. Create a Frequently Asked Questions (FAQ) section on your company’s website and link to it in your social media profiles (i.e. the “About” area that is available on many social platforms). This will provide an easy way to for customers to “self serve” and for you and your staff to refer customers to “standard” information when needed.
   
   
3. When it comes to negative comments (and you are likely to receive them no matter how great your business is), no matter how you feel about the complaint, you need to respond publicly, professionally, and immediately. Your objective should be to try to diffuse the situation by acknowledging the customer’s feelings and then to encourage a resolution in private by asking the customer to direct message or email you. Don’t engage in a debate on social media…that will only hurt your business.

Just like in other customer service scenarios, consistency and professionalism are key when you're using social media for customer service. Keep this in mind as you prepare yourself and your team to implement the tips above and master social customer service!

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IRS Simplifies Filing and Recordkeeping for Small Business – Hooray!

In an ongoing effort to keep you informed of IRS changes, we have a new and important one to report. And this time, the change eases your filing burden.

Within the last month, the IRS significantly simplified the paperwork and recordkeeping requirements for small business by raising the safe harbor threshold for deducting certain capital items from $500 to $2,500. This applies to money spent to acquire, produce, or improve tangible property that would normally qualify as a capital item.

The new $2,500 threshold applies to any such item substantiated by an invoice. As a result, small businesses will be able to immediately deduct many expenditures that would otherwise need to be spread over a period of years through annual depreciation deductions.

For more detail on this new change, please read the full IRS article here.

And, as always, contact our firm if you have questions. We are here to help!

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Tis the Season! Avoid Common Holiday Scams with These Tips

As cybercriminals begin to take advantage of the holiday season, it’s important to take extra precautions to avoid having your money, credit card information, social security number, or identity stolen. E-commerce thieves, at this time of year especially, will try to create holiday-related websites, scams, and other phishing e-mails that can trick even the most alert consumers. The following tips can help:

Don’t let your generosity leave you vulnerable to criminals. Many cybercriminals want to take advantage of your generosity by sending e-mails that appear to be from legitimate charitable organizations. Do not click on links in any such email—instead, go directly to the website of charities that you know and trust to make a legitimate online donation.

Make sure things are really signed, sealed, and delivered. During the holidays, cybercriminals often send fake email invoices and delivery notifications appearing to be from Federal Express, UPS, or the U.S. Customs Service. These e-mails may ask for credit card details or require users to open an online invoice or customs form to receive a package. Such actions can result in stolen information and/or malware being installed on your computer. It is best to check with the specific delivery service directly before answering these emails.

Stop before you shop. It’s important to think about where you are doing your holiday shopping—even if it’s online. You may be used to shopping on your tablet or phone, but if you’re doing so on an unsecured Wi-Fi network or an open hotspot, a hacker can easily steal your personal information…so wait until you get home to shop online.

Be merry and wary when doing festive online searches. It’s sad but true. During the holidays, hackers often create fraudulent holiday-related websites based on popular searches for holiday ringtones or wallpaper, Christmas carol lyrics, or festive screensavers. Downloading such files may infect your computer with spyware, adware, or other malware, so be careful in your quest for holiday fun online.

While it pays to be vigilant about protecting your personal and financial information all year round, it’s especially important to do so during the holidays when criminals are counting on us to be hurried, distracted, and more active online. Use the tips above to help prevent being the victim of an unexpected holiday cybercrime.

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The Key to Scoring on Black Friday? Create a Pre-Game Plan

The countdown is on to the what retailers hype as the best shopping day of the year—the day after Thanksgiving dubbed by Americans as ‘Black Friday’—represents the kick-off to the holiday shopping season. However, given the explosion of retail competition and the Internet in the past several years, Black Friday is really not what it used to be. And if you’re not careful, you can end up spending more than what you planned on poor quality merchandise.

The key to scoring real deals is to go into the holiday shopping season with a pre-game plan. Retail analysts offer this advice: Do the homework by researching deals and create a game plan in advance. In addition to the copious number of direct mail and email offers you’re likely receiving now, don’t forget to checkout social media for exclusive deals as well. Then make a list of the absolute best deals on the items that you need to check off your holiday gift, décor, and entertaining lists.

The bottom line is that while you can certainly find some great deals on Black Friday, you need to be aware that much of the advertising is just hype—so don’t let it overtake your logic when it comes to your spending. Set a Black Friday budget prior to heading out to the stores or to your favorite retail websites, stick to your list, and take a moment to think through your purchases before making them—but by all means, take the opportunity to score some big savings if given the opportunity!

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It’s Tax Planning Time—Here Are Some Money-Saving Tips for Individuals and Businesses

With just a few short weeks to go before the end of the year, it’s important to take a look at your tax situation and consider ways to decrease your tax obligations. In other words, it’s time for tax planning. We put together the following tips for you to support smart tax decisions:

1. Stay apprised of potential tax provision extensions. Congress still has time to extend some popular tax provisions before the end of 2015, so keep an eye out for news on provisions including (but not limited to): taxpayers 70.5 years and up can make tax-free charitable contributions, businesses can deduct half of eligible equipment placed in service, and more!
   
   
2. Track the time you spend on business activities. Business owners may be exempt from the 3.8 percent Medicare tax on business income if you are active enough in the business to avoid being a “passive investor.”
   
   
3. Keep on top of information reporting. Make sure you complete your mandatory reporting on time this year to avoid potentially large penalties.
   
   
4. Make good on your state and local tax obligations. Remember that State and local governments impose their own filing and payment responsibilities with income, sales, and property taxes to avoid added penalties.
   
   
5. Accelerate deductions and defer income. When it comes to taxes, you want to accelerate deductions and defer income. How? Consider deferring bonuses, consulting or self-employment income; also consider accelerating state and local income taxes, interest payments, and real estate taxes.
   
   
6. Do you anticipate a tax shortfall? Take care of it with increased withholding. Check your withholding and estimated tax payments now while you still have time to fix the issue. If you face an underpayment penalty, you can eliminate the shortfall by increasing withholding on your salary or bonuses.

Our firm can help you take an in-depth look at your current tax position, explain how changes to the tax code will affect you and your business, and help you implement strategies to reduce your tax bill. Contact us today so you can benefit from advance planning this coming tax season.

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Our New Website!

Barwick CPA is excited to announce the recent launch of our firm’s new website. We’ve been working very hard to enhance our website and give our firm a fresh look. We’ve also continued to research and identify the latest and greatest technologies to improve the services we provide and ensure we continue to meet your needs.

Take a moment to look around our new website and review some of our advanced features, like our Client Center. The Client Center is designed to provide you with a highly secure and convenient web-based tool to access your financial documents, data, and collaborate with our firm in real time.

We hope you like what you see. It’s the same great service, just with a new look and feel. We look forward to hearing your feedback.

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4 Steps to Finding the Sweet Spot for Success

Ah, the sweet smell of success! Achieving goals and bringing our vision to fruition is the end-game for most of us, especially in our business lives. Unfortunately, success can sometimes elude us to the point where we have to start looking at what, exactly, is going wrong. Perhaps, though, the question we ought to be asking is this: What is going right? By honing in on what is bringing you or your company the results you want, instead of focusing on the things that are taking you further from where you want to be, you can discover your sweet spot—the place where you can find true success.

So how do you find your sweet spot? We’ll get to that in a minute, but first, let’s define what we mean by sweet spot. The sweet spot (for an individual or a business) is the intersection of the things that you are good at and come (relatively) easily to you or your team, and the things that the market (or an employer) is willing to pay for.

Finding your sweet spot as an individual professional and as a business owner is important because it allows you to operate with efficiency, strength and, usually, profitability. Surprisingly, many people and even entire companies continue to struggle without ever finding or leveraging their sweet spot. If you haven’t found your sweet spot yet, then now is the perfect time to start looking by following these four steps:

1. Cultivate your core competencies
Finding your sweet spot is really an inside job. It’s not about trying to add to what you have, it’s about leveraging your existing core competencies. You (or your business) made it this far, so you must have some valuable competencies that you can leverage into a viable career, company, or new product or service.

2. Seize on your strengths
Making a list of what you love to do (or what your company does well and profitably) is a great way to hone in on your strengths and identify your sweet spot. Maybe you love to design websites, create winning proposals, sell, write, do financial analysis, or sew cushions—whatever it is, it’s likely something that can lead you to your sweet spot. The other important thing to keep in mind is that you need to match up your strongest skills and talents with market demand. For example, while you may love to crochet potholders, the market may not support building an entire empire on that one activity alone.

3. Listen to your fans
Do people always tell you that you have an aptitude for art? Or do your customers rave about the unique flavors of cupcakes that your bakery only offers periodically? Make notes about what people praise you or your business for—and chances are, the exceptional things that others notice likely reside at the center of your sweet spot.

4. Start seeing your sweet spot
Now that you’ve identified your core competencies, your strengths, and the things that you are objectively good at (according to your fans), put them all together and start seeing where your sweet spot lies. Once you do this, consider if there are things that you are innately good at that can be monetized (i.e. people have a need for what it is you provide and will pay decent money for it). Once you have these figured out, create a plan to bring them to market. (Or, if you’re an individual, highlight them on your resume.)

If you’re seeking success and it seems to be eluding you, consider working toward identifying your sweet spot…the place where the things that you (or your team) are good at and the things that the market (or an employer) is willing to pay for come together in sweet harmony. While it may take a little bit of work on your part, the dividends of doing something you truly love and are well-suited for will be well worth the effort.

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