A Lame Duck still Quacks

All the votes have been tallied and all the precincts have reported…some people are happy with the outcome and some are not. Whether your Congress person won or not is not the issue at this point, the issue lies in what is going to happen in the lame duck session of Congress for the rest of the year and will you as a taxpayer be prepared. Here’s a quick rundown of what is on the table for taxpayers before the year ends:


• Bush Tax Cuts extended?

• Estate Tax?

• AMT?

• Health Care Reform?

I am not a betting man but would have to think that more than likely some taxes are going to go up. What taxpayers do before this year ends is important but you may need to call the psychic hotline or a crystal ball to assist you. When I looked into my crystal ball this is what I have come up with.


Be sure to speak to your tax professional (psychic) to ensure that all of your ducks are in a row for the upcoming tax season.

The Tech Accountant

IRS Plans to Retire

Those small business owners that are interested in establishing retirement plans for their employees, the IRS is here to help. Recently the IRS setup a retirement plan website that can assist small business owners with setting up tax-favored retirement plans, maintaining the plan, and fixing any errors that may occur while administering the plan. Setting up a retirement plan has many benefits for both the small business and their employees. Small businesses can benefit from a retirement plan because their contributions being tax deductible, there is a potential for tax credits for setting up a plan, and the possibility of hiring and retaining better employees. Employees’ benefits can include deferred taxes on plan contributions, investment gains on plan assets are not taxed until distribution, and retirement plan assets can be transferred from one employer to the next. These are just a few of the benefits of setting up a retirement plan, be sure to stop by the IRS retirement plan website and see how setting up a plan can benefit your small business and your employees.

B. N. S.

Your New Financial Advisor….The Government

If the government has it way, taxpayers will have a new financial advisor to assist them with their saving initiatives. There is current proposed legislation that would create the Consumer Finance Protection Agency (CFPA) and this agency would create a savings account for you that would automatically take your tax refund and deposit it into the account. Additionally any increases in your pay scale would also be added to the savings account thus the taxpayer would not have to worry about building a sound foundation of savings.

The rationale for creating the agency is that many taxpayers need the protection of the government from unscrupulous companies in the financial and credit markets and that most taxpayers need guidance when it comes to saving money. Many accountants and financial advisors feel that there is a better way to go about educating taxpayers about saving. Be sure to post your comments and opinions about this potential legislation and also write your congressional leader to express your opinions for or against.

Keeping Your Business N Synergy

A waiver goodbye

Taxpayers that are in their retirement years are provided a small bit of relief for 2009 with regards to their IRA’s. According to the IRS there is a temporary waiver being offered of the required minimum distribution rules. Taxpayers are not required to take a minimum distribution from their traditional IRA. The waiver is available to IRA participants and beneficiaries.

The change means that taxpayers can take withdrawals a year later than the past. With the economy down, the change allows retired taxpayers to not dip into retirement funds after waving goodbye to the majority of the retirement income. There are additional details regarding the waiver, so be sure to speak to your professional tax advisor for details regarding eligibility.

Your Taxes N Synergy