Category: Finance / Taxes

Pension/Profit Sharing Update

As a courtesy by Don Motel, who runs DGM Company in Wayne, Pennsylvania, I thought it would be helpful to pass along the maximum limit adjustments for 2006 pension and profit sharing plans together with 2004 and 2005 limits for comparison: MAXIMUM LIMITS 2004 2005… Continue reading

IRS Issues Notice That It Will Focus Its Microscope On S-Corps

    Due to the phenomenal growth of S-corporations over the past 20 years, the IRS has recently announced that it is getting ready to measure S-corp and shareholder compliance.  In its announcement, the IRS indicated that it would randomly select for examination 5,000 S-corp… Continue reading

Bankruptcy: A Brief History and the New Law

  In October 17, 2005, the new bankruptcy law went into effect; it affects individual filers, large and small, corporations and creditors.  The new law marks the biggest change to bankruptcy law since 1978, and prohibits some people from filing for bankruptcy entirely. The word… Continue reading

To Be Considered: The Roth-401(k) Plan

Several years ago, anticipating the burgeoning elderly population and to encourage people to create their own pension funds, Congress created the Investment Retirement Account (“IRA”) and a similar plan popularly called the “401(k) plan”; subsequently these were followed by  a plan which has been designated… Continue reading

New Uses for the Old IRAs

Much of the press given to the changes in Individual Retirement Accounts (“IRAs”) in the Taxpayer Relief Act of 1997 has been directed at the new Roth IRA. However, there are other changes that benefit those who have existing “traditional” IRAs. The biggest change is… Continue reading

You Are Your Credit Report

Important decisions are made based on the information in your credit report; not just about whether you receive a credit card or a car loan, but even whether you get insurance or a job. In most cases your credit report will be the determining factor… Continue reading

Watch For Those Trust Fund Taxes!

  If you operate a small business and have employees, you should be familiar with the rules regarding the collection and payment of trust fund taxes. If you are not careful, you could become personally liable if these taxes are not properly accounted for and… Continue reading

The Bait/Switch Referral Sale Pyramid Scheme

  What do the above consumer scams have in common? They were all made illegal by Pennsylvania‘s Unfair Trade Practices and Consumer Protection Law (“Consumer Law”). The Consumer Law declares unlawful: Misrepresenting a product’s brand. Misrepresenting the source, sponsorship, or certification of a product or… Continue reading

Year-End Tax Tips

It’s not too late to plan for your 1999 individual income taxes. Between now and December 31 you can take steps to change your 1999 tax picture significantly. Some ideas: If you are debating whether to donate stock or cash to a qualified charity, you… Continue reading

Foundations Made Easy

Several months ago we commented upon a method which was designed to reduce an individual’s federal estate taxes to zero. One of the key components of this type of estate plan is the organization of a family foundation. We have worked with a number of… Continue reading