Michael Gray, CPA’s Tax and Business Insight

Table of Contents

• Have you set an appointment or sent your information yet?
• Thank you!
• Report on Dan Kennedy’s Customer Appreciation Seminar.
• >Eliyahu Goldratt Broadcasts Seminar Series On The Web.
• How Motor Vehicle Salespersons Should Report Manufacturer’s Incentives.
• How To Pay Federal Income Taxes By Credit Card.
• California Roth Conformity Uncertain.
• Visit Our New Articles.
• Subscribe to Michael Gray, CPA's Tax and Business Insight

Have you set an appointment or sent your information yet?

Time has a way of getting by us. The filing deadline for calendar-year corporations is March 15. (17 days left!) The filing deadline for individual income tax returns is April 15. (48 days left!) Send your tax information or make an appointment today!

Return to Table of Contents

Thank you!

Dick Blakely and Jim Brockman of Smith Barney each referred clients that we met with during the past month. Thanks, Dick and Jim!

Return to Table of Contents

Report On Dan Kennedy’s Customer Appreciation Seminar.

I attended a one day (8 a.m. to 10 p.m.!) customer appreciation seminar by marketing guru Dan Kennedy on Saturday, February 20. Dan shared a lot of "street smarts" that we need to be reminded of, obviously too much to detail here.

The basic message was we should each take control our lives, including the terms of how our businesses will operate. Almost as important as deciding what we want from our business is deciding what we don’t want in our business.

When we have problem clients/customers or employees, it’s usually best to part with them. If we are marketing properly, the vacuum will be filled.

Dan discussed the personal satisfaction factor. You should engineer your business the way you want it to be. Nothing is worse than achieving a success you don’t like! You will be miserable, and no amount of money is worth it.

Return to Table of Contents

Eliyahu Goldratt Broadcasts Seminar Series On The Web.

Eliyahu M. Goldratt, author of The Goal, is making an 8-session series of lectures on his management theories (especially helpful for manufacturers) available on the web for a minimal investment of US $500 per registrant. This is a considerable savings from what was offered for the satellite broadcast, not to mention the investment for attending a "live" session. The series will be available from March 4 to May 12. Write to agi@goldratt.com for details.

Return to Table of Contents

How Motor Vehicle Salespersons Should Report Manuafacturer’s Incentives.

The IRS recently issued Publication 3204, which states that motor vehicle salespersons should report manufacturer’s incentives as "other income" on line 25 of Form 1040. The payments are reported by the manufacturer ("factory") to the salesperson on Form 1099-MISC. The payments are not treated as wages. Therefore, these payments are not subject to Federal income tax withholding, social security, Medicare or Federal unemployment tax.

This has been a controversial item for some time. The announcement by the IRS is probably the result of negotiations with the National Automobile Dealers Association. Previously, the IRS claimed the payments were employee compensation subject to employee and employer taxes.

Return to Table of Contents

How To Pay Federal Income Taxes By Credit Card.

The IRS has announced two different methods taxpayers may use to charge their income tax owed to a credit card. (IR-1999-11)

The first method is to call, toll-free, 1-888-2PAY-TAX. You can use MasterCard, Discover Card, or American Express card with this option.

The second method, available starting February 28, requires using Intuit tax preparation software (Turbo Tax) and a Discover Card.

Return to Table of Contents

California Roth Conformity Uncertain. (Residents of other states should read this, too!)

California still hasn’t conformed to 1998 Federal changes in the Roth IRA rules. Conformity legislation probably will not be passed in time for people who file their income tax returns on April 15, 1999. The main impact of non-conformity relates to Roth conversions during 1998. As a reminder, when qualified taxpayers convert a regular IRA to a Roth IRA during 1998, the income is taxable over a four-year period. The 1998 legislation enables a taxpayer to elect to have all of the income taxed in 1998. This election can be particularly important for taxpayers who move to California from another state. The balance of any Roth conversion income taxable after moving to California will be taxable in California.

If this is a concern, consider filing an extension for your 1998 income tax returns, and planning on including all of the income on your 1998 income tax returns. File your returns after the tax legislation is passed. The current bill proposing retroactive conformity is SB 93 (Chesbro.)

Return to Table of Contents

Visit Our New Articles!

• The Richest Man In Babylon Book Review
• How To Make Your Business Explode With More Referrals

Return to Table of Contents

P.P.S.

To receive the next issue of Michael Gray, CPA's Tax & Business Insight with more tax developments, another book review, and upcoming deadlines automatically via email, subscribe by filling out the form below.

Return to Table of Contents

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this communication was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.