AM Cast, Inc. - Articles

Some tips from the Better Businness Bureau

no@spam.com (Tomaso Veneroso) — Wed, 27 Feb 2008 09:25:11 PST

It’s been seven years since the nation’s last recession, and some analysts fear the U.S. is again entering an economic slump. Recession is a worrisome subject for small business owners, but Better Business Bureau (BBB) has some time-tested advice to help small businesses stay afloat and weather the storm.

Considering the downturn in the real estate market with foreclosure filings rising 75 percent from the previous year to 2.2 million, a financial services sector that lost 13 percent of its market value in 2007, and some regional unemployment rates well above the five percent national average, some areas of the country are already experiencing their own recession.

For small businesses, indicators of an economic downshift will include lower sales, but could also be potential customers and partners taking longer to negotiate and sign contracts or taking more time to pay. Maintaining cash flow is critically important. Small businesses need to find ways to control expenses, get lower interest rates on existing loans, liquidate inventory, and provide solutions for customers who are also feeling the pinch.”

Here are some BBB tips on how to position your business during a recession:

Cash Flow is King

Cash flow is the key to surviving a recession. Small businesses should look at all of their margins, including payroll, marketing, rent and supplies, and must be active in pursuing accounts receivable. Also, with interest rates dropping in recent months, small business owners may want to consider re-financing on existing loans as a means of generating or maintaining cash flow.

Marketing Budget

For many small businesses, marketing is among the first items to be cut back or eliminated when a recession hits. However, this might not benefit your business. Think hard before trimming the marketing budget at a time when your firm may need to be prospecting for new customers.

Sales Strategy

Many owners may find that their best prospects for new revenue are existing customers and clients. Tap into established relationships and your knowledge of a client’s needs, with a goal of finding solutions to keep current customers satisfied. See: March 11 BBB networking breakfast program - “Warriors for Customer Loyalty” - at Saks Fifth Avenue. Click here to see details about the program, costs, and to register online.

Pricing Strategy

Products and inventory must move to generate cash flow. Small business owners should consider pricing strategies to liquidate old inventory. Cutting prices, bundling products and providing deals may be necessary to attract customers and sell old or slow-moving merchandise.

Customer Feedback

Customer feedback is critical during economic slowdowns and customer satisfaction should be a top priority in a recession. Owners need to find out how customers might respond when things slow down, what will they want and need, and then be prepared take action to provide those products and services. Keep an eye on your record with the BBB for helpful insight into the customer experience with your firm!

Keep an Eye on the Competition

The small business landscape is extremely competitive. The BBB is recommending that owners keep an eye on, learn from, and be prepared to respond to what competitors do during periods of recession.

Taxes: this intricated game

no@spam.com (Tomaso Veneroso) — Wed, 27 Feb 2008 06:35:48 PST

When you think that you have a clear idea on taxes the Government make sure to confuse you even further.
Confusion arise especially when the government hands out money.

Time limit when Treasury owns money.

If you are entitle to a refund but you do not file your tax return you have to file whitin three years from the date of return was due in order to collect that refund.

A year ago the IRS announced that unclaimed founds totaling $2.2 billion were awaiting about $1.8 million people who hadn't file a fed tax return for 2003.

In order to benefit from the economic-stimulus check this year you simply need to file a tax return for 2007.If you do not file for this year you wont get anything for 2008.

If you sell your home for more than you have paid for it you do not need to reinvest in a new home whitin certain time to get the most tax benefit.
In particular you can exclude up to $250,000 or $500,000 if you are married and file joint.
To qualified for the exclusion you need to live in the home that you have owned for at least two of the five years prior to sale.
You may be entitle for those exclusions if you are going to change a job or health.
There is some help on the way for widows and widowers from Congress.Under the new law a widow can take advantage of up $500,000 of exclusions if she sells the home in within two years from the death of the husband.

In case of a loss on a sale of a home the IRS it is very strict and states that the " loss on a sale of your main home cannot be deducted". ( IRS 523)

The law allowing to deduct the state and local sales taxes has expired at the end of last year therefore you can still take advantage of it on your tax return for 2007.

You do not have to live in a state with no income tax to be eligible to deduct sales taxes.

Congress did not change the rule for the alternative minimum tax ( the so called patch applies only to the 2007 tax year and not 2008). Unless Congress take action about 26 million people will be ensnared by the AMT.

If you have neglected to claim the one-time phone -tax refund on the last year tax return you need to file an amended return for 2006 on Form 1040X.

Relief for homeowners with the new tax form

no@spam.com (Tomaso Veneroso) — Tue, 26 Feb 2008 05:56:39 PST

It seems to be a little less painful year for many taxpayers who are preparing their 2007 returns.

Most filers will get special payments from the government due to the economic stimulus plan , in addition the deductions will be clearly marked on the 2007 forms.
There is also a new deduction for mortgage insurance.

On the down side there are tough new record keeping rules for charitable donations.

Here are the major changes and the effect on our income:

Stimulating payments.

The Treasury is planning to distribute 112 billion in economic-stimulus payments to individuals starting in May.
To get our payment we need to file the return for 2007.
Many upper income families won't benefit much because of income limits ( phase out begins for individuals at $75,000 and for married couples filing jointly at $150,000.00

Mortgage Insurance

This new deduction will help people who purchase and paid for mortgage insurance during 2007.
Of course not everyone is eligible. The deduction begin to phase out once the adjusted gross income exceeds $100,000. It also does not apply to mortgage insurance contracts issued before 2007.

Clearer deductions.

Some taxpayer that do not use software to prepare for taxes will find easier to claim deductions fro 2007 than one year ago.Among them is the one that allows taxpayers who itemized deductions to choose to deduct their state and local sales taxes instead of state and local income taxes.

Charitable Donations

You required to have documentation for all charitable cash contributions no matter how little they are. Examples are bank record, such as a canceled check or a statement showing the name of the charity,date and amount or a detailed written receipt.

Mortgage Debt Relief

Debt forgiveness usually result in taxable income but in the new law taxpayers may exclude debt forgiven on their principal residence if the balance on their loans was less than 2 million ( the limit is $ one million for a married person filing a separate return). *( See IRS Form 982)

There is an electronic and paper version of the form 982. The official encourage to file electronically because it means faster refunds and fewer errors.

Mileage Rate

If we used our car to work we have a choice to deduct our actual cost or relying on the IRS standard rate.
( from 44.5 cents a mile in 2006 rose to 48.5 cents a mile for 2007).

The AMT

The AMT has grown rapidly in recent years and now the people effected by it have rose significantly.
Last year , Congress took some measures to prevent for addition people to be caught on the AMT for 2007.
Unless Congress change the rule again , 26 million people will be hit by the AMT for 2008, up about four million for 2007 and 2006.

Standard deduction.

The basic standard deduction for 2007 rose to $10,700 for joint filers from $10,300 for previous years.
For most singles , it's $5,350 for 2007 ,up from $5,150.
There are additional amounts for those who are 65 or older, or who are blind.
Nearly two thirds of all filers claim the standard deduction instead of itemizing.

Bush and the stimulus package

no@spam.com (Tomaso Veneroso) — Mon, 25 Feb 2008 06:49:36 PST

Bush has signed few weeks ago a multi billion dollar economic rescue package.
This will mean that a lot of American families will have a rebate between $300 and $1200.

The partisan war seems to get a brake when it comes to agree on measures to relive the potential recession.

Rebates are going out in May for low-income people and Social Security veterans. A lot of incentive ( tax breaks) for business that invest in plant and equipment are in the plan also.

Most taxpayer will get rebate between $600 to $1200 dollars with additional $300 per child.
The higher-income ones ( making more than $75,000.00 or couple exceeding $150,000.00 ) are going to get smaller rebates ( $50 less per $1000.00 that they make).

Economic analysts generally agrees that this economic package will help Economy only if the rebates will stimulate the spending and therefore help the downturn.
Congress says that if this " stimulus" is not enough they are ready to pump more money .
Bush says that the current measure should have " enough impact".

Congressional leaders are working on other measures, beside the " Economic Stimulus Plan" to rescue transportation spending,unemployment aid housing crunch that's at the base of the current Economic situation.

Economist are concerned that most of the rebates will be used by consumers to pay bills rather than to spend the money and spur growth.

The pools says most of the people will pay bills with the tax rebates.

The last time that government sent out rebate in 2003 consumers spend a little less than one third on the first six months and about two third in the first year.( Cfr: University of Michigan Survey of Consumer)
After rebates were sent out in 2001 , just 22% said they would mostly spend them, rather than saving or using it to pay off debt,and only one-third of the rebate was spent in short run . ( Cfr:University of Michigan Survey of Consumer)

Vulcan Material Co.,western Division, Climate Action Leader

no@spam.com (Tomaso Veneroso) — Fri, 15 Feb 2008 06:44:37 PST

Vulcan Material Co., Western Division , has been designated as a Climate Action Leader by the California Climate Action Registry following verification of the company 2006 inventory report.

Reporting greenhouse gases to the Registry is one part of Vulcan’s Western Division’s larger initiative to address the challenges of climate change. According to a press release from Vulcan, the company began to explore opportunities to quantify its contributions to reducing greenhouse gases at its facilities. For example, the design and construction of its newest aggregate plant in Corona, Calif., uses a downhill conveyor that generates electricity as it carries the rock to a processing plant below.

Lorman Education Services " Immigration Issue for Construction Professional"

no@spam.com (Tomaso Veneroso) — Wed, 13 Feb 2008 13:04:54 PST

Register Today For This Exciting Event.

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Teleconference Highlights:
This teleconference will provide strategies for construction companies to evaluate and implement to avoid or minimize risk to the company. Government visits are increasing for all companies and it is important to have a plan of action in place prior to the government knocking on the company’s door. We will review the proper steps to complete an I-9 form and to audit an I-9 form, while also encouraging the use of a W-9 form with employees. We will address how to respond to Social Security mismatch letters and other inquiries from government agencies that are happening more frequently. Learning Objectives: • The attendee will be able to how to conduct an I-9 Form Audit to protect your company. • The attendee will be able to review to correct I-9 mistakes. • The attendee will be able to discuss social security mismatch letters.

View Complete Agenda

Who Should Attend:
Project managers, presidents, vice presidents, owners, contractors, subcontractors, engineers, principals, contract managers, developers, architects, lending and loan professionals, accountants, controllers, purchasing professionals and attorneys

Faculty:
Julie A. Pace, Ballard Spahr Andrews & Ingersoll LLP

Detailed Faculty Information

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CPE
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Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Detailed Credit Information

(Call 1-866-352-9540 for further information)

One attendee may receive credit per registration. Additional attendees may receive credit by registering at the additional attendee discount price.

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Seminar ID: 379774

Your priority code is: 527174. Please mention this code when registering.

Register online at: Lorman

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By fax or mail: Print & fill out the following form and fax to (715) 833-3953 or mail to PO Box 509, Eau Claire, WI 54702

What to expect from IRS

no@spam.com (Tomaso Veneroso) — Tue, 12 Feb 2008 06:01:58 PST

IRS, with a bipartisan agreement to give more money to combat tax cheating, is trying to reduce the $290 billion a year “tax gap”.

The idea is to squeeze money out of those who owe taxes rather than raising taxes especially in an election year.

One significant proposal that has a unanimous consent is the one that would require many brokerage houses, mutual founds or other institutions to report to the IRS what investors pay fro stock and other securities.

Many companies already keep track of such data for customers but they are not required to do so or report it to the IRS.

This proposal, if enacted, would improve compliance on capital gain taxes and would raise an estimated $7.5 Billion over 10 years.

In addition Congress is expected to increase the IRS’s budget especially for audits of high income taxpayers and self-employed workers. Spending on enforcement would rise more than 7%.

The lawmakers are pressing the IRS to increase the nation’s overall tax compliance rate that in 2001 was 86%.

One way to improve compliance, according to treasury officials, is to require cost-basis reporting.

For long time officials have suspected some investors of overstating their costs and thus underpaying taxes.

The plan would have a positive side effect which is make it easier for law –abiding investors to keep track of their costs.

According to Tim Hanford, a tax-policy consultant and a White House Ways and Means committee staffer, there will be some administrative difficulties in getting the basis-reporting rules implemented but will provide good enforcement tool to collect tax due on security sales.

The Treasury proposal, if approved, would apply to securities acquired after the end of 2009.

Beside this proposal the Bush budget include increased criminal penalties for “willful” failures to file tax return.

The President proposes elevating this offense to a felony from a misdemeanor. Also this proposal would be effective for returns filed on or after January 1^st 2009.

According to a recent survey of 165 tax and finance executives by Miller & Chevalier (Washington Law Firm) we should not expect many major tax changes this year except reviving a law allowing tax-free transfers from IRS to charity.

NSBA on patent reform

no@spam.com (Tomaso Veneroso) — Wed, 06 Feb 2008 13:18:10 PST

In a rare display of bipartisan, bicameral cooperation, the Patent Reform Act of 2007 (H.R. 1908 and S. 1145) were introduced simultaneously on April 18, 2007 in an effort to provide the first substantial overhaul of the U.S. patent system in 50 years. While recognizing that certain aspects of America’s patent system may be in need of updating or reform, the small-business members of the National Small Business Association oppose the specifics of this particular effort.

Background
H.R. 1908 was introduced by Reps. Howard Berman (D-Calif.), chair of the House Judiciary Subcommittee on Courts, the Internet, and Intellectual Property, Lamar Smith (R-Texas), and Rick Boucher (D-Va.), and co-sponsored by twenty-one additional representatives. On July 18, the House Judiciary Committee approved-—by voice vote-—an amended H.R. 1908, and on Sept. 7, the full U.S. House of Representatives passed an amendment in the nature of a substitute of the bill in a 220-175 vote.

S. 1145 was introduced by Sens. Patrick Leahy (D-Vt.), chair of the Senate Committee on the Judiciary. It is co-sponsored by Sens. Robert Bennet (R-Utah), Larry Craig (R-Idaho), John Cornyn (R-Texas), Mike Crapo (R-Idaho), Orrin Hatch (R-Utah), Ken Salazar (D-Colo.), Chuck Schumer (D-N.Y.), Gordon Smith (R-Ore.), and Sheldon Whitehouse (D-R.I.). S. 1145 was approved by the Senate Committee on the Judiciary on July 19, in a 13-5 vote—with the understanding that work on the bill was not yet complete and that it would later be amended.

Outlook
The outlook for further Senate action is unclear, but Senate Majority Leader Harry Reid (D-Nev.) previously indicated a desire to bring the measure to the floor in the near future, possibly as early as February. A draft committee report on S. 1145, by Sen. Leahy, already has been informally circulated. The comprehensive and methodical report seems aimed at setting the stage for congressional action in the coming year.

With Sen. Leahy expected to propose a manager’s amendment (which could be coordinated with the House bill), any bill considered by the full Senate is expected to differ somewhat from the version that the Senate Judiciary Committee approved in July. Nonetheless, many of the provisions outlined in the report simply have been carried over from earlier drafts.

NSBA Position
NSBA opposes this proposal, and the patent reform legislation already passed by the House of Representatives, due to its failure to take into account the unique needs of small-business innovators. While S. 1145 includes a multitude of major provisions that specifically disadvantage small-business innovators, the following provisions are of chief concern:

First-to-Invent to First-to-File Conversion
Despite the appeal of international harmonization, America’s unique patent system—and its singular ability to harness and protect the country’s small inventors—has played a fundamental role in helping it achieve its status as the global leader in technological innovation.

The first-to-invent patent system has been a major mechanism for the dynamism of small business innovation. It guarantees that carefully and well-developed inventions are patented and at much less expense to the patentee than in first-to-file countries.

While the National Academy of Sciences report recommends reducing international inconsistencies in patent law, it also recognizes that, “Continuing high rates of innovation suggest that the patent system is working well and does not require fundamental change.”

Post-Grant Patent Challenges and the Broad Expansion of USPTO Powers
Administrative decisions such as those outlined in S. 1145 are more susceptible to lobbying and backroom maneuvering than judicial review. Furthermore, it is not evident that it is in the best interests of America’s most-vulnerable innovators to grant broad rulemaking authority to the USPTO.

This attempt at broad patent reform could be potentially devastating to America’s most productive yet vulnerable innovators. The effect this legislation would have on America’s entrepreneurs has not been appropriately examined, and NSBA urges very careful consideration before the Senate moves forward.

Cfr : NSBA

Found on NSBA

no@spam.com (Tomaso Veneroso) — Wed, 06 Feb 2008 13:14:54 PST

The Senate is scheduled to take-up the economic stimulus bill (H.R. 5410) this afternoon, Feb. 6, based on a package that passed the Senate Finance Committee with bipartisan support. It would surpass the cost of the House’s bill by roughly $40 billion. Lawmakers are hoping to pass a stimulus bill before Congress begins a week-long recess on Feb. 16.

The House-passed bill, with an estimated $146 billion price-tag, gives individuals rebates of $600, with an additional $300 for each child. High-income individuals would be gradually phased-out, beginning with those who earn between $75,000 and $87,000, and low-income individuals would get a portion ($300) of the rebate, as long as they earned at least $3,000 in 2007.

The Senate proposal—estimated to cost roughly $200 billion—gives individuals $500, with an additional $300 for each child. High-income individuals would be gradually phased-out between the $150,000 and $160,000 mark, and low-income individuals earning more than $3,000 per year, including veterans and Social Security benefits income, would be eligible for the full rebate. The Senate Finance Committee version prohibits Members of Congress from receiving a rebate, and clarifies that illegal immigrants are ineligible.

The House bill includes increased loan limits for the Federal Housing Administration (FHA) from $362,000 to $729,750, as well as increased limits for Fannie Mae and Freddie Mac, from $417,000 to $729,750. The Senate Finance Committee agreement does not have such a provision, but one is expected to be included in the final package voted on by the Senate.

Both the House and Senate Finance Committee versions include a restoration of the bonus-depreciation write-off—although Senate negotiations are still underway on whether or not this will make the final cut—which would allow firms to deduct 50 percent of the purchase price of manufacturing facilities and other capital equipment in the year it is put into service. Additionally, small business would be given an immediate, but temporary, increase on Section 179 expensing up to $250,000—doubling the current level—on new and used equipment.

The Senate Finance Committee version includes an extension—from the two years in current law to five years—on net-operating-loss carryback, which would allow business owners to offset one year's losses against another year's income. The package also would provide $5.5 billion in tax breaks to boost renewable energy incentives, extend unemployment insurance benefits, and expand the tax-exempt mortgage revenue bonds that states can offer to help fund low-income housing and low interest mortgages by $10 billion over the next three years.

In the past week, debate over the bill, its contents, and the procedure to amend and vote on the bill has been contentious, with Senate Minority Leader Mitch McConnell (R-Ky.) seeking to eliminate the provision that would give rebate checks to individuals based on their veterans and Social Security benefits income. Senate Majority Leader Harry Reid (D-Nev.) has rebuffed this request—implementing a procedure called “filling the tree” to block any amendments from Republicans—and will instead push for a vote on the Senate Finance Committee agreement with the inclusion of House-passed FHA, Fannie-Mae and Freddie-Mac language and an additional $1 billion in low-income heating assistance.

With several moderate Republicans already supporting the measure, Senate Finance Committee Chair Max Baucus (D-Mont.) expressed confidence that his Committee’s proposal would garner the requisite 60 votes. The Republican leadership in the Senate has been critical of the proposal and the process, however.

There is a little relief in sight for the U.S. Dollar

no@spam.com (Tomaso Veneroso) — Mon, 07 Jan 2008 07:52:16 PST

U.S. is expected to hit the all time high of $1.4968 vs the Euro Dollar.