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Expanded post tax season issue
We're bursting with post tax season planning ideas to save you and your business time and money
(If the links or images don't appear in your email, click here for a web-based version)

SCA goes to the movies!

It appears that Hollywood has become infatuated with tax law! A recent Law and Order episode was entirely devoted to the problems presented due to the estate tax lapsing in 2010 but returning with a vengeance in 2011. The Law and Order plot centered around the District Attorney's investigation of a medical clinic that prolonged the patient's life through December, 2009 so that he would die in 2010. The heirs avoided millions of estate tax. Our favorite part (of course) is that tax advisor saying , "Hey, I did nothing illegal except explain the tax code to my client." In case you missed it, here's a clip (just click the picture below) of the tax law episode featuring both the tax and medical professionals.

A Jacksonville TV producer is releasing a new show premiering on June 6 entitled IRS Hitman. This television coverage got us thinking about the real value we could add with our own TV show with a tax theme.

The TV series Criminal Minds focuses on 7 FBI agents who, as a team, profile the minds and motives of the criminal offender. The idea is that if you understand how the crooks think, you can better thwart their actions.

Here's our latest idea for Hollywood. It's a show that exposes the motive of some really prolific and plunderous folks. It features the SCA team of profilers who will analyze the video interviews of various tax law officials and expose their erroneous thinking. As a companion to Criminal Minds, we present the following pilot series.

~~Criminal~~ Congressional Minds

Profiling the ~~Criminal~~ Congressional mind-- A TV series that enables you to understand why Congress comes up with insane ways to plunder your business and checkbook.
(View our interviews below with selected Congressional
minds and then note the SCA profiler's comments.)
WARNING:
Certain quotes by the Congressional Minds profiled below are so unbelievable that you may need to watch the video several times to fully understand their plundering mindset.

	California Rep.Pete Stark comments that, in government, that the more debt you have, the wealthier you are. When the interviewer points out that this is impossible, Rep Stark explodes into a rage of questions about the interviewer's lack of a Masters Degree in economic theory and begins a tirade of various obscenities. We have removed the inappropriate language by Rep. Stark since this is a family program. Observe an advanced case of Congressional doublespeak in action! Our Profile of a California mind: Mr. Stark suffers from the common Congressional delusion that Congress can spend itself rich. As a young man he likely believed you could drink yourself sober as well. This profile manifests itself in yelling, insulting, and using of profanity when confronted with certain economic truths that any business owner learned in his first week of operations. Mr. Stark has "served" 37 years. Perhaps by year 40 he will understand basic economics.
	Mr.Tim Geithner states that he has never held a "real" job and that since graduate school he has held employment only in the government sector of the job market. Our Profile of a Treasury mind: We really hate to nit-pick, but wouldn't most folks with common sense (i.e. the non-Criminal/Congressional mindset) believe that IF: you've never met a payrol,l you screw up your own tax return. you've never worked for a company that has to compete in the market, you just maybe shouldn't be in charge of the US Treasury!!! This Congressional mind illness is typical of appointed as well as elected officials. It's known as "the rules that everyone else must live by don't apply to me" syndrome.
	Analysis of Rep. Barney Frank offers a rare view into the Criminal/ Congressional mind. He states that we should concentrate solely on an "immediate increase in spending"and "a dose of Keynesian economics." Barney sees no long-term fiscal damage to unlimited spending because "there are plenty of rich people that we can tax and get the money back." Our Profile of a Congressional mind: Our diagnosis calls for us to be frank with Barney. His Congressional mindset ignores that fact that states like New Jersey, California, New York, Maryland,etc. have all seen their tax revenues plummet as folks leave rather than be treated as a financial voodoo doll that Barney can stick every time he needs more money. Despite Washington's attempt to stop it, the same exodus is happening at a national level. People are leaving in record numbers to avoid the coming tax wave. Our treatment recommendations are contained in a modern day revision of the classic book Animal Farm. Click here for the updated and economized version of the supply and demand story.and here for the Wall Street Journal article on the coming Wealth Exodus. Send Barney a copy of these articles by using this link.
	When questioned about the Constitutionality of forcing folks to buy a health care contract, Rep. Phil Hare is caught red-handed saying, " I don't worry about the Constitution." Our Profile of a "Hare"-brained mind: This is one of the most dangerous of all Congressional mind diseases. It removes any sense of absolute values. In our opinion, Mr. Hare requires intervention therapy that includes forcing an answer to the following type of question(s). Since you don't worry about the Constitution, are you: equally non-worried about the concept of private property rights? If so, why stop at health care? Couldn't the Congress provide for housing, automobiles, guaranteed pensions (they are working on that one), full-time employment, and a right to free gasoline? If that pesky Constitutional concept of limited government is not anything to "worry" about, why not provide the above needs? People like this are dangerous to your financial health. Avoid close contact at all costs.
	Vice President Joe Biden, in an interview explaining how to claim some new 2009 tax breaks, proclaims, "I don't deserve a tax break." Our Profile of a Vice Presidential mind: It seems the first causalty of elected office is the ability to see your own inconsistencies. Don't get me wrong on this. I'm fine with any citizen taking a benefit that the tax code allows them to utilize. I'm not so fine with saying "I don't deserve a tax break" and claiming $62,954 of tax breaks on one's return. Recommended treatment entails as many voters as possible letting this public offical know that he doesn't have to paint himself as undeserving. What he does need to do is work to lower spending and the tax rate on all of us including himself. We believe that this will totally cure the guilt complex that afflicts him.
	"I do think at a certain point you've made enough money." Our Profile of a Presidential Mind Our recommendation calls for a cold dose of the reality of exactly where this mindset leads us economically. If the above is true at "a certain point" then: At what point should I stop hiring new employees since I've "made enough money"? At what point do I stop giving bonuses to key people since I've "made enough money?" Do I postpone buying the new computer system (giving my computer vendor taxable income as well as a sale) just because I've already "made enough money"? At this point, you've probably thought of your own logical questions you'd like to add to the above list. Visit this article at our Tax Blog and you can share your wisdom (or your criticism). This will also help our Nielsen ratings and move the show to prime time.

Congress brings business owners another movie classic

A Nightmare on ~~Elm~~ Main Street

Congress brings a Nightmare to small businesses that would terrify Freddy Krueger !

While we were busy with tax season, Congress has been attempting to pass two nightmarish tax bills. Don't wait - call your Congressman now to stop these bills dead in their tracks.

1--Hidden in Section 9006 of the healthcare bill is a potential requirement that will cause every business to issue 1099s to all vendors. Presently, 1099s are required for individuals and partnerships but not to corporate vendors. Under current law, 1099s are issued only for rents, services, and financial-based transactions. Section 9006 would require 1099s to all vendors for all transactions over a set amount, creating a cost accounting nightmare for businesses both small and large.

We used the words potential requirement because our Treasury Secretary (see above analysis) is given the power to limit the scope of this law. Let's make certain that Secretary Geither sees that costly record keeping law is not good for business or the economy.

2--S-Corp owners beware! New law unfairly penalizes small businesses with less than 4 employees! The short version of this story is that S Corporations with less than 4 employees would be taxed at a higher rate than their larger competitors. At a minimum, the difference would be an extra 2.9% solely on the basis of their size. In addition, the rules for applying this law would easily add thousands of dollars to a company's accounting costs. More details will be on the blog this week, but call now and oppose HR 4213.

Hire the unemployed and reduce your company's FICA expense

The 2009 movie Hire Me! was about an elaborate ponzi scheme. There is no such trickery to the new Hiring Incentivives to Restore Employment Act signed by the President earlier this year. If your new employee (hired after 2/3/2010) has been unemployed for 60 days, wages paid after 3/18/2010 qualify for exemption from the 6.2% FICA normally paid by the employer. In addition, your business may qualify for up to a $1,000 tax credit per employee for those employed 52 continuous weeks.

Let's recap just how helpful this credit could be to your company.

The 6.2% benefit is an immediate increase to cash flow.
No minimum weekly number of hours required
No phase-out of the 6.2% benefit - it applys equally to an employee making 12,000 or 60,000.
May apply to non-profits as well as private companies
No limit on the number of new employees who may qualify.

You'll need this form from the IRS to begin the process.

Could this credit apply to hiring your previously- furloughed spouse from a family business?

Clients are welcome to contact us for an answer.

Two new ways we can serve you and your business!

Join our Facebook page for free tax updates on your FB home page.	Post a question, make a comment, or sound off against Washington on our blog! Check for weekly tax updates at http://scataxblog.com. Here's a sample of some of the debates on our blog