Archive for May, 2010

Happy Memorial Day!

Monday, May 31st, 2010

Today is a day that many of us will enjoy some rest and relation with our families, perhaps without giving much thought to why we have this day off.  There are many stories as to the origin of Memorial Day, dating back to the 1800s.  Regardless of its origin, today is a day to remember those who paid the ultimate sacrifice so that we can enjoy the freedoms of living in the U.S.

Please take a moment today to remember all of the brave men and women who have died defending our country.  Also, be sure to thank our military personnel for their willingness to serve our country! 

Remember that freedom is not free!

Amending your Tax Return

Monday, May 24th, 2010

With a month or so now having passed since you filed your tax return, you’re probably happy to have received your refund.  Imagine the horrible, though, of getting an amended Form 1099 or updated Schedule K-1 for an investment interest that you own.  You may be wondering how that will impact you on your tax return.

 Fortunately, it is fairly easy to amend your income tax return by filing an IRS Form 1040-X.  This form can be located on the Internal Revenue Services’ website (www.irs.gov).  Interestingly, the Internal Revenue Service estimates that more than 5,000,000 amended returns were filed in 2009, presumably for the 2008 tax year, although other years could certainly have been amended.  

You have the right to correct tax returns within three years after the date that the original return was filed or within two years after the date you paid the tax, whichever is later.  This means that you can generally amend up to three years’ worth of tax returns.  There are certain exceptions to these rules, as you would expect with the Internal Revenue Code.  So, if you have to amend your tax return, I recommend that you contact a qualified accountant to assist you so that you will not have to amend your amended tax return!

Protecting your Business when you have turnover

Thursday, May 20th, 2010

One of my clients from Brandon called to ask whether he, as an employer, could establish a policy of escorting fired employees out of his office when employment is terminated.  My immediate response was “absolutely!”

While it would seem that awfully demoralizing to escort an employee from your office, as an employer, your first concern should be to make certain that your records are protected from sabotoge or theft.  In our office, our clients’ records must be kept confidential and are safeguarded very closely.  I would expect that all of our clients would feel the same about all their customer records.  If that is the case, then why wouldn’t you want to make certain that your clients’ information is protected? 

 With that in mind, when an employment relationship is terminated, I suggest the following few steps be considered:

 1. Make certain that you supervise the discharged employee’s collection of documentation, and thereafter escort them to the door. 

 2. Collect their key.

 3. Change the user name and password on any computer of other device to which that they had access. 

 4. If you become aware of any theft of client information before discharge, you should consider what further actions are necessary to protect your clients. 

 While we do not practice in the area of employment law, we know these basic steps are useful and should be included in your employee manual.  That way, your staff will not be surprised if and when an employee relationship with the company is terminated. 

One final matter that you should also consider from a business perspective is the outlook of the discharged employee by your remaining staff.  If you supervise your former employee packing their things and escorting them out of the office, some of your current employees may feel threatened.  You can ease that a bit by talking to your employees about the importance of maintaining  customer confidences which should result in protecting their employment in your business. 

If you have any questions, you are more than welcome to contact me.