STRATEGIC
ISSUES...ONLINE
For week of December 20, 2004,
Issue #192
Featured Articles:
1. End of Year Tax Tips
2. More Excerpts from "2004
Report to the Nation on Occupational Fraud and Abuse"
3. Tech Tip Weekly: Microsoft is
Retiring Products
4. Compliance Calendar
1. End of Year Tax Tips
-Owners of closely held firms should consider taking some
year-end bonuses in the form if dividends. With dividends taxed
at no more than 15%, this strategy can pay off if the owner is
in a higher tax bracket than the company.
-Think about making your January mortgage payment and January
estimate of state income taxes in December. That will make the
interest and the tax payment deductible this year.
-Keep an eye on the alternative minimum tax. If you are subject
to it, prepaying your state income taxes won't help you because
state taxes are not deductible for minimum tax purposes.
-Increase your withholding late in the year if you are facing a
penalty for underpaying estimated taxes. IRS rules allow the
additional withholding to make up for past underpayments dollar
for dollar.
2. More Excerpts from
"2004 Report to the Nation on Occupational Fraud and Abuse"
-Association of Certified Fraud Examiners
Comparison of All Fraud Categories - 2002 and 2004
The following provides an overall comparison of the frequency
and median loss data for all categories of occupational fraud
reported in the above report and its predecessor in 2002:
Asset Misappropriations, including cash
larceny, cash skimming, cash fraudulent disbursements (e.g.
billing schemes, payroll schemes, expense reimbursements, check
tampering, register disbursements):
Of reported cases in 2002 85.7%; in 2004 92.7%
Median loss in 2002 $80,000; in 2004 $93,000
Non-Cash Misappropriations:
Of reported cases in 2002 9.0%; in 2004 20.5%
Median loss in 2002 $200,000; in 2004 $100,000
Corruption Schemes:
Of reported cases in 2002 12.8%; in 2004 30.1%
Median loss in 2002 $530,000; in 2004 $250,000
Fraudulent Financial Statements:
Of reported cases in 2002 5.1%; in 2004 7.9%
Median loss in 2002 $4,250,000; in 2004 $1,000,000
WOW.
3. Tech Tip Weekly:
Microsoft is Retiring Products
Did you know that Microsoft is planning to retire several
products that you may be using? Windows 95 and 98 will soon no
longer be supported by MS. What this means is that they will no
longer be offering security or bug patches, or "service packs"
for these products. Nor will they offer any phone support.
This also goes for Windows NT server operating systems too.
It is important to be able to get security patches for the
products that you depend on, to keep you safe from hackers and
attacks. For this reason, it is a good idea to start thinking
about upgrading your version of Windows, if you run any of the
products noted above.
4. Compliance Calendar
December 22
-Employers deposit social security, Medicare, and withheld
income tax for payments on December 15, 16, and 17.
December 27
-Employers deposit social security, Medicare, and withheld
income tax for payments on December 18, 19, 20, and 21.
December 29
-Employers deposit social security, Medicare, and withheld
income tax for payments on December 22, 23, and 24.
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