Diane Brewer, CPA, was recently a member of a skilled panel that met for an event coordinated by the ”Successful Women in Business Program.”  The topic of the event was “Taking Care of Elderly Relatives, or What You Need to Consider for Your Own Retirement Needs.”   The panel addressed the resources available to those about to experience the journey through these processes.  The event was held at the Severna Park Community Center in Severna Park, Md.

The “Successful Women in Business Group” is focused on providing support, knowledge and inspiration to women in business. It is a group within the Greater Severna Park Chamber of Commerce.

Ms. Brewer is a Certified Public Accountant who specializes in Estates and Trusts and often presents to the public on these topics. She is presently a manager with HeimLantz, PC in Annapolis, MD.

HeimLantz is supporting the Small and Emerging Contractors Advisory Forum (SECAF) as a Silver Sponsor at the SECAF 4th Annual Government Contractor Awards. The Small and Emerging Contractors Advisory Forum (SECAF), is the premier organization for the small and emerging government contractor. The SECAF Awards Gala is the premier commemorative event honoring small and emerging government contractors and the players in the industry that rely on small business. The winners will be announced at the gala on Thursday, May 3, 2012 at the Hilton McLean Tysons Corner. Their website can be found at secaf.org

“SECAF represents government contractors who collect less than $25 million in annual revenue, and so we believe this niche market is well-deserving and in need of recognition of jobs well done,” said Kwesi Rogers, chairman of SECAF and president of Federal National Payables. “SECAF is honored to present these awards to those contractors and partners in our community that consistently put forth great work and produce business results that benefit the Washington, D.C. area.”

Tax Alert: Plan now for changes coming in 2013

What’s the summertime forecast? From a tax perspective, the outlook calls for planning now to prepare for changes gathering on the horizon – specifically, provisions currently expected to take effect in January 2013. Here are four new rules to think about during your mid-year tax review.

1. A decrease in tax-free contributions to your flexible spending account. Starting in January 2013, the maximum you can contribute to your FSA will be $2,500. In addition, the “use it or lose it” feature of FSAs means you won’t be able to carry any 2012 excess remaining in your account into 2013 (unless your plan provides a 2½ month grace period for using prior-year funds).

Planning move:

Schedule elective medical procedures during the last half of 2012.

2. An increase in the threshold for claiming the itemized medical expenses deduction. Do you itemize? For 2012, you can claim a deduction on your federal income tax return for qualified medical expenses that exceed 7.5% of your adjusted gross income (AGI).

Beginning in 2013, if you’re under age 65, your medical expenses will have to exceed 10% of your AGI to be deductible. This is the same percentage applied to qualified medical expenses when calculating the alternative minimum tax.

Planning move:

Review your itemized deductions for 2012 to determine whether accelerating or delaying deductions makes the most sense for you. What to keep in mind: phase-outs and other limitations to itemized deductions that were in effect in prior years, as these may return in 2013.

3. An increase in Medicare tax on certain wages. The amount of Medicare tax you pay on wages and self-employment income is scheduled to go up next year. When you’re single and your wages are greater than $200,000, your employer will withhold an additional 0.9% of Medicare tax from your paycheck. Are you self-employed? The tax applies when net self-employment income exceeds the threshold. The income threshold is $250,000 for married couples.

Planning move:

If you’re self-employed, review the way your business is organized. While you always want to pay yourself a reasonable amount of compensation, some entity types can allow for flexibility in the timing of wages or salary.

4. A new Medicare tax on unearned income. You probably associate Medicare tax with earned income – that is, the 1.45% tax your employer deducts from your pay. But a provision in the 2010 health care laws extends the Medicare tax to certain unearned income, beginning in 2013.

The new surtax is a flat rate of 3.8%, and will apply to interest, dividends, capital gains, annuities, royalties, and rents. It kicks in when your AGI exceeds $250,000 (for married filing jointly). When you file as single, the AGI threshold is $200,000.

Planning move:

Consider adding tax-exempt bonds to your portfolio. The interest is not subject to the new tax. Roth conversions and selling assets with capital gains may also be a wise move in 2012.

Many other tax law changes are expected in 2013. Timely planning is essential for preserving tax- saving opportunities. Please give us a call to discuss strategies to put in place now to maximize your benefits.

To avoid identity theft, think before you click

The e-mail from your bank gets your attention right away. It says you need to log into your account in the next 48 hours to continue your online privileges. Something about a system upgrade. You wonder, is it legitimate? How can you know for sure?

Bogus e-mails designed to steal your identity, also known as phishing, are becoming a bigger problem these days. While they can take many different forms, most scams are designed to trick you into revealing personal information such as your social security number or online account password. Through clever use of logos and familiar-looking web addresses, these e-mails often appear to be an urgent message from your bank, mortgage lender, or e-mail provider.

You may not realize it, but thieves are especially eager to gain access to your web e-mail account. Why? Once a scammer has access to your e-mails, he or she can often figure out where you bank and detect clues to passwords you might use.

So what can you do to protect yourself? Take a moment and think before you click. Never respond to an e-mail asking for your social security number or birth date. You can almost bet that it is a scam. If an e-mail contains a website link that you are not familiar with, do not click on it. Instead, either go directly to the company’s trusted website, or contact them by phone.

Also remember that e-mail scams become more prevalent following a significant public event, such as a natural disaster or sudden stock market drop. Thieves will prey on your sympathies or fears during these times, so be extra careful when responding to appeals for charity or notices to update your financial records. Be further leery of e-mails with demanding language or incorrect grammar – both are potential signs of a counterfeit e-mail. Don’t respond to e-mail appeals for charity.

For preventive measures, try to use a different password for every online account, and change your passwords regularly. Make your passwords stronger by using combinations of letters, symbols, and numbers. Also, keep your computer anti-virus software up to date.

Finally, do your part to thwart these crimes by reporting any suspected scam e-mails to reportphishing@antiphishing.org. If you receive a bogus tax-related e-mail, forward it to the IRS at phishing@irs.gov. And of course, feel free to contact our firm if you need a second set of eyes on any suspicious-looking e-mail.

Filing reminder for tax-exempts

Tax-exempt organizations are required to file annual reports with the IRS. Those with gross receipts below $50,000 can file an E-postcard rather than a longer version of Form 990.

The deadline for nonprofit filings is the 15th day of the fifth month after their year-end. For calendar-year organizations, the filing deadline for 2011 reports is May 15, 2012.

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This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.

Thomas J. Lantz, Sr., CPA, CVA, ABV, CFF, CGMA was recently elected to the Board of Directors of Homes For America, Inc. (HFA). Tom, one of the founding partners of HeimLantz, P.C., has been on HFA’s Audit and Finance Committee since 2011.

Homes for America, Inc. is a 501(c)(3) nonprofit housing corporation which specializes in developing and preserving housing for low and moderate income households and special needs populations. Homes for America carries out its mission in a variety of ways, including as a developer of affordable housing, providing development services to nonprofit organizations, and providing technical assistance to government agencies to develop and implement housing programs.

Tom’s extensive background serving on the Boards of Melwood Training, Inc. for over 25 years, and more recently as the Vice-Chair of the City of Alexandria’s Commission on Persons with Disabilities, provides a unique opportunity for him to interface his experience with the disabled and special needs population with the goals and objectives of Homes For America.

Homes for America was established by Trudy Parisa McFall, Chairman and Nancy S. Rase, President. They are housing professionals who together have over 50 years experience in the public sector administering federal, state and local housing programs. The organization is staffed by 12 talented and experienced housing professionals. Homes for America is advised by a distinguished Board of Directors with outstanding records in affordable housing. Homes for America helps to bring public and private partners together through the experience and expertise of its founders, Board and staff.

Homes for America was founded in September 1994 and has its headquarters in Annapolis, Maryland.

Homes for America develops and preserves affordable rental housing and housing for sale to low and moderate income households in the mid-Atlantic states.  Homes for America’s mission is to provide quality housing for low and moderate income households in attractive and stable neighborhoods and communities.

Homes for America also provides development services to nonprofit organizations which develop low and moderate income housing, as well as providing technical assistance to governmental agencies to develop and implement housing programs.

Homes for America provides resident services in all of their developments. These services are an important part of providing quality housing and ensuring full and satisfying lives for the residents.

April 17 is a red letter day in the tax world

Tuesday, April 17, is the deadline for filing certain returns and taking certain tax-related actions. Here are the major deadlines.

• Filing 2011 income tax returns for individuals. If you cannot file your return by this deadline, be sure to file an extension request by April 17. The automatic extension (you don’t need to explain to the IRS why you need more time) gives you until October 15, 2012, to file your return. An extension does not, generally, give you more time to pay taxes you still owe. To avoid penalty and interest charges, taxes must be paid by April 17. (See article below for penalty relief available to qualifying taxpayers.)
• Filing 2011 partnership returns for calendar-year partnerships.
• Filing 2011 income tax returns for calendar-year trusts and estates.
• Filing 2011 annual gift tax returns. 
• Making 2011 IRA contributions. 
• Paying the first quarterly estimate of 2012 individual estimated tax. 
• Amending 2008 individual tax returns (unless the 2008 return had a filing extension). 
• Original filing of 2008 individual income tax return to claim a refund of taxes. Some taxpayers have tax refunds due them for prior years, and unless a return is filed to claim the refund by the three-year statute of limitations, the refund is lost forever.　

IRS expands “Fresh Start” program for those who owe taxes　

Taxpayers who are struggling to pay their taxes may get some relief from the IRS’s expansion of its “Fresh Start” initiative, a program started back in 2008. The new Fresh Start provisions provide penalty relief to the unemployed and make installment agreements on taxes owed available to more people. 

Normally, a failure-to-pay penalty of one-half of one percent per month, up to a 25% maximum, is charged for overdue taxes. The “Fresh Start Penalty Relief” initiative gives eligible taxpayers a six-month extension to fully pay 2011 taxes – that is, until October 15, 2012, before the penalty begins to apply. Interest of 3% will still be assessed starting from April 17, 2012. 

The penalty relief is available to workers who have been unemployed at least 30 consecutive days during 2011 or 2012 and to self-employed individuals who experienced a 25% or larger reduction in business income in 2011 due to the economy. Income limits apply: the relief is not available to singles with adjusted gross income over $100,000 or to couples with income over $200,000. Also, taxes due cannot exceed $50,000. 

The Fresh Start program also changes the eligibility threshold for streamlined installment agreements from $25,000 to $50,000 and increases the maximum term from five to six years. 

For details or assistance, contact our office.　

Consider better ways to use your tax refund　

What are you going to do with your federal income tax refund this year? Instead of spending the money on things you don’t really need – like a bigger flat screen TV or the latest smart phone – you might put a sizeable refund to better use. Here are a few suggestions. 

Pay down debt. Improve your overall financial situation by reducing the amount of any outstanding debts beginning with high-interest rate credit card balances. 

Contribute to an IRA. For 2012, you can contribute up to $5,000 ($6,000 if you’re age 50 or over) to any combination of traditional and Roth IRAs. Contributions to a traditional IRA may be wholly or partially tax-deductible, while Roth IRAs can provide tax-free payouts in the future. 

Save for your children’s education. Investigate the options, such as tax-favored Section 529 plans. 

Build an emergency fund. Set aside some money that will be available in case of emergencies.　

Take steps to build a better business　

Business owners focus a lot of attention on building better products. When their products are hot, the company does well, despite other shortcomings. Certainly, new and better products are essential, but focusing on building a better business – one that readily adapts to change and quickly responds to crisis may be even more important. How can you build a better business? Consider the following strategies. 

Manage capital needs. Growing businesses have an appetite for capital. Two ideas for managing capital are outsourcing some processes and managing existing capacity more effectively. 

Identify the right product and customer mix. Having the products customers want at the time they want them and in the number, color, location, and quantity they need, is a challenge. Get continuous feedback from customers to help you get your mix just right. 

Actively develop and maintain a network that keeps you in the mind of suppliers, present customers, and future customers. 

Every business has an opportunity to distinguish itself by doing something better than its competitors. Providing the best service, shortest cycle time, most variety, or best quality requires procedures that can deliver every day to every customer. Improving your processes to deliver what no competitor is delivering to customers is a key strategy in building a better company. 

Use your employees wisely. Encourage sharing of knowledge and skills. Continuously develop and train people. Measure individual performance and reward achievement and good ideas.

Building a better business requires more than a good product. Take the steps necessary to make sure your business will thrive in an ever-changing world.　

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This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.

HeimLantz Team Members attended the West Anne Arundel County Chamber of Commerce’s 50^th and Community Awards Dinner on March 28th. The event was held at The Hotel at Arundel Preserve in Hanover, MD.  The event honors the educators, public safety officers, and military personnel who make West Anne Arundel County special. The event also celebrated the Chamber’s 50th year. There was a reception at 6 p.m., followed by dinner and the awards presentation.  HeimLantz was a sponsor of the event. 

Honoree David Garcia, Sheriff’s Deputy of the Year with Kathie Sulick of HeimLantz

Carter Heim of HeimLantz, Patrick Kenefick of Comcast, Larry Letow of Convergence Technology

You are Invited to a Breakfast Briefing on Conservation Easements for

Tax, Legal and Real Estate Professionals　

 Thursday, April 26th, 8 am – 11 am

Bistro at the Golf Club at South River

3451 Solomon’s Island Road

Edgewater, Maryland

$45 per person

Please join us to learn more about this important land and tax planning tool in honor of　

Agenda:

8:00 am: Breakfast service begins with a gourmet buffet

8:25 am: Welcome and recognition of SRLT – Lex Birney, The Brick Companies, Ben Wechsler, Linowes and Blocher LLP

8:40 am: Comments from Rand Wentworth, President of the Land Trust Alliance, with national prespective on the easement industry and current tax law issues

9:00 am: Legal mechanics of conservation easements-Ben Wechsler, Linowes and Blocher LLP

9:30 am: Tax mechanics and implications of easements – Carter Heim, HeimLantz CPAs

10:00 am: Closing remarks and adjourn to informal discussion with speakers and guests

Pre-Registration by April 23rd is required. Please provide names of attendees and payment of $45 per person to Scenic Rivers Land Trust at PO Box 2008, Annapolis, MD 21404 (or you may register through their website at srlt.org). For questions or additional information contact Rick Leader at 410-310-6541 or Rick@srlt.org

Special Opportunity for Breakfast Guests – The Brick Companies would like to invite all of the golfers in attendance to play the beautiful South River Golf Course after breakfast at the member rate of $55 for 18 holes. Not enough time for 18 holes?　Join us for nine holes at the member rate of $30! Please RSVP for golf by April 20th to Shelly Ford, sford@thebrickcompanies.com or call 443-951-2025.

Speakers:

Lex Birney – CEO of The Brick Companies, a privately held company based in Edgewater, that owns, develops and manages real estate in the Baltimore/Washington metropolitan area. Assets include the Golf Club at South River and Queenstown Harbor, the Atlantic Marina Resort on the Patapsco and Atlantic Marina on the Magothy in Pasadena, and more than 500,000 square feet of commercial buildings in Maryland and Virginia. The company has large easements on its Queenstown and Potomac Ridge Golf Course properties and all of its properties are connected through the goal of socially conscious management and development of real estate.

Ben Wechsler – Partner, Linowes and Blocher LLP, a Maryland land use and environmental attorney based in Annapolis. His practice focuses on the management of land and water resources, including the Maryland Forest Conservation Act, the Chesapeake and Atlantic Coastal Bays Critical Area Program, and the various federal, state, and county programs regulating land use, water quality, and wetlands protection. A portion of his practice is devoted to counseling property owners and developers on pairing the use of creative　conservation easement and private mitigation banking opportunities with traditional residential and commercial real estate development in order to achieve development goals.

Carter Heim – President of HeimLantz CPA’s, with offices in Annapolis and Alexandria, the firm serves organizations throughout the Mid-Atlantic with a full Wealth Management division, certified Business Valuation experts, and specialists in a host of other financial disciplines. Mr. Heim applies expertise gained across income taxation, estate taxation, business valuations and financial planning to address a wide range of client needs including succession planning, estate tax planning, business growth, and the sale or purchase of businesses. Mr. Heim has recently been appointed to the Chesapeake Bay Trust Board of Trustees by Governor Martin O’Malley.　　　　　　　　

Scenic Rivers Land Trust (SRLT) - A non-profit organization working since 1988 to protect the scenic and natural qualities of the Severn, South, West and Patuxent Rivers and their surrounding lands in Anne Arundel County. SRLT is celebrating reaching the milestone of having protected 50 properties, totaling over 2,200 acres, through easement or ownership. SRLT has assisted with the protection of thousands of additional acres through a variety of partnerships with Anne Arundel County government and other organizations.

Hosted by:

Kathie was recently recognized in the February issue of Baltimore magazine as one of Baltimore’s 2012 “Five Star Wealth Managers.”  This honor was given to a select group who represent less than 3 percent of the wealth managers in the Baltimore area. To be awarded, Kathie had to satisfy 10 eligibility and evaluation criteria including having a favorable regulatory and complaint history and fulfilling a firm review based on internal firm standards.

Kathie will also be featured in the March edition of the Baltimore Daily Record with her advice in an article on financial and retirement planning for women. This article will be available on March 31st.

Finally, Kathie has been accepted as a member of the “Anne Arundel Women Giving Together” organization. This group supports initiatives which improve the quality of life for women and their families in Anne Arundel County.

Congratulations Kathie on all your accomplishments!

HeimLantz team members kept their suits hanging in the closet for one day. They each donated cash for the opportunity to “dress down” for a day.  The team members entered their business card into a drawing and the winner selected decided what charity the donated cash would go to. Kathi Lynch was the winner of the drawing of more than one hundred dollars. She is going to donate the funds to a local family that could use some help. 

HeimLantz CPAs recently joined with other organizations in founding the Government Contractors Guild of the West Anne Arundel County Chamber of Commerce.  Thomas J. Lantz, Jr., CPA.CITP of HeimLantz is a Guild Council Member. 

The purpose of the Government Contractors Guild (GCG) is to support West County Chamber member companies who are involved in Government Contracting in achieving their government contracting goals. Each Guild Member agrees to participate in the success of each other Guild Member by providing leads, engaging partnerships and subcontracting opportunities where synergies exist, and by providing subject matter expertise in their respective field.

Council Members are a steering committee of experts in their Government Contracting area with proven track records in select fields.