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Volume 6, Issue 6, June 2008

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The 2008 Farm Bill

The recently passed Food, Conservation and Energy Act of 2008 provides $1.7 billion in tax relief and incentives. Also known as ‘The Farm Bill,’ the new law provides benefits to farmers, ranchers, and timber producers. It also raises revenue from large corporations, ethanol producers, and gentlemen farmers.

Some provisions in the bill include:

A tax credit of 30% of the costs incurred by agricultural fertilizer and pesticide manufacturers, retailers, and distributors for protecting those products. The costs resulting from employee training to protect the chemicals, as well as background checks for those employees, also qualify for the credit. This credit is part of the general business credit.

The Farm Bill also increases the caps on loans made to first-time farmers from the proceeds of tax-exempt agricultural bonds, also known as ‘Aggie Bonds.’ The maximum loan amount increases to $450,000 and is indexed for inflation.

The definition of substantial farmland was changed to remove the fair market value test.

Taxpayers receiving certain subsidies will be limited on the amount of farming losses they can use to offset non-farming business income. Limits on Schedule F losses will be the greater of $300,000 or the net farm income that taxpayer has received over the last five years.

This is a substantial bill, and a number of additional provisions are included. The friendly professionals at Kemper CPA Group LLP are here to help you understand the impact of this legislation. We can help – contact us today!

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What Businesses Need to Know About Protecting
Customers’ Information

The information you need to conduct your business every day – names, Social Security numbers, credit card information, bank account and routing numbers – when not properly protected, can land your business in the middle of a data breach scandal.

Data breaches can be costly for businesses, not only in terms of increased litigation costs, fines, and penalties but also in the form of lost customer loyalty and goodwill. Further, federal and state laws allow the government to fine businesses for failing to protect consumer data and give individuals the right to sue businesses in some instances if they become a victim of identity theft as a result of a business’ poor data storage practices.

Because of the potential for a business to incur substantial costs in the event of a data breach, developing a data security plan is a must for businesses of all types and sizes. The Federal Trade Commission (FTC) offers the following five basic principles for building a strong data security plan:

1.

Take stock: Be aware of the types of information you keep in your files and on your computers.

2.

Scale down: Only keep information you need to run your business.

3.

Lock it: Keep all information properly protected.

4.

Pitch it: Safely get rid of information you no longer need.

5.

Plan ahead: Make a formal plan to respond in the event of a security breach.

More detailed information about the principles listed above is available in Protecting Personal Information: A Guide for Business, an FTC publication.

Kemper CPA Group LLP takes necessary steps, as outlined by the Safeguards Rule, to protect your personal information. Our clients’ data is protected – is yours?

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Avoid Those Stimulus Check ‘Bonus’ Offers

There are many retailers and merchants who would like to help you spend your stimulus check, as long as you spend it at their business. And many are even offering to give you an additional percentage if you purchase a gift card from their store; for example, a $1,200 stimulus check would grow by 10% and become a $1,320 gift card.

It might seem like a great idea, but, in reality, it’s usually a great idea for the business, not for the consumer. Here are some reasons why:

Research has shown that 10% of all gift card value is never spent, so that extra 10% likely will not translate into value for you.

Few people ever spend the exact amount of a gift card – they almost always spend more, sometimes as much as 30% to 60% more. This is potentially a substantial impact, given the amounts of the stimulus checks.

You will have to spend the full amount of your stimulus check at one business.

If a business declares bankruptcy after you purchase the gift card, you may be out the entire amount of your stimulus check, as the cards may no longer be honored after the bankruptcy.

Watch out for hidden fees, which could erode the value of the gift card over time. Information about fees should be available from the business offering the bonus gift cards.

Always carefully read the fine print of any offer for gift cards, credit cards, or no-interest payment plans. And take advantage of organizations such as the Federal Trade Commission Consumer Protection Division, which provides a great deal of information about fraudulent and deceptive business practices, and how to protect your hard-earned money.

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Loose Change

The May/June 2008 issue of the “Loose Change” Newsletter includes the following articles:

Contact Kemper Capital Management LLC for all of your investing needs.

Investment advisory services offered by KCPAG Financial Advisors LLC, a registered investment advisor. Securities officered through Securities America, Inc., a registered broker/dealer. Member NASD/SIPC. Thomas A. Moore, John D.
Porter, Shawna D. Horne, Sheila Lautenbacher, Jessica Daugherty, Joseph M. Mendes, CA Insurance Lic. #0C62535, Gregory Meador, Marcia Elder, Registered Representatives. Insurance services offered through KCPAG Insurance Services LLC. Kemper Capital Management LLC and its subsidiaries are not affiliated with Securities America.

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Protect Customer Data by Reducing Technology Risks

As discussed in the article about protecting customers’ personal information and other sensitive data (above), every business that collects personal data from customers should have a plan in place to safeguard that data. In an age where identity theft is growing increasingly more common, it just makes better business sense.

Kemper Technology Consulting can help you prepare a plan to protect your business data. We can help you:

Inventory your business’ technology to pinpoint where sensitive personal data is stored, paying particular attention to how personal identifying information (Social Security numbers, credit card numbers, financial information, etc.) is stored.

Determine the number and kinds of connections made to computers where sensitive information is stored.

Conduct a security audit to identify vulnerable connections and probable risks to your system.

Implement safeguards to control the risks identified during the security audit.

Install anti-virus and anti-spyware programs.

Identify vulnerable web applications and suggest remedies.

Encrypt sensitive information stored on laptops and install an auto-destroy program to be activated if the computer is lost or stolen.

Install properly-configured firewalls to protect your systems from Internet attacks.

Encrypt transmissions from wireless devices used to access your network.

Install a network monitoring program to better help you detect and respond to security-related issues.

Clear sensitive data off of old computers before they are disposed of.

In addition to ensuring that your own data storage practices are as secure as possible, it is vital that you take stock of vendors, service providers, and business partners to ensure that their connection to your data is secure, and that they only have access to the data that they need to perform their tasks.

Kemper Technology Consulting can answer any questions you may have concerning the security of your customers’ personal data. Contact us today to set up an appointment with one of our certified Information Technology Consultants.

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Kemper Technology Consulting
Robinson, IL
618-546-5633
www.kempertc.com

Evansville, IN  •  Indianapolis, IN  •  Paducah, KY  •  Effingham, IL

Please be advised that, based upon current Internal Revenue Service (IRS) rules and standards, the advice herein is not intended to be used, nor can it be used, as the sole basis for decisions. Additional issues may exist that could affect the treatment of the individual transactions, and this narrative does not provide a conclusion with respect to all such issues.

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