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Volume 5, Issue 5, May 2007

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Senate Enrolled Act 480 – Tax Relief for Indiana Veterans and Soldiers

On May 3, 2007, Indiana Governor Mitch Daniels signed Senate Enrolled Act 480 (SEA 480) into law. The law was designed to increase benefits for Indiana soldiers and veterans and their families. SEA 480 provides the following tax-related benefits to Indiana soldiers:

All military pay earned while serving in combat is exempted from Indiana state income tax, applicable to all active duty, reserve, and National Guard military personnel who file Indiana tax returns.

The maximum allowable state income tax deduction on military pay, including active or reserve military pay, retirement pay, and survivor’s benefits, is increased from $2,000 to $5,000 ($10,000 for married taxpayers who file jointly) per year to counteract the effects of inflation.

Taxpayers cannot claim both the exemption and the deduction introduced by SEA 480.

For additional information about the new law, which provides several other benefits to Indiana soldiers, click here to read the press release issued by the office of Indiana Governor Mitch Daniels. The certified public accountants at Kemper CPA Group LLP are available to answer any questions you may have about the tax implications of this new legislation. Contact us today.

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News for Tax-Exempt Organizations

Small, tax-exempt organizations are not required to file Form 990, Return of Organization Exempt from Income Tax, or the related short form, 990-EZ, if their gross receipts are $25,000 or less. However, beginning in 2008, small tax-exempt organizations may be required to file Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required To File Form 990 or 990-EZ. The requirement begins annually in tax years beginning after December 31, 2006.

Organizations that are exempt from this new requirement include:

The development of the Form 990-N e-Postcard is a result of the Pension Protection Act of 2006 (PPA), which also calls for the revocation of the tax-exempt status of any organization that fails to file Form 990-N (or Forms 990 or 990-EZ) for three consecutive years.

Organizations that may be affected by the new requirements will be receiving letters from the IRS, beginning in July. The IRS is still developing an electronic filing system for Form 990-N, which will be filed exclusively online; no paper version will exist. Additional details about the filing procedure will be announced once the filing system is ready to use. Should you have any questions in the mean time, contact the tax professionals at Kemper CPA Group LLP.

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Tax Benefits for Indiana's Small Businesses

Recently passed legislation, Indiana House Bill (HB) 1678 includes some provisions to assist Indiana’s small businesses with providing health insurance and wellness programs to their employees, including:

Small businesses in Indiana who are already providing health-insurance benefits to their employees can take advantage of a $50/employee tax credit (with a maximum credit of $2,500) for two years.

While the details are not yet available, a provision is also included in HB 1678 to allow the state to create a program allowing businesses with 2-50 employees to ‘pool’ together to buy group insurance. The benefits of this include lower costs and distributed risk across a larger group.

Indiana employers with 2-100 employees will be provided a tax credit for up to 50% of the cost of providing an employee-wellness program, which assesses the health risks of employees and provides resources such as nutritional counselors or nurses with the goal of preventing high cost claims/catastrophic illness.

There are many factors to consider when planning, opening and operating a small business. Indiana small businesses can now take advantage of some tax incentives and assistance with providing employee benefits, and the professionals at Kemper CPA Group LLP are here to help you with your successful small business. How can we help you? Contact us today!

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Tips for High School Grads

It’s high school graduation time. After that gleeful toss of the mortar board, recent grads may need to brush up on financial basics, as many students currently head off to college with no idea how to manage their money. A brief conversation now may save you a big headache (and a little money) later, when the graduation funds have run out.

As you begin the discussion with your high school grad, consider the following financial tips for college students:

To the grads: Living within your means is an important first step in beginning the transition to adulthood. As you embark on this exciting new time in your life, keeping yourself afloat financially will enable you to concentrate more on your studies and enjoy the college experience. The partners and staff at Kemper CPA Group LLP would like to extend our congratulations to the Class of 2007. Job well done!

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Loose Change

The May/June 2007 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, Jeffery C. Holt, CA insurance Lic. #0E38034, 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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An Offer for Microsoft Dynamics GP Users

Today’s business climate is more volatile than ever. And while there is less room for error, there is also more opportunity for growth – if you have the ability to make better business decisions, faster. The fact is, the longer your employees must wait to access critical data, the less time they have for decision making. The bottom line – your business cannot reach its full potential.

Having additional Microsoft Dynamics GP system manager licenses available will give your employees the ability to make prompt and profitable decisions. As a Microsoft partner, Kemper Technology Consulting would like to make you aware of a limited-time offer that Microsoft is making available through June 22, 2007.

The more users you add, the more you save:

There is no limitation to the number of users that can be purchased with this promotion on Professional products; Standard edition products, however, have a 10 user limit.*

The value of this offer is not simply in the savings you will see today – performance is the ultimate measure that impacts your bottom line. Adding users can help you improve the overall performance of your business.

If you would like to take advantage of this limited-time offer, please contact Kemper Technology Consulting.

*This offer is available to existing Microsoft Dynamics customers in the U.S. and Canada only for qualifying System Manager user license purchases made between April 30, 2007 and June 22, 2007. This offer is available only through participating resellers.

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

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

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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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