Did you recently start a business? Did you form a corporation to limit your personal liability and to formally separate you and the business for tax and financial planning purposes? Did you establish a fiscal (tax) year end? Did you consider family members when you incorporated? Did you consider "income shifting?" If you have a partner in this business, did you consider how to fund a buyout in case of untimely death or disability? Did you consider how to account for your business transactions (the bookkeeping system)? Have you reviewed the methods of payroll processing, the related withholdings of taxes and the many deposit requirements? Are you considering the purchase of a computer or other major piece of equipment? Do you have adequate financing to cover ALL startup costs, equipment or inventory acquisition AND working capital needed during the early days, months or years? Did you consider leasing instead of buying? These are some of the questions you should be asking. If you answered NO or are not sure, this would imply that you should meet with a CPA real soon. You may be spending your hard-earned money the wrong way. Your CPA is experienced in business startups, and has seen and worked out some of the most common problems (and some of the hard ones too). Why should you get stuck trying to muddle though them too? Your professional CPA can help you review situations, assist in the structuring of alternatives, and bring to the discussion, the skills and resources necessary to help you successfully complete even the most complex or unique transactions.

Did you know:
All MasterCard account numbers begin with 5
All VISA account numbers begin with 4
All Novus/Discover account numbers begin with 6
All American Express account numbers begin with 37
Did you know: American Express, MasterCard and Novus/Discover account numbers also appear on the back of the card.
Did you know: Holograms appear on MasterCard (MC), VISA (dove) and Novus/Discover cards that appear to move when tilted.

Be sure to check the signature on the slip with the signature on the back of the card.

If you are suspicious about the card, cardholder or the transaction, CALL YOUR AUTHORIZATION CENTER ask for a CODE 10. If you cannot speak freely, the operator will know to ask you "yes" or "no" questions.

Remember, if you sell something and the slip is returned to you, you are out the cash AND have lost the product. Be careful; a bad credit card slip can be very costly to you.

Our thanks go to Randolph Police Safety Officer Dave Clark for this information.

DHL, Airborne, UPS and Federal Express have been approved by the Internal Revenue Service for filing tax returns. They join the US Postal Service as acceptable delivery carriers.

This means when you bring the package or envelope to one of the FIVE services and obtain a receipt for dropping it off, you have now complied with the "date delivered" provision of the Internal Revenue Service.

Could you get excited about saving money on your monthly long-distance bill? Wouldn't it be awesome if you could save up to 50%? Wouldn't it be wonderful if you could continue to enjoy the same high quality of service that you are already accustomed to, yet be able to see savings every month? Can you see the value of not only saving money but having a 90-day satisfaction guarantee? Isn't it easy to see why the company since 1989 has grown to be the 4th largest long-distance carrier? Do you see the benefit in the long-distance savings and discounts that come with our connections incentive package? Isn't it important for anybody to look for savings wherever they can? Do you now use a cellular phone and accept incoming calls?

If you answered YES to any of the above questions, call Discount Buyers Network at 617-963-5800 and find out more about a money savings telephone service that includes calling cards, domestic and international programs, "call-me" (800 or 888) service and a full line of beepers.

DISCOUNT BUYERS NETWORK ALSO HAS A 10› PER MINUTE LONG-DISTANCE CALLING PROGRAM, 7 DAYS PER WEEK, 24 HOURS PER DAY, NO ACCESS CODES, NO MINIMUMS.

----> Kid Quotes <----

Never give up because life gets harder as you get older. After preschool the road of life keeps getting bumpier and bumpier and bumpier. -- Angela Martin, age 11

Don't think life is easy, because when you get older it is hard work. I used to think life was easy, now I have to do the dishes every other day. -- Nick Coleman, age 9

A realist is more correct about things in life than an optimist. But the optimist seems to have more friends and much more fun. -- Megan, age 14

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Things You Don't Want to Hear During Surgery:
Better save that. We'll need it for the autopsy.
Someone call the janitor - we're going to need a mop.
Wait a minute, if this is his spleen, then what's that?
Hand me that...uh...that uh.....thingie.
OOPS! Hey, has anyone ever survived 500ml of this stuff before?
Rats, there go the lights again...
Ya know, there's big money in kidneys. Heck, the guy's got two of 'em.
Everybody stand back! I lost my contact lens!
Could you stop that thing from beating? It's throwing my concentration off!
What's this doing here?
That's cool! now can you make his leg twitch?!
I wish I hadn't forgotten my glasses.
Well, folks, this will be an experiment for all of us.
Sterile, schmeril. The floor's clean, right?
Anyone see where I left that scalpel?
OK, now take a picture from this angle. This is truly a freak of nature.
Nurse, did this patient sign the organ donation card?
Don't worry. I think it is sharp enough.
She's gonna blow! Everyone take cover!!!
Rats! Page 47 of the manual is missing!
FIRE! FIRE! Everyone get out!

Have your child work for you in your business and pay him or her a reasonable wage for time spent. Instead of paying a nondeductible allowance, you may be paying an "ordinary and necessary" business expense. Tasks such as answering the phone, filing papers and doing simple maintenance jobs for a parent's business may qualify.

By the way, hiring an over age 14 family member and paying a reasonable wage may also be a benefit to the family as a whole by allowing you to deduct the wages at your HIGHER tax rate.

When was the last time you reviewed your withholding exemptions? Did you know you can claim more than one exemption allowance for each dependent? You may be entitled to more, such as one for having only one job at a time or extra exemption allowances for excess itemized deductions. But keep in mind that you must pay at least 90% of your final tax bill through a combination of withholdings and estimated tax payments, or be subject to a penalty for underpaying estimated taxes.

Don't forget you can deduct all costs of looking for a new job in your current line of work. (Students hitting the work market do not qualify.) Whether you are successful or not, job hunting costs include travel and transportation; employment agency fees; the cost of preparing and mailing resumes and cover letters; telephone calls and 50% of any meals directly related to your job search. Job hunting costs are subject to the 2% of Adjusted Gross Income limitation as a Miscellaneous Itemized Deduction.

Don't give out your checking or credit card account number to telemarketers. "Scam" telemarketers are cheating consumers who reveal their checking or credit card account numbers out of millions of dollars each year. With your number, con artists can drain your account or charge up a storm. And in the case of withdrawals from your checking account, there is NO federal law that limits your liability to $50. So don't disclose your checking account number or give any telephone caller your charge account numbers, no matter how convincing they sound, and no matter how great the offer is. Remember, if it sounds too good to be true, it probably is.

Did you know that you can undo what you have done? You may have the opportunity to recoup your losses if an error or oversight caused you to overpay taxes on a past return. In general, you may file an amended tax return within 3 years of the date the original return was filed or 2 years after the date the actual tax was paid, whichever is later and possibly gain a refund . Massachusetts also allows the filing of an amended tax return. You should consider the benefits of filing an amended return with the potential costs associated with a review of the original return.

Air bags can inflate as fast as 200 miles an hour, a lot faster than you can blink. In this brief instant, air gabs can put anyone too close to the bag at risk, especially if they are not properly restrained. GMAC says: "By buckling up and applying air bag safety precautions, occupants in vehicles with driver- and passenger-side air bags can help minimize the potential for injury."

If you like our work, recommend us to a friend. If you are not happy with our work, please call me and let's talk about it. We will both appreciate it.

If you would like to have a FREE spot in TAX TIPS AND FACTS to tell us about your company, its products or services, simply send us a brief story, an overview of your company's products and future plans. We may edit the information and include it in a future edition. Send the information to Roger A. Kahan, CPA via mail, e-mail or FAX it.