Greetings,

As April 15th is fast approaching, I will keep this short and sweet. I have a few announcements to make before the tax tip.

First of all, for those of you who would like to pay me by credit card, I am now accepting credit card payments through PayPal. You can access the payment screen through PayPal or a link on my website.

As long as you are on my website, check out the new tips. The tax tip has to do with refunds on 2000 returns, assuming that you have not filed your 2000 return yet - shame on you! The financial tip has to do with ideas for places to put your 2003 refunds and the business tip has to do with keeping track of fixed asset purchases.

The office will be closed from April 16th through April 18th and will reopen April 19th. We will also be closed on Wednesday, April 21st to celebrate Associates Day (formerly Secretaries Day). I'm treating Sandi and Becky to well-deserved day of fun on that day.

The last announcement is that I have changed my mind on outsourcing. I think I have found an excellent crew who should do a bang-up job on your returns. Check it out and let me know if you have a specific staff member that you would like to have work on your account:

http://www.newtechusa.com/PPI/main.asp

(They seem to have more on the ball than Henry, Simon and Bailey)

Here's the tip:

===============================================

Are you giving the IRS an interest-free loan?

===============================================

Are you one of the millions of Americans who will receive a tax refund for 2003? While most Americans happily accept their tax refund checks, smart taxpayers understand that refunds actually cost them money. Here’s why:

The government pays no interest on these refunds. Kept in your hands, those dollars could have been productive. For example, you could have invested the money or used it to pay off debt during the year. If the money had been added to a 401(k) plan, tax would have been deferred on both the investment and its earnings. Even better, your employer might have matched all or part of your investment, adding to your retirement savings.

If you receive a big refund for 2003, you should consider reducing your withholding or estimated tax payments for 2004. For most taxpayers, your withholding for 2004 must equal either 100% of your 2003 tax liability or 90% of your 2004 liability. If your annual income changes little from one year to the next, it’s relatively easy to avoid overwithholding. Determine the amount withheld so far this year, then subtract that number from last year’s tax liability. Divide the difference by the number of pay periods remaining this year. Then ask your employer to withhold that amount each period.

For taxpayers with fluctuating income or multiple sources of income, the problem is more complex. The IRS provides a worksheet with the withholding statement (Form W-4), but many people find the form very complicated. If you’d like assistance reviewing or adjusting your withholding for 2004, give us a call.

Till after the 15th...

Linda