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During the course of the year, we will be adding additional notes, commentaries, and information on various topics as we hear about them. Please call us for additional information at (815) 363-0808.

With the U.S. economy evolving so quickly, I continue looking for information that can help you focus on and understand the activities that may impact you financially and personally. Some of the items shown below may have a direct impact on your Tax Return.

You may have heard or read about Roth IRA, and, specifically the Conversion of Traditional IRA accounts to Roth IRA. This can be an attractive tax and investment move for some individuals. It can also be a good Estate Planning tool, but also a tax trap for the unwary. Please call us for an appointment should you wish to review your own personal situation with me, whether or not I have been working with your investments. The same applies to your friends and relatives if they are looking for some help.

The IRS has announced that it has over $123.5 million in the form of refund checks that have been returned by the U.S. Postal Service due to mailing address errors. Because of address or mailing problems, it is generally best to choose electronic filing and direct deposit when you file your tax returns because it puts an end to lost, stolen, or undeliverable checks.

As of 2011, there have been major changes in IRS Tax Regulations that you should be aware of...

As part of an initiative to ensure that tax return preparers are competent and qualified, the Internal Revenue Service issued late last year regulations requiring paid tax preparers to register with the IRS to obtain a Preparer Tax Identification Number (PTIN). All paid tax return preparers who prepare all or substantially all of a tax return are required to register. The new online registration system and final regulations are part of a series of steps underway to increase oversight of federal tax return preparation.

The IRS conducted a comprehensive review of the tax return preparer industry which resulted in implementation of new procedures regarding registration, testing and continuing education of federal tax return preparers. IRS Commissioner Doug Shulman indicated that with 60% of American households using a tax preparer to help them prepare and file their taxes, higher standards for the tax return preparer community will significantly enhance protections and service for tax payers, increase confidence in the tax system and result in greater compliance with tax laws over the long-term. Currently, many return preparers do not have to meet any government or professionally mandated competency requirements before preparing a federal tax return for a fee. The proposed regulations announced that attorneys, CPAs, and Enrolled Agents (such as myself) would not be subject to additional testing or continuing education requirements since we are currently subject to strict professional standards of conduct and ethics.

Is your tax preparer Registered with IRS, and has he or she obtained a PTIN - and uses it on tax returns? Also, does he or she sign your return, including your copy? The term "Ghost Preparer" is being used to describe someone who has not gone through the registration process and skirts the requirements, and, therefore may not have the adequate professional knowledge or background.

On another subject...

As some of you may know, I am also an Insurance Agent, and represent companies who deal with Life, Health, Medical Supplement, and Long Term Care Insurance. Life insurance helps us handle the challenges of life, and can help provide financial security for anyone who would suffer a loss upon the death of the insured. This may include your spouse and children, an elderly relative dependent upon another family member's care, or a business partner. You may need life insurance to help provide your family with the means to replace income, repay debts, settle your estate, or help complete financial goals in the event of your death.

Death benefit proceeds help maintain a dependent's current standard of living, which can include funds to apply toward bills that are outstanding at the time of the insured's death. The expenses might include:

Daily living expenses (food, clothing, etc.)
Mortgages
Taxes
Credit card debt
Personal loans
Student loans
Auto/home/life insurance premiums for beneficiary or dependents
Utility bills

In addition, death benefit proceeds help prevent the insured's heirs from using their inheritance, personal income, or savings for estate costs and expenses, which might include:

Funeral and burial costs
Federal estate tax
State death tax
Administration costs
Probate, attorney and Executor fees
Unpaid medical bills

We would be pleased to discuss with you any insurance question or needs you may have, or may want to consider. We currently represent Blue Cross Blue Shield of Illinois, Lincoln Benefit Life Company, Prudential Insurance Company, Mutual of Omaha, and Penn Mutual Life Insurance Co., and can investigate other companies as necessary through our Agency affiliations.

As always, if you have any questions about this information, please contact me at (815) 363-0808 at your convenience.

IRS CIRCULAR 230 NOTICE: THIS WRITTEN ADVICE WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, BY ANY TAXPAYER, FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON THE TAXPAYER UNDER THE INTERNAL REVENUE CODE. THE FOREGOING STATEMENT HAS BEEN ADDED TO THIS COMMUNICATION PURSUANT TO U.S. TREASURY REGULATIONS.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Additional thoughts:

Securities offered through SagePoint Financial, Inc., member FINRA/SIPC. Investment advisory services offered through Frank D. Olesuk, a registered investment advisor not affiliated with SagePoint Financial, Inc.

This communication is strictly intended for individuals residing in the states of AZ, CA, CT, FL, IA, ID, IL, IN, MI, NJ, NY, OH, PA, SD, TX, and WI. No offers may be made or accepted from any resident outside the specific state(s) referenced.

A Broker/dealer, investment advisor, BD agent, or IA rep may only transact business in a state if first registered, or is excluded or exempt from state broker/dealer, investment adviser, BD agent, or IA registration requirements as appropriate. Follow-up, individualized responses to persons in a state by such a firm or individual that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without first complying with appropriate registration requirements, or an applicable exemption or exclusion. For information concerning the licensing status or disciplinary history of a broker/dealer, investment adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator.

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