Archive for 'General'

Jul 10
 

Running out of products too frequently? Having to sell cheap because inventory is overloaded? Use QuickBooks’ reports.

It seems so simple in theory. Don’t overstock goods because you’ll tie up too much money and perhaps need a clearance sale to get rid of the excess. On the other hand, don’t let yourself run out of anything and lose orders.

In practice – especially if you stocks dozens or hundreds of items – it’s impossible to ensure this if you’re managing your inventory manually. Guesswork can be costly.

It’s a complex element of accounting, but QuickBooks comes equipped with a handful of reports that can keep you on track. They don’t teach you how to balance your inventory to improve profitability, but we can help with that.

Figure 1: Be sure to enter a figure in the Reorder Point field so QuickBooks can remind you to reorder.

Building Precise Records
There’s a critical number in your item records that must be completed: Reorder Point. You’ll see it at the bottom of the Edit Item window (click Lists | Item Lists and double-click on the correct entry or click New in the Item drop-down list). Without it, QuickBooks can’t alert you when you’re running low.

QuickBooks also tells you how many items are currently on hand. If you had reached the reorder point and created a purchase order, you’d see a number under On P.O.

Ideally, you would do this when you’re first adding item records, but you can go back at any time and add it.

Rigorous Reporting
Running reports regularly will keep you apprised of your inventory status. To see what QuickBooks offers, click Reports | Inventory or go to the Report Center. Select Inventory Valuation Summary. You can also see this report in detail, but if you carry a lot of inventory, it’s difficult to get a birds’ eye view. Do run it, though, if you want to see the transactions that affected your inventory’s value.

Figure 2: The Inventory Valuation Summary does just what the name says

In addition to what’s pictured here, this report displays columns for Sales Price, Retail Value and % of Total Retail. As always, you can click Customize Report to change the date range.

Figure 3: This report provides a real-time update of the status of every inventory item.

Precise Tracking
The Inventory Stock Status by Item report should be consulted frequently. It tells you exactly where all of your items are in the pipeline.

Watch for checkmarks in the Order column; they appear when you’ve hit or exceeded your specified reorder point. Three other important figures populate columns in this report: the number on purchase order, the date the next shipment should arrive and average sales per week.

Reminders can come in quite handy here. To set them up, go to Edit | Preferences | Reminders | Company Preferences. And you’ll find the most comprehensive view of your items in the Inventory Center. Go to Vendors | Inventory Activities | Inventory Center. This screen also provides quick access to commonly-used reports.

Figure 4: The Inventory Center tells you everything you want to know about your items.

Automate Your Inventory Reporting
Here’s a quicker way to grab your reports:

  • Go to Reports | Memorized Reports | Memorized Report List.
  • Click the down arrow next to Memorized Report at the bottom and select New Group. Type in Inventory and click OK.
  • Open an inventory report and click Memorize. The Memorize Report window opens. Check Save in Memorized Report Group and select Inventory from the drop-down list. Click OK. Repeat for others you want in this cluster.
  • Click Reports | Process Multiple Reports. Select Inventory from the drop-down list and make sure that there’s a check mark next to the reports you want. You can click on the dates in the From and To column to change them.
  • Click Display or Print.


If you operate a product-based business, the success of your company depends in large part on your ability to find the sweet spot: neither too much nor too little inventory. It’s an ongoing, daily challenge. Let us know if we can provide guidance on this critical balancing act. Running out of products too frequently? Having to sell cheap because inventory is overloaded? Use QuickBooks’ reports.

It seems so simple in theory. Don’t overstock goods because you’ll tie up too much money and perhaps need a clearance sale to get rid of the excess. On the other hand, don’t let yourself run out of anything and lose orders.

In practice – especially if you stocks dozens or hundreds of items – it’s impossible to ensure this if you’re managing your inventory manually. Guesswork can be costly.

It’s a complex element of accounting, but QuickBooks comes equipped with a handful of reports that can keep you on track. They don’t teach you how to balance your inventory to improve profitability, but we can help with that.

Figure 1: Be sure to enter a figure in the Reorder Point field so QuickBooks can remind you to reorder.

Building Precise Records
There’s a critical number in your item records that must be completed: Reorder Point. You’ll see it at the bottom of the Edit Item window (click Lists | Item Lists and double-click on the correct entry or click New in the Item drop-down list). Without it, QuickBooks can’t alert you when you’re running low.

QuickBooks also tells you how many items are currently on hand. If you had reached the reorder point and created a purchase order, you’d see a number under On P.O.

Ideally, you would do this when you’re first adding item records, but you can go back at any time and add it.

Rigorous Reporting
Running reports regularly will keep you apprised of your inventory status. To see what QuickBooks offers, click Reports | Inventory or go to the Report Center. Select Inventory Valuation Summary. You can also see this report in detail, but if you carry a lot of inventory, it’s difficult to get a birds’ eye view. Do run it, though, if you want to see the transactions that affected your inventory’s value.

Figure 2: The Inventory Valuation Summary does just what the name says

In addition to what’s pictured here, this report displays columns for Sales Price, Retail Value and % of Total Retail. As always, you can click Customize Report to change the date range.

Figure 3: This report provides a real-time update of the status of every inventory item.

Precise Tracking
The Inventory Stock Status by Item report should be consulted frequently. It tells you exactly where all of your items are in the pipeline.

Watch for checkmarks in the Order column; they appear when you’ve hit or exceeded your specified reorder point. Three other important figures populate columns in this report: the number on purchase order, the date the next shipment should arrive and average sales per week.

Reminders can come in quite handy here. To set them up, go to Edit | Preferences | Reminders | Company Preferences. And you’ll find the most comprehensive view of your items in the Inventory Center. Go to Vendors | Inventory Activities | Inventory Center. This screen also provides quick access to commonly-used reports.

Figure 4: The Inventory Center tells you everything you want to know about your items.

Automate Your Inventory Reporting
Here’s a quicker way to grab your reports:

  • Go to Reports | Memorized Reports | Memorized Report List.
  • Click the down arrow next to Memorized Report at the bottom and select New Group. Type in Inventory and click OK.
  • Open an inventory report and click Memorize. The Memorize Report window opens. Check Save in Memorized Report Group and select Inventory from the drop-down list. Click OK. Repeat for others you want in this cluster.
  • Click Reports | Process Multiple Reports. Select Inventory from the drop-down list and make sure that there’s a check mark next to the reports you want. You can click on the dates in the From and To column to change them.
  • Click Display or Print.


If you operate a product-based business, the success of your company depends in large part on your ability to find the sweet spot: neither too much nor too little inventory. It’s an ongoing, daily challenge. Let us know if we can provide guidance on this critical balancing act.

Jul 10

Without Congressional action before the end of the year, just about everyone, rich and poor alike, will be hit by tax increases. These increases are the result of temporary tax benefits that will expire at the end of 2012.

Just about everyone will be affected in one way or another. The following is a list of the expiring benefits and how taxpayers will be affected. Check the list for items that will apply to you to get an idea of how your taxes will be impacted.

  • Exemption Phase-Out – Each taxpayer is entitled to a $3,800 (2012) tax exemption (deduction) for him or herself, his or her spouse, and each dependent. Beginning in 2013, a phase-out (reduction) of the exemptions will return for higher income taxpayers. The otherwise allowable exemption amounts will be reduced by 2% for each $2,500 or part of $2,500 ($1,250 for married filing separately) that the taxpayer’s AGI exceeds the AGI threshold for the year based on the taxpayer’s filing status. The threshold amounts for 2013 have not been announced yet but will be inflation-adjusted amounts from 2009 (the last year when this rule applied). These amounts were $372,700 for married taxpayers filing jointly, $186,350 for married taxpayers filing separately, $331,000 for head of household filers, and $289,300 for single filers. Impact: Higher income families.
  • Itemized Deduction Phase-Out -  Beginning in 2013, higher income taxpayers will again be subject to the phase-out of itemized deductions. Not all itemized deductions are subject to phase-out. The following are the ones subject to phase-out: taxes, interest (except investment interest), charitable contributions, employee job expenses and other miscellaneous itemized deductions (excluding gambling and casualty or theft losses).If the itemized deductions are subject to the limit, the total of all itemized deductions is reduced by the smaller of: 1) 3% of the amount by which the AGI exceeds the annual limit, or 2) 80% of the itemized deductions that are affected by the limit. The threshold amounts for 2013 have not been announced yet but will be inflation-adjusted amounts from 2009, which were $83,400 for married taxpayers filing separately and $166,800 for all others. Impact: Higher income families who itemize their deductions.
  • Payroll Tax & Self-Employment Tax – Both the payroll withholding tax  and self-employment tax rates have been reduced by 2 percentage points for two years. Payroll FICA withholding will return to 6.2% (up from 4.2%) and self-employment tax will return to 12.4% (up from 10.4%) beginning in 2013. Impact: All working taxpayers.
  • Long-Term Capital Gains Rates Increase – Taxpayers have enjoyed reduced long-term capital gains rates for several years as a result of the Bush-era tax cuts. However, those reduced rates will return to the higher rates in effect prior to 2003. The table below compares the current long-term capital gains rates to the anticipated rates for 2013 and subsequent years. Taxpayers with unrealized gains in investment property they’ve held for over one year may want to consider selling some or all of those assets in 2012 to lock in the lower long-term capital gains rate on their gains. Impact: All taxpayers with long-term capital gains.
  • Regular Tax Rates – In addition to lower long-term capital gains rates, the regular marginal tax rates have been declining since 2001. However, without Congressional action, those reduced rates will return to the higher rates that were in effect prior to 2001. The table below compares the current marginal individual tax rates to the anticipated rates for 2013 and subsequent years.These increased rates will apply to all varieties of ordinary income, including interest, dividends, short-term capital gains, employment income, etc. Marginal tax rates increase as a taxpayer’s overall income increases, taxing the first block of income received at the lowest rate and each subsequent block at ever-increasing rates until the maximum rate is reached. As with assets eligible for the long-term capital gains rates, it may be appropriate for some taxpayers to accelerate ordinary income into 2012 to take advantage of the lower rates. Impact: All taxpayers.
  • Bonus Depreciation Expires – For several years, businesses have been able to take advantage of bonus depreciation that essentially allows a 50% (100% during some periods) depreciation deduction of the cost of qualified business equipment and machinery in the first year it is placed in service. The big business write-off expires after 2012. Impact: Larger businesses.
  • Coverdell Education Accounts – Some years back, the tax benefits related to Coverdell Education Accounts were liberalized and made more beneficial to taxpayers. Those liberalized benefits will no longer apply after 2012. The most notable of these changes are: the dollar limit on contributions for any one beneficiary is reduced to $500 from $2,000, contributions can be made only by individuals, the modified AGI phase-out range for the annual contribution limit will be $150,000 – $160,000 for joint filers instead of twice the amounts for single filers ($95,000 – $110,000), contributions for special needs students age 18 or over will no longer be allowed, contributions for the tax year must be made by December 31 (was April 15 in the following year), qualifying expenses will no longer include those related to elementary or secondary school expenses, contributions to a Coverdell account and a Sec 529 Qualified Tuition Program will no longer be allowed in the same year, and education credits cannot be taken in a year in which a Coverdell withdrawal is made. Impact: Lower to moderate income families.
  • American Opportunity Tax Credit ExpiresThe American Opportunity Tax Credit (AOTC), which took the place of the Hope Education credit beginning in 2009, will expire after 2012. This liberalized credit provided a credit of up to $2,500 (the Hope credit provided only $1,800), and where the Hope credit could be used only to offset a taxpayer’s tax liability, up to 40% of the AOTC is refundable in many instances. In addition, the ATOC provided 4 years of credit, while the Hope credit only applies for two years. The AOTC expires after 2012. Impact: Lower income families.
  • Higher Education Loan Interest – A deduction of up to $2,500 is allowed for interest paid on loans for higher education. This deduction was originally limited to the first 60 months for which the interest payments were required. Congress subsequently temporarily eliminated the 60-month limitation and increased the AGI phase-out. Beginning in 2013, the 60-month rule returns and the AGI phase-out ranges (before adjustment for inflation) will be reduced to $60,000 – $75,000 for joint filers and $40,000 – $55,000 for other filers (except married couples filing separately who are barred from claiming this deduction). Impact: Lower to moderate income taxpayers.
  • Alternative Minimum Tax (AMT) – Congress originally implemented the AMT to impose a minimum tax on higher-income taxpayers who were avoiding taxes through tax shelters and other legal means. However, years of inflation without corresponding adjustment to the AMT components have, each successive year, caused an increasing number of taxpayers to be subject to the AMT.Much as the regular income tax allows personal exemptions, the AMT calculation allows an exemption, but based upon filing status. For the past several years, Congress has, on a year-to-year basis, increased that exemption for inflation. However, should they fail to provide an increase for 2012 and 2013, the exemption amounts would revert to levels not seen since the early 2000s, which, depending upon filing status, would result in an approximate 30% to 40% decrease in the exemption amount. For example, the exemption amount for joint filers would drop from 2011’s $74,450 to $45,000. The reduction of the exemption amount would snare a significantly greater number of taxpayers for 2012 – estimated to be around 31 million versus 4 million for 2011. Impact: Generally, middle income taxpayers.
  • Child Tax Credit – Since 2003, the child tax credit has been $1,000 for each qualified child of a taxpayer who is under the age of 17 at the end of the year. However, this was a temporary provision that expires at the end of 2012, and, beginning in 2013, the credit will revert to $500 per child. In addition, the refundable portion of the credit will be reduced. Impact: Lower income taxpayers with children.
  • Child & Dependent Care Credit – As part of the Bush-era tax cuts, the maximum expenses qualifying for dependent care credit were raised from $2,400 ($4,800 for two or more qualifiers) to $3,000 ($6,000 for two or more qualifiers) and the income-based maximum credit percentage was raised from 30% to 35%. However, these increases are scheduled to revert to the lower amounts in 2013. Impact: Lower income working taxpayers with children.
  • Earned Income Tax Credit – In 2009, a credit category for three or more children was added, providing an increased credit for taxpayers with three or more qualifying children. However, that was a temporary measure which will expire at the end of 2012. This will reduce the maximum credit for individuals with three or more children by $650 in 2013. Other changes that enhanced and simplified the credit computation are also set to expire. Impact: Lower income taxpayers with large families.

In addition to the expiring benefits listed above, depending upon what the Supreme Court ultimately decides about the Health Care Law, the following provisions of the Heath Care law will take effect in 2013:

  • Increased Hospital Insurance Tax – The Hospital Insurance (HI) tax rate (currently at 1.45%) will be increased by 0.9 percentage points on individual taxpayer earnings (wages and self-employment income) in excess of compensation thresholds for the taxpayer’s filing status. Thus, the wage withholding HI rate will be 1.45% up to the income threshold and 2.35% (1.45 + 0.9) on amounts in excess of the income thresholds. The hospital insurance portion of the SE tax rate will be 2.9% up to the income threshold and 3.8% (2.9 + 0.9) on amounts in excess of the threshold. The income thresholds where this increase begins is $250,000 for married taxpayers fling jointly, $125,000 for married taxpayers filing separately, and $200,000 for all other taxpayers. Impact: Higher income working families.
  • Surtax on Unearned Income – A new surtax called the Unearned Income Medicare Contribution Tax is imposed on the unearned income of individuals, estates, and trusts. For individuals, the surtax is 3.8% of the lesser of:
    1. The taxpayer’s net investment income or
    2. The excess of modified adjusted gross income over the threshold amount ($250,000 for a joint return or surviving spouse, $125,000 for a married individual filing a separate return, and $200,000 for all others)

    “Net” investment income is investment income reduced by allowable investment expenses. Investment income includes: Income from interest, dividends, annuities, royalties, rents (other than those derived from a trade or business), capital gains (other than those derived from a trade or business), trade or business income that is a passive activity with respect to the taxpayer, and trade or business income with respect to the trading of financial instruments or commodities. For surtax purposes, modified adjusted gross income doesn’t include excluded items such as interest on tax-exempt bonds, veterans’ benefits, and excluded gains from the sale of a principal residence. Impact: Higher income families.

  • Employer Health FLEX-Spending Plan Contributions Limited – In order for a health FSA to be a qualified benefit under a cafeteria plan, the maximum amount available for the reimbursement of incurred medical expenses of an employee, the employee’s dependents, and any other eligible beneficiaries with respect to the employee under the health FSA for a plan year (or other 12-month coverage period) cannot exceed $2,500. Impact: All taxpayers participating in health FSAs.
  • Medical Itemized Deductions Limited – The AGI threshold percentage for claiming medical expenses on a taxpayer’s Schedule A will be increased from 7.5% to 10%, which is the same as the current threshold percentage for alternative minimum tax (AMT) purposes. Individuals (and their spouses) age 65 (before close of year) and older will continue to use the 7.5% rate through 2016. Impact: Higher income taxpayers.

Keep in mind that Congress could and probably will extend some of the provisions. In addition, the Supreme Court is considering the validity of the health care provisions. Even so, it may be appropriate to review your tax situation and plan for all eventualities.

Please give this office a call if you would like to schedule a planning session for steps you can take now to mitigate the changes coming in 2013. Without Congressional action before the end of the year, just about everyone, rich and poor alike, will be hit by tax increases. These increases are the result of temporary tax benefits that will expire at the end of 2012.

Jul 09

More Flexible Offer-in-Compromise Terms Help Taxpayers Make a Fresh Start 

The IRS has expanded its “Fresh Start” initiative by offering more flexible terms to its Offer-in-Compromise Program. These newest rules enable some financially distressed taxpayers to clear up their tax problems even quicker.

An offer-in-compromise (OIC) is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or through a payment agreement. The IRS looks at the taxpayer’s income and assets to determine the reasonable collection potential.

This expansion of the “Fresh Start” initiative focuses on the financial analysis used to determine which taxpayers qualify for an OIC.

Here are the OIC changes:

  • Revising the calculation for a taxpayer’s future income The IRS will now look at only one year (instead of four years) of future income for offers paid in five or fewer months; and two years (instead of five years) of future income for offers paid in six to 24 months. All OICs must be paid in full within 24 months of the date the offer is accepted.
  • Allowing taxpayers to repay their student loans Minimum payments on student loans guaranteed by the federal government will be allowed for the taxpayer’s post-high school education. Proof of payment must be provided.
  • Allowing taxpayers to pay state and local delinquent taxes When a taxpayer owes delinquent federal and state or local taxes, and does not have the ability to fully pay the liabilities, monthly payments to state taxing authorities may be allowed in certain circumstances.
  • Expanding the Allowable Living Expense allowance Standard allowances incorporate average expenses for basic necessities for citizens in similar geographic areas. These standards are used when evaluating installment agreement and offer-in-compromise requests. The National Standard miscellaneous allowance has been expanded. Taxpayers can use the allowance to cover expenses such as credit card payments and bank fees and charges.

More information on the “Fresh Start” initiative can be found at IRS.gov.

Sep 07

There are generally two words that you never want to hear from the IRS: penalties and interest. As you already know, the IRS has a laundry list of penalties for not paying the full amount of taxes due, that is topic for another discussion. On top of those penalties, you will have to pay interest, beginning from when the tax payment was due and lasting until the underpayment has been received by the IRS.

There are two words that are rare from the IRS: Good news! This is one of those rare days. Beginning October 1, 2011, changes will take effect to those interest rates. The IRS announced that underpayments will accrue interest charges at significantly lower rates than before.

Now you’re wondering, “How much interest do I have to pay?” According to Section 6621, the interest rate to be charged on underpayments is the sum of the Federal short-term interest rate and a fixed percentage amount. The IRS sets the interest rate on a quarterly basis. As of now, the Federal short-term interest rate is irrelevant in this equation, because IRS rules, in Notice 8859, that this number be rounded. Since it is so low, it is rounded to 0. When rates go up, so will the short-term interest rate.

The IRS announced that the fixed percentage component of the interest rate will be reduced starting the fourth quarter of 2011. For non-corporate tax payers, the rate is defined as the Federal short-term interest rate plus 3 percentage points. Small corporate tax payers with small underpayments is defined the same as non-corporate tax payers. For corporate tax payers with large underpayments, the interest rate is calculated as the sum of the Federal short-term interest rate plus 5 percentage points.

The IRS has reduced the all three categories by a full percentage point across the board as compared to the third quarter of this year. Unfortunately, you can’t win them all. The IRS has also reduced the interest rate they pay you for overpayments.

Aug 04

The IRS has two forms of “missing money” and some of it could be yours. To find out if the IRS owes you money, ask yourself these questions:

• Did you earn income in the past few years, but not file a tax return because your wages were below the filing requirement?

• Were you expecting a return, but never received one?

Some people earn income and may have taxes withheld, but they are not required to file a tax return because their income is too low. In this case, you can claim a refund for the tax that was withheld from your pay. Others may have earned income, but no taxes were withheld. If this is the case, then you are eligible for the refundable Earned Income Tax Credit. In order to claim this tax credit, a return must be filed.

If you were expecting a refund check, but never received one, the solution can be as simple as updating your address with the IRS and/or the U.S. Postal Service. Refund checks are mailed to your last known address. If you move without notifying the IRS or U.S. Postal Service, the checks are returned to the IRS.
To update your address with the IRS, you can go to www.IRS.gov, and click the “Where’s My Refund?” tab. If you have an outstanding check within the last 12 months, you will be prompted for an updated address.

You can also ensure that the IRS has the correct address by filing Form 8822 (Change of Address). This form is available on www.irs.gov or can be ordered by calling 800-TAX-FORM (829-3676).

Any other questions can be answered by calling the IRS assistance line at 800-829-1040.

Jul 29

The IRS has reversed its position on granting innocent spouse relief.

The concept of innocent spouse requires that the spouses file a joint return. The problem with a joint return is the joint liability, which means that one or both parties can be held responsible, in part or in full, for any liability.  What happens when the spouses file a joint return showing a liability and one spouse believes that the tax has been “resolved” – and believes this both in error and to his/her disadvantage? What if the spouses are later separated or divorced? What if one spouse is in jail? What if one spouse died?

The effect of joint liability can be harsh, so the IRS Code allows an escape hatch for innocent spouses.

There are three types of innocent spouse provisions in the Code. Two types require the spouse to file the claim within two years of IRS notification. The third type does not contain this provision, but the IRS has construed the provision as containing the wisp of a dim shadow of Congressional intent to include a two-year provision. With that divination, the IRS has been disallowing innocent spouse claims filed later than two years for all three types of innocent spouse claims.

Doesn’t sound like much, but think about an example.  A husband abuses his wife. He certainly is not keeping her informed about tax notices. She knows zip about the taxes other than signing the return at his behest. She finally leaves the fool. She does so however after two years of first IRS contact, not that she would know about it. Previously the IRS would have said that she was out of luck.

Well, a number of people thought this was unconscionable, including the IRS National Taxpayer Advocate, many practitioners and members of Congress. The IRS has finally relented and removed the two-year requirement from “type three” of innocent spouse. For those who follow the tax literature, the change was published in Notice 2001-70.

I have done innocent spouse claims. I am happy with this change.

Aug 04

I read at Cleveland.com that Ohio is receiving $152 million in federal money to provide high-risk medical coverage. High-risk covers people who – through pre-existing or other conditions – would be denied regular health coverage.

The program will go through 2014, when other provisions of health-care reform take over.

The states have the option of joining a national program or establishing their own. Governor Strickland chose to build upon an existing Ohio program.

To be eligible, a person must have gone without health insurance for at least six months and have a pre-existing condition (think asthma, diabetes, etc.). They cannot otherwise be eligible for Medicare, the Ohio Medical Assistance Program, the Ohio CHIP or an employer-provided health plan. One must provide documentation of citizenship and legal residency.

The contract went to Medical Mutual of Ohio, based in Cleveland. Premiums will be $98 to $493 for nonsmokers, with a $2,500 deductible. Change that to $108 to $543 for nonsmokers, with a $1,500 deductible.

Ohio is encouraging interested persons to apply as soon as possible at ohiohighriskpool.com or by calling 1-877-730-1117. Ohio estimates that there is enough money to cover only 5,000 people.

Mar 15

Staring this month the IRS will select several thousand employers at random to receive detailed questionnaires focusing on their 401(k) plans.

This is not an audit; rather the IRS is collecting information. Depending upon the results, the IRS may decide to conduct more audits of 401(k)s.

If you receive one, it is time to speak with your TPA or other plan specialist before returning the questionnaire to the IRS.

Feb 24

The following is directly from ksdk.com, a St. Louis news website:

A fight over tax money will lead to charges of attempted murder in Pine Lawn.

Police say a woman followed her husband to work at a barber shop on Natural Bridge Saturday morning. She wanted him to give her some of their tax return money. When the man refused, she tried to shoot him. The bullet went through a window of the couples SUV. The man ducked inside the back seat of the vehicle and police say that’s when the woman shot two more times. Both of those bullets also missed. The man jumped out of the back seat and ran across the road.

Investigators say the woman then went into the city of St. Louis and threw the gun in a sewer. Police contacted the woman a short time later and she turned herself in. Police say she didn’t seem sorry.

“She felt more than justified. She cooperated very well, with the reasoning why she fired the shots, as well as recovering the gun. She said she didn’t want a child to find the gun in the sewer,” says Daniel O’Conner, the Assistant Chief of Police for Pine Lawn.

Jan 28

The following is a post by Sarah B. Lawsky at one of my favorite blogs – TaxProfBlog:

Throughout his first term, President Franklin Roosevelt paid taxes at the rates in effect when he took office, even as statutory tax rates increased. His position was that paying tax at a rate higher than that in effect at his inauguration reduced his salary, which violated the Constitutional provision that states that the president’s compensation “shall be neither increased nor diminished during the period for which he shall have been elected.”

At least one tax historian believes the approach is unique to Roosevelt. The memo on the cover of Roosevelt’s 1937 return thus seems to exemplify chutzpah: “I am wholly unable to figure out the amount of tax for the following reason,” he writes. “The first twenty days of January, 1937, were part of my first term of office and to these twenty days the income tax rates as of March 4, 1933 apply. To the other 345 days of the year 1937, the income tax rates as they existed on January 30, 1937. As this is a problem in higher mathematics, may I ask that the Bureau let me know the amount of the balance due?” Or in other words: I made a problem. Fix it, please!