IN THE NEWS

Sponsel Adds
Three to Staff

Sponsel CPA Group is growing again! We're proud to announce the addition of three new talented people to our team.

Maulik Khatadia, MBA, has joined the department of Audit & Other Assurance Services as a staff member.

Mary Lee Murray, Administrative Assistant, will work the front desk amongst other duties.

Jeremy DeWinter has joined the team as a Senior with the Audit & Assurance department.

Welcome Maulik, Mary Lee and Jeremy!

IRS Announces 2012 Cost-of-Living Adjustments

The new Cost-of-Living adjustments for retirement plans were announced by the Internal Revenue Service on October 20.

Click here for a list of the breakdown of the increase for different plans.

Estate Planning: What You Should Do Now
By Stacey Jarrett, CPA
Manager, Tax Services

We just recently ended estate planning awareness week. Which begs the question: when was the last time you thought about your personal estate plan? For most of us this tends to be one of those items on our lengthy to-do list that we keep pushing off.

There are a few opportunities currently available that may be worth considering. Most of us are aware of the annual gift tax exclusion which allows individuals to give up to $13,000 to each person of their choosing tax-free on an annual basis. However, were you also aware that through the end of 2012 the federal estate and gift tax laws allow for a $5 million life-time exemption – meaning it could be possible to transfer up to $5 million without paying tax? Barring any future action by Congress, this exemption will revert back to the 2001 level of $1 million beginning January 1, 2013.

Are You Being "Unreasonable" About Your Own Compensation?
By Jennifer McNett, CPA
Manager, Tax Services

In recent years, the Internal Revenue Service has focused more and more on shareholders of
S corporations and the salaries they are paying themselves. The IRS has always considered that shareholders must pay themselves a reasonable wage for services they provide to their companies. Various regulations and court cases over the years have supported this. However, we have recently begun to see greater enforcement of these rules and regulations through IRS examinations. If you are a shareholder, how much should you pay yourself? What constitutes “reasonable” compensation?

Client Profile: Outreach Indiana, Inc.

Eric Howard started Outreach Indiana – now known as Outreach, Inc. – 15 years ago to help homeless teenagers. It began as the ultimate grass-roots operation: Howard, the sole employee, working out of the trunk of his car, handed out blankets and bottles of water to teens in need.

Today it has turned into a thriving, fundamental part of the Central Indiana civic community, with 15 employees and programs in every Indianapolis Public Schools high school plus Pike High School.

Their mission is, “Equipping and empowering homeless teens and young adults to exit street life.”