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Contents
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Quote Of The Month
JRR Tolkien and the Tax Law
The Eighth Wonder of the World
Attention--- All Business Owners with a Profit Sharing Plan

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Quote of the Month
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"There are two systems of taxation in our country: one for
the informed and one for the uninformed."
-Honorable Learned Hand, US Appeals Court Justice
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JRR Tolkien and the Tax Law
It seems that even Frodo has tax problems ! Click the Link below.
http://www.cpatax.net/newslet/lordofthe.jpg

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Editorial
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The Power of Compounding.
It's the eighth wonder of the Financial World--Tax Deferred Growth. Just look
at how little things add up !
Here's graphic evidence of what happens with tax deferred compounding. We
start small at $100 per month at 6% for 30 years in a mid-range tax bracket.
http://www.cpatax.net/newslet/taxdefgrow.shtml

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Feature Article- Is your Profit Sharing Plan in danger?
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AccountingWEB US - Jul-1-2003 - The Internal Revenue
Service reminded approximately 750,000 small and mid-size
businesses using "off-the-shelf" retirement plan documents
that they must update their plans by Sept. 30, 2003.
Businesses must formally adopt updates to maintain the tax
benefits associated with retirement plans.

The deadline is a result of rules that apply to so-called
Master & Prototype (M&P) plans and Volume Submitter plans.
These off-the-shelf retirement plans are IRS-approved
templates intended to standardize and simplify the complex
employee plan area. Employers who provide such plans for
their employees are typicallysmall to mid-size businesses,
including self-employed persons, such as some doctors and
lawyers.

M&P plans are "off-the-shelf" documents that employers
obtain from sponsors such as banks, brokers, insurance
companies, lawyers or consultants. Volume Submitter plans
are more customized documents usually obtained from
lawyers or consultants. Although the sponsors have updated
the plan documents, employers still need to formally adopt
the updated plans by September 30.

Both businesses and their employees enjoy tax benefits
from retirement plans that are in compliance with the law.
Failure to act by the deadline could cost a retirement
plan its tax-favored status.

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