FM Financial, Inc. Tax & Accounting Service Provider!

Probably the most basic tax strategy can be summed up in one word: defer. When you defer tax payments to a future year, it's as if you have an interest-free loan from the government. Further, if your marginal tax rate in that later year is lower than it is this year, you get an extra bonus. So let's take a look at some proven strategies to defer taxes.

A WORD OF CAUTION: When you pay expenditures before they are due, the time-value-of-money concept is working against you. Never make poor economic decisions in the name of tax planning.

1. Make the most of your 401(k) plan by contributing the maximum $11,000 ($12,000 if you will be age 50 or older by Dec. 31) before the end of the year. Contributions to the 401(k) plan are not taxed until you take the money out – and the investment earnings are tax-deferred, too.

2. If you qualify for a deductible contribution to an IRA this year, the maximum allowed is $3,000 ($3,500 if you will be age 50 or older by Dec. 31). If you're married, double this amount if your spouse also qualifies. IRA contributions for 2002 can be delayed until April 15, 2003. However, the earlier you contribute, the sooner you start earning tax-deferred dollars.

3. It can make sense to put off distributions from qualified plans until later years to avoid the 10 percent penalty tax that applies to most distributions before age 59½.

4. If you've received a lump-sum distribution from an employer-sponsored plan within that past 60 days, you still have time to roll over the amount to a new employer plan or IRA to avoid tax on the distribution.

SMALL BUSINESS TIP: Have you thought about starting a qualified retirement plan? You may need to get the plan in place before Dec. 31 to qualify for a deduction this year. Certain small employers can claim the credit for 50 percent of the costs of establishing a new retirement plan. The maximum credit in any year is $500, with a $1,500 maximum credit over a three-year period.

Do you have gains in your portfolio? Maybe you sold some stock that you bought long ago. Or maybe you got lucky in the bouncing market, bought on a downtick, then sold on the uptick. For most of us, losses are easy to find in our portfolios.

5. Consider selling your depressed stocks to wipe out all of your gains plus another $3,000. Up to $3,000 of net capital loss is deductible against ordinary income.

6. If you've already sold stocks that accumulated more than $3,000 of losses, look for winners you can sell tax-free to get back to the magic $3,000 number.

A WORD OF CAUTION: When you sell winners to recognize gains, you can immediately repurchase the shares if you like the investment opportunity. If you're selling losers to recognize losses, however, you must avoid buying the same shares for 30 days before and after the loss sale. If you buy shares during the prohibited period, the loss will be "washed out" and not allowed.

INVESTOR TIP: What if you have a number of shares that you acquired at different times and at different costs? If you sell some, but not all, of the shares, will you be able to control the amount of gain or loss recognized? The general rule is that you're deemed to have sold the shares acquired earliest. However, you can instruct your broker to sell specific shares. If you use this "specific-identification" method, get a written confirmation of your instructions from the broker and keep a copy with your tax records.

7. Owing more than 10 percent of your total tax liability when you file your return can result in a penalty. You may be able to reduce or eliminate the penalty by asking your employer to increase the amount withheld from your pay between now and the end of the year. Our tax advisers can help you with these calculations.

8. Of course, if you calculate an expected tax overpayment for 2002, why wait until spring to get your refund? Ask your employer to reduce your withholding for the rest of the year. That way, you'll have your "refund" in time for Christmas. You will need to complete a new W-4 form for their records.

9. Hire your children to work in your business. If you pay a reasonable amount for the work they do, you can deduct it as a business expense. In most cases, the kids will not owe any tax. Plus, they'll qualify for an IRA contribution.

10. Consider making charitable gifts of appreciated securities instead of cash. You'll get the same contribution deduction and avoid capital gains taxes to boot.

11. Don't pass up the $11,000 per donee gift-tax annual exclusion for 2002. With "gift splitting," a married couple with three children can give away $66,000 tax-free. If you want to give more than the limit, make part of the gift in December and part in January.

12. A word about alternative minimum tax (AMT). If your income exceeds $75,000 and you have significant write-offs for personal exemptions, property taxes, and state and local income taxes, you may be the unsuspecting victim of the alternative minimum tax. The same condition exists if you exercised incentive stock options or experienced significant capital gains. Our tax advisers can help assess your exposure to the AMT.

13. If AMT applies for 2002, many traditional year-end tax-planning strategies are ineffective. If you're thinking about exercising incentive stock options, you may want to wait until next year – or exercise part this year and part next year. If you've already exercised incentive stock options, you may want to sell some of the shares to "disqualify" them.

Mortgage refinancings. In this recent climate of record low interest rates, many homeowners have seized the opportunity and refinanced their mortgages at better rates. Don’t forget the tax effects of refinancing your home.

Points paid on refinancing are not deductible up front, but must be amortized over the life of the mortgage (30 years, for example). But for many, this was their second or third refinance of their home. In this case, don’t forget that you may have paid points on the prior refinance which were not fully written off. The unamortized balance of those prior points are deductible in full when the loan is refinanced.

When you meet with us to discuss your tax information, be sure to bring the closing statement of your refinancing – this document is frequently a gold mine of extra deductions!

Extra charitable contributions. As you clean up from the holidays, remember that non-cash contributions of clothing and other household goods are deductible, based on the value at the time of contributions. Be sure to get a detailed receipt, as additional information must be provided if your total non-cash contributions exceed $500. Also, if you claim a value of $5,000 or more for non-cash gifts other than marketable securities, a full written appraisal is generally required.

Finally, remember that a contemporaneous written receipt is required for all contributions of $250

When planning your federal estimated income tax payments for the 2002 tax year, consider whether you want to use the so-called “safe harbor” method. Compliance with the safe harbor rule means that the IRS cannot assess underpayment penalties -- no matter how much your income increased over last year.

If the adjusted gross income shown on your 2001 return is $150,000 or less, you qualify for the safe harbor if you pay 100 percent of your 2001 tax in 2002. If your 2001 adjusted gross income exceeds $150,000, the safe harbor for year 2002 is 112 percent of your 2001 tax.

Of course, you need not pay in the safe harbor amount if you expect comparable or reduced income for 2002. You also are free of underpayment penalties if you pay in 90 percent of your year 2002 tax. The problem with this option is that you must estimate year 2002 tax – and you are penalized if you underestimate -- while your year 2001 tax is soon known.

Also, remember that one requirement to avoid underpayment penalties is that the tax must be paid evenly throughout the year. For estimated income tax payments, the four quarterly deposits must be made at least evenly (“front-loading” is fine). For income tax payments through withholdings, these taxes are deemed to be paid evenly throughout the year by definition. So, there is no penalty for including extra withholding on that year-end bonus.

1. Revisit your estate plan. Although repeal of the estate tax system will not come about for many years, the amount of your estate that is exempt from estate tax will increase by about 50% next year. The result is that certain provisions in your will may no longer function as you had intended.

2. “S” corporations become more attractive. Tax rates become more appealing for “S” corporations for two reasons. A selling point for the “C” corporation has been lower maximum income tax rates. First, when fully implemented, the new law reduces the top individual tax rate to 35%, which is the same maximum rate faced by “C” corporations. Second, marginally profitable “C” corporations can use the first corporation tax bracket of 15%, which is now higher than the first individual bracket of 10%.

3. Long-term capital gains become less important. The Act reduces income tax rates by about 10% on average when fully phased in, while not reducing capital gains rates at all. Some taxpayers may find that the capital gains savings are not worth the extra issues (for example, whether the property qualifies, holding periods, etc.).

4. Deferred compensation. The new tax cuts take several years to become fully implemented. Deferring income into the future through increased participation in retirement plan deferrals (such as 401(k) or SIMPLE plans) or in nonqualified deferred compensation plans will likely result in less taxes paid on that income.

5. Removal of the phase-outs of personal exemptions. Since personal exemptions were phased out for upper-income individuals, many of these taxpayers have not received a benefit of exemption for many years. This encouraged those filers to find ways to not qualify for those exemptions for children, since they didn't benefit from them anyway, and the exemptions were then available to the children for their own tax filings. These taxpayers may want to reconsider this approach once the phase out begins to disappear in 2006.

Also, some higher-income taxpayers have declined to claim the exemptions for their children so that their children can instead claim education credits for their college costs. This doesn’t entitle the children to claim their own exemption, but allows education credits on the child’s return. Again, since the parents received no benefit due to the phase out, this was an easy decision. With the restoration of the exemption, this plan becomes less clear-cut. ^^ Back to top

6. The alternative minimum tax (“AMT”) becomes even more of a problem. First, a basic explanation of the way the AMT works. The AMT is actually a separate tax system, apart from the way your taxes are figured on the form 1040. We owe income tax based on whichever is higher – the regular or the minimum tax.

7. In recent years, more and more taxpayer have fallen victim to the AMT as the regular tax exemptions and brackets have been indexed for inflation, but not the AMT ones. The Act reduces top regular income tax rates by about 10% on average but does not change AMT rates. Under the Act, the AMT exemption is increased by $4,000 for married taxpayer ($2,000 single) but this hardly solves the problem. The result is that the widespread complaints for AMT relief have not been addressed.

8. Dependent care credit increase offers planning opportunities. Workers who pay for dependent care have two choices – claim a credit for those expenses or claim reimbursement through their employer’s cafeteria plan (assuming that the employee has such a plan available). Both benefits cannot be claimed.

9. Previously, those with moderate incomes of about $40,000 to $70,000 would choose the cafeteria plan alternative, since they would save 35.65% federal tax on the expenses (28% income tax, plus 6.2% social security tax, plus 1.45% medicare taxes). The credit for those in this bracket would be about 20%. Given the difference in tax savings rates, participation in the employer plan was an easy choice.

10. Under the new law, those with care expenses for two or more dependents might want to rethink this logic. In this situation, the maximum qualifying expenses has been $4,800 for the credit and $5,000 for the cafeteria plan – practically no difference. The new law would allow up to $6,000 in qualifying expenses for the credit, but not increase the $5,000 in the cafeteria plan. So, even though the rate of the credit may be less than the cafeteria plan savings, the increase in qualifying expenses may make the credit a better deal.

11. Private school tuition. Those with children in private school either currently or in the future should consider funding an education IRA to the maximum of $2,000 beginning next year. The money will be spent on tuition anyway – why not spend it now and benefit from some tax free growth?

12. Rethink planning for college costs. For pre-funding college costs, most have considered either the education IRA or the Section 529 plan (also known as the prepaid tuition plan). Previously, each avenue had its own pluses and minuses. For the education IRA, you can maintain investment control but are limited to an investment of $500 per year. For the 529 plan, substantial investments are allowed but investment control is lost. Also, assuming the funds are withdrawn someday for education purposes, the education IRA withdrawal is completely tax free while the section 529 withdrawal is taxable to the extent of earnings in the account. ^^ Back to top

Under the Act, in 2002 the education IRA gets the added strength of a $2,000 annual contribution. So, for those who $2,000 would be their maximum contribution, why not stick with the education IRA and keep control of the money?

The 529 plan also sees changes. First, it gets the same tax free treatment as the education IRA, provided that the funds are used for qualifying educational expenses. Second, more organizations can establish 529 plans, which will greatly broaden the investment choices available.

13. A new deduction for college loan interest. Are you still paying interest on those college loans? Although a deduction has been allowed for these costs for several years, it was greatly limited to those of lower incomes and to only the first sixty monthly payments, up to $2,500 per year. The income restriction has been doubled (those with incomes of up to $130,000 qualify for some benefit) and all payments for the life of the loan are now eligible. Look anew at how this may apply to your situation.

Please contact us to discuss your specific situation before taking any action based on these changes.

IRS has issued final regulations for required minimum distributions from qualified plans, 457 plans, tax-sheltered annuity plans and individual retirement plans. The effective date of these regulations is January 1, 2003. However, for determining required minimum distributions for calendar year 2002, you may rely on these new final regulations, the 2001 proposed regulations, or the old 1987 proposed regulations.

The final regulations retain last year’s simplified rules, including the uniform lifetime table for determining minimum distributions, but add new provisions relating to life expectancy and beneficiary designations. The final regulations adopt new tables of life expectancies to be used for determining minimum distributions.

These new tables also may be used to determine an individual’s life expectancy, or the joint life and last survivor expectancy of an individual and their designated beneficiary, for calculating the amount of substantially equal periodic payments. These new tables report longer life expectancies, a bit longer than even the advantageous tables issued in the proposed regulations issued just last year.

· One rule change from the proposed regulations is that thE date for determining the designated beneficiary has been moved to September 30 of the year following the year of death. If the beneficiary dies during the period between the individual’s date of death and September 30 of the year following the year of death, the individual continues to be treated as the designated beneficiary for purposes of determining the distribution period rather than the successor beneficiary.

The final regulations require that IRA trustees must report the required minimum distribution to the beneficiary beginning in 2003. This information is also reported to the IRS in 2004 on Form 5498.

The Department of Labor has exempted small retirement plans from the requirement that the plan receive an annual audit of its books and records. A small retirement plan is one with less than 100 participants at the beginning of the plan year.

Department of Labor Regulation 2520-104 states that, effective for plan years beginning after April 17, 2001, small plans will need to comply with another requirement to remain exempt from the audit requirement. This additional test states that either

Qualifying assets are mutual funds; insurance contracts; participant loans; employer securities; assets held by a bank, financial institution, insurance company, or broker dealer registered under the Securities and Exchange Act of 1934; and any assets over which the participant exercises control and for which the participant receives, at least annually, a statement from a regulated financial institution, describing the assets held or issued by the financial institution and their amount.

Small plans exempt from the audit requirement under these standards must make additional disclosures in the summary annual report relating to this waiver.

Please see us as soon as possible if your plan will need to be audited, either because of this requirement or because your plan has more than 100 participants at the beginning of the year.

The IRS has issued Notice 2002-23, which provides penalty relief for failure to file Form 5500 and related reports for benefit plans. Eligible taxpayers receive a reduced civil penalty and waiver of certain tax penalties.

In accordance with this effort, the Department of Labor has also reduced their late filing penalties from $50 to $10 per day. However, civil Department of Labor penalties may still be imposed.

If your plan has not filed Form 5500 for any prior years for any plan, please contact us so that we can look at your eligibility for this penalty reduction and waiver program.

Please do not hesitate to contact us if you have any questions about these or any other matters.

Tax Memo 2002-02: IRS Allows Restaurants and Taverns to Expense Smallwares

Previously, eating establishments had to capitalize the cost of smallwares. These are defined as cups, glasses, flatware, dinnerware, pots, pans, table top items, bar supplies, food preparation utensils and tools, and small appliances costing $500 or less such as can openers, food warmers, slicers, glass washers, knife sharpeners, blenders, juicers, etc.

Revenue Procedure 2002-12 provides a way to expense these items. The Internal Revenue Service now says that these are deductible when they are received at the restaurant and are available for use.

Those who have capitalized these in the past may use Rev Proc 2002-9 and expense them beginning with the years ending on or after December 31, 2001. Any balance sheet asset for smallwares can be expensed in 2001 (not spread over four years as is the norm with accounting method changes).

A small form 3115 will be due with the 2001 return reflecting the change.

With few significant new tax laws this year, most of "what's new" relates to tax changes enacted in prior years that take effect this year. Here's a quick listing of the major items:

· Faster depreciation – Most business equipment placed in service in 2002 qualifies for an extra 30 percent depreciation deduction in the first year.

Stock options are a form of compensation in which an individual can acquire stock through the exercise of an option to purchase stock at a discounted price. This article discusses two types of options: nonqualified stock options and incentive stock options.

Planning for stock options is complicated, and it has become increasingly more complex with the decline in stock values over the past year.

Stock options are a form of compensation – generally offered to employees of a company – in which an individual can acquire stock through the exercise of an option to purchase stock at a discounted price.

This article discusses two types of options: nonqualified stock options and incentive stock options.

When an individual exercises nonqualified stock options (nonquals), the difference between the fair market value of the stock and the purchase price to acquire the options, also referred to as the strike price, is treated as compensation income to the individual. The company is allowed a tax deduction for the compensation income taxable to the individual.

When incentive stock options (ISOs) are exercised, the spread between their fair market value and the strike price is not taxable income for regular income-tax purposes. That is the case provided the individual does not sell the stock within two years from the date the options are granted or one year from the date of the exercise of the options, whichever date is later. If this holding period is not met, the exercise of the ISOs is taxed the same as the exercise of a nonqualified stock option.

When planning for ISOs, you also need to be careful of the alternative minimum tax (AMT). If the ISO meets the holding-period requirements, the spread between their fair market value and the strike price is income for AMT purposes. Therefore, the timing and amount of ISOs to exercise is important. If the ISO is not exercised thoughtfully, a significant AMT income could be generated, and the taxpayer could be subject to the alternative minimum tax.

An essential concept to understand when planning for stock options is that an exercise of stock options does not generate any positive cash flow. In fact, no positive cash flow is generated unless the stock acquired through the exercise of an option is sold for more than the individual's investment in this security. In this case, the amount of the investment is equal to the strike price plus any federal and state income taxes paid on the exercise.

This is a significant issue because many taxpayers have exercised options during times when stock values were high. If the stock was sold at a time when values have declined dramatically, as they have in the last year, the individual could realize economic losses. However, check with your tax adviser because your deduction may be limited.

Tax planning for options is a necessity to preserve cash flow and minimize one's tax liability, but it can be very complex. If you have been granted options or exercised them during the year, please consult your tax adviser to plan accordingly.

Why do you need tax planning? ^^ Back to top

What is the purpose of tax planning? This article addresses that question and focuses specifically on tax planning for individuals.

What is the purpose of tax planning? Tax planning is a means to plan and manage a business or individual's tax position to a desired outcome in order to:

This article focuses on tax planning for individuals.

What should you do first? The first step in tax planning is to gather and organize your relevant financial information for a meeting with your CPA. Year-to-date pay stubs, bank statements and brokerage statements are required. If you have investments in pass-through entities such as partnerships, trusts or S corporations, a projection of the income and expenses would be extremely helpful.

If you are self-employed, a year-to-date summary of your income and expenses from your business is needed. If you have records of itemized deductions, including real estate tax payments, charitable contributions or other typically deductible itemized expenses, that information also should be included.

How is this information used? This information will be used to estimate your 2002 income tax liability. Your CPA can help you fill in the missing elements using estimates from either last year's tax return or your current-year projected information.

What's next? Once your 2002 return has been projected, your estimated tax payments or income tax withholdings can be adjusted as required. Keep in mind that one of the goals of year-end tax planning is to estimate your current income tax liability and whether your estimates and withholdings are sufficient to avoid underpayment penalties, while also conserving your cash flow.

What about gifts? Did you make gifts during the year? Were the gifts larger than the annual exclusion of $11,000? Have you considered the generation-skipping transfer tax? Are you considering additional gifts this year? Any of these possibilities could mean the need for gift tax return. Gift taxation is an extremely complex area and should be discussed with your tax adviser.

The time spent tax planning before year end is always advantageous because it allows taxpayers, with the help of their tax advisers, to control their tax affairs and avoid surprises when their returns are filed the following year. Give your tax adviser a call to help with your tax planning.

IRS warns of identity theft scam ^^ Back to top

The IRS recently warned consumers to be aware of a fraudulent scheme that uses fictitious bank correspondence and IRS forms to trick people into disclosing their personal and banking data. The information is then used to steal the individual's identity and bank account deposits.

This data can be used to take over financial accounts, run up charges on the victim's credit cards and apply for loans, credit cards and financial benefits in the victim's name. The IRS has received reports of the scam from all over the country and warns consumers to be very cautious when being asked to disclose financial information.

Visit the IRS Web site at www.irs.gov for additional details contained in IRS News Release IR-2002-55.

Is the timing right for Roth?

One good thing in the market recession is that it may cost less to convert your traditional IRA to a Roth IRA. Why would you convert? This article discusses the differences between a traditional and a Roth IRA, as well as whether you may benefit from switching.

The primary difference between a traditional IRA and a Roth is in how the taxes are handled. With a traditional IRA, contributions are made pre-tax. When the money is withdrawn, it is then taxed at your current tax rate. With a Roth IRA, you contribute after-tax money to the plan. Contributions and earnings accumulate tax-free and may be withdrawn tax-free, generally after the Roth is held five years and after age 591/2.

Furthermore, Roth IRAs are not subject to the minimum distribution rules of the normal IRA. In other words, you can leave the Roth to accumulate after age 70½, which is the age you must begin taking distributions from a traditional IRA.

If you decide to convert a traditional IRA to a Roth, you should be aware of a few rules.

While the tax burden of converting your traditional IRA to a Roth may prevent you from making the switch, you may want to reconsider this year. With the recent slide in the market, the tax cost of converting your IRA to a Roth could be less now than after a market recovery.

If the tax bite seems too big of a hit to take all at once, consider a partial conversion. Convert half of your traditional IRA this year and the other half next year, spreading your tax liability out over the two years.

What if you already converted that traditional IRA to a Roth in 2001? There is still a way to take advantage of our current economic lag. With the market lower now than in the recent past, you may wish to consider undoing the 2001 conversion, then re-converting now in 2002 when the tax cost for conversion may be lower. But, there are rules to consider:

For example, you have until Oct. 15, 2002, to undo a 2001 conversion. If you've already filed your 2001 return, you'll have to amend. In addition, if you undo a conversion, you can't reconvert until the following tax year – and only after a 30-day waiting period. So if you undo 2001 conversion in 2002, you can reconvert in 2002, but only after the 30-day period.

The bottom line is, if you are considering a Roth, but have been hesitant because of the tax implications, this may be a good time to revisit this option. Contact your tax adviser for help in this area.

Benefit from new laws with year-end tax planning ^^ Back to top

In preparing for year-end tax planning, remember the important changes in the tax law that take effect for the first time in 2002. This article highlights these changes.

Starting in 2002, a new 10 percent tax bracket is in place for the first $6,000 of taxable income per individual. In 2001, many people realized the benefit of the 10 percent tax bracket in the form of a refund check. In addition, the top four tax brackets are all dropped by ½ percent in 2002.

Starting in 2002, distributions from qualified tuition plans, sometimes referred to as "529 plans," are tax-free as long as they are used for qualified higher education expenses.

In the past, the maximum annual contribution to a Coverdell Education Savings Account (ESA) – formerly called an Education IRA – was $500 per beneficiary. Furthermore, distributions could be used only for higher education expenses.

Beginning in 2002, the annual amount that may be contributed to an account is $2,000, and distributions from these accounts also may be used for elementary and secondary school tuition and expenses.

In 2002, the amount you may defer under your employer's plan – generally 401(k), 403(b), 457 or SEP – has increased from $10,500 to $11,000. In addition, the maximum you may defer under a SIMPLE plan has increased in 2002 from $6,500 to $7,000.

Also, beginning in 2002, those age 50 and older are allowed to make additional "catch-up" contributions – $1,000 for 401(k) or $500 for SIMPLE plans – providing the plan allows it.

In 2002, the amount you may contribute annually to a traditional IRA or a Roth IRA has increased

from $2,000 to $3,000 with catch-up contributions of $500 allowed for those 50 and older.

Beginning in 2002, tax-free rollovers are allowed between more types of plans. In addition, surviving spouses may now roll over distributions to IRAs or other qualified plans – such as a 403(b) annuity or 457 plan – in which they participate. In the past, these types of rollovers generally had to be made into an IRA.

Beginning in 2002, qualified taxpayers will be allowed a deduction for higher-education expenses. An above-the-line deduction is allowed up to $3,000 for joint filers with modified adjusted gross income (AGI) of $130,000 or less and single/head of household filers with modified AGI of $65,000 or less. This must be coordinated with the HOPE or Lifetime Learning credits because you may not take a deduction and a credit in the same year with respect to the same student.

One important change in the estate and gift tax area is the increase from $10,000 to $11,000 per donee per year in the annual gift-tax exclusion. Another is the reduction in the top estate and gift tax rate from 55 percent to 50 percent. Finally, the amount that may be transferred by gift or inheritance without tax (unified credit exemption) increased from $675,000 in 2001 to $1 million in 2002.

The tax law is complex and ever changing and it is impossible to provide substantial information in this newsletter. However, we have attempted to highlight some of the changes for 2002.

Please contact your tax professional for further details and for assistance finalizing your year-end tax planning.

As an accounting, financial advising and mortgage brokerage firm, FM Financial Services takes pride in offering personalized service. Personal contact and communication with clients are priorities at FM Financial Services. We get to know our clients and develop an in-depth understanding of their business. In addition, the years of experience held by the members of FM Financial Services allow us to provide this personalized service, personal contact, communication and client knowledge.

From the founding of the firm until today, our feeling has always been that every client is important. Every client is treated with respect, whether they are a fledgling business or a multi-million dollar conglomerate. It is important to us that our clients receive service that is personal, timely, and as worry-free as possible. Our goal is to help our clients reach their maximum potential through service and counseling.

All information provided in this site is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although every effort has been made to offer the most current correct and clearly expressed information possible, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.

Accordingly, the information in this site is not intended to serve as legal, accounting or tax advice. Users are encouraged to consult with FM Financial Services, Inc., for advice concerning specific matters before making any decision and FM Financial Services disclaims any responsibility for positions taken by taxpayers in their individual cases or for any misunderstanding on the part of users.

Certain links on this site lead to resources located on servers maintained by third parties over which FM Financial Services has no control. As such, FM Financial Services cannot provide any warranty about the accuracy or source of information found on any of these servers or the content of any file the user might choose to download from such servers.

POLICY ON DISCLOSURE OF YOUR PERSONAL INFORMATION

THIS DOCUMENT CONTAINS IMPORTANT INFORMATION ON OUR CONCERN FOR PROTECTING YOUR RIGHTS UNDER FEDERAL PRIVACY LAWS.

1. We collect personal information about you and all our clients from the information you submit on our applications or other forms, and through information we obtain over the course of your business relationship with us, our affiliates, and others. In addition, we may from time to time receive information about you from a consumer reporting agency.

2. Personal information is information that we collect from you that is not otherwise available from public sources. The categories of personal information we collect include the following:

3. Generally speaking, we will not disclose any personal information about our clients or former clients to anyone, consistent with our professional confidentiality obligations. However, upon your request we will disclose information about you, and we may be required by law to disclose personal information about you, as, for example, in response to a subpoena or other court order.
Also, we may disclose personal information about you to our affiliated financial planning and investment advisor firms.

4. Within our institution, we provide access to your personal information only to those employees who need to know the information to provide you with our services. We maintain physical, electronic, and procedural safeguards to guard your personal information.

5. Generally, we do not share your personal information with companies that perform marketing services.

Please contact us if you have any questions about this statement. ^^ Back to top