"Jews for Jesus Development Department Monthly Newsletter" with David Stone of Jews for Jesus in San Francisco, California, United States for Monday, August 15, 2016Shalom to you, our partners in ministry. It is an honor to share with you the latest news from Washington, Savvy Living, Personal Planning, gift stories, finance news, and timely articles.There are no "asks" in this eNewsletter as it is designed totally to be a helpful service to you. Feel free to share it with others in your family or your friends. If you would like me to send it directly to them please send me their email address.
This information is put together in a way to be a help in understanding what is happening in our economy so you can use it to your best advantage. I hope this information is useful to you.
If you have any questions or I can be of assistance to you please contact me.
David Stone
Director of Donor Relations
PERSONAL PLANNER
Planning for Senior Care
Planning for retirement and senior care is very important. The activities of daily living for a senior person include eating, dressing, bathing and walking or moving. At some point, every senior will likely need assistance in one or more of these areas.
An important consideration will be the cost of providing that care. By retirement, it is helpful for you to own your home, be debt free, and have retirement income and savings. Retirement income will frequently include Social Security, your IRA or 401(k), a pension plan and investment earnings.
Typically, there are four different levels of care utilized by seniors. The first level includes "in-home care" which includes moderate assistance with certain living functions, such as meal delivery. In home care often eventually progresses to "home healthcare", defined as assistance with the activities of daily living by a home healthcare aid or nurse. The next level is a more formal assisted living or independent living facility. In an assisted living facility, there are more staff and a higher level of assistance. Finally, the fourth level is skilled nursing care. This is 24-hour nursing care in a facility that is designed to provide a higher level of medical assistance.
Independent Home Care
Independent home care is popular for several reasons. First, it is the least expensive of the four levels of care. Independent home care, or "home care" typically provides a senior with assistance for one or more life functions that does not include healthcare.
With home care, seniors are able to live independently in their home. Seniors with home care might, for example, benefit from a program that delivers a daily meal to their home. If they are not able to maintain their driver's license, they might also participate in a ride-sharing program once or twice per week so they can go to the store to buy certain essentials.
There are a number of local charities that provide services to assist with home care and outreach services. In addition, friends and family can create a schedule to provide assistance to their senior loved one.
Finally, home care very often includes a home monitoring system that allows seniors to contact the monitoring service if they are injured. This service might also require seniors to check in at the same time every morning when an alert sounds so that the monitoring service can contact a relative who lives nearby if the senior does not respond.
Home Healthcare
The next level of care, home health care, involves a greater degree of assistance to seniors and includes healthcare services that are provided in the senior's home. Home healthcare will vary significantly depending on the level of services provided. However, it frequently will cost from $10,000 to $30,000 per year.
Home healthcare is preferred to assisted living or nursing home care because the person receiving care will be able to maintain his or her independence. While the cost is generally reasonable, there are many organizations and providers who can give you good quality care. A key decision for home healthcare is the person who will be the caregiver. Family is often the first option. If you have a child or other relative who is willing to provide assistance, you may be able to live quite comfortably in a family home or perhaps in an attached apartment.
The next level will frequently be a service provider such as a home healthcare aide. The aides visit on a regular basis and provide assistance. Many individuals are able to manage well by themselves as long as they have a home healthcare aide who makes regular visits.
A third level of home healthcare may involve visits by a practical nurse or registered nurse. The nurse may assist you with various types of care and check to see that you are using your medications or other types of therapy in a beneficial manner.
There are safeguards that should be carefully considered for home healthcare. The organizations that provide home healthcare are generally licensed by each state. You can check into their certification and also their reputation. It's also helpful to have a family member who is in regular contact with the senior person who is receiving home healthcare.
As you age and become more senior, it may be appropriate for you to stop driving and to depend on others for transportation. In addition, the family protector can watch to see that you do not make inappropriate expenditures or become vulnerable to any type of abuse.
Independent or Assisted Living
The next level of care is independent or assisted living which typically has a cost of $40,000 to $65,000 per year.
Many facilities provide both independent and assisted living. Independent living permits the individual to live in a residential facility, but to have a reasonably high level of control of his or her life. With independent living, the person will live in his or her own apartment or small residence and frequently retains a vehicle and the ability to drive. Independent living often offers a meals plan so that the resident can choose to eat in a common dining area.
Assisted living occurs in a more structured residence with a higher level of staff services. The assisted living facility will involve staff who regularly assist residents with the activities of daily living.
Long-term Care
Long-term care includes several levels of care. The two most common levels are skilled nursing and intermediate care. Skilled nursing will provide around-the-clock care from a licensed practical nurse or registered nurse. The cost of skilled nursing care may be $90,000 to $110,000 per year.
Intermediate care facilities also are intended to care for residents that have chronic illnesses or impairments of health. These facilities offer 24-hour staff care. However, they will not always have a registered nurse and may use vocational or practical nurse staff.
It is extremely important with long-term care to examine the facility. Is the facility owned and managed by a for-profit or a nonprofit? What is the affiliation of the organization?
A person may be in a skilled nursing home for several years. Because the costs are very significant, the financial strength of the organization is quite important. If the organization at some point in the future has a financial shortfall, it may find it necessary to reduce services. This could have great impact on the care of a senior person.
Other areas to consider are the facility and the services. What is the location of the facility? You should review the cleanliness of the rooms and the public areas and try to determine the general feelings of current residents toward the facility. Many care facilities offer a number of different types of services. Some of these are social or recreational while others are therapeutic and health related.
Finally, how are the levels of staffing and the food service for the facility? A good facility will have a caring and adequate staff and food service team for the number of residents.
Alzheimer's Care
Alzheimer's is a challenging disease because it leads progressively to very high care requirements. Because of the staff and facility requirements, Alzheimer's care can cost $100,000 or more per year.
There are three general levels of Alzheimer's. Early-stage Alzheimer's involves some short-term memory loss, difficulties with routine tasks and mood swings. Middle-stage Alzheimer's patients may start to show confusion about time and place, loss of memory and wandering. With late-stage Alzheimer's, there is a loss of cognitive function and eventual physical deterioration.
Home care is possible for early-stage Alzheimer's. A family member can provide the level of care needed. It is important that the caregiver understands the risks and takes protective actions to minimize the potential for the senior person to wander off and become lost.
The next level of care is an organized senior residence with a measure of independence. This will provide available 24-hour care, but still enables an early or middle-stage Alzheimer's patient to have some level of control of his or her activities.
Finally, for advanced stages of Alzheimer's, the senior person will need 24-hour residential care. Family members should examine the rooms, consider the staffing levels and review the policies regarding medication for those Alzheimer's patients.Read More
PERSONAL PLANNER
Planning for Senior Care
Planning for retirement and senior care is very important. The activities of daily living for a senior person include eating, dressing, bathing and walking or moving. At some point, every senior will likely need assistance in one or more of these areas.An important consideration will be the cost of providing that care. By retirement, it is helpful for you to own your home, be debt free, and have retirement income and savings. Retirement income will frequently include Social Security, your IRA or 401(k), a pension plan and investment earnings.
Typically, there are four different levels of care utilized by seniors. The first level includes "in-home care" which includes moderate assistance with certain living functions, such as meal delivery. In home care often eventually progresses to "home healthcare", defined as assistance with the activities of daily living by a home healthcare aid or nurse. The next level is a more formal assisted living or independent living facility. In an assisted living facility, there are more staff and a higher level of assistance. Finally, the fourth level is skilled nursing care. This is 24-hour nursing care in a facility that is designed to provide a higher level of medical assistance.
Independent Home Care
Independent home care is popular for several reasons. First, it is the least expensive of the four levels of care. Independent home care, or "home care" typically provides a senior with assistance for one or more life functions that does not include healthcare.
With home care, seniors are able to live independently in their home. Seniors with home care might, for example, benefit from a program that delivers a daily meal to their home. If they are not able to maintain their driver's license, they might also participate in a ride-sharing program once or twice per week so they can go to the store to buy certain essentials.
There are a number of local charities that provide services to assist with home care and outreach services. In addition, friends and family can create a schedule to provide assistance to their senior loved one.
Finally, home care very often includes a home monitoring system that allows seniors to contact the monitoring service if they are injured. This service might also require seniors to check in at the same time every morning when an alert sounds so that the monitoring service can contact a relative who lives nearby if the senior does not respond.
Home Healthcare
The next level of care, home health care, involves a greater degree of assistance to seniors and includes healthcare services that are provided in the senior's home. Home healthcare will vary significantly depending on the level of services provided. However, it frequently will cost from $10,000 to $30,000 per year.
Home healthcare is preferred to assisted living or nursing home care because the person receiving care will be able to maintain his or her independence. While the cost is generally reasonable, there are many organizations and providers who can give you good quality care. A key decision for home healthcare is the person who will be the caregiver. Family is often the first option. If you have a child or other relative who is willing to provide assistance, you may be able to live quite comfortably in a family home or perhaps in an attached apartment.
The next level will frequently be a service provider such as a home healthcare aide. The aides visit on a regular basis and provide assistance. Many individuals are able to manage well by themselves as long as they have a home healthcare aide who makes regular visits.
A third level of home healthcare may involve visits by a practical nurse or registered nurse. The nurse may assist you with various types of care and check to see that you are using your medications or other types of therapy in a beneficial manner.
There are safeguards that should be carefully considered for home healthcare. The organizations that provide home healthcare are generally licensed by each state. You can check into their certification and also their reputation. It's also helpful to have a family member who is in regular contact with the senior person who is receiving home healthcare.
As you age and become more senior, it may be appropriate for you to stop driving and to depend on others for transportation. In addition, the family protector can watch to see that you do not make inappropriate expenditures or become vulnerable to any type of abuse.
Independent or Assisted Living
The next level of care is independent or assisted living which typically has a cost of $40,000 to $65,000 per year.
Many facilities provide both independent and assisted living. Independent living permits the individual to live in a residential facility, but to have a reasonably high level of control of his or her life. With independent living, the person will live in his or her own apartment or small residence and frequently retains a vehicle and the ability to drive. Independent living often offers a meals plan so that the resident can choose to eat in a common dining area.
Assisted living occurs in a more structured residence with a higher level of staff services. The assisted living facility will involve staff who regularly assist residents with the activities of daily living.
Long-term Care
Long-term care includes several levels of care. The two most common levels are skilled nursing and intermediate care. Skilled nursing will provide around-the-clock care from a licensed practical nurse or registered nurse. The cost of skilled nursing care may be $90,000 to $110,000 per year.
Intermediate care facilities also are intended to care for residents that have chronic illnesses or impairments of health. These facilities offer 24-hour staff care. However, they will not always have a registered nurse and may use vocational or practical nurse staff.
It is extremely important with long-term care to examine the facility. Is the facility owned and managed by a for-profit or a nonprofit? What is the affiliation of the organization?
A person may be in a skilled nursing home for several years. Because the costs are very significant, the financial strength of the organization is quite important. If the organization at some point in the future has a financial shortfall, it may find it necessary to reduce services. This could have great impact on the care of a senior person.
Other areas to consider are the facility and the services. What is the location of the facility? You should review the cleanliness of the rooms and the public areas and try to determine the general feelings of current residents toward the facility. Many care facilities offer a number of different types of services. Some of these are social or recreational while others are therapeutic and health related.
Finally, how are the levels of staffing and the food service for the facility? A good facility will have a caring and adequate staff and food service team for the number of residents.
Alzheimer's Care
Alzheimer's is a challenging disease because it leads progressively to very high care requirements. Because of the staff and facility requirements, Alzheimer's care can cost $100,000 or more per year.
There are three general levels of Alzheimer's. Early-stage Alzheimer's involves some short-term memory loss, difficulties with routine tasks and mood swings. Middle-stage Alzheimer's patients may start to show confusion about time and place, loss of memory and wandering. With late-stage Alzheimer's, there is a loss of cognitive function and eventual physical deterioration.
Home care is possible for early-stage Alzheimer's. A family member can provide the level of care needed. It is important that the caregiver understands the risks and takes protective actions to minimize the potential for the senior person to wander off and become lost.
The next level of care is an organized senior residence with a measure of independence. This will provide available 24-hour care, but still enables an early or middle-stage Alzheimer's patient to have some level of control of his or her activities.
Finally, for advanced stages of Alzheimer's, the senior person will need 24-hour residential care. Family members should examine the rooms, consider the staffing levels and review the policies regarding medication for those Alzheimer's patients.Read More
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SAVVY LIVING
Medicare Coverage for Non-Working Spouses
Does Medicare cover spouses who have not worked? I have worked all my life, but my spouse worked only for a few years when we first got married but then quit to take care of our children full time. Will she be eligible for Medicare?
There are plenty of couples in your situation when it comes to applying for Medicare. The answer generally is yes, your spouse can qualify for Medicare on your work record. Here's how it works.
Eligibility Rules
Medicare, the government health insurance program for older adults, covers more than 55 million Americans age 65 and older, as well as those younger than age 65 who have a qualifying disability or have end-stage renal disease.
To be eligible, you must have worked and paid Medicare taxes for at least 10 years to qualify for premium-free Medicare Part A hospital coverage when you turn 65. If you qualify, then your non-working spouse will qualify too, based on your work record, when she turns 65.
Divorced spouses are also eligible if they were married at least 10 years and are single. Surviving spouses who are single and who were married for at least nine months before their spouse died are also eligible.
In addition to Part A, both you and your spouse would also qualify for Medicare Part B, which covers doctor's visits and other outpatient services. However, Medicare Part B requires a monthly premium, not a work history. The premium for most Part B beneficiaries in 2016 is $104.90 per month, while new beneficiaries pay $121.80 per month. Also note that higher earning couples - those with incomes over $170,000 per year - pay even more.
There are also a number of other caveats you should be aware of depending on your wife's age.
Older Spouse
If your wife is older than you, she can qualify for Medicare on your work record at age 65, even if you're not getting Medicare yourself, so long as you are at least 62 years old. You also must have been married for at least one year for your wife to apply for Medicare on your work record.
If you are still working and your wife is covered by your employer's health insurance, she may want to enroll only in the premium-free Medicare Part A until you retire or your employer's coverage ends. Part B - along with its premium - can be added later without penalty as long as your employer's group health plan is your "primary coverage." Check with your employer's human resources department to find out about this.
If your wife is more than three years older than you and has no health coverage, you can buy her Medicare Part A until you turn 62 and the premium-free benefit kicks in. The Part A monthly premium is $411 in 2016.
Younger Spouse
If your wife is younger than you, she will need health insurance until she turns 65 and becomes eligible for Medicare. This may be obtained through your employer, if you are still working, through COBRA (seedol.gov/ebsa/publications/cobraemployee.html), the Health Insurance Marketplace (see healthcare.gov) or outside the marketplace through a private insurance company.
Other Medicare Options
In addition to Medicare Part A and B, when you and your wife become Medicare eligible, each of you will also need to enroll in a Part D prescription drug plan if you don't have credible drug coverage from your employer or union. You also may want to purchase a Medicare supplemental (Medigap) policy too, in order to help pay for things that aren't covered by Medicare—like copayments, coinsurance and deductibles. Alternatively, you may want to consider an all-in-one Medicare Advantage plan.
For more information on Medicare choices and enrollment rules visit Medicare.gov or call 800-633-4227. You can also get help through your State Health Insurance Assistance Program (see shiptacenter.org), which provides free Medicare counseling.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070. Read More
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YOUR PLAN
Give it Twice Trust
While visiting the Wills Planner on her favorite charity's website, June, a surviving spouse, came across the idea of a Give it Twice Trust. She contacted the charity for more information and talked with a gift planner who explained the concept as a way to first give income to children through a trust and then transfer the trust balance to charity in the future.
June: Fred and I talked about this before he passed away. We both agreed that we wanted to treat each of our four children equally and also provide a benefit to our favorite charity.
The gift planner told June that with her estate of $800,000 she would have the ability to do something significant for both her family and favorite charity. June was concerned because while her three older children are financially responsible, her youngest, Jim, "spends money like water." June was afraid that if Jim were to receive cash in a lump sum he would spend it right away.
The gift planner explained that the "Give It Twice" plan could be very helpful. June could transfer $400,000 from her IRA at death to the trust. Her children would each receive one-fourth of the income from the trust over 20 years. That would give Jim a chance to learn to save and invest. After that time, the trust balance would benefit her charity. In addition, by using her IRA, June could save on income tax because the special trust is tax-exempt.
June: I established a Give it Twice Trust and was thrilled with the plan. The prospect of helping my four children and my favorite charity made me happy and I knew that it was the right thing to do.Read More
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WASHINGTON NEWS
IRS Battles Stolen Identity Refund Fraud
While thieves continue to steal identities and file for fraudulent refunds, the IRS reported modest success in the ongoing battle over refund fraud.
Stolen identity refund fraud thieves are both creative and successful. Most initially were "lone wolves" who would steal the identity of a single person and electronically file an early tax return to claim a refund. The thieves have steadily increased in sophistication. Some now have implemented "robocalls" and created small call centers.
In 2013, the Treasury Inspector General for Tax Administration (TIGTA) estimated a cost to the government of $26 billion over five years for tax refund fraud. As the IRS steadily moves the nation to a system involving eFiling, there are continued opportunities for new, creative types of refund fraud. In response to this challenge, the IRS has implemented multiple strategies to battle the thieves.
1. Staffing – There now are over 3,000 IRS employees who are involved in the fight against refund fraud.
2. Security Summit – The IRS conducts an annual meeting and brings together its staff, state tax authorities and private tax software employees. The conference discusses the latest methods for fighting fraud.
3. Impersonation Calls – The IRS has received 1.5 million reports of tax scammers who impersonate IRS agents. When the IRS receives a report, it calls the number and informs the tax scammers that they are subject to federal prosecution. The IRS urges the tax scammers to stop their unlawful efforts.
4. Phone Disconnect – The IRS then will call the phone company providing service to that number and arrange for the phone line to be disconnected.
5. Phone Flooding – With a strategy similar to the hacker "denial of service" method, IRS computers will flood the phone line with calls and make it difficult for the scammer to use the line to call potential victims.
6. Software Filters – The IRS now has over 200 different software modules on their computers that seek out and identify stolen identity refund fraudsters.
7. Phone Authentication – The PIN number and "Get Transcript" system now have additional authentication. The IRS computer may send a code to the cell phone of the individual that is used for a higher level of security.
Editor's Note: This battle against refund fraud will continue. The Justice Department is also pursuing and regularly convicting identity thieves. As the thieves move offshore, it will be important for the other types of protection by the IRS to be enhanced.
Fraudster Attack on CPAs and Tax Preparers
The world of identity theft continues to evolve. In IR-2016-103 (10 Aug 2016) the IRS explained a new attack on tax preparers. Fraudsters send tax preparers an email claiming to be from their tax software company. The tax preparer is urged to click on a link in order update his or her tax preparation software.
When the tax preparer clicks on the link, an executable file then installs software on the computer that will send keystroke information to the thief. With this keystroke information, the identity thief will be able to steal passwords, login information and even some client information.
The IRS has launched a campaign with the title "Protect Your Clients: Protect Yourself." There are several warnings and strategies as part of that campaign.
1. Phishing Scams – Be careful and do not click on links. Many tax software companies have automated their updates. If the update is not automated, go to the website of the tax preparation company and click on the link to update your software.
2. Anti-Virus Software – Most anti-virus software will automatically update each day to provide additional protection against new strains of each virus. You also should periodically run a "deep scan" to clear your computer of any potential virus code.
3. Staff Education – Many small and mid-sized offices have a network that serves multiple staff. A new staff member may infect the network by inadvertently clicking on a link. Train all new staff members to follow these security practices.
4. Remote Access – Many employers now allow some employees to "telecommute." If this is an option, there must be secure and encrypted access to the company network. A qualified technology person should create a virtual private network (VPN) or other method for secure access.
5. Secure Routers – Many network routers now include sophisticated security software. This router with security software will block or filter viruses at the entry point to your network.
The IRS urges all tax professionals to view Publication 4557, "Safeguarding Taxpayer Data, A Guide for Your Business." Read More
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FINANCES
Stocks - Red Robin's Earnings Below Forecasts
Bonds - Treasurys Decline on Consumer Spending Data
CDs and Mortgages - Mortgage Rates See Slight Uptick
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Thank you for your interest in planned giving. To access any of our resources, please go to our website.
Your Brother in Yeshua (Jesus),
David Stone
Jews for Jesus
Our mailing address is:
Jews for Jesus
60 Haight Street
SAVVY LIVING
Medicare Coverage for Non-Working SpousesDoes Medicare cover spouses who have not worked? I have worked all my life, but my spouse worked only for a few years when we first got married but then quit to take care of our children full time. Will she be eligible for Medicare?
There are plenty of couples in your situation when it comes to applying for Medicare. The answer generally is yes, your spouse can qualify for Medicare on your work record. Here's how it works.
Eligibility Rules
Medicare, the government health insurance program for older adults, covers more than 55 million Americans age 65 and older, as well as those younger than age 65 who have a qualifying disability or have end-stage renal disease.
To be eligible, you must have worked and paid Medicare taxes for at least 10 years to qualify for premium-free Medicare Part A hospital coverage when you turn 65. If you qualify, then your non-working spouse will qualify too, based on your work record, when she turns 65.
Divorced spouses are also eligible if they were married at least 10 years and are single. Surviving spouses who are single and who were married for at least nine months before their spouse died are also eligible.
In addition to Part A, both you and your spouse would also qualify for Medicare Part B, which covers doctor's visits and other outpatient services. However, Medicare Part B requires a monthly premium, not a work history. The premium for most Part B beneficiaries in 2016 is $104.90 per month, while new beneficiaries pay $121.80 per month. Also note that higher earning couples - those with incomes over $170,000 per year - pay even more.
There are also a number of other caveats you should be aware of depending on your wife's age.
Older Spouse
If your wife is older than you, she can qualify for Medicare on your work record at age 65, even if you're not getting Medicare yourself, so long as you are at least 62 years old. You also must have been married for at least one year for your wife to apply for Medicare on your work record.
If you are still working and your wife is covered by your employer's health insurance, she may want to enroll only in the premium-free Medicare Part A until you retire or your employer's coverage ends. Part B - along with its premium - can be added later without penalty as long as your employer's group health plan is your "primary coverage." Check with your employer's human resources department to find out about this.
If your wife is more than three years older than you and has no health coverage, you can buy her Medicare Part A until you turn 62 and the premium-free benefit kicks in. The Part A monthly premium is $411 in 2016.
Younger Spouse
If your wife is younger than you, she will need health insurance until she turns 65 and becomes eligible for Medicare. This may be obtained through your employer, if you are still working, through COBRA (seedol.gov/ebsa/publications/cobraemployee.html), the Health Insurance Marketplace (see healthcare.gov) or outside the marketplace through a private insurance company.
Other Medicare Options
In addition to Medicare Part A and B, when you and your wife become Medicare eligible, each of you will also need to enroll in a Part D prescription drug plan if you don't have credible drug coverage from your employer or union. You also may want to purchase a Medicare supplemental (Medigap) policy too, in order to help pay for things that aren't covered by Medicare—like copayments, coinsurance and deductibles. Alternatively, you may want to consider an all-in-one Medicare Advantage plan.
For more information on Medicare choices and enrollment rules visit Medicare.gov or call 800-633-4227. You can also get help through your State Health Insurance Assistance Program (see shiptacenter.org), which provides free Medicare counseling.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070. Read More
-------
YOUR PLAN
Give it Twice Trust
While visiting the Wills Planner on her favorite charity's website, June, a surviving spouse, came across the idea of a Give it Twice Trust. She contacted the charity for more information and talked with a gift planner who explained the concept as a way to first give income to children through a trust and then transfer the trust balance to charity in the future. June: Fred and I talked about this before he passed away. We both agreed that we wanted to treat each of our four children equally and also provide a benefit to our favorite charity.
The gift planner told June that with her estate of $800,000 she would have the ability to do something significant for both her family and favorite charity. June was concerned because while her three older children are financially responsible, her youngest, Jim, "spends money like water." June was afraid that if Jim were to receive cash in a lump sum he would spend it right away.
The gift planner explained that the "Give It Twice" plan could be very helpful. June could transfer $400,000 from her IRA at death to the trust. Her children would each receive one-fourth of the income from the trust over 20 years. That would give Jim a chance to learn to save and invest. After that time, the trust balance would benefit her charity. In addition, by using her IRA, June could save on income tax because the special trust is tax-exempt.
June: I established a Give it Twice Trust and was thrilled with the plan. The prospect of helping my four children and my favorite charity made me happy and I knew that it was the right thing to do.Read More
-------
WASHINGTON NEWS
IRS Battles Stolen Identity Refund FraudWhile thieves continue to steal identities and file for fraudulent refunds, the IRS reported modest success in the ongoing battle over refund fraud.
Stolen identity refund fraud thieves are both creative and successful. Most initially were "lone wolves" who would steal the identity of a single person and electronically file an early tax return to claim a refund. The thieves have steadily increased in sophistication. Some now have implemented "robocalls" and created small call centers.
In 2013, the Treasury Inspector General for Tax Administration (TIGTA) estimated a cost to the government of $26 billion over five years for tax refund fraud. As the IRS steadily moves the nation to a system involving eFiling, there are continued opportunities for new, creative types of refund fraud. In response to this challenge, the IRS has implemented multiple strategies to battle the thieves.
1. Staffing – There now are over 3,000 IRS employees who are involved in the fight against refund fraud.
2. Security Summit – The IRS conducts an annual meeting and brings together its staff, state tax authorities and private tax software employees. The conference discusses the latest methods for fighting fraud.
3. Impersonation Calls – The IRS has received 1.5 million reports of tax scammers who impersonate IRS agents. When the IRS receives a report, it calls the number and informs the tax scammers that they are subject to federal prosecution. The IRS urges the tax scammers to stop their unlawful efforts.
4. Phone Disconnect – The IRS then will call the phone company providing service to that number and arrange for the phone line to be disconnected.
5. Phone Flooding – With a strategy similar to the hacker "denial of service" method, IRS computers will flood the phone line with calls and make it difficult for the scammer to use the line to call potential victims.
6. Software Filters – The IRS now has over 200 different software modules on their computers that seek out and identify stolen identity refund fraudsters.
7. Phone Authentication – The PIN number and "Get Transcript" system now have additional authentication. The IRS computer may send a code to the cell phone of the individual that is used for a higher level of security.
Editor's Note: This battle against refund fraud will continue. The Justice Department is also pursuing and regularly convicting identity thieves. As the thieves move offshore, it will be important for the other types of protection by the IRS to be enhanced.
Fraudster Attack on CPAs and Tax Preparers
The world of identity theft continues to evolve. In IR-2016-103 (10 Aug 2016) the IRS explained a new attack on tax preparers. Fraudsters send tax preparers an email claiming to be from their tax software company. The tax preparer is urged to click on a link in order update his or her tax preparation software.
When the tax preparer clicks on the link, an executable file then installs software on the computer that will send keystroke information to the thief. With this keystroke information, the identity thief will be able to steal passwords, login information and even some client information.
The IRS has launched a campaign with the title "Protect Your Clients: Protect Yourself." There are several warnings and strategies as part of that campaign.
1. Phishing Scams – Be careful and do not click on links. Many tax software companies have automated their updates. If the update is not automated, go to the website of the tax preparation company and click on the link to update your software.
2. Anti-Virus Software – Most anti-virus software will automatically update each day to provide additional protection against new strains of each virus. You also should periodically run a "deep scan" to clear your computer of any potential virus code.
3. Staff Education – Many small and mid-sized offices have a network that serves multiple staff. A new staff member may infect the network by inadvertently clicking on a link. Train all new staff members to follow these security practices.
4. Remote Access – Many employers now allow some employees to "telecommute." If this is an option, there must be secure and encrypted access to the company network. A qualified technology person should create a virtual private network (VPN) or other method for secure access.
5. Secure Routers – Many network routers now include sophisticated security software. This router with security software will block or filter viruses at the entry point to your network.
The IRS urges all tax professionals to view Publication 4557, "Safeguarding Taxpayer Data, A Guide for Your Business." Read More
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FINANCESStocks - Red Robin's Earnings Below Forecasts
Red Robin Gourmet Burgers, Inc. (RRGB) announced its second quarter results on Monday, August 8. The casual-dining chain's results were below Wall Street estimates.
The company reported that revenue during the quarter rose 4.3% to $305.5 million. Despite the increase, this was below the estimate of $313.6 million.
"Given the challenges facing our industry, we are addressing immediate opportunities by focusing on things we can control," said Red Robin Gourmet Burgers CEO Steve Carley. "These include increasing speed of service, accentuating everyday value, and fostering more 'top of mind' awareness through local marketing initiatives and a new media campaign that will launch in the fourth quarter with incremental spending in select, high penetration markets."
Red Robin reported earnings per share of $0.75, lower than the $0.78 per share earned during the comparable period last year. Estimates were for earnings per share of $0.80.
Following the earnings release, it was announced that CEO Steve Carley will be retiring. His hand-picked successor, Denny Marie Post, proceeded to outline plans to get the burger chain back on track in the second half of the year. Specifically, the company will be looking to increase the speed of service and explore an online ordering option. For the year, Red Robin's share price has fallen 15%.
Red Robin Gourmet Burgers, Inc. (RRGB) shares ended the week at $52.07, up 9.1% for the week.
WebMD's User Base Falls
WebMD Health Corp. (WBMD) announced its second quarter earnings on Monday, August 8. The online health information company reported that earnings were up, but monthly users fell during the quarter.
The company reported that revenue during the quarter increased 13% to $167.6 million. This was better than the company's own forecast of $163 million to $166 million.
"WebMD's second quarter results reflect our consistent execution and leadership in a fast-paced, dynamic digital marketplace," said WebMD CEO David Schlanger. "We continue to invest in our user experience and advertiser products and are well positioned as a key partner to our biopharma and OTC/CPG customers. Today, we are pleased to reaffirm our strong outlook for 2016."
WebMD reported that net income rose 33% to $17.8 million or $0.39 per share. This beat the consensus estimate of $0.38 per share.
While WebMD's bottom line numbers came in ahead of estimates, the company reported that average monthly traffic fell 6% to 199 million unique users. Despite the fall in users, page views increased 3% to 4.23 billion. WebMD also announced that it expects revenue next quarter to be between $168 million and $171 million, in line with expectations of $169 million.
WebMD Health Corp. (WBMD) shares ended the week at $53.45, down 11% for the week.
News Corp. Reports Earnings
News Corp. (NWS) announced its second quarter results on Monday, August 8. The news conglomerate reported improved earnings compared to the same period last year.
The company reported that revenue increased 5% to $2.2 billion. This was better than Wall Street estimates for revenue of $2.06 billion.
"We ended Fiscal Year 2016 with strong results in the fourth quarter, highlighted by robust year-over-year growth in revenues and EBITDA at Digital Real Estate Services and an upturn at HarperCollins," said News Corp. CEO Robert Thomson. "We are confident that News Corp's unique portfolio and global distribution, combined with our focus on cost efficiencies, mean we are uniquely positioned to capitalize on broader social and commercial trends, and drive long-term value for investors."
News Corp. reported that net income was $89 million or $0.15 per share. During the same period last year, the company reported a loss of $379 million or $0.65 per share.
Digging into the numbers, the company's news and information services segment reported a 1% increase in revenue to $1.42 billion. Revenue for the publishing segment and digital real estate business rose 11% and 21%, respectively. Subscriptions for the News Corp-owned Wall Street Journal rose from 893,000 to 948,000.
News Corp. (NWS) shares ended the week at $12.87, up 5% for the week.
The Dow started the week of 8/8 at 18,542 and closed at 18,576 on 8/12. The S&P 500 started the week at 2,184 and closed at 2,184. The NASDAQ started the week at 5,224 and closed at 5,233.
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Weak retail and restaurant sales caused Treasury yields to fall on Friday, August 12. Disappointing consumer spending data did not match last week's strong jobs report, pointing to signs of a struggling U.S. economy.
Data released Friday showed that retail and restaurant sales were flat in the month of July, falling short of the 0.5% increase forecast by economists. If consumer spending remains tepid, it reduces the likelihood that the Federal Reserve will raise interest rates before the end of the year.
During early Friday trading, the benchmark 10-year note yield fell to 1.495%, compared to 1.536% prior to the release of the consumer spending report. The 10-year yield began the week with a yield of 1.59%. Yields move inversely to prices, so as yields fall, prices rise.
"Treasurys have responded as you would have expected [to the data release]," said John Canavan, market analyst at Stone and McCarthy Research Associates. "I don't think you can make any specific call based on just this morning's figures, but taken alone they certainly don't argue for the Fed to be in any rush here."
Following last week's strong July jobs report, Fed funds futures, used by traders to place bets on Federal Reserve policy, showed a 47% likelihood of a rate increase before year end. On Friday, that likelihood had fallen to 43%.
The 10-year Treasury note yield finished the week of 8/8 at 1.52%, while the 30-year Treasury note yield was 2.24%.
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Freddie Mac released its latest Primary Mortgage Market Survey (PMMS) on Thursday, August 11. The report revealed interest rates rising only slightly this past week.
The 30-year fixed rate mortgage averaged 3.45% this week. This represents an increase from last week when it averaged 3.43%. Last year at this time, the 30-year fixed rate mortgage averaged 3.94%.
This week, the 15-year fixed rate mortgage averaged 2.76%. This was up from last week when it averaged 2.74%. The 15-year fixed rate mortgage averaged 3.17% one year ago.
"A surprisingly strong July jobs report showed 255,000 jobs added and 0.3% wage growth from last month, exceeding many experts' expectations," said Sean Becketti, Chief Economist at Freddie Mac. "In response, the 10-Year Treasury yield rose to its highest level since June and the 30-year fixed-rate mortgage increased 2 basis points to 3.45%."
Based on published national averages, the money market account finished the week of 8/8 at 0.50%. The 1-year CD finished at 1.14%.
Read More Thank you for your interest in planned giving. To access any of our resources, please go to our website.
Your Brother in Yeshua (Jesus),
David Stone
Jews for Jesus
Our mailing address is:
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