AN HSA MAY BE A GOOD CHOICE FOR YOU

Health savings accounts (HSAs) allow taxpayers with high-deductible health insurance plans to set aside pretax dollars that can be withdrawn tax-free to pay unreimbursed medical expenses. You might find an HSA to be the right choice for you and your family. The 2014 contribution limit to an HSA is $3,300 for individuals and $6,550 for families, with a $1,000 catch-up contribution for older individuals.

ENERGY CREDITS STILL AVAILABLE

The IRS reminds taxpayers that certain energy credits are still available. If you haven't already taken advantage of them, this may be the year to make energy-efficient improvements to your home. You may be entitled to a credit of 10% of the cost of certain energy-saving improvements such as insulation, windows, doors, skylights, and roofs. The credit has a maximum lifetime limit of $500; the credit for windows is limited to $200. Not all energy improvements qualify, the IRS cautions taxpayers, so be sure you have the manufacturer's credit certification statement (usually available with the product's packaging or on the manufacturer's website).

STAY ALERT FOR HOLIDAY FRAUD

Thieves and con artists thrive during the holidays. All that good cheer, all those weary and distracted shoppers, all that money being spent - it's a fraudster's paradise. Here are a few tips to keep the bad guys at bay, whether you're shopping online or at your local mall.

IRS SENDS "POSSIBLE INCOME UNDERREPORTING" NOTICES

Form 1099-K is a new information return sent to businesses by "payment settlement entities" reporting the amount of credit card and other electronic receipts that were processed for the business. The IRS also receives a copy of Form 1099-K and cross checks the reported amounts with the business's total income reported on its tax return. Where the numbers don't seem to make sense, the IRS sends notices to businesses telling them they "may have underreported gross receipts." Notices go on to say "This is based on your tax return and Form(s) 1099-K, Payment/Merchant Cards and Third Party Network Transactions that show an unusually high portion of receipts from card payments."

The IRS has sent thousands of letters labeled "Notification of Possible Income Underreporting" to small business owners. The notification project is ongoing as part of the IRS's campaign to deal with the "tax gap," the difference between taxes owed and taxes actually collected.

If you receive a notice, contact us immediately at (518) 798-3330 so that we can determine what response is required.

BALANCE RISK AND RETURN TO CREATE INVESTMENT BALANCE

Even if you're not an investment expert, you're probably familiar with the term "diversification." Choose the right mix of investments to keep a balance between risk and return.

DON'T LET TAXES CLOUD YOUR ECONOMIC DECISIONS

Some tax-cutting strategies make good financial sense. Other tax strategies are simply bad ideas, often because tax considerations are allowed to override basic economics.

PLAN FOR THE RETURN OF SOME TAX BREAK PHASE-OUTS

Are you familiar with PEP and Pease? Though they sound like a pop duo, the terms refer to tax rules known as phase-outs that can impact how much federal income tax you owe.