Category: Banking & Finance

On April 1st the Federal Deposit Insurance Corporation (“FDIC”) will
increase its deposit insurance coverage of retirement accounts from
$100,000 to $250,000. [1]  This change represents the first boost to
coverage in over twenty-five years. [2]  Despite coverage for
non-retirement accounts staying at the current level of $100,000, the
increase in coverage for retirement accounts will be beneficial to
consumers and banks alike. [3]

The
last increase in deposit insurance coverage took place in 1980 when it
was raised from $40,000 to $100,000. [4]  However, many Americans now
have much more than $100,000 in retirement savings.  [5]  This meant
they were forced to bank at multiple institutions in order to have all
of their retirement funds insured. [6]  Under the new law, individuals
will be able to have up to $250,000 in retirement funds at one bank.
[7]  This will make banking easier for consumers and increase profits
for banks. … Read the rest

Despite the invalidation of communications excise tax, I.R.C. §
4251, by numerous federal courts the IRS is demanding that collection
of the tax continue. [1] The three percent communications excise tax
was originally imposed in 1898 as a temporary luxury tax to help fund
the Spanish-American war. [2] The tax applies to a number of
communications services among which is long-distance or “toll
telephone” service and is paid by everyone, both individuals and
businesses, who makes long-distance calls. [3]

For
purposes of the communications excise tax, the IRS defines toll
telephone service as “a telephonic quality communication for which . .
.there is a toll charge which varies in amount with the distance and
elapsed transmission time of each individual communication.” (emphasis
added) [4] The IRS contends that the word “and” in the statute should
be read as “either,” while those fighting the tax contend that “and”
should be read … Read the rest