CLIENT NEWS

Norman and Ben Arnold, of the Arnold Companies, were honored by the South Carolina Chapter of the March of Dimes with their Real Estate Award for 2006.

The Real Estate Award was established to honor members of the real estate community who have demonstrated a long history of service.  Recipients are chosen for their outstanding leadership and vision in the community. 

Congratulations to Norman and Ben.

NEWS FROM BP&S

BP&S formed a team of 10 people (including employees and family members) to participate in the Walk For Life.  The Walk, which was held on Saturday, October 7, is held annually in order to raise awareness about breast cancer.  Funds raised benefit the South Carolina Comprehensive Breast Center. 

The Dam Swim for Drew

The Dam Swim for Drew is an annual event sponsored by the Lexington High School Varsity and JV swim teams in memory of Drew Smith, who was killed in a DUI boating accident, and to raise awareness for boating safety.  It is a 2 mile open water swim for the teams.  USA and Master Swimmers are also invited every year to participate.

Hunter McCary, 12 year old son of BP&S small business accountant Cheryl McCary, participated in this swim.  His mother was extremely proud of him for doing this difficult event.  The day of the swim, the wind was blowing fairly hard so the water was pretty choppy.  This made the swim even more difficult for the least experienced swimmers.  Hunter finished in approximately 1 hour and 39 minutes. 

Hunter was pleased to be a part of this event and hopes that the money raised in memory of Drew Smith will help to cut down on boating accidents on the lake. 

BP&S was proud to sponsor Hunter in this event.

Clemson Golf Tournament

Keach Jordan, David Shuford and Barbara Luksik participated in Clemson’s Beta Alpha Psi (accounting honor fraternity) golf outing on Friday, October 20.  Apparently, Barbara’s driving range practice paid off—she won the longest drive (ladies’ hole) and longest putt (ladies’ hole) prizes.  Although rumor has it that the longest drive was a worm burner, we were proud that Barbara hit the ball in the fairway!

More Golf-Related News
 

BP&S recently sponsored golf holes at fund raising events for Palmetto Place and Cardinal Newman High School.

Looking for Experienced Auditors

Due to continued strong growth in our audit and accounting practice, the Firm is looking for an audit senior with two to four years of recent, high quality audit experience. Compensation will be commensurate  with experience. If you are interested (or know of someone who is interested), please e-mail your resume directly to Tom Pietras.

TECHNICAL ISSUES

Tax Refunds--IRS announces new form for taxpayers to split their refunds among accounts
 

Taxpayers who opt to split their refunds among multiple accounts soon will have a new form to make such requests.

The IRS has unveiled a draft version of Form 8888, “Direct Deposit of Refund”.

The form is intended to help taxpayers implement new choice and flexibility for direct deposits of their 2006 federal income tax refunds.  Starting in January 2007, taxpayers can divide their refunds between as many as three checking or savings accounts and three different U.S. financial institutions by using Form 8888.  This new option will be available for tax refunds filed either on paper or electronically.

“This change will give taxpayers more options for managing their refunds, teamed with the speed and safety of direct deposit,” the IRS said.

In addition to traditional checking and savings accounts, refunds also can be directed to accounts such as individual retirement arrangements, health savings accounts, or Coverdell education savings account.  However, the IRS noted in the instructions included on the draft form, taxpayers cannot have their refunds deposited into more than one account if they file Form 8379, Injured Spouse Allocation.

Taxpayers can continue to use the direct deposit line on Form 1040 to electronically send their refunds to one checking or savings account.

South Carolina sales tax rate to increase to 6%

South Carolina’s state sales and use tax rate will increase from 5% to 6% effective June 1, 2007.  State legislators approved the 1% increase this year as part of the Property Tax Relief Act.  The change will not affect purchases subject to the state’s $300 sales and use tax cap or the 7% tax rate on sleeping accommodation rentals.

While the state sales tax rate will increase next year, legislators also reduced the state sales tax rate on unprepared food from 5% to 3%, effective October 31, 2006.  The 3% sales and use tax rate will apply to unprepared food which “lawfully may be purchased with United States Department of Agriculture food coupons.”  The 3% rate also will apply to taxpayers 85 years old and older who ordinarily receive a 1% discount on the state’s top tax rate.  The sales tax rate on unprepared food will remain 3% when the South Carolina’s sales and use tax rate is boosted to 6% next June.

Department of Revenue Forms ST-3, ST-388 and St-389 are being revised to reflect the changes.  The 3% food tax rate will be reported in page 2 of Form ST-389.  Information on the sales and use tax changes will be available at the South Carolina Department of Revenue’s website, www.sctax.org.

South Carolina last raised the sales tax rate in 1984 when legislators approved a 1% increase under the Education Improvement Act.

Shoppers will get second sales tax break this year
 

When shoppers head out to the malls for the unofficial start of the Christmas season this year, they’ll have even more incentive to “shop till they drop.”

The South Carolina General Assembly has given shoppers an extra sales tax holiday this year.  The special one-time only, two-day suspension from South Carolina’s sales and use tax and casual excise tax is Friday and Saturday Nov. 24-25.  The tax relief falls conveniently on the Thanksgiving weekend, which retailers say is the busiest shopping weekend of the year.  The suspension is for two days only and does not apply to Sunday November 26 purchases.

Unlike the annual August sales tax holiday where only specific items are exempt from tax, the sales and use tax suspension for November will be lifted on the purchase of any item normally subject to the tax.

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