| ICLUB Insider |
December 7, 2005 |
THE LATEST NEWS ON
INVESTING SOFTWARE BUILT BY ICLUBCENTRAL INC.
Summary
The 2005 Club Tax Printers are now available for purchase! The Club Tax Printer makes it a snap to prepare your club's required IRS filings using your club accounting software. This year, there are some important changes in the software of which all club treasurers should be aware, so please review the following information carefully.
Club Accounting 3
Users of Club Accounting 3 can purchase the Federal Club Tax Printer program, and the Club State Tax Printer for eight states (Arizona, California, Georgia, Maryland, Massachusetts, Minnesota, Missouri and New York). These programs operate as a "plug-in" to Club Accounting 3. Once installed, they appear as options on the CA 3 file menu; just select the Taxes menu and begin the process of generating your club's forms. When first installed, the CA 3 tax printers include draft forms which cannot be used to file with the IRS or your state agency. However, the CA 3 tax printers feature an auto-updater, which will automatically download and install the final forms when they are released. This will allow you to make sure that your forms are properly completed while we wait for final release of forms sometime in January, and then you can quickly print the final documents for your club.
The CA3 Club Tax Printers can be purchased and shipped on CD-ROM, or you can choose to download the program directly from the iclub.com web site and activate it with the serial number that you'll receive by email (and save on the shipping charge). The software is identical in either case and includes the auto-updater technology.
Club Accounting Online at myiclub.com
New this year, users of Club Accounting Online at myiclub.com can purchase both the Club Federal Tax Printer and the Club State Tax Printer (for the same eight states). (In prior years, there was no Club State Tax Printer for users of Club Accounting Online.) To generate your club's filings, just select the Taxes tab.
As with the CA 3 Tax Printer, the tax printers for Club Accounting Online will initially be released using draft forms. These will be updated with final forms as soon as they become available. When it comes time to order the Club Tax Printers for Club Accounting Online, log in to your club's web site, click the Taxes tab, and follow the link to purchase the Club Tax Printer. This will ensure that your purchase is linked to the correct club and that you purchase the right Club Tax Printer for Club Accounting Online.
NAIC Club Accounting 2.5
The Club Federal Tax Printer for NCA 2 operates in the same manner as last year's program. The program installs as a separate icon on your computer desktop; click the icon and begin generating your club's filings.
Because Club Tax Printer for NCA 2 can not be updated automatically with final forms, the software will not be released until the IRS finalizes the 2005 tax forms (usually by mid-January). The Club Tax Printer for NCA 2 will be available on CD-ROM and by download, and may be pre-ordered before 12/31/05, but the program will not be available until final forms are available.
This year, there will be no Club State Tax Printer for NCA 2. If you live in one of the eight states for which the Club State Tax Printer is available for CA 3 or Club Accounting Online, and wish to use the Club State Tax Printer, you can upgrade to Club Accounting 3 or switch to Club Accounting Online at myiclub.com. In either case, you can import your existing data into the new program.
Pricing and Availability
We haven't raised the price of the Club Tax Printers at all! The full price for a federal or state Club Tax Printer for a single club is $79 each. BetterInvesting members save $20, and can buy the federal or state Club Tax Printer for $59. BetterInvesting members who order before December 31, 2005 can buy the federal or state Club Tax Printer and save an additional $10 -- just $49 each! Having an accountant or tax preparer complete your forms would cost hundreds of dollars, so there's no easier or quicker way to prepare your required tax filings than by using the Club Tax Printers.
The 2005 Club Tax Printers for Club Accounting 3 and Club Accounting Online are now available for purchase by download or on CD. You may also pre-order the 2005 Club Federal Tax Printer for NCA 2 now for expected delivery in January. Visit http://www.iclub.com/products/p_taxes.asp or click the Taxes tab at your Club Accounting Online at myiclub.com web site for more information or to place an order.
In order to become a successful investor, it's not enough to know what and when to buy -- it's just as important to know when to sell. But it's not always easy to identify companies in your portfolio that are experiencing problems that could affect your portfolio's long-term results.
That's where unbiased, independent advice from experts can come in handy -- the kind of advice on which ICLUBcentral's market-beating investment newsletter, the Investor Advisory Service, has built a solid reputation. In its December 2005 issue, IAS issued sell recommendations for three stocks in the medical industry. These companies all exhibited signs of weakness, and IAS team took action. Here's what our IAS analysts had to say about these three stocks.
Diagnostic Products had an unsatisfying quarterly report, not only in terms of minimal results, but in terms of lack of specific explanation or evidence of definite plans to rectify. For the third quarter of 2005 ending in September 2005, earnings per share were up 1.8% on a 7% sales increase. Currency translation effects produced 2% of the sales increase. The company reports lower than expected levels of reagent sales for its diagnostic tests and does not report any specific plan for improvement. Hence, we feel very uneasy and recommend sale of the stock and will discontinue coverage of DP (40.73).
Orthofix had an ambiguous report for the third quarter of 2005. Sales were up a modest 6% while earnings per share on a consistent basis abstracting a one-time payment for litigation, was essentially flat with a year ago. The litigation settlement was a very substantial $48 million net of costs. Since the company does not break out income tax effects of this item, it is difficult to interpret reported results with precision. However, it is clear that sales and profits are slowing from previous years. Spine-related products were the only area showing solid growth, up 25%. Sales results for core reconstruction and trauma products were entirely flat. While the whole orthopedic industry is currently having a difficult time, Orthofix is doing even less well than most. We recommend the sale of OFIX (36.24) and will discontinue coverage.
Quest Diagnostics had reasonable results for the quarter ending September 2005. Sales were up just 6%, but earnings per share were up 13% after removing the $0.05 per share impact that the company indicates the hurricane produced and the one-time write-down of an investment. While this is a reasonable earnings growth level, it is not up to the performance of past years. The company is now the nation's largest provider of medical testing and information services. It seems that we must begin to expect that it, in effect, constitutes the industry. Growth in the future may be what one can expect from the industry more than as a result of management of the individual company.
We expect growth for the industry to be somewhere in the neighborhood of the 6% increase in sales that Quest reported for the last quarter. DGX (48.77) is an extremely well-established company with a secure outlook, but we feel better growth is available elsewhere and recommend sale of the stock. We will discontinue coverage.
Couldn't your portfolio benefit from this kind of insight? Make a New Year's Resolution to improve your portfolio with IAS's help. Just visit http://www.iclub.com/ias/ and use the promotion code TAXPA to save $100 off the price of an online or print subscription.
An important part of a club treasurer's job is to close the books each year. Before you file your club's tax returns, you should use these guidelines to finalize your club's financial recordkeeping for the 2005 tax year.
Please note that you will not be able to close the books until you have all your paperwork. Most clubs close their books for the previous year at the end of January.
Before you start, if you are using Club Accounting software for Windows, make sure you are running the most recent version of the program:
- If you are using NCA 2, check here for updates.
- If you are using Club Accounting 3, select Help > Check for updates from the menu.
When you have all the statements, balances, and reports for December, here's how to close your books for the year. Be sure to refer to the instructions for the version of the program that you are running, NAIC Club Accounting 2 or Club Accounting 3.
Club Accounting 3
- Enter all data up to 12/31.
- Verify all members' addresses and Social Security numbers in the Members screen.
- Verify the club's Tax ID in the Tools > Settings screen.
- Using the Transactions section on the left, review all your dividends for the year to confirm that you have the correct ex-dividend date for each dividend your club received last year.
- Select Tools > Year-End Tasks to start the Year-End Wizard. Follow the on-screen instructions.
- Run the Federal and State Tax Printer software for 2005 (More information).
- Print two Form 1065s (one for the IRS, one for the club's permanent records).
- Print three copies of Schedule K-1 for each current member and any former member who withdrew during the year.
- Attach one Schedule K-1 for each member to Form 1065 for IRS filing.
- Give one copy of his/her own Schedule K-1 to each member or withdrawn member.
- Keep one copy with the club's copy of the IRS filing in the club's permanent records.
- Mail Form 1065 tax filing to IRS before April 15. Non-filing and late-filing penalties are calculated per month and per member. Be sure to send it to the IRS via Certified Mail, return receipt requested.
- Attach Return Receipt to the Club's copy of the IRS filing.
- Arrange for Club Verification Committee to review the club's books. This may be done at any convenient time, preferably after end-of-year closing.
NAIC Club Accounting 2
- Correctly identify all mutual funds, REITs, and "other" (Limited and Publicly Traded Partnerships, etc.) securities in the Security Section > Edit/Delete Security Profile screen.
- Enter the ex-dividend date for each dividend your club received last year in the Accounting > Security Section > View/Edit Delete Security Transactions screen.
- Enter all data up to 12/31.
- Reconcile your Club Accounting records with bank, broker and all DRP statements.
- Wait until you have received all 1099's from companies.
- Display Transaction Summary Report for full year.
- Add Charges Paid by Company as necessary.
- Match the total reported on Form 1099 received from company.
- Verify all members' addresses and Social Security numbers, and Club Tax ID number.
- Enter Valuation for all securities as of 12/31. Use the closing prices for the last trading day of the year, but always use 12/31 date.
- Run the Audit Utility.
- Run Distribution of Earnings utility.
- Print Distribution of Earnings Report for all members.
- Create Federal and State Tax filings from the 2005 Club Tax Printer software (More information).
- Print two Form 1065s. (One for the IRS, one for the club's permanent records).
- Print three copies of Schedule K-1 for each current member and any former member who withdrew during the year.
- Attach one Schedule K-1 for each member to Form 1065 for IRS filing.
- Give one copy of his/her own Schedule K-1 to each member or withdrawn member.
- Keep one copy with the club's copy of the IRS filing in the club's permanent records.
- Mail Form 1065 tax filing to IRS before April 15. Non-filing and late-filing penalties are calculated per month and per member. Be sure to send it to the IRS via Certified Mail, return receipt requested.
- Attach Return Receipt to the Club's copy of the IRS filing.
- Arrange for Club Verification Committee to review the club's books. This may be done at any convenient time, preferably after end-of-year closing.
And now a word from ICLUBcentral Technical Support: Users of Club Accounting Online at myiclub.com now have their own user's manual that describes how to use the service to keep your club's books and facilitate club discussions and operations. You can download the manual in Adobe Acrobat (PDF) format by logging in to your club web site and clicking the Help link at the top of the page. Look on the right side of the page for the link to download the manual.
Once you save the manual to your computer, you can read it in the free Adobe Acrobat Reader. You can use the Acrobat Reader's search functions to quickly find the information you're looking for, making it one of the quickest ways to get help when you need it. In the coming weeks, we'll offer a spiral-bound printed version for sale, as well. Watch this newsletter for the announcement, as well as the release of some cool new features that will help your club in their investing and portfolio management tasks!
Thanks for using Club Accounting Online at myiclub.com, the world's most popular investment club web site!
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Some ICLUBcentral products use the investing methodologies of BetterInvesting, a national nonprofit organization dedicated to investor education. BetterInvesting assumes no liability or obligations with respect to the investment education information or other content presented in the ICLUB Insider. For more information on BetterInvesting, please visit http://www.betterinvesting.org.
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