1. Check withholding and estimated tax deposits to adjust if necessary to avoid underpayment penalty (which is really a nominal interest charge for not paying taxes in the year they are due).

2. Check net gains and losses on sale of non-retirement investments to date and unrealized gains or losses on current holdings to consider additional sales by year end for tax benefit.

3. If self-employed and profitable, consider purchase of needed assets by year end, using either cash or credit, to qualify for section 179 writeoff (acquisition year expensing up to $100,000 against income).

4. If itemized deductions don't exceed your standard deduction (see chart with amounts above), consider bunching deductions paid (such as real estate or state income taxes, charitable donations, elective medical if enough to exceed 7.5% AGI, and miscellaneous itemized deductions to exceed 2% of AGI, into alternate years for maximum tax savings.

5. If total Roth IRAs or traditional IRAs having basis due to receipt of non-deductible contributions or individual annuity investments are worth less currently than your basis and the loss would exceed 2% of your current AGI, consider liquidating those holdings by year end to take the loss as a miscellaneous itemized deduction if you itemize. Other items to consider in making that decision include the impact upon alternative minimum tax (AMT), since these itemized deductions don't reduce AMT income (AMTI) which now has a $58,000 less 25% of AMTI above $150,000 exclusion if married filing jointly, $29,000 less 25% of AMTI over $75,000 if filing separately, and $40,250 less 25% of AMTI exceeding $112,500 if single, and you lose future sheltered deferral of gains.

6. Consider increasing your basis in an S corporation by loaning cash by year end if necessary to allow deduction of losses this year.

7. Adjust payroll for owners, if applicable, to increase basis for retirement contributions. Employers should consider establishing a retirement plan, especially self-employed. Employees should consider authorizing increased participation in employer retirement plans available beginning early in the year. Notify us if refunds of excess 2003 contributions are received in 2004.

8. Consider income deferral or deduction acceleration at year end to defer taxation another year, unless this year's rates are lower than what is anticipated next year for you, or alternative minimum tax applies this year.

9. Insure minimum distribution requirements (see page 3 of our 2002 tax action guide) are met by December 31 to avoid potential penalty assessment, and consider distributing more than the minimum from your retirement accounts if you are in the lowest tax rates with substantial percentage of your available savings still in retirement accounts.

10. Check beneficiary designations on all accounts and policies to insure they are appropriately completed and update or document estate plans (wills, trusts, powers of attorney, health care surrogate designations, living wills, organ donor authorization, and listing of tangible property bequests) and consider advisability of completing annual gifts to the extent of $11,000 annual exclusion by December 31.

More than ever, tax rules and financial options are complex. Appropriate, timely planning can result in substantial monetary and time savings. Call on us for specific planning questions in your case anytime, and please read the letter accompanying your tax data organizer package sent to you as a client for a description of enhanced filing services now included for your 2003 filing. If not now a client, call soon for yours.