FGS Advisors, LLC

                                              FGS Advisors, LLC

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8300 Hall Rd, Suite 203 • Utica, MI 48317 • (586) 808-4433 • www.fgsadvisors.com

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January 2017

Dear Friends:

Welcome to the New Year and yet another tax season together.  _____________________________________________________________________________________

The year kicks off with a new president, higher interest rates, and stocks at all-time highs. 

While President-elect Trump is in a strong position to enact his promise of lower tax brackets, it’s important to remember that the current income tax rates of 10, 15, 25, 33, 35 and 39.6 percent are still in effect for tax returns being filed for the 2016 tax year in 2017. The standard deduction amounts remain $6,300 single/married filing separately, and $12,600 for married filing jointly. The standard deduction for heads of households, however, rises to $9,300.

New permanent incentives for individuals: The PATH Act of 2015 made a number of tax incentives permanent.  These include:

• The American Opportunity Tax Credit;

• The teachers’ $250 classroom expense deduction;

• The ability to deduct state and local sales tax instead of state income taxes;

• The exclusion for direct charitable donation of up to $100,000 from an IRA; and,

• The 100 percent gain exclusion on qualified small-business stock.

Tax Fraud Scams Continue to be a Serious Threat:  Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers.  The criminals are also getting more creative by mailing fraudulent letters impersonating the IRS.  The IRS has seen a surge of these scams as scam artists threaten police arrest, deportation, license revocation and other things. 

Don't be fooled by callers pretending to be from the IRS in an attempt to steal your money," said IRS Commissioner John Koskinen. “We continue to say if you are surprised to be hearing from us, then you're not hearing from us.”

The IRS will never:

• Call to demand immediate payment, nor will the agency call about taxes owed without first having                  mailed you a bill.

• Demand that you pay taxes without giving you the opportunity to question or appeal the amount they          say you owe.

• Require you to use a specific payment method for your taxes, such as a prepaid debit card.

• Ask for credit or debit card numbers over the phone.

• Threaten to bring in local police or other law-enforcement groups to have you arrested for not

   paying.

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We have enclosed a simple deduction finder for 2016 to assist you in organizing your data.  The long form organizers are available upon request.  As always, please provide us with the original W-2’s, 1099’s, brokerage statements showing investment activity, supporting statements for mortgage interest, real estate taxes and contributions both cash and non-cash.  In addition, please provide us with any other pertinent information.  And finally, please inform us of any and all significant changes in your circumstances.

After your information has been gathered together, please mail it to the office or bring it in personally.  We will review the documents and call with questions.  Generally, appointments are not necessary unless special circumstances have occurred in 2016.  In that case, please call and arrange an appointment.

As a provider of professional financial and tax services we are required by law to inform clients of our policies regarding privacy of client information.  Our firm continues to adhere to professional standards of confidentiality that are more stringent than those required by law.  We have always protected the security and privacy of your personnel and financial information.  We will always be on guard.

We at FGS Advisors value our relationship with you.  We hope that we will remain your preferred tax preparers, advisors, and team members.

Our office is located just east of Van Dyke, on the south side of Hall Road, just past the Pure Sleep store, in the Wyngate Towne Center office complex.  If you have any questions, please don’t hesitate to contact us.

To learn more about our firm as well as additional information on recent tax law changes please visit us on the web at www.fgsadvisors.com.

Alexsandra - Lene - And The Entire FGS Advisors Team