Members in the News

Anil Melwani (Manhattan/Bronx)

7 Small Business Tax Write-Offs You Shouldn’t Forget

Creator

Tax season has crept up on us. It’s that time when you’re sending out income forms to all your employees and contractors, going over your expenses, and finding an accountant to help you meet the IRS deadline. This year, thankfully, the IRS is giving us all more time to file. By April 18, you’ll want to make sure that everything is squared away. Aside from the standard write offs for businesses, there are numerous breaks that you should be taking advantage of. Here are several—some new for 2016—may not have realized you could use this year. According to Anil Melwani, a certified public accountant and founder of 212 Tax and Accounting Services in New York City, small businesses should look into the Protecting Americans from Tax Hikes Act of 2015.

Julius Reich (Westchester)

Scarsdale Husband Charged With Slaying of Wife, an NYC Pediatrician

Wall Street Journal

Any killing would likely have rattled the residents of Scarsdale, which hadn’t seen a homicide in nearly four decades. But the death of New York City pediatrician Robin Goldman was especially shocking for this Westchester County community because of the suspect: her husband, accounting firm partner Julius “Jules” Reich. “People say this type of thing doesn’t happen in their town but it really doesn’t here,” said Marcy Klein, 59 years old, who manages a dog-grooming business in Scarsdale, 10 miles outside of New York City. “We are all shocked.” Mr. Reich, 61, was arrested Wednesday and charged with second-degree murder. He was arraigned Wednesday and is being held without bail at the Westchester County jail, according to the county’s Department of Correction.

Scott Stavin (Nassau)

It's Time to Get Serious About Tax Season: Get Organized And Get Filing

Olney Daily Mail

You're three months away from the tax filing deadline for 2015. Is your return anywhere near ready? If you didn't start making year-end tax plans before December 31, it might be worth your while to start gathering up all your documents now and getting organized. The Internal Revenue Service began accepting tax returns on Tuesday, though technically you could have prepared a return on paper or through tax software and submitted it earlier. However, the IRS wouldn't accept them until January 19. Filing this early makes it less likely that you'll be a victim of tax fraud, since someone would have to sneak in a return with a fraudulent refund amount before yours arrives, but it also requires everyone to play along. If you haven't been collecting pay stubs all year, you'll have to wait on W-2 or 1099 forms from your employer. Those don't have to reach taxpayers until Feb. 1, which almost guarantees you'll kick off tax season behind the pack.

Sidney Kess (Manhattan/Bronx)

AICPA to Combine Financial Planning and Accounting Conferences

Accounting Today

The American Institute of CPAs is planning to host a combined financial planning and accounting conference called AICPA Engage. The conference will co-locate five of the AICPA conferences into a single event focused on financial planning and public accounting from June 12 to 15, 2017 at the MGM Grand in Las Vegas. AICPA Engage will encompass the Advanced Estate Planning Conference, Advanced Personal Financial Planning Conference, Conference on Tax Strategies for High-Income Individuals, National Advanced Accounting and Auditing Technical Symposium and the Practitioners Symposium/TECH+ Conference. 

Sidney Kess (Manhattan/Bronx)

Sidney Kess Honored By American Institute Of CPAs

Financial Advisor Magazine

Sidney Kess has received the American Institute of Certified Public Accountants 2015 Personal Financial Planning Distinguished Service Award, the AICPA announced Tuesday. The award is granted annually to an AICPA member whose volunteer efforts have made significant contributions to the growth and advancement of the personal financial planning profession. The award was presented at the AICPA’s Advanced Financial Planning Conference in Las Vegas. Kess has authored and co-authored hundreds of publications, courses, videos, and practice aids on income tax and financial and estate planning for the AICPA. He is a recipient of the AICPA’s Gold Medal Award, the highest award granted to a CPA by the AICPA, for his major contributions to the CPA profession.

Vincent Cervone (Queens/Brooklyn)

Tax season tips: All you need to know about the new tax extender legislation

New York Daily News

The official start of tax season on Jan. 19 — when the IRS begins to accept returns — means it’s that time of the year again when we as Americans get ready to focus on filing our taxes. We frantically struggle to gather all our information so we can accurately piece together our tax information and know what we can and cannot deduct for 2015. Congress has reached an agreement on what they call "Tax Extenders" and introduced legislation aptly named "Protecting Americans from Tax Hikes Act of 2015.” To much surprise, some of these tax extenders were made permanent, while others were just extended for a period of time. Some of these key provisions were also modified and/or added as to prevent tax fraud, which has been increasing dramatically for the past few years.

Chris Gamble (Rochester)

Protection from tax hikes

WROC Rochester First

CPA Chris Gamble of Kroner Gamble + Company discussed the "Protecting Americans from Tax Hikes Act of 2015" Monday on News 8 at Sunrise. Gamble said the new legislation was signed into law on December 18 and has many sections that impact income taxes for 2015 and the future.  The changes will impact individuals and businesses. The new law has many sections, but Gamble said the following will have the biggest impact on individuals: The option to deduct state and local tax as part of itemized deductions in lieu of state and local income tax has been made permanent. The American Opportunity Tax Credit, an education credit, has been made permanent. The teachers' classroom expense deduction of up to $250 for classroom expenses paid by a teacher has been made permanent.

Michelle Staebell (Rochester)

IRS hires private collectors

WROC Rochester First

CPA Michelle Staebell of Towner Taxes discussed the Internal Revenue Service and a new plan to hire private debt collectors Monday on News 8 at Sunrise. The private debt collectors are being hired by the IRS to help pay for a new law called the FAST Act. FAST stands for Fixing America's Surface Transportation. It's estimated hiring private debt collectors would raise about $5 billion over 10 years. This would put a small dent into the estimated $280 billion worth of taxes that has gone uncollected by the IRS. The IRS is outsourcing the debt collection because of a lack of funding and manpower internally to collect back taxes. Staebell noted the IRS has always said it will never contact taxpayers initially by phone, but these private debt collectors may do so. She said the most important thing to know is that the private debt collectors hired by the IRS cannot accept payments for taxes. The payments must be made to the IRS directly.

FAE Conferences

NYSSCPA announces special guests for Jan. conferences

Accounting Tomorrow

The NYSSCPA's Foundation for Accounting Education (FAE) has announced that three special guests will be featured at three upcoming conferences this month: the 38th Annual Nonprofit Conference, the Partnership Taxation Conference, and the Taxation of Financial Instruments and Transactions Conference. Richard Cole, supervising project manager at the Financial Accounting Standards Board (FASB), will headline the 38th Annual Nonprofit Conference on Thursday, January 14, 2016. Cole will look to provide a status update of the exposure draft related to financial statements of not-for-profit entities. Attendees will also be able to learn about the upcoming agenda of the New York State Charities Bureau, from the Bureau’s NYC Chief, James Sheehan. Andrea Macintosh Whiteway, partner at McDermott Will & Emery, will lead the Partnership Taxation Conference on Thursday, January 19, 2016. She will discuss the tax implications of contributing a Section 704(c) property to a partnership.

Chris Gamble (Rochester)

Financial resolutions for 2016

WROC Rochester First

CPA Chris Gamble discussed some financial resolutions for the new year Monday on News 8 at Sunrise. Gamble discussed a number of recommended resolutions, including paying off debt, and learning more about financial literacy and financial planning.  He said getting in financial shape can really pay off in the future.  Financial freedom can be achieved through managing debt, investing properly, keeping emergency savings, and paying bills on time. Gamble advocated consulting with a certified public accountant or financial planner for all types of money matters.

Seymour Goldberg (Suffolk)

New Liability Concerns for Accountants, Financial Planners and Attorneys Regarding IRA Advice

Accounting Today

Many individuals in the United States have IRA accounts. These retirement accounts may be substantial and are often the target of financial planners who are interested in handling and managing the IRA assets, for a fee, of course. This is big business for financial planners. In addition, many accountants are licensed to sell insurance products and manage money. Accountants who are financial planners often have an interest in a wealth advisory unit that is connected, directly or indirectly, with their accounting firm. Here comes the liability headache that involves the retirement plan area.

Jamie Block (Rochester)

Bonuses

WROC Rochester First

CPA Jamie Block discussed the tax considerations of year end work bonuses Monday on News 8 at Sunrise. Block said according to a 2014 survey from consulting firm Challenger, Gray & Christmas, 78 percent of businesses expected to offer a year-end gift or bonus. Bonuses are treated like additional pay, meaning they are subject to withholding, FICA, and FUTA taxes just like regular pay. When it comes to bonuses, Block said the IRS expects you to pay 28 percent of the money you receive to federal income tax withholding.  If you use the money to bolster a 401(k) contribution, the tax can be deferred. Block noted you can shelter a bonus by paying upcoming deductible business or personal expenses before December 31.

Joanne S. Barry - Executive Director and CEO

Could Having a 'Pro-CPA Culture' Backfire on Accounting Firms Desperate for Talent?

GoingConcern

Back in October, we discussed whether the CPA exam would ever become an optional within CPA firms. The reason the topic even came up was due to the fact that while the number of accounting students continues to increase, the number sitting for the CPA exam hasn't kept up, either declining in some years or staying flat. We noted what New York State Society of CPAs Executive Director Joanne Barry said at the time: More students than ever before in New York State are studying accounting, and there is not enough space to accommodate all of them. “However those students are not sitting for the CPA Exam,” Barry added. “The number of exam takers has been flat for two and a half years now. Why? We don’t know for sure.”

Tom Walpole (Rochester)

Tax return identity theft

WROC Rochester First

CPA Tom Walpole discussed the growing problem of tax return identity theft Monday on News 8 at Sunrise. Walpole said millions of people have had their data compromised over the past few years, even the IRS.  Tax return identity theft has become an expensive problem.  Last year, the IRS paid out $5.8 billion in fraudulent refunds.  The good news, it caught $24.2 billion of fraudulent claims before they were paid out. Here's how the theft works each year.  Identity thieves get taxpayers information and then file returns that result in refunds.  Those refunds are directly deposited into bank accounts and the thieves withdraw the money and vanish.  When the real taxpayers file their return, they're told one has already been filed in their name.

Jeffrey F. Gibralter (Suffolk)

People News – Dec. 11, 2015

Accounting Today

Jeffrey F. Gibralter, a partner at Klein Liebman & Gresen LLC, has been appointed vice chair of the New York State Society of CPAs Business Valuation Committee, as well as treasurer of the Estate Planning Council of Suffolk County.

Barry Melancon (Manhattan/Bronx)

Melancon: Now Is the Time to Change

Accounting Today

The accounting profession needs to take advantage of current conditions to take critically important steps to ensure its future, according to American Institute of CPAs president and CEO Barry Melancon. “We have an opportunity due to our relative strength to do things that will be critical in the next 10 years,” Melancon said in his opening keynote address at the Digital CPA Conference, held here this week. Citing an old adage, he noted, “The best time to plant a tree is 20 years ago. The second best time is today.” “We must be committed to helping the profession evolve into something else to be successful,” he said, but added, “We don’t have to throw away everything that’s made the profession successful in the past – in fact, we shouldn’t – but we do need to change.”

David Young (Rochester)

Holiday financial tips

WROC Rochester First

CPA Dave Young offered up some financial tips for the holidays Monday on News 8 at Sunrise. Young advised giving yourself a financial checkup by answering questions about your budget, savings, home expenses and retirement.  Then he offered the following advice: Make a Christmas budget before you start spending.  He recommended reviewing your receipts and bills from last year as a barometer for spending and decide how much you can spend this year.  Young said make a complete gift list and set a firm "no more than" purchase price for each person.  Factor in extra costs such as shipping and gas used.

Jim Marasco (Rochester)

Understanding Credit

WROC Rochester First

CPA Jim Marasco discussed the concept of credit and how it impacts us Monday on News 8 at Sunrise. Marasco said a credit report is an accumulation of information about how you pay your bills and it starts sooner than many people think.  All credit reports as used to generate credit scores and contain general information such as your name, address, Social Security number, date of birth and employment information.  They also list what types of credit you use, the length of time your accounts have been open, and whether you pay your bills on time. Credit reports also contain credit inquiries - a list of everyone who accessed your credit report within the last two years - as well as public records which could include bankruptcies, foreclosures, suits, wage attachments, liens and judgments.

David Young (Rochester)

Small Business Tax Tips

WROC Rochester First

CPA Dave Young discussed some tax tips for small business owners Monday on News 8 at Sunrise. Here's a look at Young's suggestions: 1. Get the most out of your auto/gas deduction - The government lets you deduct business-related car expenses, which you can calculate using two different methods.  Try both to determine which gives you a larger deduction. Standard method: in 2015 it's 57.5 cents per business mile, plus tolls and parking.

Sheila Brandenberg (Manhattan/Bronx)

IRS Expands Assistance To Identity Theft Victims, Makes Copies Of Fraudulent Returns Available

Wolters Kluwer

The IRS has announced that victims of identity theft and refund fraud may obtain copies of bogus returns filed under their names. Victims or their authorized representatives may request copies of fraudulent Forms 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ. Take Away. Taxpayers need to be very proactive against identity theft, Sheila Brandenberg, Sheila Brandenberg, CPA, New York, told Wolters Kluwer. Among the steps individuals can take are regular checks of their credit reports, update the antivirus programs on their home computers, and make passwords more complex. Brandenberg, who serves on the Family Office Committee and the Personal Finance Committee of the New York State Society of CPAs, noted that some higher income individuals have had their personal computers hijacked by cybercriminals and held for ransom payments.