Committee Provides Updates on HUD and NYC Tax Commission Initiatives

By James L. Craig, Jr., CPA

At the November meeting of the Real Estate Committee, chaired by Elliot Lesser (Westchester), committee member Abraham Haspel reported on the status of two important projects that impact many New York CPAs: the U.S. Department of Housing's (HUD) electronic filing initiative and the New York City Tax Commission revision to form TC309.

HUD's New Reporting Package

As reported in the October issue of The Trusted Professional, 1998 calendar year HUD projects must adopt a new reporting package and chart of accounts to be filed through the Internet. HUD will provide a template, which will be used to enter detailed account information. Thanks to the efforts of the AICPA and NYSSCPA, HUD agreed to April 30, 1999, as a delayed filing date for 1998 projects. According to Haspel, there are rumors that HUD may further extend the deadline to June 30, 1999, to give project administrators more time to implement the new procedures.

Haspel reported that he is participating in a pilot program to use the new system and will keep the committee, and in turn Society members at large, informed about the progress of the new reporting requirements. HUD's reports Guidelines on Multi-financial Reporting Revisions, Addendum to the Detailed System Requirements, and Addendum to the Data Standardization Results provide details on the chart of accounts (with a comparison to the previous chart) and report combinations. Individuals can access these reports and other information on the HUD Real Estate Assessment Center's website at www.hud.gov/reac/reafin.html.

Lesser feels it is important that practitioners contact their HUD clients to begin to work out implementation details for the new procedures, including planning additional time to meet the new requirements. HUD will accept as a project expense the reasonable costs of converting to the new system, including the electronic submission.

New York City Tax Commission Form Revision

Haspel also noted that the New York City Tax Commission has agreed to revise form TC309, the accountant's certification attached to the Schedule of Income and Expenses for Rent Producing Properties.