Members in the News

David Lifson (Manhattan/Bronx)

IRS is focusing on people making more than $1 million

MSN.com

The sum of $1 million doesn’t go as far as it used to. But increasingly, it is enough to get you special attention from Uncle Sam. The Internal Revenue Service continued to ramp up its focus on high earners in fiscal 2015, according to data released by the agency Monday. The IRS audited nearly 10% of returns with income of more than $1 million, compared with 7.5% the year before, in the fiscal year ended Sept. 30.

Tom Walpole (Rochester)

Filing status

WROC Rochester First

CPA Tom Walpole discussed filing status on your income tax return Monday on News 8 at Sunrise. Walpole said there are five filing statuses - married filing jointly, married filing separate, single, head of household and qualifying widower.  He said each status has its own tax table, so depending upon your status you can be in a different tax bracket. For married couples, Walpole said filing jointly will place both spouses income on the same form, place them in a single tax bracket and share altered deductions.  Sometimes that's advantageous, and sometimes it isn't. When it comes to filing status forms there are three options - the 1040EZ, 1040A and the regular 1040.  Walpole said the 1040EZ is the simplest form and is basically for those with just wages for income.

Tom Walpole (Rochester)

Filing status

WROC Rochester First

CPA Tom Walpole discussed filing status on your income tax return Monday on News 8 at Sunrise. Walpole said there are five filing statuses - married filing jointly, married filing separate, single, head of household and qualifying widower.  He said each status has its own tax table, so depending upon your status you can be in a different tax bracket. For married couples, Walpole said filing jointly will place both spouses income on the same form, place them in a single tax bracket and share altered deductions.

Sidney Kess (Manhattan/Bronx)

Tips for Fearlessly Chasing a Bigger Tax Refund

New York Times

It will count as a required minimum distribution or part of one, and because the money goes directly to the charity, the distribution will not raise adjusted gross income, avoiding a possible increase in tax liability, said Sidney Kess, a certified public accountant and lawyer in NY. Many people do their taxes themselves using tax software. By comparison, you can get a copy of TurboTax for $60-$100, depending on which version you purchase. Tax filers can now track their filing status and status of tax refund, so you can figure out when to expect a federal or state tax refund check - from the convenience of a mobile device.

David Young (Rochester)

Common tax return filing mistakes

WROC Rochester First

CPA Dave Young of Young and Company discussed some of the common mistakes people make when filing their income tax return Monday on News 8 at Sunrise. Young said the biggest error he sees each year is an incorrect filing status.  He said sometimes people get "Head of Household" and "Single" confused.  Your marital status could be single, but if you're single and care for children for greater than six months of the year you qualify as a "Head of Household." Young said other common mistakes made when filing an income tax return include: Failing to report additional income; Failing to claim credits such as a child in college and dependents under 17; Failing to claim deductions such as mortgage interest, real estate taxes and charitable contributions; and Failing to account for subsidies/penalties related to health care coverage. Young advises comparing this year's return to last year's return as a way to catch missed information and avoid common mistakes.

David Young (Rochester)

Common tax return filing mistakes

WROC Rochester First

CPA Dave Young of Young and Company discussed some of the common mistakes people make when filing their income tax return Monday on News 8 at Sunrise. Young said the biggest error he sees each year is an incorrect filing status.  He said sometimes people get "Head of Household" and "Single" confused.  Your marital status could be single, but if you're single and care for children for greater than six months of the year you qualify as a "Head of Household." 

Tom Walpole (Rochester)

Tax basics

WROC Rochester First

CPA Tom Walpole discussed the basics of taxes and why we pay them Monday on News 8 at Sunrise. Walpole said taxes are a special kind of fee or charge the government requires people to pay in order live and work in their state and country.  Sales tax for example are a percentage of the total price when you buy things like mobile phones, sneakers or a new toy.  New York's sales tax rate is currently 4 percent.  Depending upon the local municipality, the total tax rate can be as high as 8.875 percent. Walpole said people also pay taxes to the state and federal government on the money they earn from their jobs.  Companies also pay taxes on profits they make.  In addition, those who own property like buildings and homes pay property taxes.  If you inherit money or win the lottery you will also pay a tax on that sum.

Tom Walpole (Rochester)

Tax basics

WROC Rochester First

CPA Tom Walpole discussed the basics of taxes and why we pay them Monday on News 8 at Sunrise. Walpole said taxes are a special kind of fee or charge the government requires people to pay in order live and work in their state and country.  Sales tax for example are a percentage of the total price when you buy things like mobile phones, sneakers or a new toy.  New York's sales tax rate is currently 4 percent.  Depending upon the local municipality, the total tax rate can be as high as 8.875 percent. 

Barry Picker (Queens/Brooklyn)

5 pros you might need for money help

Bankrate

You get no extra credit for tackling the complexities of your financial life alone. Are you planning for retirement? Considering how to divide your assets after your death? Grasping for a plan to pay down debt? There are professionals who can help with just about any money concern. Their advice may cost you money, but a good expert can steer you away from pitfalls or offer reassurance you've made the right financial moves. Read ahead for the 5 pros it pays to know. We'll break down what they can do for you, what to look for when shopping for advice and where to find a quality expert.

Barry Picker (Queens/Brooklyn)

5 pros you might need for money help

Bankrate

You get no extra credit for tackling the complexities of your financial life alone. Are you planning for retirement? Considering how to divide your assets after your death? Grasping for a plan to pay down debt? There are professionals who can help with just about any money concern. Their advice may cost you money, but a good expert can steer you away from pitfalls or offer reassurance you've made the right financial moves. Read ahead for the 5 pros it pays to know. We'll break down what they can do for you, what to look for when shopping for advice and where to find a quality expert.

Joseph Falbo Jr. (NYSSCPA President and Buffalo Chapter member)

CPAs Urge New York to Amend Estate Tax, Eliminating ‘Cliff’

Bloomberg BNA Daily Tax Report

The New York State Society of Certified Public Accountants urged state lawmakers to amend the state’s estate tax to eliminate a ‘‘cliff’’ that causes portions of certain estates to be taxed at a marginal rate of up to 164 percent. New York increased its basic estate tax exclusion from $1 million to the federal level, under a 2014 law, but the exclusion begins to be effectively phased out for estates valued at 100-105 percent of the basic exclusion amount, leaving a steep cliff in place. ‘‘This tax cliff goes against any rational hope of making New York state a more favorable environment for its residents planning the later stages of their life,’’ Joseph M. Falbo Jr., president of the group, said during a Feb. 2 hearing of the joint fiscal committees of the state Legislature.

Joseph Falbo Jr. (NYSSCPA President and Buffalo Chapter member)

CPAs Urge New York to Amend Estate Tax, Eliminating ‘Cliff’

Bloomberg BNA Daily Tax Report

The New York State Society of Certified Public Accountants urged state lawmakers to amend the state’s estate tax to eliminate a ‘‘cliff’’ that causes portions of certain estates to be taxed at a marginal rate of up to 164 percent. New York increased its basic estate tax exclusion from $1 million to the federal level, under a 2014 law, but the exclusion begins to be effectively phased out for estates valued at 100-105 percent of the basic exclusion amount, leaving a steep cliff in place. ‘‘This tax cliff goes against any rational hope of making New York state a more favorable environment for its residents planning the later stages of their life,’’ Joseph M. Falbo Jr., president of the group, said during a Feb. 2 hearing of the joint fiscal committees of the state Legislature.

Matt Bryant (Rochester)

Tax return deductions

WROC Rochester News 8

CPA Matt Bryant discussed some things that can and can't be deducted from your tax return Monday on News 8 at Sunrise. Bryant said you cannot deduct mileage for commuting to and from your place of business.  He noted, you can deduct business miles in excess of your commute. Bryant discussed not only itemized deductions but also the standard deduction available to help eliminate the work in itemizing deductions including mortgage interest, real estate taxes, medical expenses and charitable contributions.  For most individuals filing single or married filing separately, the standard deduction is $6,300.  If you are married filing jointly, the standard deduction is $12,600.  The head of household standard deduction is $9,250. When itemizing deductions, Bryant said you are manually listing each expense that has been incurred over the year that is tax deductible.

Barry Kleiman (Manhattan /Bronx)

LIVE CHAT: Get ready for tax season!

Yahoo! Finance

Tis the season… for W-2s. It’s that time of year, when your mailbox gets a slow but steady trickle of tax forms from your employer, bank, brokerage firm and other institutions. Most tax statements have a Jan. 31 due date to get to you, but since that’s a Sunday, the deadline rolled to Monday, Feb. 1. If you haven’t gotten a form by now, be patient. Some forms have later due dates. Otherwise, be sure to check your email as many taxpayers get their forms electronically. You can also contact the issuer to see if they have the right address for you. A few other dates to note: Tax season officially opened on Jan. 19 – that’s when the IRS began accepting individual electronic returns. This year the filing deadline to submit 2015 tax returns is Monday, April 18, 2016, not the traditional April 15 date.

Matt Bryant (Rochester)

Tax return deductions

WROC Rochester News 8

CPA Matt Bryant discussed some things that can and can't be deducted from your tax return Monday on News 8 at Sunrise. Bryant said you cannot deduct mileage for commuting to and from your place of business.  He noted, you can deduct business miles in excess of your commute. Bryant discussed not only itemized deductions but also the standard deduction available to help eliminate the work in itemizing deductions including mortgage interest, real estate taxes, medical expenses and charitable contributions.  For most individuals filing single or married filing separately, the standard deduction is $6,300.  If you are married filing jointly, the standard deduction is $12,600.  The head of household standard deduction is $9,250. When itemizing deductions, Bryant said you are manually listing each expense that has been incurred over the year that is tax deductible.

Barry Kleiman (Manhattan /Bronx)

LIVE CHAT: Get ready for tax season!

Yahoo! Finance

Tis the season… for W-2s. It’s that time of year, when your mailbox gets a slow but steady trickle of tax forms from your employer, bank, brokerage firm and other institutions. Most tax statements have a Jan. 31 due date to get to you, but since that’s a Sunday, the deadline rolled to Monday, Feb. 1. If you haven’t gotten a form by now, be patient. Some forms have later due dates. Otherwise, be sure to check your email as many taxpayers get their forms electronically. You can also contact the issuer to see if they have the right address for you. A few other dates to note: Tax season officially opened on Jan. 19 – that’s when the IRS began accepting individual electronic returns. This year the filing deadline to submit 2015 tax returns is Monday, April 18, 2016, not the traditional April 15 date.

Adam Baruch (Manhattan/Bronx)

NYC’s new commuter tax benefit explained

amNewYork

The news erupted in early January when Mayor Bill de Blasio made a federal transit benefit mandatory for many New York City businesses. But coverage didn’t always explain how the program actually works. With the deadline for employers to provide it for their workers set for July 1, it’s time to buckle down and learn how it functions. The benefit was established by the federal government in the early 1990s, and President Barack Obama last year raised its cap from $130 to $255. This means that employees around the country can use up to $255 of their pre-tax earnings to pay for commuting expenses. The amount applies separately to parking and public transportation, and employees may use both.

Fred Slater (Manhattan/Bronx)

Here’s How to Help Your Grandkids Pay for College

The Fiscal Times

As a growing number of Baby Boomers start pondering their financial legacy, helping grandchildren (and their parents) cover the skyrocketing costs of college seems like a no-brainer. Assisting with college costs is a big gift that benefits both younger generations at once, and it’s more meaningful than simply writing a check or buying your grandchild some big-ticket item, like a car. “Paying for education is universally agreed upon as a valuable thing to do,” says Roger Pine, a partner with Briaud Financial Advisors in College Station, Texas. “It’s a great way to give, and everyone understands the values you’re trying to convey.” That’s why nearly three-quarters of grandparents think it’s important to help pay for their grandchildren’s college, and more than half (53 percent) of those surveyed by Fidelity in 2014 said they were currently contributing or planning to do so.

Barry Melancon (Manhattan/Bronx)

AICPA Takes on IRS and Expands Internationally

Accounting Today

American Institute of CPAs president and CEO Barry Melancon said the AICPA is pushing the Internal Revenue Service to improve its services for both taxpayers and CPAs while preparing to become a more international organization. During a wide-ranging speech Tuesday in New York at a meeting of the Accountants Club of America, Melancon gave an update on the AICPA and the future of the profession. “Basically the service levels in the Internal Revenue Service to preparers and taxpayers are at an all-time low,” he said. “To use a South Louisiana French term, it sucks. We do not have a 21st century IRS, and we are not likely to get one in the short term. We’re not going to get one because the Congress absolutely loathes the Internal Revenue Service and the leadership of the Internal Revenue Service.”

David Young (Rochester)

Key tax return documents

WROC Rochester News 8

CPA Dave Young of Young and Company CPAs discussed some of the key documents you need to file your tax return Monday on News 8 at Sunrise. Young said it's important to gather all of the information you'll need for your return, especially if you are using a tax professional.  You'll need identification, income documents, last year's tax return, Social Security cards, proof of health insurance, and expense documents. For additional income not reported on a W-2 or 1099, people should have written documents supporting other self-employment income, rental income, or alimony.  This could be a spreadsheet, bank statements, or other written evidence.