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Jeffrey Freedman, senior partner, Jeffrey Freedman Attorneys at Law, helped organize the lecture and introduced the two speakers William J. Comiskey, Esq., Deputy Commissioner for Enforcement, NYS Department of Taxation and Finance; and Michael T. Kelly, Esq., a former prosecutor who is now in private practice and has defended clients in several cases with the NYS Tax Department. Freedman also moderated the question and answer period. Cominskey spoke about widespread underreporting of sales tax by business. He said the state has been investigating sales tax reporting by sending agents undercover rather than solely by auditing businesses. They found that large businesses, as well as “mom and pop” shops, routinely under report sales tax which results in higher taxes for honest tax paying citizens as legislators respond by raising tax rates. Cominskey and Kelly said that 90 percent of vendors do not keep the accurate records required by auditors. Retail businesses are required to keep records of every sale; amounts paid, charged, and the amount of tax payable for the sale. Kelly cautioned that saving only receipts and bank deposits can result in the state estimating sales tax due and coming up with an inaccurate figure because the method used doesn’t take into account sales or specials. Busness people must remember they are fiduciaries of sales tax revenues, Comiskey added. They are responsible to collect the funds, but the funds belong to the state. |
State Making Efforts to Enforce Sales Tax Compliance
July 20th, 2010
Affordable Care Act Tax Provisions
July 19th, 2010|
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The Affordable Care Act was enacted on March 23, 2010. It contains some tax provisions that take effect this year and more that will be implemented during the next several years. The following is a list of provisions now in effect; more provisions are expected. Health Coverage for Older Children Health coverage for an employee’s children under 27 years of age is now generally tax-free to the employee. This expanded health care tax benefit applies to various workplace and retiree health plans. These changes immediately allow employers with cafeteria plans (plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits) to permit employees to make pre-tax contributions to pay for this expanded benefit. This also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return. Small Business Health Care Tax Credit This new credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those with low- and moderate-income workers. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees. Contact us for more information on the small business health care tax credit. Medicare Part D Coverage Gap “donut hole” Rebate The Affordable Care Act provides a one-time $250 rebate in 2010 to assist Medicare Part D recipients who have reached their Medicare drug plan’s coverage gap. This payment is not taxable, and it is not made by the IRS. Call us for more information. Therapeutic Discovery Project Program This program is designed to provide tax credits and grants to small firms that show significant potential to produce new and cost-saving therapies, support jobs, and increase U.S. competitiveness. IRS guidance describes the process by which firms can apply to have their research projects certified as eligible for the credit or grant. Companies could submit applications for certification beginning on June 21, 2010, and they have until July 21, 2010 to apply (postmark date). Give us a call if you have questions about eligibility or how to apply. |
Tax Credits for Home Improvements
July 15th, 2010|
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Summer is a great time to tackle those home improvements on your list. And under the American Recovery and Reinvestment Act (ARRA) of 2009, the energy tax credit is increased. The new law raises the credit rate to 30% of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010. The credit applies to energy-related improvements, such as adding insulation, energy-efficient exterior windows, and energy-efficient heating and air-conditioning systems.
Further, the Residential Energy Efficient Property Credit is a nonrefundable energy tax credit that helps individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps, and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30% of the cost of qualified property. We’re happy to help you sort out the tax credits available for your home improvements this summer. Just give us a call or send us an email. |
Don’t Panic! Eight Things to Know If You Receive an IRS Notice
July 14th, 2010|
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The Internal Revenue Service sends millions of letters and notices to taxpayers every year. Here are eight things taxpayers should know about IRS notices – just in case one shows up in your mailbox.
If you get an IRS notice, don’t panic! And, as always, if you’d like some guidance, just give us a call. We’ll help you with next steps. |
Hourly Employees? QuickBooks Can Track Their Time
July 14th, 2010|
Chris Blach, QuickBooks ProAdvisor |
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QuickBooks offers capable tools for tracking the items you sell, but it’s also quite a competent time-tracker. If you pay employees based on the hours they work, QuickBooks can ease your bookkeeping burden. Tracked time can flow to both invoices and payroll, helping you pay employees and collect on services provided to customers. Before you start tracking time, you’ll need to turn on the related tools. Click Edit | Preferences, and then Time & Expenses. Click on the tab titled Company Preferences. You’ll see the window shown in Figure 1. Read the rest of this entry » |
Safeguard Your Tax Records from Disaster
July 13th, 2010|
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| Individuals and busnesses can safeguard their tax records from disaster by taking a few simple steps.
Create a Backup Set of Records Electronically. Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.Keeping a backup set of records – including, for example, bank statements, tax returns, insurance policies, etc. – is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned, which converts them to a digital format. Once documents are in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them onto a CD or DVD. Read the rest of this entry » |
Financial Planning Tips for July 2010
July 6th, 2010|
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| Estate Plan Checkup Give some thought to your estate plan. How do you want your assets to be distributed at your death? Federal estate tax may be a factor. Please call us for guidance on how to minimize estate taxes and probate costs, so that the maximum amount goes to your desired beneficiaries. Examine Property Tax Bills Budget vs. Actuals Investment Review |
Deducting Your Home Office
July 6th, 2010|
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If you use a portion of your home for business purposes, you may be able to take a home office deduction whether you are self-employed or an employee. Expenses that you may be able to deduct include the business portion of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting, and repairs. You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively |
Getting Married? Filing Status Considerations
July 6th, 2010|
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| Summer is wedding season. If you are getting married this summer, remember to give some attention to your 2010 tax filing status.
You have two filing status options: married filing jointly, or married filing separately. Read the rest of this entry » |
Coverdell Education Savings Accounts
July 6th, 2010|
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A Coverdell Education Savings Account is an account created as an incentive to help parents and students save for education expenses. The total contributions for the beneficiary of this account cannot be more than $2,000 in any year, no matter how many accounts have been established. A beneficiary is someone who is under age 18 or is a special needs beneficiary. Read the rest of this entry » |