|
|
President's
Message
Welcome New
Members
New Member
Referrals
NYSSEA
Specialties List
IRS Begins Tax
Season 2009 with Steps to Help Financially Distressed Taxpayers
Consumer Bill of
Rights Regarding Tax Preparers
Stakeholder
Liason Notice
Special Thanks
CURRENT STATE
AND LOCAL TAX DEVELOPMENTS
|
|
|
Quick Links...
Foreign Exchange Rates and
Other Useful Links
|
|
An electronic
publication of the New York State Society of Enrolled Agents (NYSSEA)
The mission of the New York State Society of Enrolled Agents
is to foster the professionalism and growth of its Members; to be an
advocate of taxpayer rights; to protect the interests of its Members; and
to enhance the role of the Enrolled Agent among government agencies,
other professions and the public at large, with an emphasis at the state
and local levels.
|
|
|
|
|
· President's Message
|
|
Happy New Year!
I do hope you all had a joyous Holiday Season. Time to be with family and
friends and refresh yourselves before the onslaught of the new tax
season.
I am pleased to let you know that Bob Nadel and I are assisting a group
of "core" members of the Brooklyn/Queens Satellite Chapter in
revitalizing that group. We had an organization meeting and in January,
they held their first Chapter meeting. It seems that they are excited
about their group and I know you all join me in wishing them well.
A big THANK YOU to Bob Nadel and all our members for our growing
membership. We have about 620 members, the highest ever, and it's all
because YOU project a spirit of community, good will, and
professionalism. You have shown such a good example and, as a group, we
offer so much to our members, that we are growing in number.
In my last letter I asked everyone to do something to enhance our member
benefits and our visibility. Judy Strauss heard about an opportunity with
IRS and their SBDC, told us about it, and we are on board. At a PLM here
in Nassau County, I, on behalf of NYSSEA, was thanked for our stepping up
and offering to help, and at the end of the meeting, other practitioner
groups came up and asked IRS if they could be part also. Good work!
Our Convention 2009 is in the planning stage. The education committee is
hard at word selecting topics that would benefit and empower our members.
The sites for our future conventions are being explored and, with our
growing attendance, space is a consideration.
I also wanted to thank all those who brought items for our silent auction
at the convention. We raised about $2,000 toward scholarships. A very big
THANK YOU to Jackie Nadel and Pam Kaiser, spouses of our members, who
handled the auction for us so that we could attend classes and not be
concerned about manning the auction room. My deepest thanks to them for
going above and beyond for our organization.
After tax season, I hope to visit some of the Chapters to meet your
members and get a chance to chat with them. When you meet a member who is
not yet involved, please ask them to do a small, little bit of something.
This will take one small responsibility away from someone who is probably
doing a lot, get the member involved without taking on too much, and get
many more people feeling that they do belong.
Thank you all for a wonderful year and I look forward to working with you
all in 2009.
Have a Great Tax Season!
Sincerely,
Victoria A. McGinn, CPA, EA
President NYSSEA
|
|
|
|
|
· Welcome New Members
|
|
Frantz Boisson EA - Brooklyn, Edward F
Bowe EA - East Meadow, Darlene Carey EA - Massapequa, Frank V Caruso EA -
Mineola, Stan E Charles - Brooklyn, David A Christie EA - Farmingdale,
Ginny Anne Cylick - Ronkonkoma, Jane E Davis EA - Depew, Sarah Debarros
EA - Canada, Giovanni Disla EA - New York, Darren M Dowdell EA - Buffalo,
Osmarc Gaspard EA - Brooklyn, Jong Hee Kim EA - Manhasset
William M Mancini EA - Melville, Shawn B
Peer EA - Rochester, Lisa Reynolds EA - Schenectady, Jack Rosenthal -
Miller Place, Leon Rissler - Pennsylvania, Raymond Rottkamp EA -
Woodbury, James V Salerno EA - Brewster, Jeffrey Shad EA - Cold Spring,
Judy Smith - Yorktown Heights, Lynn M Stockwell-Chase EA - Hudson Falls,
Jean-Louis G Tassart EA - New York, Timothy C Wewer EA - Watertown,
Camella Wing EA - Pomona
|
|
|
|
|
· New Member Referrals
|
|
Thank you to the following members who
have referred new members during the past year:
Francine Bauer EA
Barry Bekoff EA
Denise Chiarella EA
Osmarc Gaspard EA
Martin Inerfield EA
Sandra Martin EA
Vicki McGinn CPA, EA
Bob Nadel EA
Jason Rinoldo EA
Don Rosenberg EA
NYSSEA members receive $10 in scrip for each referral.
|
|
|
|
|
· NYSSEA Specialties List
|
|
REMINDER:
The NYSSEA Specialty List is available to members on the website and is a
useful source of EA's who have volunteered to help during the filing
season.
Click
here for the Specialty List
|
|
|
|
|
· IRS Begins Tax Season 2009 with Steps
to Help Financially Distressed Taxpayers
|
|
IR-2009-2, Jan. 6, 2009
WASHINGTON - The Internal Revenue Service today kicked off the 2009
tax-filing season by announcing a number of new steps to help financially
distressed taxpayers maximize their refunds and speed payments while
providing additional help to people struggling to meet their tax
obligations.
IRS Commissioner Doug Shulman encouraged taxpayers to take advantage of
several new tax credits and deductions this filing season and announced a
major enhancement to the Free File program that will allow nearly all
taxpayers to e-file for free and accelerate their refunds.
"With so many people facing financial difficulties, we want
taxpayers to get all the tax credits they're entitled to as quickly as
they can," Shulman said. "In addition, we are creating new
protections to help people trying to meet their tax obligations. The IRS
will do everything it can to help during these tough times."
Help for People Who Owe Taxes
With many people facing additional financial difficulties, the IRS is
taking several additional steps to help people who owe back taxes.
"We need to ensure that we balance our responsibility to enforce the
law with the economic realities facing many American citizens
today," Shulman said. "We want to go the extra mile to help
taxpayers, especially those who've done the right thing in the past and
are facing unusual hardships."
On a wide range of situations, IRS employees have flexibility to work
with struggling taxpayers to assist them with their situation. Depending
on the circumstances, taxpayers in hardship situations may be able to
adjust payments for back taxes, avoid defaulting on payment agreements or
possibly defer collection action.
The IRS reminds taxpayers who are behind on tax payments and need
assistance to contact the phone numbers listed on their IRS
correspondence. There could be additional help available for these
taxpayers facing unusual hardship situations.
Among the areas where the IRS can provide assistance:
Postponement of Collection Actions: IRS employees will have
greater authority to suspend collection actions in certain hardship cases
where taxpayers are unable to pay. This includes instances when the
taxpayer has recently lost a job, is relying solely on Social Security or
welfare income or is facing devastating illness or significant medical
bills. If an individual has recently encountered this type of financial
problem, IRS assistors may be able to suspend collection without
documentation to minimize burden on the taxpayer.
Added Flexibility for Missed Payments: The IRS is allowing more
flexibility for previously compliant individuals in existing Installment
Agreements who have difficulty making payments because of a job loss or
other financial hardship. The IRS may allow a skipped payment or a
reduced monthly payment amount without automatically suspending the
Installment Agreement. Taxpayers in a difficult financial situation
should contact the IRS.
Additional Review for Offers in Compromise on Home Values: An
Offer in Compromise (OIC), an agreement between a taxpayer and the IRS
that settles the taxpayer's tax debt for less than the full amount owed,
may be a viable option for taxpayers experiencing economic difficulties.
However, the equity taxpayers have in real property can be a barrier to
an OIC being accepted. With the uncertainty in the housing market, the
IRS recognizes that the real- estate valuations used to assess ability to
pay may not be accurate. So in instances where the accuracy of local
real-estate valuations is in question or other unusual hardships exist,
the IRS is creating a new second review of the information to determine
if accepting an offer is appropriate.
Prevention of Offer in Compromise Defaults: Taxpayers who are
unable to meet the periodic payment terms of an accepted OIC will be able
to contact the IRS office handling the offer for available options to
help them avoid default.
Expedited Levy Releases: The IRS will speed the delivery of levy
releases by easing requirements on taxpayers who request expedited levy
releases for hardship reasons. Taxpayers seeking expedited releases for
levies to an employer or bank should contact the IRS number shown on the
notice of levy to discuss available options. When calling, taxpayers
requesting a levy release due to hardship should be prepared to provide
the IRS with the fax number of the bank or employer processing the levy.
Georgie Connett, EA
|
|
|
|
|
· Consumer Bill of Rights Regarding Tax
Preparers
|
|
http://www.nystax.gov/cbr/default.htm
________________________________________
As a tax preparer, the Consumer Bill of Rights requires you to provide
customers with:
· An address and phone number to contact you or your office throughout
the year
· Free copies of the current Publication 135, Consumer Bill of Rights Regarding Tax
Preparers, prior to any discussions (you must get a copy and are
responsible for printing and photocopying)
· Certain disclosures about refund anticipation loans (you are also prohibited
from advertising them as refunds)
Certain preparers are exempt from the first two requirements. Different
rules apply to tax preparers operating and preparing tax returns within
New York City.
The law is effective January 1, 2009.
For more information see TSB-M-08(7)I, Consumer Bill of Rights Regarding Tax
Preparers
Evan Golar, EA
|
|
|
|
|
· Stakeholder Liason Notice
|
|
Dear New York State Tax Practitioner,
As the IRS Stakeholder Liaison Area Manager for New York, I want to thank
you for your past support and ask for your continued partnership with me
and your local Stakeholder Liaisons. SL is proud to be in our third year
as the practitioners' gateway to the IRS. We have had a busy year;
holding practitioner events, conducting National Phone Forums, and
establishing Web-based Tax Centers. Our local SLs have received thousands
of phone calls from practitioners with suggestions on how to improve IRS
systems. This partnership strengthens our mutual commitment to ensuring
taxpayer compliance with federal tax responsibilities.
SL is committed to getting you the information you need. While we do not
answer tax law questions or have access to your clients' tax accounts, we
can steer you in the right direction.
How SL can help you navigate the IRS
The best way to stay up-to-date with what is happening at the IRS is to
use our free products and services. Subscribe to e-News for Tax Professionals for weekly news
briefs. Check Tax Hints, A Guide to the Filing Season, at least monthly, and our
new quarterly Key Messages for Tax Professionals. We offer
Practitioner "Tax Centers" that link from your organization's
Web site to ours, making it easy to find frequently used Web pages. Join
our National Phone Forums. Listen in, free
of charge, from the convenience of your office for approximately an hour.
Watch Tax Talk Today online. And be assured that IRS.gov has more than
just forms and publications. You will find the latest news, online tools,
research services, guidance and contact information. Check out our new Tax Practitioner Video and Audio Presentations page.
How you can help your clients and colleagues
Tell us when you see a problem or have a suggestion to improve our
processes. We introduced the Issue Management Resolution System three
years ago and have had more than a thousand IMRS issues submitted. Check
out some of the successes in our Monthly IMRS report on IRS.gov.
Help us find ways to further our partnership. Work with us in reaching
more practitioners through joint events or webinars. Include IRS
information in your newsletters and Web sites. Post a tax center on your
Web site. Volunteer to teach a Small Business Tax Workshop in your
community. Share what you learn with your colleagues.
And stay in touch with your local SL. If you need assistance in New York
State, contact one of the Stakeholder Liaison employees below.
Richard Torres
Phone: 518-427-5460
Fax: 518-427-5421
Email: Richard.Torres@IRS.gov
Susan R. Marks
Phone: 518-427-4118
Fax: 518-427-5421
Email: Susan.R.Marks@IRS.gov
You may also contact me, Kim Young, New
York Area Manager for Stakeholder Liaison, at 212-436-1013 or
Kim.Young@IRS.gov.
Filing season can be a challenging and stressful time. Together, we can
make it easier. Stay in touch with us, use our free tools, products, and
services, and raise your issues and concerns through your local
Stakeholder Liaison.
Sincerely,
Kim Young
Stakeholder Liaison Area Manager, New York Area
Kim.Young@IRS.gov
|
|
|
|
|
· Special Thanks
|
|
Special thanks to the following vendors
for their participation in the fall convention:
REDGEAR Technologies
TaxWorks Software
1265 Sportsplex Dr
Kayville, UT 84037
Jon Wall
jon.wall@taxworks.com
800-230-2322 x4144
CFS Taxsoftware Inc.
80 Eighth Ave #900
New York, NY 10011
Juda Kallus, EA
judakallus@aol.com
800-343-1157
Drake Software
235 East Palmer St
Franklin, NC 28734
Steven Gilliam
steve.gilliam@drakesoftware.com
800-890-9500 x4238
|
|
|
|
|
· CURRENT STATE AND LOCAL TAX
DEVELOPMENTS
|
|
Consumer Bill of Rights Regarding Tax
Preparers
Went into effect January 1, 2009.
TSB-M-08(7)I
When this legislation was introduced in the legislature a few years back
David J. Silverman, EA (Metro Chapter), Chair of NYSSEA's Government
Relations Committee, was able to have the proposed legislation amended to
provide that Enrolled Agents be included in the category of individuals
exempt along with CPAs and attorneys from the basic requirements of the
legislation. There were 6 classes of exempt individuals when the
legislation was introduced. With the addition of Enrolled Agents there
are now 7.
Here are the basic requirements of the legislation which Enrolled Agents
are exempt from:
Requirement to provide contact information.
Tax preparers are required to provide each of their customers with a
receipt containing an address and phone number at which the preparer can
be contacted throughout the year.
Requirement to distribute Publication 135, Consumer Bill of Rights
Regarding Tax Preparers.
The Tax Department is required to produce and make available to tax
preparers an informational flier providing certain information for
consumers about their rights regarding tax preparers. The flier is
Publication 135, Consumer Bill of Rights Regarding Tax Preparer Tax
preparers must give each customer a free copy of Publication 135 before
any discussions with the customer. Preparers must direct each customer to
review the publication and must answer any questions the customer may
have regarding the content of the publication.
Requirements concerning RALs
All tax preparers, including Exempt preparers, are subject to the
following requirements concerning RALs:
Tax preparers are prohibited from advertising RALs as refunds (for
example, advertising a RAL as an instant refund). Additionally, any
advertisement by a tax preparer that mentions RALs must state conspicuously
that a RAL is in fact a loan and that a fee or interest will be charged
by the lending institution. The lending institution must be identified in
the advertisement.
Penalties A civil penalty of not less than $250 but not more than $500
for the first violation and, for each succeeding violation, a civil
penalty of not less than $500 but not more than $750.
New York City
Tax preparers operating within New York City are not subject to the
provisions of this legislation (Article 24- C of the General Business
Law) for tax returns actually prepared within the city. Instead, the
Administrative Code of the City of New York provides rules that apply
specifically to tax preparers operating in New York City. For more
information on New York City's consumer bill of rights regarding tax
preparers, visit the New York City Department of Consumer Affairs Web
site (www.nyc.gov/consumers)
Accounting Legislation
Which passed the Assembly on June 23, 2008 was finally passed by the
Senate on December 15, 2008 and was sent to the governor on December 30,
2008. It was generally believed to be dead this session like it has in
the past 7 legislative sessions. It is the culmination of a 25 year
effort by David J. Silverman, EA (Metro Chapter), Chair of NYSSEA's
Government Relations Committee, to amend the state's accounting law in
order to protect the rights of Enrolled Agents to practice our profession
unhindered. It becomes effective 180 days after enactment. The Assembly
version of the bill which is identical to the Senate version is attached.
The legislation allows non-CPAs to prepare a compilation financial
statement as outlined below. It also allows Enrolled Agents to use that
title as well as the abbreviation EA. Here is the exact language
contained in the legislation (A.11696-A/S.7497-B) regarding these two
issues:
Use of EA
"The title "Enrolled Agent" or the designation
"E.A." may only be used by individuals so designated by the
united states internal revenue service."
Financial Statement
"An individual not licensed as a certified public accountant or
public accountant or otherwise authorized to practice public accountancy,
or an entity not required to register under this Section may prepare a
financial statement so long as it is not accompanied by any statement,
report, or wording indicating such individual is a certified public
accountant or public accountant or that such entity is registered to
practice public accountancy under this article. Such non-licensed
individuals and non- registered entities shall include the following
written language when preparing financial statements:
a. "(I, we) have prepared the accompanying financial statement(s) of
(name of business or organization) as of the (time period) and for the
(period) then ended. This presentation is limited to preparing, in the
form of a financial statement(s), information that is the representation
of (name of business or organization)"; and
B. "(I, we) have not audited or reviewed the accompanying financial
statement(s) and accordingly do not express an opinion or any other form
of assurance on them."
E-file Mandates Issued
The New York Department of Taxation and Finance has issued two e-file
mandates dealing with New York corporate and personal income taxes.
Business Tax Filers
This new mandate requires certain taxpayers to e-file tax documents and
electronically pay the amount due on those tax documents, effective
January 1, 2009. A corporation is required to e-file all general business
and NYS S corporation (Article 9-A) returns and extensions beginning on
January 1, 2009, and electronically pay the balance due on those tax
documents if the corporation meets all three of the following conditions:
· Does not use a tax return preparer to prepare Article 9-A general
business corporation and S corporation tax returns;
· Uses tax preparation software that has been approved by New York State
for e-filing business corporation and S corporation tax returns; and
· Has broadband internet access.
There is a $50 per tax document penalty for failing to electronically pay
the balance due on the mandated tax document. The Department cannot abate
the payment penalty for reasonable cause.
Tax Professionals
The income tax mandate for tax return preparers now includes partnership
returns and partnership extensions in addition to income tax returns and
extensions for tax years beginning on or after January 1, 2008. Preparers
must e-file all individual income tax and partnership returns and
extensions beginning on January 1, 2009, if you were subject to the
mandate in a prior year, or if they:
· Prepared more than 100 combined original individual or partnership
returns for tax year 2007 in calendar year 2008, and
· Use tax software to prepare one or more New York State individual
and/or partnership returns for tax year 2008 in calendar year 2009.
A $50 penalty applies to each return or extension that is not e-filed,
unless the taxpayer opts out of e-filing or the preparer had other
reasonable cause for failure to comply.
This new mandate requires tax return preparers who meet certain
requirements to e-file authorized tax document beginning on or after
January 1, 2009. The mandate also requires electronic payment of the
balance due on any authorized tax document. Preparers must e-file all
general business and NYS S corporation (Article 9-A) returns and
extensions beginning on January 1, 2009, and electronically pay the
balance due if they:
· Prepared more than 100 original Article 9- A documents in calendar year
2008, including tax documents for prior periods; and
· Use tax software to prepare one or more Article 9-A tax documents in
2009. A $50 penalty applies to each document that the preparer fails to
e-file, unless the taxpayer opted out of e-filing or the preparer had
other reasonable cause for failure to comply. Release, New York
Department of Taxation and Finance, June 24, 2008
David J. Silverman, EA
|
|
|
|
|
