Sternbach & Rose, CPAs

12/01/2022

Another reason to use a tax professional to prepare your taxes. CPAs utilize procedures to keep your personal information protected and never share your information with anyone.

Taxpayers’ financial information was being transmitted through a widely used code called the Meta Pixel.

08/08/2022

As a small business owner, it's even more important to make sure you hire an experienced tax preparer. https://nypost.com/2022/08/03/why-irs-80b-expansion-is-a-nightmare-for-small-business/?fbclid=IwAR1W2ocZu-LfSk0zsM1eD46FVBbn8ODVm1fLw5CEx8VPlFiwrpuBG4g6YdU

Small business owners may soon be in a lengthy and expensive battle with the IRS, tax experts warn.

04/06/2020

COVID-19 ECONOMIC LIFELINE FOR SMALL BUSINESS
Here are the basic points of the new economic stimulus loans that small businesses can apply for through the CARES Act legislation recently enacted:
• SBA Economic Injury Disaster Loan (EIDL) – This loan is applied for directly through the SBA at their special webpage for COVID-19 injured businesses. www.covid19relief.sba.gov is the webpage for the initial registration of your business and to provide basic information about your company. Any corporation, partnership, or sole proprietor can apply as long as they can show economic injury due to the pandemic. This loan includes a $10,000 advance which does not have to be repaid as long as you can provide documentation and certify that you used the money for working capital for your business. Once you submit the basic registration information, you will be notified by the SBA as to the additional information and documentation to provide. It is important to register quickly as there is a limited amount of funds available and once that runs out, there will be no more available unless another stimulus package is approved by Congress.

• Paycheck Protection Plan Loan (PPP) – This loan is obtained through the bank where you have your business bank accounts. Most large banks are participating in this plan. The main function of this loan is to encourage employers to retain or re-hire their current level of employees. The amount of the loan is calculated based on 2.5 times the average monthly payroll , which includes all payroll costs, taxes, health insurance, other benefits. There are limits and other details related to this calculation. Your payroll processor will be able to provide you with a special report for this calculation. You should also consult your accountant or CPA. These funds are forgiven as long as you use the funds within eight weeks of obtaining the loan for payroll, rent, mortgage interest, or utilities.

• You can apply for both the EIDL loan and the PPP loan as long as you use the funds for different business expenses. For example, the PPP loan must be used for payroll related costs, utilities, rent, and/or mortgage interest. The EIDL loan can be used for costs of goods sold, inventory, advertising, supplies, etc. Keep documentation for all business expenses to provide to the lender.

The terms and guidelines for both of these loans have changed since they were announced. They may change again, and the SBA may require more information over time. If you have any questions, or need a qualified professional to guide you through the process, contact Sternbach & Rose, CPAs, we’re here to help.

04/06/2020

COVID-19 ECONOMIC LIFELINE
Here are the basic points of the new economic stimulus money that individuals will soon be receiving from the government:
• Everyone over 21 years old and making up to $75,000 will get $1,200 from the government. If you make more than $75,000, the amount starts to phase out until $99,000. If you earn over $99,000, you won’t get anything. The amounts are determined based on your adjusted gross income in your 2018 or 2019 individual tax returns, whichever is the latest filed. If you are on social security, and don’t have to file a tax return, the government will just directly deposit your money into the bank account where your social security money is deposited. This is automatic.

• If you file your tax returns jointly, the income limits double as do the checks. If you have dependents under 17 you will receive an additional $500 per dependent.

• If you qualify based on your income in 2018 and not in 2019, you can wait to file the 2019 return because it isn’t due until July 15th. If you qualify in 2019 and not 2018, and haven’t filed 2019 yet, file it asap!

• If you haven’t filed a 2018 or 2019 tax return, you can go to the irs.gov website and file a simple return, if you qualify for that. It’s basically if you have a W-2 and nothing else. Otherwise, you should file the 2019 return asap.

• The IRS obtains your direct deposit information from the tax returns. If you didn’t provide that information on your most recent tax return, the IRS is currently working on a portal on the IRS.gov website to upload your banking information. As of today, April 4, 2020, that portal is not yet set up. You will have to keep checking on that website.
Bottom line is, most people who file income tax returns don’t have to do anything to receive the stimulus money. If you haven’t filed a tax return in a while, you should at least file the 2019 return asap and include your direct deposit information. If you are not required to file, keep checking the irs.gov website to upload your banking information. If the IRS doesn’t have that information, you will have to wait to receive the check in the mail, which could take months.
If you have any questions, or need a tax return filed, contact Sternbach & Rose, CPAs, we’re here to help.

03/11/2020

New post (NYTimes.com: Your 8 Most Vexing Tax Questions, Answered) has been published on Sternbach & Rose, Certified Public Accountants

Changing rules have led to taxpayer confusion. We asked accountants and other specialists to help sort it all out.https://www.nytimes.com/2020/03/05/your-money/tax-return-questions.html

02/21/2020

New post (NYTimes.com: How to Find the Best C.P.A. or Tax Accountant Near You) has been published on Sternbach & Rose, Certified Public Accountants

01/06/2020

https://www.cnn.com/2020/01/04/us/dont-abbreviate-2020-date-fraud-trnd/index.html

Shorthanding the year 2020 on official documents and forms creates a unique opportunity for scammers, consumer advocates warn.

01/05/2020

New post (New Rules for Retirement Plans Starting in 2020) has been published on Sternbach & Rose, Certified Public Accountants

01/03/2020

NEW RULES FOR RETIREMENT PLANS STARTING IN 2020

We are starting the new year with a new law congress recently passed that mainly affects retirement plans and distributions from retirement plans. The law called the SECURE Act begins after December 31, 2019. The major parts of the SECURE Act are outlined below.
The RMD age is changing
The new law will increase the age retirees must take distributions from their retirement accounts from 70-and-a-half to 72. Keep in mind, this new RMD rule will only apply to individuals who turn 70-and-a-half after Dec. 31, 2019. For example, if a retiree turned 70-and-a-half in 2019, they would still have to take distributions beginning in 2019 and the new law would not apply.

Contributions to IRAs beyond age 70-and-a-half
Current rules do not allow for contributions to IRA accounts after age 70-and-a-half.
Under the new law, individuals with earned income will be able to continue to contribute to their IRA after age 70-and-a-half. This change may help workers that have chosen to delay retirement in order to continue to build their retirement nest egg.

Retirement account withdrawals for birth or adoption expenses
New rules will allow parents to make penalty-free withdrawals of up to $5,000 from their retirement account for expenses associated with birth or adoption.
The distributions can be made up to one year from the birth or adoption of a child and the maximum amount of $5,000 is per parent, so you will be all owed a $5,000 distribution from each of the parent’s retirement accounts, totaling $10,000.
While income tax will still have to be paid on pre-tax contributions that are withdrawn, no penalties will apply to the withdrawal, potentially saving parents 10%.

Elimination of Stretch IRAs
Under current rules, individuals that inherit an IRA can choose to distribute these assets slowly over their lifetime.
This strategy is called the “Stretch IRA” because beneficiaries keep the bulk of their inherited IRAs growing tax deferred while they stretch distributions over their lifetime.
The SECURE Act will now require that inherited IRAs be distributed within 10 years.
There are exceptions and details for this rule that should be discussed with a tax and financial advisor as this can affect estate plans that are already in place.

If you have questions regarding this new SECURE Act or any other tax related questions, please consult with a tax advisor. If you need one, contact us, Sternbach & Rose, CPAs.

11/15/2019

How To Hire A Tax Pro In Four Easy Steps
By Ellen Rose and Felecia Sternbach, Sternbach & Rose, CPAs
At this time of year, you are thinking about the dreaded chore of doing your taxes. Maybe your return has gotten too complicated to handle on your own, or maybe you just don't have the time to fill out all those forms. So now you've decided you need to hire a professional.
Now, more than ever, with the new tax laws that went into effect in 2018, you need professional help with your return. Your federal withholdings do not take into consideration your loss of state tax deductions and you may be under withholding for 2019. A tax professional can determine this and help with planning throughout the year. Here's how to find the right person for the job.
If your tax situation is relatively simple, you probably think you can get by with a commercial franchise preparer. Think again! These preparers may be sufficient if you do not itemize deductions or have no other income except your paycheck. Anything more complicated than that may end up costing you more at these franchise preparers than a Certified Public Accountant (CPA). Why? Because these preparers are given a quick course in tax preparation and are much less knowledgeable of the tax code, they may miss deductions that could end up costing you more in taxes. Also, their billing structure is complicated and based on the number of deductions you take and the types of income you have. A CPA generally charges an hourly rate or a flat fee which may be cheaper than the franchise.
A CPA is available to you for advice and help throughout the year. If you have financial decisions to make during the year, this advice could be invaluable. So, most people would benefit greatly from the services of a Certified Public Accountant.
If you're thinking about enlisting the help of a professional tax preparer for the first time or are searching for someone new because you're not satisfied with the service you're getting from your current preparer, follow these four steps.
Step 1: Get a referral. Ask your friends, family and colleagues whether they can recommend a tax preparer. If you are new to the area, check with the New York State CPA society, or the state Department of Education for lists of CPAs in your area.
Step 2: Interview candidates. If you're trying to hire a new tax preparer during tax season, you might have a hard time finding someone who can sit down with you for a long interview. That’s why it is good to start before the end of the year. However, most tax preparers should have time for a phone interview. If they aren't willing to give you a few minutes on the phone -- or want to charge you for the initial interview -- then look elsewhere.
Here are key questions to ask:
1. How long have you been in practice? You want someone who has been preparing returns long enough (at least several years) to anticipate problems or IRS challenges.
2. What are your credentials? Anyone can hang out a sign claiming to be a tax preparer
because there are no licensing requirements. Check the NYS Department of Education
and other professional associations (see step 1) to assure that he or she is licensed and has
had no disciplinary action taken against him or her.
3. Do you have any specialties? This is important to ask if you have a specific need. For
example, if you have a small business or if you have rental property, look for someone
who has experience handling these tax situations.
4. How much will you charge? Find out if he or she charges an hourly rate or flat fee and
whether that fee will cover everything or if there will be additional charges for planning
meetings and calls throughout the year. Avoid anyone whose fees are based on a
percentage of your refund.
5. Will you handle my return, or will you hand it off to a less-experienced associate? If
the preparer is part of a firm and will not be preparing your return personally, ask if he or
she will review it after the associate completes it.
6. Will you represent me before the IRS? If you are audited, you want someone who will
defend your return.
Step 3: Watch for red flags. Steer clear of anyone who talks about cheating the IRS. You do not
want a preparer who pushes you to take deductions, says you don't have to report certain income
or promises to get a refund that will be a certain percentage of what you earn.
Step 4: Mention any special circumstances. Let the preparer know about any events, such as a
recent divorce or large lump-sum payment from a retirement plan. He or she should know how
this will affect your tax situation.
If you’ve followed all these steps, picking a preparer is easy. You will have selected a
knowledgeable professional who will be able to handle all of your specific tax needs and be
available if you have questions months, or even years, after your tax return has been filed.
Sternbach & Rose, CPAs, can be found at www.sandrcpa.com or (914)940-4449.

Whether you have one hundred dollars or a million dollars — each of our clients deserves our complete attention. We treat every client as if he or she, is our only client.

12/29/2017

New post (QUICK RECAP OF NEW GOP TAX BILL BEGINNING 2018) has been published on Sternbach & Rose, Certified Public Accountants

The new year brings a new and sweeping one thousand page tax bill. Here are some of the highlights for individual taxpayers:   The deduction for state, local income, sales, and property