U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012 may have a U.S. tax liability and a filing requirement in 2013. Instead of the normal April 15th filing deadline, Monday, June 17, 2013, is the filing date for U.S. citizens and resident aliens living overseas, or serving in the military outside the U.S. on the regular due date of their tax return. Nonresident aliens who received income from U.S. sources in 2012 also must determine whether they have a U.S. tax obligation.

 

Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. Taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during 2012 must file Treasury Department Form TD F 90-22.1. This is due to the Treasury Department by June 30, 2013. Failure to file this form timely subjects the taxpayer to large penalties.

 

If you believe you have any filing requirements that have not been fulfilled please contact our office as soon as possible. 

 

With the start of this year's hurricane season, the Internal Revenue Service encourages individuals and businesses to safeguard themselves against natural disasters by taking a few simple steps.

1. Create a Backup Set of Records Electronically Keep a set of backup records in a safe place. The backup should be stored away from the original set. Records such as bank statements, tax returns, insurance policies are often stored electronically, but scanning and saving to a backup storage device is recommended.
2. Document Valuables
   Taxpayers can prepare for disaster by taking pictures or videotaping the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584, which can help taxpayers compile a room-by-room list of belongings. A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. The IRS recommends that the photos should be stored with a friend or family member who lives outside the area.
3. Update Emergency Plans  Emergency plans should be reviewed annually. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.
4. Check on Fiduciary Bonds  Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.

For more information please visit the IRS website.

Home Office Deduction - New Simplified Method

Beginning in tax year 2013 (returns filed in 2014), taxpayers may use a simplified method to claim a tax deduction for business use of their home. 

 

Note: This simplified option does not change the criteria for who may claim a home office deduction. It merely simplifies the calculation and recordkeeping requirements of the allowable deduction.

 

Highlights of the simplified option:

• Standard deduction of $5 per square foot of home used for business (maximum 300 square feet).
• Allowable home-related itemized deductions can be claimed in full on Schedule A. (For example: mortgage interest, real estate taxes).
• No home depreciation deduction can be claimed or later recapture of depreciation for the years the simplified option is used.
• No carryover of un-allowed expenses to subsequent year.

 

A taxpayer may choose to use either the simplified method or the regular method to claim a home office for any taxable year.  The choice is made on a timely filed, original federal income tax return for the taxable year.  Once the choice is made for a year, it cannot be changed in that year. Continue reading.

 

 

New legislation requires all homeowners receiving a Basic STAR exemption to register with the New York State Tax Department in order to receive STAR exemptions in 2014 and subsequent years. This is part of a new initiative to protect New Yorkers against the costs of inappropriate or fraudulent STAR exemptions.

 

All Basic STAR recipients will receive information on when and how to register. Seniors receiving Enhanced STAR are not affected by the new registration requirement.

 

Seniors must, however, continue to apply annually, or participate in the Income Verification Program.  

Homeowners will not have to register in order to receive their 2013 STAR exemptions. 

 

The penalties for providing misinformation have increased and will be enforced by both local and state governments. 

   

If you have questions about the new registration program, call (518) 457-2036.

 

 

Woody Goldstein, CPA - Senior Manager at MayerMeinberg, was a guest speaker for the Community Associations Institute - Long Island Chapter on May 16. Woody's presentation focused on budgeting, highlighted the importance of keeping complete and accurate board meeting minutes, reviewed the classification status of workers, and reviewed the importance of streamlining the length of the board meeting. Please click here to view the presentation.

MayerMeinberg had a booth at Hauppauge Industrial Association's business trade show and conference. The trade show was held on May 23 at Suffolk County Community College Sports & Exhibition Complex, Brentwood Campus. Thank you to everyone who visited our booth!