D'Arcangelo Articles

D'Arcangelo Articles

Created: 29 January 2014
Westchester Accounting Firm
Vincent P. Pancaldo, CPA

In a bold attempt to prevent New York State funds from being expended for what has been determined to be excessive executive compensation and administrative costs, Governor Cuomo issued Executive Order No. 38 effective July 1, 2013.  While the nonprofit industry is receiving a great deal of attention and appears to be focused on these limitations, we recommend that affected for-profit entities not use a “wait and see” approach. If you are a nonprofit or a for-profit “Covered Provider”, then the limitations to executive compensation and administrative costs become effective with the period beginning on or after July 1, 2013. Thus, for calendar year Covered Providers, the initial year of compliance is January 1, 2014. Importantly, there is pending litigation brought by several groups seeking to undo Executive Order No. 38; however the outcome is clearly uncertain.

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Created: 01 October 2013

Click here to read a summary from the Attorney General's Office of the Nonprofit Revitalization Act 2013 that was passed in June of this year. 

Created: 10 July 2013

A New York appellate court has reversed a lower court's ruling that the metropolitan commuter transportation mobility tax (MCTMT) was unconstitutionally passed by the Legislature without a home rule message. The lower court found that the tax was a special law that did not serve a substantial state interest. However, the appellate court concluded that the law, which provides a funding source for the preservation, operation, and improvement of essential transit and transportation services in the Metropolitan Commuter Transportation District, does serve a substantial state concern. Therefor, the law was not unconstitutionally passed without a home rule message.

Mangano v. Silver, Appellate Division of the Supreme Court of New York, Second Department, Nos. 2012-09463 and 2012-09991, June 26, 2013

Created: 09 July 2013

The Affordable Care Act imposes a little-known new fee on certain employers and health insurance companies. The first payments are due on or before July 31, 2013.

The Patient-Centered Outcomes Research Institute (PCORI) fee may take some employers by surprise. While many organizations are focused on the healthcare law’s “employer mandate” which was just delayed until 2015, they may have overlooked the PCORI fee.

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Created: 09 July 2013

The bombshell July 2 announcement came in the form of a blog post on the U.S. Treasury Department’s website, accompanied by a statement issued from the White House. The employer “shared responsibility” provision is being delayed one year, until 2015. The move was described, essentially, as a consequence of the IRS’ failure to provide employers and health plans with guidance for their reporting obligations under Section 6055 and 6065 of the Affordable Care Act (ACA).

Those sections cover the detailed information the IRS wants about the health plans offered to employees. Without guidance concerning what to report, the IRS would not have a way to measure whether or not employers are complying with their obligations under ACA.

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Created: 18 March 2013
Estate Planning
Sheldon B. Kruth, CPA

It is hard to imagine an individual or family doing any income or estate planning without considering the use of trusts. It is a misconception that trusts are only tools for the mega wealthy. In fact, trusts are something that can be utilized by many people to accomplish some very basic and extremely important objectives.

When one is deciding on how to provide for the ongoing health, welfare, and security of one’s family, a trust should be considered. A trust is a separate entity that may be used to achieve the transfer of wealth. It allows one to designate who ultimately receives his or her property, yet still allows for control of assets as well as the timing and amounts of distributions.

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Created: 25 February 2013

The clock is ticking down to the tax filing deadline. The good news: there may still be an opportunity to save on your tax bill from last year. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2013 filing date and still benefit from the resulting tax savings on your 2012 return.

Small business owners can set up and contribute to a Simplified Employee Pension (SEP) plan up until the due date for their returns, including extensions.

You also have until Monday, April 15, to make a contribution to a Roth IRA.

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Created: 20 February 2013

Like it or not, retirees receiving Social Security and other beneficiaries of federal benefit plans are required to begin receiving payments electronically on March 1, 2013, if they aren’t already doing so. Under the government’s “Go Direct” program, you can choose between having a direct deposit made to a bank or credit union account and transferring the amount to a Direct Express® Debit MasterCard®card. It’s the law.

Those who haven’t chosen an electronic payment option for Social Security and other benefit checks by March 1, 2013, will be out of compliance with the law. In that case, the money will be put on the Direct Express® card. If you’re already receiving benefit payments electronically, you don’t have to do anything. You’ll continue to receive your payment as usual.

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Created: 20 February 2013

1.      Social Security benefits are paid to about 57 million people. Most (40 million) are retirees and their families. The rest are workers who become disabled and families in which a parent or spouse dies.

2.      About 161 million people work and pay Social Security taxes today.

3.      Social Security replaces about 40 percent of an average wage earner’s income after retiring, and most financial advisers say retirees will need 70 percent or more of pre-retirement earnings to live comfortably. This money must come from retirement plans, pensions, and other savings.

4.      Money paid in taxes is not held in personal accounts for individuals to use when they receive benefits. Your taxes are being used now to pay people who are getting benefits today.

5.      You pay Social Security taxes on your earnings up to a certain amount. The amount for 2013 is $113,700.

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Created: 15 February 2013

As the 2013 tax filing season opened, the IRS announced a national crackdown on identity theft schemes aimed at stealing taxpayers’ refunds.

The tax agency announced there were 734 enforcement actions in January of this year, including indictments, search warrants, complaints, and arrests. This follows 2,400 enforcement actions against identity thieves in fiscal 2012.

The crime has trapped scores of innocent taxpayers. Here is a description of how tax identity theft works, along with eight steps you can take to help protect yourself from the devastating results.

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