Wednesday, December 4, 2019

National Tax Security Awareness Week.

NYSDTF shares security tips during National Tax Security Awareness Week. 

Press Release 12/2/19

The New York State Department of Taxation and Finance today shared a variety of tips and advice to help taxpayers protect themselves and their personal information online. The effort to safeguard sensitive data coincides with National Tax Security Awareness Week, which runs through December 6.

“Taxpayers and tax preparers report incidents of fraud and identity theft throughout the year,” said Commissioner Michael Schmidt. "With a few simple steps, you can better protect your personal information to avoid becoming a victim of fraud and identity theft.”

The tax department created the infographic below to use as a resource to prevent fraud, scams, and identity theft. Enjoy

Sunday, December 1, 2019

Planning on Making Charitable Contributions this Holiday Season?

Will Your Donation Be Tax Deductible? 

Many taxpayers think that donating to any tax exempt organization is tax deductible. However, only contributions to specific tax exempt organization are deductible. §170 of the Internal Revenue Code does allow a tax deduction for charitable contributions but what are "Charitable Contributions"? 

§170(c) defines "Charitable Contribution" as a contribution or gift to or for the use of (I will stop us here as the section gets complicated). It would be difficult for an individual reading the tax code to determine whether a donation to a not-for-profit organization or tax exempt organization is deductible without the help of a tax professional. Thankfully, the IRS rolled out Tax Exempt Organization Search (TEOS) an online tool allowing users to search information about exempt organization. Taxpayers may use TEOS to determine if a donation to a specific charity qualifies as a tax-deductible charitable contribution.  

How Much of Your Donation is Tax-Deductible?

Assuming you make a donation to a qualified organization, how much of this donation is deductible on your income tax return?  First, it is important to understand that receiving a tax benefit for claiming a charitable contribution is only available for those taxpayers who itemize their tax return. Said another way taxpayers electing the standard deduction will not receive a tax benefit.

Did You Receive a Benefit or Something of Value? 

If you received a benefit or something of value in exchange for your donation than the amount of donation representing the fmv of goods or services received is not deductible.  Said another way, you may only deduct the amount of your donation that exceeds the value of any benefit received.

To illustrate: If you purchased two charity event tickets for $1,000 ($500 each) only a portion of the $1,000 will be tax deducible. If the fmv of goods or services being provided at the event is $150 per person/ticket than $350 a ticket is tax-deductible. In practice the ticket might state how much of the purchase price is tax-deductible. Alternatively the organization should mail letters to donors acknowledging the contribution and the value of goods or services provided.

I want to wish everyone a happy holiday and remember that making donations this time of year is not about the tax deduction(s) but about giving back and paying it forward.  HAPPY HOLIDAYS! 

Christmas Presents

Thursday, November 28, 2019

Sales Tax Guidance for Businesses with No Physical Presence in NY

I received an email from New York State Department of Taxation and Finance. The department has issued new guidance on changes affecting sales tax registration requirements for businesses having no physical presence in New York.

TSB-M-19(4)S requires businesses with no physical presence in New York to register as a vendor and collect and timely remit sales tax if in the preceding four quarters:
  • Business made more than $500,000 in sales of tangible personal property delivered to New York. AND --->
  • Business conducted more than 100 sales of tangible personal property delivered to New York.  
New York Sales Tax does not follow a calendar year the quarters are:  
  • March 1 through May 31,
  • June 1 through August 31,
  • September 1 through November 30, and
  • December 1 through February 28/29.
If you are an out of state business required to register see How to Register for New York State Sales Tax. If you need further assistance contact me.

New York State Department of Taxation and Finance

Saturday, October 26, 2019

Filing Past Due Tax Returns

News: Alizio Law, PLLC announces the release of "Guide to Filing Past Due Income Tax Returns" on Twitter. 

Thursday, October 17, 2019

MapQuest Directions to Alizio Law PLLC

Alizio Law, PLLC 
IRS & NY Tax Attorneys 
1551 Franklin Avenue #205
Mineola, NY 11501