Paris Accounting Corp

Practice limited to business consulting and tax resolution

Phone: 718-281-0200
Email: [email protected]
PO Box 604993, Bayside, NY 11360
Profitability Consultant and CPA

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Let’s talk technology

This week I would like to talk a bit about technology.

The newest edition to technology for me is Windows 10.  Those of you having trouble with Windows 8 will be very happy with Windows 10 upgrade.  Most all of the problems I was having in Windows 8 have disappeared in Windows 10.  I had issues with adobe printing from various web applications – no longer.  It also seemed that Windows 8 would have worked better for me with a touch screen, but I don’t have one.  The new Windows 10 seems to correct those problems and many others regarding using the mouse and interacting with the web.

technologyAnother important piece of technology is the cloud.  I have heard several experts state that accounting firms are one of the harder professional services to put in the cloud.  This is true because as CPAs we use so many different programs simultaneously.  Even as I write this I have Outlook, Adobe and the internet open.  As soon as I am done, I will add the tax program, QuickBooks and Excel as well as other programs open at once.

By comparison, a legal office is much easier to convert to the cloud [most legal offices use word, legal research programs on line, and a time/billing program].  All of these programs are on line in the cloud and conversion is a blessing in disguise; not only are all the programs always updated, but you don’t have concern yourself with back up at all!

Recently QuickBooks opened ‘QuickBooks Online’ which is a cloud version of the most famous accounting/bookkeeping program in the country [maybe in the world].  The online version is extremely poor for inventory companies, but for most other companies it’s pretty good.  There are several levels of access and Intuit even set up a special level of access for the accountant/CPA.  The price is a little hefty [since the basic service price is generally awful for my clients] $39.95 is for a full system, and there is a ½ price special.  The online version is not as good as the desktop version and many of your favorite screens have changed.  I suspect Intuit will improve the cloud version and make more of the desktop applications available as time goes on.

Harlan S. Kahn CPA
Paris Accounting Corp
www.parisac.com

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New York City taxi medallion industry today

This week I would like to touch upon the New York City taxi medallion industry and its current state; or should I say current crisis?

NEW YORK - NOVEMBER 21, 2013: New York taxis waiting for clients.New York City has around 6,000 hybrid taxis

The NYC taxi medallion industry was the deal of a lifetime for maybe 40 years or more. A taxi medallion is an intangible asset; the right to paint a car a particular yellow with lettering etc., install a certified meter, and pick up random people for fees and tips.

Until 2006 there was poor oversight on driver’s income. So not only did you own an appreciating asset the size of a home, but your work effort to support it went mostly unnoticed by the IRS.

When I entered the industry in 2003 medallions were selling for $400,000 and rental income was 18,000 yearly. You could own two medallions in a corporation, never drive, and rent your rights to a taxi garage for $36,000 a year [$1,500 per month per medallion]. Not only was this a great passive income, but the medallion appreciated at a nearly exponential rate.

Five years later, in 2008, buyers paid $1,225,000 per medallion and monthly rental incomes moved over $3,000. Medallion income continued to climb up over $3,000 and the highest I heard was $3,600 per month per medallion for rental in 2010 and 2011.

And then came the big crash [and burn] which started in May 2011. The decline in taxi medallion value and revenue really took a foot hold with UBER. NYC Mayor Bloomberg never liked the taxi and limousine commission and looked to put them out of business. Uber was not defeated on entry to the NYC market, as they were defeated in other places like Puerto Rico and Israel for example. When Uber spread to those places (and others) government required all Uber drivers to have a hack license, inspect the vehicle yearly, and require extensive insurance.
Not the case in NYC [yet] or any of the places Uber is competing [to my knowledge].

To date there are about 13,000 medallions in NYC issued by the TLC [taxi and limousine commission]. There are about 14,000 Uber drivers. Uber can be tracked on your iPhone through the app that summons the car. Your ride destination was pre-determined and pre-paid.
You are able to choose a driver in your proximity, after reading their ratings from the latest passengers, if you like. If you are sending an elderly parent or child in the Uber car, you track its entire ride, ensuring your passenger arrives safely without diversions from the route.

The Taxi & Limousine drivers are having a lot of trouble competing with that.

If you are in this industry, I would appreciate your perspective – comment below.

Harlan S. Kahn CPA
Paris Accounting Corp
www.parisac.com

ParisAC-whitepaper

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NYS Notices Regarding Unemployment Expense

Today’s blog is about NYS and the notices employers are currently getting regarding unemployment expense surcharges and assessments.

Our unemployment system pays unemployed workers amounts that exceed the federal amounts paid.

HeadacheThere are in effect, NYS and federal unemployment monies transferred for one when collecting a check from NYS. NYS had to borrow money from the fed to afford the unemployment roles back in 2008.

Some time ago, NYS along with several other states, never paid the Fed back for money borrowed.  From that year forward, all NYS businesses file the long form 940 instead of a 940EZ.  Form 940EZ automatically gives you credit at 5.4% for unemployment taxes a business pays to NYS.

All states that don’t pay back the fed timely for borrowing money no longer get an automatic 5.4% credit.  So businesses pay more unemployment taxes to the fed for their state not completing their financial obligations!

Today we find out NYS is short money again towards their own unemployment needs.  So they are billing each business shy of $10 per employee to make up their short fall.

I hope you can all appreciate the NYS politicians we are electing. They borrow and don’t pay back monies promised, and they do not live up to the budgets they create:  outcome – businesses pay for their shortfalls and shortsightedness.

Contact our office if we can be of assistance.

Harlan S. Kahn CPA
Paris Accounting Corp
www.parisac.com

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Deadline nears for conversion to chip-based payment cards.

Businesses that accept credit or debit cards need to be aware of changes coming Oct. 1, when merchants that are not yet using readers for chip-based cards will be on the hook for any fraudulent transactions. #business

Here is a great article for tips on Adopting EMV Chip Technology to Protect the Security of Your Business.

Excerpt:
payment cardsIf your business accepts credit and debit cards at the point of sale, change is coming.How your customers pay has also been changing, with new types of cards and payment forms.You need to be ready with new technology to accept those payments — and protect your business in the process.

How Payment Forms Are Changing

Read the rest of the article here: http://smallbiztrends.com/2015/08/emv-tips-credit-card-chip-technology.html

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Highway Funding Bill Affects Important Tax Return Due Dates.

The new highway funding bill congress just passed, HR 3236 affects partnership tax return due dates and FinCEN114 [also referred to as FBARS] return dates starting this upcoming filing season.

Tax TimeCalendar year partnership returns are now due March 15th and can extend until September 15th.  FBARS are now due April 15th and have extensions until October 15th.

Further, if it’s your first time filing an FBAR, the secretary can waive your entire penalty.

Prior to this change, partnership returns, form 1065, were due in April 15 and could be on extension until October 15th.  This new rule moves up the deadlines by one month.  The rule has been coming for years; as partnership return deadlines interfere with personal returns filing timely.

FBARS used to be due June 30th with no extensions.  The penalties were harsh and are still harsh:  up to 50% of the assets held in a foreign country and you could visit prison.  These penalties are designed against wealth taxpayers hiding income from the IRS [since America taxes your worldwide income; not just income earned in the states and territories].  But the penalties and the due date with no extensions hurt so many Americans who weren’t even aware that being a signer on your parent’s bank account for medical or emergency purposes makes you required to file the FBAR form if the bank account is in a foreign country.

Contact our firm if you have any concerns about how this new bill may affect your business.

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