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Many of our clients reside in or work in NY, NJ, PA and the New England
States (along with, of course, their FL place or AZ place for the
snow birds!) We usually communicate with clients via
telephone and email. Documents are sent to us and back to clients
using the U.S. Mail and via emailing PDF files, Excel files and so on.
This makes access as easy and quick as with a CPA firm right down the
street from where you live.
We find many of our clients pleasantly surprised to see an email response to
a question that they sent just before going to bed - is there waiting
for them when they wake-up in the morning. We often keep late hours and
check for emails...
From time to time people get audited. When this happens the examination
is handled from Connecticut via telephone and fax or the IRS audit file is
transferred to a local Connecticut IRS office (which sometimes, if we're
lucky, "gets lost in the shuffle" before it arrives).
Search for information by State:
http://www.sba.gov/hotlist/businessnames.html
Search to see if the entity name you wish to use is available
in the USA:
http://www.knowx.com/infoam.exe?form=corp/search.htm&userid=guest&password=welcome
State Secretary of the State Web Sites:
http://www.coordinatedlegal.com/SecretaryOfState.html
State Tax Department Web Sites:
http://www.ct.gov/drs/cwp/view.asp?a=1456&q=266120
State Tax Department Web Sites:
http://www.statelocalgov.net/state-ct.htm
State Tax Form Web Sites:
http://www.taxadmin.org/fta/link/forms.html
State Sales Tax Department Web Sites:
http://www.olivierandassociates.com/homepage/allstateslinks.html
State Tax-Free Sales Tax Holidays:
StateTaxFreeOffers.pdf
State Motor Vehicle Department Web Sites:
http://www.drivershandbook.com/handbooks/usa/
All 50 States' and D.C.'s Home Pages and Workers' Compensation Agencies:
http://www.comp.state.nc.us/ncic/pages/all50.htm
How To File For Homestead Exemption:
http://www.assetprotectionbook.com/homestead_exemptions.htm
Click here
to see newspaper story about New York & New Jersey non-filers
New York telecommuter tax:
http://www.tax.state.ny.us/pdf/2006/inc/it203i_2006.pdf (see
page 55 of 91)
http://www.telcoa.org/HTMLobj-1146/Explaination_of_the_N.Y.Tax_Department_s_revised_position.pdf
New York individual income tax tax refund status page:
https://www7.nystax.gov/PRIS/prisHome
Search to see if the entity name you wish to use is available in New
York:
http://appsext5.dos.state.ny.us/corp_public/CORPSEARCH.ENTITY_SEARCH_ENTRY
http://appsext5.dos.state.ny.us/corp_public/enter_search
http://wdb.dos.state.ny.us/corp_public/corp_wdb.corp_search_inputs.show
NY State Workers' Compensation:
http://www.wcb.state.ny.us/
NY Income Tax Publications:
http://www.tax.state.ny.us/pubs_and_bulls/publications/income_pubs.htm
NY State Tax §631(d):
http://www.alipman.com/snowbirdguide/nytl631.html
http://www.snowbirdguide.com/snowbirdguide/
New York Sales tax information:
http://www.olivierandassociates.com/homepage/nysalestax.html
Annual filing fee tax form
IT-204-LL instructions:
http://www.tax.state.ny.us/pdf/2006/inc/it204lli_2006.pdf
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Multi-member
LLCs are
subject to an $100 per owner filing fee with a $500 minimum,
which is due annually by January 30th (not the 31st).
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The NY law was changed in 2005 to also included multi-member disregarded
entities. i.e. certain husband & wife LLCs.
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SMLLCs have a $100 filing fee in lieu of the $500 minimum.
-
We have filed exemptions from all of the above filing fees for our
pure-play trader clients, which have resulted in NY refunding
prior year payments.
NY State Tax Advisory Opinion regarding non-resident active traders of
securities & futures contracts on commodities:
http://www.tax.state.ny.us/pdf/advisory_opinions/income/a88_11i.pdf
NY State Tax Advisory Opinion regarding non-resident active traders:
http://www.tax.state.ny.us/pdf/advisory_opinions/income/a89_10i.pdf
NY State Tax Advisory Opinion regarding non-resident partners:
http://www.tax.state.ny.us/pdf/advisory_opinions/income/a92_2i.pdf
NY State Tax Advisory Opinion regarding IT-204-LL annual fee:
http://www.tax.state.ny.us/pdf/advisory_opinions/income/a04_9i.pdf
When hiring a new employee in New York:
http://www.nysnewhire.com
http://www.tax.state.ny.us/prompt/wt/wttoc2005.htm
Handbook of New York State and Local Taxes:
http://www.tax.state.ny.us/pdf/stats/policy_special/handbook_of_new_york_state_and_local_taxes_november_2005.pdf
LLC fee schedule:
http://www.dos.state.ny.us/CORP/llcfile.html
NY LLC must "publish notice of formation" in two newspapers:
http://www.dos.state.ny.us/CORP/llccorp.html#dompub
There was a legal challenge to this for several years, but apparently on
June 1, 2006 the requirement stands and all LLCs must publish within 120
days after the effectiveness of the initial articles of organization.
LLCs formed between January 1, 1999 and May 31, 2006 inclusive are
allowed until June 1, 2007 to publish.
Articles of Dissolution - Domestic Limited
Liability Companies
Within 90 days following the
dissolution and the commencement of winding up the limited liability
company, or at any other time that there are no members, a domestic
limited liability company shall file articles of dissolution pursuant to
Section 705 of the Limited Liability Company Law.
The completed articles of
dissolution, together with the statutory fee of $60, should be forwarded
to the New York State Department of State, Division of Corporations, 41
State Street, Albany, NY 12231.
The tax lawyers mess up LLCs:
http://busmovie.typepad.com/ideoblog/2006/03/the_tax_lawyers.html
An interest in a business (usually this applies to family owned
businesses) can be transferred at a discounted value for estate tax
purposes only if the business association statute under which the
business was organized restricts transfer. In other words, it's not
enough under the IRC that the business does so by agreement.
New York City http://nyc.gov
All businesses, incorporated and unincorporated, and individuals who
conduct business in New York City are required to pay the applicable
business taxes.
"New York City" is comprised of
five boroughs (or counties): Manhattan (New York
County), the Bronx (Bronx County), Brooklyn
(Kings County), Queens (Queens County), and
Staten Island (Richmond County). Since, in certain boroughs,
town names are used, the following zip codes (1st three digits only) may
also prove an indication of a NYC address:
Manhattan - 100, 101, 102
Bronx - 104
Brooklyn - 112
Queens - 111, 113, 114, and parts of 100 and 116
Staten Island - 103
Warning: New Jersey is so tax-unfriendly
that beginning January 1, 2002 they have enacted a $150 per
partner/member fee. For most solo-traders this is not a problem,
but for larger partnerships this can be costly. Example:
A Florida based LLC has 200 members. One member moves to NJ,
thereby under NJ law requiring the LLC to file a NJ return listing all
200 members. Then if the LLC has any income or loss "derived from
New Jersey sources" they must pay $150 for each of the 200 member
totaling $30,000. There is a very narrow exception for trader status
partnerships/LLCs "investment clubs" were the assets are less than
$39,100 per partner. Hedge Funds have special rules as well.
LLCs and partnerships are
subject to an $150 per owner tax if there are more than two
owners.
Note: technically, NJ assess this tax against any LLC or partnership
that has ANY nexus with NJ. NJ considers a NJ resident who
passively invests $1.00 in a LLC or Partnership to be enough nexus to
subject the entity to this per-owner tax.
Search to see if the entity name you wish to use is available in New
Jersey:
http://accessnet.state.nj.us/gatewaywatchnamesearch.asp
https://accessnet.state.nj.us/home.asp
Starting a Business in New Jersey
http://www.state.nj.us/njbusiness/start/
http://www.state.nj.us/njbiz/s_check.shtml
Regarding the
NJ Homestead rebate
Contrary to IRS Publication 525, the
IRS has stated: "New Jersey taxpayers can report the rebate on
Line 21 of Form 1040. Line 21 is designated for reporting 'Other
Income' and has a space for describing the income. Taxpayers can enter
'Property Tax Rebate' in the space provided on the return.
Alternatively, taxpayers can offset the rebate on their 200x property
tax deduction on line
6 of Schedule A - Itemized Deductions. Line 6 is designated for
reporting a deduction for 'Real Estate Taxes.'
and from the
NJ web site: "Homestead
rebates, property tax reimbursement payments, FAIR rebates, and NJ SAVER
rebates are not taxable for New Jersey gross income tax purposes, and
should not be reported on the New Jersey income tax return."
and from the
NJ 1040 instruction booklet: Line 36c - Property Tax Deduction.
You may also be eligible to claim a deduction for property taxes you
paid, or rent constituting property taxes (18% of rent due and
paid) during your period of residency.
Note the (begging the issue) loophole: (1) NJ 1040 line 36a /
36c calls for a deduction of Property Taxes Paid
(2) NJ specifically says to not report the rebate on the NJ 1040,
leaving the full amount of the property taxes paid as a deduction
for NJ purposes. (3) IRS allows reporting the rebate income
(when it is applicable) on either form 1040 line 21 (which can increase
AGI and increase net taxable income or (read two ways) (a) on
Schedule A, line 6 (which could be expected to effect NJ 1040 line 36a)
"...taxpayers can offset the rebate on their 2005 property tax
deduction [right there] on line 6 of Schedule A - Itemized
Deductions." or (b) on Schedule A, line 8 (which would not
necessarily effect NJ 1040 line 36a) "...taxpayers can offset the
rebate on their 2005 property tax deduction [that is found] on line 6
of Schedule A - Itemized
Deductions."
http://www.state.nj.us/treasury/taxation/pdf/irsnewsrelease.pdf
IRS Continues to Remind New Jerseyans How to Report Property Tax Rebates
Search to see if the entity name you wish to use is available
in Pennsylvania:
http://www.dos.beta.state.pa.us/CorpsApp/CorpsWeb/wfDefault.aspx
Pennsylvania Dept of Revenue:
http://www.revenue.state.pa.us/revenue/site/default.asp
Loss from a Trader's Business:
http://www.revenue.state.pa.us/revenue/cwp/view.asp?A=299&Q=207119
Gain/Loss from Trading:
http://www.revenue.state.pa.us/revenue/cwp/view.asp?A=299&Q=207126
Registering a business in PA:
http://www.paopen4business.state.pa.us/paofb/cwp/view.asp?a=3&q=441248
PA tax benefit rules and basis adjustments
starting on page 11-16 found on PDF file page 170 of 319 at:
http://www.revenue.state.pa.us/revenue/lib/revenue/pitguide_all.pdf
Local PA Taxes
http://cax.aers.psu.edu/taxreform/TaxOptions.htm
http://cax.aers.psu.edu/taxreform/why.htm
http://www.captax.com/index.shtml
Borough of Amber Taxes
http://www.ambler.pa.us/fees.asp
Bald Eagle Area Taxes
http://www.beasd.org/beaweb/DEPARTMENTS/Wage%20Tax/wage_tax.htm
Berks County Taxes
http://www.berkseit.com/earnedincometax.html
Danville Taxes
http://www.danvillepa.com/taxes.php
Lancaster County Taxes
http://www.edclancaster.com/taxation/personal_taxes.php
Middeltown Borough Taxes & Finance
http://www.middletownborough.com/Borough/tax.asp
Quakertown Borough Taxes
http://www.quakertownboro.com/tax.html
Palmyra Borough Taxes
http://www.palmyrapa.com/palmyra/
Pittsburgh Department of Revenue
http://www.city.pittsburgh.pa.us/finance/html/earned_income_tax.html
http://www.city.pittsburgh.pa.us/finance/html/faq_business_wage_tax.html
Philadelphia Area Taxes
http://philanet.com/benigno/relo.html
Borough of Seven Fields Taxes
http://www.sevenfields.org/Residential/res_2.shtml
Borough of West View Taxes
http://trfn.clpgh.org/westview/tax.html
U.S. City information
city-data.com
Multiple entity issue:
Pennsylvania --Corporate Income Tax: Corporation Providing Services to
Related Entities Subject to Business Privilege Tax
A corporation that provided
administrative services to related entities was subject to a
Pennsylvania township business privilege tax on management fees charged
for those services because the corporation was considered to be offering
services to the "general public or a limited number thereof."
Although the company provided its
services only to other companies in its affiliated group, the other
members of the affiliated group were members of the public and operated
in the public arena. In addition, the township's regulations
specifically stated that taxable gross receipts included receipts from
sales made to affiliated business entities. The corporation's management
fees did not qualify as exempt dollar-for-dollar reimbursement of
out-of-pocket expenses because the fees generated revenue to cover the
corporation's expenses, including overhead and other costs. The
corporation determined its fee charges at the beginning of each year
based on a projected budget and apportioned the fees among the
affiliated companies according to the expected sales of the entities.
Thus, the fees were not true dollar-for-dollar reimbursements.
Applied Tech Products Corp. v.
Radnor Township, Pennsylvania Commonwealth Court, No. 44 C.D. 2005, July
7, 2005, ¶300-355
Other References:
PA St. Tax Rep. at ¶255-110
From time to time people get audited. When this happens the examination
is handled from Connecticut via telephone and fax or the file is
transferred here (which sometimes, if we're lucky, "gets lost in the
shuffle" before it arrives).
http://www.dos.state.ny.us/corp/crpfaq.html
Taxpayers requiring
more assistance in their PLANNING, design and set-up of
their trading business and with the PREPARATION or the
REVIEW of their tax filings are encouraged to contact us
for personally tailored tax advice at our normal rates.
How
can a CPA help you?
Why work with a CPA?
Tax Mama's I can do it myself, thank you!
Smart
Money's Finding a Tax Pro
The Blade's Complicated Returns send filers to the Pros
What's needed to get started
right away?
Write to us first with an outline your situation and what you are
looking to accomplish (besides the obvious: lowering tax bill) :
GetMyNewYorkTaxesDone
Colin M. Cody, CPA, CMA
TraderStatus.com LLC
6004 Main Street
Trumbull, Connecticut 06611-2400
(203) 268-7000
MEMBERSHIPS
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PCPS
The
AICPA Alliance for CPA Firms
Partnering
for CPA Practice Success
American Institute of CPAs
Connecticut Society of CPAs
Institute of Management Accountants
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