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Rodman & Rodman’s Kathy Parker Cites Challenges of Tax Incentive Complexities at Massachusetts Solar Summit 2012

(L to R) Massachusetts Solar Summit panelists Craig Huntley, Principal at Solect Energy, a major Massachusetts-based solar developer and Kathy Parker, CPA, MST, Partner at Rodman & Rodman, P.C, and a member of the accounting firm’s “Green Team” Renewable Energy and Cleantech Practice.

“While IRS Section 1603 Tax credits, combined with Solar Renewable Energy Credits (SRECS), created a boom in the Massachusetts Solar Industry, many solar companies are sitting on an inventory of solar panels and other materials for projects that have not begun construction by the end of the 2011 eligibility period,” Kathy Parker, CPA told a standing room only audience at the 2012 Solar Summit in Marlborough, MA, on June 13, 2012. Parker is a Partner at Rodman & Rodman, P.C, and a member of the accounting firm’s “Green Team” Renewable Energy and Cleantech Practice.

“Although the 1603 tax code provides ‘Safe Harbor’ provisions, qualifying for this protection can be a tricky process” said Parker. “Much of the tax code is vague, and qualification will depend on how materials purchases were accounted for and assigned to specific projects,” explained Parker. “Qualification is often based on subjective decisions by IRS examiners”, noted fellow “Financial Side Panel” member Craig Huntley, Principal at Solect Energy, a major Massachusetts-based solar developer.

Parker went on to explain that as 1603 grants expire and solar projects begin to get larger, financing will become more complicated. Where smaller projects were often financed by individuals and S Corporations with passive income that could take advantage of tax credits, it will become a challenge to find investors with enough of a tax appetite to invest in larger projects. Project and partner structuring to take advantage of tax incentives will become increasingly important, noted Parker.

“Commercial lenders are becoming more comfortable evaluating solar projects as reasonable risks, but as projects get bigger they become more complicated as the number of products and participants grows,” noted David Costello, Senior VP – Commercial Lending at Commerce Bank & Trust Company. “Banks will demand full disclosure on all parties involved in a project,” said Costello.

Panel moderator, Vincent Devito, Partner at law firm Bowditch & Dewey, explained that the solar industry in Massachusetts remains vibrant, but the industry will continue to rely on state and federal subsidies to attract investors. “These subsidies provide accelerated payback that can be as short as three years,” said Devito.

Summit keynote speaker, Ann Berwick, Chair – MA Department of Public Utilities, pegged present installed solar power capacity at 110 MW, citing state goals to bring capacity to 250 MW by 2017 and 400 MW by 2020.

About Rodman & Rodman P.C.

Founded in 1961 and listed in the Boston Business Journal’s “Top 50 Firms”, Rodman & Rodman, P.C. provides accounting, tax and business services to small and medium-sized companies. With a focus on strategic planning, Rodman & Rodman goes beyond traditional accounting services and takes a proactive approach when serving clients to increase, preserve and sustain clients’ financial net worth. The Rodman & Rodman Green Team is a specialized green energy and clean technology accounting and tax services practice within Rodman & Rodman, P.C. that serves “green” clients throughout the U.S. The company is Green Business Certified and in 2010 and 2011 was named one of the “Best Accounting Firms to Work For” in Accounting Today.

From business valuations, taxation, audits, fraud detection and prevention services and succession planning to a variety of accounting IT services including software selection, implementation and training, the team at Rodman & Rodman serves as comprehensive advisors to clients. For individual clients, the company offers personal advisory services such as planning for real estate transactions, obtaining financing, estate planning and retirement planning as well as planning for college education.

Rodman & Rodman, P.C. are located at 3 Newton Executive Park in Newton and 25 Braintree Hill Office Park in Braintree, MA. For more information, email info@rodmancpa.com, visit their website at www.rodmancpa.com or contact (617) 965-5959.

Rodman & Rodman’s Kathy Parker Cites Challenges of Tax Incentive Complexities at Massachusetts Solar Summit 2012Read More

Larry Rice, CPA of Rodman & Rodman Speaks to Town of Barnstable Employees & Boston Students

Larry Rice, CPA, Director of Strategic Consulting of Rodman & Rodman P.C., a firm of Certified Public Accountants and business strategists catering to clients throughout New England, recently spoke to Barnstable government employees including town employees, teachers and administrators, in a day-long seminar held at the town library.

Rice, an expert speaker whose most recent appearances include segments on New England Cable News (NECN), spoke about individual taxes, new laws, opportunities regarding deductions and the tax benefits of saving for college with Cape Cod employees.

Last week, Rice spoke to students at North Bennet Street School in Boston about starting their own business and the tax ramifications.

As a knowledgeable and “easy to understand” source, Rice has served small business for 25 years and appeared on NECN, Bloomberg TV’s Small Business Program, CN8 Money Matters, WBZ Radio, WROL’s “About the House” and countless other programs and publications.

Rice is available for speaking engagements. Dedicated to helping businesses and individuals achieve their short and long term goals, Rice can share his knowledge on a variety of topics including:

Individual Tax Strategies

New Tax Laws & their Impact on You and Your Business

10 Successful Business Strategies

Diagnosis of a Sales Call

Competing in your Market – Do you base it on Price?

Creating a Turnkey Business

Perceived Indifference – Are your customers really buying based on price?

Managing Your Cash Flow

Small Businesses Need To Be Strategic Too

Internal Controls and The Small Business

Why Every Business Should Know Its Conversions

Business Is Like Football

Referrals – The Easiest Way To Grow Business

To schedule Larry Rice, CPA as a speaker, contact Jen Reading at Rodman & Rodman, (617) 965-5959.

Rodman & Rodman, P.C.

Founded in 1961, Rodman & Rodman, P.C. provides accounting, tax and business services to small and medium-sized companies throughout New England. With a focus on strategic planning, Rodman & Rodman goes beyond traditional accounting services and takes a proactive approach when serving clients to increase, preserve and sustain clients’ financial net worth. The company has been named one of the “Best Accounting Firms to Work For” in Accounting Today and is listed in the Boston Business Journal’s “Top 50 Firms”.

From business valuations, taxation, audits, fraud detection and prevention services and succession planning to a variety of accounting IT services including software selection, implementation and training, the team at Rodman & Rodman serves as comprehensive advisors to clients. For individual clients, the company offers personal advisory services such as planning for real estate transactions, obtaining financing, estate planning and retirement planning as well as planning for college education. Rodman & Rodman, P.C. are located at 3 Newton Executive Park in Newton and 25 Braintree Hill Office Park in Braintree, MA. For more information, visit their website at www.rodmancpa.com or contact (617) 965-5959.

Larry Rice CPA

Larry Rice, CPA of Rodman & Rodman Speaks to Town of Barnstable Employees & Boston StudentsRead More

Why Wesley Snipes got caught. Celebrity or not, non-filers can run but they cannot hide from the IRS.

Matthew Previte, CPA

NATICK, MASSACHUSETTS…

The simple answer as to why Wesley Snipes will soon begin serving a three-year sentence for tax evasion is that he didn’t file his tax returns for 1999 through 2004 and also tried to get a $7 million refund in 2006 on returns filed before he stopped filing in 1999. The broader answer is that in 2010, the IRS has more sophisticated resources, more personnel, and more incentive (nearly $345 billion owed to the federal government, which has a budget deficit in the trillions) than ever before to track down non-filers. In 2010 and beyond, if you fail to file your tax returns, chances are exceptional that you will get caught.

“What non-filers do not realize is the IRS will prepare a Substitute For Return (SFR) for you if you don’t file a tax return yourself. Only that SFR will not have the vast majority of the deductions you might be entitled to had you filed on your own,” said Matthew J. Previte, CPA, a local taxpayer advocate expert and owner of TaxProblemsRUs.com. “So, if you don’t file a tax return for several years like Mr. Snipes, the IRS has the technology to prepare an SFR for you and then will start burying you with severe penalties and interest based on that grossly inflated SFR assessment.”

Fortunately for non-filers, the IRS generally only looks back six years for unfiled tax returns. Yet without including all the deductions one might be entitled to, those SFR assessments can be grossly inflated due to that lack of deductions. The IRS can also utilize any number of resources to calculate income. For example:

  • Bank accounts – IRS can track non-filer accounts and review your deposit and spending histories.
  • Credit card spending – IRS can track overseas and domestic spending to prove income.
  • Audits of payees – Often times the people non-filers pay for goods and services are audited and that can alert the IRS to the payer’s non-filing.
  • IRS whistleblower programs – Does anybody else know you haven’t filed? An ex-wife or significant other? Perhaps a vindictive business associate? IRS whistle-blower programs raise the red flag and agents are more than happy to follow those leads.

So, with all the mechanisms available to the IRS to catch non-filers, why do people still not file?

“The reasons vary. Everything from bad advice from tax protestors and unscrupulous tax advisors to financial or health problems to even just plain old general neglect. Once one year is unfiled, fear and embarrassment most often perpetuate the problem, causing additional years to go unfiled. Some might even think if they don’t file, they won’t ever have to pay taxes. I’ve represented quite a few people who haven’t filed for 25 years or more,” said Previte. “The reality is, with the resources the IRS now has, non-filers will get caught and the punishment, if prosecuted and proven guilty like Mr. Snipes, is one year in prison per year you don’t file up to six years. If you’re lucky enough to avoid prosecution and jail time, the IRS will still bury you in taxes, penalties, and interest.”

Continues Previte, “The real irony about non-filers is that by filing their tax returns—even if they don’t have the money to pay the IRS—they have more options to resolve their tax debts than by not filing their tax returns.”

Some of those options include:

  • Offer in Compromise program
  • Payment plan
  • Bankruptcy
  • Uncollectible status
  • Penalty Abatement
  • Lien Subordination
  • Innocent Spouse Relief

“These are just a few of the scenarios where having a qualified licensed tax professional represent you—instead of pulling your bed covers over your head and praying you don’t get caught–can literally save you thousands of dollars and dramatically reduce the likelihood of prison time,” said Previte. “At the very least, it can lessen the stress and anguish that come with having tax debt hanging over your head and your family’s.”

For more information on TaxProblemsRUS.com, please visit www.TaxProblemsRUs.com. To schedule a free confidential consultation, call 877-259-8200.

About  TaxProblemsRUs.com and Matthew J. Previte, CPA, PC

TaxProblemsRUs.com is the official Web site of Matthew J. Previte, CPA, PC, a Massachusetts tax firm representing individuals and businesses before the Internal Revenue Service and state taxing authorities in all 50 states. Based in Natick, Massachusetts, Matthew J. Previte, CPA, PC has been representing both individuals and businesses with tax problems for 22 years. To schedule a free confidential consultation, call 877-259-8200 or, for more information, visit www.TaxProblemsRUs.com.

 

Why Wesley Snipes got caught. Celebrity or not, non-filers can run but they cannot hide from the IRS.Read More

A taxing situation…With the new IRS, coming forward is the best option for late filers, non-filers, and delinquent payers.

NATICK, MASSACHUSETTS…

By April 15, 2010, 84 percent of Americans filed their tax returns on time. That means 16 percent didn’t. That omission translates to a figure somewhere near $345 billion in taxes owed to the U.S. Treasury Department. With a budget deficit in the trillions and rising, the IRS is expected to increase its audits of both personal and business tax returns as well as pursue greater enforced collection action against individuals and businesses using levies, liens and seizures.  And that puts late filers, non-filers and delinquent payers on notice: Uncle Sam wants you now more than ever.

So, what’s a non-filer or delinquent payer to do? Many will delay dealing with the problem, literally hiding from the IRS. Yet according to Matthew J. Previte, CPA, a local taxpayer advocate expert and owner of TaxProblemsRUs.com, the IRS will get its money and then some from   non-filers and delinquent payers in penalties and interest. The key is to be proactive and face the music.

“When we’re children, our parents said if we told the truth, things would be far easier on us than if they found out later. That may sound rather simplistic, but it’s the same with the IRS and your state’s DOR,” said Previte. “There are a number of options that you can work out with the IRS and your state to address your situation.”

Besides a lack of funds, pride, procrastination and a number of other reasons, most people are quite intimidated by the IRS and hesitant to come forward before the IRS comes to them. Since 1997, Previte’s Natick, Mass.-based tax firm has specialized solely in representing individuals and businesses with federal and state tax problems, including audits, non-filers, and delinquent payers.

“What most people do not realize, and that includes many CPAs and tax attorneys, is that dealing with the IRS and state DORs is a specialty unto itself,” said Previte. “We can provide our clients with resolutions to very sticky situations not only because we’re licensed tax professionals but because we have successfully worked with both the IRS and state tax agencies full-time on a daily basis for many years and we know how they work.”

So what are some of the options available to people who owe taxes? Some options include:

  • Offer in Compromise program – This little known program enables qualified taxpayers to negotiate a settlement for a fraction of what they owe. Who qualifies? Those taxpayers who can demonstrate an inability to pay their delinquent taxes in a short period of time.
  • Payment plan – Many people are able to pay their tax debts but just need a little time to pay it off. Negotiating payment terms you can live with is the key. Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. However, you may qualify to have the penalties removed or abated if you can show reasonable cause for filing late or paying late. For those unable to pay their tax debts in full over time, a Partial Pay Installment Agreement may be available. Under this option, payments are made until the collection statute expires. Any unpaid balance at the end of the collection statute expires and becomes legally uncollectable, leaving the taxpayer free from paying the remainder of any balance due.
  • Bankruptcy – Did you know that taxes in many cases can be discharged or wiped out in a bankruptcy. Many people, as well as attorneys, are not aware of this. For those who qualify, bankruptcy often times can be the solution to resolve their crushing tax problems. Proper pre-bankruptcy planning—for Chapter 7, Chapter 11, or Chapter 13—is key to determining if bankruptcy is or can be a viable solution.
  • Uncollectible status – Every year the IRS puts many taxpayers into the “Uncollectible Status” category or classifies them “Currently Not Collectible” (CNC). What essentially this means is that the IRS will not proactively seek back taxes from a taxpayer that owes because of validated economic hardship. If their finances improve (as they will monitor) collection efforts will resume.
  • Penalty Abatement – The IRS charges penalties for filing late, paying late, underpaying your estimated tax payments if you’re self-employed, negligence if you make mistakes in preparing your tax return, etc. Many citizens could pay off their tax debts if it weren’t for penalties that double, triple, or quadruple their tax bill. The law does allow taxpayers who have “reasonable cause” to file for a Penalty Abatement.
  • Lien Subordination – Some taxpayers could pay off their tax debt if they could get a home equity loan. Unfortunately, these taxpayers can’t get home equity loans to pay off their old tax debt because the IRS has filed Federal Tax Liens against their property. A Lien Subordination allows the IRS to reduce its Lien priority and give your bank superior Lien priority protecting their loan in exchange for the proceeds from the loan. This way, the IRS gets the equity it had a Lien against and your bank is protected by their superior Lien.
  • Innocent Spouse Relief – When married couples sign a joint tax return, they both become liable for the taxes on that return. If at some future time the IRS audits that joint tax return and determines that additional taxes are due, both spouses become liable for the taxes. Unfortunately, these additional taxes are sometimes due to the misdeeds or fraud committed by one spouse. Sadly, the Innocent Spouse also gets saddled with the tax debt. Innocent Spouse Relief was designed to alleviate unjust situations where one spouse was clearly the victim of fraud perpetrated by their spouse or ex-spouse. If you qualify for Innocent Spouse Relief, you may not owe any tax.

“These are just a few of the scenarios where having a qualified licensed tax professional represent you can literally save you thousands of dollars and dramatically reduce the stress and anguish that comes with having tax debt hanging over your head—and your family’s for that matter,” said Previte.

For more information on TaxProblemsRUS.com, please visit www.TaxProblemsRUs.com. To schedule a free confidential consultation, call 877-259-8200.

About  TaxProblemsRUs.com and Matthew J. Previte, CPA, PC

TaxProblemsRUs.com is the official Web site of Matthew J. Previte, CPA, PC, a Massachusetts tax firm representing individuals and businesses before the Internal Revenue Service and state taxing authorities in all 50 states. Based in Natick, Massachusetts, Matthew J. Previte, CPA, PC has been representing both individuals and businesses with tax problems for 22 years. To schedule a free confidential consultation, call 877-259-8200 or, for more information, visit www.TaxProblemsRUs.com.

A taxing situation…With the new IRS, coming forward is the best option for late filers, non-filers, and delinquent payers.Read More

Agents seek intervention by IRS…Allstate independent contractor agents petition IRS for rights as business owners.

GULFPORT, MS….

In 2000, Allstate Insurance converted the majority of its sales force from employee to independent contractor status. With the change in status, many of those agents anticipated liberation from the requirements of being an Allstate employee. Nine years later, those 12,000+ Allstate agents are still waiting for their independence. Having grown weary waiting for Allstate to right the situation, they’ve taken their case to the IRS in the form of a petition drive.

The petition, written by an unidentified agent and published nationally by National Association of Professional Allstate Agents (NAPAA), a non-profit representing the rights of Allstate agents, cites a Private Letter Ruling issued by the IRS in 1989. NAPAA contends this letter gave Allstate tax-advantaged status by promising the IRS that the agents would become true independent contractors and be treated as such. It’s an agreement the agents contend Allstate has far from lived up to its end of the bargain.

“It’s a situation where Allstate gets to have its cake and eat it, too,” said Jim Fish, NAPAA executive director. “Agents bear all of the expenses and risks associated with operating an independent business, but are controlled as employees. Meanwhile Allstate enjoys a huge competitive cost advantage by avoiding expenses associated with pensions, health insurance, 401k’s, Social Security and, most importantly, federal taxes. You would think that alone would rate the IRS’s attention, but that’s not been the case.”

Added Fish, “Now that the IRS has announced plans to audit 6,000 companies for employment tax issues, maybe Allstate agents will finally attain the independent contractor status they have long been denied.”

Some of the restrictions Allstate agents have found as “independent contractors” include:

·         Mandatory office hours.

·         Sales quotas.

·         Verbal and written warnings threatening loss of contract for not meeting company quotas.

·         A requirement to forward office telephone calls to company service centers after hours.

·         Subjection to a number of employee-like controls, including annual performance reviews.

·         Mandatory meetings and training sessions.

·         Submission of oral or written production reports.

·         Risk of termination at-will.

In fact, many agents feel they’re treated more like employees today than when they were actual employees. Said one agent, “Back then, we had a pension plan and, if the company wanted to fire you, there was an agent review board in place. Now, they can fire you with or without reason.”

Allstate agents certainly aren’t the first independent contractors to be treated like employees without the accompanying benefits. In 2007, after filing a class action lawsuit demanding parity with employee drivers, current and former FedEx independent contractor drivers were elated when Judge Robert Miller of the U.S. District Court in Northern Indiana certified them as a class. This action has opened the door to similar cases involving independent contractors who are treated like employees.

So why hasn’t the IRS gone after Allstate?

“That’s a good question and one we hope this petition gets the IRS and the Obama administration to answer. Especially since this situation has such a dramatic impact on an agent’s book of business,” said Fish.

The long-term goal for most insurance agents is to build their book of business and then, when they retire, sell it to the highest bidder. At Allstate, this is not always possible because the company controls who buys these books of business. Said one agent, “Our books of business were supposed to replace our pensions, but [Allstate] managers have started to interfere in the sales process, which has lowered the value of our agencies. This isn’t fair because for many of us, our book of business is the most important retirement asset we have.”

For more information on the National Association of Professional Allstate Agents, you can visit their Web site at www.napaausa.org or call (877) 269-3474.

About National Association of Professional Allstate Agents (NAPAA)

Based in Gulfport, Mississippi, NAPAA is a non-profit organization whose members are predominantly insurance agents under contract with Allstate. In addition to offering a variety of benefits and services, NAPAA further serves its members by acting on their behalf and speaking with a distinct and unfettered voice on a wide range of issues. To contact NAPAA, please visit its Website at www.napaausa.org or call (877) 269-3474.

Agents seek intervention by IRS…Allstate independent contractor agents petition IRS for rights as business owners.Read More

Deliberately Misclassified? Allstate independent contractor agents, formerly Allstate employees, fight for true independence.

GULFPORT, MS….

People go into business on their own for a number of reasons, but the ability to “be your own boss” tops the list. So when Allstate Insurance converted the majority of its sales force from employee to independent contractor status in 2000, many of those agents anticipated liberation from the requirements of being an Allstate employee. Eight years later, 11,000+ Allstate agents are still waiting for their independence.

What Allstate agents have found as “independent contractors” are:

●        Mandatory office hours.

●        Sales quotas.

●        Verbal and written warnings threatening loss of contract for not meeting company expectations.

●        A requirement to forward office telephone calls to company service centers after hours.

●        Subjection to several employee-like controls, including annual performance reviews.

●        Mandatory meetings and training sessions.

●        Restrictions on certain inbound e-mails, some blocked.

In fact, many agents feel they’re treated more like employees today, than when they were actual employees. Said one agent, “Back then, we had a pension plan and, if the company wanted to fire you, there was an agent review board in place. Now, they can fire you with or without reason.”

Allstate agents certainly aren’t the first independent contractors to be treated like employees without the accompanying benefits. In 2007, after filing a class action lawsuit demanding parity with employee drivers, current and former FedEx independent contractor drivers were elated when Judge Robert Miller of the U.S. District Court in Northern Indiana certified them as a class. Not only has this action allowed their case to proceed, but it opened the door to similar cases involving independent contractors who are treated like employees.

Two months following the U.S. District Court in Northern Indiana’s decision, the Internal Revenue Service levied $319 million in fines and penalties levied against Federal Express. The fines and penalties were later withdrawn, but the IRS has continued to audit Federal Express for the years 2004 through 2006.

So why hasn’t the IRS gone after Allstate?

“That’s a good question,” said Jim Fish, executive director of the National Association of Professional Allstate Agents, a non-profit representing the rights of Allstate agents. “Agents bear all of the expenses and risks associated with operating an independent business, but are controlled as employees. Meanwhile Allstate enjoys a huge competitive cost advantage by avoiding expenses associated with pensions, health insurance, 401k’s, Social Security, and, most importantly, federal taxes. You would think that alone would rate the IRS’s attention, but that’s not been the case.”

The long-term goal for most insurance agents is to build their book of business and then, when they retire, sell it to the highest bidder. At Allstate, this is not always possible because the company controls who buys these books of business. Said one agent, “Our books of business were supposed to replace our pensions, but [Allstate] managers have started to interfere in the sales process, which has lowered the value of our agencies. This isn’t fair because for many of us, our book of business is the most important retirement asset we have.”

For more information on the National Association of Professional Allstate Agents, you can visit their Web site at www.napaausa.org or call (877) 269-3474.

About National Association of Professional Allstate Agents (NAPAA)

Based in Gulfport, Mississippi, NAPAA is a non-profit organization whose members are predominantly insurance agents under contract with Allstate. In addition to offering a variety of benefits and services, NAPAA further serves its members by acting on their behalf and speaking with a distinct and unfettered voice on a wide range of issues. To contact NAPAA, please visit its Website at www.napaausa.org or call (877) 269-3474.

Deliberately Misclassified? Allstate independent contractor agents, formerly Allstate employees, fight for true independence.Read More