Tax Accounting – Berning CPA http://berningcpa.com/ Mon, 09 May 2022 20:28:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://berningcpa.com/wp-content/uploads/2021/05/default-150x150.png Tax Accounting – Berning CPA http://berningcpa.com/ 32 32 Philly assessment could cost homeowners more in taxes https://berningcpa.com/philly-assessment-could-cost-homeowners-more-in-taxes/ Mon, 09 May 2022 20:28:22 +0000 https://berningcpa.com/philly-assessment-could-cost-homeowners-more-in-taxes/ The Board requested the information in order to do its own analysis to see if the data is within acceptable limits. Aros said the results have been certified by an external review to meet acceptable industry guidelines. Council member Curtis Jones refuted this statement. In his neighborhood, “values ​​are everywhere, and I know the neighborhood […]]]>

The Board requested the information in order to do its own analysis to see if the data is within acceptable limits. Aros said the results have been certified by an external review to meet acceptable industry guidelines.

Council member Curtis Jones refuted this statement. In his neighborhood, “values ​​are everywhere, and I know the neighborhood well enough to know that a lot of them are single-family ranch-style homes,” Jones said. “I can’t understand the variance in some of these properties.”

There were concerns about how the higher tax assessments would impact people’s ability to pay their bills. Council member Cindy Bass told the hearing it could force people out of town.

“Black and brown people who live in gentrifying neighborhoods will be negatively affected,” Bass said. “You’re also going to have a significant effect on non-minority, middle-income people who are barely holding on.”

Official appraisals will be mailed to owners in September, with a paper appeal form attached to the appraisal. At least the goal is to mail them out in September. The vendor the city hired to do the mailing is having supply chain issues sourcing enough envelopes.

Officials estimate that up to 20% of those who receive the new assessment will appeal. There are also programs to help people ease their tax burden, such as the Homestead Exemption, Longtime Owner Occupants Program (LOOP), which can help those who see a sudden increase in their tax bill. There’s also help for low-income residents and help for seniors who want to freeze their taxes at current rates.

City residents can find information about their new assessment on the Office of Property Assessment website. The increases are for the 2023 tax year, as citywide reassessments for the 2021 and 2022 tax years were postponed due to concerns about the COVID-19 pandemic.

Appeals against the fee increase must be filed by October 3. This date is set by the state, not the city.

The Tax Review Board is expected to start hearing appeals in January 2023 and is asking people to file their appeals as soon as possible to expedite the process. This could move the call start date to October.

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How to save for retirement as a freelancer https://berningcpa.com/how-to-save-for-retirement-as-a-freelancer/ Sat, 07 May 2022 09:00:08 +0000 https://berningcpa.com/how-to-save-for-retirement-as-a-freelancer/ Savings and investment vehicles Once you have a retirement savings system or plan, you will need to create one or more retirement accounts where your money can live and grow. These are the top four retirement savings options for freelancers, according to Atiya Brown, CPA and president of Savvy Accountant, a full-service virtual accounting firm. […]]]>

Once you have a retirement savings system or plan, you will need to create one or more retirement accounts where your money can live and grow.

These are the top four retirement savings options for freelancers, according to Atiya Brown, CPA and president of Savvy Accountant, a full-service virtual accounting firm. “It’s important to invest the dollars you save for retirement instead of keeping it all in cash,” she said.

The SEP-IRA, or individual retirement account of the Simplified Employee Retirement Scheme. Although available to businesses of all sizes, SEPs can be used by the self-employed and have contribution limits that change from year to year. In 2022, workers using this type of IRA can contribute up to 25% of net income (after expenses), or $61,000, Henry-Moreland said.

After a year of freelance work, Ms. Corral was able to start saving money in a SEP-IRA again. mentioned. She transferred her old 401(k) to a SEP-IRA at TD Ameritrade. (As for health insurance, she was able to get a policy through the Affordable Care Act, albeit with higher deductibles and copayments than at her old job.)

The Solo 401(k). “My favorite retirement savings option is the Solo 401(k),” said Holly Larson, 55, a business and technology writer in Durham, North Carolina, who has been freelance for more than 20 years. “In 2022, I can contribute up to $67,500, and you can contribute up to $61,000 if you’re under 50,” she said. “It’s money that the US government will allow you to deduct from your income, which is an amazing way to save for retirement and reduce taxes.”

Health Savings Account, or HSA As a self-employed person, you may have to pay for your health insurance. If you have a high-deductible health insurance plan (defined by the Internal Revenue Service as a plan with an annual deductible of at least $1,400 per individual and $2,800 per family), you can open a health insurance account. health savings.

“The benefit of an HSA is the ability to set aside money with pre-tax dollars,” Ms. Brown said. “Although the funds can be used to pay out-of-pocket medical expenses, including deductibles, you can choose to keep the funds in your HSA and use them as an investment vehicle.” In 2022, the contribution limit for an individual is $3,650 and for a family it is $7,300. If you are 55 or older, you can make an additional $1,000 catch-up contribution. At age 65, these account holders can withdraw money from an HSA for any reason, not just for medical expenses. Distributions for eligible medical expenses are not taxed, but other withdrawals are taxable.

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Illinois professor found guilty of failing to declare Chinese bank account https://berningcpa.com/illinois-professor-found-guilty-of-failing-to-declare-chinese-bank-account/ Fri, 06 May 2022 01:26:00 +0000 https://berningcpa.com/illinois-professor-found-guilty-of-failing-to-declare-chinese-bank-account/ The Chinese and American flags are waving. REUTERS/Aly Song/File Photo Join now for FREE unlimited access to Reuters.com Register Summary Law firms Related documents Mingqing Xiao sentenced in latest China Initiative trial The judge cleared him of wire fraud charges before the jury received the case (Reuters) – An Illinois math professor was found guilty […]]]>

The Chinese and American flags are waving. REUTERS/Aly Song/File Photo

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  • Mingqing Xiao sentenced in latest China Initiative trial
  • The judge cleared him of wire fraud charges before the jury received the case

(Reuters) – An Illinois math professor was found guilty of failing to disclose a foreign bank account, but was allowed to conceal his ties to China while seeking a federal grant in the latest trial stemming from a Trump-era crackdown on Chinese influence in the United States. to research.

A federal jury in Benton, Illinois on Wednesday found Mingqing Xiao, a professor at Southern Illinois University – Carbondale, guilty on four counts, charging largely with failing to disclose a Chinese bank account in his tax returns from 2017 to 2019.

But the jury acquitted him of making a false statement in a grant proposal submitted to the National Science Foundation, which in 2019 awarded him $151,099 for his research. U.S. Judge Staci Yandle ruled on Monday that prosecutors failed to prove two charges of wire fraud.

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Xiao, who was born in China, faces sentencing in August. He denies any wrongdoing and defense attorney Patrick Linehan of Steptoe & Johnson said he plans to challenge his conviction after the trial.

“Ultimately, we believe this was a rebuke to the Justice Department’s China initiative,” said Ryan Poscablo, another attorney for Xio.

The Justice Department had no comment. SIU Carbondale said Xiao remains on paid administrative leave.

He was one of two dozen academics charged in the US Justice Department’s China Initiative, which was launched under former President Donald Trump’s administration to counter suspicions of economic espionage and Chinese research flight.

The targets included university researchers accused of concealing ties to China while receiving federal grants.

A Harvard University professor, Charles Lieber, was convicted in December in Boston of lying about his ties to a Chinese-led recruitment program. He should appeal.

But despite Harvard’s victory, several other cases fell through, including in January when federal prosecutors were forced to drop a high-profile grant fraud case against Massachusetts Institute of Technology professor Gang Chen.

The Justice Department ended the initiative in February following several unsuccessful lawsuits and criticism that it chilled academic research and fueled prejudice against Asians, although it said it would continue to pursue cases concerning threats posed by China.

Prosecutors alleged that Xiao failed to tell the NSF about another grant he received from the Chinese government or that he was an employee of Shenzhen University in China.

They said he also failed to disclose a foreign bank account on his 2017 to 2019 tax returns.

The case is United States v. Xiao, US District Court, Southern District of Illinois, No. 21-cr-40039.

For the United States: Peter Reed, Scott Verseman and Shawn Shugert of the United States Attorney’s Office for the Southern District of Illinois

For Xiao: Ryan Poscablo and Patrick Linehan of Steptoe & Johnson LLP and Michelle Nasser of Dowd Bennet

Read more:

US Department of Justice to end Trump-era program targeting threats posed by China

Harvard professor convicted by US jury for lying about China relations

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Our standards: The Thomson Reuters Trust Principles.

Nathalie Raymond

Thomson Reuters

Nate Raymond reports on federal judiciary and litigation. He can be reached at nate.raymond@thomsonreuters.com.

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Lamont proposes new budget, considering mental health and gas tax relief https://berningcpa.com/lamont-proposes-new-budget-considering-mental-health-and-gas-tax-relief/ Wed, 04 May 2022 03:41:52 +0000 https://berningcpa.com/lamont-proposes-new-budget-considering-mental-health-and-gas-tax-relief/ This month, several pieces of legislation have been introduced regarding tax cuts in Connecticut, mostly related to rising gas prices. The United States recently imposed sanctions on Russia, as well as general financial constraints that the COVID-19 pandemic has imposed on Connecticut citizens. Last week, Governor Ned Lamont and other state officials agreed to a […]]]>

This month, several pieces of legislation have been introduced regarding tax cuts in Connecticut, mostly related to rising gas prices. The United States recently imposed sanctions on Russia, as well as general financial constraints that the COVID-19 pandemic has imposed on Connecticut citizens.

Last week, Governor Ned Lamont and other state officials agreed to a new state budget focused on tax cuts and other allocations of funds to help families in the state.

The budget amounts to $24 billion, of which almost $600 million is used to reduce the tax burden. The agreement that has been agreed will affect millions of Connecticut residents and will address mental health programs, gasoline taxes and various tax credit programs.

The bill also proposes to fund mental health programs for children and early years. One of the reasons this was included in the bill is that these programs “have struggled to pay workers competitive wages while ensuring services are affordable for families,” according to NBC Connecticut.

A child tax credit is also included in the proposed bill, which would incorporate a credit of $250 per child for one year. This would be capped at three children under the age of 17.

Additionally, Lamont proposed increasing the current property tax credit in Connecticut from $200 to $300, as well as expanding current eligibility for the program. Currently, only people aged 65 or over, 50 and acting as a surviving spouse or having certain disabilities are eligible for the property tax credit program.

Addressing rising tax prices, the bill proposes that the current gas tax exemption put in place by Lamont be extended until December 1. This will ensure that Connecticut residents will not have to pay the 25 cents per gallon tax throughout the year.

This bill, if passed, would have a profound influence on various populations, especially undergraduate and graduate students at the University of New Haven. Many university students commute or use a car to get to work and other daily commitments. Continuing the gas tax exemption would save students money as gas prices in Connecticut continue to rise.

Additionally, the child tax credit program could ease the financial strain on college students with children.

If approved, the bill is currently expected to come into force on July 1.

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Increase in tax credits for the production of renewable energy following the adjustment to inflation | Knowledge https://berningcpa.com/increase-in-tax-credits-for-the-production-of-renewable-energy-following-the-adjustment-to-inflation-knowledge/ Mon, 02 May 2022 14:17:20 +0000 https://berningcpa.com/increase-in-tax-credits-for-the-production-of-renewable-energy-following-the-adjustment-to-inflation-knowledge/ The U.S. Internal Revenue Service (IRS) recently released the inflation adjustment factor for calculating Section 45 Production Tax Credits (PTCs), resulting in the increasing the PTC rate for wind and other renewable energy resources to 2.7 cents per kilowatt hour. (kWh). This increase in the PTC rate for the calendar year 2022 would improve the […]]]>

The U.S. Internal Revenue Service (IRS) recently released the inflation adjustment factor for calculating Section 45 Production Tax Credits (PTCs), resulting in the increasing the PTC rate for wind and other renewable energy resources to 2.7 cents per kilowatt hour. (kWh). This increase in the PTC rate for the calendar year 2022 would improve the fiscal and economic advantages of the eligible projects concerned.

Section 45 of the Internal Revenue Code of 1986, as amended (the “Code”), provides that the base amount of PTC is 1.5 cents per kWh for electricity generated from a qualified facility using wind or biomass in a closed circuit and sold to an unrelated person during the 10-year period beginning on the date of initial commissioning of the facility. This amount must be adjusted annually by multiplying the credit amount by the “inflation adjustment factor” for the calendar year in which the sale occurs.

The PTC amount is halved for electricity produced from a qualified facility using open loop biomass, landfill gas, waste, qualified hydroelectricity and marine and hydrokinetic resources.

The amount of PTC is also subject to phasing out if the “benchmark price” for the calendar year in which the sale takes place exceeds eight cents per kWh. Due to current PTC rates and the updated “reference price”, this sunsetting provision is not applicable.

On April 14, 2022, the IRS issued a notice (FR Doc. 2022-07967) (Notice) which provides an “inflation adjustment factor” for calendar year 2022 of 1.8012 and a “price benchmark” for the production of renewable electricity from wind power of 4.09 centimes per kWh.

By applying this new inflation adjustment factor, the PTC for renewable electricity produced from qualified energy resources of wind energy, closed loop biomass and geothermal energy increases from 2.5 cents per kWh in 2021 to 2.7 cents per kWh in 2022. The PTC for generated electricity from qualified open-loop biomass, landfill gas, waste, qualified hydropower, and marine renewable energy resources and hydrokinetic increases from 1.3 cents per kWh in 2021 to 1.4 cents per kWh in 2022.

Such an increase in PTC rates would improve the economics of qualified renewable projects currently in operation and allow developers and developers to adjust their models and pricing for projects currently in development or under construction, allowing for better monetization of tax benefits. relevant. Due to continued inflation, we may see additional rate increases in 2023 or 2024. As such, additional consideration should be given to modeling future projects to account for an appropriate inflation rate and the planned CIP increases.

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Opinions of the tax court diverge in the Thakkar judgment https://berningcpa.com/opinions-of-the-tax-court-diverge-in-the-thakkar-judgment/ Sat, 30 Apr 2022 18:29:00 +0000 https://berningcpa.com/opinions-of-the-tax-court-diverge-in-the-thakkar-judgment/ It’s never black or white when it comes to ‘black money‘. In identical facts, relating to the same year, the same tax court took diametrically opposed positions for two members of the same family for their links with a Swiss bank account. The cases relate to South Mumbai residents Dilip Thakkar, a reputable chartered accountant, […]]]>
It’s never black or white when it comes to ‘black money‘. In identical facts, relating to the same year, the same tax court took diametrically opposed positions for two members of the same family for their links with a Swiss bank account.

The cases relate to South Mumbai residents Dilip Thakkar, a reputable chartered accountant, and his wife Indira Thakkar whose father had set up an offshore trust with an account at HSBC Geneva — the private banking arm of the British bank which set up been in the eye of the storm for a decade, since cash-strapped sovereigns tried to get their hands on cash sitting in tax havens.

In the case of Dilip Thakkar, a reputable chartered accountant, the Mumbai Income Tax Appeal Tribunal, a quasi-judicial authority, upheld the decision of the Income Tax (IT) Department to reopen a old case. However, another bench in the same court has ruled that Ms Thakkar’s returns cannot be reopened as the deadline for any reassessments has long passed.

The IT department had reopened both files in 2015 for the 1999-2000 assessment year (ie the fiscal year beginning April 1, 1998). According to the tax office, the Thakkars had derived financial benefit from the maturity proceeds of the Resurgent India Bonds (RIBs) of the State Bank of India, which were foreign currency deposits launched in August 98 to woo NRI money with high interest yields. The Thakkars said the investments in the RIBs were made by the offshore trust set up by Indira Thakkar’s father. But according to the department, the overseas family trust was only a “disguised device to channel unaccounted money through the RIB channel” and that “the proceeds at maturity of RIBs do not constitute the corpus of the trust”.

For the dispute to reach closure in court, Thakkars’ tax returns for AY 1999-2000 must be reopened. But the Thakkars argued that this was not possible based on a verdict from the Delhi High Court (better known as the Brahm Dutt case), the analysis of which by both benches of the Mumbai’s ITAT led to divergent decisions.

The IT law was amended in 2012 to empower the tax authorities to go back and reopen completed tax notices (when assets hidden abroad have been detected) up to 16 years compared to six years for others taxpayers. However, the judicial interpretation (consistent with Brahm Dutt) of the amendment was that it could be invoked “prospectively” (not “retrospectively”). In other words, the law could only be used in cases that had not become “prescribed”. Thus, while information on foreign filings in 1999 was unearthed in 2015, reopening was not possible because the 1999-2000 assessment had reached its completion in 2006.

In the case of Indira Thakkar, the ITAT supported Brahm Dutt’s decision, describing it as the “binding precedent on the issue”. However, another bench of ITA Mumbai, delivering its decision two days later (February 16, 2022) on her husband Dilip Thakkar’s case, said the Delhi High Court failed to consider a key explanation under article 149 (of the amended computer law). ) which gives the law “retroactive” effect. According to the second interpretation of the ITAT, the department can go back to 1996-97 to reopen the old assessments.

When contacted by ET, Dilip Thakkar said: “The Hon Tribunal order in the case of my wife Mrs Indira D Thakkar was received by Speed ​​Post on 28th April 2022 and I am surprised that two divisional benches of the Hon Mumbai Tribunal gave conflicting opinions. judgments on the same issue, one agreeing with the decision of Hon Delhi HC which is a higher authority while another bench disagreed with it.

Decisions of the ITAT can be challenged in the High Court, particularly if there is a question of substance before the law. The power to reopen could mean tax claims and another long court battle between the Thakkars and the taxman. Many tax and legal experts would find out which way business is going.

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The Day – Lyme proposed consistent tax rate for fifth year https://berningcpa.com/the-day-lyme-proposed-consistent-tax-rate-for-fifth-year/ Fri, 29 Apr 2022 00:42:34 +0000 https://berningcpa.com/the-day-lyme-proposed-consistent-tax-rate-for-fifth-year/ Lyme — The Finance Council earlier this month approved a proposed $12.4 million budget for 2022-23, which will keep the tax rate at 19.95 mills for the fifth consecutive year. The budget proposal contains an increase of $1.43 million, or 13%, in expenditures over the previous year. “Lyme City does a good job of predicting […]]]>

Lyme — The Finance Council earlier this month approved a proposed $12.4 million budget for 2022-23, which will keep the tax rate at 19.95 mills for the fifth consecutive year.

The budget proposal contains an increase of $1.43 million, or 13%, in expenditures over the previous year.

“Lyme City does a good job of predicting eight to 10 years into the future. We like to look at the mill rate for current years, but also for years to come. We try to smooth out the impact on the taxpayer,” first coach Steve Mattson said.

The budget and mill rate aren’t final until residents vote at a town hall meeting set sometime after the school’s May 3 budget referendum. More details about the town hall will be posted on the town’s website, townlyme.org.

The proposed increase in spending is largely due to planned capital expenditures of $2.44 million, which includes public safety and road projects, to name a few.

“Our increase is due to two bridge replacement projects and will likely reach the construction phase this year,” Mattson said. The Birch Mill Road Bridge and Macintosh Road Bridge projects account for $1.41 million of the increase.

Funding for the Open Spaces Reserve Fund has increased by $323,000 in the proposed 2022-23 budget. Last year, the Finance Council dramatically reduced the fund’s allocation from $479,000 to $75,000 and halved the fund’s minimum target to $500,000. Residents opposed the move and in May last year voted to set a minimum target of $1 million in the fund and to replenish it in a timely manner after any property acquisitions.

The American Rescue Plan Act funds, which the city received to deal with the negative impacts of the COVID-19 pandemic, represent a $685,422 increase in capital expenditures.

Alan Sheinness, chairman of the finance council, said there is a plan for ARPA funds to go towards some of the city’s infrastructure needs, roadwork and to help organizations that have struggled during the pandemic. Mattson added that applications for ARPA funds are available for nonprofits negatively impacted by the pandemic, on the city’s website at townlyme.org/?s=arpa.

School budget costs for Region 18 are split between Lyme and Old Lyme, and each city’s share fluctuates based on the number of students from each city in the school system, which is calculated twice a year in April and October. . Lyme’s current share stands at 17.8% of the district’s student population, with the city’s total education spending projected at $5.92 million for 2022-23, a slight decrease of $77,311. dollars compared to last year.

The proposed total budget for Lyme-Old Lyme schools has a 0.13% decrease in spending, or $44,084 less than 2021-22.

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Clients left in the dark after not hearing from tax preparer, missing tax deadline https://berningcpa.com/clients-left-in-the-dark-after-not-hearing-from-tax-preparer-missing-tax-deadline/ Tue, 26 Apr 2022 22:28:00 +0000 https://berningcpa.com/clients-left-in-the-dark-after-not-hearing-from-tax-preparer-missing-tax-deadline/ LAMBERTVILLE, Mich. (WTVG) — A Monroe County tax preparer has left clients in the dark a week after the filing deadline expired. Last week, several people contacted 13abc and said they had not received their taxes from Bunch Accounting and Tax Services in Lambertville, Michigan. On the morning of Tax Day, April 18, 2022, dozens […]]]>

LAMBERTVILLE, Mich. (WTVG) — A Monroe County tax preparer has left clients in the dark a week after the filing deadline expired.

Last week, several people contacted 13abc and said they had not received their taxes from Bunch Accounting and Tax Services in Lambertville, Michigan. On the morning of Tax Day, April 18, 2022, dozens of people waited outside the Summerfield Road offices for landlord Brandi Bunch to finish the job.

“We’re left dry,” said Stephanie Bradner, a client at Bunch Accounting and Tax. “The doors are closed and everything is locked.”

Bradner said she took her and her husband’s taxes to Bunch in March and never heard back.

“We dropped them off and told him we were going on vacation and I would talk to him afterwards,” Bradner explained. “We can’t reach her. I call three, four times a day and I go to his office. Nothing.”

Bradner and her husband have been bringing their taxes to Bunch for three years and say they’ve never had a problem like this before.

When Bradner logged into her account and looked at the IRS website, she said it showed their taxes had never been filed for 2021.

“It’s probably everyone’s worst nightmare,” Bradner said. “You take your taxes to someone hoping they prepare them correctly and send them in, but on tax day we heard nothing.”

13abc was shut down by Bunch Accounting and Tax Services on April 18 after dozens of callers complaining that their taxes weren’t completed, and again on April 26, but no one was there. All attempts to reach Bunch by phone also went unanswered.

According to Brandi Bunch’s LinkedIn account, she has worked as an accountant for over nine years. The Bunch Accounting and Tax Services website also states that it “provides timely and accurate income tax preparation to individuals and small businesses” and “offers appointments six days a week.” .

Bradner says she hasn’t heard from Bunch in several weeks after repeatedly trying to reach her by phone and email.

“It’s shocking that she doesn’t even call back at this point,” she said. “That a secretary doesn’t even call back just makes me wonder what’s really going on and that’s scary.”

Several other clients tell 13abc that they have contacted the police to get involved in returning their tax documents.

“Most preparers and tax professionals have an ethical duty to return these documents,” said attorney Michael Dansack Jr., a partner at Gallon, Takacs & Boissoneault in Maumee.

Dansack suggests those with similar issues file a complaint with the IRS and continue trying to retrieve all tax documents.

“Filing an extension and going to a tax preparer or CPA, someone who could help you, would also be advisable,” Dansack added.

Until Bradner answered, she said she didn’t know what to do.

“At this point, just give me my documents back so I can move on,” she said. “All I want is my stuff back.”

13abc previously spoke with a secretary on Tax Day and learned that Bunch was unavailable for comment.

For more information on filing after the deadline, you can visit the IRS website.

See a spelling or grammatical error in our story? Please include the title when you Click here to report it.

Copyright 2022 WTVG. All rights reserved.

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Chandigarh: Bank found guilty of service deficiency : The Tribune India https://berningcpa.com/chandigarh-bank-found-guilty-of-service-deficiency-the-tribune-india/ Mon, 25 Apr 2022 05:11:00 +0000 https://berningcpa.com/chandigarh-bank-found-guilty-of-service-deficiency-the-tribune-india/ Tribune press service Ramkrishan Upadhyay Chandigarh, April 24 Depositing one consumer’s tax amount into another consumer’s tax account linked to a different PAN number was costly for Axis Bank. Holding the bank guilty of failure to service, the Consumer Dispute Redressal Commission, Chandigarh, ordered it to have the error rectified with the competent […]]]>


Tribune press service

Ramkrishan Upadhyay

Chandigarh, April 24

Depositing one consumer’s tax amount into another consumer’s tax account linked to a different PAN number was costly for Axis Bank.

Holding the bank guilty of failure to service, the Consumer Dispute Redressal Commission, Chandigarh, ordered it to have the error rectified with the competent authority within 45 days from the date of receipt of the certified copy of the order.

It was also ordered to pay lump sum compensation of Rs. 15,000 to the plaintiff for mental agony and physical harassment as well as court costs.

Dr. Rohit Bansal, a resident of Mani Majra, in a complaint to the commission, said he had a savings account with Axis Bank. An amount of Rs. 40,000 was debited from his account on 15th December 2016 in respect of recovery of advance payment at source for the tax year 2017-18. It was neither deposited in the tax account against his PAN number nor reflected in his tax deposit statement against the income tax account. Upon investigation, it was revealed that the amount had in fact been deposited into another income tax account linked to a different PAN number.

Despite repeated verbal and written requests, no action has been taken by the bank.

The bank pleaded that an amount of Rs. 40,000 as withholding tax was wrongfully deposited in an account linked to a different PAN number. After the error was brought to their notice, he requested the Commissioner of Income Tax to correct the entries and adjust Rs. 40,000 in the complainant’s PAN number. Arguing that there was no breach of service on his part, a request for dismissal of the complaint was made by the bank.

After hearing the arguments, the commission, made up of members Priti Malhotra and SK Sardana, found the bank guilty of deficient service.

The commission said the bank had deducted Rs. 40,000 from the plaintiff’s account towards withholding tax and wrongfully deposited it in another PAN account. Approached, the error has not been corrected by the bank so far, which in itself amounted to a service deficiency on its part.

The commission said that in view of this, the bank was requested to have the error rectified with the competent authority within 45 days from the date of receipt of the certified copy of this order. It was also ordered to pay lump sum compensation of Rs. 15,000 to the plaintiff for mental agony and physical harassment as well as court costs.

However, it is specified that in case the bank fails to have the error rectified by the competent authority within the given time, it should credit the amount of Rs. 40,000 to the complainant’s account together with interest applicable to the savings bank account from the date of its deduction until its payment apart from the reliefs above.

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Cedar Rapids prepares to restart paying hotel and motel taxes to nonprofits https://berningcpa.com/cedar-rapids-prepares-to-restart-paying-hotel-and-motel-taxes-to-nonprofits/ Fri, 22 Apr 2022 20:03:54 +0000 https://berningcpa.com/cedar-rapids-prepares-to-restart-paying-hotel-and-motel-taxes-to-nonprofits/ CEDAR RAPIDS — The City of Cedar Rapids is preparing to distribute revenue from an overnight hotel guest tax to local cultural, entertainment and recreation nonprofits, which will reinvigorate a source of funding that has not been offered since the start of the COVID -19 pandemic approximately two years ago. Before the pandemic, organizations that […]]]>

CEDAR RAPIDS — The City of Cedar Rapids is preparing to distribute revenue from an overnight hotel guest tax to local cultural, entertainment and recreation nonprofits, which will reinvigorate a source of funding that has not been offered since the start of the COVID -19 pandemic approximately two years ago.

Before the pandemic, organizations that received a share of the funds included the Cedar Rapids Museum of Art, Brucemore, Indian Creek Nature Center and the African American Museum of Iowa, among others.

Naturalist Emily Roediger leads a family bird workshop Aug. 5, 2020, at the Indian Creek Nature Center in Cedar Rapids. The nonprofit received $39,500 in hotel-motel tax benefits for fiscal year 2020. (The Gazette)

When eligible nonprofits apply to receive a share of the city’s hotel and motel tax revenue, likely beginning in June, they should expect to face different rules than in previous application rounds.

The Finance and Administrative Services Committee of the Cedar Rapids City Council ironed out the changes with city staff. Changes are expected to be brought to the board for a vote in May.

The city continued with these changes after the revenue stream was hit in 2020, as COVID-19 disrupted travel and caused temporary hotel closures, creating fiscal uncertainty over how much the city would make from the city. one night guest tax.

Cedar Rapids met its obligations for fiscal year 2020, the fiscal year that ended June 30, 2020 — a few months after the pandemic began. At that time, the city-owned DoubleTree by Hilton, the largest contributor to Cedar Rapids’ hotel-motel revenue stream, was closed due to COVID-19, but was nearing reopening in July 2020. But the city has suspended payments since then.

The new rules would shorten the grant cycle from three to two years to account for surprise events or operational changes that may occur during that time, and would require organizations to clearly state the service they provide to the public.

Organizations must demonstrate that the grant will not exceed 10% of their annual operating revenue, and the board will not give more than $50,000 each, as tax revenue is not intended to fund a group’s day-to-day operations.

With that cap, “you’re focusing on the things that really help these organizations achieve their goals,” CFO Casey Drew said.

Additionally, the rules require groups to maintain information about their board of directors on their websites. They will need to send a letter to the city by January 1 of each year they receive a grant, verifying that this information is publicly available.

City officials will select a few websites from time to time to verify that organizations have posted their councils’ information, Drew said, and if they are not in compliance, Cedar Rapids will halt funding.

The city has budgeted approximately $3.2 million in hotel-motel tax revenue for the 2023 fiscal year, which begins July 1 and ends June 30, 2023. Hotel-motel requests only occur when revenues exceed the city’s commitments which are also supported by the funding stream.

These commitments include debt payment, the Cedar Rapids Visitor Center (the main driver of overnight guests), the ImOn Ice Arena and a contribution to the Prospect Meadows baseball complex near Marion as part of a 10-year agreement.

Council member Scott Olson, a member of the finance committee, said many nonprofits have been able to recover some of the funding lost during the pandemic. Organizations applied for grants and forgivable loans from the federal Paycheck Protection Program, while reorganizing operations to keep the money flowing.

“We’re not going to use all the money we have with this new rule,” Olson said, and he thought it might expand the pool of candidates the city is able to fund.

“I want to see new bands that might apply for funds that we’ve never seen before and don’t know about and see if they’re eligible, but I think the rule you have here is that they have to tie into showing how they put people in hotel rooms, and I think that will limit the number of people who show up,” Olson added.

Previously, the council was able to allocate more than $1 million a year to local nonprofits after paying the city’s pledges. Before the pandemic, the city had budgeted $3.8 million in hotel-motel tax revenue for fiscal year 2021 and fell short by $1 million, at $2.8 million.

The committee also discussed the status of grant applications for a program the city created using federal stimulus funds from the American Rescue Plan Act to award up to $750,000 to organizations in nonprofit that lost hotel-motel tax revenue when Cedar Rapids suspended payments. Four groups have received funds so far since allocations began in February – Brucemore ($50,000), Hawkeye Downs ($50,000), Cedar Rapids Freedom Festival ($28,514) and The History Center ($35,000). $).

With a June 30 deadline for groups to apply for the special fund, $586,486 remains. Eligible nonprofits in this pool must demonstrate loss of revenue, even after accounting for grants and other funds received during the pandemic. The city must also ensure that it distributes the funds in accordance with US Treasury regulations and reporting requirements.

Committee members were generally supportive of exploring other ways to reallocate the remaining money.

“I don’t want that money sitting there,” Olson said. “It could be put to other uses through our ARPA grants. I think you did your best and gave everyone the chance to be creative, but I think we have strict rules here and give them a little more time, but then transfer that money to d other projects.

Comments: (319) 398-8494; marissa.payne@thegazette.com

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