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Hertzbach at the 2015 HAND Annual Meeting

Posted by on Jun 23, 2015 | 0 comments

Hertzbach at the 2015 HAND Annual Meeting

Hertzbach’s Affordable Housing Team had a blast at the HAND Annual Meeting today! Hertzbach has over 35 years of experience serving the needs of the affordable housing community. Our firm is staffed by a highly skilled team of professionals who are dedicated to understanding of the unique accounting needs of the affordable housing industry. Contact us today at AffordableHousing@hertzbach.com to find out how we can assist you with our services and...

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Supreme Court Rules in Favor of Wynne:

Posted by on May 18, 2015 | 0 comments

Supreme Court Rules in Favor of Wynne:

Maryland Taxpayers to Begin Receiving Refunds on Previously Disallowed Out-of State Income Tax Credits The Supreme Court ruled against a Maryland law that disallowed a full credit to residents on the income taxes paid to other states. Maryland previously allowed a credit on income that was earned and taxed in another state, but the credit was only allowed to be claimed against Maryland state income tax and not against the local tax to counties.  The Supreme Court Justices, in a 5-4 decision, ruled that it was unconstitutional for Maryland to tax resident income that was earned elsewhere and already taxed because it interferes with the interstate commerce clause of the Constitution. For the past several years as the Wynne case made its way through the court system, many Maryland taxpayers have filed protective refund claims for the credit for taxes paid to other states against their local tax. Now that the Supreme Court has ruled in favor of Maryland taxpayers, these claims will be refunded along with interest at 3%. Hertzbach will be monitoring the situation and will post new information as it becomes available, including information on how refunds will be issued and how to file returns going forward to apply the new provision. If you have any questions, please call your Hertzbach Tax Advisor at 410-363-3200 or 800-899-3633. We look forward to speaking with...

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Maryland Tax Amnesty

Posted by on May 7, 2015 | 0 comments

Maryland Tax Amnesty

Maryland will hold a Tax Amnesty Program from September 1, 2015, through October 30, 2015. The program offers most taxpayers a waiver of all civil penalties (with exception to previously assessed fraud penalties) related to delinquent tax liabilities and 50% of levied interest through October 30, 2015, and bars criminal prosecution, except for charges already pending or under investigation. The waiver applies to non-reporting, underreporting and nonpayment of individual and corporate income tax, withholding tax, sales and use tax, and admissions and amusement tax liabilities for tax periods ending on or before December 31, 2014. The program requires full payment of all delinquent taxes and one-half of the interest on or before December 31, 2016. Taxpayers participating in the amnesty program will be required to file delinquent returns and pay tax plus one-half interest due on these and previously filed returns. The amnesty program will not apply to taxpayers who had been previously granted amnesty between in calendar years 1999 through 2014. For more information,  please call your Hertzbach Tax Advisor at 410.363.3200 or 800.899.3633. We look forward to speaking with...

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Tax Court considers house flipper’s expense deductions

Posted by on Apr 2, 2015 | 0 comments

Tax Court considers house flipper’s expense deductions

With many real estate markets on the rebound, real estate investors are resuming house flipping strategies to reap profits by,among other benefits, deducting large amounts of related expenses. But those expenses are deductible only if incurred in connection with a “trade or business.”And, as the taxpayer in the recent case of Ohana v. Commissioner learned the hard way, a trade or business requires more than just vague intentions to sell at some point. Read the full article in the March/April issue of Real Estate...

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Sign Up to Receive the Hertzbach Auto Advisor

Posted by on Apr 2, 2015 | 0 comments

Please click the image below to submit a request to receive our Auto Advisor Newsletter:

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Inventory Fraud: Knowledge is your first line of defense.

Posted by on Apr 2, 2015 | 0 comments

Inventory Fraud: Knowledge is your first line of defense.

Inventory is one of the biggest assets on a manufacturer’s balance sheet. It’s also one of the hardest assets to measure and track. Thousands of transactions flow through the inventory account each year — and many of these journal entries require subjective estimates, such as overhead allocations, write-offs and valuation adjustments. In addition, many employees have direct daily access to inventory or inventory accounting records, providing an ongoing temptation to steal or cook the books. Read the full article in the Spring 2015 issue of...

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Hertzbach Marketing Intern

Posted by on Mar 31, 2015 | 0 comments

Job Description Hertzbach & Company, P.A., a regional certified public accounting and consulting firm, is looking for a qualified summer intern to join our marketing/business development team. This internship would be based in Hertzbach’s Rockville, MD location and would require occasional travel to the other office locations (Arlington, VA and Owings Mills, MD.) We are seeking an intern that is energetic, a self-starter, and outgoing. The Marketing Intern should be prepared to work both independently and in a team environment. The Marketing Intern will finish the summer internship having gained broad experience in various aspects of marketing professional services and business development strategies.   Responsibilities Assist in the preparation and distribution of marketing materials Perform web research for new prospective clients Assist with building, maintaining and updating of mail and email lists Assist with mail and email marketing efforts Assist with various aspects of SalesForce®   Requirements The Marketing Department of Hertzbach & Company, P.A. is looking for an undergraduate student in the Metro D.C. area who is majoring in Marketing and/or Communications. This person should have excellent verbal and written communication skills, with a general knowledge of social media (Twitter, LinkedIn, and Facebook) as well as Microsoft Office (Word, Excel, PowerPoint, and Access.) Experience with Adobe (InDesign, Illustrator, and Photoshop) is a plus.   Preferred GPA: 3.0 or higher Preferred Graduation Year: Winter 2015 or Spring 2016 Contact: marketing@hertzbach.com with job inquiries. Please include a resume and cover...

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IRS provides relief from $100 a day penalty in Notice 2015-17

Posted by on Mar 20, 2015 | 0 comments

On Wednesday, February 18, the IRS released Notice 2015-17 which provides transitional relief from the $100 per day per employee penalty assessed under IRC §4980D for certain small employers.  Additionally the notice provides clarification related to health insurance arrangements for 2% shareholder-employees of S corporations and group health plans with only one plan participant. Transitional Relief for Small Employers Employer payment plans as defined in IRS Notice 2013-54 which fail to comply with market reforms related to group insurance will be subject to a $100 per day per employee penalty under IRC §4980D.  Notice 2015-17 provides relief from this penalty for small employers defined as an employer who has an average of less than 50 full-time employee (including full-time equivalent employees.  The relief provides that no penalty will be assessed on small employers for 2014 or the first 6 months of 2015.  Unless further relief is granted, employers will be subject to the penalty beginning July 1, 2015. Employers qualifying for relief will not be required to file IRS Form 8928 for the periods such relief is available. Since this relief only extends to June 30, 2015, employers with group health plans not currently in compliance with the market reforms should take the necessary steps now to bring their plans into compliance. Note, this relief is not applicable to stand-alone Health Reimbursement Arrangements or other arrangements to reimburse employees for medical expenses other than insurance premiums. 2% Shareholder-Employees in S-Corporations  The IRS is considering issuing additional guidance on the application of the market reforms to group health plans under the Affordable Care Act which include 2% shareholder-employee healthcare arrangements (S corporation pays for or reimburses health insurance premiums for 2% shareholder-employee).  Until such guidance is provided, Notice 2015-17 provides a group health plan will not be subject to the $100 per day penalty solely because the plan includes a 2% shareholder-employee healthcare arrangement. Accordingly, S Corporation employers may continue to treat health insurance premiums paid or reimbursed for a 2% shareholder as box 1 income on Form W-2 (not subject to FICA or Medicare taxes), under prior IRS guidance and shareholders will continue to be allowed a deduction for AGI on their individual tax return (assuming all other deduction requirements are met). Group health plans with only one participant Notice 2015-17 confirms that market reforms do not apply to health plans with fewer than two plan participants who are current employees on the first day of the plan year.  Therefore, an employer that covers only one employee (whether or not this is an owner), will not be subject to penalty under §4980D. The IRS has also clarified that a current 2% shareholder employee is considered an employee for purposes of determining whether a health plan as two or more plan participants.  This applies even though the 2% shareholder-employee healthcare arrangement is not currently subject to the market reforms as outlined above.  For additional information:  June 2014 Blog – Employers Cannot Reimburse Individual Health Care Policies on a Pretax Basis IRS FAQ – Employer Health Care Arrangements Notice 2015-17 Notice 2013-54    ...

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Hertzbach: One of the 5 largest accounting firms in the Baltimore area

Posted by on Feb 10, 2015 | 0 comments

Hertzbach: One of the 5 largest accounting firms in the Baltimore area

This week’s Baltimore Business Journal “List” ranks accounting firms by the number of CPA’s working in Baltimore-area offices. Hertzbach is #5 with our local number of CPA’s at 80…and growing!  Click here to read more on the Baltimore Business Journal website. 

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New Partner Announcement: Travis B. Daniel, CPA

Posted by on Feb 2, 2015 | 0 comments

New Partner Announcement: Travis B. Daniel, CPA

Hertzbach & Company, P.A. is pleased to announce that Travis B. Daniel, CPA is now a partner of the firm. Mr. Daniel joined Hertzbach & Company, P.A. in 2002. He is a graduate of Frostburg State University with a B.S. in Accounting. He has also earned his M.B.A. from Loyola College and is a certified public accountant in Maryland. Mr. Daniel is a partner in Hertzbach’s Real Estate Group and specializes in assisting clients with tax planning and compliance for entities taxed as corporations and partnerships. Mr. Daniel is also involved in the areas of accounting methods, real estate transactions, reorganization and entity structuring. He concentrates his practice in real estate, construction, developers and Section 42 low-income housing tax credits. Connect with Travis on...

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