MA DOR Third Party Access to Taxpayer’s Paid Family and Medical Leave Account

Because taxpayers must specifically authorize all 3rd party access to their accounts, DOR did not automatically grant 3rd party access to PFML accounts.  Third parties can request access to the new PFML account through MassTaxConnect. After logging in, choose Settings (upper right), then choose “Request to manage other taxpayers’ accounts” under I Want To and follow the prompts to request access.  The third party can choose whether the taxpayer will authorize access through MTC or by signing paper authorization form.

Understanding Paid Preparer Due Diligence Requirements

This is a FREE IRS Webinar and is not sponsored by the Massachusetts/Rhode Island Chapter of NATP.

Thursday, January 16, 2020

1 p.m. Eastern
12 p.m. Central
11 a.m. Mountain
10 a.m. Pacific
9 a.m. Alaska

This free 120-minute webinar is open to ALL

This webinar will cover the following:

• Tax Cuts and Jobs Act refundable credits due diligence requirements
• Tax identification number requirements for CTC/ACTC/ODC and head of household filing status
• Client’s tax return preparation-when to ask for documents
• IRS Due Diligence compliance activities
• Preparer Due Diligence Resources
• Plus, a live Q & A

Click here to Register for the Webinar

Tax Professionals – Earn 2 CE Credit – Category: Federal Tax

Important Update for 2021 Tax Planning - Charitable Contributions in MA

William Delaney, EA
Westwood, MA

In 2002, responding to a ballot initiative, the MA legislature included a provision in HR5250 (Chapter 186, Acts of 2002) which phased-in a gradual reduction in the personal income tax rate.  As we all know, the new rate for 2020 will be 5%.  This is because of the ballot initiative enacted into state tax law many years ago.

At the same time, Section 9 of the Act removed the deduction for charitable contributions but provided that it would eventually be restored (“…no such deduction shall be allowed in any taxable year unless the rate of tax on Part B taxable income in section 4 in the prior taxable year was equal to 5 per cent;).  So, by inserting this back-door approach, the state deduction for charitable contributions has now been restored, effective with tax year 2021 (tax rate in prior year [2020] was equal to 5%).

There are two notable deviations from what is allowed under IRC Sec. 170.  MA will NOT allow a deduction for contributions of “…household goods or used clothing…”
Second, and by far the most important to us, “…for purposes of determining the amount of the deduction under this subparagraph…taxpayers shall not be required to itemize their deductions in their federal income tax returns.”

So, we will be back to obtaining a list of charitable contributions going forward, even though our taxpayers take the federal standard deduction.  If your memory goes back to 2001, you will remember that we had this deduction for a single year and there were quite a few state correspondence audits.  A word to the wise---documentation and proofs are essential.

Happy 25th Anniversary to Our Chapter!!

The Massachusetts/Rhode Island Chapter is celebrating 25 years in 2020!! We would like to thank all of our members, especially our founding members, for keeping our chapter running for the past 25 years.

We look forward to seeing you at our educational seminars this coming year.

Stay tuned for more celebration details throughout the year!

Massachusetts / Rhode Island NATP Chapter Annual State Update Seminar - January 9th 2020 - NEXT WEEK!!

Massachusetts / Rhode Island NATP Chapter Annual State Update Seminar - January 9th 2020

Join the Massachusetts / Rhode Island NATP Chapter on Thursday, January 9th, 2020 for our Annual State Update Seminar. This all day event will be held at the Southbridge Hotel & Conference Center, Southbridge MA. Registration details are below, and are handled online directly by National NATP. A link to the registration website is listed below. Please take a look at the details on our speakers and topics provided in this great update opportunity including continental breakfast, snacks, lunch, vendors and great networking opportunities PLUS even 2 CE Credit Hours. Registration is from 7:30am to 8:30am & Education is from 8:30am to 4:30pm.

• Register online with credit card.
• For more information or to register by phone, fax or mail, use this form.
• After January 8th, please register at the door with the form above.

If you are planning to stay at the hotel, we have secured a room rate of $99/night. The reservations can be made here.

Topics:

Massachusetts State Tax Update presented by Massachusetts Department of Revenue.

Rhode Island State Tax Update presented by Rhode Island Division of Taxation.

Connecticut State Tax update presented by Sharon Cummings.

New York State Tax Update presented by Kathryn Keane of New York NATP Chapter.

Federal Tax Update presented by Kathryn Keane of New York NATP Chapter. (2 Hours of CE Credits)

Featured Speaker - Kathryn M. Keane, EA.

Kathryn is a principal of Macanta, a small tax and related services practice located in Brooklyn, NY, serving over 850 individual clients and 50 businesses. In December 2006, Kathryn completed two three-year terms on the National Board of Directors of NATP and was twice awarded Chapter Person of the Year for 2002 and 2008 for her volunteer service to the community at large as well as to NATP. In addition to serving as an Education Committee member for NY NATP, she currently serves as Chair of the IRS Tri-Boro Practitioner Liaison Committee. Kathryn is a frequent speaker for NATP Chapters. She has also presented for VASEA, NCCPAC (Nassau-Suffolk County Chapter) and local chapters of NYSSCPA. Kathryn has a B.S. degree from Brooklyn College.

Reminder: RI Health Coverage Mandate Starts Today

All Rhode Islanders must have qualifying health coverage beginning January 1, 2020. Failure to have such "minimum essential coverage" in 2020 may result in a Rhode Island personal income tax penalty in 2021. So now is the time to plan ahead.

Most people have minimum essential coverage (through employer-sponsored health insurance, Medicaid, Medicare, TRICARE, or some other means) and will not have to pay the penalty. Rhode Island residents who don't have such coverage can enroll in new health insurance or renew their health insurance through Rhode Island's health insurance exchange -- HealthSource RI. 

For more information, including details about the current open enrollment period and about how eligible Rhode Islanders can receive financial assistance to lower the cost of health insurance, see https://healthsourceri.com/.

Chapter President's Message

Ronald Fisher, President

Massachusetts/Rhode Island Chapter

Wow, that year certainly flew by. 

In January, 2020 I will begin my second year as your NATP MA/RI Chapter President.  I am so fortunate to work with such a great and dedicated group of board members.  Their support during my transition to President has been awesome.  I have certainly learned from the best and follow a long line of strong leaders.

The coming year brings with it a special anniversary.  The board and I are beyond proud to announce the MA/RI NATP Chapter’s 25th year of service and we look forward to many more successful years to follow.  This accomplishment could not have been achieved without the support of you, our loyal members.  So, a big THANK YOU is in order and please join us in celebrating this achievement.

Being re-elected made me stop and once again take a look at everything this organization has to offer.  It also caused me to reflect on this past 2018 tax season.  Like many of you, I was concerned with all the tax changes that we had to deal with.  In this regard, membership in this chapter in 2019 was more valuable than ever before.  This past year provided me the opportunity to meet with and establish relationships with many members and to fully appreciate the incredible dedication of our membership.  The wealth of knowledge that is shared among us is amazing and if you’re a one-man firm like me, having access to professional tax contacts who are all there for each other is invaluable.

As we all begin yet another tax season, I want to personally thank every member for their membership and support.  My hope is that all of you will attend our upcoming seminars in 2020 and make the most of your membership investment.  You will not be disappointed with the programs we have planned.  I’ll be there and please be sure to introduce yourself.  Be sure to check our website for information on and to register for the seminars: http://www.massrinatp.org/.

Lastly, should you have any questions regarding the chapter or just want to share your thoughts or ideas or want to know how you can get involved as a board member, please contact me at 508-735-6607 or at rfishertax@aol.com.