Author: RBT CPAs

RBT CPA’s Kirstyn Cerone, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Kirstyn Cerone, CPA, of Montgomery, New York, has been admitted to the Firm as a Partner.

Kirstyn has been with the Firm since 2013, when she graduated Mount Saint Mary College with an Accounting degree and subsequently earned an MBA. Kirstyn works out of the Client Advisory Services Department in the Newburgh office. She is also Treasurer for the Business Council of Greater Montgomery and on the parent advisory board at the Children’s Hospital of Philadelphia for the spina bifida program. Kirstyn grew up in Montgomery, where she now resides with her husband Dave and son David.

Of her new role, Kirstyn says, “I am most excited about being able to play a leadership role in advancing the firm by helping our clients and my team develop, grow, and succeed.”

Managing Partner, Michael Turturro adds, “Kirstyn is one of the most genuine people you’ll ever meet. She is whole heartedly committed to treating her clients and team the way she wants to be treated and to going above and beyond to help them succeed. RBT is lucky to have her as a Partner and we can’t wait to see the amazing things she is going to do in the years ahead.”

RBT CPA’s Chris Seger, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Chris Seger, CPA, of Montgomery, New York, has been admitted to the Firm as a Partner.

Chris graduated from Coastal Carolina University with a bachelor’s degree in Accounting in 2014 and a master’s degree in Accounting with a focus on taxation in 2015. He joined RBT CPAs in 2015 as a member of the Client Advisory Services team in Newburgh, and earned his CPA in 2016.

Chris strives to make a difference in the local community. He is a board member of the New York State Society of CPAs Mid-Hudson Chapter and Walden Rotary member. Chris is also treasurer and a board member of Independent Living, Inc., which advocates and strives to provide the highest quality of life for all.

Chris was born in Lake Katrine and grew up in New Paltz. After moving south for college, he returned to the Hudson Valley, building a home in Montgomery with his wife Katrina and his children Harlow and Grayson. In his spare time, Chris enjoys working on home projects and cars.

He says, “RBT is a wonderful place to work. The firm is very client focused and makes client relationships the main priority. It is our goal to get to know our clients and support them in ways that allow us to see their businesses grow.”

Managing Partner, Michael Turturro adds, “Chris has a tremendous amount of energy and enthusiasm, which he puts into everything he does. I look forward to watching him grow as a leader and major contributor to our clients’ and company’s success.”

RBT CPA’s Kurtis Nordahl, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Kurtis Nordahl, CPA, of Modena, New York, has been admitted to the Firm as a Partner.

Kurtis has a bachelor’s degree in math, a bachelor’s degree in accounting and an MBA from SUNY New Paltz. He joined RBT in Client Advisory Services in the Newburgh office in 2012 and earned his CPA in 2014. Kurtis is currently treasurer of the local Southern Ulster Rotary. He also serves as treasurer for ARC of the Greater Hudson Valley and is on the finance committee for the Community Foundation of Orange and Sullivan.

Kurtis grew up in the Hudson Valley, where his father ran a small business and his two sons – Zakary and Lukas – currently attend the same school district he and his wife Ashley did growing up. In his free time, he enjoys long distance running and cross-country skiing, as well as being an active and involved dad.

He is excited to begin his new role at RBT and says, “We’re innovative. We listen to our clients and team members and try to implement change when we can. I also believe in our commitment to quality. You can get taxes done anywhere, but we really care about the work and getting it done right.”

Managing Partner, Michael Turturro adds, “Kurtis keeps his eye on the prize and works tirelessly to achieve what he sets his mind to. He will undoubtedly deliver a lot of value to our company, clients, and team in the years ahead.”

RBT CPA’s Nicholas Watkins, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Nicholas Watkins, CPA, of New Windsor, New York, has been admitted to the Firm as a Partner.

Nick graduated from SUNY New Paltz with an Accounting degree in 2013 and joined RBT CPAs’ Tax Department in the Newburgh office in 2015. Nick is on the local Board for the New York State Society of CPAs, serves as the group’s Secretary, and chairs the NextGen Committee. He is also President of the Mid-Hudson Bowling Association responsible for promoting the sport of bowling through leagues, tournaments, and fundraisers.

Nick grew up in the Hudson Valley. An avid bowler, you’ll likely find him at the lanes at least once a week or watching or attending a New York sporting event as a huge Mets, Jets, and Rangers fan. On becoming partner, Nick says, “A lot of people have helped me get to where I am, and I want to do the same for others – to help them get to the next level in their career.”

Managing Partner, Michael Turturro adds, “Nick is a focused, thoughtful, and tenacious professional who continuously delivers value to our team, clients, and firm. He is a welcome addition to our partnership. We know there are great things ahead for Nick and RBT.”

RBT CPA’s Rebecca Reynolds, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Rebecca Reynolds, CPA, of Highland, New York, has been admitted to the Firm as a Partner.

Rebecca has been with the Firm’s Audit Department in Newburgh since 2014, when she graduated Mount Saint Mary College with an Accounting degree and subsequently earned an MBA. Rebecca is on the SUNY Orange Foundation Board, as well as the Board of Community Foundations of the Hudson Valley where she also serves as an Audit Committee chair. She has been volunteering with the United Way of Orange-Dutchess for more than eight years.

Rebecca grew up in Ulster County, NY and continues to live in Highland with her husband Chris and their two dogs. Rebecca says, “I am most excited to work on and grow our Audit team in the Poughkeepsie office, where we’re building our practice and establishing a presence in Dutchess County.” She adds, “I think RBT is unique because we have the resources of a large firm thanks to our RSM alliance, but still have a tight knit family culture.”

Managing Partner, Michael Turturro says, “Rebecca is a welcome addition to our partnership team. Her professionalism, energy, and enthusiasm are contagious and will no doubt contribute to her continued success as a team leader and valued client resource. Congratulations, Rebecca!”

RBT CPA’s Thomas Zupan, CPA, Admitted to the Partnership

FOR IMMEDIATE RELEASE

RBT CPAs LLP, takes great pleasure in announcing that Thomas Zupan, CPA, of Highland, New York, has been admitted to the Firm as a Partner.

Tom graduated from Pace University with an MBA in 2014 and four years later earned his CPA license. He joined RBT CPAs right after graduation in the Newburgh office as part of the client services team, specializing in the construction industry.

Tom has been a volunteer member of the Modena Fire Department for 13 years, first as an active firefighter and later as treasurer – a role he still holds today. He was born and raised as part of a large family in Highland in Ulster County, where he currently resides with his wife Heather. He is an avid golfer, and baseball card collector and seller.

Tom says, “At RBT, our vision and goals are not just to be the compliance accountant who files required paperwork. We want to be the trusted business advisor that clients know they can depend on to add value and help them grow.”

Managing Partner, Michael Turturro adds, “Tom is a hardworking, trustworthy professional who has put a lot of time and effort into getting to know the construction industry so he can best use his education and license to help clients in this vertical succeed. I know we’re going to see a lot of great things from Tom in the years to come.”

IRS Delays 1099-K $600 Threshold for a Year

If you were worried about your business being inundated with 1099-K Forms this upcoming tax filing season, take note!

On December 23, the IRS announced third-party settlement organizations (TPSOs) “will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower $600 threshold amount enacted as part of the American Rescue Plan of 2021.”

Instead, the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect for 2022. This will give taxpayers and tax professionals additional time to understand the new reporting requirements and help ensure a smooth transition. The new threshold of $600 – regardless of the number of transactions – will apply to business transactions that occur January 1, 2023 or later.

So, if you accepted a business-related payment from a TPSO like eBay, PayPal, Venmo or Etsy in 2022, you will not receive a 1099-K from that TPSO for this upcoming tax season, unless aggregate payments were $20,000 or more from over 200 transactions. For 2023, you will receive a 1099-K from a TPSO totaling $600 or more; then, you will need to include it as part of your tax filings.

More information, with additional details – like what you should do if you already received a 1099-K based on the lower $600 threshold – should be forthcoming from the IRS soon. We will share that information as it becomes available. In the meantime, if you have any questions, please refer to the Q&As that follow or give RBT CPAs a call.

Q&As

What Is a 1099-K Form? The form, technically known as Form 1099-K Payment Card and Third-Party Network Transactions, is used to report payments your business receives from third-party settlement organizations (TPSOs) – like eBay, PayPal, Venmo, or Etsy – if those payments exceed certain thresholds. Any 1099-K you receive becomes part of your annual tax filings and considered taxable income.

What Changed? As part of the American Rescue Plan Act, the threshold for issuing 1099-Ks changed. Before 2022, a 1099-K was issued if over 200 transactions totaled more than $20,000. Starting in 2022, that threshold was reduced to $600, regardless of the total number of transactions. However, the IRS’ recent decision to delay the adoption of the $600 threshold until 2023 will give payees, accounting firms, and the IRS another year to prepare.

Who Is Impacted? In 2023, companies like PayPal, Venmo, Square, and Stripe will be sending you a 1099-K if you receive more than $600 in annual payments for goods or services rendered. As a result, if you sell small amounts of merchandise on selling platforms like eBay or Etsy, for example, you may find yourself responsible for increased taxes. Small or midsized business owners who receive most of their customer payments from credit cards, cash, or checks will most likely be unaffected.

What About Personal Transactions? The reporting requirements are limited to goods and services, so it won’t affect funds you receive for splitting that vacation rental or dinner with family or friends. Just be sure to keep accurate records when you are paying for personal items, so it isn’t incorrectly reported to the IRS.

What’s RBT’s Advice to You?

Start planning now: If you receive payments for goods or services through third-party networks, you may end up receiving a tax form for the first time for 2023. This is going to be an administrative burden and likely complicate your tax situation. It is best to be prepared and plan for any potential tax consequences by adopting strategies to minimize your tax bill early in the year.

Keep detailed records of income/expenses related to sales activity: If you sell goods or services and get paid through a third-party network, you may be eligible to deduct expenses related to that activity. Learn more by speaking with an RBT CPA professional.

It’s always good practice to consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your income tax return. As always, our team of professionals at RBT CPA’s is happy to help you navigate this and other IRS updates. Give us a call.

Year-End Is Too Late to Get Started on ASC 842 – The Time to Act Is Now

The new lease accounting standard – ACS 842 – took effect for private and non-profit organizations for fiscal years starting January 1, 2022 (or 2023 for non-calendar year-end entities). While that means at the earliest your organization must account for all leases on your financial statements by the end of this year, there’s a lot of work to be done to meet the new standards. If you haven’t started, now is the time. If you wait until year-end, it will probably be too late.

First, a number of departments/functions may be affected by the change. This includes accounting, tax, real estate, equipment leasing, procurement, treasury, information technology, and legal. Consider creating a task force with representation from all impacted areas to put together a project timeline and plan. Second, there are several activities you’ll need to complete, from policy development to data management and extraction to technology design, workflow, implementation, and more. So, if you haven’t already started, you need to catch up now. Waiting for year-end is not an option.

If you need a refresher or to get reacquainted with ACS 842, following is an overview (originally published by RBT CPAs in August 2021). As always, the RBT CPA professionals are available to answer any questions you may have and to support your tax and accounting needs. Give us a call.

As a part of daily operations, most contractors have leased vehicles, buildings, trucks, construction equipment or other items to keep costs down and business running smoothly. Did you know that, in a matter of months, your leases will be accounted for differently due to the new lease accounting standard? While previously only capital leases were recorded on the balance sheet, effective for fiscal years beginning after December 15, 2021, all leases will be on the balance sheet. That translates to January 1, 2022 for calendar year entities, and fiscal 2023 for non-calendar year end entities. What does this mean moving forward? It means contractors need to make sure they have a thorough handle on all of their leases. Now is the time to review and evaluate contracts.

The new definition of a lease under ASC 842: “a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.” This slight change means that all contracts should be evaluated to determine if they fall within the scope of this new criteria. Contracts that were previously considered leases may no longer meet the lease criteria and vice versa. Be mindful of lease language when you are reviewing your contracts.

There will still be two categories of leases. The leases formerly known as capital will now be called finance leases. The classification criteria remain essentially the same as under the existing standard; the only major difference is the elimination of the bright-line percentages. All leases that do not meet one of those criteria will be classified as operating.

If a lease contract includes a non-lease element, that non-lease component must be accounted for as a separate contract distinct from the lease itself. For example, the cost of an equipment lease that includes a maintenance contract must be allocated between the two elements and accounted for separately.

Lease liabilities for operating and finance leases will all be accounted for in the liability section the same way capital leases currently are: split between current and long-term. The offset to the liability will be a right of use (ROU) asset. There will be two lines: a ROU asset – operating lease line, and a ROU asset – finance lease line. These ROU assets are all long-term.

The new standard was designed so that there should be minimal impact to your income statement. Operating leases will continue to be recognized as a straight-line expense over the life of the lease. Finance leases will continue to be frontend loaded because the interest is higher at the beginning of the lease than at the end.

The most significant impact will be on the company’s current ratio. Because the ROU assets are all long-term but the lease liability is split between current and long-term, the current ratio will be negatively impacted. This change will be particularly important for entities with debt covenants that reference the current ratio. If you have significant operating leases that may create an issue with your debt covenants, connect with your bankers now and make sure that they are aware of the new standard.

Ultimately, it’s important that both the borrower and the lender understand that this is a reporting change, not a change in a company’s financial situation. Having this conversation early on instead of waiting until the last minute will avoid confusion, and a lot of headaches.

RBT CPAs and Sickler, Torchia, Allen & Churchill, CPAs Merge Effective July 1, 2022

FOR IMMEDIATE RELEASE

RBT CPAs, Inc. and Sickler, Torchia, Allen & Churchill CPAs – both leading accounting, auditing, consulting, and tax firms in the Hudson Valley – have merged their practices effective July 1, 2022, resulting in greater accessibility, depth of knowledge and expertise, state-of-the-art technology, and enhanced services for clients.

The two firms are very similar in size and culture, with each bringing something extra to the table. RBT CPAs’ expertise spans a broader spectrum of industries, while Sickler, Torchia, Allen & Churchill CPAs has a larger presence and reach in Lake Katrine (Ulster) and Hudson (Columbia), as well as the Capital Region, Metropolitan New York areas, and the Berkshires.

“We are really excited about bringing our two firms together to leverage our combined talents and reach to offer even more value to our customers,” said Mike Turturro, Managing Partner & CEO, RBT CPAs. “Customers will continue to receive the personalized services they are accustomed to, while benefiting from the enhanced capabilities our combined organizations can deliver.”

Sickler, Torchia, Allen & Churchill CPAs Managing Partner Craig Sickler said, “Culturally, our two organizations are a very strong fit. We both started and grew up in the Hudson Valley and have been able to retain the personalized service levels often associated with small firms, while offering the know-how and experience of larger firms.”

Michael Torchia, Partner, Sickler, Torchia, Allen & Churchill CPAs, added, “We are really excited about what this merger will mean to our clients, employees, and the communities where we live and operate. Our two organizations truly complement each other and will enable our new combined business to deliver even more value while maintaining the highest levels of personalized service.”

The combined organization will maintain their current locations, staff, fee structures, and client service teams. Mike Turturro said, “Over time, we look forward to bringing our organization’s enhanced capabilities to clients throughout the Hudson Valley and beyond to show why and how our two organizations are better together.”

About RBT CPAs and Sickler, Torchia, Allen & Churchill CPAs: RBT CPAs and Sickler, Torchia, Allen & Churchill CPAs is the Hudson Valley’s largest CPA firm. The company services clients in construction, education, employee benefits, government, health care, manufacturing, and more. The dedicated professional team is committed to providing outstanding, professional, personalized services with the highest levels of integrity. Learn more about its diverse offerings and award-winning service at RBTCPAs.com.

For Media Inquiries Contact:

Erin Blabac
Eblabac@rbtcpas.com
(845) 567-9000 Ext. 269

RBT CPAs Named One of the Best Places to Work in New York

For the 6^th consecutive year, RBT CPAs has been named one of the Best Places to Work by the New York State Society for Human Resources Management (NYS-SHRM) and Best Companies Group.

Businesses compete for a spot on the list based on a review of its business policies, practices, work environment, demographics, and the results of an employee engagement survey. RBT CPAs – a leading accounting, auditing, consulting, and tax firm in the Hudson Valley – ranked 11^th in the medium employer category, moving up one spot from last year. The company adds the award to a growing list of recognition, including the 2021 Forbes Best Tax Firms in America List; Reader’s Choice Best of the Best 2021 List; and others for best regional accounting firm and employer.

“We are thrilled to once again make the Best Places to Work in New York list,” says Managing Partner Mike Turturro. “We really do work hard to create a professional culture that fosters learning and growth. Every single RBT CPA employee makes an impact at work every single day, while being part of an organization that takes tremendous pride in being a valuable contributing member of the Hudson Valley community. We foster an open-door environment, where titles don’t matter. Instead, we focus our energies on working together to deliver excellence and exceed client expectations with every engagement.”

Winning a coveted spot on the list couldn’t occur at a better time, as RBT CPAs continues its annual recruitment process looking for future team members who will have the growth opportunity to become future partners. “We are growing across all fields and looking to expand our team with new talent looking to use their skills to contribute to RBT CPA’s and our clients’ success.” To learn about its workplace, culture, rewards, and job opportunities, visit RBT CPAs’ careers pages.

About RBT CPAs RBT CPAs LLP is one of the Hudson Valley’s largest CPA firm. The company services clients in construction, education, employee benefits, government, health care, manufacturing, and more. The dedicated professional RBT team is committed to providing outstanding service and prompt communication with clients. Learn more about its diverse offerings and award-winning service at RBTCPAs.com.