News (All) - Page 16 of 164 - Campolo, Middleton & McCormick, LLP

Does Your Business Use Third-Party Payment Apps? What You Need to Know About the Changes to IRS Form 1099-K

Posted: January 17th, 2023

Many small businesses often use third-party payment processors such as PayPal, CashApp, or Venmo to facilitate a frictionless payment experience for goods and services that can be made right from a customer’s smartphone. However, due to recent changes in the law, anyone who receives $600.00 or more as payment for goods and services using any of these payment apps can expect to receive a Form 1099-K.

Form 1099-K, Payment Card and Third Party Network Transactions, is a federal informational tax form used to report payments for goods and services to the Internal Revenue Service (“IRS”). Organizations that facilitate these payments, like debit or credit card companies, PayPal, Venmo, and others, are required by law to file Form 1099-K with the IRS and send copies of them to the payment recipient. The Form 1099-K may include amounts considered to be both included and/or excluded from gross income for federal tax purposes.

Previously, the IRS only required this level of reporting if payments exceeded $20,000.00 or more and over 200 transactions were completed during the year. While that reporting is still required, the new lower tax reporting requirement is a result of a change to the tax code in the American Rescue Plan Act, the $1.9 trillion stimulus package passed by Congress and signed into law March 2021. Beginning January 1, 2023, a payment settlement entity (“PSE”) such as Venmo is required to file and send its users a Form 1099-K for transactions made during the 2023 tax year. A PSE is defined by the IRS as “a domestic or foreign entity that…has the contractual obligation to make payment to participating payees in settlement of payment card transactions.”

The IRS said these changes also extend to people who sell items on internet auction sites such as eBay, and even people who run a “craft business” if they accept credit card payments through these apps. To comply with the new requirements, PayPal and Venmo have offered its users a way to tag their peer-to-peer transactions as either (1) personal, for friends and family, or (2) for Goods and Services. For example, users should select the appropriate category of “Goods and Services” whenever they are sending money to another user to purchase an item or paying for a service.

According to the IRS, these PSEs must then file the Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year, which will then be sent to applicable individuals for income received through electronic forms of payments. PSEs may also request additional information from payment recipients, such as an Employment Identification Number (EIN) or Social Security Number (SSN) to properly report transactions on the Form 1099-K. If any of the payments are incorrectly labelled, payment recipients can contact the PSE directly for assistance. For instance, if the payment recipient reports their business income on a Form 1120, 1120S or 1065 and receives a Form 1099-K in their personal name as an individual (showing a SSN), contact the PSE listed on the Form 1099-K to request a corrected Form 1099-K showing the business’s EIN.

Recently, the IRS announced that calendar year 2022 will now be regarded as a transition period for purposes of IRS enforcement and administration of the third party network transactions. As a result of this delay, third-party settlement organizations 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, payment recipients will be required to report such earnings for the 2023 tax year during the 2024 tax season. To issue the Form 1099-K by mail or electronically by January 31, 2024, all tax information should be confirmed with the PSE by December 31, 2023. The sooner the confirmation, the sooner the payment recipient will be able to send, spend, and withdraw money from any payments that might be on hold.

With the new reporting requirements approaching, it is important for payment recipients to keep accurate records, such as receipts and bank statements, and be prepared to determine whether the information reflected on the Form 1099-K is taxable or non-taxable income.

This article is for informational purposes only. For tax advice or guidance, please consult your accountant directly.

Please contact us with any questions.

For additional information, please consult these sources:

https://help.venmo.com/hc/en-us/articles/4407389460499-2022-Tax-FAQ

https://www.irs.gov/forms-pubs/about-form-1099-k

https://www.irs.gov/instructions/i1099k

https://content.govdelivery.com/accounts/USIRS/bulletins/33f1ba9?reqfrom=share/

https://www.irs.gov/pub/irs-drop/n-2023-10.pdf

https://www.forbes.com/advisor/taxes/cash-apps-to-report-payments-of-600-or-more/

https://www.nbcnews.com/news/venmo-paypal-zelle-must-report-600-transactions-irs-rcna11260

CMM’s Jeffrey Basso Highlighted in LIBN Who’s Who: Labor Law

Jeffrey Basso is a partner at Campolo, Middleton, & McCormick, LLP (CMM) where he represents business owners, corporations, corporate officers, shareholders, and investors in a variety of litigation matters in state and federal court involving employment, business, and contractual disputes. Basso was selected as one of thirteen attorneys to be featured in LIBN’s Who’s Who Labor Law special edition publication.

Basso has experience prosecuting and defending matters on behalf of clients in actions involving employment contracts, non-compete agreements, trade secrets, fiduciary duty, breach of contract, hour and wage disputes, real estate transactions, investments, and construction matters.

His successful track record in the labor law arena spans numerous industries. Recent representative matters include the defense of a Long Island metal fabrication company in a hostile workplace/discrimination lawsuit (resulting in the dismissal of all claims) and the defense of a large catering company in a wage and retaliation dispute (resulting in the court’s refusal to reinstate the former employees).

As business owners enter 2023, Basso advises they have a procedure in place for documenting poor work performance, insubordination, and other employee misconduct to minimize issues if and when an employee is terminated.

“Too many times, employers make the critical mistake of not documenting instances of poor performance and other issues with their employees,” he said. “Then, if the employee is terminated, litigation often ensues over claims of wrongful termination, retaliation and other related claims, which can be extremely costly and damaging to business owners. “

“If the employer has a procedure in place and documents the employee’s history of poor performance or other misconduct, these claims can often be extinguished before they get started,” Basso said.

Basso is also experienced in representing clients in business divorce matters, including the negotiation of creative strategies to divide assets, as well as business divorce litigation. His litigation practice also includes appellate work.

He earned a bachelor’s degree from the University of Delaware and a juris doctor from St. John’s University School of Law.

He is admitted to practice in New York State and before the United States District Court, Southern District of New York and the United States District Court, Eastern District of New York.

View the full Who’s Who book here.

Legal Brief: Solar & Aerospace deals and more firm highlights

Posted: January 12th, 2023

CMM Announces Three Senior-Level Promotions

Posted: January 11th, 2023

Campolo, Middleton & McCormick, LLP is delighted to announce that Lauren Kanter-Lawrence and Nancy Conte have been promoted to Vice Presidents and Kathleen DiLieto has been promoted to Controller, effective January 1, 2023. These senior-level promotions highlight the firm’s role as a destination for top talent in professional services.

As Vice President, Lauren Kanter-Lawrence, Esq. is responsible for CMM’s recruitment, training, marketing and communications, and business development efforts. She creates and implements programs that support the development and retention of the firm’s professionals, spearheads all staffing and talent matters, and oversees CMM’s in-house training programs. She also works closely with the Managing Partner on critical economic development initiatives to help Long Island grow. A graduate of Cornell University and Pace Law School, she joined the firm in 2008 as an attorney and has served as Director of Communications and Talent.

Nancy Conte has been promoted to Vice President of the Strata Alliance, a first-of-its-kind service that manages, connects, and aligns professional service providers working together for business owners and high-net-worth families. She plays a critical role in ensuring that clients have access to premier service providers covering all their needs. Bringing significant operational experience to her new role, Conte ensures that Strata has the resources to provide a superior client experience. In addition to her work with Strata, Conte also oversees the operations at CMM and other strategic business partners. She graduated from Stony Brook University and previously served as Strata’s Director of Operations.

Kathleen DiLieto, CPA, has been promoted from Assistant Controller to Controller. Now head of the accounting department, DiLieto is responsible for all financial reporting, budgeting and forecasting, general accounting, cash and treasury management, internal control assessments, accounts receivable and accounts payable. A CPA with her Accounting degree from St. Joseph’s College, DiLieto has over 20 years of experience in both public accounting and private industry. Her public and private sector experience enables her to analyze issues from all critical angles and work with firm leadership to effectively plan for the future.

Please join us in congratulating them!

CMM’s Arthur Yermash Highlighted in LIBN Who’s Who: Commercial & Residential Real Estate Law

Tags: real estate

Arthur Yermash is a partner at Campolo, Middleton & McCormick, LLP (CMM), where he leads the firm’s commercial leasing practice. Arthur was selected as one of only thirteen attorneys to be featured in LIBN’s Who’s Who Commercial & Real Estate Law special edition publication.

Yermash developed the strategy for the renegotiation of nearly 1,000 commercial leases nationwide for a major retailer in the early days of the pandemic, a critical hands-on role that ultimately saved the client significant money and gave them the ability to adapt their business plan for unprecedented circumstances. This tenant-side work, coupled with his experience negotiating a wide range of commercial leasing transactions on behalf of landlords, enables Yermash to negotiate creative and effective solutions to lease disputes.

Yermash’s leasing work spans office leases, ground leases, master leases, sub-leases, triple-net leases, and sale-lease-back throughout Long Island, New York City, and throughout the country. He also helps clients navigate the purchase and sale of commercial real estate throughout the region.

“One of the biggest concerns about commercial real estate for 2023 is the expected continued growth of interest rates,” Yermash said.

“Many buyers, sellers and developers rely on financing for acquisition and development projects,” he said. “As interest rates increase, so do the costs of property and construction. While this may result in lower prices on commercial real estate, the great cost of financing is likely to have a cooling effect on property changing hands, as well as the number of development projects that take place.”

“While some indicators suggest that the speed at which interest rate increase could slow in 2023, it is critical to keep a close eye on how this develops,” Yermash said.

For over a decade, Yermash has also worked with CMM’s corporate department directly supporting the general counsel and full legal and business teams for a national retailer, serving as their go-to resource and primary outside counsel on an extraordinarily wide range of business and employment matters. He has also represented Long Island and NYC companies in countless business-related matters and transactions from the routine to the complex. These roles have enabled Yermash to develop deep experience advising corporate clients on all aspects of their businesses.

View the full Who’s Who book here.

2023 Changes to New York State Paid Family Leave

Posted: December 27th, 2022

Tags: labor & employment

Beginning January 1, 2023, the amount of weekly benefits and eligible family members under the New York State Paid Family Leave Act (PFLA) will change. The PFLA, which took effect in 2018, provides eligible employees with up to 12 weeks of job-protected, paid time off to bond with a child, care for a sick family member, or assist family when a service member is deployed abroad. The time can be taken all at once or in increments of full days.

Currently, the list of family members for whom eligible workers can take Paid Family Leave to care for includes spouses, domestic partners, children, step-children, parents, step-parents, parent-in-laws, grandparents, and grandchildren. These family members can live outside of New York State, and even outside of the country. Under the new changes, this list will be expanded to include biological siblings, adopted siblings, stepsiblings, and half-siblings.

Employees taking Paid Family Leave receive 67% of their average weekly wage, up to a cap of 67% of the current New York State Average Weekly Wage (NYSAWW). For 2023, the NYSAWW is $1,688.19, which means the maximum weekly benefit is $1,131.08. This is $62.72 more than the maximum weekly benefit for 2022.

New York State Paid Family Leave is essentially a type of insurance that may be funded by employees through payroll deductions. Although benefits are expanding to cover more family members this upcoming year, the contribution rate has gone down. For 2023, employees will contribute 0.455% of their gross wages per pay period. The maximum annual contribution for 2023 is $399.43, being $24.28 less than 2022. Employees earning less than the current NYSAWW of $1,688.19 will contribute less than the annual cap of $399.43, consistent with their actual wages.

Employers should confirm their 2023 Paid Family Leave premiums with their insurance carriers and coordinate with their payroll providers to make sure that the 2023 payroll will include the correct contribution rates. Written employment policy documents will also need to be updated if they include the specific PFLA benefit or deduction levels.

If you have questions about the PFLA, please contact us.

Vincent Costa and David Green Named CMM Partners

Posted: December 19th, 2022

Campolo, Middleton & McCormick, LLP is delighted to announce that attorneys Vincent Costa and David Green have been elevated to Partners at the firm, effective January 1, 2023.

Vincent Costa is a corporate lawyer with a focus on complex M&A transactions. Working with large corporations and high-net-worth individuals, he has closed countless M&A deals worth billions of dollars. He has successfully negotiated and led the CMM team on a variety of complex corporate matters including business divorces, buy-side and sell-side mergers and acquisitions (asset and stock purchases and sales), and financings, with particular experience in the healthcare, retail, construction, manufacturing, and technology sectors. Serving as the liaison among all the advisors and professional service providers involved in a deal, Costa has an eye for seeing how all the puzzle pieces fit together. By collaborating with clients’ teams of financial advisors, accountants, and M&A advisors, he works to achieve a smooth transaction for the benefit of the client.

Costa joined CMM in 2014 and worked his way up to Associate and Senior Associate before being named Partner. He graduated from Stony Brook University and Touro College – Jacob D. Fuchsberg Law Center. He lives in Sayville with his wife and two young sons.

David Green, based in our Westbury office, represents all types of businesses and individuals in various areas of litigation. He achieves results for his clients by utilizing all available legal strategies to help them navigate a complicated legal system. Green has spent many years in courthouses successfully fighting for his clients. His experience includes complex discovery, trials, appeals, securing settlements, and alternative dispute resolution. His unique background allows him to successfully represent companies and individuals in a wide range of industries including technology, publishing, fashion, import/export, construction and development, education, transportation, and healthcare. Green’s experience inside and outside the courtroom allows him to craft creative and effective solutions that help his clients save critical time and resources.

Also a Trustee of the Sea Cliff Village Library, Green joined CMM in 2018 as an Associate. He was promoted to Senior Associate in 2020 before being named Partner. He graduated from the University of Delaware and the University of Miami, School of Law. Green lives in Sea Cliff with his wife and three sons.

Costa and Green’s elevation to Partner is a milestone professional achievement for them and the firm. We are so pleased to congratulate them!

CMM Closes Sale of Northeast Aero Compressor to Leading Designer of Aerospace Parts and Repair Services

Posted: December 2nd, 2022

Even in the post-Grumman era, Long Island continues to be a world leader in the aerospace industry. Campolo, Middleton & McCormick represents several clients in this space and has guided them all the way through from when they launched their businesses through landing very lucrative and successful exits. CMM recently facilitated a multi-million-dollar stock purchase transaction for our client Northeast Aero Compressor (NEACO), a leading aerospace repair business. The acquisition was made by Jet Parts Engineering, a leading designer of proprietary OEM-alternative parts and repair services for the commercial aerospace industry and a portfolio company of Vance Street Capital.

CMM’s Donald Rassiger led the transaction team with significant support from Vincent Costa and paralegal Cailey McByrne. The team worked with Managing Partner Alan Sasserath of Sasserath & Co. CPAs to close the deal.

View the press release below or here.

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JET PARTS ENGINEERING ACQUIRES NORTHEAST AERO COMPRESSOR
November 30, 2022 | Source: Jet Parts Engineering

Seattle, WA – Jet Parts Engineering (JPE), a leading PMA parts and engineered repairs provider, today announced the acquisition of Northeast Aero Compressor (NEACO), a certified 145 repair station and industry leader specializing in the maintenance of complex pneumatic, hydraulic, fuel, and electro-mechanical systems while incorporating DER repair and PMA capabilities.

The acquisition of NEACO by JPE creates a diversified leader in PMA parts, DER repairs, and component repair/overhaul capabilities to offer a broad array of aftermarket services to their commercial, cargo, regional and military aircraft customers. JPE plans to invest significantly in NEACO’s Bohemia, NY facility to expand their technical resources and meet high market demands for aftermarket repairs.

“Jet Parts Engineering is thrilled to partner with NEACO and continue to deliver high quality solutions in the aftermarket. Linda and Mike Gibson have built a terrific team,” said Anu Goel, CEO of Jet Parts Engineering. “NEACO is a huge opportunity to add a highly complementary portfolio of component repairs to our existing PMA and DER offerings.”

NEACO was founded in 1989 with the mission of becoming a preeminent aerospace industry leader. For over three decades, NEACO has remained dedicated to continually building a knowledge base and new aviation capabilities. The team at NEACO have rigorously reviewed and audited their procedures over the years, ensuring their fast and accurate service exceeds the expectations set by their customers and the FAA.

The transaction was overseen by Vance Street Capital, a middle-market private equity firm focused on investing in highly engineered solutions businesses across the aerospace and defense, industrial, and medical markets. JPE is a Vance Street Capital portfolio company.

“The Gibson family built a valuable business founded on the principles that Vance Street prioritizes in all investments: customer-first attitude, high quality standards and humility,” said Nic Janneck, Partner at Vance Street. “We are excited to continue to support the JPE team on their fourth add-on under Vance Street ownership.”

Campolo Moderates HIA-LI Annual Meeting & Legislative Program

Posted: November 30th, 2022

Event Date: January 13th, 2023

Joe Campolo will moderate the HIA-LI 45th Annual Meeting and Legislative Program on Friday, January 13, 2023. The event will be held at The Radisson Hotel in Hauppauge from 8:00am – 10:30am. Hear from your local and state representatives while you learn about Long Island business initiatives and the 2023 economic forecast.

Click here for more information and to register for the event.