February 2019 E-Newsletter



Anthony Viola Quoted in Newsday

Anthony Viola, CPA and Partner with KVLSM LLP, was recently quoted in the Newsday article "Do these 3 things if you want the IRS to audit you."

To read the article, click here.

Anthony Viola Quoted in FitSmallBusiness

Mr. Viola was recently quoted in the FitSmallBusiness article "Top 27 Business Tax Saving Tips from the Pros."

To read the article, click here.

Eliot Lebenhart Interviewed for NYSSCPA Newsletter

Eliot Lebenhart, CPA and Partner with KVLSM LLP, was recently interviewed for the "Committee Spotlight: Practice Continuity & Succession Planning" article in the January 2019 issue of the New York State Society of Certified Public Accountants (NYSSCPA) newsletter for the Nassau Chapter.

To read the article, click here.


IRS Waives Penalty for Many Whose Tax Withholding and Estimated Tax Payments Fell Short in 2018
The Internal Revenue Service announced that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.

Be Prepared
Your accounting professional is only as good as the information you provide. So, if you want to find all the deductions and credits you're entitled to, it pays to come prepared when you two meet.

And The Magic Number Is?
Most retirees face the same choices when nearing retirement: Do they take early Social Security payments, which will be smaller but received over more years? Or will they wait and begin payments between normal retirement age and 70, which would mean larger payments over a shorter time?

When Fixed Annuities Make Sense
If you're risk-averse, are concerned that investments in stock or bond mutual funds may lose principal or you're looking for some guarantees in retirement, a fixed annuity* may be one answer.


  • Income Tax Preparation for all types of businesses and individuals
  • IRS, State and Local Audit Representation
  • Trust, Estate and Gift Compliance
  • QuickBooks setup, support and training
  • Business startup services
  • Monthly bookkeeping
  • Financial statements
  • Family Office
  • Nonprofit Administration

Additional Updated Information

January 2019 E-Newsletter

December 2018 E-Newsletter

February 2019 Q & A

Q: I want to sell my annuity and buy another one with the proceeds on my own, but a friend told me this would be a bad tax move. Is that true?

A: When you want to exchange your annuity or life insurance policy with cash value, you can make what's known as a 1035 exchange: a direct swap to a new annuity without triggering a taxable event. Take possession of the funds and you'll be taxed. Another caveat: Check with the provider of your current annuity for any surrender charges should you make the swap.

Q: I recently started a new business, which I didn't incorporate. Even if I don't expect to make much money during the first six to 12 months, do I still have to file estimated quarterly tax returns?

A: Your tax professional can talk to you about your specific situation, but generally anyone who earns more than $400 in self-employed income will have to file a return and potentially pay taxes. For example, you will have to pay income and self-employment taxes, the latter including Social Security and Medicare taxes. IRS form 1040-ES gives you an overview of the subject, a worksheet to figure your liability and blank vouchers to file quarterly. Use Schedule SE (Form 1040) to file self-employment taxes annually.



The Investment Company Institute (ICI) estimated total U.S. retirement assets at $28.3 trillion as of the end of June 2018, accounting for almost one-third of household financial assets. Of that amount, about $9.26 trillion was in IRAs, making them the largest contributor. IRA assets grew $4.2 trillion since 2010. Where else are people investing for their retirement? Defined contribution plans like 401(k)s held more than $7.8 trillion in assets.


The NFIB Research Foundation's October 2018 Small Business Optimism Index maintained its recent strong performance, recording a 107.4, just off its record high. The report found that the percentage of small business members with one or more unfilled job openings is at a 45-year high.


Trade uncertainty is causing a slight uptick in imports. Prices for U.S. imports rose 3.5% from October 2017 to October 2018, according to the Bureau of Labor Statistics. Prices rose 2.4% the year before. Fuel imports recorded the biggest increase at 30.2% while industrial supplies and materials import prices rose by 14.2%.


When employees consistently contributed to their retirement plans — meaning actively in the same 401(k) plans from the beginning of 2011 to the end of 2016 — their balances more than doubled. The Employee Benefit Research Institute (EBRI) and Investment Company Institute (ICI) found that the average 401(k) plan account balance of these participants grew at 14.2% compounded annually to $167,330, more than double the average account balance of $75,358 among all participants during the same time.

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