GOVERNMENT AFFAIRS

CPAs Offer Sound Advice Through Budget and Floods

While Rhode Island’s CPAs work through what could be one of the most stressful – or at least unconventional – tax seasons in history the Society has also continued to provide expert advice on tax matters to the General Assembly regarding the supplemental state budget for FY2010. 

The House passed one version on April 13, which was amended by the Senate the next day. The House version found savings by refinancing pension costs, while the Senate decided to dip into the “Rainy Day” fund to make ends meet.  The Society is working hard to share insight as the legislature refines the supplementary budget.  While the status of that budget is uncertain at press time, the Assembly is also eying the larger challenges it faces in crafting the budget for FY2011, which begins this July 1.

Flooding Help

RISCPA played a crucial role in helping ease the financial burden for those hit by the massive flooding in Rhode Island last month. Just as the tax season peaked, the region found itself under incredible amounts of water that damaged buildings, blocked roads, and threatened small businesses throughout the area.  RISCPA rose to the occasion, though, helping sort out a new set of rules that would guide taxpayers through a revised system.

On Monday, April 12, RISCPA hosted a session with Sen. Jack Reed, who spoke to members gathered at the Providence office about how the state government and IRS were addressing concerns about flooding. The senator was instrumental in securing the tax filing extension from April 15 to May 11, as well as other legislative pieces designed to help alleviate financial injury caused by the record-setting rains.

In addition to the extension, pending federal legislation may allow people in the affected areas who suffered property damage from the floods to claim a deductible loss for tax purposes, and do so either on their 2009 or 2010 returns. May 11 is also the new deadline for contributing to an IRA and having it count for 2009, as well as paying a balance due on that year’s return.