Peter G. Masullo, CPA
NYS Tax Accountant
www.cpa-taxlawyer.com
1. Where
the hell is New Kingston?
After the stock market crash of 1987 and the subsequent crash in NYC real estate prices, I just had to get away. I felt "burnt out" from the constant stress of managing a busy accounting office in NYC. Like Country Joe MacDonald, I went up to the country. Woodstock was beautiful, but it reminded me of my home in Greenwich Village because of all the restaurants, hair salons, and tourist shops. I decided to search the nearby hills for a more secluded place to find temporary respite. I found nirvana in the vast NYC watershed area. I now have the quiet and solace that I need to concentrate on your taxes at my own pace, without the constant disruptions of the rat race in the city. I occasionally visit my NYC office in order to get a change of pace from the solitude up here.2. Who performed the first tax audit?New Kingston is just south of Bovina, NY, near Margaretville. You never heard of Bovina or Margaretville? How about Big Indian, Arkville, or Shandaken? If that's not helpful, from the Kingston traffic circle at exit 19 on the NYS Thruway, take Route 28 west for about 50 miles. We are close to the Pepacton Reservoir, about 40 miles west of Woodstock. For those of you who can't make it to our main office in New Kingston, we're just a few milliseconds away on the net. We also have office hours in our NYC office.
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Actually, nobody ever asked me this question, but I found it interesting so I thought you might like to know. The process evolved in medieval England where an abacus type device, resembling a checkerboard, was used to tabulate the royal debits and credits. When the counting board became obsolete it was replaced by a table with a checkered tablecloth. The revenue agents of that time sat around this table to discuss official business maters, and to hear related pleas. Because of the checkered tablecloth this department of the British government became known as the "Exchequer." To this day, the national finance minister of England is known as the "Chancellor of the Exchequer."3. Why do you do this kind of work?The medieval "Exchequer" also used some kind of listening device to keep the taxpayers honest. Apparently, all of the British subjects would line up on April 15 of every year in order to make "required contributions" to the tax collector. The "Exchequer" would listen to the sound that the coins made as they were deposited into his pot to make sure that each payment was genuine, and of the right amount. Hence the word audit, which is derived from the Latin root meaning, "to hear."
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When I was a youngster I was bullied around by some of the nastiest hoods that ever walked the streets of Greenwich Village. You see, I was small, and my big brothers were small, so we didn't command much respect from the mean streets in the city. It took a vast number of beatings before I learned that it doesn't hurt as much if you fight back. By the time I got to high school on the Lower East Side of NYC, I developed a penchant for entanglements with larger individuals. I wasn't fast enough for the track team, I didn't really like baseball, and I was a lousy basketball player. Thus, my best sport became street fighting. By the end of my second year I led the school with a 4-0 record, with 1 TKO. After that, even the "bad guys" left me alone. That's pretty much the way I feel about the IRS. I get a perverse sense of satisfaction every time I get into the ring with this big, dumb Goliath. It is easy to out maneuver him since he is bogged down by the largest bureaucracy in the history of this planet. Like David, I have learned to use Uncle Sam's bulk, clumsiness, and lack of speed against him.
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4. How do I choose a good accountant?
Thankfully, this was only asked once. It was shortly after I started answering questions online when a gentleman from the Northeast United States asked a complicated question about his income tax return. He thanked me profusely after I provided a detailed, well thought answer. At that point, I was under the impression that I had earned a new client.
The gentleman then asked me a follow up question. Again, I gave him my best advice. Again, he expressed his extreme gratitude for my help. Then, to my astonishment, he emailed, "Now that you've answered all my questions can you tell me where to find a good accountant?"
Needless to say, my feelings were hurt by that last question. I felt like asking the gent, "What am I, chopped liver?" Anyway, I thought long and hard about this question. If I could stand in the shoes of a prospective client, this is how I would choose an accountant:
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The
first thing I would look for are qualifications and licenses. Most states
require a license before one holds him or herself out as an accountant.
However, these requirements are commonly not enforced so there are many
unlicensed and unqualified, so-called accountants out there. Also, it
takes no license or education to call oneself a consultant, so there are
even more "Barber Shop Tax Consultants." Thus, I suggest you
limit your choice to a Certified Public Accountant. A CPA is a licensed
accountant who has fulfilled education and experience requirements, and
has passed a rigorous examination. NY State also requires CPAs to continue
their professional education each year in order to keep their license. Some states allow you to check up on the qualifications of licensed accountants online. You can check up on NYS accountants by visiting the NYS Education Department's web site. In addition to license information, the NYS SED will tell you if there were any recent disciplinary actions against the licensee. You can also direct inquiries to professional organizations like the NYS Society of Certified Public Accountants or the AICPA. I tell you with great pride that if you search my record with any licensing agency or professional organization you will not find even the slightest blemish after over 25 years of practice as a CPA in NYS. |
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After
the initial quality screening, you should next try to find a tax
accountant you can
develop a personal rapport with. Trust is crucial in developing a
successful relationship with an accountant. People often confide in their
accountant to a greater extent than they do in their doctor. We learn the
intimate details of your lives each year when we gather all the personal
information required to prepare your taxes. I've had clients tell me
things that they never even told their spouses. Remember, you can't lie to
me because that would probably be against your best interest. Besides, I'd
probably figure out the truth when I looked at the numbers. The point is,
you need an accountant you will feel comfortable with. Once you've found a person you can trust, with the proper experience and credentials, the next step is to discuss fees. I don't suggest you look for bargain basement prices. On the other hand, if the potential accountant charges more than his or her competition you will want to be satisfied that they are worth it. In my opinion, the amount of the fee is not as important as the accountant's willingness to talk about it in advance. If the accountant is unwilling to discuss a price it is a sign that you messed up in the "trust" portion of this evaluation, mentioned above. A lot of people make a decision solely on price and I believe this is a mistake. You wouldn't choose a brain surgeon based on his fee. Instead, your evaluation of the surgeon's skills and ability to deliver the desired result would be of paramount importance. While your choice of a surgeon would not be based strictly on price, you would want to know if you could afford his or her services before you went under the knife. The same holds true for accountants, so you should expect your accountant to discuss fees at the outset of any engagement. |
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An
accountant's reputation can be very helpful in your evaluation, but beware
of placing too much emphasis on what other people say. Any reference
provided by the accountant is probably a satisfied client who will give a
good report. No one is going to give you a reference who will say anything
negative about them. I have seen too many instances of good accountants with good reputations who kept working a bit too long after retirement age. Believe me, I have nothing against old age, but accounting and tax matters are just too complicated to be practiced on a part-time, semi-retired basis. I have also seen many good tax accountants that have become complacent. It's easy to become content with the status quo, and not strive to keep up your professional skills. One way to get a clue in this area would be to ask about the accountant's computer skills. Any accountant who works without a computer belongs back in the stone age. Other accountants with impeccable reputations have expanded too rapidly, or have expanded into too many extraneous areas, such as investment sales. Often, your tax matters are delegated to a junior staff assistant because the accountant with the good reputation is too busy to give you the personal attention you deserve. |
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Watch
out for sales pitches. We all have to sell our services to a certain
extent. After all, that is the purpose of this web site. However, I
suggest you consider whether you want someone who specializes in taxes or
someone who sells insurance and/or investments. I believe it is a breech
of loyalty for a tax accountant to take advantage of his/her position as most
trusted advisor in order to earn additional compensation by selling
investments. Tax
accountants
should sell time, experience, and knowledge; and nothing else. |
To contact us Email to Masullo@catskill.net
Peter G. Masullo, CPA
NYS Tax Accountant
www.cpa-taxlawyer.com