John Raspante is SVP / Director of Risk Management
at McGowanPRO, and his role includes working directly with
new clients and providing risk management services to
top tier accounts.
He is the former Director of Compliance and Risk Management as well as Director of Education for Graf Repetti & Co. LLP, Certified Public Accountants & Business Advisors. Prior to joining Graf Repetti, he was employed by CAMICO Mutual Insurance Company. Mr. Raspante's professional affiliations include memberships in the AICPA and six state accounting societies. He also serves on NYSSCPA's Compilation and Review Committee, NJSCPA's Editorial Board and the Accounting and Auditing interest group, and the National Conference of CPAs' Ethics Committee. Mr. Raspante is a frequent author and speaker within the accounting profession on issues relating to risk management.
Mr. Raspante Goes to Washington
Presented on important tax-related issues to representatives of the House of Representatives and Senate
As director of the central New Jersey
chapter of National Conference of CPA Practitioners
(NCCPAP), I along with the organization's National Tax Policy Committee
members, recently had the opportunity to meet with Congress
to provide input and guidance on areas of current tax code.
The specific subjects of discussion included:
- Regulation of non-licensed tax preparers
- Health insurance premiums for S corporation share holders
- Health insurance premium deductibility
- Deductibility of long-term health care premiums
- ID theft and refund fraud
A particularly hot topic which received a lot of media attention this tax season was ID theft, specifically as it relates to tax fraud. We reviewed the uptick in the number of scams involving phony IRS agents. The victims were called and told that they had an outstanding tax bill assessed, and in order to avoid immediate jail and/or penalties, they were required to send payment immediately to an official sounding account via a wire service such as Western Union. Many fell prey to this con, but the elderly were especially vulnerable.
Another area of discussion was tax refund fraud which includes falsely filed tax returns and interception of tax return checks. Our recommendation was that the IRS should suspend paper checks, instead requiring direct deposit to back accounts using traceable routing numbers.
The area I personally conferred on with Congress was deductibility of health care premiums. Under current tax code, long-term care health care premiums are fully tax deductible on the Schedule A (Form 1040), but filers of other forms must itemize it. My position is that this premium should be fully tax deductible for all with no limitations. Essentially this would mean the government would subsidize part of the premium cost. However, I believe that this adjustment would drive the sale of more policies, which would mean more commissions for brokers, which in turn would generate more taxes, making it a revenue neutral program. Additionally, these benefits would be paid out by private insurance companies, lessening the burden on the Medicare program.
For more information about NCCPAP, please visit their website.