KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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comments on taxes and accountants
August 28, 2021
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comments on taxes and accountants from article on August 18, 2021
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Ken,
I’ve been doing work in NJ for almost 20 years. Great response to that question, “…I doubt NJ would miss an opportunity to tax it citizens…Time for a new accountant...”
Mitch, nice dance! Bottom line is when you work in an industry you hire professionals that know your industry. I’ve used your contracts for many years and use your firm to support those contracts. I also have another industry attorney that I use for other things as needed on a local level.
My accountant is very familiar with the security industry as well as the multiple states I do business in. The simple answer according to her is yes, everything in NJ is taxable, installation, monitoring, service, inspections.
Hire the professionals that know how to help you grow your business. They may not always the least expensive on an hourly scale but they will save your bacon over the long haul. Think about what would an audit cost you? or a lawsuit? Or just a little fender bender? Then ask yourself, who is representing my interests?
Please just sign my initials. I don’t want to trigger an audit! LOL!
Thanks,
anon
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Ken
My company is based out of NJ and i collect and pay sales and use tax (On a quarterly basis).
This is filed electronically every quarter.
https://www1.state.nj.us/TYTR_BusinessFilings/jsp/common/Login.jsp?taxcode=55
Last year during covid 2020 (Q2) i forgot to pay the sales tax. Well uncle Sam sent me a notice that not only did I forget to make the payment, they were adding a hefty penalty on top of it! (Enough to make you say WTF)
So you call and ask for forgiveness, and they substantially reduce the penalty to a few bucks. But make no mistake about it, they are watching and counting!!
You owe this money.
Anonymous
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Ken;
This thread made me think about California, where I live and work. I found this relevant for whomever is interested: https://www.cdtfa.ca.gov/lawguides/vol2/suta/330-2830.html
"330.0000 LEASES OF TANGIBLE PERSONAL PROPERTY—IN GENERAL—Regulation 1660
Annotation 330.2830
(a) IN GENERAL
330.2830 Security Alarm Systems. A company assembles and installs security alarm systems. After the system is installed, the company bills the customer an equipment charge and a labor charge. Thereafter, the company bills the customer quarterly for the security alarm system. For an additional fee which is billed separately, the customer may have the system monitored.
Under these facts, the company is leasing the security alarm system rather than providing a service. (Compare with Annotation 330.1920.) Since the system is not leased in substantially the same form as acquired by the company, the lease is a sale and is subject to use tax measured by rental receipts. The taxable rental receipts do not include charges for installation but include the initial equipment charge, charges for assembly or fabrication labor, and the quarterly charges.
The fee for monitoring the system is not taxable since this service is optional and not required in order to lease the system. 11/15/90."
Eshel Nathan, PE
www.MetroFire.net
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Response
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Thanks everyone for contributing.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
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