Page 12 THE MALDEN ADVOCATE–Wednesday, November 23, 2022 Residents oppose proposed marijuana dispensary By Barbra Taromina L ast week's City Council meeting opened with a public comment segment that included letters from three homeowners on Wait Street who oppose a proposal to site a marijuana dispensary on Eastern Avenue. All three homeowners complained that their properties were within the 75-meter residential buff er zone. They believe the dispensary, which includes a growing operation, will decrease the value of their homes because no buyers will be interested in a property with a large dispensary as a neighbor. They also raised concerns about possible crime in the neighborhood. Meanwhile councillors Craig Spadafora and Jadeane Sica have been working to transfer the special permit granting authority for marijuana establishments from the city council to REASONABLE COMPENSATION FOR S CORP SHAREHOLDERS T he IRS is beginning to select a certain amount of S Corporations for examination to make certain they are complying with paying stockholders who work for the corporation a reasonable salary which in turn translates into paying a reasonable amount of payroll taxes assessed on the salary. The IRS will be looking at three types of distributions to S Corporation shareholders. 1. Those of appreciated assets where the S Corporation fails to report the gain on sale of that asset in the fi rst place; 2. When an S Corporation fails to report a distribution to a shareholder as a taxable dividend when required to do so, and 3. When a shareholder fails to report a non-dividend distribution as a taxable capital gain when the distribution exceeds his or her stock and loan basis in the S Corporation. With the IRS now receiving an estimated $46billion in additional funding towards its enforcement efforts, S Corporations need to maintain very accurate books and records, keep track of stockholder basis and loan basis, and be sure to report taxable transactions properly. Calendar year 2022 returns fi led on or before March 15, 2023 will still be susceptible to an income tax audit on or before March 15, 2026. This will give the IRS virtually three years to train their newley-hired auditors just in time to still be able to audit 2022 calendar year tax returns. Certainly, 2023 calendar year returns and thereafter will be even more likely to be audited. S Corporation profi ts above and beyond owners’ salary that are distributed to the stockholders are not subject to payroll taxes. This is not the case with partnerships. All of a partnership’s ordinary net income from a trade or business is subject to self- employment taxes. The IRS has created a fact sheet that serves as a guide for its agents to determine whether or not an S Corporation’s shareholder’s salary is reasonable. The IRS wants to collect payroll taxes on all wages in order to fund the social security system. If a S Corporation shareholder actively works in the business and does not take any salary at all, more likely than not, the IRS will eventually catch up with that S Corporation and will look to reclassify most, if not all, of the stockholder distributions as salary and then assess the S Corporation for the requisite amount of payroll taxes. Interest and penalties would also be assessed. The IRS FS (fact sheet) 200825 sets forth a guideline for agents to use in order to determine a reasonable salary such as duties and responsibilities, time and eff ort devoted to the business, salaries paid to non-stockholder employees of the business, what comparable businesses are paying for the same level of service, etc. With the Democrats maintaining the Senate, it does appear as thought the IRS will indeed be funded with an additional $86 billion, with $46 billion earmarked towards enforcement. Joseph D. Cataldo is an estate planning/elder law attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a master’s degree in taxation. the planning board. "That in the interest of promoting a fair and transparent marijuana licensing process, free from political infl uence and the potential for state ethics violations, that the Code of the City of Malden be amended to change the Special Permit granting authority for Marijuana Establishments from the Malden City Council to the Malden Planning Board," read an order submitted by the councillors. Benevolent Botanicals has proposed a dispensary at 926 Eastern Ave. The Cannabis Licensing and Enforcement Commission approved the company's plan and praised it for rehabbing an underutilized building. But the company's application for a variance from the buffer zone requirements was rejected by the Board of Appeals. The company issued a lengthy statement in the wake ~ LEGAL NOTICE ~ NOTICE OF FUNDING AVAILABILITY (NOFA) American Rescue Plan Act Funds Available for Vacant Property Acquisitions NOFA RELEASED: QUESTIONS DUE: ADDENDUM RELEASED: APPLICATIONS DUE: APPLICATION OPENING: NOVEMBER 9, 2022 AT 10:00 A.M. DECEMBER 1, 2022 AT 10:00 A.M. DECEMBER 1, 2022 AT 4:00 P.M. DECEMBER 12, 2022 AT 10:00 A.M. DECEMBER 12, 2022 AT 10:00 A.M. DELIVER SEALED APPLICATIONS TO: Malden Redevelopment Authority 215 Pleasant Street, Third Floor Malden, MA 02148 The City of Malden has received $45.7 million in American Rescue Plan Act (ARPA) Local Fiscal Recovery funds and has granted $2 million to the Malden Redevelopment Authority (MRA) to acquire, rehabilitate, and sell vacant properties as affordable homes to income-eligible households. The MRA is accepting applications from qualified applicants for the acquisition of vacant properties. Applicants must be owners of vacant property located in the city of Malden. Applications are available upon request. Applications are due on December 12, 2022 at 10:00 A.M. The City’s Office of Strategic Planning and Community Development (OSPCD) will review applications for accuracy and completion. OSPCD staff may request additional information after an application has been received. Please submit any application requests or questions in writing to OSPCD Housing Program Coordinator Kristina Tseng at ktseng@cityofmalden.org with “Vacant Properties Acquisition” in the subject line. of that rejection. According to Benevolent Botanicals, "The Cannabis Licensing and Enforcement Commission, including the building commissioner, voted to move us forward, clearly with the understanding that, if appropriate, variances would be issued for such small zoning issues. the reason they believed this is because the City Council told them it was so. Councillors Spadafora and Sica were especially active in selling this belief - that prohibitive buff er zones were fi ne because the city would just issue variances. But clearly it isn't fi ne with residents who are aff ected. Like us on Facebook advocate newspaper Facebook.com/ Advocate.news.ma
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