April 2013 Newsletter

President's Message

Bethe Davis, CPA

We are all ultimately shaped by the things we do, by the life experiences we choose, and the people and influences we incorporate into our lives. I am grateful for the opportunity to have served the board as President this past year and am glad to have this experience become part of the fabric of my life.  As I look at the roster of past Presidents of the AKCPA I feel humbled and proud to be included in their number, and as I look toward the incoming President and the new President Elect, I feel we are in great hands for the future…and I gotta admit… it is a pretty sweet spot to be in.  This year marks my fourth year as an officer on the board and it has been a wonderful learning experience, full of great people, learning, obstacles and opportunity, and much laughter along the way. I am excited to continue my service as “past president” this next year and have my eye on a more active role on some of the committees.
 

This past year has been a challenge for the board as we explored and implemented changes to the organization and its activities to align our needs with our economic situation in a declining budget year.  Historically, the organization has faced other such challenges and it has come through and I feel this current situation will be no different.  As an organization of primarily volunteers, it is difficult to be nimble or adapt quickly but we have made good progress in the past year and are in process for the next as we strive for a balanced budget.  We have cut back where possible, fostered new revenue sources, expanded outreach, and are looking into the possibility of reducing our facility space to cut fixed costs.

You will hear more about the activities of the past year and our exciting goals and projects for the future at the annual meeting, held this year in Fairbanks, Alaska.  This year’s meeting kicks off with an evening welcome reception Wednesday, May 29.   Our meeting committee has put together a great program of CPE and events and we have a recently added additional bonus CPE to help us understand and navigate the complexities of the Affordable Health Care Act and expand our knowledge of the resources available to assist as we advise our clients on the Act’s impact to employers.  This year’s meeting promises to be fun, educational and (of course) filled with fabulous folks!  I hear we have some interesting new events planned.  Please plan to support your organization and join us, we’d love to see you there!  http://www.akcpa.org/writable/news/2013_akcpa_annual_meeting_registration_flyer_copy1.pdf

I would also like to ask you all to take a few moments from you schedule is to stay informed on the recent AICPA regional council meeting.  At first, I found myself a little resentful and stressed to be asked to attend an event dead in the middle of busy season, but I have to admit it was worth the trip and I was glad to be there and participate as an Alaskan voice.  Looking around an entire room filled with extremely busy, productive people, I know I was in good company and I was pleased that the turnout was great despite the timing.  The AICPA has a variety of projects underway. Please take a moment to read our elected Council member (John Rodgers) detailed in the May newsletter.  Remember, you have a voice - if you are reading an AICPA document, proposed item, whitepaper, or news item and have a concern you would like to see brought forth on the floor, please let us know.

The website is also a great way to keep up to date and stay informed.  This year we have made progress in updating and expanding our CPE calendar feature to incorporate both live and web-based CPE featuring some of our CPE partners.  We have had great support and feedback on many of the web- based classes and we are pleased to be able to offer a broader variety of topics to our membership, many of which are priced at a good discount.  Our web-based offerings range in class length from an hour or two up to all-day webinars. If you are interested in a class or a topic, remember to stop by the website and see what we have available. We will continue to add additional partners and make progress to be able to display all of our offerings on the calendar to make it easy for you to find what you are looking for. http://www.akcpa.org/cpe/webcasts

Finding what you are looking for related to staff leadership and accountability development just got easier!  This is a reminder to take a look at your top talent or your own personal qualities and qualifications and to apply to the AKCPA Leadership Academy before it is too late!  Read more about the exciting program and all it offers at http://www.akcpa.org/about/news/117-akcpa_leadership_academy  or take a look at some of the AKCPA e-mails in your inbox you may have missed during the busy season.

Finally, I wish everyone a wonderful start to the less busy season and hope you all have some time for spring sunshine.  See you at the meeting!

“The other side of the table”

Steve Pence, Director

The auditors are coming. My staff’s response- “Great, when are ‘they’ showing up? Like we don’t have enough to do already.” It has been an interesting transition over the past few years from being one of “them” at a Public Accounting firm to being one of “us” out in industry.   

I have enjoyed the jobs I’ve had in industry but there is one aspect of the Public Accounting I really miss: closure. You start an audit, do the field work, and then issue the financial statements. You will have some interaction with the client during the rest of the year, but for the most part you are done with that client until the next year. You know, closure.  In Industry there is no closure. There is always some cycle repeating itself:  closing the books each month, preparing quarterly reports, annual reports, annual financial statements, government surveys, government reports and the never ending list goes on and on. Then there is my favorite time-eating activity - payroll. If you underpay someone by a dollar you will be receiving an email from the President asking why you “always” make these mistakes. Perhaps it is something our department failed to do or maybe it is something the employee forgot to do. Regardless, you will spend hours hunting this down to get it corrected because receiving a payroll check to the employee is their number one priority. Employees are our one of our major assets and we want to keep them happy so it becomes one of our priorities, as it should be. These types of things will happen and when they do it just takes time out of our already overworked day.

For the most part the auditors I have encountered while being out in Industry have been very good. They are aware we have other things to do besides the audit and have been polite. However, there have been a couple of times I have wanted to ask a few of new auditors if they had a permission slip from their mommy to be away from home on a field trip.  However, I have come to the realization that due to staff turnover, the auditor’s age stays the same at forever 20 something and they just seem to be getting younger but the reality is I am just getting older. The nature of the beast is to have staff turnover and we will constantly have new auditors that we will have to help train. I actually enjoy the interaction with the auditors and remember when I was on the other side of the table. Now that I’m in Industry, I have held numerous whiteboard training sessions with your staff teaching them the elements of percentage complete construction contracts. It should be noted that I haven’t started back charging you for those training sessions.   So to those conducting audits, just remember we have full-time jobs with our day-to-day activities, so when you need something please be patient. We can’t always drop everything just to answer your questions. Also, be sure to train your staff and let them know that if they have a question, they should ask the senior on the job first so I do not have to hold another training class.  

The main thing I like about not being in Public Accounting – not having to keep track of billable hours. Heck, it might be worth it just for that alone.  It has been rewarding being out in the trenches. We use our accounting knowledge in practical ways dealing with real everyday life and issues. How can we help to improve our company? How can we become more efficient? How can we help bring more money to the bottom line?  

So what are we looking for from the Auditors? It is not just the Good Housing Keeping seal of approval on our financial statements, but efficient use of everyone’s time during an audit and helping us improve our business model and increase our profits.

Annual Meeting Early Registration Deadline- May 1st

Join us for this year's annual meeting in Fairbanks.  This year's meeting promises to be packed with fun and some  interesting CPE topics. Click on the link below to check out the schedule of activities and register.

http://www.akcpa.org/writable/news/2013_akcpa_annual_meeting_registration_flyer.pdf

NEW CPE POLICIES FOR 2013

EARLY REGISTRATION POLICY

To encourage early registration, the Alaska Society of CPAs would like to offer an additional benefit to its members.  Early registrations completed by the deadline of June 1^st are entitled to a $50 discount on each 8 hour seminar and $25 discount on each 4 hour course.  You may register on line and pay in full for all classes.  Course descriptions in a pdf file can also be downloaded from the website under the news section or click on the attached link. http://www.akcpa.org/writable/news/2013_course_listing_copy1.pdf

Note:  Early registration helps avoid course cancellations.

LATE REGISTRATION POLICY

For registrations received less than 21 days from the course date will be charged a late fee of $50 for each 8 hour course and $25 for each 4 hour course.

eManuals - NEW!

AKCPA has gone green - say good-bye to bulky binders!

In an effort to offer seminar attendees the convenience of electronically stored course materials and be more environmentally friendly, AKCPA is offering the option to receive materials in a PDF format. eManuals will be available for most, but not all, CPE courses. Users will find there are many benefits to eManuals. They offer:
 •Easier storage and access of information,
 •Faster reference using keyword searches,
 •More convenient note-taking, and
 •Discounted registration fees

It's simple - just select "eManual" when registering for your courses online. If you prefer to register for courses through the mail, you may download the current registration form to mail with your payment.

Cancellations, Refunds, and Transfers
No refund or transfer is available once you have downloaded the eManual.

Terms & Conditions

By downloading the course materials, you agree to abide by the following conditions:
 •All Alaska Society of CPAs course materials are protected by U.S. copyright law.
 •Course materials are provided for use only by the participant registered for the program.
 •You agree that you will not sell, distribute, transmit, or otherwise transfer any or all portions of the content of course materials without permission from the author(s).
 •There are no refunds, transfers, or cancellations after the course materials have been downloaded.
 •Internet access will not be available at the course; therefore course materials must be downloaded prior to arriving at the facility. A paper manual will not be provided for you at the course.
 •A charging station will be available at the facility on a first-come, first-served basis. We encourage you to bring your electronic device to the event fully charged.
 •Please test your device before arriving at the course. The latest version of Adobe Reader allows most electronic devices to add notes to your course materials.

Upcoming Events

IRS Nationwide Tax Forum information

The IRS Nationwide Tax Forums offer three full days of seminars with the latest word from IRS leaders and experts in the fields of tax law, compliance and ethics.
Attendees can:

• Select from more than 40 seminars and workshops
•  Earn up to 18 continuing professional education credits
• Explore the expo for the latest tax professional products
       and services

Click here to find locations and register.

IRS Updates and News Releases

Penalty Relief Available to Many Extension Requesters Claiming Tax Benefits

Taxpayers who request a filing extension because of the late availability of certain forms may qualify for late-payment penalty relief.

IRS Expands Voluntary Worker Classification Settlement Program; Relief From Past Payroll Taxes Available to More Employers Who Reclassify Their Workers As Employees

The IRS is modifying several eligibility requirements of the Voluntary
Classification Settlement Program (VCSP) thus making it possible for many more interested employers, especially larger ones, to apply for this program. Thus far, nearly 1,000 employers have applied for the VCSP which provides partial relief from federal payroll taxes for eligible employers who are treating their workers or a class or group of workers as independent contractors or other nonemployees and now want to treat them as employees.

Under the revamped program, employers under IRS audit, other than an employment tax audit, can qualify for the VCSP. Furthermore, employers accepted into the program will no longer be subject to a special six-year statute of limitations, rather than the usual three years that normally applies to payroll taxes. These and other permanent modifications to the program are described in Announcement 2012-45 and in questions and answers, posted on IRS.gov. Interested employers can apply for the program by filing Form 8952, Application for Voluntary Classification Settlement Program, at least 60 days before they want to begin treating the workers as employees.

Safeguarding Taxpayer Data Publications

Tax professionals must implement safeguards to protect taxpayer data. The security of taxpayer accounts and personal information is a top priority for the IRS as referenced in Revenue Procedure 2007-40.

Review the following documents:

Publication 4557, Safeguarding Taxpayer Data, A Guide for Your Business, provides information on federal and state information security laws and regulations, as well as industry standards and best practices. It describes the various security provisions and rules that impact tax professionals. The document assists tax professionals in understanding their requirement to protect the privacy and confidentiality of taxpayer data, and provides guidance to implement the necessary security controls within their business to satisfy these requirements. 

Publication 4600, Safeguarding Taxpayer Information, Quick Reference Guide for Business, is a tri-fold brochure that summarizes Publication 4557. It is written for businesses involved in the preparation and filing of tax returns. It provides information on requirements to safeguard taxpayer
information, safeguarding techniques and data security incidents.

First-Time Homebuyer Credit Look-up Tool Helps Taxpayers Who Must Repay the Credit
The IRS no longer mails reminder letters to taxpayers who have to repay the First-Time Homebuyer Credit. To help taxpayers who must repay the credit, the IRS website has a user-friendly look-up tool. 

You can find the First-Time Homebuyer Credit Lookup tool at IRS.gov under the ‘Tools’ menu. You will need your Social Security number, date of birth and complete address to use the tool.  It shows the original amount of the credit, annual repayment amounts, total amount paid and the remaining balance. You can print your account page to share with your tax preparer and to keep for your records. 

First-Time Homebuyer Credit Account Look-Up Tool Form     5405, Repayment of the First-Time Homebuyer Credit

•  First-Time     Homebuyer Credit Information

2012 Form 990 and 990-EZ – Significant changes

This chart summarizes significant changes to the Form 990, Form 990-EZ, schedules and instructions for tax year 2012.

IRS notices concerning Form 1099-K

The new Notices Related to Form 1099-K page has information on the reasons for the correspondence and how to respond.

Related links:

General FAQs on Payment Card and Third Party Network Transactions

Third Party Reporting Information      Center

 Reporting Requirements for Payment      Settlement Entities

Seattle Area Enrolled Agent Disbarred for Stealing a Client’s Tax Payments and Preparing Returns with False Deductions

The Internal Revenue Service obtained the disbarment of enrolled agent Lorna M. Walker for stealing a client's tax payments and for preparing tax returns with false deductions for multiple clients.

Proposed regulations on truncated TINS

Proposed REG-148873-09 continues the pilot program for truncated taxpayer identification number, or TTINs. Filers of certain information returns – now expanded to include those delivered electronically – may use a TTIN as an alternative to using an SSN, ITIN, or ATIN on payee statement.

New Edition of Retirement News for Employers

To read this edition, please visit the Retirement News for Employers page in the Retirement Plans Community section of the IRS.gov Web site.

Retirement news for tax-exempt employers

Organizations with a 403(b) plan might be interested in the following items:

Didn’t adopt a 403(b) written plan by December 31, 2009? – pay a reduced fee if you correct by December 31, 2013, under the Voluntary Correction Program

Use the VCP submission kit if you missed the 403(b) written plan deadline 

What your organization should do if it has a 403(b) plan but has lost its tax-exempt status

 Is your organization ineligible to sponsor a 403(b) plan? Here's how to correct it 

• The new 403(b) Fix-It Guide helps you find, fix, and avoid 403(b) plan errors  Required minimum distribution FAQs – new Q&A # 5 explains the requirements for pre-1987  contributions to a 403(b) plan

Statistics of Income Bulletin

The Statistics of Income Bulletin is available for download at IRS.gov/taxstats. Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh,  PA 15250-7954.
The annual subscription rate is $67 ($93.80 foreign), single issues cost $44 ($61.60 foreign).

Related Items:    

SOI Bulletin: Winter 2013

Historical Tables and Appendix

Tax Statistics

Technical Guidance

Revenue Procedure 2013-21 provides the depreciation deduction limitations for owners of passenger automobiles (including trucks and vans) first placed in service during calendar year 2013 and the amount to be included in income by lessees of passenger automobiles first leased during calendar year 2013.  These depreciation deduction limitations and income inclusion amounts are updated annually pursuant to section 280F to reflect the automobile price inflation adjustments.

Notice 2013-14, providing guidance on § 309 of the American Taxpayer Relief Act of 2012, Pub. L. No. 112-240, enacted Jan. 3, 2013. The Act amended § 51 of the Internal Revenue Code to extend the Work Opportunity Tax Credit through Dec. 31, 2013. 

Notice 2013-22 invites the public to submit recommendations for items that should be included on the 2013-2014 Guidance Priority List.

IMMEDIATE RELEASE

CERTIFIED VAUATION ANALYST EARNS DESIGNATION

Dimitri Yimga, MBA, CPA, CVA, CGMA has successfully completed the certified process with the National Association of Certified Valuators and Analysts (NACVA®) to earn his designation of Certified Valuation Analyst (CVA).

In his announcement, NACVA chief executive officer, Parnell Black, MBA, CPA, CVA, noted, “this designation for CPAs is an indication to the professional community that Dimitri Yimga has met the association’s rigorous standards of professionalism, expertise, objectivity, and integrity in the field of business valuation, litigation support, and related consulting disciplines. He can be proud of the fact that NACVA’s CVA and AVA (Accredited Valuation Analysts) designations are the only valuation credentials accredited by the national commission for certifying agencies (NCCA),” Black added.

To become accredited by NACVA, the candidate is required to successfully complete an intensive training and testing process. An initial requirement to becoming a Certified Valuation Analyst is that the applicant be licensed Certified Public Accountant (CPA) registered in his or her state. Implicit in this requirement is that the CVA maintain at least a minimum number of hours of Continuing Professional Education (CPE) each year (in most state this is 40 hours) and conduct him or herself within the ethical mandates established by the profession. NACVA also requires CVAs to obtain at least 12 hours of CPE each year in areas related to business valuation and/or litigation consulting, and periodically participate in programs sponsored by the association promoting quality and adherence to industry standards.

The National Association of Certified Valuators Analysts is a global, professional association that supports the business valuation, litigation support, and fraud deterrence consulting disciplines within the CPA and professional communities. A progressive organization, NACVA is committed to the attainment and dissemination of knowledge, the development of better theory, the expansion of benefits and services to its members, and the encouragement of strategic alliances within the accounting, legal, and business communities. The members of this organization comprise a body of professionals who represent a dominant force in the accounting profession and valuation discipline.

www.dycpas.com

Tel. 907 929 0309