June 2013 Newsletter

Amy Cooper and Bethe Davis celebrate at the annual meeting in Fairbanks on May 30th. 

President's Message

Amy Cooper

Another successful annual meeting!  The Society’s annual meeting took place in Fairbanks at the end of May.  Festivities began at Silver Gulch Brewing whose saying aptly describes both their beer and Fairbanks – “Fairbanks. Where the people are Unusual and the Beer is Unusually Good.”  With a group of about 40-50 people, a good time was had.

Thursday was full of CPE – Electronic Records and Business Law Update. What I took away from our instructor, Ben Wright, is the answer is always “it depends.” We ended the day on the Riverboat Discovery, a beautiful sternwheeler that took us on an evening cruise up and down the Chena River.  With lovely summer weather, a great crowd of over 80 and delicious food, you could not help but have a fun time!

On Friday morning, we caught up on our ethics CPE (remember, it is a renewal year!).  At the Awards Luncheon, the Society proudly honored Diane Hutchison and Melody Schneider with the Public Service Award.  Both ladies are from Fairbanks and I was in awe of the many things they have accomplished and continue to accomplish.  After the Awards Luncheon, we had, I must say, one of the best business meetings I have attended.  We were unable to get to all of the items on the agenda but conversation was lively and members were engaged and offering valuable feedback.  We addressed the budget deficit that the Society is currently facing and ideas to cut expenses were volleyed back and forth. I very much appreciate all of the comments.  The day ended with the Patients Protection & Affordable Care Act presentation by Joshua Weinstein with Northrim Benefits Group.  I also want to thank Northrim Benefits Group for sponsoring the Awards luncheon.

As you can see, we managed to pack almost every hour we could.  This event would not have been as successful without the help and support of many.  I would like to send a big thank you to Bethe Davis, Jacque Briskey, Rita De laTorre and Linda Plimpton for all the hard work they put into planning the annual meeting.  I had no idea there were so many little details.  Thank you ladies!  I would also like to thank all of you who donated to the Hagelbarger Scholarship Fund.  On Wednesday night, UAF Accounting students volunteered to help with some fundraising.  They raised $543!  Thursday night the fundraising continued with a wine drawing.  By paying $20, guests were given a ticket and able to pick a bottle of wine when their number was called.  The catch – the bottles were covered so you did not know if you were picking a $7 bottle or $30 bottle.  We raised $1143 both nights!  Thank you!  A big thanks to Lisa Turner and her husband who donated all of the wine.   In addition, several firms sponsored the annual meeting – Cook & Haugeberg, LLC; Kohler, Schmitt & Hutchison PC; RJG, A Professional Corporation; Schneider & Schilling CPAs; Swalling & Associates, PC; Walsh, Kelliher & Sharp; and Wilson & Wilson, CPAs. Arctic Circle Enterprises, LLC, the Westmark Hotel, UAF School of Management, Hoo Doo Brewery and Alaska Salmon Bake donated some of the door prizes.    As I was reflecting on how much effort was put into this meeting by so many, I found the following quote from Henry Ford.

“Coming together is a beginning.  Keeping together is progress.  Working
together is success.”

I want to say again how much I enjoyed getting to see so many people from around the state – new people and people I have not seen in awhile.  In my closing remarks, I mentioned several times that the Society is not my Society but one that belongs to all of us – all of its members.  At times like this annual meeting, I am reminded of what a vibrant group we are and how much we, as members of the Society, can assist the public, serve as a support group to our peers and advocate for the CPA profession.  Let us take to heart Henry Ford’s thought and continue to work together and continue to make our Society and our profession even stronger.

We are already in the process of picking a place and date for next year’s annual meeting so be watching for more details to come.

Happy Solstice!  ~Amy

Mr. Rodgers Goes to Washington

John Rodgers, CPA

I’ve recently returned from the AICPA Spring Council meeting in Washington DC.  While there we marched on the Hill to talk to our congressional delegation about some key issues to our industry.

As I discussed in my April report on the AICPA Regional Council meeting, expanding the Uniform Accounting Act (UAA) definition of Attest is a key issue this year.  AICPA passed the resolution that would better define the services performed by CPA’s and ultimately better protect the public due to the confusing and misleading language that allows non-cpa’s to issue reports using AICPA standards.

Under the resolution the current verbiage under the UAA Definition of “Attest” will change from Examinations of prospective financial information under SSAE to Examinations, reviews and agreed-upon procedures under SSAE.

The resolution clearly notes that CPA’s are uniquely qualified to perform assurance services with the appropriate education, examination, experience and professional ethics.  The next steps are to start the legislative process to get this definition changed.  This includes AICPA developing resources to educate state policy makers and providing opportunities to engage stakeholders. More information on this process will be provided to members when it becomes available.

As I reported in my previous update on the issue that deals with the international professional accountant community, the globalizing specialized credentials and specifically Canada’s request to have access to our professional designation certifications.  AICPA position is the globalizing credentials supports our members and best positions the US accounting profession.  Research has found that the number of firms providing services in specialized areas is increasing both globally and domestically.  Our CPA brand is well-positioned to support the global expansion of credentials, non-US accounting bodies are moving into specializations via sections, credentials and/or certification programs and domestic competitors are active in the international market. 

Select topics that will exceed the US Accounting Profession through 2017 include: Forensic Accounting, Financial Planning, Business Valuation, IT consulting and Risk Management.

Key risks and mitigations for this issue:

CPA brand dilution – work with non-US accounting bodies that the board recognizes as being high quality and rigorous, preserve and promote CPA’s as premier brand in the US and enhance CPA brand globally as part of the expansion of credentials.

• Doing nothing allows competitors to penetrate the market –enter the market now to retain early mover advantages and partner with state societies to expand credential awareness.
• A non-US credential holder doesn’t adhere to quality performance –establish and enforce policies and procedures between non-US accounting bodies and the AICPA
• Not all members see globalization as impacting them – raise the profile on ongoing and expanding US promotion efforts as well as provide context to demonstrate the global nature of today’s business.

The next step with this issue is to finalize operating model with National Accreditation Commission, finalize arrangements with CPA Canada and CIMA, continue to focus on US expansion and benefits, including State Society collaboration, launch credentials, evaluate results and refine approach, and discuss market opportunities with Board.

Some key advocacy projects for AICPA and ongoing developments in Washington DC include the issue around the late passage of the Tax Relief Act, updates on Identity Theft and IRS PTIN program.

Tax Filing Season – due to the late passage of the Tax Relief Act it created a compressed tax filing season.  Issues included delayed release of software, delay in staff training and issues with forms not being updated until February and March. AICPA has addressed DC on the penalty relief for tax payers due to the delayed release of certain forms.

Identity Theft – continues to be on the rise and is still one of the biggest issues facing the IRS. Approximately 450,000 cases with a 78% increase over FY12.  This included 1 million suspicious returns being filed this season.  IRS has spent $328 million on identity theft efforts in FY2012.

AICPA’s position is firm management best practices, truncate taxpayer ID number regulations, IPSU as “traffic cops”, enhanced civil penalties for ID theft, clarify access to Death Master File, expand scope of truncation through legislation (W-2) and regulations (1099’s), and Real Time Tax System.

IRS PTIN Program – AICPA supports the PTIN program to show that preparers are maintaining a basic competence level. No new reports on the status of the PTIN program.

Our key talking points with DC representatives included a very detailed discussion on Tax Reform, The issue related to the Mobile Workforce, and changes to the filing dates for tax returns.

Tax Reform:  The goal of this discussion was to leave our representatives knowing that we want a system that is perceived as balanced, fair to all, administrable, economically efficient, transparent and neutral in its effect on the economic activity.  We presented the Principles of Good Tax Policy.  There was also discussion on the tax compendium focusing on the provisions in the IRS code that need attention, 222 proposals that promote simplicity and fairness.

Specific recommendations that have been submitted from the Tax Compendium include: corrected forms 1099, due dates of tax returns to create a more efficient spacing of due dates, education incentives need to work on rules for requirements, eligibility and changes to income-phase out to simplify, kiddie tax complexities, changes to the provisions of the retirement plans to make it simpler to comply with and understand and penalty reform.  Civil penalties should be fair that deter bad behavior without deterring good conduct.

Mobile Workforce: Another key issue we lobbied for while in DC dealt with the Mobile Workforce.  Currently interstate businesses are subject to a significant regulatory burden to comply with non-resident state income tax withholding laws.  41 states impose different tax requirements on the withholding for income tax of non-residents with some states having a requirement for work as little as one day.  Local taxation issues have now become national in scope.  In response to this, H.R. 1129, Mobile Workforce State Income Tax Simplification Act of 2013 – this bill would create a uniform national standard to limit state or local taxation of employee compensation and that the person must physically work for 30 days in a state to trigger withholding.

Improving Chronology of Filing Due Dates: H.R. 901, the Tax Return Due Date Simplification and Modernization Act of 2013 would establish a logical set of due dates based on a chronologically correct flow of information between the K-1 and their owners.

The proposed filing due date is as follows:

• 1065 – Due 3/15 Extension Due Date of 9/15
• 1120S – Due 3/31 Extension Due Date of 9/30
• 1041 – Due 4/15 Extension Due Date of 9/30
• 1120 – Due 4/15 Extension Due Date 10/15
• 1040 – 4/15 No Change
• 5500 – Due July 31 Extension Due Date of 11/15
• Exempt Organization Forms – Due Date May 15 Extension Due Date of 11/15
• TDF 90-22.1 (FBAR) – Due Date 10/15
  Extension N/A
• 3520-A – Due Date 4/15 Extension Due Date 10/15
• 3520 – Due Date 4/15 Extension Due Date 10/15 (can be extended separately from owners tax return)

Municipal Advisors: H.R. 797, Municipal Advisors Oversight Improvement Act.  This bill will require municipal advisors to register with the SEC.  The current proposed rule is broad and will encompass CPA’s who are performing “customary and usual” accounting services.

There will be much more information on all these legislative issues in the coming weeks and a call to action to the members for these key issues.

It is a pleasure serve as council member and to represent Alaska CPAs at the meetings and on the Hill.

John Rodgers

Hey Y’all! Volunteers Needed!

Get your spurs sharpened.  It’s almost time for “Roundup At The Bear Paw Corral”, and we need your help to promote financial literacy to the community.  How, you ask?

First – We need volunteers!!  The Bear Paw festival is a fun-filled family-fun event sponsored by the Chugiak-Eagle River Chamber of Commerce.  This year’s event will be July 12- 14, noon to 10pm Friday and Saturday, and noon to 6pm on Sunday.  With 3 hour shifts, we need just 9-10 people to fill all the time slots.

Second – We need protection!  We are looking for a 10’x10’ EZ-Up tent to put up for the weekend to protect us from the inevitable wet stuff that sometimes falls from the sky in July.  If you have one, let Linda know.

Third – We need sponsors!  When we were at Bear Paw two years ago, several of the local CPA firms came forward to underwrite the US Savings Bonds that we gave away.  This year we want to order piggy banks and some other fun promotional items to give away, but as you probably know, we don’t have any money in the budget.  Your sponsorship entitles you to prominent signage in our booth during Bear Paw, print recognition in the newsletter, and our undying appreciation!

Our last time at Bear Paw, we spoke with hundreds of people interested in saving money, gave away 500 reminders for “20 Ways to Feed the Pig”, and had over 800 people enter our drawing for “Free Money”.  Benjamin Bankes also made several surprise appearances!

You might think July is a long way away, but it will be here before you know it.  Call Linda if you have a EZ-Up tent.  Sign up now before the best volunteer time slots are taken!!   Or write a check and help us order the promotional items early so we avoid the express shipping charges.

Together we can show the community how to ROUND UP their finances at the 2013 Bear Paw in Eagle River!  Give Linda a call and Join the fun.

AKCPA Annual Committee Reports

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

Fosselman & Associates CPAs, Inc.

Palmer, Alaska

We are a busy tax practice with some very unique engagements.

Looking for 1 or 2 CPAs with 3-5 years tax experience.

-We work 4 days per week during the summer

-Small 4 person CPA office with 5 other staff

-No out of town work required

-Unlimited CPE

-2 CPAs retiring soon

-Room for unique schedules & requirements

Send us a resume or questions to faadmin@alaska-cpas.com. You
may also contact us by phone at 907-745-0135.