January 2011 Newsletter

John Rodgers, President

It has been some time since I’ve addressed our membership, as things have been fairly quiet; however, I find it necessary to bring something to your attention that is a concern not only to myself but our Board of Directors as well.

There is a recent national trend of decreasing membership within the state societies.  Over the years societies have continually offered high quality CPE courses to their membership, which many participated in on a regular basis.  The AKCPA has always offered CPE courses with a high quality of content and professional, qualified speakers. The usefulness of these courses is demonstrated by many of the classes being quite full.  With the increasing availability of Online CPE courses, some members no longer find the membership dues cost effective and are subsequently not renewing.

This trend is troubling to many societies, including our own.  Personally, I've always thought of my AKCPA membership as much more than just CPE.  It is a voice to the larger AICPA and an ear to keep me informed of emerging issues that affect our very livelihood.  It has also been an effective system for networking and staying in contact with my peers.  Lastly, it provides a great method to give back to a profession that has done so much for me and my family.

The AKCPA has done a tremendous job making sure Alaska’s voices are heard and they have lobbied hard for our interests. This has been accomplished by a core group of individuals who have tirelessly volunteered their time and resources on behalf of the membership.  Maintaining our existing membership and increasing new membership is critical for this to continue.  Succession planning is not just for our clients, it affects our firms and our society. This is not a challenge faced only by our society, but a challenge with every society.

The AKCPA will continue to participate in the national discussions and work hard to develop new and improved services to our membership. I would like to encourage you to view your membership and dues about more than just access to CPE.  I ask you to consider your membership dues for the reasons stated above and as something which says you actively promote and protect the CPA brand and everything it stands for.

Thank you for your time. I welcome your thoughts and suggestions.

Mark your calendar for the 2011 Annual Meeting.

May 12-13, 2011 Alyeska Resort

Ethics class held on Thursday, May 12th.

Watch for registration information and further details. 

Payroll Tax Cut to Boost Take-Home Pay for Most Workers;

New Withholding Details Now Available on IRS.gov

IR-2010-124, Dec. 17, 2010

WASHINGTON ―The Internal Revenue Service today released instructions to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011.

Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.

The new law also maintains the income-tax rates that have been in effect in recent years.

Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but not later than Jan. 31, 2011. Notice 1036, released today, contains the percentage method income tax withholding tables, the lower Social Security withholding rate, and related information that most employers need to implement these changes. Publication 15, (Circular E), Employer’s Tax Guide, containing the extensive wage bracket tables that some employers use, will be available on IRS.gov in a few days.

The IRS recognizes that the late enactment of these changes makes it difficult for many employers to quickly update their withholding systems. For that reason, the agency asks employers to adjust their payroll systems as soon as possible, but not later than Jan. 31, 2011.

For any Social Security tax over withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2011.

Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form.

As always, however, the IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms. Publication 919, How Do I Adjust My Tax Withholding?, provides more information to workers on making changes to their tax withholding.

From: Therese Sharp, CPA

Chair of the IRS Liaison Committee

For those of you that are not located in the large metropolis of Anchorage you were probably wondering if testing sites other than Anchorage would be available for the competency testing under the Return Preparer initiative.

Noted below is the language right out of the Testing RFP:

The vendor will be responsible to:

Deliver the test nationally and internationally (e.g., Canada, Mexico, Europe, Asia) ensuring that the number and locations of testing venues sufficiently enable access and maintain adequate coverage to testing within in each state, district, territory, and foreign country, as approved by IRS. It may be necessary to add temporary locations to ensure access is available (within in a reasonable traveling distance), and in larger states and foreign countries.

IRS Stakeholder Liaison

As the IRS Stakeholder Liaison (SL) Area Manager for Alaska, I want to thank you for your past support and ask for your continued partnership with me and your local Stakeholder Liaisons. SL is proud to be in our sixth year as the practitioners’ gateway to the IRS. We have had a busy year, holding practitioner events, conducting National Phone Forums and webinars, and establishing Web-based tax centers. Practitioners provided our local SLs many suggestions on how to improve IRS systems. This partnership strengthens our mutual commitment to ensuring taxpayer compliance with federal tax responsibilities.

SL is committed to getting you the information you need. While we do not answer tax law questions or have access to your clients’ tax accounts, we can steer you in the right direction.

How SL can help you navigate the IRS

The best way to stay up to date with what is happening at the IRS is to use our free products and services. Subscribe to e-News for Tax Professionals for weekly news briefs. Check out Key Messages for Tax Professionals.  We offer practitioner “tax centers”, and “widgets” that link from your organization’s Web site to ours, making it easy to find frequently-used Web pages. Join our free, educational National Phone Forums and Webinars from the convenience of your office. Check out IRS Live; tax professionals are encouraged to watch the free live webinar and submit questions by e-mail during the webinar.  Visit our IRS Video Portal to view video clips of tax topics, archived versions of live panel discussions and webinars, as well as audio archives of national phone forums. And be assured that IRS.gov has more than just forms and publications. You will find the latest news, online tools, research services, guidance and contact information. Check out IRS.gov Spanish counterpart IRS en Español for translated information.

How to keep up-to-date with the New Return Preparer Regulations

IRS has a new Return preparer Office. David R. Williams will be leading the IRS team implementing the new requirements for tax return preparers. Read New Tax Preparer Requirements - Overview to keep current on the implementation of the three phases. For information on Phase 1: Apply for or renew your PTIN; check out our Web page for New PTIN Requirements for Tax Return Preparers.  We have a Web page with answers to New Requirements for Tax Return Preparers: Frequently Asked Questions. For additional PTIN information, contact the IRS Tax Professional PTIN Information Line at 877-813-PTIN (7846); Monday-Friday, 8 a.m. -5 p.m. (CST).

Check out Many Tax Return Preparers Required to Use IRS e-file Beginning in 2011 for information on the new e-file rules and learn how to become an authorized e-file provider.

How you can help your clients and colleagues

Tell us when you see a problem or have a suggestion to improve our processes. We introduced the Issue Management Resolution System four years ago and have had more than a thousand IMRS issues submitted. Check out some of the successes in our IMRS report on IRS.gov.

Help us find ways to further our partnership. Work with us in reaching more practitioners through joint events or webinars. Include IRS information in your newsletter and Web site. Post a tax center on your Web site. Volunteer to teach a Small Business Tax Workshop in your community. Share what you learn with your colleagues.

And stay in touch with your local SL. If you need assistance in Alaska, contact one of the Stakeholder Liaison employees below.

You may also contact me, Kristen Hoiby, Northwest Area Manager for Stakeholder Liaison, at 206-220-5659 or Kristen.A.Hoiby@irs.gov.

Filing season can be a challenging and stressful time. Together, we can make it easier. Use our free tools, products, and services, and raise your issues and concerns through your local Stakeholder Liaison.

Sincerely,

Kristen Hoiby

Stakeholder Liaison Area Manager, Northwest Area

Kristen.A.Hoiby@irs.gov

IRS Contact List for Practitioners

NOTE: Local Time – Alaska (AK) and Hawaii (HI) follow Pacific Time (PT)

Getting Ready for the 2011 Tax Filing Season

Want quick access to more information?  Click on the links below.

KEN L. BISHOP TO SUCCEED AS PRESIDENT AND CEO OF NASBA

NASHVILLE, TN (January 14, 2011) –The Board of Directors of the National Association of State Boards of Accountancy (NASBA) announced today that Ken L. Bishop will become President and CEO of NASBA, effective January 1, 2012, following the retirement of current President and CEO, David A. Costello, CPA.

Mr. Bishop currently serves as NASBA's Executive Vice President and Chief Operating Officer, responsible for NASBA’s business and testing operations.  He previously served as NASBA Senior Vice President and President of NASBA’s subsidiary, Professional Credential Services (PCS), having joined NASBA in 2007.

With Mr. Bishop’s guidance, NASBA has made significant strides in increasing the ability of CPAs to practice throughout the United States without the need to be licensed separately in each state.  He has also been instrumental in the development of an international Uniform CPA Examination delivery model.  Mr. Bishop has played a key role in NASBA's efforts to enhance this comprehensive professional examination and maintain its high quality as one of the State Accountancy Boards' essential requirements for CPA licensure.

Upon Mr. Costello’s announcement of his plan to retire, the NASBA Board of Directors formed a Selection Advisory Committee in April 2010, to recommend a successor.  Following a careful review of top executives from across the country, the 10-member committee recommended Mr. Bishop to the Executive Committee of the Board.

“I want to commend the Selection Advisory Committee for their recommendation after completing a diligent search and evaluating numerous highly talented applicants,” said NASBA Chairman, Michael T. Daggett, CPA.  He added, “Mr. Bishop has proven to be an invaluable asset for NASBA.  We are confident he will continue to lead the organization to greater accomplishments and provide even greater benefits to its members—the 55 Boards of Accountancy.”

“I am pleased that the Board of Directors selected Ken Bishop to succeed me as President and CEO,” said President Costello.  He continued, “Ken’s rich experience in all aspects of the CPA Examination process, accounting regulation, business operations and professional relationships provides assurance of continuing progress for NASBA and the State Boards in the years ahead.”

Former Executive Director of the Missouri State Board of Accountancy, Mr. Bishop has over a decade of experience working in accountancy regulation.  He served as chairman of NASBA’s CPA Mobility Task Force, CPA Examination Administration Committee and Executive Directors Committee.  In addition to his service on numerous NASBA committees, he served on the American Institute of Certified Public Accountants' (AICPA) Board of Examiners.

A graduate of the Missouri State Highway Patrol Academy and the Federal Criminal Justice Academy, Mr. Bishop holds a Bachelor's degree in education from the University of Missouri in Columbia and a Master’s degree in criminal justice.  He is also a graduate of Harvard University’s Kennedy School of Government's Executive Program.

Internal and External Exposure Drafts

FASB

Issue date -- 12/9/10 Proposed Accounting Standards Update, Receivables (Topic 310): Deferral of the Effective

Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20

Comment deadline -- 12/24/10

ARSC (AICPA)

Issue date -- 11/30/10 Proposed Statement on Standards for Accounting and Review Services, The Use of the

Accountant’s Name in a Document or Communication Containing Unaudited Financial Statements That Have

Not Been Compiled or Reviewed

Comment deadline -- 4/29/11

GASB

Issue date -- 11/24/10 Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources,

and Net Position

Comment deadline -- 2/25/11

IFAC

Issue date -- 12/10/10 Proposed Redrafted International Education Standard, IES 7, Continuing Professional

Development: A Program of Lifelong Learning and Continuing Development of Professional Competence

Comment deadline -- 3/8/11

Issue date -- 11/4/10 IFAC Policy Position Paper #4, A Public Interest Framework for the Accountancy Profession

Comment deadline -- 3/25/11

Issue date -- 10/28/10 Proposed International Standard on Related Services, ISRS 4410 (Revised),

Compilation Engagements

Comment deadline -- 3/31/11

CPA Crossings Best Practice Webinars

The Alaska Society of CPAs, in partnership with CPA Crossings, LLC, is offering special Accounting Technology Best Practice Webinars. These webinars are designed to offer topics that provide practical tips to improve productivity within your firm. Take advantage of these conveniently scheduled two hour live presentations that can save time and money by participating from the convenience of your office or home.

Ethics & Tax Topics

February 8 NEW Tax Practice Ethics: IRS Regulations of Tax Practitioners Part 1 (11:00 am EST) Qualifies for Ethics CPE!

NEW Tax Practice Ethics: IRS Regulations of Tax Practitioners Part 2 (2:00 pm EST) Qualifies for Ethics CPE!

February 10 NEW December 2010 Tax Relief Act (11:00 am EST)
NEW Key Tax Issues Facing Members in Industry (2:00 pm EST)

February 24 NEW 2011 Tax Update for Corporate Returns (11:00 am EST)
NEW 2011 Tax Update for Individual Returns (2:00 pm EST)
Technology & Practice Management Topics

February 1 NEW PowerPoint Level 1 - Creating Professional Presentations (11:00 am EST)
NEW PowerPoint Level 2 - Advanced Presentation Design (2:00 pm EST)

February 2 Adobe Acrobat for Accountants I – Basic Features & Functions (11:00 am EST)
Adobe Acrobat for Accountants II – Advanced Features & Functions (2:00 pm EST)

February 3 Adobe Acrobat for Accountants III – Tips & Techniques for the Experienced User (11:00 am EST)
NEW Ethics – Information Privacy Regulations Overview (2:00 pm EST) Qualifies for Ethics CPE!

February 4 How To Go Paperless (11:00 am EST)

February 14 Excel – Beginner Tips, Tricks & Techniques (11:00 am EST)
Excel – The Power of Pivot Tables (2:00 pm EST)

February 15 Excel – Formulas and Functions (11:00 am EST)
Excel – Advanced Tips, Tricks & Techniques (2:00 pm EST)

February 16 Excel – Auditing Your Spreadsheets to Ensure Data Integrity (11:00 am EST)
NEW MS Office 2007/2010 – What’s New? (2:00 pm EST)

February 17 NEW Windows 7 – Tips & Techniques (11:00 am EST)
Cyber Security Best Practices – What You Should Know and Do (2:00 pm EST)

February 18 NEW Cloud Computing (11:00 am EST)
Stay focused…Save time…Save money…Avoid travel!
Take a Webinar
February
Visit us at http://cpe.cpacrossings.com/akcpa to access full course descriptions and
schedule of CPA Crossings upcoming webinars and registration information.