May 2012 Newsletter
Rich Caturano, Vice Chair of the AICPA, Bethe Davis, AKCPA President and Barry Melancon, President of the AICPA at the leadership conference in Scottsdale, AZ last October.
President's Message
Bethe Davis
Greetings fellow members! I am amazed how quickly the year has passed and here I am writing my first greeting and newsletter item as the official President of the AKCPA.
Last week I was invited to present our AKCPA donation to the UAF students on behalf of our membership at the 13th annual UAF Accounting Awards Ceremony, organized by GAAP (the Great Alaskan Accounting People student club). This event is to announce and celebrate scholarship winners, accounting faculty awards given in recognition of the best and brightest students, and student awards to honor faculty and other students.
While there, I was impressed with the level of professionalism and dedication on the part of a student group, the attendance, support, and participation of accounting faculty and the UAF School of Management leadership as well as the level of commitment on behalf of local professionals. I was pleased to see that most local accounting firms were well represented in the audience, which appeared to approximate about 60 or so folks.
Mike Cook, Chair of the AKCPA PAC committee, presents
the Dorothy Ann Pattinson Accounting Scholarship to Margaret Hernandez.
Our own President-Elect, Amy Cooper, with UAF School of Management’s Dean, Dr. Mark Herrmann.
The portion of the event that struck me most was not the awards, the food, or the pleasure in socializing with other accountants. Instead I was focused on chance overheard conversations and remarks between students regarding who was in attendance and what firms they were with. I am here to tell you, our participation really matters to the students we interact with. I was astounded at their ability to recognize folks they may have only seen once in an office visit or at a speaking engagement for the club and their knowledge of some general firm culture. They too were impressed with the level of participation and seemed very proud to be
an accounting student that day and to see how much they “mattered” to the professionals attending.
Sometimes when we volunteer our time it may be tough to see where we made a big impact or lasting impression overall. Here is one area where our participation really matters, where a small investment of time can have large and lasting results. I know many firms offer speakers to accounting clubs at UAF and UAA, open their doors to students at firm visits, attend panels, socials, and recruiting events. I just want to encourage you to not only continue your current level of participation, but to also encourage others to do so, and to contemplate what else you might be doing. Maybe this is the year you consider allowing a couple job shadows during a slow period, part time internships, mock interview assistance or other student interaction. We do make a difference, our participation is remembered, and the impressions we make are lasting and passed from student to student.
I’ll get back off the old soapbox now and just say thanks to all of you who do volunteer your time and resources. I am sincerely looking forward to a great year of service to our membership.
Marja Beltrami floating the Kenai River in front of Ciesel Mountain
Well, my tenure as President has come to a close and Bethe Davis is taking over the reins. As with any changing of the guard the work started is not complete and new work is coming down the pipe. There is a lot of change coming in the world of Public Accountancy.
GAAP for Public companies vs GAAP for private companies, use
of biometric data for testing, IFRS impact on the US, cyber protection, changes in the Single Audit regulations, ongoing CPE offerings and expanding those offerings and delivery methods, leadership training, membership levels and membership benefits. The list can go on and there may be things that concern you that current board and committee chairs are unaware of. Did you know you can now get an e-mail address that is @cpa.com?
Over the next year I plan on continuing to work on the leadership development aspect here at the society level and at the national level. This year the Board is making a recommendation of one of our own members, Amy Cooper, to the AICPA’s Leadership Academy! Congratulations and best of luck being accepted. So keep your ears and eyes open for opportunities here at a local level.
I also want to give a shout out to the winners of our Public Service Award and Distinguished Service Award! But since they don’t get announced until the Annual Meeting (which I hope you are attending!) in Homer May 31st & June 1st, I can’t. I won’t be able to attend, due to a previous commitment, so I want to shout out here and you all will know who you are shortly!! Thank YOU Thank YOU! Can I put a smiley face in a newsletter article?
To sum it up I want to continue to encourage you to participate in YOUR Society and to take advantage of all the membership benefits! There are many committees to be involved with, and ongoing activities that support your professional development whether at an individual level or at a company level. All you have to do is participate.
Looking forward to interacting with you all ongoing into the
future!
“Whether you believe you can do a thing or not, you are correct.” ~ Henry Ford
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Upcoming Events
Office of Professional Responsibility Director Karen Hawkins will provide a Circular 230 overview and discuss key provisions and responsibilities for tax professionals in a May 7 webinar.
A May 9 webinar will cover tax-related identity theft, victim protection
and assistance, combating online fraud and tips practitioners can use to
protect themselves and their clients from identity theft.
IRS Updates and News Releases
New Practitioner Priority Service for Campus Correspondence Examinations
Tax professionals responding to Campus Correspondence Examination calls and correspondence can access the CCE
Practitioner Priority Service by calling the PPS toll-free number and selecting the Correspondence Examination option.
IRS Nationwide Tax Forum Early Registration Reminder
Pre-register by the deadline and save $129. IRS Nationwide Tax Forum Pre-registration is only available for a limited time. If you have a Preparer Tax Identification Number issued by the IRS, remember to include the correct information to receive your continuing education credit timely. Visit the IRS Nationwide Tax Forum website for more information. The Registered Tax Return Preparer test and the Special Enrollment Exam will be available in all six cities during the tax forums.
Which Form? Chart Explains Foreign Asset Reporting
The new Form 8938, Statement of Specified Foreign Financial Assets, does not eliminate a taxpayer’s obligation to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). Some taxpayers are required to file both. A new comparison chart explains the filing requirements for both Form 8938 and Form TD F 90-22.1.
April IMRS Hot Issues
The April Hot Issues report from the Issue Management Resolution System contains information about penalty relief and more.
SSA/IRS Reporter
The spring 2012 issue of SSA/IRS Reporter (Spanish version) includes:
- Matching social security and IRS earnings totals
- New ADA requirements for businesses
- Reducing the risk of identity theft
IRS Releases Fiscal Year 2011 Data Book
The Internal Revenue Service released the 2011 IRS Data Book, a snapshot of agency activities for fiscal year 2011 – Oct. 1, 2010, to Sept. 30, 2011. During the year, the IRS collected $2.4 trillion and processed more than 234 million tax returns.
Employee or independent contractor?
The recent worker classification webinar is now available on the IRS Video Portal.
Delay for Some Enrolled Agents Awaiting Renewal Cards
Some enrolled agents are still experiencing delays in the processing of renewal applications. For those individuals who timely filed a renewal application and have an enrollment card with an expiration date of March 31, 2012, the card is valid for another 60 days or until receipt of a new card. Enrollment will not expire due to this IRS delay.
Have questions about payment cards or Forms 1099-K?
Payment Card and Third Party Network Payment FAQs will answer many questions about payment card reporting, payment settlement entities and Forms 1099-K. Headliner 328, Form 1099-K Reporting Information for Tax Years 2011.
IRS Seeks Applications for Information Reporting Advisory Committee; Deadline Is May 31
The Internal Revenue Service officially opened the nomination
season for the Information Reporting Program Advisory Committee (IRPAC), a federal advisory group that provides recommendations to the IRS on information reporting issues of concern to both the private sector and the federal government.
New COBRA Audit Technique Guide
A new Audit Technique Guide covers tax examinations involving the continuation of employee health care coverage.
Injured and Innocent Spouse Tax Relief
You may be an injured spouse if you file a joint tax return and all or part of your portion of a refund was, or is expected to be, applied to your spouse’s legally enforceable past due financial obligations. Innocent spouse relief from a joint liability applies only in certain limited circumstances. However, in 2011 the IRS eliminated the two-year time limit that applies to certain relief
requests. IRS Publication 971, Innocent Spouse Relief, explains who may
qualify, and how to request this relief.
Links:
Publication 555, Community Property (PDF)
Form 8379, Injured Spouse Allocation (PDF)
Instructions for Form 8379, Injured Spouse Allocation (PDF)
Form 8857, Request for Innocent Spouse Relief (PDF)
Instructions for Form 8857, Request for Innocent Spouse Relief (PDF)
Publication 971, Innocent Spouse Relief (PDF)
YouTube Videos:
Innocent Spouse Relief English | Spanish | ASL
Podcast:
U.S. Residency Certification User Fee Increases April 1
Beginning April 1, the fee for processing Form 8802, Application for United States Residency Certification, will increase from $35 per application to a flat fee of $85 per application. Presently, there is no limit to the number of certificates issued at the new rate of $85.
IRS Updates the Allowable Living Expense Standards for 2012
The Internal Revenue Service released the 2012 updates to the Allowable Living Expense Standards on April 2. The ALE standards are used to reduce subjectivity in determining what a taxpayer may claim as basic living expenses necessary to avoid undue hardship when the taxpayer must delay full payment of a delinquent tax. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas.
More information on the ALE standards is available at the Collection
Financial Standards Web page.
IRS Revises Publication 1771
The IRS has released Publication 1771 (rev. September 2011), Charitable Contributions - Substantiation and Disclosure Requirements, which explains general rules and specifications for documenting charitable deductions and explains new guidelines that allow charities to electronically mail documentation to donors.
Technical Guidance
Revenue Ruling 2012-13 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the
adjusted applicable federal interest rates, the adjusted federal long-term
rate, the adjusted federal long-term tax-exempt rate. These rates are
determined as prescribed by § 1274.
Announcement 2012-16 announces the July 27, 2012 filing deadline for Telephone Excise Tax Refund requests and confirms that the IRS will continue to process requests for the refund of the wrongfully collected Telephone Excise Taxes described in Notice 2006-50 and Notice 2007-11.
