ASCPA Connections May-June

MAY

•

JUNE

2023

M E M B E R S H I P / A N N UA L M E E TI N G

TABLE OF CONTENTS

FEATURES 6

Time to Renew!

8

SALT Corner

12

Zoebelein on Tax

14

CPE with ASCPA

22

Talking Trust, Ethics and Integrity

2022-23 ASCPA BOARD OF DIRECTORS S. Jon Heath, Chair James White, Jr., Chair Elect Mandy Barksdale Stacy Cummings Keary Foster Matthew Hilburn Kendra James Michael Kassouf Amanda Paul Paul Perry Sarah Propper Joseph Wynn Dennis Sherrin, AICPA Council Rep Jamey Carroll, AICPA Council Rep James Moody, Past Chair CHIEF EXECUTIVE OFFICER Jeannine Birmingham, CPA, CAE, CGMA

Renew your membership for 2023-2024

New Ruling Regarding Sourcing of Income for “Remote” Workers

Our Role as a CPA in Helping Our Clients Handle Mergers & Acquisitions

Check out a preview of our CPE programming for the upcoming season

Meet Anoop Mehta, chair of the AICPA, and read about his visit to four Alabama colleges and Universities.

CONTRIBUTING WRITERS Bruce P. Ely William T. Thistle, II Cathy Whitley Thomas C. Zoebelein, CPA

On the Cover Don’t miss the 104th Annual Meeting!

Hear from Kristin Scroggin and Kimberly Ellison-Taylor June 13 in Birmingham.

Flip to page 18 to read more.

EDITOR Megan G. Hughes, APR

Inside the ASCPA Advertisers in this issue BMSS ............................................................................. 11

Message from ASCPA CEO, Jeannine Birmingham ......... 4 Message from ASCPA Chair, Jon Heath ...................................... 5

The University of Alabama ................. 16 Accounting Practice Sales ................ 28

Member News .......................................................................................................... 24 Classifieds ..................................................................................................................... 27

@ALsocietyofCPAs

May / June

3

FROM THE CEO soon. Archived copies of the weekly report

as AICPA Chair, Anoop’s goals are to help

can be found on our website in the legislative

others grow professionally and personally

report archive section. Check it out at:

and to diversify the pipeline. He is passionate

alabama.cpa/legislative-advocacy.

about the profession and is committed to

These days it seems everyone - firm leaders, individual members, educators, and profession leaders - all want to talk about pipeline issues and how we can better encourage young people to enter the profession. NASBA recently exposed amendments to the UAA rules that would allow a change in the conditioned credit period from 18 to 24 months. As a result

ensuring that opportunities in accounting are extended to the next generation of CPAs. While in Alabama, Anoop visited students from Alabama State University, Huntingdon College, Auburn University at Montgomery, and Auburn University. (See page 23.) Without question, Anoop enjoyed each of his campus visits and learned much from future Alabama CPAs. We learned a lot from Anoop, as well.

of many opportunities to dialogue and

As I conclude, do you hear the beach

learn about the benefits to the pipeline by

calling? Yes, yes you do. The surf’s roar and

increasing the credit period, the ASCPA

the beautiful Gulf Coast beaches are calling

Board submitted a comment letter that

you to join our beach events, Beach Clusters

Happy spring! And, for those of you in public

encouraged NASBA to consider a longer

(June 20-22) in Orange Beach and the SEC

practice specific to tax, welcome back. It

period of no less than 36 months. While many

Conference (July 16- 20) in Gulf Shores. Find

certainly feels like spring at ASCPA. The team

of our candidates take CPA exam sections

out more about these excellent education

has been working extremely hard to plan

and complete those sections while still in

events at alabama.cpa/featured-events. If

programs and initiatives that will carry us

college, that is not the case for everyone,

you need additional information, contact

throughout the new year. To celebrate the

and it would be helpful to many candidates

Kristi Gates, kgates@alabama.cpa.

season, I hope the first thing that everyone

to have more time to complete the exam. If

does is register for the 104th Annual Member’s

you would like a copy of our letter, you can

Meeting. (See page 18.) #AM104 is going to be

find it on our website under News

SO GOOD!

(alabama.cpa/news). Whatever NASBA

Even our office has received a spring update

decides about this one thing, the profession

with new landscaping around the building

still has a lot of work ahead of us to help fill

and a much-needed repair to our balcony

the pipeline needs. Branding, starting salaries,

and back porch area. We welcome you to

organization culture, and yes, the 120-150

stop by anytime. Surprise member visits are

discussion all need attention. I encourage you

the best.

to be a part of the discussions. I am happy to

I hope that you are enjoying our weekly legislative updates. Each issue contains hot topic news for Alabama Statehouse

meet with any of you to learn your ideas and yes, to recruit you and your team to be a part of the solution.

activity as well as bills that we are tracking.

On the positive side of pipeline and student

For example, our reports give readers timely

happenings, ASCPA was thrilled to host

information about the legislature’s actions

Anoop Mehta, CPA, chair of the AICPA,

regarding the $1.06 billion ARPA dollars, and

the world’s largest member organization

now shifts focus to $14 billion in general and

representing the accounting profession.

education budget appropriations. ASCPA

Anoop’s family immigrated to the United

currently does not have a specific CPA bill,

States from India when he was 12. Initially

but we do have several appointments to the

drawn to the profession by the example of

Alabama State Board of Public Accountancy.

his father, a chartered accountant whose

At this writing, the Governor has not made

work took him to three different continents,

her appointment from each of our four letters

Anoop’s enthusiasm was further bolstered

of nominees, but we expect the decision

by a high school teacher who mentored him in accounting studies. During his year

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ASCPA Connections

It has been my great honor to work alongside a colleague and long-time friend Jon Heath this year. Jon has served as ASCPA Board Chair and has provided exceptional leadership in not the easiest of years.

Personally, Jon has taught me the art of intentional listening and proactive planning.

For you Jon, my deepest expression of gratitude and a mighty TR-OJ-ANS!!!

FROM THE CHAIR As we move from winter into spring (and

D.C. to share with our congressional

back and forth, it seems) into summer, and

representatives (both House and Senate)

from the busiest season to a slightly less busy

some of the items affecting our members in

season, I am reminded of Ecclesiastes 3:1,

their service of clients and the public interest.

which states: “There is a time for everything,

We discussed items related to IRS issues and

and a season for every activity under the

reform, accounting’s inclusion in STEM (to gain

heavens….” For instance, the Legislative

access to new funds and talent), national

Session and busy season have ended,

debt and budgeting, and other priorities.

so many of our members can enjoy time

These meetings are an important aspect of

catching up at home, making progress on

ASCPA’s service to you.

personal or firm initiatives, and spending time with family, friends, and loved ones. On the other side of the equation, ASCPA is in the throes of its busy season which includes:

As my time and tenure come to an end, I would like to thank immediate past chair, James Moody, for providing me with an excellent example to follow as Chair. His hard

•

renewing memberships;

•

providing 2023 CPE offerings;

•

preparing for the June 13th Annual

am so excited to welcome James White, Jr.

Meeting at The Club in Birmingham;

as incoming Chair. I am confident that he will

•

evaluating and providing new and innovative offerings to our members.

The Staff and Board of ASCPA are laserfocused on serving our members. To this effort, we held our strategic meeting in April, where we sowed ideas about ASCPA service offerings, pipeline, and investments that we hope will reap outstanding benefits for our members. This Membership edition will highlight some of those efforts.

Speaking of membership, both current and future, I would be remiss if I didn’t directly address the pipeline. We have consistently heard your messages regarding the urgency and importance of this topic. Your ASCPA President and AICPA Council representatives are involved in various discussions with AICPA, NASBA, other state societies, universities, employee leasing providers, and other stakeholders because now is a time to search for solutions; it is not a time to quit in frustration. It is a time to tear down the barriers, and a time to build new opportunities to bring diverse talent and solutions into the profession – more to come

work, leadership, friendship, and dedication of time to the Board are so very much appreciated. I look to this next season and

lead, diligently and wisely, the Board with his thought-provoking insights, charm, and good humor.

I’ll make one last plug before closing.

I encourage each of you take this season and sow – invest in, volunteer, and serve our honorable profession. Various opportunities to get involved exist for you: committees, chapter events, volunteer days, CPE, etc.

Everyone is welcomed and encouraged. You will reap immense benefits from your efforts.

I am humbled by the opportunity and honor to have served as ASCPA Chair. And I believe it is always time to share gratitude and appreciation. Thank you to Jeannine, ASCPA staff, the Board, and all of the volunteers; you’re efforts are inspiring and cherished.

Thank you to our members for placing your trust in this outstanding team to serve you by connecting, protecting, and educating.

I look forward to this next season sowing and serving along-side Jeannine, James, our ASCPA team, and the Board and creating a bright future for the profession and our members in particular.

in this area.

Recently your Alabama AICPA Council representatives made a trip to Washington,

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AS

ASCPA new !

Time to re

now

TIME TO

RENEW

This is a friendly reminder - it’s time to renew your membership dues for 2023-2024! By renewing your membership, you’ll continue to have access to all the valuable resources and benefits that come with being a member of ASCPA, including professional development opportunities, networking events, and access to industry-leading research and publications. Don’t miss out on the chance to stay connected to your peers and stay up-to-date on the latest trends and developments in the accounting profession.

Renew your dues today and continue to enjoy all of the benefits of being a member of ASCPA.

FREQUENTLY ASKED QUESTIONS ABOUT MEMBERSHIP RENEWAL: Welcome to the Frequently Asked Questions section! Here you’ll find answers to common questions about ASCPA membership .

Browse through the questions and their corresponding answers to find the information you need.

Q. What is the deadline to renew my dues?

Our membership renewal period runs from May 1 - July 31.

Q. What do I do if I need to update my email address?

Contact Bethany Booth, Membership & Peer Review Manager, at bbooth@alabama.cpa or 334.386.5751.

Q. How is my contribution to ASCPA’s Educational Foundation used?

The ASCPA Educational Foundation is a 501(C)(3) organization, which provides annual educational scholarships to accounting students who plan to become Alabama CPAs.

Q. What happens if I don’t renew my membership?

Q. What do I do if my organization does not pay my dues, and I am not enrolled in auto renew?

Your membership will be suspended on August 1, 2023, and you will lose all membership benefits. Your status as a member will be terminated Feb. 1, 2024.

Log in to your profile and pay your dues online. You can also print a copy of your invoice and mail a check. Still need help?

We’ve got you covered! Contact Bethany Booth, Membership & Peer Review Manager, at bbooth@alabama.cpa or 334.386.5751.

Q. Can I still be a member if my CPA certificate/license has lapsed or is registered as inactive with a state board of accountancy?

Q. What is the Alabama CPA PAC contribution?

Yes. However, if your certificate/license has been suspended or revoked, you are not eligible for ASCPA membership.

This is a voluntary contribution to the Alabama Society of CPAs Political Action Committee (Alabama CPA PAC). The PAC effectively ensures that your profession’s best interests are represented every year. It supports state legislators and candidates who support CPAs and business interests. The PAC allows us to remain active, so we have direct access to lawmakers when legislative issues arise.

Q. Who do I contact if I have questions about my membership, my dues, or if I would like to opt out of the auto renew option?

Contact Bethany Booth, Membership & Peer Review Manager, at bbooth@alabama.cpa or 334.386.5751.

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New Ruling Regarding Sourcing of Income for “Remote” Workers

By Bruce P. Ely & William T. Thistle, II

From time to time, we’ll get a question from a client that’s looking to hire a new employee. It goes something like this – “This candidate is just what we’ve been looking for. We’ve been trying to fill this position for months. Her experience is perfect. [Etc. Etc.] She wants to work remotely in [neighboring] State X, which we’re fine with, and she wants us to withhold State X income taxes.

Can we do that? If we do, will we have to start filing corporate income tax returns in State X? Oh. Really?!?! Can we just withhold Alabama taxes from her paycheck instead? Or maybe treat her as an independent contractor?”1 Most employees live and work in the same state. But, that’s increasingly not the case.

The conversation above underscores the fact that most states2 historically took the position that where an employee performed services determined the state to which withholdings should be remitted, although, individuals are generally subject to tax on 100% of their income (regardless of where it was earned) in their state of residence.

A recently-published ruling by the Alabama Tax Tribunal directly confronts that general rule of thumb and could impact your employer-clients who had one or more of their workers move to another state in light of COVID – and who remained as remote workers. See Bollinger v.

Alabama Department of Revenue, Dkt. No. INC. 22390-LP (March 8, 2023).

In Bollinger, the taxpayer worked for BBVA/ Compass during early 2020 and reported to its Homewood, Alabama office. During COVID, many offices were ordered to close and this individual was forced to work remotely from his apartment.

With BBVA’s permission, he relocated to Idaho, where his family lives. He continued to work for BBVA until October 2021 and was still living in Idaho at the time of the Tribunal hearing earlier this year.

The taxpayer moved to Idaho with the stated intent of residing there permanently, and even voted in Idaho, but alas, he didn’t relinquish his Alabama driver’s license, simply because it hadn’t

expired. The biggest problem, however, was that BBVA issued a Form W-2 for that year, care of his former Alabama address.

The Department of Revenue first asserted that he hadn’t abandoned his Alabama domicile and was taxable by Alabama on all income he earned in 2020. Not surprisingly, however, the Tax Tribunal ruled in the taxpayer’s favor on the change of residency issue.

In the alternative, the Department argued that even if he was an Idaho resident for most of 2020, his entire salary was nevertheless taxable to Alabama because of its source. The Tax Tribunal agreed with the Department’s sourcing argument, citing Ala. Code § 40-18-2(7), providing that “every non-resident individual receiving income from property owned or business transacted in Alabama” is subject to Alabama income tax.

Although the statute doesn’t mention salary or wages, the Department’s rule addressing the gross income of nonresidents does, specifically stating that “[t]he gross income of a nonresident includes compensation for personal services only to the extent that the services were rendered in this State.” See ADOR Rule 810-3-14-.05(1)(a).

That rule further provides that “[c]ompensation for personal services rendered by a nonresident outside of [Alabama] and not connected with the management or conduct of a business in [Alabama] is excluded from gross income even if payment is made from a point within this State. . . .” ADOR Rule 810-3-14-.05(1)(b). Additionally, the rule states that “the test of physical presence is used to determine the situs of the rendition of the services” if payment is made for services performed partially within and partially outside Alabama.

The Tribunal addressed that regulation head on, as well as a 2013 Administrative Law Division ruling in favor of the taxpayer in similar circumstances based on the regulation. The Tribunal admitted the case seemed analogous, but concluded that the Tax Tribunal isn’t bound by decisions of the

SALT CORNER

former Administrative Law Division and overruled the decision.

The Tribunal then focused on the statutory phrase “business transacted in Alabama,” ultimately concluding that “the Taxpayer was clearly engaged in business, i.e., a regular and legal employment with BBVA, which was in Alabama.” Moreover, “because of the availability of remote work…, the Taxpayer’s physical presence in Alabama was not needed in order for him to maintain his employment in Alabama [emphasis ours].” The Judge pointed out that the taxpayer continued to work remotely post-COVID and “reported to the same Alabama supervisors to whom he had reported while working physically in Alabama.” Therefore, the taxpayer owed Alabama income tax on his salary even though part of that income accrued while he was working in and a resident of Idaho. It’s doubtful the taxpayer will appeal a $33.72 judgment against him. We also don’t know if he could claim a credit against his Idaho income tax obligation for the Alabama income tax withheld from his salary.

© Bruce P. Ely / William T. Thistle, II Bradley Arant Boult Cummings LLP. April 2023

In light of this potentially landmark ruling, it may be wise to reconsider income tax withholding by employers and/or income tax filings by nonresident employees. If you have any questions about this ruling, please don’t hesitate to contact one of the authors - Bruce at bely@bradley.com or Will at wthistle@bradley.com.

Suffice to say, this scenario isn’t a good one for classifying the new worker as an independent contractor. For more on this issue and ways to mitigate the risk, please register for the ASCPA’s annual Beach Clusters, June 20-22 in Orange Beach, Alabama, with Bruce Ely as discussion leader.

1

A number of states have reciprocal arrangements with certain other neighboring states that allow for withholdings to be based on residency.

2

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FROM AON

From the CPA Shortage to Pending Legislation: Four Employment Practices Risks Accounting Firms Face

By Cathy Whitley, Senior Risk Advisor, Aon

Over the last few years, the talent conversation has loomed large for accounting firms in Alabama and across the country – from struggles with the accountant shortage to new and pending regulations impacting employee compensation. And these issues just don’t create challenges for CPA firm leaders to navigate, they can also lead to employment practices liability (EPL) risks that require careful attention and, often, new mitigation strategies.

As we enter the second half of the year, here are four potential talent risks for CPA firm leaders to have on their radars.

CPA Shortage The situation: Over the last two years, more than 300,000 accountants and auditors have left their jobs, according to the U.S. Bureau of Labor Statistics. At the same time, the Bureau has projected demand for industry professionals to continue to grow at a rate of 6% between 2021 and 2031.

To address their talent shortfalls, firms have turned to tapping virtual employees. And small and midsized firms are increasingly taking a page from the larger firms’ book by recruiting beyond their state and even national borders to meet client demand, according to a recent Wall Street Journal story.

and hold employers accountable. And more states – from California to New York – have enacted pay transparency laws.

The EPL takeaway: Firm leaders need to constantly monitor the evolving local, state and federal regulatory environments so they can take appropriate, timely action to comply with new laws.

Mergers & Acquisitions The situation: M&A activity continues to unfold across the industry, bringing together firms of different sizes, focuses and cultures, and in some cases joining accounting firms and private equity firms. While these unions can bring new opportunities for the combined business, they also trigger decision-making that directly impacts the staff. What will the new culture be? How do HR policies and procedures need to evolve? What do compensation packages and staff career paths look like? These important decisions can help secure employee retention or they can spur waves of attrition. And in either scenario, these changes can lead to EPL risks and potential lawsuits.

The EPL takeaway: If a firm is considering or planning a merger or acquisition, leadership needs to prioritize the talent and culture conversation – from understanding who needs to be involved in decision-making and strategy to how state regulations might impact changes to policies and procedures.

The EPL takeaway: Firm leaders cannot assume that the rules that apply to their traditional full-time employees are the same for virtual employees – particularly those who are out of state or out of country. If a firm is looking to hire a virtual employee, leaders need to do their homework on local regulations and understand how those might interact with that employee’s hiring.

Noncompetes The situation: Noncompete clauses, particularly for senior-level employees, are a fact of life at many accounting firms.

While some states prohibit noncompetes, historically there has not been federal regulation about noncompetes in the United States.

Equal Pay and Pay Transparency The situation: The conversation about equal pay and pay transparency is gaining momentum. For example, in March 2023, the Paycheck Fairness Act was reintroduced; if passed, this legislation would strengthen the Equal Pay Act of 1963 and help ensure women can challenge pay discriminations

But in January, the FTC proposed a rule that could change that. According to the FTC, the proposed rule is “based on a preliminary finding that noncompetes constitute an unfair method of competition and therefore violate Section 5 of the Federal Trade Commission Act.” If enacted, the FTC’s rule would generally prohibit employers

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ASCPA Connections

from using noncompete clauses and, specifically, it would make it illegal to: •

Enter into or attempt to enter into a noncompete with a worker;

•

Maintain a noncompete with a worker; or

•

Represent to a worker, under certain circumstances, that the worker is subject to a noncompete.

The proposed rule would apply to independent contractors and anyone who works for an employer, whether paid or unpaid. It would also require employers to rescind existing noncompetes and actively inform workers that they are no longer in effect.

The risk management takeaway: The FTC accepted public comments on the proposed rule until April 19, 2023 to guide its decision-making. Firm leaders can sign up for updates from the FTC for more insights on the rule and to monitor its progress.

This article is provided for general informational purposes only and is not intended to provide individualized advice.

About the Author: Cathy Whitley is a Senior Risk Advisor with Aon who works closely with members of the Alabama Society of CPAs to help safeguard their livelihood from risk exposures they face in the profession. An insurance professional for more than 30 years, you can contact Cathy by phone – 214-244-0702 or email – cathy.whitley@aon.com to find out more about the AICPA Professional Liability Insurance Program. Connect with Cathy on LinkedIn.

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Our Role as a CPA in Helping Our Clients Handle

Mergers and Acquisitions Zoebelein on Tax

I want to dedicate this article to my wife of 50 years, Christine, who is going through some medical issues. While sitting in the hospital room with her, Christine suggested “why don’t you write an article.”

I hope you find this both interesting and helpful..

I hope I am not too late in writing this article, as I suspect mergers and acquisitions have slowed due to the rise in interest rates. I have been in practice for over 50 years. As such, I have been involved in many both sales and acquisitions. In the sales of corporations (including S corporations) the seller wants to sell stock, while the buyer wants to buy assets. That puts them at cross purposes and is where we can help our clients. If the buyer purchases stock, any premium paid will be locked in the purchased stock. The only time it can be released is on the sale of the stock. The other issue with purchasing stock? The buyer is stepping into the place of the sellers, and all the liabilities - known and unknown.

If our client is the seller then we want to make sure the purchase price reflects the additional tax on the sales of assets. If your client has unused net operating loss a sale of assets can help both buyer and you client. You will need to calculate how much recapture you can offset with the NOL. The same is true for S shareholders with suspended losses.

Sometimes you can have a hybrid deal where the buyer and seller agree to making an IRC Section 338(h)(10) which is a deemed sale of assets with sale of stock. I have seen less of this in recent years. Just remember, this election is a corporate-to-corporate election including S corporations. In computing your clients don’t forget to include timing items especially the reserve for bad debts that will give you additional tax basis.

Unlike the sale of stock, the sale of a partnership interest can cause a portion of ordinary income due to depreciation recapture and unrecognized income in the case of cash basis. Your client will have similar issues as the asset sells. Your role as representing the selling client is to mitigate the depreciation recapture in the purchase price allocation. The second item is to negotiate the allocation to noncompete clause in the agreement. The noncompete is tax neutral to the buyer but ordinary income to the seller. Pushing as much to goodwill will increase your client’s capital gain. Often there is a portion of the sales price held in escrow over into the next tax year. This will create an installment element from the deal, so do not forget to installment treatment in the client’s individual tax return.

The reverse is true if you client is the buyer. You want as much to assets such as accounts receivable, inventory, and fixed assets. The rest of the purchase price will default to intangibles amortized over 15 years.

I have used the allocation to noncompete as a negotiation tool in the purchase price allocation as it is a 15 year intangible if noncompete or goodwill. I prefer to have our client file the IRS Form 8594 to insure the allocation of the purchase price is what was agreed to by the parties.

If this is not possible, require that your client has the right of review

before it is finalized. The Form 8594 is required

The buyer is an investment partnership as such

the conversion to the LLC taxable on the

to be filed by both parties

they want my client to convert to a LLC to

deemed contribution to the LLC. I believe it is

get a step up in basis for any premium paid.

looked as a deemed liquidation & contribution

Converting my client’s S corporation directly

to the LLC. I have been told by someone more

into the required Limited Liability Company

expert than I that the IRS will not challenge the

structure would create a taxable gain on

state conversion method and in the case of

the 100% gain based on the offer price. This

there is a merger S operating’s FEIN will survive

includes the 40% rollover that our client still

the merger.

The recent acquisitions I have been involved in require a percentage of rollover equity. I tell my selling clients to discount the value the rollover equity stated in the sales document as if it was valued at zero and only consider the cash in the deal in their decision making. If in the future their rollover equity pays out it will

owns and a less than happy client.

I have been involved in a number of deals

be a bonus. If the client is offered future stock

This is not a time to panic! There is a solution to

where the buyer required a change in

opinions, don’t forget to consider making an

this problem and the reason why I am writing

domicile, such as to Delaware. It includes

83(b) election if the per-share basis is low or

this article. The solution is a very powerful

addition steps by the attorneys to accomplish

zero.

tool to have in your tool box. I have helped

the change in domicile, but the tax result is

clients both as buyers and sellers. The solution

the same.

The issue with rollover equity is to not inadvertently make it taxable. As a rollover equity it takes that percentage of ownership into the new entity at a carryover basis and not taxed until disposed. The rollover

involves the use of an F Reorganization. The secret is to keep in corporate solution which is why the F reorganization comes into play. The steps need to be done prior to the sale.

Now, as a SMLLC former S operating can sell membership units to the buyer. Making the 754 election the buyer will get the required step up and you client can roll his interest into the

of a proprietorship or partnership interest

The first step is to set up a new corporation

buyer’s entity tax free. This is true because

is easy to accomplish tax free but is not as

and make an S election filing Form 2553. This

the rollover units are still in corporate solution

simple if a corporation. In a C corporation

will now be referred to as S Holding. After this

under Rev. Rul. 99-5.

the buyer will normally take over the stock

has been accomplished the shareholders

and exchange for stock of the buyer’s entity.

of the operating S contribute their stock in

This is considered under the reorg section of

operating S to new S holding in exchange for S

the code and is not taxable until the stock

holding stock. S Holding will then make a QSUB

received is sold.

election for S operating by filing Form 8869.

The sale and rollover of S stock is a little more complicated, but far from impossible to get to similar results of the sale of a partnership

This move prevents the S election of operating to terminate due to ownership by a nonqualified shareholder.

interest or C corporation. The issue comes up

Now S operating is a disregarded entity under

when the buyer is not a qualified S shareholder

S Holding by the QSUB. Waiting about three

which 100% of the deals I have been involved

days, the final step can be accomplished. As

in. To make this more relevant, I will use my

a disregarded entity the Regulation states in

most recent sale rollover of one of my S

essence that a QSUB or a SMLLC are the same.

corporate clients.

S operating is then converted into a SMLLC

My S corporate client approached me stating they had been approached by a buyer and needed my help. I first prepared what the

the entity unit requesting that the FEIN from S operating Inc. be transferred to former S operating LLC. I put in language that it was due to a F Reorganization and provide a copy of the merger/conversion paper from the Secretary of State.

corporation into a limited liability company.

This is the most important first step for your

conversion to the LLC uses a merger. I always

client. The client continues telling me that the

like to follow the letter of the Regulation as

buyer wants my client to rollover 40% of his

a safe harbor. I can tell the majority of sales I

ownership in the buyer’s new entity. I know

have been involved with have used the state

from the buyer’s entity that the buyer is not a

conversion route to covert the QSUB into a

qualifying S shareholder.

LLC. This is true when the FEIN preservation is of

and state conversions. I file Form 8832 with

S Holding or by a state conversion from a

The IRC Regulation 1.1361-5(b) Example 3 the

three years, this buyer wants an asset sale.

FEIN is important I do this for both mergers

either through merger into a new SMLLC under

expected gain would be and the tax results.

As typical with sales I have worked one the

There is an optional step where retaining the

Thomas C. Zoebelein, CPA Director of Tax Research Pearce, Bevill, Leesburg, Moore, P.C.

paramount importance. The risk of not using the merger step is that after the QSUB election operating S is a deemed corporation making

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CPE WITH ASCPA We are excited to kick off the 2023 CPE Season! On the next few pages you will find a preview of our CPE programming throughout the upcoming year, including live webcasts, webinars, in-person events and hybrid events featuring in-person and virtual attendance options.

We’ve developed partnerships this year to enhance our CPE offerings. We have partnered with the Georgia Society of CPAs to bring some of their conferences and live webcasts to our members. We have also partnered with CPA Crossings to develop ALOnDemand, a platform that will bring many more On-Demand courses to our members’ fingertips! Read more about ALOnDemand on page 16.

We have a list of CPE FAQs on our website which address accessing your ASCPA account, logging into a CPE course, and finding your transcript. There is also a section on surveys, which must be completed within 7 days after a course in order to process CPE certificates.

Please read over this short FAQ page, which can be found at alabama.cpa/cpe-faq, to ensure you are ready to conquer the 2023 CPE Season.

K2’s Artificial Intelligence for Accounting and Financial Professionals Virtual 6/28/2023 (1 PM-4:30 PM) K2 Speaker | 4 Other

K2’s Biggest Security and Privacy Concerns Virtual 5/18/2023 (9 AM-12:30 PM) K2 Speaker | 4 Other

K2’s Advanced Excel Virtual 5/8/2023 (9 AM-4:30 PM) K2 Speaker | 4 AA, 4 Other K2’s Business Intelligence, Featuring Microsoft’s Power BI Tools Virtual 5/9/2023 (9 AM-4:30 PM) K2 Speaker | 8 AA K2’s Excel Pivot Tables for Accountants Virtual 5/10/2023 (9 AM-4:30 PM) K2 Speaker | 4 AA, 4 Other 2023 Not-for-Profit Conference Virtual 5/16/2023 (7 AM-3:20 PM) Various | 8 CPE* 2023 Restaurant & Hospitality Conference Virtual 5/17/2023 (7 AM-3:10 PM) Various | 8 CPE* 2023 Employee Benefit Plan Conference Virtual 5/18/2023 (7 AM-3:15PM) Various | 8 CPE*

14

K2’s Advances QuickBooks Tips and Techniques Virtual 5/18/2023 (1 PM-4:30 PM) K2 Speaker | 4 Other

2023 Annual Meeting In-Person 6/13/2023 (8:25 AM - 3:55 PM) Various | 2 AA, 4.6 Other

K2’s Best Word, Outlook, and PowerPoint Features Virtual 5/19/2023 (9 AM-12:30 PM) K2 Speaker | 4 Other

Fit for the Future: Leveraging Technology To Attract Talent & Client Virtual 6/15/2023 (12 PM-12:50 PM) Emiley Parker | 1 Other

K2’s Data Analytics for Accountants and Auditors Virtual 5/19/2023 (1 PM-4:30 PM) K2 Speaker | 4 Other

Reference Rate Reform Virtual 6/15/2023 (1 PM-1:50 PM) Various | 1 AA

Bad Things that Happen When CPAs Run Out of Time Virtual 5/23/2023 (8:30 AM-10:10 AM) Jim Martin | 2 Ethics K2’s Technology Conference Virtual 6/1/2013 (8 AM-4:05 PM) Various | 8 Other K2’s Technology Conference Virtual 6/2/2023 (8 AM-4:15 PM) Various | 8 Other Top 3 Disrupters Facing CPAs Virtual 6/8/2023 (8 AM-3:45 PM) Various | 8 Other

K2’s Working Remotely- The New Normal Virtual 6/29/2023 (9 AM-12:30 PM) K2 Speaker | 4 Other K2’s Emerging Technologies, Including Blockchain and Cryptocurrencies Virtual 6/29/2023 (1 PM-4:30 PM) K2 Speaker | 4 Other K2’s Ethics and Technology Virtual 6/30/2023 (9 AM-12:30 PM) K2 Speaker | 4 Ethics

2023 Beach Clusters In-Person 6/20/2023 - 6/22/2023 Various | 24 CPE available

K2’s Everything Google! Their Most Effective Tools, Apps & Services Virtual 6/30/2023 (1 PM-4:30 PM) K2 Speaker | 4 Other

Addressing Common Documentation Deficiencies Virtual 6/21/2023 (1 PM-2:40 PM) TBD | 2 AA

2023 Summer Education Conference In-Person 7/16/2023 - 7/20/2023 Various | 20 CPE available

2023 Real Estate Conference Virtual 6/22/2023 (7 AM-3:10 PM) Various | 8 CPE* K2’s An Accountant’s Guide to Blockchain and Cryptocurrency Virtual 6/28/2023 (9 AM-12:30 PM) K2 Speaker | 4 Other

ASCPA BEACH CLUSTERS

JUNE 20-22 HAMPTON INN & SUITES ORANGE BEACH, AL

2023 SUMMER EDUCATION CONFERENCE JULY 16-20 THE LODGE AT GULF STATE PARK GULF SHORES, AL

ASCPA Connections Postcard_SummerSplash.indd 1

3/28/2023 12:06:02 PM

CPE WITH ASCPA CFO Series: How Good Companies Become Great Virtual 7/21/2023 (7:30 AM-11 AM) TBD | 4 Other

Governmental Auditing Update: Yellow Book & Uniform Guidance Virtual 8/8/2023 (1 PM-4:30 PM) Melisa Galasso | 4 AA

Southeastern Accounting Conference In-Person - Atlanta, GA 8/23/2023-8/24/2023 Various | 18 CPE*

Jim Martin City Visits: A&A in the Port City In-Person 9/19/2023 (8:30 AM-4:00 PM) Jim Martin | 8 AA

K2’s Excel Charting and Visualizations Virtual 7/26/2023 (9 AM-12:30 PM) K2 Speaker | 4 Other

Jim Martin City Visits: A&A in the Capitol City In-Person 9/20/2023 (8:30 AM-4:00 PM) Jim Martin | 8 AA

K2’s Hands On with QuickBooks Online Accountant for Public Accounting Virtual 7/26/2023 (1 PM-4:30 PM) K2 Speaker | 4 Other

Jim Martin City Visits: A&A in the Peanut City In-Person 9/21/2023 (8:30 AM-4:00 PM) Jim Martin | 8 AA

K2’s Mastering Advances Excel Functions Virtual 7/27/2023 (9 AM-12 PM) K2 Speaker | 4 Other K2’s Improving Productivity with Microsoft 365/Office 365 Cloud Applications Virtual 7/27/2023 (1 PM-4:30 PM) K2 Speaker | 4 Other K2’s Testing and Auditing Excel Workbooks Virtual 7/28/2023 (9 AM-12:30 PM) K2 Speaker | 4 Other K2’s Intro to Excel Macros Virtual 7/28/2023 (1 PM-4:30 PM) K2 Speaker | 4 Other What’s Going on at the FASB Virtual 8/7/2023 (8:30 AM-12 PM) Melisa Galasso | 4 AA Common Deficiencies in SSARS Engagement Virtual 8/7/2023 (1 PM-4:30 PM) Melisa Galasso | 4 AA What’s going on at the GASB Virtual 8/8/2023 (8:30 AM-12 PM) Melisa Galasso | 4 AA

Jim Martin City Visits: A&A in the River City In-Person 8/9/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

Jim Martin City Visits: A&A in the Queen City In-Person 8/29/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

Jim Martin City Visits: A&A in the City of Champions In-Person 8/10/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

Jim Martin City Visits: A&A in the Magic City In-Person 8/30/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

A&A with Jim Martin Virtual 8/15/2023 (8:30 AM-12 PM) Jim Martin | 4 AA

Jim Martin City Visits: A&A in the Rocket City In-Person 8/31/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

A&A with Jim Martin Virtual 8/15/2023 (1 PM-4:30 PM) Jim Martin | 4 AA K2’s Small Business Internal Controls, Security, and Fraud Prevention and Detection Virtual 8/16/2023 (9 AM-4:30 PM) K2 Speaker | 8 AA K2’s QuickBooks for Accountants Virtual 8/17/2023 (9 AM-4:30 PM) K2 Speaker | 8 AA K2’s Technology for CPAsDon’t Get Left Behind Virtual 8/18/2023 (9 AM-4:30 PM) K2 Speaker | 8 Other

What’s Changing in A&A for Governmental Entities Virtual 9/5/2023 (8:30 AM-12 PM) Melisa Galasso | 4 AA Common Yellow Book & Single Audit Deficiencies Virtual 9/5/2023 (1 PM-4:30 PM) Melisa Galasso | 4 AA Not-For-Profit Accounting & Auditing Update Virtual 9/6/2023 (8:30 AM-12 PM) Melisa Galasso | 4 AA Deep Dive into Common Auditing Deficiencies Virtual 9/6/2023 (1 PM-4:30 PM) Melisa Galasso | 4 AA

Sales & Use Tax Workshop Virtual 9/22/2023 Bruce Ely & Will Thistle | 4 TX 2023 Sole Practitioners Conference Virtual 9/26/2023 TBD | 8 CPE* A&A with Jim Martin Virtual 9/26/2023 (8:30 AM-12 PM) Jim Martin | 4 AA A&A with Jim Martin Virtual 9/26/2023 (1 PM-4:30 PM) Jim Martin | 4 AA Management Accounting Decision-Making Tools Virtual 9/26/2023 (8 AM-3:45 PM) TBD | 8 AA 2023 Financial Accounting & Auditing Conference Hybrid 9/29/2023 Various | 8 AA 2023 Financial Institutions Conference Virtual 10/19/2023 TBD | 8.0 CPE* Keeping Organization Assets Safe Virtual 10/30/2023 (1 PM-2:40 PM) TBD | 2 AA

May / June

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CPE WITH ASCPA

K2’s Technology Conference Virtual 11/9/2023 - 11/10/2023 Various | 8 Other Shorten Month End: Closing Best Practices Virtual 11/10/2023 (7:30 AM-11 AM) TBD | 4 AA 2023 Business & Industry Conference Virtual 11/15/2023 - 11/16/2023

ALOnDemand New this year, ASCPA has partnered with CPA Crossings - one of the foremost providers of quality professional education for CPAs - to offer an on-demand learning solution called ALOnDemand. More than 100 curated courses are available covering a wide range of topics in accounting and auditing, tax, technology and more.

New this year, ASCPA has partnered with CPA Crossings - one of the foremost providers of quality professional education for CPAs - to offer an on-demand learning solution called ALOnDemand. More than 100 curated courses are available covering a wide range of topics in accounting and auditing, tax, technology and more.

Alabama Federal & State Tax Institute Hybrid 11/15/2023-11/17/2023

A subscription is available to ASCPA members that provides unlimited access to all ALOnDemand courses during the calendar year and unlimited CPE credits.

The ALOnDemand subscription gives you the freedom to take CPE when and where you want! While the platform will be new to ASCPA members, a very useful tutorial video is available for all subscribers.

To learn more visit alabama.cpa/ALOnDemand.

2023 Government Accounting & Auditing Forum Hybrid 12/4/2023 - 12/6/2023 Various | 16.0 CPE* Tax Webinar with Jim Martin Virtual 12/12/2023 (8:30 AM-4:30 PM) Jim Martin | 8 TX

*

Some of our CPE programs are listed with an asterisk ( ) behind the CPE credit. This means the agenda is still being finalized, thus the field of study for those hours has yet to be determined. Please check online to see the most updated information regarding these programs.

*

CPE WITH ASCPA

Jim Martin City Visits: A&A in the River City In-Person 8/9/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

Jim Martin City Visits: A&A in the City of Champions In-Person 8/10/2023 (8:30 AM-4 PM) Jim Martin | 8 AA INSTRUCTOR

Jim Martin

Remember Bare Bones A&A Updates?

Jim Martin City Visits: A&A in the Queen City In-Person 8/29/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

They’re making a comeback - but this time with breakfast and a boxed lunch!

Choose from eight programs across the state and hear from Jim Martin as he gives his A&A Update.

Jim Martin City Visits: A&A in the Magic City In-Person 8/30/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

Register for any of these programs by visiting alabama.cpa/city-visits.

Jim Martin City Visits: A&A in the Rocket City In-Person 8/31/2023 (8:30 AM-4 PM) Jim Martin | 8 AA

Jim Martin City Visits: A&A in the Port City In-Person 9/19/2023 (8:30 AM-4:00 PM) Jim Martin | 8 AA

Jim Martin City Visits: A&A in the Capitol City In-Person 9/20/2023 (8:30 AM-4:00 PM) Jim Martin | 8 AA

Jim Martin City Visits: A&A in the Peanut City In-Person 9/21/2023 (8:30 AM-4:00 PM) Jim Martin | 8 AA

CPE WITH ASCPA

Kimberly Ellison-Taylor

Jim Martin

104th Annual Meeting June 13, 2023 | The Club, Birmingham

Kristin Scroggin

Don’t miss the LEADING Panel Discussion, featuring Bill Carr, Mary Stone and Jim White!

These three panel members have committed their lives, time, and talent to advancing the profession. During this panel they will share their experiences and their outlooks, as to the future of the profession.

Karen Miller

Register at alabama.cpa/AnnualMeeting Register at alabama.cpa/AnnualMeeting

ASCPA Beach Clusters - June 20-22 Hampton Inn & Suites Orange Beach, AL Book your room now! Room block rate available until May 20, 2023.

Visit alabama.cpa/beach-clusters-room-block to book your room!

Hampton Inn & Suites provides complimentary breakfast for hotel guests from 6-10 a.m. Those attending both a morning and afternoon session on the same day will receive a boxed lunch from ASCPA, as time between sessions is limited.

Fun Things To Do In Orange Beach: •

COASTAL (a short walk from Hampton Inn & Suites): A waterfront restaurant and open-air bar with tremendous beachfront views and live music

•

Pirate Ship Adventure: Featured on the Travel Channel - a unique form of family entertainment

•

Cruisin’ Tikis: The only Cruisin’ Tiki Bars in town offering a variety of cruises

•

Coastal Arts Center: A multi-studio campus overlooking scenic Wolf Bay and offering many artistic experiences with a breathtaking view

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ASCPA Connections

CPE WITH ASCPA

Agenda

INSTRUCTOR

Kevin Cross

July 16 (1 - 4:40 PM) Who Dunnit? A Game of Frauds with Kevin Cross, CPA, MST, EA INSTRUCTOR

Sandy Michelet

July 17 (8 - 11:40 AM) Tax Update with Lisa McKinney, CPA July 18 (8 - 11:40 AM) Accounting and Auditing Update with Kurt Oestriecher, CPA

INSTRUCTOR

Jennifer Elder

July 19 (8 - 9:40 AM) Technology Update for Accountants with Paul Perry, FHFMA, CDPSE, CISM, CITP, CPA INSTRUCTOR

Kurt Oestriecher

(10 - 11:40 AM) Professional Issues Update with Jennifer Elder, CPA, CMA, CIA, CFF, CGMA July 20 ( 8 - 9:40 AM) Mind the Gap: Leading 5 Generations with Jennifer Elder, CPA, CMA, CIA, CFF, CGMA

INSTRUCTOR

Lisa McKinney

(10 - 11:40 AM) The Power of Effective Feedback with Sandy Michelet, SHRM-SCP, SPHR INSTRUCTOR

Paul Perry

CPE: 20 credits (including 8 A&A hours)

May / June

19

FROM THE PIPELINE

STUDENT SHOWCASE

From Audrey Osborne, President, Beta Alpha Psi, Epsilon Omicron Chapter, Auburn University Our Epsilon Omicron chapter’s executive team recently traveled from Auburn, Alabama to Charlotte, North Carolina to attend the Beta Alpha Psi Mid-Year Meeting. The weekend was filled with dynamic speakers, presentations, and networking opportunities. During day one, we enjoyed Ernst & Young Managing Partner Malcomb Coley’s keynote speech, learned some audit skills while participating in a “Find the Fraud” activity, and attended several meaningful breakout sessions. During our favorite breakout session, we learned from RSM’s Change Management Director Ryan Hirsch on how to create strategic plans that align with both personal and professional goals. Throughout the entire day, speakers touched on the importance of mentorship, changes within the accounting industry, and general career advice. Day two was filled with Best Practices and Chapter Operations presentations. While attending these presentations, we got to hear from other chapters executive teams on how their chapter operates and what makes their chapter special. Some topics worth noting are creative fundraising strategies, combating the pipeline issue, member retention, and effective marketing strategies. We are so excited to take all that we learned from this conference back to Auburn to make our chapter better!

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ASCPA Connections

Dr. Jeff Long

Outstanding Professor Award Recipient The Beta Alpha Psi Chapter in the School of Accountancy at Auburn University recently named Dr. Jeff Long as the 2023 recipient of their prestigious Outstanding Professor Award. His passion for teaching accounting students is unmatched, as you can tell from the inspirational Q&A session featured below. Congratulations, Dr. Long!

Q: What is your favorite part of being a professor at AU? A: My favorite part of being a professor at AU is meeting all the great students in my classes I teach. There are so many impressive students from wide and diverse backgrounds. It is very inspiring to see the future accounting and business leaders work as hard as they do in their pursuit of earning an Auburn degree while planning for their future career. I have enjoyed getting to know some of my students particularly well and have enjoyed listening to their plans after college, often time offering advice to them.

Q: What have you learned through your teaching career?

A: I have learned that students’ needs, experiences, and knowledge are all different. I don’t necessarily see teaching being about the subject matter I am teaching, I see it as helping students find and see their strengths, and how completing my class is just one step along the journey.

I also have learned that students can get just as much knowledge from me sharing my personal experiences during my lectures, as they can from the text books and exams.

Q: What is your main goal as a professor?

A: My main goal as a professor is to teach the accounting subject matter in a way that allows the students to have a solid foundation of the material – not necessarily to make them experts in the particular subject. I also want students to see the big picture of a business from a financial standpoint. But most importantly, I want students to know that integrity, character, and treating others respectfully are more important than intelligence.

Q: Who was the greatest influence in your career path/ life?

A: I would say my mother has been the greatest influencer in my life. As a single mother raising me and my sister, she showed me the importance of hard work. She also instilled in me a foundation to treat others as I would want to be treated.

Q: What advice do you have for students majoring in accounting?

A: My advice is to see accounting as just one step to a broader career. There are so many opportunities that can open up for someone with a strong accounting background.

Don’t be afraid to try something new – or pursue careers outside of accounting. I have friends that majored in accounting at Auburn, became CPAs while starting careers at accounting firms, only to enter other professions later.

One friend is a current attorney and another is an ER doctor.

Don’t think you have to be an “accountant” for the rest of your career.

My advice is to see accounting as just one step to a broader career.

There are so many opportunities that can open up for someone with a strong accounting background.

May / June

21

Meet Anoop Mehta

Talking Trust, Ethics, and Integrity In April Anoop Mehta, CPA, CGMA, Chair of the American Institute of CPAs (AICPA), visited with students from four colleges and universities in central Alabama. His first stop was to Alabama State University in downtown Montgomery. There he met with nearly 100 students and faculty from the Percy J. Vaughn College of Business.

Next, he ventured just a few miles to Huntingdon College. There he met with students from the Accounting and Business Program. Later that evening, Anoop shared dinner with Accounting students from Auburn University at Montgomery.

The following day Anoop headed up I85 to Auburn University. While on campus he met with two groups of students - first with young business and accounting students, and later with students from the Beta Alpha Psi chapter. (He even got a tour of a new athletic facility on campus!)

Accounting - it’s the Language of Business No matter what campus he visits, his message to all students remains the same: Accounting is the language of Business.

While visiting central Alabama, he often spoke to students about how the profession could help them - no matter what path they decided to take.

Whether you take the CPA Exam once, or multiple times, never stop trying. Never stop learning. And always answer when opportunity knocks.

“Every opportunity, no matter how small it is, you have to take advantage of it,” said Mehta. “I did. I just, literally, raised my hand at the end of a conference and said, ‘How do I get involved?’ And that’s exactly what happened. A few years later I became Chairman of the Maryland Association of CPAs.” About the Chair Mehta currently serves as the Chief Strategist for Analytical Mechanics Associates, Inc. (AMA). AMA has worked with government and commercial organizations solving the toughest engineering, science and business problems.

With more than 40 years of experience in government contracting, Mehta provides expertise in key areas of business development, strategic planning, and

operational improvements across AMA. Over his career, Mehta has served in several volunteer roles: the AICPA Board of Directors, the Association of International Certified Professional Accountants (Association) Board of Directors, the AICPA Business and Industry Executive Committee, the AICPA Political Action Committee and AICPA Council.

Mehta was the Chair (2012-2013) of the Maryland Association of Certified Public Accountants (MACPA). He serves on the Government Contractors Committee for the MACPA and chaired the committee for two years (2001-2003).

Mehta is a former board member and past president of the Maryland Space Business Roundtable. He is also a seventh-degree Master Black Belt in Tae Kwon Do and has been teaching martial arts and operating a karate school for the past 35 years.

Mehta has a Bachelor of Science degree in Accounting from the University of Maryland, College Park. He also serves on the Board of Advisors for the University of Maryland’s Robert H. Smith School of Business and Accounting and Information Assurance Department.

Top Row (L-R): Anoop with students from AUM; Anoop visits with Auburn University Accounting majors; Huntingdon College student shakes hands with Anoop before asking his advice; While on campus, Anoop had breakfast with Auburn University Beta Alpha Psi students. Bottom Row (L-R): ASU’s Haley Heard offers Anoop a gift of thanks from the University for his visit; Students and Professors from Huntingdon College group together for a photo to mark the occasion; Anoop’s famous for always wanting a selfie! Here is captures one with students and faculty from ASU; Anoop speaks with two ASU students after his presentation.

May / June

23

MEMBER NEWS

Lacey

BMSS Advisors & CPAs welcomes senior manager, Wendy Lacey! Lacey has almost 30 years of experience in public accounting and will use her expertise to focus on State and Local Tax (SALT) and tax planning strategies for multi-state businesses.

Bern, Butler, Capilouto, & Massey PC is pleased to announce the promotions of Mike Celka, Lara Bern Knight, James Hill, and Jim Crumpton to the position of shareholder.

Mike Celka, CPA has over 30 years’ experience as a CPA and has been with BBC&M for 15 years. He is responsible for managing governmental, small business, and individual clients with audit and tax compliance services. He also coordinates our Celka quality control program. Mike graduated from Troy University with a Bachelor’s degree in accounting.

Lara Bern Knight, CPA (not pictured) is a second generation shareholder and has been with the BBC&M for 21 years. Lara provides clients with accounting & assurance services, and tax planning and compliance services. She specializes in estate and gift areas, family partnerships, closely held business, and the real-estate industry. Lara graduated the University of Alabama with a Bachelor’s degree in accounting and a Master’s of Tax Accounting.

Hill

James Hill, CPA has been with BBC&M for 18 years. His work includes tax planning and tax compliance for numerous clients and has a niche in the construction industry. James Graduated Troy University Montgomery with his Bachelor’s degree in accounting.

Jim Crumpton, CPA joined the Firm in 2007.

He has provided clients with tax planning and compliance services as well as accounting and audit services with a concentration in governmental and non-profit. Jim has also Crumpton been an active member of professional and community-based organizations, serving on various committees and boards. He currently serves as Chairman of Easterseals of Central Alabama, Secretary of Habitat for Humanity Autauga / Chilton Counties, and Vice President of the Prattville High School Soccer Boosters Club. Jim received his Bachelor of Science in Business Administration from Auburn University Montgomery.

24

ASCPA Connections

Machen McChesney, one of the region’s leading CPA and business advisory firms, is pleased to announce Reid B. Gavin, AuD, MBA, has been named the firm’s new Chief Operating Officer.

A senior executive with 15 years of experience, Reid excels in leading organizations and teams to deliver excellence to clients while driving sustainable growth. Throughout his career, he has held executive roles in operations, quality Gavin assurance, and business development in various medical provider establishments.

Reid has a strong track record of challenging organizations to achieve their potential. As Machen McChesney continues to evolve and grow, Reid’s operations expertise will be key in accomplishing our goals to better serve clients, recruit and retain top talent, and positively impact our communities.

Reid obtained his MBA from the University of TennesseeChattanooga, his Doctorate in Audiology from Auburn University, and his Bachelor of Arts in Mass Communication from Auburn University.

We are excited to have Reid officially join Machen McChesney, said Michael D. Machen, CPA, CVA, the firm’s managing partner. “He complements our highperformance culture, and his impressive execution of achieving results makes him the perfect choice to lead operations as we continue to grow and “Return Value.”

Financial integrity earns Presbyterian Home for Children Four-Star Rating from Charity Navigator The nation’s leading evaluator of charities has given the Presbyterian Home for Children a top rating in recognition of its operational excellence and integrity. Their board of trustees credits two ASCPA members: CEO Doug Marshall and Controller Sam Allison.

The Home, located in Talladega, earned a coveted Four-Star Rating from Charity Navigator, a designation achieved by only one in four charities. After an extensive evaluation, the Marshall Allison Home earned high marks for its financial efficiency, sustainability and trustworthiness, as well as its commitment to good governance practices.

Charity Navigator said the Four-Star Rating designates PHFC as an official “Give with Confidence” charity, indicating that the organization is using its donations effectively based on Charity Navigator’s criteria. Charity Navigator has been an unbiased and trusted source of information for more than 11 million donors annually.

FIRM NEWS BMSS Advisors & CPAs Accounting Today 2023 Recognition We are thrilled to announce that BMSS is now ranked the #106 largest firm in the United States

by Accounting Today. BMSS has also been named a 2023 “Firm to Watch” and “Regional Leader” for another year.

BMSS Earns “Best Place for Working Parents® 2023” Designation BMSS is honored to be named one of Huntsville’s “Best Place for Working Parents®” for 2023!

As a firm, our goal is to provide excellent work to our clients, while emphasizing life/work balance for our team members.

BMSS Presents: Leadership Lessons from the War in Ukraine On March 21, Duncan Hulsey, Ph.D. from Blankenship & Seay, dove into why Russia has been largely unsuccessful in its war in Ukraine.

What sets the countries apart is the difference in leadership styles, with Putin’s desire to keep all decisions and reasons at the highest possible level, while Zelenskyy delegates and makes use of social media to communicate with the public. To watch the webinar recording, scan the QR code or go to “Previous Webinars” under “Events” at bmss.com.

Subcontractors Association of Alabama In March, our team members met with general contractors from all over the southeast at the SubAla Meet the GC’s Expo.

Mauldin & Jenkins Named One of Accounting Today’s Top 100 Firms, Regional Leaders for 2023 For the 29th year in a row, leading accounting and advisory firm Mauldin & Jenkins is proud to share that it has been named one of Accounting Today’s Top 100 Firms for 2023.

Coming in at number 73, the firm jumped four spots over last year’s ranking.

In addition to a Top 100 ranking, Mauldin & Jenkins was one of 12 Georgia firms to also be named one of Accounting Today’s Regional Leaders for 2023. The Southeast had the highest average firm growth rate for the year, increasing 8 percentage points over last year.

Multiple geographic and strategic service line acquisitions as well as increased efficiency due to new technologies are just a few of the contributing factors Managing Partner Hanson Borders credits to the firm’s significant growth over the past year.

“I am proud of the way our firm has responded to clients’ evolving needs,” said Borders. “Focusing on new avenues for growth both geographically and in industry specialization has allowed us to better align our services with our client’s values and financial goals.”

Innovations to traditional service areas are also responsible and reflect the industry’s overall transformation.

“Due to the vast number of technological advances that have emerged over the past several years, we have seen a shift in the way traditional services are performed,” shared Borders. “The industry’s expansion beyond conventional accounting needs and the adoption of new technology has provided us with opportunities to broaden the scope of our services and expertise, increase efficiency, and better serve the needs of our clients.”

Warren Averett Named A Top 100 Firm, A Top Tax Firm And A Regional Leader By Accounting Today Warren Averett CPAs and Advisors was named on three of Accounting Today’s lists for 2023. The firm has been named a Top 100 Firm, a Top Tax Firm and a Regional Leader. These lists are ranked based on 2022 revenue, and other information that firms provide, and showcase accounting firms that have shown growth and innovation.

To determine these rankings, Accounting Today surveyed approximately 300 tax and accounting firms from all over the country. The results provided meaningful insights into the landscape of the accounting profession.

Warren Averett was ranked #42 on the Top 100 Firms list.

The list reported the strongest growth (based on combined revenues of the 100 firms) in almost 25 years, and overall employee numbers grew despite the ongoing war for talent. The firm placed at #3 as a Regional Leader in the Gulf Coast, which covers the states of Alabama, Florida, Louisiana and Mississippi. Lastly, the firm received the Top Tax Firm designation, distinguishing Warren Averett from other accounting and advisory firms within their local footprints.

“It is an honor to receive these distinctions from Accounting Today,” said Mary Elliott, CPA, the firm’s Chief Executive Officer. “We are always striving to showcase our firm’s strength, presence and leadership in the accounting industry, and each of these designations is evidence of our team’s passionate commitment to support and serve our clients well.”

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Congratulations to Alabama’s newest CPA Licensees The following individuals have successfully passed all four parts of the CPA exam - Congratulations!

Colleen T. Aldridge, Peachtree Corners, GA

Lindsey C. Goddard, Montgomery

Connor A. Raley, Silverhill

Katherine E. Almond, Huntsville

Christopher L. Gorbatoff, Florence

Luz Y. G. Ramos, Birmingham

Cameron E. Ballard, Charleston

Hailey E. Green, Vestavia Hills

Nathaniel J. Reed, Birmingham

Kevin M. Bannon, Madison

Chloe E. Greene, Athens

Stephen L. Reynolds, Birmingham

Christina A. Baur, Cummings, Ga

John M. Haubert, Oro Valley

John C. Schultz, Birmingham

Jesse W. Beck, Meridianville

Shelly A. Hayes, Orange Beach

Larkin E. Schultz, Memphis, Tn

Candra Naomi Bessent, Idalou, TX

Adam D. Jenkins, Trussville

Mary B. Schwambach, Birmingham

Tia L. C. Buchans, Meridianville

Lindsey A. Little, Huntsville

Kierra N. Sims, Birmingham

Tiffany Diane Charles, Decatur

Andrew P. Lofaso, Mobile

Crystal B. Southerland, Mountain Brook

Hallie Grace Cole, Winfield

Sarah E. Louviere, Birmingham

Bradley M. Spotanski, Maryville

Katelyn Marie Cowie, Warrior

Christian F. Madison, Locust Fork

Thomas E. Vermeer, Birmingham

Michael H. Davis, Bloomington, IN

Ian J. Mckee, Birmingham

Madeline Anne Walsh, Fairhope

Sara E. Davis, Millbrook

Mallie D. Miller, Vestavia

Joseph E. Ward, Raleigh, NC

Trenton T. Dean, Birmingham

Judson S. Motes, Pelham

Collin H. Wheeler, Homewood

Taylor Nicole De La Parra, Orange Beach

Joseph M. Nicastro, Pell City

Chaney R. Williams, Birmingham

Ivey P. Dyer, Albuquerque, NM

Rossouw K. Norval, Birmingham

Adam C. Willis, Hoover

Arianne E. Esteve, Huntsville

Benjamin C. Pace, Homewood

Rebecca Grace Wolfe, Birmingham, Al 35242

Caroline B. Ewald, Gilbertown

Autumn K. L. Perkins, Huntsville

David Michael Yancey, Atlanta, GA

Kay S. Frye, Gulf Shores

James B. Primm, Bentonville,

These individuals completed all four parts of the CPA exam between Jan. 1 - Feb. 28, 2023.

Sarah

meet

Sarah Lowery Programs Assistant Sarah Lowery is a native to Montgomery and graduated from Ezekiel Academy. She serves as our Programs Assistant. Sarah has over 2 years of experience in customer service. She grew up volunteering in her community and now helps in fulfilling our daily tasks. She lives in Montgomery with her family and two cats.

Joined ASCPA staff March 6, 2023 slowery@alabama.cpa | (334) 386-5754

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SELLING YOUR FIRM IS COMPLEX. LET US MAKE IT SIMPLE. Accounting Biz Brokers has been selling CPA firms for over 18 years and we know your market! Our brokers are Certified Business Intermediaries (CBI) specializing in the sale of CPA firms. We are here to help you navigate through the entire sales process. Contact us TODAY to receive a free market analysis. Listings include: •

NEW: Chattanooga, TN Area $2.115M;

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W Middle TN $350k;

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NEW: Metro DeSoto County, MS (Memphis Area) $1.1M;

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East Memphis Area $520k-SOLD;

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East Memphis Suburb $950k-SOLD;

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Knoxville 600k-SOLD;

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Bartlett, TN Gross $550k-SOLD;

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NE MS Tax & Bookkeeping Firm Gross $850k-SOLD.

For more information Kathy Brents, CPA, CBI. Cell 501.514.4928 | Office 866.260.2793 | Kathy@AccountingBizBrokers.com or visit us at www.AccountingBizBrokers.com .

YOUR PRACTICE WANTED Thinking about selling your practice? Accounting Practice Sales delivers results, bringing you the best price, optimal terms and a buyer who represents an ideal fit for your clientele. Contact us today for a confidential discussion.

Our current listings include: •

Tuscaloosa CPA grossing $175K * Available *

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_Montgomery area CPA grossing $280K * New *

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_Okaloosa County, FL (near AL border) CPA grossing $365K * New *

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Knoxville practice grossing $195K * Available

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_Southwest TN / Northeast MS tax practice grossing $160K * Available *

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_East Nashville CPA grossing $210K * Available *

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_South of Knoxville, TN CPA grossing $405K * Available *

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_Near Tuscaloosa & Birmingham CPA grossing $55K * Sold *

For more information on these listings or to sell your practice, contact Lori Newcomer, CPA and Tim Price, CPA at (888) 553-1040 or PNgroup@APS.net, or visit www.APS.net.

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The Alabama Society of Certified Public Accountants 1041 Longfield Court P.O. Box 242987 Montgomery, AL 36124

YOU

When are surrounded by results…

Success FOLLOWS!

$1 Billion+ in Practice Sales

Greatest Number of

Most Recognized

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We’ll sell YOUR practice for the highest price and best terms.

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Delivering Results - One Practice At a time Lori Newcomer, CPA & Tim Price, CPA PNgroup@aps.net

888-553-1040

www.APS.net ASCPA Member