AZ CPA November/December 2023

AZ CPA November/December 2023

City Snapshot: Welcome to Tucson

The Arizona Society of Certified Public Accountants y www.ascpa.com

Selling Your Practice?

Call Today Sell By Year End!

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Delivering Results - One Practice At a time Sherif Boctor, CPA (Licensed in CA)

Sherif@APS.net

888 783 7822 x1 www.APS.net

TURN YOUR AZ TAX LIABILITY INTO CHANGE FOR GOOD!

Invest your Arizona taxes with FSL to: Offer affordable rents & mortgages

602-285-1800 | WWW.FSL.ORG

Nourish families with healthy meals Promote improved quality of life Uplift family caregivers

Four Ways You Can Change a Child’s Life through Scholarships!

AZ Individual Tax Credits AZ Low Income Corporate Tax Credit AZ Disabled Displaced Corporate Tax Credit Changing Lives Donations and Planned Gifts (Non-Tax Credit)

“Thank you for your support!”

602-218-6542 | WWW.CEAZ.ORG

Catholic Education Arizona is an IRS 501(c)(3) nonprofit charitable organization and has never accepted gifts designated for individuals. Per state law, a school tuition organization cannot award, restrict or reserve scholarships solely on the basis of donor recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.

AZ CPA The Arizona Society of Certified Public Accountants President & CEO Editor

Oliver Yandle Haley MacDonell Heidi Frei

Advertising Board of Directors Chair Chair-Elect Secretary/Treasurer Directors

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520.512.5438

YEARS

ibescholarships.org

AZ Corporate Tax Credit Largest Educational Tax Credit Ask About 162 Deduction C & S Corps | Insurance Companies | LLC's with S Election

AZ Individual Tax Credit Solicit STO Funds While on ESA* Largest Individual Tax Credit Kids | Schools | General Fund Online Application

Help Arizona Kids Phone | Chat | Email Support | Pay With Credit Card Simple 5 Minute Process *if eligible Notice (A.R.S 43-1603): A school tuition organization cannot award, restrict, or reserve scholarships based solely on a donor’s recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.

Connect with More Arizona CPA Stories You can now follow the Arizona Society of CPAs on Instagram: @ArizonaCPAs. You’ll find more opportunities to participate in service events and discover the stories behind the careers of other CPAs.

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AZ CPA NOVEMBER/DECEMBER 2023

Andrea Levy Lauren Murro Eugene Park Austin Billingslea Ben Cilek Dave Collins Tithi Debnath Marissa Graves Joe Heidleburg Ignatius Jackson Gabby Luoma Dennis Osuch Lisa Parke Jesse Porras Stella Shanovich

Immediate Past Chair Rachael Crump AICPA Council Members Mike Allen

Jared Van Arsdale

AZ CPA is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends to the accounting profession. It is distributed six times a year as a benefit to ASCPA members. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in articles or advertisements within this publication.

Opinions expressed by contributors are not necessarily those of the ASCPA. Arizona Society of CPAs 410 N 44th St., Suite 205 Phoenix, AZ 85008-7604 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 www.ascpa.com

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Volume 39 Number 6

AZ CPA

City Snapshot: Welcome To Tucson

November/December 2023

Features City Snapshot: 9 Welcome to Tucson

By Haley MacDonell

14 ASCPA 100% Club Tips to Resolve 17 Top Federal Tax Disputes Columns & Departments

By Adrian Ochoa

Chair’s Message by Andrea Beth Levy, CPA

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Member News

7

Quick Quiz

31

Science of Stress, 23 The and How it Works for You

By Dr. Brooke Stuart

28 What’s Happening at the ASCPA?

410 N 44th St., Suite 205 Phoenix, AZ 85008-7604 www.ascpa.com

NOVEMBER/DECEMBER 2023 AZ CPA

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ASCPA Chair’s Message New Possibilities & Job Transitions Congratulations to all our members for moving toward closing another calendar year; another year of successful partnership between the ASCPA and our CPA community. Thank you to the firms participating in our 100 Percent Club for their commitment to the ASCPA and high standards. I would also like to extend gratitude to members like you for your continuous commitment, and the ASCPA staff for their meticulous implementation of networking and educational opportunities.

Andrea Beth Levy, CPA Chair, Arizona Society of CPAs Vice President of Finance and Operations Greater Phoenix Chamber

As we transition to a new calendar year, I thought it would be an excellent opportunity to explore different aspects of the job transition process. During my job transitions, I have leveraged my ASCPA membership through networking with members, utilizing the Career Center on the ASCPA website and attending valuable CPE. The CPA designation provides incredible opportunities, and our skills are in high demand.

Let’s explore a few tips and tricks around job transitions.

Values Evaluation: Per Nick Wignall, psychologist and founder of The Friendly Mind, “Values are ideals that guide our behavior, especially in difficult situations. Values are guiding principles that help you make good decisions in the face of uncertainty …” Before landing your next role, pause and determine your personal values. Consider your critical priorities by uncovering the most important aspects of your working life: hierarchical structure, organizational culture, company mission, hours required, modality of location (in-person, hybrid, remote), time of working hours and compensation range. Give yourself the gift of slowing down to find the most effective career move.

Leading resume writer, Krista Morris says, “Employers are not judging your worth. They are simply judging your presentation on a piece of paper. The fix?

Focus your resume on impact and where you moved the needle in each role.”

Show your future employer how successful outcomes from your past can move their strategic plan forward and build highly functioning teams.

Job Auditions: Statistically, job auditions have been proven to improve diversity efforts of companies and predict performance of a future candidate.

However, there is a difference between testing job-related skills and being asked to perform unpaid work. Future employers may ask for sample financial presentations, writing assignments and strategic 90-day plans. Determine if the request is reasonable or if you would like to request nominal compensation.

Clarify the time required to complete the assignment and approach it with an open mind. Give space to show your competitive edge and spark. A job transition is a season in life: exciting, interesting and at times difficult.

After interviews, I find myself considering different responses I could have said during the interview. Consider limiting your postgame analysis by incorporating Nick Wignall’s practical solution to overthinking with the 5-5-5 drill, which you can learn more about on ascpa.com/job-transitions. Job transitions provide an opportunity to evaluate personal values and align those values with your daily work.

Thank you to the ASCPA for providing valuable career center information on the ASCPA website; and for providing the opportunity to build important networking connections and career development pathways. We appreciate the latest career development opportunities. Here’s to an incredible year ahead! l

Best, Andrea Beth Levy 6

AZ CPA NOVEMBER/DECEMBER 2023

Member News Rachel S. Karlan, CPA, at Keegan Linscott & Associates was promoted to director of government contract services.

Melissa Seida, CPA, at Keegan Linscott & Associates was promoted to director of audit services.

Sean Tanner, CPA, at Keegan Linscott & Associates was promoted to director of consulting services.

Rachael Crump, CPA, at Insight Enterprises was promoted to Chief Accounting Officer.

Glen C. Evans, CPA, at KPMG was promoted to managing director.

Thank you to Donald Ray Bays, CPA, for his donation to the ASCPA PAC in the last fiscal year.

In Memoriam – Life Member Frank Brady With great sadness, we share the passing of longtime ASCPA member and Life Member Francis Joseph Brady. The ASCPA is grateful for his contributions to the profession, including his service on the ASCPA’s Board of Directors, the international issues committee and technical standards committee. In 2007, Brady was honored as a Life Member in our organization.

To learn more about his contributions to the profession and our Arizona community, visit www.ascpa.com/in_memoriam.

Francis Joseph Brady CPA

NOVEMBER/DECEMBER 2023 AZ CPA

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City Snapshot: Welcome to Tucson

By Haley MacDonell

The Arizona Sun Corridor is one of the fastestgrowing megaregions in the United States. Its population and size make it comparable to Indiana, and it’s expected that Phoenix and Tucson will help double the population in this area by 2040. While Phoenix may get a lot of the national acclaim, Tucson boasts more than half a million residents, making it the 33rd largest city in the country.

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In fact, Forbes Advisor ranked Tucson third in a list of 99 metro areas for accounting degree holders in 2023. The ranking considered factors such as population, CPA/tax preparer offices per 1,000 businesses, median income and median home price. The city has established a foothold for its beautiful desert scenery, historic locations, economic opportunities and foodie scene.

Mikaela J. Knutson, CPA, an accounting and assurance senior manager for BeachFleischman, was born and raised in Tucson.

After studying at Northern Arizona University, she decided return to the Old Pueblo.

“What kept me in Tucson is that it provides the benefits of a bigger city,” said Knutson. “But you still get that small community feel wherever you go.”

Changes around the city bring new manufacturing facilities and apartments, the old Foothills Mall reimagined as a mixed-use neighborhood, and burgeoning construction hubs. Still, Tucson preserves its natural landscape and a Tucsonan’s favorite hobby: hiking.

“On an ideal weekend, I will get outdoors and hike somewhere locally,” Knutson explained. “I like the Brown Mountain Trail, which is on the other side of town. Many people enjoy hiking in Sabino Canyon – so that’s another favorite.”

As a member of the firm’s construction practice, Knutson has seen first-hand the tremendous growth the industry has experienced.

“Several of our clients have a large backlog of projects,” Knutson said. “These companies are constantly hiring workers in hopes of managing the construction boom and completing projects for their customers.”

“A unique aspect of Tucson is the types of businesses here,” said Kaylan Brushwood, CPA, a tax senior manager at BeachFleischman.

“It’s largely local and family-owned, which makes serving clients really rewarding.”

Brushwood makes time to be involved in estate planning groups that meet in person across Tucson about once a month, such as the Southern Arizona Estate Planning Council. The group, comprised of attorneys and wealth advisors within the estate planning community, brings in speakers and hosts collaboration forums.

“I enjoy hearing the perspectives of other professionals because it’s easy to get locked into what CPAs are concerned about,” she said.

“There’s so much camaraderie that can come from being in a room with your peers.”

Brushwood has lived in Tucson twice. The first time, she arrived from Dallas with her husband, who was studying for his graduate degree at the University of Arizona.

The following six years she lived in Colorado, during which Brushwood continued to work for BeachFleischman remotely. In 2021, she returned with her family to the beautiful Sonoran desert.

“It’s the biggest city with a small town feel that I’ve ever experienced,” Brushwood explained. “I often

Kaylan Brushwood hikes with her spouse.

Mikaela Knutson also enjoys getting outside.

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AZ CPA NOVEMBER/DECEMBER 2023

run into people I know. My boys participate in sports, so we’re constantly in fields throughout the city. I get to see and experience a lot of Tucson because of this.”

Alicia White, CPA, senior manager at Keegan Linscott & Associates, also moved to Tucson to study for her graduate degree from the University of Arizona in 2008.

During the recession, she reevaluated her priorities and knew she wanted to do something different. She thought about what she had enjoyed at past jobs and her studies for her undergraduate degree and MBA. On a whim, she stopped in at a local accounting firm.

“I probably said something like, ‘This might be an odd question, but is there anybody here that would talk to me about their profession to

help me get a feel if that’s something I want to do,’” White remembered. “I ended up talking to somebody who had a similar history as mine, someone who didn’t have an undergraduate degree in accounting.”

From that conversation, she decided to pursue her Master’s in accounting, and went on to graduate from the University of Arizona and begin at KLA. Though much has changed in her career since, she loves the chance to get out and meet with clients, many of which are located in southern Arizona.

With so many offices working with hybrid teams, including KLA, the opportunities are rarer to connect in person, but it’s still a priority to stay involved in the business community.

“Our firm is very big into giving back into the community, and there are always organizations looking for qualified people to help and sit on boards,” White said. “It’s something else I enjoy about southern Arizona.”

According to 501c3lookup.org, there are 5,704 501(c)3 nonprofit organizations in Tucson, making it a key player in the region. With the support of her firm, White serves on the board and committees for United Way of Tucson and Southern Arizona and for Greater Tucson Leadership.

“Both of the organizations do great things for Arizona,” she said. “I actually went through Greater Tucson Leadership’s flagship program. I was originally from Buffalo [New York], so it as a great way to get ingrained in the community.”

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Critical Path Institute (C-Path) is a nonprofit based in Tucson with the mission of advancing and accelerating the drug development and approval process to get medications to patients faster. Its founder was the former dean of the University of Arizona’s College of Medicine in Tucson, and now it has over 150 employees on its hybrid team.

Kevin B. Perkins, CPA, is Chief Financial Officer who has lived in Tucson twice and most recently returned in 2019, after 10 years in foreign service with the government.

During that time, he served as finance officer with the U.S. Department of State in embassies and consulates in places like El Salvador, Senegal and Bahrain.

“At the time, my wife and I had three kids who had never lived in the United States,” he said. “We wanted to move back stateside and kept thinking fondly of the years we had

spent [previously] in Tucson and decided to move back here to provide some stability for the family and explore all that southern Arizona has to offer.”

They love everything the city offers: the convenience of a city of a million people in it, without the “hustle and bustle” of Central Phoenix. Still, there are college football games to enjoy at the U of A and plenty of restaurants, as Tucson is a UNESCO City of Gastronomy, designing the city’s culinary heritage of Mexican and Native American traditions. As a family, they enjoy exploring Sabino Canyon in the Coronado National Forest. What may be a destination attraction to some is just a quick 10-minute drive for them.

“If the majority of the state has a Valley perspective,” Perkins said, “I think the misconception is that Tucson is a small town.

Kevin Perkins and his family enjoy hiking in Sabino Canyon.

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AZ CPA NOVEMBER/DECEMBER 2023

Compared to the Valley, just about every place in the country is a small town. People who come here have a very good life and a successful career with lots of opportunities that a metro area with 1 million plus person cities would offer.” l

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Delivering Results - One Practice At a time Sherif Boctor, CPA (Licensed in CA) Sherif@APS.net

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ASCPA 100% Club The Arizona Society of CPAs honors our 100% Club members. Thank you for continuing to support the development of your CPAs to strengthen the Arizona CPA community by ensuring that all eligible CPAs are members of the ASCPA.

A F and P CPAs

CW Clarke Ltd

Herb Anderson CPA, LLC

Abbott Company, Ltd.

Daniel A. Calabro, CPA, PLLC

Horne & Company, LLC

Abdo, LLP

Darin Guthrie, CPA, PLLC

Howard S. Simon, CPA, P.C.

Alyx Cohan CPA, PC

David Lipinski, CPA, PC

Hunter Hagan & Company, Ltd.

Andersen & Sarnowski, P.C.

DeBenedetti & Co., PLLC

Ignite Accounting LLC

Anne Cornelius, CPA, PC

Delores I. Nance CPA, P.C.

Insight Enterprises, Inc.

Anthony Choi, CPA

Dickman & Company CPAs PC

Jaffa Simmons, PLLC

Arevon Energy

Jansen & Company CPAs, PLLC

ATLAS CPAs & Advisors PLLC

Douglas J Kingston CPA / International & Accounting

Baker Tilly US, LLP

Eaton & Kasprzyk CPAs, PC

Ball & McGraw, PC

Eaton-Cambridge Inc.

BeachFleischman PLLC

Edward M. Osinski, Jr., CPA, PC

Benjamin H Field CPA, PC

Eide Bailly LLP

Black & Soli, P.C., CPA

Elliott CPA LLC

Boudreau Consulting LLC

Emelia Mensa, CPA

Busby Sanford Brady CPAs, PLC

Epstein Schneider, PLC

Butler Hansen, PLC

Evers Robinson Ltd.

C. Wesley Addison, P.C.

EY

Cary Millar, PC

FORVIS, LLP

CBIZ MHM, LLC

Four Leaf Financial & Accounting, PLLC

Charles L. Hummel, CPA PC CHS Tax & Business Services, PLLC

Frost, PLLC Fulcrum LLC

CliftonLarsonAllen LLP

Gary L Williams, CPA, CGMA

Colby & Powell, PLC

Ginsburg & Dwaileebe CPAs, LLP

Concierge Consulting and Accounting, PLLC

Gosney & Company, P.C.

Conover Asay CPAs, PLLC

Hanagan CPA, PLLC

Cordova & Jones, PC

Haynie & Company

CPA Financial Advantage, P.C.

HBL CPAs, P.C.

Curosh Law Group, PLLC

Heinfeld, Meech & Co., P.C.

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Hammond, Travers & Tuttle PC

AZ CPA NOVEMBER/DECEMBER 2023

Joanne M. Elsen CPA, PC Johnson Goff, PLLC Karpinski, Bernstein & Adler, PLC KeatsConnelly Keegan Linscott & Associates, PC Kent O. Utter, CPA KML CPA LLC Koeller Thompson CPAs, PLLC Landmark PLC, CPAs Laura S. Leopardi, CPA, PLLC Leonard F. Baker, CPA PC Lisa M. Smith, CPA Lohman Company, PLLC Ludwig Klewer & Rudner, PLLC Lumbard Consulting, LLC Mansperger Patterson & McMullin, PLC Mariner Wealth Advisors Marley Management Corporation Martinez & Shanken, PLLC Mary Beth Wifler, CPA McGrath Nothman PC Mesquite Tax LLC

Michael S. Patinella, PLLC

REDW LLC

Advisors, LLC

Minniti CPA LLC

Regier Carr & Monroe LLP, CPAs

Sprowls and Company, PC

Monica J. Stern, CPA, PLLC

Robert Martin, CPA, Ltd

Stocking and Heard, CPAs, LLC

Morrison, Clark & Company CPAs, PLLC

Roediger Hoff, PLC

Streamline Accounting

Moss Adams LLP

Roger T. Bollard, CPA

Tess L. Ridgway, CPA

RSM US LLP

The Royce CPA Firm PLLC

Safari Club International

The Ruboyianes Company, PLLC

Saunders Company, Ltd

Thomas L Dunbar CPA

Seby & Associates, Ltd., CPAs

Tull, Forsberg & Olson, P.L.C.

Sechler Morgan CPAs PLLC

Ullmann & Company, P.C.

Secore & Niedzialek, P.C.

Upworth, PLLC

Seely, Mullins & Associates, PC

Urke & Stoller, LLP

Semple, Marchal & Cooper, LLP

Valerie A. Lubken PLLC

Shaffer & Danker, CPAs, PC

Vearle M. Jones, CPA

Shippen, Pope & Associates PLLC

Vincent J. Harder, CPA, PC

R & A CPAs

Simmons Tax & Accounting Services LLP

Walker & Armstrong, LLP

R. Michael Beltran, CPA

Singer Tax & Accounting, P.C.

R.C. Thornton Accounting Group, LLC

Skinner Clouse Group PLLC

Weech Financial, PLLC

Ralph Willett CPA, PLC

Slater & Rutherford, PLLC

West, Christensen, DeGomez, & Ignace, PLLC

Splaver & Splaver, CPA, PLC

William M. Perius, CPA

Sportiqe Apparel Co.

WS Weiss CPA PC

Springsteel Investment

YB Company LLC

Ng Accounting, P.L.L.C. Nordstrom & Associates, P.C. O’Malley & Berberich CPAs, PC On-Call Controller Osiris CPA PLLC Patel + Co PLLC Pescatore Cooper, PLC Pioneer Title Agency, Inc. Preston CPA, P.C. Price Kong & Co., CPAs, P.A.

Randy C. Kiesel, CPA, PC RC Acosta & Associates, CPAs

Wallace, Plese + Dreher, LLP

100% Club members convey to their clients, staff and colleagues that they have made a significant commitment to the CPA profession through ASCPA membership. These organizations enjoy additional perks, and there is no additional cost to participate. How close is your firm to 100% Club status? To learn more, visit www.ascpa.com/100club.

We make every effort to ensure the accuracy of this list. If your organization’s name does not appear in this list or is incorrect, or for questions regarding the 100% Club, please email membership@ascpa.com.

We Appreciate You! November is Member Appreciation Month at the ASCPA. We celebrate our members’ support and many contributions to the CPA profession. In appreciation, the ASCPA will raffle off prizes every Monday in November. Winners will be announced on the Connect site. Stay tuned for your chance to win!

Connect: www.ascpa.com/connect NOVEMBER/DECEMBER 2023 AZ CPA

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$1,051

December 31st 2023

$526

Top Tips to Resolve Federal Tax Disputes

By Adrian Ochoa

Resolving federal tax disputes starts as a science and becomes an art. Federal tax disputes often arise because the taxation system depends on voluntary compliance. The primary purpose of the federal income tax is to raise revenue for the federal government and, to achieve this purpose, there must be a high degree of voluntary compliance.

A healthy tax system is crucial to the economy because everything of value that a federal government provides to its citizens — such as national security — flows from the federal tax system. To have a high degree of compliance, however, taxpayers must understand the tax system. Rightfully so, many taxpayers see the income tax as a composite or jumble of statutory provisions resulting from numerous ad hoc legislative decisions.

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Unfortunately, despite its complexity, tax disputes are on the rise. As reported by the Tax Foundation, the U.S. Tax Code is about 2,600 pages. At perhaps 450 words per page, that puts the U.S. Tax Code at well over 1 million words.

In addition, so much of federal tax law is in IRS Treasury Regulations, Revenue Rulings and other IRS guidance. The National Taxpayer Advocate did a Microsoft Word count of the tax law once and came up with roughly 4 million words, approximating 9,000 pages. Given its complexity, it is important to hire a qualified and competent tax representative to resolve tax disputes.

U.S. Tax Code

1 million

War and Peace

788,280

King James Bible

560,000

Harry Potter Series

1 million

DOCUMENT

PAGES

1

Tip #1 Resolve Tax Disputes on the Lowest Possible Level

The ideal time to resolve a tax dispute is at the lowest possible

level. The tax practitioner should always treat the IRS agent with utmost respect and have the perspective that both parties are working as a collective team to resolve the examination issues. IRS agents are usually spread thin. Making their job easier goes a long way.

The IRS examiner will request information from the taxpayer in advance of the meeting via an Information Document Request (IDR). Although a complete response to an IDR is generally best as a rule, sometimes a different approach is needed to conserve resources. For the most part, IRS agents are competent. Like in any field, there are bad apples. See the article from Forbes “Tax Court Saves Taxpayer from the Agent from Hell.”

If the IRS is being unreasonable, an important fact is that IDRs are voluntary. Thus, providing sufficient information that, from the tax practitioner’s perspective is necessary to prove the tax item reported on the tax return(s), is sometimes the best way to conserve resources when there’s an impasse. Sometimes, getting to IRS Appeals quickly may be the best way to resolve the tax dispute. Similarly, when there is a standstill, requesting a meeting with the IRS agent’s manager is helpful. IRS employees are required to provide their manager’s contact information.

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2 3 4

Tip #2

Request Taxpayer Advocate Service Assistance

When it appears that the IRS is being unresponsive or unwilling to resolve an important tax issue, a good recommendation is to have the Taxpayer Advocate Service (TAS) involved. The TAS recommends taxpayers request their assistance when the problem is causing financial difficulty to the taxpayer or his business, the taxpayer is facing an immediate threat of adverse action, and/or an IRS office does not grant the tax assistance the taxpayer requested or does not grant the tax assistance the taxpayer requested in time. For taxpayers who do not have the resources to hire representation, there are also Low-Income Taxpayer Clinics that represent people in disputes with the IRS.

Tip #3 Protect Sensitive and Privileged Information Depending on the taxpayer or scope of the audit, consideration may want to be given to a taxpayer’s risk of criminal prosecution.

If these are a concern, consideration may be given to potential incriminatory statements by the taxpayer and/or preserving Fifth Amendment, attorney client and other privileges.

Tip #4 Use the IRS Independent Office of Appeals

If any issues remain outstanding, the IRS examiner will issue a 30-day letter notifying the taxpayer of their right to appeal the examiner’s adjustments within 30 days of the date of the letter. The IRS Appeals mission is to resolve tax controversies, without litigation, on a basis that is fair and impartial to both the government and the taxpayer. The Appeals Office is separate from and independent of the IRS office that proposed the adjustment and provides a fresh look.

Most cases are settled during the Appeals process. Importantly, the Appeals Office has settlement authority.

Appeals settlements are generally based upon the IRS’s “hazards of litigation” or the likelihood that the taxpayer’s position would prevail if the tax issues were litigated. Appeals have flexibility with settlement parameters and can consider “hazards of litigation” discounts or percentages with respect to particular issues. Appeals may also concede one issue in consideration for another and may move or allocate adjustments between or among the years or periods within Appeals’ jurisdiction.

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5 6

Tip #5 Petition to the Courts

The only judicial forum that permits judicial review prior to

full payment is the Tax Court. To litigate in the Tax Court, the taxpayer must receive a Notice of Deficiency and file a timely petition.

Discovery rules are more informal, and jury trials are not available. The taxpayer can also sue in the United States Court of Federal Claims or United States District Court, but a full payment in satisfaction of tax liability is required.

Tip #6 Request a Collection Due Process Hearing

Once the IRS assesses the taxpayer, the IRS can either place a

lien on or levy the taxpayer’s property if the taxpayer does not pay within the allotted time. The collection due process (CDP) hearing is utterly important and cannot be overstated. The CDP process gives taxpayers the right to appeal levy or lien actions to the IRS Appeals Office.

The alleged abuses of the IRS in its collections activities led to reform of the IRS and its practices, including the creation of the CDP hearing prior to enforced collection.

If a timely CDP hearing is requested, collection action is suspended. If a CDP hearing is not requested within the 30-day period, the taxpayer is only entitled to an equivalent hearing. An equivalent hearing does not give the taxpayer the right to go to Tax Court.

At the CDP hearing, the taxpayer has the right to raise any relevant issues related to the unpaid tax, including collection alternatives. Once Appeals issues a determination, a taxpayer has the right to judicial review of the determination. Although the hearing can take place by telephone, in person meetings are much more effective and should almost always be requested.

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Tip #7 Stay Proactive

It is also vitally important for the tax practitioner to be up to date on new laws and procedures. It has been said that tax law changes every day. Tax Notes and/or the Tax Adviser are a great resource for daily updates. For instance, IRS commissioner Danny Werfel recently announced a plan to focus more tax enforcement efforts on the wealthy and those who abuse the law. The specificity is new, particularly an announced focus on large partnerships. Werfel discussed using artificial intelligence to find patterns and trends among large partnerships and to identify possible non-filers who hold millions in foreign bank accounts.

Adrian Ochoa is an ASCPA member and a tax attorney who practices at Burch & Cracchiolo in Phoenix. He devotes a substantial portion of his legal practice to helping his clients successfully navigate and resolve their federal tax disputes. Adrian leverages his unique insight into government processes to offer his clients costeffective solutions to their tax problems. He has represented clients in all phases of a federal tax dispute, including IRS audits, appeals, litigation, and collection matters.

He earned his J.D. from Cornell Law School in 2013 and an LL.M in tax law from NYU School of Law in 2014. He received a B.A. in accounting, summa cum laude, from the University of Arizona in 2008.

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AZ CPA NOVEMBER/DECEMBER 2023

Don Farmer’s

Tax Update

January 19, 2023 · 8 a.m. - 4:15 p.m.

Desert Willow Conference Center Register at www.ascpa.com/farmer

8

CPE

Credits

This member-favorite event is back!

Tax industry giant Don Farmer uses his signature combination of humor and examples to review developments & planning ideas affecting individual, corporate and business income taxation.

Thank You to Our Sponsors: McGuire Sponsel, Sunflower Bank, Arizona Tuition Connection and Paychex

Included Materials A checklist of expiring tax provisions Suggested planning ideas for businesses and individuals Updated listing of items indexed for inflation

Major Topics • • •

Late-breaking tax legislation for 2023 returns Upcoming regulations modifying the required minimum distribution rules The 2023 credits for energy efficient improvements to

• • •

residences & rentals IRS’s Employee Retention Credit Training Guide Digital asset reporting rules Cases, rulings and regulations impacting on individuals & businesses.

Register at www.ascpa.com/farmer

It’s time to reshape the narrative of our profession. By sharing your story, you’re inspiring the CPAs of tomorrow with the limitless possibilites of a career in accounting. How has the CPA designation unlocked opportunities for you?

➡story Answer questions on our submission form to share your digitally: ascpa.com/MemberMonday ➡invitedShare your interest with us to be as guest speaker or volunteer at our student programming: ascpa.com/studentengagement

| #proudazcpa

thank you who have to the ASCPA members volunteered to share their story.

The Science of Stress, and How it Works for You

By Dr. Brooke Stuart In the medical world and in our society, stress has been highly demonized.

I see articles all the time on “How To Fight Stress” and “Be Stress Free.”

Neither work, and both amplify the problem.

Now, what I love about problems is that they can be solved!

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And if you really think about it, why would you want to eradicate stress? Some of the most meaningful experiences are “stressful” – just think motherhood, public speaking or a big project at work.

What if there was a better way to handle it? What if stress was a message? What if it was actually an opportunity for growth and development, a sign to redirect and change?

Throughout this article, we will explore the ins and outs of stress and go over some simple, yet effective mindset shifts to help you detoxify stress and make it work for – rather than against – you.

The Difference Between Stress & Stressors Stress is the total mind-body response experienced when we perceive that we do not have the resources to handle a life experience.

At its core, stress is a disturbance in homeostasis that results in a series of psychological and physiological adaptations.

A stressor is the stimulus, or the perceived threat, that triggers a stress response such as a final exam, argument or food intolerance.

Simply put, our level of stress is determined by what we are given and how we choose to interpret it. It is the interplay between our genetic predisposition, life experiences, perceptions and choices.

How Stress Affects The Body Initially, our body and mind work together to evaluate an experience and decide whether or not it is a threat to our system based on stored memories, sensory input and processing. If the experience is perceived as a threat, the acute stress response, known as The Fight or Flight Response is activated. This response is produced by a general release from the sympathetic nervous system, priming the organism to fight or flee under attack. More specifically, the Hypothalamic-Pituitary-Adrenal (HPA) axis is set into motion when the hypothalamus receives a signal of distress from one of its many inputs.

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The hypothalamus then signals the pituitary and adrenal glands to set off a cascade of hormones that result in the secretion of adrenocorticotropic hormone (ACTH) and the catecholamines, specifically norepinephrine and epinephrine (adrenaline) simultaneously. The release of these two chemical messengers results in the production of cortisol. This function redistributes energy to the critical organs –such as the heart, the brain and muscle groups that need it most– and away from what does not, such as digestive and reproductive organs.

This response is triggered to boost and redistribute energy in order to give the body increased strength, speed and support in anticipation of an attack.

Did you read that correctly? This response is triggered to help the body rise to the challenge.

Contrary to popular belief, the stress response differs with each experience and is influenced by our perspective of it. However, in order to better understand its effects, let’s go on to discuss the Fight or Flight Response, in general.

AZ CPA NOVEMBER/DECEMBER 2023

During the Fight or Flight Response, your senses are sharpened, your heart starts to race, breathing becomes rapid, blood pressure goes up and other systems are suppressed.

I’m sure you can relate.

After the stressor is no longer present and enough cortisol has been secreted to restore homeostasis, the elevated levels of cortisol in the blood bind to the hypothalamus and pituitary gland to inhibit the production of more cortisol, essentially turning off the stress response through feedback inhibition.

Where The Problem Comes In The problem comes when the acute stress response turns long term and chronic. While the body is prepared to come down from an acute reaction, it is not prepared to be in a prolonged state of tension without relief and proper restoration.

When stress is not managed properly, it can then go on to disrupt the natural rhythm and flow of cortisol throughout the day, and it’s this broken rhythm that can cause unnecessary confusion and chaos.

So, how does this reaction manifest? According to the research, symptoms are diverse and nonspecific and can include, but are not limited to: • Trouble with memory and recall

• Feeling lonely and isolated

• Headaches and pains

• Inability to focus and concentrate

• Sleep irregularities

• Chronic fatigue and exhaustion

• Inability to judge situations and make decisions

• Procrastination and neglecting responsibilities

• Irregular periods and infertility

• Overuse of alcohol and drugs

• Decreased libido

• Anxiety and depression

• Cravings – especially sugar, carbs and caffeine

• Digestive and elimination issues

• Moody, irritable and short tempered

• Dizziness – especially from lying to standing

• Accelerated aging

• Agitated, unable to relax, nervous habits

• Lightheadedness – especially in between meals

• Feeling overwhelmed and incapable

• Skin issues – acne, eczema, psoriasis

• Obesity, increased visceral (abdominal) fat and reduction in the ability to burn fat

• Pessimistic attitude

And the list goes on … In fact, it is not far-fetched to say that stress has the potential to play a part in every chronic disease that exists today.

But, more important than its role in chronic disease, is our perception of it. In fact, the research also says that we can turn stress from a death sentence into an avenue for growth, development, health and well-being if we so choose.

• Cardiovascular disease

How can we learn to detoxify stress and embrace it in a new and empowering way?

Look At Learn From Let Go Of Grow Through

Evolution I use a unique process in my private practice, depicted here, to address the mind and body holistically.

We look at mindset, diet and lifestyle and how to let go of what doesn’t work, incorporate what does, and move forward powerfully in a way that is true to you.

Finally, don’t let the notion of stress amplify it. Stress is a part of the human experience, a natural part of being alive, which is a blessing in it of itself. The next time you experience a challenge, acknowledge it, embrace it, go within and see how you can grow through it. Dive deep and allow it to make you even stronger and more resilient than you already are. Let Go & Grow. l Dr. Brooke Stuart will lead at half-day workshop at Converge23 in November. She is the founder and active president of Let Go & Grow® International and a holistic doctor in private practice, where she specializes in taking a holistic approach to mental health and high performance, assisting her patients in unlocking their own, intrinsic ability to heal. For additional resources, please visit ascpa.com/stress.

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Five Mindset Shifts to Improve Your Relationship With Stress

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See challenges as opportunities for growth and development.

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Let go of resistance for resilience, and embrace the challenges life brings your way.

Exercise your power to choose how you interpret and respond to your life experiences.

Balance is relative. Don’t compare your version of balance to another’s.

Everything happens for you, not to you. Your body is working for you and so is your life. Embracing this perspective will bring in a lot of freedom.

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What’s Happening at the ASCPA? September 18 Grand Canyon University Accounting Orientation The ASCPA engaged with accounting students at all levels at GCU’s Second Annual Accounting Majors Orientation. We were there to greet students and share helpful resources including our free student membership and ways the ASCPA can help them reach their goals.

September 22 Members Volunteer at Junior Achievement At the program’s Finance Park in Tempe, volunteers helped students from Crimson High School learn about financial literacy, work readiness and entrepreneurship.

ASCPA volunteers led simulations for businesses like Fiesta Bowl and Amazon to help students run the business and solve real-life financial problems in the simulation. Thanks to Coulson Painter, Jennifer Campbell, Stephanie Adams, Tiffany McBride, Khanh Le, Carol Mulloy, Jamal Seifert, Jason Bisdorf and Michelle Zhang for giving their time.

September 27 Behind the Scenes with Caliber The experts at Caliber took ASCPA members behind the scenes at Newberry Station in Mesa, a historic building that has been transformed into a modern work space.

They learned about the rich history of the building, future projects planned for downtown Mesa and Opportunity Zones in Arizona.

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September 30 Service With Future CPAs Twenty ASCPA members and accounting students joined forces to pack meals at Feed My Starving Children in Mesa. A special thank you to the CPAs who attended to share their career story with students.

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Upcoming Events November 14

Free Webinar: Top HR Trends: Are You Clients Aware & Prepared? www.ascpa.com/free-november23 Earn one credit of CPE for free with this lunchtime virtual session, sponsored by Paychex. Delve into five strategies to enhance your workforce in five key areas: expanding workforce, diversity & inclusion, self-service, state-of-the-art interviewing and health & wellness. Register at ascpa.com/free-november23.

January 19

Don Farmer’s Tax Update www.ascpa.com/farmer Don Farmer returns to Phoenix at the Desert Willow Conference Center for a full-day session on current year developments and planning ideas affecting individuals, corporate and business income taxation. Register at ascpa.com/farmer.

Welcome Emily

Emily Webb has joined the ASCPA team as our new Director of Government Relations.

“I enjoy the processes and policy behind how legislation is created and collaborating with stakeholders to find compromises and solutions,” Emily says.

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