AZ CPA Nov. 2019

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NOVEMBER 2019 AZ CPA

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

Cindie Hubiak Patricia Gannon Heidi Frei

Board of Directors Chair Jared Van Arsdale Chair-Elect Ginny DeSanto Secretary/Treasurer Tom Duensing Directors

Rachael Bertrandt

Keith Cowan

Kelly Damron

Paul Evans

Ross Grainger

Tim Hansen

Jessica Iennarella

Andrea Levy

Anthony Lorenzo

Vanessa Makridis

Karen McCloskey

Sami Raynes-Houseknecht

Immediate Past Chair Mike Allen AICPA Council Members Rob Dubberly

Greg Nelson Chapter Presidents Southern Chapter Cathy Kinzer Northern Chapter James Shankland Southwest Chapter Helen Greenwell North-Central Chapter Gidget Schutte 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 10 times a year as a regular service 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 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 www.ascpa.com

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AZ CPA NOVEMBER 2019

Volume 35 Number 9

AZ CPA

November 2019

Features

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Saying Goodbye to the Kachina Cindie Hubiak shares her thoughts about saying goodbye to our longtime logo.

by Cindie Hubiak, CPA, CGMA

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A Taxing Story of Arizona Artist Ted DeGrazia Ira Feldman shares his story of creating tax solutions for an Arizona icon.

by Ira Feldman, CPA

Columns & Departments Chair’s Message by Jared Van Arsdale, CPA

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Member News

7

A Dash of SALT by James G. Busby, Jr., CPA

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Quick Quiz

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Leveraging and Maximizing Your Business Relationships Building a network can help you grow more than just your business relationships.

by Andrea Diaz, CPA (in NJ)

Classifieds 22

Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 180 Phoenix, Arizona 85034-2040 www.ascpa.com

NOVEMBER 2019 AZ CPA

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ASCPA Chair’s Message

Connecting the Dots

by Jared Van Arsdale, CPA This fall, the ASCPA readies itself to take the next step in its evolution by rebranding how it communicates, advocates for and serves Arizona CPAs.

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AZ CPA NOVEMBER 2019

This past month, my six-year-old son asked me several times to explain what work I do after I drop him off at school. Although I am still developing my sixth sense, a child deception detector, his intent was clear. What am I doing at this so-called “work” that I felt was so important that we can’t stay home and play? Bypassing the never-ending conversation on the importance of his schooling, I have tried to explain what a CPA is (unsuccessfully) and what accountancy is (that went a little better), but in both instances he left for school unsatisfied with the response. I had stumbled through and noted that we will need to try that again. Later, I figured I would focus the next conversation on taxes because this somehow seemed easier at the time, and I was going to need a visual cue. It was a clear plan, and I was certain that if I crafted and delivered the message differently, he would get it.

About two weeks later, we struggled yet again to get ready for the day and the question arose. “Why do you need to go to work?” I was gleefully ready to talk tax with a six-year-old.

He was well aware that he received $5 in allowance weekly, so that is where I started. “Congratulations my boy, the tax man cometh and you owe him one dollar. Go forth and enjoy the four dollars you have left. Spend it where you desire.”

(We were in the middle of The Hobbit by J.R.R. Tolkien, so I may have said it exactly like that without hesitancy.)

So far, so good, and we continued.

Unfortunately, there were no roads, so he couldn’t leave the house to go spend his money. We will need to build some. We now needed to ask all his friends at school to pay their one dollar of tax so we have enough money to build a road to the store where he can buy his vegetables. A smile and an eye roll later, he had it.

Daddy needs to go to work to help people figure out how many dollars they need to give away in tax so, it was important not to make him late.

The visual combined with the right message and he connected the dots.

This past year, the ASCPA has been working on connecting more of those dots for its membership and the profession. The Society was founded in 1933 to serve and advocate on behalf of the CPA profession in Arizona. At the beginning of the post-war era, the Society was likely visualized as an organization of trusted advisers and keepers of highly technical ledgers that were used to communicate the economies of the day. The memory of a highly circulated image of a white shirt, green eye shade and stack of lead pencils just to the right of a kitchen sink-sized ledger may come to mind. An image of our profession that we often brush aside unless it is helpful in conveying the desired message to the desired listener.

In a matter of decades, the practice of accountancy has evolved, our organizations are more global and our communications more frequent and ever changing. This fall, the ASCPA readies itself to take the next step in its evolution by rebranding how it communicates, advocates for and serves Arizona CPAs. I truly look forward to witnessing this evolution.

Recently, my son evolved his own inquiry to the more challenging, “why can’t I do my work later?” “Because I said so” is a classic message I am yet to let go of.n

Member News

The ASCPA welcomes two new team members. Barb Feliciano, our director of finance & administration, is a CPA and member of the Society. She has a background with various nonprofits and holds CGMA and CITP credentials.

John Baumer is our director of government relations. He was the legislative director at DeMenna Public Affairs and has served as an assistant to various senators.

Watch For Our New Branding Message and Logo Thank you to all the ASCPA members who helped with Alix Smith, CPA, was elected to the videos and photo shoots to help spread the word about our board of the International Chapter of new brand. Watch for the new brand and logo on Nov. 12.

P.E.O. Sisterhood. She was elected as organizer of their biennial convention in Des Moines, Iowa.

November is Membership Appreciation Month at the ASCPA It is exciting to celebrate the support and many contributions made by our members. Thank you for giving the ASCPA the opportunity to serve and represent you and the profession.

To show our appreciation, we will be: • Raffling special prizes every Monday in November. Winners will be announced every Monday on the Connect site: https:// connect.ascpa.com • Introducing you to your CPA community on social media.

We are looking for members who would like to be featured on LinkedIn and Facebook. If you have a photo of yourself participating in an activity or hobby that you are passionate about, please send the photo and a couple of sentences to share more about yourself and the activity. Send to Kaylie at kmartinez@ascpa.com

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AZ CPA NOVEMBER 2019

Saying Goodbye to the Kachina

by Cindie Hubiak, CPA, CGMA Most people expect that when they see me, I’ll be wearing a shirt with the ASCPA’s Kachina logo. The Kachina has been literally near and dear to my heart, as I know it has been for many of our members.

The original Kachina design was developed in 1976 and was adopted as the ASCPA’s logo a short time later. About 18 years ago, the Kachina logo was updated with a brighter color palette. Next month, we say goodbye to the Kachina and unveil the new ASCPA logo, brand messaging and share more about the activities that will continue to support our focus on you and the CPA profession.

You Said, “It’s Time” With the numerous changes in both the CPA profession and the association world, it’s important to reflect on the ASCPA’s brand to remain relevant to CPAs and adapt to their changing roles.

We conducted a survey in late April to gauge our members’ opinions on various aspects of the ASCPA brand, from logo and brand messaging, to how we deliver services. The majority of members communicated that it is time for a new ASCPA logo. Our members asked for a new logo that is contemporary, technology-driven, that represents moving forward and speaks to the future. It is also important that the logo is simple and translates well to the digital world.

A Brand is More Than a Logo In addition to the logo change, which we will reveal on Nov. 12, we will share new brand messaging and align resources to support our brand promise to you.

Successful brands communicate through visuals, messages and action.

While personal tastes of imagery can vary widely, I believe the symbolism in the new logo represents the current membership and its future. Rather than asking yourself, “Do I like it?” consider asking yourself whether the logo communicates who we are and our promise to you as a member. Will it assist us in attracting new CPAs to the profession? Does it demonstrate the value of ASCPA membership?

How I am Saying Good-Bye It is important for me to take time to thank the Kachina for its service. One of our members suggested using the KonMari method that became popular with Marie Kondo’s bestselling book “Spark Joy,” where you thank an item before setting it free. While we will soon have a new visual identity, we can keep our fond memories of the Kachina and appreciate how it represented us over the years before welcoming the new logo.

I will keep my original Kachina print, recognizing my service as ASCPA board chair in 1994-95, hanging on my office wall. It will always be part of our history, and you are welcome to stop by the office to say “hi” to the Kachina.

Please join me in saying thank you to the Kachina and welcoming the new ASCPA logo, as we enter this exciting time for your association. I believe the new logo represents the current membership and its future. Our new brand promise also supports the CPA profession as we navigate the changing environment. n

In addition to the logo change, which we will reveal on Nov. 12, we will share new brand messaging and align resources to support our brand promise to you.

Cindie Hubiak, CPA, CGMA, is president & CEO of the Arizona Society of CPAs.

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AZ CPA NOVEMBER 2019

A Dash of SALT

Arizona’s Wayfair Bill Compounds Burdens on Remote Sellers - Pt. 3 In this month’s state and local tax (SALT) column, in consultation with Professor Richard Pomp, Busby explains how H.B. 2757, Arizona’s response to Wayfair, actually will compound the state’s burden on remote sellers, even though it will also dramatically simplify the state’s overall sales tax structure. This is the third in a series of four articles addressing Arizona’s response to the Wayfair decision.

In previous columns I explained that: Arizona’s Legislature recently amended the state’s tax code to require remote sellers to remit sales tax on proceeds from sales to customers in the state based on economic nexus standards, adopted marketplace facilitator provisions, and preempted cities and towns from imposing retail sales taxes under their own tax codes.

I further wrote that: Preempting cities and towns from imposing retail sales taxes under their own tax codes will dramatically simplify Arizona’s sales tax structure under which 91 cities and towns currently impose retail sales taxes under their own tax codes but, even after these changes go into effect, there still will be numerous differences between the state tax base and the tax bases for various cities and towns in Arizona.

Ironically, even though H.B. 2757 preempted Arizona cities and towns from imposing retail taxes under their own tax codes and dramatically simplified Arizona’s overall sales tax structure for retailers by eliminating all 91 municipal retail tax codes, the bill simultaneously compounded the burden the state imposes on remote sellers.

by James G. Busby, Jr., CPA

James G. Busby, Jr., CPA, is a state and local tax attorney at The Cavanagh Law Firm. Busby previously worked in the SALT departments at Arthur Andersen and Deloitte & Touche. Before entering private practice, Busby was in charge of all transaction privilege (sales) tax audits at the Arizona Department of Revenue.

If you have any questions, please contact the author. He can be reached at (602) 322-4146 or JBusby@CavanaghLaw.com.

Arizona’s Challenging Sourcing Rules Arizona’s challenging sourcing rules are not new but, because the state’s response to Wayfair will require so many more remote sellers to comply with them, H.B. 2757 will compound the burdens the state imposes on remote sellers.

As Professor Pomp cautioned in a letter to the sponsor of H.B. 2757, the bill did not address a “troubling and constitutionally suspect provision of the Arizona transaction privilege tax.” Pomp referred to the state’s sourcing rules for remote vendors, which differ from the state’s sourcing rules for in-state vendors.

In Arizona, “sales by in-state retailers are sourced to the seller’s business location if the seller receives the order at a business location in the state, regardless of where

NOVEMBER 2019 AZ CPA

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the purchase is shipped. By comparison, sales by out-of-state vendors are sourced to the purchaser’s location in this state if the seller receives the order at a business location outside this state, regardless of where that person resides,” Pomp explained.

In his letter, Pomp posed a hypothetical in which “a resident of local Jurisdiction X shops at a store in local Jurisdiction Y and has the purchase shipped back to X. The local sales tax will be based on rates in Y. In contrast, if that same person were to order over the Internet, the remote vendor would charge tax based on rates in X, which could be higher than the Y rates.” Citing the U.S. Supreme Court’s decision in Associated Industries v. Lohman, Pomp warned that this type of “discrimination against interstate commerce has been held to be unconstitutional.”

In addition, Pomp warned that “such discrimination would violate the In-

ternet Tax Freedom Act,” in particular section 1105(2), a provision that defines a “discriminatory tax” as “any tax imposed by a state or political subdivision thereof on electronic commerce that … is not generally imposed and legally collectible at the same rate by such state or political subdivision on transactions involving similar property, goods, services.” Pomp further cited the Illinois Supreme Court decision in Performance Marketing Association v. Hamer.

To illustrate his point, Pomp shared an example using actual tax rates to demonstrate how dramatically Arizona’s souring rules can discriminate against remote vendors. He wrote: suppose a resident of Superior shops at a store in an unincorporated area of Pima County and has the purchase shipped back to his or her home in Superior. The in-state retailer would pay tax based on the total state and local rates that apply in unincorpo-

rated areas of Pima County: 6.1%.

By comparison, if that same person were to order over the Internet from an out-of-state vendor, the remote vendor would have to pay tax based on the total state and local rates in effect in Superior, 11.2% — a much higher rate than the rate the local vendor was required to pay.

Finally, Pomp pointed out that unlike local vendors who only have to apply the combined tax rate in effect at the location where they receive orders, remote vendors have to “apply up to 91 different municipal tax rates, and as many as 15 different county rates.”

Pomp concluded, “these are all serious defects in the existing law” that were not addressed by Arizona’s response to Wayfair. n

.

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AZ CPA NOVEMBER 2019

A Taxing Story of Arizona Artist Ted DeGrazia

by Ira Feldman, CPA Last week, Ted DeGrazia gathered up 100 or so of his paintings, valued upwards to $1.5 million, and set out on horseback into the rugged Superstition Mountains east of Phoenix Arizona, together with several rag tag friends, to start a roaring bonfire to reduce the art works to ashes. What prompted this dramatic protest was his opposition to Federal inheritance taxes, which the artist complained, could reach 77% of the assessed value of his art works after he dies. — Wall Street Journal; May 21, 1976.

DeGrazia further told the Wall Street Journal … “suppose I turn out something like Rembrandt, and I die and Uncle Sam says it’s worth a million dollars. Where does the estate tax money come from?”

Shortly after this article was published, I was introduced to DeGrazia (he preferred going by his last name) by his attorney to see if anything “professional” could be done about his taxes. Over the years and up until his death in 1982, I

got to know him as a friend and a highly intelligent, but eccentric, individual. At the young age of 35, I had much to learn from this friendship. He complained not only about the estate taxes, but also the large amount of income taxes he and his corporation were required to pay.

What could I do about this? Of course, I thought I could do everything to save taxes … and his life works. And, in fact, we did.

DeGrazia Gallery in the Sun was located on 10 acres of land on Swan Road (in Tucson) and consisted of his gallery, which displayed his paintings, and a sales area, which sold some of his reproductions, but mostly trinkets and tourist objects. The Gallery was a major stop on the tourist circuit.

I immediately set about to accomplish my new client’s mission, a challenging task for a young CPA. Looking back at what we accomplished over the next six years, even though some of our tax structuring would not work under current tax laws, we were able to reduce his and his wife’s combined income and estate taxes by perhaps 90%. The result of that savings now is his legacy, a major single artist museum in Tucson,

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Arizona, which he constructed with his own hands and lots of help from his buddies.

So, what were these magical solutions? Nothing more than carefully structured planning to minimize income and estate taxes.

First, I noted his C-Corporation (at that time S-Corporations were not used as much) was making substantial profit from the sale of his original reproductions and the trinkets sold in

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the Gallery’s store. He was just starting to become well recognized, so sales and profits were multiplying, as were his taxes. He and his wife, who also worked for the corporation, took salaries of $10,000 each per year. The corporation paid income taxes on the remaining income at about a 50% tax rate.

None of our other professional clients suffered taxes the way DeGrazia did. So why not implement the garden

variety planning we used for our doctors and lawyers (even CPAs)? The answer was obvious. We increased both their salaries to a level appropriate of their creative abilities. Then we installed a Defined Benefit Pension Plan. At age 68, that created about $450K per year in tax deductions for the C corporation. By the time DeGrazia passed away in 1982, we were able to accumulate over $1.2 million each in the retirement plans.

DeGrazia’s ultimate goal was for his art and his financial accumulation to provide a place where his art could be displayed for future generations. After all, he was an “artist of the people.”

And if it could be endowed with his savings (now greatly enhanced by his lower tax rate), ordinary people could visit without having to pay an entrance fee.

The solution was the DeGrazia Art & Cultural Foundation – A Private Operating Foundation, formed in 1978.

This Foundation would provide a legal structure which could continue in perpetuity. Not only is a POF unusual, but the manner in which it was to be operated on the grounds of the “gallery” in Tucson posed some significant tax-exempt application discussions.

The Application for Exemption was submitted to the IRS, and after a number of discussions and document submissions, was approved in March 1979. A tax-exempt organization (501 (c)(3)) is not supposed to inure to the benefit of its benefactor. What stuck in IRS craw was that there was a significant area in which his art objects were sold to the general public visiting the gallery. While typical for a normal museum, this “co-working” arrangement with his C Corporation posed a concern that the museum would be used as a draw to enhance his gallery sales income. The gallery did not sell his originals and only occasionally sold reproductions. In addition, this single artist museum was one of two which I could find in the United States.

The solution? Physically segregate his sales gallery from the museum where his paintings were being dis-

played. Thus the museum was not being used as a lead to sell paintings in the gallery. In fact, unlike most museums which have a sales area as you leave, our sales area was where you first entered.

The next step was to make maximum cash contributions each year (using 50% of AGI limitations) to cut the individual tax rate from that increased salary in half. His C corporation had little remaining income or tax. Part of their annual income tax deduction was increased by contributing some of their stock in the C corporation (at its current value) to the Foundation.

The contributions were “filled-up” by additional cash added from their after-tax salary.

Then came time for estate planning.

He and his wife, Marion, owned their stock in the C corporation, paintings, etc. as community property, except for their retirement accounts in which they had individual balances.

We determined that the original oil paintings and other original art objects, including original reproductions, were not owned by the C corporation since he had never assigned ownership of them to the corporation after he created them. The C corporation sold non-art copies of his creations, cards and other items under its license with him (documented under his employment agreement) and received royalties from licenses issued to reproducers of his art in the form of bells, Christmas ornaments, figurines, etc. Thus, his and his wife’s estates consisted of ownership of the C corporation, direct ownership of their art creations, retirement plan benefits and savings from the salaries they earned.

Both DeGrazias stated on a number of occasions that they wanted the Foundation to be the beneficiary of all of their assets, disinheriting their adult children and the surviving spouse (each had their own separate community share). The only exception was an education trust set up for his then young son, Domingo, to provide college education funds. This estate

plan was executed through the use of a revocable trust for each of them.

When he died in 1982, his community share of the estate plus his retirement plan benefit passed to the Foundation (a 501(c)(3) organization). Thus, no estate taxes, and no income taxes on the retirement benefit. Marion died some years later and eventually her assets passed on to the Foundation. n

Ira Feldman, CPA, is a sole practitioner CPA in Phoenix, a member of the ASCPA and a former managing partner of Toback CPAs which was sold to a national firm in 2000. He is co-chair of the Phoenix Tax Workshop. See his complete bio at www. felco.biz.

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Business Valuation and Forensic & Litigation Services Conferences Dec. 18, 2019 ASCPA Learning Center or Webcast Get up to speed on considerations, methodologies and rulings on a variety of business valuation, forensic accounting and litigation services topics. Attend for a half day focusing on either subject, or stay for a full day of informative, progressive and dynamic sessions on both subjects from national and local speakers.

Morning Program Forensic & Litigation Services 8 – 11:40 a.m.

Afternoon Program — Business Valuation 12:40 - 4:30 p.m.

Valuations and Family Law — A Panel Discussion Tracing Tips in Forensic Accounting Moderator: Engagements – A Panel Discussion Melissa E. Loughlin-Sines, CPA, CFE, CVA, CFF, Moderator: Henry+Horne Melissa Loughlin-Sines, CPA, CFE, CVA, CFF Panelists: Henry+Horne Jeffrey G. Pollitt , Jeffrey G. Pollitt, P.C. Panelists: David S. Cantor, CPA, Cantor Forensic Accounting, David Horowitz, May, Potenza, Baran, & Gillespie, P.C. PLLC Julia A. Miessner, CPA, ABV, CFF, CGMA BeachFleischman PC

Point and Counterpoint Mark R. Hughes, CPA, ABV, CFF, Gorman Lunch Lessons: Breathing Confidence and Power Consulting Group, LLC Brendan J. Kennedy, CPA, ABV, CFF, CVA, ASA, into the Most Valuable Marketing Hour ATLAS CPAs & Advisors PLLC of Your Day Norm Hulcher, Hulcher & Hays, LLC Collaborative Law Process Michael Julifs, MBA, CFP, Fair Share Divorce Jennifer Moshier, Esq., Moshier Law

Appraisal Review Concepts Pertaining to Business Valuations Raymond Rath, ASA, CEIV, CFA, Globalview Advisors LLC

Lost Profits and Interest Rates Rob Mroz, ASA, CBA, CVA, MBA, BDO USA, LLP

A Curmudgeon Looks at the BV Profession Robert Kleeman, CPA, ABV, ASA, OnPointe Financial Valuation Group LLC

4:30 – 5:30 p.m. — Networking Power Hour With Robert Kleeman

Learn more at www.ascpa.com/bvfl19 16

AZ CPA NOVEMBER 2019

Leveraging and Maximizing Your Business Relationships

by Andrea Diaz, CPA (in NJ) Let’s get straight to the point. The number-one reason most people start building a network is to grow their business. But, after some time in the game, you realize how much more building business relationships can benefit all aspects of your life.

Creating a solid group of qualified individuals from different industries with varying backgrounds opens your mind to new ideas, helps your clients grow their businesses, provides opportunities to fulfill your own personal goals and dreams, educates you on topics and places that weren’t previously on your radar, and, in the end, will naturally grow your business.

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CPEvening: Eat, Drink and Be Educated Sponsored by Enterprise Bank & Trust - Nov. 14 Learn How to Master the Critical Skill of Follow-up Presenter: Lynn Ruby, Ruby Marketing Agency 5:30 - 8 p.m.

Fate Brewing Company —1312 N. Scottsdale Rd, Scottsdale, AZ 85257 Walk away with the tools, processes and mindset to developing this critical skill: • Three ways follow-up failure is costing you major income.

• Why we loathe follow-up and how to start loving it.

• Tools, systems and methods to streamline and automate followup.

• The “30-Minute Daily Business Workout” to banish follow-up failure.

CPEvening is a program combining 1 hour of CPE and fun in a relaxed atmosphere. Meet some of your colleagues from organizations in the Phoenix area and engage in great conversation. Appetizers and one drink ticket are included with your registration of $25. www.ascpa.com/cpevening

Governmental Accounting Conference Feb. 5, 2020

Desert Willow Conference Center — 8 a.m. – 4:30 p.m.

4:30 – 5:30 p.m. Networking Available In-Person or via Webcast Recommended CPE Credit: 8 hours Hear the latest on GASB; learn more about change management, fraud detection and cybersecurity; and participate in cyber warfare bootcamp at the 2020 ASCPA Governmental Accounting Conference. Your favorite speakers, including David Cotton, Marianne Jennings and David Bean, are back, along with other local and national experts to assist you in discovering insights and understanding on new developments in governmental accounting and auditing.

Special thanks to Platinum Sponsor — Henry+Horne.

Learn more at www.ascpa.com/gac20 18

AZ CPA NOVEMBER 2019

So, how do you get all these amazing benefits from your business relationships? When it comes down to it, your “team” is the most significant network you will ever build.

Here are four ways to build and leverage your team so that you can succeed both in business and in your personal life:

1. Find People Surrounding yourself with people smarter than you will challenge your mind, expand your experiences and keep you in a mode of constant growth.

The smarter people in my life have recommended books that changed my perspective, suggested visiting places that exposed me to a world outside my existing horizon and challenged me to listen and entertain ideas without the necessity of accepting them.

You may have to meet a lot of people before you narrow down who you want on your team, but I encourage you to find those who you enjoy listening to and who have a different perspective.

You want to learn from your team, and they should want to learn from you. Find those who are like-minded in their morals and integrity. This is hugely important since you will be referring their services to your clients. If done right, these individuals will educate you and provide you with ideas and solutions for a variety of needs.

The best way to use that new-found knowledge is to help your clients overcome a challenge, meet a goal, grow their revenue or reduce their expenses. It could be as sim­ple as using the merchant services person on your team to help reduce your client’s merchant service costs or as complicated as knowing the right attorney to assist your client through the sale of their business. In any instance, your consistent goal should be to leverage your team to help your clients. Not only will this deepen your relationship with your clients, your team will love the referrals and ideally think of you the next time they need an expert in your field.

2. Leverage Your Team’s Teams A healthy team is a growing team, so when someone who is already in your network asks to introduce you to someone, take them up on their offer.

If you spend time with your team, get to know one another and share in each other’s triumphs and challenges, they will have a deep understanding of your personal and business goals and will want you to succeed as much as you want them to succeed. Therefore, their introductions should be in line with your ideal contacts.

Keep in mind, leveraging and maximizing your business relationships is a two-way street, so in order to receive quality introductions, you must also give quality introductions. Again, this is another way to help your clients. If you are open to meeting new people, especially introduc­tions from your team, these new people could provide fresh concepts and could be just the right fit to solve one of your client’s challenges.

The more you use your network to help your clients, the more your clients appreciate the value you bring to the table.

3. Have an Open Mind Another benefit of creating a team that you love is that it provides opportunities to fulfill your own personal goals and dreams. For example, I joined a women’s golf committee for two reasons: get better at golf and simultaneously meet some women to grow my network. On the committee was the director of a nonprofit organization that empowers young women through a program that incorporates running.

I listened to her story about why she started this nonprofit and the stories of the young ladies who went through the program, and it moved me. Immediately she became a part of my team. She was looking for volunteers, and I was beyond excited to help. Being a coach for her nonprofit, Girls on the Run, was one of the most rewarding and fulfilling experiences of my life. Not only did this change me personally, but it has created opportunities in being asked to sit on the board of a nonprofit and join other professional groups.

Keep in mind, leveraging and maximizing your business relationships is a two-way street, so in order to receive quality introductions, you must also give quality introductions.

4. Be Vulnerable A relationship is only as good as the commitment you put into it, so if you want to be challenged and grow, you have to be vulnerable. Open up not only about your successes, but about your failures. Tell your team when you didn’t reach your goal or show them where you’re struggling. You’ve spent countless hours with these folks at breakfasts meetings, lunches and over cocktails, so you should know who to trust, who can help hold you accountable and who can support you as you grow.

This is why having a diverse team is imperative. One person may be more influential in helping you keep your networking goal, and another may be just the right person to make sure you leave by 4 p.m. every Wednesday to make it to your daughter’s piano

lessons. Our teams are natural accountability partners, mentors and cheerleaders. Whatever your goal or need, it is exceedingly easier to fulfill your dreams if you have an accountability partner to answer to.

As accountants, be sure to include in your team other accountants, from various levels and firms. These individuals will serve as mentors, sounding boards and sometimes just a person outside of your firm who “gets it.” Become a mentor to a younger accountant, introduce them to your team and teach them how to build their own team. Happy connecting! n Andrea Diaz, CPA (in NJ), ABV, MST, is a manager at SKC & Co. CPAs, LLC She can be reached at adiaz@skcandco. com. This article was previously printed in the New Jersey CPA magazine.

NOVEMBER 2019 AZ CPA

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AZ CPA Quick Quiz You’ve Read It, Now Get Credit Take this quiz on AZ CPA content online or submit this hard copy.

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Fees: Members: $25 Nonmembers: $40 Online Access Go to www.ascpa.com/quickquiz to access links to all active quizzes. Once a quiz is purchased, a link and password will be emailed to you. Your results will be sent immediately after completion, and certificates are emailed within two business days.

Hard Copy Please select one answer for each question. Fill out registration/payment information below and mail or fax to the Society office. Quiz results and certificates will be emailed to the address provided on the registration form. *This quiz will be available until November 2020. Please note that users have three attempts to pass the quiz with at least a 70 percent score.

November 2019 Issue of AZ CPA* 1. In this month’s Chair’s message, Van Arsdale talks about: m Income tax conformity m The ASCPA’s branding process m Cybersecurity 2. ASCPA President & CEO Cindie Hubiak uses the KonMari method to say goodbye to: m Last year’s legislative session m Her CPA stamp collection m The ASCPA Kachina 3. The ASCPA’s new branding efforts were a result of: m A survey of members who recommended it m A board mandate m The Wayfair decision 4. According to Prof. Richard Pomp, H.B. 2757, Arizona’s response to Wayfair, will compound the state’s burden on remote sellers, even though it also dramatically simplifies the state’s overall sales tax structure. m True m False

5. Citing the U.S. Supreme Court’s decision in Associated Industries v.

Lohman, Prof. Pomp warned that H.B. 2757 might: m Discriminate against interstate commerce m May be unconstitutional m All of the above 6. Prof. Pomp points out that H.B. 2757 would require remote vendors to apply up to how many different municipal tax rates?

m 8 m 22 m 91

7. A 1976 Wall Street Journal article reported that Arizona artist Ted DeGrazia did what to avoid paying taxes:

m Moved to Mexico m Burned his paintings m Gave his paintings to charity 8. One solution that ASCPA member Ira Feldman created to help DeGrazia was: m Starting a foundation m Taking photos of his burnt paintings m Helping the artist start a business in Mexico 9. When growing your business contacts, Andrea Diaz recommends using what approach? m The Carnegie Method m Developing a team m Using internet dating sites 10. Diaz recommends: m Narrowing down the number of individuals in your network m Expanding the number in your network to at least 50 m Only using your team members when absolutely necessary

Quick Quiz Registration Name: ____________________________________________________ Email:_____________________________________________________ Telephone: _________________________________________________

Payment

m Member: $25 m Nonmember: $40 Checks: Please make payable to: The Arizona Society of CPAs Credit Card:

m Visa m MasterCard m American Express

Credit Card #: _______________________________________________ Expiration Date: _____________________________________________ Name on Card. _____________________________________________ Mail to: ASCPA, 4801 E. Washington St. Suite 180, Phoenix, AZ 85034-2040; fax to (602) 252-1511 scan and send to ASCPACPE@ascpa.com.

NOVEMBER 2019 AZ CPA

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TAX PREPARER — NORTH SCOTTSDALE CPA FIRM — is seeking a parttime (retired) Senior Tax reviewer during peak season. Must have seasoned tax review experience with updated knowledge of tax law and paperless systems. Larry@partridgecpas.com.

BOOKKEEPING FIRM LOOKING TO ACQUIRE BOOKKEEPING CLIENTS —Tucson bookkeeping firm is looking to acquire bookkeeping clients.

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TAX MANAGER AND STAFF — CPA -— Tucson CPA firm has full and parttime positions available for CPAs with a minimum of five years of recent CPA firm experience preparing and reviewing business and individual tax returns.

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AZ CPA NOVEMBER 2019

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Office Space OFFICE SPACE IN CENTRAL PHOENIX (16th Street corridor). Recently renovated office space approx. 1,150 SF with separate entrance opening into courtyard available in premier professional location with great visibility.

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EXECUTIVE OFFICE SPACES FOR LEASE — Beautiful garden-style office complex in a great office environment located in north Phoenix. Easy access to SR 51 and SR 101 just north of Tatum and Shea Blvd. Executive office $800, interior office $650. Ample parking, beautiful conference rooms, seminar room and copier, telephone and internet ready. Includes Receptionist to greet your clients. Contact Julie at (602) 953-5000.

For more information on classified advertising, go to www.ascpa.com and go to classifieds.

2019 CPE CALENDAR November 6

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15

Complete Trust Workshop Arthur Auerbach

Estate Planning for the 99% – Portability and More (12:30-4 p.m.)

Ed Zollars

Best S Corporation, Limited Liability and Partnership Update Course Joshua Jenson

CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

CPE: 4 Field of Study: TX Member -$160 / Nonmember -$210

7 Form 1040 Return Review Boot Camp for New and Experienced Reviewers Arthur Auerbach CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

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16

Current Federal Tax Developments (Tucson) Ed Zollars

Phoenix Tax Workshop (9 a.m.-noon)

CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

7-8

14

Arizona Federal Tax Institute Conference

Best Individual Income Tax Update Course Joshua Jenson

CPE: 16 Field of Study: TX Member/Nonmember -$550

8 How to Settle a Client’s Estate Arthur Auerbach CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

12 Section 199A Explored – Planning for Qualified Business Income Ed Zollars CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

13 New Businesses – Advising Clients on Related Tax Issues (8-11:30 a.m.)

Ed Zollars

CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

15 Arizona Accounting Ethics With Emphasis on Tax Practice Issues (8-11:30 a.m.) (Tucson) Ed Zollars CPE: 4 Field of Study: ET Member -$160 / Nonmember -$210

15 Arizona Income Taxation: Update and Overview (12:30-4 p.m.) (Tucson) Ed Zollars CPE: 4 Field of Study: TX Member -$160 / Nonmember -$210

CPE: 4 Field of Study: ET Member -$160 / Nonmember -$210

CPE: 3 Field of Study: TX

18 Construction Contractors: Special Tax and Accounting Considerations Patrick Rogan CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

19 Corporate Tax Workshop: Get Ready for Busy Season Patrick Rogan CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

20 Compilations, Reviews and New Preparations: Engagement Performance and Annual Update Thomas Sheets CPE: 8 Field of Study: AA Member -$300 / Nonmember -$400

21 Federal Tax Update – Individuals (Form 1040) (Yuma) Pat Garverick

www.ascpa.com

CPE: 8 Field of Study: TX Member -$300 / Nonmember -$400

NOVEMBER 2019 AZ CPA

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Arizona Society of CPAs 4801 E. Washington St., Suite 180 Phoenix, AZ 85034-2040

PRSRT STD U.S. Postage PAID Phoenix, Arizona Permit No. 952 ADDRESS SERVICE REQUESTED

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AZ CPA NOVEMBER 2019