AZ CPA September 17

AZ CPA September 2017

2017 Legislative Report Special PAC Report and Results of Tax on Services Poll Are Your Employees Taking Advantage of You?

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

CHARGE

GIVE CLIENTS THE OPTION TO EASILY PAY ONLINE CPACharge is an easy-to-use practice management tool that’s trusted by more than 40,000 professional firms.

Our online payment technology simplifies your billing process and helps you accept payments easily. Best of all, you get the robust reporting capabilities you need to make reconciliation a breeze. You can now professionally accept all major credit cards securely.

TAKE CHARGE OF YOUR PRACTICE TODAY WITH CPACHARGE.

2

AZ CPA SEPTEMBER 2017

A N A FFINI PAY S OLU T ION

CPACharge.com/ASCPA | 866.227.6006

CPACharge is a registered ISO of Merrick Bank, South Jordan UT

WHAT’S BETTER THAN CALLING ANY TIME YOU NEED ADVICE ABOUT RISK MANAGEMENT?

REACHING KNOWLEDGEABLE EXPERTS. CAMICO® policyholders know that when they call us, they’ll speak directly with in-house CPAs, JDs and other experts. We have dedicated hotlines and specialists in loss prevention, tax, and accounting and auditing issues. You can call as often as you need—and talk as long as you want—all free of charge.

No one knows more about the profession, because we’ve been providing CPA Professional Liability Insurance and risk management advice for more than 30 years.

Connect with CAMICO. Sign up for CAMICO Connection — our monthly enewsletter with risk management tips and articles. www.camico.com/camico-connection Accountants Professional Liability Insurance may be underwritten by CAMICO Mutual Insurance Company or through CAMICO Insurance Services by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued.©CAMICO Services, Inc., dba CAMICO Insurance Services. All Rights Reserved.

CAMICO is the preferred provider of the ASCPA.

CAMICO Representative:

Scott Nugent T: 602.264.5533 Ext. 123 E: scott.nugent@stuckeyinsurance.com

SEPTEMBER 2017 AZ CPA

3

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

Cindie Hubiak

Editor

Patricia Gannon

Advertising

Heidi Frei

Board of Directors Chair Chair-Elect Secretary/Treasurer Directors

Molly Montgomery Mike Allen Jared Van Arsdale Michael Chesin Virginia DeSanto Tom Duensing Marcus Feder Kristen French Alan Gold Aaron Grant Julia Miessner Alice Pope Jeffrey Quick Nikki Vogt Char Woodall

Immediate Past Chair Greg Nelson AICPA Council Members

Karen Abraham Armando Roman

Chapter Presidents Southern Chapter Northern Chapter

Cathy Poore Bethany de Alva Southwest Chapter Helen Greenwell North-Central Chapter Ellen Carpenter AZ CPA is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends in the profession of accounting. It is distributed 10 times a year as a regular service to members of the Society. 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

4

AZ CPA SEPTEMBER 2017

AZ CPA Volume 33 Number 7

September 2017

Features

11

Are Your Employees Taking Advantage of You? Find out how to motivate your employees and improve their productivity.

by Cindy Gordon

13

15

Columns & Departments Chair’s Message by Molly E. Montgomery, CPA 6 Member News

7

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

9

Quick Quiz

25

Classifieds 26

Professional Services Tax Unpopular with Voters More than 70 % of Arizona registered voters oppose a tax on personal and professional services — including accounting and legal work.

2017 Legislative Update - The Winning Season

According to the ASCPA lobbyists, we’ve had the best legislative session in 25 years!

by DeMenna Public Affairs

2016/17 PAC Report 18

One of the reasons for the ASCPA’s success in the legislature is contributions to our PAC. See who contributed.

Tax Reform Ahead?

20

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

In July, the House Budget Committee passed a Budget Resolution for the fiscal-year ending Sept. 30, 2018. This is the first step toward tax reform.

by Don Farmer

SEPTEMBER 2017 AZ CPA

5

ASCPA Chair’s Message

Advocacy and the Profession When I moved away from Washington, D.C. in June 2005, I remember sitting on my one-way flight to Las Vegas fueled with excitement for the adventure of leaving home to step toward a very unknown future. D.C. is quite a unique place to live. There is always plenty to do and see, weekends are full of festivals and cultural events, the city is filled with great restaurants from every region of the world and the diversity of the people who live there is such a blessing to experience. The one thing I never did get used to was the everchanging political climate. The nation’s thick political foundation was impossible to escape. While I loved everything about that city, I was more than ready to break away and move on.

by Molly E. Montgomery, CPA

Effective advocacy involves significant preparation, is supported by facts and requires clear communication with our legislators.

6

AZ CPA SEPTEMBER 2017

The AICPA 2017 Spring meeting of Council was held in Washington, D.C. in May of this year. A significant portion of the meeting is set aside for Council members to meet with members of Congress to take on advocacy efforts for the profession.

It felt a bit surreal walking the halls of the Capitol building, being driven by a very different purpose than my sightseeing visits in the past. The heavy political environment did not feel nearly as thick as we stood firm behind our advocacy efforts for matters important to the CPA profession, with a goal to make a notable impact on legislation that affects all of us. Effective advocacy involves significant preparation, is supported by facts and requires clear communication with our legislators. The AICPA does quite an impressive job in preparing and supporting Council members through this process.

After I moved to Arizona in 2007, my first interactions with the ASCPA’s advocacy efforts were through the Tax ListServe. Do you remember this ListServe? Members could send a message to an email address that was sent to everyone on the list who signed up to receive these messages. I created a separate email account that I only used for the emails coming from this group. I never said much, but I learned quite a bit. My inbox was flooded with complex tax questions and discussions about changes in legislation and how to apply those changes to specific situations.

It was like reading case studies while the issues were being resolved in real-time.

The ListServe was replaced by the Connect site that we use today and the discussion and support among members is still going strong.

The Society is continually monitoring potential legislation. It is an ongoing process that is saturated with uncertainty. An added challenge is the importance of staying informed about what is going on at the legislature, while always being ready to respond early in the lawmaking process so our voices can be heard. The Society’s Tax Legislation Committee reviews proposed tax bills to provide comments on ways to improve those bills. When new legislation is passed, the Society supports members with implementing these new laws.

The legislative process impacts our role as professionals significantly. If you are someone who has contributed to this process in any way, thank you. Having observed the orchestration it takes from everyone involved, I am keenly aware it would not be possible for any of us to continue in this profession without the collective effort you have made. n

Member News Anita F. Baker, CPA, has been appointed to the Association of International Certified Professional Accountants (AICPA) Audit & Finance Committee.

Robert E. Dubberly, CPA, and Christine Brueser, CPA, were appointed to the Accounting and Auditing Advisory Committee of the Arizona State Board of Accountancy.

Erin B. Itkoe, CFP, CPA/PFS, was one of 16 CPAs age 40 and under honored by the American Institute of CPAs for their contributions to personal financial planning with the second annual Personal Financial Planning (PFP) Standing Ovation.

Carolyn S. Sechler, CPA, was featured in Accounting Today in an article about cloud-based accounting software.

Julie Prue Cauich, CPA, of Hunter Hagan & Co., was elected to the Arizona Family Health Partnership Board of Directors.

Ignite the Leader in You 2017-18 Emerging Leaders Series Join your colleagues throughout the year to develop your skills, connect with others and give back to the community at our inaugural Emerging Leaders Series.

Get fired up for this exciting new series beginning in October!

Oct. 19 – Series Kickoff Luncheon – Servant Leadership 11:30 a.m. to 1 p.m. (Recommended CPE: 1 hour) Join us for lunch, and Brenda Ann Blunt, CPA, Eide Bailly LLP, will share how servant leadership can assist you in building a career that will inspire you and benefit your organization.

Nov. 8 – Leadership Summit Noon to 5 p.m. (Recommended CPE: 5 hours) Luncheon/Art of the Business Meal – SueAnn Brown, owner, It’s All About Etiquette, goes beyond which utensils to use when meeting over meals with a client.

Congratulations to Amy Elizabeth Patel, CPA, from Deloitte for being selected as one of the Phoenix Business Journal’s 40 Under 40 for 2017.

Best Business Practices – Chad D. Kunze, CPA, partner, CliftonLarsonAllen LLP, will share tips on how to present yourself in a professional manner and establish credibility when dealing with people inside and outside your organization.

Andrea Beth Levy, CPA, has been promoted to vice president of finance and administration for a healthcare organization.

Always a Leader – Michael Seaver, MBA, executive coach & leadership consultant, motivates leaders to achieve their full potential. Be inspired and walk away with more tools to be a leader even when you don’t hold a leadership position.

Christopher A. Lutes, CPA, CGMA, has been appointed managing shareholder of BeachFleischman PC’s Phoenix office. Lutes succeeds Philip W. Taylor, CPA, who recently retired.

January (date TBA) – “In It For the Outcome, Not the Income” Community Service Event (Recommended CPE: 1 hour) Giving back is a hallmark of a great leader. Share your time in support of a local organization. There will also be an opportunity to learn more about the inner workings of the organization.

Henry+Horne has received the 2017 When Work Works Award for innovative and exemplary workplace practices. This is the Firm’s 11th time to receive the honor. The firm also was acknowledged by the Association for Accounting Marketing for their marketing efforts in several areas including their blog and website.

Apr. 25 – Networking in Collaboration With GET Phoenix Join us at this event to meet other young professionals in a casual setting.

Seize the opportunity to put skills built at the Leadership Summit into action.

Ignite the fire and register today at www.ascpa.com/lead For more details, contact Gretchen Pacheco at (602) 324-4745 Series Cost: $295 for members and nonmembers

SEPTEMBER 2017 AZ CPA

7

Resolute is the premier boutique financial advisory firm for the middle market focused on helping distressed companies. We are experts at understanding the complexities of business whether it be operations, forensic accounting, profitability; we help deliver effective outcomes.

Resolute’s expertise in business/partnership disputes provides unmatched perspective in helping disentangle the conflict through interim control and fiduciary services.

Learn More: bit.ly/2lgQZ7X or scan me

RESOLUTE problems solved.

Partnership Disputes Receivership Special Master Interim & Crisis Management Securing and Managing Assets 7201 E. Camelback Road, Ste. 250 Scottsdale, AZ 85251

LEAD. DELIVER. TRANSFORM. 1-877-384-BLUE | Or, call your broker. | azblue.com/brand D13591B 05/16

8

AZ CPA SEPTEMBER 2017

Blue Cross Blue Shield of Arizona is an independent licensee of the Blue Cross and Blue Shield Association.

247664-16

Fearless Means Business. Experience, trust and results matter to the health of your business. With Blue Cross Blue Shield of Arizona, you can count on us to provide innovative solutions that keep your business and Arizonans moving ahead.

A Dash of SALT

Arizona’s New Electronic Filing and Payment Requirements In this month’s state and local tax (SALT) column, Busby outlines Arizona’s new electronic filing and payment requirements under recently enacted H.B. 2280 and the Arizona Department of Revenue’s amendment to A.A.C. R15-10-302(D).

At the Department of Revenue’s request, Arizona Gov. Doug Ducey recently signed H.B. 2280, which phases in electronic filing and payment requirements for almost all Arizona taxpayers between now and 2021.

The department pursued this legislation in order to improve efficiencies and increase fraud prevention capabilities. According to the department, 80 percent of Arizona individual income tax returns are filed electronically, but only 31 percent of Arizona sales tax returns are filed electronically.

The Bill’s Broad Reach and Phased Approach H.B. 2280 applies to taxpayers required to file tax returns and make payments regarding state and local sales and use taxes; jet fuel excise and use taxes; severance taxes; telecommunications service excise tax; the municipal water delivery system tax; the prepaid wireless telecommunications E911 excise tax; and government property lease excise tax.

The bill also applies to orders for the tax stamps required to lawfully sell tobacco products. But, contrary to the dates and dollar thresholds outlined below, all returns, reports and payments of any amount related to tobacco stamps must have been submitted electronically since July 1, 2015. Beginning on the effective date of this bill, August 9, 2017, all tobacco tax license applications and requests for refunds or rebates of taxes paid on tobacco products must be submitted electronically.

Taxpayers who conduct business in two or more locations or under two or more business names in the state have been required to file their returns electronically since January 1, 2017, and the department currently expects businesses that paid $1 million or more in sales taxes in the previous year to pay their sales taxes via electronic funds transfer (EFT).

These taxpayers will be required to file and pay electronically if they had an actual tax liability in the previous calendar year, or reasonably anticipate a tax liability in the current year, of at least the amounts set forth below — regardless of the number of locations they have in the state:

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.

$20,000 beginning January 1, 2018; $10,000 beginning January 1, 2019; $5,000 beginning January 1, 2020; and $500 beginning January 1, 2021.

SEPTEMBER 2017 AZ CPA

9

preparers from charging the taxpayer a separate fee to file a return using the department’s electronic filing program.

The Effect on Income Tax Returns The department is prohibited from requiring individual income tax payers to pay electronically, but the new law will affect corporate income tax, partnership and fiduciary returns.

The department can require corporate income tax payments to be made electronically under the schedule outlined earlier. But because the department has not implemented an electronic filing system for corporate income tax, partnership and fiduciary returns, those returns do not have to be filed electronically until 2021 or when the electronic filing system is implemented, whichever comes later.

Bingo Licensees and Luxury Taxes on Alcohol The bill also applies to all reports and returns filed by bingo licensees and by wholesalers of cider, malt, spirituous or vinous liquors for resale within the state; and by farm wineries, microbreweries and craft distillers selling liquor at retail or to a retail licensee within the state.

However, because no electronic filing system for these taxpayers is in place yet, these reports and returns do not have to be filed electronically until 2020, or when the department implements the electronic filing system, whichever comes later.

Caution to Tax Return Preparers H.B. 2280 requires individual income tax preparers who prepare more than 10 original income tax returns that are timely filed for tax year 2018 or later to electronically file all individual income tax returns for that tax year and all subsequent years, unless taxpayers elect to file a paper return. The bill also prohibits individual income tax return

Annual Waivers Available Taxpayers who do not have a computer or internet access, or who satisfy other circumstances that the department director deems worthy, may file an application on or before December 31 of each year to obtain an annual waiver of the T:7.5”

electronic payment and filing requirements. In circumstances beyond the taxpayer’s control, including situations in which the taxpayer was instructed by the department or the IRS to file paper returns, waivers are not required.

Sticks and Carrots to Encourage Compliance All Arizona taxpayers who are required to make a payment electronically but fail to do so may be subject to a five percent penalty.

On the other hand, as an incentive to encourage electronic filing by businesses subject to Arizona’s sales and severance taxes – regardless of whether they are required to file electronically yet – the state increased the credit available to those taxpayers for their accounting and reporting expenses. For taxpayers who file electronically, the credit increases from one percent of tax due not to exceed $10,000 in any calendar year to 1.2 percent of tax due not to exceed $12,000 in any calendar year. This change is effective August 9, 2017. n

T:4.5”

It’s probably an accountant’s most valuable resource – and the scarcest.

That’s one of the reasons why we created Accountant Connect. It’s our cloud platform for multi-client payroll management, and it gives you easy access to all your ADP client data in one place, fast.

SM

Which gives everyone a bit of spare time. The question is: What will you do with yours?

Register for Accountant Connect today and also take advantage of exclusive member benefits for your practice at adp.com/ASCPA SM

ADP and the ADP logo are registered trademarks of ADP, LLC. ADP A more human resource. and Accountant Connect are service marks of ADP, LLC. Copyright © 2017 ADP, LLC. ALL RIGHTS RESERVED.

10

AZ CPA SEPTEMBER 2017

Are your Employees Taking Advantage of You?

by Cindy Gordon

Would you agree that some of your employees are rock-star performers, some are just OK and a small few you’d like a genie to change them into statues so they stop disrupting others? Let’s take a minute and think about your workforce. How many people are engaged at work – this means they are involved in, enthusiastic about and committed to their work and workplace? How many employees are highly disengaged – they only work when necessary and are probably spreading negative feedback about the company and its management?

The rest of your workforce would be considered somewhat engaged – they get their job done, could be working more effectively and are probably staying with your company because they are comfortable and are okay with the paycheck.

SEPTEMBER 2017 AZ CPA

11

If your business is like the national average, according to Gallup, your percentages would look like this:

Engaged employees — 33% Actively disengaged – 16% Somewhat engaged — 51% We can agree that each classification provides the company with varying amounts of productivity. At Business Rescue Coaching, we have a Productivity Calculator to do this financial analysis. Based on the Gallup averages, we have found that these numbers translate into an organization losing up to 18 percent of the productivity they are paying their employees for.

Therefore, if a company pays annual salaries of $1 million, they would only be receiving $820,000 of output value.

For a small business, losing $180,000 worth of productivity is a huge hit to the bottom line!

The Good News The bleeding can be stopped! As the leader of the company, you may be aware of this issue, but don’t know how to change things. We have seen dramatic improvements in our clients’ employee productivity and engagement levels with strategies that concentrate on employee needs.

Over the past few decades, there has been a lot of research that delves into what motivates people. What has consistently been found is that the one-size fits all strategies don’t work. It is essential to understand your workforce on more of an individual level to improve engagement.

A business leader (Frank) told me that his key employee (Sandy), was leaving his company because she had found a job that paid more money. What surprised Frank was that his company’s overall compensation package was far more lucrative. Frank’s compensation strategy included a generous 401k plan

12

AZ CPA SEPTEMBER 2017

contribution. He felt it was important to help his employees save for the future.

Sandy felt that at this stage of her life she needed more money up front. She just had a baby and wanted to purchase a larger house for her family. Frank knew this but his stubbornness cost him a great employee because he didn’t react to her needs.

There are five areas of needs that should be discussed and considered with your employees.

1. Safety and Security — this would take into consideration areas of physical and emotional safety, as well as ensuring your employees are clear on their role/ responsibilities. Do they feel adequately trained to do their work well and have the proper tools and resources to work at their best. How can a person do great work if they don’t feel secure in their ability to meet expectations or safe to ask for help?

2. Financial Compensation — most people don’t feel they are paid enough.

Yet, we find that when more important needs are being met, compensation takes a back seat in priority. It is important to ensure your employees are being paid in line with the market rate but don’t depend on financial rewards to improve their motivation and productivity. Don’t risk losing a good employee because of salary. It will cost you much more to replace them.

3. Relationships — People don’t leave companies, they leave bosses. Have you taken the time to build a strong rapport with your employees? What do you know about their personal lives? How do you show them you’re invested in their future? Do you know their personal and professional aspirations and have you worked with them to create a plan to help them get there? These are all great ways for strengthening relationships. When you show someone you have their back, they’ll repay you many times over.

4. Recognition — Employee surveys consistently show that people are not getting the recognition they desire.

When someone does good work, they want to be acknowledged for it.

It’s human nature. We all want to be appreciated. Recognition – like other

employee engagement strategies, can’t be used arbitrarily. The go-to “I appreciate you” gift is a $20 Starbucks card.

What if your employee doesn’t drink coffee, or doesn’t like Starbucks? You just spent $20 to say “I know nothing about you and really don’t care. But thanks for your loyalty.” Recognition is a powerful employee engagement tool when you understand who they are and recognize them in a personalized way.

5. Personal Growth and Fulfillment — When a job opportunity gives a person the opportunity to make a difference, they are more committed to the organization and determined to bring their best. People want to feel that they have contributed to a cause. Employees are not interested in your goal to be the best or your financial gains. That benefits you. They want to understand how they are impacting the lives of others.

Whether you make fencing materials or cure cancer, your product or service is affecting others in a positive way. Each employee helps to make that happen, so use your company purpose to influence the fulfillment each person gains from their work.

By moving the needle on the level of engagement in your workforce ever so slightly, you’d be making a long-lasting impact on your success. Like all good things, it takes time and attention. However, opening conversations with your employees to learn about their needs in the five areas discussed above and setting out strategies and actions to meet their needs will show your employees that you are invested in them and their future with your company. You’ll see their appreciation through the effort they bring to their work. n Cindy Gordon is an “Employee Engagement Egghead” and Canadian CPA who helps small businesses be more successful by bringing a sense of fulfillment to people through their work.

To learn more about how she works with her clients, visit her website at www.

BusinessRescueCoaching.com or email her at Cindy@BusinessRescueCoaching. com.

Professional Services Tax Unpopular with Voters More Than 70 % of Arizona Registered Voters Oppose Sales Tax on Personal and Professional Services You can tax their alcohol and tobacco products, but don’t create a new tax for personal and professional services like haircuts, car repairs, accounting and legal work. This message from Arizona voters was heard loud and clear in a recent poll conducted by Behavior Research Center on behalf of the Arizona Society of CPAs. The threat of expanding the sales tax base to include services has been a growing concern for the CPA profession and other service-based professions throughout the state. As you may remember, there was a proposal to tax personal and professional services, including accounting work, in the 2016 legislative session. In December of 2016, the ASCPA delivered a letter to Governor Ducey and legislative leadership, expressing our opposition to taxing services and highlighting how this type of change in tax policy could hurt Arizona. The American Council of Engineering Companies – Arizona, the American Institute of Architects – Arizona, the Arizona Automobile Dealers Association and the Maricopa County Bar Association all

signed the letter along with the Arizona Society of CPAs. While many professions are opposed to a sales tax on services, it’s important to gauge the voting public’s opinion on this type of taxing structure to assist lawmakers in making decisions in the best interests of their constituents. With this in mind, the research study was commissioned to measure the voting public’s view on a potential expansion of the state sales tax base to include personal and/or professional services.

“Polling provides Arizona policymakers with the quantifiable data and information necessary to make major policy decisions – it’s like an x-ray before surgery,” said Arizona Society of CPAs lobbyist, Ryan DeMenna. “This data clearly reveals that Arizona voters have no appetite for a service tax.”

Services Tax Poll • 601 phone interviews with registered voters in Arizona • Balanced by party registration, region, age and gender • Sampling error +/-4.1% at the .95 confidence interval Poll conducted May 3-9, 2017

by Behavior Research Center, Inc. (Phoenix, AZ)

SEPTEMBER 2017 AZ CPA

13

More than 600 registered voters were asked their opinion about nine different types of taxes or sources of funding for state government. The lowest-rated taxes by the voters were professional and personal services taxes at numbers 8 and 9, respectively.

Attitudes Toward Funding Sources Poll ranked voters’ opinions on best sources of funding for state government. This list represents the order from best to worst source of funding.

1 Taxes on alcohol and tobacco products 2 Corporate income taxes 3 Sales taxes on products such as cars, clothing and furniture 4 Taxes on gasoline and diesel fuel 5 Property taxes 6 User fees and fines, such as parking and traffic tickets 7 Individual income taxes 8 Sales taxes on professional services, such as accounting and legal work 9 Sales taxes on personal services, such as haircuts and car repairs

When asked if they would support extending sales tax to personal and professional services, 71% of voters polled were opposed or strongly opposed to this type of tax (33% strongly opposed). Only 26% support this tax, with just 4% strongly supporting. Only 3% were undecided on this issue.

Not Sure - 3% Strongly Oppose - 33%

Strongly Support- 4% Support- 22%

Oppose - 38 % “While these polling results provide valuable data, make no mistake: taxing services will continue to be explored by lawmakers in Arizona and in other states,” said ASCPA President & CEO Cindie Hubiak. “In fact, the Arizona legislature created an Ad Hoc Study Committee on the Tax Treatment of Digital Goods and Services this summer. We must remain vigilant and active.”

The ASCPA is sharing these poll results with legislators and other stakeholders.

We also continue to work with organizations whose members would be impacted by a services tax through a coalition formed by the ASCPA in 2016.

Join us in educating others about the consequences of a services tax on Arizona, its businesses and residents.

If you would like to learn more about how you can assist, please contact Cindie Hubiak at (602) 324-2888 or chubiak@ascpa.com. n

14

AZ CPA SEPTEMBER 2017

Arizona Society of CPAs – Legislative Update 53rd Legislature, First Regular Session 2017

The Winning Season

by DeMenna Public Affairs There have been some big winners in 2017. Roger Federer won Wimbledon, the New England Patriots won the Super Bowl and the Golden State Warriors won the NBA Championship.

And while it wasn’t the Super Bowl or Wimbledon, the Arizona Society of Certified Public Accountants (ASCPA) had its best legislative session in 25 years.

There was a lot of success. Internal Revenue Code conformity was the second bill signed into law in the 2017 session. Legislation proposed by the Arizona Department of Revenue (ADOR) to expand Arizona’s electronic filing system was ushered through the process after being reshaped by the ASCPA’s legislative team. And Tiffany Young, the ASCPA’s nominee for the Arizona State Board of Accountancy, was appointed by Governor Doug Ducey in early June.

The ASCPA also took the lead in organizing opposition to expanding the state sales tax base to include professional and personal services, and conducted a poll showing that 71 percent of Arizona registered voters oppose the idea. The ASCPA even organized a group of stakeholders dedicated to opposing such an expansion, with interests ranging from engineers and architects to attorneys and auto dealers.

Internal Revenue Code Conformity The change in legislative leadership created an opportunity for the ASCPA to educate lawmakers that passing Internal Revenue Code conformity should be a much higher priority. As a result of these early efforts, conformity was the second bill signed into law.

The new Senate President – Steve Yarbrough – is a former longtime chairman of the Senate Finance Committee, and the new House

SEPTEMBER 2017 AZ CPA

15

Speaker – JD Mesnard – is a former legislative staffer, and has served for years on the House Ways & Means Committee. President Yarbrough and Speaker Mesnard both legitimately qualify as “tax wonks.”

In 2015, conformity was signed into law on April 9. In 2016, conformity was signed into law even later on May 11. It was clearly time to reprioritize.

So, in 2017, with Yarbrough and Mesnard at the helm, conformity landed on the Governor’s desk on February 28!

The success of the 2017 conformity effort was a direct result of a change in the leadership culture of both chambers. President Yarbrough and Speaker Mesnard deserve a great deal of credit for understanding the importance of this legislation, and their willingness to engage with ASCPA representatives and experts.

The Arizona State Board of Accountancy Ensuring that the Governor has the most highly qualified candidates available to appoint to the Arizona State Board of Accountancy was also a significant priority for the ASCPA. In early June, the Governor appointed Tiffany Young, a tax partner at Deloitte with more than 22 years of experience, to the Board. Young was the candidate recommended by the ASCPA. We are very grateful for the level of engagement and support from the Governor’s office in identifying qualified candidates for one of the most demanding and time consuming boards in Arizona state government. The Ducey Administration, and particularly the Office of Boards and Commissions, has created a recruitment process that is open and transparent, and is successfully reaching out to enlist uniquely qualified candidates.

Electronic Filing When HB 2280 (department of revenue; electronic filing) had its first hearing in the House Committee on Ways & Means early in the session, it appeared to be headed for defeat. And as it became clear that ADOR’s legislative proposal to expand Arizona’s electronic

16

AZ CPA SEPTEMBER 2017

filing system was about to fail, the bill’s sponsor requested that the ASCPA review and rewrite the legislation.

As a result, ASCPA volunteers were tasked with determining how best to redraft the proposal. After a markup session with the sponsor, legislative staff, and ADOR leadership, the ASCPA’s legislative team developed the necessary amendments. With these changes incorporated into the bill, the ASCPA’s legislative team – working closely with ADOR - ushered the legislation through the process until it landed on the Governor’s desk in late March.

The new law allows businesses with revenues above $20,000 to file electronically. Previously, only businesses with $1 million or more in gross receipts could e-file. HB 2280 also set a timeline to phase in additional e-filing possibilities. By 2019 the threshold lowers to $10,000, and by 2021 the threshold lowers to $500. By 2021 e-filing will expand to corporate income taxes, fiduciaries, and partnerships.

Service Tax Opposition & Polling Every few years, interest in expanding Arizona’s sales tax base to include professional and personal services resurfaces. It is widely understood that such a change would aggravate the already wild swings in state tax collections, and would make state budgeting even less predictable. Even so, the prospect of this expansion must be treated as a serious threat.

The ASCPA organized a coalition of other organizations and people with similar interests concerned about the prospect of a professional and personal services tax. This group delivered a letter to express their collective opposition to any efforts to expand the state sales tax base to include the taxation of professional services to Governor Ducey, legislative leadership, and key staff in December of 2016.

The group’s letter argued that, over the last 30 years and three recessions, Arizona’s dependence upon sales and transaction privilege taxes – rather

than more stable and predictable sources such as property and income – have created a very high level of unpredictability in the revenue flowing to state and local governments. Most experts agree that expanding the most volatile category of state revenue to include parts of the service economy would certainly make the state’s mix of revenues much more unstable. The letter closed by stating that “It’s wrong for our economy, and it’s wrong for state government.”

And, as it turns out, Arizona voters are also opposed to the expansion of the state sales tax base.

In a wide-ranging poll of Arizona voters commissioned by the ASCPA and conducted by Behavior Research Center in early May, 71 percent of respondents were opposed to an expansion. In fact, opposition to the expansion remained significant even after respondents were told that it could lead to lower property and income taxes. This research conclusively demonstrated that Arizona voters don’t have any appetite for new taxes, especially on professional and personal services.

In the coming months, the ASCPA and its lobbying team will be sharing more of the compelling data from this poll with executive and legislative leadership and staff.

The ASCPA Team Each year, the ASCPA tracks and engages on more than 100 pieces of legislation on topics ranging from professional regulation to obscure aspects of Arizona tax law. The ASCPA monitors every bill with a possible impact on the profession or Arizona taxes. Every piece of legislation that is introduced is read and analyzed to determine its impact.

To put this in context, this exceeds the level of legislative activity that the state’s three universities face every year — combined.

From improvements in electronic filing to State Board of Accountancy appointments — these were some big wins for the ASCPA. These accomplishments occur for many reasons, such as the experienced

leadership of Cindie Hubiak and her dedicated team.

But the real energy for these advocacy efforts comes from the ASCPA volunteers who take the time to visit the Capitol as both tax experts and “real people.” The volunteers who take time away from their businesses to attend events and to visit the Capitol are the individuals who leave lasting impressions at the Arizona Legislature, and truly set the ASCPA apart.

The ASCPA’s involvement and reputation in Arizona policymaking is unparalleled. The active and engaged role that the ASCPA plays at the Arizona State Capitol is an ideal model for legislative engagement. The ASCPA has become essential in “scrubbing” legislative tax proposals, and lawmakers on both sides of the aisle rely on the invaluable resources that Arizona’s CPAs provide.

Very few professions enjoy the standing and respect that the ASCPA experiences in the policymaking process. n DeMenna Public Affairs is a Phoenixbased government relations, public affairs and political consulting firm. For more information, contact www.demenna.com.

Construction Industry Conference - Oct. 26 Desert Willow Conference Center

Now Also offered as a Webcast Cash Management: What Got You Here Won’t Get You There — Steve Lords, Arizona Pipeline Co. Company Growth & Associated HR Risks — Jennifer Ward, Mountain States Employers Council (MSEC), Michelle Walker, Specialized Services Company (SSC), and Marian Enriquez, Sundt Construction, Inc. Lien-a-Palooza: The Amazing Power of Arizona’s Lien and Stop Notice Statutes — Michael J. Holden, Holden Willits PLC Cost Reduction by Eliminating Risks — John Holt and Craig Carson, Southwest Risk Management, LLC Business Transition Strategies — John M. Murdough, Henry+Horne Greater Phoenix: 2017 Trends and Activity Report — Darryn Jones, Greater Phoenix Economic Council (GPEC) Red Flag Warning: Is the IRS Turning Up the Heat in its Enforcement of Tax Laws? — Christine Ulibarri and Evan Feldhausen, BeachFleischman PC

Learn more at www.ascpa.com/conferences

SEPTEMBER 2017 AZ CPA

17

2016/17 PAC Report The ASCPA is the voice of the CPA profession in Arizona. Because of our lobbying efforts and PAC dollars, lawmakers listen when we speak and initiate conversations with us to improve their decisionmaking.

Guided by our lobbyists of more than 20 years, DeMenna Public Affairs, the ASCPA PAC and ASCPA leaders contribute money to a wide variety of candidates, current lawmakers and both major political parties. We make sure those who impact the CPA profession know we represent more than 5,500 CPAs who care about their credential and Arizona. This past fiscal year, the ASCPA raised more than $50,000 to open doors, share ideas and make sure CPAs have a “seat at the table.� Please help us continue to help you and the profession by contributing to our PAC today at www.ascpa.com/PAC.

Your PAC Contributions for FY 2016-2017

$51,052 Total Contributed to Candidates/Causes:

$45,300

18

AZ CPA SEPTEMBER 2017

2016-2017 PAC Contributors ($250 or more)

Sandra A. Abalos Karen M. Abraham Sandra L. Akmon Mike Allen Cord D. Armstrong Corey Arvizu Anita F. Baker Steven E. Bandler Bruce D. Beach Peter F. Beahan Lawrence C. Bello Jeffry A. Bither R. Gregory Blake Brenda Blunt Francis J. Brady James F. Brewer Christine Brueser Jay L. Buck Jim Buhr Donald Butler, II Debra A. Callicutt Kevin F. Camberg Brian J. Campbell Michael Chesin George M. Cohen Andreas D. Coumides, Jr. Lisa L. Daniels Benjamin L. Darwin Virginia DeSanto Bradley S. Dimond Robert E. Dubberly Mary K. Duffy Pam J. Eggert Marcus Feder Ira S. Feldman Lawrence Field Teresa Finley Michael T. Finnegan Marc D. Fleischman Gary W. Fleming Michael I. Fleming Randy Fletchall Barry R. Frieflied Thomas L. Friend Clifford D. George Anthony R. Gerlach Gary Gethmann Rufus Glasper Richard H. Goldenson

Charles H. Goodmiller Jacob P. Gregory Darlene D. Hagan Anthony M. Hakes Sean Hales Stephen T. Harris Victoria C. Harris Joshua P. Hayes R Dale Hensley Jeremy S. Henson William J. Hodges, Jr. Michael A. Hoering Herbert J. Hoffman David L Hopkins Cindie Hubiak Daniel B. Hughes Debra Hunter David M. Iaconis Charles J. Inderieden Colette Kamps Evelyn A. Kleinhans Julie S. Klewer Joel B. Kramer Richard C. Kudzmas Adam D. Kunkin Chad D. Kunze Mark Landy Donna H. Laubscher Michael L. Lauzon Robert J. Leslie Chris Ludwing Christopher A. Lutes Johannes J. Marais Alexander T. Marr Charles A. Marx, Jr. Marilyn M. Mays Karen K. McCloskey Phillip R. McCollum, Jr. Charles A. McLane George H. McNamara Norman R. Mendoza, II Julia Miessner David G. Miller Dennis E. Mitchem Bryan W. Mogensen Molly Montgomery John M. Murdough Robert Nahom Ralph G. Nefdt Melinda K. Nelson Greg Nelson

Lori A Niederlehner Bruce Nordstrom Dennis J. Osuch Randall L. Ottaway Lata Pall Jay Z. Parke Mark Patton Loretta Peto David P. Phillips Jonathan M. Poppel Bradley J. Preber John W. Prenzno Victor D. Puchi Jeffrey Quick David H. Richardson Christina C. Roderick Stephen J. Rodis Jay R. Rold Armando G. Roman Eric Rudner LeAnn M. Rudolph John Russo James A. Schmidt Richard R. Schultz Jay J. Senkerik Stella M. Shanovich Jennifer L. Shields Layne R. Simmons Jeremy A. Smith Curtiss Smith Andrew M. Spillum Leslie B. Stackpole Ronald L. Stearns Steven L. Tait Eric S. Taylor Philip W. Taylor Nancy Thomas Candace B. Tooke Todd Trendler Christopher W. Tyhurst Peggy H. Ullmann Jared Van Arsdale Carlos E. Wagner Scott Wallace Lynn C. Westergard Pamela D. Wheeler Corrine Wilson Susan Wolak Char Woodall G. J. Wright Robert Wyndelts Dominic J. Zamora Scott R. Ziemer Edward K. Zollars

SEPTEMBER 2017 AZ CPA

19

Tax Reform Ahead?

by Don Farmer

20

AZ CPA SEPTEMBER 2017

Will major Federal tax legislation be enacted in 2017?

If so, will there be a retroactive reduction in tax rates?

These are questions that practitioners and our clients are asking. The tax rates that apply for 2017 and 2018 are critical in determining year-end planning moves. However, as of this writing (at the beginning of August), the fate of tax reform is uncertain.

On July 19, 2017, the House Budget Committee passed a budget resolution for the fiscal-year ending September 30, 2018. This is a first step toward tax reform.

The budget resolution directs the Ways and Means Committee to draft tax legislation and present it to the Budget Committee by October 6, 2017.The resolution calls for comprehensive tax reform legislation that lowers the income tax rates for individuals, pass-through entities and corporations and eliminates tax breaks to pay for these lower rates. Specifically, the budget resolution calls for the House bill to: 1) simplify the Tax Code to make it fairer to American families and businesses and to reduce the amount of time and resources necessary to comply with the tax laws; 2) substantially lower the tax rates for individuals and consolidate the current seven individual income tax brackets into fewer brackets; 3) repeal the Alternative Minimum Tax; 4) reduce the corporate tax rate; and 5) transition the Tax Code to a more competitive system of international taxation. The details for meeting these objectives (tax rates, effective dates, etc.) are left up to the Ways and Means Committee.

If the full House and the Senate approve the budget resolution, tax reform may be accomplished via the 2018 budget reconciliation process. By including tax reform within the budget resolution for fiscal year 2018, only a majority vote (rather than 60 votes) will be required to pass tax reform in the Senate. However, there are two consequences of using this strategy: 1) the tax changes must be revenue neutral, and 2) the changes may only be effective for 10 years (i.e., through 2027). (My Tax Update in Phoenix on October 27, 2017 will contain an up-to-date status report on tax reform.)

Practice Alert! The longer it takes for Congress to pass tax reform legislation, the less likely any decrease in tax rates will be retroactive.

President Trump’s Executive Order For Treasury To Review “Significant” Regulations On April 21, 2017, President Trump issued Executive Order 13789, a directive designed to reduce tax regulatory burdens. The Order directs the Secretary of the Treasury to review all “significant tax regulations” issued on or after January 1, 2016, and submit two reports, followed promptly by concrete action to alleviate the burdens of regulations that meet criteria outlined in the order. First, the Executive Order directs Treasury to submit a report identifying regulations that 1) impose an undue financial burden on U.S. taxpayers; 2) add undue complexity to the Federal tax laws; or 3) exceed the statutory authority of the IRS. Secondly, the order instructs the Treasury Secretary to submit a final report to the President

by September 18, 2017, recommending “specific actions” to mitigate the burden

imposed by regulations identified in the first report.

On July 7, 2017, the IRS issued Notice 2017-38. The Notice says that Treasury and the IRS have reviewed 105 regulations and have identified eight regulations meeting at least one of the first two criteria outlined in Executive Order 13789. In Part lV of Notice 2017-18, the IRS requests comments on whether the listed regulations should be rescinded or modified, and in the latter case, how the regulations should be modified to reduce taxpayer burdens and complexity. Comments were required to be sent to the IRS no later than August 7, 2017. The IRS and Treasury are to submit a report to the President by September 18, 2017 recommending “specific actions” to mitigate the burden imposed by these regulations. The following is a listing of the eight regulations identified by Treasury and the IRS: Proposed Regulations Under Section 2704 Affecting “Valuation” Discounts (REG-163113-2) These regulations are designed to reduce valuation discounts for estate, gift and generation-skipping-transfer tax purposes for transfers of family businesses or family investment entities to family members. If finalized, these proposed regulations will have a significant impact on the transfer tax consequences for transfers of interests in controlled family entities to family members. Many appraisers currently utilize “applicable restrictions”, as defined under §2704, to discount the value of an entity for lack of control (i.e., minority interests) and lack of marketability. Such discounts, in aggregate, often range from 15 to 40 percent. By, 1) Refining the definition of applicable restrictions under §2704, 2) Adding a new category of restrictions that are disregarded in determining the value of the transferred interest, and 3) Ignoring insubstantial interests held by nonfamily members and charities, the proposed regulations would significantly limit the ability to apply minority interest and marketability discounts.

SEPTEMBER 2017 AZ CPA

21

Arizona Federal Tax Institute Conference Oct. 31 – Nov. 1 Tempe Center for the Arts Learn about these topics and more at this year’s two-day conference.

Ethics: A Year in Review Marianne Jennings, Arizona State University

2017 Representation Update Bob McKenzie, Arnstein & Lehr LLP

“But I did it For Free”: Preparer Responsibilities and Compliance for Nonprofits Brenda Blunt, Eide Bailly LLP

Serving Your New Economy Clients Annette Nellen, San José State University

Estate Planning Tom Murphy, Murphy Law Firm

Tax Reform: Trick or Treat Annette Nellen, Burgess Raby, Tom Murphy, moderated by Bob Wyndelts

Arizona’s Economy and How We Can Influence Growth Jim Rounds, Rounds Consulting

Current Issues in Partnership Taxation Jim Hamill, Reynolds, Hix & Co., P.A. Arizona Taxes – The New and Exciting Stuff James Busby, Cavanagh Law

Tax Update Ed Zollars, Thomas, Zollars & Lynch, Ltd.

Register at www.ascpa.com/conferences 22

AZ CPA SEPTEMBER 2017

Final And Temporary Debt/Equity Regulations Under Section 385 (T.D. 9790) These final and temporary regulations address the classification of related-party debt as debt or equity for Federal tax purposes. The regulations primarily include: 1) rules establishing minimum documentation requirements that ordinarily must be satisfied in order for purported debt among related parties to be treated as debt for Federal tax purposes; and 2) transaction rules that treat as stock certain debt that is issued by a corporation to a controlling shareholder in a distribution or in another related-party transaction that achieves an economically similar result.

Practitioners have criticized the cost of complying with the documentation rules as well as the complexity associated with tracking multiple transactions through a group of companies and the increased tax burden imposed on inbound investments.

Temporary Regulations Under §707(a) (2)(B) And §752 (TD 9788) These temporary regulations, in certain situations, change the rules for determining how partnership debt is allocated to partners for general debt allocation purposes under §752 and for purposes of applying the disguised sale rules under §707(a)(2)(B). Practitioners have complained that these regulations: 1) are unnecessarily complex and could cause unexpected tax consequences due to the new rules involving so-called “bottom-dollar payment obligations” (BDPOs), 2) contain onerous and confusing new reporting requirements for BDPOs, 3) reflect changes to the disguised sale rules that could negatively impact ordinary partnership transactions, and 4) contain inequitable effective dates.

Five Other Regulations Identified By The IRS The other regulations listed in Notice 2017-38 include: 1) Proposed regulations under §103 defining a “political subdivision” that is eligible to issue tax-exempt bonds (REG-129067-

15); 2) Regulations under §337(d) on certain transfers of property to regulated investment companies (RICs) and real estate investment trusts (REITs) (T.D. 9770); 3) Final regulations under §7602 allowing the participation of outside economists, engineers, consultants, and attorneys, hired by the IRS, in a summons interview (T.D. 9778); 4) Final regulations under §987 on income and currency gain or loss with respect to a §987 qualified business unit (T.D. 9794); and 5) Final regulations under §367 eliminating the ability of taxpayers to transfer foreign goodwill and going concern value to a foreign corporation without U.S. tax. (T.D. 9803).

Practice Alert — We should receive notification from Treasury and the IRS by September 18 concerning modification or withdrawal of these regulations. n Don Farmer is president of Don Farmer, CPA, PA and is one of the ASCPA’s most popular presenters.

Don Farmer’s Tax Update Live and on Webcast – Oct. 27

New Location:Phoenix Convention Center First-time Ever Offered as a Webcast!

Will major Federal tax legislation be enacted in 2017? If so, will there be a retroactive reduction in tax rates? Will the estate tax be repealed? Will the taxes and penalties under the Affordable Care Act be modified or repealed? These are just a few of the questions Don Farmer will address during his 2017 Federal Tax Update presentation on October 27, 2017. Farmer will bring you up to date on the latest developments in Federal income taxation including planning in light of these developments.

Register today - www.ascpa.com

SEPTEMBER 2017 AZ CPA

23

Highlights of the July ASCPA Board of Directors Meeting Among other actions at its July 26, 2017 meeting, the ASCPA Board of Directors reviewed the following: Auditor Report The 2016-2017 financial report was given by the independent firm of Mayer Hoffman McCann P.C. An unqualified audit report was issued.

Consent Agenda The consent agenda, which included the board minutes and financial statements, was approved.

Conflict of Interest Policy Board members reviewed and signed the conflict of interest policy as part of the annual process.

Dialogue with AICPA Board Liaison Anita Baker, the Society’s AICPA liai-

son, shared her insights on the AICPA’s approach to the future of the profession.

Nominating Committee Report The board approved the following names as members of the nominating committee: Mike Allen (committee chair), Tom Duensing, Rachael Golliet, Jay Parke and Layne Simmons. The board had a conversation on the areas of expertise the committee should explore when adding the new directors.

Strategic Plan Update Cindie Hubiak provided an update on the Society including our participation on the committee looking at possible taxation of digital goods and services.

She also thanked those who were able to attend our open house at our new suite (#180) at the same address.

A Day in the Life Marcus Feder, Karen Abraham and Char Woodall each shared a view of the challenges and joys they experience in their life and job.

Other Business No other business was conducted. n If you have questions or would like additional information, please contact Cindie Hubiak at (602) 324-2888; AZ toll free at (888) 237-0700, Ext. 203; or chubiak@ascpa.com.

So You Want to Buy or Sell an Accounting Pratice?

Here are the Keys!

If your 2017-18 goals include selling your practice to begin to enjoy your well-deserved retirement plans or you’re confident that now is the time for you to grow and prosper by acquisition. Now is the time to talk!

Arizona Practices Currently Available Through Able Tax and Accounting Practice Sales Location Prescott Phoenix Flagstaff

License EA CPA CPA

Gross Revenue $ 200,000 400,000 260,000

Tax % 60% 95% 60%

Acct% Ref # 40% AZ1091 5% AZ1119 40% AZ1120

(… and more are currently in negotiations)

Visit our web site at www.ableta.com Gary W. Hankins, CPA* hankins@ableta.com (817) 738-3287 *Licensed in Texas

Visit our web site at www.ableta.com for further discussion of the process of buying and selling accounting and tax practices plus review our success story, principles of operation and how our customers appreciated our services.

THIS IS ONE OF THE MOST IMPORTANT DECISIONS OF YOUR CAREER! We can answer all your questions.

24

AZ CPA SEPTEMBER 2017

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

Receive a score of 70 percent or more and earn one hour of CPE credit in specialized knowledge. It’s that easy!

Fees Members: $25 Nonmembers: $40 Online Access Go to www.ascpa.com/QuickQuiz to access links to all active quizzes. Purchase quiz and the quiz link and password will be emailed to you. Your results will be sent immediately after completing, 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 September, 2018. Please note that users have three attempts to pass the quiz with at least a 70 percent score.

September 2017 Issue of AZ CPA* 1. I n t h e C h a i r ’ s m e s s a g e , Montgomery’s list of how the Society supports advocacy includes all but: m Continually monitors potential legislation m Passes laws on behalf of its members m Supports members with implementing new laws 2. H.B. 2280 applies to taxpayers required to file tax returns and make payments regarding the following taxes among others except: m Jet fuel excise and use taxes m Government property lease excise tax m Individual income tax 3. Of those who are required to, failure to make a payment electronically may require you to pay a penalty at what percentage: m 5 m 7 m 10

5. Having “the proper tools and resources to work at their best” falls into which of the five areas of need to be addressed with your employees: m Relationships m Safety and Security m Personal Growth 6. What percentage of the 600 voters said they were opposed or strongly opposed to extending sales tax to

professional services? m 26% m 33% m 71% 7. What was the second bill signed into law in 2017 by Gov. Ducey? m HB 2280 m Internal Revenue Code Conformity m ADOR Legislation 8. ASCPA PAC contributions for the past fiscal year totaled: m $33,700 m $45,300 m $51,052 9. Executive Order 13789 directs the Treasury to submit a report identifying regulations that do all of the following except: m Adds undue complexity to the Federal tax laws m Complies with statutory authority of the IRS m Imposes an undue financial burden on U.S. taxpayers 10. The IRS issued Notice 2017-38 in which the Treasury and IRS identified eight regulations out of how many, that met the criteria outlined in Executive Order 13789? m 101 m 103 m 105

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 #: _______________________________________________ 4. According to Gallup, the national average for this level of employee engagement is at 51%: m Engaged employees m Actively disengaged m Somewhat engaged

Expiration Date: _____________________________________________ Name on Card. _____________________________________________ Mail to: ASCPA, 4801 E. Washington St. Suite 180, Phoenix, AZ 85034-2040; fax to (602) 324-6045 scan and send to ASCPACPE@ascpa.com.

SEPTEMBER 2017 AZ CPA

25

Classifieds Business Opportunities/ Practices for Sale

individual tax preparation and consulting. Please contact CPAfirm3@gmail.com.

N. ARIZONA PRACTICE FOR SALE — Sole practitioner in Page, Arizona looking to retire. Good growth opportunity for right firm. Solid client base. Situated on the shores of Lake Powell, center of the Grand Circle. Great recreation opportunities. Call (928) 6459478 for more information.

EAST SIDE CPA PRACTICE FOR SALE — Local CPA who is retiring, seeks to sell a well-established tax practice on the east side of Tucson located in a busy shopping plaza. The practice has a very loyal and diverse client base.

This practice has experienced significant growth every year and has a great potential for additional growth in a rapidly expanding area of Tucson. Owner will assist in the transition. Email denise@ mstaxtucson.com.

OPTIONS AVAILABLE — TEMPE — Two options available Customer list for sale $75,000 annual billings. You may be looking to start you practice with some seed clients or add revenue to your practice without all the time consuming marketing process. Tax and Accounting Clients. (602)670-3312 We are looking for a Jr Partner for our practice. We provide a wide range of services to our clients; Accounting, Tax, Payroll, QuickBooks, Consulting. Intellectually stimulating range of services. If you like to help people solve problems and are ready to earn your share of the pie, send Resume/Cover Letter to officemgt15@ gmail.com.

O R O VA L L E Y / M A R A N A C PA PRACTICE — Oro Valley sole practitioner CPA is seeking to buy a comparable practice in Oro Valley, Marana or NW Tucson. Our practice is personal tax preparation/planning as well as fee-only financial planning and investment management. We would also consider a merger partner or an office sharing arrangement. Our firm is a Registered Investment Adviser and we are focusing our growth in that area.

Contact John Daniels at (520) 572-8774 or john@johndanielscpa.com. Website: http://johndanielscpa.com.

TUCSON CPA TAX PRACTICE seeks succession plan with new partner — A two partner firm of over $1 million revenue seeks a tax partner or manager to buy out partners over time. Beneficial if interested person has an existing practice to merge in. Established over 30 years, the practice is highly profitable with a strong concentration in business and

26

AZ CPA SEPTEMBER 2017

WE BUY CLIENTS — Our CPA firm would like to offer a smooth transition in the purchase of your clients. We will purchase anywhere from one client, up to an entire practice in the Phoenix/ Scottsdale metro area. If you’re thinking of retiring or downsizing your practice and need to transition your clients to a professional CPA firm, please call us. Our staff has been practicing in the valley for over 30 years with an emphasis in business taxes and accounting. Our office is located near Thunderbird and Scottsdale Rd. Please contact us today for more information. Call Larry Workman (480) 990-2727 or larry@partridgecpas.com.

Employment TUCSON CPA FIRM has an opportunity for a licensed CPA with a minimum of 3 years public accounting experience.

Candidate should be a career-minded self-starter with strong interpersonal and communication skills.Experience: • Plan and prepare federal and state individual and business tax returns. • Reconcile accounts, compilations and preparation of financial statements.

• Solid knowledge of reporting state and local sales tax and payroll taxes.

• Advanced working experience using Quick Books, Creative Solutions, Ultra Tax and Excel preferred. This a full-time position with competitive salary and benefits DOE. Please send your resume with salary requirements to ovcpafirm@ gmail.com.

C A R E E R O P P O RT U N I T Y — MANAGER/SENIOR — Sigrist, Cheek, Potter & Huyser, PLLC — Fasttrack growth opportunity for bright, motivated CPA. We are a growing, mid-size Scottsdale firm looking for someone who can make an immediate impact by bringing strong client skills, tax and/or accounting background and a willingness to invest in their own and the firm’s success. Friendly environment that emphasizes team approach to a broad spectrum of client support.

The successful candidate will have the willingness and ability to manage client relationships from a position of empathy and advocacy. We offer a highly competitive compensation/benefit package in addition to a supportive work environment. Please send your resume or contact information to howellcheek@ azcpas.com.

GRANTS AND ACCOUNTING COORDINATOR — Please see the City of Maricopa website for full recruitment and application details. https://www.governmentjobs.com/careers/ cityofmaricopaaz/jobs/1646857/grantsand-accounting-coordinator?pagetype=job OpportunitiesJobs. Applications will only be accepted via the City of Maricopa website.

CPA FIRM, TECHNOLOGICALLY ADVANCED AND NONTRADITIONAL ADDS NEW TAX POSITION — R.C. Thornton & Associates is located in North Phoenix, Arizona. Our culture of top-notch team-collaboration produces excellence. We are rewarded by working less hours than most CPAs. Our efficient firm has streamlined technology utilizing a cloud environment and CCH systems.

A dynamic mentor training program will ensure your success. Qualified CPAs have 5+ years of recent tax experience.

Preferably an MS degree in Taxation or candidate. Are we a good fit? Before applying go to http://www.rcthornton. com/careers.html read about our culture, benefits, education and watch the career videos then email your resume to info@ rcthornton.com.

TAX MANAGER AND TAX STAFF — Eight-person Tucson CPA firm, has Tax Manager and Tax Staff positions open for CPAs with a minimum of five years of recent CPA firm experience with partnership potential. Proven sales and marketing skills are highly desirable.

We offer highly competitive salaries and comprehensive benefits, including group health insurance, 401(k) with company 4% contribution, eight paid holidays, paid sick time and vacation, and complete reimbursement of all CPA related expenses. Please apply for the Tax Manager or Tax Staff opportunity today, by sending your resume and salary requirements to cpafirm3@gmail.com.

the heart of thriving North Peoria. This 2,797 sq.ft. suite has the highest quality wood trim and finishes giving it Biltmore area quality. It is the last suite in a 98% occupied highly professional center.

Contact Tevis (623) 707-5280 or email: tevis@essex-companies.com.

TAX SENIOR ASSOCIATE — MRA Associates — A tax senior associate works with team members to provide high net worth families, individuals, and their related entities with tax compliance and consulting, and wealth management services. The position is responsible for adding to the team’s efforts in all client relations including planning, directing, and executing all tax projects effectively.

This position will also develop tax planning techniques for prospective clients and make general recommendations for appropriate additional services. • Masters degree in Tax from an accredited university required • CPA certification required • Two or more years current public accounting experience including individual and trust taxation. http:// mraassociates.com.

OFFICE SPACE AVAILABLE WITH GROUP OF TUCSON CPAS — Share in costs with Tucson CPA group for a receptionist, conference rooms, a comprehensive library, copier/fax/ scanner and other office services and facilities. Become part of CPAs who each own their own practices, but unite together in discussions and

Office Space 16th STREET & GLENDALE AVE — 2,300 - 3000 SF Suite available, possibility of shared resources/services with 8 other professionals in the building. All of the amenities you will want and need.

MOVE IN READY! Recently renovated in premire professional location with great visability. Call Jason at (602) 850-5110 or email Jason@azcre.biz.

BEAUTIFUL NORTH PEORIA LOCATION —This is it! Premier Office development located by Happy Valley-Lake Pleasant intersection, in

OFFICE SPACE AVAILABLE IN OLD TOWN SCOTTSDALE — Ideal location. Large Executive office space in a professional suite. Share space with other CPAs & attorney, with access to the typical amenities (conference & copy room and kitchen). A staff office is also available. Contact Rita at (602) 553-0202 or wandatang@wandatangpc.com.

interpretations of tax and accounting issues through personal interaction or meetings. Options available to either lease your own office space from the group or pay a standard monthly fee to have use of the conference rooms, receptionist, mail services, copier/fax/ scanner and other services. Located in the prestigious Plaza Palomino. Please contact David Lotz or Randy Livingston for more details. (520) 321-1334.

Website: http://CPATUCSON.COM. SCOTTSDALE OFFICE SPACE AVAILABLE — Raintree & Hwy 101.

Large window office with adjacent cubicle in class A building is available immediately. $800/month includes one covered parking spot, file and copy room. One-year lease. Call Jim for more information (480) 951-9229 or email jww3996@aol.com.

For information about classified ads visit www.ascpa.com.

Elderly Clients?

Meeting the needs of aging clients often calls for teamwork between their CPA and their lawyer.

If a client shows signs of declining health or capacity, from loss of mental sharpness to low bank balances, your call to Frazer Ryan can help them get the care and the legal protection they may need.

Charles L. “Chick” Arnold

Marsha Goodman

James E. McDougall

Joshua N. Mozell

Our Elder Law and Mental Health attorneys offer nationally recognized skill in estate planning, planning for disability and long-term care, and protecting the elderly and mentally ill.

3101 N. Central Ave., Suite 1600 Phoenix, Arizona 85012

602-277-2010

www.frgalaw.com

SEPTEMBER 2017 AZ CPA

27

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

28

AZ CPA SEPTEMBER 2017