Disclosures: November/December 2018

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THE CASE FOR CONFORMITY

The new federal tax law has made tax conformity in the Commonwealth more important than ever.

25 ’We Must Start From a Place of Conformity’

Virginia Secretary of Finance Aubrey Layne, CPA, on tax conformity, reform and policies.

28 Keep the Charitable Gifts Coming

There are ways your clients can still give to their favorites nonprofits and receive tax benefits, even with tax reform.

president’s perspective

4309 Cox Road Glen Allen, VA 23060 (800) 733-8272 vscpa.com

Advocacy efforts on display disclosures

disclosures.vscpa.com disclosures@vscpa.com

Volume 31,

Managing Editor

Jill Edmonds disclosures@vscpa.com

Contributing Editor

Chip Knighton cknighton@vscpa.com

Public Affairs & Communications Director

David Bass dbass@vscpa.com

Editorial Task Force

Olaf Barthelmai, CPA Cheri David, CPA

Mike DellaRipa, CPA Melisa Galasso, CPA Genevieve Hancock

Karen Helderman, CPA Alesia Lewis, CPA

Gabriele Lingenfelter, CPA

Harold Martin Jr., CPA David Peters, CPA Mark Plostock, CPA

Barbara Sukramani, CPA

Disclosures is published six times a year by the Virginia Society of Certified Public Accountants (VSCPA). The magazine’s mission is to communicate information of value to VSCPA members, including professional issues and VSCPA initiatives. The materials and information in Disclosures are offered as material only and not as practice, financial, accounting, legal or other professional advice. Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of VSCPA officers, members or editorial staff. Publication of an advertisement in Disclosures does not constitute a VSCPA endorsement of the product or service.

Copyright © 2018 Virginia Society of CPAs.

VSCPA Preferred Providers

I n September, the VSCPA released a whitepaper, “Virginia Tax Conformity: 2018 and Beyond,” detailing our official position on tax conformity in Virginia as it relates to federal tax reform. That paper is a great example of a VSCPA activity you might not know much about — serving as a key resource for Virginia decision-makers, both legislative and regulatory. These activities allow us to tap into our members’ knowledge base and provide real-world insight into how policy decisions will play out.

This kind of service tends to play out way behind the scenes and involves both VSCPA staff and member volunteers. Often, it takes the form of working with agencies that need to fix language in new or existing regulations or clarify requirements on how CPAs need to be involved and what they need to do. Is a full audit required for an activity, or will a lower level of service suffice? Sometimes this involves tax credits and grants, but often it’s just the VSCPA using CPA expertise to create clarity and certainty around rules and regulations that agencies have.

The whitepaper is just the latest example of the ongoing conversations we have with the Virginia Department of Taxation (TAX). In addition, our recent work with agencies includes:

• Consulting with the Virginia Department of Historic Resources to define the Agreed-Upon Procedure (AUP) for its Historic Rehabilitation Tax Credit program

• Helping the Virginia Department of Housing and Community Development update the AUP for its Enterprise Zone Grant Program

• Intervening on our members’ behalves to get extensions and troubleshoot

issues with the Virginia Employment Commission’s online filing system

• Creating a feedback group for TAX to work directly with the Department on filing and process issues

On the staff side, this tends to involve our advocacy team most of the time, and we retain the services of Richmond law firm Williams Mullen, where partner Patrick Cushing is an invaluable resource. And our members are a major part of these efforts as well, tapping into their own experiences to help clarify what certain language will mean in practice. They take it from the hypothetical to the practical.

VSCPA members can let us know which agencies need assistance so we can work to help clarify their regulations and requirements. When our government agencies are running at peak efficiency, everybody in Virginia wins, and we do what we can to help make that goal a reality. n

Stephanie Peters, CAE, has served as VSCPA president and CEO since 2007.

speters@vscpa.com @StephPeters connect.vscpa.com/StephaniePeters

line items

Finance moves beyond the numbers

TICKER

55

The percentage of the costs students and their families pay at four-year Virginia colleges and universities.

33

The percentage that Virginia would like students and families to pay, as outlined in the state’s cost-share goal.

In a fast-paced environment, the finance function of organizations is becoming more than just core accounting.

While accounting is still a function of finance, that team is now “capable of assessing a broader range of information and becoming a more influential player within an organization,” according to a new Chartered Global Management Accountant (CGMA) report from the Association of International Certified Professional Accountants.

New technologies can enable finance to take on a broader role, moving from working in isolation and just issuing reports to working with other groups to develop and deploy solutions. To accomplish this change, CFOs and their teams must implement “more fusion between tasks and activities carried out within the finance function, and far greater interaction with the business.”

And if the role of the finance team is changing, that means you have to change with it. Competencies and mindsets require a shift, especially as technological automation becomes the norm. Workers must constantly open themselves up to learning new things as technology replaces old skills and knowledge.

Learn more in these reports: “The Changing Role and Mandate of Finance” and “Changing Competencies and Mindsets,” available in the Resources section of cgma.org.

DID YOU KNOW?

By March of 2023, Sweden will be the first society to go cashless. Even now, cash makes up only around 1 percent of the value all payments made and less than 20 percent of store transactions. In the past decade, the cash in circulation has decreased by around 50 percent. Sweden was an early adopter of using bank cards for payment.

37

The percentage of Americans who described U.S. financial markets as stable during the first months of 2018, despite significant fluctuations.

48

The percentage of U.S. adults who believe a volatile financial market is a good way to make an investment profit.

9

Washington, D.C., ranking on the list of top U.S. cities for meetings and conventions. Orlando was No. 1.

3.5

The number of times women are more likely to outlive their spouses than men.

50

The percentage of widows who face a 50 percent or more decline in household income.

2.2 MILLION

The number of college students ages 35 or older in 2015.

CHARITABLE GIVING IN AMERICA

SO A DATA BREACH HAPPENED. YOU HAVE TO TELL TAX!

More Americans are giving to charities and philanthropies than ever before. Charitable giving in 2017 totaled $410 billion, a 188 percent change from 1977, and total household giving also climbed — from $120 billion to $287 billion.

Despite these gains, the amount of household giving as compared to total giving has declined, from 84 to 70 percent. That means charities are relying more and more on other giving sources, like corporations and foundations.

Because the Tax Cuts and Jobs Act of 2017 reduces the number of taxpayers who itemize, experts believe household charitable giving will decline, which could affect small and medium-sized nonprofits the most, particular local charities. (See page 24 for some ways your clients can still receive tax benefits for charitable giving, however.)

Check out “The Growth in Total Household Giving is Camouflaging a Decline in Giving By Small and Medium Donors,” from Nonprofit Quarterly, at tinyurl.com/ NPhouseholdgiving.

Despite your best efforts, a data breach may happen. But you can’t put your head in the sand. A new law passed by the Virginia General Assembly effective July 1 now requires tax professionals to report any breach of taxpayer data within a “reasonable time period” once the breach is discovered. In addition to telling the affected parties, you are obligated by law to call the Virginia Department of Taxation (TAX).

So keep the Tax Professionals Identity Theft Information number handy: (804) 404-4232. TAX will want to know your company name, your name and your Tax Professional’s Identification Number (PTIN), as well as information on the breach, like the date it occurred, the number of people affected, etc. TAX officials will work with you to determine any further action once they have the details.

Plan ahead now: You may need a REAL ID

Virginia has begun issuing driver’s license and indentification cards that are compliant with REAL ID. So, will you need one? That depends. Due to a new federal law, REAL ID-compliant identification will be required to board a domestic flight beginning Oct. 1, 2020, and to access secure federal facilities. A U.S. passport, however, will suffice in place of the REAL ID. If you do not have a passport and will fly domestically in 2020 and beyond, you may consider hitting the Virginia Department of Motor Vehicles and getting an updated ID. Standard driver’s licenses will still be fine for Virginia-specific transactions, such as voting, cashing a check and driving.

Have you seen it? The new vscpa.com is now live!

HEY PHONE, WE NEED TO TALK

EXCELLENT EXCEL >>

Save time filtering by adding to current selection

Do you need to break up with your phone?

Some studies show that simply holding your phone provides a wave of dopamine and oxytocin in your brain, making you feel happy and safe. As for the amount of time we spend staring at tiny screens? If the average is 90 minutes a day (and that’s a low estimate, by some studies), that still equals 23 days a year, or five years over a lifetime.

If you need an intervention, consider the following:

Crack a book. Firms that have instituted a rule that everyone must read 15 minutes a day have seen increased productivity and morale.

Leave it behind. Simply leaving your phone in your car — just during dinner, say — reduces your reliance on responding to messages immediately.

Track your usage. Apps that track how reliant you are on your device abound. Turn them on to see how bad your addiction really is.

Adapted from “Are you ‘more dumber’ than your smartphone?,” a blog post from the American Institute of CPAs. Read the post in full for more tips at tinyurl.com/y72arwvu.

At the Auditor of Public Accounts, we have statewide Excel tables with 285, 760 and 2,055 different business units, fund codes and account numbers, respectively. To find a particular item, we simply turn on filtering for the table using the Filter button on the Data toolbar ribbon. After filtering is turned on, we click on the arrow in the table header to make our selection. Instead of scrolling through all 2,055 account codes, we merely type what we are looking for in the Search box that appears in the dropdown menu when we clicked on the arrow in the table header.

Now here is the cool part. Let’s say we want to show information for a second account code along with the information for the first account code we searched for. To quickly add the second item without scrolling through the long list of codes, we would find the second account code by typing it into the Search box — but before we hit enter, we would check the box that says “Add current selection to the filter,” which should show up directly under the search box. By checking the “Add current selection to the filter” box, Excel retains the items from any previous filters and adds them to any new items selected. How cool is that?

George D. Strudgeon, CPA, CGFM, is an audit director at the Virginia Auditor of Public Accounts in Richmond. Email him if you have Excel topics you want him to cover.

george.strudgeon@gmail.com connect.vscpa.com/GeorgeStrudgeon

Robotics and audits

Two types of robotics can help auditors sift through information: Robotic Process Automation (RPA) and Intelligent Process Automation (IPA). RPA automates standardized and repetitive tasks, while IPA utilizes both RPA, artificial intelligence and other technologies to make automation smarter. IPA can deal with unstructured data and make complex decisions. For more, check out “Beyond Robotics: How AI Can Help Improve the Audit Process,” from the American Institute of CPAs blog at tinyurl.com/yapo8la9.

CPAs positive on economy, but wary of tariffs

Virginia CPAs still see a positive future for the U.S. and Virginia economies. But a year after President Donald Trump’s tax reform bill became law, opinions are split on the effects of his policies, according to the VSCPA’s 2019 Virginia Economic Expectations Survey.

Seventy-five percent of the 249 CPA respondents to the survey (a partnership with Virginia Business magazine) agreed that the U.S. economy is moving in a positive direction. Questions about the Virginia economy provoked a similar degree of optimism, with 60 percent of respondents taking an overall positive view of the Virginia economy and another 24 percent describing their outlook as “balanced.” When the same question was posed regarding respondents’ specific industries, 65 percent said they were somewhat optimistic or very optimistic and another 18 percent said they had a balanced outlook. (The 25 percent of respondents who answered “not applicable” to that particular question were not included in the numerator nor the denominator of that calculation.)

A plurality of respondents (36 percent) cited health care costs as the most pressing issue facing Virginia. Infrastructure (21 percent) and education (11 percent) were the only other issues that got more than 10 percent of the vote. Health care costs (84 percent) and the tax climate (57 percent) were the runaway winners as the issues that most need to be addressed in the 2019 General Assembly session. Those two items were also the top two vote-getters in the 2018 survey, with health care costs down 2 percent and the tax climate — perhaps because of the uncertainty surrounding tax reform implementation — up 9 percent.

Unsurprisingly, respondents reported a positive impact on their businesses from tax reform. (Agree or disagree with the bill, there’s a reason why David Kupstas referred to it as the “Accountants and Actuaries Full Employment Act” in these pages in May.) Fifty-eight percent of respondents said tax reform had been good for their business, with another 34 percent saying it had not had an impact. However, just 55 percent said they had gotten the needed clarification on the law.

Respondents were less bullish on Trump’s trade policy. Fifty-six percent said U.S. trade policy would have a

negative effect on the economy, although just 23 percent said their clients would feel that negative impact.

One anonymous respondent voiced his or her concerns about the impact of U.S. trade policy as such: “As long as we go toward the goal of balanced trade, I'm happy. We are still at a deficit right now, and tariffs will have a short-term negative impact on us, but will open up the floor for international negotiations for fair trade to happen.” Another rated Trump’s decisions as an overall positive for the economy, but said that tariffs would destroy more wealth than they would create.

Technology was a theme in the 2019 survey, with questions on cybersecurity, automation and artificial intelligence (AI). Eighty-two percent of respondents rated cybersecurity as a significant concern for the accounting profession, with just one respondent saying it was not a concern at all. One in five respondents (21 percent) said their organization had been the victim of a cyberattack in the past year.

Respondents were less concerned with automation and AI. A plurality of respondents (49 percent) said those technologies would be “somewhat disruptive” to the accounting industry, with just 13 percent rating them as “very disruptive.”

Based on the results of the survey, firms and companies are tentatively looking to expand. Forty-one percent of respondents directly said their company would expand, 44 percent said their organizations would increase compensation based on economic conditions and 41 percent said their organizations would increase hiring. However, “staying the same” was the top answer for each of the 12 categories included in the survey.

Further analysis of the results can be found in the November issue of Virginia Business, including regionspecific interviews with five VSCPA members: Scott Moulden, CPA, shareholder at Yount, Hyde & Barbour in Winchester; Lori Overholt, CPA, president & CEO at VSA Resorts in Virginia Beach; John Reynolds, CPA, senior accountant with block.one in Blacksburg; Gary Wallace, CPA, partner at Keiter in Glen Allen; and Andrew Youhas, CPA, managing partner at Youhas & Associates in Arlington. n

McNamara hopes for sweet Election Day victory

At the VSCPA, we’ve always said you can do anything with an accounting degree. But we have to admit, “ice-cream shop owner/state legislator” is a new one for us. VSCPA member Joe McNamara, CPA, is one election away from being just that.

McNamara, a Republican from Roanoke County, is facing off against Democrat Carter Turner to replace Del. Greg Habeeb (R-Salem) in representing the 8th District in the Virginia House of Delegates. He has served on the Roanoke County Board of Supervisors since 1998 (with a gap from 2009–2013) and cites his CPA bona fides as one of his main selling points for the potential new position.

In 2004, McNamara started discussions with another VSCPA member, Drew Barrineau, CPA, of the Roanoke County School Board, about how better to allocate funding for school and other capital expenditures. With the two CPAs leading the way, the boards devised a funding plan to better serve the county’s

needs and allow for year-end budget surpluses to be saved for construction projects.

“The goal was to have a capital fund that can support $10 million annually, without a tax increase, without cutting service, without jeopardizing raises,” McNamara said. “To my knowledge, there’s no other place in Virginia that has this approach, and it’s the result of two CPAs working together.”

McNamara is quick to credit the other members of each board for recognizing the value of the plan, and to praise the mix of experiences and backgrounds among those involved in the discussion. But to hear him tell it, the CPA mentality is too often missing from government. (Which it is in the Virginia General Assembly — if elected, McNamara would be the first CPA in the General Assembly since the retirement of VSCPA member and longtime Sen. Walter Stosch, CPA, in 2015.)

“The analytical approach to problem solving is a fabulous component in group decision-making,” McNamara said. “That’s not to say that everybody has to have that emphasis or that direction, because other thought processes will help modify and create good results, but at the end of the day, whether you’re running a business, whether you’re running a government, whether you’re running a household, if you don’t budget effectively, the results will not be good.

“Every single day, I might not be balancing a general ledger or posting entries, but that background as an accountant impacts my decisions.”

McNamara, who is quick to clarify that he is not in active practice and hasn’t been for some time, graduated from the University of Virginia’s McIntire School of Commerce before starting his career with Pennsylvania-based information technology company Unisys. He started out as part of the financial sales team, then rose to the position of Client Account Director before leaving in 2000 to focus on the more delicious part of his career.

He and his wife, Cheryl, started Katie’s Ice Cream & Chocolates in Roanoke County in 1995 and purchased the Salem Ice Cream Parlor in Salem a decade later.

Factor in his government commitments and a sizable family and it’s easy to see where all his time went.

All five of the McNamara children — Josh, Patrick, Joey, Corey and Colleen — have worked in his shops at some point. Josh followed his father’s accounting interest, graduating from James Madison University with an accounting degree and working for a small firm in Fredericksburg.

With just Colleen left in school at James Madison University, the McNamara nest is almost empty, freeing up some time for Dad to focus on a higher-profile government position. In a Republicanleaning district, McNamara is hopeful he’ll be in Richmond in a few months, but he’s not losing focus as the finish line nears.

“The key to the election is turnout,” he said. “Virginians sometimes suffer from voter fatigue. We’re one of the few states in the country that has elections every single year. There’s a tendency among some to vote in presidential election years and maybe others just vote in the governor election years, but the off-year elections are super important as well. The key is people researching the views of the individual candidates, going out and casting their vote.” n

CPA ASSEMBLY WEEK IS ALMOST HERE!

Whether Joe McNamara or Carter Turner wins the election in November, we need our members in the winner’s office pushing the importance of tax conformity. That issue will be the focus of CPA Assembly Week 2019, where VSCPA members will meet with legislators to discuss issues important to CPAs, their profession and their communities.

Tax issues are expected to take up a great deal of the oxygen in the 2019 General Assembly session, which presents a unique opportunity for CPAs to make an impact on the conversation.

We’re looking for members from across the Commonwealth to set meetings with their legislators to discuss conformity and the importance of its swift passage.

Email VSCPA Public Affairs & Communications Director David Bass at dbass@vscpa.com for more information or visit vscpa.com/ CPAAssemblyWeek to sign up.

taxation

Purchasing software?

Document, document, document

Software is a routine purchase for most businesses. Fortunately, Virginia (and some other states) provide an exemption from the retail sales and use tax for certain types of software. This can be a muchappreciated cost-saver, whether you are implementing a costly new enterprise resource planning system or just getting started with Quickbooks. However, unwary taxpayers may find themselves denied an exemption due to documentation issues.

SOFTWARE EXEMPTION DEFINITIONS

Exempt software falls into two general categories: custom computer programs and prewritten software delivered electronically (or in other than tangible format). Custom programs are generally defined as

those that are specifically designed and developed only for one customer. Virginia law goes further in its distinction between prewritten and custom software by including within the definition of “custom programs” the statements “[t]he combining of two or more prewritten programs does not constitute a custom computer program. A prewritten program that is modified to any degree remains a prewritten program and does not become custom.” Thus, custom programs meeting the above criteria typically are not purchased by most businesses.

On the other hand, virtually every business purchases some form of prewritten or canned software. “Prewritten software” is defined by Virginia law for sales tax purposes as ”that which is prepared, held or

Software can be exempt from sales tax in Virginia, but taxpayers must have the correct language in contracts to qualify.

Terry Barrett, CPA

virginia taxation

existing for general or repeated sale or lease, including a computer program developed for in-house use and subsequently sold or leased to unrelated third parties.” This includes your everyday, offthe-shelf prewritten software.

While few software vendors today sell software (prewritten, custom or otherwise) in tangible format — on CDs or “tapes” or another tangible medium — if the software is sold in tangible format it is subject to Virginia’s sales tax. Therefore, software purchased at stores like OfficeMax, Best Buy or from a valueadded reseller in CD format is subject to the tax— clearly something tangible is received by the purchaser. In addition, prewritten software that is preloaded on hardware prior to the delivery to the customer is also taxable since the software is transferred on something tangible.

Software delivered electronically, downloaded with a “key” or code or loaded by the seller onto a business’s computers is not taxable in Virginia. Virginia law specifically provides an exemption

from the tax, in part, for “services not involving an exchange of tangible personal property which provide access to or use of the Internet and any other related electronic communication service, including software, data, content and other information services delivered electronically via the Internet.” Similarly, software as a service (SaaS), where users remotely access software on a vendor’s or third party’s server and do not receive anything tangible in the process, is not taxable. This sounds relatively straightforward: tangible equals taxable; electronic equals exempt.

DOCUMENTATION IS KEY

A problem, however, may arise in documenting the electronic delivery/remote access of the software. State auditors are quick to deny an exemption and assess tax if sufficient documentation is not provided. The Virginia Department of Taxation’s minimum documentation requirements for confirming the electronically delivery of software products is set forth in Public u

virginia taxation

Document (P.D.) 05-44 (April 4, 2005). P.D. 05-44 provides that “at a minimum a sales invoice, contract or other sales agreement must expressly certify the electronic delivery of the software and that no tangible medium for that software has been furnished to the customer.” [Emphasis added.]

While this policy was clarified years ago, many software sellers still do not specify on their invoice, contract or sales agreement that the software is delivered electronically AND that no tangible property is delivered. Contractual language may state that the software may be provided electronically or in tangible format at the customer’s request, however, this permissive language is not sufficient to render the sale of software exempt. There must be a definitive statement that the software is delivered electronically and no tangible medium is provided. Most buyers believe that the mere fact that the software was delivered electronically (because that’s how everyone does it) renders the software exempt. That’s not the case.

VIRGINIA FOLLOWS THE LETTER OF THE LAW

Over the years, taxpayers have appealed tax assessments on software due to failure of the vendor’s contracts to meet the minimum documentation requirements, and quite frequently have been denied relief by the Tax Commissioner. Most recently, in P.D. 18-111 (June 8, 2018), in an appeal of the assessment of tax on electronically received software, the taxpayer provided copies of the vendor's quote, the purchase order, the sales invoice and correspondence from the vendor for the transaction at issue. The vendor’s correspondence referenced the purchase order number for the contested transaction and stated that the software and related maintenance were delivered electronically and were not physically delivered to the taxpayer.

The Tax Commissioner, however, responded that Virginia law requires that “[a]ny assessment of a tax by the Department shall be deemed prima facie correct” and the burden was on the taxpayer to prove the assessment was erroneous. He denied the exemption for the transaction. The Commissioner maintained that although the taxpayer had provided correspondence from the vendor that referenced the purchase order number for the contested transaction, that fact alone was insufficient evidence that electronic delivery was the only method available for delivery of the software.

The Tax Commissioner further maintained that because the taxpayer did not provide any of the types of documentation, i.e., a sales invoice, contract or sales agreement, which contained the required certification language discussed in P.D. 05-44, no exemption was allowed. It was also noted in the letter that the vendor’s sales invoice listed a “ship to” address and stated that the

delivery method was “ground,” which indicated the possibility that the software and maintenance agreement may have been delivered by a tangible medium.

In P.D. 11-70 (5/11/11), there was a similar situation in which a taxpayer contested an audit assessment on the purchase of software and provided email correspondence from the software vendor stating that there was no delivery of software via tangible media. The Tax Commissioner ruled that the vendor’s email correspondence alone was not sufficient evidence to support the removal of the purchase from the taxpayer’s audit.

The takeaways from the recent Tax Commissioner rulings are:

1. In order to qualify for the exemption from the tax, the documentation requirements of P.D. 05-44 should be met. Namely, the sales invoices or a contract/sales agreement for the purchase of electronically delivered software should state that the software is delivered electronically and no tangible medium is provided to the customer. Further, the invoices should not reference “ship to” addresses or physical delivery modes.

2. If the documentation provided in connection with a purchase of software does not clearly state the above, it is recommended the buyer reach out to the vendor to seek a revised invoice, contract or sales agreement that does.

3. If a software buyer cannot obtain such documentation, consider self-assessing and reporting use tax directly to TAX; if audited, TAX likely will assess the tax, interest and possibly penalties.

This issue frequently arises in audits and because a recent appeal letter was on point, odds are the issue is receiving renewed attention by auditors. If you have purchased any software recently, you may want to review the invoices/contracts to see if they meet the documentation tests — and if not, take action. n

Terry Barrett, CPA, is a tax senior manager at Keiter in Glen Allen. She focuses on state and local tax consulting, with a special interest in and emphasis on sales and use tax in the multistate arena. tbarrett@keitercpa.com connect.vscpa.com/TerryBarrett (804) 273-6254 keitercpa.com

WE’RE LOOKING FOR A FEW CPA STARS!

Nominate yourself or an outstanding colleague for a VSCPA Distinguished CPA Award by Friday, Dec. 7.

The VSCPA has added two new awards this year, and it only takes a few minutes to nominate a colleague! Award nominations can be made in the following categories:

Impact Award

Recognizes a VSCPA member who has made a recent contribution to the advancement of the profession by showing a commitment to one or more of the following: innovation, learning, advocacy or student activities.

Top 5 Members Under 35 Award

Recognizes a young CPA member (35 or younger as of April 30, 2019) who has shown excellence in one or more of the following: professional achievement, VSCPA or local VSCPA chapter accomplishment, community contribution or dedication to the CPA profession.

Outstanding Member Award

Recognizes a VSCPA member who has provided outstanding service to the profession through participation in VSCPA activities, civic engagement and charitable activities that further a positive image of accounting and the CPA profession.

Advancing Diversity & Inclusion Award

Recognizes a VSCPA member who champions diversity and inclusion in the field of accounting by doing one or more of the following:

• Plans and implements organizational initiatives to help ensure a diverse, inclusive workplace environment

• Champions policies and programs aimed at improving diversity in the profession

• Demonstrates leadership and commitment to raising awareness of diversity principles

• Serves as a role model for current and future CPAs through mentorship, coaching or other types of volunteer work in the community

READY TO NOMINATE?

Visit vscpa.com/Awards or email Student & Member Engagement Specialist at Lauren Simonetti at lsimonetti@vscpa.com by Friday, Dec. 7

The great GASB

Dancing red lights filled the air and we were off.

My stomach felt nauseous and my ears were ringing. I was surrounded by IVs, oxygen tanks and bandages. I had no idea where we were going and could not see the road. We arrived at the destination, a beautiful home in coastal Virginia. I stepped out of the ambulance, instantly feeling better. An elderly man ushered us inside the home. We loaded the fragile patient, her face twisted in pain, into the ambulance and I could see the decimals and dollars of equipment at work. The bandages were dollar bills and the oxygen tubes became rolls of quarters. This was my moment, the moment I finally saw the financial statements come to life.

The scene that unfolded will stay with me the rest of my life.

When I started working as an accountant with the City of Virginia Beach, I never imagined I would get to ride along with Fire and Rescue. That’s the thing

about being a governmental accountant — you never know where the day is going to take you. Bridging the knowledge gap between accounting and operations is the key to successful governmental accounting.

WHAT MAKES GOVERNMENTAL ACCOUNTING UNIQUE?

The goals of governmental accounting are very different than the public or private sectors. State and local governments use standards set by the Governmental Accounting Standards Board (GASB). The GASB is the law of the land in governmental accounting. As an independent private-sector organization, GASB issues governmental accounting standards.

Fund accounting is unique to governmental accounting. There are three major types of funds: governmental, proprietary and fiduciary, which are set up as individual self-balancing accounts. Another

If you’ve never thought about entering governmental accounting, you should! You never know where your days will lead.

Amanda L. Phelps, CPA

unique aspect is the annual production of the comprehensive annual financial report (CAFR). The CAFR will keep you busy for months on end, giving you the opportunity to work with the entire territory to produce the document. Not only will you work with external auditors, but most likely your work will end up online for all to see. Citizens eagerly await the publication each year, ready to provide their own audit. Get ready for a Freedom of Information Act (FOIA) request!

When you aren’t working on the CAFR, you can stay busy producing monthly interim financial reports. Additionally, governments don’t pay taxes, so you won’t have to worry about that type of tax accounting. Don’t think you’re finally getting away from the dread of taxes, though, because they are a main revenue source for many governments. Accounting is done on a budgetary basis and variances outside the budget will require analysis. The great GASB will be your guidance on accounting for all revenues, expenditures and whatever other transactions you encounter.

ACCOUNTING

Revenues for local governments are often derived from real estate taxes, personal property taxes, sales and meal and entertainment taxes. A huge part of governmental accounting may consist of grant accounting as well. Localities often receive funding from both federal and state governments for specified grants. They are awarded by external entities to carry out a public purpose. Accurately accounting for these grants is key, and requires working across many departments to properly account for all the grants a locality may have. You will also have to comply with many federal and state agencies, such as the Federal Emergency Management Administration, the Department of Motor Vehicles, the federal System for Award Management and more. It is safe to say that if you are working in government, you will be working heavily with accounting compliance. When it comes to grants, you must comply with the Uniform Guidance (2 CFR 200) and are subject to a single audit. A career in government may bring about other unique transactions such as municipal bond sales.

OPERATIONS

It’s important to not only know and understand GASB, but to understand the operations of the entity as well. Being on the ground floor on a ride-along allowed me to understand operations firsthand. It gave me confidence in communicating with departments, and when it came time to report numbers, I felt much more confident since I had actually visited the departments and understood their operations. Seeing the fixed assets with your own eyes will help you account for and report those items. Additionally, understanding operations will help you design, implement and maintain internal controls, which are essential to

help provide reasonable assurance in meeting objectives. When operations run smoothly, accounting processes run much easier.

BENEFITS

Government jobs offer many benefits. People often assume the salary is lower, but the important factor to look at is take-home pay. Health insurance coverage, retirement, vacation and sick leave are all crucial factors. Many times, government employees receive discounts at local recreational centers and other services that are provided or subsidized by the local government. Advancement opportunities are available as well, dependent on the size of the entity. Every city, state and federal government requires accountants; therefore, there are jobs across the nation.

A career in government provides a work-life balance that allows me to split my focus between my family and career equally. There are even many different niche jobs within governmental accounting — audit, reporting, investments. The work is very rewarding since you are always working for the good of the people. I like knowing the work I do makes a difference. Even during hurricanes or other states of emergency, you may end up helping at an emergency shelter. Being able to see some of the services a city provides first hand makes my work more rewarding. I know the work I do promotes public safety and provides services to the citizens.

WHAT ARE YOU WAITING FOR?

Governmental accountants are stewards of taxpayers’ dollars. Government resources must be used wisely and fall under many different types of audits — including that of the inquisitive citizens. As a government accountant, you must use your firsthand knowledge of operations to provide adequate accounting. How an accountant interprets and applies GASB affects fund balances. These applications are important because they affect the budget and the distribution of federal and state funds. A governmental accountant must use best practices to bring about the most reliable and relevant financial information. There are many benefits to this type of accounting and it’s definitely worth pursuing. There is never a dull moment and you will never know where the day will take you! n

Amanda L. Phelps, CPA, is an accountant for the City of Virginia Beach, where she focuses on annual and interim financial reporting. She is a member of the VSCPA’s Young Professionals Advisory Council.

amandaphelps3@gmail.com connect.vscpa.com/AmandaPhelps

professional development

Making gray lines clear: Navigating social media as a CPA

By David R. Peters, CPA

Social media has changed. Facebook and Twitter used to be places for us to post funny photos of our dogs, tell others about our travels or rant about the newest fitness trend. It was a refuge for us in many ways. Aside from the occasional embarrassing photo or pointed comment about something we posted, social media was mostly harmless chatter.

But things are different now. Companies have realized that social media can be used to build business and reach customers in new ways. We google people before we meet them. We look at LinkedIn to evaluate people’s professional credentials. We have even started looking at people’s Facebook pages as a secondary background check before hiring them. The lines that used to separate our work and personal lives have become thinner and thinner. We have realized that Google’s algorithms make no distinction between what we deem to be personal and professional — and neither do clients, vendors or anyone else who searches for us.

This ever-increasing intermingling between the personal and the professional presents some unique challenges for CPAs. Our reputation is everything. The public trusts us because we are unbiased professionals with unwavering ethics. The CPA credential is cherished because of the integrity of those hold it. In this way, engaging in social media of any type seems risky for CPAs. A misstep in our personal lives could bring unwanted scrutiny of our professional lives. What are we as an industry to do? Is social media

something we should run from? Is it so wrought with potential problems that we should just stay away?

As a profession, we have a tendency to be riskadverse. We like it when the lines are clearly drawn for us, because it makes it easier to stay inside them. Embracing social media can be difficult for us because the lines are hard to see. As pointed out in this year’s Virginia-specific Ethics course, the American Institute of CPAs Code of Professional Conduct only generally tells us to stay away from misleading solicitation, acts that may be seen as discreditable and anything that may tarnish the reputation of the CPA designation. While these sections are helpful in certain instances of dealing with social media, there are many situations that remain unaddressed. In this gray area, we are often left with only our own professional judgment to guide us on how to build our company website, whether to accept endorsements on LinkedIn and how to address client questions on Twitter. The Code wants us to maintain the integrity of the profession and the CPA credential. That much is clear. Beyond this though, the lines are not black and white — and this takes us out of our comfort zone.

While some CPAs may be tempted to run from social media in its entirety, for most of us, that simply isn’t a realistic option. There’s an upside to engaging in social media. It gives us a platform for sharing our knowledge, building relationships with existing clients and prospects and promoting why our practices are unique. It is a key to building business. And, if

professional development

everyone else is using social media, it may be impossible for us to move forward as a profession without utilizing it somehow. Hiding doesn’t really seem like a viable option, so we are left to embrace social media and rely on professional judgment.

So how do we do this? Even though the lines may appear hopelessly gray at times, some best practices seem clear. First, we should always be keenly aware of how we look to the public. Googling ourselves periodically and constantly asking what a client would think of something we post is a good place to start. Second, have a strong review process. Building a network of peers who will provide open and honest feedback that we will accept seems foundational to successfully maintaining the integrity of our online presence. Most importantly though, it is imperative to practice a healthy degree of skepticism when it comes to anything related to social media. Examining how certain items could be misconstrued, misunderstood or misapplied can help us see potential social pitfalls before they happen.

To be clear, these best practices won’t insulate us from every social media misstep we could ever take. After all, the lines are still gray,

and may become grayer still as time goes on. However, these concepts do give us a starting point for how to think about social media. It allows us to keep the spirit of the Code of Professional Conduct in mind, while also taking advantage of the opportunities that social media presents. n

David Peters, CPA, is the sole proprietor of Peters Tax Preparation & Consulting, as well as an outside representative for Carroll Financial Inc. He is an adjunct professor in accounting, insurance and ethics, and a doctoral student in financial planning. He co-authored the Virginia-specific Ethics course 2018 and is an instructor.

dpeters@carrollfinancial.com connect.vscpa.com/DavidPeters

The information discussed herein is general in nature and provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Nothing in this article constitutes an offer to sell or a solicitation of any offer to buy any type of securities. Registered representative offering securities through Cetera Advisor Networks LLC, Member SIPC/FINRA. Advisory services offered through Carroll Financial Associates, Inc., a Registered Investment Advisor. Carroll Financial and Cetera Advisor Networks LLC are not affiliated. Registered Branch Address: 4201 Congress St, Suite 210, Charlotte, NC 28209.

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The generosity of this scholarship has alleviated some of the financial pres sures of attending graduate school and has encouraged me to continue working hard for my aspirations of furthering my education and becoming a CPA. Thank you!

— Valentina Forero, University of Virginia, VSCPA Minority Scholarship

THE CASE FOR CONFORMITY

The new federal tax law has made tax conformity in the Commonwealth more important than ever.

Every year, the VSCPA lobbies the Virginia General Assembly to quickly pass legislation so that Virginia’s tax code conforms to the federal tax code. But since the Tax Cuts and Jobs Act of 2017 (TCJA) and the General Assembly’s decision to wait to address conformity in 2019, the issue has a new sense of urgency. That’s why the VSCPA kicked into high gear this fall, issuing a whitepaper, “Virginia Tax Conformity: 2018 and Beyond,” urging legislators to act quickly and decisively in 2019 on a variety of taxrelated issues to protect Virginia taxpayers.

The VSCPA Tax Advisory Committee, helmed by Seth Davis, CPA, and with a lot of work by Vivian Paige, CPA (see the complete list of Committee members on page 24), and Society staff used the VSCPA’s tax policy principles to guide them as they shaped their recommendations. Approved by the VSCPA Board of Directors in 2013, the guiding principles are listed in full on page 22. Were the recommendations focused on addressing conformity in a timely manner? Were they advocating simplicity and transparency? The Committee and staff wanted to ensure the whitepaper advocated for protecting taxpayers and tax preparers, as well as had the best interests of the Commonwealth in mind.

WHY CONFORMITY IS IMPORTANT

Along with 17 other states, Virginia uses static conformity each year to adopt federal definitions of income as defined in the U.S. Internal Revenue Code (IRC). (Conformity does not include alignment with federal tax rates, tax brackets, exemption amounts, etc. — the Commonwealth sets its own rules.) To conform Virginia’s tax code to the IRC, the General Assembly passes retroactive emergency legislation each year, usually with a few exceptions, such as bonus depreciation, certain net operation loss (NOL) carrybacks and the reduction in the medical expense deduction floor.

Right now, Virginia conforms to the IRC as of Feb. 9, 2018, with those few exceptions. But in passing emergency legislation last winter, the General Assembly declined to address TCJA changes beyond those affecting 2017 returns. Lack of guidance has hampered Virginia taxpayers’ and tax preparers’ ability to adequately plan for 2018.

VSCPA members have said that the exceptions to conformity each year do present challenges, especially the medical expense deduction floor. On the anonymous VSCPA Tax Conformity u

RECOMMENDATIONS

TO THE GENERAL ASSEMBLY

1. Pass Virginia tax conformity for 2018 tax returns as early as possible and align Virginia tax law to federal law as closely as possible.

2. Automatically apply abatement for any tax penalties incurred due to uncertainty regarding the adoption of federal changes by Virginia and require no action to be taken by taxpayers or their representatives.

3. Sequester any new revenue gained for calendar year 2018 by conforming to federal law until a decision on policy is made, which is similar to the action Virginia took after sweeping new federal tax law in 1986.

4. Delay the effective date to no earlier than Jan. 1, 2019, for any tax policy changes resulting from conformity to the TCJA, including adjustments to the individual and business provisions to provide relief for taxpayers adversely impacted by the federal changes.

5. Delay the effective date to no earlier than Jan. 1, 2019, for comprehensive tax reform, in order to permit an accounting for additional revenues and to permit orderly and efficient implementation of the impact of the TCJA on Virginia and result in full conformity to federal tax law.

Jill Edmonds

On Sept. 17, the VSCPA sent the Virginia General Assembly and Gov. Ralph Northam the following recommendations regarding the impact of the Tax Cuts and Jobs Act of 2017 on Virginia taxpayers.

advocacy

TAX POLICY GUIDING PRINCIPLES

The VSCPA has developed guiding principles in tax policy to use as a framework when developing positions on tax-related legislative and regulatory matters. These guidelines recommend that Virginia tax laws and regulations meet the following guiding principles:

Conformity: Whenever possible, Virginia’s tax laws should conform to federal tax laws. There should be as little delay as possible between the passage of federal tax law changes and adoption by the Commonwealth.

Simplicity: Earliest possible conformity helps to minimize complexity in Virginia return preparation, allowing taxpayers to accurately comply with the rules in a costefficient manner.

Transparency: Changes to Virginia’s tax laws should be undertaken in an inclusive and transparent manner, allowing ample time for all stakeholders to become familiar with proposed changes and provide feedback to policymakers.

Equity: Any changes to the law should be equitable — based on the taxpayer’s ability to pay, with consideration of both horizontal and vertical equity. Horizontal equity is achieved when two similarly situated taxpayers pay the same amount. Vertical equity is achieved when taxpayers with greater ability to pay taxes pay more than taxpayers with less ability to pay.

Certainty: Tax rules should clearly specify when and how a tax must be paid, and how the amount due is determined, which aids in tax planning and estimated tax payments.

Competitiveness: Virginia’s economy cannot be viewed in a vacuum. Our tax structure should be designed to enhance the Commonwealth’s competitive position in the region, the country and the world. Maintaining Virginia’s AAA bond rating and rank among the best states to do business and raise children is critical to our attractiveness for businesses, individuals and investors.

Survey, one member expressed concern with dealing with the NOL carryback nonconformity.

“I've always hoped that Virginia would issue a NOL form to help preparers track the Virginia modifications to federal NOLs inside a return, not on Excel,” wrote the member. “I know that the Virginia tax department likely does not have the funding to react to TCJA, as the Gen Assembly likely does not realize the true breadth of this law. So our profession also needs to advocate for greater funding for the Virginia Department of Taxation.”

THE VSCPA’S RECOMMENDATIONS

The Virginia General Assembly must pass tax conformity for 2018 tax returns as early as possible and align Virginia tax law to federal law as closely as possible. We know that will be a challenge — the 2019 session is short, so lawmakers must make this a priority. It helps our case that Virginia Secretary of Finance Aubrey Layne, CPA — a VSCPA member — agrees with the urgency. Read Sec. Layne’s thoughts on conformity on page 25. See the full list of recommendations on page 21.

Early conformity

Quickly addressing conformity will minimize tax return complexity and greatly help with tax administration and compliance. If there’s no conformity? Individuals would have to make up to 20 complex modifications on their returns, and businesses up to 30. Software developers also need quick passage so they can modify the platforms upon which many tax preparers depend, and TAX needs to update their filing systems. In short, a lot of people need conformity to do their jobs.

Not conforming to the medical deduction floor for 2017 created headaches preparing those returns; the VSCPA advocates for allowing the reduced floor on Virginia returns in 2018.

Abatement

If Virginia taxpayers incur penalties related to underpayment of their tax liabilities as a consequence of a lack of conformity, those penalties should be automatically abated — without taxpayers or their preparers having to take action, such as submit a request.

Hold Funds Raised

If Virginia conforms, additional tax revenue could be raised (although the amount is uncertain). This also happened when the Tax Reform Act of 1986 was passed, and the

Commonwealth established a special fund to separate monies until the actual amount could be determined and a plan developed the additional revenue. The VSCPA advocates for the same action now.

Effective date delays

We understand Virginia lawmakers’ desire to tackle larger taxrelated issues, such as reform and policy changes. But it’s critical that any comprehensive changes do not go into effect any sooner than Jan. 1, 2019. This deadline will allow taxpayers the certainty they need to file and fulfill their 2018 tax obligations.

WEIGHING IN ON TAX POLICY

In addition to making conformity recommendations, the VSCPA whitepaper tackled larger tax-related issues facing the Commonwealth, offering feedback on a number of options lawmakers could take. While not specifically advocating for u

CONFORMITY RESOURCES

ARE ALL ONLINE

Visit vscpa.com/TaxConformity to find the following: “Virginia Tax Conformity: 2018 and Beyond” whitepaper

VSCPA Tax Conformity Survey: Give us your thoughts and experiences!

Press release on the VSCPA’s recommendations to the Virginia General Assembly News feed updating you daily on any conformity news

advocacy

VSCPA TAX ADVISORY COMMITTEE

The following VSCPA members volunteered their time and expertise to crafting the Society’s response to conformity and developing the whitepaper:

Chair: Seth Davis, CPA, Dixon Hughes Goodman, Tysons

Vice Chair: Vivian Paige, CPA, Old Dominion University, Norfolk

Members:

Christine Abbott, CPA, Hunt, Calderone & Abbott, Newport News

Sarah Adams, CPA, Adams & Co., Lebanon

Bob Baldassari, CPA, Matthews, Carter & Boyce, Fairfax

Rick Beason, CPA, sole proprietor, Roanoke

Desiree Bryan, CPA, Meadows Urquhart Acree & Cook, Henrico

Dawn Jessee, CPA, sole proprietor, Henrico

Stephen Kimberlin, CPA, Dixon Hughes Goodman, Richmond

Neil Kossler, CPA, Kossler & Co., Ashburn

David Machlan, CPA, RSM US, McLean

Nick Preusch, CPA, PBMares, Fredericksburg

Lorilei Roberts, CPA, PBMares, Fairfax

Catherine Stemple, CPA, Kositzka, Wicks & Co., Richmond

Clint Thomas, CPA, Thomas Tax & Accounting, Springfield

Dan Yue, CPA, CST Group, CPAs, Reston

Mudi Zhang, CPA, Wall, Einhorn & Chernitzer, Norfolk

one option over another, the VSCPA understands that lawmakers have an urgent need to address tax policy under the shadow of the TCJA. Those ideas include:

• Increasing the standard deduction.

• Allowing taxpayers to itemize on their Virginia returns, even if they take the standard deduction on their federal returns.

• Increasing the personal exemption amount.

• Reducing tax bracket amounts.

• Increasing filing thresholds.

• Increasing the benefits of the Earned Income Tax Credit.

Whether or not the Virginia General Assembly implements one or more of these options, the VSCPA is clear: Virginia should consider adjustments for individuals and businesses to address the increased tax liabilities created by the TCJA. This won’t be easy, given the TCJA’s many temporary individual provisions.

A FUTURE WITH FULL CONFORMITY

Constantly passing emergency legislation year after year to address conformity continues to burden Virginia’s taxpayers and tax preparers. The VSCPA believes it’s time to fully conform to federal tax law — despite the temptation to deconform with certain provisions. Yes, conforming on things like bonus depreciation will result in reduced revenue to Virginia. But other provisions will increase revenue. We should set our sights on simplicity. If we want comprehensive tax reform, let’s eliminate complexity from the start.

The VSCPA is always working to represent the best interests of its members (see President & CEO Stephanie Peters’s column on page 4 for more on that). If you have a question or concern, reach out anytime to Vice President of Advocacy Emily Walker at ewalker@vscpa.com. n

Jill Edmonds has served in various capacities at the VSCPA, including senior editor and communications director. She has been managing editor of Disclosures since 2003.

jedmonds@vscpa.com connect.vscpa.com/JillEdmonds

Virginia should consider adjustments for individuals and businesses to address increased tax liabilities created by the TCJA.

’WE MUST START FROM A PLACE OF CONFORMITY’

Virginia Secretary of Finance and VSCPA member Aubrey Layne, CPA, chatted with us on tax conformity, tax reform and other issues facing the Commonwealth.

Aubrey Layne, CPA, has served in various state government positions since 2006. Now the Virginia Secretary of Finance under Gov. Ralph Northam, he was previously Virginia Secretary of Transportation under Gov. Terry McAuliffe. He began his accounting career at KPMG before transitioning into private industry. Here’s what he had to say about tax conformity, tax reform and how the two do (and don’t) intersect.

What is the difference between tax conformity and tax reform?

AL: Great question — this can be really confusing. We actually see three main issues: Tax conformity, tax policy changes and tax reform.

Tax conformity is adoption of the federal definitions of income. Conformity for individuals is the calculation u

of federal adjusted gross income, and for businesses, federal taxable income. Currently, we conform to federal tax law as it existed prior to most of the Tax Cuts and Jobs Act (TCJA) changes. So the date of tax conformity must be advanced during the 2019 General Assembly session so that taxpayers can file their returns for the 2018 tax year.

After conformity, the General Assembly could adopt tax policy changes to amend things like rates or credits and deductions within the Virginia tax code. These changes could be adopted in the 2019 General Assembly session and effective in the 2019 tax year and beyond.

Now we get to tax reform — and that can mean a lot of different things to different people. For some, tax reform equals tax cuts. I believe that true tax reform requires a thoughtful, comprehensive review and a thorough understanding not just of the effects on taxpayers but also the implications for revenue at both the state and local levels. I anticipate that we will need to hold any across-the-board tax reform discussion until after the 2019 session.

It will be difficult to even discuss tax reform in Virginia if we don’t start from a place of conformity. We look forward to working with the General Assembly to secure conformity first and then to discuss potential policy changes.

Why is it important to pass tax conformity in a timely manner?

AL: The General Assembly must pass tax conformity legislation early in the 2019 session so that the 2018 filing season can get underway as planned. Conformity provides a critical level of certainty for taxpayers and their preparers

from the beginning of filing season, and prevents them having to make complex modifications to their Virginia returns or having to file amended returns.

Without conformity legislation, tax professionals and their clients have to understand two different sets of federal laws — existing federal law, which would apply to their federal returns, and federal law as it existed prior to most of the TCJA changes, which would apply to their state returns. This also puts an additional strain on the Virginia Department of Taxation for administration and compliance.

What opportunities are created by the potential additional revenue gained in 2019 by conforming to federal law?

AL: If we begin the year from a position of conformity to current federal law, the additional revenue generated in Virginia gives us an opportunity to carefully consider tax policy changes and their implications for taxpayers and the Commonwealth.

For example, Gov. Northam has proposed refunding the Earned Income Tax Credit, providing tax relief for middle- and working-class Virginians. He is also willing to consider other tax policy changes that help our citizens.

A number of stakeholders have recommended policy changes for consideration, ranging from increasing the standard deduction, personal exemption and filing thresholds to adjusting tax bracket amounts or allowing Virginians to itemize on their state returns even if they take the standard deduction on their federal returns.

Aside from these potential tax policy changes, the additional revenue gained from conformity could enable other

investments in Virginia, whether that’s expanding broadband access, focusing on workforce development or increasing our cash reserves.

What lessons can be learned from the Commonwealth’s response to the last round of major federal tax law changes in 1986?

AL: First of all, it’s important to note that the 1986 changes were a very different situation. Focused primarily on rates and brackets, those changes underwent nearly three years of federal scrutiny, including multiple public hearings, prior to their enactment. And in Virginia, we studied the changes for nearly two years before we enacted our state legislation in response.

In contrast, our current situation is incredibly complex and includes more interactions between the various provisions. Enacted less than two months after their introduction, the TCJA changes happened quickly. We must be careful that we understand the IRS guidelines and ensure we don’t create unintended consequences with our response.

For example, we’re awaiting final guidance from the IRS about items like the treatment of charitable contributions for which a taxpayer receives a state tax credit and the taxation of fringe benefits provided by churches and other nonprofits. We want to be cautious, be informed, and make careful incremental changes. And any response should be tied to the timing of the federal law changes.

What should Virginia’s priorities be in implementing or not implementing elements of the federal tax reform bill?

AL: Again, our top priority here is conformity — it’s critical that we align on those definitions. Some tax practitioners

“It will be difficult to even discuss tax reform in Virginia if we don’t start from a place of conformity.”

have reported that last year’s deconformity from the federal medical expense deduction threshold cost their clients more in tax preparation fees than the actual benefits to those who qualified. And that’s just one example — without conformity, taxpayers would have to make 50 individual and corporate Virginia adjustments.

No matter what, the federal law is the federal law, and we know that some elements of Virginia tax law will always be different. We also know that the interactions between the provisions make it important to look at potential changes in aggregate instead of in isolation.

What do you think would be an effective process for tackling comprehensive state and local tax reform?

AL: The first step is to understand the effects of the TCJA on current Virginia tax laws, including IRS guidance that we don’t yet have. Any process should include a thoughtful, comprehensive review and consider how we can best fund our government and have a tax structure that’s fair and also reflects the realities of our current economy.

The process should take into consideration the implications both for taxpayers and

for the state. Many of the recent articles on this subject propose ideas that would decimate Virginia’s revenues. For example, one recent article suggested repealing several local taxes, including the local Business Professional and Occupational License (BPOL) and Machinery and Tools (M&T) Taxes, in addition to eliminating Virginia’s corporate income tax and making several other tax policy changes to reduce taxes. If we implemented these recommendations, it would cost state and local revenues $5 billion.

Bottom line: Even if you want to shrink the size of government, we still need a state that functions effectively.

How is Virginia affected by the U.S. Supreme Court decision in South Dakota v. Wayfair, Inc.?

AL: Well, the General Assembly will have to pass legislation for us to benefit from the Wayfair decision, which says that states can decide to impose sales tax collection requirements on out-of-state businesses even if the businesses don’t have a physical presence in that state. The case also holds that our legislation can’t create an undue burden for small retailers.

Several states have adopted sales thresholds (dollars and number of transactions) for sales tax collection from out-of-state businesses. Any Virginiaspecific legislation should consider a similar approach. A portion of the revenues collected from this change would go to the General Fund.

Virginia legislation related to Wayfair should also take into consideration the impact of any potential federal remote collection legislation, which could affect the distribution of Virginia sales tax revenues and the rate of the wholesale tax on gasoline as a result of Enactment Clause 15 of 2013, HB 2313. n

taxation

KEEP THE CHARITABLE GIFTS COMING

The higher standard deduction might make taxpayers less likely to donate to nonprofits. Fortunately, there are ways your clients can still receive tax benefits and continue giving to charity.

By Brian E. Deibler, CPA, CGMA

We are on the eve of the first real-world application of the Tax Cuts and Jobs Act of 2017 (TCJA), signed into law by President Donald Trump on Dec. 22, 2017. Most of the changes introduced by the bill went into effect on Jan. 1, 2018, and will make their way on to our clients’ income tax returns for 2018, being prepared by us during our busy season in early 2019. Most of the media attention has been focused on higher standard deductions, the new 199A

Qualified Business Income Deduction and changes to tax credits (namely, the increased Child Tax Credit), but I would like to focus on the charitable giving aspect for our clients and how they can maximize tax savings under this new law.

It is true that the higher standard deduction will benefit most taxpayers, especially those who did not itemize their deductions in the past. We should be relaying to our clients that, under this new tax law, personal exemptions are no longer a benefit. The new higher standard deduction does not benefit a married couple with at least three children who did not itemize their deductions in the past.

However, taxpayers who did itemize their deductions in the past may find that the tax benefit from charitable giving is no longer a “benefit” on their income tax returns. There are some items to consider for your clients to ensure that their charitable nature is back in the “positive” category for tax benefits — and for us to ensure that Virginia nonprofit organizations are not starving for the support they need to continue providing much-needed services to our residents.

QUALIFIED CHARITABLE DISTRIBUTION

The Qualified Charitable Distribution (QCD) has been around in our tax law for some time. Under the TCJA, QCD could turn in to a major benefit for your clients. If you have a client who is 70 ½ and must take their Required Minimum Distribution (RMD) from any applicable IRA, 401(k), SEP account, etc., they should consider the QCD. If you advise your client to send their charitable donations to the organization of their choice directly from their retirement account, the amount of the donation will be excluded from their adjusted gross income. By doing this, you take out the possibility of not receiving the benefit from the donation by way of their itemized deductions exceeding the higher standard deduction amount. In addition, lowering their adjusted gross income as opposed to increasing their itemized deductions could potentially have positive outcomes on other areas of their income tax return and free up tax savings that are otherwise not applicable.

DOUBLING EVERY TWO YEARS

For the clients who have a “plan” for their charitable giving or who like to donate a certain percentage of their income to charities, you may advise them to make those contributions every two years as opposed to giving each calendar year. This may reach the ability to itemize their deductions every other year as the aggregate of the donations every two years will exceed the higher standard deduction amount, while the year “in between,” they will take the standard deduction. The same dollars will be donated and the client is u

Know this...

• Taxpayers who itemized deductions in the past may find that the tax benefit from charitable giving is no longer a “benefit” on their income tax returns. But there are ways your clients can still see benefits.

• Qualified charitable distributions, doubling a giving amount every two years and using donor-advised funds are just a few ways clients may see tax benefits from charitable donations.

• Using Virginia tax credits could be a way for clients to see some tax benefit from giving to certain state organizations.

taxation

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still fulfilling their charitable giving “plan,” while receiving tax benefits every other year.

DONOR-ADVISED FUND

As with QCDs, the idea and benefit behind a donor-advised fund has been around for a while, but the new tax law makes this more sensible. A donor-advised fund is a philanthropic vehicle that is established at a public charity. Your client could make the contribution prior to year-end and the tax benefit is received in the current year. Then after the year has ended, the client can then recommend grants from the fund over time to their favorite charities. The best way to view this is a charitable savings account. The client contributes to the fund as frequently as they like and then recommends grants when they are ready to send to various charities. In addition, the money in the donor-advised fund can be invested and grow tax free, so clients can have extra dollars for their beloved charities.

APPRECIATED STOCKS AND SECURITIES

The stock market has done quite well and has experienced record levels over the past several years, leaving many of your clients sitting on potentially large capital gains and tax bills. Advising your clients to donate those appreciated stock and securities directly to charities to fulfill their charitable purpose is a fantastic way to get out of paying capital gains tax on any liquidation of those assets and allows the charity to sell and liquidate without tax consequences at all. The best part about this is the tax deduction to your client is the fair market value of the stock on the date of contribution, not their original basis or gain being “transferred.” Also, you could consider advising clients to contribute these appreciated stocks and securities to a donor-advised fund and take the deduction that way as well, giving them flexibility to

liquidate and give to various charities in the future.

VIRGINIA TAX CREDITS

As the higher standard deduction is getting all the media attention and we start reviewing with our clients their ability to either itemize their deductions or take the standard deduction, another issue limits our clients’ abilities to itemize. The TCJA has a “cap” on the ability to deduct state and local taxes, set to a maximum of $10,000. The total of any state income taxes your clients pay cannot exceed a $10,000 deduction, either from withholdings, quarterly estimated payments or balances due on prior year returns; real estate taxes paid on personal residences, investment property or land; or personal property taxes paid on personal vehicles. This limitation is proving to be very damaging to most of our clients.

How can your clients still fulfill their tax liability to the Commonwealth of Virginia while not having to write checks directly to them and be capped at the $10,000 level? Purchasing tax credits is a great option. There are various programs to fulfill this strategy, but the most popular and probably easiest credits for your clients to purchase are the Neighborhood Assistance Program (NAP) credits. This program allows you to take a minimum contribution of $500, up to $125,000 per taxpayer per tax year, and then receive a maximum tax credit of 65 percent of the value of the donation as a credit on your Virginia income tax return.

This tax credit is not granted to all charities in Virginia; each organization must complete an application and apply to Virginia to be approved and granted the credits before they can then sell to taxpayers. You must be cautious with this program, however. In recent years, the number of credits that Virginia has authorized to be issued has diminished. Some organizations, in an effort

to keep donation dollars coming in even though they were granted fewer tax credits, have offered a credit amount lower than 65 percent of the amount given. It is up to each charity as to how they administer and grant credits to donors.

Prior to the tax reform, this strategy seemed, at times, to be too good to be true. For example, a taxpayer that donated $10,000 to a NAP-approved organization would receive a tax credit in Virginia of 65 percent, or $6,500. In addition to receiving this tax credit, the taxpayer would also have the ability to deduct the same $10,000 on their state and federal returns to double down on the benefit. A taxpayer in the top tax brackets would potentially receive more in tax benefits than the original $10,000 given.

Spoiler alert: Proposed regulations released by the U.S. Department of the Treasury and the U.S. Internal Revenue Service in August 2018 reveal this scenario really seems to be “too good to be true.” Under the proposed regulations, a taxpayer who makes payments or transfers property to an entity eligible to receive tax deductible contributions must reduce their charitable contribution deduction by the amount of any state or local tax credit the taxpayer receives or expects to receive in return.

For example, the same $10,000 can be given, and the taxpayer will receive the $6,500 Virginia tax credit. However, instead of being able to deduct the full $10,000 on state and federal returns, the taxpayer would only be able to deduct the remaining $3,500 of the $10,000 donated. However, don’t let the proposed regulations stray you from advising your clients on this still very major tax benefit. Receiving 65 percent tax credit and a deduction for the remaining 35 percent of the donation is still very much a greater benefit than only being able to deduct the

$10,000 without a state tax credit. And, let’s also remember the goal to fulfill your clients’ charitable giving plan, as well as their Virginia income tax liability, by other means than simply writing a check and being limited to the $10,000 federal deduction.

The proposed regulations do give consideration for a “nominal” amount — set at 15 percent — received in state tax credits to not limit the charity deduction on federal and state income tax returns. So, if you give $10,000 to a qualified charity and you receive just $1,500 in return of tax credits (or lower), the regulations still allow you to deduct the full $10,000 on your income tax returns.

CHARITABLE BEQUESTS

With the new tax law comes new planning opportunities for your clients’ estate plans. By including charitable gifts in their plans, they are expressing their deepest values to family and friends. Some ways to achieve this are: leaving a specific dollar amount or item of property to charity, designating a certain percentage of the estate go to charity or naming the charity as a beneficiary of either the life insurance policy, investment account, bank account or retirement account. Advise your clients to visit with their estate attorney to update any plans currently in place and to include you in the process for planning reasons.

LIMITATIONS

Under the new tax law, there have been some changes to the limitations on your client’s ability to deduct charitable contributions. Previously, charitable contributions were limited to 50 percent of your clients’ adjusted gross income, but that has increased to 60 percent. Appreciated assets, including long-term appreciated stocks and securities, are

generally deductible at fair market value, up to 30 percent of adjusted gross income. In addition, the new law removes the “Pease” limitation — the overall reduction on itemized deductions for high-income taxpayers. There was also a reduction of a taxpayer’s itemized deductions by 3 percent of adjusted gross income over a certain threshold, which phases out at 80 percent of the value of itemized deductions.

The TCJA brings the largest reform of our tax code in more than 30 years, and it is our duty to ensure that Virginia taxpayers take every opportunity available to receive tax benefits for their charitable contributions — at the same time ensuring that Commonwealth charities continue to thrive and receive support. I view this as the CPA community’s responsibility to the general public. Let’s get to it! n

Brian E. Deibler, CPA, CGMA, is vice president and tax partner at Malvin, Riggins & Company, PC, in Newport News. He currently sits on the VSCPA Educational Foundation Board of Directors, was named to the VSCPA’s “Top 5 Under 35” list in 2013 and is a past president of the VSCPA Tidewater Chapter.

bdeibler@malvinriggins.com connect.vscpa.com/BrianDeibler

financials

Statements of Financial Position & Statements of Activities

The following Statements of Financial Position and Statements of Activities reflect the VSCPA’s and VSCPA PAC’s financials for the 2017–2018 fiscal year. The full audited financial statements are available online in the “About the VSCPA” section of vscpa.com. More information on the VSCPA’s 2017–2018 programs and initiatives is available in the “State of the VSCPA” report, also available at vscpa.com.

APRIL 30, 2018 2017

ASSETS

Current Assets

Cash and cash equivalents $ 1,798,813 $ 1,695,433

Trade accounts receivable 179,724 80,024

Investments 997,357 850,109

Prepaid expenses 232,208 276,980

Total current assets 3,208,102 2,902,546

Investments 1,039,324 946,653 Property and Equipment, Net 1,334,373 1, 246,977 $ 5,581,799 $ 5,096,176

LIABILITIES AND NET ASSETS

Current Liabilities

Accounts payable $ 21,605 $ 83,979

Accrued expenses 302,616 260,424

Deferred revenue 849,645 787,035

Accrued retirement 171,648 151,067

Total current liabilities 1,345,514 1,282,505

Net Assets

Unrestricted

Invested in property and equipment 1, 334,373 1, 246,977

Board designated for facility and technology 826,056 777,344

Board designated for operating expenses 1,100,184 1,043,514

Undesignated 900,777 660,823 4,161,390 3,728,658

Temporarily restricted (VSCPA PAC) 74,895 85,013

Total net assets 4,236,285 3,813,671 $ 5,581,799 $ 5,096,176

YEARS ENDED APRIL 30, 2018

Change in Unrestricted Net Assets

Revenue:

Program Revenue:

Continuing education

Seminars $ 1, 288,092 $ 1,061,762

Conferences 527,270 504,719

Ethics 1,071,948 1,044,094

Online 334,765 242,581

Other CPE 20,125 19,934

Total continuing education 3,242,200 2,873,080

Peer review 188,427 199,408

Leadership 1,557 1,000

Membership 2,396,458 2,310,547

Communications 62,124 43,079

Students and young professionals 74,441 77,803

Net assets released from restriction, VSCPA PAC 82,169 83,069

Total program revenue 6,047,376 5,587,986

Other:

Affinity income 183,293 169,878

Investment income 35,822 24,043

Unrealized loss on investments (10,081) (5,972)

Rental income 32,557 37,618

Gain/(loss) on disposal of property and equipment 625 (2,387)

Miscellaneous 3,820 118

Total support and unrestricted revenues 6,293,412 5,811,284

Expenses:

Program Services:

Continuing education 2,425,536 2,402,454

Leadership 550,163 482,839

Peer review 258,994 228,224

Membership 709,791 677,514

Communications 228,441 256,162

Students and young professionals 359,727 391,412

Public relations 156,600 171,082

Legislative 177,485 187,384

VSCPA PAC 82,169 83,069

Supporting Services:

Administrative and general 911,774 690,613

Total expenses 5,860,680 5,570,753

Change in unrestricted net assets 432,732 240,531

Change in Temporarily Restricted Net Assets

Contributions to the VSCPA PAC 72,051 86,219

Net assets released from restriction, VSCPA PAC (82,169) (83,069)

Change in temporarily restricted net assets (10,118) 3,150

Change in net assets 422,614 243,681

Net Assets — Beginning of Year 3,813,671 3,569,990

Net Assets — End of Year $ 4,236,285 $ 3,813,671

Congratulations to the following members!

in the Harrisonburg office; and Tristan Rosenfels, CPA, to in-charge associate in the Bristol office.

Burdette, Smith & Bish in Fairfax promoted Mike Crichton, CPA, to manager, Joe Storm, CPA, to supervisor and Alex Salomonsky, CPA, to senior accountant.

PBMares announced the following promotions: Marilyn Kitchens, CPA, to manager in the Fredericksburg office; Stephen Smark, CPA, to manager and Brian Day, CPA, to supervisor in the Newport News office; Tyler Farnsworth, CPA, Jonathan Mason, CPA, and Andrea Nichols, CPA, to supervisor in the Harrisonburg office; Cody Camblin, CPA, to supervisor in the Richmond office; and Kevin Whitley to senior in the Fairfax office.

CPA Practice Advisor named three VSCPA members to its 40 Under 40 list: Melisa Galasso, CPA, founder of Galasso Learning Solutions in Charlotte, N.C.; Richard Groover, CPA, shareholder at Wall, Einhorn & Chernitzer in Norfolk and chair of the VSCPA Board of Directors; and Nick Preusch, CPA, tax manager at PBMares in Fredericksburg.

WE MOURN THE LOSS OF...

Top: Dave Cotton, CPA, Carolyn Dull, CPA.

Bottom: Melisa Galasso, CPA, Richard Groover, CPA.

NEW HIRES

Sarah Baldwin has joined Mitchell Wiggins in Richmond as a staff accountant.

Bryan Campbell, CPA, has joined Grow in Norfolk as chief financial officer.

PROMOTIONS

Brown, Edwards & Co. has announced the following promotions: James Wienke, CPA, to director, Marie Wimmer, CPA, to senior manager, Justin Mummey, CPA, to manager, Philip Carcione, CPA, and Brad Lester, CPA, to senior associate and Ben Ziccardy, CPA, to in-charge associate in the Roanoke office; Kimberly Cook, CPA, and Jessica White, CPA, to manager in the Lynchburg office; Tina Ford to senior associate and Rebecca Brintzenhofe, CPA, to in-charge associate

David Lamb, CPA, has been promoted to manager at DuvallWheeler, CPAs, in Manassas.

Fran Randall, CPA, has been promoted to tax partner at RyanSharkey in Reston.

APPOINTMENTS & AWARDS

Two VSCPA members were named to Accounting Today’s Top 100 Most Influential People in Accounting list: Wayne Berson, CPA, CEO of BDO USA in McLean, and Lynne Doughtie, CPA, of Powhatan, CEO of KPMG in New York.

David Cotton, CPA, chairman of Cotton & Co. in Alexandria, received the Certified Fraud Examiner of the Year award at the Association of Certified Fraud Examiners’ Global Fraud Conference.

Virginia Gov. Ralph Northam has reappointed Carolyn Dull, CPA, mayor of the city of Staunton, to the Virginia Criminal Justice Services Board.

Charles Anderson, CPA, a VSCPA Life member from Richmond. A U.S. Navy veteran who served in World War II, he was active in St. Mark’s Episcopal Church, where he served as trustee and treasurer. He served on the VSCPA’s Accounting and Auditing Procedures and MAP Survey Analysis committees.

Tom Carson, CPA, a VSCPA Life member from Ashland. He ran his own firm in Richmond and served as treasurer of the Richmond Philharmonic for more than 40 years.

David Will, CPA, of Glen Allen. A graduate of Bridgewater College, he spent his entire career at Mitchell, Wiggins & Co., where he served as partner-in-charge of the Richmond office. He served on the board of directors for United Methodist Family Services, where he chaired the finance and audit committees, and served in leadership roles at Crestwood Presbyterian Church and Mount Vernon Baptist Church.

Firm news

Leesburg-based Updegrove, Combs & McDaniel, PLC, has changed its name to Updegrove, McDaniel, McMullen & Chiccehitto, PLC

MERGERS & ACQUISITIONS

Richmond-based Cherry Bekaert has acquired CTS Capital Advisors, a Bethesda, Md.,-based firm specializing in valuation and business advisory services.

Sareen & Associates in Manassas has added Springfield-based firm Howser & Associates.

PHILANTHROPY

Ten employees of Councilor, Buchanan & Mitchell in Bethesda, Md., ran in the Marine Corps 10K in Washington on Oct. 28. The race supports the Children’s Inn at NIH, a nonprofit residence for families with children participating in leading-edge research studies at the National Institutes of Health.

Email disclosures@vscpa.com if you have exciting news to share. The VSCPA prints news of members’ awards, appointments and promotions as well as new hire and job change announcements. Firm news, such as mergers and acquisitions and community service activities, is also welcome. Feel free to send headshots, but please make sure they are high-quality, 300 dpi JPG files. Unfortunately, due to space constraints, we cannot print degrees or designations awarded to members.

THE VSCPA’S NEWEST VIRGINIA CPA LICENSEES

Kyle Begley, Arlington Juhsien Chang, Richmond Carl Chenoweth, Elkton Katrina Crews, Richmond Christopher Danelon, Herndon Joseph Daugherty, Arlington Brian Day, Newport News Molly Freiert, Richmond Charles Gundlach, Richmond Marshall Irby, Richmond William Neice, Virginia Beach Emily O’Connell, Arlington William Packett, Fredericksburg Mariia Reznichenko, Reston Shawn Salina, Stephenson Samantha Schmitz, Arlington McKenna Shirey, Tysons Ann Smith, Leesburg Aaron Templeman, Richmond

List from July, August and September. Compiled Oct. 4, 2018.

STAFF NEWS

Help college students get CPA-ready!

Nov. 13: Senior Director, Learning Linda Newsom-McCurdy, CAE, 15 years

Dec. 1: President & CEO Stephanie Peters, CAE, 21 years

Dec. 4: Membership Marketing Specialist Evan Taylor, 1 year

Dec. 13: Communications Manager Chip Knighton, 8 years

Want to meet college accounting students looking to join the CPA profession? The VSCPA has created brand-new workshops to help inform students about career opportunities and the CPA Exam, while equipping them with career readiness skills. These “CPA Ready Workshops” will be launching in January 2019 and will be held throughout Virginia at Virginia Commonwealth University, Virginia Tech, George Mason University and Old Dominion University. By sponsoring one of these events, you’ll have access to accounting students from across the state. If you’re looking for interns or entry-level staff, or want to promote the resources you have available to students, please contact Academic Engagement Director Molly Wash at mwash@vscpa.com or (804) 612-9417.

Want CPE credit just for reading Disclosures magazine? Take our easy CPE test! Visit vscpa.com/CPE. Choose “On Demand” from the side filters to find the exam and others from previous Disclosures issues.

Thanks to all the VSCPA members who have already signed up to volunteer! Visit the Volunteer Manager on Connect to see the full list of current opportunities at vscpa.com/ Volunteer. Current opportunities are:

• Engage with students in the classroom

• Accounting & Auditing Advisory Committee

• Peer Review Committee

• Professional Ethics Committee

• Tax Advisory Committee

ANNIVERSARIES (Pictured clockwise above.)

ACCOUNTING PRACTICE SALES IS THE largest marketer of CPA firms in the US. The reason? Proven success! Contact us for a confidential, no-obligation discussion or to receive a free valuation. 888-847-1040 Chase@APS.net

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Buyers: see more listings than anyone at www.APS.net.

WHAT IS YOUR CPA FIRM WORTH? Please download our free Practice Value Report by visiting http://poegroupadvisors. com/value. Find out why Poe Group Advisors is the premier accounting practice brokerage firm by visiting us at http://www. poegroupadvisors.com.

MERGER OPPORTUNITY — Well-established 2 partner Northern Virginia CPA firm is looking for a sole practitioner, with clients, interested in merging with and managing the firm in the near future as retirement approaches. A similar sized CPA firm would also be considered. The ideal practitioner or firm would have the ability to assist with our current workload. We specialize in individual income taxation, but also have small business tax, compilation and payroll clients and prepare a significant number of trust returns. We have extra office space available. Reply in confidence to Box #105 at classifieds@vscpa.com. Please put “Blind Box 105” in the email subject line.

REACH OUT TO READERS

Horan,

Classified ads are a great way to reach VSCPA members — 94 percent rate the information in Disclosures as excellent or good. What are you waiting for? Contact us at classifieds@vscpa.com or visit vscpa.com/Classifieds for rate information. Members receive a discount.

Two minutes with Neena Shukla, CPA

Neena Shukla, CPA, CFE, CGMA, FCPA, is an assurance and advisory partner with PBMares in Fairfax. She obtained her BA (Hons) in Accounting from the University of Wales in the United Kingdom. She leads the Firm’s Government Contracting Niche team and serves on the VSCPA Educational Foundation Board of Directors.

I AM PASSIONATE ABOUT… Mentoring and coaching people to help them succeed in our profession. People often think that working in public accounting means sacrificing other outside interests and time with family, but that is not true. You can have a successful career and an enriched life if you work smart and focus on time management.

PEOPLE DON’T KNOW THIS, BUT... I was on a TV show when I was younger in the United Kingdom on BBC.

MY ADVICE TO FELLOW CPAs IS... Don’t be afraid of getting out of your comfort zone and taking on tasks that are challenging and maybe even downright scary. Too many times, people focus on the negatives and the fear of failure, but challenges are what make life interesting. This is what will make you grow, both professionally and personally.

I NEVER LEAVE HOME WITHOUT… My phone and my pearls. In today’s society, being connected is important. Constant communication with clients, staff, family and friends is vital and smartphones allow flexibility to stay connected on the go. As far as pearls go, they are my go-to for a simple classic look to get me ready to face the day. You meet a lot of different people in our business, and to quote Jackie Kennedy, “Pearls are always appropriate.”

I WISH CPAs KNEW... Change can be a good thing. The unique challenges that today’s CPAs are facing such as globalization, cloud accounting and the commodity of traditional services may be daunting but they offer tremendous opportunities for those who are willing to learn new skills, think creatively and challenge themselves.

I AM A CPA BECAUSE… I truly enjoy waking up every day and going to work. I am passionate about the integrity of our profession and the standards we are upheld to. We have a very important responsibility to the public for the work we do. I am constantly learning, meeting new people, and dealing with different industries, new regulations and challenges. n

Looking for a change of scenery?

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