July/August 2011 - Florida CPA Today | Volume 27, Number 4

contents Volume 27, Number 4

INTERIM CEO-EXECUTIVE DIRECTOR D. Glenn Thomas SR. DIRECTOR OF MARKETING & COMMUNICATIONS Jan Dobson, CAE EDITOR Suellen D. Wilkins GRAPHIC DESIGNER Loleta K. Bolden PUBLICATIONS COORDINATOR Dianne Dearduff EDITORIAL COMMITTEE William C. Quilliam, CPA, Ph.D., Chair Douglas Day, CPA, Vice Chair Walter C. Copeland, CPA • Lynda M. Dennis, CPA Cynthia Fernald, CPA • David Hochsprung, CPA Michael Kridel, CPA • Troy Y. Manning, CPA Pat Murphy, CPA All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability and editing requirements and restrictions. Please contact the editor before submitting unsolicited manuscripts.

Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/Content/Members/Tools/Publications/FCT/ LettersToEditor.aspx.

Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc., nor should statements be considered endorsements of products, procedures or otherwise.

The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today’s qualifications or detracts from its ethical and professional standards.

Florida CPA Today is published bimonthly by the Florida Institute of Certified Public Accountants, Inc., P.O. Box 5437, Tallahassee, FL 32314. Telephone: (850) 224-2727 or (800) 342-3197. (Street address: 325 West College Ave., Tallahassee, FL 32301.) Visit our website at www.ficpa.org.

This magazine is provided to members of the FICPA. No specific amount of your dues, either expressed or implied, is for this publication. This magazine is not available for purchase by either FICPA members or nonmembers.

For display advertising information, contact the FICPA Marketing Department at (850) 224-2727. © 2011 by the Florida Institute of Certified Public Accountants, Inc. All rights reserved. Reproduction in whole or part is prohibited without the express written consent of the FICPA.

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DEPARTMENTS

July/August 2011

COVER STORY 5 FICPA President Stam Stathis Surrounded by good people, focused on good governance

FEATURES 8 Meet the 2011-2012 Executive Committee 11 2011 Legislative Session ends in chaos Peer review does not pass Florida House 12 Florida’s Uniform Principal and Income Act Understand the tax impacts 16 Transfer pricing Where’s the income, where’s the tax?

17 Unreported offshore accounts 21 DOR update A ticking time bomb for 24 Web Digest clients and CPAs CPA Exam content undergoes major changes 22 Advocacy keeps accounting 25 News briefs profession in the game 26 Student outreach 28 Educational foundation 30 Marketplace 31 New members Mission Statement 33 FICPA NewsFlash digest 34 On the move Florida CPA Today is an award-winning, professional publication On the cover: FICPA President Stam Stathis (center) and the 2011-2012 Executive Committee have some fun during the Board of Governors Retreat in May. From left to right, Bethany Carr, Jeff Barbacci, Scott Price, Joey Epstein and Ken Strauss. (Not pictured, Jim Thielen.)

for more than 18,500 members of the Florida Institute of CPAs. Our magazine:

Allows members to share their professional expertise on technical issues Keeps members informed about FICPA events and advocacy Highlights the people and issues that affect Florida CPAs Recognizes the professional accomplishments of our members

Cover photo by Kathleen Cabble

www.ficpa.org

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Letter to the Editor The cover story in May/June 2011 issue of Florida CPA Today is entitled, “Protecting the Profession, 2011 Legislative Session.” My question (unanswered in the article) is: protection from what or whom? Are we protecting ourselves from competition, or are we promoting legislation that protects the public, as befits our name?

Richard Rampell, CPA FICPA member Palm Beach

Florida CPA Today welcomes letters to the editor.

Submissions should be no more than 250 words and may be e-mailed to communications@ficpa.org.

We may condense letters and edit for grammar and clarity. The opinions expressed in letters to the editor are those of the authors and not necessarily those of the Florida Institute of CPAs. Review submission guidelines: www.ficpa.org/letters.

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Florida CPA Today, the FICPA’s four-color magazine, is distributed bi-monthly to more than 18,500 members.

Frequency discounts are available when you advertise three or more times per year. For more information, contact FICPA Marketing Manager Drew Miller at (800) 342-3197 (in Florida); (850) 224-2727, Ext. 270; or millerd@ficpa.org.

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FICPA President Stam Stathis

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Surrounded by good people, focused on good governance

By Suellen Wilkins, FICPA Editor

On July 1, Stam W. Stathis, CPA, of Tallahassee began his term as 2011-2012 president of the Florida Institute of CPAs. He is the Institute’s 84th president since it was established in 1905.

“The FICPA is proud to welcome Stam as our president,” said Glenn Thomas, the FICPA’s chief operating officer, who is serving as the interim CEO-Executive Director. “His extensive experience and service with the FICPA will allow us to confidently and skillfully address the challenges and future direction of the Institute.”

Stathis, a 28-year FICPA member and tireless volunteer, is eager to get started.

“Successfully serving as president of the FICPA takes a person who can lead by example, and who considers the interests of the FICPA and the profession first, last and always,” Stathis said. “This is a tremendous honor. We have many challenges ahead of us and I’m ready to carry forward the momentum that President Mike Pender and the 2010-11 Board of Governors created. My father taught me never to quit, and my mother taught me that you move a mountain one shovel full at a time.”

Photo by Kathleen Cabble

Although he logs hundreds of FICPA volunteer hours each year, FICPA President Stam Stathis finds time to relax. www.ficpa.org

Stathis is a graduate of the University of Florida and a member of the AICPA. He earned the designations of Certified Financial Planner (CFP®) from the Colorado College for Financial Planning; Certified Information Technology Professional (CITP) from the AICPA; and Certified Valuation Analyst (CVA) from the National Association of Certified Valuation Analysts. He also is a Personal Financial Planning Specialist (PFS) and is Certified in Financial Forensics (CFF).

“My service as FICPA president is an opportunity to give back to the profession that has allowed me to make a good living,” Stathis said. “I believe serving in this position is an honor bestowed on me by my peers, as recognition of the commitment I’ve made to the FICPA.”

Volunteerism is at center of Stathis’ career Stathis has a long history of serving in professional and civic organizations.

He is a graduate of Leadership Manatee, a long-standing Rotarian and a past president of the Bradenton Rotary Club. He has received the Rotary’s distinguished Paul Harris Award.

Stathis has served in numerous FICPA volunteer positions, including president, secretary and treasurer of the Gulf Coast Chapter.

During the years, the Institute has honored Stathis with several awards, including the Presidential Service Award in recognition of outstanding services as a regional vice president (2000-2001); Executive Committee Award of Excellence in recognition of outstanding performance as chairman of the E-Commerce Section, now known as the Business Technology Section (2001-2002); Presidential Award for outstanding work and extraordinary service as Peer Review Task Force chair (2006-2007); and Presidential Award for dedication, diligence and outstanding service as chair of the Governance Task Force (2007-2008).

“The election to represent Region III as regional vice president from 1999 to 2001 was the most meaningful volunteer position in which I’ve served,” Stathis said. “Being elected by my fellow chapter presidents was a great honor, and serving in that position was the beginning of my journey to becoming president of the FICPA. I am forever grateful to those chapter presidents.”

The most difficult thing about serving in an FICPA leadership >>> PAGE 6

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position is the time commitment, Stathis said. Preparation, travel and meeting time require hundreds of hours each year.

“But through that commitment, I’ve enjoyed meeting my fellow professionals.

Each and every person I’ve worked with through the FICPA has enriched my life personally and professionally,” Stathis said.

“Everyone who strives to succeed in their endeavors makes professional and personal sacrifices, and we recognize that they happen. But the sacrifices aren’t something I think about.”

New president is working hard, but having fun A Florida-licensed CPA and partner of James F. Thielen, CPA PA (Thielen + Tax and Business Consulting), Stathis has more than 25 years of public accounting experience. He recently moved to Tallahassee from Manatee County, where he served as a director of management and technology consulting service for CPA Associates.

“I’m excited about the opportunity to work in a different type of firm,” Stathis said. “I’ve worked exclusively at large firms during my career, and Jim’s firm is very different. The relaxed, casual atmosphere, and the openness among the employees, is refreshing.”

Stathis’ Tallahassee practice will highlight his unique expertise in consulting and trust accounting.

“The main thing I’ve learned from being a business owner is that you’re only as good as the people with whom you surround yourself,” Stathis said. “Having employees who feel they’re part of the process, and who take ownership of the firm’s work product, is paramount to being successful.”

Stathis began his career with a large regional firm that was bought out by Touche Ross in the early 1980s.

“We were a Touche office for three years and I worked between Sarasota and Bradenton,” Stathis said. “The two partners who ran the Bradenton office, Don Varnadore and Lanny Tyler, decided to open a practice and I went to work with them. I was made a partner in 1990.”

Stathis credits Varnadore and Tyler for having influenced his approach to his work, and to life.

“Among the role models I’ve had during my career, Don and Lanny had the most influence on me. They shaped me into the professional I am. From Don, I learned that our clients deserve to be provided with quality, timely service. From Lanny, I learned to work hard, but have fun doing it.”

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“I love the diverse work we do as CPAs and the challenge each of my clients brings.

It keeps my life interesting,” Stathis said.

“If there’s one thing I dislike about our profession, it’s the way our workload has become so compressed into a few months of the year. The only way to handle it is to go with the flow, and not to sweat the small stuff.”

Stathis emphasizes value of PACs “I believe advocacy is the No. 1 benefit of membership in the FICPA,” Stathis said.

“Alone, none of us have the political clout to protect our license to practice. But when we band together, our voice is heard in Tallahassee and throughout the country.

To ensure that the accounting profession has a strong presence in Florida’s legislative and regulatory activities, FICPA members and others can join the Florida CPA Political Action Committee (Florida CPA/ PAC). This entity is completely separate from the FICPA and is supported solely through voluntary contributions.

In 2001, the Florida CPA/PAC was separated into three geographic regions – the North, Central and South regions.

Each FICPA chapter is part of one of these regions, and members are assigned to a PAC based on their location.

“A donation from a PAC with more than 18,000 members carries much more weight than an identical donation from an individual,” Stathis said. “Contributing to the Florida CPA/PAC is the fastest,

simplest, most efficient way to get involved in the political process. And I can’t emphasize enough the PACs’ track records in choosing winners.”

The FICPA Governmental Affairs Team spends an enormous amount of time and energy evaluating candidates running for the Legislative and Executive branches of Florida’s government. The Florida CPA PACs are members of the Florida Chamber Political Institute, which is made up of about 65 business groups. During the three months before each primary election, these groups interview and evaluate each candidate running for state office. The FICPA Governmental Affairs team then presents this data to the PAC trustees to determine who, if anyone, FICPA members’ PAC dollars will support.

In 2010, there were 406 candidates who qualified to run in both races, and the PACs supported 199 candidates in the primary and general elections.

“The 2010 win percentages directly illustrate the importance – and return on investment – of the PACs,” Stathis said (see the Governmental Affairs article on page 22).

“Of the challenges the FICPA currently faces, first and foremost is mandatory peer review. It’s the last obstacle to ensuring that Florida CPAs are considered substantially equivalent to CPAs in the rest of the country,” Stathis said. “Our leadership is working diligently with our legislative team to ensure that this is passed during the 2012 Legislative Session.” >>>

Photo by Kathleen Cabble

FICPA President Stam Stathis enjoys the courtyard at the Renaissance Tampa International Plaza Hotel.

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The Florida CPA/PAC frequently leverages its political clout by creating alliances with other organizations. One group to which the PAC belongs is the Coalition to Protect Florida’s Economy, which was formed in 2001. The Coalition, a group of more than 20 organizations representing diverse areas of Florida, has defeated three proposed constitutional amendments to create a services tax in Florida. A services tax would affect Florida residents who use any service, including CPA services.

“Helping hold off sales tax on services has been the most rewarding PAC project in which I’ve been involved,” Stathis said, “especially since the main proponent of removing our exemption from sales taxes is a former Florida Senator from Manatee County.”

Stathis believes in facilitating governance Stam Stathis is known for his knowledge about and passion for Robert’s Rules of Order, which were developed in 1876 by Henry Martyn Robert, a U.S. Army engineering officer. Robert was asked to preside over a public meeting at a church in his community and realized he didn’t know how. He tried, but was supremely embarrassed, and was determined never to attend another meeting until he had learned about parliamentary law.

Robert studied the few books then available on the subject. With the Army he was transferred to various parts of the United States and discovered parliamentary anarchy. Members throughout the country all had different ideas of correct procedure. To bring order out of chaos, he wrote Robert’s Rules of Order, which is now in its 10th edition.

“Robert’s Rules allow a group to govern with a set of guidelines that facilitate the meeting process,” Stathis said. “That is, they allow for an orderly process to conduct the meeting efficiently. If a chair knows Robert’s Rules and correctly applies them, the members of the group will feel that a decision was made properly and professionally.”

Stathis sees his role in the FICPA governance process as that of a facilitator. His goal, he says, is to ensure that there is good governance among the FICPA Executive Committee and Board of Governors during the coming year.

“To me, good governance is making sure all sides are heard,” Stathis said. “A chair’s primary duties are to make sure everyone has a chance to respond to the question, and to avoid allowing a few people to dominate the conversation. The chair should keep the group focused on the tasks at hand and maintain proper decorum. I hope, in the coming year, that I’ll be able to live up to this standard.”

Ms. Wilkins is the editor of Florida CPA Today.

She can be reached at (850) 224-2727, Ext. 383, or wilkinss@ficpa.org. www.ficpa.org

On the personal side Q. Where are you from originally?

A. I was born in Coral Gables and lived there until I was four. Then I lived in Bradenton until I relocated to Tallahassee this June.

Q. Where did you earn your accounting degree, and why did you decide to pursue accounting as a career?

A. I earned my accounting degree at the University of Florida. My dad actually told me to be an accountant, as I would never want for a job.

Q. How do you like to spend your free time?

A. Working out, playing golf and reading.

Q. We hear you’re a car enthusiast. How did that interest begin?

A. I became enamored with cars when I was about eight. I had posters of cars in my room and I’d buy model kits. I was terrible at it and could never make them look as good as the ones on the box covers.

Q. What kind of car do you drive now?

A. Currently I drive a Mercedes E550. It’s easier on these old bones.

Q. Of the cars you’ve owned, which has been your favorite?

A. I’d have to say the Mercedes SLK350 was the most fun. It was just a pleasure to drive and being a hardtop convertible was special.

Q. Do you have any pets?

A. I have a cat named Marshmellow, who’s five. He originally belonged to my daughter.

Q. Do you prefer to eat out or at home? What kind Stathis’ cat, Marshmellow, chills out at a family friend’s home while Stathis moves to Tallahassee. of food do you like?

A. I really don’t have a preference to eat out or in. I can cook, but I’m terrible at menu development. I’d say French food is my favorite.

Euphemia Haye on Long Boat Key is my favorite restaurant.

Q. How do you juggle the responsibilities of a career and FICPA leadership?

A. You work real long hours to keep up.

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Meet the 2011-2012 FICPA Executive Committee

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From FICPA Communications Staff Reports

The FICPA’s eight-member Executive Committee (EC) is comprised of the FICPA President, Stam Stathis, President-elect Scott G. Price and five vice Presidents. The FICPA CEO-Executive Director serves as secretarytreasurer and non-voting EC member. Together, the committee implements the Board of Governors’ policies and oversees the Institute’s activities.

To help FICPA members get to know the 2011-2012 Executive Committee, President Stathis developed a list of questions and asked each committee member to choose and respond to two. Here is some information about each committee member, along with the responses to their chosen questions.

Jeffrey E. Barbacci

level of the FICPA greatly enhances members’ skills as leaders and as professionals.

Jeffrey E. “Jeff ” Barbacci is a shareholder and Director of Audit with Thomas Howell Ferguson in Tallahassee. He has been with the firm for more than 15 years and specializes in not-for-profit and government auditing and consulting.

Barbacci has been involved in FICPA leadership for more than 10 years, and is serving his eighth term on the FICPA Board of Governors.

He is a past chair of the State Legislative Policy Committee; was the first chair of the Young CPAs Committee; and helped transition the State & Local Government Committee to its current Section structure. Barbacci also is a regular FICPA speaker on topics such as internal controls; government accounting and auditing; and board responsibilities.

Jeff lives in Tallahassee with his wife, Emily, and their sons, Dominic and Anthony.

Why is protecting the CPA franchise a critical issue and what role does the FICPA play in that?

Protecting the franchise means protecting the CPA’s image as a trusted advisor with the highest ethical standards. We are the only profession able to provide financial assurance services, and it’s important that we maintain the general public’s trust and respect or our assurance means nothing. CPAs in private industry and the public sector raise the confidence levels of owners, stakeholders and public officials because of our in-depth understanding of business processes and our ability to produce consistent and reliable information.

The FICPA staff and leadership work diligently through educational, legislative and professional efforts to protect our interests as a profession; to help us readily adapt to a constantly changing environment; and to maintain our accountability as a self-regulated industry.

What advice do you have for FICPA members who wish to attain a leadership position at the FICPA? How do they get started?

The easiest way to get started is to get involved at the localchapter level. From there, members will better understand the grassroots of our profession and become familiar with potential leadership opportunities at the state level.

The FICPA also has tremendous need at the committee level, and getting involved is as easy as responding to the annual request for volunteers. I started with the State & Local Government Committee early in my career and I quickly learned that everyone has something to offer, regardless of age or background. I’ve found that the experienced leaders always have been willing to help guide me in my progression. I strongly believe that participating at any 8

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Bethany Carr Bethany B. Carr is a manager for Cavanaugh & Co., LLP in Sarasota. She began her career as an auditor for governmental, non-profit and small-business clients but has transitioned to taxation, providing tax services for individuals, corporations, partnerships and trusts.

Carr began her FICPA service in 2004 as a member of the Young CPAs Committee and as a trustee for the FICPA Educational Foundation. She has served on various FICPA committees and on the Women’s Leadership Task Force (now the Women’s Leadership Committee). In 2008, Carr was >>> www.ficpa.org

named one of CPA Technology Advisor’s 40 Under 40. She is a graduate of Leadership Sarasota County and a member of the Junior League of Sarasota and the Rotary Club of Sarasota Bay. Carr lives in Parrish with her husband, Nathan, and their son, Austin.

What advice do you have for FICPA members who wish to attain a leadership position at the FICPA? How do they get started?

An excellent way to start is to get involved with a chapter. Our chapters are always looking for new volunteers who are excited to be involved. Another great way to get started is to sign up for a committee or two. I began my FICPA service by signing up for the Young CPAs Committee. After serving there for a couple of years, I ventured on to other committees. It’s a good, low-pressure way to meet people and get your hands dirty.

When you’re not practicing accounting, what do you enjoy doing?

I enjoy spending time with my husband and son Austin, who is three. My son is my Tax Day baby, born on April 15! After sitting at a desk all day, I love to get outside. We enjoy going to parks, the beach, camping – anything to get outdoors. I also enjoy reading.

There’s nothing better than sitting at the beach with a good book.

My newest adventure is running. I’ve completed two halfmarathons and I’m training for a third. I’ve found running to be my stress reliever. It keeps me sane and is a little chunk of personal time in a busy schedule of work, family and a variety of community activities.

Joey Epstein As a director for RSM McGladrey, Joey Epstein provides accounting, tax and consulting advice to law firms and other professional-service organizations, as well as other closely-held entities. His other primary responsibility is business development for the firm in South Florida. He has handled income- and sales-tax audits and has assisted clients with exit strategies. He is certified in Florida sales and use tax and holds a Health and Life, including Variable Annuity Insurance License from the State of Florida.

Epstein, an AICPA member, serves on the Florida CPA/PAC Board of Trustees and is serving his fourth term on the FICPA Board of Governors. He has served on the FICPA State Legislative Policy Committee for 20 years and is current chair of the committee. Epstein serves on the Audit Committee of the North Broward Hospital District; as treasurer and a Board member of ChildNet; as vice chair of the National Multiple Sclerosis Society of South Florida; and as treasurer of Broward Days. He also holds volunteer positions with many other philanthropic organizations.

How has the accounting profession changed for you in the last five years?

Being a CPA just isn’t what it used to be! In today’s environment, everyone wants us to be the police. The SEC and every regulatory agency want us to take responsibility for finding and reporting www.ficpa.org

all financial-statement issues and problems (not to minimize our responsibility). If problems surface, fingers are always pointed at us. The IRS wants us to be the police and our requirements, as well as potential penalties, are scary. Client advocacy in the “gray area” has become much more difficult. Although we want to be our clients’ business advisors and still are, the rules have dramatically changed.

As we move closer to a separate set of standards for SMEs and private companies, what’s your perspective on the significance of Big GAAP versus Little GAAP and the impact such changes could have on the accounting profession?

Although the double standards seem unwieldy, it’s a long time coming. The evolution of our standards has been geared toward large public companies and issues that have arisen in that arena.

Yet this is such a small percentage of total businesses in the United States. Public and private companies have completely opposite motivations. Public companies want to capitalize expenses and increase earnings, while private companies want to expense and pay less tax. The education process for financial-statement users is the next hurdle in the process, but it will be well worth it.

Scott G. Price Scott G. Price, FICPA President-Elect, is the managing director of A-lign CPAs, a national provider of regulatory and compliance services. Price, who joined the FICPA in 1998, is serving his seventh term on the Board of Governors and his fourth term on the Executive Committee. He has held chair and vice chair positions on several committees and has served on a number of sections and task forces.

Price was a member of the inaugural class of the Tampa Bay Business Journal’s Top 30 business leaders under age 30; the Tampa Bay Business Journal’s Top 40 business leaders under age 40; and the CPA Technology Advisor’s 40 Under 40 influential CPAs in information technology. He has served several terms on the Hillsborough County and West Central Florida Board for Junior Achievement.

Price lives in Odessa with his wife, Tina, and their children, Brooks and Adriana.

What advice do you have for FICPA members who wish to attain a leadership position at the FICPA? How do they get started?

The FICPA provides numerous opportunities for CPAs to become involved, and there are virtually no barriers. Committees exist with objectives to fulfill every CPA’s passion, whether it’s professional, academic, or community outreach.

The FICPA solicits volunteers in several ways, including conference exhibitions, mail, email and the FICPA website. At FICPA-sponsored conferences, it’s easy to identify volunteer leadership by their name tags. These leaders welcome other members to become involved. I encourage each member to consider leadership opportunities that lead to a direct impact on their profession. >>> PAGE 10 FLORIDA CPA TODAY

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When you’re not practicing accounting, what do you enjoy doing?

With my practice focus I travel extensively and spend many nights away from my family. So when I’m not traveling, I’m with my family. We enjoy fishing, traveling and attending our children’s sporting events. We’re an outdoors family and frequently head to the beach. It’s great living and practicing in Florida, a place so many people only hope to visit.

Kenneth J. Strauss Kenneth J. Strauss is director of taxation and personal financial strategies for Berkowitz Dick Pollack & Brant CPAs & Consultants, LLP in Fort Lauderdale. He is a member of the AICPA and a former president of the Financial Planning Association.

He is serving his 11th term on the FICPA Board of Governors.

Strauss is past chair of the FICPA’s Financial Literacy Committee and serves on the FICPA Educational Foundation’s Board of Trustees. He also serves on a number of committees, including Finance & Office Advisory and Relations with the Florida Bar. What advice do you have for FICPA members who wish to attain a leadership position at the FICPA? How do they get started?

Ask a current leader how to become more involved. I started out by volunteering on the Board of my local chapter, and then worked my way up the ladder to president. When the FICPA president visited, I asked what I could do to help the organization and ended up on a committee. I served on task forces and was a regional vice president.

We need good volunteers, so choose what you like and give 100 percent. You’ll be recognized and get more responsibility. There are so many ways to get started. Sign up for a committee or a section, and be active. Ask questions and give your opinion. You’ll be surprised at how many will listen.

When you’re not practicing accounting, what do you enjoy doing?

Family has always been important in my life. My wife, Mindy, and I have been married for 35 years and have two daughters.

They’re 22 and 25 years old, and they live in New York City.

Mindy and I love to make the trek to see them often.

I’m a big sports fan and baseball is my favorite. I’ve been a Florida Marlins season-ticket holder from the beginning (1993).

I enjoy traveling with the team around the country.

For exercise, riding my bicycle helps relieve the daily stress in life!

James F. “Jim” Thielen Jim Thielen is the owner of Thielen + Tax and Business Consulting in Tallahassee.

Since 1999, Thielen has served several terms on the FICPA Executive Committee and Board of Governors. He served as president of the Tallahassee Chapter from 1998 to 1999 and as regional vice president for two terms ending in 2001.

In February 2003, Gov. Jeb Bush appointed Thielen to the Florida Board of Accountancy (BOA), on which he served until May 2007. He served as BOA vice chair in 2006 and as chair in 2007. Thielen has served on several FICPA committees and sections. Currently, he is a member of the Committee on Finance & Office Advisory and is serving his fourth term on the FICPA Board of Governors.

Thielen and his wife, Beth, live in Tallahassee with their sons, James and Patrick.

Why is protecting the CPA franchise a critical issue and what role does the FICPA play in that?

Our CPA licenses or CPA firms are what set us apart from other advisors, accountants and business consultants. Regardless of the area of concentration, the CPA franchise is always at risk because of various influences.

The FICPA Governmental Affairs Team tracks numerous bills during session and regulatory threats throughout the country during the year. Our legislative team, political action committees (PACs) and volunteer leadership have played a very active role in protecting the CPA franchise. FICPA members’ responsibility is to be involved in these processes as Key Person Contacts and through financial support to the area PACs (see the related article on page 22).

How would you like to see the FICPA develop and grow during the next year, and in future years?

I envision an FICPA that undergoes a re-engineering toward the delivery of continuing education, and that meets members’ needs by possibly negotiating and offering group health insurance to firms throughout Florida. We should continue our Immediate Past President Mike Pender’s goal of reminding members that the FICPA is their Institute, and that they have a responsibility to “Own It.”

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2011 Legislative Session ends in chaos

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Peer review does not pass Florida House

The last day of the 2011 Florida Legislative Session likely will be remembered for the old-fashioned power struggle that occurred between the two Republican-controlled chambers, which pushed the session to 3:35 a.m. on May 7.

The FICPA’s peer-review language, contained in SB 1824 (Relating to Regulated Professions and Occupations) filed by Sen. Alan Hays, R-Umatilla, had passed the Senate with 35 yeas to three nays on May 3. All that was needed was for the Senate to amend HB 5007 (Relating to Reducing and Streamlining Regulations) with the language in SB 1824; pass HB 5007; and send the amended bill back to the House for final passage.

www.ficpa.org

By John W. Johnson, director of governmental affairs The blowup began shortly before midnight on May 6, when the Senate voted 32 to six against HB 5005 (Relating to Deregulation of Professions and Occupations), a House bill that would deregulate interior designers, hair wrapping and talent agencies, among others. It was the first time many of the senators had heard the bill, and many were angry.

Tensions exploded into a tit-for-tat battle as the House voted down a previously agreed-upon Senate bill. The Senate returned the favor by voting down HB 5007 – the bill onto which Sen. Hays and Sen. Dennis Jones, R-Seminole, could have amended peer review and returned to the House for final passage. Before any

consideration was given to amending HB 5007 with the peer-review language, the Senate voted 18 yeas and 21 nays to kill the bill. This left the FICPA with no way to pass peer review during the 2011 Session.

The FICPA Governmental Affairs Team is working with FICPA leadership to review the peer-review legislation that was filed last year and determine if any changes should be made before filing the 2012 legislation.

For more information contact John W. Johnson, FICPA director of governmental affairs, at (800) 342-3197, Ext. 203 (in Florida); (850) 224-2727, Ext. 203; or govaffairs@ficpa.org.

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Florida’s Uniform Principal and Income Act Understand the tax impacts

By F. Gordon Spoor, CPA, PFS and James R. Spoor, JD, CPA

Section 641(b) of the Internal Revenue Code of 1986, as amended (the “Code”), explains the simplicity of fiduciary income taxation: “The taxable income of an estate or trust shall be computed in the same manner as in the case of an individual, except as otherwise provided in this part.”

Practitioners who have been preparing individual income-tax returns for years might see this as an invitation to use their current skills to expand their practices to include fiduciary income-tax return preparation.

However, the clause “except as otherwise provided in this part” introduces a new level of complexity that practitioners should fully understand before expanding into fiduciary income-tax return preparation.

This article discusses the basics of incometax preparation for simple and complex trusts.

It is intended as a general overview, rather than an in-depth discussion, of the complex fiduciary income taxation.

A simple trust, under the terms of its governing instrument, requires the trustee to distribute all income to the income beneficiary. Income for purposes of determining the amount of money distributable to an income beneficiary is fiduciary accounting income determined under the terms of the governing instrument and applicable local law. A complex trust allows for accumulation of income or is required to distribute income currently, but also distributes principal or has a charitable beneficiary.1 Additional rules apply in the case of charitable trusts, bankruptcy estates and other types of trusts. These topics are beyond the scope of this article.

The Treasury Regulations provide a special definition of “income” as it relates to trusts (“fiduciary accounting income”): For purposes of subparts A through D, part I, subchapter J, chapter 1 of the Internal Revenue Code, “income,” when not preceded by the words “taxable,” “distributable net,” “undistributed net,” or “gross,” means the amount of income of an estate or trust for the taxable year 12

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determined under the terms of the governing instrument and applicable local law. Trust provisions that depart fundamentally from traditional principles of income and principal will generally not be recognized.2 The most notable differences between individual and fiduciary income taxation are the personal exemption of a trust and a special deduction known as the “distribution deduction.”

• The personal exemption of a trust depends upon the classification of the trust. Simple trusts are allowed a personal exemption of $300. Complex trusts are allowed a personal exemption of either $100 or $300, depending on whether the governing instrument requires the current distribution of fiduciary accounting income (i.e., a trust required to distribute fiduciary accounting income currently that also distributes principal is a complex trust entitled to the $300 exemption).3 • Trusts are allowed a special deduction known as the “distribution deduction.”

A simple trust is allowed a distribution deduction equal to the lesser of its distributable net income (DNI) or the trust’s fiduciary accounting income.4 A complex trust is allowed a distribution deduction equal to the lesser of (a) the sum of the payments required to be made and other amounts paid by the trust or (b) the DNI of such trust.5 Simply stated, DNI is the taxable income of a trust increased by the amount of the exemption, distribution deduction, estate tax deduction, nontaxable income and capital losses of such trust and reduced by the amount of the net capital gains of such trust.6 It is imperative that a preparer know the fiduciary accounting income of a trust to properly compute the distribution deduction of such trust. The fiduciary accounting income of a trust is computed under the terms of the governing instrument and applicable local law.7 In

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Florida, the applicable law is Florida’s Uniform Principal and Income Act as found in Chapter 738, Florida Statutes (F.S.). It is beyond the scope of this article to cover Chapter 738, F.S., in detail.

Here are some of the more misunderstood sections of Chapter 738.

Accrual Rules When a decedent who is also the income beneficiary of a trust dies, or when an income interest begins (see F.S. 738.301 to determine when an income interest begins and ends), it must be determined how much “accrued” income is included in accounting income and how much is included in principal. Section 738.302, F.S., instructs the trustee to allocate a receipt or disbursement to principal if the “due date” of a receipt or disbursement occurs before a decedent dies or before an income interest begins. A trustee shall allocate a receipt or disbursement to income if the “due date” of the receipt or disbursement occurs on or after the date a decedent dies or an income interest begins.

An item of income or an obligation is due on the date the payor is required to make a payment. If a payment date is not stated, there is no due date. Distributions to shareholders or other owners are deemed to be due on the record date of the distribution, or if no record date is specified, on the declaration date of the distribution.

Example 1: Decedent dies June 30, leaving an income interest in his/her revocable trust to his/her children. At the time of death, the trust owned ABC Inc. stock.

ABC Inc. declared a dividend on June 20 payable July 1 to holders of record on June 28. Because the due date of the payment is June 28, the record date, and this date is prior to the beginning of the children’s income interest, Section 738.302, F.S., would treat the receipt of this payment as principal when received. >>> www.ficpa.org

Example 2: Same as Example 1, except the decedent owned a corporate bond that paid interest semi-annually on July 1 and January 1. The due date is the date that the payor is required to make the payment. In this case, the due date is July 1. Because the due date falls after the decedent’s death, the entire payment is income to the trust when received, regardless of the amount that accrued prior to death.

will treat the payment as being received proportionately from each class of income reported on the Schedule K-1. Any undistributed amounts are carried forward to the next year. Any class of income that remains undistributed after three years shall be added to principal and not entered into the computation of undistributed cumulative net income.

Entities Section 738.401(1), F.S., defines “entity” as “a corporation; partnership; limited-liability company; regulated investment company; real-estate investment trust; common trust fund; or any other organization in which a trustee has an interest other than a trust or estate….” As a general rule, distributions of money from an entity are treated as income unless they are deemed distributions in liquidation or are short-term or long-term capital gain distributions from a regulated investment company.

Frequently, a trust will own an interest in a closely held entity that is treated as a pass-through entity for income tax purposes, such as a partnership or LLC.8 Often, the trustee is a family member or another non-corporate trustee, also known as a “private trustee.”9 In this circumstance, Florida has adopted a special set of rules the trustee must apply in determining the allocation of payments received from such entities.

Section 738.401(7)(c)5, F.S., defines a pass-through entity owned by a trust that has a private trustee as a “targeted entity.” While every pass-through entity is a targeted entity, Section 738.401(7) (c)3, F.S., provides further that a targeted entity is an “investment entity” if it normally derives 50 percent or more of its annual cumulative net income from interest; dividends; annuities; royalties; rental activity; or other passive investments, including income from the sale or exchange of such passive investments.

When determining the proper allocation of receipts from a targeted entity that is not an investment entity, the trustee shall allocate the receipt to income to the extent of the entity’s “undistributed cumulative income” and any balance to principal. Undistributed cumulative income means the targeted entity’s net income as determined using the accounting method regularly used by the targeted entity in preparing its financial statements.

If no financial statements are prepared, undistributed cumulative income is the net book income computed for federal www.ficpa.org

Mutual Fund Distributions

income-tax purposes for every year the trust holds an ownership interest in the entity. A trust’s pro rata share shall be the cumulative net income multiplied by the percentage ownership of such trust.

A special set of rules applies to an investment entity. Section 738.401(b), F.S., directs the trustee to allocate receipts from an investment entity in the same manner as if the trustee had directly held the trust’s pro rata share of the assets of the investment entity attributable to the distribution. Therefore, when computing an investment entity’s undistributed cumulative net income, the trustee must take into account the nature of the income the entity earned, which is reported on the Schedule K-1 the entity issued.

The computation involves the trustee determining which income items shown on the Schedule K-1 would be treated as income, if the trustee received such items directly from the underlying investments, and which would be treated as principal.

Because the distributions from the investment entity generally are less than the amounts of income so reported, the trustee

Mutual funds, also known as regulated investment companies, are a class of entity covered by Section 738.401, F.S. Distributions from mutual funds generally are categorized as coming from ordinary income, short-term capital gains, long-term capital gains or as tax-free returns of principal.

Short-term capital gain dividends are reported as ordinary dividends for federal income tax purposes.

Nevertheless, Section 738.401(3)(d), F.S., treats short- and long-term capital gains dividends received from a mutual fund as being allocable to principal, and therefore not distributable to the income beneficiary.

However, for federal incometax purposes, short-term capital gains dividends enter into the computation of DNI of the trust because they are taxed as ordinary dividends.

Practical Application These examples apply some of the principles discussed here to issues that practitioners commonly encounter.

Example 1 – Capital Gains Dividends The Jones Trust is governed by a trust instrument that requires all income to be distributed to the income beneficiary at least annually, with the principal held for the benefit of the remainder beneficiaries.

Most of the Jones Trust assets are invested in a portfolio of mutual funds held by a regulated investment company (the “Company”).

The Jones Trust receives cash from the Company equal to $10,000 in >>> PAGE 15

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the year 20X1, and the trustee pays $10,000 to the income beneficiary. The trustee later receives the 1099 from the Company for 20X1 which reflects $10,000 in dividends, of which $6,000 was ordinary dividends, $3,000 was short-term capital gain dividends and $1,000 was long-term capital gain dividends.

Even though the Jones Trust received cash in the amount of $10,000 from the Company, the trustee of the Jones Trust only should have paid the income beneficiary $6,000. The remaining $4,000 should have been credited to principal for the remainder beneficiaries.10 The trustee of the Jones Trust now must contact the income beneficiary to recover the additional $4,000 improperly paid, or create a liability from the income beneficiary to the trust which will be repaid from future income distributions from the Jones Trust. To avoid this, the trustee should determine what the distribution received from the Company is comprised of before making a distribution to the income beneficiary.

Example 2 โ Stock Dividends In 20X2, the Jones Trust receives a stock dividend from an entity in which

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it owns stock. The trustee acknowledges that dividends ordinarily are allocated to income. However, the trustee has learned from past mistakes. The trustee thoroughly reads Section 738.401, F.S., and properly allocates the stock dividend to principal.

The Jones Trust receives no money, and the stock dividend is allocated to principal as a receipt of property other than money.11 This article barely scratches the surface of the complexities of the federal income tax laws or Florida laws applicable to the taxation and administration of trusts. It is intended to put forth the basic concept of fiduciary income taxation and emphasize the importance of understanding the computation of fiduciary accounting income. A more in-depth understanding of these concepts is required of practitioners venturing into this field of accounting.

F. Gordon Spoor, CPA, PFS is a shareholder of Spoor & Associates, PA, CPA in St. Petersburg and a shareholder in Anderson, Riley & Spoor, PA. He serves as chairman of the FICPA Federal Tax Committee and of the AICPA Trust, Estate & Gift Technical Resource Panel. He is a discussion leader for FICPA and AICPA CPE courses and has been regularly recognized as an FICPA Outstanding Discussion Leader.

James R. (Rusty) Spoor, JD, CPA is the founder of Spoor Law, PA in St. Petersburg, specializing in tax, business law and estate planning. Spoor is a member of the FICPA, the Florida Bar, the Florida Association of Attorney-CPAs and the American Association of Attorney-CPAs. He is the recipient of several service awards for pro bono legal work on behalf of area non-profits. He also is a regular guest lecturer for the Center of Entrepreneurship at the University of South Florida in Tampa.

Treas. Reg. ยง1.651(a)-1.

Treas. Reg. ยง1.643(b)-1.

3 IRC ยง642(b)(2).

4 IRC ยง651.

5 IRC ยง661.

6 IRC ยง643(a). This is a simplified definition.

There are times, such as the final year of an estate or trust and other circumstances outlined in Treas. Reg. ยง1.643(a)-3, that capital gains are included in DNI. 7 Treas. Reg. ยง1.643(b)-1.

8 S Corporations, while common, will have their own set of rules depending on the type of trust and the elections made.

9 See, Fla. Stat. ยง738.401(7)(c)(4).

10 See, Fla. Stat. ยง738.401(3)(d).

11 Fla. Stat. ยง738.401(3)(a).

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Transfer pricing Where’s the income, where’s the tax?

By Walter C. Copeland, CPA

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Many Florida CPAs have U.S.-based clients who conduct business in one or more foreign countries. These clients may not be aware of the possible complexity of allocating income and deductions between the U.S. and those countries. Generally, the term applied to that allocation is transfer pricing.

This article provides a brief outline of the situations in which transfer-pricing rules apply (and may not) in the foreign context, and the various methods of determining the transfer pricing. It is a very complex area and CPAs should thoroughly evaluate the facts before determining a course of action.

The basic issue of transfer pricing is one of perceived manipulation. For example, by allocating income and deductions to lower the net income in a high-taxing country in favor of a lower-taxing country, a company can lower its overall tax burden.

Other strategies may include allocating deductions to high-taxing countries, or sourcing income to countries in an effort to maximize foreign tax credits.

The IRS and many foreign countries have looked to increase their tax revenues by examining and changing these allocations with regard to companies doing 16

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business within their jurisdiction. The U.S. has stepped up its audit efforts by adding subject matter experts (SMEs) who have specific knowledge in this area and are called in on audits that other IRS agents are conducting. Foreign countries also are increasing their enforcement efforts. China, India, Turkey and Greece, to name a few, have aggressively pursued adjusting the income and deductions of companies doing business within their borders.

The principal rules governing transfer pricing are found in Internal Revenue Code (IRC) § 482 and 861, temporary regulations issued Jan. 5, 2009, and the 2010 version of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations published by the Organization for Economic Co-operation and Development (OECD) Council.

Interpretive tax cases and the tax treaties between various countries play a prominent role in transfer-pricing determinations.

Often an advance pricing agreement (APA) is obtained between a taxpayer and a taxing authority to agree to the methodology used for pricing cross-border transactions.

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Here is a typical situation where transfer pricing comes into play. A U.S. parent transfers product and/or technology to its subsidiary in one or more countries.

This ultimately results in the sale/revenue of those products and/or technology in the foreign country for a profit. It may be as simple as the U.S. parent selling products to its foreign subsidiary for a price that allows for a profit in the foreign jurisdiction, causing that profit to escape current U.S. taxation.

To prevent abuses, transfer-pricing rules govern the method of determining the price of products sold to the foreign country. The inclusion of hard costs and direct and indirect costs is subject to interpretation and can greatly change the allocation of the profits subject to taxation.

There also are specific transfer-pricing rules that apply to the allocation of interest costs between parties, but these are beyond the scope of this article.

In a manufacturing environment, the rules under IRC § 865 (i)(1) and Regs.1.863-3 deal with allocation of income from the disposition of inventory property between the U.S. and foreign >>> PAGE 18 www.ficpa.org

Unreported offshore accounts A ticking time bomb for clients and CPAs

By Brian Mahany, Esq.

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The April 15 filing deadline has passed and plenty of time remains for clients on extension. Another deadline is quickly approaching, however. For tens of thousands of Florida residents, it may mean the difference between peace of mind and criminal prosecution.

Aug. 31 is the deadline to participate in the IRS’ Offshore Voluntary Disclosure Initiative (tax amnesty). If you think this doesn’t apply to any of your clients or couldn’t affect your practice, read on.

The IRS launched its first major offshore amnesty in 2009. That program yielded just 15,000 participants. Since then, the IRS has prosecuted many people who have unreported Swiss accounts. So many that, when we think of unreported foreign accounts, we think of tax cheats hiding money in UBS or other Swiss banks. Those stories captured the media’s attention, but account only for a tiny percentage of those with unreported accounts.

So, who are the tens of thousands of Florida residents who have unreported accounts? Most are foreign-born citizens or dual nationals.

I recently conducted a quick straw poll, asking friends and acquaintances who were born outside the U.S. if they maintained www.ficpa.org

bank or financial accounts in their home countries. Of the six I asked, all six admitted to maintaining financial accounts in their home countries. How many reported those accounts on Schedule B of their returns, or on the mandated Report of Foreign Bank and Financial Accounts (FBAR)? None.

Obviously, filing a false return could result in felony charges. But failing to file the FBAR report (due June 30 each year) also is a felony.

Thus far, few people have been prosecuted. All the people I spoke with (all were non-clients) professed to be unaware of the reporting requirements. Many think accounts in their “home” country are not foreign. One said her parents in China set up an account for her there. Another said he owned three rental properties in his home country, Australia, and used the account there to pay bills and collect rents.

The explanations may be rational, but the conduct still is illegal.

Although criminal penalties of three to five years per filing year are a deterrent to many, the probability of prosecution for these “innocent” violations is quite low. The civil penalties are another story, however.

If the IRS finds out a taxpayer has or had an unreported account, they can seek a penalty of 50 percent of the highest balance in the account. Even if the account is cleaned out tomorrow, the IRS can look back years and impose the 50 percent penalty on the previous highest dollar balance.

What are the chances of getting caught?

They’re increasing every day.

In the last two years, the U.S. has executed several tax-exchange agreements with foreign governments. The Organization for Economic Cooperation and Development maintains a list of uncooperative tax havens. As of last year, there were no blacklisted countries.

There still are several jurisdictions where cooperation is poor, but all countries now have signed tax-exchange treaties or have pledged to cooperate.

Not only is there historic cooperation internationally, the IRS’ detection efforts are becoming more sophisticated. The newest tool is a “John Doe” subpoena in which the U.S. Government subpoenas all records from a foreign bank relating to known U.S. taxpayers, or those with U.S. addresses or with extensive debit card use in >>> PAGE 19 the U.S.

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sources. They specifically relate to 1) property manufactured in the U.S. and sold or exchanged outside the U.S. (or vice versa); 2) inventory property manufactured by taxpayers with a U.S. possession and sold or exchanged in the U.S. (or vice versa); and 3) inventory property purchased by taxpayers within a U.S. possession and sold or exchanged in the U.S. (but not vice versa).

Section 863 sourcing rules provide for three methods of allocating income between production activity and sales activity: the 50/50 method, the independent factory price (IFP) method and the books-and-records method.

Under the 50/50 method, it is assumed that 50 percent of the taxpayer’s activity is from production and 50 percent is from sales activity. First, gross income from the sale of property manufactured in the U.S. and sold in a foreign country (or vice versa) is determined. It then is apportioned between the U.S and foreign country based equally (50/50) on the ratio of the location of the taxpayer’s “production assets” and

sales. Deductions from gross income are allocated and apportioned based on the gross income between the U. S. and foreign amounts as previously determined.

The IFP method uses a comparison of a price the manufacturer sells regularly to wholly independent (defined under IRC § 482) distributors or seller concerns to establish an independent price as a basis for the price used to sell to subsidiaries in foreign countries. The taxpayer has to show those comparable sales are regularly to wholly independent seller concerns, and that they purchase for resale and not for their own use.

The books-and-records method requires advance approval of the IRS. It involves detailed records of receipts and expenditures that clearly reflect the allocation of income between the U.S. and foreign sources.

The 50/50 method can be advantageous if the item is manufactured in the U.S. and sold entirely in the foreign country For example, if a U.S. company, using the 50/50 method, manufactures a product in the U.S. and exports the product to

a foreign country to be sold, 50 percent of the gross income would be allocated to the foreign country. This would allocate 50 percent of the income to the foreign country, even though there were no manufacturing assets, and only sales activity, in the foreign country. If there was some manufacturing activity in the U.S. and some in the foreign country, that percentage would increase the allocation to the foreign country.

In the case of production and sale of natural resources or farm products, the allocation is subject to apportionment. One of the major differences in natural resources or farm products is that the 50/50 rule cannot be used, but an “export terminal” concept is used. Generally, if no additional services are added after the shipment, the income is allocated between the U.S. and foreign sources based on the fair market value of the product at the “export terminal.” The value at the export terminal determines the income allocated to the country where the farm, mine, oil or gas well are located. If additional services are added after the shipment, the income from those services can be allocated based on the three methods described previously.

For ocean activities, generally, section 863(d) sources the income to the location of the taxpayer. There are exceptions for where the activity is performed, resources that are used and other factors. Ocean activity includes any activity conducted on or under water not within the jurisdiction of the U.S., a U.S. possession or foreign country.

Transfer-pricing rules are quite complex and can be difficult to apply to many situations. Practitioners can follow basic methodologies, or obtain an agreement from the IRS (or other jurisdiction) in advance to protect clients in the event of an audit.

With the ever-increasing globalization of trade, transfer-pricing issues are becoming more prevalent for businesses. Practitioners should watch for these possibilities and recommend proper planning before and during the year to establish the best method, or obtain an APA and to orient the accounting records to produce the information needed for the chosen method and keep that information current.

Walter (Wally) Copeland is a partner with Brimmer, Burek & Keelan, LLP. He is vice chair of the FICPA Editorial Committee and a past chair of the FICPA Federal Taxation Committee.

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Recent enforcement efforts targeted at HSBC Bank have yielded two criminal prosecutions of Indian Americans with accounts at HSBC India and one prosecution of an American with an unreported account at HSBC Bahamas.

The estimate of Americans or U.S. taxpayers who have unreported foreign accounts is between 500,000 and 1 million people. With that many people, the chances are good that some are your clients.

Each year we routinely sign off on returns, including returns on which the “no” box is checked in response to the Schedule B question regarding foreign accounts.

Many CPAs don’t understand the FBAR requirements and the current amnesty program. When amnesty is over, there may not be another chance for taxpayers to avoid prosecution and loss of half their offshore accounts plus possible tax, interest and penalties on any unreported interest income. Don’t let those upset taxpayers blame you.

The current amnesty ends Aug, 31 but it is complex and involves a considerable amount of paperwork. Under the current rules, there must be a good-faith attempt to complete the amnesty package by Aug. 31.

A 90-day extension is available, but only for

people whose applications are substantially complete by the deadline.

Now is the perfect time to educate clients and potentially save them from jail and certain financial loss. It’s a good time for you to avoid grief and aggravation, too. Participants in the amnesty avoid prosecution and may pay only a 5 percent, 12 percent or 25 percent forfeiture, instead of losing half their account balance.

Remember, the penalty rules for foreign accounts look at the account balance, not at any income derived from the account.

This article is informational only. It is an overview of the law and current amnesty program. There are many exceptions, limitations and special rules, especially on the reduced-penalty provisions for amnesty participants. The author would be happy to answer questions without obligation and help if formal assistance is needed.

Access Florida CPA Today Archives Online For your convenience, Florida CPA Today articles from 1997-present are posted on the FICPA’s website at www. ficpa.org/ficpa/Members/ Tools/Publications/FCT/ Archives. The archives provide a variety of previously published information, including technical articles written by member CPAs, legislative updates, DOR and IRS updates and much more.

Brian Mahany is a tax attorney with a national practice. He is the former commissioner of Maine’s state revenue agency, a former assistant attorney general – tax division and revenue officer. Mahaney has contributed articles to the Journal of Accountancy and to the Wisconsin Institute of CPAs.

FICPA 2011 Woman to

Watch Awardees

A national effort of the CPA profession

EXPERIENCED LEADERS

Deborah Garringer, CPA, Crowe Horwath LLP

Laura Krueger-Brock, CPA, CBIZ Kirkland, Russ, Murphy & Tapp

EMERGING LEADERS

Cindy Cruz, CPA, Rooms to Go

Magda Sanchez-Farren, CPA, Crowe Horwath LLP

www.ficpa.org/ficpa/CPAResources/Tools/Women/WomentoWatch

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WOMEN’S

LEADERSHIP summit

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DOR update

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From DOR staff reports

Florida sales and use tax law

Know the exemptions and exclusions

Tax law in any state can be complex. Here are some basic principles of the Florida sales-and-use tax system, and the related exemptions and exclusions.

There are five general principles of the sales-and-use tax in Florida (Chapter 212, Florida Statutes): • The taxable event must take place in Florida.

• The taxable event must involve the ultimate consumer (the person who made the retail purchase).

• Pyramiding of tax on the same property or event must be avoided.

• The economic burden may fall on the consumer, but the collection responsibility falls on the Florida seller. The Department of Revenue (DOR) can collect from either.

• A use tax (called a compensating use tax) is imposed on consumers for goods purchased out of state and used in Florida, subject to credit for like tax paid to another state. A use tax also may be imposed on consumers who purchased goods in Florida but did not pay tax.

What is taxable, according to Florida’s sales and use tax laws?

• Retail sales and leases of tangible personal property (Section 212.05(1), F.S.), including fabrication of tangible personal property from customer-provided materials; repairs of tangible personal property if the repairer furnishes any materials; and services that are part of the sale (See the related article in the March/April 2011 issue of Florida CPA Today.)

• Use of tangible personal property in Florida when purchased elsewhere • Transient rentals, motor-vehicle parking, boat dockage, aircraft tiedown space • Real-property rentals (nonresidential) • Admissions • Security services, commercial cleaning and pest control • Service warranty contracts • Retail sales of electricity (nonresidential) • Coin-operated amusement machines

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What are tax exclusions and exemptions?

Chapter 212 defines the transactions subject to tax in Florida. A general rule is that tax statutes must be strictly construed against the taxing authority and in favor of taxpayers. So, exclusions from tax are those transactions that fall outside of Chapter 212.

Most pure-service transactions (such as legal and accounting services), as well as sales of real and intangible personal property, are excluded from sales-and-use tax law.

Exemptions (or exceptions) differ from exclusions because they relate to items or transactions that otherwise would be taxable under Chapter 212, if tax law had not specifically removed or exempted them.

Exclusions from tax are strictly construed against the taxing authority and in favor of taxpayers. Exemptions are strictly construed against taxpayers.

There are three types of exemptions: product exemption (exemption of property); entity exemption (exemption of a party to the transaction); and use exemption (exemption because of the way the property is used).

Here are some of the reasons for exemptions.

Inherent in sales and use tax – Items for resale or materials incorporated into a taxable product (for example, parts used to construct a washing machine). Sales taxes generally are applied to the final/retail sale.

The taxation of intermediate or wholesale sales would lead to “double taxation” or “pyramiding of tax.”

Stimulation of economic activity in Florida – Items fabricated for use in research and development; sale or use of satellites or other space vehicles; purchases

of machinery and equipment by new or expanding businesses Tax relief – Airport property used for landing, taxiing or loading; electricity or boiler fuels used in manufacturing; purchase of agricultural items (pesticides, seeds, fertilizers, etc.); charter fishing boats Necessities of life – Groceries for human consumption; prescription and non-prescription drugs; purchases of power and heating fuels by residential households; water (metered and bottled); rent on lowincome housing; rent paid by permanent residents Administrative concerns – Some exemptions are dictated by concerns regarding efficient administration of the law. In many instances, collection costs might be greater than the potential revenue.

A good example of this is the exemption for occasional or isolated sales.

Socially desirable goals – Dues, fees and admissions charged by non-profit entities; purchases by Internal Revenue Code § 501(c)(3) tax-exempt organizations; kindergarten through twelfth grade schoolbooks and lunches; toll-road charges; religious items.

For more information about Florida sales and use tax law, visit the Florida Legislature’s Office of Economic and Demographic Research website at edr.state.fl.us and search for 2011 Florida Tax Handbook. Section II, Sales and Use Tax, provides a history of the tax; discusses and lists exemptions; and references applicable law. Or, visit DOR’s website at dor.myflorida.com/dor/sales_tax. html. Florida businesses may call DOR at (800) 352-3671 for tax information and assistance.

DOR developing collection analytics system The Department of Revenue (DOR) soon will implement a collection analytics system to enhance its collection activities. Collection analytics will enable DOR to use predictive behavioral models to analyze past taxpayer behavior and data patterns; assess future payment behaviors; and better prioritize and target tax-collection efforts.

The collections analytics project began in February 2011 and is scheduled to be operational in October 2011.

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Governmental affairs

By John W. Johnson, director of governmental affairs

Advocacy keeps accounting profession in the game

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The FICPA Governmental Affairs Team serves as your liaison to Florida legislative and regulatory agencies, including the Florida Board of Accountancy (BOA). We help develop proposed legislative and regulatory policies; monitor state legislation and regulatory policies to determine their effect on the CPA profession; lobby on the FICPA’s behalf; and communicate changes to FICPA members.

The Governmental Affairs Team represents you in Tallahassee with two full-time staff lobbyists and two contract lobbyists. The team tracks a host of state legislative issues affecting the accounting profession (383 bills during the 2011 Legislative Session).

Our goal is to support the FICPA’s mission to monitor and actively participate in the public-policy making process.

The FICPA’s ongoing relationship with the Board of Accountancy (BOA) allows us to keep an eye on regulatory issues; collaborate on issues of interest to the profession; and provide assistance at the BOA’s request. The Governmental Affairs staff makes recommendations to ensure that the profession’s best interests are represented and the public interest is served.

An FICPA staff member attends each BOA meeting, which are open to the

public. The BOA’s remaining 2011 meetings will be held Aug. 12 and Oct. 7 in Tampa and Dec. 2 in Tallahassee.

During the last two decades, the FICPA has had many Legislative successes.

• Defeated attempts to place a sales tax on service (1991, 1992, 1993, 1998, 2002, 2004, 2005, 2008 and 2009) • Removed the requirement to complete the Laws and Rules Exam as a condition of licensure renewal (2009) • Provided for the practice of mobility for CPAs (2009) • Placed a statutory cap on CPE hours needed to reactivate an inactive license (2009) • Passed legislation that allows CPA exam applicants to sit for the exam after completing 120 hours of college education (2008) • Removed the “work-experience alternative” sunset date to make permanent in statute the fiveyear work-experience alternative; expanded the definition of work experience to allow work experience gained inside the state to count toward the work-experience alternative requirement (2007) • Worked closely with our coalition partners in the business community to repeal the doctrine of joint and several liability (2006) • Passed legislation to mirror the condominium associations statute to require compilations The FICPA Governmental Affairs Team (left to right, for homeowners Justin Thames, John Johnson and Karen Nuzie) monitors associations (2004) state legislation and regulatory actions and advocates on • Passed “hardship” your behalf. legislation to give the 22

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BOA discretion in reinstating “null and void” licenses in case of serious illness or unusual hardship (2001) • Advocated for the Florida Single Audit Act (1998) • Defeated the Legislature’s attempt to do a study on creating a Second Tier of Licensure (1995) • Lobbied for legislation that created the Division of Public Accounting within the Department of Business & Professional Regulation (1992)

Florida CPA/PAC, Key Person Contact Program need your help A key factor in the strength of the accounting profession in Florida’s political arena is the strength of the Florida CPA Political Action Committee (Florida CPA/ PAC). The objective of the Florida CPA/ PAC is to protect the public’s confidence in, Daniel Raulerson, CPA and esteem Candidate for House District 62 for, the CPA certificate.

The Florida CPA/PAC is completely separate from the FICPA. It is supported solely by voluntary contributions from FICPA members and others.

Through the Florida CPA/PAC, FICPA members help elect business-minded Legislative candidates and adopt issues important to the CPA profession. The PAC also helps educate elected officials, enabling them to make a difference when bad public policy is proposed. >>> www.ficpa.org

The Florida CPA/PAC recently was instrumental in helping elect FICPA member Michael Bileca to the Florida House of Representatives, House District 117. Currently, the PAC is supporting longtime FICPA member and contributor Daniel Raulerson, CPA. Raulerson owns an accounting firm, Raulerson & Company, PA in Plant City and is the mayor of Plant City. He is running for House District 62 in 2012.

To strengthen grassroots relationships with the Legislative and Executive branches of Florida’s government, the FICPA has developed the Key Person Contact (KPC) Program. In this program, the contacts are CPAs who have personal relationships with elected state officials. These CPAs act as liaisons between the officials and the FICPA, relaying general and technical information about legislative issues affecting the CPA profession.

Frequent personal contact from CPA constituents in a legislator’s district helps maintain professional camaraderie with that legislator. Having numerous lines of communication with state legislative bodies, and keeping them open, ensures

www.ficpa.org

the FICPA has a solid voice regarding critical issues concerning the accounting profession.

In many situations, contact between CPAs and legislators has helped the FICPA pass beneficial legislation or defeat legislation that is detrimental to the profession.

To become a part of the FICPA’s KPC Program, complete the online form at www.ficpa.org/KPC. For more information contact John W. Johnson, FICPA director of governmental affairs, at (800) 342-3197, Ext. 203 (in Florida); (850) 224-2727, Ext. 203; or govaffairs@ficpa.org.

Florida CPA/PACs succeed In 2010, 406 candidates qualified to run in the primary and general elections, and the Florida CPA/PAC supported 199 candidates in both races. Here are the 2010 election win/loss percentages.

House Senate

Primary 93.4% 87%

General 98.3% 100%

Contributions to the Florida CPA/PAC help ensure the strong presence of the CPA profession in legislative and regulatory activities. To find out how you can invest in your professional future, contact the Governmental Affairs Team at (800) 342-3197, Ext. 202, or govaffairs@ficpa.org.

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Web digest Whether published in Florida CPA Today or on the FICPA’s website, www.ficpa.org, articles by FICPA members are full of information about timely accounting issues. On the website, you’ll find new and archived articles on a variety of topics. To read this article in its entirety, visit the FICPA’s website at www.ficpa.org/FCT/Technical.

CPA Exam content undergoes major changes

By Dr. Lynn Clements, CPA, CFE, Cr.FA, CMA, CFM and Dr. Will Quilliam, CPA, CIA Florida Southern College

In 2008, the AICPA approved new Content and Skill Specification Outlines (CSOs). The new CSOs resulted from an AICPA practice analysis conducted to better align exam content with accounting practice.

As a result, a major shift in the Uniform CPA Examination began in January 2011.

Each of the four sections of the exam has changed. There are changes in content and in weights assigned to topics. The exam no longer contains long simulation questions.

Instead, it contains short, task-based simulations, some of which contain research components.

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The Business Environment and Concepts (BEC) section now contains a writtencommunication task. Each of the four sections still contains between 72 and 90 multiple-choice questions. The new format of the exam is called the Computer Based Testing-evolution (CBT-e) platform.

This article provides an overview of what’s new with the CSOs and what has not changed, and suggests guidance for CPA Examination candidates to prepare for the new content.

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FICPA members may receive discounts on CPA Exam review products from Becker and Gleim.

For information, contact the FICPA member services department.

Dr. Lynn Clements, a professor of accounting at Florida Southern College, practiced public accounting for six years. She is a member of the FICPA; the AICPA; the Institute of Management Accountants; the American Accounting Association; and the Association of Certified Fraud Examiners.

Dr. Will Quilliam is an associate professor of Accounting at Florida Southern College. He serves on the FICPA Board of Governors and is chair of the FICPA Editorial Committee. He previously was an auditor with Ernst & Young.

www.ficpa.org

News briefs

From FICPA Staff Reports

Berkowitz honored for volunteer service Miami Today recently named FICPA Past President Richard A. Berkowitz as one of the publication’s 2011 Gold Medal Award winners. He received the Silver Medal for Individual Achievement.

Berkowitz is managing director and Richard A. Berkowitz, director-in-charge of management consulting CPA services with Berkowitz Dick Pollack & Brant, LLP. Under his leadership as statewide chair for Take Stock in Children, the organization received a $5 million federal grant to expand its services of providing mentors, scholarships and hope for low-income and at-risk children in Broward, Monroe and Highlands counties.

Berkowitz holds numerous volunteer leadership positions in MiamiDade and Broward counties. He also has been instrumental in raising money to help various organizations in the fight against cancer.

FICPA promotes financial literacy to teens

Tampa Bay Business Journal, St. Petersburg Times honor FICPA member-firms The Tampa Bay Business Journal recently recognized several FICPA-member firms as finalists for its Best Places to Work awards.

The Journal recognized Concannon Miller & Co., PC; Kingery & Crouse, PA; LS and Company; and Protiviti Inc. in the Nearly Big category. In the Big category, FICPA member-firms Christopher Smith Leonard Bristow & Stanell, PA; and Lewis Birch & Ricardo, LLC were recognized. And in the Bigger category, CBIZ Kirkland, Russ Murphy & Tapp; Cherry, Bakaert & Holland; Grant Thornton; and Kerkering Barberio & Co. were recognized.

QMR Market Research conducted a survey of employees of nominated companies. Questions focused on confidence in senior leaders; team effectiveness; feeling valued; and compensation and benefits.

The St. Petersburg Times named FICPA-member firms Pender Newkirk & Company, CPAs and Gregory, Sharer & Stuart among Tampa Bay’s Top Work Places 2011.

Employees nominated their employers and were surveyed about several topics, including firm practices and policies.

The St. Petersburg Times and WorkplaceDynamics created the Top Work Places 2011 in Tampa Bay Program. Companies were ranked based on leadership; compensation and training; workplace flexibility; and diversity.

Correction

Terry Seaton (right) awards a $25 gift certificate from Seaton Financial Advisors, LLC – an FICPA member-firm – to Bartram Trail High School student Tim Scott for winning the stock-market game. The FICPA launched its Financial Literacy for Teens Program in 2008. Seaton, former chair of the FICPA Financial Literacy Committee, has worked with Christina Johnson’s Accounting 1 class since October 2010 to teach the basics of investing. www.ficpa.org

The March/April 2011 issue of Florida CPA Today included an article entitled “IRS & FL DOR audit coordination: the domino effect.” The article stated that the IRS funds state departments of revenue to expand staffing to increase audit capacity. The Florida Department of Revenue (FL DOR) is statutorily directed to have an interagency agreement with Florida’s Agency for Workforce Innovation for the Unemployment Compensation Tax activities of collection services, which includes the audit program. The FL DOR does not administer the protest process or benefits determination.

The article also stated that state departments of revenue will turn the business over to the IRS. The FL DOR is authorized to share information in accordance with any formalized agreement per Section 213.053(6), Florida Statutes. However, according to the FL DOR, they do not routinely share all audit results with the IRS.

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Student outreach

AICPA releases 2011 Trends report

t

From AICPA and FICPA reports

The AICPA recently released its 2011 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits (Trends) survey report. The report provides the latest information, insights and developments regarding the supply of and demand for undergraduate and graduate accounting students nationwide.

The 2011 edition of the survey focused on bachelor’s and master’s degree programenrollment levels; graduation statistics; growth of degree specialties; demographic changes; and recruitment trends and forecasts.

“As our member firms increase recruiting efforts this year, they rely on knowing there is a solid pool of educated recruits who are well-trained, knowledgeable and enthusiastic about their futures in accounting,” said Glenn Thomas, FICPA Interim CEO-Executive Director. “The Trends report is an invaluable tool for firms to forecast and set expectations for future growth.”

Hiring levels rebound Despite a still-unsteady economy and its repercussions on job seekers, accounting graduates have genuine reason to be

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Number of Florida graduates shows notable increase FICPA data on Florida graduates, as reported by the colleges and universities, shows an impressive increase of 34 percent over the past three years.

The percentage of graduates with bachelor’s degrees grew the most, at 4.2 percent, to 51,036 graduates. The percentage of graduates with master’s degrees increased modestly – 0.6 percent to 17,603. Most accounting professionals (about 65 percent) graduated from public universities, and in Florida, the number is closer to 77 percent.

optimistic. Hiring across all segments has increased since the 2009 survey. Hires with bachelor’s and master’s degrees increased from 25,488 to 33,321 – the second highest level since the survey was launched 40 years ago.

Alicia Cabrera, Campus recruiting leader for PricewaterhouseCoopers (PwC) in Florida, indicated that competition for campus and experienced accounting talent is very high.

“PwC’s business in Florida continues to grow, and that growth is driving demand for top talent. PwC increased campus hires in Florida by 30 percent last year, and we anticipate hiring demand will continue.”

Although there was a decrease in the hiring of graduates with a master’s of taxation degree from 13 percent to 6 percent, the decrease primarily was driven by an increase in the hiring of graduates with a master’s of accountancy degree.

The outlook for bachelor’s graduates is less optimistic. Their hiring percentage fell from 56 percent to 43 percent.

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Service-area demand shifts The past few years have ushered in dramatic changes for accounting graduates and employers alike, and the types of services that are most in demand is no exception.

Since the survey last was conducted in 2009, the largest change in services was an increase in hiring for “other” roles (outside taxation, accounting/auditing and MIS) – most likely consulting services, which grew from 3 percent to 16 percent. In contrast, there was a measurable decrease in hiring for taxation, which fell 10 points from 35 percent to 25 percent.

Looking ahead, there’s a clear indication that a rebound from challenging economic times is well under way. The number of U.S. accounting jobs is expected to grow 22 percent between 2008 and 2018, according to the Bureau of Labor Statistics.

That’s much higher than the average of all professional occupations (17 percent) and translates to almost 280,000 new jobs. >>>

www.ficpa.org

Maclain Benton, FICPA Young CPAs Committee chair, and Brenda Hubbard, FICPA director of academic relations & student initiatives, showcase accounting careers at the Agency for Workforce Innovation’s Take Your Sons and Daughters to Work Day. The event took place at the Florida capitol.

The Florida Agency for Workforce Innovation reports an anticipated 2.59 percent increase in accounting jobs in Florida during the same period. Growth, rather than retirement of the current workforce, will be the reason for two-thirds of these openings.

Key academic areas make the grade There is a range of new degree programs at colleges and universities throughout the country, and interest has waned in several programs that once were highly desirable.

However, survey responses reveal robust enrollment increases at the bachelor’s and master’s accounting-degree levels.

There has been an increase in Florida also. Florida colleges and universities reported 9,144 accounting majors and graduate students, an increase of 10 percent from the previous year and a 37 percent increase from two years ago.

“During the past 10 years we’ve seen about a 75 percent increase in the number of accounting majors at Florida State www.ficpa.org

University,” reported Bud Fennema, chair of the FSU Department of Accounting.

“Much of this growth occurred in the latter part of the past decade, when accounting firms were reducing hiring because of a drastic reduction in staff turnover.

“It’s very satisfying to see that demand for our students is increasing. It allows us to place more students in better positions.”

However, Florida universities are facing capacity issues.

“The University of Florida continues to see strong student demand for its accounting programs. However, faculty resources continue to be a concern,” said Gary McGill, associate dean & director of the University of Florida’s Fisher School of Accounting. “The number of UF accounting graduates has remained stable during the last 20 years, but the number of UF accounting faculty has declined by 24 percent.”

Minority representation decreases slightly The AICPA, CPA firms, universities, state CPA societies and other professional

organizations have focused on diversity in the CPA profession. However, survey data shows a slight percentage decrease in minority representation at the bachelor’s and master’s levels.

“As an accounting professional, I’m pleased to see the increase in enrollment of accounting students in the bachelor’s and master’s degree programs,” noted Tarsha Jacobs, chair of the FICPA Accounting Careers Committee. “I am saddened, however to see the decrease in minority representation in these numbers.

“We will continue our efforts to attract minorities to the profession,” Jacobs said.

“Although they’re not specifically limited to minorities, the Accounting Careers and Money Programs planned for this summer are expected to have a 75 percent representation of minority students.”

For more information or to download the report, visit the AICPA’s website at www. aicpa.org, click on Press and search for 2011 Trends Report.

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Educational foundation

Golf classic raises thousands for scholarships

By Jason Zaborske, FICPA educational foundation development manager

o

Team Risk Avoidance Managers Inc. – Terrell Boone, Greg Feldman and Michael Halfast and Joseph Meyers – and Hooters representatives Selina Cheek and Marina Dahmer (left to right) have a blast at the Ed Foundation’s 10th Annual Golf Classic.

Hooters sponsored the putting contest during the tournament.

On June 10, the FICPA Educational Foundation hosted its 10th Annual Golf Classic at Feather Sound Country Club in Clearwater. Sixty-two golfers participated in the tournament and in several contests, including a $10,000 Hole-in-One Contest sponsored by Keith L. Jones, CPA, and a putting contest sponsored by Hooters.

Players enjoyed refreshments, a buffet and networking during the awards banquet.

The First Place Gross winner of this year’s tournament was the team of Edward Schnell, Paul Vogel, Porter Smith and Charlie Alcott. The First Place Net winner 28

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was LarsonAllen LLP, featuring golfers Jose Valiente, Aaron Crall, Keith Hodgdon and Jennifer Paul.

During the banquet, Golf Committee Chairman Chuck Riggs announced that the tournament raised more than $10,000 to support scholarships for accounting students.

Gulf Coast Chapter receives Make a Difference Award More than a dozen Chapters pledged $37,000 to the FICPA Educational

| July/August 2011

Foundation during the annual Parade of Checks to support Foundation scholarship programs in 2012. This year, the Foundation provided more than $300,000 in scholarships to accounting students throughtout Florida.

Foundation Vice President Gary Margolis announced the winners of the Chapter Champions and Make a Difference awards. Chapter Champions Awards were presented to the three chapters that brought in the most new pledges on a per-membership basis. The Volusia County Chapter took first place, the Miracle >>> www.ficpa.org

Strip Chapter came in second and the Atlantic Chapter was the third-place winner.

Also awarded were the three chapters that contributed the most money, per member, to the Foundation. The first-place winner was the West Florida Chapter. The Gulf Coast Chapter came in second, and the Tallahassee Chapter placed third.

The FICPA Gulf Coast Chapter received the Make a Difference award for pledging $25,000 to start a new endowment in the name of Michael R. Pender, CPA.

Anonymous contribution increases raffle proceeds Thanks to the hard work of the Foundation Board of Trustees, and to an anonymous $500 contribution, this year’s FICPA Educational Foundation Raffle raised $1,550 for the general scholarship fund. The lucky winner of the $500 prize was Mary Shatt with Lifetime Dock & Lumber Inc. The Foundation’s Silent Auction, also a huge success, raised more than $4,500. More than 50 bidders competed for dozens of resort packages, sports memorabilia and jewelry. A football signed by Tim Tebow and a three-night stay at the Gaylord Palms Resort & Convention Center were among the items that received top bids.

For information about getting involved in the 2012 Annual Golf Classic, contact Jason Zaborske, FICPA educational foundation development manager, at (800) 342-3197, Ext. 417, or zaborskej@ficpa.org.

www.ficpa.org

FICPA Educational Foundation Annual Golf Classic sponsors Birdie Gulf Coast Chapter Jacksonville Chapter LarsenAllen LLP Purvis, Gray & Co. Risk Avoidance Managers Inc./ CAMICO Mutual Insurance Company The Hartford USAmeriBank/Connelly, Carlisle, Fields & Nichols West Florida Chapter Par Anderen Bank Morgan Stanley Smith Barney

Hole Hooters Keith L. Jones, CPA FICPA Chapter Atlantic Chapter Southwest Florida Chapter Suncoast Chapter Tallahassee Chapter West Coast Chapter Drink Cart Christopher, Smith, Leonard, Bristow & Stanell, CPAs, PA

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Marketplace POSITIONS AVAILABLE World Fuel Services Corporation, a global leader in the downstream marketing & financing of aviation, marine & land fuel products located in Miami, is seeking to hire a senior auditor who will be responsible for assessing inherent risks related to business activities; evaluating process; developing & executing audit tests; assessing the impact of control deficiencies; & assisting in the development of costjustified, value-added mgmt actions. Requirements – bachelor’s degree in accounting and/or finance, or related discipline; CPA; 3-5 yrs exp in corporate accounting/audit & 2 yrs exp in a senior audit role; Big 4 exp & corporate accounting. Email resume to Mariana Munevar at mmunevar@wfscorp.com.

Tax accountant needed for busy CPA firm in Fort Myers; min 5 yrs exp in tax is required. Knowledge of ProSystems tax program a plus. Interested candidates may email resume to laura@mcscpa.net.

WOFLTV Fox35 in Orlando seeks dynamic staff accountant w/ at least 1 yr exp to perform day-today accounting, financial reporting & P&L analysis.

For more information or to submit resume visit http://www.myfoxorlando.com/subindex/about_us/ work_for_us. EOE/M/F/D/V. Litigation support senior analyst or manager – Tampa Bay CPA firm w/well-established Litigation Support Department is seeking CPA w/the ability to address complex litigation support; business valuation; & forensic accounting issues. The position is responsible for producing & reviewing well-reasoned work product using analytical procedures & creative thinking. Position requires 3+ yrs litigation support exp & ability to work in fast-paced environment.

Salary commensurate w/ exp, excellent benefits. Relocation assistance available. Email resume to hr@lbrllc.com.

OFFICE SPACE Beautiful professional ofcs to share in Fort Lauderdale. Fully furnished. Internet access, phones, copier, fax machine & additional services available. Conference room. Parking. Full kitchen. Kane & Company, PA. (954) 767-0440.

Hollywood/Fort Lauderdale CPA firm has fully equipped ofc space to share. Large private ofc space. Class B+ building located between I-95 & Turnpike. Room for support staff. Conference room; full services; contact cary@jaffeandcompanycpas.com; (954) 985-1040.

Historic landmark office space in the downtown Fort Lauderdale area. Beautiful, functional suites, convenient locations, very reasonable leasing rates. Enjoy where you work. Contact (954) 468-3066 or (954) 401-9974. Visit our website at www. bayoumetoinc.com.

PRACTICES WANTED FOR PURCHASE OR MERGER Tax practitioner located in Palm Beach/Broward Cnty seeking to buy or associate w/retirement-minded practitioner to acquire a small tax & consulting practice between $75,000-$175,000 gross revenue. Not interested in bookkeeping or write-up work. Please contact me at ssiesser@verizon.net.

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Tampa sole practitioner seeks exit strategy. Practice includes audit/ write up/taxes & consultation. Three-yr average fees = $287,500.

Transition period w/merger or buyout acceptable. Please email interest to 658427@gmail.com.

Miami CPA w/well-established practice looking for association or merger w/another sole practitioner. Attractive situation for CPA w/a book of business & interested in profiting from the synergy of combining practices. Ideal for one who has recently started a growing practice. Eventual exit strategy is my motivation. Email responses to reply@ficpa.org and reference C PW 07 08 11.

FOR SALE

Successful transitions require experienced, confidential, professional services you can trust. This is what Akins Professional Brokerage provides. Specializing exclusively in the brokerage of CPA firms, we have no upfront fees. List your firm w/a professional. Call David Akins, CPA, at (877) 277-0272. Visit our website at www.ProfessionalCPAbroker.com.

Buy-Sell-Merge-Finance your practice w/USA’s No. 1 Accounting Brokerage Firm. A Florida-licensed real-estate broker w/ 28 yrs of CPA firm merger-acquisition experience. We have 90% bank financing. Current practices available include: Orlando-Winter Springs $280,000; St. Pete grossing $200,000+; Tampa-Largo grossing $1,200,000; Orlando $500,000+; Ocala $185,000+; West Palm Beach area $750,000+. Many others! Contact Leon W. Faris, CPA (800) 729-9031; Erwin Rosenblatt (772) 692-8746; or Jack Saltman (407) 902-3288 at Professional Accounting Sales. Visit our website at www.cpasales.com.

RATES AND FEES: Members - $95.95 for 35 word minimum; $2.73 per word over 35 words.

Nonmembers - $108.15 for 35 word minimum; $3.09 per word over 35 words. Advance payment is required. Bolding and logos are permissible for an additional fee.

CATEGORIES: Content subject to approval and categories available are: (1) Positions Available, (2) Practices Wanted for Purchase or Merger, (3) Miscellaneous, (4) Office Space, (5) For Sale.

All requests are subject to space availability. Ads run concurrently on Florida CPA Netlink™, www.ficpa.org.

SUBMISSION OF ADS: Email ads to communications@ficpa.org. For more information, contact the FICPA Communications Department at (800) 342-3197 (in Florida) or (850) 224-2727, Ext. 385.

FILE NO. REPLIES: If anonymity is desired, responses can be mailed to the FICPA offices using a file number. The responses will be forwarded to the address provided by the advertiser.

For complete classifieds policies, visit www.ficpa.org/Content/ CPAResources/ClassifiedsJobs/Classifieds.aspx.

www.ficpa.org

New members The Florida Institute of Certified Public Accountants welcomed 275 new members during April and May 2011.

Atlantic Boca Raton: Anna Berman, Joshua Feller, Vicki E. Garfinkel, Elizabeth Leon, Samuel R. Messinger, Custodia Olivieri Boynton Beach: Matthew A. Grossman Brevard County Cocoa: John P. Taldi, Matthew D. Trine Melbourne: Angelique C. Blake, Brian M. Catrett Titusville: Amy L. Robinson Vero Beach: Christina Vorce Broward County Aventura: Ilona Mandel Boca Raton: Anna Topolka Boynton Beach: Khira E. Ruthrauff Coral Springs: Annie L. Ayoung-Chee Davie: Pacita Broido, Lawrence R. Rice, Paul R. Suid Deerfield Beach: Rosetta Hassel Delray Beach: Mabel M. Gonzales Fort Lauderdale: Benjamin J. Cottrell, Mayra L. Cruz Barrera, Michael L. Labinski, Susan K. Miller, Erin J. Parker, Kevin M. Ryan, Michael L. Stock, Sean M. Swanson, Brittney M. Wing, Alexander P. Zachariah Hollywood: Victor H. Aponte, Iliana Ivanova, Jeana D. Ochsner, Nadia E. Roman, Yossef H. Shamir Margate: Lynn M. Baumann Miami: Karuna Khilnani, Stephane Vongxay Miramar: Douglas C. Campbell, Xiomara Hermida Parkland: Michael E. Barton, Melissa Agular, Kathelyn C. Molinares Plantation: William A. Masel Pompano Beach: Diana Diaz, Virginia Moro Port au Prince: Claude B. Labossiere Southwest Ranches: Karen J. Spigler Sunrise: Keisha Chapman Weston: Arlene B. Goodman, Emilio Kachler Wilton Manors: Paul Castilonia Central Florida Clermont: Anna C. Juarez Kissimmee: Carolla J. McCammack Maitland: Fred J. La Londe Minneola: David M. DiLena Orlando: Fauzia R. Bakshi, Michael S. Broderick, Stephen Cagnina, Jose Dalmau, Courtney C. DeVane, Lu F. Dong, Joel W. Eng, Jennifer R. Glasgow, Albert A. Goodman, Christopher S. Greenwell, Jonathan R. Immordino, Jerome P. Kelliher, Charles E. Kramer, Lily Y. Lindauer, Brandon H. Redler, Brenda H. Sealy, Michael D. Sipperley, Stephanie L. Tesfazghi, Seth A. Woods

www.ficpa.org

Oviedo: Kelly A. Carline, Emily G. Ray, Sharon A. Tardrew Winter Park: Robert Maya, Tyler Rice Florida Keys Key West: Sandra L. Mathena, Charles L. Weitzel Plantation: Kenneth J. Plucinsky Sugarloaf Key: Renata Dunn Gold Coast Aventura: Elizabeth M. Sawicki Hialeah: Dayron D. Artola Hollywood: David Friedman, Sarah K. Funk, Vic Leibofsky Miramar: Vivian Yu North Miami: Robyn T. Swaby Gulf Coast Bradenton: Maria D. Casco Fort Myers: Thomas Gano Nokomis: Mark R. Smith Sarasota: Lisa Gill, Amy C. Hunt, Dayle J. Shariff, Peter Smith Tampa: Cristine Torrefranca Venice: Ronald B. Abernethy, Stephen H. Baker Jacksonville Jacksonville: Leah R. Beckwith, Mark T. Cole, Elizabeth Folsom, Lori J. Graham, Michael O’Connell, Lindsee A. Sharp Ponte Vedra: Raymi S. Vontz Ponte Vedra Beach: Carrie N. Griggs St. Augustine: Louis W. Rich St. Johns: Richard A. Ashley Miami-Dade Aventura: Ezequiel Fischer Bal Harbor: Ryan Z. Weinstein Bay Harbor Islands: Theodore H. Brown Boca Raton: Sabrina Esposito Coral Gables: Jose Chao Doral: Andres L. Martinez Hialeah: Rolando Chavez, Cecilia C. Ribera, Sybile M. Sipewa Miami: Jeffrey W. Ardizon, Scarlette Barrios, Stephanie D. Basanta, William C. Block, Girish Chandra, Carlos H. Chaves, Ana B. Garcia, Magdeline Gonzalez, Ricardo F. Hernandez, Berman J. Lezama, Robyn Sachs, Beatriz R. Taboas, Desiree Torres Miami Beach: John D. Goldberg Miami Shores: Felipe Pianelli Miami-Downtown Ipswich: James Henderson Miami: Judy Acevedo, Wilfredo Cata, Yousuf Husain, Ivette A. Rivadeneira, Galina Zavalijs Miami Beach: Michelle C. Adkins Pinecrest: Patrick M. Lunn

Mid-Florida Lake Panasoffkee: Nicole Beissel Ocala: Brian A. Callahan, William R. Siler Miracle Strip Lynn Haven: Lesley L. Miller Panama City: Eric O. Chastain, Keith E. Lemasters, Amber L. Scurlock Panama City Beach: Tina M. Dryden North Suncoast Land O’ Lakes: James A. DeTuccio Port Richey: Vijay Neppalli Spring Hill: Frank X. Ricciuti Trinity: Norman W. Robinson Palm Beach Boca Raton: Robert B. Baxter, Lia M. Sweeney, Monique Troncone Boynton Beach: Jacob O’Brien, Jason L. Powell Delray Beach: David A. Boyd Hobe Sound: Thomas P. Davis Jupiter: Kristi Andrews, Kelly A. Nelson Lake Worth: Pamela K. Brown Lantana: Cindy S. Adair Palm Beach: Melissa A. Gialanella Palm Beach Gardens: Matilde S. Carrillo, Michael P. Floyd, Kathryn V. Rhubee Stuart: Genevieve E. George West Palm Beach: Jason A. Brown, Hong S. Chae, Lisa Paladino, Edward S. Sager Polk County Lakeland: Lena I. Baker, Janet K. Galton Winter Haven: Leon F. Hansen, Jaymie L. Langford Sailfish Okeechobee: Janet Pineda Port St. Lucie: Eddy Lai Stuart: Joseph A. Risse Vero Beach: Melanie R. Ajple South Dade Miami: Federico R. Andres, Sergio A. Bedrinana, Lewis K. Carness, Noah F. Houston, Ileana Ludeiro, Maria M. Toledo, Ethlyn V. Tuitt-Mills Naples: Raymond L. Placid Southwest Florida Bonita Springs: William K. Haller Cape Coral: Catherine Baluch Fort Myers: Brian Criscuolo, Luiza A. Soalca Kanab: Alisa B. Alexander Lakewood Ranch: Donna B. Smith Naples: Kimberly DelcomynJavarinis, Clara V. Guevara, Rob Johnson St. Johns River Orange Park: Sheri B. Shelley St. Augustine: Douglas M. Scarponi

Suncoast Clearwater: Anthony Q. De Santis, Matthew J. Skelton, Donald C. Walker New Port Richey: Jodi Poore, Todd E. Zimmerman Oldsmar: Michael S. Moore Safety Harbor: Louisa C. Moscow Seminole: Rachel M. Paroulek St. Petersburg: Tracy N. Anderson, Melissa A. Curtiss, Michael M. Grey, Trevor C. Hillier, Ross D. Lustman, Don A. Robins Tampa: Gary L. Ziffer Tallahassee Bainbridge: Celeste B. Burke, Dalisha Childree Tallahassee: Ricardo Fernandez, Lawrence Gonzalez, Anna Heitz, Jamie L. Herold, Thomas I. Ott, David F. Strange, David T. Ward Volusia County DeLand: Jolieann E. Kelly, Ginger B. McCormick, John M. Strunks Enterprise: Isaac A. Snipes Ormond Beach: Ryan K. Roberson Port Orange: Brendan K. McKitrick West Coast Apollo Beach: Lucille A. Colmer Bosco Bradenton: Angela L. Marvin Clearwater: Todd W. Gartman, Janice S. Polo, Amy E. Stanton Lutz: Jana A. Grossenbacher, Brad A. Lewis, Stacey B. Traum Riverview: Cassandra E. Mahar Sarasota: Barbara Diederich Tampa: Christopher A. Blocker, Jessica L. Byrn, Frederick P. Cardinale, Sandralis Cordero, Carl D. Cronin, Sharon M. Diaz, Glenn D. Fasani, Grant Gadway, Yizhong Gao, Elyannah C. Hernandez, Joseph N. McElroy, Grant T. Nelson, Christine S. Rolland, John T. Shannon, Tiffany Smith, Aaj Solanki Wesley Chapel: Maribel Grajales West Florida Panama City: Lisa N. Bryant Pensacola: Brian D. McBroom, Trevor S. Redding Out of State Annapolis, Md.: Dominic M. Scine Atlanta, Ga.: Alison N. Wester Charlotte, N.C.: Phyllis S. Fowler Durham, N.C.: Mark E. Burling Freehold, N.J.: Alan Dworkin Merrick, N.Y.: Robert A. Neiman Montville, N.J.: Arthur F. Kobin Northbrook, Ill.: Leslie B Olefsky, Alan M. Shapiro San Juan, PR.: Luis A. Figueroa Washington, D.C.: Courtney G. Holland

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Meeting your clients’ needs along with your own professional needs is a true balancing act.

FICPA Sections provide a secure area to: • Find latest accounting news and trends • Meet other CPAs who have similar accounting/career specialties • Ask and answer industry-specific questions • Find latest accounting-rules changes and case-law updates • Share best practices for your business needs • Give and receive practical, real-world advice

Visit www.ficpa.org/sections, or call (800) 342-3197 (in Florida) or (850) 224-2727, or email sections@ficpa.org.

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FICPA NewsFlash digest To bring FICPA members the most current news and information in today’s fast-paced business environment, the FICPA compiles NewsFlash, a timely assortment of news events happening in the profession. The newsletter is emailed every two weeks, typically on Thursday afternoons.

Here are some of the most popular recent FICPA NewsFlash features. To view the full stories and other NewsFlash briefs, visit our archives at www.ficpa.org/members/newsflash.

June 16, 2011 IRS issues final Circular 230 regulations for Tax Return Preparer Registration Program – The IRS issued final regulations (TD 9527) implementing components of its initiative to register and regulate all paid tax-return preparers. The regulations revise regulations under Title 31, part 10, commonly known as Circular 230.

Member perk: track your CPE credits online – The CPE Tracker is a free, online member benefit that automatically records CPE credit hours earned for every FICPA course you attend.

www.ficpa.org

June 2, 2011 Four Florida CPAs recognized as women to watch – Four Florida CPAs were honored May 20 for leadership excellence at the second annual FICPA Women to Watch Summit. The awards recognize outstanding women in accounting in two categories – Emerging Leaders and Experienced Leaders.

IRS finalizes notable tax-practice regulation – The Department of Treasury and the IRS have issued final regulations related to the use of the term “registered tax return preparer” and those that govern practice before the IRS. The regulations are effective Aug. 2.

May 19, 2011 Tech tip: remove account from an Android device – When you first turn on your Android device, you’ll be asked to set up a Google account. You also can set up others, such as Facebook, Twitter and Flickr.

These accounts also may sync data in the background and change your contacts, calendar and more. Use the Settings app to prevent these accounts from changing data on your phone.

May 5, 2011 2011 license renewal reminder – The following contains important details about your upcoming license renewal for the Jan. 1, 2010 through Dec. 31, 2011 cycle and your CPE requirements for your reestablishment period ending June 30, 2011.

Resources for CPAs who prepare 990s – CPAs who prepare 990 forms this year may want to check out the Exempt Organizations Taxation page on www. aicpa.org. This resource page includes a list of “hidden treasures” on the IRS website.

It also has other information on issues affecting exempt organizations, such as links to regulations on foreign bank and financial accounts reporting (FBAR) and uncertain tax positions (UTP) and filing deadline charts.

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On the move Christoph er

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In compliance with Article IV, Section 6 of the FICPA Bylaws, be it known that a regular meeting of the Board of Governors of the Florida Institute of Certified Public Accountants will be held Thursday, September 22, 2011, at 9:30 a.m. at the Greater Fort Lauderdale/Broward County Convention Center, Fort Lauderdale.

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Clearwater: CBIZ Kirkland, Russ, Murphy & Tapp hired David J. Goddu, Dennis Roberts and Richard Zak as members of their staff.

Fort Lauderdale: Keefe, McCullough & Co. welcomes Eric McAlpin to the position of staff accountant.

Lakeland: NCT Group joined LarsonAllen effective July 1, 2011.

Miami: Berkowitz Dick Pollack & Brant announces that Alex Molieri has joined the firm as an Associate Director of International Tax Services.

Miami: RSM McGladrey recently promoted Sergio de la Fe to National Leader, Strategic Accounts.

Plantation: Friedman, Cohen, Taubman & Company announces the promotion of Lynn Brewer to principal.

St. Augustine: Buttner, Hammock & Company opened their newest office in Suite 3A at 157 Hampton Point Drive off C.R. 210.

Tampa: Cross, Fernandez & Riley added Robert E. White to their executive team as a tax partner.

Tampa: Pender Newkirk & Company announces that Nick Turner has joined the firm as tax senior accountant.

Vero Beach: Michael L. Ward of Curtis, Ward & Associates resigned from the firm to become the first full-time rector of St. Mark’s Anglican Church.

West Palm Beach: Templeton & Company announces the promotion of Christopher Cothran to partner.

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WHO’S NEWS Steve Brettholtz of Myers, Brettholtz & Company in Fort Myers served as moderator and speaker at the American Resort Development Association’s Annual Convention and Exposition in Orlando.

Kerkering Barberio & Co. in Sarasota recently completed its first Walk Around the World. In November 2010, 56 of the firm’s 106 staff members participated in the challenge to walk, run, bike and swim a total of 24,900 miles – the approximate distance around the world. The group finished the trip in April 2011, well ahead of the one-year goal, with a total of 26,593 miles. The initiative was part of an effort to advance the firm’s Wellness Program.

Lena Combs of Averett Warmus Durkee Osburn Henning in Orlando served as a speaker at the American Resort Development Association’s Annual Convention and Exposition in Orlando.

Myers, Brettholtz & Company, along with Roetzel & Andress, recently hosted a panel discussion titled “Condominiums & HOA’s Real Challenges in Today’s Economic Environment.”

Victoria Loyola of Markham Norton Mosteller Wright & Company in Fort Myers passed the exam and met the requirements to become a certified public accountant.

Karen Mosteller of Markham Norton Mosteller Wright & Company in Fort Myers is celebrating 25 years of employment with the company.

Richard A. Pollack of Berkowitz Dick Pollack & Brant in Miami earned his certification as a certified insolvency and restructuring advisor (CIRA) from the Association of Insolvency and Restructuring Advisors (AIRA).

For more news about members and other Florida CPAs, visit CPAs in the Spotlight at www.ficpa.org/Content/News/Spotlight.aspx.

The space for Who’s News, Transitions and other announcements published on this page is limited to news focusing on promotions and new hires for FICPA members; speeches by members at professional conferences; and other firm news, such as recognition of business achievements. We do not publish FICPA committee appointments as a part of this feature because of space limitations.

Submissions for On the Move can be emailed to communications@ficpa.org.

www.ficpa.org

Class Act.

Invest in Knowledge

Four class-act FICPA university conferences will jump start your mind. Fall into an instructive look at critical accounting topics while enjoying beautiful, campus surroundings. Grow your knowledge of trends in accounting and auditing, legislative issues and industry best practices.

University of South Florida Accounting Conference (10 AA/6 TB) Oct. 27-28, 2011 Tampa Florida State University Fall Accounting Conference (TBD) Oct. 27, 2011 Tallahassee Florida Gulf Coast University Accounting and Tax Conference (10 AA/6 TB)

Oct. 27-28, 2011 Ft. Myers – Estero University of Florida Accounting Conference (10 AA/6 TB) Nov. 3-4, 2011 Gainesville

www.ficpa.org

For more information, visit www.ficpa.org/cpe, or call (850) 224-2727, or (800) 342-3197 (in Florida).

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Florida Institute of Certified Public Accountants P.O. Box 5437 Tallahassee, FL 32314-5437