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WINTER 2018 | VOLUME 34, NUMBER 7

WHY CAN’T A

PARTNER BE AN

EMPLOYEE? Learn about the complexities associated with treating a partner as an employee.

COVER 2 FULL PAGE AD

CONTENTS PRESIDENT/CEO Deborah L. Curry, CPA, CGMA EDITORIAL COMMITTEE Ryan A. Myers, CPA, chair William C. Quilliam, CPA, vice chair Keith C. Blackman, CPA David J. Hochsprung, CPA Douglas E. Day, CPA David S. Holland, CPA Lynda M. Dennis, CPA Michael S. Kridel, CPA Troy Y. Manning, 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.

8 COVERSTORY

Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/letterstoeditor.

Why Can’t a Partner be an Employee?

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 criteria 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, Ext. 270. © 2017 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.

FEATURES

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Required Minimum Distributions: Benefits and Pitfalls How the Tax Cuts and Jobs Act Compares to Current Law New Reporting Requirements for Domestic Disregarded Entities with a Foreign Owner

24

IRS: Using Third Party Collection Program

26

Robert Half 2018 Salary Guide

DEPARTMENTS

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President’s message Chair’s message News Briefs Staff Reports CPAs in the Spotlight Marketplace Of Course

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PRESIDENT’S MESSAGE

Looking Ahead to a Transformational Year On December 18, 2017, the FICPA relocated to a new office space in Tallahassee.

Although the move didn’t take us far in a geographic sense, our new facilities will allow us to work more strategically as the FICPA continues to expand its presence across the state. We chose the new office location based on criteria that ensures our operational staff can function more efficiently and effectively for many years to come, and ultimately, serve our members better.

DEBORAH L. CURRY CPA, CGMA

We recognize how important it is that CPAs have a voice in the public policy process, and that requires two things: staying informed, and participating in the process.

In addition to our new physical location, the FICPA will be launching a new website in the coming weeks. Our goal in refreshing our online presence is to make our organization easier to access in an increasingly mobile, connected world. As our membership grows, it’s important that we continue to adapt to these changes as an organization. The redesign will make it easier for existing members to find the resources they rely on most, while at the same time making our mission and purpose clear to visitors who aren’t yet involved with the FICPA. As the Florida House and Senate convene for the 2018 Session, FICPA’s Government Affairs team will be monitoring all of the relevant legislation and regulations being debated in Tallahassee. We recognize how important it is that CPAs have a voice in the public policy process, and that requires two things: staying informed, and participating in the process. The FICPA continues to provide resources for members to do both by way of our regular Impact Report updates and advocacy efforts at the State Capitol.

There are several specific legislative developments we will be following this spring: [specific legislative update] Amidst all of the changes happening at the FICPA and across Florida’s accounting landscape, one thing will remain constant: our commitment to serving our members and the profession. We are excited for what’s ahead and look forward to continuing our work alongside all of our members and partner organizations.

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CHAIR’S MESSAGE

Renewing Our Focus on Membership In my time as Chair of the FICPA, I’ve focused heavily on the issue of membership. Recruiting & retaining members is the lifeblood of our organization, and without a growing membership, we simply can’t bring value to our members or the public.

Unfortunately, one of the biggest challenges facing any membership organization, including ours, is how to recruit and retain members over the long term.

As inevitable demographic changes unfold and longtime members retire and move on, we’re left to ask: how do we realign our membership strategy to position the FICPA as a must-join organization in the eyes of young CPAs? A FUTURE-FOCUSED STRATEGY

In January, the FICPA Council will have the opportunity to work through that question (among many others) at its annual Strategy Session in Miami.

The Council will host and hear from Sarah Sladek of XYZ University, a leading expert in helping organizations of all kinds engage and recruit members from generation X and younger, as it develops a truly future-focused membership strategy.

Sladek’s books Talent Generation and The End of Membership As We Know It will provide a framework for the Council’s discussion of these issues.

While most of us can identify why it’s important to recruit new members to the FICPA’s ranks, it’s vital that we also take the time to understand how we should go about doing it. The Strategy Session will provide time for us to re-examine the assumptions underpinning our old membership strategies so that we can establish a common, data-driven vision for our organization’s future – one that will see the FICPA growing vibrantly for years to come.

ALAN WEST CPA

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Together with the XYZ University team, the Council will: 1. Study market trends to learn how younger generations perceive the industry 2. Evaluate available data and metrics to understand the context surrounding current changes 3. Formulate a strategic plan for attracting and retaining young CPAs YOUR INPUT IS NEEDED

Early this year, FICPA members will be receiving surveys that we rely on to gauge how well we’re serving you. We encourage you to provide feedback and help us build a better organization for you & all of our members.

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NEWS BRIEFS

MIAMI

JL Hoffman & Associates Merger

John Hofmann

Accounting and tax advisory firm Kabat, Schertzer, De La Torre, Taraboulos & Company (KSDT) has merged in JL Hofmann & Associates, of Coral Gables, Fla. JL Hofmann & Associates has more than 25 years of experience providing accounting, tax and pre-immigration planning services to multinational individuals, families and businesses. Under the terms of the merger, JL Hofmann’s staff of 6 professionals joined KSDT, where John Hofmann has been named partner.

FICPA BOARD NEWS

Congrats to XXXX 1/3 PAGE AD

The Florida Institute of CPAs would like to congratulate XXXXX on being appointed by Governor Rick Scott to serve on the Florida Board of Accountancy. The Institute would also like to congratulate current board memeber Tracy Keegan on her reappointment to the Board to serve her second term.

SARASOTA

Kerkering, Barberio & Co.– Top 25 Kerkering, Barberio & Co. was honored as one of the 2017 Top 25 Best Places to Work in Sarasota and Manatee Counties by the Sarasota Herald Tribune.

SOUTH FLORIDA

FAUC Faculty Rewarded South Florida-based accounting and advisory firm Daszkal Bolton is donating $50,000 to establish the first endowed professorship at Florida Atlantic University’s School of Accounting. The Daszkal Bolton Fund will provide research support to one new faculty member each year, as nominated by the dean of FAU’s College of Business, based on their accomplishments in the fields of accounting and finance. The Fund recently announced that Robert Pinsker, Ph.D., will be the first award recipient.

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FULL PAGE AD

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WHY CAN’T A PARTNER BE AN EMPLOYEE? Learn about the complexities associated with treating a partner as an employee.

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BY PAUL C. DUNHAM, CPA & GARY A.H. LAURSEN, CPA, JD, LL.M (TAXATION)

O

ver the past several years, it has become a common practice for partnerships to use equity interests to incentivize and compensate management and administrative personnel. On the one hand, the recipients of the equity interests are thrilled as they may be able to participate in the upside value of the entity through their equity ownership, but on the other hand, they do not want to address the income tax filing issues associated with being a partner as opposed to being an employee. The change in status of an employee to a partner includes the fact that the “partner”: 1) will no longer receive a W-2; 2) will receive a guaranteed payment and is responsible for her own employment taxes; 3) will receive a Schedule K-1 to include on her personal income tax return; and 4) may be required to make quarterly estimated tax payments. The concern of dealing with these income tax changes has often led to the continued treatment of the partners as employees.

The purpose of this article is to provide the practitioner with a working knowledge of some of the risks associated with treating a partner as an employee (i.e., “dual status”). Further, a summary of a recent IRS regulation that addresses a structure that taxpayer’s were using to get “dual status” is also discussed.

The IRS’s position is that a partner who performs services for their partnership cannot be classified as an employee (Rev. Rul. 69-184; Reg. Sec. 1.707-1(c); GCM 34001; GCM 34173). Often referred to as “dual status” are there circumstances that a partner can be an employee? – Rev. Rul. 69-184 provides “no”.

As a practitioner, at this point in the article, one may be asking “What is the big deal? – The IRS is getting their payroll taxes on partner “compensation” whether the compensation is reported as a guaranteed payment or on a W-2 as an employee – who cares?” The following section will address the potential risks of inappropriately treating a partner as an employee.

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RISKS OF TREATING A PARTNER AS AN EMPLOYEE

The following is a quick summary of some of the risks of treating a partner as an employee.

Safe harbor provisions of Rev. Proc. 93-27 (receipt of a profits interest for provision of services to the partnership is a nontaxable event if certain conditions are met) may not apply due to the fact that the service provider is still treated as an employee and not a partner.

See also Prop. Reg. §1.83-3(e),(l).

Cafeteria Plans may be disqualified – Partners are prohibited from participating in cafeteria plans.

Treating partners as employees and including them in a cafeteria plan may disqualify the cafeteria plan.

FICA taxes may be incorrect – an employees are responsible for paying their portion of social security taxes as the employer is responsible for paying the other portion of social security taxes. With a guaranteed payment, the partner is solely responsible for self-employment taxes. Further, the partner may have other self-employment income or losses from other sources that could impact the proper amount of self-employment taxes due on their individual return. A misclassification of a partner/employee is likely to create an error in self-employment/payroll taxes paid.

If the partnership qualifies for the Section 199 Deduction, the amount of qualifying wages used in the calculation may be incorrect if a partner was treated as an employee.

Some fringe benefits are not available on a pre-tax basis to partners (see Exhibit A).

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Bonuses paid after year end may be taxable to the partner in the prior year – Employees generally pay taxes on wages when the wages are paid. Guaranteed payments, however, are included in a partner’s income for the year in which the partnership is entitled to a deduction under its method of accounting. For accrual-basis, calendar-year partnerships, bonuses accrued on December 31 of year 1 that are paid on March 15 of year 2 are deductible by the partnership in year 1. Thus, the guaranteed payment for bonuses accrued on December 31 year 1 will be taxable to the partner in that year even though the cash is not received until year 2. This timing issue with guaranteed payments is a critical problem.

State tax returns could be incorrect due to the fact that certain state apportionment factors may be incorrect. – Employee wages may be treated differently from partnership guaranteed payments for state law apportionment purposes.

Therefore, states may disallow any apportionment based on treating partners as employees.

IRS ISSUES TEMPORARY AND PROPOSED REGULATIONS (MAY 2016)

As a general statement, disregarded entities (DRE), such as a single member LLC or a qualified subchapter S subsidiary, are ignored for federal income tax purposes but are generally recognized for payroll tax purposes.

As a way to have partners treated as employees, some practitioners were using a structure (see Exhibit B) whereby a partnership owned 100% of a DRE, and the DRE employed the partners. The partners were then issued W-2s from the DRE. In May of 2016, the IRS issued Temporary and Proposed Regulations that essentially provide that: Partners in a partnership that owns a disregarded entity may not be treated as employees of the disregarded entity. The temporary and proposed regulations state that the rule treating a disregarded entity as a corporation for employment tax purposes does not apply to the employment tax treatment of individuals who are partners of a partnership that owns a disregarded entity.

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To give partnerships that had misclassified partners as employees under the new guidance time to adjust their treatment, the proposed and temporary regulations will not apply until the later of (1) August 1, 2016 or (2) the first day of the latest-starting plan year after May 4, 2016. Plans for this purpose include qualified plans, health plans and cafeteria plans.

Note that the regulations do not address tiered partnerships and it is believed by certain practitioners that in a tiered partnership structure those partners in the upper tier partnership can be employees of the lower tiered partnership so long as they do not have a direct partnership interest in the lower tiered partnership.

IS THE ISSUED SETTLED? – MAYBE NOT

In the preamble to the proposed regulations, the Treasury invites comments on when a partner should be allowed to be treated as an employee, not just in the disregarded entity context, but in the partnership context in general. The IRS appears, therefore, to be willing to consider modifications to the principles of Rev. Rul. 69-184 if it can get comfortable doing so.

For examples of suggested solutions to this problem see ABA comment letter dated December 2, 2011, wherein the suggestion is made that partners who would otherwise qualify as employees and who own ten percent or less of the capital and profits of a partnership (considered de minimis partners) may be classified by their employer partnerships as employees, and the partnership may make a one-time non-revocable election to treat as wages the guaranteed payments for services provided to the partnership by all of its de minimis partners.

CONCLUSION

It has long been settled that for federal income tax purposes a partner cannot be an employee of a partnership.

Although at first glance, there may not appear to be significant risks associated with treating a partner as an employee, this article has outlined certain risks associated with such treatment.

Although the IRS has been very consistent on its stance that partners cannot be treated as employees, it appears that they understand some of the complexities facing businesses today in complying with such rules and are open, given the right circumstances, to permitting “dual status” treatment for certain partners.

PAUL C. DUNHAM is a Tax Managing Director for CBIZ MHM, LLC. in Clearwater, Florida. He is a member of the FICPA Committee on Federal Taxation.

GARY A.H. LAURSEN is a Florida attorney at law and a Florida CPA. He is a tenured associate professor of accounting and law at the Lynn Pippenger School of Accountancy, the Muma College of Business, at the University of South Florida in Tampa. He is a member of the FICPA Committee on Federal Taxation and a Florida university professor member of the Florida Board of Accountancy CPE Committee.

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REQUIRED MINIMUM DISTRIBUTIONS:

Mandatory Benefits and Paying the Piper

BY CAROL A. VANCE ESQ, CPA AND NATHAN WADLINGER ESQ, CPA

B

aby boomers have come of age! For boomers, 2017 is the first year in which Required Minimum Distributions (RMD) must be disbursed from the owner’s traditional IRA accounts resulting in taxes due. As CPA’s we must advise our clients regarding the amount and timing of these RMD to assist them in minimizing taxes and penalties and managing retirement earnings. The estimated median retirement savings for 76 million boomers exceeds 11 billion dollars and the federal government is now anxious to get its share of these tax deferred accounts.

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ROTH IRA’S

Owner Alive The initial owner who contributed to his or her Roth IRA is not required to take any distributions from a Roth IRA regardless of age so long as the Roth IRA was established at least 5 years earlier and is disbursed after age 59.5. Prior to the 5–year holding period or age 59.5 Roth IRA’s maybe distributed pursuant to permanent and total disability, death or under a first time home buyer/builder or rebuilder exception. If distributions are taken without satisfying these rules then ordinary income tax applies to distributions in excess of the contribution basis. A 10% penalty tax is also generally imposed. More exceptions apply to the penalty tax if the distribution is used for unreimbursed qualified medical expenses, unemployed health insurance premiums, reservist distribution, higher education expenses, annuitized payments, government levies and a few other exceptions.

Note that the Roth IRA is the only tax-deferred retirement plan that does not require distribution at a specific age if the owner meets the 5 year and age 59.5 requirements. Many clients know about the major benefit that Roth IRAs provide in allowing tax-free accumulated earnings. However, many clients do not know that RMD are not applicable to Roth IRA owners.

This benefit provides a great planning technique for two reasons: 1. The Roth IRA owner does not have to take out money from the Roth IRA account if he or she has other retirement savings. This can be especially beneficial if the Roth owner has other tax-deferred retirement plans like traditional IRAs and 401(k) plans that have RMDs.

2. Considering the benefit that Roth IRAs provide tax-free accumulated earnings, the owner can avoid distributions and allow the Roth IRA account to grow. The additional growth in the account will continue tax-free. This can be beneficial for not only the owner, but also any beneficiary heirs who will inherit the Roth IRA upon the owner’s death.

Realized Loss A 2% of AGI miscellaneous itemized deduction may be recognized on the total loss the Roth IRA owner incurs.

The loss is calculated by examining the difference between the basis in the owner’s contributions to the Roth IRA and the total distributions received.

This income tax deduction is allowed after the ROTH IRA is 100% distributed but is not permitted for alternative minimum tax.

Owner Deceased All good things must come to an end and the same holds true with Roth IRA owners not having to make any RMD. At some point, all IRAS must have their balances distributed. As discussed above, an owner of a Roth IRA is not subject to any RMD if certain rules are met. Therefore, it is possible the owner a Roth IRA may never make a distribution from the Roth IRA during his or her life. However, this exception only applies during the lifetime of the owner.

Roth IRAs are subject to RMD rules after the death of the Roth owner along with a 50% penalty if such distributions are not made. However, it is still possible for the heir(s) of the Roth IRA to delay the distributions. The rules are different depending on the relationship of the heir to the deceased owner.

A surviving spouse beneficiary owner may delay distributions until the

deceased spouse would have attained age 70.5 or may characterize the Roth IRA as his/her own and may combine it with his/her own Roth IRA. However, a non-spouse designated beneficiary owner may take distributions over the new owner’s life expectancy otherwise, a 5-year rule requires the owner to withdraw the entire Roth IRA by December 31st of the 5th anniversary year of the decedent owner’s date of death.

Converting a Traditional IRA to a Roth IRA A Traditional deductible IRA owner may convert tax-free his or her IRA to a Roth IRA. A withdrawal of a portion or all of the IRA may be made and within 60 days a conversion contribution to a Roth IRA is required.

The total amount of the conversion is subject to ordinary income tax. A conversion is permitted after the traditional IRA began distributed periodic payments and the periodic payments may be resumed from the Roth after the conversion is complete. If any portion of the withdrawal is kept by the owner for more than 60 days it may be subject to the 10% penalty tax. If an IRA owner experiences a period of unemployment, lower taxable income or a significant loss in the IRA’s investment value, a planning opportunity arises. RMD do not qualify for these conversion rules but no age limit applies. A separate Roth account to hold the converted IRA may be prudent to enable the tracking of the 5-year holding period requirement for tax-free distributions.

If a client has a traditional IRA, it is important to advise the client of the potential benefit of converting to a Roth IRA in certain situations. While there will be inclusion of income in WINTER 2018 | FLORIDA CPA TODAY

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the year of conversion, the benefit of not having RMDs may outweigh this income inclusion. This can especially be the case if the client has a year of exceptionally low income and also holds other sources of retirement income that will allow him or her to leave his converted Roth IRA to grow tax-free for his or her heirs benefit.

Compliance When the owner dies prior to the 5-year anniversary of establishing the Roth IRA or converting a traditional IRA to a Roth IRA, earnings on the Roth IRA contributions will be taxed identically to a distribution paid the owner prior to satisfying the 5 year holding period but without the 10% penalty tax. Form 8606 must be included with the distributee’s tax return each year a Roth IRA or traditional non-deductible IRA distribution is received. Roth distributions may not be used to satisfy the RMD for the owner’s traditional IRA’s.

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NON ROTH IRA’S (IRA’S)

Owner Alive Since traditional IRA contributions can be deducted, distributions are subject to ordinary taxes. If any of the contributions were non-deductible or contributed to a separate non-deductible traditional IRA then only the earnings will be taxed with the contributions treated as basis in the IRA. A taxpayer is required to make distributions by April 1 of the year after attaining age 70.5. Bunching of income may occur if the distribution is postponed until after the calendar year of the 70.5 birthday since the second year contribution must be made in the calendar year the owner turns 71.5.

Depending upon the owner’s other sources of income, the timing of this initial RMD payment provides a tax planning opportunity.

IRA owners may avoid ordinary income tax on the RMD by instead excluding any amount up to $100,000 annually from their RMD if the distribution is made to a qualified charity.

Health Savings Accounts may also be maximum funded once during the owner’s lifetime from an IRA during any calendar year to avoid ordinary income tax.

Assiduous septuagenarian IRA owners who intend to work beyond the RMD deadline may defer their RMD by rolling their IRA’s and previous employer’s 401k plans into their current employer’s 401k plan prior to the RMD date. So long as the IRA owner does not own more than 5% of his or her current employer and the 401k plan allows, then the RMD may be postponed until retirement. Of course that working employee may postpone his or her current employer’s 401k, 403b or 457 plan RMD until retirement.

The RMD is calculated by determining all the owner’s non-annuitized IRA account balances at the end of the year preceding the mandatory payment year and dividing this by the owner’s life expectancy or applicable distribution period. The IRS provides and updates the life expectancy and applicable distribution tables annually in Appendix B of Publication 590-B. The tables differ depending upon the marital status of the owner, the age of the spouse or other beneficiary(ies) and the joint annuitant designation on the account. Distributions are not required to be made from all IRA accounts so long as the total disbursed amount equals or exceeds the RMD calculated. This distribution rule is unique to IRA’s and does not apply to other qualified plans. If the distributions made are less than the RMD then a 50% excise tax applies to the deficit withdrawal amount. The excise tax and a request for a reasonable error waiver should be computed and provided on form 5329.

The same early distribution rules apply for traditional deductible or non-deductible IRA’s as applied to the Roth IRA. A traditional deductible IRA is subject to ordinary income tax on the entire early distribution while the non-deductible IRA is subject to tax only on the portion that exceeds the owner’s basis. On the taxable portion, the same 10% penalty tax applies to Roth and traditional IRAs. CPAs should annually file form 8606 maintaining the updated basis the owners has in his or her IRA accounts.

Owner Deceased Prior to RMD Date If the IRA owner dies prior to his or her required distribution date then all future distributions shall depend upon

the beneficiary(ies) named: spouse, individual(s), estate, trust. Some of the specific rules for these beneficiaries are described below.

Owner Deceased On or After RMD Date If the IRA owner dies on or after the required beginning date for his or her RMD then the beneficiaries must compute and distribute the RMD in the year of death using the tables described above. Generally, subsequent distributions must be based upon the longer of the beneficiary’s life expectancy or the owner’s life expectancy.

Beneficiary designations are typically determined on the date of the owner’s death. However if the beneficiary disclaims the IRA, then the beneficiary is determined as of September 30 of the year following the owner’s date

of death. If the beneficiary should die prior to disclaiming and September 30th of the year following the owner’s death then the distribution period is determined based upon the rules for the original beneficiary and not that of the deceased beneficiary’s life or rules.

Surviving Spouse When the IRA owner dies and the surviving spouse is the sole beneficiary then the spouse may elect to treat the IRA as his or her own with a rollover contribution possible or may use the deceased spouse birthdate to determine the RMD. If the surviving spouse dies prior to the year end of the required RMD date then he or she shall be treated as the owner of the IRA for the purposes of the surviving spouse’s subsequent beneficiaries.

For purposes of calculating the RMD, if a spouse is a named beneficiary on January 1 of the year then that spouse shall remain the beneficiary for the entire calendar year regardless of divorce or death occurring in that year.

For purposes of determining the IRA beneficiary if a spouse is a named beneficiary on January 1 of the year then that spouse shall remain the beneficiary for the entire calendar year regardless death, however, a change in beneficiary will occur in the case of divorce. CPAs have planning opportunities with surviving spouse’s rollover options to IRAs or other qualified plans.

Other Beneficiaries Individual beneficiaries who are not the surviving spouse may use the 5 year rule to effectively annuitize the IRA distribution or must use his or her life expectancy tables for calculating the RMD.

HALF PAGE AD 7.375 in x 4.5 in

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If the IRA owner dies prior to the RMD date and names his estate as beneficiary either through his/her IRA plan, will, trust or by dying intestate then a 5 year rule applies. This rule requires the IRA beneficiaries to withdraw the entire IRA balance by December 31st of the 5th year following the owner’s date of death. The disbursement may be periodic or lump sum so long as the entire IRA is withdrawn before the 5 year deadline.

If multiple individual beneficiaries are named and the IRA has not been divided into separate accounts or shares for each of the multiple beneficiaries then the eldest individual beneficiary’s life expectancy shall be utilized to calculate the RMD. If a valid trust is named a beneficiary then each trust designated beneficiary and the rule for multiple beneficiaries applies.

CPAs should consult with their clients to avoid these sometimes undesirable requirements.

Opportunities and Limitations Generally, the traditional IRA distribution rules described herein apply to SEP and Simple IRA’s. Defined Contribution (401k, 403b, 457b) and Defined Benefit plans have similar but separate rules for RMD and are typically calculated by the plan administrator as defined by the internal revenue code and within the contractual terms of those plans.

The traditional IRA owner may invest his or her traditional deductible IRA account into an annuity tax-free. At the time the distributions occur the annuitized traditional deductible IRA payment is subject to ordinary income tax due and to the early distribution and RMD rules. If the owner has any

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basis in the IRA then accurate accountings for the IRA and subsequent annuity basis must be tracked and a form 8606 filed. Of course, the owner may withdraw IRA funds subject to ordinary income tax after age 59.5 and before the RMD age without penalty.

If the owner annuitizes IRA payments prior to the RMD date then those annuity payments will not be considered part of the year end IRA account balance or part of the distribution required under the RMD rules.

IRA owners holding tax deferred U.S. Retirement Bonds in their IRA’s will be taxed on the entire bond value upon attaining age 70.5 even if the bond is not redeemed for cash Traditional IRA investments in collectibles such as Art, Antiques, Gems, Metal (except small gold coins minted by the US Treasury Department), Stamps, Coins and Alcoholic beverages will be taxed as a distribution in the year the investment is made. The 10% penalty tax may also apply.

IRMA Relief – HR 3823 Congress provided Florida resident IRMA victims tax relief from the 10% penalty on $100,000 of distributions made after August 23, 2017 and before January 1, 2019. The distribution from a retirement plan may be repaid within 3 years or may be included in income over a 3 year period.

CPAs can be helpful to their clients by reviewing the IRA beneficiary designations and distribution calculations annually to insure the excise tax will not be assessed. CPAs should also consider the underlying investments in each IRA and Qualified Plan account along with any other estate planning, and retirement needs when determining which IRA accounts should be annuitized, rolled over to qualified plans or depleted first.

CAROL A. VANCE ESQ, CPA bio goes here.

NATHAN WADLINGER ESQ, CPA bio goes here.

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How the Tax Cuts and Jobs Act Compares to Current Law

BY ANTHONY NITTI

A

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New Reporting Requirements

for Domestic Disregarded Entities with a Foreign Owner

BY DAVID CUMBERLAND

A

ny entity that is not recognized for U.S. tax purposes is a disregarded entity.

The most typical and widely-used domestic disregarded entity is a single member Limited Liability Company (SMLLC).

A foreign person is deemed to wholly own a domestic disregarded entity under the new regulations if that person has “direct or indirect sole ownership of the entity.” Indirect sole ownership is defined under the regulations as “ownership by one person entirely through one or more other entities disregarded as entities separate from their owners or through one or more grantor trusts, regardless of whether any such disregarded entity or grantor trust is domestic or foreign.”

If a SMLLC has made the election to be taxed as a corporation, the new regulations do not apply as it is no longer disregarded for U.S. tax purposes.

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BACKGROUND

On December 13, 2016, the Treasury Department and the IRS issued final regulations (T.D. 9796) regarding new reporting requirements for domestic disregarded entities wholly owned by a nonresident, whether the nonresident owner is an individual or an entity.

For the purposes of reporting requirements under Section 6038A, these disregarded entities will be treated as U.S. corporations. These rules are in effect for tax years beginning on or after January 1, 2017, and ending on or after December 13, 2017.

Historically, for tax purposes, a foreign-owned U.S. disregarded entity was just that - disregarded. The reporting taxpayer was the owner of the disregarded entity, whether the owner was an individual or an entity.

Previously there had not been any requirement for these disregarded entities to disclose certain transactions that occurred as the entity was disregarded under the tax code. Under the new rules, this is no longer the case.

Under the new requirements, a domestic disregarded entity will be required to obtain an EIN, prepare a pro-forma Form 1120, and to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. The types of transactions that are covered by this reporting relate to amounts paid or received in connection with the formation, dissolution, acquisition and disposition of the entity, including contributions to and distributions from the entity.

The perception by many countries in the world that are part of the Organisation for Economic Co-operation

and Development (OECD) is that the United States lacks transparency when it comes to corporate activities and ownership. The OECD’s mission is “to promote policies that will improve the economic and social well-being of people around the world.” Unlike many European countries, the United States does not require the public disclosure of ownership of our entities, most notably Limited Liability Companies (LLCs), or the publishing of year-end financial statements for public viewing. These finalized regulations, aim to allow the IRS to better enforce domestic tax laws, increase financial transparency, improve IRS’ access to information to combat perceived misuse of U.S. shell companies, share information with partner tax authorities under treaties and agreements, and support Bank Secrecy Act regulations that impose due-diligence requirements.

WHAT IS THE PENALTY FOR NONCOMPLIANCE?

A $10,000 penalty applies for failure to file the required Form 5472 when due and in the manner prescribed by the IRS or even the failure to maintain records as required by Regulations section 1.6038A-3. There is also a caveat that filing a substantially incomplete disclosure form is the same as if the form had not been filed and can result in a $10,000 penalty. The IRS gives no guidance on what it considers to be a substantially incomplete form. If a taxpayer is notified by the IRS of a failure to file and the failure continues for more than 90 days after notification by the IRS, an additional penalty of $10,000 will apply. There is the possibility of criminal penalties under sections 7203, 7206 and 7207 for failure to submit information or for filing false or fraudulent information.

WHAT MUST BE DONE TO COMPLY?

The form related to this new filing requirement is Form 5472. Under the new regulations, the Form 5472 must be submitted with a corporate tax return.

There is the need to maintain the appropriate records in order to comply with the requirements. Under IRC regulation 1.6038A-3, there is a requirement to maintain records to allow for accurate reporting of transactions.

Such records must be permanent, accurate, and complete, and must clearly establish income, deductions, and credits. This requirement includes records of the reporting corporation itself, as well as to records of any foreign related party that may be relevant to determine the correct U.S. tax treatment of transactions between the reporting corporation and foreign related parties.

The relevance of such records with respect to related party transactions shall be determined upon the basis of all the facts and circumstances.

Among the type of transactions that will require disclosure are sales, cost-sharing transaction payments, rents, royalties, leases, licenses, commissions, loans, interest, etc. Disclosure is required for any listed type of transaction for which monetary consideration (including U.S. and foreign currency) was the sole consideration paid or received during the reporting corporation’s tax year. Disclosure is also required for any transaction or group of transactions if any part of the consideration paid or received was not monetary consideration, or less than full consideration was paid or received.

Transactions with a U.S. related party, however, are not required to be specifically identified on the disclosure form.

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It should be noted that there are potential scenarios that may result in duplicate disclosure, based on the regulations as currently written.

The 2017 Form 5472 provided by the IRS, still in draft form as of the writing of this article, currently requires the inclusion of the Foreign Taxpayer Identifying number (FTIN) of the owner of the disregarded entity, if it has one. This seems to indicate that the information will be shared with the taxpayer’s home country, if not currently, then in the future.

The final regulations not only impose additional reporting requirements on existing taxpayers but also create filing requirements in certain scenarios where prior there had been none.

With the potential for substantial penalties for noncompliance this is a practice area that is fraught with risk.

As our world becomes increasingly interconnected and taxing authorities are sharing more information between them, having an awareness of all of a client’s facts and circumstances becomes increasingly important.

Regs. Sec. 301.7701-2(c)(2)(vi)(A)(2) Regs. Sec. 301.7701-2(c)(2)(vi)(B)(1) 3 http://www.oecd.org/about/ 4 I.R.C. § 1.6038A-3 1 2

DAVID A. CUMBERLAND, CPA/CGMA, is an international tax manager at Kerkering, Barberio & Co. located in Sarasota, FL. David primarily practices in the area of inbound international tax work covering both individual and business tax preparation and consulting. Fluent in Spanish, his emphasis is with international clients or clients with international considerations. Mr. Cumberland is current President of the FICPA Scholarship Foundation, Past-Chairman of the Gulf Coast Chapter of the FICPA, a member of the University of South Florida Sarasota-Manatee Accounting Advisory Council, a recurring speaker at the annual joint FICPA/Florida Bar International Tax Conference in Miami as well as presenting to companies and organizations on international tax topics.

SCENARIOS

SCENARIO

SCENARIO

SCENARIO

A U.S. SMLLC, owned by a foreign individual, holds rental U.S. real estate. In addition to filing his personal tax return, the taxpayer will now have a pro-forma Form 1120 and Form 5472 filing requirement.

A U.S. SMLLC, owned by a foreign corporation, holds U.S. real estate for investment purposes (i.e., not rented).

Previously, neither the foreign corporation nor the SMLLC had a U.S. tax filing requirement until disposal of the real estate. Under the new rules, the SMLLC has a filing requirement every year to report transactions with foreign related parties.

A U.S. SMLLC, owned by a foreign corporation, holds U.S. real estate and rents the property. Previously, the foreign corporation had a corporate filing requirement and a related Form 5472, if applicable. Under the new rules, the foreign corporation is still required to file a corporate tax return and a related Form 5472, if applicable. However, the SMLLC has a corporate filing requirement with disclosure of related party transactions on Form 5472 that can be more comprehensive than what is required to be disclosed by the foreign corporation.

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FLORIDA CPA TODAY | WINTER 2018

IRS: Using Third Party Collection Program

BY RUSSELL DUNN

A

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84%

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RUSSELL DUNN is bio here. Ullam, quae pa arum corum simi, qui consequ istrumet essitatur molorendipsa voloribus.

WINTER 2018 | FLORIDA CPA TODAY

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Robert Half Releases 2018 Salary Guide

BY AUTHOR NAME

R

obert Half recently published its 2018 Salary Guide for Accounting and Finance Professionals, an overview of the latest in compensation, recruiting, and hiring trends in the accounting & finance sectors. The guide is compiled using data obtained by Robert Half via surveys and analysis of its recruiting staff’s job placements throughout the year.

Hot positions include: accounting manager; controller; financial analyst; internal auditor; payroll manager; senior accountant; and staff accountant.

Among the most in-demand skills are: Advanced Excel expertise

Knowledge of SAP, Oracle, and Microsoft Dynamics GP systems Knowledge of cloud-based network systems, such as NetSuite and Workday Data analytics and database management software experience, especially SQL Proficiency in Hyperion (for financial analyst positions) Quickbooks expertise (in small and midsize businesses) Strong communication skills Industry-specific experience Leadership abilities Adaptability and flexibility Ability to collaborate with multiple departments Multilingualism

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FLORIDA CPA TODAY | WINTER 2018

Robert Half’s 2018 Salary Guide provides starting compensation ranges by percentile. A higher percentile indicates a candidate with more experience and/ or skills. The Guide includes local variances for many U.S. cities to calculate salary ranges based on national averages. The above table shows national salary averages for eight positions in corporate and public accounting, along with local-variance calculations for select major Florida cities.

To access Robert Half’s Salary Calculator, or to download a free copy of the 2018 Salary Guide for Accounting and Finance Professionals, visit roberthalf. com/salary-guide.

Portions of this article are reprinted from the 2018 Robert Half Salary Guide for Accounting and Finance with permission of Robert Half.

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VISUALIZATION OF CHART DATA TBD

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STAFF REPORT

FICPA Announces New Technology Support Partnership, Service Discounts New Endorsed Program Helping FICPA Members Migrate to and Manage Cloud Computing Compliant with GLBA, HIPAA, and CJIS SOC 2 Type 2 Unqualified Audit Opinion Data Backup Secure Remote Access Advanced, Reliable Hosting Administration for CPAs

Are you thinking about moving your business data to the Cloud, or adding network hosting support? While data migration and hosting can be daunting endeavors, the reality for CPAs is that your firm’s data and client information are among its most valuable assets. Coaxis International (Coaxis), the FICPA’s newest endorsed program is here to help member companies in securing and managing their data, at very competitive prices.

Information Technology (IT) is found at every CPA practice – bringing with it constant change, complexity and unforeseen threats. Without professional IT management, your firm’s productivity and reputation can be adversely impacted.

“From software and equipment updates to meeting the tech demands of today’s mobile workforce, IT man28

FLORIDA CPA TODAY | WINTER 2018

agement has never been more important, or challenging,” said Christophe Réglat, president and CEO of Coaxis International. “Coaxis is proud to partner with the FICPA.” The CoaxisCPA – Cloud Protected Accounting Support suite from Coaxis features discounted/competitive FICPA member pricing for fully-managed data hosting services and cloud configuration including: Private, Hosted Network Environment Customized for CPAs Affordable - Scaled to Accommodate Small to Large Size Firms QuickBooks® Hosting – Intuit® Authorized Provider Financial Software Hosting Expertise: Thomson Reuters (CS Professional Suite), Wolters Kluwer (CCH Solutions), Intuit®, Drake Software and others

Coaxis understands the challenges CPAs face daily; dealing with strict deadlines, changing tax codes, continual software and cybersecurity updates – all within a diversity of businesses, demographics and weather conditions. “We also understand that these factors increase demands for advanced and reliable IT data hosting administration,” explained Réglat. “Having worked with all sizes and types of CPA firms, our team has gained an understanding for the IT priorities that CPAs encounter daily. In fact, our tech support team has geared up, preparing to work longer hours, cognizant of tax season deadlines and stress.”

“We are honored to be an Endorsed Program for FICPA. We value the opportunity to work with CPA firms across Florida through FICPA,” said Réglat.

Learn more about discounts the CoaxisCPA program, endorsed by FICPA, by visiting: www.coaxissolutions.com/ ficpa or calling Coaxis at 850-391-1022.

JIM HUNT & DREW MILLER

ABOUT COAXIS “FICPA members in need of technology expertise and managed hosting can benefit from this timely endorsed partnership,” explained FICPA President/CEO Deborah Curry. “The financial industry is one of Coaxis’ core market sectors for service and regulatory compliance.” For more than 15 years, Coaxis has been working with CPA firms in the United States, Canada, and India, hosting their data in a highly secure, compliant environment.

COAXIS DATA CENTER IS TIER-4 SECURE

PHOTO OF COAXIS FACILITY

Unlike many IT managed-hosting providers, Coaxis privately owns and operates an advanced, single-tenant data center in Tallahassee. The data center is built, maintained, and operated at Tier 4 level, the highest international standard for data centers as defined by the Uptime Institute.

The center is equipped with multiple power sources and several fiber optic Internet connections from leading national ISPs. With security as its highest priority, the Coaxis data center is protected with more than 10 security levels, including 24/7 monitoring and biometric sensors.

“We provide our clients with confidence, they know exactly where and how their data is securely stored and managed,” said Réglat.

THE COAXIS TEAM The Coaxis tech support team specializes in working with CPAs and configuring customized data hosting to each firm’s specifications. They also are experienced in supporting all the major financial software programs and applications.

For more than 12 years, the company has been certified by Intuit® as one of the select IT firms qualified to host QuickBooks®. Coaxis’ managed hosting solution for CPAs is designed to remove the complexities of maintaining federal and industry compliance, diminish the demands for internal technology infrastructure, and greatly minimize the threat of cybersecurity.

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STAFF REPORT

FICPA Federal Tax Committee / IRS Liaison Meeting To achieve positive results when working with other organizations strong relationships and collaboration are vital. For over 20 year the FICPA Federal Tax Committee and Internal Revenue Service has held the Fed Tax/IRS Liaison Meeting to share ideas, discuss new processes and activity in the federal tax area, and establish relationships.

Recently the FICPA Federal Tax Committee and the IRS held another successful meeting in Tampa. IRS officials presented key messages regarding their operating divisions, with interaction from the Committee.

IRS Divisions reporting included Collections, Examinations, Counsel, Appeals and Criminal Investigations, with the Stakeholder Liaison providing updates on general operations and opportunities. The Taxpayer Advocate Service was also represented at the meeting.

KEY HIGHLIGHTS FROM THE PRESENTATIONS INCLUDE:

Criminal Investigation: Traditional tax investigations are the focus for 2018. This includes any tax fraud, abusive tax schemes, identity theft, questionable refund programs and return preparer fraud, cybercrimes, counterterrorism/terrorist financing and narcotics related crimes. Cybercrimes continue to increase, and each year more resources are necessary to fight these crimes.

As a tax preparer be aware that it is a legal responsibility of businesses and individuals that maintain, share, transmit, or store taxpayer data to have safeguards in place to protect client 30

FLORIDA CPA TODAY | WINTER 2018

information. Data security includes all aspects of your business, so review administrative practices, facility protection, computer security, personnel and information systems. For more information refer to the complete IRS Publication 4557, Safeguarding Taxpayer Data.

Counsel: Tax Court trial sessions are held in Jacksonville, Miami, Tampa, & Tallahassee. Taxpayers can elect to have their case handled using the small case procedures (S cases) if the amount at issue is less than $50,000 per year. The Tax Court allows CPAs

to practice in Tax Court provided they pass a test that is offered by the Court every other year. Even if not admitted to the Tax Court, the Office of Chief Counsel will work with a CPA who is representing a taxpayer if they provide a power of attorney form (Form 2848). It is extremely helpful to IRS Counsel when dealing with pro se taxpayers to be able to work with a tax professional who can help explain issues to the taxpayers and keep them focused on resolving the adjustments at issue. Please note: IRS Counsel is not required to work with a CPA who has not been admitted and may dealing directly with any such CPA who is not adding value to the process. Remember, Counsel wants to get to the right answer. The more documents and facts provided, the better they are able to do so.

Appeals: It is important to provide all requested and/or relevant information to the auditor or revenue officer working the case. Waiting to provide such information to Appeals will generally result in the case being returned to the auditor or referred to the revenue officer for consideration of the new information. Either action could cause delays in resolving the tax matters.

Fast Track Mediation (FTM) lets taxpayers resolve disputes at the earliest possible stage in the collection process. Once your FTM application is accepted, the goal is resolution within 40 days. Benefits of settlement over litigation include speed, cost, flexibility, control and reduced risk. Remember, not all cases and issues are eligible for FTM. Refer to Publication 3605, Fast Track Mediation: A Process for Prompt Resolution of Tax Issues for more information.

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Fast Track Settlement (FTS) offers Small Business/Self-Employed taxpayers an opportunity to resolve tax disputes at the earliest possible stage in the examination process. Once your application is accepted, the goal is resolution within 60 days. It is important to note that FTS does not eliminate or replace existing dispute resolution options, including your opportunity to request a hearing before Appeals or a conference with an IRS manager. If you cannot resolve your dispute through FTS, you still retain all otherwise applicable appeal rights. Benefits of settlement over litigation are the same as those listed for under FTM, and not all cases and issues are eligible. Refer to Publication 5022, Fast Track Settlement: A Process for Prompt Resolution of Small Business and Self Employed Tax Issues and News Release IR-2013-88 (November 6, 2013) on nationwide expansion of SB/SE FTS for more information.

Role of Mediator: Mediators have no decision-making authority, meaning they cannot impose a decision or conclusion over an individual fact or overall issue. Mediators are impartial with no stake in the final settlement reached by the parties. Mediators fulfill their role of helping the parties reach an agreement by: Facilitating communication between the disputing parties; Assisting in identifying core issues or barriers to settlement; Providing perspective and encouragement; Ensuring a level playing field and mutual respect during the session.

An effective component of the meeting is that the Committee is given the opportunity to ask questions, give insights as to what works well and voice concerns and areas that need attention. This provides the participating divisions to hear what the tax professional community is dealing with, and provide answers to the provided answers to various procedural and systemic questions. Some of the questions the Committee posed concerned information and direction with ID theft, medical marijuana, private debt collection and tax reform. The IRS is continually monitoring and planning in these areas.

The FICPA Fed Tax/IRS Liaison meeting has proven to be beneficial for both parties, and in fact the tax practitioner’s hotline was established directly as a result of discussions at a liaison meeting. The FICPA thanks all Federal Tax Committee members for volunteering their time and service to the profession, as well as the Internal Revenue Service personnel for their time and sharing of valuable insights.

Both organizations remain committed to continuing the liaison meetings and building a strong relationship.

IRS personnel contributed to information in this update.

MIKE HOLLAND

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STAFF REPORT

Emerging Leaders Program Brings Young CPAs to Tallahassee As part of the inaugural 2017 FICPA Emerging Leaders Program, the FICPA invited 32 participants from around the state to attend professional development training and networking sessions in Tallahassee, Jacksonville, Tampa, Orlando, Ft. Lauderdale, and Miami.

The program gives young CPAs a unique opportunity to engage with local leaders in the accounting profession and the nonprofit sector, elected officials, and leadership development experts.

On December 5, 2017, the program culminated at the Emerging Leaders Summit in Tallahassee. Program participants and young CPAs from around the state spent the day at the Florida Capitol interacting with Senators, Representatives, and other government officials. Emerging Leaders were given exclusive access to the legislative pro-

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cess, saw the practical applications of civic engagement, and met with fellow CPAs in governmental positions.

It has been exciting to hear the positive feedback from many of the participants from this year’s class. They’ve shared that highlights of the program included the networking opportunities with fellow Emerging Leaders, learning more about their communities, and leaving the program feeling motivated to strengthen their relationships with their colleagues and clients.

The FICPA is proud of the inaugural class of Emerging Leaders and will build off of the experiences from this year for future participants. Stay tuned for more information on the 2018 edition of the program.

Congratulations to all of the Emerging Leader graduates!

JENNIFER ALLEN & SARA SCHEMEDINGHOFF

Emerging Leader Graduates REGION 1: TALLAHASSEE

John Kirk, Audit Manager Michael G. Dupree, CPA, Senior Accountant Brooke Troop, Supervising Senior Tamara Fultz, Tax Manager REGION 2: JACKSONVILLE

Patrick Kmieciak, Assurance Experienced Associate Kristina Sidoti, Audit Manager Kris Hutchins, Tax Manager Chelsey Dukes, Manager Whitney Brown, Experienced Associate Andrew Hetzel, Senior Associate REGION 3: TAMPA

Amanda M. Porupski, Forensic Financial Services Heather Haskin, Audit Senior Manager Daniel Anderson, Audit Manager Brett Mosley, Tax Accountant/Consultant Jack G. Shammas, Tax Professional Trey Bruce, Auditor/Business Consultant REGION 4: ORLANDO

Scott Wagner, Tax Manager Drew Ulloa, Forensic Accountant Natasha Novikov, CPA/CFF, CFE, Forensic Accountant Jamie Ford, Accounting Manager Ryan Herring, Manager Todd Piacentine, Audit Partner REGION 5: FT. LAUDERDALE

Eric McAlpin, Manager Allyse Carter, Tax Senior Alyssa Clark, Tax Senior Associate Alexandra Demosthenes, Sr. Wealth Advisor Shayne Ellman, Audit Manager REGION 6: MIAMI

Cory Rosen, Staff Jason Karukin, Audit Manager Eboni N. Moss, Senior Tax Manager Kelly Weigel, Audit Senior Sophia Schneider, Tax Manager Marcelo Gadia, Senior Associate of Tax Services Jordan Argiz, Manager

Thomson Brock Luger & Company Tipton, Marler, Garner & Chastain, PA Carr, Riggs & Ingram Carroll and Company CPAs PwC Ennis Pellum & Associates, CPAs James Moore & Co DHG PwC PwC CBIZ MHM, LLC Ernst & Young Mauldin & Jenkins Spoor Bunch Franz Cohen & Grieb, P.A. Phillips Harvey Group Carr Riggs & Ingram

Pinnacle Withum Grant Thornton, LLP Grant Thornton, LLP Caler, Donten, Levine, Cohen, Porter & Veil, P.A. Walton Rahal CPAs Investment Advisory Professionals, LLC Gladstone & Company MBAF Ernst & Young Bennett Thrasher, LLP MBAF Crowe Horwath LLP Berkowitz Pollack Brant MBAF WINTER 2018 | FLORIDA CPA TODAY

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STAFF REPORT

Joining The PAC

G400 Visits

SILVER CLUB: $1,000

FICPA is happy to recognize that Ahearn, Jasco & Company, Anthony M. Palermo, Pompano Beach has joined the Florida CPA/PAC. The CPA profession will continue to succeed because of the dedicated elite members of the “Top 250” campaign.

Thank you again to all the firms and managing partners that support the Florida CPA/PAC’s efforts.

Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/ PAC is supported solely by the voluntary contributions of members of the FICPA and others. The Florida CPA/PAC is registered as a corporation with the Florida Division of Corporations and as a Political Committee with the Florida Department of State.

NEED CONTENT

Could we add a deck here, like a short intro sentence that might take up two lines, like this one.

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MIKE HOLLAND

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FLORIDA CPA TODAY | WINTER 2018

FULL PAGE AD

WINTER 2018 | FLORIDA CPA TODAY

35

CPA S IN THE SPOTLIGHT

CENTRAL FLORIDA CENTRAL FLORIDA HILLEL

has welcomed Dana Bial as its new board chair.

DESTIN

FORT MYERS

HBK

TUSCAN & COMPANY, P.A.

is pleased to announce the promotion of Lisa McKenzie, CPA to Senior Audit Manager and Stacey Wilson, CPA to Audit Manager.

Sally Frizzell Coleman, CPA, joins HBK as a Senior Director.

CARR, RIGGS & INGRAM, LLC

is pleased to announce the promotion of Katie Sidrony, CPA, CAM to Partner. Katie has been with the firm since 2006.

Sally Frizzell Coleman, CPA

MELBOURNE SPACE COAST CREDIT UNION Lisa McKenzie, CPA

Stacey Wilson, CPA

MARKHAM NORTON MOSTELLER WRIGHT & CO., P.A. (MNMW) Katie Sidrony, CPA, CAM

DeLAND JAMES MOORE & COMPANY

Jen Kim has joined Markham Norton Mosteller Wright & Co., P.A. (MNMW) as the Executive Assistant for the Litigation, Forensic Accounting, and Mediation Services Team.

The partners and employees of DeLand-based Cohen, Smith & Company, P.A. (Cohen Smith) have joined James Moore & Company (James Moore). Effective immediately, Cohen Smith will be known as James Moore.

FORT LAUDERDALE FISKE & COMPANY

has announced that Marty Williams, CPA/CFF, CFE, has rejoined the firm as Director of Litigation Support Services.

has appointed Hilary Eisbrenner to Chief Financial Officer.

MIAMI KABAT, SCHERTZER, DE LA TORRE, TARABOULOS & COMPANY

Mitchell Stein joins Kabot, Schertzter, De La Torre, Taraboulous & Company as Audit Partner.

Isabel Goldgerg joins Kabat, Schertzer, De La Torre, Taraboulos & Company as Tax Partner.

BERKOWITZ POLLACK BRANT

Jen Kim

Gregory J. Gagné, CPA, CGMA, has rejoined Berkowitz Pollack Brant Announces as Associate Director of Consulting Services.

McHALE, P.A.

Veronica Larriva, a Certified Public Accountant with McHale, P.A. has been named a partner in the firm.

Gregory J. Gagné, CPA, CGMA

Marty Williams, CPA/CFF, CFE

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FLORIDA CPA TODAY | WINTER 2018

Veronica Larriva, CPA

MIAMI LAKES R&L SCHUCK – CPAS, LLC

has added Giovanna Bertran-Schuck to its staff.

POLK HAMIC PREVITE & STURWOLD

THOMAS HOWELL FERGUSON P.A. CPAS

has promoted Ying Wang to Senior Manager; Alyssa Roti, Paola Blackburn, and Elaine Sutter to Manager; and Jeannie Lim to Retirement Plan Specialist all within the Tax Services Department.

has named Jim Noullet, CPA, the director of tax compliance.

FRSCPA, PLLC

David S. Oliver, CPA, CVA, a valuation expert with FRSCPA, PLLC has successfully completed the certification process with the National Association of Certified Valuators and Analysts® (NACVA®) to earn the Certified Valuation Analyst® (CVA®) credential.

WINTER HAVEN

TALLAHASSEE

ADAMSON + CO., P.A.

THOMAS HOWELL FERGUSON P.A. CPAS

congratulates Christie Battles and William Groom on receiving their CPA license.

Christie Battles, CPA

ST. PETERSBURG

William Groom, CPA

Ying Wang

Alyssa Roti

Adamson + Co., P.A. is pleased to announce Mr. Richard W. Morton, CPA, has joined the firm as a Principal.

Paola Blackburn

Elaine Sutter

Richard Morton, CPA

Jeannie Lim

CONGRATULATIONS TO THE WINTER 2018 CPAs IN THE SPOTLIGHT! To be celebrate your colleagues achievements, please email xxxx@ficpa.org.

WINTER 2018 | FLORIDA CPA TODAY

37

MARKETPLACE

PRACTICES FOR SALE

Practices available throughout Florida grossing $200,000 to $2 Million. Ten year bank financing available with 10% down. Confidential, prompt, professional. Let our 34 years of merger-acquisition experience work for you. Visit our website at www.cpasales.com for the latest list of available practices. Call us anytime at 800-729-9031... PROFESSIONAL ACCOUNTING SALES. Looking for a profitable Accounting practice to acquire? View our listings on the web: http://www. akinsprofessionalbrokerage.com/ practices-for-sale/. We specialize in brokering the sale of CPA, EA, tax, and accounting firms. Ready to sell your firm? Want a free estimate of value?

Call David Akins toll free: 877-2770272 or email david@akinsprofessionalbrokerage.com. Financing available!

Retirement minded CPA seeking to sell small south Florida practice. Nice mix of monthly and quarterly work, review, and tax.The practice services are 80% accounting and related services, 20% personal tax. $120,000 gross Will assist in the transition..Excellent opportunity for growth. Contact communications@ficpa.org for more information and reference Ad #133.

N.W. Tampa CPA firm for sale.

Quality tax, review and compilation practice at prime location over 40 years with $400,000+ annual gross including office space for growth by 1 or 2 acquiring principals. Contact communications@ficpa.org for more information and reference Ad #141.

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FLORIDA CPA TODAY | WINTER 2018

Lee county CPA practice for merger, retirement minded practioner. Well established practice, annual gross $250,000 range. Tax, write up monthly, quarterly, annual. Flexible schedule to transition and exit. email Practiceformerger@gmail.com.

OFFICE SPACE

Shared office space with other CPA’s near downtown Sarasota available immediately. Expense sharing possible. Length of lease is flexible. Email inquiries to amast@mastcpa.com or call Allen at (941) 953-5036.

PRACTICES WANTED FOR PURCHASE OR MERGER

Fintz CPA, PA, headquartered in Plantation, FL, is seeking to provide customized succession / retirement options for retirement-minded CPA’s throughout Florida. We have successfully provided custom-tailored succession solutions to many CPAs and would enjoy the opportunity to collaborate with more like-minded CPA’s. Please contact Jack Fintz, jack@ fintzcpa.com, (954) 440-0320.

Growing South Florida CPA firm looking to purchase or merge with a retirement-minded CPA in Florida. Favorable purchase terms offered with continuing employment opportunities available.

Please contact Jeff Taraboulos at info@ ksdt-cpa.com or (305) 670-3370.

Older CPA seeks younger CPA (must have practice) – for cost sharing and for ultimate transition – located Hollywood. Contact: mgflcpa@aol.com or 954-668-1413.

We are a growing 20 person firm looking to purchase or merge with a practice with a small book of business for tax/audit. There could be a possibility of advancement to partner in the near future. Please contact Victor Lerro at victor@vcpa.com or (561) 995-0064.

Lee county CPA practice for merger, retirement minded practioner. Well established practice, annual gross $250,000 range. Tax, write up monthly, quarterly, annual. Flexible schedule to transition and exit. email Practiceformerger@gmail.com.

POSITIONS AVAILABLE

Law Office of Howard L. Schwartz, P.A. – CPA. Job Description: Attorney/CPA seeking CPA with tax experience. Must be reliable, organized and work well with others. Looking for succession planning. Successful candidate will also be able to generate business to add to a existing large practice. This is a successful CPA practice, in addition to a law firm and financial advisory firm. Currently, there is the owner/CPA and CPA candidate. The practice has the ability to grow and is in need of a current CPA for its long term growth. For more information, email sue@howardschwartzpa.com or call (561)997-0000.

Fintz CPA, PA – Job Description: CAREER OPPORTUNITY with Fintz CPA for a full-time Tax Manager.

Applicant must be a CPA with minimum five years applicable tax and management experience. Excellent communication, service, organization-

al and technological skills required.

Ultra Tax and Quickbooks experience preferred. This is a unique opportunity to join a local, family-owned CPA firm with great long-term growth potential for the right candidate. For more information, contact Jack Fintz at jack@fintzcpa.com or call (954)4400320.

Visit www.ficpa.org/classifiedsonline for complete classified ad policies.

2/3 PAGE AD

WINTER 2018 | FLORIDA CPA TODAY

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