FALL 2023
FREE STATE ACCOUNTANT
FALL 2023
CONTENTS 2023-2024 Board of Directors
President
Donya Oneto, CPA
1st Vice President
Ellen Silverstein, CPA
2nd Vice President
Hannah Coyle, EA
Secretary
Jonathan Rivlin, CPA
Treasurer
Ann F. Elliott, EA
Delegate
Matthew T. Eddleman, EA
Delegate
Michael McIlhargey, CPA
Delegate
Michael L. Kohler, EA
Delegate
Nicole Moore, EA
Delegate
Sean Coggins, CPA
Past President
Barbara J. Smith, CPA
Board of Trustees Delegate
Christine Giovetti, CPA
Executive Director
Gigi Hawkins
2 Executive Director's Corner 4 How You Could Make a Difference with Maryland Volunteer Lawyers Service 5 The Heart of Small Business Success: Leading Employees with Care 6 Understanding the Corporate Transparency Act: Compliance Requirements and Penalties for Businesses 8 Adapting to Change: Navigating the Future of Accounting with the Discontinuation of QuickBooks Desktop Sales
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"There is no power for change greater than a community discovering what it cares about." - Margaret J. Wheatley
Executive Director's Corner Dear Members of the Society, It is my profound pleasure to reflect on our recent Second Annual Holiday Soirée. This event was not just a gathering, but a vibrant celebration of our profession's passion, dedication, and community spirit. A Night of Joy and Connection The soirée was a melting pot of joy, laughter, and meaningful connections. Our members, hailing from various corners of the accounting and tax community, came together in a festive atmosphere, united by a shared passion for our field and a commitment to philanthropy. It was a delightful opportunity to host an array of guests, including our scholarship recipients, esteemed sponsors, and numerous professionals who contribute richly to our profession.
Celebrating the Future of Accounting A pivotal moment of the evening was honoring the 2023 recipients of the Maryland Society of Accountants Scholarship Foundation. These bright individuals represent the future of accounting. Acknowledging their hard work and dedication was not just an honor but a poignant reminder of the purpose behind our gathering. Their presence reinforced the importance of our commitment to nurturing the next generation of accounting professionals. Fundraising Triumph An equally significant achievement of the soirée was our fundraising efforts for the Scholarship Foundation. I am thrilled to announce that we raised an impressive $3,000, surpassing our initial goals. These funds are crucial for supporting Maryland college students in 2024, ensuring the growth and success of young, promising accountants.
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As we approach the end of a fulfilling 2023, it's heartening to look back on the milestones that have marked this year as a period of significant growth and success for the Maryland Society of Accounting and Tax Professionals. Innovations and Growth In 2023, we have witnessed remarkable growth in our community, welcoming 211 new professionals. To enhance our members' experience, we introduced a partnership with the RightTool for QuickBooks Online, a Google Chrome Extension designed to streamline and improve navigation and efficiency on QuickBooks Online. Furthermore, we launched a partnership with Earmark CPE, offering free podcast-based CPE courses, an innovative approach to fulfilling continuing education requirements conveniently. The Importance of Community and Networking Recognizing the importance of community, we have increased our in-person networking events, including 'Coffee and Conversations' and happy hours. These gatherings are essential for fostering connections and shared learning within our community. We encourage our members to participate more actively in these events, as they are vital for professional growth and support. Exciting Technological Advancements Looking ahead, the MSATP is poised for significant technological advancements. We are in the process of developing a more robust member portal with enhanced community features. This includes a feed, group chats, an improved forum, and the capability for on-demand learning, allowing members to take courses at their convenience. These upgrades are part of our commitment to providing a superior member experience and staying at the forefront of technological innovation in our field. This forward momentum not only propels us toward future successes but also reinforces our commitment to nurturing a vibrant, supportive, and progressive community for accounting and tax professionals in Maryland. Happy Holidays!
Gigi Hawkins
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HOW YOU COULD MAKE A DIFFERENCE WITH MARYLAND VOLUNTEER LAWYERS SERVICE By John Hardt,
LITC Director, Maryland Volunteer Lawyers Service Most professionals go into their field wanting to make a difference, and while everyone may have their own ideas of what making a difference looks like, few would disagree that one of the best ways to improve financial, legal, and tax systems is to make them fairer and more accessible to low-income and underprivileged households. Attorneys and tax professionals answer this call to action with Pro Bono representation, where they accept cases at no charge from clients who need help but couldn’t otherwise afford it. Pro Bono is a long and venerable tradition in the Maryland legal community, and Maryland Volunteer Lawyers Service (MVLS) is an organization at the heart of that tradition. Founded in 1981, MVLS has grown to become the leading provider of pro bono volunteering in Maryland, with over 3,400 clients helped statewide each year. MVLS leverages a large pool of dedicated, professional volunteers to provide pro bono representation across Maryland in civil cases such as family, housing, consumer, expungements, estate matters, and tax controversies. When a client contacts MVLS, we work with them to screen their case and find a volunteer with the skills needed to resolve it, always at no charge. We accept clients who cannot afford legal representation from across the entire state, and we make sure to recruit volunteers from every county as well. At the same time, MVLS staff attorneys build on the positive impact of our volunteers’ work by building meaningful community partnerships and identifying specific inequities that are borne out in our clients’ stories and in the legal system at large. We then use that knowledge to advocate for systemic reforms, at state, local, and federal levels of government.
Despite our name, MVLS volunteers are not just lawyers. Certified Public Accountants and Enrolled Agents are critical contributors to our Low-Income Taxpayer Clinic (LITC), where MVLS helps those with income tax controversies with the IRS, the MD Comptroller, and other state agencies if the client is a resident of Maryland. Clients come to the MVLS LITC when they have few options left. Many have thousands of dollars of debt yet next to no income. Few taxpayers have the knowledge of the tax system needed to seek out collection alternatives on their own, and so without assistance, potential lifelines such as Offers in Compromise, Innocent or Injured Spouse relief, or even measures for just getting more time to pay, are left unused. CPAs and EAs, not just lawyers, can provide critical civil aid in these cases and more. MSATP is a longtime partner of MVLS, and its members have helped hundreds of low-income Maryland taxpayers with their tax disputes. MVLS and MSATP hold joint free online trainings to provide members of both organizations with the practical knowledge needed to take on tax controversy cases, with recordings available to members of both organizations. MVLS hosts two special networking events during the year, and MSATP members have both sponsored and attended. We invite members of the MSATP to join us again in the spring for our A Taste for Pro Bono benefit. More information about these events is online at www.mvlslaw.org/mvls-events. I encourage any CPA, EA, or Attorney looking to make a difference in their community to visit www.mvlslaw.org/volunteer to learn more about volunteering. MVLS volunteers gain access to mentorships, educational materials, and malpractice insurance. MVLS screens each case before seeking placement with a volunteer, and volunteers are free to choose specific cases based on their areas of practice and availability. With our staff attorneys working in many different areas of law, and experienced volunteer mentors, we can help guide new volunteers through their cases. If you are interested in volunteering for the first time, or are looking to reconnect with MVLS, visit www.mvlslaw.org/volunteer or email me at jhardt@mvlslaw.org to get started.
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THE HEART OF SMALL BUSINESS SUCCESS: LEADING EMPLOYEES WITH CARE Tanyeka Alexander, Gaines 4 The Culture LLC.
Running a small business isn’t just about managing operations and generating revenue; it’s also about fostering a culture of care and respect for your employees. One of the crucial steps in achieving this is dedicating time and effort to employee training during the onboarding process. This investment sets the stage for a harmonious working relationship, mutual understanding, and the early identification and resolution of any shortcomings. The backbone of any small business is its employees, the individuals who work tirelessly behind the scenes to make the enterprise a success. Showing appreciation for their hard work is not just a nicety but a necessity. Demonstrating compassion and discretion when it comes to their personal lives, especially when they face family issues, goes a long way in building trust and loyalty.
Empathy and Support: When employees face personal challenges, be empathetic and supportive. Offer resources or assistance where possible. Conflict Resolution: Develop effective conflict resolution strategies to address issues within the workplace before they escalate. Finally, if an employee approaches you with criticism or concerns about their experience within your business, take their feedback seriously. Reflect on how you genuinely treat your employees and be open to making necessary changes. Remember that your employees are your greatest assets, and their satisfaction and well-being directly impact the success of your small business. Ultimately, by caring for your employees, you not only create a positive work environment but also ensure long-term stability and success for your business.
In a small business setting, one of the most vital aspects of caring for your employees is compassion. Suppose you find yourself grappling with high turnover rates and suspect that your communication skills as an employer may be lacking. In that case, it's time to turn the lens inward and examine your emotional intelligence. To retain employees and prevent them from leaving abruptly, consider these strategies: Effective Communication: Ensure open and transparent communication channels within your organization. Encourage feedback, listen actively, and address concerns promptly. Professional Development: Invest in employee growth and development. Offer training opportunities, career advancement, and recognition for their achievements. Work-Life Balance: Promote a healthy work-life balance to reduce stress and burnout. Encourage employees to take time off when needed and support their well-being. Recognition and Rewards: Recognize and reward employees for their hard work and contributions. This can be through bonuses, incentives, or simply acknowledging their efforts. Flexible Policies: Consider flexible work arrangements, especially in a post-pandemic world where remote work is more common. This can help employees better manage their personal lives.
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The Corporate Transparency Act (CTA), enacted into federal law in the United States on January 21, 2021, aims to combat money laundering, financing of terrorism, tax fraud, and other illegal acts through the establishment of a national registry of beneficial ownership information (BOI) for most entities created or registered to do business in the United States. This registry is maintained by the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury. Under the CTA, certain U.S. companies are now
Reporting Deadlines:
required to report their beneficial ownership
Existing Companies formed or registered
information to the Financial Crimes Enforcement
before January 1, 2024, must file their initial BOI
Network (FinCEN), a bureau of the U.S.
reports by January 1, 2025.
Department of the Treasury. A "beneficial owner"
New Companies formed or registered on or
is defined as an individual who directly or
after January 1, 2024, have 90 calendar days
indirectly exercises substantial control over a
from their formation or registration to file their
company or owns or controls at least 25% of the
initial reports, if formed or registered in
ownership interests of a company. This reporting
calendar year 2024. For those formed or
requirement is aimed at enhancing transparency
registered on or after January 1, 2025, the
and aiding law enforcement in tracking the flow
deadline is within 30 calendar days.
of money through corporate entities.
Information to be Reported: Reporting Companies must disclose specific personal information for
Key Updates and Requirements
each “beneficial owner” and “company applicant”
Reporting Companies: The Act applies to both
to FinCEN. This includes legal names, dates of
domestic and foreign Reporting Companies.
birth, current addresses, and identification
Domestic Reporting Companies include
documents with unique identifying numbers (e.g.,
corporations, limited liability companies
passport).
(LLCs), and other entities created by filing
Exemptions: There are 23 exemptions in the CTA
documents with a secretary of state or similar
and Final Rule for certain types of entities,
office. Foreign Reporting Companies are
including regulated entities in the U.S., investment
those formed under foreign laws but
funds industry participants, tax-exempt entities,
registered to do business in any state or tribal
large operating companies, and certain
jurisdiction in the U.S.
subsidiaries.
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Penalties for Non-Compliance: Failure to report
For business owners and accountants preparing
accurately can lead to civil or criminal penalties
for compliance, it is critical to understand these
for both the Reporting Company and
updates and be aware of the specific obligations
associated individuals.
under the CTA. For the most accurate and detailed information, it is advisable to consult legal counsel
Implementation and Compliance
and regularly check updates from FinCEN and
FinCEN is working on finalizing additional
relevant state authorities. Additionally, FinCEN's
rulemakings related to the form for submitting
website and resources like the Small Entity
information, access to BOI information, and
Compliance Guide can be very helpful in
safeguards for protecting this information in
navigating these new requirements.
accordance with the CTA’s security and confidentiality requirements. FinCEN will establish a contact center before January 1, 2024, to field questions from Reporting Companies and stakeholders about the BOI reporting requirements. Small Entity Compliance Guide released by FinCEN in September 2023 aims to assist small entities in complying with the Reporting Rule, providing a user-friendly guide with examples. For businesses that fail to comply with the CTA or miss filing deadlines, the penalties include: 1. Financial Penalties: These start at $500 per day of non-compliance, and can accumulate up to a maximum of $10,000. 2. Criminal Penalties: In more severe cases, criminal penalties could include imprisonment for up to two years.
Sources: Thomson Reuters Institute and Harvard Law School Forum on Corporate GovernanceMorgan Lewis & Bockius LLP: "Corporate Transparency Act: Beneficial Ownership Reporting Requirements for Small, Medium Businesses Effective Jan. 1" Holland & Knight LLP: "The Corporate Transparency Act: An Update" Eide Bailly LLP: "Updates to the Corporate Transparency Act for 2024 and Beyond" THE FREESTATE
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Adapting to Change: Navigating the Future of Accounting with the Discontinuation of QuickBooks Desktop Sales The world of accounting software is witnessing a significant shift with the upcoming changes in Intuit's QuickBooks Desktop products. Intuit has announced that it will cease the sale of new subscriptions for several QuickBooks Desktop products in the United States after July 31, 2024. This strategic decision will impact QuickBooks Desktop Pro Plus, Premier Plus, and Mac Plus. However, it's important to note that this change does not spell the end of these products for current subscribers. They will still be able to renew their subscriptions and receive necessary support and updates. Implications for Accountants and Businesses 1. Transition to QuickBooks Online or Upgraded Desktop Versions: This change is a clear push towards QuickBooks Online, reflecting Intuit's focus on cloud-based solutions. Accountants and businesses using QuickBooks Desktop need to evaluate the feasibility of switching to QuickBooks Online or upgrading to the latest supported versions of QuickBooks Desktop. Each option has its benefits and drawbacks, and the choice will depend on specific business needs and preferences. 2. Continued Support for Existing Subscribers: For those currently using QuickBooks Desktop Pro Plus, Premier Plus, or Mac Plus, the key takeaway is that they can continue their operations as usual. Renewal of subscriptions will still be possible, ensuring ongoing access to updates and support. 3. Security and Feature Updates: Using outdated software versions can pose significant security risks. Thus, staying on supported versions is crucial for maintaining efficient and secure accounting practices. 4. Alternatives and Competitors: The discontinuation opens the market for alternative software solutions that can potentially fill the gaps left by the phased-out Desktop versions. Users should explore these alternatives, focusing on features, integration capabilities, and overall cost-effectiveness. 5. Strategic Planning for Future: This development requires strategic planning for future accounting software needs. Accountants and businesses should consider not just the immediate impact but also long-term implications, including potential shifts in software infrastructure and the need for employee retraining.
QuickBooks Enterprise: A Continuing Option Interestingly, QuickBooks Enterprise remains unaffected by this change, continuing to be a viable option for both new and existing customers. For businesses with complex accounting needs, particularly those involving inventory management, QuickBooks Enterprise remains a robust solution. Migrating to QuickBooks Online For those considering a move to QuickBooks Online, Intuit provides resources and support to facilitate this transition. QuickBooks Online offers a range of features and the added flexibility of cloud-based access, making it a strong contender for many businesses transitioning from Desktop versions. The discontinuation of new sales of some QuickBooks Desktop products marks a significant turning point in the accounting software landscape. It highlights the increasing emphasis on cloudbased solutions and the need for businesses to adapt to changing technological trends. As we approach the July 31, 2024, deadline, it's crucial for users of QuickBooks Desktop to carefully assess their options and plan accordingly to ensure a smooth transition and continued efficiency in their accounting practices
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