Volume 2, Issue 11 July 2010
Photo by Kevin Sink
Inside this issue...
Table of Contents Leadership Summit Recap. . . . . . . . . 4 Executive Committee, Board Meeting. . . . 7 “20 up to 40” Second Session. . . . . . . . 8 Upcoming “20 up to 40” Session. . . . . . .9 Conference News. . . . . . . . . . . . . .10 Upcoming Conferences. . . . . . . . . . . 11 Member News. . . . . . . . . . . 12 Women to Watch Nominations. . . . . 15
From the KSCPA President...
PR Lessons from Oil Spill. . . . . . . . . . . .16 Electric Car Charging Stations. . . . . . . . . . 18 PAC FAQs. . . . . . . . . . . . . . .19 Book Reviews. . . . . . . . . . . .20 From the AICPA. . . . . . . . . .22 From the IRS. . . . . . . . . . .23 Advertising. . . . . . . . . . . . . .26 Classifieds. . . . . . . . . .30
Greetings, July is an important month for the KSCPA because it is retreat time! The Board meets to review our mission and core values, update our strategic initiatives, and develop the initial action plans for the coming year. The retreat is being held at the Sheraton Overland Park on the afternoon of Thursday, July 29 and the morning of Friday, July 30, and is followed by a meeting of the Executive Committee. It is truly an invigorating experience and is facilitated this year by Jennifer Wilson of Convergence Coaching. It is our time to imagine, collaborate, and define just who we are and what we want to be in this sea of change happening around us. The KSCPA is dedicated to implementing strategies that enhance the well being of our members, the accounting profession and the general public.
Editors: Mary R. MacBain, Editor-in-Chief; Lauren R. Tice, Design & Copy Editor Contributing Writers: Scott Cytron, ABC; Dennis Redd, CPA; Larry Kinder; Marlee Carpenter, JD; Linda Snyder Landscape photography: Kevin Sink A special thanks to our advertisers: Accounting Practice Sales & McInnes Group The Kansas Society of Certified Public Accountants, Inc. 100 SE 9th Street, Suite 502 (66612-1213) P. O. Box 4291, Topeka, KS 66604-0291 Phone: 785.272.4366, FAX: 785.272.4468
Statements of fact and opinion are made by authors alone and do not imply an opinion on the part of the officers or members of the KSCPA. Publication of an advertisement in the e-Newsletter does not constitute an endorsement of the product or service by the
The Board consists of 15 directors, each serving a 3-year term and the Executive Committee, composed of the Immediate Past President, President, Vice President/President-Elect, and Secretary/Treasurer. Also invited to attend the retreat are the Executive Director, 5 director nominees for 2010-2011, the AICPA Elected Council Representative, and the KS Board of Accountancy Chair. This year, the KSCPA team will attend the second day of the retreat. Since the strategic plan was initially crafted in 2003, the plan has gone through various stages of development with a revised mission statement, identification of bold steps, revision of the bold steps, and now “The Five Big Rocks.” This issue of Skyscapes includes photos and results of our most recent Leadership Summit. After the initial action plans are delineated at the annual retreat, all members are invited to participate in the Leadership Summits held in November and May. With this continuous input, the KSCPA is able to adapt to the changing landscape of the profession and to focus energies on what brings real value to the membership.
KSCPA e-Newsletter or the KSCPA.
Copyright ©2010 KSCPA. All rights reserved.
When we consider the role of a board of directors, we often limit our thinking to governance, attending board meetings, reviewing finan-
cials, passing motions related to company policy, and listening to reports. Why is this? Many times, directors don’t have the business acumen that matches the needs of the enterprise. Not so with the KSCPA. The composition of the board and members of the KSCPA are well positioned to provide strategic counsel on the diverse needs of the Society. The board actively participates in the ongoing leadership summits and plays an important advocacy role for CPAs in Kansas. Did you know that the average life expectancy of a Fortune 500 company is less than 50 years? We all know that when a small enterprise passes the 5, 10, or 15-year mark, the organization is considered a success! Why is it, then, the KSCPA continues to survive for more than 75 years? In this month’s Skyscapes, one recommended reading is Surviving and Thriving in Uncertainty: Creating the Risk Intelligent Enterprise. Risk management, or risk intelligence, in this case, is a crucial element to the success of any enterprise. And, as the authors point out, managing risk is not avoidance but more “the pursuit of opportunity—or, more precisely, the pursuit of value.” Further, for the KSCPA to not only survive, but also thrive, we need to be both “resilient and agile.” With the current state of the economy, additional regulations and demands placed on the accounting profession, a movement toward global standards, and increased competition for our core service offerings, working together to adapt our strategies will determine our future course of action. I look forward to the retreat and to helping continue to chart a course that secures the future success of the KSCPA and our profession. Best regards,
Gary Gary C. Allerheiligen, CPA President, KSCPA, 2009-2010
KSCPA Leadership Officers
Gary C. Allerheiligen, President, Designated AICPA Council Representative
John H. Bruckner, Vice President & President Elect Robert Schuster, Secretary/Treasurer L. Gary Boomer, Immediate Past President
Board of Directors Term Expires 2010
Amy J. Goode Thomas H. Sewell Eric J. Larson Patricia L. Webb Marshal Q. Hull Jeffrey A. Leiserowitz, KSBOA Liaison
Board of Directors Term Expires 2011
Richard K. Dinkel Johanna D. Lyle Greg B. Sevier Nathan L. Spearman Lisa P. Trout Kyle J. Hawk, Elected AICPA Council Representative
Board of Directors Term Expires 2012
Chet Buchman M. Aron Dunn M. George Durler Lewis Erickson Michelle Schneider
Educational Foundation Board of Trustees James T. Clark, Chair Dan S. Deines, Vice Chair John C. Rich, Treasurer Gary C. Allerheiligen John W. Denney Norman P. Hope Jeffrey J. Koch Kanalis A. “Kandy” Ockree
Political Action Committee Denis W. Miller, Chair James T. Clark, Treasurer DeAnn A. Hill Eric J. Larson Leon C. Logan Kathy Mitchell Michael V. Rogers
Board Retreat 2009 Vail, Colorado
Mary R. MacBain, MS, CPA. CITP Executive Director Linda Snyder, Professional Development Director Teresa Keating, Peer Review Admin. & Professional Dev. Asst. Lauren Tice, Membership & Communications Manager Michelle Warnow, Membership Assistant
Skyscapes | July 2010
Big Rock Actions Continue at May Leadership Summit Improve Member Value • Develop Staffing Plan • Leverage Technology as a Strategic Asset • Enhance Professional Development • Legislative Awareness • Champions, co-champions, and task force members met on Thursday, May 13 at the Hilton Airport Wichita to review accomplishments and continue identifying actions necessary to achieve the strategic initiatives outlined by the
› Improve Member Value John Bruckner, Champion; Sean Copp, Co-Champion Accomplishments: • Chapter Support • “20 Up To 40” in 2nd Successful Year • Information on Website Enhanced • Skyscapes Action Items: • Increase BIG/E Membership & Participation • Celebrate CPA Exam Passers • Explain/Communicate Benefits of Membership • Additional Western Kansas Chapter • Increase Participation of Accounting Faculty
› Develop a Staffing Plan Mary MacBain, Champion Accomplishments: • Staff Training • Reviewed Accomplishments & Established Goals • Updated Job Descriptions • Performance Appraisals Completed • Confidentiality Agreements Signed • Human Resource Guidelines Documented & Implemented • Communicated Clearly Defined Goals & Expectations • Membership & Communications Manager Hired Action Items: • Did not meet at May Leadership Summit
› Leverage Technology as a Strategic Asset Jim Wurbs & Jim Boomer, Champions ; Jennifer Wulf, Co-Champion Accomplishments: • Improved Financial Reporting Systems
• • • • •
board at the 2009 board retreat. The Champions updated the board at the board meeting held immediately following the Summit. Here are some highlights:
Technology Requirements Documented Transitioned Outsourced Technology Support Technology & Website Phase I Plan Approved & Funded Technology Modified for Website Interface Technology Phase II Plan Approved
Action Items: • Implement Social Media Communications • Create Sub Task Force for New Technology Communications • Electronic Materials for Professional Development • Skyscapes-Hyperlink from Abstract to Articles on Table of Contents • Survey to Determine if Members Would Use Bank Drafts on Website • Develop New Processes for Financial Transactions from Website • Document & Train KSCPA Team on New Processes • Create Training Tools for Members for New Website • Launch New Website
› Enhance Professional Development Chet Buchman & Gary Schlappe, Champions; Mindi Ormiston, Co-Champion Accomplishments: • Early Registration Discount • Enhanced Marketing • Enhanced Use of On-site Coordinators • On-line Catalog with Registration Links • Reduced Delivery Costs • CPE Tracker Planned for New Website • New Programs for BIG/E Action Items: • Explore Implementation of Learning Ladders • Electronic Materials • Government Employee / Educator Discounts • Increase Web Training
New Locations and Facilities Postcard Marketing & E-mails
› Legislative Awareness Gary Allerheiligen, Champion; Amber Goering, Co-Champion Accomplishments: • Successful 20U40 Day at Statehouse & Legislative Reception • 20U40 Meeting with Senate Majority Leader & House Tax Committee Chair • Executive Director Meeting with Senate Tax Committee Chair • Weekly Podcasts and Bill Trackers • E-mail Update on pertinent Legislative Action • Legislative Executive Committee Updates & Conference Calls • Legislative Information on Both Tax & General Business Issues • Skyscapes Articles • PAC Conference Call W/ Candidate Endorsement & Check Delivery • Legislative Update PowerPoint Developed & Presented Action Items: • Continue Building Relationships with Legislative Leadership • Continue Monitoring Legislative Activity • Position KSCPA as “Expert” on Tax-Related Legislation • Build KSCPA Political Action Committee Account • Enhance Member Communications • Seek Appointment Opportunities for KSCPA Members
Fifty-six Members Participate in Leadership Summit: May 13, 2010
A “gold star” goes to the members who worked to move our Society forward by sharing their ideas and creating action items. At the 2009 Board Retreat held in Vail, Colorado, the participants listed the “20 up to 40” as the KSCPA program for which they are most proud. As evidenced by participation in the Leadership Summit, the program is working. Twenty-six of the participants in the Summit are current members or graduates of the “20 up to 40” program. The KSCPA is creating value for our Young Professionals and a legacy that is a tribute to the leadership of the KSCPA! Thank you!
Skyscapes | July 2010
Taxation and Accounting & Auditing Task Forces Craft Charters, Action Plans at Leadership Summit
Taxation Task Force
Cheryl Hayward, Champion, and Gregg Goodwin, Co-Champion, led a task force of members and invited guest Ed Karl, VP of Taxation at the AICPA in developing the Scope, Mission, and Objectives of the task force. The task force will meet at each leadership summit and as needed to develop strategies that move the KSCPA forward in the area of taxation and to plan professional development events. Scope: The Task Force’s work is intended to address the needs of all Society members in all areas of practice or business who are involved in the area of taxation. The Task Force will focus on (1) providing updated and timely information about taxation, (2) advocacy for Society members and their need to stay aware of taxation issues, and (3) developing practice guidance (training) that will assist
CPAs in industry, government or public practice. Mission: To assure KSCPA members provide high quality, relevant and useful taxation services by (1) indentifying and prioritizing emerging issues and needs for taxation and (2) assisting with related taxation guidance and tools. Objectives: 1. Set-up clear communication channels with our members and influencers. 2. Identify significant legislative and regulatory issues related to taxation matters. 3. Provide quality educational opportunities to ensure all members are kept current on tax laws, regulations, standards, ethics, and other emerging issues. 2010 Action Items: • Promote Volunteer Disaster Assistance Program to Membership • Develop Tax Conferences in June and November • Attend Liaison Meeting at Kansas City IRS Office in June • Support Legislative Awareness
Accounting & Auditing Task Force Aron Dunn, Champion, and Shannon Euliss, Co-Champion, led a task force of members and invited guest Alan W. Anderson, CPA in developing the Guiding Principles Objectives of the task force. The task force will meet at each leadership summit and as needed to develop strategies that move the KSCPA forward in the area of accounting & auditing and to plan professional development events. Guiding Principles: To assure KSCPA members are provided with high-quality, relevant and useful accounting and auditing information by 1) identifying and prioritizing emerging trends and needs for accounting and assurance, 2) providing efficient assistance with emerging trends, guidance and methodologies, and 3) assisting with related accounting and assurance methodology guidance tools as needed (including educational seminars). Objectives: 1. Identify significant trends giving rise to accounting & assurance needs and advocate for our
members as to which potential assurance guidance would best meet their needs. 2. Provide leadership in identifying and prioritizing emerging assurance trends and market needs while engaging users, preparers and influencers toward action. 3. Create alliances with industry, government or other specialized groups to improve member access to new assurance opportunities (the “library” of contacts and guidance). 4. Provide quality educational opportunities to ensure all members are kept current on standards as well as emerging standards. 2010 Action Items: • Cooperate with PD & 20U40 Task Forces on Survey • Generate list of Hot Topics from Peer Review Program • Publish Journal of Accountancy List of Outstanding Exposure Drafts • Identify and Publish Top 15 Issues • Develop Continuity Plan
• • • •
• • •
Provide Industry Focus Information (e.g. Origin or Data Through Reporting) Provide Interpretations and Guidance on Standards Coordinate with Peer Review Committee on New Standards & Issues Partner with Industry Groups to Share Information (Bankers, Insurance, etc) Canvass Membership about Business Decisions & What is Current Happening (Hot Topics, “Road Show” of presentations on Emerging Issues, Webcasts for Members & Their Clients) Provide Link in Skyscapes and on Website to Emerging Issues Develop Website Community Partner with Surrounding Societies to Share in Education
Leadership Summit Attendees
Executive Committee, Board Meet: May 13, 2010
Highlights of Executive Committee Meeting: • • • •
Investment Policy Established for KSCPA Investment Account Annual Review of Dues Needed to Determine Need for Adjustments RFP for KSCPA Audit and Foundation Compilation Released Executive Committee named KSCPA Audit Committee
* “20 up to 40” participant (past or present) Sean Copp *
Member Value - Co Champion
Tanya Dowell *
Caroline Eddinger *
Shannon Euliss *
Amber Goering *
Gregg Goodwin *
Kate Grant *
Lorin Haas *
Matt Hasse *
Reid Hash *
Julie Hunke *
Jill Kruse *
Jaclyn Larson *
Patrick Lowrance *
Highlights of KSCPA Board of Directors Meeting: Motions Passed • Switch to High Deductive Health Plan and Health Savings Accounts for KSCPA Staff • Membership Resignations and Terminations Accepted • Two-year Contract with Outside Lobbyists Approved • Sponsorship of IRS Disaster Program Approved • Additional Capital Expenditure for Electronic Materials Authorized Review and Discussions • Financial Report at April 2010 • International Student Population in Kansas • Faculty Participation in Membership and Dues • Report of Task Force Champions • KSCPA Staff Reports • Board Retreat Announcement – July 29-30, 2010 – Sheraton Overland Park MARK YOUR CALENDARS! Annual Meeting • Professional Issues Update • Leadership Summit • Board Meeting November 17, 2010 – Hilton Airport Wichita ALL MEMBERS WELCOME AND ENCOURAGED TO ATTEND
Jim Myers *
Brian Nyp *
Mindi Ormiston *
Joel Perkins *
Brandon Robinson *
Tim Russell *
Teresa Seymour *
Trisha Spader *
Tom Thornhill *
Jessica Torluemke *
Jennifer Wulf *
Jim Wurbs *
Skyscapes | July 2010
KSCPA Holds “20 up to 40” Leadership Program Second Session: May 12-13 in Wichita For its second session, the 2010 “20 up to 40” participants focused on learning effective group collaboration techniques, working on the 2010 class project, networking with fellow participants, facilitators and sponsors, and participating in the KSCPA Spring Leadership Summit.
KSCPA to Hold Third Session of “20 up to 40” Leadership Program July 15-16 in Hutchinson - Prairie Dunes Country Club
1-3pm: Work on Class Project 3-5pm: Randy Johnston Facilitates “Using Technology to Lead”
6pm: Wingnuts Social Event, Wichita Participants will enjoy a fun Wingnuts baseball game, social, and casual dinner (via party bus) with families, committee members, and facilitators. 8:30-9am: Continental Breakfast 9am-12:30pm: Randy Johnston Cont’d 12:30-1:30pm: Lunch 1:30-4:30pm: Randy Johnston Cont’d
Now Accepting Nominations for 2011 Class The “20 up to 40” leadership program, launched in 2009, provides opportunities for young professionals to develop leadership skills and to network with peers who want leadership roles in the Society, the AICPA, and their communities. Activities include courses from top leadership educators, collaboration through group activities, and social dinner events held throughout the state in 5 unique, day and half sessions. Each participant receives an individual professional photograph, group photograph, and certificate of completion signed by the KSCPA president. The program is open to all members up to the age of 40 and groups are composed of individuals throughout Kansas in public practice, business, industry, government, and education. Participants range from staff accountants to partners, C-suite, faculty, and individual practitioners. Participants are generally nominated by managers in their organizations. Nominations are now being accepted for the 2011 “20 up To 40” program. Click here to make a nomination (self-nominations are welcome). Classes are held in January, May, July, September, and November.
Skyscapes | July 2010
Conference News Governmental, Nonprofit Conference Adds BIG/E Track Another successful Conference was held on May 11-12, 2010 in Wichita. New this year was a special â€œtrackâ€? geared toward topics of interest to public practice and business, industry, government, and education. Featured speakers included Leita Hart-Fanta, Bill Allen, Mike Harnish, and Al Anderson. Ed Karl, the new AICPA Vice President of Taxation in Washington, DC, made his first visit to the KSCPA. He assumed the position on May 1 upon the retirement of Tom Ochsenschlager. Melinda Hitz, Cheryl Hayward, Steve Seawall, and Rodd Miller, members of the KSCPA, also presented. Thank you!
Al Anderson, KSCPA Speaker
Mike Harnish, KSCPA Speaker
Ed Karl, AICPA VP Taxation
Governmental, Nonprofit Conference Date to Change in 2011 Mark your calendars now for the Governmental, Nonprofit, BIG/E Accounting & Auditing Conference to be held May 17-18 at the Hilton Wichita Airport which is a week later than is generally held.
Personal Financial Planning Workshop Held in Overland Park on May 27 Featured speakers at this event included Marie Swift, Tim Schmidl and Jerry Bell. Special thanks to KSCPA members Carl E. Barber and Gerald C. Steffes for their presentations. Gerry has chaired the planning committee for the Personal Financial Planning Workshop for the past several years. Thank you!
w ffes, Chair, Gerald Ste
Conference on Kansas Taxes Held in Topeka One of the highlights of this conference was an update on how the new health care plan will affect Kansas. The program also gave participants unique insights into the Kansas Departments of Revenue, Administration and Labor, as well as updates from the Secretary of State and State Treasurer. Special thanks to Gregg C. Goodwin, KSCPA member from Wichita, who gave an update on recent court cases and to Cheryl Hayward for moderating the conference.
Secretary of State Chris Bi ggs and staff at Tax Conferen ce.
Conference News Cont’d KSCPA Team Contributes to Success of Wichita Chapter American Society of Women Accountants (ASWA) Regional Meeting – “Sunflower Summit”
Gary Allerheiligen, KSCPA President, represents the KSCPA team and addresses the audience at the ASWA Conference held in June at the Hyatt Regency in Wichita.
The KSCPA team donated numerous hours helping with the Sunflower Summit, the 2010 regional meeting of the ASWA by promoting the conference on the KSCPA website, handling on-line registration for over 150 people, processing credit card payments, and providing registration reports. The conference was held on June 24 and 25, 2010 at the Hyatt Regency Wichita. President Gary Allerheiligen represented the KSCPA at the conference, welcoming the participants to Wichita, recognizing the many KSCPA members in attendance, and outlining the benefits of membership in the KSCPA. Member Lori Davis cochaired the highly successful event.
Upcoming Conferences KSCPA conferences are the most popular Professional Development events. They combine networking and fun with education. Young Professionals Conference July 29 Sheraton Hotel, Overland Park
Trends and Technology for the CPA Firm September 17 Ritz Charles, Overland Park
Women’s Track & Women to Watch Luncheon and Presentation September 17 Ritz Charles, Overland Park
Business Valuation Conference October 22 Ritz Charles, Overland Park
60th Annual Kansas Tax Conference November 18-19 Hilton Wichita Airport, Wichita
Heartland Technology Conference December 16, Sheraton Hotel Overland Park
Click here to register today!
Skyscapes | July 2010
Grant Thornton Names Lori Davis Managing Partner Grant Thornton LLP announces the promotion of Lori A. Davis to managing partner of the Wichita office, effective August 1, 2010. As the managing partner, she will be responsible for all office operations including client service and professional matters. Jarod Allerheiligen, the current managing partner, will transfer to the Minneapolis office to serve as the managing partner there effective August 1, 2010. Davis currently is a partner in the Wichita office and serves as the Tax Practice Leader. She is also the Central Regional Representative for the National Women @ Grant Thornton Steering Committee. Davis has over 20 years of experience in public accounting and is active in the Wichita community serving as Chairman of Junior Achievement of Wichita. She is also on the Executive Committee and serves as the Treasurer of Wichita Music Theatre. Davis is the Treasurer of the Genesis Foundation for Fitness and Tennis (GIFT) and is on the Board of Advisors for the University of Oklahoma Master of Business Administration School. She also volunteers as a “Big” in the Bigs in Schools program and was a member of the 2005 Wichita Leadership.
Trisha Spader to Attend AICPA Leadership Academy The AICPA Leadership Academy selected Trisha Spader, CPA, as one of its 25 participants for this year’s program being held in October in Durham, NC. Trisha is a shareholder of McFarren & Magnifico CPAs PA where she is responsible for both business and individual income tax preparation and research. She prepares compilations and reviews and assists clients in the areas of bookkeeping and financial statement preparation. She received her Bachelor of Business Administration from Newman University in 2004 with majors in accounting, marketing, and management. Before joining McFarren & Magnifico in 2005, Trisha worked in the tax department of an international CPA firm where she gained experience in personal, corporate, trust, and not-for-profit tax. Trisha is also a graduate of the KSCPA’s inaugural class of the “20 up to 40” Leadership Program. She continues to actively serve the KSCPA by sitting on the “20 up to 40” committee for the current class. Trisha also serves her community by volunteering as a business plan advisor for Youth Entrepreneurs of Kansas. The AICPA Leadership Academy was developed by Ernest Almonte to “empower the next generation of CPA leaders by providing them with advanced leadership training, access to well-connected professional networks, and opportunities to exercise leadership within the profession. The three-day program that consists of leadership training, networking activities and presentations from some of the profession’s top thought leaders, all conducted in an intimate, interactive workshop setting.” Congratulations, Trisha!
Don’t Miss Out! Ernest Almonte, founder of the AICPA Leadership Academy, is presenting at the Young Professionals Conference on July 29 in Overland Park. Register today!
Member News Continued on p. 14... 12
1st Annual Young Professionals Conference & Reception July 29, 2010 ♦ 1:30 – 6:30 pm Designed for 4 Hours CPE Credit
EXPLORE THE POSSIBILITIES
YPC = KSCPA
MAKE THE CONNECTION Where:
Sheraton Overland Park Hotel at the Convention Center; Overland Park, KS
CPAs up to 40, “20 up to 40” (past & present), students, CPA candidates
Three speakers present topics of interest to young professionals
Reception includes light appetizers & beverages courtesy of KSCPA. KSCPA board members & other leaders will be in attendance. Open to all ages. Ernest A. Almonte, CPA, CFF,CITP,CGFM
Special Guest Presentation
Jim Boomer, CPA.CITP, MBA
“Social Networking Today & into the Future”
Immediate Past Chairman, AICPA (Founder AICPA Leadership Academy) CIO, Boomer Consulting, Inc.
Phyllis Weiss Haserot
President, Practice Development Counsel Not a Member – Join Today! Conference & Reception Reception Only (All Ages) –
“Generational Issues in the Workplace”
To June 15, 2010
After June 15, 2010
CLICK HERE TO REGISTER TODAY or Call 785.272.4366 for More Information Conference Fee Waivers Available to Graduate Student Members 13
Skyscapes | July 2010
Member News Cont’d Phil Watson, CPA From Hutchinson News: Phil Watson, a past president of the KSCPA, was named senior vice president and chief financial officer at First National Bank of Hutchinson. Watson joined The First in May 2009 as controller and head of the Financial Services department. Prior to joining The First, he was with the CPA firm Pierce, Faris & Co. Chartered for 33 years. Rolando Mayans, CPA From Hutchinson News: Rolando Mayans was named senior vice president and chief lending officer at First National Bank of Hutchinson. Mayans joined The First in September 2009 as the head of Commercial Lending. Prior to joining The First he worked in public accounting for nine years and then had a 26-year banking career with several Wichita area banks, most recently with Equity Bank.
Terry Brown, CPA From Hutchinson News: Adams, Brown, Beran & Ball, Chartered is celebrating 40 years of service by Terry Brown, CPA, Partner. Brown joined the firm in June of 1970 shortly after graduating from college in May of the same year. Danielle Devlin From the Manhattan Mercury: Danielle Devlin, a KSCPA student member and 20102011 Byron Bird Scholarship Recipient, has been named Outstanding Senior in Business by Kansas State University’s College of Business Administration. Devlin will complete an internship with Ernst and Young in Kansas City, and then return to K-State in the fall to pursue a master’s degree in accounting and serve as a graduate teaching assistant.
We want to hear what you and/or your firm are up to! Please send any news (birth announcements, engagements, weddings, graduations, promotions, anniversaries, philanthropy projects, etc.) you have to firstname.lastname@example.org.
New Members - Welcome! CPA Members Regina E. Croucher KPMG, LLP Kansas City, MO
James T. Stark Jimmie T. Stark, CPA Leawood, KS
Bradley D. Hanneman Marks Nelson Vohland Overland Park, KS
Kari D. Williams Reinert & Lee CPAs, LLC Lindsborg, KS
Mark S. Hauber Mark S. Hauber, CPA, PA Overland Park, KS Julie Jacques Security Benefit Corporation Topeka, KS Nathan Johnson Lansing Trade Group Overland Park, KS
Student Members Amber Loewen Wichita State University ShaRae Wadel Tabor College
Be a Woman to Watch! The AICPA, Kansas Society of CPAs and several other state CPA societies are honoring female accounting professionals. Do you know a woman in accounting who is worth watching? Nominate someone and she may be the next Woman to Watch. Awards will be given in two categories: ♦ Experienced Leaders ♦ Emerging Leaders
Women’s Track & AICPA/ KSCPA Women to Watch Awards Luncheon September 17, 2010 8am - 5pm Ritz Charles Overland Park Register today!
For details, criteria and nomination form, visit our website at www.kscpa.org.
Nominations Due July 15! Skyscapes | July 2010
PR Lessons Learned from BP Oil Disaster By Scott H. Cytron, ABC
considered writing this column in May just after we first learned about the oil spill in the gulf, but thought the column might quickly be outdated because the spill would be cleaned up by the time this column was due. Boy was I wrong! It’s now late June, and there’s no end in sight for cleanup, let alone stopping the oil leak. At first, I thought British Petroleum handled the spill very well when it told the public it was the group responsible for cleanup, even though the spill may not have entirely been BP’s fault. I hushed the naysayers – my fellow PR colleagues – who said there was way more trouble ahead for BP. Last weekend’s news showed CEO Tony Hayward on his yacht, claiming he needed some private time. The media jumped on this and even interviewed Gulf residents who thought his behavior was shameful. Of course, I realized sooner than last weekend that BP faced a huge PR problem. Every day, it seems BP buries itself deeper and deeper in the mud. The public is distrustful, and for goodness sake, those pictures of birds covered in oil makes my heart sink. OK – you get the picture, so what PR lessons can we learn from the BP spill that we can apply to the accounting profession? I’m quite sure BP employs a huge PR entity with experienced professionals who totally know what they’re doing. I’m also sure the professionals assert themselves whenever they can to advise BP on what to do. Yet, with all of that preparation, expense and time spent, was BP prepared? From the public view, the answer would be “no.” Chances are, in the lifecycle of a business, there will be some kind of problem, and that problem will lead the
media to the business. If you’re a CPA working in business and industry, the possibilities are endless; think Enron, for example. I know that’s an extreme example, but what would happen if you were the CFO and your CEO were accused of embezzlement or insider trading? All of a sudden, you’re in the hot seat, so the best way you can prepare for something like this happening is to do just that – be prepared. Just as you would create a proactive disaster recovery plan, you can create a proactive PR plan to handle the media when they appear on your doorstep. The way to do this is to write a document that covers as many “what if” situations as possible, then provide “action” steps for each situation. You can be prepared by pointing the media to a designated spokesperson for your company, distributing background information you can share with the media and provide other materials that shows you already did the homework. The media will appreciate your stance, and while they certainly won’t back off of the problem, they may treat you a bit more kindly. Spokesperson training is essential. Most of the time,
the designated person to speak on behalf of the company is the CEO or president, but more often than not, this person isn’t trained to answer the kinds of questions reporters ask when they are working on a story. Spokesperson training is typically held over the course of one to two days, with tough questions asked in mock interviews that are taped for review and learning. I’ve neither conducted nor participated in a spokesperson training in which the attendees didn’t walk out feeling smarter and empowered, and this includes anyone who walks in at the beginning of training who says he/ she did not need to attend because the person already knew how to conduct themselves. It doesn’t matter if you’re a CPA working in a business or a CPA working in an accounting practice; preparation is key. A tragedy could occur within a firm
that causes the media to ask questions. Although your firm isn’t on the scale of a large corporation, it, nevertheless, is a viable entity that could suffer huge problems if its reputation were at stake. Part of your PR plan should include your internal audiences, stakeholders or anyone else connected to the company, including clients and customers. If a tragedy occurred, you need to communicate immediately to all your audiences, and you can only do this if you are prepared to act within a very short amount of time. Every situation varies, so there is no one cookie-cutter solution to what you’re going to communicate. However, the more information you can impart without legal repercussions, the better off you’ll be because you were able to tell you audiences what they want to hear: an honest take on the situation and how you’re going to solve it.
Taking time now to write this plan not only saves you hours and hours of work later on; it gives you that precious proactive ability to stay a step ahead of the media and keep your internal audiences informed. Scott H. Cytron, ABC, is a frequent contributor to industry publications covering professional services’ industries, including accounting, healthcare, financial planning, collections and debt, and high-tech. He works with many CPA firms and organizations to increase their recruitment and retention efforts through public relations, communications and marketing strategies. Follow him on Twitter at @scytron, contact him at scott@ cytronandcompany.com and read his blog at www.absolutecytron.com.
Volunteer Opportunities Available: KSCPA Partners with IRS to Provide Disaster Relief When disaster strikes, KSCPA members can now be there to lend a hand. The Kansas Society of CPAs has agreed to serve as a sponsor in the IRS Volunteer Disaster Assistance and Emergency Relief Program. This program allows CPAs to voluntarily assist disaster victims. In the event of a presidentially declared disaster authorizing assistance to individuals, the KSCPA will ask for volunteers to staff FEMA Disaster Recovery Centers or other tax assistance centers established by IRS. These locations provide disaster relief assistance to individuals or businesses. KSCPA members will have the opportunity to use their expertise to assist the IRS at one of these centers to help taxpayers understand the services and benefits that are offered to them. As part of this sponsorship, the KSCPA is looking for members who would be willing to volunteer in the event of a disaster. Members would be assigned a location near their homes. Duties include handing out flyers and/or other publications with disaster relief information, handing out Disaster Kits, answering simple casualty loss questions, etc. Volunteers would not be expected to prepare tax returns and hours would be flexible. If you would be interested in volunteering in the event of a disaster, please contact Lauren at email@example.com to be added to the contact list.
Skyscapes | July 2010
Tax Incentives for Purchase and Installation of Electric Vehicle Charging Stations
By Dennis Redd, President, Dennis G Redd, CPA Chtd, and Larry Kinder, President LilyPad EV
lug-in vehicles (either pure electric or plug-in hybrid) will soon be arriving from almost all major auto manufacturers, and drivers of these vehicles are expected to recharge at work, while shopping, or just around town using an electric vehicle charging station. Organizations that purchase and install these charging stations receive a 50% federal tax creditâ€Ś. in addition to green publicity, a new revenue stream, and increased customer loyalty. The first plug-in vehicles are the Chevy Volt and the Nissan Leaf, and it is estimated that 25% of passenger vehicles will be electric by the year 2020. Almost everyone will charge their vehicle at home overnight, and, similar to gas stations of today, drivers will need a place to charge their vehicles when away from home. Work, and other public places such as shopping centers, theaters, restaurants, when downtown, or just about anywhere they park are possible charging station sites. Businesses with parking facilities have a unique opportunity to install charging stations, creating a new revenue stream, enhancing their green image, and developing customer loyalty, and can do it cost effectively now with a 50% tax credit. For those seeking LEED certification for a new or retrofit building project, electric vehicle charging stations contribute LEED points. The LEED green building certification program encourages sustainable green building and development practices. Other businesses that may benefit from installing charging stations include employers with large parking lots, developers, shopping centers, theaters, restaurants, destination locations, universities and community colleges, park and ride locations, airports, apartment complexes, condo-
miniums, and mixed use developments. Additionally, utility companies, municipalities, counties, and those with fleets are especially well positioned for charging stations. Current Federal Tax Credit Available The federal tax credit is 50% of the cost of the charging station equipment and installation, up to $50,000 per location. The American Recovery and Reinvestment Tax Act of 2009 increased the Alternative Fuel Vehicle Refueling Property Credit to 50% of cost and extended the date to December 31, 2010. Use IRS form 8911 to claim the credit. The tax credit currently applies to charging stations installed by Dec 31, 2010, although there is legislation pending that would extend the tax credit. The equipment must remain in service for 5 years or there is a recapture of a decreasing portion of the credit (see Section 30C(e)(5)). The basis of the property is reduced by the amount of the credit taken. Tax-exempt entity can still benefit from the tax credit because the entity that sells the charging station can themselves take the tax credit after informing the customer in writing that that they are taking the tax credit. This opens a negotiation for the seller to pass part of the tax credit on through to the purchaser in the form of a price reduction. Consumers are eligible for a 50% tax credit, up to $2,000, for installation of a charging station in their home. Purchasers of plug-in vehicles are also eligible for a tax credit of up to $7,500 for the purchase of the vehicles. Conclusion Clients who are candidates for installing charging stations should be informed of the tax credit as well as the reduction in basis of the property to help them make the decision of when to purchase the equipment.
About the Authors: Dennis Redd, CPA is President of Dennis G Redd, CPA, Chtd and a member of the Kansas Society of CPAs. LilyPad EV is the Kansas and Missouri distributor of Coulomb Electric Vehicle Charging Stations, and is the regionâ€™s leading authority on Electric Vehicle Charging Stations. For further information, contact them at www.lilypadev.com.
Frequently Asked Questions: Political Action Committee By Marlee Carpenter, JD, KSCPA Lobbyist The KSCPA Political Action Committee (KSCPA PAC) is an important tool as we continue our advocacy efforts in Topeka. All 125 House members and all statewide officers are up for election in 2010. KSCPA’s relationships with key legislators led to a successful effort to remove a decoupling provision from the tax bill during the 2010 Legislative Session. KSCPA PAC is there to thank legislators for their support during the legislative session and work to elect more legislators who will protect the interests of Kansas CPA’s. Why Invest in KSCPA PAC? Contributing to KSCPA PAC is the easiest way to impact the political and legislative process on behalf of your professional interests. Investment in KSCPA PAC helps keep pro-business legislation alive and help deter harmful bills by ensuring the right people are elected to office. During the legislative session, there are hundreds of groups trying to be heard in the halls of state government. KSCPA PAC is the voice that is speaking for the interests of Kansas CPA’s. Where Does My Investment Go? KSCPA PAC supports state legislators who listen to the views of Kansas CPA’s and who are philosophically aligned with the goals of our profession. PAC contributions send a strong message to candidates that the CPA’s are committed, united and involved in the political process and in the issues important to the CPA professional and business community. Your dollars go to candidates who will listen and support CPA’s in Kansas. Will My Investment Make a Difference? Contributing to the KSCPA PAC is an important part of the political process. No contribution is too small. Many small contributions can be combined to make a big impact. These contributions will be used to support legislators that support our issues. Growing the number of legislators who support KSCPA initiatives will increase our success at the Kansas Statehouse. Please make a contribution to the KSCPA PAC today.
Make a PAC Contribution TODAY! The legislative session is coming to an end, and it is time for our Political Action Committee to work with our lobbyists to determine who will receive campaign contributions from the KSCPA PAC. As part of the dues process, we ask members to contribute $10 to the PAC. Unfortunately, this year PAC contributions were less than $3,000. This is not enough to make an impact on our legislature. We are asking members who didn’t make the $10 contribution to reach into their wallets and make a contribution now. For those who made additional contributions, above the $10. Below is a coupon you can use to send in your contribution. Thank you, Denis Miller, CPA, Chair Jim Clark, CPA, Treasurer
PAC Contribution NAME:_________________________________________________________________________________ MEMBER #: ___________________
PHONE #: ________________________
AMOUNT: (Please make check payable to: KSCPA PAC) $____________ LEGISLATIVE KEY CONTACTS: _____________________________________________________________________ _______________________________________________________________________________________________ _______________________________________________________________________________________________ Kansas Society of CPAs - 100 SE 9th St., Ste. 502 - Topeka, KS 66612-1213 Phone: 785-272-4366 - Fax: 785-272-4468 Skyscapes | July 2010
Books to Add to Your Summer Reading List Recommendation from Gary Allerheiligen, KSCPA President:
Too Big to Fail By Andrew Ross Sorkin From Gary Allerheiligen: This book provides an historical overview and reporter’s insights into the financial crisis of 2008. The book chronicles the lives of the key players in Washington and New York City as they wrestled with the financial crises, deciding which companies would survive and those that could not be saved. While all of us lived through the crisis I am not sure any of us truly understood how close the economy came to collapsing. The pressure on our national financial leaders, specifically Bernanke, Geithner and Paulson was immense. The issues they had to deal with, the analysis they had to make and decipher and the ultimate decisions they had to recommend to Congress were beyond this reader’s ability to conceptualize. This is an exceptional read and I clearly recommend it. It provides us with an unbiased review of the financial system and the intestinal strength and fortitude our leaders had in navigating through the previously unchartered waters.
Recommendations from Gary Boomer, KSCPA Immediate Past President:
Drive: The Surprising Truth About What Motivates Us By Daniel H. Pink From Publishers Weekly on Amazon.com: According to Pink, everything we think we know about what motivates us is wrong. He pits the latest scientific discoveries about the mind against the outmoded wisdom that claims people can only be motivated by the hope of gain and the fear of loss. Pink cites a dizzying number of studies revealing that carrot and stick can actually significantly reduce the ability of workers to produce creative solutions to problems. What motivates us once our basic survival needs are met is the ability to grow and develop, to realize our fullest potential. Case studies of Google’s 20 percent time (in which employees work on projects of their choosing one full day each week) and Best Buy’s Results Only Work Environment (in which employees can work whenever and however they choose—as long as they meet specific goals) demonstrate growing endorsement for this approach. A series of appendixes include further reading and tips on applying this method to businesses, fitness and child-rearing. Drawing on research in psychology, economics and sociology, Pink’s analysis—and new model—of motivation offers tremendous insight into our deepest nature.
Enterprise 2.0: New Collaborative Tools for your Organization’s Toughest Challenges By Andrew McAfee From Amazon.com: “Web 2.0” is the portion of the Internet that’s interactively produced by many people; it includes Wikipedia, Facebook, Twitter, Delicious, and prediction markets. In just a few years, Web 2.0 communities have demonstrated astonishing levels of innovation, knowledge accumulation, collaboration, and collective intelligence. Now, leading organizations are bringing the Web’s novel tools and philosophies inside, creating Enterprise 2.0. In this book, Andrew McAfee shows how they’re doing this, and why it’s benefiting them. Enterprise 2.0 makes clear that the new technologies are good for much more than just socializing-when properly applied, they help businesses solve pressing problems, capture dispersed and fast-changing knowledge, highlight and leverage expertise, generate and refine ideas, and harness the wisdom of crowds. Most organizations, however, don’t find it easy or natural to use these new tools initially. And executives see many possible pitfalls associated with them. Enterprise 2.0 explores these concerns, and shows how business leaders can overcome them. McAfee brings together case studies and examples with key concepts from economics, sociology, computer science, consumer psychology, and management studies and presents them all in a clear, accessible, and entertaining style. Enterprise 2.0 is a must-have resource for all C-suite executives seeking to make technology decisions that are simultaneously powerful, popular, and pragmatic.
StartupNation: America’s Leading Entrepreneurial Experts Reveal the Secrets to Building a Blockbuster Business By Jeff Sloan From Publishers Weekly on Amazon.com: Whether it’s an idea for a new company or the dream of being your own boss, the brothers Sloan provide the inspiration and information needed to make your business fantasy a reality. Serial entrepreneurs, angel investors and creators of the multimedia company StartupNation-which includes a radio show, Web site (Startup Nation.com), e-newsletter and, now, this book-they are enthusiastic ministers of entrepreneurialism. They offer followers the vision, spirit and plan for achieving their goals. But if you’re thinking this “plan” is a business plan, you need to be patient. They spend the first third of the book on developing a “life plan.” This full spiritual inventory leads readers through what they really want, who they really are and what they’re really prepared to do. One’s emotional and physical health will greatly influence the health of one’s business, the authors argue, no matter what that business ultimately involves. Once fully assessed, readers are led to decide what business types are best-suited to them-franchising, licensing, etc.-and are given options for pursuing each. The brothers even provide ideas for uncovering opportunities to fill unmet market needs. Only then do they turn to formulating the business plan. Throughout the book, Sloan & Sloan share their own experiences as inventors of the Battery Buddy, along with those of their radio show callers and neighbors. There is no mistaking this book for a business school product-few charts, no formulas. Yet it offers detailed discussions of the same subjects in a genuinely clear, encouraging and wellmeaning way.
Recommendations from Mary MacBain, KSCPA Executive Director:
The Facebook Effect: The Inside Story of the Company that is Connecting the World By David Kirkpatrick From the Kansas City Public Library: In August, 2008, Facebook signed up its 100 millionth user. Eight months later its 200 millionth user signed up. Today it is closing in on 250 million users. This phenomenal growth rate is unprecedented and shows the allure and power of Facebook. It has become an essential part of the social life of a generation, all around the world. David Kirkpatrick traces the Facebook story from its origins in Mark Zuckerberg’s dorm room at Harvard, where a handful of 19-year-olds devised a way for Harvard students to connect with one another, then with other Ivy League students, then college students more generally, and so on until it became the #1 social networking site on the internet that it is today. For five years Zuckerberg has focused on growth and not profit. His goal was and is for Facebook to dominate (he uses this word) the way people communicate. Drawing on his exclusive inside access, Kirkpatrick tells the story of the handful of friends who came together to make Facebook work, the falling-out among some of them, and the lawsuits over Facebook, threatened and real, that have made news. He describes from the inside the vision, the tenacity, the refusal to compromise - and the immaturity - that have made the company what it is. Facebook aims to change the internet, including internet advertising and marketing, and even mighty Google recognizes the challenge that Facebook poses. Kirkpatrick shows how users around the world have made Facebook a part of the social and political culture of the 21st century, organizing protests against the FARC in Colombia on Facebook and, more recently, against the 2009 Iranian election. This is the inside story of one of the greatest business and social tales of our time. Distributed by Syndetic Solutions, Inc.
Surviving & Thriving in Times of Uncertainty: Creating the Risk Intelligent Enterprise By Frederick (Rick) Funston & Stephen Wagner From Amazon.com: The ability of businesses to survive and thrive often requires unconventional thinking and calculated risk taking. The key is to make the right decisions—even under the most risky, uncertain, and turbulent conditions. In the new book, Surviving and Thriving in Uncertainty: Creating the Risk Intelligent Enterprise, authors Rick Funston and Steve Wagner suggest that effective risk taking is needed in order to innovate, stay competitive, and drive value creation. Based on their combined decades of experience as practitioners, consultants, and advisors to numerous business professionals throughout the world, Funston and Wagner discuss the adoption of 10 essential and practical skills, which will improve agility, resilience, and realize benefits: • Challenging basic business assumptions can help identify “Black Swans” and provide first-mover advantage • Defining the corporate risk appetite and risk tolerances can help reduce the risk of ruin. • Anticipating potential causes of failure can improve chances of survival and success through improved preparedness. • Factoring in velocity and momentum can improve speed of response and recovery. • Verifying sources and the reliability of information can improve insights for decision making and thus decision quality. • Taking a longer-term perspective can aid in identifying the potential unintended consequences of short-term decisions.
Skyscapes | June 2010
From the AICPA...
U.S. Supreme Court Ruling Leaves PCAOB Intact in a Victory for Investors and the Accounting Profession The Supreme Court’s 5-4 June 28th decision on the constitutionality of the PCAOB leaves the agency mostly unchanged. The narrow ruling leaves the board intact and sustains the Sarbanes-Oxley Act of 2002, a major victory for investors and the profession. This ruling means that Congress will not have to take any action and the day-to-day operation of the board will remain unchanged. Barry Melancon, AICPA president and CEO, stated “The decision effectively fixes the constitutionality of the PCAOB by making board members subject to ‘at will’ removal by the SEC and therefore the president. It sustains the continued function of both the PCAOB and Sarbanes-Oxley. As such, the court rejected a transparent attempt to undermine the post-Enron reforms that have served our financial markets well.” A free-enterprise group and a Nevada accounting firm had challenged the legality of the board, arguing that it violated constitutional separation-of-powers principles. The challengers argued that Congress vested the accounting board with widespread and unsupervised government power that couldn’t be checked by the president or the head of a government department. Chief Justice John Roberts wrote the majority opinion and stated that the court was severing the one unconstitutional flaw it found, regarding the removal of PCAOB members. The court emphasized that all other
provisions of the Sarbanes-Oxley Act would remain in effect. “This decision allows for the continued stability and strength of the profession by upholding the critical work done by the PCAOB,” stated Mary MacBain, executive director of the KSCPA. “The court was able to remove specific language in question, while allowing the board’s essential mission and contributions to go uninterrupted.” The decision will prevent any disruption to the public company audit oversight process, a critical factor in the continued strength and stability of our capital markets.” Enacted in the wake of the 2001 financial scandals including Enron and WorldCom, the Sarbanes-Oxley Act established the PCAOB to oversee auditors of public companies. Sarbanes-Oxley requires that auditors of U.S. public companies be subject to register with the PCAOB and undergo regular inspections and review. Section 404 of the law also requires companies to obtain separate audits of their internal financial controls. The Supreme Court decision can be found online: http://www.supremecourt.gov/ opinions/09pdf/08-861.pdf. The case is Free Enterprise Fund v. Public Company Accounting Oversight Board, 08861.
Want to learn more? Go to www.pcaob.org
From the IRS... •
Announcement 10-73 Remind your clients that offer U-V tanning services that a new excise tax of 10% on those services goes into effect July 1, 2010. The tax will be reported on Form 720, item number 140, which will appear on the third quarter revision of Form 720. IR 10-69 Recently enacted federal legislation includes tax-saving opportunities for small businesses for health care and to hire new workers. AFFORDABLE HEATH CARE IR 10-63 The Patient Protection and Affordable Care Act (PPACA) law gives a tax credit to certain small business and tax-exempt organizations that provide health care coverage to employees. Find frequently asked questions as new guidance becomes available. Also see Notice 10-44. R 10-64 Form W11 and Form 941 used to claim the payroll tax exemption for wages paid from March 19 through Dec. 31, 2010 for certain hires, are now available. News from the Social Security Administration (SSA): Most beneficiaries enrolled in a Part D plan whose income is too high to qualify for the “Extra Help,” but who enter the donut hole in 2010, will receive a onetime, tax-free rebate check of $250 to help out with high prescription drug costs. These $250 payments will begin on June. Any questions should go to the SSA. Learn more. Return Preparer Regulations: IRS will soon implement new registration, testing, and continuing education requirements for all tax professionals. All paid tax return preparers must apply for a Preparer Tax Identification Number (PTIN) and register under a new system, projected to be available in September 2010. Beginning in 2011, there will be new testing and continuing education requirements for any paid tax return preparer who is not an attorney, certified public accountant, or enrolled
agent. All paid preparers will come under the rules of Circular 230. Preparer e-File Mandate: Paid tax return preparers who prepare 100 or more individual or trust returns in 2011 will be required to e-file. That number drops to 10 for 2012. If you not already an Electronic Return Originator, start the the process. Find out more at e-file Made Easy. You can also watch a You-Tube video. Special Edition Tax Tip 10-06 IRS Nationwide Tax Forms will be held in Atlanta, Chicago, Orlando, New York, Las Vegas and San Diego.
Other Emergency Planning Tips to Help Your Business Survive a Major Disaster Recordkeeping and Reconstructing Business Records to Help Your Business Survive a Major Disaster RECENT TECHNICAL GUIDANCE •
WEB TIPS OF THE MONTH •
If you see a systemic problem with IRS (not an isolated incident), you can submit issues directly on to the Systemic Advocacy System (SAMS), a program of the Taxpayer Advocate. If accepted as an issue, SAMS gets back to the person who input the issue, and may need to ask to see actual examples of the problem If you wish to attend webinars or phone forums “live” , please subscribe to e news for Tax Professionals to get timely notification to register.If you are unable to attend one, you can find audio and text versions at the IRS Video Portal within a few weeks of the live presentation. http://www.tax.gov/ Recent presentations include: International Tax Form 2848 vs. Form 8821 Retirement Plans New Requirements for Federal Tax Return Preparers ESOP Update Audio presentations offer tips to stay in business after a major disaster: Continuity Planning and Other Tips to Stay in Business after a Major Disaster Insurance Coverage and
IRS Commissioner Doug Shulman on the Filing Deadline for Small Charities. Commissioner Shulman addresses important developments for the international tax and business community. IR 10-68 Read the commissioner’s speech before the American Payroll Association. The IRS Reminds that per Revenue Procedure 09-49 and Revenue Procedure 08-33, you may not include Logos, Slogans, and Advertisements with W2s or 1099s issued after 1231-10. Special Editions of the Employee Plans News page and the Retirement News for Employers are available. New Publication 4853 (or Publication 4853SP in Spanish) is for those who owe Federal taxes. Publication 4705 (Publication 4705SP) has an overview about Debt forgiveness. IR 10-62 The spring 2010 issue of the Statistics of Income Bulletin has been released. Grant applications: IR 10-66 Applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs. IR 10-72 Applications for 2011 Low Income Taxpayer Clinic grants. IR 10-61 IRS Names New Members to the Advisory Committee on Tax Exempt and Government Entities, in-
Attention Tax Preparers: APPLY FOR A PTIN IN SEPTEMBER. Even if you have a PTIN, you need to re-register. You will be issued your existing PTIN. Skyscapes | July 2010
From the IRS
cluding Karen Gries of Minneapolis, MN, a graduate of Nettleton College in South Dakota. Announcement 10-41 Payees who get repeat back-up withholding notices now must ask the Social Security Administration for a Social Security Number print-out. Previously, they were required to get Form SSA-7028, but that form has been discontinued. Notice 10-39 solicits comments regarding the application of certain requirements imposed by new section 501(r) for hospital organizations under the Patient Protection and Affordable Care Act (Affordable Care Act, Pub. Law. No. 111-148.) Notice 10-41 Regulations under section 7701(a)(4) of the Code will classify certain domestic partnerships as foreign, solely for the purpose of identifying which U.S. shareholder is required to include amounts in gross income under section 951(a). Notice 10-42 announces the phaseout of the new qualified hybrid motor vehicle credit and the new advanced lean burn technology motor vehicle credit for passenger automobiles and light trucks manufactured by Volkswagen Group of America that are purchased for use or lease in the United States beginning on July 1, 2010. Notice 10-45 provides a Federal income tax credit to certain small employers that make nonelective contributions towards their employees’ health insurance premiums under an arrangement that meets certain requirements. Notice 10-46 addresses the U.S. tax imposed on substitute dividend payments received by foreign taxpayers that lend U.S. dividend paying securities in securities lending transactions. Notice 10-49 invites public comments relating to possible modi-
fications to the regulations under § 382 regarding the treatment of shareholders who are not 5-percent shareholders. Notice 10-50 provides guidance under IRC 382 for measuring owner shifts of loss corporations where there are fluctuations in values among different classes of stock and requests comments. Revenue Ruling 10-16 provides that for purposes of determining the new markets tax credit allowable under § 45D, the amount of the qualified equity investment made by an LLC classified as a partnership includes cash from a recourse loan to the LLC that the LLC invests as equity in a qualified community development entity. Revenue Ruling 10-17 provides that for purposes of determining the new markets tax credit allowable under § 45D, the amount of the qualified equity investment made by an LLC classified as a partnership includes cash from a recourse loan to the LLC that the LLC invests as equity in a qualified community development entity. Revenue Procedure 10-22 provides the 2011 inflation adjusted amounts for health savings accounts under § 223 of the Code Revenue Procedure 10-23 provides bond issuers with the United States median gross income figure, one of the figures required for determining high housing cost areas under § 143(f)(5)(D), and informs them of the availability from HUD of the state and area income figures required to be used for this purpose. Revenue Procedure 10-24 modifies the inflation adjusted amounts in Revenue Procedure 2009-50 that apply to taxpayers who elect to expense certain property under § 179 to reflect changes enacted as part of the HIRE Act. REG-106750-10 contains proposed
regulations relating to the modification of debt instruments. The regulations clarify the extent to which the deterioration in the financial condition of the issuer is taken into account to determine whether a modified debt instrument will be recharacterized as an instrument or property right that is not debt. The regulations provide needed guidance to issuers and holders of debt instruments. This document also provides notice of a public hearing on these proposed regulations. TD 9483 final regulations affect employers that provide their employees with qualified nonpersonal use vehicles and the employees who use such vehicles, and add clearly marked public safety officer vehicles as a new type of qualified nonpersonal use vehicle. TD 9484 contains final regulations under section 401(a)(35) relating to diversification requirements for certain defined contribution plans holding publicly traded employer securities. These regulations will affect administrators of, employers maintaining, participants in, and beneficiaries of defined contribution plans that are invested in employer securities. TD 9485 contains final regulations under section 704(c) of the Code providing that the section 704(c) anti-abuse rule takes into account the tax liabilities of both the partners in a partnership and certain direct and indirect owners of such partners. These final regulations further provide that a section 704(c) allocation method cannot be used to achieve tax results inconsistent with the intent of subchapter K of the Code. The final regulations affect partnerships and their partners.
From the IRS
Registration Now Open for Kansas Tax Symposiums OVERLAND PARK Meeting: Overland Park Tax Symposium Date(s): September 30, 2010 Time: 8:30 a.m. - 4:00 p.m. Location: Johnson County Community College, Regnier Center, Room 240, 12345 College Blvd., Overland Park, KS 66120
WICHITA Meeting: Wichita Tax Symposium Date(s): September 8, 2010 Time: 8:30 a.m. - 4:00 p.m. Location: Wichita State University, Eugene M. Hughes Metro Complex, 5015 E. 29th Street, North, Wichita, KS 67220
About the Symposium Contact: Mike Doughty; Phone: (913) 722-7566; E-mail: *SBSE SL Central KS@irs.gov Event Information: The Annual Kansas Tax Symposium is sponsored by the Kansas Practitioner Organizations and the Internal Revenue Service. Representatives from the IRS will provide information to tax professionals on such topics as Examination and Collection Issues, Electronic IRS, Tax Law Updates, the Taxpayer Advocate’s Office, and the State of Kansas Tax Law Updates, and more. A presentation and Q&A time on the new regulations for Return Preparers will be included. The Symposium is designed in a way to encourage practitioners to address important tax topics and issues with IRS representatives first hand. To ensure your place at this year’s symposium and to receive a CPE certificate, it is strongly encouraged that you register by September 20, 2010. Participants will receive up to 6 hours of Continuing Professional Educations or Legal Education. There will be no cost to this event. Lunch and refreshments will be on your own. Parking directions will be sent out when you register. Sign-in the day of the event will begin at 8:00 a.m. Registration Information: To register for this event, please download the registration form (PDF). Please return your completed registration form by: Mail: Internal Revenue Service, 6717 Shawnee Mission Parkway, Overland Park, KS 66202, Attn: M. Doughty; Fax: (913) 722-7634; E-mail: *SBSE SL Central KS@irs.gov. For further information or questions, please contact the Registration Point of Contact Mike Doughty. Sponsored by: Kansas Practitioner Organizations and the Internal Revenue Service
Skyscapes | July 2010
Now that tax season is coming to an end, we are re-launching the new
KSCPA endorsed products Be ready for new materials/packets.
We look forward to contacting you soon! DISABILITY INSURANCE This Disability Program was specifically built for a Certified Public Accountant. This Kansas Program has the wording of an individual “own occupation” disability contract with the prices of a discounted association program. Unlike the AICPA disability program that only pays when you are totally disabled, this new program will provide income to Kansas members if they are partially or totally disabled. You don’t even need to show income loss to qualify or receive benefits.
LIFE INSURANCE Purchase up to 500K in additional term life insurance. Spend minutes, not weeks, applying for a term life insurance. Answer a few simple, but precise, questions instead of filling out mounds of paperwork and taking medical exams. Purchase up to 30K for your spouse or 10K for your children.
DENTAL INSURANCE There are now two dental plans to choose from and both allow you to keep your current dentist.
Please call us at 913-831-0999, ext. 1255 for more information! Learn more about these group underwritten products and apply on-line at our new website www.kscpainsurance.com
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2010 WEBINAR SCHEDULE
(All programs run from 1-3 p.m. Eastern Time) • Thurs., June 17: The Latest Developments in Government Auditing Standards and Circular A-133 • Wed., June 23: Passive Activity Loss Rules: What the IRS Is Auditing, and What to Watch Out For • Tues., June 29: Tax Aspects of the New Health Care Reform Act of 2010 • Wed., June 30: Immediate Tax Planning Issues to Discuss with Clients in 2010 – Before Taxes Go Up! • Thurs., Sept. 16: Fair Value Measurement: Practical Concerns Faced by Non-Issuers
• Tues., Oct. 19: Avoiding Common Audit Sampling Mistakes • Thurs., Oct. 21: Related Party Transactions: Key Tax Issues, and What to Watch Out For • Tues., Oct. 26: Reducing Your Business Owner Clients' Exposure to Social Security and Self-Employment Taxes • Wed., Nov. 17: Hot Audit Issues: Substantiation for Cars, Meals, Entertainment, & Gifts • Thurs., Dec. 2: The Inherent Uncertainty of Financial Reporting: How Standards Attempt to Manage Risk • Thurs., Dec. 16: Year-End Payroll Tax Adjustments and 1099 Issues for Businesses
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Surgent McCoy CPE, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org.
40% off Selected Titles in July KSCPA members enjoy exclusive savings on these select titles through July 31: • Practical Guide to Parnerships and LLCs, Fourth Edition • 1065 Express Answers, 2010 • 1065 Preparation and Planning Guide, 2010 • Federal and State Taxation of Limited Liability Companies, 2010 • Multistate Tax Guide to Pass-Through Entities, 2010
Tax Scripts® TaxPro discount extended! There is not a faster or more efficient way to create and submit Disclosure Authorizations (DAs) or IRS transcript requests for an individual or a business taxpayer. Members are eligible for 20% off through August 31st. Offer good through August 31, 2010. Regular list price: $175.
2 Months Left! 30% off the 2011 U.S. Master Tax Guide® Order your 2011 U.S. Master Tax Guide early to lock in your 30% discount. No billing until your book ships! Discount is only good for members of the KSCPA. Orders must be made before August 31, 2010.
Take advantage of all of these great deals by logging onto www.kscpa.org and visiting the member benefits page.
CLASSIFIEDS Financial Analyst Ready to Sell? Want to Buy? Let Accounting Practice Sales make it quick and easy! Available Listings: New-Leawood Gross $197k; Atchison Gross $165k; NE KS Gross $244k; Lee’s Summit MO Gross $50k; Thomas County Gross $66k. To find our more about our risk-free and confidential services, call Kathy Brents, CPA at 501-669-2505 or email email@example.com. Also, visit us at www.accountingpracticesales.com.
Outstanding Opportunity Plus Signing Bonus!
We are seeking an energetic and progressive individual for our Clay Center, Kansas office. This is a newly created position available now! Duties will primarily include tax preparation and bookkeeping/consulting. Personal and professional growth opportunities are endless. CPA, or candidate preferred, but not mandatory. We offer excellent benefits, possible flexible scheduling and terrific work environment. Enjoy living and working in a small community, with close access to Manhattan and KSU. Please send resume with references to: Jim Trower PO Box 1516 Salina, KS 67402-1516 or email firstname.lastname@example.org
Security Global Investors seeks a Financial Analyst for either its Topeka, KS or Rockville, MD location. The firm is a multi-disciplined asset manager with broad investment capabilities. The role creates a broad range of financial information to be provided to senior management including attribution of financial results and delivery of AUM detailed reporting. The ideal candidate will have an Accounting degree, 5-8 years of analytic and modeling experience and strong communication skills. Visit Job # 10-0074 in the career section of our website at http://www.ultirecruit.com/sec1001/ jobboard/listJobs to find out more about the position. Please consider joining us!!! EOE
Wealth Management Firm seeking Tax Professional Barber Financial Group, one of Kansas City’s fastest-growing and most trusted wealth management firms, well-known for its ability to coordinate investment management with insurance, tax and estate planning by integrating the “four pillars” of wealth management, is searching for a tax professional to join the firm in order to provide additional services for clients. Founder Dean Barber and his advisors are regularly called upon by CNN, CNBC, Fox, and Bloomberg Radio in addition to several other media outlets. Dean is also the host of the nationally-syndicated “America’s Wealth Management Show” airing locally Saturdays from 1 – 3p.m. on News Radio 980, KMBZ. The Tax Professional will be responsible for preparing tax returns as well as proactive tax planning for Barber Financial Group clients. The ideal candidate will be either a CPA or EA, have at least 15 years experience, a good client presence, the ability to work with a team of financial professionals to help clients achieve their goals, and be selfmotivated. Ability to relate and interact with professionals and retirees is a must. The right candidate will have a great long-term opportunity. Position pays a base salary plus bonus; benefits include a retirement plan, health & dental insurance, and paid vacations. Send resumes to email@example.com.
Brungardt Hower Ward Elliott & Pfeifer, L.C. is seeking CPAs with a minimum of 3-5 years experience for our Hays office in the following areas: Auditors: Candidates with experience in financial institutions, not for profits and A-133 audits preferred. Tax Professionals: Experienced tax professionals with a general tax background needed. Knowledge of agriculture or oil and gas taxation beneficial. Competitive salary and benefit packages. Please send resume to Personnel Coordinator, P.O. Box 40, Hays, KS 67601 or email to kathym@bhcpa. com.
ACCOUNTANT NEEDED — The Kansas Press Association is seeking a person for its part-time accounting position. The position averages 20 to 25 hours a week and the schedule can be quite flexible in nature. Position will open soon. We use QuickBooks. Please send resume and cover letter describing what you would bring to the job to Doug Anstaett, executive director, by e-mail at firstname.lastname@example.org.
Business Services Specialist
Brookover Land Enterprises a 50+ year old, family owned, agricultural Company is looking for a CFO. The Company is headquartered in Garden City, Kansas. Five years of accounting and management experience is required, and an agricultural background is preferred. Compensation is negotiable and will be based on the education, experience, and background of the candidate. Please send resumes to Ty@brookover.com
Tax accounting and business services: tax planning, financial records consulting, tax preparation, and business planning to primarily farm, ranch and agribusiness clients. Related experience and CPA. Excellent technical, communication and client relationship skills. Team-based environment. Competitive salary and benefits. Full posting at www.FrontierFarmCredit. com. Cover letter and resume to HR@FrontierFarmCredit.com or HR, 2401 N Seth Child Rd, Manhattan, KS 66502.
Have a job opening or internship? Needing to sell something? Advertise it with the KSCPA. Members get free classified ads up to 100 words (20 cents per word thereafter). All classified ads are posted to our website for 30 days and run in one issue of the e-newsletter. For more information, contact lauren@ kscpa.org.