The Journal Entry - April 2017

April

2017,

Vol.

II

|

Volunteering

&

Service

Value in Volunteer Work How our donated time impacts our communities

By Gavin Hutchinson, CPA

The 2017 Legislative Session How the profession fared during the 45 day session

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Mission,Vision,Values

ExecutiveBoard

Mission

president......................................Gavin E. Hutchinson president-elect............................................ Matt Klein vice president..................................... Monica Gardner secretary...................................................... Stan Jenne treasurer........................................... Jay Niederhauser member-at-large......................................Owen Ashton member-at-large.................................... Michael Beach immediate past president................. Hollie S. Andrus aicpa council.......................................Brandon Allfrey pronet council.......................................... Amy Anholt ceo......................................................... Susan A. Speirs

The UACPA Leadership supports and challenges members through advocacy, professional education, leadership development, networking, and community service, to help them succeed in a competitive and changing world.

Vision At the UACPA, our vision is to be a world-class professional association essential to our members.

We unite a vibrant community of CPAs to enhance the success of our members and champion the values of the profession; Integrity, Competency, and Objectivity.

Values Advocacy The UACPA represents the profession at the legislature and other regulatory bodies and promotes the value of the CPA to employers, the business community, and the public at large.

Leadership & Service The UACPA provides leadership and service within the profession, within the UACPA and within the community.

Professional Development The UACPA supports and encourages continuing education and leadership development.

UACPAStaff CEO........................................................ Susan A. Speirs Communications/marketing and Editor of The Journal Entry............... Amy Spencer CPE Manager......................................... April Deneault Financial Director..................................... Tom Horn Membership Development........... Braden Thompson The Journal Entry is published quarterly, by the UACPA 136 S. Main Street, Suite 510 Salt Lake City, UT 84101 tel: 801-466-8022 toll-free in Utah: 1-800-676-2776 email: mail@uacpa.org or log on to www.uacpa.org Cover photo by Christian Wood / Robert Wood Photography

Professional Community The UACPA reinforces peer accountability to encourage members to maintain integrity and high ethical standards. We ​​ provide member to member networking opportunities and networking opportunities with other professions. We value belonging to a distinguished organization and believe that we serve as the primary resource and point of contact for Utah CPAs.

UACPA Statement of Policy CPAs have common problems and interests. This magazine has been created to share information relating to the practice of accounting.

The opinions, views and articles expressed in this magazine are not necessarily those of the Utah Association of Certified Public Accountants. This magazine should not be deemed an endorsement by the UACPA or its committees or editorial staff of any views, opinions or

Diverse Population Outreach

positions contained herein. Because of the complexity of tax laws and

The UACPA believes in reaching out to under-represented populations, those returning to the profession or choosing it as a second career, and other professions.

accounting transactions and the changing status of the law, as well as variations in practices and procedures among accountants, information in the magazine should not be used, acted or relied upon, as a substitute for independent accounting or legal research and advice.

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the journal entry | April 2017

in this issue | April 2017

feature story

The Impact CPAs Make Through Service 12 9 New Members............................................................................................4 Movers & Shakers......................................................................................4 Message from the CEO............................................................................. 7 Cover Story: The Value in Volunteering and Service...........................9 The Essence of Life: To Serve Others and To Do Good..................... 12 By the Numbers: Good Deeds in Utah................................................. 15 Survey Says: UACPA Members are Good at Surveys......................... 16 Tax Law Update....................................................................................... 18 Tax Talk: Utah CPAs Join Others to Talk Tax Reform........................20 Legislative Session Wrap-Up..................................................................22 2016-2017 Donations .............................................................................25 Meet the Executive Board......................................................................26

Happiness Through Giving 12

Member Satisfaction Survey Results

16

Board Bullets............................................................................................29 Meet the UACPA Staff ............................................................................29 Photos: Capitol Tour, BAM Forum and Leadership Council ...........30 Comic: Generally Excepted....................................................................32 Meet a Member: Michael Lockwood....................................................33 CPE Course Schedule.............................................................................34

Meet a Member: Michael Lockwood 33

Member Benefits/100% Membership Firms........................................37 the journal entry | April 2017

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New Members

NewMembers

Congratulations to the following individuals/CPAs who were approved for membership or affiliate status in the UACPA as of February 28.

Fellows Cheryl Nielsen Cheryl L. Nielsen, CPA Robbie Crook Teuscher Walpole, LLC Parker Huber Grant Thornton LLP Kevin Yankton Varex Imaging Inc Karen Kenner Udall CPA Group

Student Members Brigham Young University Carly A. Christiansen Dixie State Acacia A. Gillespie Courteney Smith Montana Hadley Elise A. Morley Colton Kreth Southern Utah University Daniel Astleford

Brian Wright PricewaterhouseCoopers Weber State University Nicholas W. Romney LLP Vanessa Coburn Benjamin A. Hyer Jason Anderson Haynie & Company Spencer Doman Eide Bailly, LLP Bryant Jensen Lifetime Products Inc. Kyle Swenson Grant Thornton LLP Kyle A. Graham Tanner LLC Arnousone Chanthalyxay Eide Bailly, LLP

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Westminster College Christopher Felt Yujun Zhou Kris Ortega Sovandara D. Nuon University of Utah Abby E. Potter Christy M. Brenner Brandon C. Rhodes Utah State University David S. Barnes Zachary Wainwright

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Utah Valley University Josh Richards David Peacock Kristi Collaku Sophie Carter Valerie Butterfield Rebecca Sauter Aaron M. Metcalf Madeline Carter Austin Sharp Anastasiya Lyubarets Salt Lake Community College Kristine B. Supoto Other Corona E. Cox

Movers& Shakers Hawkins has named Josh Rowley as Managing Partner and succeeds Mark D. Whittaker who served in the role from 2011 to 2016. Rowley will provide strategic leadership and direction, overseeing the operations of the tax, audit, accounting and retirement departments. He joined Hawkins as a staff accountant in the tax department and started Hawkins R&D Consulting Practice in 2012. He has been active in various organizations and has served as president of the Southern Chapter of the UACPA and currently serves on the Accounting Advisory Board at Utah Valley University. Rowley graduated from Brigham Young University with a master's in Accounting.

Ray S. Ellison has announced his retirement from Tanner LLC. Ellison joined Tanner LLC in 1986 following 10 years of working in the Big 4 and other CPA firms. He was responsible for Tanner's Information Technology Systems and Security Group and providing advisory, accounting, auditing and consulting services to national and international clients. He graduated from Brigham Young University. Ellison has been awarded the Outstanding CPA in Public Practice by the UACPA. Joe Stoddard, partner at Eide Bailly, was recently recognized among Utah Business Magazine's "40 Under 40." He has more than 15 years of experience in tax consulting and specializes in R&D tax incentives. He oversees the R&D tax practice and cost segregation groups at Eide Bailly.

Movers&Shakers

Alfred J. Kofoed

Kevin Crump

Pinnock, Robbins, Posey & Richins PC has acquired the the accounting practice of Alfred J. Kofoed, CPA. Kofoed was a partner at Kievaard, Kofoed & Teran PC for 24 years and has more than 40 years of experience in pubic accounting.

He will remain with Pinnock, Jonyce J. Bullock Robbins, Posey & Richins PC in an "of counsel" role as he phases into retirement over the next five years.

Kevin Crump, a long-time audit and tax manager with Nievaard, Kofoed & Teran PC is also now a member of the Pinnock, Robbins, Posey & Richins PC service team. Pinnock, Robbins, Posey & Richins PC has served Salt Lake City since opening K. Tim Larsen in 1944.

Richard Scoresby has joined Larson & Company as a tax partner in the Salt Lake City location. Scoresby brings more than 22 years of accounting experience, including 17 years in public accounting with a national accounting firm. He Richard Scoresby previously led the local nonprofit tax practice for a national firm and was a member of their Nonprofit Tax Technical Committee.

Haynie & Company CPAs has acquired Robison, Hill & Co., APC, a full-service tax and audit firm established in 1953.

Its current partners joined the firm more than 40 years ago and have provided high-quality services for their clients.

Haynie & Company will continue to serve new and existing clients with greater resources and expertise. With this expansion, Haynie now has more than 120 employees in five offices.

Salt Lake City firm WSRP was recognized in the March issue of Accounting Today as No. 4 on the list of 25 fastest growing firms in the U.S. Their 2016 growth rate was 31.08% with $15.17 million in revenue.

Reuben M. Cook

Joe B. Hillstead

Squire and Company, PC has announced a change in managing partners. Jonyce J. Bullock will assume the position of managing partner on Jan. 1, 2018, succeeding K. Tim Larsen, who has led the company as managing partner since 2004. Bullock will play a key role in the strategic direction of the firm, as well as implement new plans for growth and development for the firm and its employees. Larsen, who has served as managing partner for the past 13 years, will continue as an advisory and tax partner.

Additionally, Squire and Company has added two new partners: Reuben M. Cook and Joe B. Hillstead. Cook is the chair of Squire's wholesale and distribution industry group and co-leads the firm's NetSuite services. He primarily provides CFO services, ERP services and best practice process consulting from both a business and technology perspective. Hillstead, who was recently named a tax partner, brings more than 12 years of experience working with clients on a broad range of tax issues and specializes in corporate income tax matters including mergers, acquisitions, and reorganizations. He also specializes in the U.S. taxation of international transactions, including transfer pricing.

Dan Griffiths has been named to the Board of Directors of the AICPA. The Director of Stratgegy & Leadership at Tanner LLC has served in many capacities within the AICPA, including most recently as a member of the AICPA governing council. He previously chaired the Young CPA Network committee. Griffiths earned his Bachelor and Master of Accountancy from Brigham Young University. the journal entry | April 2017

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The Rules Have Changed Don’t Miss Out on Your New CPE Requirements Utah CPAs are required to earn three hours of ethics and

Credits

Find ethics courses that will fulfill the three mandatory credits by visiting www.uacpa.org/ethics.

For the Utah Laws & Rules credit, the UACPA has created a webinar to fulfill that requirement.

Webinar

The Utah Laws & Rules webinar is exclusive to the Utah Association of CPAs and is accessible through www.uacpa.org. It can be accessed through the CPE tab on the main page.

one hour on the Utah CPA Licensing Act and CPA Licensing Act Rules (Utah Laws & Rules) as part of their 80 hours of CPE. This requirement applies to the current reporting year.

Utah Laws & Rules One hour of Utah Laws & Rules is required in the current reporting year.

Reporting

CPE for the December 31, 2017 reporting cycle will be due by January 31, 2018 to the Department of Occupational and Professional Licensing (DOPL). The form will ask that you report on the ethics and Utah Laws & Rules courses you took during the cycle. There you will indicate that you have fulfilled these required classes.

Qualifications Some preapproved classes are listed at www.uacpa.org/ethics. If your class is not

Ethics Three hours of ethics are required in the current reporting year.

listed there, you can ask the provider if it qualifies. If it does not qualify, submit an application to the Utah CPE Registry through www.uacpa.org/cpeapproval. CPE approval applications will be reviewed and returned within seven business days of submission.

CEO's Message

Susan Speirs, CPA

"V

olunteering is the ultimate exercise in democracy.

You vote in elections once a year, but when you volunteer, you vote every day about the kind of community you want to live in”. — Author Unknown On a report from 2015, the U.S. Bureau of Labor Statistics indicates that 24.9% or 62.6 million people volunteer through or for an organization. The volunteer rate for men is 21.8% while 27.8% of women volunteer. Those ages 35 —54 make up 28% of volunteers. Rates of volunteerism were lowest among the 20-24 year olds at 18.4%. Married individuals volunteer at a higher rate (29.9%) than their unmarried peers at 20.2%. Among those age 25 and over, 38.8% with a bachelor’s degree or higher volunteered, compared to 15.6% of volunteerism of those with only a high school degree.

Our volunteers are critical partners within our own association and have impact throughout our state and nation. We’re a busy profession and it can be hard to find time to volunteer. However, the benefits of volunteering are enormous to you, your family and even your community.

Albert Schweitzer said, “Whenever you turn, you can find someone who needs you. Even if it is a little thing, do something for which there is no pay but the privilege of doing it. Remember, you don’t live in the world all of your own.”

• Volunteering connects you to others. Volunteering within the UACPA allows you to connect to others in the CPA community and make it a better place.

We are a multifaceted profession and even the smallest tasks can make a real difference in the obstacles that we face.

• Volunteering is good for the mind and body.

Volunteering keeps you in regular contact with others and helps you develop a solid support system. Researchers have discovered that being helpful to others delivers immense pleasure. Our brains are hardwired to give to others. Erma Bombeck said it this way, “Volunteers are the only human beings on the face of the earth who reflect this nation’s compassion, unselfish caring, patience and just plain loving each other.”

• Volunteering can provide civic and leadership opportunities. Many of our members have led the charge over the last few months as we’ve worked with the legislature.Without our volunteers, legislators would not be educated on cause and effect of some of the proposals drafted.

The London School of Economics examined the relationship of volunteering and measures of happiness in a large group of American adults. They found that the more people volunteered, the happier they were compared to people who never volunteered. Compared with people who never volunteered, the odds of being “very happy” rose 7% We thank all of you who volunteer your time and talents among those who volunteered monthly and 12% for people to your (UACPA) organization. Your insights, inputs and passion have moved us to a place of respect in our who volunteered every two to four weeks. designation, financial and non-profit communities as well There are benefits of volunteering, a few are listed below. as the state. the journal entry | April 2017

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The Demand for CPAs Who Serve Why it's important to do our part for our communities

By Gavin Hutchinson, CPA

A

year has passed since Hollie Andrus first penned her article as the incoming UACPA president. I would like to take a moment and recognize Hollie for all of the wonderful insight that she has shared with all members of the UACPA this past year. I will never be able to watch "Bridge of Spies" again without thinking about ethics and the UACPA's State & Local Government conference. Most of Hollie’s work has gone unnoticed by the members of the association, but the executive board members were blessed to be able to witness her commitment to making the UACPA one of the best state societies of CPAs in the country.

I would be remiss if I didn’t also take a moment to recognize Susan Speirs and her staff. These five professionals work diligently each and every day to help members understand all of the benefits that are available to them and promote the profession throughout the state; whether it is working with the legislators reviewing how proposed legislation will affect the profession, or meeting with the Department of Occupational and Professional Licensing (DOPL) to protect the profession from having rules levied against the many, due to actions of a few. Although the executive board governs the association, it is the tireless work of the professional employees that make the association truly great.

This article is an opportunity for me to let you know what my goals for the coming year are and to provide some insight as to who I am. The first is very easy to share. My goal for the coming year is to not upset the apple cart. Over the past 2-3 years, the executive board and the UACPA staff have spent several hundred collective hours developing a strategic plan.

We are in the middle of this implementation, and I figure, why try to fix something when it doesn’t need fixing? Our strategic plan is very well defined and, in my opinion, very solid, and I feel that it should be given a chance to germinate fully.

I am a transplant from New England. I met my wife in Boston, and after we got married, she was heavily recruited for a job in Ogden. Always one for an adventure, I encouraged the move on my end as well. Unaware of anything having to do with Utah, when she shared that the position was in Ogden, my reply was, “well isn’t Ogden right next door to Provo?” I was quickly corrected and learned that Ogden and Provo are worlds apart. Over the last 13 years, I have learned that Provo never wants to be mistaken for Ogden nor does Ogden want to be like Provo.

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Feature Story

I have spent my entire career working to help people.

I have held jobs as a funeral director, pre-need sales counselor, auditor, an emergency first responder in the fire and EMS services, and as the leader of a not-for-profit organization. My time has been spent working at my career and volunteering my time to help others. It is through my volunteer services that I have learned the most and grown the most. This service has also led to many career opportunities that I would not have recognized otherwise.

To paraphrase Alexis de Tocqueville, “When a society is more willing to give of its money rather than its time, that society is doomed for failure.” I think that many people today would consider that our society is doomed for failure based on this quote. While working with several charter schools that struggled with engaging parents to volunteer at the school (which was one of the tenets that the schools had established to help families stay connected to what was happening at school), the school boards decided that if a parent did not want to volunteer their time then they should be able to “volunteer” their money. While the schools that instituted this program all received substantial donations, they failed to keep the parents engaged with their students' 10

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school work. In his book Freakonomics, Steven Levitt tells of a study that he conducted where all students that applied to a Chicago charter school, regardless of whether the student was accepted or not, were tracked and compared against students that didn’t apply yet remained enrolled in the local district school. What the study found was that those students who applied to the charter school did significantly better in school than those students who never applied, regardless of whether they attended the charter school or the district school. Levitt theorizes that the difference isn’t what school a child attends but how engaged the parents are in the student’s school life. By allowing parents to purchase their way out of volunteering, the charter schools that I mentioned earlier were bypassing the critical component of active engagement.

Over the past several years, I have heard — and I am sure you have too — many lectures, roundtable discussions, and panel presentations on working with, managing, and interacting with millennials. I wonder what would have been the outcome if, instead of being taught how to work with them, the discussions had been more on how to help them recognize the growing need in our society for qualified individuals, possessing the unique skill sets that these

Feature Story you have a personal connection. A recent study stated that the millennial generation might be more willing to donate their time and volunteer, but my experience is that most volunteers that are serving on boards are not millennials.

This may be due to experience or what is perceived as a lack of knowledge, but I think it has more to do with the time commitment. One company I know has worked to remove this barrier by allowing employees to serve society by granting them 2-4 hours of volunteering time each month. The governing board for which I work has made one of my goals this year to find a nonprofit organization and join their board. Currently, I serve on a charter school board, and the board of trustees for two different nonprofits, along with my commitment to the UACPA executive board.

The value that I find in working with these organizations is that I am surrounded by individuals who have different life experiences, are successful in both career and life, and help me to become a better person. Additionally, I am given the opportunity to learn from them and share my unique experiences, both as a professional employee at an organization governed by volunteers and from the diverse employment opportunities that I have had.

millennials have in the form of volunteering? Now, I know that it may feel like I am preaching to the choir as Utah ranks, year in and year out, as the most charitable state in the union, but I think that there are always opportunities out there to help. I understand the pressures of time as I have a young family and a spouse who works in a highlyregimented profession that requires her to spend time on call. But I also know that many organizations desperately need the skills and insight that only a CPA can provide.

How many times in recent years have we learned of a trusted employee that works for a non-profit that has been accused of embezzling tens of thousands of dollars? I recently read a news story from Farmington, Maine where a longtime employee pled guilty to stealing $300,000 from a food bank.

Another story that is a little closer to home is the report of misappropriations of possible public funds from the Utah League of Cities and Towns Trust. I believe that with the assistance of our profession, these incidences can be minimized.

How can we help society? Simply by being willing to volunteer some time to a deserving nonprofit to which

A CPA that chooses to volunteer to help society is a precious commodity. There is no other person that I would want to serve on my board. By training, education, and nature, we are a cadre of professionals that are analytic, ask questions, and, contrary to popular opinion, are very fun to work with.

CPAs are needed so much that during the recent legislative session, a bill was discussed requiring that a CPA serve on every governmental oversight board.

You are needed. Together we can help those less fortunate and at the same time protect society from those that are less scrupulous. I challenge each and every member of the UACPA to find a way to volunteer this year. â– Gavin Hutchinson, CPA is the president of Enable Utah, a nonprofit organization in Ogden. EnableUtah provides training and job experience to people with special needs to help them achieve greater independence and a higher standard of living.

Gavin can be reached at gavin@enableutah.org.

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The Essence of Life: To Serve Others and To Do Good

By Braden S. Thompson

I

magine for a moment that we are all in a top-secret science lab. In this lab is a machine that mixes together anything you put inside. And when I say anything, I truly mean anything. OK, now with that in mind, let’s say we all put on our white coats and safety goggles (because safety is not just a goal, it’s a lifestyle) and load the machine with a hyper Pomeranian, a widow, and a 1991 forest green Plymouth Voyager. What do we get? Surprisingly, I don’t need the help of the machine to know the answer. I already know exactly what we get: a solid opportunity to serve someone in need.

When I was 8 years old, my family lived a few blocks away from the widow mentioned above. She didn’t have the best mobility, but her Pomeranian had more energy than it could burn off running circles in the living room. She also lived in a house with an unkempt lawn and was in need of some help. When my thoughtful mother learned about the widow’s predicament, she loaded me and my little sister and brother into the Plymouth and took us over to help. While my sister wore the Pomeranian out chasing it around the yard, I gave the lawn my best 8-year-old

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attempt at cutting straight lines, and my mother visited with the widow inside. I don’t remember exactly how I felt about the whole thing, but I do remember that my mom used that experience to emphasize the importance of helping others, even if it is inconvenient. The widow needed help and we were able to give it to her, what other reason did we need?

The Success Factor of Kindness While I genuinely believe that we shouldn’t need a reason to be good people, I know that some of us need more convincing than others. So buckle up, here comes your convincing.

I recently read Shawn Achor’s book, The Happiness Advantage: The Seven Principles of Positive Psychology That Fuel Success and Performance at Work. The book focuses on many ways individuals can be more productive and successful in the workplace. This increased productivity comes by doing things that make them happier. Achor trains people at companies all over the world to be happier

in their jobs. While he has a lot of tactics for finding happiness, one of my favorites is being deliberate in acts of kindness. Essentially, the positive effects that people gain from serving others (even in small ways) are much more pronounced when they are the result of deliberate action.

That idea has stuck with me as I evaluated the things I do on a daily basis.

I would hope that we are aware that service and volunteering yield all kinds of positive life benefits. If asked, I believe most of us would help someone out — depending on what is asked. I mean, I’m willing to help someone practice for a job interview, but I draw the line at shaving back hair. But what Achor discusses in his book is that if we sit down at the end of the day and pick through our activities to try and find the good things that we did, we aren’t truly harnessing the positive power of kindness. The opportunities that make us the happiest are the ones to which we give real thought. Deliberate thoughts can make physical changes to the structure of our brains — giving a whole new meaning to the phrase, “it’s the thought that counts.”

Even if we don’t know exactly what service we will render on a given day, we can still consciously plan that we are going to look for and be aware of opportunities to be kind.

One of my favorite speeches is a commencement speech given by the late David Foster Wallace. In it he begs for us to be more aware of the people around us, especially the ones we find annoying or insufferable. We have no idea what their lives are like outside of our brief interactions with them. “If you’re automatically sure that you know what reality is ... then you ... probably won’t consider possibilities that aren’t annoying and miserable.”

So maybe we set a daily plan to give someone who is annoying us a compliment. When we are consciously aware of the good that we do, we are happier. Happier people have a real advantage. That’s the whole premise of Achor’s book: happiness leads to success, not the other way around. Satisfaction in life directly contributes to success in the workplace.

The Compensation Conundrum Money rules the world, and time is money. Does the time we spend volunteering for a cause, helping our son or daughter with his or her homework, or writing a note to a friend return the same amount we could have billed for that time? Maybe, maybe not. But is that the right ques-

The Essence of Life: To Serve Others and To Do Good tion to ask? Instead, we should ask, “how are the activities I’m involved in (work, leisure, service) contributing to the foundation of who I am as a person?”

I often forget to ask myself that question. I like to have a few profitable irons in the fire so that when I get home from work, I have more work I can spend time on. I get so hung up on putting time into my side hustles that I lose track of time and miss out on opportunities to do other things that I enjoy. Not only that, I don’t have the energy to be aware of the needs of people around me. It’s not until someone does something kind for me that I stop and take a mental audit of my life’s time sheet.

In those moments where I can reflect on the things that I spend my time doing, I find that I genuinely want to be a person that serves more people around me — just like momma bear taught me growing up. But the bills never go away, and there are all these wonderful things like waterfall showerheads, Egyptian cotton sheets, and March Madness tickets that I have to buy. So my focus goes back to spending my time doing the things that put that cash money in my pocket, and the widows and their Pomeranians are stuck figuring things out on their own.

The Value Proposition There is real value to work that doesn’t turn a profit. That value may not be measurable in monetary terms, but it’s there. Helping others yields a non-monetary profit that contributes a significant amount of capital to the foundation of all humans. That’s capital that we all need to be productive and functioning members of society. Anyone who says otherwise has no idea what he or she is talking about. We just have to learn how to see it for what it is. And it is that mental change — that ability to think differently — that makes all the difference.

So I challenge you to give your personal time a thorough audit, one that you would be proud to sign your name to, and see where you can add opportunities to help others. Because, as Aristotle said, “What is the essence of life?

To serve others and to do good.” And that Aristotle was a pretty smart dude. ■ Braden S. Thompson is the Membership Development Coordinator for the Utah Association of CPAs.

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by the

Numbers

These numbers reflect the 2015 Utah numbers presented at www.nationalservice.gov, the Corporation for National & Community Service

Utah Service Facts

1 43.2

Utah is ranked 1st among the 50 states and Washington D.C.

Percentage of residents in Utah who volunteer

64.8

Percentage of residents who donate $25 or more to charity

170.36 million hours of service donated

3.8

844,023

Billion dollars of service contributed

Number of volunteers in Utah the journal entry | April 2017

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Member Satisfaction Survey The 2016 results are in: Get insight on uacpa Membership

B

etween October 17 and December 23 of 2016, UACPA members were invited to participate in a survey to gauge everything from member satisfaction, advocacy and communication. We thank those who participated and provided feedback to help us improve. Here is a glance at what we learned from our 2016 membership survey.

Do you see value in being a member of the Association?

How essential is the UACPA to your success as a CPA?

What value does being a member of the Association bring?

Top answers: • CPE • Networking • Discount on Insurance • Advocacy • Credibility 16

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Does your employer pay for your membership?

UACPA Membership Survey

Are you aware of the new ethics requirement in the state of Utah?

What activities or opportunities would What suggestions do you have to improve the UACPA? you be interested in?

• “Chapter for South Valley of Salt Lake."

• “Mentoring and community service."

• “More engaging networking events"

Have you ever contributed to the Utah CPA PAC or Utah CPA Foundation?

• “Make a more professional display of UACPA membership. I have others and the UACPA is one of the least attractive.”

• “CFO Roundtables, Morning Roundtables for 1-2 hours with industry or technical issues.”

• “Should work on legislation to require State auditor to be a CPA.” • “More outreach to new members.”

• “Find a way to be more of a networking and social gathering place for CPAs with other professionals (i.e.

CEOs and business leaders) • “More industry specific training options.” the journal entry | April 2017

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Tax Law Update Full Steam Ahead: IRS Narrowing Focus on 831(b) Captive Insurance Companies

By Beckett G. Cantley, JD, LLM1 and Geoffrey C. Dietrich, JD

T

his update is a short summation of our article previously published by the UACPA. The full article updates our guidance to professionals with recent Internal Revenue Service (“IRS”) anti-abuse actions, such as the inclusion of certain Captive Insurance Companies (CIC or Captive) on the “IRS Dirty Dozen” list, IRS Notice 2016-66 (“Notice”) classification of specific behavior as a Transaction of Interest (“TOI”), and inclusion — with variance from both prior Dirty Dozen and Notice language — on the 2017 Dirty Dozen list.

All our previously published articles on this topic are adamant that non-compliant (or not-fullycompliant), tax motivated, and/or estate planning CICs are ab initio unlikely to be tolerated by the IRS. We have witnessed countless scenarios ranging from mere negligence to gross misconduct from organizations purporting to offer Captive services. Many promoter organizations use “race to the bottom” pricing coupled with blasé dismissal of the regulatory requirements governing the operation of an independent insurance company under the insurance regulations of the jurisdictions that license CICs. 18

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In their prior warnings, IRS actions made it clear that certain practices are problematic, and perhaps criminal.

While the bad actors continue to dance in the streets, the IRS has spent its time forensically auditing and preparing its arsenal for coordinated attacks. Unfortunately, many promoters continue to operate in the described manner and drew the IRS into the 831(b) Captive Insurance Company world. Our predictions and advice were called paranoid by promoters.

Our article provides updates on the result of promoter activities in the Captive space. We have specifically updated and more fully explore the following issues from our 2013 article, all of which have become more pronounced today: (i) life insurance as an “investment” of the CIC; (ii) the risks posed by the IRS offshore crackdown; (iii) excessive premiums & terrorism insurance; and (iv) estate planning ownership structures. Each of these matters is addressed below.

The IRS has struck out the common promoter activity of encouraging life insurance as an investment within the Captive. In the 2016-66 Notice, the IRS laid out its

disapproval for Captives to own or invest its “capital in illiquid or speculative assets usually not held by insurance companies.” Large life insurance premiums paid with the received premiums create an illiquid investment otherwise incomprehensible to a compliance officer. Normal life insurance industry behavior makes it highly unlikely an independent insurance company would choose to use its reserves to purchase life insurance on the life of its principals, especially before the insurance company has proven a consistently profitable venture.

From the very outset of the IRS attack on Captives, starting in 2015 — nearly two years after we predicted the crackdown — offshore jurisdictions raised the specter of tax shelter. In the original Dirty Dozen listing, the IRS stated “In the abusive structure, unscrupulous promoters persuade closely held entities to participate in this scheme by assisting entities to create Captive Insurance Companies onshore or offshore.” In the 2017 Dirty Dozen listing, the emphasis on onshore versus offshore is removed, likely as a decision that the differentiation did not create additional liability or offer unintentional releases.

As of the 2017 Dirty Dozen listing, the IRS has sharpened the knives on policy underwriting. Premiums must conform to actual and supportable business risk. Specifically, the IRS warns CIC owners, promoters, and tax professionals against premium amounts that “may be unsupported by underwriting or actuarial analysis, may be geared to a desired deduction amount, or may be significantly higher than premiums for comparable commercial coverage.”

Additionally, the 2017 Listing specifies, as does the 2016-66 Notice, IRS displeasure for Captives whose coverage is based on “implausible risks,” fails to match “genuine business needs,” duplicates taxpayer’s commercial coverages, or where the “scope of the coverage is vague, ambiguous, or illusory.”

If not already a priority, CIC owners and their advisors should review the coverages in place to determine the extent of their misalignment with IRS standards.

The Tax Extenders bill in 2015 put certain Captives on notice by closing the door on “estate planning” Captives in which the insured entity owner did not own the supporting Captive in the same proportion (within a two percent differential). The rather confusing language can be extraordinarily simplified in a simple maxim: when the children do not meaningfully own the parent company, they can’t own the parent company’s Captive.

Tax Law Update Most recently, release of Notice 2016-66 and the 2017 Dirty Dozen listing have continued the IRS anti-abuse activity.

Through these two actions, and viewing the definitional changes through hindsight, we see the IRS tightening definitions, expanding their reach to contain multiple categories of actors, and hone the attack.

Unfortunately for many 831(b) Captive Insurance Company owners, our predictions from 2013 as related to promoter abuses were correct and have borne out. When we began publishing warnings, promoters derided our counsel as “paranoia.” Paranoia is only paranoia until you are proven right, then it is called “Preparation.” Our “paranoia” was based in sound legal theory evinced by significant IRS pronouncement after pronouncement.

We have written, lectured, and explained in numerous, well-documented ways that the current state of affairs with 831(b) Captive Insurance Companies was a foregone conclusion. We expect the future to include significant IRS audits. Our purpose is, and always has been, preventing CPAs and other professionals from being unwittingly drawn into an IRS battle they did not anticipate.

If you are concerned about whether your Captives will survive IRS scrutiny, please contact us. ■

Beckett G. Cantley, JD, LLM consults with CPA firms regarding their clients in matters related to U.S. and International Taxation, Captive Insurance Companies at Cantley Dietrich. He can be reached at bgcantley@cantleydietrich.com or (404) 502-6716 Geoffrey C. Dietrich, JD focuses his practice on business development for Cantley Dietrich, specifically developing relationships with CPA firms. He can be reached at gcdietrich@cantleydietrich.com or (801) 367-0340

the journal entry | April 2017

19

Utah CPAs Participate in Tax Professionals Group CPAs join to discuss improving IRS service quality

by the AICPA. W. Val Oveson, CPA, CFF, CGMA, ABV contributed to this article

T

he UACPA was well represented in a recent meeting in Washington, D.C. hosted by the American Institute of CPAs (AICPA). Troy Lewis and Val Oveson were invited to join a distinguished group of tax professionals to discuss how the Internal Revenue Service (IRS) could improve service quality. Troy is the immediate past Chair of the Tax Executive Committee of the AICPA and Val was the first National Taxpayer Advocate of the IRS and is a past member of the Tax Executive Committee.

In May of 2015, the AICPA Council passed a resolution calling for policymakers to create a “modern functioning, evolutionary, and respected federal agency for the 21st Century.” The stakeholder group that convened on February 15 was a continuation of the AICPA’s efforts to respond to members complaints about the deteriorating level of access and performance at the IRS. The attendees discussed the needs of taxpayers and practitioners and their concerns with the level and quality of their interactions with the agency. They also outlined resource and organizational impediments that the agency is facing.

IRS Commissioner John Koskinen and IRS Taxpayer Advocate Nina Olson were invited to share their perspectives during separate visits during the day. Nina highlighted areas of her Annual Report to Congress that illustrated points made by the practitioners in attendance.

In an ongoing effort to address tax practitioner concerns, a delegation of AICPA leaders met with members of Congress and officials from the IRS last February to

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the journal entry | April 2017

Tax Professionals Group

Save the Date Mark your calendar for UACPA conferences and events in 2017 May 5 State & Local Government Conference Sheraton Hotel

describe the unacceptable state of service and to encourage a dialogue about the IRS of the future. The AICPA has asked for feedback through surveys and member meetings around the country. The AICPA Tax Executive Committee has also focused on service quality at the agency.

The past Chair of the Tax Executive Committee, Troy Lewis, CPA, CGMA, offered testimony regarding concerns about the IRS on May 17, 2016 before one of the national public forums conducted by the Taxpayer Advocate to listen to, “What Taxpayers Want or Need from the IRS to Comply with the Tax Laws.” Troy commented, “to ensure that we have meaningful access to the IRS, the agency needs to regularly provide a systematic, reliable and economical source of training to their employees. In order to answer basic questions and to keep up with changing tax laws, IRS representatives need consistent, quality training, comparable to that offered to a tax practitioner.

This lack of training often results in poor customer service.”

Lewis continued, “Finally, it is critical that the IRS actively pursues stakeholder (taxpayer, tax preparer and other IRS customers) engagement, particularly on major organizational changes such as the IRS Future State.

Stakeholders such as CPAs, who are on the 'frontline,' can provide sound recommendations to ensure the needs of taxpayers, tax practitioners and the government are met.”

The AICPA will continue to drive for changes at the IRS and has elicited the help of the panel convened at Washington, D.C. last month to assist with the transform efforts. ■

Aug. 24 Golf Tournament Bountiful Ridge Golf Course Sept. 22 CPAs in Business & Management Conference South Towne Expo Center Sept.

Inauguration and Awards Banquet Sept./Oct. Non-profit Conference Nov. 8 - 10 ProNet Leadership Academy Nov. Tax Symposium Nov. Business Valuation Conference Dec. 1 Accounting & Auditing Conference Dec. 8 - 9 Winter Conference Salt Palace Convention Center Dec. 15 - 16 Technology Conference South Towne Expo Center

the journal entry | April 2017

21

Legislative Session Wrap-up What will Impact CPAs from the 2017 Legislative Session?

By Craig Peterson and Ryan Peterson, UACPA Lobbyists

O

n March 9, the 45-day Utah legislative session came to a close. This session was marked by a number of big ideas that never actually materialized into much more than just ideas.

Many Utahns were expecting major changes to state laws, including a medical marijuana program, substantial changes to employment non-compete agreements, and a ground-breaking tax package that would have implemented a number of changes. What ultimately transpired was an abandonment of marijuana legislation due to statements made by the Trump administration on state’s rights regarding controlled substances, no legislation regarding non-competes, and the breakdown of negotiations between the House and the Senate on tax issues such as the restoration of sales tax on food, an earned income tax credit, and a change to income tax that would have given public schools an additional $750 million.

Aside from these major non-starters, the legislators managed to pass a number of bills, several of which were of 22

the journal entry | April 2017

interest to the CPA industry. Here are a few of the bills that we worked on this session on behalf of the UACPA.

SB158 – Pass-Through Entity Withholding Amendments In 2009, a bill was passed that obligated pass-through entities to withhold and remit to the state 5% on distributions to non-resident partners. This year’s bill was intended to move towards resolving that. Under current law, if there are two tiers of Utah pass-through entities with different fiscal years, and the lower tier entity has a loss, the lower tier entity is required to pass through the full withholding from the upper tier entity, resulting in a refund to the non-resident partner. Senate Bill 158 authorized the middle tier entity to obtain a refund of the excess withholding and use it in their Utah business, rather than forcing it to be refunded to the non-resident partner. This bill was met with mixed reviews from CPAs who practice in this arena on both sides. As an association, our stance maintained neutral ground as we know there are challenges on both sides of the equation from an

administrative, public safety and fiscal and tax policy standpoint. It’s important that we remain a part of the How CPAs affected 2017 conversation so that were non-resident taxpayersby are the receiving overpayments in a timely manner as well as ensuring that all taxpayers are receiving overpayments of excess withholding. In order to avoid a large fiscal note on the bill, the solution was to enact a pilot program with a report back to the legislature in 2018. The pilot program has an initial threshold of $250,000. The UACPA worked to ensure that after the first-year report back to the legislature that the threshold will be lowered or eliminated completely.

SB259 – Certified Public Accountant Licensing Act Amendments SB259 provides clarification as to who can perform attestation services for a client. The bill makes Utah’s attestation requirements similar to other states. The UACPA's attest committee worked with DOPL and AICPA to develop appropriate language that was in compliance with the UAA and mobility language across the nation and U.S. territories. The bill passed committee in both the House and the Senate. The bill passed the Senate with no debate and a unanimous vote. The House debate was more interesting in that the bill became part of a procedural dust up between the House and the Senate. Although the bill passed overwhelmingly, there was an otherwise unrelated and inordinately lengthy debate on the appropriateness of professional licensing in general. Expect to see this trend continue as there is a movement across the nation to do away with professional licensure as some organizations think licensure is a barrier to competition.

HB 302 – Modifications to Tax Consistent with every year, a few members of the legislature bring up the issues of collecting sales tax on professional services. This year was no different. The challenge this time was that the legislature, as a whole, was seeking to make significant changes to tax policy. Many legislators find the concept of taxing CPAs or attorneys more palatable than restoring sales tax on unprepared food. This year’s proposal would have added sales tax onto all professional services except medical services. The bill came out late in the legislative session and became an important part of the conversation, but never actually got the support necessary to get the bill moving. Many legislators have asked that a professional services tax be included in the interim

Legislative Update conversations about changes to Utah State tax policy. We anticipate that this topic will be included as the legislature Legislative talks about sales session tax on food, online sales tax, income tax changes, earned income tax credits, and a number of other potential tax policy questions. This is an area that we are going to need support from UACPA members as we are seeing more of this kind of legislation across the nation.

Currently, Hawaii and New Mexico have sales tax on professional services and have for years. Many states are struggling financially and sales tax on professional services is being seen as a quick way to balance states’ budgets. As an organization, the UACPA has the opportunity to be part of the discussion regarding the impact of additional types of sales tax, unintended consequences of assessing different types of sales tax, whether our taxing system in general needs to be overhauled and tax policy in general.

Although it has been considered a quieter legislative session this year, there were a number of issues of interest to the UACPA, and we were honored to work alongside Susan Speirs and your Association leadership to make sure that the interests of the CPAs in Utah were met and that your voice was heard on Capitol Hill. ■

Craig Peterson has been involved in legislative processes for more than 30 years as a State Representative, State Senator and Republican Senate Majority Leader.

During the past 18 years, he has been a lobbyist, successfully representing a broad spectrum of clients. Peterson and his son Ryan have become a strong political voice for their clients.

Ryan Peterson is the president of RCP Strategic, a contract lobbying firm based in Salt Lake City. He received a degree in economics from the University of Utah with a focus on statistics and econometrics. He is an avid golfer and resides in Salt Lake City.

the journal entry | April 2017

23

Know an Outstanding CPA?

The UACPA Awards Task Force wants your help in selecting members who deserve recognition at our annual awards banquet.

Please nominate the UACPA members who consistently go above and beyond what is necessary to serve their clients, employers, employees and communities.

Please fill out the brief nomination form online at www.uacpa.org/nominate.

All nominations should be received by July 20, 2017.

Award Categories Distinguished Service Recognition of superior professional competence, leadership and meaningful service.

Outstanding CPA in Business & Management Honoring significant contribution to the leadership of the profession through superior competence and positive change.

Outstanding CPA in Public Practice Honoring significant contribution to the leadership of the profession through superior competence and positive change.

Outstanding Leadership Council Member Recognition of service to the UACPA.

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Nominate a CPA the journal entry | April 2017 to

Outstanding Educator Given to a full-time college accounting educator in recognition for superior performance and demonstrated high ideals.

Rising Star Individual who exemplifies excellence and dedication to the UACPA and profession Women to Watch: Experienced Leader Recognition of a professional who has advanced to a higher level or leadership position — including partners, owners, executives and elected officials.

Women to Watch: Emerging Leader Awarded to a professional who has made significant contributions to the profession and her community, but who has not yet reached the highest levels of advancement.

be honored at www.uacpa.org/nominate

the journal entry | July 2016

24 24

2016 - 2017 Donations

T

he following is a list of contributors to the Utah CPA Foundation and Utah CPA PAC for the fiscal year ending March 31, 2017. We want to recognize all of the contributors and thank them for the generous support they have provided.

Utah CPA Foundation

The Utah CPA Foundation, which supports financial literacy programs to educate the public, raised $2,360.

$5 - $49

$100 - $500

Laura C. Browne W. Dale Westenskow Scott R. Henderson Kitt Roland Finlinson Clinton Armstrong Harold J. Dolato Terry L. Green Spencer H. Clawson Melanie Livingston Rober O. Richins Betty J. Williams Richard Scoresby Norman Mellor Lisa B. Higley Jeremy LeFevre

Bryan C. Bolander Brent Florek Ray O. Westergard Richard N. Greene Melissa Fjelstrom W. Brent Maxfield Jay C. Niederhauser Donald G. Mantyla Bryce E. Olson

$50 - $99 Michael Robinson Kitt Roland Finlinson Georgia H. Bircumshaw David Crabtree Barbara M. Smith Gert O. Foerster Brian L. Winegar Phillip G. Marsing Hollie Andrus

Utah CPA PAC The Utah CPA Foundation, which helps advocacy efforts and gives CPAs a voice on the Hill, raised $1,375.

$5 - $49 Russell V. Baird James Druffner Roger O. Richins

$50 - $99 Ray O. Westergard Gert O. Foerster W. Val Oveson

$100 - $500 Chesley H. Erickson Robert J. Cole Jay C. Niederhauser Steve L. Chin Clark A. Wilkinson Blake E. Christian Brent R. Hall

To make a donation to the Utah CPA Foundation or the Utah CPA PAC, visit www.uacpa.org/donate.

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25

Meet the Executive Board

Work, Volunteering & Service Gavin Hutchinson President Work: EnableUtah Title: President "I am responsible for the overall operation of a non-profit in Ogden that works with over 200 individuals with cognitive and/or physical disabilities to provide them with essential employment skills and help them achieve community based employment."

Monica Teuscher Gardner Vice President Work: Teuscher Walpole, LLC Title: Audit Manager "I do a variety of audit and attest services and some booking services, but my favorite part is working and interacting with clients."

What led you to volunteer for the Association?

What led you to volunteer for the Association?

"Initially there was a need for volunteers to serve as the Northern Chapter Secretary and Treasurer and there wasn't anyone that was speaking up to volunteer. I figured that without volunteers the organization would falter, so I said to a friend, "If you will help so will I." He quickly raised his hand and volunteered us both for the positions."

"It is a great organization that supports some wonderful people. I look forward to meeting and getting to know more of the members. I also wanted to try something new to expand my knowledge and experience."

In what other capacities do you volunteer/serve?

"I currently serve as a school board member for a charter school, serve as the treasurer of a start-up non-profit in Ogden and serve as a member of the board for the Utah chapter of the Job Placement and Development board.

Spring and fall will find me coaching youth soccer and baseball teams."

Matt Klein President-Elect

Jay C. Niederhauser Treasurer

Work: Lifetime Products Title: International Controller/Finance Senior Manager

Work: Niederhauser & Davis, LLC, Certified Public Accountants Title: CPA

"I am responsible for all international accounting as well as all finance and managerial accounting aspects of the global business including budgeting, costing, and reporting."

"I am the owner and founding member."

What led you to volunteer for the Association?

"After I passed the exam, I was looking for somewhere to get involved and the Association was my first stop, as you can tell I didn't need to look any further. I really enjoy associating with my professional peers and advocating for the profession in Utah."

In what other capacities do you volunteer/serve?

"I'm involved with the Davis Chamber of Commerce welcoming committee.

Since I office in Clearfield, I've missed my association with 'downtown' and looked for ways to get to know people and businesses around me locally."

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In what other capacities do you volunteer/serve?

"I serve as treasurer on the board of a not-for-profit organization, An Angels Rescue, which offers resources and support to women experiencing an unplanned pregnancy, as well as mothers who are parenting alone. I also teach math as an adjunct at Salt Lake Community College, both in their traditional program as well as their prison education program."

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What led you to volunteer for the Association?

I wanted to give back to the profession. A phone call from Hollie didn't hurt either!

In what other capacities do you volunteer/serve?

"Wasatch District Chairman – Boy Scouts of America; Varsity Scout Team Coach; Treasurer and Executive Board Member – Prospector Square Property Owners’ Association; Shift Coordinator – Provo Temple."

Stanley E. Jenne Secretary Work: Utah Valley University Title: Professor Jenne teaches courses in fraud examination, financial accounting, and auditing. Performing research and providing leadership in the Department of Accounting.

What led you to volunteer for the Association?

"As a CPA, I am interested in the health and future of our profession and want to make a contribution to its success. As an academic, I want to be involved in the profession so I can stay abreast of changes and better prepare my students to have successful careers."

In what other capacities do you volunteer/serve?

Meet the Executive Board Amy Anholt ProNet Work: Dental Select Title: Chief Financial Officer As a key member of Dental Select's Executive Team, Anholt has a strategic role in the overall management of the company. As CFO, she has primary day-to-day responsibility for planning implementing, managing, and controlling all financial-related activities of the company, including direct responsibility for accounting, billing, forecasting, strategic planning, job costing, deal analysis and negotiations, and private and institutional financing.

What led you to volunteer for the Association?

"The camaraderie and professional growth I experience as a member of the UACPA led me to volunteer. The UACPA builds me up, personally and profes"I have been involved on and off for many years in the Boy Scouts of America. I have held many volunteer positions including scoutmaster, varsity sionally and has provided me with numerous opportunities to associate coach, merit badget counselor, committee chair, and most recently Webelos with amazing professionals in my field and in my community. The UACPA motivates me to reach new heights in my profession, and I want to support Leader in the Cub Scout program." and challenge my peers to do the same."

In what other capacities do you volunteer/serve?

"I enjoy volunteering with Junior Achievement of Utah and supporting their mission 'to inspire and prepare young people to succeed in a global economy.' Another organization that I’m thrilled to be associated with is the Tyler Robinson Foundation whose mission is 'to help families battle the unseen costs of childhood cancer.' "

Owen Ashton Member at Large Work: Owen Ashton, LLC Title: Inspirational speaker, mental health advocate, executive coach "I help organizations be more effective in achieving their missions through one-onone executive coaching."

What led you to volunteer for the Association?

"I enjoy the association with other CPAs, networking opportunities, and a chance to give back to our great profession

In what other capacities do you volunteer/serve?

"I am a member of the board of directors and teach mental health promotion classes for the National Alliance on Mental Illness Utah; Blogger for Esperanza Magazine; I strive to serve others through volunteer positions in my church."

Michael Beach Member at Large Work: Southern Utah University Title: Assistant VP for Finance "I oversee all accounting, finance, and business-related functions of the University.

Public Treasurer responsible for all Institutional and Endowment Fund Investments."

What led you to volunteer for the Association?

"I feel I have a professional duty to build upon the foundation of our predecessors, and continue to elevate the profession through continual sustainable improvements."

In what other capacities do you volunteer/serve?

"I am involved politically serving as a Precinct Chair, I serve in the Iron County Jail and Southwest Youth Detention Center as a clergy volunteer. I have taught Personal Finance at the University and to public groups. Instrumental in starting the Cedar Breaks Chapter of the UACPA and served as its first president." >>Continued on next page

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27

Meet the Executive Board Brandon Allfrey AICPA Council Representative

Susan Speirs CEO

Work: Squire & Co. Title: CPA, Partner

Work: UACPA Title: CEO

"I am the tax and retirement advisor and president of our Computer Club (aka, the one who gets to fix all the technology issues)."

What led you to volunteer for the Association?

"The opportunity to work with and learn from the great people in our profession. While participating in the AICPA Leadership Academy, I found that there was so much to gain from associating with other CPAs both personally and professionally."

In what other capacities do you volunteer/serve?

"Board Member for Pleasant Grove Chamber of Commerce; member of Tax Practice Management Committee with the AICPA and youth basketball coach."

"I represent the ideals and mission of the UACPA. Create relationships within the CPA community to foster opportunities for our members to serve. Provide a hub for our members to reach out to other members in areas of networking, community service and leadership opportunities, which will help them succeed in a challenging and ever-changing environment. Create relationships in the advocacy arena, including the Department of Occupational and Professional Licensing (DOPL), our universities, industries, firms and non-profit community, and our governmental agencies."

What led you to volunteer for the Association?

"The opportunity to give back."

In what other capacities do you volunteer/serve?

"Utah Jump$tart Coalition for Financial Literacy, YWCA, the Women's Summit in connection to the Department of Corrections."

Find New Opportunities

Explore job listings at uacpa.org Get your job posted for 30 days by sending the description to Amy Spencer, as@uacpa.org 28

the journal entry | April 2017

Board Bullets

News from the UACPA Board

Here is a glance at what has been happening at the Utah Association of CPAs: • The Accounting Policies and Procedures manual was approved.

• Debrief on Leadership Council – recommendations were made to have more breakout session time with regards to the strategic plan with June Leadership Council being a time to map out the current year and January a report back meeting.

• Bruce Cutler met with the board regarding single sign-on database enacted by the 2016 general session of the legislature for input and ideas of the business portal at its current design. Utah is the first state to try to establish a single sign-on for all departments.

• UACPA staff reported on their first year of strategic plan implementation and base measurements. A report of the 2016 member satisfaction survey results was also presented.

• A DOPL update was given. Chris Rogers is the new bureau manager replacing Dan Jones. We have also been charged with creating rules language to clarify the requirement of Utah Laws and Rules for new licenses.

• Budget approved for FYE March 31, 2018.

Meet the UACPA Staff

Q: How have you served/volunteered?

April Deneault CPE Manager "I am heavily involved in my daughter’s gymnastics, which includes bringing snacks to the meets, getting the girls checked in, making sure they are competing at the correct level and age group and timing warm ups on the different apparatuses."

Braden Thompson Membership Development Coordinator "I was a mentor to a child for three years while I attended USU. When I moved to Salt Lake, I got involved with Make-A-Wish and helped out with all kinds of things ranging from granting wishes to strategic consulting. I have been the man behind their Easter Bunny costume for four years now, which is a blast!"

Amy Spencer Marketing & Communications Manager "Growing up, I was active in 4-H which led me to participate as a youth leader for exchange students and teach at-risk girls.

Currently, I am a member of the Junior League of Salt Lake City and serve on their board. I've also volunteered with a greyhound rescue and adoption group."

Tom Horn Financial Director "Back in the '80s I helped with the Boys & Girls Club in Sugar House. In addition to donating to various charities over the years, I have done accounting/auditing and donated time to the Gina Bachauer Foundation and the Indian Rehabilitiation and Counseling Center. I currently help with the UACPA golf tournament."

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Photos, Capitol Tour

More than 30 CPAs came to the Capitol Tour on Wednesday, Jan. 18 where they got a chance to learn about the rooms in the Utah State Capitol.

The tour was followed by a presentation from Utah State Auditor John Dougall.

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Photos, BAM Forum

The BAM Forum held a tour, talk and lunch at Nicholas & Company where guests learned about the warehouse and earned CPE on Monday, Feb. 27.

Leadership Council

Winter Leadership Council was held on Friday, Jan. 6 at Little America. More than 55 attendees were there for the gavel exchange for past-President Jonyce Bullock, an AICPA update from Brandon Allfrey and group discussions.

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31

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the journal entry | April 2017

MEet a uacpa member

Five Minutes with Michael Lockwood Michael Lockwood, CPA grew up in Bountiful, Utah as the youngest of six children. He married his high school sweetheart Cheri. Forty years later they are still happily married with six children and 14 grandchildren. Mike's career began in construction and retail sales. One job offered a tuition reimbursement program, allowing him to attend Salt Lake Community College. Eventually, he was able to transfer to the University of Utah and earn his Bachelor's and Master's Degrees in Accounting. Although most of his career has been in government accounting, Mike became a sole practitioner in 2006 focusing on estate and gift taxation. He is also currently serving as the president of the UACPA's Northern Chapter.

What led you to become a CPA? Those first 10 years in construction and retail sales showed me what I did not want to be doing when I turned 40. My dad was the head accountant at Hill Air Force Base, so I grew up exposed to accounting. When I went

back to school, my idea of heaven on earth was sitting behind a desk and pushing a pencil all day. Besides debits and credits made sense to me. If you’re going to be an accountant, be the best — Be a CPA. What other volunteer organizations have you been involved with? For 35 years, I have been involved with the Boy Scouts of America. I have held several positions in local units, district and council levels and have been awarded many honors. I currently serve on the Trapper Trail Council and Mount Ogden District Advancement Committee. I am an old Cubmaster at heart.

What do you like to do outside of work? I am a PADI Scuba Instructor with more than 400 logged dives.

With Utah being a desert state, you may ask, “Where would someone go diving?” Any 20-foot mud hole will do!

What would surprise people to know about you? While diving Catalina

Island, I was informed that octopuses were in the area. While trying to locate them, I was attacked by the California State Marine Fish, a Garibaldi. That’s right, I was fin slapped on the top of my head by an over grown gold fish with an attitude. TWICE! That is what happens when you stick your head in a nest. It is the only time I’ve ever been attacked.

What are some of your goals as a professional? CPAs get a bad rap.

Something to do with not having a personality. US?! One of my goals has been, while supplying quality work and standing behind it, to be a CPA but never mistaken as one. Over the years, whether its been in scouting or scuba, I have been accused of being many things. I can safely say I have never been mistaken as a CPA. Go figure!

What advice do you live by?

Following the thought, “Life is too short...” — If you’re not having fun, you’re doing something wrong. FIX IT! ■ the journal entry | April 2017

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CPECourseSchedule

Register online at uacpa.org, then Education & Events or call the UACPA office at (801) 466-8022.

Field of Study

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

June 6/22/17

8

K2's Technology for CPAs - Don't Get Left Behind

TBD

K2 Enterprises

$285

$340

6/23/17

8

K2's Excel Best Practices

TBD

K2 Enterprises

$285

$340

9/18/17

8

Getting the Tax Aspects of Business Planning Right from Formation to Termination

Martin Satinsky

Surgent

$285

$340

9/19/17

8

Fiduciary Income Tax Returns - Form 1041 Workshop with Filled-in Forms

Martin Satinsky

Surgent

$285

$340

9/25/17

8

Documenting Your EBP Audit: What You Need to Know

Randy Dummer

AICPA

$285

$340

9/26/17

8

Audits of 401(k) Plans

Randy Dummer

AICPA

$285

$340

9/28/17

8

K2's Quickbooks Online and Other Top Accounting Software for Small Businesses

TBD

K2 Enterprises

$285

$340

9/29/17

8

K2's Advanced Excel

TBD

K2 Enterprises

$285

$340

10/2/17

8

Sweeping Your Workpapers for Landmines: Avoiding Deficient Audits

Marty Van Wagoner

Surgent

$285

$340

10/3/17

8

A&A Year in Review: Exploring the Latest Issues and Changes FAcing CPAs

Marty Van Wagoner

Surgent

$285

$340

10/6/17

8

Fraud Update: Detecting and Preventing the Top Ten Fraud Schemes

Marty Van Wagoner

AICPA

$285

$340

10/13/17

4

The Bottom Line on the New Lease Accounting Requirements

Marty Van Wagoner

AICPA

$170

$195

10/13/17

4

Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know

Marty Van Wagoner

AICPA

$170

$195

10/16/17

4

Data Breaches & Other Cyber Frauds: A 21st Century Risk to Your Organization

Robert Minniti

AICPA

$170

$195

10/16/17

4

Fraud in Small-to-Medium-Sized Entities

Robert Minniti

AICPA

$170

$195

10/17/17

8

Internal Control and COSO Essentials for Financial Managers, Accountants and Auditors

Robert Minniti

AICPA

$285

$340

September

OCTOBER

10/18/17

8

Integrating Audit Data Analytics into the Audit Process

Robert Minniti

AICPA

$285

$340

10/19/17

8

K2's Business Intelligence, Featuring Microsoft's Power BI Tools

TBD

K2 Enterprises

$285

$340

10/20/17

8

K2's Small Business Internal Controls, Security, and Fraud Prevention

TBD

K2 Enterprises

$285

$340

10/23/17

4

Fraud Risk in Governmental and Not-for-Profit Organizations

John Georger, Jr.

AICPA

$170

$195

10/23/17

4

GASB No. 74 & 75: OPEB Accounting & Auditing Workshop

John Georger, Jr.

AICPA

$170

$195

10/24/17

8

Governmental Accounting and Reporting Advisor

John Georger, Jr.

AICPA

$285

$340

*Early-bird pricing available for classes when registering at least two weeks in advance. (Excludes 4 hour courses and core training courses) AICPA Members receive an additional $30 off the price of each 8 hour course $60 for 16 hour courses. (Excludes 4 hour courses and core training courses) where the AICPA is listed as the vendor. Use promo code AICPA8 for 8 hour courses and AICPA16 for 16 hour courses.

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CPECourseSchedule

Register online at uacpa.org, then Education & Events or call the UACPA office at (801) 466-8022.

Field of Study

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

november 11/1/17

8

Applying the Uniform Guidance for Federal Awards in Your Single Audits

Robert Leslie

AICPA

$285

$340

11/2/17

8

Yellow Book: Government Auditing Standards

Robert Leslie

AICPA

$285

$340

11/6/17

8

Annual Update for Preparation, Compilation, and Review Engagements

Christopher Rouse

AICPA

$285

$340

11/7/17

8

AICPA's Peer Review Program Advanced Course

Christopher Rouse

AICPA

$285

$340

11/8/17

8

K2's Business Continuity - Best Practices for Managing the Risks

TBD

K2 Enterprises

$285

$340

11/9/17

8

K2's Budgeting and Forecasting Tools and Techniques

TBD

K2 Enterprises

$285

$340

11/10/17

8

AICPA's Federal Tax Update

Michael Blackburn

K2 Enterprises

$200

$340

11/13/17

4

The New Controllership: Keys to Boosting Financial Performance

Arthur Pulis

AICPA

$170

$195

11/13/17

4

Financial Forecasting: Planning for Success

Arthur Pulis

AICPA

$170

$195

11/14/17

8

Advanced Controller and CFO Skills

Arthur Pulis

AICPA

$285

$340

11/16/17

8

Construction Contractors: Accounting, Auditing and Tax

Thomas Sheets

AICPA

$285

$340

11/17/17

8

Form 990: Mastering Its Unique Characteristics

Thomas Sheets

AICPA

$285

$340

11/27/17

8

Annual Tax Update: Corporations and Pass Through Entities

Michael Blackburn

AICPA

$285

$340

11/28/17

8

Annual Tax Update: Individuals and Sole Proprietors

Michael Blackburn

AICPA

$285

$340

11/30/17

8

U.S. GAAP: Review for Business & Industry

Marty Van Wagoner

AICPA

$285

$340

12/4/17

4

Reviewing Partnership Tax Returns: What are you Missing?

Bruce Nelson

AICPA

$170

$195

12/4/17

4

Reviewing S Corporation Tax Returns: What are you Missing?

Bruce Nelson

AICPA

$170

$195

12/5/17

8

Income and Expense Recognition Strategies to Minimize Income Taxes

Bruce Nelson

AICPA

$285

$340

12/6/17

8

Annual Update for Accountants and Auditors

Marty Van Wagoner

AICPA

$200

$340

12/11/17

8

Hottest Tax Topics for 2017

12/12/17

8

Analytics and Big Data for Accountants

DECEmber

12/13/17

8

Annual Update for Controllers

12/18/17

4

Social Security and Medicare: Maximizing Retirement Benefits

Michael Blackburn

AICPA

$285

$340

John Cox

AICPA

$285

$340

John Cox

AICPA

$285

$340

Pamela Davis-Vaughn

AICPA

$170

$195

12/18/17

4

Smart Tax Planning Strategies for Individuals

Pamela Davis-Vaughn

AICPA

$170

$195

12/19/17

4

Accounting Methods & Periods: Including Form 3115

Pamela Davis-Vaughn

AICPA

$170

$195

12/19/17

4

Protecting Your Client Against Tax Return Identity Theft

Pamela Davis-Vaughn

AICPA

$170

$195

12/20/17

8

Advanced Tax Strateegies for LLCs and Partnerships

Pamela Davis-Vaughn

AICPA

$285

$340

12/21/17

8

Governmental and Not-for-Profit Annual Update

Robert Leslie

AICPA

$285

$340

12/22/17

8

Not-for-Profit Financial Reporting: Mastering the Unique Requirements

Robert Leslie

AICPA

$285

$340

*Early-bird pricing available for classes when registering at least two weeks in advance. (Excludes 4 hour courses and core training courses) AICPA Members receive an additional $30 off the price of each 8 hour course $60 for 16 hour courses. (Excludes 4 hour courses and core training courses) where the AICPA is listed as the vendor. Use promo code AICPA8 for 8 hour courses and AICPA16 for 16 hour courses.

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35

State &Local

government conference This conference provides timely information for CPAs who perform audits or provide management service for state or local government entities. This year’s sessions will feature GASB updates, a leadership presentation, an economic update and a variety of breakout sessions.

8:05 – 9:05 GASB Update – Financial Statements David Bean

Governmental Accounting Standards Board

9:05 – 9:20 Networking Break 9:20 – 10:35 Leadership: Surround Yourself with Greatness Chad Lewis – BYU Athletics 10:35 – 10:50

Refreshment & Networking Break

10:50 – 11:50 GASB Update – Projects in Process David Bean GASB

Utah Retirement Update

Kim Kellersberg – Utah Retirement Systems

Single Audit Uniform Guidance Squire 11:50 – 12:55 Lunch 12:30 – 12:55 From Death to Taxes: Life Lessons Learned Gavin Hutchinson, CPA

Enable Utah – UACPA President 1:00 – 2:00 GASB Update – A Deeper Dive into OPEB and Tax Abatements

David Bean – GASB

Fraud Within Local Governments Van Christensen Workforce Services

Recruiting & Retaining Employees TBD

2:00 – 2:10 Refreshment & Networking Break 2:10 – 3:10 Economic Update Juliette Tennert, M.A. – University of Utah 3:10 – 3:15

Networking Break

3:15 – 4:15 Utah Laws & Rules - Ethics Susan Speirs, CPA, CGMA - UACPA

4:15 Adjourn the journal entry | April 2017 36

May 5, 2017 Sheraton Hotel, 150 W. 500 S., Salt Lake City CPE Credit: 8 hours $248 for UACPA Members Registering by April 21 $275 for UACPA Members Registering after April 21 $335 for Nonmembers

Member Benefits

The UACPA Honors 100% Membership

AGILITY

Congratulations to the firms and businesses curerently participating in the UACPA's 100% membership program. This demonstrates their commitment to the profession, to the Association's high ethical standards and a commitment to life-long learning.

The UACPA's Affinity Partners help you get the most out of your membership Agility offers UACPA members a 10% discount on any of their ReadySuite solutions. Contact Trevor Mickelson at 720-490-4531, or Trevor.Mickelson@agilityrecovery.com.

National Affinity Service

Identify protection experts have you covered for $12.95 per month or $16.95 per month for a family. Visit healthwealth. fit/uacpa_infoarmor

CCH

UACPA members receive a discount on the U.S. Master Tax Guide and more. Visit cchgroup.com and use code Y3819

iTransact

iTransact, a full service payment processing company, rewards UACPA members with a residual payout program.

Email Colston Robinson, c.robinson@itransact.com or call 801-951-8178.

World Benefit Solutions

UACPA members receive discounts on group medical insurance, dental, life and disability, vision and individual insurance policies. Contact Andrew Stott, astott@worldbenefitsolutions.com or 801-759-0421.

Camico

The Mutual Insurance Company offers UACPA members a variety of benefits. To learn more, call 800-652-1772 or email inquiry@camico.com.

Office Depot

UACPA members can save up to 40% on office products, printing, technology and furniture. Visit uacpa.org to learn more.

PUBLIC PRACTICE • Allred Jackson • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Hawkins Cloward & Simister • Haynie & Company • Jones Simkins • Pinnacle Accountancy Group • Pinnock, Robbins, Posey & Richins • PricewaterhouseCoopers • Savage Esplin & Radmall • Squire • Stayner Bates & Jensen • Tanner, LLC INDUSTRY • LDS Church Auditing Department • Workers Compensation Fund Firms with 10 or more full-time CPAs are eligible to be a part of the 100% membership program. Learn more by talking to Braden Thompson, bthompson@uacpa.org or call 801.466.8022

Learn more about member benefits by talking to Amy Spencer, as@uacpa.org or calling 801.466.8022

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37

Learn Leisure

at your

Take your next class online.

With more than 2,000 webinars to choose from, you can find classes tailored to your CPE needs. Our partners have classes that will fit into your schedule.

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ContactList

1

Accounting Issues

When UACPA members have questions about accounting issues, help is available from the UACPA Accounting Issues Committee.

Each month, a member of the committee is assigned to answer accounting questions and help you interpret the rules as they apply to your particular situation. The following members may be contacted during the months listed.

April

May

Ted Rokich 801-263-3090 trokich@fdic.gov

Larry Deppe 801-626-7838 deppelarry@msn.com

In Memoriam William Earl Johnson Feb. 1, 1922 — Feb. 21, 2017 UACPA Member since 1952 UACPA President 1969 - 1970

June Mark Anderson 801-532-2200 manderson@eidebailly.com

CPE Approval — Does This Qualify?

When UACPA members have questions regarding CPE Approval and whether or not something may or may not qualify, they can turn to the UACPA CPE Approval Committee for answers. Each month, committee members are assigned to answer member questions related to CPE approval. Below are the members’ who may be contacted with your questions.

April - June Steve Avis 801-532-7800 stevea@hayniecpas.com

Tax Issues

Scott L. Robinson 801-990-5918 srobinson@tannerco.com

The Tax Issues Committee focuses on legislative and regulatory issues and does not answer technical questions. For assistance with a technical matter, please refer to the UACPA referral tool at uacpa.org. Direct questions related to legislative or regulatory issues to taxissues@uacpa.org

Classified Ads To place your classified advertisement and reach Utah CPAs, contact the UACPA at mail@uapca.org.

Utah Practices for Sale: Orem Metro Area-$185K: solid fee structure, good cash flow near 50%, predominately accounting (88%), tax work (12%), loyal client base consists mostly of Spanish-speaking clients, thus the ideal buyer will be bilingual. Park City-$600K: available after 4/15/17, (93%) tax, quality client base, strong fee structure, tenured staff in place, highly-desirable location. For more information, please call 1-800-397-0249 or to see listing details and register for free email updates visit www.AccountingPracticeSales.com.

THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individuals and firms, looking for practices now. We also have the experience to help you find the right fit for your firm, negotiate the best price and terms and get the deal done.

To learn more about our risk-free and confidential services, call Ryan Pannell with The Holmes Group at 1-800-397-0249 or email ryan@accountingpracticesales.com. the journal entry | April 2017

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Utah Association of CPAs 136 S. Main Street, Suite 510 Salt Lake City, UT 84101

Nonprofit Org. U.S. Postage

PAID Salt Lake City, UT Permit No. 1996

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