The Journal Entry - October 2017

October

2017,

Vol.

IV

|

The

CPA

Pipeline

From Students to CPAs Meet the campus ambassadors who are transitioning to become leaders within the profession.

www.uacpa.org the journal entry | October 2017

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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

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 | October 2017

in this issue | October 2017

feature story

Meet the Future CPAs at Utah's Schools 12 8 New Members............................................................................................4 Movers & Shakers......................................................................................5 President's Message...................................................................................6 Message from the CEO............................................................................. 7 From Campus to Career...........................................................................8 From CPA to ProNet............................................................................... 14 By the Numbers: Labor Statistics.......................................................... 16 Ensuring a Modern-Functioning IRS for the 21st Century............... 17 How the Self-Employment Tax is Miscalculated................................. 21 Women in Accounting: Katie Chandler ..............................................24

Getting Involved with IRS Reform 17

Meet a Member: Nate Staheli

In Memoriam...........................................................................................26 Quarterly Survey Results........................................................................26 Meet a Member: Nate Staheli.................................................................27 Meet the Executive Board......................................................................28 Meet the UACPA Staff ............................................................................29 Board Bullets............................................................................................29 Comic: Generally Excepted....................................................................30

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UACPA Member Benefits

Photos: Golf Tournament.......................................................................32 Member Benefits/100% Membership Firms........................................35

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CPE Schedule...........................................................................................36 the journal entry | October 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 August 31, 2017.

Fellows Joelee Holdaway Gretchen Hofeling Vickey Sellers Travis V. Olney Spillman Steven Ricks Sara Ting Melanie Roberts BDO USA, LLP Maria Rowley Career Step Ronald K. Mitchell Charlie Larson Jones Simkins LLC Guzel R. Sanders Joshua Duskin Chris Edwards Grant Thornton LLP

Nathan Schweitz David Higham Jihye Green Kyler Williams WSRP, LLC Andrew Peterson Roland A. Radack Deseret Management Corporation Robert G. Hunter Nicole M. Young America First Credit Union Zebb Kapp Weston Bell Ernst & Young LLP Scott Wagstaff Michael Eggleston Small Business Accounting & Tax LLC

David A. Borsos John Nixon Granite Federal Credit Union University of Utah David S. Adams PrimaryData, Inc. Chase Cuthbertson Kent Van Leeuwen Tanner LLC Robert L. Otteson Mark Lewis Oracle Consulting Rob Haertel Tax Accounting Corp of America Naomi Stanfield 4

Ian Prescott Timothy Jensen AgReserves, Inc. Mark Johnson Johnson & Associates CPAs Mark Caruso Wells Fargo Bank Joseph Hillstead J Russ Bradshaw Anderson Bradshaw PLLC Eric Jacobsmeyer

the journal entry | October 2017

Craig Ward Geigerrig Ryan V. Porter Steven Carroll GE Healthcare

Joel Johnson Innovative Performance Solutions Ray Whitney First American Title Insurance Agency

Terry Rushton

Steven J. Judd Jr. Dain Batty JUDD, HOLDAWAY & ASSOCIATES

Andre Lortz Maverik

Matt Budd Hibana Solutions

Jason Kingston

Todd Ogaard

Howard Pickering Integrative Accounting & Consulting

Allison Johnson Larson & Company, PC

Krista Baker

Kelly Mendenhall Annamarie Bosley Stephen Dewidt Lisa Nemeroff Ryan Roberts Jeffrey Jarvie Ralph Montrone Acima Credit, LLC Brandon Soto Chad Glines Jake Hill South Sanpete School District Joey Hadley Cornerstone Research & Development

John M. Taylor Matt Parker Cache Trucking LLC Ryan Taylor PricewaterhouseCoopers LLC Blake Roper Misty Christensen Bruce W Walkup Deseret Trust Company Austin Galvez HEB Business Solutions Todd Valentine Beehive Insurance Agency, Inc. Curtis Rawlings ACS, A Xerox Company James Christensen Vivint, Inc.

Christopher Kellett William Ryan Troy Thornton Icon Health & Fitness, Inc. Trevor Larsen Sole Treadmills Ronald Funk Benjamin Cole Probar Greg Bleazard Dave Dutson Belsono Management Group Emily Lubbe College Loan Corporation Student Members Dixie State University Siu Hong Yu Gina Tedrow Black Hills State University (SD) Renee Baker Weber State University Mickenzie Beckett Westminster College Jacob Rose University of Utah Gregory J. Sonnenberg Utah State University Chase Nielso Rosemary Preston Shelby Carter Utah Valley University Toumani A. Traore Juan C. Fuentes Jill Ottley LuSz Davies Jordan Teerlink Garrett Harris Maycie Barnhart Tori E. Smith

Movers& Shakers Ernst & Young LLP has promoted Chris Okawa and Mark Peterson to be partners in their Salt Lake Chris Okawa City office.

Okawa was promoted from senior manager and has spent the majority of his 13-year career serving many of Utah's Mark Peterson high-growth companies. He currently serves on the board of directors for the Salt Lake City chapter of Junior Achievement.

Peterson, who joined the EY Assurance practice in 1998, was promoted from his position as executive director.

Peterson recently served as an adjunct, part-time accounting instructor at the University of Utah and actively supports the National Ability Center and mentors students at the University of Utah and Weber State University.

Hawkins Advisors, LLC will become part of Eide Bailly LLP on Oct. 30, bringing a regional CPA firm into Utah County. Hawkins Advisors will assume the Eide Baily name and bring eight partners and 58 staff to the firm. Eide Bailly currently has 169 partners and staff in offices in Lehi, Salt Lake City and Ogden. Based on total number of staff, Eide Baily will be the largest CPA firm in Utah.

Eric Greene, a Senior Associate in the Assurance practice at PwC is one of 38 CPAs honored by the AICPA as a member of the Leadership Academy's ninth graduating class. Greene has two Bachelor's in accounting and finance from the University of Utah and two Master's in accounting and business administration from Westminster.

Grant Thornton LLP has promoted Ryan Alexander to corporate tax managing director. Alexander joined the firm in 2005 and has 12 years of experience advising clients on a range of income tax-related matters.

The Salt Lake City office of BDO USA, LLP will be relocating to the Wells Fargo building at 299 S. Main Street.

Matt McReynolds, BDO's Assurance Office Managing Partner, says the new space "will allow us to showcase BDO's Exceptional Workplace design. Exceptional Workplace is a flexible office strategy that enables a collaborative work environment that serves different work styles across BDO practice groups and generations. In addition to encouraging teamwork and maximizing productivity, the strategy has paid dividends in the recruitment and retention of staff."

Cook Martin Poulson, P.C. has promoted Dustin Wood to audit partner. He has been with the firm for more than 12 years and specializes in compilations, reviews, and audits of financial statements and in the preparation of not-for-profit information returns. Wood earned his master's degree in accounting from Utah State University.

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President's Message

Gavin Hutchinson, CPA

A

s I stood on the stage at my high school graduation in rural Maine, I never would have imagined that I would eventually become the president of the Utah Association of CPAs. My plans included earning a degree in Plastics Engineering and creating some revolutionary plastics product and becoming rich. It has been quite a ride over the past 30 years, one that eventually found me in an entirely different part of the country and career, albeit, it has been a ride that I would not change.

After discovering that engineering, and especially plastics engineering, was not for me, I tried my hand at a couple of different jobs including managing a store in a mall, working in a florist shop, roofing, and being a dietetic aide in a hospital, before I settled on serving others in the capacity of an emergency responder. I worked for a few fire departments and ambulance companies driving fast and helping others when they needed it the most. While this was definitely an exciting experience, as I aged and began thinking of having a family, my need for the adrenaline rush waned, and I began working with my father, who was a funeral director.

me with the greatest opportunity for upward mobility.

My neighbor then asked if I had ever considered studying accounting. My immediate response was, “No, I have too much of a personality to be an accountant!” To which he kindly informed me that he owned an accounting firm and thought that he had a pretty good personality. My neighbor continued to answer my questions and became a mentor to me as I saw his wisdom and changed majors.

As I was finishing my accounting undergrad degree, I was hired by a local accounting firm and spent three wonderful busy seasons working audit engagements and specializing Working with my father in the funeral home, I discovered that in single audits. Eventually, one of the firm's audit clients I could assist people in a different time of need, and I found approached me and asked if I would be willing to work that, although it was a different type of crisis I was assisting for them, helping charter schools with their financial with, it was still a crisis. And that in times of crisis we need requirements. After 10 years there, I landed at my current the help of others. I was able to learn several valuable lessons position of leading a nonprofit agency, EnableUtah, in Ogden. while working in the funeral industry and learned a lot about EnableUtah works with individuals who have physical and interacting with others. cognitive disabilities. We provide those people with vocational training and employment opportunities with an eventual goal It was while working in the funeral industry that I met my of finding everyone we help community-based employment. wife, who encouraged me to use my associates degree and Again, this is a position where I am able to help those that springboard it into a bachelor’s degree. I was determined need the help. that I would one day own a funeral home in New England and I should therefore study finance. But alas, this was not Although my employment career has been varied, the to be. My wife received an offer for employment in Utah and common theme throughout is that in each position, I have we decided to move. At about this same time, while talking been able to provide help to people that need it. It also with a neighbor about my education, I was asked why I had reminds me that even though our first ideas seem perfect, chose to study finance. My answer was that I wanted to work often we can find something great if only we will listen and in business management and felt that this degree provided keep an open mind. ■ 6

the journal entry | October 2017

CEO's Message

Susan Speirs, CPA

W

hen should I take the CPA exam?"As we work with our university students, we hear this question often.

There’s a John Lennon song that says, “Life is what happens to you while you’re busy making other plans.” How true this is for graduates as they move from student life, oftentimes, immediately into career life.

Although the number of accounting graduates continues to rise, research from the AICPA indicates that candidates taking the CPA exam is stagnant. Only 70% of accounting graduates sit for the exam. Our students and young professionals need to understand the importance of taking the exam while they are still in “student mode.”

Sitting for the exam while attending college can provide a competitive edge and demonstrate determination that employers are seeking in future hires. In Utah, a candidate is required to complete 135 semester hours to sit for the exam.

Often, a student may sit after first semester in their master’s program and, before they graduate, pass at least one of the exams.

Here are some ideas to help you in your CPA Exam phase of life.

life is busy as is work life. Add family, friends and outside interests to the mix and finding time to study can be a challenge. Figure out whether you’re a morning person or a night person. Knowing what time of day you perform best will help you as you schedule your time to sit for the exam.

• Reward yourself for little triumphs. The more time you spend studying for the exam, the less time you have for everyone and everything in your life.

Squeeze some time to have fun and breathe a little.

If you set a goal to complete three sections of study material and have it finished by Friday night, take Saturday and Sunday off and enjoy.

• Be positive! One way to ease your mind during the exam is to remember that the AICPA includes pretest questions on the CPA Exam. Also, remember that the better you are doing on the Exam, the more difficult the material becomes. If the material seems more challenging, then chances are you’re answering the questions correctly.

• Take a review course. Taking the exam without any study material can be very frustrating. The materials are designed to give you the CPA Exam experience and allow you to practice with CPA Exam type Without a doubt, job security is important to our accounting questions. graduates. The CPA license is universally recognized as a top • As you study, tackle simulation questions as well certification and will open many doors. Research indicates as multiple choice questions. Focus study time that university graduates will change careers several times. on learning actual concepts being taught. As you Accounting is a competitive profession and if one wants to take mock examinations you will be better able to have all options, having a CPA license will give you entrance process questions and solve problems. into public practice, industry, accounting startups, the FBI and even PhDs. ■ • Map out a schedule of study times. University the journal entry | October 2017

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From Campus to Career Eight percent of the UACPA's membership is comprised of students. This group of more than 350 students, primarily from universities and colleges throughout Utah, are budding CPAs. They are engaged in numerous activities on campus and connect to the profession through a range of networking events including the UACPA's annual student conference.

Among this group of soon-to-be professionals are a select few who lead events for other future CPAs in their schools. These campus ambassadors serve as liaisons to the profession through the UACPA. Get to know them, their schools and the path that led them to cultivate a career as a CPA.

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the journal entry | October 2017

Brandon S. Nielsen Gina Tedrow Brigham Young University Dixie State University

"Accounting is defined as the "language of business." With a skillset and understanding of accounting and its key principles, you can help companies and individuals achieve their goals and, ultimately, financial success."

Hardest Class. Advanced Corporate Finance. The professor enjoyed putting students on the spot to test their knowledge and push them to the limit.

I learned how to be confident in my answers.

"I started college as a history major, but after taking financial accounting as an elective credit, something just clicked. I love piecing together puzzles and solving complex problems, and accounting has always challenged and advanced my critical thinking skills."

Hardest Class. My Corporate Tax class was one of the hardest. The material was dense and creating tax returns for different entities was time consuming.

Best Food on Campus. Pork quesadillas from The Blue Line.

Best Food on Campus. I love this vegetable humus wrap from one of our campus dining services.

Best Part of BYU. It's academically challenging, spiritually enlarging, and faculty and students are intelligent and kind.

Best Part of DSU. The accounting program and the location. Because we are smaller, I have really gotten to know the professors.

In Your Free Time. Serve and spend time with my beautiful best friend, my wife.

In Your Free Time.You can find me on the soccer field. I play for the women’s team at Dixie. I also love hiking and doing anything outdoors.

Goals for the Year. 1. Successfully take the GMAT and get accepted to an accredited university to get my PhD. 2. continue to build a strong marriage with my wife and build quality relationships with my colleagues. 3. Find opportunities to serve and build the lives of those around me.

Goals for the Year. Finish my final semester strong! My academic goal is to make the dean’s list this semester, and I have an athletic goal to win the PacWest and get the conference ring!

Neil Owens Southern Utah University

"I wanted to get some sort of business degree. I love the idea of preparing financial statements and providing information that is helpful to investors, creditors, and management. On top of that, I like the career possibilities that accounting has to offer, and I can see these career tracks taking me where I want to go."

Hardest Class. Advanced Accounting.

It also turned out to be one of the most enjoyable classes to date.

Best Food on Campus. Park Place has the most amazing crepes and panini.

My second favorite place is the Greek restaurant, Fat Zeus.

Best Part of SUU. The class size. The student-faculty ratio is 18:1. I have built relationships with my professors, which adds that extra little something to the quality of my education.

In Your Free Time. I enjoy camping, hunting, fishing, and spending quality time with my wife and family.

Goals for the Year. I would like to participate in at least two hours of community service every month. the journal entry | October 2017

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Feature Story

Student Membership mATTERS

Kade Nordfors University of Utah

Nash Way University of Utah

"Accounting feels like a big puzzle. I love the feeling I get when I solve that puzzle.

It feels like a new challenge everyday. "

"I like the organization and structure of accounting. Accounting also provides a lot of different opportunities as you gain experience and knowledge."

Beginning this fall, the UACPA and AICPA have teamed up to give students even more support as they work their way through school and exams. This dual membership supplies students with the essentials to prepare them for the exam, careers and networking.

Students benefit from UACPA Membership with the following:

• Can attend any UACPA chapter • • •

luncheons or conferences for free Discounts on CPA Exam review courses from Becker, Roger, Yaeger, and Gleim The UACPA’s quarterly magazine, The Journal Entry Monthly student email newsletter

Students benefit from AICPA Membership with the following: • Can apply for national scholarships • Have access to industry news and publications such as the AICPA News Update and CPA Letter Daily via email as well as the online version of the Journal of Accountancy • Get exclusive discounts and offers on products and services from partners like Hertz, Dell, FedEx and many more • Get super-valuable deals and access to the latest industry information at a fraction of even regular AICPA member prices

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Hardest Class. Probably my current finance class. It starts at 7:30 am and I live 30 minutes away from campus.

Best Food on Campus. I love getting a Chorizo Sunrise from Einstein Bagels.

Best Part of the U. The people that I am surrounded by. It makes going to school very educational, while also having fun doing it. I've made many great friends at the school.

In Your Free Time. I play on the U's soccer team. I love and pay very close attention to all sports. I'm getting back a passion to read again, which has been very fun!

Goals for the Year. UACPA Goals: Bring more awareness of the UACPA to my campus and to those who are aiming at obtaining their CPA. Personal Goals: Reach and maintain a 4.0 in my accounting classes. Expand my professional network as well as my friend network. Continue to learn a lot and have fun doing it.

the journal entry | October 2017

Hardest Class. Human Genetics Best Food on Campus. Big Ed's Bacon Cheeseburger with fries!

Best Part of the U. Honestly, it's the amazing professors.

In Your Free Time.Trail running, hiking, mountain biking, river rafting, camping.

Goals for the Year. To run a trail 25K

Feature Story

Taylor Clark Utah State University

Shelby Carter Utah State University

Alex Price Utah Valley University

"Business and finance are both fascinating and complicated to me, and I want to learn the language of it so I can help people excel at their businesses."

"Working in the field of accounting will allow me to continue learning and gaining new experience throughout my career. Another reason I chose this profession is because it offers the flexibility to care for a family while continuing to work."

"I enjoy working with numbers and with people. Accounting is a happy medium where you can do both. Also, this subject just makes sense in my brain and I enjoy learning about it!"

Hardest Class. Cost accounting. I struggled with the introductory course and am now in the upper-level class trying to keep up.

Best Food on Campus. Aggie Ice Cream, no question.

Best Part of USU. The faculty is all about jump-starting your career and they make it a real focus. Huntsman Hall is also an amazing facility to be in.

In Your Free Time. Sorry, no free time.

Well, maybe a little, and I enjoy biking and Friday movie nights with my wife.

Goals for the Year. To keep my GPA up and go to as many events as I can.

Hardest Class. The Auditing Class that I'm in right now. It's hard to understand exactly what the book is trying to teach me especially as auditing is more conceptual than most accounting classes.

Best Food on Campus. Aggie Ice Cream. A popular flavor is Aggie Blue Mint. I also really like pumpkin shakes, made by blending pumpkin pie with your choice of ice cream.

Best Part of USU. People care about you! I have enjoyed getting to know the faculty and students here. Also, student life at USU is amazing because Aggies like to have fun. There are always events, clubs, and student jobs to participate in.

In Your Free Time. I enjoy performing classical music. Playing the violin allows me to express myself in a creative way that words don’t always allow. I also enjoy hiking, rock climbing and scuba diving.

Goals for the Year. I have three main goals: meet new people and develop friendships, perform a concert at an assisted living center and to learn the basics of weight training exercise.

Best Food on Campus. Cup Bop! Best Part of UVU. I love how UVU is so personable. They have people who want to see you succeed, you just have to get out of your comfort zone and talk to them. These people are a huge help and I love how they are all over the school!

In Your Free Time. I love hanging out with my family and playing sports. I'm currently involved in coed soccer and softball teams. I also like to read, sleep, and watch movies!

Goals for the Year. Graduating in the Spring of 2018 and finding a job that I am excited for and enjoy. I want to get further in my plan for starting my own business.

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Feature Story

Jared Alvarez Utah Valley University

Vanessa Coburn Weber State University

Nick Romney Weber State University

"I have always been interested in business, accounting and economics. As a teenager I read the financial section of the newspaper and enjoyed it! I have the opportunity to learn about those subjects and to develop financial technical skills that are transferable to several types of businesses."

"I've always been really organized and structured, and accounting really allows me to utilize those skills so I can become successful in the business world."

"I chose an accounting degree for a few reasons: 1. During my first accounting class, my professor encouraged me to consider an accounting career. 2. My understanding of accounting principles came naturally. 3. From what I saw in the business school, it was the most challenging and rewarding degree."

Hardest Class. Cost Accounting. It took a lot of time, but I survived!

Best Food on Campus. Costa Vida. The employees there all know me.

Best Part of UVU. I have enjoyed the close interaction and support with professors. They are sincerely interested in helping students succeed.

In Your Free Time. I like the outdoors and playing sports. I enjoy traveling which I will do after graduation to celebrate.

Goals for the Year. Finish the MBA in Accounting and start taking sections of the CPA Exam. I plan to increase UVU student's participation with the UACPA and in the accounting profession. I look forward to start my career in a company where I can develop successfully as a professional in the next few years.

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Hardest Class. Global Accounting.

I took it as a block class, so it was a semester's worth of information crammed into half a semester.

Best Food on Campus. We bring in great local Greek food every week for our Beta Alpha Psi professional meetings. It's definitely something to look forward to every Tuesday.

Best Part of WSU. Weber has small class sizes so you can get to know your classmates and professors. They also provide opportunities for leadership.

In Your Free Time. Weber State's gym has free athletic classes, and I've really enjoyed yoga and Zumba. I'm also up for a good Netflix binge every once in a while.

Goals for the Year. I'm looking to get an internship for spring where I can gain additional accounting experience.

I also plan to start the master's program within the next year.

the journal entry | October 2017

Hardest Class. Chemistry was definitely the hardest. I spent hours studying to understand this foreign language.

Best Food on Campus. The food from the University Broiler served at our BAP meetings. The gyros, yellow rice, and kabobs are out of this world.

Best Part of WSU. The personal relationships that I have developed with professors are valuable.

In Your Free Time. I like being out on the lake, camping, and taking evening walks. In the winter, I enjoy snowboarding, snowshoeing, and tubing. I also like to play basketball, softball, and soccer.

Goals for the Year. Graduate this fall with my undergraduate in accounting, purchase a home, and start into the master’s program the following spring.

Feature Story

Dorothy Zhou Westminster College

Norka Nishijima Westminster College

A P C A U nference Student Co

"Accounting is the language of business."

Hardest Class. I've taken more than one challenging class — you just have to take extra effort!

Best Food on Campus. Mozzarella sticks.

Best Part of Westminster. The second floor of the library. Students can relax and study at the same time on the comfortable couches.

In Your Free Time. Hanging out with family and friends.

Goals for the Year. Be prepared for graduate school applications.

Jan. 26

"I always believed that accounting was the language of business, and in order to master business you need to understand the core of it. I'm on my way to being fluent in it!"

f Utah University o

Hardest Class. Currently, I am in Tax and it seems to be a bit hard, but it will be doable!

SAVE THE DATE FOR the 2018 Student Conference

Best Food on Campus. You can't go wrong with a good quesadilla.

Best Part of Westminster. The clubs are the best part. Being able to hang out with friends in your same field or interests always rocks. Especially the accounting club.

In Your Free Time. I love watching movies, I have basically seen all the rom-coms on Netflix. I also love to play with my little Yorkie named Lucy.

Goals for the Year. 1. Be able to create more networks. 2. Lead great accounting club events. 3. Leave a legacy at my college before I graduate this year.

Accounting students and educators from around the state come together at the annual student conference.

Conference session will include tips on passing the CPA Exam, potential career paths as a CPA and panels where professionals can address the student's burning questions. The next student conference will be held Jan. 26 at the University of Utah.

Details will be announced soon.

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Professional Networking & ProNet

By Amy Anholt | ProNet Liaison for the UACPA Board

T

aking the leap from college to the accounting profession is a huge milestone in one’s career. Almost as monumental as passing the CPA Exam. Although, once in the field you are somewhat sent to sea without a life jacket. Okay, that’s an extreme. Once in the field, you must practice what you’ve learned — and it isn’t always like you experienced it in your college classes or from studying for the CPA Exam. My point is this: The transition from student-to-career can be much easier for you by embracing the UACPA. If you begin your career in a large public accounting firm, they offer many helpful tools. However, the benefit you’ll receive by participating in UACPA activities is a network of professionals from all reaches of the accounting field — public and private practice, government, public and private companies from many different industries. The diversity is endless.

The ProNet group of the UACPA has a mission to secure the future of the accounting profession, which includes assisting in the development of established professionals. The ProNet has several initiatives to aid in their mission, including, campus ambassadors, an inauguration for newly licensed CPAs, and new professionals networking events. Additionally, the ProNet hosts a three-day Leadership Academy where you are given the opportunity to develop and strengthen key leadership traits. After you’ve attended Leadership Academy you become part of an alumni group and the opportunities to collaborate and grow continue. Twice per year, you are invited to an exclusive Leadership Council with the UACPA. The UACPA utilizes this group of esteemed individuals to assist in reaching outlined objectives to achieve established goals. By being part of this alumni group, members are given the opportunity to become part of the UACPA in an impactful way.

Attending and participating in UACPA activities or joining one of their many committees provides a great place to strengthen and develop highly sought-after skills in our profession. The people you’ll interact with will always have something to offer you. It’s also a great place to find a mentor.

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the journal entry | October 2017

Amy Anholt (top) with elementary school students she led during the service project part of the 2014 - 15 Leadership academy class (below).

The benefits from the experiences I’ve had because of my membership in the UACPA have been instrumental in my growth as a CPA in industry. After kick-starting my career with large public firms, I stepped into a role with a private Utah-based company. The UACPA was key to me feeling secure during this step in my career. They have been a resource for me and have provided a fellow group of professionals who I can tap into to assist me in my role at Dental Select. I’ve embraced the UACPA’s CPE offerings, the ProNet council, and the Leadership Academy.

The relationships I’ve gained through the UACPA have been valuable to my professional growth. I look forward to fostering these relationships as well as developing new ones.

I believe that together we are more, together we are stronger, together we will continue to show the world that CPAs are a huge asset to their organizations! ■ Amy Anholt is the CFO at Dental Select and serves as the ProNet liaison on the UACPA board.

Top 5 Technology Mistakes

HuntsmanMBA.com

One-year MBA

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Priority application deadline December 1 for Fall 2018

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(435) 797–3624 the journal entry | October 2017

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by the

Numbers

These numbers reflecting accounting jobs come from Robert Half and the Bureau of Labor Statistics (BLS)

Labor Statistics

11 26

Percentage of projected growth in accounting and auditing jobs between 2014 and 2024 Percentage of accountants and auditors who handle accounting, tax preparation, bookkeeping and payroll services

45

14

Average number of paid vacation days for employees in their first 5 years (and 9 holidays) as an accountant.

Percentage of CFOs who are very concerned about retaining their current staff

$32.76

Hottest Positions

Median hourly rate for accountants and auditors

• Controller

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the journal entry | October 2017

• Accounting Manager • Financial Analyst • Internal Auditor

• Payroll Manager • Senior Accountant • Staff Accountant

Ensuring a ModernFunctioning IRS for the 21st Century

By Val Oveson, CPA, CGMA, CFF and Troy Lewis, CPA, CGMA

P

erhaps there is no one group better able to speak to the current state of the Internal Revenue Service (IRS) than CPAs. According to the IRS, about 60% of taxpayers use tax professionals to prepare their tax returns each year with a significant number of those returns being prepared by a CPA. Many experienced CPAs working in a tax practice believe the service provided by the IRS has been decreasing over the past decade and that there are more service failures as a result.

Unacceptable Level of IRS Service

In response to the May 2015 resolution, many stakeholder groups, including leadership of both the Utah Association of CPAs (UACPA) and the AICPA, started to press policy makers to adopt meaningful reforms. In both 2015 and 2016, immediately after tax-filing season, the AICPA conducted a survey of its tax-section members to better understand the year-over-year comparisons of perceived IRS service levels. The empirical information was gathered Because of practitioner's concerns nation-wide, in May 2015, primarily to document service-level perceptions as well the American Institute of Certified Public Accountant’s as to determine what areas of IRS service were most in (AICPA) Governing Council adopted a resolution urging need of being addressed. While the results for both years policy makers to “make recommendations that enable the produced disappointing results, the final report certainly IRS to achieve its stated mission and to transform it into a wasn’t unexpected. Some of the most frequently reported modern-functioning, evolutionary, and respected federal service failures involved direct practitioner communication agency for the 21st Century.” The Council argued that, with the IRS. The data demonstrated that the IRS service among other things, the IRS should specifically focus on levels to tax practitioners resulted in the IRS correctly balanced service and enforcement priorities, technological answering questions and resolving initial issues raised by advancements, and an increased protection of taxpayer rights. tax professionals on the IRS Practitioner Priority Hotline In short, the Council advocated for a new modern IRS and only about one-third of the time. Also, the amount of time urged policymakers and stakeholders to immediately start a to receive a substantive response to practitioner written discussion to improve tax administration. communication took 61 days or longer for more than twothirds of those responding. the journal entry | October 2017

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IRS Reform

Chart 1: IRS Practitioner Priority Hotline effectiveness If you called the Practitioner Priority Hotline, how often was the initial IRS representative able to answer your question without transferring you to another agent or claiming your question was “out of scope”?

Chart 2: IRS response to practitioners’ written communication If you represented taxpayers who received an IRS notice over the last six months, approximately how long did it generally take for the IRS to provide a “substantive response” to written correspondence?

The subject of IRS reform is not sudden or new but it has gained additional attention and generated additional concern over recent months as Congress has started to be more focused on reported shortcomings from their constituents. For instance, a “blueprint” on IRS reform was included in a June 2016 document proposed by House Speaker Paul Ryan (R-WI) entitled “A Better Way: Our Vision for a Confident America.” That blueprint provided a general vision for a reformed IRS that would streamline the tax return filing process, create a potential “small claims court,” mandate a service first mentality for the agency and increase a commitment to taxpayer assistance.

While lacking in specific details, the Speaker signaled a strong desire to entertain changing the focus of the IRS, which has remained virtually unchanged since the Restructuring and Reform Act (RRA 98).

UACPA Responds

In early 2017, UACPA members were asked by their leadership to participate in a focus group to identify specific areas of IRS service that concerned them.

They were also asked to recommended solutions that could be proposed at a combined IRS reformation meeting that was held in mid-March 2017 in Washington, D.C. Groups attending this meeting, at the invitation of the AICPA, were the American Bar Association, National Association of Enrolled Agents and several other national tax groups.

We were asked to participate and communicated the concerns raised by the UACPA focus group.

The Report

The recommendations provided by members of the UACPA were combined with the ideas from other national 18

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IRS Reform groups to create a final report entitled, "Ensuring a modernfunctioning IRS for the 21st Century" (aka, The Report). The Report was the byproduct of other regional focus groups' outputs and the combined working experience of 22 tax professionals attending the multiple meetings in Washington D.C. The Report was eventually approved by nine different national organizations including the AICPA . This group presented its final recommendations to Congress on April 3, 2017. The UACPA involvement in the process helped shape some of the final recommendations in this Report.

The Report concludes by simply stating that the current level of IRS services for both taxpayers and practitioners is unacceptable. To transform the agency into a more acceptable modern-functioning regulatory agency, the group recommended seven specific steps: 1. Re-establish the annual Joint Congressional Committee reviews 2. Require the Joint Committee on Taxation to provide a biannual report 3. Require a GAO review of the purposes and functioning of the IRS Oversight Board 4. Enable the hiring of qualified and experienced professionals at the IRS 5. Determine the appropriate level of service and compliance the IRS is accountable for and dedicate appropriate resources to the agency to meet those goals 6. Gauge performance with customer satisfaction surveys 7. Establish within the IRS, a dedicated “executive-level” practitioner services unit that provides for centralized and modernized services to timely resolve issues

Recommendations #1 through #5

Historically there have been service problems at the IRS that have been addressed by the Congress after pressure has been turned up by taxpayers and practitioner groups. In the mid-1990s, after an outcry over taxpayer treatment, there was a major effort to reform the IRS that included the work of a bi-partisan commission that took 18 months to complete.

Motivated by this commission’s efforts, the Congress passed the RRA 98 on July 22, 1998 that represented the most sweeping changes to the IRS since a similar effort was

UACPA Members who participated in the February 10, 2017 focus group included Val Oveson, Kent Bodily, Richard Green, Blake Christian, Clinton Armstrong, Gail Anger, Jeff Bickel, Jerry Bregg, Ted Hill, MK Mortensen, Kent Christensen, Doug Arveseth, and Aaron Pond. undertaken in 1954. Not all the original recommendations of the commission were adopted.

The AICPA-lead group looking at the current IRS service failures wanted to make sure that the recommendations for reform from RRA 98 were considered and a determination made as to the level of implementation. There was consensus among the March 2017 working group that the IRS and the Congress had drifted away from many of the most important features of the RRA 98 and that a return to the basic recommendations from nearly 20 years ago would be the key to solving the IRS current service delivery failures today.

Recommendations 1 – 5 were taken from the provisions of the RRA 98 and are focused on the leadership and oversight of the IRS. The group felt it was critical that there be alignment among the President, the Congress and the IRS leadership on the mission, goals and service level expectation of the tax system in order to properly execute on those objectives. This top-level congruence was felt to be essential in solving the specific service delivery deficiencies experienced by our UACPA members (i.e. long telephone wait times, out of date technology, and lack of adequate authority to deal with taxpayer issues, amongst others noted).

Customer Satisfaction (Recommendation #6)

The IRS, like it or not, is in the service business. However, unlike other service industries the IRS enjoys a monopoly. the journal entry | October 2017

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IRS Reform There is no “competition” per se. If the IRS has a service failure, the taxpayer is not provided an opportunity to deal with another government agency or private provider to satisfy their tax collection and administration needs.

However, despite this lack of free-market competition, the IRS could still improve if they took advantage of measurement tools like customer satisfaction surveys. The notion of customer satisfaction surveys is not new to the IRS. However, recently the service stopped surveying and stopped publishing the results. The Report recommends that performance at all levels of the IRS should be measured and appropriate success measures created. To be fair, the IRS will likely never receive glowing reports because of the nature of their mission. However, utilizing customer feedback would allow them to better prioritize their limited resources and be more strategic in customer service improvement plans.

Nina Olson, the National Taxpayer Advocate, in her 2014 report to Congress summarized this issue: “The IRS will never be a beloved federal agency, because it is the face of the government’s power to tax and collect. But it should be a respected agency.

When there are accusations of bias or heavy-handed actions by the tax agency, these reinforce the already deep concerns the U.S. taxpayer bears towards taxes, such as concerns going back to the nation’s founding.

But casting the entire agency and all its employees as an out-of-control agency in response to the actions of a few, no matter how deplorable those actions may be, is harmful to taxpayers and tax compliance. We need to recognize that the IRS and its employees play a vital role in the economic welfare of the country. And we need to find a way to support the agency even as we hold it accountable for what is often a thankless task.”

Dedicated Practitioner Services Unit (Recommendation #7)

The Report calls for the IRS to create a new dedicated “executive-level” practitioner services unit that would centralize and modernize its approach to all practitioners.

Over time, the IRS has established several functional support areas and departments, but these departments do not communicate or coordinate with each other. This lack of coordination is highly inefficient for practitioners. A consolidated approach would allow for a practitioner’s online portal with account access to all their clients’ information

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as well to expedite practitioner correspondence. The development of the online portal would of course need to consider technical solutions that include data security and log-in procedures. However, the failure to embrace such technological advances has left the IRS as a government agency running with '80s technology with just mail and fax capabilities while trying to administer taxes in a 21st Century economy.

Conclusion

The IRS needs to be reformed. While there are several specific areas that practitioners and other stakeholders point to as needing individual attention, the most recent AICPA report, "Ensuring a modern-functioning IRS for the 21st Century" highlights seven key areas in which policymakers should focus their attention to make significant changes. This report will be used by the AICPA and other tax practitioner groups to push for an IRS that provides first-class service and accomplishes the mission laid out by the President and Congress. We invite all Utah CPAs to engage in the discussion and continue to provide their unique insight to policymakers. As demonstrated through their involvement with this project, Utah CPAs can and continue to make a difference. ■

Troy K. Lewis, CPA, CGMA, is an Associate Teaching Professor at Brigham Young University. He is a former President of the UACPA and the former chair of the Tax Executive Committee of the AICPA.

W. Val Oveson, CPA is the CEO of Oveson Consulting, LLC. He is a retired Tax Partner at WSRP, LLC. He has served as Lt. Governor of Utah, Utah State Auditor, National Taxpayer Advocate of the IRS, Chair of the Utah State Tax Commission, Managing Director at PricewaterhouseCoopers and Consultant with KPMG.

How the SelfEmployment Tax is Miscalculated

By Sheldon R. Smith, CMA, CPA, CIA and Lynn R. Smith

E

mployees in the United States pay Social Security and Medicare taxes (often referred to as FICA taxes) through employer withholding. These taxes are matched by employers, and both the employee and employer taxes are submitted to the U.S. federal government. Because those who are selfemployed have no separate employer, they pay both the employee and employer share of Social Security and Medicare taxes. Starting in 1990, two tax law changes became effective in an attempt to make the self-employment taxes equivalent to the employee-employer payroll taxes.

First Change

The first of these changes, in Internal Revenue Code (IRC) Section 1402(a)(12), allows self-employment income (SEI) to be reduced by 7.65% (the sum of the 6.2% Social Security tax and the 1.45% Medicare tax) when calculating net earnings from self-employment (NESE) from which the self-employment taxes are calculated. The argument for this reduction is that since an employee does not have to pay employment taxes on the amount the employer pays as employment taxes, a self-employed individual should not have to pay self-employment taxes on the amount representing the employer’s share of the self-employment taxes.

However, this reduction results in an understatement of NESE and, thus, an understatement of self-employment taxes. The reduction understates NESE in two ways. (The illustrations provided here assume that the individual has

only SEI and no employee earnings. If the individual also has employee earnings, the computations would be more complicated.)

First, by multiplying by 92.35%, SEI is reduced too much.

The incorrect calculation currently used is derived as follows: NESE = SEI – (7.65% x SEI) NESE = 92.35% x SEI However, the corrected net earnings from self-employment (CNESE) should be calculated as follows: CNESE = SEI – (7.65% x CNESE) 107.65% x CNESE = SEI CNESE = SEI/107.65% CNESE = 92.8936368% x SEI This is the correct formula because it calculates the reduction as 7.65% of the amount on which self-employment taxes are actually paid (CNESE) rather than on 7.65% of the SEI. The difference is due to the mathematical truth that multiplying by 92.35% [1 – 7.65%] is not the same as dividing by 107.65% [1 + 7.65%]. Because CNESE is larger than NESE, using NESE for calculating self-employment taxes understates the amount of taxes that should actually be paid.

Second, for earnings above the Social Security earnings base ($127,200 for 2017), all SEI is still multiplied by 92.35% [1 – 7.65%] in calculating NESE. This reduces SEI too much for the journal entry | October 2017

21

Self-Employment Tax amounts beyond the Social Security earnings base because the employer would no longer be paying the 6.2% Social Security tax, but the reduction assumes the employer is still paying both the 6.2% Social Security tax and the 1.45% Medicare tax. While NESE is still calculated as 92.35% of SEI, the correct calculation of CNESE would be calculated with only a 1.45% reduction of amounts above $127,200, and again, the percentage reduction would be based on CNESE, not SEI. The correct formula for CNESE for amounts where CNESE is above $127,200 would be CNESE = 98.5707245% x SEI - $7,773.68. The derivation of this equation is provided in the original article from which this column is summarized — Smith and Smith, “Undercharging for Self-Employment Taxes,” Tax Notes, Vol. 155, No. 7, May 15, 2017, 935946. Again, in the range where CNESE is above $127,200, CNESE would exceed NESE. Therefore, using NESE for calculating self-employment taxes understates the amount of taxes that should actually be paid.

The amount of the underpayment of self-employment taxes depends on the amount of SEI. •

•

•

22

Ignoring the $400 floor for self-employment taxes, as SEI increases from $0 up to $136,930.80 (the amount of SEI at which CNESE equals $127,200), the understatement of self-employment taxes increases from $0 to $113.89.

As SEI increases from $136,930.80 up to $137,736.87 (the amount of SEI at which NESE equals $127,200), the understatement of self-employment taxes decreases from $113.89 down to $23.04. The reason for this decrease is that even though CNESE is larger than NESE in this range, the marginal self-employment tax rate is still 15.3% [7.65% x 2] for NESE but has dropped to 2.9% [1.45% x 2] for CNESE. For SEI amounts above $137,736.87, the underpayment of self-employment taxes starts at $23.04 and increases, theoretically with no upper limit, as SEI increases, but would be bounded practically by the maximum amount of SEI an individual would report in one year. For SEI of $1 million, the understatement of self-employment taxes would be $1,578.57.

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Second Change

The second of the two tax law changes that became effective in 1990, in IRC Section 164(f), allows self-employed individuals to deduct one-half of the self-employment taxes in calculating adjusted gross income (AGI) on an income tax return.

Because employers can deduct their half of the employment taxes in calculating taxable income, this deduction allows self-employed individuals to deduct the portion of the selfemployment tax representing the employer’s share in calculating taxable income.

Because self-employment taxes are understated, the deduction for AGI of one-half of self-employment taxes is also understated. This results in an overstated AGI, an overstatement of taxable income, and an overpayment of federal income taxes. For states that have an income tax with federal AGI as the starting point, the overstatement of AGI on the federal tax return can also lead to an overstatement of state taxable income and state income taxes.

Other Implications

Besides the resulting overstatement of federal income taxes and a possible overstatement of state income taxes, the understatements of NESE and self-employment taxes have additional implications: •

Those whose SEI puts them below the Social Security maximum earnings base for the year will be credited on Social Security records with the lower NESE for the year.

Thus, when the Social Security Administration calculates their average indexed monthly earnings (AIME) and primary insurance amount (PIA), those amounts will also be understated, resulting in lower Social Security benefits during retirement.

•

The understatement of self-employment taxes could also result in an understatement of the 0.9% additional Medicare tax legislated in the Affordable Care Act, depending on the taxpayer’s income and filing status.

•

Since CNESE is larger than NESE, a self-employed individual would get to the Social Security maximum earnings base sooner using the CNESE calculation.

•

If the taxpayer also has employee earnings, the coordination between employee earnings and self-employment earnings in reaching the maximum earnings base would also be different if CNESE were used rather than using NESE.

Self-employment Tax •

•

If the taxpayer has net investment income along with SEI, the understatement of NESE could understate the net investment income tax.

For those with very small amounts of SEI close to the $400 floor, using CNESE will result in a self-employment tax liability at smaller amounts of SEI than when using NESE.

A change to the tax code to use CNESE rather than NESE for the calculation of self-employment taxes would make the calculations more consistent with the arguments that the selfemployment taxes should be equivalent to the employment taxes for employees and employers. Using CNESE would also make the amount on which self-employment taxes are paid the same as the net amount of self-employment income included in AGI on the income tax return. Using NESE, these two amounts are not the same. Using CNESE would also resolve the other issues mentioned. ■

Sheldon R. Smith, Ph.D., CPA, CMA, CIA, is a professor in the Woodbury School of Business at Utah Valley University. He can be reached at smithsh@uvu.edu or (801) 863-6153.

Lynn R. Smith is a lecturer in the Woodbury School of Business at Utah Valley University. He also works as the business manager for the Timpanogos Academy charter school. He can be reached at smithly@uvu.edu or (801) 863-6490

This is an edited reprint from Strategic Finance, Vol. 99, No. 2, August 2017, pp. 19-20, copyright 2017 Sheldon R. Smith and Lynn R. Smith.

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800 397 0249 www.APS.net Ryan@APS.net the journal entry | October 2017

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Closing the Gaap — Women in Accounting

Katie Chandler, CPA Interview By Aubrey Bickmore Neeley

K

atie Chandler is a senior audit manager for Tanner, the largest locally owned CPA firm in the state, where she has been for six years. Chandler serves clients in a number of industries including financial services, technology, manufacturing, healthcare, and non-profit.

What led you to a career as a CPA? Consistent with the majority of people in the industry, I didn’t dream of growing up to become a CPA, it was my practical nature that lead me here. When selecting a major I wanted to graduate with a marketable skill in a profession that had really great job opportunities and income that didn’t require a lot of schooling beyond a four year degree. There are surprisingly few degrees that fit those requirements, and luckily I enjoyed my accounting courses.

What advice would you give other female professionals who are starting out their careers? Don’t apologize. Years ago, someone told me that the difference between working with men and women was that women tend to apologize for everything, even when an apology is not warranted. I quickly discovered that I was guilty as charged and broke the habit.

Yes, there are times when we need to apologize; however, we 24

the journal entry | October 2017

don’t need to apologize for doing our job, being assertive, or speaking our mind.

Do you have a mentor? If so, what type of mentors have you had and how have they influenced your career?

As corny as it sounds, my husband has been the biggest influence on my career. He is someone that is independent of my daily work life and can give me very unbiased opinions.

He has pushed me to ask for things I never would have dreamed of asking for, or felt I deserved. He also thinks I am way more amazing than I see myself.

Do you have a personal motto you live by? If so, what is it and what advice would you share about it? Be comfortable being uncomfortable. I believe that the most successful people are those that are comfortable in challenging situations and look for opportunities to stretch themselves.

What would be your alternative career if you weren't a CPA? I like to think I would be a CIA agent or something really exciting, but honestly I can’t really imagine doing anything else. I don’t believe that you just go to school to become a CPA, you’re born a CPA and school just validates

Closing the GAAP — Women in Accouting why you are the way you are.

Tell us a bit more about your interests and hobbies outside of the profession. Our family loves to travel. It’s a great way to learn about other cultures, see new things; I also can’t get into my work’s VPN out of the country so I really have to unplug and we all reconnect. Our family has been to 22 countries and continue to add more to the list.

What path(s) did you take that lead you to where you are now in your career? Any strategic moves or initiatives that helped you? My career has been anything but traditional. I started my career working as an accountant in industry, then stayed home with kids for a few years, then came to public accounting. Although I could certainly be further ahead in my career if I had followed a more traditional path, I am the person that I am today because of the experiences I have had. I believe that you are most successful when you are comfortable with the experiences you have had and build on those, even if you don’t always know exactly where you are going.

Do you have advice or tips for male professionals in the CPA profession on interacting with female colleagues?

Don’t over think it. Women and men are both people and people want to be treated with respect.

What do you think women in the profession have to offer that is unique and advantagous? Besides just being awesome, women bring a unique perspective to the table. I often hear “I never thought of it that way.” I don’t think this is because I am particularly insightful, rather, the things I value as a woman are just different than those a male may focus on or gravitate to. We generally make better decisions after considering many different viewpoints and too often in our industry a woman’s perspective is missing. ■ Aubrey Bickmore Neeley, CPA, CGMA, is a director of financial reporting at Savage Companies.

She previously worked with KPMG as an audit associate then senior audit associate. She recently welcomed her first child and is enjoying her time adjusting to her new role as a mother.

The Journal Entry is printed by Transcript Bulletin Publishing.

We're a full service local printing company who enjoys printing for UACPA and would like to provide our printing services to you.

Call Shane at 435-840-0344

Connect with the UACPA. Facebook.com/UtahAssociationofCPAs

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the journal entry | October 2017

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Quarterly Survey In Memoriam Steve Smith

March 23, 1955 — July 22, 2017 UACPA Member since 1982

As we strive to improve the value of membership in the UACPA, we are seeking ongoing feedback from members.

Find quarterly surveys in your bi-monthly e-blasts. This quarter's survey is about UACPA communication.

What is your preferred method of receiving news from the UACPA?

Shane Poulsen

Sept. 3, 1970 — Aug. 24 2017 UACPA Member since 2000

How do you feel about text message updates/announcements from the UACPA?

Greg W. Haws

Aug. 20, 1952 — Sept. 14, 2017 UACPA Member since 1978

Edwin Hanson

Jan. 1, 1945 — Sept. 16, 2016 UACPA Member since 1983

Claire A. Nielsen May 1, 1929 — Sept. 12, 2017 UACPA Member since 1956

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the journal entry | October 2017

What information would you be interested in receiving via text message?

MEet a uacpa member

Five Minutes with Nate Staheli Nate Staheli, CPA was born in Washington, Utah, the fifth of seven children, where he lived on the family farm and fed more than 1,000 head of cattle and raised alfalfa. Staheli and his wife Angie Drake have 4 children. He is the Finance Chair in the Department of Accounting at the Dixie State University, Udvar-Hazy School of Business. He is a partner in Staheli & Jacobsen, a firm established in 1997. "I have lived all my life in St. George area, except for 2 years in Hawaii where I worked on a PhD, and 2 years in Okinawa, Japan serving LDS mission."

In 2013, Staheli completed the requirements for a Doctorate Degree and is an Associate Professor in Accounting at DSU.

Tell us about your role at DSU. The school has a well-established accounting program, with about 60 Bachelors earned each year. We are working on a proposal for a Master’s Degree, which should go before the Board of Trustees at DSU this fall. I am the current Chair of the Department of Accounting and Finance. Our accounting program is based on active-learning principles with all of our students required to participate in the Volunteer Income Tax Assistance program. In addition, we have activelearning environment with Quickbooks courses, financial statement modeling and decision making (Excel skill development) and accounting practicum courses.

What do you like to do outside of work? I am an avid sports fan and coached High School basketball for 15 years. I am now the Faculty Athletic Representative at DSU. I also enjoy spending time in the outdoors, particularly in Pine Valley, UT

What would surprise people to know about you? I am a national champion in computer applications. In 1997, I competed at a state business competition (PBL). I won the State of Utah competition and then competed at Nationals where I took first.

What are some of your goals as a professional? My current goal is to see the Master of Accountancy proposal to completion.

What have been your proudest moments as a CPA? I have enjoyed fighting for my clients. One time, I had the chance to represent a client in front of the Utah State Tax Commission and they ruled in favor of my client. This was early in my career and it gave me confidence to know that if I understood the law, was honest and applied it, I could help my clients.

What advice do you live by? I am an advocate of honesty and hardwork. Two quotes I love: "Success is peace of mind, which is a direct result of selfsatisfaction in knowing you did your best to become the best you are capable of becoming," by John Wooden and "Try a little harder to be a little better," by Gordon B. Hinckley. â–

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Meet the Executive Board

What school did you attend and why?

Gavin Hutchinson President

Monica Teuscher Gardner Vice President

"I attended almost 10 schools before

"I went to BYU for my bachelor’s (in math education) because I received a scholarship and the U for my masters (MAcc) because it was close to where I was living and working at the time. I got to know a number of fellow UACPA members through classes at the U.

graduating from the University of Massachusetts. By taking classes at all of these schools I was able to complete my degree in about 2-1/2 years while working full time and moving across the country.

Matt Klein President-Elect "I attended the University of Utah for all my accounting education. My parents met there and I was raised a good Ute fan. Plus, my wife had fourth row tickets in the MUSS when we started dating … GO UTES!"

Jay C. Niederhauser Treasurer "I attended Utah State University because it was affordable and close to home. I really never thought about going anywhere else.

Years later, I completed all of the coursework for a master’s degree at the Washington School of Law, but never completed the degree."

Stan Jenne Secretary

Amy Anholt ProNet Council

"My bachelor’s degree was from Weber State, it was close to home. The master’s degree was from Colorado State, they offered a graduate assistantship. My Ph.D. was completed at the University of Illinois – Urbana. Each school served me well, but the focus changed from location and money to reputation of the university’s accounting program.

"I attended Weber State University. I ended up there after hearing about their small class sizes and individualized attention. My experiences at WSU solidified my interest in the school. I developed great relationships with my professors and classmates, many of which continue today. Best of all, WSU provided a launching board for my career."

Susan Speirs CEO "I attended Weber State College before it became a university. Weber State runs in my blood, literally, as my great, great grandfather was one of the founders of Weber Stake Academy in 1889."

Hollie Andrus Past President "I attended Brigham Young University.

Growing up, I had always wanted to go to BYU even though my entire family went to another school. I chose accounting not knowing the high ranking of the program.

It did not disappoint. The MAcc and the CPA license that followed were the capstone to hard work and lots of late hours."

Not pictured: Michael Beach (Member at Large), Owen Ashton (Member at Large) and Brandon Allfrey (AICPA Council Rep) 28

the journal entry | October 2017

Meet the UACPA Staff

What do you like about fall/winter?

April Deneault CPE Manager

Board Bullets

News from the 1 UACPA Board

Here is a glance at what has been happening at the Utah Association of CPAs: •

everything, the slight chill in the air and the way the air smells after it rains. I love taking a drive to the mountains with my family to see the fall colors and I can’t forget about Halloween, Thanksgiving and football!"

The executive board approved the slate of names presented by the awards committee to be honored at the annual Inauguration & Awards dinner held September 27.

•

The executive board approved and signed a letter addressed to the Dixie State University Board of Trustees in favor of a Master’s of Accountancy program.

Braden Thompson Membership Development Coordinator

•

The executive board approved a new member benefit with Beehive Insurance and HSA Health Insurance Company to provide members with a group plan to compare with their own as health insurance renewal season begins. The plan rolled out in September 2017.

•

The executive board approved and signed a letter to the Utah State Board of Accountancy opposing language that would allow non CPAs to assume or use management accounting designations with certain caveats and restrictions. The UACPA’s position is that the proposed language will begin to strip the CPA brand of the integrity, competency and objectivity that it holds to the profession, users of financial information and the general public. The Utah State Board of Accountancy asked for the opinion of the UACPA as there is a joint proposal from NASBA and the AICPA.

"Boots and sweaters, pumpkin flavored

"Fall is the greatest season. Once October hits, I watch a scary movie every day. Yes, every day. And I love the crisp air and the fact that I don’t sweat when I go outside.

Plus, as a donut connoisseur, it’s the best time of year to pair my morning donut with creamy hot chocolate."

Amy Spencer Marketing & Communications Manager "I like the usual things: Changing leaves, fall harvest and Halloween. However, my extreme dislike of the cold means my true loves this time of year are warm drinks, electric blankets, hot baths, cozy fireplaces and Netflix.

Tom Horn Financial Director "For fall, I like the cooler weather for hiking, golfing and of course Utah football.

For winter I still like to get in a little skiing."

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The Rules Have Changed Credits

Don'’t Miss Out on Your New CPE Requirements Utah CPAs are required to earn three hours of ethics and 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.

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.

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the journal entry | October 2017

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.

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What every CPA needs to know about cyber security.

How to safeguard information, increase awareness of cyber risk, and protect your clients. www.camico.com/cyber-cpa

Accountants Professional Liability Insurance may be underwritten by CAMICO Mutual Insurance Company or through CAMICO Insurance Services by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. © CAMICO Services, Inc., dba CAMICO Insurance Services. All Rights Reserved.

CAMICO is sponsored by

CAMICO Harris Hauptman Senior Account Executive T: 800.652.1772 Ext. 6727 E: hhauptman@camico.com W: www.camico.com

the journal entry | October 2017

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Photos, Golf Tournament

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the journal entry | October 2017

Photos, Golf Tournament

The annual UACPA golf tournament was held Thursday, Aug. 24 at Bountiful Ridge Golf Course. More than $5,700 was raised for the Utah CPA Foundation.

Thanks to our sponsors: ADP, Netwize, Cost Segregation Consultants, Wells Fargo, Utah Educational Savings Plan, Wealth Wave, Premier Computing, Caselle and Foresight Wealth Management.

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33

SHOCKED BY YOUR

HEALTH INSURANCE RENEWAL? You owe it to yourself to check out the UACPA Health Plan

WHAT IS THE UACPA HEALTH PLAN? Groups of all sizes are looking for options to CONTROL the rising costs of insurance. The UACPA Health Plan is a solution to the ACA imposed regulations.

The UACPA Health Plan can help your company avoid the ACA Community Rating and join a large group pool of accounting firms to help control cost. Any Utah based accounting firms, and companies that directly support the accounting industry, can participate in the program.

Benefits Available Through the UACPA Health Plan...

Medical

Dental

Vision

Telehealth

Voluntary Onsite Programs

MEMBER BENEFITS     

Groups with 2 to 100 benefit eligible employees can participate in the UACPA Health Plan.

The UACPA Plan will not be subject to the “Essential Health Benefits” requirement.

The UACPA Plan will offer composite rates, not the age banded rates of a small group.

By joining the UACPA Health Plan, you are eligible for large group plan designs & premium benefits.

Your group may choose from a wide variety of plans to meet your specific needs.

FOR MORE INFORMATION: Contact Todd Valentine at Beehive Insurance tvalentine@beehiveinsurance.com 801-685-6860 UAC PA . O R G

Member Benefits

The UACPA's Affinity Partners help you get the most out of your membership

AGILITY

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.

ADP

ADP offers free payroll and free 401k services to members and affiliates. Please contact Alan Palacios at 801-956-7823 or alan.palacios@adp.com for more information.

Beehive Insurance

Groups with 2 to 100 eligible employees can participate in medical, dental, vision, telehealth and voluntary onsite programs through this plan. For more information, contact Todd Valentine, 801-743-7788, tvalentine@beehiveinsurance. com

National Affinity Service

Identity 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.

Camico

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

The UACPA Honors 100% Membership 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.

PUBLIC PRACTICE • CBIZ • Cook Martin Poulson • Davis & Bott • Eide Bailly • Hawkins • Haynie & Company • Jones Simkins • 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

Office Depot

UACPA members can save up to 80% on office products, printing, technology and furniture. Visit www.officediscounts. org/uacpa to learn more.

Learn more about member benefits by talking to Amy Spencer, as@uacpa.org or calling 801.466.8022 the journal entry | October 2017

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CPECourseSchedule

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

Date

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

OCTOBER 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

10/5/17

4

Cybersecurity Risk Management Program: What You Need to Know

Robert Minniti

AICPA

$170

$195

10/5/17

4

Cybersecurity Advisory Engagements: What You Need to Know

Robert Minniti

AICPA

$170

$195

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

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

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

november

11/10/17

8

AICPA's Federal Tax Update

Michael Blackburn

AICPA

$285

$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

11/15/17

8

U.S. GAAP: Review for Business & Industry

11/16/17

8

11/17/17

8

11/27/17

8

11/28/17

8

Arthur Pulis

AICPA

$285

$340

Marty Van Wagoner

AICPA

$285

$340

Construction Contractors: Accounting, Auditing and Tax

Thomas Sheets

AICPA

$285

$340

Form 990: Mastering Its Unique Characteristics

Thomas Sheets

AICPA

$285

$340

Annual Tax Update: Corporations and Pass Through Entities

Michael Blackburn

AICPA

$285

$340

Annual Tax Update: Individuals and Sole Proprietors

Michael Blackburn

AICPA

$285

$340

CPECourseSchedule

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

Date

Credit Hours Course Title

Instructor

Vendor

Member Fee*

NonMember Fee

DECEmber 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

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 (excluding 4 hour courses and core training courses) where the AICPA is listed as the vendor. Use promo code AICPA8 for 8 hour courses.

Winter Conference December 7 - 8

Sheraton Salt Lake City CPE: 16 hours Fees: $342 for Members before Nov. 27; $380 after Nov. 27; $455 for Nonmembers.

Also available as a webinar. Register at uacpa.org the journal entry | October 2017

37

Education

UACPA Conferences

Tax Symposium November 3

Topics will include • Retirement Plans/Tax Efficient Investing • Utah State Tax • IRS Appeals • Foreign Tax • LLC Partnership/SE Tax • Tax Update • Cyber Security

Location: UACPA Training Center, 136 S. Main Street, Suite 510 CPE: Eight (8) hours Fees: UACPA Members before Oct. 20 $248; UACPA Members after Oct. 20 $275; Nonmembers $335 AVAILABLE AS WEBCAST

Technology Conference November 14 - 15 Topics will include • Tech Update • Reporting Tools for Productivity • The CPA firm of NOW! • Excel Tips & Tools for Better Budgets and Forecasts • Excel Data Models, Combinations & Consolidations • Small Business Accounting • What’s New with Microsoft Office 365, Zoho Docs, & G Suite by Google Cloud • Security Blocking & Tackling • Excel Guru – Tips to Make Your Head Spin

• • • • • • • • • •

Microsoft Word Tips & Tricks Hot Tech Tools, Apps & Services Working Effectively from Anywhere Good Fences Make Good Neighbors Beyond Small Business Accounting Password Management Tools Creating an Incident Response Plan Introduction to Array Formulas Implementing DLP for Better Security and Privacy Detecting & Preventing Computer Fraud

Location: South Towne Expo Center, 9575 S. State St., Sandy CPE: 16 hours Fees: UACPA Members before Nov. 30 $418; UACPA Members after Nov. 30 $465; Nonmembers $545

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the journal entry | October 2017

Non-Profit Conference November 29

Topics will include • Overview - New FASB Standards • Tax Update • Cyber Security • Pitfalls, Tips and Traps Involving Grants • Policies & Procedures Panel • Q&A Location: Tanner, 36 S. State Street CPE: Four (4) hours Fees: UACPA Members, $35; Nonmembers, $40 AVAILABLE AS WEBCAST

UACPA Conferences

ContactList

November 30

Accounting Issues

Business Valuation

Topics will include • Introduction to Business Valuation • Income Approach – Projections • Income Approach – Discounts and Cap Expenditures • Market Approach • Asset, Weighting Reconciling

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.

Location: UACPA Training Center, 136 S. Main Street, Suite 510 CPE: Eight (8) hours

October

November

Fees: UACPA Members before Nov. 16 $248; UACPA Members after Nov. 16 $275; Nonmembers $335 AVAILABLE AS WEBCAST

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

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

Accounting & Auditing Conference December 1

Topics will include • Accounting & Auditing Update • Cyber Security • Audit Update • Leases & Revenue Recognition Update • Ethics Location: UACPA Training Center, 136 S. Main Street, Suite 510 CPE: Eight (8) hours Fees: UACPA Members before Nov. 17 $248; UACPA Members after Nov. 17 $275; Nonmembers $335 AVAILABLE AS WEBCAST

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

Interested in Buying a Practice? See local and nationwide listings at www.APS.net and register for free email updates or call us at 1-800-397-0249.

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@APS.net.

December Mark Anderson 801-532-2200 mva@prolunginc.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.

October - December Steve Avis 801-532-7800 stevea@hayniecpas.com

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

Tax Issues

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

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39

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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the journal entry | October 2017