On Balance Magazine - May/June 2021 by WICPA

May | June 2021 | Vol. 17 No. 3 A publication of the Wisconsin Institute of CPAs | wicpa.org

Angela Thomas, CPA | 6

Plus: American Rescue Plan Act | 12 Navigating tax controversy | 16 New GASB standards | 28 Remote auditing | 36

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A publication of the Wisconsin Institute of CPAs | wicpa.org

May | June 2021 Vol. 17 No. 3

6 Features

Columns

6 Hill seeker Angela C. Thomas, CPA, is used to conquering challenges — she’s a triathlete. This year, she will lead the WICPA board of directors. By Marcia Tillett-Zinzow

28 GOVERNMENT ACCOUNTING GASB update A slew of new GASB accounting standards could have a significant impact on public sector organizations. By Steven Henke, CPA

12 Rescue me Explore the details of the American Rescue Plan Act, the third COVID-19 relief package to be passed by Congress, which the president signed into law March 10. By Jim Brandenburg, CPA, MST

32 WEALTH MANAGEMENT Saving for retirement The typical small business owner often puts off financial planning for retirement. Consider Plan B: the Solo 401(k). By Greg Gavran, AIF, CPFA

16 How to navigate a tax controversy Proven strategies have been helpful in avoiding mistakes and reaching a positive result when a tax controversy arises. By Michael G. Goller, JD 22 Social Security benefits for others Choosing when to apply for Social Security benefits is an important decision that becomes more complex for workers’ beneficiaries. By Brian J. Ellenbecker, CFP, EA, CPWA, CIMA, CLTC

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36 ACCOUNTING & AUDITING Remote auditing Gone are the days when audit teams would travel to a client’s office and fill a conference room for a week with laptops and piles of paper. By Joe Paulus, CPA 40 NONPROFIT ACCOUNTING The pandemic effect Important COVID-19 funding leads to new challenges for not-for-profit organizations and the CPAs who advise them. By Jason Stephens, CPA

36 Departments 3 Outlook | chair’s letter 4

In Touch | president & CEO’s message

26 Welcome | new members 30 Kudos | members in the news 35 Memorials | departed members

On Balance

May | June 2021

2021-2022 WICPA OFFICERS/BOARD MEMBERS Chair Angela C. Thomas, CPA

On Balance is published five times a year by the Wisconsin Institute of Certified Public Accountants (WICPA). Change of address should be sent to: Membership, W233N2080 Ridgeview Pkwy, Suite 201, Waukesha, WI 53188; Phone: 262-785-0445 or 800-772-6939; Fax: 262-785-0838; email: comments@wicpa.org. Statements and opinions expressed are those of the authors and not necessarily those of the WICPA. Publication of an advertisement does not constitute an endorsement of the product or service by On Balance or the WICPA. Articles may be reproduced with permission. © Copyright 2021 On Balance.

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INSIDE STAFF

President & CEO Tammy J. Hofstede

Chair-elect Steven A. Pullara, CPA, CGMA

Design & Layout Brett Stallman

Past Chair Wendi M. Unger, CPA

Advertising Sue Daniels

Secretary/Treasurer Lucien A. Beaudry, CPA, JD Directors Jeff Dewane, CPA, CGMA, CMA, MBA John R. Heindel, CPA Ruth A. Kallio-Mielke, CPA Kyle R. Stephens, CPA Stacy A. Stinson, CPA

Editor Marcia Tillett-Zinzow Printing Delzer

AICPA Council Ryan J. Hanson, CPA, CGMA Neil R. Keller, CPA/ABV, CVA

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OUTLOOK | CHAIR’S LETTER “I encourage you to look at our committee listings; find a committee that interests you and reach out to the chairperson, me or Tammy to learn more; and then attend a meeting.”

Riding into 2021 as a “hill seeker”

t is my privilege to serve the WICPA as chair of the board of directors for 2021–2022, and I am excited for the opportunities this year will bring! The WICPA staff and I are here for you, our members. We want to hear from you, connect with you and share resources for the good of the profession. When I set my intentions on achieving a goal, I am not one to shy away from the challenges of accomplishing it. I seek out the challenges, but I think of them as opportunities. I am excited to strategize and work hard for our members to succeed, and I look forward to the opportunities the WICPA has in store for this fiscal year. The “Hill Seeker” quote noted on page 10 is one that resonates with me partly because I am an avid cyclist and enjoy the downhills, but it runs much deeper than that. It is easy to stay where I am comfortable — on the flat road of life — but I have realized I have a passion for success in the accounting profession and in helping others. I have accepted that I need to become comfortable with being uncomfortable. If I didn’t climb the hill and take the risk, I would not get stronger or feel the same sense of pride in my accomplishments. When I first joined the WICPA, it took a while before I attended an event in person. It was challenging for me to figure out how to connect and participate in events that I was not fully aware of with people I did not know. I wish I had made the time and found the courage to step out of my comfort zone sooner because involvement is so rewarding. But the important thing is that I finally showed up. If you are like me, I encourage you to look at our committee listings; find a committee that interests you and reach out to the chairperson, me or Tammy to learn more; and then attend a meeting. I have enjoyed my time with the WICPA much more since I increased my participation in events. As a committee member, I value the knowledge sharing that occurs in a room full of CPAs from a variety of industries across the state. It reminds me that I have access to a vast informational resource. I

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found a natural interest in volunteering on the Public Policy Committee and started going to events — representing the WICPA and meeting more professionals who were as passionate about accounting as I was. The years have passed, and now I call many of these professionals my friends. I have gone out into the community to share financial literacy with children of all ages, served as a board member, testified before the Wisconsin State Assembly and Senate for important legislation, and last year joined our new High School Educator Committee. One of my goals over the next year — once pandemic protocols are lifted — is to get back into the schools and help continue efforts to build relationships, promote the profession and fill the pipeline. I challenge each of you to be a hill seeker: Go after that goal you have been thinking about, and reach beyond your comfort zone this year. I hope we can connect, and I look forward to seeing more members in person soon. It’s going to be a great ride this year, and I hope you’ll join me in being a hill seeker! Angela C. Thomas, CPA, is the expenditure and revenue accounting section chief for the Wisconsin Department of Natural Resources. Contact her at 608-318-3881 or angela.c.thomas@gmail.com.

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IN TOUCH | PRESIDENT & CEO’s MESSAGE “We will continue to fine-tune our offerings, which include relevant and timely updates, virtual learning, advocating for the profession and filling the pipeline with talented and diverse individuals.”

Looking Forward to the New Fiscal Year

e know COVID-19 has impacted many individuals and businesses. We recognize our future is going to look a little different. We will continue to fine-tune our offerings, which include relevant and timely updates, virtual learning, advocating for the profession and filling the pipeline with talented and diverse individuals. As we head into the new fiscal year starting May 1, here are a few things we have planned for the year ahead:

Membership renewal We made the decision to have no dues increase this year to help members keep costs down. We hope it helps as we all recover and come back stronger in 2021!

Go-to resource The WICPA is committed to being your go-to resource. We will continue to provide up-to-date, accurate and trustworthy information through our Featured News, social media, Connect, high-quality publications and e-news. We plan to deliver new videos to include featured members and committees, state and national updates, and interviews with members and invited guests. We will start our virtual monthly member orientation meetings again in the fall for those who wish to learn more about the WICPA.

Advocacy Advocacy for the profession will remain strong through these challenging times. The WICPA will be vigilant regarding both state and federal legislation that would impact the profession and the business community while

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continuing to build and maintain relationships with legislators, leaders and agencies.

CPE December 2021 marks the end of the two-year CPE reporting period for WICPA membership and CPA license renewal. To assist members with their CPE, the WICPA will again offer free CPE programs comprising a three-part technology series and one selected program from each of our conferences that will include ethics. That’s 12+ complimentary new formal CPE credits, plus the free programs already in our course catalog! Since our planning needs to be done nearly a year ahead of time, we will continue to hold most of our programs as livestream through 2021. Continued livestreaming of our programs also allows us to keep reduced CPE prices for members. We have planned more two- to four-hour livestream programs with the popular Wednesday and Friday breakfast program season passes. We are optimistic that we will hold our November Tax Conference and the popular Individual Income Tax Update breakfast program in person, with the breakfast program also held in multiple locations. Planning for the 2022 conferences is already in process for in-person attendance.

Increasing the pipeline As educators have navigated the teaching challenges of the pandemic and now plan classes for fall, we are eager to work together with college educators and the

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new High School Educator Committee to present in their classrooms and their business groups to inform students about the unlimited opportunities the accounting profession has to offer. We plan to record presentations by young professionals and provide the videos to high schools and colleges to promote the profession. With continued collaboration with the National Association of Black Accountants (NABA), we will provide resources and mentors to encourage diversity in the profession.

it’s time to

renew

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Events Our annual golf outing is back on at Ironwood Golf Course in Sussex on Sept. 17, and our Bowling Night at New Berlin Ale House is scheduled for April 28, 2022. We thank you for your continued loyalty and membership as we continue to shape programs, services and activities designed to enhance your opportunities and member experience. Tammy J. Hofstede is president & CEO of the WICPA. Contact her at 262-785-0445 ext. 4518 or tammy@wicpa.org.

keep your member benefits coming If you have not yet renewed your 2021–2022 membership, visit wicpa.org/renew for quick and easy online payment to keep your valuable member benefits coming, including On Balance magazine. Pay your dues in the “My WICPA” section on the WICPA website. For information regarding your membership, contact Tammy Hofstede at 800-772-6939 ext. 4518 or tammy@wicpa.org.

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Photography by John Sibilski 6

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“

There are so many opportunities in government. I want to know that our collected revenue and taxes are being spent effectively and efficiently. Like any other business, the government needs good accountants, and I think I can contribute. By Marcia Tillett-Zinzow

here’s no hill too steep for Angela C. Thomas, CPA. She never backs down or does anything halfway — or the usual way, for that matter. How many CPAs do you know who are triathletes, serve in the U.S. Air Force Auxiliary — Civil Air Patrol, own two Cornish Rex cats and have met nearly all the actors who have played Doctor Who in the British sci-fi TV show of the same name? None? Well, that’s about to change. Thomas, who took the reins as chair of the WICPA board in May, is currently the expenditure and revenue accounting section chief for the Wisconsin Department of Natural Resources (DNR). But she came to accounting through nontraditional means. Growing up in West Allis, Thomas graduated from Nathan Hale High School before attending the University of Wisconsin and obtaining a Bachelor of Science degree in biology in 2005. She wanted to be a pharmacist. In fact, she was certified as a pharmacy technician while still in high school, encouraged by her manager at Walgreens to do so. One of the things certification qualified her to do was to use rates and ratios to determine how a given medication should be compounded to achieve the correct dosage. “I loved it,” she said. “It was all about numbers, and while I didn’t know it at the time, I am a numbers person!”

I could do my work online. As somebody who had a family and a full-time job and volunteered in other things, I thought it might work for me,” Thomas said. She started with one accounting class — and then another … and another, finally deciding she was “all in” to not only get her degree in accounting but to do what it took to become a CPA. In 2011, she graduated with a Bachelor of Arts in accounting and took her first accounting job as a budget analyst for the hospital system. Next, she went to the Wisconsin Department of Justice as an accountant and eventually took her skills at finding efficiencies and streamlining processes to the DNR. She is one of only 2% of WICPA members who work in government. “There are so many opportunities in government. I want to know that our collected revenue and taxes are being spent effectively and efficiently. Like any other business, the government needs good accountants, and I think I can contribute,” she said. Thomas’s work accomplishments and volunteering earned her the honor in 2018 of being named to In Business magazine’s “40 Under 40” list of up-and-coming Madisonarea young professionals. “It’s the thing I’m most proud of,” she said.

An early start on leadership

Thomas remained with Walgreens as a pharmacy tech until she graduated from college. With her biology degree in hand, she went to work for the University of Wisconsin Hospitals and Clinics as a pharmacy assistant. After two years, she began to take her love of numbers more seriously. Continuing to work full time for the hospital system, she went back to school in 2007, this time at Lakeland University.

Thomas began her journey to leadership with the Civil Air Patrol (CAP), which she’s been a member of since age 13. CAP has three missions: carrying out emergency services and disaster relief missions nationwide, aerospace education and a youth development “cadet” program. She discovered CAP while attending an air show at General Mitchell Field in Milwaukee with her grandfather, who had served in the U.S. Air Force in World War II.

“They had a blended learning program for returning adults. I could go to class on-site at the Madison campus, or

“There was a CAP information booth there, and there were kids just like me dressed in uniform, telling folks about

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the program,” she said. “It sounded very interesting, so I started going to meetings at Timmerman Field and joined the 623rd Composite Squadron.”

As a cadet, Thomas learned to be a team member, to show respect to others, how to wear the Air Force-style uniform and how to drill. She also studied aircraft and spacecraft and attended regional and national CAP events, including the Wisconsin Cadet Academy, during which she earned the distinction of Honor Cadet in 1996.

Photo provided by the WICPA

She’s been with CAP for 26 years now, starting at the level of cadet and eventually working her way up to the rank of lieutenant colonel, the highest rank one can achieve without serving as commander of Wisconsin Wing, an appointed position. Each level along the way required leadership, aerospace knowledge, physical fitness testing, squadron activity and moral leadership/ethics.

Thomas has been an active participant in the WICPA's annual Advocacy Day.

“I was awarded a Saber, which I still have today, in recognition of that honor,” she said.

Thomas continues volunteering with CAP as a senior member, primarily assisting young cadets as they learn the ropes of military protocol, public service and volunteering. One of her favorite tasks was volunteering at the Madison unit as the deputy commander for cadets. In that post, she educated, motivated and taught young cadets how to be of service to their communities, state and nation. “I met with approximately 25 cadets weekly, guiding them as they completed the cadet program. Helping cadets learn and grow, being a mentor to them so they could be successful — just as I was when I was a cadet — was rewarding and challenging to me,” Thomas said. Recently, she served a four-year term as the Southwest Group commander, with five squadron commanders reporting directly to her and about 115 senior members and cadets within the five units. Her role was to provide direction and motivation and to ensure compliance with regulations. Thomas has also participated on several occasions with CAP Legislative Day, which she said is very similar to WICPA Advocacy Day. Her CAP experiences, combined with her involvement with the Public Policy Committee and her role with state government, will serve her well this year as the WICPA board chair.

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Photo provided by the WICPA

The same year, she was also selected Wisconsin Cadet of the Year and received a personal note of congratulations from then U.S. Rep. Gerald Kleczka, who was a congressional CAP member at the time. Other awards she earned include the Meritorious Service Award in 1999, 2007 and 2010; the Commander’s Commendation Award, which she received 10 times between 1995 and 2016; and Cadet Program Officer of the Year in 2007.

She has also been active with Reading Makes Cents and is seen here with son Xander.

Inspiration and perseverance Thomas’s latest challenge has been training for and participating in triathlons, including the rigorous Ironman Triathlon, which consists of a 2.4-mile swim, a 112-mile bicycle ride and a marathon 26.2-mile run, raced in that order. “It’s probably the greatest challenge I’ve faced,” she said. “The secret is to set your expectations for yourself. Triathlon is really a race with yourself, a progression in your own journey. That’s what I love about it. I’m participating with a lot of other people out there, but it’s just for me — comparing the me of yesterday with the me of today.” Thomas became interested in triathlon after watching her cousin — a busy working mother of two whom she greatly admired — complete her first Ironman.

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Photo by John Sibilski

“

Prior to completing that triathlon, I could barely swim 25 yards, let alone swim in lake water. I have diligently worked to learn to swim and improve the duration I can swim while also overcoming my fear in the water.

“I was seriously out there watching her from sunup to sundown,” Thomas said. “It’s a very long day for triathletes and spectators, but I was energized the entire time. Just watching her go after her goal, smiling and loving it all — I just felt carried along in that journey.”

Photo provided by Angela Thomas

After that, Thomas set her own goals and began getting herself in shape to train for her first triathlon. The first step was to lose some weight by participating in Weight Watchers and beginning a program of physical exercise, which started with just 10-minute increments a couple times a week. “I went outside and said, ‘OK, I’m just going to jog from this point to the end of that road and come back home. It took all of 10 minutes, but it was painful!” she said. She gradually worked up to running longer distances, and in 2014, she added biking and swimming when she joined a beginner triathlete program. In that program, she completed her first sprint triathlon. “Prior to completing that triathlon, I could barely swim 25 yards, let alone swim in lake water. I have diligently worked to learn to swim and improve the duration I can swim while also overcoming my fear in the water,” Thomas said. In October 2018, Thomas completed her first full Ironman in Louisville, Kentucky, and in September 2019, she completed the Ironman in Madison. “I had planned to participate in an Ironman that was to take place last summer in Santa Rosa, California, with my cousin

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In 2018, Thomas completed her first Ironman Triathlon.

from Salt Lake City,” she explained. “Our families were coming and everything — but the pandemic changed all that.” She hopes to participate in a Madison Ironman that’s been scheduled for this September. She said she has learned lessons in leadership and perseverance through her Ironman experience. “I practiced keeping my head in the moment and dealing with the challenges that result from the unexpected. I learned I can always give a little more, push on — and that sometimes I need to slow down in order to go faster for the long haul,” she said.

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Thomas said a quote about “Hill Seekers” stuck with her throughout her triathlon journey and helped her to keep perspective and work through hard things. It could also apply to everything she’s done in life, from her achievements in CAP to going back to college for a second degree and becoming a CPA to succeeding as a triathlete:

Photo provided by Angela Thomas

Most of us try to avoid hills, but what’s so good about that? Think about flat tires, flat hair, flat returns and the ultimate flatlining. Life happens on the hills. They’re opportunities to prove to yourself that you’re stronger than you ever imagined. If you never attempt the ascent, you’ll never know the thrill of swooshing down the other side. – Author unknown Marcia Tillett-Zinzow is a Wisconsin freelance writer and editor. Contact her at mtzinzow@icloud.com.

Jeff, Angela and Xander Thomas.

Family vacations — and Doctor Who

homas and her husband, Jeff, celebrated 20 years of marriage last year. They love to travel, and they’ve done some interesting things and had some surprises along the way. A trip they had planned to Prague in 2005 had to be scrapped at the last minute due to a bomb threat at London’s Heathrow Airport. They had saved a long time for the trip, and it was quite disappointing. “They were letting people fly into Heathrow, but they weren’t letting anyone fly out because they were investigating this bomb threat,” Thomas said. “We were going to be there for only a few days before jetting off to Prague, but we ended up cancelling.” Their disappointment didn’t last long, however, as they quickly pivoted and decided to use their vacation time to visit Hawaii

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instead. The trip was a highlight for them. On a 2019 trip to Paris, Thomas ran her first marathon and toured the city at the same time, taking in the beautiful and historic surroundings as she ran. One of their plans for that trip was foiled, however. “After I ran, we opted for a bus tour past the Notre Dame Cathedral, and we were going to go back the next day to see the inside,” Thomas said. “Unfortunately, while we were having dinner that night, we learned the cathedral was on fire.” The couple, along with their 12-year-old son, Alexander (whom they call “Xander”), have also visited many U.S. cities as well as London, England, to attend Comic Con and Wizard World conventions, where they have met many actors and actresses,

including nearly all of the 13 actors who have played Doctor Who over the years. “It just became something that we do together as a family that a lot of people probably don’t know about me. It doesn’t come up in conversation,” she mused. “The show is very sci-fi based. A lot of times I don’t even know how they’re going from A to B because it’s just so far out. But it is truly entertaining, and it takes you away from everything else because you’re so focused on what’s going on.” As a strong female leader in her own right, Thomas was delighted when she discovered the current Doctor Who is a woman — the first to play the role. “She plays it very well,” Thomas said. “Whenever she holds a conference, we hope to meet her, too.”

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Introducing your WICPA Board of Directors The WICPA Board of Directors provides strategic governance in accordance with the WICPA strategic plan, mission and vision. The board ensures the WICPA serves the diverse needs of members, enhances professional competency, promotes the value of members and the profession, advocates on behalf of the profession and builds community among members.

CHAIR Angela C. Thomas, CPA, expenditure & revenue accounting section chief, Wisconsin Department of Natural Resources, Madison

CHAIR-ELECT Steven A. Pullara, CPA, CGMA, tax partner, BDO USA LLP, Madison

PAST CHAIR Wendi M. Unger, CPA, partner, Baker Tilly, Milwaukee

SECRETARY/TREASURER Lucien A. Beaudry, CPA, JD, equity shareholder, Reinhart Boerner Van Deuren s.c., Milwaukee

DIRECTOR Jeff Dewane, CPA, CGMA, CMA, MBA, assistant controller, Vinton Construction Company, Manitowoc

DIRECTOR John R. Heindel, CPA, business partner, Lauber Business Partners, Milwaukee

DIRECTOR Ruth A. Kallio-Mielke, CPA, managing director, Deloitte & Touche LLP, Milwaukee

DIRECTOR Kyle R. Stephens, CPA, vice president of finance and administration, Good City Brewing LLC, Milwaukee

DIRECTOR Stacy A. Stinson, CPA, assistant professor – accounting, Concordia University, Mequon

AICPA COUNCIL Ryan J. Hanson, CPA, CGMA

AICPA COUNCIL Neil R. Keller, CPA/ABV, CVA, partner-in-charge, tax services, Sikich LLP, Brookfield

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RESCUE ME RESCUE ME Congress provides additional pandemic relief with the American Rescue Plan Act.

n March 10, Congress passed its latest COVID-19 relief legislation. The $1.9 trillion American Rescue Plan Act of 2021 (ARPA) was signed into law by President Biden on March 11 (sans the $15 minimum wage increase the House approved, which was removed by the Senate). The ARPA is the third major pandemic bill passed within the last 12 months, bringing the total relief to over $5 trillion. This article provides an overview of selected tax and business provisions in the Act.

By Jim Brandenburg, CPA, MST

On Balance

• Economic Impact Payments (EIP) for 2021: EIP amounts are $1,400 per taxpayer plus $1,400 per dependent child. Qualifying dependents include full-time students under the age of 24 and adult dependents. Taxpayers are eligible if they have an adjusted gross income (AGI) of up to $75,000 for singles and married persons filing separately, up to $112,500 for heads of household, and up to $150,000 for married couples filing jointly and surviving spouses. Filers with incomes above those levels receive a shortened phase-out range.

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• Unemployment benefits: This late revision created some high anxiety in the Senate. Under the change, unemployment benefits of $300 per week may be extended through Sept. 6, 2021. Unemployment benefits were fully taxable in the past, but under this bill, up to $10,200 of unemployment benefits per person are exempt from 2020 income tax. Note: This exclusion applies only to taxpayers (single or married) with AGI of less than $150,000. Those with AGI of $150,000 and above will not receive this exclusion. Impacted taxpayers who are near this threshold may want to consider an HSA, IRA or other retirement contribution to reduce their AGI below $150,000. Taxpayers who received unemployment benefits in 2020 do not need to amend their 2020 tax returns to claim this exclusion if they have already filed. The IRS indicated it would handle the adjustment in May and directly issue refunds to impacted taxpayers. States will also need to address how they will handle this change for unemployment benefits. • Limit on excess losses extended: The Tax Cuts and Jobs Act (TCJA) imposed a limitation on losses of $500,000 for married taxpayers and $250,000 for single taxpayers. This limitation did not apply for 2018, 2019 or 2020 due to changes from the CARES Act, but under ARPA it now applies in 2021 through 2026. • Company compensation deduction limited: The current deduction limitation for those earning more than $1 million is expanded to apply to the eight highest-paid employees of a publicly traded company (in addition to the CEO or CFO). • Employee Retention Credit (ERC): ARPA extends the credit from June 30, 2021, through Dec. 31, 2021. The ERC rates remain at 70% of qualified employee wages up to $10,000 per quarter. The new bill further addresses qualified wages that overlap with other relief programs. An employer with payroll under PPP loans, “shuttered venue operators” and new restaurant revitalization grants are not entitled to ERC on the same wages. Further, the ERC is now made available to new small business startups by exempting them from the two ERC eligibility tests: (1) the partial or full shutdown due to a government order or (2) the decline in gross receipts. This startup feature applies to businesses with annual gross receipts of $1 million or less that began operations after Feb. 15, 2020. The ERC credit for startups is capped at $50,000 per quarter.

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“

Taxpayers who received unemployment benefits in 2020 do not need to amend their 2020 tax returns to claim this exclusion if they have already filed. • Restaurant Revitalization Grant (RRG): Restaurants have been one of the industries hit hardest by the pandemic. ARPA serves up a special relief package for restaurants, defined loosely as virtually any “place of business in which the public or patrons assemble for the primary purpose of being served food or drink.” This relief is intended to provide restaurants a grant, not a loan, and covers nearly any restaurant expense. The restaurant will likely be required to report expenses incurred, and these expenses will not be eligible for certain tax credits, such as the ERC. The grant is determined as follows: 2019 gross receipts of the restaurant less 2020 gross receipts of the restaurant, then minus the amount of any PPP loans the restaurant already received (first or second draw). The RRG program will be administered by the SBA and treated like PPP loans for tax purposes, such that the grant will not be considered income, the expenses incurred with the grant are deductible, and there is a basis adjustment on the grant for the shareholders or partners of the entity.

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• PPP loans for exempt organizations: The new bill also expands the eligibility of not-for-profit organizations (NPOs) that qualify for PPP loans. It applies to NPOs listed in Section 501(c) other than 501(c)(3), 501(c)(4), 501(c)(6) or 501(c)(19) and provides certain limits on lobbying activities. • Family First Coronavirus Response Act (FFCRA) leave: The ARPA extends the FFCRA paid sick time and the paid family leave credit beginning April 1 and ending Sept. 30, 2021. Among the changes is an increase in the wage limit for the paid family leave credit to $12,000 per employee per year. • COBRA subsidy: “Assistance-eligible individuals” (AEIs) qualify to receive a 100% subsidy for COBRA insurance premiums for any period of COBRA coverage beginning April 1 and ending Sept. 30, 2021. An AEI is a qualified employee who is eligible for and elects COBRA coverage due to involuntary termination or a reduction of hours. There are also new notification requirements placed on employers. • Multiemployer pension plans (MEPPs): Many MEPPs are unfunded or underfunded, and this legislation takes steps to address these shortages with several relief provisions. • Repeal of election for worldwide allocation of interest: For foreign tax credit purposes in tax years after 2020, the parent of a U.S.-affiliated group could have elected to allocate the interest expense of each member of its worldwide group as if all domestic and foreign affiliates were a single corporation. The ARPA repeals this special provision.

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• Child tax credit enhanced for 2021: The child tax credit is raised for 2021 from $2,000 per child to $3,000 per child ($3,600 for children under age 6) and is available to children through the age of 17. The credit begins to phase out when adjusted gross income reaches $75,000 for single filers, $150,000 for joint filers and $112,500 for head-of-household filers. • Child and dependent care credit increased: The maximum child care expense eligible for this credit in 2021 is raised to $8,000 for one child and $16,000 for two or more children. The maximum percentage is raised from 35% to 50% of eligible expenses, up to a limit based on income (thus, max credit of $4,000 with one child and $8,000 with two or more children). It is reduced by 1% for each $2,000 of the taxpayer’s AGI in excess of $125,000 for the year. This credit is refundable in 2021. Further, the exclusion for employer-provided dependent care assistance is raised to $10,500 from $5,000. Employers should be aware of this change and revise their dependent care assistance plans to accommodate these higher thresholds in 2021. • Gross income exclusion on discharge of student loans: The ARPA makes certain student loan forgiveness taxfree, thus eliminating from taxable income full or partial discharges of many federal and private student loans. This applies for the years 2021 through 2025. Look for additional guidance to be issued on these new changes. James D. Brandenburg, CPA, MST, is a tax partner with Sikich LLP, Brookfield. Contact him at 262-754-9400 or jim.brandenburg@sikich.com.

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HOW TO NAVIGATE A

TAX CONTROVERSY Do’s and don’ts, mistakes to avoid and strategies that work

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By Michael G. Goller, JD

fter years of handling federal and state audits, appeals and litigation, certain strategies and principles emerge as “best practices” when handling these controversies. This article summarizes some of the strategies that we have observed as being helpful in reaching a positive result and the mistakes that can lead to an unhappy ending.

1. Don't blow critical deadlines. Both federal and state laws impose strict response deadlines. These deadlines drive how the audit or appeal moves forward. Some jurisdictions move from the tax assessment phase to a collection phase faster than others. As such, it is critical to meet these deadlines. Below are some of the many critical IRS deadlines. The 30-Day Letter. At the close of an examination, if an agreement cannot be reached, a revenue agent will issue what is referred to as a “30-Day Letter.” The formal title is “Notice of Proposed Assessment.” The document is referred to as a 30-Day Letter because the taxpayer’s representative has 30 days to file a “protest” with the IRS. An audit report will be attached to the 30-Day Letter, showing the agent’s proposed adjustments. The taxpayer’s protest. A protest is a written document that contains a brief statement of facts supporting the taxpayer’s position and generally outlines the law. If the taxpayer misses the 30-day deadline, the IRS Appeals Office will most likely still grant an appeals conference. However, this is still a deadline that should be met. The 90-Day Letter. When the statute of limitations on assessment is close to expiring, or if the taxpayer has already gone to the IRS Appeals Office and a resolution cannot be reached, the IRS will issue a Statutory Notice of Deficiency. This notice is normally referred to as a “90-Day Letter” because the taxpayer must file a petition in U.S. Tax Court within 90 days of the date of the Statutory Notice of Deficiency in order for the court to hear the case. Thus, if a petition is not filed within this 90-day period, the tax court lacks jurisdiction. This is a hard deadline.

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The IRS has prescribed forms for seeking a tax refund. While it is not absolutely necessary to use such forms, some courts have rejected informal claims that failed to contain the requisite elements. courts have rejected informal claims that failed to contain the requisite elements. The three principal Claim for Refund forms are as follows: • Form 1040–X is used to claim a refund of individual income taxes. • Form 1120–X is used to claim a refund of an overpayment of corporate income tax. • Form 843 is used to claim a refund of any tax other than income tax as well as penalties and interest.

2. File adequate refund claims on time.

Courts will allow a taxpayer to bring suit on a claim for refund only on the grounds raised in the claim. Thus, care should be taken to ensure that all grounds have been stated in the claim for refund.

The IRS has prescribed forms for seeking a tax refund. While it is not absolutely necessary to use such forms, some

The tax practitioner should document the date a claim was filed. The burden to show actual filing is on the taxpayer. If

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a claim is not delivered to the IRS — for example, if it gets lost in the mail — the taxpayer may not be able to prove filing unless the claim was sent by certified or registered mail or through an approved delivery service (such as FedEx). Under Code Section 7502(c), a claim that does not reach the IRS is treated as filed when mailed only if sent by registered or certified mail. Code Section 6511 provides that a claim for refund must be filed within three years of the date the underlying return was filed or within two years of the date the tax was paid, whichever is later. The amount of the claim is limited by whether the taxpayer has fallen under the three-year statute of limitations or the two-year statute of limitations. The amount that can be recovered through a claim for refund may depend on which statute of limitations the taxpayer is filing under. If the claim is paid within three years from the date the return was filed, the amount refundable cannot exceed the total tax paid within the three-year period (plus any extension period that was granted for filing the return). Conversely, if the claim for refund is filed under the two-year statute of limitations (within two years of payment), then the amount recoverable is limited to the tax paid during the two years immediately preceding the filing of the claim. If a return is filed or the tax is paid prior to the due date, for statute of limitations purposes the return is treated as filed, and the tax is treated as paid on the last possible day the return could have been filed without being delinquent. The “last possible day” does not include any extensions of time to file the return. Thus, for an individual tax return (Form 1040) the

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“

If it gets lost in the mail, the taxpayer may not be able to prove filing unless the claim was sent by certified or registered mail or through an approved delivery service.

“last possible day” is April 15. The early payment of the tax rule occurs when a taxpayer’s wages are subject to withholding or estimated tax payments are made. Returns that are filed early (before the unextended due date) are treated as being filed and the tax being paid on the due date for statute of limitations purposes (§ 6513(a)). However, extended tax returns are treated in a different manner. An extended return is considered to have been filed on the actual date submitted to the IRS and not on the extended due date (§ 6513(a)). Finally, the refund statute of limitations is often extended during a tax audit. If the taxpayer consents to extend the statute of limitations on assessment, the time within which the taxpayer may file a claim for refund is also extended for

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an additional six months from the date the extended assessment statute expires. Importance of the statute of limitations on filing a complaint in court: The issuance of the certified notice of claim disallowance or the execution of the waiver of statutory notification of claim disallowance begins the running of the two-year statute of limitations under § 6532(a), governing the time in which a suit for refund must be brought in federal court. Unless this period is extended by the taxpayer and IRS, this two-year deadline is mandatory. Failure to file a complaint in court within the two-year period will preclude the IRS from making a refund payment. Protective refund claims: A protective refund claim should be filed when an audit adjustment of one taxpayer could result in a refund claim of another taxpayer or on another tax form. If a protective claim is not filed, the statute of limitations on the refund claim could run prior to the termination of the audit. Example: Assume there is an audit of a C corporation. The IRS is examining payments from the C corporation to the sole shareholder’s children. These payments were treated as deductions on the corporation’s Form 1120 and as wage income on the children’s Forms 1040. If the IRS disallows the deduction, they will most likely treat the expenses as a constructive dividend to the sole shareholder and a gift to the children. A protective refund claim should be filed with regard to the children’s Forms 1040. If this is not done, they run the risk of not recovering the tax back on the income they reported and the sole shareholder having to pick up the same amount as income.

3. “Scorched earth” and noncooperation rarely work and often lead to a bad result. Once a notice of audit has been issued, the tax practitioner — after receiving proper authorization — should reach out to the revenue agent to establish communication and inform the agent that the tax practitioner will be representing the taxpayer. Be respectful and cooperative with the agent. An agent is more likely to work with and resolve issues with a cooperative tax practitioner. If you work well with the agent, the audit will progress, and it may be resolved without additional appeals.

• Control the timing for giving information, bearing in mind that excessive delays may anger the revenue agent and may constitute an ethical violation under Circular 230. • Control the format and presentation of information. (Do the agent’s job for him or her.) • Control what access the IRS has to key personnel and records. • Submit written responses to the revenue agent. Create documents that allow the revenue agent to resolve the case without being second-guessed by his or her manager.

Tax Audit Checklist 4 Do not impede the audit process. 4 Do not allow the agent free access to the business. 4 Do not make promises that cannot be kept. 4 Do not attempt to bully or intimidate the agent. 4 Assign one person to be the primary audit contact. 4 Request that all significant communications be in writing. 4 Keep track of time spent on the audit. 4 Control the records provided to the agent. 4 Cooperate with the agent and promptly respond to all requests. 4 Provide the agent with adequate work accommodations. 4 Meet regularly with the agent to review issues. 4 Attempt to resolve issues before they are written up. 4 Agree to disagree on major irreconcilable issues. 4 Request a concluding conference to discuss the audit conclusions.

4. Control the flow of information.

5. Take the time and energy to come up with well-thought-out, well-reasoned arguments and convey them in a concise and articulate manner, often in writing.

As part of the exam process, whether a federal or state audit, the taxing authority will ask for documentation. One of the most important things a practitioner can do is control the flow of information. This can happen in a number of ways, such as the following:

Responses should be short, sweet, organized and to the point. Putting the time in to come up with thoughtful responses during the examination can often help at later stages because the arguments are well documented. Time and time again we see lengthy responses that don’t address

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the agent’s concerns or provide so much information that it detracts from the issue at hand. Arguments are also more persuasive when they are presented in a concise and articulate manner. Further, practitioners need to understand whom they are writing to and for what purpose.

6. Keep your promises. Audits and tax matters are stressful. Clients and agents alike have certain expectations of tax practitioners. Make sure you are communicating the steps you will being taking, and follow through on those promises. Keeping promises also establishes a level of trust. Failing to keep your promises can frustrate your client and cause agents to distrust you, impacting your ability to resolve the case.

7. Settle when you can; march toward litigation when you have to. Most cases come down to dollars. Litigation is expensive and time consuming. Before a decision is made to escalate a case to litigation, it is important to ask whether the assessment is large enough to justify the cost of litigation. Sometimes it makes sense to settle a case because the costs of litigation would heavily outweigh the tax benefit.

Michael G. Goller, JD, is a shareholder and chair of the tax practice at Reinhart, Boerner and Van Deuren s.c. in Milwaukee. Contact him at 414-298-8336 or mgoller@reinhartlaw.com.

Your Bottom Line is Our Bottom Line We provide cost-effective, practical solutions to your tax and legal challenges. Drawing on deep experience across a wide range of issues, our attorneys are adept at working the entire continuum of tax law, from reducing tax burdens to defending audits to tax controversy and litigation.

Michael G. Goller Tax Department Chair 414.298.8336 mgoller@reinhartlaw.com

reinhartlaw.com 414.298.1000

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Thank you 2020 CPAC & LIF Contributors! Visit wicpa.org/Advocacy to learn more and make a contribution.

INNER CIRCLE Frederick Sitzberger LEADERSHIP Jessica Gatzke PACESETTERS Heather Acker William Ahlstrom Christine Anderson Brandon Andries Nicholas Ansley Inga Arendt James Ashland Paul Barstad Roberta Bastle Mary Behling Dan Beine Timothy Beine Michael Benes Donald Bernards Todd Bernhardt Douglas Berry Ann Blakely Jeffrey Blattner Mark Boettcher Brian Bohman Marcie Bomberg-Montoya Marci Boyarski Kelly Bradley Jeffrey Bramschreiber James Brandenburg Melaine Brandt Erik Bunnell Damon Busse Gregory Butler Daniel Buttke Leanne Buttke Todd Carpenter Stephanie Cavadeas Lonny Charles Kevin Cherney Justin Chesbrough Jean Christensen Lee Christensen Crystal Christenson David Christianson Brad Collard Craig Cookle Robert Cottingham Lisa Cribben Christine Dahlhauser Brad DeNoyer Chad Derenne Jeff DeYoung Andrew Dilling wicpa.org

Jodi Dobson Rick Dreher David DuVarney Jeffrey Dvorachek Karl Eck Barbara Ecklond Wayne Ehlert Daniel Ehr Thomas Eling Brigid Elliott-Boger Valerie Fedie Linda Feirn Christine Fenske Paul Frantz Michael Friedman Sandra Friess Sara Funk Karin Gale Robert Ganschow Joshua Ganshert Lynn Gardinier Brian Gaumont Matthew Gelb Stephanie Gensler Daniel Glomski Carla Gogin Nicole Gralapp Kurt Gresens Jeffrey Gross Michael Gustafson Douglas Haag Todd Hagedorn Ryan Hanson Monica Hauser Kim Heller John Hemming Nathan Henrigillis Kimberly Herlitzka Nicholas Hinz Craig Hirt Tammy Hofstede Traci Hollister John Honadel Terry Hoover Kirsten Houghton Laura Huggett Tina Huisman Wade Huseth Bruce Hutler James Hyland Chase Inda Tyler Inda Kevin Janke Andrea Jansen Henry Jasper Tammy Jelinek Jane Jerzak

David Johnson Robert Kane Neil Keller Michael Kendhammer Karen Kerber Terrence Kerscher Anne Kirschling Amanda Klein Pat Knight Brian Knoll Holly Kohl Kenneth Kortas Todd Kostman Keith Koszarek Amar Kothapalli Jeffrey Kowieski Jennifer Kramer John Krause Casey Kretz Thomas Krieg Eric Kroll Tony Kromanaker Keith Krueger Mark Kruncos Keith Kulas Cynthia Lamphere David Laske Ryan Laughlin Ryan Lay Larry Lester Brian Lightfield Bonnie Lilley Robert Long Jessica MacNaughton Alan Mader Anita Mahamed Randy Mahoney Kyle Mair Ryan Maniscalco Carl Marzolf Martin Mathias Zachary Mayer Tami McCann Nancy Mehlberg Joshua Meinen Deanna Merryfield Randall Miller Mary Miske Dale Muehl Jeffrey Munger Luis Murgas Craig Nelson Scott Nelson Theresa Nickels Matthew Nitka William Nortman Karen Novak

Chad O’Brien Daniel O’Connor Anthony Ollmann Paul Ouweneel Jason Page Krista Pankop Donald Pedersen Jacob Peters Daniel Pichler Maureen Pistone Holly Pokrandt Thomas Powers Steven Pullara Michael Pynch Lucas Rocole Norman Roller Brian Rozek Michael Ruby Kelly Runge John Runte John Salza Donna Scaffidi Kevin Schalk Thomas Schiesl Christopher Schmidt Corina Schoenke Eugene Schramka Scott Schumacher John Schwab Kevin Scully Thomas Sheahan Jill Sherry Kimberly Shult Gina Skibo Andy Slinger Carrie Small Carver Smith James Smolinski Mark Sobczak Gregory Sofra Mark Stevens Daniel Szidon Christopher Tait Denes Tobie Jason Totzke Paul Traczek Corey Tremaine Eric Trost Wendi Unger Thomas Unke Christopher Van Straten Matthew Vanderloo Michael Vesel Nathanael Voss Brent Wagner Brian Walczak Dan Walker On Balance

Colin Walsh Robert Watson Peter Wautlet Theran Welsh Mary Werner Glen Weyenberg Russell Wolff William Wong Aaron Worthman Erika Young Laura Zach OTHER CONTRIBUTORS Stephan Chevalier Krisztina Dommer Kathryn Gannon Steven Grover Mary Horton Brian Lange James Mathes Michael Matuszak William Mayer Gregory Pitel Jamie Rosin Michael Stratman PACESETTER-LEVEL ORGANIZATIONS Baker Tilly KerberRose S.C. Sikich LLP Sitzberger & Company S.C. SVA Certified Public Accountants S.C. Wipfli LLP OTHER ORGANIZATIONS WITH EMPLOYEE CONTRIBUTIONS Baker Tilly Search & Staffing BDO USA LLP CLA Hawkins Ash CPAs, LLP MBE CPAs, LLP RitzHolman CPAs Scribner, Cohen and Company, S.C. WICPA Zilber, Ltd.

May | June 2021

SOCIAL SECURITY BENEFITS for Spouses, Children and Survivors

By Brian J. Ellenbecker, CFP, EA, CPWA, CIMA, CLTC

hoosing when to apply for Social Security benefits is an important decision and can greatly impact a person’s ability to meet their retirement goals. The decision becomes more complex if a person is or was married or has children eligible to receive benefits. It’s possible those individuals could also be entitled to benefits based on the worker’s Social Security record. Understanding the benefits available to these other individuals and the planning strategies available to them is important to ensure Social Security benefits are maximized over time.

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Choosing when to apply for Social Security benefits is an important decision and can greatly impact a person’s ability to meet their retirement goals.

Benefits for spouses Keep the following terms in mind as spousal benefits are discussed: Working spouse: the spouse whose earnings record will be used to provide spousal and/or survivor benefits Lower-earning spouse: the nonworking spouse or the spouse who earns less; the person who will receive the spousal or survivor benefit Spousal benefits (paid while both spouses are living)

A lower-earning spouse is entitled to spousal benefits after being married for one full year prior to applying for benefits. At full retirement age (FRA), the lower-earning spouse is entitled to the greater of: • Their own benefit OR • 50% of their spouse’s FRA benefit. If the lower-earning spouse files for benefits prior to FRA, a lesser amount will be received. Claiming at age 62 results in a spousal benefit anywhere between 32.5% to 35% of the working spouse’s FRA benefit amount, depending on the lower-earning spouse’s birth year and

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FRA. The starting point for the spousal benefit calculation is always the working spouse’s FRA benefit, regardless of when they actually filed for their benefit. Any downward adjustment is based on when the lower-earning spouse files for the spousal benefit. To claim a spousal benefit, the working spouse must have already claimed their own benefit. If the working spouse is delaying benefits, the lower-earning spouse will have to wait to file for spousal benefits. However, they could file for their own benefit earlier. They would later receive a spousal addon to increase their benefit once the working spouse files (assuming their own benefit was lower to begin with). If the lower-earning spouse files for benefits prior to FRA, the spousal benefit can be reduced or eliminated if either the lower-earning spouse or the working spouse earns employment income while under FRA. For 2021, earnings above $18,960 will reduce Social Security benefits by $1 for every $2 above that threshold. A Social Security applicant’s own benefit is typically paid first. If the applicant’s FRA benefit is less than 50% of the

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working spouse’s FRA benefit, the difference will be paid as a “spousal add-on,” bringing the total benefit paid up to the spousal benefit amount. If a worker was born on or before January 1, 1954, they can file a “restricted application” at FRA (or later) for spousal benefits. Filing a restricted application allows the worker to file for spousal benefits only. Their own benefit continues to earn delayed retirement credits until they switch to their own benefit, which can be done as late as age 70. This strategy is typically used when the lower-earning spouse files for their own benefit, allowing the higherearning spouse to file a restricted application and receive spousal benefits from 66 until 70. Spousal benefits are also available to divorced spouses, assuming certain marriage requirements are met. If the requirements are met, the ex-spouse is entitled to spousal benefits as if they were still married. In order for a divorced spouse to be entitled to spousal benefits on an ex-spouse’s work history, they must meet the following criteria:

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Spousal benefits are also available to divorced spouses, assuming certain marriage requirements are met. • The couple were married for at least 10 years. • The spouse seeking spousal benefits must not be currently married. • They must have been divorced for two years or more (this requirement is waived if the worker was receiving benefits prior to the divorce). The lower-earning spouse must be at least age 62 to file for spousal benefits on an ex-spouse’s earnings record. The exspouse must also be age 62 or older, although they don’t need to have filed for benefits.

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A divorced spouse filing for benefits on an ex-spouse’s record has no impact on the benefits of the ex-spouse or any other family benefits. Both a spouse and one or more ex-spouses can receive benefits from a worker’s earnings record without negatively impacting each other’s benefits. Survivor benefits (paid after one spouse has passed away) If a marriage lasted for at least nine months when one spouse passes away, the surviving spouse may be entitled to a survivor benefit. A surviving spouse is entitled to the greater of: • Their own benefit OR • 100% of their spouse’s benefit, assuming the survivor benefit starts after the survivor’s FRA. Please note: The above statement is a high-level overview of the survivor benefit calculation. The actual calculation of a survivor benefit can be quite complicated, depending on the age of the survivor and the age of the deceased spouse and their claiming status at the time of death. Consult with the Social Security Administration or other expert for assistance in determining the actual survivor benefit amount. Survivor benefits are available as early as age 60. Benefits will be reduced if the surviving spouse starts survivor benefits prior to their FRA. Survivor benefits do NOT earn delayed retirement credits. Therefore, there is no incentive to wait on survivor benefits beyond FRA. There is more flexibility in planning for survivor benefits than for spousal benefits. If the surviving spouse needs maximum income as soon as possible, they should start the higher benefit right away. However, if the goal is to maximize the amount of Social Security received over time, the surviving spouse can start the lower benefit as soon as possible and delay claiming the higher benefit for as long as they can. Consider these two common scenarios: • If the surviving spouse’s own benefit is higher, they should start the survivor benefit at age 60 and switch to their own benefit at age 70. • If the survivor benefit is higher, they should start their own benefit at age 62 and switch to the survivor benefit at FRA. If the survivor is under FRA and plans to continue working, the reduction in benefits due to earned income applies.

disabled or deceased. The child must be younger than age 18 (age 19 if in high school) or 18 or older with a disability that began before age 22. An entitled child may receive 50% of the parent’s FRA benefit if the parent is retired or disabled. They receive 75% of the benefit if one of their parents is deceased. There is a limit to the total amount that a family can receive from Social Security based on one worker’s earnings record. This is referred to as the Family Maximum. The Family Maximum typically falls between 150% and 180% of the worker’s Primary Insurance Amount (PIA), depending on benefit levels. The Family Maximum does not include the spouse’s own retirement benefit nor any benefits paid to an ex-spouse. These rules can be very complicated and nuanced. This article just scratches the surface. It’s important to work with the Social Security Administration to ensure that families are maximizing the benefits they are entitled to while avoiding any pitfalls along the way. Brian Ellenbecker, CFP, EA, CPWA, CIMA, CLTC, is a financial planner with Shakespeare Wealth Management in Pewaukee. Contact him at 262-814-1600 or brian@shakespearewm.com.

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All of the above rules also apply to a divorced spouse, as long as the marriage lasted at least 10 years and the person is either unmarried or remarried after age 60.

Benefits for kids Under certain circumstances, unmarried children may also be entitled to benefits if at least one of their parents is retired,

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RESOLVING TAX CHALLENGES The Tax Section of von Briesen & Roper, s.c. has the knowledge and experience to resolve federal, state and local tax controversies. Whether providing tax assistance to businesses, business owners or individuals, we are your resource. Our experience allows us to handle all aspects of tax challenges including complex audits and audit support, administrative appeals, the courts and tax collection. The bottom line? We get results. To learn more about our Tax Section, please contact Robert Mathers, Tax Section Chair, at rmathers@vonbriesen.com.

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Milwaukee • Madison • Neenah • Waukesha Green Bay • Chicago • Eau Claire On Balance

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Welcome new members! Get to know the newest members of the WICPA. February 1, 2021 – March 31, 2021

Allison L. Ahmed-Yahia

Joshua Foltz

Rachel Alexander BDO USA LLP

Marla M. Frank

Matthew Annis Vrakas CPAs + Advisors Sarah M. Bacon Dwayne Johnson & Associates Christine E. Bain KPMG LLP Michael R. Baldwin KPMG LLP Andrew J. Binder Exact Sciences Corporation Kaitlin J. Bowe KPMG LLP

Kevin Fry Kristen A. Fuhremann University of WisconsinMadison Kathleen E. Gall Kathleen E. Gall CPA Daniel E. Gorecki Colton A. Hackett RSM US LLP Lanae M. Haertel Continental Properties Company Inc.

Lukas S. Kreger Deloitte & Touche LLP

Samuel Neumann Dwayne Johnson & Associates

Laura L. Sierra KPMG LLP

Bradley J. Kruger KerberRose S.C.

Jacob D. Newman KPMG LLP

Lisa A. Kubis

Zachary A. Newsome Grant Thornton LLP

Amanda M. Skogen Children's Hospital and Health System

Joshua Kuehl KPMG LLP Emily Kuether KPMG LLP Richard C. Kuiper

Cheyenne L. Pasdera Vrakas CPAs + Advisors Lauren M. Pericak KPMG LLP

Hannah M. Popp Kohler Company

Joseph W. Strahanoski Grant Thornton LLP

Jennifer Price Vrakas CPAs + Advisors

Randall J. Swanton KerberRose S.C.

Teri Lawrey-Hooker

Emanuel Ramirez Macias KPMG LLP

Rhonda A. Sweeney

Daniel J. Leitinger Vrakas CPAs + Advisors

Tyler Rembert KPMG LLP

Richard Li RSM US LLP

Kevin Rich Marquette University

Benjamin Lamers CLA

Brianna Braun KPMG LLP

Mee Hang Grant Thornton LLP

Keegan E. Brewer University of WisconsinOshkosh

Olivia Hansen University of WisconsinOshkosh

Jason M. Briesemeister Green Bay Packaging

Jennifer Hartje RSM US LLP

Kathleen M. Mason BK Management LLC

Laura E. Richard Grant Thornton LLP

Brianna K. Brinckman KPMG LLP

Tailor Hartman BDO USA LLP

Stephanie A. Maxwell PBBS Equipment Corporation

Ronald L. Rickey III

Allison M. Buchholz Real Simple Accounting

Laura B. Heeringa O'Connor, Wells & Vander Werff LLC

Christopher J. McKenna

Abigail A. Roadhouse KPMG LLP

Gregory J. Millard US Bank

Nick Romans The Bero Group LLC

Deborah J. Miller Quandt Berndt & Company

Andrew R. Ross Porter & Sack CPAs S.C.

Nathan J. Miller KPMG LLP

Michael E. Schamberger Grant Thornton LLP

Kevin P. Morrical Vita Plus Corporation

Kara A. Schiller Vrakas CPAs + Advisors

Samuel Mortensen KPMG LLP

Travis J. Schmeltzer KPMG LLP

Benjamin A. Moy KPMG LLP

Joshua D. Schmitt Grant Thornton LLP

Heather L. Murray

Matt J. Schneider KPMG LLP

Bruce A. Carter John R. Ceelen

Christopher C. Janisch KPMG LLP

Casey Crombie Mohr CPAs LLP

Susan M. Jansen

Samantha L. Czechan KerberRose S.C. Anthony Darnell-Kohls Brookdale Senior Living Jill M. Dearing Quarles & Brady LLP Kayla Dollar KPMG LLP

Annie Kailhofer Grant Thornton LLP Kaitlyn C. Keizer Quarles & Brady LLP Benjamin J. Kelly KPMG LLP Shane C. Kennedy Chortek LLP

Alyssa M. Durall KPMG LLP Alexander E. Eastman Kerber, Eck & Braeckel LLP Katelyn Fladten Bauman Associates Ltd.

Cassandra F. Johnson KPMG LLP

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Bradley T. Knowles Hawkins Ash CPAs LLP Lisa M. Koller Continental Properties Company Inc.

May | June 2021

Bryant R. Sontag James M. Stefan KPMG LLP

Ryan Ladwig Fiduciary Management Inc.

Elizabeth J. Bratter KPMG LLP

Matthew R. Henning Vrakas CPAs + Advisors

Brett J. Smykal KPMG LLP

Christopher P. Peterson Peterson & Associates LLC

Paula J. Haferman Roberts, Ritschke & Tyczkowski Ltd.

Jennifer K. Buros Westby Area School District

Andrew D. Smith CLA

Derek J. Landisch KPMG LLP

Caz R. Muske Terra Naumann KerberRose S.C. Tyler Nehring Kyle S. Neis Quandt Berndt & Company

Landon A. Schramski Vrakas CPAs + Advisors

Jacob Sweet KPMG LLP Rachel Szeklinski Dwayne Johnson & Associates Matthew J. Terpstra State of Wisconsin Legislative Audit Bureau Parker Ulness Vrakas CPAs + Advisors Derek Vandermoss CLA Joseph Vehrenkamp Wipfli LLP Ting-Yi Wang KPMG LLP Yi Wang Fathom Nathan R. Wilhelmi RSM US LLP Abigail L. Williamson CarlsonSV Tessa M. Woelfel Grant Thornton LLP Greyson R. Wolfdixon The Bero Group LLC

Courtney R. Schultz Exact Sciences Corporation Alexis R. Shah KPMG LLP

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Spectrum Investment Advisors, Inc. and previously recorded speakers are not affiliated. Investment advice offered through Spectrum Investment Advisors, Inc., a registered investment adviser. Registration with the SEC does not imply a certain level of skill or training. wicpa.org

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{ Government Accounting | GASB update }

GASB Update for Wisconsin Communities

he Governmental Accounting Standards Board (GASB) has issued a number of new accounting standards that could have a significant impact on public sector organizations. As a result of the COVID-19 By Steven Henke, pandemic, GASB moved forward with allowing delays in CPA implementation of some new standards upon issuance of GASB Statement No. 95 – Postponement of the Effective Dates of Certain Authoritative Guidance, which became effective immediately. Other recently issued standards incorporated further-out effective dates. The effective dates noted in this article reflect the applicable revised implementation dates as set forth by GASB 95. In an effort to summarize several of the recent standards, this article will focus on those standards with a required implementation date for reporting periods beginning after Dec. 15, 2020 (i.e., Dec. 31, 2021, year-ends and later). The following GASB standards requiring upcoming implementation may impact your organization.

GASB Statement No. 87 – Leases GASB 87 changes the accounting and financial reporting requirements of organizations that enter into contractual relationships that meet the definition of a lease for assets such as real estate, vehicles and equipment.

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The January/February 2021 issue of On Balance offers a detailed analysis of GASB 87. GASB 87 is effective for fiscal years beginning after June 15, 2021.

GASB Statement No. 89 – Accounting for Interest Cost Incurred Before the End of Construction Period GASB 89 states that interest costs incurred before the end of a construction period should be recognized as an expense in the period incurred and should not be capitalized as part of the historical cost of the asset. GASB 89 is effective for reporting periods beginning after Dec. 15, 2020.

GASB Statement No. 91 – Conduit Debt Obligations GASB 91 provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations and (3) related note disclosures. The Statement achieves these objectives by (a) clarifying the existing definition of a conduit debt obligation, (b) establishing that a conduit debt obligation is not a liability of the issuer, (c) establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations, and (d) improving required noted disclosures. GASB 91 is effective for reporting periods beginning after Dec. 15, 2021.

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GASB Statement No. 92 – Omnibus 2020 Omnibus statements are issued by GASB to address practice issues identified after other standards have been approved for implementation. Omnibus statements “clear up the loose ends” for previously issued GASB statements. This Omnibus addresses topics from eight recent pronouncements, including GASB 87 – Leases, GASB 84 – Fiduciary Activities, and GASB 83 – Asset Retirement Obligations. Several of the GASB 92 topics are effective immediately, while the remainder of the topics are effective for reporting periods beginning after June 15, 2021.

GASB Statement No. 93 – Replacement of Interbank Offered Rates GASB 93 establishes accounting and reporting guidance related to the replacement of Interbank Offered Rates such as the London Interbank Offered Rate (LIBOR) for hedging derivative instruments. As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form after Dec. 31, 2021. The requirements of this Statement, except for paragraphs 11b, 13 and 14, are effective for reporting periods beginning after June 15, 2020. The requirement in paragraph 11b, the removal of LIBOR as an appropriate benchmark interest rate, is effective for reporting periods ending after Dec. 31, 2021. The requirements in paragraphs 13 and 14 are effective for fiscal years beginning after June 15, 2021.

GASB Statement No. 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements A public-private and public-public partnership arrangement (PPP or P3) is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. An availability payment arrangement (APA) is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. GASB 94 establishes financial reporting and accounting for P3s and APAs. GASB 94 is effective for fiscal years beginning after June 15, 2022.

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GASB Statement No. 96 – Subscription-Based Information Technology Arrangements GASB 96 provides guidance on accounting for SubscriptionBased Information Technology Arrangements (SBITA) when the government contracts for the right to use another party’s software. The standards for SBITAs are based on the standards established in GASB Statement No. 87, Leases. GASB 96 is effective for fiscal years beginning after June 15, 2022.

GASB Statement No. 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457, Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 GASB 97 (1) requires that a Section 457 plan be classified as either a pension plan or another employee benefit plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities. The requirements of GASB 97 are effective as follows: • The requirements in (1) paragraph 4 of this Statement as it applies to defined contribution pension plans, defined contribution OPEB plans and other employee benefit plans and (2) paragraph 5 of this Statement are effective immediately. • The requirements in paragraphs 6–9 of this Statement are effective for fiscal years beginning after June 15, 2021. • All other requirements of this Statement are effective for reporting periods beginning after June 15, 2021. During this unprecedented time for state and local governments, CPAs can play a valuable role in helping entities implement the GASB standards and comply with reporting requirements. Now is the time to develop a plan to ensure a smooth implementation of upcoming accounting standards.

Steven Henke, CPA, is a senior manager at Baker Tilly US LLP. He has been in the accounting and auditing industry for 40 years, serving state and local governments. Contact him at 414-777-5342 or steven.henke@bakertilly.com. The information provided herein is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought.

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May | June 2021

kudos

Daniel Carroll, CPA

Megan Cera, CPA

Stacey Donovan, CPA

Craig Hirt, CPA

Anne Kirschling, CPA

John Andres, CPA, and his wife, Donna, received the 2020 Community Action Coalition Champion award as a result of their steadfast dedication to working in the Sun Prairie Food Pantry during the pandemic. They were featured in an article in the March 26 Sun Prairie Star.

Robert Keebler, CPA/PFS, MST, AEP, was recently featured in two national news articles, commenting in Forbes magazine on the new May 17 federal tax deadline and in the online Money Report, published by CNBC, on President Joe Biden’s proposed tax plan.

Michael Bock, CPA, president and CEO of Dairy State Bank, has been appointed to the FDIC Advisory Committee on Community Banking.

Anne Kirschling, CPA, was promoted to partner in the Milwaukee office of Wipfli LLP.

Jim Brandenburg, CPA, MST, tax partner with Sikich LLP in Brookfield, was interviewed by Spectrum 1 News for an April 4 In Focus story titled “Details to be aware of for individual filers.” Daniel Carroll, CPA, was promoted to senior manager in the Milwaukee office of Wipfli LLP. Megan Cera, CPA, was promoted to senior manager in the Milwaukee office of Wipfli LLP. P.J. DiStefano, CPA, MBA, was named by Deloitte to the post of Milwaukee managing partner, effective Jan. 4. He succeeds Scott Wrobbel, CPA, who will retire May 31. Stacey Donovan, CPA, previously a senior manager in the Stevens Point office of KerberRose, has been promoted to shareholder of the firm. Nicholas Faber, CPA, has been named the new president and CEO of Simplicity Credit Union in Marshfield. Ben Hauser, CPA, president of Northland CPAs, is a member of the new Feed Our Rural Kids (FORK) Endowment Fund committee that is assisting in a $1 million capital campaign to help fight childhood food insecurity. Jason Hilger, CPA, has been selected as the manager for Langlade County. Craig Hirt, CPA, was promoted to partner in the Milwaukee office of Wipfli LLP. Sara M. Johnson, CPA, has been promoted from manager to principal in the audit department of Vrakas S.C. Becky Jordan, CPA, MBA, CGMA, has joined MSA Professional Services Inc. as the firm’s controller.

Richard Kollauf, JD, CPA, AEP, CFP, has joined SVA Certified Public Accountants as a principal and will lead SVA’s Trust and Estate Compliance service line. John Krause, CPA, a partner in Baker Tilly LLP, has joined New North Inc., the regional economic development corporation for the 18 counties of Northeast Wisconsin, as a member of the board of directors. Erin Krysinski, CPA, a senior staff accountant at SVA Certified Public Accountants, is a 2021 winner of the Elijah Watt Sells award, which recognizes CPA candidates who achieve a cumulative average score of 95.50 across all four sections of the CPA Exam and pass all four sections on their first attempt. Dan Lightfuss, CPA, has been promoted from manager to senior manager in the Fox Cities office of KerberRose. Zachary Linsmeyer, CPA, previously a senior manager in the Shawano office of KerberRose, has been promoted to shareholder of the firm. He also was recently named president elect of the Shawano Country Chamber of Commerce board of directors. Christopher Olsen, CPA, MST, senior manager at KerberRose, was interviewed by Wausau’s WSAW-TV for a March 9 news feature regarding how accountants are navigating COVID-19 changes during tax season. Paul Ouweneel, CPA, CFA, CFP, was promoted to partner in the Milwaukee office of Wipfli LLP. Chris Pahl, CPA, JD, an attorney in the Green Bay office of Ruder Ware, has joined New North Inc., the regional economic development corporation for the 18 counties of Northeast Wisconsin, as a member of the board of directors. Paul A. Rothering, CPA, has been promoted from manager to principal in the audit department of Vrakas S.C. Steve Santek, CPA, was interviewed by NBC15/WMTV in Madison for a Feb. 12 feature on tax advice for small businesses.

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May | June 2021

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Dan Lightfuss, CPA

Zachary Linsmeyer, CPA

Paul Ouweneel, CPA, CFA, CFP

Mary Sylvester, CPA, has joined Advantage+ in Brookfield as controller.

Mary J. Werner, CPA, wrote a March 14 column about the American Rescue Plan for The Courier section of the La Crosse Tribune.

Kristin Tyczkowski, CPA, previously a senior manager in the Green Bay office of KerberRose, has been promoted to shareholder by the firm. Michelle Waldron, CPA, was promoted to senior vice president and chief financial officer at Bankers’ Bank, Madison. Tyler Wendorf, CPA, MPA, was hired as vice president/ controller of Valuation Research Corp., Milwaukee.

Brian Wild, CPA

Kristin Tyczkowski, CPA

Mary White, CPA, chief financial officer at Nueske’s Applewood Smoked Meats, Wittenberg, was named treasurer of the Shawano Country Chamber of Commerce board of directors. Brian Wild, CPA, previously a senior manager in the Antigo office of KerberRose, has been promoted to shareholder of the firm.

Want your new job, promotion or award mentioned in Kudos? H Email your announcement and photo in JPG format to mtzinzow@icloud.com. H

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{ Wealth Management | Retirement plans }

Saving for Retirement Why your clients should consider a “Plan B” — aka the Solo 401(k)

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May | June 2021

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By Greg Gavran, AIF, CPFA

he typical small business owner faces a myriad of challenges on a daily basis, and often one of the last decisions they make is about their retirement future. Their wealth is inextricably tied to their business, and the task of coming up with a solid retirement plan can be tricky.

When your clients own their business, the personal and professional are more intertwined than the average employee. This can be especially true of those small business owners who do it all themselves. They have no employees (perhaps other than a spouse), and day after day they wake up, work hard and may invest much of their money back into their business to make it a success. Then, when they are achieving the level of success and income they worked toward, they begin to think about getting the most value out of it — and maybe even retiring. Many feel like retirement is something far in the distant future, regardless of their age. As a result, many owners haven’t put all the pieces together or planned what they’re going to do in retirement. To avoid last-minute scrambling, advisors need to push clients to think about retirement and succession.

Plan A: selling the business Many owners recognize that there is value in their business or practice; however, running a valuable business and selling that business for its full value are often two separate things. In the struggle to grow, many often leave retirement savings for the future or assume that the eventual sale of the business will

fill this gap. If their plan is to sell, it’s essential to get an expert quote from a third party. Given how the business is often the largest asset in a business owner’s portfolio, it’s critical to come up with a realistic estimate so the retirement plan doesn’t have an unexpected shortfall. This is a common blind spot for business owners. Most business owners are optimistic and feel very strongly about the business. Yet the business may not be worth what they think it is, creating a retirement shortfall. Also, the small business owner is often the reason the company is thriving. They need to understand that if they are its greatest asset, they may not be able to sell for a premium if they are no longer working. Many realize too late that failing to create a “Plan B” for retirement was a mistake.

Plan B: saving “just in case” Plan B is recognizing that retirement resources need to be set aside in the event a future sale is not as lucrative as hoped for. It is important to make sure that the business owner is budgeting to fund that retirement account every year, whether in a Solo 401(k), SIMPLE IRA or Simplified Employee Pension (SEP). (See chart to review the contribution differences.) A Solo 401(k) can be a great option for a small business owner by providing the ability to have a plan that allows them to save as a participant and contribute to their retirement as a company. Unlike most plans available to business owners, a Solo 401(k) looks and feels like a traditional 401(k), allowing an owner to defer the maximum allowable — which in 2021 is $19,500 — and a catch-up contribution of $6,500 if they are over the age of 50. In addition, they may be able to make company contributions of 25% to their account and deduct that amount as an expense. Their total contributions for 2021 could be $58,000 ($64,500 with the catch-up).

For 2021

Pretax Deferral

0R Roth Deferral

Catch-Up (over 50)

Employer Contribution Required?

Employer Contributions

SOLO 401k

Yes ($19,500)

$6,500

25% up to max of $58,000 ($64,500 with catch-up)

SIMPLE IRA

Yes ($13,500)

$3,000

Yes

3% profit sharing or match

SEP IRA

Yes

25% up to max of $58,000

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On Balance

May | June 2021

{ Wealth Management | Retirement plans }

SIMPLE IRA If the business owner has no employees, a SIMPLE IRA may not make sense, as it has lower overall deferral limits than the Solo 401(k). A SIMPLE IRA requires an annual match (or profit sharing) while offering a lower overall deferral limit ($13,500 + $3,000 catch-up) vs. a 401(k) with no contribution requirement.

SEP IRA The SEP allows only for employer contributions (also 25%) and not employee deferrals. Depending on the business owner’s compensation and age, the Solo 401(k) could allow for more retirement savings overall, when combining employee deferrals and catch-up contributions.

Solo 401(k): the king Well, maybe it’s not the king, but it clearly has advantages that the other plans don’t. By allowing larger retirement contributions while possibly delivering bigger tax deductions, it’s a win-win. Still not sure? Here are a couple more reasons that a Solo 401(k) may be the better choice: • Minimize small business tax liability with the added benefit of saving more for retirement. • A Roth component can be added to it, allowing for a higher contribution level than is allowable in a standalone Roth IRA. • Currently, you cannot have a Roth option inside a SIMPLE or SEP, which may limit the ability to save for tax-free income. • If the owner is over the age of 50, the catch-up contribution allowable in the Solo 401(k) will usually result in the ability to save more retirement dollars overall.

Overachievers If you find that you have a client who is maxing out their Solo 401(k) and still looking for more retirement savings and tax savings, you may want to consider adding a solo Defined Benefit Plan. This supercharged plan may allow for your client to make pre-tax contributions in excess of $100,000 per year

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May | June 2021

“

Those of us who are CPAs and financial advisors have a duty to help our clients minimize their risk, ask tough questions and help them focus on the big picture. or more, depending on their age and income. However, we will leave that thought for another day. Those of us who are CPAs and financial advisors have a duty to help our clients minimize their risk, ask tough questions and help them focus on the big picture. Whichever type of plan you and your client choose, saving for retirement is never a bad decision. Greg Gavran, AIF, CPFA, is a managing director with Strategic Retirement Partners LLC in Brookfield. He specializes in working with businesses to design and manage retirement plans that work. Contact him at 866-777-4015, ext. 703, or gregg@srpretire.com.

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memorials Raimond Cerbins, CPA (1925 – 2021)

Raimond Cerbins, CPA, a lifetime member of the WICPA, passed away Monday, Feb. 15, in Sun City West, Arizona. He was 95. Cerbins was born in Latvia. His family escaped the advancing Soviet army and found refuge in Kepten, Germany. He worked for the United Nations Relief and Rehabilitation Administration and the International Refuge Organization from 1945–1950. Cerbins emigrated to the U.S. and settled in Appleton. He worked for Combined Locks Paper Co. until he was drafted into the U.S. Army in 1952. He was honorably discharged in 1955. In 1959, Cerbins graduated from UW–Madison with a BBA in accounting and went to work for the Wisconsin Department of State Audit and then for an Appleton CPA firm, and he eventually became a partner in the firm of Cerbins & Smith (later known as Cerbins, Wyss, Reffue & Pas) in Monroe. He is survived by his wife of 66 years, Faye; two sons; six grandchildren and five great-grandchildren; and many nieces and nephews in the U.S. and Germany.

Don M. Enders, CPA (1932–2021)

Don Martin Enders, CPA, a lifetime WICPA member, passed away Wednesday, Feb. 17. The 88-year-old Enders was born in Madison and graduated from Edgewood High School. He joined the U.S. Navy in 1950, serving as a radar operator on the U.S.S. Coral Sea during his four-year tour of duty. Upon honorable discharge from the Navy in 1954, Enders enrolled at UW–Madison under the G.I. Bill. By taking classes continuously, he graduated in three years with a degree in accounting and then went to work for Arthur Andersen, where he worked for 30 years. He retired as a partner of the firm in 1987. Enders is survived by his wife, Phyllis; four daughters; seven grandchildren; and nieces and nephews.

Ronald L. Felten, CPA (1936–2021)

Ronald L. Felten, CPA, 84, passed away Monday, April 12. He graduated from UW–Madison in 1954 and was certified in 1966. Felten was employed by Wipfli in Wausau for 25 years, resigning from the company in 1989 to open his own CPA firm in Cashton. He and his wife, Carol Ann, were very active volunteers for various bible camps around the country, and he was the first administrator of Living Waters Bible Camp in 1972. Felten is survived by his wife, five biological children, 18 adopted children and many grandchildren.

James W. Graven, CPA (1950 – 2020)

James W. “Jim” Graven, 70, of Random Lake, passed away on Thursday, Aug. 27, after being diagnosed with Stage IV kidney cancer in 2013 and given a two-year prognosis – which he survived by more than five years. Graven was born in Cedar Grove and graduated from Cedar Grove High School; then he attended UW–Milwaukee, graduating with a bachelor’s degree in accounting. He was a WICPA member for 37 years prior to his illness. Most of Graven’s working career was spent in public accounting, primarily with Schenck SC in the Appleton, Green Bay and Sheboygan offices. He retired from Schenck as a partner in 2010 and operated his own CFO firm until he retired in 2013. Graven enjoyed serving others, and many of his relatives trusted him to help with their finances and estates. He was a member of Hope Church in Sheboygan and various community organizations, including Safe Harbor, the Sheboygan Chamber of Commerce and Mead Public Library. Graven is survived by his wife, Joan; a daughter and a son; four grandsons; two sisters and a brother.

Frank Michael Metz, CPA (1935 – 2021)

Frank Metz, CPA, a retired lifetime member of the WICPA, passed away on Wednesday, March 31, at age 85. He attended Messmer High School and Marquette University, earning his degree in accounting and achieving CPA certification. Metz began his career with Price Waterhouse (now PwC) before joining Simplicity Manufacturing as controller. In 1971, he joined Port Washington State Bank (PWSB) and served as executive vice president, CFO and trust officer before retiring in 2000. After retirement, Metz served on the PWSB board of directors and volunteered his time and financial expertise at St. John XXIII Catholic Parish and school. He was one of the founding members at St. Peter of Alcantara in 1966. Metz served many years on the Port Washington Harbor Commission and was involved in the Rotary Club, Community Education Foundation of Port Washington, senior choir, and garden club. He is survived by his wife, Barbara; a sister; six children; eight grandchildren; and four step-children.

If you are aware of a member obituary and believe it should be included in Memorials, please send a copy of the obituary or contact Marcia Tillett-Zinzow at mtzinzow@icloud.com.

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On Balance

May | June 2021

{ A & A | Remote auditing }

Remote Auditing What has the pandemic taught us?

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May | June 2021

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G By Joe Paulus, CPA

one are the days when audit teams would travel to a client’s office and fill a conference room for a week with computer equipment, power cords and piles of paper. Since the pandemic started, these workplaces have been replaced by auditors turning their basements, kitchen tables and kids’ bedrooms into new at-home offices.

Like most things experienced during the pandemic, the same work needs to be done, but the way we go about doing it has changed. Auditing has been no different, and remote auditing has re-emphasized a few key areas that are critical for an audit to be successful.

Planning is still key to the success of an audit Planning has remained key. Before diving into the audit, it’s imperative that the audit team and client are on the same page. As part of audit planning, specific discussions regarding the virtual environment should take place. An important topic to discuss is the method and frequency of communication between client and audit team. During on-site audits, auditors could simply walk down the hall to the client’s office to ask their questions. Emailing questions has become normal, but it’s important to know when to pick up the phone to have a discussion. We can easily fall into the trap of having conversations via email when a short phone call would have been more efficient and productive.

“

Planning has remained key. Before diving into the audit, it’s imperative that the audit team and client are on the same page.

Also, since we are exchanging more emails over the course of a remote audit, it becomes more likely that writing styles begin to resemble those used for an instant message or text message. Emails should still be written in a professional, succinct, organized manner so that the questions being asked are clearly understood by the client.

In addition to discussing how communication will happen, it’s also important for the audit team and client to pre-block time on their calendars during fieldwork to discuss questions and audit status. This forces everyone to be available and accountable when the time comes to meet. Additionally, there are most likely accounting areas that are complex and/or require significant judgment. These areas should be audited first, and auditors should schedule time prior to fieldwork to discuss these areas with the client by phone or virtual meeting. Email simply won’t suffice.

It’s also helpful to have meaningful subject lines and avoid replying to long, unrelated email strings when a fresh email with a new subject line is more appropriate. This can be beneficial later on, when you need to go back and find an old email.

In a similar manner, auditors should block time for internal team touchpoints during fieldwork. Some associates helping on the engagement may be new to the client and have questions about what they are seeing. Dedicating this time to training can ensure staff are not “spinning their wheels,” which

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On Balance

May | June 2021

{ A & A | Remote auditing }

is more likely to happen in a remote environment when audit managers cannot pick up on nonverbal cues that indicate the staff need additional guidance. One strategy is to schedule touchpoints based on audit complexity and staff experience level. A complex audit or a new associate on the team should dictate a higher frequency of touchpoints to provide adequate training.

Maintaining company culture Building relationships with clients and colleagues has become more challenging while working remotely, but it is still vital for long-term success. Working remotely has affected everyone differently, and video calls are now a must for connecting with people on a personal level. Many employers have been forced to on-board new hires remotely, so new hires may never have met the people they are working with face to face. Even employees who have been around the company for a long time may start to lose their sense of company culture, making employee retention an issue. Teams should make an effort to keep the culture alive. If you would have celebrated the completion of an audit by treating the team to dinner and drinks, try hosting a virtual happy hour, sending virtual gift cards or finding other ways to show your appreciation. For those associates you don’t work with daily, simulate passing them in the hallway by scheduling short, recurring touchpoints just to catch up. Small personal actions can go a long way to maintaining the company culture.

Cybersecurity Just as wearing a mask is an effective safety measure against the coronavirus, the same consideration should be given to electronic data. Cybersecurity has been a hot topic for several years, but risks have only increased during the pandemic. The FBI reported a 300% increase in reported cybercrime since the pandemic started. During audits, information like bank accounts, payroll and other data are exchanged between the client and auditor. This data needs to be exchanged safely for all parties’ protection. Instead of sending sensitive information via email, maintain privacy by utilizing secure file transfer services or a secure portal. This is also a good time to revisit the way files are organized and transferred. Instead of just uploading all the files into one folder, it can be helpful to both the auditors and clients to organize the portal in the same format as the auditor’s request list.

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May | June 2021

Conclusion Yes, remote auditing can be challenging for both clients and auditors, but with a little extra effort, a remote audit can meet — or even exceed — the same level of success of an on-site audit. Effective planning, communication and consideration of cybersecurity are not new concepts caused by the pandemic. If anything, the pandemic has forced us to rethink how we execute these audits for the better. Auditors and clients should take what we have learned over the past year and apply this knowledge when things go back to normal — someday.

Joe Paulus, CPA, is an audit manager at Wipfli LLP in Milwaukee, working with public and nonpublic manufacturing, technology and commercial clients. Contact him at 414-259-6815 or jpaulus@wipfli.com.

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{ Nonprofit Accounting | COVID-19 funding }

THE PANDEMIC EFFECT Important COVID-19 funding leads to new challenges for not-for-profit organizations.

OVID-19 funding and its related impact on not-for-profit organizations (NPOs) continues to challenge both the NPOs who receive the funding and the CPAs who advise their NPO clients. Challenges include navigating what funds to apply for; By Jason how to account for those funds Stephens, CPA once received; and not running afoul of federal, state and county requirements, particularly when funding is received from multiple sources.

Paycheck Protection Program (PPP) loans The most popular and prevalent of the funding under the Coronavirus Aid, Relief, and Economic Security (CARES) Act is the Paycheck Protection Program. Administered by the Small Business Administration (SBA), businesses could apply for a low-interest loan to keep workers on their payroll. Loans could be used to fund payroll costs among other eligible expenses. If all employee retention criteria are met, along with eligibility of expenses, the SBA will forgive the loans. Some of these loans also included an Economic Injury Disaster Loan (EIDL) Advance of $10,000. Recent legislation allows for this advance to also be forgiven. The vast majority of NPOs expect for the entirety of these loans to be forgiven. If an NPO expects that the loan represents a grant that is expected to be forgiven, the two most likely models it can use are provided under FASB ASC 958-605 (Government Grant Model) or FASB ASC 470 (Debt Model). While the Debt Model involves recording the PPP loans as debt with extinguishment of the debt not being recognized until it has been legally

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May | June 2021

released, the model most commonly preferred for NPOs is the Government Grant Model. Under this model, the timing of the recognition is dependent on whether contributions are conditional or unconditional. PPP loan funds are conditioned based upon their use to pay eligible expenses in a defined time frame. The initial recording involves the loan being recorded as a refundable advance liability on the statement of financial position. When PPP expenses have been incurred, contribution revenue would be recorded on the statement of activities. However, some may also interpret that the contribution revenue should not be recorded until the NPO submits the forgiveness application or even receives legal forgiveness, as those may be considered barriers to entitlement.

Employee Retention Tax Credit The Consolidated Appropriations Act signed into law on December 27, 2020, retroactively expanded the Employee Retention Tax Credit (ERTC). Businesses can now

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retroactively claim this credit on qualified wages back to March 12, 2020. Previously, this was not available to organizations that received a PPP loan, but that stipulation was removed. This has led to many organizations applying for this refundable credit, which is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID–19. If a calendar-year organization applies for this credit for payroll taxes paid in 2020, and if it feels that the recovery of those taxes is probable, the organization should record a receivable as of the end of the calendar year and reduce payroll tax expense by the expected credit.

Potential compliance requirements In addition to the PPP loans, there was a lot of other funding allocated to businesses in 2020 related to COVID-19. The largest ones included the Provider Relief Fund (PRF), the Coronavirus Relief Fund (CRF) and the Education Stabilization Fund (ESF), in addition to EIDL loans (not to be confused with the EIDL advances). These funds have provided significant federal funding to both NPOs and for-profits alike, some of which had received little or no governmental funding before. This funding comes with a lot of strings attached, particularly if more than $750,000 of federal funds are expended during a single year, potentially triggering a single audit requirement. Many NPOs (along with a number of for-profit companies) could be required to have a single audit performed for the first time. A single audit is an audit of an organization’s financial statements and federal awards that is much more in-depth than a financial statement audit. It includes not only providing an opinion on the financial statements but also testing of and issuing an opinion on compliance with the terms of the grant agreements and federal regulations as well as testing of the internal controls over compliance with those terms. Many organizations that have not received significant federal funding in the past may not have these internal controls in place. While (thankfully) the PPP loans are not considered federal funding for purposes of determining whether a single audit is needed, EIDL loans and PRF, CRF and ESF funding are, in addition to numerous other new federal programs related to COVID-19. PRF funding is not to be included on an organization’s Schedule of Expenditures of Federal Awards until Dec. 31, 2020, year-end and after, even if an organization received the funding prior to those dates and prior to their fiscal year-end.

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“

One of the most challenging things to consider for NPO accountants and auditors alike is how to properly allocate costs to these various new sources of funding. One of the most challenging things to consider for NPO accountants and auditors alike is how to properly allocate costs to these various new sources of funding. One major aspect they likely have not considered previously involves the concept of “double dipping.” For the ERTC, payroll costs that are qualified wages for the credit are not eligible for PPP loan forgiveness if the employer elects to claim a credit for those same amounts. Also, if an NPO has other governmental funding, the same expenses cannot be charged to multiple funding sources. Even though PPP loans are not subject to a single audit, NPOs still are not allowed to use payroll and other expenses for purposes of forgiveness of the loans and then charge those same expenses to a separate grant-funded program. This may potentially cause NPOs to consider whether they need to either pay back any excess profit to funding sources or apply for less than full forgiveness of their PPP loan.

What should NPOs do to be prepared? NPOs need to be proactive in discussing their new funding with their accountants and auditors to ensure they are recording the funds correctly in addition to making sure they are prepared if they should need a single audit. They should also develop or refine a good system of internal controls over not only financial reporting but also compliance, including an appropriate methodology for allocating costs to make sure they are meeting all their requirements. These can all be daunting new tasks that go hand in hand with this much-needed government assistance. Jason Stephens, CPA, is an assurance partner in the Madison office of Wegner CPAs. He specializes in auditing and advising not-for-profit organizations and for-profit companies that receive governmental funding. Contact him at 608-442-1952 or jason.stephens@wegnercpas.com.

On Balance

May | June 2021

{ Member Benefits | Committees }

COMMITTEE HIGHLIGHTS Joining a WICPA committee is a great way to network with like-minded individuals, sharpen communication abilities, gain leadership skills, form business relationships and friendships and strengthen your brand. It’s also a way you can “give back” to the profession that has given you so much. Sharing talent as a volunteer enhances the CPA profession while helping others achieve ambitious goals. The committees highlighted here are currently accepting volunteers. To join a committee or find out more about any of the committees, contact Tammy Hofstede, WICPA president & CEO, at tammy@wicpa.org or 262-785-0445, ext. 4518. ACCOUNTING HIGHER EDUCATION

The Accounting Higher Education Committee consists of educator representatives of Wisconsin colleges and universities that have accounting programs intended to qualify graduates to take the CPA exam and obtain a CPA license. Since its startup in 2016, the committee has provided a forum for educators to network; share information; learn about each other’s institutions and programs; and serve as a resource to Wisconsin legislators, regulators and other policy makers. Chair Joann Noe Cross, Emerita Professor of Accounting, UW–Oshkosh

Jacob Gill, Chair, Accounting Department; Lecturer, Accounting, Edgewood College

Board Liaison Matthew Schaefer, Vice President Credit Officer, Bank of Wisconsin Dells

Jason Haen, Assistant Professor of Accounting, St. Norbert College

Members Michael Akers, Charles T. Horngren Professor of Accounting, Marquette University Michael Amidzich, Assistant Professor, Alverno College Dirk Baldwin, Dean, College of Business, Economics & Computing, UW–Parkside School of Business James Blinka, Professor of Taxation, UWM Thomas Collins, Professor, UW–Platteville School of Business Julie Dawson, Assistant Professor, Carthage College Lisa Derouin, Assistant Professor, Wisconsin Lutheran College Thomas Determan Paul Fischer, Jerry Leer Professor of Accounting, Director of Accounting, UWM Lubar Business School Mary Ellen Fletcher, Associate Professor, Mount Mary University

On Balance

May | June 2021

Patricia Hallinan, Graduate Advisor, Edgewood College Deborah Hanks, Faculty, Cardinal Stritch University Benjamin Huegel, Accounting Faculty Advisor, St. Norbert College

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Have you ever wanted to talk to the members of the Accounting Examining Board and really understand the certification and licensing process for CPAs in the state of Wisconsin? Have you ever wanted to find out what other universities and colleges are doing and how they are faring? If so, this is the committee for you! Sit down with like-minded others and learn, discuss and share your knowledge. Look over the list of members. Is your school or organization represented? If not, join us! — Joann Noe Cross, Chair, Accounting Higher Education Committee

Thomas Kuenzi, Adjunct Professor, St. Norbert College Ling Liu, Interim Department Chair, Associate Professor, UW–Eau Claire Courtney Malloy, Assistant Professor of Accounting and Finance, Carthage College Lori Nixon, Assistant Professor of Practice in Accounting, UW–River Falls Gary Olsen Aimee Pernsteiner, Chief Financial Officer, Silver Spring Foods, Inc. Wendy Potratz, Senior Lecturer, UW–Oshkosh Kevin Rich, Accounting Department Chair, Marquette University Katherine Schuessler, Associate Professor, Marian University

Stacy Stinson, Assistant Professor of Accounting, Concordia University Susan Strautmann, Instructor, Accounting, Mid-State Technical College Richard Tobin, Adjunct Lecturer in Accounting, Marquette University Zhemin Wang, Professor, UW–Parkside School of Business Chair Mark Bichler, Business Education Teacher, Port Washington High School Board Liaison Angela Thomas, Expenditure & Revenue Accounting Section Chief, Wisconsin Department of Natural Resources wicpa.org

HIGH SCHOOL EDUCATOR

The High School Educator Committee is relatively new. It was formed last year to provide a forum for high school educators to discuss accounting in the classroom and engage WICPA members to promote the profession at their schools through career fairs, speaking in the classrooms and providing input on topics for the Educator Accounting Symposium. The committee consists of educator representatives from Wisconsin high schools that have accounting and/or business programs. Members Amber Achterberg, Business Education Teacher, Parkview High School

Katie Grassel, Seymour High School

Cory Brummeyer, Business Teacher, Jefferson High School

Judy Holappa, Business & Information Technology Teacher, Mayville High School

Kelli Cairo, Business Teacher/ Department Chair, Indian Trail High School & Academy Sarah Campbell, Wisconsin Dells High School Michael Carpenter, Sauk Prairie High School Ada Duffey, Assistant Professor of Business and Economics, UWM at Waukesha Samantha Goss, Teacher, Fennimore High School Brent Gostomski, Business Education Teacher, Stevens Point Area Senior High School

Mary Helgemoe, Teacher, Beaver Dam High School

Heidi Hubatch, Viroqua High School Stephanie Jahnke, Business Education Teacher, Mosinee High School Dawn Jameson, Business Education Instructor, Wausau West High School Julie Johll, Business Education Teacher, Cuba City High School Amber Laska, Hortonville High School Tammy Makovec, Verona Area High School Christina Mitchell, Iola-Scandinavia High School Mary Kaye Richardson, School District of Beloit

“

Joining the High School Educator committee will allow you to not only give back, but also help to recruit new individuals to the profession. Our high school teachers are always looking for new insights into what should be taught in the classroom and at the same time stay connected with practicing accountants. Joining this group is a good way to help build relationships and increase the number of youths entering the profession. — Mark Bichler, Chair, High School Educator Committee

Brandon Roberts, Kaukauna High School David Thomas, B & IT Education Consultant, Wisconsin Department of Public Instruction Elizabeth Tillema, Oconomowoc High School Tina Trumbower, Business Education Teacher, Waunakee High School

YOUNG PROFESSIONALS

The Young Professionals Committee is focused on inspiring students to enter the accounting profession by promoting engagement, networking, attending events and speaking to students in high schools and colleges. Through their involvement in these activities, committee members contribute to maintaining the talent pipeline for the future. Chair Jesse Roberts, Business Development Executive, M3 Insurance Vice Chair Kale Post, Senior Accountant, Dwayne Johnson & Associates Board Liaison Kyle Stephens, Vice President of Finance and Administration, Good City Brewing LLC

wicpa.org

Members Benjamin Badger Kevin Behm, Tax Manager, BDO USA, LLP Joseph Boucher, Attorney, O’Neil, Cannon, Hollman, DeJong & Laing S.C. Ross Bukouricz, Senior Accountant, Wipfli LLP Christopher Cholka, Accounting Manager, Cousins Subs

Kara Coleman, Assistant Professor of Business Administration, Mount Mary University Ann Daugherty, Senior Financial Analyst, Molson Coors Beverage Company Brooke Hanke, Senior Financial Analyst, Herzing University Allyson Hofstede, Senior Associate, Audit, KPMG LLP

On Balance

May | June 2021

{ Member Benefits | Committees }

YOUNG PROFESSIONALS, CONT.

Haley Jones, Senior Financial Analyst, ManpowerGroup

Andrea Retzki, Accounting Manager, Great Northern Corporation

Matthew Kaiser, Student, Concordia University

Sarah Roberts, Senior Accountant, Wipfli LLP

Lyssa Kemper, Owner, Virago Accounting, LLC

Jose Saenz, Director, Advancement Gift Services, Marquette University

Conner Laabs, Senior Accountant, Wipfli LLP

Michael Schafer, Senior Tax Accountant, RitzHolman CPAs

Brooke Leiterman, Senior Tax Accountant, Reilly, Penner & Benton, LLP

Megan Schultz, Accounting Manager, Standard Electric Supply Co.

Bethany Manteufel, Program Finance Manager, GMR Marketing LLC

Kortni Smith, Audit Manager, Wipfli LLP

Adam Meyer, Senior Accountant, Wipfli LLP

Shelby Sonnentag, Senior Accountant, Wipfli LLP

Edwin Miller, Senior Accountant, Brookdale Senior Living

Aron Van Pelt, Controller, Concurrency, Inc.

Leary Morris, Manager, Sikich LLP

Brenna Van Rooy, Internal Audit Senior, Schneider National Inc.

Danielle Oberndorfer, Controller, SelzerOrnst Construction Company, LLC

Andrew Witt, Partner, Bull Moose Financial

EDITORIAL ADVISORY

The annual On Balance Editorial Advisory Committee meeting is an opportunity for members to critique content published in the magazine and contribute ideas for article topics. Members are encouraged to share issues and trends affecting their businesses, clients and the accounting profession. Feedback is used to help plan the editorial calendar. The meeting sometimes results in committee members being asked to write articles on specific topics in which they have expertise. During the year, members may be called upon to contribute topic ideas for specific issues of the magazine. While the Board Liaison Neil Keller, Partner-in-Charge, Tax Services, Sikich LLP Members Jordan Boehm, Manager, CLA Steve Boylan, Managing Director of Investment Banking, BEACON Business Group James Brandenburg, Partner, Sikich LLP Wendy Brown, Sole Proprietor, WJ Brown CPA, LLC Melodi Bunting, Training and Career Development Manager, Wegner CPAs

On Balance

May | June 2021

Catherine Cassidy, VP of Marketing, BEACON Business Group Elizabeth Colson, Senior Manager, Financial Recruiting, Baker Tilly Neil Fauerbach, Consultant

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My involvement with the WICPA Young Professionals Committee has continued to grow over the past few years, and the opportunity to network with a wide variety of professionals has been a wonderful experience. The relationships built through the committee and events throughout the year provide you with a network of great people to lean on personally and professionally. The best part is you don’t even need to be a CPA! — Jesse Roberts, Chair, Young Professionals Committee

“

The input this committee provides regarding topics is integral to helping us provide the most relevant content to our readers. Active members have the opportunity to network with each other, learn about the publication process and contribute articles if they desire, giving visibility to their organizations in doing so. The WICPA greatly values member input to editorial content, and members are reminded they can receive CPE credit for their contributions. — Marcia Tillett-Zinzow, Consultant/Publications Editor

Greg Gavran, Managing Director, Strategic Retirement Partners Matthew Kaiser, Student, Concordia University

Edward Rueter, Senior Associate, CLA

Jeffrey Lemmermann, Information Assurance Auditor / Consultant, SynerComm Inc.

John Sikora, Shareholder, von Briesen & Roper, s.c.

Robert Mathers, Shareholder, von Briesen & Roper, s.c.

Gerald Schmit, Partner, Sikich LLP

Edward Thelen, Finance Consultant, Humana, Inc.

wicpa.org

- Welcomes -

Richard Kollauf We are pleased to announce the addition of Rick to our SVA Certified Public Accountants team. He brings more than 35 years of experience working with clients to provide a consultative tax-planning approach to trust and estate planning. He also works with business owners on succession planning, providing guidance for the best tax-advantaged way to accomplish their goals. In addition to advisory services, Rick will also lead our Trust & Estate Compliance (tax filing) service line. “I enjoy helping clients develop an estate planning strategy by working with their legal counsel and other advisors. Whether working with individuals and/or families of significant wealth or business owners, it is important to integrate all types of financial planning. Together we will create a comprehensive approach to meet both your personal and business goals.”

Richard J. Kollauf, JD, CPA, CFP , AEP Principal m kollaufr@sva.com | A (262) 923-5243 ®

Estate Planning and Tax Expertise with Personalized Service

Charitable Giving Strategy

Owner Transition Planning

Estate Planning

Estate Document Review

Comprehensive Tax Strategy

Mergers and Acquisitions

Measurable Results. | SVAaccountants.com ™

wicpa.org

On Balance

May | June 2021

{ Member Benefits | Milestones }

MEMBERSHIP MILESTONES 5-YEAR MEMBERS Heather S. Anderson Nietz Bruce E. Bain Tyler Batzko Philip D. Bauer Joshua Baumann Kyle D. Bennwitz Daniel A. Berg Elizabeth K. Beyer Schwartz Aaron J. Boettcher Robert J. Bollig Lawrence M. Bovee Heather N. Boyd Jeff Bradford Michael Brand Jonathon T. Brandt Lisa N. Brey Erika O. Brink Jingjing Brusky James L. Bryson Erik B. Bunnell Aaron Cook Samantha Croswell Arielle E. Dahlgren Kayla A. Dauphinais Jacob S. Davies Rachel Detert Lucas R. Dorn Nathan Dreikosen Patrick D. Erickson Lucas Espinosa Amanda M. Farley Dilyana Feneva Jayme Fenstermaker Matthew J. Gates Alyssa R. Geracie Michelle Goetsch Michael G. Goller Aaron L. Griedl Allison R. Gulbronson Tara J. Guler Victoria Haas Jaclyn Halverson Joseph T. Harrison John T. Hart Jr. Alyssa M. Hartung Jillian Hayward John J. Herson Jordyn Herzog Colleen M. Hodgson Christopher Holdway 46

On Balance

Sarah C. Honer Lynne H. Huebschen Paul L. Huset Jessica R. Jaeger Kathy L. Jandrin Benjamin Jensen Benjamin J. Johnson Luke A. Johnson Mark Juedes Elizabeth L. Kallies Cristina M. Kanethavong Kim M. Keller Jeffery T. Kim Cheri K. King Morgan R. Klemm Elizabeth J. Kosok Brandon Krause Jared Krueger Morgan Kvasnica Alex J. Landry Benjamin A. Larrabee Arthur Lee Ivana Lee Jack G. Lee III Brittany F. Leonard Bradley Leonhard Abby C. Liebergen Andrew R. Lietz Nathan C. Lipton Jason R. Londo Edward G. Maginot Kevin M. Marks Heather E. Martinez Ashley L. Meade Jacob N. Meckstroth Joseph K. Meeusen David P. Meicher Marcus C. Meiklejohn Hui Meng Linda C. Meyer Tyler C. Mollert Emily J. Moriarty Leary Morris Kayla Nabbefeld Michelle J. Nate Joseph M. Neuville Joseph R. Niemann Amanda M. Nowaczynski Mark J. Nowak Josh Noyes

May | June 2021

Jason S. Oswald Leslie A. Overton Sara Paull Joe E. Paulus Anthony J. Pekarske Matt Perszyk Douglas A. Pessefall Briana Peters Lowell E. Peterson Austin B. Petrie Emma Pilon Scott M. Platto Lauren Poppen Kale Post Jason D. Povlich Adam G. Pritzl Michelle Puls Chelsea Rasmussen Ryan L. Roers Angela Romersi Laura Roszak Daniel J. Salsman Michael Scaffidi Julie R. Schaus Kathleen M. Schilter Eric J. Schmoldt Alexander J. Schmus David Schneider Laura Schnelle Justin J. Schutte Thomas J. Schwanebeck Mistre L. Scribner Jocelyn K. Seeliger Kate E. Serpe Se Woong Y. Shim Justin Smocke Kelly Ann R. Sormankiewicz Robert J. Splinter Daniel P. Squire Mary J. Steinmetz Rick S. Stezenski Tanya L. Styczynski Thomas J. Subjak Stephanie M. Suchla Geno Tatintsev Michelle L. Van Vicki S. Vannieuwenhoven Brentan Vivian Dawn Vogel Carrie A. Wagie

Alan R. Wagner Wesley Wahlberg Roberta A. Ward Daniel A. Wasserman Jaimie M. Wilk Andrew D. Witt Yingying Yuan

10-YEAR MEMBERS Sunil K. Aghi Katrina L. Anderson Thomas J. Atkinson Paul D. Bagniefski Tara Bast Bryce Becker Jamilyn S. Beimborn Sarah Bender Austin C. Bennett Gail E. Bergunde Jeanne M. Bieser James D. Broughton Jonathan D. Brubaker Mike Bruflat Jessica M. Cassellius Delbert P. Collard Elizabeth L. Colson Vanessa A. Conlin Katherine A. De Cramer Benjamin G. Deering Blake J. Derr Peter J. Doemel Krista Donahue Maria Draeger Judithann J. Drexler Jacob P. Dykstra Daniel T. Egan Megan L. Ellingson Nicholas J. Faber Jessica M. Feiner Paul J. Frantz Nicole M. Gerend Bryan C. Gerlach Melissa M. Gerrits Katherine Glende Kendra M. Goodman Lisa M. Gottsacker Eric E. Gurholt Stephanie J. Hamilton Krista D. Hau

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John T. Himmelspach Ronald R. Holub Elizabeth M. Hufford John A. Imp Jr. Thomas G. Jacobson Cameron D. Johnson Dean M. Johnson Linda D. Johnson Rebecca L. Johnson Brian M. Kaker Gretchen Kaseman Bethany M. Keleher Hollie A. Kemmer Adam C. Kendle Kelli M. Keys Jeffrey J. King Adam A. Kleinmaus Philip S. Klemme Russell J. Kohl Heidi M. Konkel April M. Kouba Debra Kozeniecki Jacob A. Kraus Kathleen A. Kuna Andrew S. LaLuzerne Pamela M. Lammers John J. Larson Matthew E. Ludeman Steven C. Lunn Jessica H. MacNaughton Elizabeth M. Maciejewski Michael J. Mandler Andrew D. Maroo Scott E. Marr Nicole A. McGuire Amanda McNutt Quinn A. Mitchell Josh Mueth Mei-Lyn Nelson Derek J. Nest Brad Netzel Ashley M. Nuckolls Thomas M. Ockwood Gary O. Otte Erich R. Palecek Joseph D. Paroubek Justin G. Pavloski Barbara J. Peterson Kimberly A. Phalin Ashley M. Pharo wicpa.org

Brenda A. Pillard Keith A. Prince Ann R. Przybysz Lacey M. Quatsoe Heather J. Richter Kalyn J. Robbert David T. Roche Robin L. Rosenbaum Nathaniel A. Roth Rebecca Roy Michael A. Sama Mark K. Scheunemann David J. Schneekloth Paul D. Schoessow Gwen K. Schroeder David Schroepfer Brad S. Schuchardt Michael R. Scott Alexander S. Shima Anthony J. Singler Emily Sladky Tanya M. Stamps Samantha A. Stauber Nicole L. Sullivan Monica R. Swaagman Isabel Tarnowski Evan A. Thom Angela C. Thomas Kimberly K. Thome Dawn M. Thompson Michelle L. Thomson-Henry Denise Thrams Gretchen M. Vickney Patrice K. Wadzinski Michelle E. Walter Michelle L. Weber Dustin M. Wiesner Kristin M. Wilhelm Travis J. Willing Erin A. Witucki Adam J. Wunderlin Todd M. Zimdars

25-YEAR MEMBERS Juanita Banks Brian D. Barrett Michal C. Beam Timothy J. Beine Debra Berchem

Douglas K. Berry Peter J. Beste Scott C. Beyer Vicky L. Bladl Larry J. Brandl Linda A. Bryan Sandra A. Burant Michael A. Burzynski Scott A. Butzer Suanne M. Cain Kirsten K. Claas Kim T. Condon Jamie G. De Bruin Jay T. DeCleene Ryan L. Degnitz Brad W. DeNoyer Keith A. Depies Katherine A. Diederich Tracy L. Dillon Beth A. Doescher Cami A. Douglas David J. Drzadinski Julie A. Durnen Jeffrey L. Ehrlich Erik C. Eighme Linda J. Feirn Patrick M. Fischer Amy J. Gallagher Mark G. Gassner Charles L. Gladden Daniel R. Glomski Jay J. Grokowsky Michael G. Gustafson Kirk R. Hackbarth Victor A. Hancock Lisa M. Hansen Marie A. Hansen Kristine M. Hanson Carol L. Hecht Mandy L. Hess Todd J. Hietpas Joanne L. Holland Carol C. Hudson Keith A. Jochims Mark W. Johnson Mary W. Josten Tamara T. Jung Bradley J. Kalscheur Brian F. Kaplan David W. Karlovich

James J. Keller Robert J. Kerwin Dawn M. Kiel Roman A. Klink Corey J. Kolbe Michael C. Kopischkie Paul J. Krejcarek Thomas M. Krieg Julie A. Kuehl Dale E. Kunin Christine M. Kurland Kirit D. Lezotte Sheryl L. Lindstrom Katherine E. Loewen Scott L. Lueder Jay C. Luedtke Randy S. Mahoney Angela F. Main Muriel L. Marx Hoffmann Craig L. Maternowski Robert A. Mathers Jennifer J. Maurer Mark J. McLennon Paul M. McNichols Renee D. Meinholz Julie A. Miller Kevin M. Monson David J. Montoure Stephen C. Morton Timothy P. Muehler Douglas M. Mueller Derek J. Murphy Tawanda M. Neal Karn M. Netzinger Michael L. Neuendank Tuan M. Nguyen Brian K. Nowicki Marty V. Ozolins Bryan L. Pautsch Donald R. Pedersen Thomas M. Pederson William M. Pellino William T. Penkwitz David D. Pierre Linda M. Plier Sheila M. Porter Kristine A. Raeder William J. Raftery Paul W. Rahmlow Christine M. Reiter On Balance

May | June 2021

{ Member Benefits | Milestones }

MEMBERSHIP MILESTONES 25-YEAR MEMBERS, CONT. Edward Rivera Janet L. Rollmann Eve K. Romersi Robert C. Roth Stephen M. Rozek James P. Saueressig Robert J. Sawicki Jay P. Schauer Nanette E. Schiller Terri A. Schmidt Kevin J. Scott Stacey L. Setzer Katy L. Sommer Charles J. Stadler Josephine K. Stahl Peggy A. Steeno Pamela J. Sterling Linda A. Swift Daniel R. Taylor David A. Taylor Michael G. Temp Jodi L. Timler Olmen Christine M. Turk Julie A. Vaillancourt Roger W. Van Someren Thomas J. Van Wie Joel G. Vodnik Rick G. Vojtisek Robert T. Wagner Pamela A. Warosh Tracy C. Watchmaker-Schneider Robert R. Wedel Brian L. Wild Christa R. Willis Craig M. Yager Tracy A. Yandry Timothy S. Yeadon

40-YEAR MEMBERS David A. Akam Inge A. Bacon Pamela G. Bartow Randall H. Beard Charles F. Benjamin Valorie A. Boczkiewicz Donald J. Boltz James D. Briselden Michael J. Browne Keith J. Brunette

On Balance

Patricia R. Bruss James T. Burrell Charles P. Cedergren Jane M. Chaganos Kathryn M. Chandler David G. Chapman Patrick C. Costello John P. Devine Mark O. Faanes Edward L. Foy Lawrence J. Francione James Frechette James P. Gannon Stephen J. Gassner Gary L. Gephart Alan J. Giuffre Kathryn L. Golsteyn Michael J. Goossen Marshal T. Gorwitz Michael J. Griffin Kenneth P. Hahn John C. Hamill Steven G. Handrick J. Mark Hanson Paul W. Hatlestad Robert L. Henke Thomas G. Jacoby Constance R. Johnsen Daniel L. Kaminski Michael J. Kane Mary E. Kees Jerome D. King Coby M. Kohn Mary L. Koranda Glenn R. Krieg Michael G. Kuechler Steven A. Kurzon Keith I. Larson Gary L. Lau David R. Leicht Joseph E. Lindahl Scott R. Lodde Neil J. Lonergan Thomas R. Ludwig Mark E. Maciejewski James A. Mader Mary Meier Steven E. Menden Steven A. Meyer Roy L. Meythaler

May | June 2021

Todd A. Mueller Richard E. Nelson Terence A. Niewolny John L. Nowak Thomas N. Orendorff Deborah S. Page Bonofiglio David G. Page Carol F. Peirick Jeffrey E. Peterson Bernard J. Powers Thomas M. Powers Robert A. Prideaux Cheryl L. Puhl David L. Rahkonen Matthew I. Raunio Robert A. Reffue Richard S. Reichertz Mary E. Repka William J. Rewolinski Linda D. Rieke Tim Robinson Norman H. Roller Patrick W. Romenesko Thomas A. Scheidegger David W. Schmitz Nancy A. Schneeberger Martin L. Schultz Conrad J. Schumitsch Stephanie A. Shepard Peter G. Sirotkin Richard J. Skora Mark J. Spaeth Michael J. Stafford Vicki A. Stangel Jeffrey H. Starks Michael P. Steffes Louis M. Stein Edwin W. Storer IV Larry O. Stotz Elaine B. Strassburg Timothy D. Sweemer Dennis J. Swetlik John N. Tesensky David Traczyk Luanne S. Trudell Nicholas C. Ulman Carol A. Valley Milyn J. Vollmer Jeffrey D. Vorpahl Jeffrey C. Vredenbregt

Jeffrey P. Walters James R. Warren Paula A. Wegner Mark T. Whitish Mark A. Widmann Jami J. Wild Peter Willcoxon Randal Wilson Stephen P. Wisnefsky Michael S. Yankunas Stephen J. Ziegler Michael A. Zongolowicz

50-YEAR MEMBERS Russell D. Boerner Richard J. Boulay Dale J. Ducat John A. Gerold Richard J. Harder Jerry L. Haushalter Donald D. Hinkle Tom M. Janke Edwin F. Johnson Edward W. Karrels Kurt J. Kaspar James D. Katerinos John C. Kleczka III Jeffry D. Knezel Larry L. Lange Gary A. Lichtenberg Carl J. Mickiewicz Richard B. Nystrom Ronald F. Ostrowski Ronald E. Roberts Travis L. Roberts Robert W. Smith John W. Splude Robert F. Steffes Kenneth C. Stolzman Michael E. Strittmater Richard P. Teske Thomas S. Timmers Dennis E. Torkko Franklin M. Tresch Josephus W. Verberne Jule L. Willems Gary A. Zenobi

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