The WashingtonCPA March/April 2011 by Washington Society of CPAs

washington

CPA March/April 2011

Volume 53, Number 5

Women in Accounting

From Everest to the Executive Suite: Three Tips for Aspiring C-Level Executives Rethinking Capitalization Entity Selection: Federal and State Tax Consequences

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Contents

wa s h i n g t o n

CPA www.wscpa.org • memberservices@wscpa.org Tel (425) 644-4800 • Toll free in WA (800) 272-8273 Fax (425) 562-8853 902 140th Ave NE Bellevue, WA 98005-3480 BOARD OF DIRECTORS James R. Ladd Chair Mark A. Hugh Vice Chair David E. Katri Secretary Mary D. Marino Treasurer Carmen J. Aguiar Immediate Past Chair Richard E. Jones President & CEO

Robert M. Cole, Jr. Jolene G. Cox Peter E. Doubleday Joyce G. Etheridge Michelle H. Gretsch Susan E. Legel Lucy L. Liu Nerelys M. Ortiz

Russell D. Price Thomas A. Pucci Lisa J. Sunderman David E. Trujillo Randy L. Wells William L. Wells Glenn G. Wisegarver

CHAPTER BOARD CHAIRS Bryce Hansen Bellevue Area Joseph Crowther Central Joseph M. Reid Central — North Seattle Richard E. Helke, II Northwest Vicki Dixon Olympia — Peninsula — Pierce County Amanda J. Goodman Sammamish Valley Connie L. Griffith Seattle Court Carter Snohomish County Michael K. Briggs South King County John Vogel South Sound Industry Trayson J. Harmon Southwest Shaun W. Johnson Spokane — Wenatchee Katrina L. Cantu Yakima Jeanette Kebede

Editor

The WashingtonCPA is published by the Washington Society of Certified Public Accountants for its members. Views and opinions appearing in this publication are not necessarily endorsed by the WSCPA. The products and services advertised in The Washington CPA have not been reviewed or endorsed by the Washington Society of Certified Public Accountants, its board of directors or staff. The WashingtonCPA (USPS 009754) is published six times annually by the Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480. $12 of members’ annual dues goes toward a subscription to The WashingtonCPA. Periodicals postage paid at Bellevue, Washington and additional mailing offices.

Women in Accounting

5 6 8 9

We’ve Come a Long Way! From Everest to the Executive Suite: Three Tips for Aspiring C-Level Executives Women’s Leadership Summit Overcoming the Barriers to Success

Watch for Changes Ahead

2011-2012 Board of Directors Nominees

15 The Million Dollar Question ... and Advocacy 16 Thank You for Your Support of Washington CPA Foundation and CPAPAC 21 Entity Selection – Should I Be Concerned about How to Get Out? Part 2: Federal and State Tax Consequences 23 Rethinking Capitalization

Departments 4

Leadership Lens

Events

News Briefs

Photo Album

Advocacy

CPE Digest

Send address changes to The WashingtonCPA,

Industry Voice

Registration Form

c/o WSCPA, 902 140th Avenue NE, Bellevue, WA

Financial Literacy

Classified Ads

Photos by veer.com, gettyimages.com, istockphoto.com. POSTMASTER:

98005-3480.

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WashingtonCPA March/April 2011

Leadership lens

Watch for Changes Ahead By Rich Jones, CPA, President & CEO

recently attended and hosted the annual Midwinter Meeting of CPA-SEA (CPA State Executives Association). At this meeting, executives from the state CPA societies discussed the value that CPA societies have provided historically, and how that is changing today. It was a very thought provoking several days. Here are a few of the changes:

Networking

• People are busier today than ever before. Traffic has increased travel times to Society events and meetings. Members participate in more meetings via conference call or webcast. • Up to five generations work in the same workplace. It is a challenge to host networking events for attendees of a particular career stage. • Members are more specialized in their careers, either by industry, technical specialty or business segment. Hosting gatherings of members with common business interests is also a challenge. • Technology, including Facebook, LinkedIn, and Twitter, provides new ways for people to connect with others who share like interests.

Education

• CPAs and their employers are looking for the most cost effective way of educating their staff and satisfying CPE licensing criteria. This nationwide trend particularly applies to midsized firms. • The internet has transformed the landscape for providing education to CPAs. You probably receive offers to subscribe to self-study or online education opportunities

WashingtonCPA March/April 2011

from numerous organizations, such as the largest CPA firms, financial institutions, billion dollar training companies, the AICPA, and state CPA societies. Large organizations are able to offer high quality programs for free. • State CPA societies are, by their nature, defined by geography. As the internet recognizes no geographic boundaries, state societies compete with every other organization in the online marketplace. • In this economy, employers are much less likely to send employees to destinations that require air travel and lodging. This makes local conferences more attractive, particularly if the content is at an advanced level. Recognizing many of these trends over the past year, the Society’s educational programming includes these recent enhancements: • Webcasts - Added over 100 webcasts of seminars and conferences presented by the California Society of CPAs and the WSCPA. Webcasts are from two hours to 16 hours. Now you can take your mandatory Washington ethics CPE from the Society via live classroom instruction or webcast. • Self Study Subscriptions - This past year we added another CPE option, WA Pros. This option provides unlimited access to textbased and streaming video CPE at an annual subscription price of $309 + tax ($189 + tax for members interested in government and nonprofit accounting). • Advanced Level CPE - A new advanced level tax conference,

the Pacific Tax Institute, will be held November 7-9 in Seattle at the Bell Harbor Conference Center. This conference, designed for the experienced tax professional, requires no out of state travel. • New Conferences - Two new conferences will debut this June: •

•

Women’s Leadership Summit, June 2 at the Meydenbauer Center in Bellevue. Designed for women who are established or aspiring leaders, this event shares strategies and techniques for becoming powerful communicators and leaders. Emerging Leaders Conference, June 3. This conference’s highly successful speakers will reveal the many aspects of successful professionals and leaders. Hosted by Microsoft on their Redmond campus.

• Advanced Tax Webcasts Watch for a webcast series of advanced tax topics presented by WSCPA members who specialize in taxation. The programs will run monthly from May through December and will each quality for 2 CPE hours of credit. Stay tuned for details. These are some of the changes you will see in the months ahead as the Society strives to be essential to your success. If you have suggestions for how we might better serve you or meet your needs, please let me know at rjones@wscpa.org. www.wscpa.org

Leadership lens

We’ve Come a Long Way! By Jim Ladd, CPA,WSCPA Chair for 2010-11

s the WSCPA prepares for our Women’s Leadership Summit on June 2 (see page 8 for details on this event), it’s remarkable to reflect on how far our profession has come over the years of my career. Today 45% of WSCPA members are women, and we take gender equality for granted, but that’s a dramatic change in not that many years.

In 1964, when I began my career in the Seattle office of one of the “Big 8” (that term alone dates me) national firms there was only one woman, Darlene Johnson, on the “professional staff” (so named at the time), and I think she was the only woman on the professional staff of all the national CPA firms in Seattle at that time. She was the senior accountant on my first client assignment and she was great to work with. But to get that job she had to have an outstanding personality, be at the top of her class at the University of Washington, and receive the second highest CPA exam scores in the United States! In those days my firm’s initial twoweek training courses for new staff were held in New York City at the Downtown Athletic Club (home of the Heisman Trophy, which impressed me). But at that time the club did not allow women to go above the first floor, where the training was held, to the club’s hotel rooms and other facilities – so they had to stay overnight at a nearby commercial hotel, while the men stayed at the club. Some of the first women in our firm were understandably unhappy with that arrangement, and the following year the courses were moved to another location.

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The Journal of Accountancy has reported that in 1933 only about 100 CPA certificates had been issued to women in the United States. By 1946, perhaps buoyed by the need for more women in the workforce during World War II, there were 360. By the early 1970s, when the big firms had begun hiring women in more significant numbers, it was still common for male CPAs to resist, fearing the women would soon get married, have children and drop out of the profession, leaving their firms short-handed. And in my firm women were not given out-oftown assignments, apparently to alleviate the firm’s concerns about inappropriate interactions between men and women on the staff. At least one other national firm even prohibited staff members from dating each other well into the 1980s. That was an ineffective prohibition – it’s hard to imagine that after the firm had selected the best and brightest men and women they would not be attracted to each other. I in fact know a few who married, presumably after dating. On a larger scale, the Journal of Accountancy has reported that in 1933 only about 100 CPA certificates had been issued to women in the United States. By 1946, perhaps buoyed by the need for more women in the workforce during World War II, there were 360.

The first reliable statistics we have for the WSCPA are from 1985, when 26% of our 4,000+ members were women. The Journal of Accountancy reports that 50% of accounting graduates in 1985 were women, versus 10% in 1970. (I can remember a prominent accounting professor at the University of Washington in about 1978 telling me that 50% of his students were women but they had 90% of the brains.) Now, in 2010 the WSCPA has over 10,000 members, and 45% are women, reflecting the cumulative effect of rising percentages of women entering the profession. Even more dramatic, of our 1,445 student members, 58% are women! That parallels the Journal of Accountancy’s reported national statistics, which say that by 2004 56% of new entrants to the accounting profession were women, and that the percentage of full-time public accounting professionals who were female had risen to 42%. The rise of women in the CPA profession has long led other professions, but now the increasing percentages of graduating MBAs, attorneys and physicians have caught up (only engineering and the physical sciences are lagging). The rise of women in our profession, as well as in business and other professions, is no longer a trend, it has become wellestablished fact. We can be proud of the change and the roles our members have played and still are playing in it – and we all can recognize that we’re better off because of it! You can contact Jim Ladd at jladd@ systemsbiology.org.

WashingtonCPA March/April 2011

cover story

Women in Accounting

From Everest to the Executive Suite: Three Tips for Aspiring C-Level Executives By Susan Ershler

n my career as a Fortune 500 sales executive and a Seven Summits mountain climber, I’ve developed a set of guiding principles that have allowed me to achieve seemingly impossible revenue goals while simultaneously climbing the world’s highest mountains.Yet I don’t consider myself to be exceptionally gifted or unique.

my husband Phil standing together, triumphant at the summit. It was an image I would re-visit many times every day until it was so vivid and real, I could almost reach out and touch the snowy peaks and breathe the thin, frigid air. In 2002, my vision was realized when Phil and I stood atop Everest’s highest peak, becoming the

Prepare

Lesson: No mountain is scaled in a single climb, no quota achieved in a single day. You must create a detailed roadmap that delineates every step of your journey and includes tangible benchmarks to measure success along the way.

Project Persevere

Prepare

Anyone who is prepared to commit the time and effort can be equally successful if they Project • Prepare • Persevere®. These are the bywords to a systematic approach I’ve developed for achieving what some might consider to be unachievable goals. To illustrate this, here are three lessons I learned from my most difficult and exhilarating climbs:

Project

Lesson: Every success begins with an ambitious and clearly articulated vision. It’s essential to project your future and clearly define a vision for yourself and your team. During my year of intense physical training for Everest, I visualized myself and

WashingtonCPA March/April 2011

first couple in history to scale the Seven Summits. I took exactly the same approach as a sales leader, consistently setting seemingly impossible goals and then surrounding myself with images that, to me, comprised success. For example, I would place placards showing my team’s revenue objectives throughout my office and visualize our CEO congratulating us on having exceeded our numbers. After several months of this sustained visualization, I found myself gradually changing my viewpoint about my goal. What was once unthinkable became not only possible, but excitingly within reach. In my view, an extravagant goal both focuses and energizes you, simultaneously expanding your sense of your own capabilities and of life’s possibilities.

I had been climbing for only two years when Phil and I set out to ascend Mt. McKinley, the highest peak in North America, which stands over 20,000 feet. The day was clear and cold when our small plane touched its skis down on the ice-covered landing strip. Towering ahead of us, I could see the massive bulk of McKinley. I fell in behind the other climbers, carrying a very heavy pack and pulling a sled weighted down with gear. The air was so thin I could barely breathe. As we approached a deadly crevasse field, I found myself gasping for air and thinking, “This is ridiculous. I’m nowhere near ready for this type of expedition. If it’s so difficult now, I’ll never make it to the top. I shouldn’t even be here.” With every self-defeating thought, I slowed until I was down to a snail’s pace, www.wscpa.org

Women in accounting

No mountain is scaled in a single climb, no quota achieved in a single day.You must create a detailed roadmap that delineates every step of your journey and includes tangible benchmarks to measure success along the way. fighting back tears. As the only female, I was determined not to show weakness. Fortunately, Phil noticed and walked back to steady me. “Relax,” he told me. “We’re not going to climb the whole mountain today. We’ll go up in stages, from one camp to the next. In a few weeks, with luck and good weather, we’ll have one day left and that will be the day we reach the summit. Just like ‘eating an elephant,’ you do it one bite at a time.” From then on, I concentrated on reaching the next camp. When that no longer worked, I persevered in making it to the next rest break. When that became too much, I focused on picking up each leg and then stepping forward. In the end, we stood together on the summit, just as I’d imagined. Phil’s advice applies equally well to achieving any business objective. As a leader, you have to create a detailed roadmap that breaks even the most daunting goal down into manageable steps, with tangible benchmarks for success along the way.As a senior sales executive, I helped my team prepare for success by creating activity, territory and account plans that generated $600 million in annual revenue, exceeding our quotas 120-200 percent for 13 out of 15 years.

Persevere

Lesson: All great achievements are realized by committing to a goal and then working ceaselessly to attain it. www.wscpa.org

After 63 days of climbing Everest, Phil and I had just one day left to make it to the top. We began our final ascent at 2:30 in the morning, struggling against the bitter cold and heavy winds blowing snow horizontally into our faces. When we were just 1,400 feet from the summit—an elevation of about 27,600 feet—we stopped on an icy ledge to change our oxygen bottles. Lightning strikes in the distance would briefly pierce the gloom with an unearthly light. After assessing the conditions, Phil turned to me, shouting to be heard over the howling of the wind. “I can’t take you up in this storm. We need to go down, can you live with that?” At first, I felt a great relief, simply grateful to be alive. But as we began our descent, I suddenly understood the climb was truly over. After 60 days of tough climbing, two years of relentless training and putting my personal life on hold, my dream of standing atop Everest would not be fulfilled that day. As we began heading down the mountain, I saw Phil stumbling, something he had never done during any of our prior climbs. This worsened as we continued our descent. Finally, he turned to me and asked if there was something wrong with his eyes. I saw that there were small icicles hanging from his eyebrows and lashes. But when I peered closer, I realized that his brown eyes had turned a purplish hue. His eyes had frozen over! He later

I’m honored to give the keynote address at the WSCPA Women’s Leadership Summit, June 2. Like you, I was a very busy professional, contending with the high pressure, heavy workload, long hours and lofty expectations that go with a high-profile executive position. I was constantly competing with other departments to secure the resources I needed to win new clients and support existing ones, while simultaneously trying to have a rich, full personal life. It was an exhilarating and challenging ride. During the last decade of my corporate career, I actively pursued two dreams. The first was to realize my ambition to become corporate vice president of sales. The second was to climb the Seven Summits, the highest mountain on each continent, with my husband and mountain guide, Phil. During my keynote, I’ll discuss these experiences and what they taught me about going the distance to realize your dreams. I’ll share strategies that will enable you to overcome obstacles, hone your leadership skills and reach new heights in your career and personal life. I’ll discuss:

• •

•

How can you prepare to achieve an extraordinary level of individual accomplishment? How can you lead a team of people to greater heights than they themselves thought possible? How can you cultivate the individual spirit and leadership skills you need to make history?

Read this article to learn concrete strategies and practical techniques anyone can apply to achieve their most ambitious personal and professional goals. Susan Ershler – Business Executive, Everest Summiteer, Author and International Speaker

WashingtonCPA March/April 2011

cover story

Women in Accounting

told me it felt like he was trying to see through waxed paper. Thank goodness we had turned around. Phil might have lost his vision entirely or suffered a fatal accident. It had been the right decision to stop, even though we were so close to reaching our goal. A year later, we returned to Everest and reached the summit. It was a moment I will never forget, a dream finally fulfilled. This kind of perseverance is equally important in business. I’m a strong believer in the value of hard work, dedication and disciplined teamwork within an organization. I taught my sales team to take every “No” as a “Not Yet,” to understand every rejection as a challenge to improve, innovate and persevere. And then, like ascending Everest, to return again and again until the account was won and the sale closed. In business, as in life, if you persevere and stay focused, you will wake up one day and find yourself having achieved your loftiest ambition. When you do, it will be time to project your next achievement and begin the whole amazing process once again. Susan Ershler – Business Executive, Everest Summiteer, Author and International Speaker For more than 20 years, Susan has served in leadership positions for Fortune 500 corporations. During this era of corporate achievement, she climbed the highest mountain on each continent including Mt. Everest with her husband Phil, making them “The first couple in history to climb the Seven Summits.” Susan is co-author of Together on Top of the World by Warner Books. She speaks professionally about pushing past perceived boundaries to pursue your greatest dreams and helps corporations transform their organizations into dynamic forces for revenue growth. For more information, visit www.SusanErshler.com. Printed with permission. Copyright Susan Ershler.

new Women’s Leader ship Summit

pre se n t ed by

Ju n e 2 Meyd enbauer C ent er, Bel l evue This is it. The one conference designed to invigorate established and aspiring leaders. Women at all career stages will walk away from the Women’s Leadership Summit inspired and equipped with practical tools. Connect with other professionals, both current and future leaders. Hear from some of the nation’s top speakers, FBI and U.S. Treasury agents, as well as phenomenal local leaders. Though designed for women, the sessions and speakers will motivate all. Keynote:

Reaching New Heights - Everest & Beyond Susan Ershler, author, Together on Top of the World

Sessions:

Organizing for Success - Elizabeth Bowman, Innovatively Organized Finding Your Ideal Career Path (Panel) - Trish Zuccotti, SVP, Chief Accounting Officer and Controller, Expedia - Mary Peterson,Vice President and University Counsel, Seattle University - Kelly Key, US Treasury Fraud Interviewing Techniques for Women - Lisa Jangaard, CPA, CFE, Special Agent, FBI Becoming a Powerful Leader and Communicator - Jennifer Wilson, Convergence Coaching Building Your Leadership Brand - Carol Isozaki, Principal, Strategic Brand Intelligence

CPE 8 credits Conference Planning Committee Carmen J. Aguiar, CPA, CFP, PFS, The Aguiar Group Sarah Bee, Seattle University Cathleen G. Hylton, CPA, PricewaterhouseCoopers LLP Rhona H. Kwiram, CPA, Clark Nuber PS Tina L. Skidmore, CPA, Deloitte & Touche LLP Eleanor J. Siverts-Akerman, CPA, Norman & Kitto PLLC Laurie J. Tish, CPA, Moss Adams LLP

Supporting Sponsor

WashingtonCPA March/April 2011

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Women in accounting

Women in Accounting: Overcoming Barriers to Success By Yasmine El-Ramly, CPA

he AICPA recently asked the 2010 Women to Watch Award winners this question: How did you manage to reach and establish yourself into leadership positions? This article divulges a few barriers that these female leaders experienced and how they were tackled.

Barrier 1: Lack of Confidence

Showing confidence is key to making a lasting impression, creating working opportunities and receiving challenging assignments. If you do not believe in yourself, how can your colleagues and business partners believe in you? Women should not downplay their contributions, nor phrase their statements as questions or use an upward inflection at the end of statements, which indicates doubt.

Barrier 2: Lack of Visible Role Models

Women sometimes believe that there is no room for them past certain levels within their companies, that an invisible barrier or “glass ceiling” must be stopping their career progression. Also, why persevere at the sacrifice of their personal lives? Why advance if they need to change who they really are, cultivate male traits or tailor their style to be more men friendly?

Women need to seek inspiration from various and visible role models. Role models have their own personal story of perseverance and success. Pick and choose mentors based on their aspirations and needs: Breaking the glass ceiling, successful integration of professional and personal lives, successful business founders, etc.

Barrier 3: Pressure of Perfection

Women can be on occasion their worst enemy, striving to be 100 percent dedicated to their families and 100 percent dedicated to their work. They can certainly do it all, but it is very difficult to do so at the same time. Women need to adapt their professional lives to answer their personal needs and vice versa. To help excel in their work, they need a good support system to assist them in their daily routine. This can be a helpful partner or parent that can carry a fair load of family chores or outsourcing help with the service of a nanny. Women should communicate concerns (workload, unrealistic deadlines, tight budget, etc) to supervisors or business partners or they may set themselves up for failure.

Request flexible working arrangements when life-altering events occur. This option can greatly relieve the stress of caring for an elderly parent or easing the transition from maternity leave.

Barrier 4: Lack of Advocate

Women tend to underestimate the importance of having an advocate: they tend to lean toward good listeners or mentors as opposed to good sponsors. Sponsors go beyond giving advice: they advocate for their protégé, help them gain visibility, pass along challenging assignment opportunities and can shelter them from political issues or complications should they arise. Women have made great progress today. Even though we are heading in the right direction thanks to the help of our women pioneers, we still need to create awareness, educate, advocate and advance women in the accounting profession. Yasmine El-Ramly, CPA, is a project manager at the AICPA, and specializes in women’s initiatives and human capital projects. Previously, she worked in public accounting with three different CPA firms of different sizes.

WSCPA Board of Directors Past Chairs

During the more than 100 history of the Society, the following women served as president or chair of the Board of Directors.

Dwan W. Bowen, CPA 1991-92

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Adele Brady Bolson, CPA 1995-96

Bea L. Nahon, CPA 2000-01

Julleen Snyder, CPA 2008-09

Carmen J. Aguiar, CPA 2009-10

WashingtonCPA March/April 2011

news briefs

Look for Your WSCPA Membership Renewal in Your Mailbox Win one of three $300 Amazon gift cards

our annual membership renewal will be mailed April 15 and will cover your membership from June 1, 2011-May 31, 2012. Payment is due June 30, 2011.

Renew early and you have the chance to win big! The WSCPA will hold three drawings for $300 Amazon gift cards. The sooner you pay, the more opportunities you have to win. 1. 2. 3.

Pay your dues by midnight April 30 and be entered into each of the three drawings. Pay your dues by midnight May 15 and be entered into the second and third drawings. Pay your dues by midnight June 1 and be entered into the third drawing.

As an extra bonus, if you pay your membership and update your membership profile by June 1, you will earn an extra entry into the drawing for a $100 Amazon gift card. Thank you in advance for your prompt renewal and for your continued membership in the WSCPA! Have you recently moved, changed employers or changed your e-mail address? If you answered “yes” to any of these questions, please update your contact information with the WSCPA prior to April 1. Make changes at www.wscpa.org (click Update Profile) or e-mail changes to memberservices@wscpa.org.

Nominate an Outstanding Member WSCPA Annual Awards John L. O’Brien Lifetime Achievement Award Vincent A. Gervais Public Service Award Business of the Year Award Volunteer of the Year Award Rising Star Award New Professional Award

Submit your nomination by March 15 at www.wscpa.org. (Enter “awards” in the search box.)

WashingtonCPA March/April 2011

wscpa Membership Renewal Options Thank you for renewing your membership by June 1, 2011

Online at www.wscpa.org, under Membership

Call (425) 644-4800 or (800) 272-8273 (Toll-free in Washington) with a credit card

Fax your membership renewal statement to (425) 562-8853

Mail with payment to WSCPA, 902 140th Ave NE, Bellevue, WA 98005-3480

Are Your CPA Credentials Due for Renewal in 2011? Important Renewal Reminders 1. The renewal deadline is April 30. After April 30, renewal applications must include a $100 late fee. 2. Renew online. You must renew your individual and/or firm license with the State Board online using CPAOnline. Download instructions for using the online system here: www.cpaboard. wa.gov/files/Detailed_Instructions_ w-pics.pdf. Questions? Visit www.cpaboard.wa.gov or send an e-mail to customerservice@ cpaboard.wa.gov. www.wscpa.org

news briefs

Why WSCPA Members Belong

Advocacy “Throughout my career, I have relied on the WSCPA to keep me informed about changes to laws and regulations that affect my profession. By participating as a grassroots volunteer, I have become aware of and appreciate that the WSCPA amplifies my voice through its representation of and advocacy for more than 9,500 members.”

“Now that I own a small business, I am not as connected to other CPAs as I used to be. WSCPA networking events allow me to connect with other CPAs that I can bounce ideas off of and get support, or share resources with. Plus we have plenty of fun at the networking events!”

Education

Brenna Rogers, CPA Accounting Equation, Inc., Bellevue WSCPA Member since 2009

Networking

Maureen Foley, CPA Member since 1999

“For my entire career in public accounting, I have relied on the WSCPA as the primary source of my continuing education. The quality of the programs and the instructors has left me confident that my technical skills were being developed and enhanced in ways that assured me of professional competence.” Don Luby, CPA Luby & Thomson PLLC, Seattle WSCPA member since 1981

Look for your WSCPA 2011-12 membership renewal in the mail in April. Renew your membership by June 1 and be eligible for various prizes. See page 10 for details. Thank you for your membership!

We “tweet” your firm!

Expand Your Client Base in Time for Tax Season Enroll Now in Find a CPA Referral Service

ould you like to expand your client base? The WSCPA’s online Find a CPA Referral Service is a cost effective way to market your firm’s services to the public. For just $175, you can list your firm with this service. Plus, you can add satellite offices for $50 each. Enroll now and your firm will be in the service through June 30, 2011. This service is marketed in directories www.wscpa.org

statewide, online directories and, starting this year, via Twitter. Each firm in the referral service is promoted via Twitter to our followers. Hundreds of individuals and businesses statewide looking for CPAs visit this service at www.wscpa.org or call the Society especially during tax season. If you have questions about this service, please call Jennifer Ayoub, (425) 586-1142 or (800) 272-8273,

ENROLL TODAY!

CPA Referral Service

Visit www.wscpa.org, and click “Find a CPA,” then “Enroll Online Today.”

Ext. 1142 (toll-free in WA), or e-mail memberservices@wscpa.org. WashingtonCPA March/April 2011

Board of directors nominees

2011-2012 Board of Directors Nominees

he Board of Directors is pleased to present for your review nominees for the Society’s 2011-12 Board of Directors.

In accordance with Article VI of the bylaws, all nominees will be declared elected by the secretary at the annual meeting unless other nominations, supported by at least one percent of membership, are received by March 1, 2011. If a contest for one or more positions develops, an election for those positions will be held at the meeting.

Lucy L. Liu, CPA

Mary Dowling Marino, CPA

Lucy L. Liu, CPA

Randy L.Wells, CPA

Randy L. Wells, CPA

Position

Vice Chair

Position

Treasurer

Position

Secretary

Term

1 year; automatically becomes chair 2012-13

Term

1 year

Term

1 year

Board service

Since 2009

Board service

Since 2009

Board service

Since 2009

Mary Dowling Marino, CPA, is a member of the management team in Larson Allen LLP’s Bellevue office. She has more than 25 years of experience in income tax consulting in Arizona, Washington D.C., Connecticut, and Washington State. Mary has previously held leadership positions with Jefferson Wells, RSM McGladrey Inc., and KPMG. As a former member of the Board and Executive Committee for the Arizona Society of CPAs, Mary has solid experience in state-level administration of matters and challenges affecting CPAs and their clients. Mary and her husband, Carl, live on Bainbridge Island and in Bellevue.

WashingtonCPA March/April 2011

Lucy Liu, CPA, is the Tax Division Manager for the City of Bellevue where she administers the city’s business taxes and licenses. She has worked in the state and local tax area for over 18 years. Prior to joining the City of Bellevue, Lucy worked at a national accounting firm in their state and local tax practice specializing in Washington Business & Occupation and sales and use taxes. She is also a former revenue auditor for the Washington State Department of Revenue where she audited businesses for compliance with state taxes. Lucy is a graduate of the University of Washington. She lives with her husband and two daughters in Bellevue.

Randy Wells, CPA, is Market Circle Leader and Managing Partner for RSM McGladrey overseeing the firm’s Pacific Northwest and Bay Area offices. With the firm since 1989, he has more than 20 years of experience in public accounting, with expertise in accounting and auditing, and other consulting services in the manufacturing, distribution, construction, and professional services industries. Randy has held leadership positions for several professional and civic organizations. A graduate of Eastern Washington University, Randy is married with three children.

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Board of directors nominees

2011-2012 Board of Directors Nominees

Meet the Incoming Chair: Mark Hugh, CPA Mark Hugh, CPA, is the principal of Mark Hugh & Associates PLLC, a firm devoted exclusively to serving clients with Washington State and local tax issues. He has represented hundreds of taxpayers at all levels, from field auditors to administrative appeals with both the Department of Revenue and the Washington State Board of Tax Appeals. His work includes planning and compliance reviews for a variety of organizations. Mark is a frequent trainer and speaker regarding state and local tax issues, and his audiences since 1992 have included accountants, industry groups, attorneys, and Washington legislators. He is the author and instructor of Washington State and Local Taxes and the Washington CPA Professional Ethics and New Developments, a Washington State Board of Accountancy approved course for regulatory ethics.

Waylon P. Jones, CPA

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Karissa Lackey, CPA

Position

Director

Position

Director

Term

3 years

Term

3 years

Waylon Jones, CPA, is Surety Accounting Manager for Liberty Mutual Surety. He supports the underwriting process, assisting with the creation of quarterly summaries of current portfolio risk levels and exposures. He also assists with the assessment, upon an underwriter’s request, of the accounting operations of any current construction account, and identifies ways to lower its risk of default, as well as improve the accounting operations overall. He has 10 years of experience in the surety and construction accounting industry. Waylon moved to the Seattle area from Philadelphia in January 2007.

He graduated with honors from the University of Washington, and holds a master’s degree in federal income taxation from Golden Gate University. Mark lives in Bellevue and has three sons.

Karissa Lackey, CPA

Waylon P. Jones, CPA

Peter R. E. Miller, CPA

Peter R. E. Miller, CPA Position

Director

Term

3 years

Karissa Lackey, CPA, is an audit senior manager in KPMG’s Seattle office. She has 12 years of experience serving clients in the not-for-profit, public sector, healthcare, and higher education industries. Her experience includes working with clients with large and complex structures, advising clients regarding emerging industry trends and relevant financial reporting developments, and providing advice on technical accounting issues. In addition, she serves on KPMG’s Network of Women Steering Committee for the Seattle office. Karissa lives in downtown Seattle and holds a Bachelor of Arts in Business Administration (Accounting) from the University of Washington. Pete Miller, CPA, is a principal at Clark Nuber, an award winning firm headquartered in Bellevue, where he has practiced in the firm’s audit and assurance group for the past 10 years, focusing on the firm’s commercial client base. Pete also leads the firm’s forensic accounting and fraud investigation practice. As a member of the board of directors of the Bellevue chapter of the WSCPA, Pete has served as treasurer and president and was bestowed the Chapter President of the Year Award for 2008-09. Pete and his wife, Kelli, have a five yearold son and one year-old daughter; they live in Maple Valley. WashingtonCPA March/April 2011

Board of directors nominees

2011-2012 Board of Directors Nominees

David J. Miniken, CPA

David J. Miniken, CPA Position Term

Rosemary Sanchez, CPA

Sharon K. Philpott, CPA

Rosemary Sanchez, CPA

Director

Position

Director

Position

Director

3 years

Term

3 years

Term

2 years

Dave Miniken, CPA, is a member of the management team at Sweeney Conrad, where he serves as the director of Sweeney Conrad’s audit and accounting practice. Dave provides all phases of audit and financial accounting advisory services to a wide range of industries and to a diverse group of privately-held businesses and their owners. He also provides internal audit consulting services to a number of organizations. Prior to joining Sweeney Conrad in 1995, Dave started his audit career with The Boeing Company. Dave and his wife, Leslie, live in Issaquah with their two daughters.

Sharon Philpott, CPA, is currently the assurance business line leader for BDO in Seattle and previously was a partner at Ernst & Young with 25 years of combined experience in public accounting. She began her career in Washington D.C. and also worked in New York, Houston, Atlanta and Buenos Aires, Argentina before relocating to Seattle in 2004. Sharon is a graduate of The College of William and Mary. She is on the Board and the Finance Committee of the Seattle Aquarium Society. Sharon and her husband Stephen Finn live in Seattle.

Rosemary Sanchez, CPA, is a partner at Bancroft Buckley Johnston and Serres LLP located in Seattle. She has been in the accounting profession for over 20 years, primarily practicing in the field of public accounting with additional experience in the private sector and higher education. Rosemary has a strong commitment to community outreach, including a careerlong history of building positive working partnerships with government agencies, school districts, brokerage firms, banks, associations, and nonprofit organizations. A member of the AICPA, Rosemary graduated from Central Washington University and Golden Gate University.

Remaining on the Board The following members currently serve on the board and will serve on the 2011-12 Board in the following positions:

•

Chair:

Mark A. Hugh, CPA

•

Immediate Past Chair:

James R. Ladd, CPA

•

President & CEO:

Richard E. Jones, CPA

•

Directors:

Peter E. Doubleday, CPA Joyce C. Etheridge, CPA Susan E. Legel, CPA

WashingtonCPA March/April 2011

Nerelys M. Ortiz, CPA Russell D. Price, CPA Lisa J. Sunderman, CPA

David E. Trujillo, CPA William L. Wells Glenn G. Wisegarver, CPA

www.wscpa.org

advocacy

The Million Dollar Question ... and Advocacy By Judy Love,WSCPA Director of Advocacy

he Society’s top legislative priority for the past three years has been to insure that the State Board of Accountancy remains an independent agency. Therefore, we were extremely pleased that Governor Gregoire did not call for the SBOA to be consolidated into the Department of Licensing in her 2011 legislative agenda. As mentioned in a previous column, an independent consultant to the Board completed its study about the “efficacy, efficiency and accountability” of merging the board into the Department of Licensing. The consultant’s strong conclusion was “a merger would result in a significant decrease in the accountability of the WBOA ...” The Accountability section is one of the more interesting in the 93-page report. In a survey of 12 states with independent agencies and 10 states whose boards operate under a larger “umbrella” organization, the consultant compared the number of complaints handled by other states’ boards related to the number of licensees. The comparison was startling – those boards under some type of consolidation arrangement “are obtaining and resolving complaints at about 50% to 54% of the rate of independent agency accountancy boards.” The report is quick to point out that the scope of the project did not allow time to determine the exact cause of the reduced rates of enforcement activity of those boards under consolidated arrangements, but the data does indicate that independent boards are more effective at obtaining and following up on complaints. The consultant’s conclusion is that it is likely a combination of those states’ having more investigative resources, better outreach efforts or different operational priorities. www.wscpa.org

Even though the Washington State Board of Accountancy will remain independent, its resources will be significantly reduced for the near term at least.

Even though the Washington State Board of Accountancy will remain independent, its resources will be significantly reduced for the near term at least. The 2011 supplemental budget that is working its way through the legislature includes $1,000,000 that will be swept from SBOA reserves into the general fund, leaving a very tight operating fund balance. Members of the State Board have written to the Governor expressing their deep concern that their ability to protect the public may be compromised. While the Society recognizes the gravity of the State’s budget position and acknowledge that every program is being scrutinized, reduced and/or eliminated,

we are equally concerned about this transfer of $1,000,000 into the State’s general fund. No general fund money supports the Board’s activities; licensee fees represent the sole source of the Board’s operating fund, while the $20,000 - $50,000 collected from fines each year go into the State’s general operating fund. Unlike many states’ statutes,Washington’s accountancy act is virtually silent on the nature and disposition of these dedicated funds. We believe we need to begin now to research options and develop legislation that will identify and protect SBOA reserves in the future. You can contact Judy Love jlove@wscpa.org or (425) 586-1130.

Save the Date WSCPA Annual Meeting June 1, 2011 Featuring Professional Issues Update with Bob Bunting WashingtonCPA March/April 2011

Foundation & CPAPAC

Thank You for Your Support of Washington CPA Foundation and CPAPAC Washington CPA Foundation

CPAPAC

Washington CPA Foundation awarded $41,500 in accounting scholarships to 25 accounting majors for the 2010-11 academic year.

During the recent political campaign season, WSCPA members delivered nearly 50 CPAPAC checks to legislative candidates. Their discussions about key issues increased the profession’s visibility and enhanced legislators’ understanding of the critical role CPAs play in preserving the state’s business climate. Some immediate and tangible examples of the value of such a political presence from the 2010 legislative sessions are:

View all scholarship recipients at www.discovercpa.org

Thank You to Foundation Circle Contributors Chairmans Circle Aguiar Group Carmen J. Aguiar, CPA, CFP, PFS Richard E. Jones, CPA Alan B. McAllister Roy J. Polley, CGFM CIA Senior Executives Circle James R. Ladd, CPA Gregg I. Rubenstein Joseph P. Sambataro Jr Kirstine E. Whisler, CPA Leaders Circle Rodney W. Ashby, CPA Pat L. Bohan, CPA, CGFM Daniel W. Brady Sr, CPA, MBA Donald R. Brink, CPA, CFE Weldon T. Burton, CPA Robert M. Cole Jr, CPA MA Electronic Business Machines Scott E. Eschbach, CPA Joyce G. Etheridge, CPA Daniel W. Fisher

Executives Circle Gerald E. Adams, CPA Jessica E. Andrews, CPA Dean A. Granholm, CPA Edwin G. Jolicoeur, CPA David E. Katri, CPA, MBA Thomas A. Pucci, CPA Thompson & Company PLLC William L. Wells Bart H. Wilson, CPA, MBA

•

Persuaded legislators that a sales tax on professional services is not a fix for the budget deficit. Negotiated a smaller B&O increase for a shorter duration.

•

Defeated Governor Gregoire’s proposal to move the State Board of Accountancy into the Department of Licensing for the third year in a row.

Special Thanks to Roy and Linda Polley for contributing $10,000 to the Foundation. At the annual Foundation Circle Reception, held January 20 at the Harbor Club in Bellevue, Linda Polley contributed an additional $25,000 to the Foundation.

Heather L. Fitzpatrick, CPA Michelle H. Gretsch, CPA Mark A. Hugh, CPA Rhona H. Kwiram, CPA Lucy L. Liu, CPA Mary D. Marino, CPA, MBA Jeffrey P. Maxwell, CPA, JD E. W. Parker Kimberly D. Scott, CAE Julleen J. Snyder, CPA Hayden B. Williams, CPA

Foundation Contributor Level

Contribution

Chairman’s Circle Senior Executives Circle Executives Circle Leaders Circle Senior Contributor Supporting Contributor

$2500+ $1000-$2499 $500 -$999 $250 - $499 $100 - $249 $50 - $99

WashingtonCPA March/April 2011

Heather Fitzpatrick, Foundation Chair, and Linda Polley at the Foundation Reception. Turn to page 28 for additional photos from the reception.

www.wscpa.org

FOundation & CPAPAC

Thank You to Contributors to the Foundation and CPAPAC The following individuals and organizations donated to the CPAPAC or Washington CPA Foundation from January 2010-January 2011.

Foundation Contributors Senior Contributors Bill Bailey Gregg Blodgett, Wendy G. Darcy, CPA Peter E. Doubleday, CPA Alan L. Erlenbush, CPA William D. Hood, CPA Michael J. Kander, CPA, CIA Marcelle LaGrou Glenn M. Light Bernie M. Little, CPA Sandra J. Moss, CPA Daniel B. Myers-Power, CPA James J. Rigos, CPA, JD LLM CMA CFM University of Puget Sound Diana S. Webb, CPA Dwight J. Zulauf Supporting Contributors Leonard L. Almo MBA Michael R. Ammerman, CPA David V. Anderson, CPA Erica M. Ash, CPA, MBA Gordon P. Asheim, CPA Kelly R. Bachman, CPA Brant J. Baker, CPA John P. Baker, CPA Tyler J. Baldwin, CPA Cathi L. Barta, CPA Marc G. Bateman, CPA Michael L. Bayless, CPA, JD Louis H. Beckman, CPA David G. Bembridge, CPA Robert C. Best, CPA, JD Jessie D. Beyer, CPA Irene B. Birdsall, CPA Jennifer L. Bixel, CPA Martin R. Blevins, CPA Bradley S. Bogar, MBA Gaylon D. Boley, CPA Adele B. Bolson, CPA, CMA CFM Erika D. Bonner, CPA Brady W. Borel Patrick S. Bouker Robert J. Bowls, CPA David E. Boyle, CPA, MBA Paul W. Brandstetter, CPA William H. Bratton, CPA Bruce D. Breitenbach, CPA Margaret E. Brennan MBA Brian R. Bronk, CPA

www.wscpa.org

David A. Brown John R. Brown, CPA Christine B. Brunner, CPA Bruce P. Budge, CPA Kurt Burger, CPA, MBA Daniel A. Burns, CPA Dora A. Burzenski, CPA Deanne M. Butler, CPA Deborah M. Caine, CPA Sesinando N. Cantor, CPA Maria T. Carrion-Ochoa, CPA Edward T. Carson, CPA Mary K. Case, CPA Rebecca A. Cates, CPA J K. Christensen, CPA Philip M. Christensen, CPA, CFP, CLU Marc D. Christianson, CPA Theresa J. Christianson, CPA Robin A. Clark, CPA Kenneth L. Clenin, CPA R D. Collier, CPA Daniel C. Collins Marvin A. Condotta, CPA David C. Conklin, CPA Jeffrey M. Cordova, CPA Anthony C. Costello, CPA David D. Cottler Jolene G. Cox, CPA Jay F. Cramer Michael R. Cross, CPA Lawrence A. Dal Maso, CPA MPAcc Stephen G. Dashiell, CPA Natalie Davidson, CPA, PS Joseph P. Deacon, CPA W C. Deaton, CPA, ABV, CVA Carol E. Didier, CPA Eva M. Donahoo, CPA David A. Dorn, CPA Thomas N. Durrett, CPA Charles J. Dyer, CPA Thomas J. Eby MBA Roger J. Elliott Robert J. Erickson, CPA JD Kim E. Etlicher, CPA Scott L. Faires, CPA Joan C. Faubion, CPA Janice L. Ferguson Leon F. Ficker, CPA John J. Flavio Jr Paul J. Fleury, CPA Joseph R. Forde, CPA Rick R. Foster, CPA Norman H. Frey Li Fu, CPA Jesusa J. Fusade, CPA

James H. Gall, CPA, MBA Dwayne A. Gantz, CMA CPCU CLU Steven C. Garber, CPA Chris A. Gates, CPA, CITP Stephanie W. Gebhardt, CPA Dr Norman J. Gierlasinski, CPA, DBA Susan Gill Audrey L. Godwin, CPA Brian G. Gosline, CPA JD Kent A. Gray Richard D. Greaves, CPA Bonnie L. Green, CPA Linda M. Greenly Harumi K. Guiberson Gary G. Guinn Ariff A. Gulamani, CPA, CA BA Vaughn S. Hagen, CPA Walter J. Haig II, CPA Richard E. Haislip, CPA, MBA Scot T. Hansen, CPA Michael R. Harper MBA Michael P. Hart, CPA MPAc Michael D. Haveman, CPA Alicia M. Heggerness, CPA M S. Heidema, CPA Charles A. Hellam Jacqueline J. Henry, CPA Leonard J. Heritage Patricia A. Hernandez, CPA, MBA CBM Esther T. Hill, CPA Patricia A. Hisayasu, CPA John R. Hodder, CPA Howard H. Holman, CPA, MBA Shyh-Ing Hong, CPA Navzer R. Hormazdi, CPA, MT MS Tax Ed L. Huebner, CPA Daniel R. Humphrey Gary F. Hunter, CPA Marc S. Hutchinson, CPA Michael K. Hutchinson, CPA Sara-Elizabeth J. Hyre, CPA, MBA Hitoshi Inoue, CPA Randle K. Inouye CMA Cindy L. Isaacson, CPA Kenji Ito, CPA Natalia S. Jernegan, CPA Ernest R. Johnson Don N. Jonas, CPA Waylon P. Jones, CPA, CFE CFF George C. Jonson, CPA Michael D. Joslin, CPA, CIMA Deborah J. Juntunen, CPA Arthur Y. Kageyama

Osamu Kasuya Raad T. Kattula, CPA Maria T. Keating, CPA Dr. Marinilka B. Kimbro, PhD Gary P. Kirchner, CPA Katsunori Kitamura, CPA Douglas M. Klan, CPA Teruo Kobayashi, CPA John P. Koenes, CPA Jeffrey R. Kolcum Karl J. Korsmo Daniel J. Kovarik, CPA Stroud W. Kunkle, CPA Frank J. Kuntz, CPA, PS Jean M. Kunz, CPA, JD Pui-lam J. Kwan Heather A. Kyles, CPA Evelyn M. LaFond Irene R. Laible, CPA Nancy M. Lalic, CPA Gordon W. Lamb, CPA Dr Margie N. LaShaw, CPA Marvin P. Leaf, CPA David C. Lee Kwang M. Lee, CPA Wai-Fong T. Lee, CPA CFP Susan E. Legel, CPA, MBA Zhiwei Lin, CPA MBA R G. Lincoln, CPA Rick L. Linder, CPA Clayton D. Linnell Aaron Lockling Luellen H. Lockwood, CPA MBA, EA Douglas O. Long Roger L. Long, CPA Deborah M. Loober, CPA Paul D. Loveridge, CPA, MBA John S. Macdonald, CPA Anthony T. Mai Harriet Man, CPA, CA Charlotte W. Maris, CPA Carrie S. Martin Connie M. Martin, CPA Teresa N. Martinez, CPA Emma McArdel, CPA Gary L. McGregor, CPA, MS Tax Ross D. McIvor, CPA Phil McLaughlin Tim McNees John M. Mertz, CPA Sue E. Middaugh, CPA Sallie A. Miles, CPA Carol T. Milholland, CPA Louis H. Mills, CPA James B. Misenheimer III, CPA Bruce I. Mitchell, CPA, MBA

Donald W. Mitchell Beatrice Mitman, CPA Patricia G. Molnar, CPA Robert M. Monson, CPA Robert E. Morrow, CPA Beverly A. Mumper, CPA, CFP Michael A. Munger, CPA David A. Munko, CPA Ryan L. Munn, CPA Alisa S. Na, CPA Bea L. Nahon, CPA Mark Needham Paul G. Neiffer, CPA Stephanie M. Neis, MBA David S. Nelson, CPA CTRS Kaye J. Nelson, CPA Michelle B. Nelson, CPA Raquel R. Nelson, CPA Mark R. Newton, CPA, ABV Ann B. Nguyen, CPA Thomas P. Nicholas, CPA Hiroko Nihongi Henry L. Nornberg, CPA Brian D. Nyman, CPA, PFS Dale E. Offret, CPA Aldryth N. O’Hara, CPA Larry M. Okada, CPA, CA Terence V. O’Keefe Margaret M. O’Meara, CPA MST Susan F. O’Neill, CPA Douglas M. Oord, CPA Phillip L. Orrin, CPA Joanne L. Ort, CPA MPAcc Katsuhiko Otaki, CPA Susanne B. Packman, CPA Benjamin J. Page JD Richard N. Pahre, CPA Rhoda M. Pawlak Stacy G. Payte, CPA Michael S. Peasley, CPA, MS Tax Ronald J. Perkins, CPA Linda M. Perry, CPA, MT Jack B. Person, CPA Scott T. Petersen, CPA Lorrie Pfaff, CPA Molly M. Philopant, CPA Michael J. Plymale, CPA Laurie Prall, CPA Russell D. Price, CPA MBA ACA Kell B. Rabern, CPA Varonica S. Ragan, CPA Edward L. Raisl, CPA Tiffanie A. Ranta, CPA Robert J. Rebar, CPA Stephen J. Reddaway, CPA Heather B. Rees Leslie J. Rice, CPA, FLMI

WashingtonCPA March/April 2011

Foundation & CPAPAC

Thank You to Contributors to the Foundation and CPAPAC

Penny F. Ridderbusch, CPA Christopher J. Rieke, CPA, CFP Laura D. Rivendell, CPA Michael W. Roben, CPA Rachel M. Robert, CPA Lauri D. Roberts, CPA Donald L. Rodman, CPA, MBA Sheila A. Roe, CPA Sharon R. Rogers, CPA Harvey J. Rothschild III, CPA David J. Rumsey, CPA Ken M. Russell, CPA Richard H. Russell, CPA Craig S. Ruthford, CPA Dr Debra L. Sanders, CPA George D. Sanders, PhD, MBA Susan J. Sanders, CPA Robert G. Sanderson John P. Sandstrom Thomas P. Sawatzki, CPA David D. Schelert, CPA John J. Schnellbach, CPA Karey A. Schoenfeld, CPA JD David R. Schultz, CPA David G. Schureman, CPA Charlene H. Severin, CPA Harold G. Shapiro, CPA Christopher A. Sherfey, CPA, MBA Jay T. Shilhanek, CPA John R. Skeen, CPA Kevin P. Skirko, CPA Orphalee Smith, CPA, PFS Russell J. Smith, CPA Dale W. Snow, CPA Terry D. Sodders, CPA Kinam Sohn, CPA Marcus B. Sprute Cathy L. St John, CPA Alyson C. Stage, CPA William M. Stanke, CPA Donald L. Starr, CPA Sidney J. Starr, CPA, CFF DABFA Gary A. Stecher, CPA Donald W. Stetson, CPA Tania I. Stevens, CPA George W. Stewart, CPA Lisa J. Sunderman, CPA, MBA Michael D. Sweeney, CPA Darren J. Szendre, CPA Susan H. Taniguchi Steve Taylor, CPA, MBA David F. Teeny, CPA Lauren L. Thomas, CPA, PHR Harold G. Thompson Jr, CPA Terry M. Thompson, CPA Tommy R. Thomson, CPA

Susan L. Thomson-Sines, CPA Enga H. Thong, CPA Teresa Towne, CPA Anne M. Trimnell David E. Trujillo, CPA Kathleen L. Trumbauer, CPA Jaime L. Tuttle, CPA Mark E. Ulloa, CPA Robert A. Underhill, CPA, JD Beth M.Van Pay, CPA, FLMI Mary C.VanNuland, CPA Susanne W.Vickerman, CPA MS Tax Sharon I.Vik, CPA, MBA Carol L. Wagar, CPA, CCPS Robert W. Wales David F. Walter, CPA Donald B. Walter, CPA, MBA William W. Wangler Jr, CPA Douglas F. Ward Linda B. Ward, CPA Robyn C. Warren, CPA James M. Warrick, CPA MS Tax Mark P. Waslen, CA, CFA Hiroshi Watanabe, CPA Patricia A. Wehr, CPA Randy L. Wells, CPA Robert E. Wells, CPA Michael J. Wernz, CPA Leo L. Werre, CPA Jami D. Wetmore Elizabeth J. Widdison Bradley R. Wilkins Alan K. Williamson, CPA Wendy B. Willow, CPA Shirley J. Winsley Glenn G. Wisegarver, CPA Virgil B. Woodfield, CPA Patrick L. Wooters, CPA Justin K.Yamamoto, CPA Stephen J. Zevenbergen, CPA Danielle R. Zlatich, CPA Lawrence R. Zommick, CPA Other Contributors (<$50) Thomas K. Albinson, CPA Louise C. Andrews, CPA, MBA Candice E. Avery, CPA Kelly D. Barber, CPA, MS Tax Keli L. Baughan, CPA Marcia K. Bennison, CPA Merrianne R. Bieler MBA David M. Bishop, CPA Ivana A. Blank, CPA Matthew M. Bursell, CPA Thomas J. Byrne, CPA Terry J. Campbell, CPA, MST

WashingtonCPA March/April 2011

Pamela Creitz-Peppan Brenda L. Dean, CPA, CIA Laura H. Earl M C. Evans-Wenzel RDH Jackie L. Franklin, CPA Christine M. Freeman, CPA, BS MS Richard N. Ginnis, CPA William F. Gould Donald W. Gracia, CPA Gerald L. Greer, CPA Mahesh K. Gupta, CPA Clinton L. Hagfeldt, CPA Jerry C. Haralson Katherine H. Hasegawa, CPA Michael D. Hinchen, CPA John Hirsh Barbara T. Huang, CPA Laurel A. Joyal Kristen L. Kanahele Vildana Kunduklija Mary S. Larson, CPA Brent H. Manley, CPA Donald B. Martin, CPA Stacy R. Mattson, CPA Margaret McIlroy Gilver S. Melgar, CPA Arthur D. Miles, CPA Ruth R. Moore, CPA Andre Mueller, CPA Judith E. Nakatsu, CPA MBA Daniel Neuharth, CPA Brad Olsen Stephen K. Opare, CSOX Pro Frank N. Peterson Leslie H. Redd III, CPA Timothy J. Rizzo, CPA LaVeta M. Scherer, EA Sally G. Schloer, CPA Eilia Seip Yet Sok Beatrice M. Stockwell, CPA Diane F. Troje, CPA John M. Urrutia, CPA, MS Tax Lois D.Vankat, CPA, FLMI Richard A.Volk, CPA Franz Von Bradsky MBA Judith L. Waddell, CPA Dorothy R. Wagsholm, CPA Toutou White Sarah H. Whitmyre, CPA Roni R. Wiessman, MBA Peter J. Zalusky III

CPAPAC Contributors Carmen J. Aguiar, CPA, CFP, PFS Gregory C. Alwood, CPA Michael R. Ammerman, CPA David V. Anderson, CPA Sharon M. Andreason, CPA Stephen Angove, CPA Rodney W. Ashby, CPA Gordon P. Asheim, CPA Kelly R. Bachman, CPA Stephen M. Bader, CPA MBA John P. Baker, CPA Tyler J. Baldwin, CPA Kelly D. Barber, CPA, MS Tax Julie A. Barnfather, CPA Cathi L. Barta, CPA Marc G. Bateman, CPA Robert W. Batty, CPA, PFS Louis H. Beckman, CPA David G. Bembridge, CPA Marcia K. Bennison, CPA Gerald J. Besel, CPA Irene B. Birdsall, CPA Pat L. Bohan, CPA, CGFM Adele B. Bolson, CPA, CMA CFM Brady W. Borel Robert J. Bowls, CPA Paul W. Brandstetter, CPA William H. Bratton, CPA Brian R. Bronk, CPA David A. Brown John R. Brown, CPA Christine B. Brunner, CPA Bruce P. Budge, CPA Daniel A. Burns, CPA Mary Ann M. Burns, CPA Weldon T. Burton, CPA Dora A. Burzenski, CPA Deanne M. Butler, CPA Terrance R. Caffey Jr, CPA Terry J. Campbell, CPA, MST Linda M. Canney, CPA Sesinando N. Cantor, CPA Richard J. Caragol, CPA Harold D. Carrothers, CPA Edward T. Carson, CPA Rebecca A. Cates, CPA Amanda Y. Chang, CPA, MS Tax J K. Christensen, CPA Philip M. Christensen, CPA, CFP, CLU Theresa J. Christianson, CPA Robin A. Clark, CPA Kenneth L. Clenin, CPA

James E. Coates, CPA James G. Cochrane, CPA Robert M. Cole Jr, CPA MA R D. Collier, CPA Jodi A. Colligan, CPA CMA Daniel C. Collins Michael D. Cone, CPA David C. Conklin, CPA Judy S. Conner, CPA Anthony C. Costello, CPA David D. Cottler Jolene G. Cox, CPA Jay F. Cramer Michael R. Cross, CPA Lawrence A. Dal Maso, CPA MPAcc Vicky M. Dalton, CPA Wendy G. Darcy, CPA Stephen G. Dashiell, CPA Chris A. Davies, CPA, CMA Charles R. Davis, CPA Billie De Vore, CPA Joseph P. Deacon, CPA Brenda L. Dean, CPA, CIA Wesley L. Delaney, CPA Carol E. Didier, CPA David A. Dorn, CPA Thomas N. Durrett, CPA Laura H. Earl Scott C. Eastham, CPA Eileen L. Elamin, CPA Roger J. Elliott Robert J. Erickson, CPA JD Scott E. Eschbach, CPA Joyce G. Etheridge, CPA Kim E. Etlicher, CPA Joan C. Faubion, CPA Janice L. Ferguson Leon F. Ficker, CPA John J. Flavio Jr Paul J. Fleury, CPA Joseph R. Forde, CPA Rick R. Foster, CPA Jackie L. Franklin, CPA Christine M. Freeman, CPA, BS MS Norman H. Frey Darrell W. Fry, CPA James H. Gall, CPA, MBA Steven C. Garber, CPA Chris A. Gates, CPA, CITP Stephanie W. Gebhardt, CPA Robert L. Gerth Dr Norman J. Gierlasinski, CPA, DBA Michael J. Gillespie, CPA M R. Gilmour, CPA, CFP

www.wscpa.org

FOundation & CPAPAC

Thank You to Contributors to the Foundation and CPAPAC

Sandee J. Gimblett, CPA Richard N. Ginnis, CPA Audrey L. Godwin, CPA Dennis B. Goldstein, CPA Brian G. Gosline, CPA JD Donald W. Gracia, CPA Matthew A. Graham Rick H. Graham, CPA William J. Graham, CPA Kent A. Gray Bonnie L. Green, CPA Linda M. Greenly Gerald L. Greer, CPA Michelle H. Gretsch, CPA Celia L. Griffin, CPA CDFA Ariff A. Gulamani, CPA, CA BA Mahesh K. Gupta, CPA Vaughn S. Hagen, CPA Walter J. Haig II, CPA Scot T. Hansen, CPA Jerry C. Haralson Michael R. Harper MBA Michael P. Hart, CPA MPAc Michael D. Haveman, CPA Alicia M. Heggerness, CPA M S. Heidema, CPA Leonard J. Heritage Patricia A. Hernandez, CPA, MBA CBM John Hirsh Patricia A. Hisayasu, CPA John R. Hodder, CPA Howard H. Holman, CPA, MBA William D. Hood, CPA Navzer R. Hormazdi, CPA, MT MS Tax Jane H. Hren, CPA Barbara T. Huang, CPA Ed L. Huebner, CPA Mark A. Hugh, CPA Daniel R. Humphrey Marc S. Hutchinson, CPA Michael K. Hutchinson, CPA Hitoshi Inoue, CPA Cindy L. Isaacson, CPA Kenji Ito, CPA Don N. Jonas, CPA Richard E. Jones, CPA Waylon P. Jones, CPA, CFE CFF George C. Jonson, CPA Michael D. Joslin, CPA, CIMA Arthur Y. Kageyama Osamu Kasuya David M. Kendrick, CPA MST James W. Keyes, CPA Herbert S. Kim, CPA Katsunori Kitamura, CPA

www.wscpa.org

Douglas M. Klan, CPA Teruo Kobayashi, CPA John P. Koenes, CPA Karl J. Korsmo Stroud W. Kunkle, CPA Frank J. Kuntz, CPA, PS Jean M. Kunz, CPA, JD Pui-lam J. Kwan Heather A. Kyles, CPA James R. Ladd, CPA Irene R. Laible, CPA Nancy M. Lalic, CPA Gordon W. Lamb, CPA Michael R. Lampton, CPA Kathryn J. Lappano, CPA Dr Margie N. LaShaw, CPA Marvin P. Leaf, CPA Jeff E. Leary, CPA, CFP David C. Lee Kwang M. Lee, CPA Susan E. Legel, CPA, MBA James C. Littrell, CPA Lucy L. Liu, CPA Robert B. Loe, CPA, MBA, CFE Douglas O. Long Mark T. Long, CPA, MSTax Roger L. Long, CPA Deborah M. Loober, CPA Carol L. Loranger Judy A. Love Paul D. Loveridge, CPA, MBA Alasdair MacAuley Jan J. Manfredini, CPA Charlotte W. Maris, CPA Connie M. Martin, CPA Sam T. Martin, CPA CFP MBA Teresa N. Martinez, CPA John P. Marvin Jeffrey P. Maxwell, CPA, JD Sally J. McColloch, CPA Gary L. McGregor, CPA, MS Tax Ross D. McIvor, CPA Robert P. McKinley, CPA Phil McLaughlin Tim McNees John M. Mertz, CPA Sue E. Middaugh, CPA Sallie A. Miles, CPA Heather J. Mills, CPA Louis H. Mills, CPA Kim K. Mishko, CPA Bruce I. Mitchell, CPA, MBA Donald W. Mitchell Charles E. Morgan, CPA Mark J. Morrissette, CPA Matthew S. Moser, CPA, PFS Gary E. Mueller, CPA

Beverly A. Mumper, CPA, CFP Michael A. Munger, CPA David A. Munko, CPA Ryan L. Munn, CPA Alisa S. Na, CPA Bea L. Nahon, CPA Mark Needham Paul G. Neiffer, CPA Stephanie M. Neis, MBA David S. Nelson, CPA CTRS Michelle B. Nelson, CPA Raquel R. Nelson, CPA Stephen L. Nelson, CPA, MBA MS tax Michael T. Nesland, CPA, MBA Daniel Neuharth, CPA Mark R. Newton, CPA, ABV Ann B. Nguyen, CPA Thomas P. Nicholas, CPA Henry L. Nornberg, CPA Dale E. Offret, CPA Larry M. Okada, CPA, CA Terence V. O’Keefe Paul E. Olmsted Susan F. O’Neill, CPA Douglas M. Oord, CPA Stephen K. Opare, CSOX Pro Phillip L. Orrin, CPA Bradley W. Orser, CPA Joanne L. Ort, CPA MPAcc Nerelys M. Ortiz, CPA Katsuhiko Otaki, CPA Benjamin J. Page JD Richard N. Pahre, CPA Janak M. Patel, CPA Rhoda M. Pawlak Brian W. Paxton, CPA Linda M. Perry, CPA, MT Jack B. Person, CPA Scott T. Petersen, CPA Lorrie Pfaff, CPA Molly M. Philopant, CPA Valerie A. Pickens, CPA, CIA Michael J. Plymale, CPA Russell D. Price, CPA MBA ACA Thomas A. Pucci, CPA Kell B. Rabern, CPA Varonica S. Ragan, CPA Edward L. Raisl, CPA Robert J. Rebar, CPA Leslie H. Redd III, CPA Leslie J. Rice, CPA, FLMI Lonnie L. Rich, CPA Christopher J. Rieke, CPA, CFP James J. Rigos, CPA, JD LLM CMA CFM Donald L. Rodman, CPA, MBA

David J. Rumsey, CPA Ken M. Russell, CPA Stephanie J. Salmon, CPA Susan J. Sanders, CPA John P. Sandstrom David M. Sarabacha James D. Schafer, CPA, MS David D. Schelert, CPA LaVeta M. Scherer, EA Jeffery S. Schilling, CPA Christopher G. Schmidt, CPA Karey A. Schoenfeld, CPA JD, LLM Daniel J. Schroeder, CPA Charlene H. Severin, CPA Harold G. Shapiro, CPA Jay T. Shilhanek, CPA Abbey M. Short, CPA John R. Skeen, CPA Orphalee Smith, CPA, PFS Douglas D. Springer, CPA, PFS Cathy L. St John, CPA Donald L. Starr, CPA Donald W. Stetson, CPA George W. Stewart, CPA Beatrice M. Stockwell, CPA Lisa J. Sunderman, CPA, MBA Michael D. Sweeney, CPA Susan H. Taniguchi Steve Taylor, CPA, MBA David F. Teeny, CPA Harold G. Thompson Jr, CPA Terry M. Thompson, CPA Tommy R. Thomson, CPA Susan L. Thomson-Sines, CPA Enga H. Thong, CPA Teresa Towne, CPA Micah G. Trautman David E. Trujillo, CPA Mark E. Ulloa, CPA Robert A. Underhill, CPA, JD John M. Urrutia, CPA, MS Tax Beth M.Van Pay, CPA, FLMI Joseph H.Vandal Jr, CPA Mary C.VanNuland, CPA Susanne W.Vickerman, CPA MS Tax Sharon I.Vik, CPA, MBA Judith L. Waddell, CPA Dorothy R. Wagsholm, CPA Robert W. Wales David F. Walter, CPA Donald B. Walter, CPA, MBA Catherine B. Wandell, CPA William W. Wangler Jr, CPA Douglas F. Ward Linda B. Ward, CPA

Martin B. Warr James M. Warrick, CPA MS Tax Hiroshi Watanabe, CPA Patricia A. Wehr, CPA Randy L. Wells, CPA Robert E. Wells, CPA William L. Wells Michael J. Wernz, CPA Leo L. Werre, CPA Jami D. Wetmore Bradley R. Wilkins Glenn G. Wisegarver, CPA Alvin L. Wolcott II, CPA, MPAcc Virgil B. Woodfield, CPA Shari A. Wood-Richardson, CPA Cheryl K. Woods, CPA Peter J. Zalusky III John N. Zaremba, CPA Stephen J. Zevenbergen, CPA Lawrence R. Zommick, CPA Firms Benson & McGlaughlin PS Clark Nuber PS Deloitte & Touche LLP Ernst & Young Grant Thornton LLP Johnson & Shute PS KPMG PricewaterhouseCoopers LLP

Contributions to the Washington CPA Foundation and CPAPAC may be made at any time during the year, or when you renew your Society membership every spring. Learn more about the Foundation and CPAPAC at www.wscpa.org (search for “Foundation” or “CPAPAC”).

WashingtonCPA March/April 2011

Entity Selection

Entity Selection – Should I Be Concerned about How to Get Out? Part 2: Federal and State Tax Consequences By Brian Gosline, CPA, JD

n part 1 of this article (published in the January/February 2011 issue of The WashingtonCPA), we introduced a scenario involving two clients who came into your office all excited about their new business venture.They began asking about all the various business entities: “Should I form a corporation?” “How about an S corporation?” “What about a limited liability company (LLC)?” Then you burst their bubble when you asked, “How do you plan on getting out of this venture?” They inquired, “Why are you concerned about that when we haven’t even opened our doors yet?” The article discussed various issues from a “legal point of view,” but now it is time to talk about federal and state tax consequences of your entity selection.

“A corporation is like a lobster trap as it is easy to get in, not bad living in and very difficult to escape.” I have found that this saying nicely encapsulates the federal tax consequences of a corporation ... especially when it is time to get out.

corporation is like a lobster trap as it is easy to get in, not bad living in and very difficult to escape.” I have found that this saying nicely encapsulates the federal tax consequences of a corporation whether A Caveat Please note that the federal and state they are a C corporation or an S cortax issues mentioned in this article are poration, especially when it is time to major issues, but you cannot let them be get out. First, regardless of whether it is a C the ONLY issues that drive your entity selection. There are factors discussed corporation or an S Corporation; or in part 1 of this article, plus factors too whether it is a liquidating or non-liquidatnumerous to discuss here, that may have ing distribution, you must treat the disa great bearing on any certain business. tribution of assets as if the corporation For example, have you asked whether “sold such assets at fair market value” your clients are U.S. citizens and/or resi- (there may be a different treatment for dents? The answer to that question could specific S corporation scenarios not considered here). This means that at the corhave a bearing on your entity selection. Further, the space limitations of this porate level, gain or loss is recognized and article will limit somewhat our discussion income tax paid. But remember, LOSS is of these matters as many books have been only recognized on a LIQUIDATING diswritten dealing with these matters. Our tribution. Therefore, if you have assets purpose is to point out various issues and that have depreciated in value, liquidathopefully pique your interest in follow-up ing your corporation may be your only analysis dependent upon your clients’ cir- option if you want to recognize a loss. Second, at the shareholder level, tax cumstances. will be levied again for a C Corporation Corporate Form of Doing shareholder. Once again, the fair market Business value of ALL assets received is treated There’s an old saying applicable as the “sales price” of the shareholder’s to corporations (I paraphrase), “A stock. This may create gain or loss— www.wscpa.org

preferably long-term capital gain taxed at preferential rates for the next two years or an ordinary “Section 1244” loss if eligible. If you have an S corporation that has always been an S corporation, you may be able to eliminate this second level of tax because the gain pass-through (from the previous paragraph) increases the shareholder’s basis in their stock. If you have an S corporation that elected S corporation status in the last 10 years prior to liquidation, you could have the same result as a C corporation due to “built-in gains.” Once again, this is flying at 50,000 feet —there are numerous planning options regarding corporate liquidations. But your imperative remains the same; you must consider tax consequences at both the corporate and shareholder level. When you set up your entity, be sure to consider possible outcomes upon liquidation. My personal preference: don’t put appreciating assets into the corporate form of doing business whether it be a C corporation or an S corporation.

Partnership Form of Doing Business

Please note that when we use the term

WashingtonCPA March/April 2011

Entity Selection

On Fire CPE For Industry CPAs “partnership,” we will consider limited liability companies and limited liability partnerships under this heading in addition to general and limited partnerships. One of the benefits of the partnership form of doing business is its flexibility. This flexibility extends to the tax treatment of dissolution and liquidation. As a general rule, there is no gain recognized at the entity level (unlike a corporation). Further, a partner will recognize gain when CASH received is in excess of their basis in their partnership interest. Please note that “cash received” includes the partner’s share of debt from which they are released. Generally, the partner’s basis in the assets received from the partner-

One of the benefits of the partnership form of doing business is its flexibility. This flexibility extends to the tax treatment of dissolution and liquidation. ship will either be the partnership’s basis in the asset or the partner’s remaining partnership basis. This may defer the tax recognition to another day. Like above, there are numerous planning options for partnership liquidations. Because gain or loss is generally deferred in such circumstances, your immediate tax consequence can be less. When you set up your entity, be sure to consider the flexibility a partnership could provide. My personal preference: use an entity electing partnership tax treatment to hold appreciating assets whether they be tangible or intangible, real or personal property.

March Clusters

March 23-24, 2011 | WSCPA, Bellevue Two days. Eight classes. Four CPE credits each. Select four courses from the following lineup of four-hour CPE programs: Wednesday, March 23 8-11:30 am - Select one Beyond Financial Accounting: Budgeting and Costing Techniques for Maximum Profitability (CL4BLMA) New FASB Developments for Business & Industry (CL4FASBI) 12:30-4 pm - Select one Analyzing Costs, Productivity and Efficiency: Three Ways to Boost Your Bottom Line (CL4PYPL) Revenue Recognition: Getting it Right (CL4RTBC) Thursday, March 24 8-11:30 am - Select one Decision-Making Tips, Tools and Techniques for Today’s Financial Environment (CL4TTMD) Introduction to IFRS: Grasping the Big Picture (CL4IUSA) 12:30-4 pm - Select one Cash Flow Statements: Preparation and Presentation Options (CL4FCFS) CPA’s Guide to Improving Communication, Listening and Writing Skills (CL4TLWP) Learn more and register at www.wscpa.org/CPE/catalog. Enter “CL4” in the keyword field.

2% of the gross fair market value of the entity’s assets or of the assets that are transferred. Exemptions are available— be sure you check them out before you proceed.

Bottom line

There are various other tax techniques that can be used with these entities, including combining some of Under Washington state law, certain the corporate techniques with the transfers of an entity’s controlling interest, partnership techniques discussed above. or an entity’s real property, could cause As this article is designed to be an entrée real estate excise tax to be paid. This tax into this subject, those techniques would could be somewhere between 1.5% and need additional, substantial space.

Washington Real Estate Excise Tax

WashingtonCPA March/April 2011

But our goal was to give you a good understanding of the various federal and state tax consequences of your entity selection. Although each client and each situation will be different, these tax consequences must be reviewed at the inception of the activity. Once again, waiting until the end of the entity may be too late. Brian G. Gosline, an attorney and CPA in Spokane, is a Past-President of the WSCPA and began his 22nd year as an adjunct professor of taxation and business law at Gonzaga University in January, 2011. www.wscpa.org

Capitalization

Rethinking Capitalization By Craig Chase, Senior Manager, Moss Adams LLP

hould you capitalize or expense repairs and maintenance? It’s a decision often made intuitively—in other words, “I’ll know an expense when I see it.” Yet careful examination of the accounting treatment for repairs and maintenance can help ease a company’s tax burden, often significantly. In fact, reexamining current and prior tax treatment of repair and maintenance expenses could provide immediate and sizable tax deductions.

Characterizing Costs: Repair and Maintenance Versus Capital Expense

This area of tax has been receiving a lot of attention lately, largely because of the proposed regulations issued in 2008 and uncertainty over what the final version of those regulations may ultimately look like.

Determining whether a cost should be capitalized or expensed isn’t as easy as it sounds. Take a simple roof patching, for example: Often there are facts and circumstances that play a significant role in making the determination of repairs on life of the building. Intuition may say that a broader scale than just patching existing the new roof T had installed should be capitalized and depreciated because of assets. the cost of the improvement, because the If we start with the simplest of tests roof is viewed as a new asset, or because for determining whether an improve- the roof extends the useful life of the ment cost should be capitalized as building—after all, with a leaking roof, the an asset, we can look at whether the building wouldn’t last very long. However, improvement extended the useful life or this same scenario could also fit a pattern materially increased the value of the asset pointing toward treating the cost as an improved—either one likely requiring expense. capitalization. The first step is determining the appropriate unit of property on which the tests Let’s explore the following scenario: for capitalization versus expense are to Taxpayer T constructed a building to be applied. In the case of T, the most likely house its business operations in 1995. appropriate unit of property is the buildAt that time it capitalized the entire ing, since that’s the level at which things cost of the construction as a single asset were capitalized when they were first depreciated over 39 years for tax and placed into service. The thinking here is the expected life of 40 years for book. In that a building is merely a set of compo2010 the building’s roof, reaching the end of its expected 15-year life, begins to fail. nents that all function together to create T incurs a cost of $40,000 to tear off the usable indoor space. existing roof and replace it with a similar Note that determining the unit of roofing surface. T expects to have to do property isn’t necessarily that simple. so again before the end of the economic www.wscpa.org

Now that we’ve made that determination for illustrative purposes, however, we can look at the simple tests for capitalization regarding the extension of useful life or increase in value. When viewing the work performed (roof replacement) at the building level, we can infer that simply replacing the roof isn’t going to extend the useful life of the building past the original estimated life of 40 years. Further, since a building is expected to have a functioning roof, replacement of the roof may increase the value of the building slightly, but compared with the value of the building overall, this increase wouldn’t likely be considered a material increase in value. As such, for T, the cost of replacing the roof could be characterized as a repair expense. This is a simple example of what might be done with current-year expenditures and looks only at the most rudimentary of tests for capitalization. There are additional tests that must be examined that are beyond the purview of this article. WashingtonCPA March/April 2011

Capitalization

Since this area of tax law is so circumstantially based, there are no bright-line tests or clear-cut guidance that can be matched to a set of facts.

Looking Back

For taxpayers that may not have current-year expenditures to review but may have previously capitalized repair expenses based on an inappropriate unitof-property definition, this can be corrected by filing for an accounting method change with the IRS. What’s more, it’s an automatic consent method change under Revenue Procedure 2011-14, which provides taxpayers with a simple administrative way of making this change by submitting Form 3115. Use caution, however: Even though part of filing for the method change includes disclosure of the assets affected by the change as well as a narrative on the current and proposed method of accounting, the underlying change to the unit of property isn’t ruled on and is subject to being challenged upon examination.

Seems Simple. So What’s the Risk?

Repair and maintenance expenses have long been an area of dispute between taxpayers seeking to deduct costs and the IRS, which pushes for capitalization of same. This area of tax has been receiving a lot of attention lately, largely because of the proposed regulations issued in 2008 and uncertainty over what the final version of those regulations may ultimately look like. As such, many taxpayers have been taking advantage of the administratively easy process of filing for the change in accounting method to expense repairs capitalized in the past. This appears to have triggered the IRS to put the procedure on its watch list; a year ago changes in accounting methods related to capitalization were listed as a Tier 1 issue, meaning the IRS views these types of transactions as at risk for abuse

by taxpayers and will be scrutinizing them. This shouldn’t dissuade taxpayers from taking advantage of the deductions available to them, however, as long as they can substantiate the position for their proposed method of accounting.

Resources Available

In November 2010 the IRS published an audit techniques guide for its agents to use when examining the issue of capitalization versus expense. Since this area of tax law is so circumstantially based, there are no bright-line tests or clear-cut guidance that can be matched to a set of facts. However, the document serves as a compendium of tax law applicable to the tests that are applied in determining the characterization of improvement costs. Additionally, the IRS is expected to issue the proposed regulations in final form, at least in part, sometime in 2011.

Craig Chase, based in the Everett office of Moss Adams, has more than six years of experience providing tax consulting services to clients in the real estate, health care, and other industries. His areas of expertise include cost segregation, repair and maintenance studies, and fixedasset reviews. He can be reached at craig.chase@mossadams.com.

WashingtonCPA March/April 2011

www.wscpa.org

Financial Literacy

Retirement Planning: Do Women Face Unique Challenges? By Amy O’Donnell,WSCPA Financial Literacy Program Manager

lthough many aspects of financial planning apply to men and women equally, women face unique life circumstances and factors that affect their financial planning needs.

April is Financial Literacy month.

Get involved. Visit www.wscpa.org and click Financial Literacy.

Women are making different choices about children and marriage than their mothers and grandmothers. These changes make it necessary for women to have more control and knowledge about retirement planning than their predecessors, who may have relied on someone else for this role. Women live longer (on average, a 65 year old woman today will live another 20 years), spend less time in the workforce and earn less during their lifetimes. Women start saving for retirement an average of two years later than men, which reduces their retirement nest eggs by

“No one wants an F in retirement” 15%. Fewer women than men participate in 401(k) plans and those who do contribute less. Combine these factors with the changing definition of what retired life looks like and retirement financial needs increase for women. “No one wants an F in retirement,” said Cindy Hounsell, Women’s Institute for Secure Retirement (WISER). WISER provides resources online (such as checklists for each age group) to help women plan for those extra years of retirement. She offers this advice: • Start saving when you are young, but it’s never too late. Get going now and stay focused on your goals. www.wscpa.org

• Determine how much you need to save. Use calculators at 360degreesoffinancialliteracy.org or www.choosetosave.org/ ballpark. • Create a plan for yourself, even if you are in a relationship. Combine the two plans to create a family plan. • Take advantage of your employer’s benefits and research other vehicles to help you reach your retirement goals. Assess your risk level to make sure it matches your long term goals. • When you consider a change in income or lifestyle, use the calculators to help you adjust your expenses to stay on track with your goals.

a third, according to the Center for Retirement Research at Boston College. • Evaluate and shop around for insurance to protect your assets and limit liabilities. Spread the word to your family, friends and clients, regardless of their gender, that the keys to successfully preparing for retirement are to have a plan and start early. Websites like 360 Degrees of Financial Literacy, FINRA, Investor Protection Trust and the Washington Department of Financial Institutions provide consumers with unbiased information. Sources: “What Today’s Women Need to Know and Do” from WISER; Employee Benefit Research Institute

• Consider working longer. Delaying retirement by three years after age 62, could increase your nest egg by WashingtonCPA March/April 2011

Events

Golf Tournament “I’d rather be

golfing!”

WSCPA Golf Tournament May 16, 2011 1 pm

Registration now open In addition to CPAs and their clients, bankers and lawyers, friends and family are welcome to attend. Along with golf, this event includes cart, lunch, dinner, drinks, reception and prizes! Don’t miss this opportunity to golf at Bear Creek, an exclusive club. Registration (425) 644-4800 | (800) 272-8273 (toll-free in WA) $110/person, $210/pair, or $420/team of four Questions? Want to sponsor? E-mail memberservices@wscpa.org. www.bearcreekcc.com

WashingtonCPA March/April 2011

Circling Raven Golf Club Coeur d’Alene, ID

Bear Creek Country Club Woodinville, WA

Bear Creek Country Club | D2 Productions

If golfing is your game, mark your calendar and plan to attend these 2011 golf tournaments.

WSCPA Spokane Chapter/ RMA Golf Tournament May 26, 2011 Registration opens March 1 Watch your Short Form for registration and event details or visit www.wscpa.org.

www.cdacasino.com/golf www.wscpa.org

Events

20 Networking 11 Events New Professionals

Puget Sound Events May 18 June 16 July 21 August 10 September 15 October 27 November 16

Kickoff Event, Daniel’s Broiler, Bellevue Wine Tasting, Patterson Cellars, Seattle Horse Races, Emerald Downs, Auburn Argosy Cruise, Pier 55, Seattle Trivia Night, Rock Bottom Brewery, Bellevue Scavenger Hunt, Hard Rock Cafe, Seattle Bowling, Garage, Seattle

SPOKANE Events April 28 October 20

Trivia Night, Steam Plant Grill, Spokane Casino Night, Hampton Inn, Spokane

Become a sponsor Contact Amy O’Donnell for details. aodonnell@wscpa.org | (425) 586-1140 Thank you to the returning sponsors listed below.

Mark your calendar and plan to attend! Learn more & REgister:

www.wscpa.org/CPE/catalog (enter “NP” in search box)

FEES: $20-$30 per event

happy hours

All Members Welcome! Casual networking. Free light appetizers. Registration not required. Puget Sound 2nd Tuesdays, various locations, 5-7:30 p.m. Find locations at www.wscpa.org/CPE/catalog. (enter HH in search box) Spokane 2nd Tuesdays, CI Shennanigan’s, 5:30-7:30 p.m.

Follow WSCPA

sponsorS

www.wscpa.org

WashingtonCPA March/April 2011

member discounts

Photo Album Spokane Chapter Drive for Dollars November 10 | Spokane The Spokane Chapter partnered with KXLY to collect $16,500 for Second Harvest Food Bank.The money will be used to purchase and distribute 99,000 pounds of food.

Washington CPA Foundation Reception January 20 | Bellevue 1

2 3

4 Jillian Robison, Casi Densley and Jeff Kolcum count the money collected. Sponsors included: KXLY Radio Group, the Spokane Club, and the Chapterâ&#x20AC;&#x2122;s Community Outreach Committee.

Felisa Bravo encourages passing cars to donate to Second Harvest. Live on KXLY 920 AM, Mike Fitzsimmons and Melissa Cloninger, encourage listeners to stop by and donate.

WashingtonCPA March/April 2011

1 2 3 4 5

Aymeric Prieur and Susie Thomson-Sines Jim Ladd and Joe Sambataro Kimberly Scott, Matt Herring and Mark Hugh Michael Plengrat, Dean Granholm and Jennifer de Leon Bob Cole and Daniel Brady, Sr.

www.wscpa.org

CPE Digest WSCPA Webcasts:

Find CPE Fast!

Convenient CPE Live

Did you know that the WSCPA offers CPE via webcasts? Webcasts make it easy for you to take CPE from the comfort of your home or office. Eliminate travel time, while enjoying live CPE from wherever you have a computer and internet connection. Webcasts allow you to view the instructor and the presentation, and even submit questions to the instructor via live chat. Whether you need a couple of CPE credits, or a full day, turn to WSCPA webcasts! View webcast clips at www.wscpa.org. Find sample webcasts by clicking on the webcasts link on the homepage or enter “webcasts” in the search box. www.wscpa.org

Search box

Webcasts

Free Federal Tax Podcasts

www.wscpa.org

Online Catalog

Technology Blues?

Sample webcast

Get up-to-date news on federal tax legislation, court cases and other developments with the weekly podcast “Federal Tax Update” with E. Lynn Nichols, CPA, Michael Mares, CPA, ABV, J.D. and Edward Zollars, CPA. These podcasts are provided to assist you in becoming more informed in federal tax legislation, and do not qualify for CPE credit.

Look for this icon at www.wscpa.org. Click it to go directly to the CPE/Event Catalog.

www.wscpa.org/podcasts

Want to improve your productivity? Need to learn what’s new with Micosoft Office 2007/2010 or Windows 7? Determined to become an expert in Excel, Word, Acrobat, Outlook, PowerPoint? Spring is a great time to earn CPE while brushing up your technology skills at the WSCPA. Choose from a variety of hands-on computer seminars held at the WSCPA Learning Center or webinars that let you hear the instructor and view the presentation through your computer. Topics include: • Adobe Acrobat for Accountants • Excel for Windows Advanced • Excel-Based Dashboards • PC Troubleshooting and Maintenance • Outlook - E-mail and Management Tips & Techniques • Creating Web Pages with HTML Turn the page to view the schedule of technology courses. Look for courses marked “Tech.” Or visit the online CPE catalog at www.wscpa.org/CPE/catalog and select technology from the subject menu.

WashingtonCPA March/April 2011

Conferences Conferences

Gover nmental Accounting & Auditing Conference

Making great strides... Making great strides...

April 18-19, 2011 | 8:00 a.m. - 4:00 p.m. Courtyard Marriott, Tacoma, WA with live video conferences in Spokane (GAAC2) and Everett (GAAC3) Keeping up with new standards, as well as current trends affecting local governments in Washington is no easy task. At the WSCPA/AGA Governmental Accounting & Auditing Conference, experts will bring you up to speed on recent changes and provide essential guidance on hot topics, such as new and pending standards. Register today, and prepare to make great strides in governmental A&A. General Sessions: • GASB Update • The ERM-practicing Organization and The Role of the Accountant: A Work in Progress • Responsibility to Health Care Reform • Fraud, Waste and Abuse – Update for Auditors • Governmental Auditing Update • Performance Audit Frameworks Plus, select from these Concurrent Sessions! The State of the State Economy Indirect Cost Rates and Cost Allocation Plans – What To Do and What Not To Do Using Risk Assessments to Develop Work Plans and Audits Capital Markets and Financing: What’s Happening! Using Risk Assessments to Develop Work Plans and Audits - continued Panel: Coping with the Down Economy 16 CPE credits WSCPA and AGA Members Non Members

$325 $400

More Conference S De tai l s c oming s o o n . . . www.wscpa.org/conferences 30

WashingtonCPA March/April 2011

A Note from the Conference Committee Don’t miss this year’s conference at a new location, the Courtyard Marriot in Tacoma. Live video conference sessions will be broadcast in Spokane and Everett, at an affordable cost to accommodate reduced training budgets. Our commitment is to deliver a professional development training program to governmental auditors and accountants. Sessions will cover some of the latest hot topics and updates specific to your government area. Conference presenters are recognized experts in the governmental industry, including: • David Bean, the GASB Director of Research and Technical Activities; • Mary Foelster, Director of the AICPA Government Audit Quality Cener; and • Dr. Arun Raha, the Chief Economist for the State of Washington. This conference also features valuable opportunities to network with peers and interact with these governmental experts. Continental breakfast, and lunch will be provided. Please visit www.wscpa.org/conferences for registration and more information.

Date

Conference

Location

June 2

Women’s Leadership Summit NEW!

Bellevue

June 3

Emerging Leaders Conference NEW!

Redmond

August 18

Farm Tax Conference

Kennewick

www.wscpa.org

conferences

Inter national Tax Conference

Business & Industr y Conference

May 4, 2011 | 8:00 a.m. - 4:15 p.m. Bell Harbor International Conference Center Seattle, WA

May 23, 2011 | 8:00 a.m. - 4:00 p.m. Meydenbauer Center, Bellevue, WA

• International Estate Planning Update • Outbound to Canada: Recent Developments • Corporate Inversions & Expatriations • Business Issues Facing U.S. Companies in China • Current Developments in IRS Offshore Compliance Efforts • International Transfer Pricing: What the Tax Practitioner Must Know and Should Be Doing • U.S. International Tax Developments

8 CPE credits (CLE credit pending) WSCPA & WSBA Members $225

Non Members $300

The 2011 Business & Industry Conference is the place to learn about issues and trends affecting businesses both large and small. General Sessions:

General Sessions:

As the scope of everyday business expands across our borders, you need to stay on top of international tax, accounting and business issues. The 2011 International Conference will provide valuable content for tax advisors, CPAs, attorneys, financial officers and other tax professionals.

• The Good, the Bad and the Ugly: The Hunt for Gold • Will U.S. GAAP Survive? IFRS Update • Creating Business and Departmental Plans That Work The Process from Concept to Daily Action Items • New Business Strategies in the Wake of Health Care Reform • Great Dissapointment or Sustained Recovery? A Regional Economic Update

8 CPE credits (includes 3 non-technical) WSCPA Members $225 Non Members $300

Presented in cooperation with the WSBA Tax Section.

Washington State Tax Conference

May 18, 2011 | 8:30 a.m. - 4:40 p.m. Bell Harbor International Conference Center, Seattle, WA

Changes to Washington State law affect your CPA practice, your clients and your employer. The Washington State Tax Conference, designed for CPAs and other finance professionals, will explore and examine the essential tax topics for 2011. General Sessions: • Department of Revenue tax Simplification Project • New Washington Tax Developments • Update on Abusive Tax Avoidance Transactions • Update on Digital Products Taxation • Economic Nexus and Washington Service • Impending Tax Controversies • Related Party Transactions 8 CPE credits WSCPA Members Non Members www.wscpa.org

$225 $300

Plus, select from these Concurrent Sessions! Use Tax Panel Multistate Tax Update Best Practices for Reporting Personal Property to the County and State Taxing Authorities State Income Tax Planning Ideas

Education and events

Fees Date

CPE Credits

Course

events by location # WSCPA education and events scheduled for March-May 2011 are listed below, chronologically by location. If you are looking for a program in another location, it may be scheduled for later in the year. Using the online CPE/Event Catalog at www.wscpa.org/CPE/ catalog, you can search by location.

Code For more details, search by code at www.wscpa.org/cpe

Type

WSCPA NonAICPA Member Member Member Fee Fee Discount A&A

SUBJECTS The main subject area is listed for each program.

LEARN MORE To view complete course details, please visit the CPE/ Event Catalog at www.wscpa.org/CPE/catalog.

EB PFP Ethics GNP MG PD SK TAX

Need help finding a seminar or webcast? Call (800) 272-8273 or (425) 644-4800.

TEC

Facility

Accounting and Auditing Consulting Services Employee Benefits Estate/Financial Planning Ethics Government / NFP Management Personal Development Specialized Knowledge Taxation Technology

Fees Date

CPE Credits

Course

WSCPA NonAICPA Code Member Member Member For more details, Fee Fee Discount search by code at www.wscpa.org/cpe

Facility

Type

Subject

Bellevue Mar 1

Cash Flow Planning & Management Using Excel, 8 am-4 pm

COMEX14

230

305

WSCPA

Tech

Mar 2

Working Trial Balance with Excel, 8-11:30 am

COMEX41

130

165

WSCPA

Tech

Mar 2

Ratio Analysis with Excel, 12:30-4 pm

COMEX42

130

165

WSCPA

Tech

Mar 3

PC Trouble Shooting & Maintenance, 8 am-4 pm

COMPC2

230

305

WSCPA

Tech

Mar 7

Integrating Microsoft Office Applications, 8 am-4 pm

COMMO

230

305

WSCPA

Tech

Mar 8

Access Working Trial Balance, 8 am-4 pm

COMAC3

230

305

WSCPA

Tech

Mar 9

Excel for Windows Advanced, 8 am-4 pm

COMEX17

230

305

WSCPA

Tech

Mar 16

Excel - Based Dashboards, 8 am-4 pm

EBD2

265

340

WSCPA

Tech

Mar 17

Internal Controls for Small Business Accounting Systems, 8 am-4 pm

ITCB2

265

340

WSCPA

A&A

Mar 22

Controllership: Leading Edge of Corporate Performance, 8 am-4 pm

CLECP2

265

340

-30

WSCPA

Mar 23

Analyzing Costs, Productivity and Efficiency: Three Ways to Boost Your Bottom Line, 12:30-4 pm

CL4PYPL

140

170

WSCPA

Mar 23

Beyond Financial Accounting: Budgeting and Costing Techniques for Maximum Profitability, 8-11:30 am

CL4BLMA

140

170

WSCPA

Mar 23

Revenue Recognition: Getting it Right, 12:30-4 pm

CL4RTBC

140

170

WSCPA

A&A

Mar 23

New FASB Developments for Business & Industry, 8-11:30 am

CL4FASBI

140

170

WSCPA

A&A

Mar 24

CPA’s Guide to Improving Communication, Listening and Writing Skills, 12:30-4 pm

CL4TLWP

140

170

WSCPA

Mar 24

Decision-Making Tips, Tools and Techniques for Today’s Financial Environment, 8-11:30 am

CL4TTMD

140

170

WSCPA

Mar 24

Cash Flow Statements: Preparation and Presentation Options, 12:30-4 pm

CL4FCFS

140

170

WSCPA

A&A

ç Mar 24

Introduction to IFRS: Grasping the Big Picture, 8-11:30 am

CL4IUSA

140

170

WSCPA

A&A

Mar 28

Excel Pivot Tables, 8 am-4 pm

COMEX18

230

305

WSCPA

Tech

Mar 29

Creating Web Pages with HTML, 8 am-4 pm

COMHT2

230

305

WSCPA

Tech

Apr 4

Importing Data into QuickBooks, 8 am-4 pm

COMQB4

230

305

WSCPA

Tech

Apr 5

Introduction to OLAP (On Line Analytical Processing) Cubes, 8 am-4 pm

COMOL

230

305

WSCPA

Tech

Apr 6

Excel Intermediate, 8 am-4 pm

COMEX19

230

305

WSCPA

Tech

Apr 11

Introduction to Visio, 8 am-4 pm

COMVI2

230

305

WSCPA

Tech

Apr 12

XML: Introduction, 8 am-4 pm

COMXM

230

305

WSCPA

Tech

Apr 13

Excel Visual Basic Macros, 8 am-4 pm

COMEX20

230

305

WSCPA

Tech

Apr 18

Introduction to Access, 8 am-4 pm

COMAC4

230

305

WSCPA

Tech

Apr 19

Introduction to QuickBooks for the Accounting Professional, 8 am-4 pm

COMQB5

230

305

WSCPA

Tech

WashingtonCPA March/April 2011

Networking Event | S Season Ticket and Coupons N/A

www.wscpa.org

Education and events Fees

Date

CPE Credits

Type

Apr 19

Apr 21

Course

Code For more details, search by code at www.wscpa.org/cpe

Happy Hour Networking Event, 5-7:30 pm

HH08

The Coming IFRS Conversion: Preparing for the Ultimate GAAP Makeover, 8 am-4 pm

IFRSC2

WSCPA NonAICPA Member Member Member Fee Fee Discount

Facility

Subject

McCormick & Schmick’s Seafood

265

340

WSCPA

A&A

Social Marketing, 7:15-9 am

CHBA09

Maggiano’s at Lincoln Sq.

ç Apr 22

Build Success as a Professional Manager: Skills for Corporate Financial Executives, 8 am-4 pm

BSPM

265

340

WSCPA

Apr 25

Introduction to XBRL, 8 am-4 pm

COMXB

230

305

WSCPA

Tech

Apr 26

More QuickBooks for the Accounting Professional, 8 am-4 pm

COMQB6

230

305

WSCPA

Tech

May 2

Introduction to Microsoft PowerPoint, 8 am-4 pm

COMPP5

230

305

WSCPA

Tech

May 3

Charting with Excel, 8 am-4 pm

COMEX21

230

305

WSCPA

Tech

May 4

PC Trouble Shooting & Maintenance, 8 am-4 pm

COMPC3

230

305

WSCPA

Tech

May 9

Introduction to Visio, 8 am-4 pm

COMVI3

230

305

WSCPA

Tech

May 10

Using Outlook as a Personal Information Manager, 8 am-4 pm

COMOU3

230

305

WSCPA

Tech

May 11

Word Tips Tricks & Techniques, 8 am-4 pm

COMWO4

230

305

WSCPA

Tech

May 16

Introduction to SQL, 8 am-4 pm

COMSQ3

230

305

WSCPA

Tech

May 17

Crystal Reports Introduction, 8 am-4 pm

COMCR5

230

305

WSCPA

Tech

May 17

FASB Review and Update: Common GAAP Issues Impacting All CPAs, 8 am-4 pm

FRU

265

340

-30

WSCPA

A&A

May 18

Cash Flow Statement: Preparation, Presentation and Use, 8 am-4 pm

FCFS2

265

340

-30

WSCPA

A&A

May 18

Kickoff Reception - New Professionals Networking Event, 6-8:30 pm

NP10

Daniel’s Broiler

New Washington Tax Developments, 7:15-9 am

CHBA10

Maggiano’s at Lincoln Sq.

Tax

Excel Pivot Tables, 8 am-4 pm

COMEX22

230

305

WSCPA

Tech

Business & Industry Conference, 8 am-4 pm

BIC

225

300

Meydenbauer Center

Apr 21

1.5 S l

May 19

1.5 S l

May 23

May 24

Crystal Reports Intermediate, 8 am-4 pm

COMCR6

230

305

WSCPA

Tech

May 24

Compilation and Review Standards Update and Review by Walter Haig, 8 am-4 pm

CRUR9

295

370

WSCPA

A&A

May 25

GAAP Update and Review for Small and Medium-Sized Entities (SMEs) by Walter Haig, 8 am-4 pm

GURSME8

295

370

WSCPA

A&A

May 25

AICPA Business Solutions Workshop: Delivering on Your Trusted Business Advisor Status, 8:30 am-5 pm

TAW

299

399

WSCPA

May 26

Auditing Standards Update and Review by Walter Haig, 8 am-4 pm

AUUR3

295

370

WSCPA

A&A

Governmental Accounting & Auditing Conference, 8 am-4 pm

GAAC3

225

300

University Center Everett Comm. College

GNP

Business Succession Planning, 7:30-9:30 am

CHPS06

Marie Callenders

Tax

Everett Apr 18-19

Federal Way Mar 23

Kent Mar 17

An Overview of the Regional Economy - View from the Recent Past and into the Future, 8-9 am

CHSK12

Golden Steer Restaurant

Apr 21

All That is New with State Taxation Issues, 8-9 am

CHSK09

Golden Steer Restaurant

Tax

Mar 22

International Tax - Taxation of US Persons with Foreign Activities, 7-9 am

CHSV03

Marriott Courtyard Totem Lake

Tax

Apr 26

Fraud Risk - The CPA’s Responsibility in Educating Clients, 7-9 am

CHSV04

Marriott Courtyard Totem Lake

May 17

Rock Star Social Media, 7-9 am

CHSV09

Marriott Courtyard Totem Lake

DATE CHANGE: Economic Outlook for Washington State, 12 -1 pm

CHOM03

Indian Summer Golf

Tech

Accounting and Auditing Update, 8 am-4 pm

AAAU3

265

340

Indian Summer Golf

A&A

Kirkland

Olympia Apr 6

Apr 25

www.wscpa.org

Networking Event | S Season Ticket and Coupons N/A

WashingtonCPA March/April 2011

Education and events

Fees Date

Course

CPE Credits

Code For more details, search by code at www.wscpa.org/cpe

Type

WSCPA NonAICPA Member Member Member Fee Fee Discount

Facility

Subject

Port Hadlock May 12-13 8

Accounting and Reporting Standards Annual Update and Review by Walter Haig, 8 am-4 pm

ARSUR4

Happy Hour Networking Event, 5-7:30 pm

HH07

Ignite the Self-Starter in YOU! 7:30-9:30 am

CHSE07

485

600

Inn at Port Hadlock

A&A

The Blarney Stone Pub

Women’s U. Club of Seattle

Seattle Mar 8

Mar 15

6S l

May 4

International Tax Conference, 8 am-4:15 pm

INTC

225

300

Bell Harbor Conf Ctr

May 18

Washington State Tax Conference, 8:30 am-4:40 pm

WSTC

225

300

Bell Harbor Conf Ctr

Tax

Mar 8

Happy Hour Networking Event, 5:30-7:30 pm

NP14

C I Shenanigans

Apr 12

Happy Hour Networking Event, 5:30-7:30 pm

NP15

C I Shenanigans

Apr 13

Update on IFRS in US and Other IFRS Related Topics, 12-1:15 pm

CHSP23

The Spokane Club

A&A

Apr 18-19

Governmental Accounting & Auditing Conference, 8 am-4 pm

GAAC2

225

300

Educational Service District #101

GNP

Apr 21

Don’t Be A Victim: Fighting Fraud with Knowledge, 7:30-9:30 am

CHSP17

Gonzaga Univ. COG

Apr 21

Spokane Chapter Spring Series Registering for All 6 Programs, 7:30-9:30 am

CHSP22

200

Gonzaga Univ. COG

Apr 28

New Washington Tax Developments, 7:30-9:30 am

CHSP18

Gonzaga Univ. COG

Tax

Apr 28

Trivia Night - Networking Event, 6-8:30 pm

NP11

Steam Plant Grill

May 5

Understanding Retirement Plan Fees and Expenses, 7:30-9:30 am

CHSP19

Gonzaga Univ. COG

PFP

May 11

Manners Mean Business, 12-2 pm

CHSP24

The Spokane Club

Spokane

May 12

Common Scams and Social Influence Tactics, 7:30-9:30 am

CHSP20

Gonzaga Univ. COG

May 19

Ethics in the Real World (Not WA State Ethics Compliant), 7:30-9:30 am

CHSP16

Gonzaga Univ. COG

265

340

Hampton Inn Spokane

Tax

Gonzaga Univ. COG

A&A

325

400

Courtyard Marriott

GNP

Howard Johnson Plaza

May 25

The Best Estate and Financial Planning Topics of 2011, 8 am-4 pm

BEST

May 26

General A&A and Tax Update, 7:30-9:30 am

CHSP21

Governmental Accounting & Auditing Conference, 8 am-4 pm

GAAC

State Legislative Update, 7:30-9:30 am

CHYK08

Tacoma Apr 18-19 Yakima Mar 22

Self-study subscriptions

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WashingtonCPA March/April 2011

Networking Event | S Season Ticket and Coupons N/A

www.wscpa.org

Education and events Fees

Date

CPE Credits

Course

Code For more details, search by code at www.wscpa.org/cpe

Type

WSCPA NonAICPA Member Member Member Fee Fee Discount

Facility

Subject

Webcasts & Webinars Mar 1

WEBINAR: Adobe Acrobat for Accountants I - Basic Features & Functions, 8-10 am

WNR184

Webinar

Tech

Mar 1

WEBINAR: Adobe Acrobat for Accountants II - Advanced Features & Functions, 11 am-1 pm

WNR185

Webinar

Tech

Mar 2

WEBINAR: Adobe Acrobat for Accountants III - Tips & Techniques for the Experienced User, 8-10 am

WNR186

Webinar

Tech

Mar 2

WEBINAR: Adobe Acrobat Forms, 11 am-1 pm

WNR187

Webinar

Tech

Mar 3

WEBCAST: Enterprise Risk Management for SMEs - Small to Medium Enterprises: Risk Plays No Favorites, 7-11 am

WEB167

129

159

Webcast

Mar 3

WEBINAR: Outlook Part 1 - E-mail Management Tips & Techniques (Basic), 8-10 am

WNR188

Webinar

Tech

Mar 3

WEBINAR: Outlook Part 2 - E-mail Management Tips & Techniques (Advanced), 11 am-1 pm

WNR189

Webinar

Tech

Mar 4

WEBINAR: Auditing & Fraud Technology Tools, 11 am-1 pm

WNR190

Webinar

A&A

Mar 4

WEBINAR: Outlook Part 3 - Calendar & Contact Management Tips & Techniques, 8-10 am

WNR191

Webinar

Tech

Mar 7

WEBCAST: Best Practices for Industry - Understanding Your Liability And How to Secure and Protect Corporate Information, 7 am-3 pm

WEB168

195

225

Webcast

ç Mar 8

255

295

Webcast

A&A

WEBCAST: The Accountant’s Responsibility for Fraud, 8:30 am-4:30 pm

WEB89

Mar 15

WEBINAR: Key Tax Issues Facing Members In Industry, 11 am-1 pm

WNR194

Webinar

Tax

Mar 16

WEBINAR: PowerPoint Level 1 - Creating Professional Presentations, 8-10 am

WNR195

Webinar

Tech

Mar 16

WEBINAR: PowerPoint Level 2 - Advanced Presentation Design, 11 am-1 pm

WNR196

Webinar

Tech

Mar 17

WEBCAST: Change Management: Making Improvement Happen, 9 -11 am

WEB169

109

Webcast

ç Mar 17

WEBCAST: Cash and Credit Management, 8:30 am-4:30 pm

WEB90

255

295

Webcast

A&A

Mar 18

WEBINAR: Evaluating and Selecting A Document Management System, 8-10 am

WNR197

Webinar

Tech

Mar 18

WEBINAR: XBRL Level 1 - The Next Evolution in Financial Reporting, 11 am-1 pm

WNR198

Webinar

Tech

Mar 21

WEBINAR: Excel - Tips, Tricks & Techniques - Beginner, 8-10 am

WNR199

Webinar

Tech

Mar 21

WEBINAR: Excel - Tips, Tricks & Techniques - Advanced, 11 am-1 pm

WNR200

Webinar

Tech

Mar 22

WEBINAR: Excel - Formulas and Functions, 8-10 am

WNR201

Webinar

Tech

Mar 22

WEBINAR: Excel - The Power of Pivot Tables, 11 am-1 pm

WNR202

Webinar

Tech

Mar 23

WEBINAR: Excel - Auditing Your Spreadsheets to Ensure Data Integrity, 8-10 am

WNR203

Webinar

Tech

Mar 23

WEBINAR: Microsoft Office 2007/2010 - What’s New?, 11 am-1 pm

WNR204

Webinar

Tech

Mar 24

WEBINAR: Client Portals - How to Develop A Strategic Model, 11 am-1 pm

WNR205

Webinar

Tech

Mar 24

WEBINAR: Windows 7 - Tips & Techniques, 8-10 am

WNR206

Webinar

Tech

Mar 25

WEBINAR: Word - Advanced Tips, Tricks & Techniques, 8-10 am

WNR207

Webinar

Tech

ç Mar 28

WEBCAST: Five Clients in Five Days, 8-10 am

WEB227

109

Webcast

ç Mar 28

WEBCAST: Make Meetings Matter, 10 am-12 pm

WEB232

109

Webcast

Mar 29

WEBCAST: Governance - Enhancing Risk Management: Setting The Right Balance Innovation and Controls, 11 am-1 pm

WEB171

109

Webcast

ç Mar 29

WEBCAST: Accounts Receiveable Management, 8-11 am

WEB215

129

Webcast

ç Mar 29

WEBCAST: Getting Stuff Done When You Don’t Own the Company, 12-3 pm

WEB222

129

Webcast

Mar 30

WEBCAST: Budgeting Wars Prevention! How to Ensure Accountability In Your Budget Process, 11 am-1 pm

WEB170

109

Webcast

Mar 30

WEBCAST: High Road Corporate Governance from the Inside - Out: The CFO Controller’s Tool Kit, 11 am-2 pm

WEB172

129

Webcast

ç Mar 30

WEBCAST: High Road Leadership Strategies for Eliminating Silos, Bureaucracy, or Turf Wars from Your Culture, 2-4 pm

WEB173

109

Webcast

ç Mar 30

WEBCAST: High Road Approach to Difficult Conversations: How to Face and Grow from Them, 8-10 am

WEB174

109

Webcast

Mar 30

WEBINAR: Outlook Part 1 - E-mail Management Tips & Techniques (Basic), 11 am-1 pm

WNR209

Webinar

Tech

Mar 31

WEBINAR: Outlook Part 2 - E-mail Management Tips & Techniques (Advanced), 11 am-1 pm

WNR210

Webinar

Tech

www.wscpa.org

Networking Event | S Season Ticket and Coupons N/A

WashingtonCPA March/April 2011

Education and events

Fees Date

CPE Credits

Course

Code For more details, search by code at www.wscpa.org/cpe

WSCPA NonAICPA Member Member Member Fee Fee Discount

Facility

Subject

Type

Apr 4

WEBINAR: How to Go Paperless, 8-10 am

WNR211

Webinar

Tech

Apr 4

WEBINAR: Microsoft Office 2007/2010 - What’s New?, 11 am-1 pm

WNR212

Webinar

Tech

Apr 5

WEBINAR: Cloud Computing, 8-10 am

WNR213

Webinar

Tech

Apr 5

WEBINAR: Document Management Systems Software Review, 11 am-1 pm

WNR214

Webinar

Tech

Apr 6

WEBINAR: Excel - Tips, Tricks & Techniques - Beginner, 8-10 am

WNR216

Webinar

Tech

Apr 6

WEBINAR: Excel - Auditing Your Spreadsheets to Ensure Data Integrity, 11am-1 pm

WNR215

Webinar

Tech

ç Apr 7

WEBCAST: Myths of Budgeting and How to Overcome Them, 11 am-3 pm

WEB175

129

159

Webcast

Apr 7

WEBINAR: Excel - Formulas and Functions, 8-10 am

WNR217

Webinar

Tech

Apr 7

WEBINAR: Excel - The Power of Pivot Tables, 11 am-1 pm

WNR218

Webinar

Tech

Apr 8

WEBINAR: Excel - Tips, Tricks & Techniques - Advanced, 8-10 am

WNR219

Webinar

Tech

Apr 18

WEBINAR: Adobe Acrobat for Accountants I - Basic Features & Functions, 8-10am

WNR220

Webinar

Tech

Apr 18

WEBINAR: Adobe Acrobat for Accountants II - Advanced Features & Functions, 11 am-1 pm

WNR221

Webinar

Tech

Apr 19

WEBINAR: Adobe Acrobat for Accountants III - Tips & Techniques for the Experienced User, 8-10 am

WNR222

Webinar

Tech

Apr 19

WEBINAR: Auditing & Fraud Technology Tools, 11 am-1 pm

WNR223

Webinar

A&A

ç Apr 20

WEBCAST: CPE in Ethics: A Requirement in Washington State, 8-11:30 am

WEB235

149

179

Webcast

Ethics

Apr 21

WEBINAR: PowerPoint Level 1 - Creating Professional Presentations, 8-10 am

WNR224

Webinar

Tech

Apr 21

WEBINAR: PowerPoint Level 2 - Advanced Presentation Design, 11 am-1 pm

WNR225

Webinar

Tech

ç Apr 26

WEBCAST: Accounts Receiveable Management, 8-11 am

WEB216

129

Webcast

ç Apr 26

WEBCAST: Getting Stuff Done When You Don’t Own the Company, 12-3 pm

WEB223

129

Webcast

Apr 26

WEBINAR: Key Tax Issues Facing Members In Industry, 11 am-1 pm

WNR226

Webinar

Tax

ç Apr 29

WEBCAST: Five Clients in Five Days, 8-10 am

WEB228

109

Webcast

ç Apr 29

WEBCAST: Make Meetings Matter, 10 am-12 pm

WEB233

109

Webcast

ç May 10

WEBCAST: Budgeting Wars Prevention! How to Ensure Accountability In Your Budget Process, 11 am-1 pm

WEB176

109

Webcast

ç May 10

WEBCAST: Governance - Enhancing Risk Management: Setting The Right Balance Innovation and Controls, 2-4 pm

WEB177

109

Webcast

ç May 11

WEBCAST: High Road Corporate Governance from the Inside - Out: The CFO Controller’s Tool Kit - Part 1, 1-4 pm

WEB178

129

Webcast

ç May 11

WEBCAST: High Road Leadership Strategies for Eliminating Silos, Bureaucracy, or Turf Wars from Your Culture, 8-10 am

WEB179

109

Webcast

ç May 11

WEBCAST: High Road Approach to Difficult Conversations: How to Face and Grow from Them, 11 am-1 pm

WEB180

109

Webcast

ç May 20

WEBCAST: Myths of Budgeting and How to Overcome Them, 8 am-12 pm

WEB181

129

159

Webcast

ç May 20

WEBCAST: Five Clients in Five Days, 8-10 am

WEB229

109

Webcast

ç May 20

WEBCAST: Make Meetings Matter, 10 am-12 pm

WEB234

109

Webcast

ç May 31

WEBCAST: Accounts Receiveable Management, 8-11 am

WEB217

129

Webcast

ç May 31

WEBCAST: Getting Stuff Done When You Don’t Own the Company, 12-3 pm

WEB224

129

Webcast

Jun 1

WEBCAST: WSCPA Annual Meeting with Professional Issues Update MEMBERS ONLY, 7:30-9:30 am

WAM

Webcast

Need help finding a seminar, conference or webcast? Call the WSCPA at (800) 272-8273 or (425) 644-4800. To view the complete schedule of events, go to www.wscpa.org/CPE/catalog. The same high quality materials and speakers featured in many WSCPA conferences and seminars are available for CPE events for your firm. To learn more, call (800) 272-8273 or (425) 644-4800 or e-mail ct@wscpa.org.

WashingtonCPA March/April 2011

Networking Event | S Season Ticket and Coupons N/A

www.wscpa.org

Registration

Questions? E-mail cpe@wscpa.org or call (425) 644-4800 or (800) 272-8273 (toll-free in Washington).

Code

Title

Date

City

Fee1

WSCPA CPE policies apply to all programs in the CPE Digest. Review the CPE policies at www.wscpa.org. www.wscpa.org

WashingtonCPA March/April 2011

classified ads

Detailed advertising information is available online at www. wscpa.org. Classified Ads are $40 for 40 words or less and $1 for each additional word.Active E-mail and web site addresses count as two words and are $10 additional each. Positions available ads are for magazine placement only. Contact Sharon Olene-Marander at (425) 586-1138, (800) 272-8273, Ext. 1138, or classifieds@wscpa.org for more information. All ads must be pre-paid. See these and any new listings on our website under Newsroom.

POSITIONS AVAILABLE Established Bellingham CPA firm is seeking experienced auditor to join our team of professionals. 5+ years of audit experience required. Collaborative working environment, excellent advancement opportunities and salary and benefits package. Submit resume and cover letter to Varner Sytsma & Herndon, CPA’s, 2200 Rimland Drive, Suite 205, Bellingham, WA 98226,Attn: H/R Position:Senior manager/Partner. Dynamic,growing CPA firm is adding to staff with potential for ownership. Seeking an experienced CPA with business consulting skills and an emphasis on accounting. Must show demonstrated talent working with small to mid-sized businesses. Should be able to assist with strategic thinking and planning using key metrics of clients.Will also participate in driving strategic direction of firm.This is an opportunity for the CPA who is entrepreneurial and eager to make his/her mark.Visit www.mariscpa.com. Submit resume and cover letter to Maris & Associates CPA’s, 10512 19th Ave SE #101, Everett,WA 98208,Attn: Charlotte. Established Bellingham CPA firm is seeking experienced CPA to join our team of professionals. 3+ years of tax experience required. Collaborative working environment, excellent advancement opportunities and salary and benefits package. Submit resume and cover letter toVarner Sytsma & Herndon, CPA’s, 2200 Rimland Drive, Suite 205, Bellingham,WA 98226, Attn: H/R

OFFICE SPACE Several single office spaces tailored for sole-practitioners available at Creekside Office Park in Bellevue. Minutes away from SR-520, I-90, and I-405. Directly across from 24 Hour Fitness. Recently remodeled. Free parking! Many restaurants within walking distance. Call 425-296-2808, or email admin@ okahllc.com.

MERGERS & SALES Everett Firm Looking for CPA firm and/or Registered Investment Advisory Company to purchase. We are the second largest CPA firm in downtown Everett, manage $135m and are looking to purchase another firm. Our client base is as broad as the services we offer, as we cater to individuals and small business. Please contact the owner, Brian Evans at 425-252-6909 or email to brian@bauerevans.com. You can review our websites at www.bauerevans.com and www. bondstreetwealth.com. CPA looking for $150,000-$250,000 size practice to purchase in the Bellingham area. Cash purchase. Please respond to Tom by phone, (707) 545-0701 or email,TJTCPA@aol.com. Considering Selling Your Practice? Consider all your options.We do the work. Confidential.We have buyers actively seeking practices. Call Mark Hause at 877-345-7722 or visit our website at www.accountingpracticesales.com.Accounting Practice Sales.We make dreams happen! IBA Sells Privately Held Companies. Do you represent a client who is ready to retire or has taken a company as far as they want to or can? IBA is the Pacific Northwest’s oldest business brokerage (M&A) firm. We are professional negotiators with over 4000 completed transactions. Please contact us if we can be of assistance at (800) 218-4422 or www.ibainc.com.

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WashingtonCPA March/April 2011

PRACTICES FOR SALE Contact Mark Hause atAccounting Practice Sales by e-mail at MARKHAUSE@CONTACTAPS.COM or call 877-3457722 for more information on the following practices: Anacortes CPA Firm for Sale: This CPA firm is a traditional CPA firm with income tax, write-up, along with financial services to round out the practice.The firm revenue mix breaks out 76% tax, 18% write-up, and 6% financial services.The buyer will have the opportunity to retain the current office location indefinitely as the Seller owns the building.With a loyal client base and good fees, this firm offers opportunity to a firm looking to expand or a CPA wanting to be on their own. Bellevue CPA Firm for Sale: This CPA located in Bellevue wants to sell a highly profitable practice. The firm revenue mix is heavily concentrated in the area of tax preparation with over 92% of all fees coming from the rendering of tax services. The future of this firm is further enhanced by a significant number of clients having a high net worth with the need for additional services in a variety of areas. The ideal buyer will be one who has the experience of working with high net worth individuals who can take advantage of the solid fees and loyal practice base.

SOLD

Bellingham CPA Firm for Sale: This CPA firm is a tax and write-up practice that focuses on small business. As a result, the firm predominantly renders tax and write-up services for a loyal group of clients who are accustomed to paying market rate fees along with being a strong referral source. The revenue dollars grossed by the firm break out 65% income tax and 33% write-up services and 2% for a small amount of compilation and review services. The client work load is continuous through the year with the normal increase in tax filing periods providing for a balanced workload and revenue stream. This practice has an excellent staff which further enhances the opportunity this firm provides for an accountant or firm looking for a quality practice to make their own. Blaine CPA Tax Firm for Sale: This CPA firm located close to the Canadian border is primed for a new owner and has wonderful potential.The firm is the only CPA firm in town and receives referrals from all types of professionals including banks and real estate agents.The practice revenues are predominantly from tax services with that segment of the business generating approx. 86% of total revenues for the firm. The balance is split almost equally between write-up and consulting. With opportunities for cross border tax and consulting services along with traditional income tax services, this firm is a solid opportunity for any accountant who wants to own their own firm or a firm looking to expand or open a branch office. North Seattle CPA Firm for Sale: This CPA firm located in North Seattle has been in the business of providing top drawer professional services for over 30 years. The firm is a full service practice offering all traditional accounting services including attestation. The revenue mix breaks out 73% income tax,10% write-up,14% auditing,3% reviews and compilations with excellent per return and/or engagement fees. The practice has a significant number of business returns that will require a good business minded accountant that is comfortable with rendering advice and counsel on a variety of business related matters. The firm has great staff, established methods and procedures which make this a turn key practice. All of these qualities combine to make this firm a must see for any accountant or firm looking for an acquisition.

Spokane CPA Firm for Sale: The owner of this accounting practice with an emphasis on tax preparation is ready to retire. The firm revenue mix is 87% tax preparation with the balance being write-up and representation before taxing authorities. The clients of the firm are loyal due to receiving hands on personalized service from the owner. The firm is further enhanced by having a high visibility office location on a heavily traveled thorough fare. All of these qualities add up to create a firm that is an excellent prospect for acquisition whether for an individual who has aspirations of owning a practice or a firm wanting to expand their customer base. Spokane CPA Firm for Sale: This long time firm is for sale. The firm has a diverse client base that includes all professional services including auditing. The practice revenue dollars consist of 37% accounting, 9% consulting and computer services, and 49% income tax services. The highlight of this firm’s accounting segment of the practice is a quality attestation practice that includes compilations, reviews and auditing. The tax practice contains the type of work that quality firms seek with per hour realization rates that are equal to or above prevailing market rates. The consulting and computer services segment provides invaluable assistance to clients in dealing with various accounting software issues. With an excellent and mature staff providing a deep bench, this practice offers the chance to acquire a quality practice for a variety of firms seeking to acquire a balanced book of business.

Volunteer Positions The following organizations need a CPA to serve on the board of directors or provide other guidance on financial matters. Learn more at www.wscpa.org (enter volunteer positions in the search box). Arc of King County Center for Transgender Health and Wellness - New Community Day School Association Families for Effective Autism Treatment - New GroundBreakers Northeast Washington Education Council - New One Day’s Wages Pacific Northwest Diabetes Research Institute Pacific Sports Arena - New Seattle Public School Board - New Seattle Tilth Sequalitchew Creek Watershed Council - New Washington Wilderness Coalition - New

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8 CPE credits