Airconditioning, Refrigeration and Mechanical Contractors Association of Southern California, Inc. 3602 Inland Empire Boulevard, Suite B-206, Ontario, CA 91764

(909) 477-4515 Telephone (909) 477-4516 Fax contact@arcamca.org

ALERT

Third Quarter 2013

Peter Buongiorno, President Barr Engineering

David Miles, Vice-President Weatherite Corporation

Greg O’Neill, Treasurer Air Conditioning Solutions, Inc.

Robert Lake, Past-President EMCOR Service

Mesa Energy Systems, Inc.

Richard J. Sawhill Executive V.P. ARCA/MCA Southern California

Robert Carder, Board Member Air-Ex Air Conditioning, Inc.

Mike Gallagher, Board Member Western Allied Corporation

Scott Limbacher, Board Member Stater Bros.

Sean Patrick, Board Member Hill Phoenix

James Reynolds, Board Member

South Coast Mechanical, Inc.

Mike Tobin, Board Member Western Mechanical, Inc.

Rose Bayus, Office Manager

Debbie Sawhill, Special Projects

Board of Directors

Office Staff

Don’t Fret the Dreaded IRS Tax Audit Notice

By: Michael Kaplan, CPA

Most taxpayers manage to make it through tax season relatively unscathed, but others are not so lucky. There is nothing more that puts fear and panic in people’s minds than receiving that dreaded tax audit notice. Here we will look at ways to reduce the worry and stress of going through an IRS audit. If you are one of the unlucky few who are chosen by the IRS to be audited, you will need to be prepared. Your fir st step should be to notify your tax professional, whether it is your CPA or attorney, that you received the audit notice. In most cases, your tax professional will then assist you in preparing for the audit and will handle the correspondence with the auditor. I never recommend that a taxpayer call the IRS themselves nor attend the audit. They can unwittingly reveal information that is not required and potentially cause more problems. A tax professional licensed to practice before the IRS can deal with the IRS and attend the audit for you. To reduce the worries and stress that come from an audit, you should maintain accurate records. While the IRS allows taxpayers numerous opportunities to save on taxes, it is ultimately your responsibility to keep accurate records to prove your deductions in the event of an audit. Take a detailed look at your tax return and refresh your memory as to the income and deductions reported on it. This will assist you in getting a thorough understanding of the items questioned by the IRS. Get in the habit of keeping good tax records throughout the year and using a personal filing system to keep them with the appropriate tax return. Make sure you maintain at least five years of tax returns and supporting records. Keep your checkbook stubs and bank statements, retain and categorize your receipts, track cost basis of property and taxable investments and journal your deductible items as they occur. It alleviates so much of the stress when you are prepared and know where your supporting documents are when you need them.

Continued on page 6

Second Quarter 2008 ARCA/MCA Southern California ALERT Page 3

Pete Buongiorno, president Pete Buongiorno, president

Third Quarter 2013 ARCA/MCA Southern California ALERT Page 2

There are several important industry meetings scheduled within the next few months.

First and foremost is the annual ARCA/MCA Southern California membership meeting. This meeting will be held on Thursday, October 10, 2013. Watch your email for your invitation. Your Association has arranged to have two guest speakers from Horizon Actuarial Services address the Patient Protection and Affordable Care Act (also known as the national health care law, or Obamacare). There are many requirements imposed by this law on employers; responsibilities that are not taken care of by the benefit trust funds.

Union signatory employers must keep in mind that they also employ people who may be covered by separate health care plans. Following the presentation there will be a question and answer period to provide you with the information you need to know. You may also bring your human resource and accounting/payroll representatives to the meeting.

On November 1st, the HVACR Training Summit will be held in Los Angeles. Please read the article about the Summit on page 3 of this newsletter.

On November 6th, another impor tant industry meeting you should attend, is the joint UA District Council 16 and ARCA/MCA Southern California industry meeting addressing market share, competitiveness and opportunities in the field of energy. Speakers will include UA International Special Representative Donnie Braun, Mel Johnson from Southern California Edison and Simon Baker of the California Public Utility Commission. Be sure to watch your email for your invitation

Please reserve these dates on your calendar. Your attendance and participation are important!

Pre

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This plaque recognizes Jim’s significant impact of 58 plus years in the Air Conditioning and Refrigeration Industry, he has touched many lives and we have all benefited from his dedication.

You are a Big part of our Training Program and we want to thank you for always doing whatever it takes to get the job done, this is truly a rare gift.

We love you Jim and we will miss you. Please understand you will always hold a special place in our hearts.

Sincerely, the Training Center Gang

James (Jim) Bagley

Kip Bagley, Jim Bagley and Rick Hatlen

Fourth Quarter 2011 ARCA/MCA Southern California ALERT Page 3 Fourth Quarter 2012 ARCA/MCA Southern California ALERT Page 3 First Quarter 2013 ARCA/MCA Southern California ALERT Page 3 Third Quarter 2013 ARCA/MCA Southern California ALERT Page 3

HVACR TRAINING SUMMIT Tom Morton, HVACR Representative

Piping Industry Progress & Education Trust Fund 501 Shatto Place - Suite 200

Los Angeles, CA 90020 800-457-7473 or 213-382-5255

ARCA/MCA Southern California Contractors I would like to invite you to our annual HVACR Training Summit meeting. The HVACR Training Summit committee was developed by ARCA/MCA Southern California Contractors, Piping Industry Progress & Education Trust Fund, and Local Unions to create a path for students of junior colleges and technical training centers into our apprenticeship program. This committee meet’s annual to discuss the needs of the educators and contractors of the HVACR industry. This committee will consist of educators, contractors, and union representatives. Presentations will be given by various manufacturers and vendor representatives. We look forward to hearing your ideas and input. Below you find the date, time, and location of our meeting. Please RSVP to Carolyn Mansoorian, via email carolyn@pipe.org or 1-213-382-5255 X234. Date: Friday, November 1st, 2013 Time: 8:00 AM-1:00 PM Location: Joint Journeyman & Apprentice Training Center 2220 South Hill Street Los Angeles, CA 90007

Tom Morton HVACR Representative 213-382-2501 - Fax tom@pipe.org Refreshments will be provided

Fourth Quarter 2011 ARCA/MCA Southern California ALERT Page 4 Fourth Quarter 2012 ARCA/MCA Southern California ALERT Page 4 First Quarter 2013 ARCA/MCA Southern California ALERT Page 4 Third Quarter 2013 ARCA/MCA Southern California ALERT Page 4

UA Local 250 STAR Review

Wm. Gary Lumsden, Service Manager

Weatherite Corporation

On Saturdays June 1 and June 8, 2013 a UA STAR review was offered by the Local 250 Training Center. The two review classes were held from 8 a.m. until 12:30 p.m. and were taught by Gary Lumsden and Chuck Pelkey. After the morning review session on June 8, the participants had lunch, followed by the UA Star exam. There was good participation from those in attendance who represented a number of ARCA/MCA Southern California and Local 250 signatory companies. Of the twenty-one attendees, thirteen passed, beating the National passing average of by 2%. After the testing on June 8, a number of par ticipants repor ted that the review session was very helpful and felt they had performed well on the test. Some individuals prefer the live or brick and mortar class time, as comments and questions from one may assist another. In the past the program review was completed in one day, but the program was revised, spreading out the discussions over a two week period to help solidify the information, as a review can be offered the following week to clarify any questions asked.

Like any class, the review is only par t of the process and between classes those in

attendance must take the time to study before the second class. The UA STAR test

allows a company to expand its offering in the bidding process, which is always a help

in these difficult economic times.

The Training Center intends to offer this review again to help those who find the

live study review more productive. Please make sure to encourage technicians at your

company to participate and attempt the UA STAR test, as our industry needs to always

be a cut above the competition.

First Quarter 2010 ARCA/MCA Southern California ALERT Page 5 Fourth Quarter 2011 ARCA/MCA Southern California ALERT Page 5 Fourth Quarter 2012 ARCA/MCA Southern California ALERT Page 5 First Quarter 2013 ARCA/MCA Southern California ALERT Page 5 Third Quarter 2013 ARCA/MCA Southern California ALERT Page 5

Your One-Stop Shop for

OSHA HAZARD COMMUNICATION COMPLIANCE!

MSDS, SDS, GHS, Pictograms, Precautionary Statements, Hazard Statements…

Need HELP With OSHA’s Recently Revised (GHS) Hazard Communication Standard? Contact MCAA at pchaney@mcaa.org or 800.556.3653

New MCAA Hazard Communication Resources :

Member Discount on SDS BinderWorks - Industry - Specific Safety Data Sheet (SDS) Management Service

Model Hazard Communication Program (Free to members)

Employee Safety Training Video (Free to members)

Employee Safety Training Pocket Guide (Free to members)

Employee Safety Training Test - For Documentation & Affirmative Defense (Free to members)

Safety Training Documentation Sheet (Free to members)

Pictogram Poster (For Offices, Break Rooms, Jobsite Trailers, etc.)

Contractors’ Compliance Date: December 1, 2013

11th Annual MCAA Safety Directors’ Conference January 28 - 30, 2014

Embassy Suites, Ft. Lauderdale, Florida

Mark your Calendars!

Registration Opens August 28, 2013

www.mcaa.org/education/mcaa/safety

Don’t Fret the Dreaded IRS Tax Audit Notice

What happens if you haven’t kept such good records for the tax year you are audited? By looking at your tax return, try to go back and recreate records as accurately as possible. If you have claimed expenses in certain areas, like medical expenses, it is possible that your doctor or hospital will still have your medical records and provide you with bills that were paid for the year in question. You can also call your employer and ask for duplicate W-2s or 1099 forms. Banks and investment managers can provide you with duplicate 1099 forms and mortgage interest statements and your county can provide you with a statement for personal property taxes paid. You can be sure of one thing with an IRS auditor; they are implicitly assuming that you have done something wrong on your return. If you decide to represent yourself in the audit process, realize that the IRS auditor is not your friend. Maintain a polite and professional demeanor with the auditor. If you are prompt and organized, it will help when the auditor is trying to assess your character and integrity. Remember to only answer questions that are directed to you and provide support for those answers. Never volunteer additional information as it may lead to other questions and investigations. Be confident that your tax return was prepared accurately and that you have records to prove it. Generally, the IRS will only conduct an audit of a tax return if it sees some invalid or excessive deductions or other expenses. The good news is that not all audits result in the taxpayer owing extra taxes. There are many audits that prove the IRS actually owes you instead of the other way around. Although audits are unpleasant, you don’t need to dread them if you have kept your financial records organized, up to date and above board. If you are chosen for an audit, make sure the examination is scheduled far enough in advance for you to get ready. Good preparation should enable you to get through the audit with a minimal amount of stress.

Third Quarter 2013 ARCA/MCA Southern California ALERT Page 6

Continued from page 1

Trailblazer Award

Presented by the San Fernando Valley Business Journal, August 2013

For Starting a New Enterprise, Being the First to Try Something New and/or Leading the Profession Forward

Manny Kaplan Partner of the Management Committee, Miller Kaplan Arase LLP

Starting humbly at a firm that hired him right out of college, Manny Kaplan felt lucky to get the job. But hard work and dedication fast erased any thought that luck had much to do with Kaplan’s success. Kaplan has since had a long career and has done consistently well as a CPA firm. Star ting off with six people, the firm he helped launch has now grown to over 130 employees strong. Miller Kaplan is, in fact, now the largest CPA firm in the San Fernando Valley and one of the largest in the Los Angeles region. Kaplan has led and grown the firm by emphasizing practice specializations and a belief in the power of teamwork. He assumed the role of managing partner in 1977 and, despite having been in the accounting profession for more than 35 years, is always open to applying the latest methodologies in his practice. His specialization in the area of employee benefit plans earned him a reputation as a national authority and a position on the committee that created the American Institute of Certified Public Accountants’ Guide for Audits of Employee Benefit Plans. Industries he represents include: employee benefit plans, enter tainment, nonprofit organizations, professional services firms, and religious organizations and foundations. Under his stewardship, the firm has built an excellent name. Miller Kaplan is highly trusted because of its standards and the standards of its leadership, including Kaplan himself. Kaplan has the uncanny ability to creatively help his clients while staying within the rules of the profession. In the end, he always goes the extra mile for the client. Perhaps that and the fact that he has always been a genuine trailblazer in his industry is the reason why he has had some client for 60 years!

2013 Calendar

September

2 ARCA/MCA Southern California Office Closed

18 7:00 am SCPT Finance Committee

October

9 7:00 am SCPT Administrative and Delinquency Committees

10 8:00 am P.I.P.E. Board of Trustees

10 3:30 pm ARCA/MCA Southern California Board of Directors

7:00 pm ARCA/MCA Southern California

Annual Membership Meeting (dinner at 5pm)

(Pacific Palms Resort, City of Industry, CA)

13-16 MSCA Annual Educational Conference

(Boca Raton, FL)

20-23 International Foundation Annual Conference

(Las Vegas, NV)

29 9:00 am IRBT Board of Trustees

30 8:00 am SCPT Board of Trustees

November

1 8:00 am HVACR Training Summit (Los Angeles, CA)

4 1:00 pm Inland JAC (Colton, CA)

6 11:30 am Service Managers Meeting

11 ARCA/MCA Southern California Office Closed

12 8:00 am ACRT Board of Trustees

28-29 ARCA/MCA Southern California Office Closed

December

4-6 MCAA Industry Funds Conference

(Longboat Key, FL)

11 7:00 am SCPT Finance Committee

12 11:30 am ARCA/MCA Southern California Year End Luncheon

24-25 ARCA/MCA Southern California Office Closed

31 ARCA/MCA Southern California Office Closed

Fourth Quarter 2011 ARCA/MCA Southern California ALERT Page 6 Third Quarter 2012 ARCA/MCA Southern California ALERT Page 6

ACCO Engineered Systems

Glendale, CA

Air Conditioning Solutions, Inc.

Altadena, CA

Air-Ex Air Conditioning, Inc.

Pomona, CA

Barr Engineering

Santa Fe Springs, CA

Control Air Conditioning Service Corporation

Anaheim, CA

Couts Heating & Cooling, Inc.

Corona, CA

Graycon, Inc.

City of Industry, CA

Thermalair, Inc.

Anaheim, CA

Weatherite Corporation

Walnut, CA

Western Allied

Santa Fe Springs, CA

Wittler-Young Service Company

Los Angeles, CA

Allison Mechanical

Redlands, CA

Emcor Service/Mesa Energy Systems

Irvine, CA

South Coast Mechanical, Inc.

Anaheim, CA

The Mission of the Airconditioning, Refrigeration and Mechanical Contractors Association of Southern California, Inc. (ARCA/MCA Southern California) is to exceed the expectations of the Association’s member companies. The Association will provide a link of com-munication that will address, advance, and inform the Association membership of the latest updates on legislation, technology, and issues pertinent to the Airconditioning, Refrigeration and Mechanical Contracting Industry. The success of the Association in achieving this Mis-sion is to be based on integrity and loyalty to its members. We will strive to be diligent and flexible by supplying services the mem-bership needs to be competitive in an ever-changing business environment.

ARCA/MCASouthern California Mission Statement

First Quarter 2013 ARCA/MCA Southern California ALERT Page 6 Third Quarter 2013 ARCA/MCA Southern California ALERT Page 7

The Mission of the Airconditioning, Refrigeration and Mechanical Contractors Association of Southern California, Inc. (ARCA/MCA Southern California) is to exceed the expectations of the Association’s member companies. The Association will provide a link of com-munication that will address, advance, and inform the Association membership of the latest updates on legislation, technology, and issues pertinent to the Airconditioning, Refrigeration and Mechanical Contracting Industry. The success of the Association in achieving this Mis-sion is to be based on integrity and loyalty to its members. We will strive to be diligent and flexible by supplying services the mem-bership needs to be competitive in an ever-changing business environment.

ARCA/MCASouthern California Mission Statement