macpa statement // january 2015

January 2015 | Maryland Association of Certified Public Accountants, Inc.

STATEMENTNEW REVENUE

RECOGNITION STANDARD: BUILD YOUR IMPLEMENTATION PLAN NOW

PAGE 9

Richard J. Princinsky & Associatesis now a division of

USI Insurance Services, LLCThrough the new partnership, RJP is positioned as one of the leading employee benefits brokerage firms in the MidAtlantic region specializing in employee benefits and offers enhanced and comprehensive pension, 401k and P&C solutions.

With this expansion, the RJP team has access to resources and expertise you would expect from one of the largest national brokers that will continue to be delivered by qualified consultants through our long-standing tradition of personal attention, meeting the specific needs of every client.

A New Partnership ...

We are the MACPA’s Exclusive Preferred Provider for Employee Benefits.

410.773.4300 | [email protected]

Win the tax season race.

MACPA.ORG/1040FT

With Art Werner

1040 Fast Track is an ideal way to prepare for the tax season rush. It is an extensive seminar covering changes in individual tax law. The event is interactive and features audience participation. Attendees are also provided with an 800+ page manual written by full-time practitioners.

January 8-9, 2015Location: ColumbiaEvent ID: 211002Cost: Member $300, Non-member $450CPE: 16 hours tax

ALSO AVAILABLE AS A WEBCAST

ONLINE LEARNING OPTIONFor our members’ convenience both 1040 Fast track seminars will be available as live webcasts for those who can’t attend in person. For questions or for more information, please call the Member Service Center at 800.782.2036.

B A N K I N G . I N S U R A N C E . I N V E S T M E N T S

Member FDIC. Only deposit products are FDIC insured.© 2013, Branch Banking and Trust Company. All rights reserved.

If values aren’t shared,If values aren’t shared,If values aren’t shared,they aren’t lived.they aren’t lived.they aren’t lived.

For more than 140 years, BB&T has never taken a relationship for granted. We set out to earn your business each and every day. Our strong value system helps us determine what is right and reasonable. And to remain focused on doing what’s in the best interests of the clients and communities we serve. Discover the value a values-driven bank can offer you. Talk to us today. BBT.com

Proud Sponsor of the MACPA

CONTENTS

WE WANT TO HEAR FROM YOU! See below to submit content

Bill SheridanMACPA Dulaney Center II 901 Dulaney Valley Road Suite 800Towson, MD 21204

For content submission: [email protected]@macpa.org

P: 410.296.6250 F: 410.296.8713Toll free: 800.782.2036

The MACPA reserves the right to edit all submissions for grammatical style and / or length.

Statement of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of MACPA.

The Statement is published four times a year by the Maryland Association of Certified Public Accountants, Inc.

Bill Sheridan, EditorAmy Moran, Advertising Sales

January 2015 | Maryland Association of Certified Public Accountants, Inc.

CHAIR’S COLUMN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

FEATURESNew revenue recognition standard: Build your implementation plan now . . . . . . . . . . . 9

DEPARTMENTSNews & Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Tax Corner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Accounting & Auditing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33High-Tech Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Member Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 46NYPN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 47

MEMBER NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

CLASSIFIEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

UPCOMING EVENTS & COURSES. . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

3JANUARY 2015

ADMINISTRATION

Becky Conley [email protected]

Ashlee Stem [email protected]

Amy Stumme [email protected]

COMMUNICATIONS

Amy Moran [email protected]

Bill Sheridan [email protected]

FINANCE

Margaret DeRoose [email protected]

Laura Swann, CPA [email protected]

MEMBER SERVICES

Lauren Baker [email protected]

Rebekah Brown [email protected]

PRODUCT DEVELOPMENT

Akesha Brown [email protected]

Debbie Zizwarek [email protected]

TECHNICAL SERVICES

Cora Edwards [email protected]

MaryBeth Halpern [email protected]

PROFESSIONAL DEVELOPMENT

Pamela C. Devine [email protected]

Chris Dougherty [email protected]

Andrew Hood [email protected]

Donna Lewis [email protected]

Paige [email protected]

Laura Dorsey-Shaner [email protected]

Terri [email protected]

Dee Sullivan [email protected]

Emily Trott [email protected]

Ryan Wey [email protected]

2014-2015 BOARD OF DIRECTORSOFFICERS

Marianela del Pino-Rivera, CPAChair

Michael Manspeaker, CPAVice Chair

Lisa Cines, CPASecretary/Treasurer

Byron Patrick, CPA, CITP, MCSEImmediate Past Chair

DIRECTORS

Michael Drankiewicz, CPA

Laura Freitag, CPA

Virginia Jackson, CPA

Carl Kampel, CPA

Amy Myers, CPA

Gene Ransom III, Esq.

Sean Roddy, CPA, CMA, CGMA, MBA

Richard L. Wolf, CPA, CFE, CGMA

SENIOR STAFFMACPA EXECUTIVE DIRECTOR

J. Thomas Hood III, [email protected]

MACPA DEPUTY EXECUTIVE DIRECTOR

Jacqueline E. G. [email protected]

DIRECTOR OF FINANCE AND ADMINISTRATION

Skip Falatko, [email protected]

B A N K I N G . I N S U R A N C E . I N V E S T M E N T S

Member FDIC. Only deposit products are FDIC insured.© 2013, Branch Banking and Trust Company. All rights reserved.

If values aren’t shared,If values aren’t shared,If values aren’t shared,they aren’t lived.they aren’t lived.they aren’t lived.

For more than 140 years, BB&T has never taken a relationship for granted. We set out to earn your business each and every day. Our strong value system helps us determine what is right and reasonable. And to remain focused on doing what’s in the best interests of the clients and communities we serve. Discover the value a values-driven bank can offer you. Talk to us today. BBT.com

Proud Sponsor of the MACPA

MACPA HONORS TOP WOMEN IN THE PROFESSIONSome of the profession’s leading women took center stage at the MACPA’s inaugural Women To Watch Awards on Sept. 23. Winners were honored in two categories — Emerging Leaders and Experienced Leaders. Pictured from left are Lexy Kessler, a partner at Aronson and Experienced Leaders winner; AICPA Chair-elect Tommye Barie, who attended at spoke at the event; Aileen Eskildsen, director at Ellin & Tucker and Emerging Leaders winner; MACPA Chair Marianela del Pino-Rivera; Tammy Schneider, principal at Glass Jacobson and Experienced Leaders winner; and Elise Brouillette, data assurance manager at PwC and Emerging Leaders winner. The event was also supported by the AICPA and its national Women To Watch program. Read more about the event at MACPA.org/Women.

January 29 | Governor Calvert House | Event ID: 181000

macpa.org/cpaday

2015

Promoting and Protecting CPAs in Maryland Bring your voice to Annapolis on January 29th

STATEMENT6

CHAIR’S COLUMNTAX TROUBLES, ANNAPOLIS TURNOVER DEMAND CPAS’ ATTENTIONBY MARIANELA DEL PINO-RIVERA, CPA, CHAIR

BRACE YOURSELVES, CPAS. THIS TAX SEASON IS SHAPING UP TO BE A ROUGH ONE.A series of recent articles in the trade publications have listed a number of possible headaches this year. It is an impressive list:

• The IRS’s budget is woefully inadequate. Since 2010, the agency has lost 13,000 full-time employees and 7 percent from its operating budget while trying to serve an additional 7 million taxpayers. The numbers don’t add up. “The problem is trying to figure out how to survive with the constraints we are under and the obligations we have,” IRS Commissioner John Koskinen told the Journal of Accountancy.

• Koskinen estimated that 47 percent of taxpayer phone calls to the IRS might go unanswered in 2015, up a stunning 18 percent from 2014.

• At press time, the fate of more than 50 tax extender laws was uncertain. Lame-duck lawmakers in Congress had vowed to address the extenders before the end of the year, but any further delays could push back the start of tax season and leave taxpayers waiting longer than usual for their refunds to arrive.

• The tax provisions in laws like the Affordable Care Act and the Foreign Account Tax Compliance Act (or FATCA) are making life miserable for IRS officials. “For example,” Forbes reporter Ashlea Ebeling writes, “Koskinen said the IRS requested $430 million in 2014 from Congress to implement the ACA but got zero, forcing it to take money out of enforcement and taxpayer services budgets.”

More and more, it seems CPAs are expected to be de facto enforcement agents for the IRS.

• We are verifying health insurance

and coverage related to the ACA.

• We need to verify appropriate documentation for any donation of at least $250.

• Due diligence requirements for the Earned Income Tax Credit are becoming increasingly onerous, as are repair and maintenance de minimus policies.

Thankfully, we have access to a number of resources that can help.

Topping the list is the MACPA’s own federal and state tax listservs. These invaluable tools are cited by some tax preparers as the benefit they value most from their MACPA membership. Throughout tax season, members ask questions and provide answers to a community that’s designed to do one thing: connect tax pros to the resources and information they need to do their jobs.

Preparers will also find valuable tax-season resources in the MACPA’s various social networks, in its weekly all-member e-newsletter, and at its popular 1040 Fast Track program on Jan. 8-9.

Details about these resources — and about the AICPA’s terrific Tax Practitioner’s Toolkit — can be found on Page 21.

As always, the MACPA is working with the rest of the profession to make sure the voices of CPAs are heard in Annapolis, in Congress, and at the IRS. We’re successful more often than not, but this year will bear watching especially closely.

CPA DAY: MORE IMPORTANT THAN EVER

Speaking of politics, you won’t want to miss the 2015 edition of CPA Day in Annapolis, scheduled for Jan. 29.

With a new governor ready to take office and sizable turnover in the General Assembly, it’s more important than ever that CPAs introduce themselves to lawmakers and start educating them

about the issues that impact Maryland businesses and taxpayers.

This year, those issues will include:

Sales tax on services

It’s always possible that the General Assembly could revisit the idea of imposing sales taxes on professional services as a way to raise revenue. The MACPA believes a sales tax on services would burden the citizens and businesses of Maryland unnecessarily with additional taxes.

Tort reform / contributory negligence

The MACPA will work in support of Maryland’s contributory negligence rule for a number of reasons. It prevents a flood of suits by plaintiffs who have a disproportionate amount of fault, helps keep a lid on insurance premium growth rates, and fosters the exercise of due care by everyone. On the flip side, the higher cost of conducting business and the decreased productivity associated with the “comparative negligence” alternative would lead to a loss of jobs, increased liability and a deterioration of the economic climate in Maryland.

We also plan to support a revision to the definition of “attest” (due to a technical change to the SSAEs) and the Maryland Tort Reform Coalition’s effort to establish a limit on the size of appeal bonds that defendants must post in order to prevent the collection of an adverse judgment while the case is on appeal.

The real value of CPA Day comes in building relationships with your legislators and spending a productive day with your fellow CPAs. Those connections can pay off many times over when harmful legislation is introduced.

You’ll find details and registration information about CPA Day at MACPA.org/CPADay. I look forward to seeing you there!

looks at insurance from afresh perspective…

The AICPA Professional Liability Insurance Program

When you sit down with a client, you strive to seetheir business from their perspective and make recommendations based on their unique situation.We operate similarly.

Whether your CPA firm is a one person operation or national in scope, the AICPA Professional Liability Insurance Program offers insurance products and solutions designed to fit your needs:

• Insurance created to cover the unique exposures of CPA firms

• Premium credits designed to reflect the way CPAs do business

• Quality coverage at a price that fits your budget

• All size firms and areas of practice are eligible

Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (TX 13695), (AR 244489); in CA and MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc. (CA 0G94493); Aon Direct InsuranceAdministrators and Berkely Insurance Agency; and in NY, AIS Affinity Insurance Agency.One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is notintended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for aninsured. All products and services may not be available in all states and may be subject to change without notice. The statements, analyses and opinions expressed in this publicationare those of the respective authors and may not necessarily reflect those of any third parties including the CNA companies. CNA is a registered trademark of CNA FinancialCorporation. Copyright © 2015 CNA. All rights reserved. E-10486-115 MD

YOURS

More than 25,000 CPA firmsdepend on the AICPA ProfessionalLiability Insurance Program.

Please call Rich Bacher at Aon Insurance Services at 800.221.3023or visit www.cpai.com/premieradtoday!

Endorsed by: Underwritten by: Administered by:

E-10486-115 MD_Layout 1 11/6/14 12:15 PM Page 1

Selling Your Practice?Start selling right now.

The Holmes GroupToll Free: 800.397.0249

[email protected]

Unparalleled resources. Marketing superiority. Ready to Start Now. We are North America’s largest seller of accounting and tax practices because we understand the value of your firm, know how to market it and have thousands of buyers who want a practice. Therefore our brokers, with proven success in the industry, can bring this marketing and resource advantage to your own unique situation. We are different because we can produce the best results for YOU. Call today so that we can start working to remove your selling headache and to obtain the goal you desire.

Are You An Accounting Professional?If numbers are your game, you can receive a competitive professional liability estimate from an A-rated carrier within minutes. The GilsbarPRO team works to provide you the coverage you need, when you need it.

Call The PROs Today.800.906.9654 • gilsbarpro.com

a winning gameplan for over 50 years.

speed.quality.efficiency.

• Over 50 years of professional liability experience

• Access to many of the best carriers in the nation

• Fast quotes and easy renewals

The Financial Accounting Standards Board’s new revenue recognition standard presents the most significant accounting change many veteran CPAs have seen.

The standard touches every entity (public and private, including not-for-profit entities) that reports under U.S. GAAP and will require CPAs to re-examine the underlying economics of large numbers of established business practices.

The new standard applies to most transactions and contracts with customers, except for leases, insurance contracts, most financial instruments, and guarantees (other than product or service warranties).

At first glance, the implementation period for Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers,” might seem adequate, if not generous. Public companies, for whom early adoption is not permitted, are required to adopt the standard in 2017 (for reporting periods beginning after Dec. 15, 2016). Private companies get an additional year (starting with 2018 for their annual reports) and two more

years, beginning in 2019, to start applying the standard to interim reports. Private companies may choose to adopt the standard on the public company schedule.

After further study, however, many organizations may find the implementation period to be extremely aggressive and the task daunting. There are many components to be analyzed and many questions to be answered:

• How will the standard affect operational and performance metrics?

• What IT changes will be needed?

• How will you retrospectively adopt the standard?

If a public company chooses full retrospective adoption, revenue and the direct effects of change in accounting principle to all contracts must be restated for 2015 and 2016 to show comparative financial statements with a cumulative adjustment as of Jan. 1, 2015.

CPAs are encouraged to advise clients and employers to begin developing an implementation plan as soon as possible.

The AICPA has organized a major effort, including industry work groups, training, and organizational tools to assist CPAs with this monumental implementation.

CPAs can use the following key tasks

based on the AICPA’s New Revenue Recognition Accounting Standard: Learning and Implementation Plan (MACPA.org/Revenue) as a high-level road map to begin organizing your organization’s implementation.

TASK 1: FORM A TASK FORCE (2014-15)

Don’t wait to get all of the major players involved. The standard replaces most transaction- and industry-specific guidance with a principle-based approach, making it difficult – if not impossible – for CPAs to estimate the implementation effort required in a specific organization without first conducting a detailed assessment to use in developing a work plan. In all but the very smallest private companies, this assessment will require substantial collaboration with most major business functions, including sales and marketing, IT, legal, and human resources.

TASK 2: EVALUATE THE IMPACT (2014-16)

Evaluate the changes from current GAAP to the new revenue recognition standard and evaluate the impact on how your company accounts for existing revenue streams and the results to your company’s financial statements.

In addition, evaluate how the standard will affect operational and performance metrics, company contracts, compensation plans, accounting policies, internal controls, and tax matters. Work with your auditor to ensure that your approach to implementing the new revenue recognition standard and any changes in accounting for revenue recognition are documented completely and accurately.

TASK 3: CHOOSE HOW TO RETROSPECTIVELY ADOPT (2014)

The standard should be applied using one of the following two methods:

Retrospectively to each prior reporting period presented, and the entity may elect any of the following practical expedients:

• For completed contracts, an entity

9JANUARY 2015

CONTINUED ON PAGE 10

NEW REVENUE RECOGNITION STANDARD: BUILD YOUR IMPLEMENTATION PLAN NOWBY KIM KUSHMERICK

need not restate contracts that begin and end within the same annual reporting period.

• For completed contracts that have variable consideration, an entity may use the transaction price at the date the contract was completed rather than estimating variable consideration amounts in the comparative reporting periods.

• For reporting periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to remaining performance obligations and an explanation of when the entity expects to recognize that amount as revenue.

Retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. If an entity elects this transition method, it also should provide the additional disclosures in reporting periods that include the date of initial application of the following items:

• The amount by which each financial statement line item is affected in the current reporting period by the application of the standard as compared to the guidance that was in effect before the change.

• An explanation of the reasons for significant change.

In September, the Securities and Exchange Commission (MACPA.org/SECrevenue) determined that companies electing full retrospective adoption will only be required to apply the new standard for three years rather than the expected five years.

TASK 4: DETERMINE IT CHANGES NEEDED (2014)

Based on the determinations made in Tasks 2 and 3, the new standard may require modifications to IT systems to capture the appropriate level of information related to data used to make

estimates on revenue recognition and new disclosures.

Determine whether any changes will need to be made to IT systems or software

applications to capture information needed for the new revenue recognition standard, including the following retrospective adoption and the additional qualitative and quantitative disclosures required.

TASK 5: DETERMINE INTERIM DISCLOSURES NEEDED FOR PUBLIC COMPANIES (2014-16)

Public companies should consider the guidance in SEC Staff Accounting Bulletin (SAB) No. 74 (Topic 11:M), “Disclosure of the Impact that Recently Issued Accounting Standards Will Have on the Financial Statements of the Registrant When Adopted in a Future Period” (MACPA.org/SAB74) to determine the appropriate interim disclosures to be made prior to the adoption of the new standard.

TASK 6: DEVELOP PROJECT PLAN (2014–16)

Develop an evolving project plan for implementation of the revenue recognition standard considering all of the tasks above and facilitate training for your staff.

TASK 7: EDUCATE KEY STAKEHOLDERS (2015-16)

Based on the determinations made in Tasks 2 and 3, the new revenue recognition standard may result in changes in timing of revenue recognized as well as new qualitative and quantitative disclosures that will need to be explained to stakeholders. Educate key stakeholders such as your audit committee, board of directors, investors, and lenders on the new revenue recognition standard and what changes they should expect in your company’s financial statements.

Kim Kushmerick is the AICPA’s senior technical manager, accounting standards.

NEED MORE TIME TO PREP FOR REVENUE RECOGNITION? YOU MIGHT GET ITFrom the MACPA’s blog, CPA Success

For every organization that must comply with the profession’s new revenue recognition standard — and that pretty much means every organization, period — the biggest concern is time.

The standard, which was released in May by the Financial Accounting Standards Board and the International Accounting Standards Board, centers on the recognition of revenue from contracts with customers and “is designed to create greater comparability for financial statement users across industries and jurisdictions,” writes Ken Tysiac in the Journal of Accountancy.

Here’s the problem: The original deadlines called for any companies that file under U.S. GAAP to implement the new standard by Jan. 1, 2017. Officials at many of the companies in question have complained, saying that simply isn’t enough time.

Regulators apparently are listening. FASB and IASB officials have said recently that they might delay the implementation deadline in the wake of those complaints.

That would probably be a good thing. The more we hear about the standard, the more unsure companies seem to be about the impact it will have on business.

While most companies are at least somewhat familiar with the standard, CFO.com’s Matthew Heller reports that “35 percent of companies had not yet attempted to quantify the impact of the new standard on financial statements, and 23 percent were not sure whether it would have a material impact on income statements or balance sheets.”

Compliance Week’s Tammy Whitehouse added this:

“(Seventy-seven) percent of companies expect to make some significant changes to IT systems to adopt the standard, but few could estimate the costs the company would incur to adopt the standard. The results suggest companies still have a lot of work ahead of them to understand the standard and its implications for their accounting, controls, and business generally.”

Sounds like we could all put that extra time to good use.

STATEMENT10

*All insurance products will be offered and sold through Automatic Data Processing Insurance Agency, Inc., or its licensed insurance partners.

The ADP logo and ADP are registered trademarks of ADP, LLC. Copyright ©2014 ADP, LLC.

At ADP, we’re all about connections — connecting accounting professionals like you to the right resources and opportunities to support your firm’s objectives. You choose the program that best fits your strategy:

• Give your clients access to big-business payroll and HR solutions by referring them to ADP• Generate more revenue and simplify payroll processing with our customized platform for accountants• Discover other segments to invest in or retire sooner by selling your client payroll base to ADP

When you partner with ADP, you also connect to integrated HR products, retirement and insurance* solutions and more — everything your clients need to help protect and grow their business. And everything you need to help drive growth and ensure peace of mind.

For more information, visit ADP.com/accountant or call 1-855-408-3751.

HR. Payroll. Benefits.

Connect to ADP ®

Connect your firm. Connect your clients.

ADP adp128713a Proof 1 - MACPA Statement Magazine

Payroll is a huge business opportunity that’sright under your nose.

Work less, worry less and profit more withRUN Powered by ADP® Payroll for Partners. With ADP’s easy-to-use online payroll solution, you can regain control of your time and rethink how payroll can help driverevenue and profitability. Our solution requires no upfronttechnology investment, and comes with simple pricing,dedicated service and marketing support. Count on our 60+ years of expertise as the payroll leader to help you benefit from less work, less worry and more profit.Learn more with the free strategy brief, “3 Easy Ways Payroll CanHelp Grow Your Business.” Go to accountant.adp.com/opportunity

HR. Payroll. Benefits.

ADP is a Premier Bronze Sponsor of the Maryland Association of CPAs.For more information about our member benefit program call 410.933.2181 today!ADP®, the ADP logo and RUN powered by ADP are registered trademarks of ADP, Inc. Copyright © 2013 ADP, Inc.

ADP is a Premier Bronze Sponsor of the Maryland Association of CPAs. For more information about our member benefit program, call 410.933.2181 today!

2015Business& Industry C O N F E R E N C E

MAY 7TH

Event ID: 121011 | Turf Valley Resort & Conference Center

macpa.org/industry

FIND YOUR COMPETITIVE EDGE

Attention CPAs:Whether A Decision Maker Looking To Upgrade Your Talent,

Or A CPA Looking to Upgrade Yourself/Your Skills, Ask Yourself:

Who really chose who in joining your company?

Are you/your professional staff really at the right level where you should be/you need them to be?

Are you/your staff in a position that truly suits your/their personality, values, and professional and personal needs?

Why leave your future to chance? If you’re seriously interested in making the “right” move for your next hire, I can help you.

I am an actively licensed CPA in Maryland and Virginia with over 20 years of experience including public accounting (E&Y) and consulting (KPMG), financial accounting (American Cancer Society), internal audit (Moneyline Telerate), and recruiting (Acsys, formerly Don Richards). As a networker who truly enjoys helping others and sharing my career experiences to guide fellow professionals, here is how I can help you:

Decision Makers: Ask you questions, and most likely ask many more questions than other recruiters

about your company, duties involved, skills required, corporate culture and more Work with you on finding the “right” professional that is the “right fit” Provide you with valuable information about the professionals I work with,

the marketplace, what your competitors pay, and more

Career Seekers: Guide you on career paths available in public accounting and industry Enable you to capitalize on your strengths Coach you on how to put your best foot forward to find the “right fit” Advise you when to stay in your current position if that is the right move

If you’re interested in working with a recruiter who understands your background, skills, andis genuinely interested in helping you find the “right fit”, then I welcome meeting you!

BETH A. BERK, CPA, CGMAIndependent RecruiterSpecializing in CPA Firm, Accounting & Finance Positions in Metropolitan DC & Nearby Suburbs/Baltimore/Richmond/Tidewater

Connecting You To Your Next Hire TM Contingency & Retained Staffing Solutions

matching skills, experience & values with needs

Serving clients and professionals as an Independent Recruiter since March 2005

Phone: 301-767-0670Email: [email protected]

STATEMENT14

CPAs used to be limited by geographic area. Today, distance isn’t a barrier. A CPA located in New York can have clients in California. Thanks to advanced technology, CPAs and their clients e-mail, scan, or fax materials to each other. They also store content in the cloud, where it can be easily accessed from an office, a coffee shop, or anywhere with an internet connection.

The AICPA’s Accounting and Review Services Committee (ARSC) recently issued Statement on Standards for Accounting and Review Services No. 21 that, among other things, accounts for

changes in CPAs’ practice environment. The ARSC is committed to ensuring that its standards remain relevant and meet members’ needs.

SSARS No. 21 is written in clarified format, which is intended to present standards that are easier to read, understand, and implement.

SSARS No. 21 is effective for engagements on financial statements for

periods ending on or after Dec. 15, 2015, but early implementation is permitted. The clarified and revised standards supersede all existing AR sections except for AR section 120, “Compilation of Pro Forma Financial Statements,” which is expected to be exposed for public comment in clarified format in 2015, along with a proposed standard on compilation of prospective financial information, which is currently addressed in the attestation standards.

THE STANDARD CONSISTS OF FOUR SECTIONS:

Section 60, “General Principles for Engagements Performed in Accordance With Statements on

Standards for Accounting and Review Services,” is intended to help accountants better understand their professional responsibilities when performing engagements in accordance with SSARSs.

Section 70, “Preparation of Financial Statements,” applies when the accountant is engaged

to prepare financial statements but is not engaged to perform an audit, review, or a compilation on those financial statements.

Section 80, “Compilation Engagements,” applies when the accountant is engaged to perform a

compilation engagement.

Section 90, “Review of Financial Statements,” applies when the accountant is engaged to perform a

review of financial statements.

Substantive changes to standards for compilations, reviews, or engagements

to prepare financial statements are as follows:

• Section 70 does not require a report, even when the financial statements are expected to be used or provided to a third party.

• Section 70 requires either a legend on each page of the financial statements stating that no assurance is being provided or a disclaimer.

• The accountant is required to obtain an engagement letter signed by both the accountant and the client’s management for all reviews, compilations, and engagements to prepare financial statements.

• Section 80 eliminates the need for the accountant to determine whether he or she has prepared financial statements by eliminating the submission requirement.

• Section 80 always requires a report. Financial statements that the accountant is engaged to prepare but that are not intended for third-party use would fall under Section 70.

“The standards create a bright line between accounting (preparation) services and reporting (compilation) services,” said MACPA Chief Executive Officer Tom Hood, CPA. “Our members will greatly benefit from the newly issued SSARS.”

For more information, visit the AICPA’s SSARS No. 21 webpage at MACPA.org/SSARS21.

New SSARS 21 creates bright line between accounting and reporting services

NEWS & VIEWS

1

2

3

4

FROM THE AICPA

"THE ARSC IS COMMITTED TO ENSURING THAT ITS STANDARDS REMAIN RELEVANT AND MEET MEMBERS’ NEEDS."

The CPA Event of the year.

6.23.2015

INNOVATION SUMMIT

SAVE THE DATE

STATEMENT16

CBM merges with Drolet & AssociatesAfter nearly 40 years, Councilor, Buchanan & Mitchell is back in Washington, D.C., as a result of its merger with D.C.-based Drolet & Associates PLLC, Certified Public Accountants. The combined firms will operate as Councilor, Buchanan & Mitchell, PC. Pictured from left are (front row), Patricia Drolet, Peter Reilly and Holly Caporale; and (back row) Matthew Johnson, Daniel Weaver, John Mullins, S. Vincent Crescenzi and Richard Morris. Not pictured is John Comunale.

A new era of CPA leadershipMACPA Chair-elect Michael Manspeaker, second from left, joins AICPA Chair-elect Tim Christen during a break at the 2014 fall meeting of the AICPA’s governing Council in Boston. Joining them, from left, are MACPA CEO Tom Hood, MACPA Chief Operating Officer Jackie Brown, and AICPA President and CEO Barry Melancon.

NEWS & VIEWS

What’s on Line 37?

Your opportunity to make a tax-deductible

donation to the Maryland Cancer Fund which provides cancer prevention, screening and

treatment for low-income Maryland residents.

Please Donate on Line 37 for Tax Year 2014!

http://phpa.dhmh.maryland.gov/cancer/SitePages/mcf_home.aspx

201 West Preston Street, Baltimore, MD 21201 • 410-767-6213

Martin O’Malley, Governor | Anthony G. Brown, Lieutenant Governor | Joshua M. Sharfstein, M.D., Secretary

UB alumni lead more of Baltimore’s largest accounting firms.*Enroll now in the Merrick School of Business, where we are dedicated to serving the needs of the accounting and financial community.

Program Offerings• M.S. in Accounting and Business Advisory Services • M.S. in Finance• M.S. in Taxation• M.B.A. (UB/Towson)

• Upper-Division Certificate in Accounting (CPA Exam Qualifications) • Graduate Certificate in Accounting Fundamentals • Graduate Certificate in Forensic Accounting

For more information, visit: www.ubalt.edu/gradadmissions or call 410.837.6565

REAL LEADERSHIP

*According to the 2014 Baltimore Business Journal Book of Lists, the University of Baltimore has 9 alumni who are managing or co-managing Baltimore’s 25 largest accounting firms.

CPA FIRM M&A WORKSHOP: COMPREHENSIVE OPTIONS FOR A

SALE, MERGER, OR INDEPENDENCE

1/21/15 | MACPA Towson Center | Event ID: 111003

SPONSORED BY

January 9 | Sheraton Columbia Hotel, Columbia | Event ID: 121001

2 0 1 5 A C C O U N T I N G E D U C A T O R S

C O N F E R E N C E

macpa.org/accountinged

BE THERE WHEN YOU CAN’T BE THEREMACPA offers over 400 webcasts a year.macpa.org/webcasts

Busy season is a little less busy with tax resources from AICPA, MACPA

TAX CORNER

While this year brings some uncertainty as to whether expiring tax provisions will be renewed (and, as a result, whether tax season will be affected), it also delivers a few things of value – resources that you can use to educate your clients about tax changes and the Affordable Care Act.

The AICPA Tax Practitioner’s Toolkit (AICPA.org/tax-toolkit) helps firms of all sizes bolster their current client bases and actively reach out to prospective clients. The Toolkit’s messaging will help you establish yourself as a leading provider of tax services all year long. The website also has been redesigned to make it easier to find the tools you need.

In addition, the MACPA’s state and federal tax communities are gearing up for another productive tax season.

• The MACPA’s state and federal tax listservs are among the association’s most popular resources. Each tax season, the lists are dominated by members who have pressing tax-related questions – and by other members stepping in to answer those questions. They’re the perfect resources for finding trusted solutions to your tax issues.

• Daily tax updates are posted on the MACPA’s Twitter (Twitter.com/MACPA), Facebook (Facebook.com/MACPA) and LinkedIn (MACPA.org/MACPALinkedIn) networks.

• Weekly tax updates are found each Friday in our MACPA Weekly e-newsletter, sent automatically to all members.

• The MACPA’s popular 1040 FastTrack program offers comprehensive individual tax information for CPAs and their staffs. The program will be held on Jan.

8-9 at the Loyola Graduate Center. Get details and register at MACPA.org/1040FastTrack.

HOW CAN YOU ACTIVELY COMMUNICATE WITH CLIENTS WITH SO LITTLE TIME?

Keeping your website current or social media posts timely is a challenge, especially during busy season. But maintaining that connection is vital. Reminding clients of your value regularly and year round is easy with the AICPA’s Toolkit tools, such as website articles and tweets for consumers and client letters and brochures on tax changes that require planning.

Save time by taking the guesswork out of what to say. Just cut and paste from:

• more than 100 tax tip tweets that promote your experience and expertise, ready for you to download and tweet to your followers;

• 29 mini-tax articles and reminders that showcase your expertise and value that you can drop into your website, social media or client communications; and

• client letters to small business or individual clients (or both) to educate them on important year-end tax planning concerns and encourage them to contact you now.

You can also download and print the Tax Law Snapshot brochure to give clients a detailed overview of what may affect their return in 2015 or the Affordable Care Act FAQs to answer their questions about issues like the new shared responsibility payment and the Health Insurance Marketplace.

EASY WAYS TO RAISE YOUR PRACTICE’S PROFILE

Within the Tax Practitioner’s Toolkit are customizable materials intended to help tax practitioners reach potential clients and be ready for business opportunities that can present themselves any time.

• Are there groups in your community who would like a speaker to bring them up to speed on tax changes and the Affordable Care Act? Use the Tax Law Snapshot PowerPoint slides and modify them to add your own voice and local or state concerns.

• What can you say or send as a followup to someone who asks what you do? Send them the Tax Law Snapshot or a brochure on CPA year-round services.

• Is your child’s school looking for ad sponsors for a game or play program? You can help. Just add your name and contact information to one of the print ads that describe a CPA’s unique value as a trusted adviser.

• Would your local paper appreciate a tax expert offering tips for their readers? Most likely! Modify and send the media release template and review tips for media interviews to get started.

The range of Toolkit resources enables you to reach consumers from many different angles. Visit the Toolkit at AICPA.org/tax-toolkit and see all the resources available to you.

21JANUARY 2015

HR Outsource SolutionsDefining, Designing andOptimizing the HR Process

HR outsourcing offers the benefits of an in-house staff at a fraction of the cost, customized to fit your organizational needs. Maximize your HR budget dollars – access the expertise you need whenever you need it.

We can augment your current HR capability or we can develop and manage your entire HR function with a combination of onsite and offsite service delivery options. We provide valuable expertise and hands-on management to meet any HR challenge from one-time projects to big picture processes.

Our HR consultants have broad-based knowledge whose combined experience delivers accurate, consistent, and trusted advice and service to employers of all sizes, across all industries.

SERVICES OVERVIEWImprove on what you have and design what you need:

• In-depth review of policies, procedures, recordkeeping, and other HR functions

• Conformance to current generally accepted practices, trends, Federal and state legislation

• HR needs assessment and development of action plan for addressing compliance risk areas

• HR function and recordkeeping audit and management • Employee Manual review and development •Employeewelfarebenefitplanregulatorycomplianceaudit • Federal and state FMLA administration • HRIS augmentation – online enrollment administration, payroll

integration,employeebenefitsportalset-upandadministration

Contact us today to discuss a customizedsolution for your business HR needs.

443.330.3936 | [email protected]

335 Clubhouse Rd. | Hunt Valley, MD 21031

Mid-AtlanticHR Solutions, Inc.

Experts at Optimizing HR

Formerly Richard J. Princinsky & Associates, Inc. HR Outsource Services

“The Anticipatory CPA” WITH DAN BURRUS

5/4/15HILTON BALTIMORE BWI AIRPORT

The main skill CPAs need to thrive in a business environment marked by hyperchange and uncertainty is the ability to accurately anticipate the future.

Daniel Burrus is one of the world’s leading technology forecasters and innovation experts.

Come learn to analyze and perceive trends, tap into everyday innovation, solve challenges faster, and recognize previously invisible opportunities.

EVENT ID

191014

Register to Attend: BLIONLINE.ORG/BURRUS

THE BLI AUTHOR SPEAKER SERIES

Complexities with IRS processing of refundsBY GERARD H. SCHREIBER JR.Editor’s note: The following article was originally published by the Texas Society of CPAs. It is reprinted here with permission.

TAX CORNER

The April 15 deadline will soon be here, and you will be hearing from clients who have not received their refunds. This article will give insight into systemic issues that practitioners must be aware of and work with to assist clients in receiving their refunds.

The convenience of the electronic filing mandate, direct deposit of refunds to bank accounts and IRAs, and the ability to track a refund through the IRS “Where’s My Refund?” tool and e-Services make a practitioner’s life easier … until we’re faced with the inability to find a taxpayer’s refund in the system. Many practitioners are finding out that when the refund does not appear in the system, it creates a challenging set of circumstances to determine what is happening with the taxpayer’s account. In addition to income tax returns, practitioners may need to access transcripts for other returns filed with the IRS.

The IRS has introduced a tool on its website that enables taxpayers to access their account transcript. It is located at IRS.gov/Individuals/Get-Transcript. Taxpayers may create a user name and access their account information online.

Most practitioners might agree that IRS transcripts create complexities for practitioners and will not be readily understood by taxpayers. It is unlikely a taxpayer will have the knowledge and understanding of the transaction codes and other information on the transcript and will need to consult the practitioner for interpretation or contact the IRS.

The following information covers issues associated with assisting practitioners in getting the taxpayers’ refunds processed and to them. Also, the use of e-Services and IRS transcripts necessitates an

understanding of the transaction codes and other information on the transcripts.

IRS ACTIONS

The typical circumstance practitioners experience is that the taxpayer’s return is filed electronically, with a refund indicated to be directly deposited into the taxpayer’s bank account. The practitioner knows the return has been electronically filed and accepted by verification from the Electronic Return Originator.

Then, there is an unexpected delay in the issuance of the refund and the practitioner is unable to find a record of the return being filed in the IRS system after looking on both the IRS website using the “Where’s My Refund” tool and in e-Services. In addition, the practitioner may consult the Practitioner Priority Service and Taxpayer Advocate Service.

This creates a very frustrating set of circumstances for all concerned. The taxpayer is anxious to receive the refund, does not understand the delay, and looks to the practitioner for answers. The practitioner is using the resources he or she is aware of and is not able to get any answers. No one is available to provide answers. The Practitioner Priority Service is unable to assist in releasing the refund or providing any insight on the issue. The practitioner is unsure if the matter meets the current criteria for acceptance by the Taxpayer Advocate.

What should be done next?

In many instances, the taxpayer’s return has been selected for further review, which will not appear in the account on e-Services and “Where’s My Refund.” The IRS is concerned with the accuracy and validity of the return filing. A Letter 5071C, “Potential Identity Theft During

Original Processing with Online Option,” is sent to the taxpayer requesting additional information to assist in the processing of the return. Many taxpayers will not inform the practitioner of receiving this letter and attempt to answer this inquiry on their own. The complexities of the identity verification process can be very confusing to many taxpayers and further delay the processing and receipt of the refund. By the time the practitioner is informed, a significant amount of time has passed.

When accessing e-Services, a practitioner will generally obtain an account transcript that will furnish much information to assist in determining the status of the taxpayer’s account. The dates of filing, assessment, payments, and other actions on the account are the most obvious that appear.

In addition to this information, various transaction codes will be listed on the transcript. Knowledge of these transaction codes has become a very important and necessary tool in determining what is happening with the taxpayer’s account in all instances and for all types of returns, in addition to taxpayer’s refunds.

Many of us will remember when revenue agents and officers would visit our offices, have paper printouts of a taxpayer’s account, and then refer to a foldout document to determine the various transaction codes on the account. This is the IRS Transaction Codes Pocket Guide, Document 11734. In addition to this, the IRS has Document 6209, which provides more detail on transaction codes than the pocket guide.

Most of the accounts with delayed refunds are coded with a transaction code 570. This is also referred to as a “hard freeze” on the account.

23JANUARY 2015







EVENT ID

191014



The Taxpayer Advocate’s report has indicated “one of the most significant problems requiring improvement is that the IRS continues to harm taxpayers by unreasonably delaying the processing of valid refund claims that happen to trigger systemic filters.” The report indicates 240,000 accounts had permanent “hard refund freezes” placed on them. The hard freeze is represented by transaction code 570.

The Advocates’ report indicates there are many issues with the Questionable Refund Program (QRP):

• In the second quarter of fiscal year 2012, the IRS reported that QRP inventory had increased three-fold over the previous year. As a result, the IRS has not been able to work this increased inventory within 70 calendar days, as agreed to between the National Taxpayer Advocate and Criminal Investigation in 2006, and began to apply hard freezes on these accounts.

• In FY 2012, the IRS Accounts Management Taxpayer Assurance Program (AMTAP) imposed a “hard freeze” on more than 142,000 returns because it could not complete the verification within the allotted time, not because the returns show “badges of fraud” or are otherwise suspect. In other words, AMTAP is using a hard freeze – normally designated for accounts in which potentially fraudulent activity has been “verified” – as an inventory management tool, without sufficient analysis of relative risk.

• TAS receipts of AMTAP cases – one indicator of flawed IRS procedures – rose approximately 468 percent since FY 2010, from 3,171 case receipts in FY 2010 to 18,012 in FY 2012. AMTAP cases currently constitute 8.2 percent of all TAS case receipts and are the second most common issue in TAS casework.

• TAS is increasingly receiving cases from taxpayers who are experiencing crippling economic burden because of IRS AMTAP delays.

• Seventy percent of all taxpayers who sought TAS help with the refund freezes in 2012 were experiencing some kind of financial harm as a result of IRS actions (or inaction), compared to 38 percent in 2010.

• A representative sample of TAS wage verification cases closed in 2012 found that 86 percent of these taxpayers were facing potential adverse impact.

• Seventy percent of these taxpayers with hardships received full relief (with another two percent receiving partial relief).

• In the same representative sample of TAS pre-refund cases, 53 percent of the taxpayers claimed and received the Earned Income Tax Credit (EITC). These taxpayers waited more than three months for a median refund of $5,175. The refunds comprised 38 percent of their Adjusted Gross Income (AGI).

The number of these hard freezes mentioned in the Taxpayer Advocate’s Report indicates this is an issue many practitioners either have experienced or will experience as taxpayer’s returns are being processed by the IRS. The IRS is publicizing the lack of funding for their activities, including the processing of returns.

PRACTITIONER’S VIGILANCE

Practitioners will need to be more vigilant of the items posted on taxpayer’s accounts and know where to go to determine the meaning of the various codes on the accounts.

The practitioner will need to consider what action to take if the transcript reveals a hard freeze or other similar code delaying processing of the return. The first thing that would come to mind would be to contact the Taxpayer Advocate. The Taxpayer Advocate has changed the criteria for acceptance of cases. The Taxpayer Advocate will not accept cases where pure processing matters are indicated. It will accept cases where there is an economic burden placed on the taxpayer by the IRS actions.

The Taxpayer Advocate report mentioned previously indicates the responsible IRS officials for this action. It may be beneficial for the practitioner to directly contact these IRS officials.

Many practitioners now routinely get Form 2848s (Power of Attorney and Declaration of Representative) for all tax clients. This may become a standard practice as the complexities of return preparation and processing issues continue to impact more taxpayers.

In addition, it will be normal due diligence in return preparation to obtain a transcript on extended returns since taxpayer information such as Forms W-2, 1099s, and other information is becoming available from the IRS at an earlier date than in the past.

SUMMARY

The refund freeze and other IRS account actions place the practitioner in a challenging position when faced with client satisfaction and retention being an important part of everyone’s tax practice. While there may be no way of stopping IRS actions on taxpayer’s accounts, proactive action such as monitoring of the taxpayer’s account by the practitioner may assist in dealing with this situation. Knowledge of the transaction codes and other postings on IRS account transcripts are a necessity in practice and hopefully will help to assist practitioners in dealing with IRS actions on taxpayer accounts.

Jerry Schreiber is a partner in the local accounting firm of Schreiber & Schreiber with expertise in accounting, tax, and consulting matters of individuals and small businesses. He can be reached at [email protected].

STATEMENT24

Baltimore: (410) 752-5244 / Columbia: (410) 872-9100Offices also in Washington / Bethesda / Vienna, VA

Visit us at randstadusa.com

Looking to add top talent to your business? Look to Randstad Professionals and shake the hand that’s shaken those of the best and the brightest in the financing and accounting fields.

Recognized as the area’s leading professional recruitment firm with a 30-year track record of success, Randstad boasts a network of talent that is second to none. Combine that with the backing of a $22 billion organization with offices across the globe and it’s no wonder that 90% of our business is from repeat clients. So, go by the numbers and count on Randstad Professionals.

Nobody Beats Our Addition Skills

Craig WalkerDirector of Accounting

and Finance Recruitment

Finance & Accounting, Banking, IT Direct Hire, Human Resources, Sales & Marketing

The Mergis Group is now Randstad Professionals, the second-largest staffing and recruiting provider in the world.

Forens ic Va luat ion C O N F E R E N C E

D I G D E E P E R .S E E M O R E .

P R O V I D E C L A R I T Y .

April 24 | Event ID: 121013 Hilton Baltimore BWI Airport macpa.org/forensicvaluation

J U M P S TA R T Y O U R C A R E E R A S A N

undergrad2015 MACPA Student Leadership AcademyJune 25-27, 2015 Towson University

W H Y A P P LY ?As a participant, you will:

• Receive a unique orientation to the CPA profession and the role you can play

• Meet our profession’s leaders, including Tom Hood, CEO of the Maryland Association of CPAs

• Encounter the sponsors and firms that are looking to hire

• Have your resume presented to employers associated with MACPA

• Network with other top accounting students

• Experience an in-depth look at your skills and strengths

The program, assessments, food, and lodging are all free to those

selected to participate

APPLY TODAYmacpa.org/

studentacademy

MARYLAND ASSOCIATION OF CPAs

Estate planning after ATRA: A whole new world for CPAs and tax professionals BY THOMAS J. STEMMY, CPA, CVA, EA, MMS

TAX CORNER

The American Tax Relief Act (ATRA) of 2012 has become a real game-changer for CPAs and tax advisers who tend to keep an eye on their clients’ entire family tax-planning picture.

Why? Except for the very wealthy, concerns about the federal estate tax have suddenly become a thing of the past. This means many clients will no longer need an elaborate (and sometimes incomprehensible) estate planning strategy – one that needs to be changed every time that Congress re-writes the tax code.

However, if anyone is thinking about changing his or her estate planning goals because of the friendly new tax rules, they need to keep in mind that high income taxes are now the hot topic in estate planning and, unfortunately, major relief is not expected anytime soon.

Look at the facts:

1. The new federal estate tax exemption is now set at $5.34 million (after inflation indexing). The vast majority of Americans are now outside the reach of the so-called federal “death tax” and, with the now permanent portability rules, married folks might even see a lifetime exemption as high as $10.68 million1.

2. For income taxes, however, there is no relief in sight. In fact, the ATRA raised the top marginal tax rate for individuals and trusts from 35 percent to 39.6 percent2. At the same time, it tacked on a new Medicare Tax of 3.8 percent on investment income and 0.9 percent on earned income

for those with higher income3. And, higher earners have also seen the disappearance of their long-favored 15 percent top tax rate for capital gains and dividends – now up to 20 percent4. Finally, let’s not forget the state income tax, which is required in all but seven states. (For Marylanders, that top rate could easily exceed 8 percent.)

THE SEARCH FOR BASIS: THE NEW TRUMP CARD IN ESTATE PLANNING

Strangely, many clients are holding onto the notion that lifetime gifting is still a necessity because of the lingering fear that some form of death taxes will be lurking for those assets that are valued in their estate. Some might even think that beneficiary children will come out as winners if an appraiser puts a “low-ball” valuation on an asset that they just inherited.

Clearly, these clients need to learn about the advantages of basis “step-up.” More important, they need to understand that when no estate taxes will be owed in the first place, a low-ball valuation on any estate asset could result in a huge capital gains tax cost later5.

Uninformed clients also need to understand that making certain lifetime gifts (without understanding the “carryover basis” rules) can result in devastating capital gains taxes later6. What tax practitioner hasn’t cringed upon learning that a client had unwittingly transferred to one of his kids an interest in an investment property without realizing that his own, low, out-of-pocket costs will mean low carryover basis for the kids? Or worse, Pop’s old records could be in such a disarray that it would be impossible later on for Junior to substantiate any carryover

basis to minimize his capital gain.

TIME TO REVISIT EXISTING ESTATE PLANS WITH ATTORNEY AFTER ATRA?

Who other than the CPA / tax adviser is better equipped to take the lead in alerting the estate lawyer to any changes in the client’s estate – an especially important consideration in view of the new tax-planning priorities? The tax professional will have the opportunity at tax time (if not before) to gather information about changes in the overall estate picture with questions like these:

1. How are the client’s assets titled at the present time (individually, jointly, T by E, tenants-in-common)?

2. What gift transfers have been made to family members? And, most important,

3. How much change has there been in the value of the client’s net worth?

Answers to these questions will help determine whether or not an existing estate plan needs to be modified because of ATRA. However, it needs to be emphasized to clients that there are other, non-tax issues that should never be overlooked – such as asset protection, creditor protection and asset management. These, of course, are of critical importance and need to be reviewed periodically with the experienced estate lawyer regardless of the tax consequences.

REVISITING THE ESTATE TAX “TERMINATORS” AFTER ATRA

Identified below are a few of the high-profile estate-planning strategies commonly used to minimize excessive


27JANUARY 2015

estate taxes but which may no longer be necessary. That is, unless (a) you expect to be among the very wealthy, or (b) you happen to live in a state that imposes estate taxes for estates of your size.

(Comment: Marylanders, for example, need to remain wary of the low $1 million exemption now in existence for estate taxes. This exemption, however, is scheduled to be increased over the next five years to match the federal threshold7.)

NO. 1: THE ANNUAL GIFT EXCLUSION “LOOPHOLE”

There is a familiar mindset among clients that has long been fixated on the importance of making gift transfers each year – up to the allowable annual exclusion, now set at $14,000. They need to be aware that the lifetime exemption for gifting has now been increased to $5.34 million8. Thus, the only real tax-saving benefit for most gifting plans might be with income taxes by splitting income with others at lower tax brackets.

Don’t forget to file required gift tax returns, regardless: Under the new law, many clients have been questioning the need to file gift tax returns by April 15 for gifts over the annual exclusion. This, of course, is not the case, as the IRS’ filing instructions clearly state that Form 709 must be filed whenever there is a gift of a present interest that exceeds the annual exclusion9. It’s true – there is no penalty for failure to file the return when

no immediate tax is owed. However, filing is recommended when required because (a) no one can predict what his or her net worth is going to be down the road, (b) the statute of limitations will safeguard positions taken on gift valuations and, most important, (c) who knows what the tax rules and IRS oversight monitoring will be like in this uncertain economy?

NO. 2: GOOD NEWS FOR MARRIED TAXPAYERS

“Gift-splitting elections” on Form 709 can

be particularly beneficial after ATRA. First, they permit a married person to transfer up to $28,000 to any one individual each year without having to dip into his or her lifetime exemption. Second, with gift splitting, that lifetime exemption can be as high as $10.68 million.

Aside from gift-planning, there is another election at the estate level (the “portability” election) which is available for married clients. This election will allow them to lock in the full $10.68 million lifetime exemption in their combined estates10.

Practitioners beware: Portability for married couples is not automatic. Under the rules of ATRA, the estate of the first to die must timely file a federal estate tax return and make the portability election, even if no tax is due. Many

clients will object to this seemingly unnecessary undertaking and its related costs. However, with up to $10.68 million at stake (to be protected from estate taxes), filing a tax return is clearly a small price to pay.

The good news is that simplified estate tax return reporting is now allowed. The hardship of filing a complex Form 706 simply to elect portability has been recognized by the Treasury. Statutory provisions now permit “simplified” reporting steps along with the ability to use broad “estimates of value” for assets – provided that a Form 706 is timely filed11.

NO. 3: LLCS, FLPS AND OTHER OWNERSHIP ENTITIES - OLD STANDBY TAX TERMINATORS

Setting up a business entity (like a limited liability company or a family partnership) to transfer minority interests to others


Integrate PEX Card with the leading accounting software and apps for an end-to-end

business solution. The results speak for themselves: many PEX Card customers have cut

employee expense budgets by more than 20% vs. their previous card or cash-based system.

With the PEX prepaid business card solution, your

clients can choose where and how much their

employees spend, view transactions 24/7, and

instantly add and remove funds on the fly.

Help Your Clients Track Expensesand Reduce Spend

Learn more at

This Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. The Bancorp Bank; Member FDIC.©2008-2014 PEX Card, All Rights Reserved

www.pexcard.com

The PEX Prepaid Visa® Card

STATEMENT28

Integrate PEX Card with the leading accounting software and apps for an end-to-end

business solution. The results speak for themselves: many PEX Card customers have cut

employee expense budgets by more than 20% vs. their previous card or cash-based system.

With the PEX prepaid business card solution, your

clients can choose where and how much their

employees spend, view transactions 24/7, and

instantly add and remove funds on the fly.

Help Your Clients Track Expensesand Reduce Spend

Learn more at

This Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. The Bancorp Bank; Member FDIC.©2008-2014 PEX Card, All Rights Reserved

www.pexcard.com

The PEX Prepaid Visa® Card

WE COULDN’T DO EVERYTHING THAT

WE DO FOR OUR MEMBERS WITHOUT OUR

PREFERRED PROVIDERS & PREMIER SPONSORS

MACPA PREFERRED PROVIDERS

MACPA PREMIER SPONSORS

For information about sponsoring MACPA programs or to learn more about advertising with the MACPA

please contact Andrew Hood at 443.632.2323 or [email protected]

has long been hugely successful in minimizing estate tax burdens. Although controversial, proper documentation has made it possible to claim substantial discounts (often between 25 percent and 45 percent) when gifting minority interests of assets that would otherwise be fully includable in one’s gross estate, while allowing the transferor to stay in control.

However, if estate taxes are no longer a concern, many will find no value in setting up an LLC, FLP or other pass-through entity. One might argue that the tactic might even backfire, tax-wise, because lifetime gifting of minority interests could sacrifice the magic of basis “step-up” forever for one’s heirs.

With this trade-off in mind, tax practitioners can make an important contribution by helping to project the potential tax cost to the client’s beneficiaries that could result when step-up is not available. This includes the tax on capital gains and investment income under the new tax rates. This potential cost can then be weighed against any possible income tax-saving benefits that might be gained by shifting income to others when minority interests are gifted to others at lower tax rates.

Any questions about setting up or dissolving an LLC, FLP or other separate entity after ATRA should consider the critical non-tax issues which are at stake. Since they generally involve the protection of the family’s hard earned assets, these decisions should not be made without attorney participation.

NO. 4: TIME TO ABANDON THE EVER POPULAR BYPASS TRUST?

Prominent estate experts are now contending that, with the generous new $5.34 million exemption, it has become apparent that most taxpayers will no longer need to include a complex “bypass trust”12 in their plans. This could be good news, since bypass trusts generally are not only costly to set up and administer, they could have adverse tax consequences as well. These include (a) the loss of basis step-up for the survivor spouse, and (b) compressed income tax brackets for trusts.

Why abandonment of the bypass trust might not be a good idea: For one thing, clients need to consider the possibility of future growth of asset values or the need to preserve the GST exemption (the generation skipping tax) which is not portable.

In addition, there may also be a need for protection from estate taxes in their state of residence. More important, once again, the use of any type of trust involves the bigger picture of asset protection and, for this reason, the recommendation of counsel is essential.

The above noted estate-tax “terminators” are only a few of the many strategies that are commonly used to minimize an excessive estate tax burden for clients. Other popular options (which might also need to be re-visited at the planning table after ATRA) might include the following:

GRATs (grantor-retained annuity trusts): Very generally, the client is allowed to make lifetime gifts of accumulated wealth to an irrevocable trust while retaining the right to receive an annuity payment for a fixed number of years. After the trust period, the assets can pass to the children at a major estate tax savings if the asset appreciation exceeds the historically low interest rates prescribed by IRS13.

IDGTs (Intentionally defective grantor trusts): The IDGT is an interesting tool that enables the client to freeze investment assets for estate tax purposes, but not for income tax purposes.

ILITs (Irrevocable life insurance trusts): ILITs have been one of the most successful estate-tax terminators in the past. With proper trust documentation, substantial insurance policies are free from the estate tax when the policies aren’t owned by the insured party in the first place.

FOOTNOTES

1. Portability of deceased spouse’s unused estate tax exemption to surviving spouse made permanent by ATRA.

2. For 2014, the 39.6 percent tax rate will apply when inflation-adjusted taxable income level reaches

$406,750 (single taxpayers), $432,200 (head of household) $228,800 (married filing separate ) and $457,600 (married filing jointly).

3. For tax years beginning after 2012, net investment income of higher-earning individuals, trusts, and estates is subject to a 3.8 percent surtax (Sec. 1411 IRC).

4. Top 20 percent tax rate for capital gains and dividends made permanent by ATRA.

5. IRC 1014, basis of property acquired from a decedent.

6. Section 1015(a) – carryover basis from donor to donee for gift transfers of appreciated property. House Bill 739, “Maryland Estate Tax – Unified Credit”: Most practitioners

7. are aware that certain states still have an estate tax which still makes it important to consider lifetime gifting and other strategies to minimize estate tax liability. Maryland has an exemption level of only $1 million for 2014. However, on May 15, 2014, the governor signed into law legislation that plans to increase this exemption level yearly, with the goal to match the federal exemption level by 2019.

8. Under ATRA, the lifetime exemption for gift transfer will equal the exemption allowed for estate taxes, indexed for inflation (now at $5.34 million).

9. 2013 – IRS instructions for Form 709.

10. Treasury Reg. 20.2010-2T(a)(7)(ii) – rules for elective portability.

11. Treasury Reg. 20.2010-2T(a)(7)(ii)(A).

12. Known as the “Exemption Equivalent Trust.”

13. Section 7520 and prescribed Actuarial Tables

Thomas J. Stemmy, CPA, CVA, EA, MMS, is a tax practitioner and partner with Stemmy Tidler & Morris, P.A. in Annapolis.

31JANUARY 2015

2015 Government & Not-For-Profit Conference

April 17 | Event ID: 121000 | University of MD University College, College Park

macpa.org/GNFP

prepared for complexity

ON-SITE TRAINING

YOUR STRATEGY.

OUR LEARNING EXPERTS.

ORGANIZATIONAL SUCCESS.

POWERED BY:

We develop cost-effective customized learning solutions to help your organization achieve its goals.

Call Pam Devine today at

443.632.2321to find out how we can tailor a solution to your needs.

BY R. CHRISTOPHER ROSENTHAL, CPA/ABV, ASA, CFF, AEP

Commercial damage calculations: Lost profits vs. lost value

ACCOUNTING & AUDITING

A business damage claim may be calculated as either (1) lost profits of the business, or (2) lost value of the business. Federal and state laws provide different remedies depending on the type of claim brought by a plaintiff. The type of economic damages alleged, as well as the facts and circumstances of the claim, will determine which measure of damages is most applicable.

Federal and state courts have not been clear or consistent in distinguishing the two types of remedies. Frequently, there is confusion as to whether or not the two damage methods are redundant or overlapping.

As experts, our job is to determine financial damages that restore the plaintiff to the same position as prior to the alleged injury. From an economics standpoint, you cannot have both lost profits and loss in value during the same time period (double dipping). The case law supports this conclusion.

However, it is possible to use both methods consecutively. An example is a slow death scenario.

Lost value is a measure of the impairment in the value of the business. It is measured by virtue of its impaired cash flow “but for” the damaging event and assuming the loss is permanent. Lost-value calculations use traditional business valuation approaches, including income, cost, and market. The CPA expert would value the business immediately before and after the damaging event, resulting in lost value damages. Lost-value calculations should consider marketability discounts and control premiums, if appropriate. Typically, lost value methodologies use after-tax cash flows and discount rates and gross up the results, as the award is usually taxable.

Lost value calculations can consider different standards of value, such as fair market, fair, intrinsic, and investment values. The standard of value utilized depends on the type of case, facts, circumstances, and venue. The expert needs to communicate with counsel at the beginning of the case regarding the appropriate standard of value.

Lost profits is a measure of the impairment of cash flow that would have been earned by a company “but for” the damaging event over a determinable period. An expert measuring lost profits would consider specific facts, such as the reputation of a plaintiff, that might enable him or her to generate more profit than a hypothetical owner. Lost profits are typically viewed from the plaintiff’s perspective. This method uses a pre-tax calculation.

The before-and-after method is common in calculating lost profits and uses the company’s data. This method compares the plaintiff’s performance before the damaging event to the plaintiff’s performance after the event. The underlying theory is that “but for” the defendant’s action, the plaintiff would have experienced the same level of revenue growth and profitability after the damaging event as the plaintiff did prior to the event.

Other methods to calculate lost profits include the yardstick and market model methods, which utilize market data, such as comparable guideline companies or industry data, to calculate the lost profits. These are relative lost-profits methods compared to the before-and-after method, which is an absolute lost profits method.

DIFFERENCES IN DAMAGE PERIOD

The damage period in a lost profits calculation is temporary as compared to the damage period in lost value calculations. In lost-profits calculations, the damage period is finite. It is assumed that the damaged company would return to the revenue and profit levels prior to the damaging event at some point in the future. In lost-value calculations, the damage period is permanent, and it is assumed that the damaged company will never recover to the levels achieved prior to the damaging event.

DIFFERENCES IN INCOME / CASH FLOW STREAM

A lost-profits and lost-value calculation can use an income approach to calculate damages. There are many differences in the calculation of income and cash flows between both damage measures:

LOST PROFITS:

• Incremental revenue, net of avoided costs or costs saved.

• Before income tax.

• Past period calculated through date of trial.

• Future period (until recovery) is discounted to present value as of trial date.

• Some jurisdictions require discounting to present value as of alleged injury date.

LOST VALUE:

• Net cash flow available to equity or total invested capital is used.

• After tax income.

• Past period is not applicable since a

STATEMENT34CONTINUED ON PAGE 36

CBIZ MHM, LLC

CBIZ MHM Careers @CBIZMHMCareers

For more information , please visit www.cbiz.jobs.

Count onCBIZ MHM.

© C

opyr

ight

20

14

. C

BIZ

, Inc

. N

YSE

List

ed:

CB

Z. A

ll rig

hts

rese

rved

.

Calculate your future with us. If you are an ambitious and growth-oriented individual, CBIZ MHM is the organization for you.

* Mayer Hoffman McCann P.C. is an independent CPA � rm providing audit, review and attest services, and works closely with CBIZ, a business consulting, tax and � nancial services provider.

Count on personal success • Count on professional growth • Count on work/ life balance

Taxation, Audit and Attest*, Valuation, Litigation and other Consulting Services

Of� ces in BETHESDA, EASTON and CUMBERLAND

Choose knowledge, strategy and results

Ronald E. Lyons, Esquire1901 Research Blvd., Suite 500 • Rockville, MD 20850-3168301-251-1180 p • 301-251-0447 fwww.mcmillanmetro.com • [email protected]

• Arbitration and Mediation

• Bank Financing and Loan Documents

• Business Formation

• Business Succession Planning

• Commercial Lease Negotiation

• Contracts and Commercial Agreements

• Derivative Actions

• Employment Agreements

• Independent Contractor Agreements

• Non-Compete and Executive Compensation

• Purchases, Sales and Mergers

• Shareholder and Operating Agreements

JULY 1, 2, & 3OCEAN CITY, MD

Every year, CPAs from all over Maryland come to the MACPA Beach Retreat on July 2, 3, and 5. We take off on Independence Day for fun and fireworks.

It’s the only time that CPE is offered at the beach. Members are encouraged to bring their families and many choose to make the Beach

Retreat part of a working vacation. Participants are invited to take as many (or as few) courses as they like.

Meeting space and discounted accommodations are provided by the Clarion Hotel Fontainebleau.

2015

Bring SPF. Take CPE.

macpa.org/beachretreat

JULY 1, 2, & 3OCEAN CITY, MD

Every year, CPAs from all over Maryland come to the MACPA Beach Retreat on July 2, 3, and 5. We take off on Independence Day for fun and fireworks.

It’s the only time that CPE is offered at the beach. Members are encouraged to bring their families and many choose to make the Beach

Retreat part of a working vacation. Participants are invited to take as many (or as few) courses as they like.

Meeting space and discounted accommodations are provided by the Clarion Hotel Fontainebleau.

2015

Bring SPF. Take CPE.

macpa.org/beachretreat

valuation is a measurement of value of future expected cash flow.

• Future cash flows are discounted to valuation date.

In a lost-profits calculation, the expert subtracts avoided costs (i.e., variable costs) from incremental revenue in both the actual scenario and “but for” scenario. Avoided costs are costs that would have been incurred in connection with the generation of the lost revenues but were not incurred. To the extent the plaintiff has incurred costs that would not have been incurred in the absence of the defendant’s misconduct, those costs should be offset against the avoided costs.

The lost profits for the actual and “but for” scenario are discounted and presented valued back to a specific date. The difference between the “but for” scenario and actual scenario are lost profits. Since the damage period is finite, there is no calculation of a terminal value for lost profits.

Some costs, such as cost of goods sold, may vary directly with sales. These costs, however, may not be entirely avoided. For instance, some costs may have been incurred to produce product prior to the wrongful act in anticipation of subsequent sales that did not occur as a result of the wrongful act.

Other costs, such as rent, are normally fixed in nature. The duration of the loss period can affect the extent to which costs are avoided. If the loss period is relatively short, it may not be possible to avoid certain costs. If the loss period is longer

in duration, some costs that in the short-term would be fixed, may be variable or semi-variable.

In a lost-value calculation, the expert calculates either equity or invested capital cash flow. The cash flow is discounted and present valued back to the valuation date to determine the value in an income approach. Since lost-value calculations are infinite, a terminal value is calculated when using this approach. As noted

above, the market and cost approaches can also be used in a lost value calculation.

DIFFERENCES IN DISCOUNT RATES AND CASH FLOWS

The discount rate may vary between a lost-profits and lost-value calculation. In both lost-profits and lost-value calculations, the discount rate must reflect the risks associated with the cash flows. Typically, after-tax discount rates are used and applied to pre-tax and after tax cash flow for lost profit and lost value calculations, respectively. In the lost-profits calculation, a few jurisdictions have allowed the risk-free rate as the discount rate. However, most of the case law now and many jurisdictions recognize the

appropriate use of risk-adjusted discount rates in lost profits calculations. In lost-value cases, the after-tax discount rate reflects the risk associated with the cash flow stream.

CONCLUSION

The two damage measurements used in a commercial litigation matter involve similar but conceptually different calculations. Both damage calculations may be initially considered for a case,

but ultimately the facts will determine the appropriate measure.

In some cases, both lost profits and lost value can be claimed. However, the expert needs to be careful to avoid double dipping. It is the responsibility of the expert to understand the facts of the case and communicate with counsel as to the appropriate

damage measurement.

R. Christopher Rosenthal, CPA/ABV, ASA, CFF, AEP is a director in Ellin & Tucker’s Forensic and Valuations Services Group with more than 30 years of experience as a global leader in the forensic, damages and valuation services profession. For more information, contact the firm’s Washington, D.C., office at (202) 638-0902 or by e-mail at [email protected].

37JANUARY 2015

Keys to greater information security and privacyBY JUDY BORSHEREditor’s note: This is the second in a series of articles on information security and privacy.

HIGH-TECH SOLUTIONS

In the past week, you likely have done more than one of the following:

• attached files to e-mail messages;

• placed files on a thumb drive or laptop;

• created a contract or completed a form for printing and signing;

• saved Word documents or Excel files in PDF format; or

• added comments, annotations, or a signature image to a PDF file.

If your e-mail attachment is opened by the wrong person, the thumb drive is lost or stolen, the PDF file is modified, or the PDF comments are removed or replaced, you may be at risk or responsible for the outcome whether the actions were inadvertent or intentional.

PASSWORD-PROTECT AND SECURE A PDF FILE FROM CONTENT MODIFICATION

Without securing your PDF files using password-protection features, your PDF file’s content can be altered and edited.

Adobe Acrobat includes a “Save As” feature to convert PDF files to Word documents. Even if you scan your PDF files as images, without setting protection features, someone could use the Optical Character Recognition feature and potentially access the individual characters. Now, Microsoft Word 2013 software has a new feature that will seamlessly open and convert PDF documents to Word format for editing. And Word can save a file to PDF format.

To password-protect and secure a PDF file from content modification or conversion to a Word document, follow these steps:

1. With a PDF open in Adobe Acrobat, click the File menu, select Properties, and then select the Security tab.

2. In the Security Method drop-down box, select Password Security.

3. Under Permissions, check the box next to “Restrict editing and printing of the document.” To allow printing, select High Resolution in the Printing Allowed drop-down box. If the PDF is a fill-in form, select “Filling in form fields” in the Changes Allowed drop-down.

4. Enter the Change Permissions password and click OK. You will be prompted to enter the password a second time. The password is case sensitive.

5. Save the file under a different filename to keep an unprotected version of the file. Close and reopen the protected file. You will not be able to use the text editing tool or Save As and convert to a Word document. Word 2013 will not be able to open and convert the PDF.

PASSWORD-PROTECT AND SECURE A WORD, EXCEL, POWERPOINT, OR PDF FILE FROM OPENING WITHOUT A PASSWORD

Microsoft Word, Excel, and PowerPoint and Adobe Acrobat include an “encrypt file” feature that allows for password security to restrict who can open the file. Therefore, when you attach a file to an e-mail message or place a confidential file on an unencrypted thumb drive or laptop, you can restrict who can open the file.

To encrypt a Word, Excel, or PowerPoint file with a password to open, follow these steps:

1. With a document open in Office 2010 or 2013, click the File menu, select Info, and then select Protect Document. In Office 2007, click the Office Button, select Prepare, and then select Encrypt Document.

2. Select Encrypt with Password.

3. In the Encrypt Document dialog box, type a password and click OK.

You will be prompted to enter the password a second time. The password is case sensitive.

4. Save, close, and reopen the file. Enter the password when prompted to open the file.

5. To remove the password once the file is open, repeat steps 1, 2, and 3. In step 3, delete the black dots in the password field. Save, close and reopen the file.

To encrypt a PDF file with a password to open in Adobe Acrobat, follow these steps:

1. With a PDF open, click the File menu, select Properties, and then select the Security tab.

2. In the Security Method drop-down box, select Password Security.

3. Check the box next to “Require a Password to open the document.”

4. Enter a password and select OK. You will be prompted to enter the password a second time. The password is case sensitive.

5. Save, close, and reopen the file. Enter the password when prompted to open the file.

6. To remove the password once the file is open, repeat step 1 and, in step 2, select No Security in the Security Method drop-down box.

A NOTE ABOUT PASSWORDS

Stronger passwords are those that:

• have 16 or more characters,

• include special characters,

• include upper and lower case characters, and

• do not include known words.

Legal software utilities are freely available on the Internet that can hack through weak passwords using password cracking techniques, including password dictionaries. If you have been using eight or fewer characters and known words in your passwords, such weak passwords may put you at risk for unauthorized access to your files.

If your business practices involve e-mailing confidential files, you may want to look into using a secure encrypted portal service to transfer files instead of e-mail. These services normally allow you to upload files to a secure server and then send an e-mail to the recipient to pick up the file by entering a password. If your business practices involve sending contracts in PDF format for signature,

you may want to look into using a digital signature service such as Adobe EchoSign to securely distribute contracts and collect signatures. For information regarding encrypted thumb drives, visit Ironkey.com.

Additional security topics will be covered in part 3 of this series.

Judy Borsher, CPA, MBA, CGMA, CITP, MCT, is principal of SCG Training & Consulting Corporation. Contact her via e-mail at [email protected].

L E A D E R S H I P

BLI e press ON-DEMAND VIDEO COURSESLEADERSHIP PACKAGEmacpa.org/bliexpress

For group sales discounts call Laura Dorsey-Shaner at 443.632.2334 or [email protected].

50+CPE credits per year for

$195

Collaborate with your team from anywhere, using Microsoft Office 365

Sign up for a free trial.

Business strategy should drive IT, not the other way aroundBY BILL SHERIDAN, CAEEditor’s note: This article originally appeared in the MACPA’s blog, CPA Success.

HIGH-TECH SOLUTIONS

I don’t know a lot, but I know this much: Technological advances are changing our world and everything in it — including our jobs, our organizations, and our professions.

Because of that, I also know this: A lot of organizations are making a potentially crippling mistake: They’re putting IT in charge of technology.

On second thought, that’s a really simplistic way of stating the problem.

Here’s a better way:

Too often, IT departments are left to determine the technological strategies of their organizations on their own. That’s a huge mistake. Here’s why.

Technology does some incredibly cool things these day. Life-changing things. And we’re way too quick to assume that we must put these cool things to work in our organizations.

Just because we can, though, doesn’t mean we should.

Technology isn’t a strategy. It’s a means to an end. Technology helps an organization achieve its goals. It shouldn’t be the goal itself.

There are a lot of really cool gadgets and tools out there, and we’re seduced into thinking we need to use them all. We don’t.

What we need to do is ask ourselves a simple question: Will these tools help us achieve our goals?

“Technology is just a tool,” said Donny Shimamoto, managing director of IntrapriseTechKnowlogies and a leading AICPA technology volunteer, at the 2014 CCH User Conference. “Determine your business needs first, then choose a tool. Sometimes, technology isn’t the right tool.”

In other words, Shimamoto said, “a good IT strategy looks at the firm’s goals and envisions how IT will support that.”

Imagine that. IT decisions should be driven by the business, not the

technology. “High-performing firms see technology as a strategic enabler,” Shimamoto said.

That leads to Shimamoto’s four keys to technology success. Technology, he said, isn’t about gadgets and gizmos. It’s about these four formulas:

• Automated and efficient processes equal improved execution and profitability.

• Improved work processes equal increased employee satisfaction.

• Better workflow and project management equal reduced risk.

• Higher quality of service equals increased client satisfaction.

Are your technology efforts centered on these things?

If not, maybe you’re not as tech-savvy as you think you are.

41JANUARY 2015

STATEMENT42

macpa.org/cpexpress

CPExpress Our most popular online self-study training.

The new AICPA CPExpress now offers 900+ credit hours.

MEMBERS: $221 (Renew for $170)

NON-MEMBERS: $457

CPEanywhere

anytime

A copy of Windows 8 Pro or Microsoft Office 2013 Pro given away at every MACPA featured event.BROUGHT TO YOU BY

Put your

BUSINESS CARD

in the JAR at the

REGISTRREGISTRATION TABLE.

TO ENTER:

or

MICROSOFT OFFICE 2013 PRO

WINDOWS 8 PRO

WIN

Jon Coonan has joined the professional staff of Stoy, Malone &

Company, P.C. He will provide auditing and assurance services

as well as tax preparation for a wide range of individual and

corporate clients.

Liz Cullens, CPA, has been promoted to manager

with Berman Goldman & Ribakow LLP.

Sheldon Dagurt, CPA, who is of counsel to the

Baltimore-based law firm Fedder and Garten,

P.A., has joined the board of directors of the MPT

Foundation, Inc., the 501(c)(3) fundraising affiliate

of Maryland Public Television.

Diana DeWitt, CPA, a principal at Gross, Mendelsohn &

Associates and a nationally recognized expert on overhead rate

audits, presented a seminar for the National Highway Institute

on Sept. 9-10 in Montana. The two-day advanced course was

titled, “Using the AASHTO Audit Guide for the Development of

A/E Consultant Indirect Cost Rates.”

Margaret E. Eldridge, CPA, MBA, tax supervisor at the

Hanover office of Smith Elliott Kearns & Company, LLC, has

been awarded the designation of Certified Specialist in Estate

Planning by the National Institute for Excellence in Professional

Education.

Barry Fields, CPA, MST, has been promoted to

manager with Bormel, Grice & Huyett, P.A.

Karin Lundquist, CPA, senior manager at CohnReznick, has

been selected as recipient of The Daily Record’s 2014 Leading

Women Award, which honors Maryland women 40 years of age

or younger for the accomplishments they have made so far in

their careers.

Anna Vitale Lybrook, CPA, a shareholder of Stoy,

Malone & Co., P.C., has been re-elected treasurer

of the Ed Block Courage Award Foundation.

She also serves as a member of the Executive

Committee. The Foundation is dedicated to raising awareness

and prevention of child abuse, and to ultimately break the cycle

of abuse.

Laura Quinn, CPA, has joined the accounting

and auditing department at Bormel, Grice &

Huyett, CPAs.

Elizabeth Renna, CPA, a senior manager at Balsamo, Stewart,

Lutters & Ruth, P.A. of Bel Air, has passed the CPA exam to

become a licensed Certified Public Accountant in Maryland.

Maria Sevilla, CPA, has been promoted to in-charge accountant

with DeLeon & Stang, CPAs and Advisors.

Becky Spezzano, CPA, has joined the audit

and accounting team at Gross, Mendelsohn &

Associates, P.A., as a semi-senior accountant.

Chris Stang, a CPA Candidate member of the MACPA, has

been promoted to in-charge accountant with DeLeon & Stang,

CPAs and Advisors.

Greta Tosi-Miller, CPA, market managing partner

with Dixon Hughes Goodman, and Brian Israel,

CPA, the firm’s business development executive,

have been honored with SmartCEO’s Power

Player Award.

Kate Vasiliev, MS, CPA, has been promoted to

manager with Berman Goldman & Ribakow LLP.

NEWS & VIEWSMEMBER NOTESMEMBER NOTES

43JANUARY 2015

FIRM NOTESAskey, Askey & Associates, CPA, LLC, has announced a

strategic business combination with the accounting practice

operated by E. Wayne Richardson, CPA, PA, located in Waldorf.

This combination will significantly expand the accounting

and tax services and continue to build the strengths of both

companies. The strategic business combination will continue

business operations as Askey, Askey & Associates, CPA, LLC.

Berman Goldman & Ribakow LLP is celebrating its 75th

anniversary. The three founding partners opened an office in

the District of Columbia in 1953 to service the growing practice

in Washington and suburban Maryland and Virginia. Later, in

1973, Berman Goldman & Ribakow merged the Baltimore and

D.C. offices into their own building in Columbia, Md. All three

of the partners have since passed away, but their precepts of

rendering the highest quality service to clients live on in their

name and in the present partners and staff. The firm maintains

its presence in Columbia to this day.

Bormel, Grice & Huyett, P.A., has been named one of the Best

Accounting Firms to Work For in 2014. The annual list of “Best

Accounting Firms to Work For” was created by Accounting

Today and Best Companies Group.

Councilor, Buchanan & Mitchell, PC, has expanded its

professional services division. In addition to tax planning and

preparation, auditing, and accounting, CBM offers a wide range

of services to help professional service providers meet their

short-term goals and attain long-term growth and sustainability.

The firm also has expanded its not-for-profit practice. It now

boasts nine partners and more than 50 professional and

administrative staff.

Dixon Hughes Goodman has been named one of Greater

Washington’s Healthiest Employers by the Washington Business

Journal. At an awards luncheon on Sept. 18, the firm was named

one of the top 10 healthiest employers in Washington, D.C.,

among companies of its size.

Dixon Hughes Goodman has been named the Tech Council

of Maryland’s 2014 Outstanding Place to Work. The award

focuses on passion and creating a positive and productive work

environment.

Gross, Mendelsohn and Associates has been named to INSIDE

Public Accounting’s “IPA 200 Fastest-Growing,” a list of the

fastest-growing firms in the country. The firm also ranked No.

160 on INSIDE Public Accounting’s “IPA 200,” a list of the

largest CPA firms in the country.

U.S. News – Best Lawyers® has awarded Miller, Miller & Canby

a “First Tier” ranking in the Washington, D.C., area in Eminent

Domain and Condemnation Law for a third consecutive year.

First Tier is the highest rank given. The rankings are based on a

comprehensive process that includes the collection of client and

lawyer evaluations, rigorous peer review from leading attorneys

in the field, and review of additional information provided by

law firms as part of a formal submission process.

Miller, Miller & Canby has gained accreditation from the

Department of Veterans Affairs to provide counsel and

representation to veterans and their families. The firm advises

veterans on the levels of financial benefits for which they may

qualify and guides them through the often complex regulations

and claims process.

Smith Elliott Kearns & Company, LLC, has been included in

INSIDE Public Accounting’s fifth annual ranking of the nation’s

largest accounting firms, the IPA 200. The list is one of the

most comprehensive lists of its kind and is the most current

snapshot of the financial and operational health of accounting

firms. SEK&Co ranks as the 179th largest accounting firm in the

United States.

STATEMENT44

CFOs, CEOs, & CONTROLLERS WHO ROCK.

MACPA.ORG/FORUMSTRATEGIC LEARNING POWERED BY

It’s not just about keeping score or tracking money. You are setting corporate strategy.Business plans. Marketing. Real estate. HR. Legal. IT. It’s on your shoulders. The Financial Leaders Forum is for you.

FinancialLeaders Forum

2014-2015 SERIES

POWERED BY:

1/22/15 “Why Don’t We Say Yes? 21st Century Negotiating” (Presented by Greg Conderacci)

3/26/15 “The C-Suite: 10 Powerful Tools for Getting There and Staying There!” (Presented by Jennifer Elder, CPA)

5/28/15 “Lean Management in a Lean Economy” (Presented by Frank Ryan, CPA)

WELCOME, NEW AND REINSTATED CPA CANDIDATE MEMBERS!

WELCOME, NEW AND REINSTATED MACPA MEMBERS!

MEMBER SERVICES

ANNE ARUNDEL CHAPTERJEAN M. CUBELLOLYNITA MILLER

CAPITAL AREA CHAPTER RAFAEL B. CABELLOLAILAH E. MADISONWIESAM SHEIKHIAMY J. STAKE

CENTRAL MARYLAND CHAPTERRYAN T. ARMACOSTSALOMEY A. AWUKU

ANNE ARUNDEL CHAPTERDANIEL J. BORCIK, CPAMIMI L. DAVIS, CPAMBAYANG D. DIOP, CPA, MBAJOHN J. DOWD, CPAWINSTON A. D’SOUZA, CPA, CGMA, MBABRIAN P. FLOOD, CPA, MBANICOLE HAMRICK, CPAGARY D. HELDT JR, CPACHARLES S. HOWE, CPATHIT M. LWIN, CPAROBERT MORRIS, CPAALFRED A. PIETSCH, CPACARMEN G. PRINSTON, CPAANNE M. SESSO, CPAJAMES B. STITCHER, CPA, MBAANGELA M. TREFF, CPA, CFP

CAPITAL AREA CHAPTERTRACY L. BLACK, CPA, MBAKEVIN S. BURKHOLDER, CPANORMAN L. CARTER, CPAANTHONY J. COLA, CPAJOSEPH T. GARDEMAL III, CPA, ABV, CVAEDWARD J. GILHOOLY, CPAKAREN Q. HAWKINS, CPA, CGFMPETER J. HOGARTH, CPA, MSAELENA HOXHA, CPAANDREW J. JAIME, CPAINGRID P. JOHN, CPA, MBAMAGLOIRE A. KEITA, CPABARBARA M. KROMER, CPANERLEY LAUSIER, CPA, MFACAITLIN H. MIGLIORINI, CPAWILLIAM OLUKOYA, CPASUZANNE PAHOLSKI, CPADANIEL S. ROSEFELT, CPA, J.D.NATALIE SAUNDERS, CPAPATRICK L. SOUTHERLAND, CPA

SUNG CHOIBRISTOL COLESAMANTHA G. DEANGLERJAMES E. HENDERSON JR.PHILIP KAHNNOREEN KAMINSKIADAM K. LANGEVICTORIA A. MCNAIR, BSMATTHEW A. MILLERLYNAE MORRISONJENNIFER C. NARGIZMAYA C. PAGGETT

CALEB J. STACK, CPATHOMAS P. STEELEY JR., CPAELLYN B. TANENBERG, CPA, JD, ESQ.DEREK TORTON, CPAJITANSHU S. TRIVEDI, CPA, MBA, MSCJON T. WOLZ, CPAMINGFEI ZHANG, CPA

CENTRAL MARYLAND CHAPTERRANDY M. ALLEN, CPALEONARD M. AUMILLER, CPAAMY S. BALDWIN, CPARACHEL M. BAUDER, CPACHRISTINA M. BELTRAM, CPAJEFF M. CARTER, CPALESLIE M. CORNELIUS, CPATHOMAS J. CROUCH, CPA, MSLEIB DAVIDS, CPANEIL H. DEMCHICK, CPA, CVA, CBA, CRRADANIEL C. DIRESO, CPADEBORAH L. DOBROVOLNY, CPAJUSTIN DORSETT, CPAASHLEY DOWN, CPAMELANIE M. EDMONDSON, CPAMARTINA D. EVANS, CPAALLISON D. EVERLY, CPAPAUL M. GERATY, CPASTEVEN D. GRAF, CPAJOSEPH A. HAEFFNER, CPADENIZEJOICE D. HAMMOND, CPABONITA B. HEARN, CPAMONTEL R. HILL, CPAKAREN D. HOLWECK, CPAJESSICA V. HUGHES, CPAELIZABETH HYMEL, CPA

AMY J. PRICEARUSHI SACHDEV

EASTERN SHORE CHAPTERMATTHEW R. BOSSLE

MID-MARYLAND CHAPTEREMILY B. DEMMONS

SOUTHERN MARYLAND CHAPTERTONYA V. PRESSLEY

OUT OF STATEKATHY L. GOINS

SUSAN M. JETER, CPARONALD M. KATZEN, CPARICHARD J. KUCZAK, CPASHARON M. LEE, CPADAVID D. LOUDEN, CPANICOLE B. LUKASIK, CPAJOHN T. MACK, CPAASHLEY A. MARTIN, CPAJAMES C. MCINTYRE, CPARICHARD S. MELLO, CPAKEVIN A. MICHEL, CPA, MBA, CMA, CFMPATRICIA A. MILEY, CPARUSSELL C. MONCURE, CPA, MBA, CGMAPATRICIA S. MORLEY, CPABARBARA H. MORRIS, CPASHATERRA M. NEELY, CPAJUNGWHAN T. OH, CPAREGINALD E. PALMORE, CPACLIFF PETENBRINK, CPABERNADETTE T. POEHLER, CPALAURA J. QUINN, CPASETH D. RABINOVITZ, CPARICHARD A. RATE JR., CPAJOHN R. RESPESS, CPA, MBAEMMA T. ROMERO, CPAIRA ROSENBLOOM, CPAHOLLY L. SHIPLEY, CPAMICHAEL R. SMITH, CPALINDA L. STAPF, CPADAVID B. TERRY, CPASHAYDRA TISDALE-ROBINSON, CPAPHILIP N. WARSAL, CPA, MBAROBERT G. WATCHORN, CPAJOHN C. WELLING, CPAKATHRYN WINWARD, CPATIANA D. WYNN, CPARICHARD N. YALE, CPA

EASTERN SHORE CHAPTERTED A. BROOKS, CPAMONICA R. GRAVES, CPALESLI E. LATORRE, CPAKATIE M. ROUSE, CPAKAREN L. TOBAT, CPA

MID-MARYLAND CHAPTERTHERESA M. BECKER, CPAEARL CREHAN III, CPAMANO S. KOILPILLAI, CPADAVID T. MCGINLEY, CPALISA M. MORGAN, CPARONALD E. PECK JR., CPAEMILY S. RADAKER, CPATINA M. SEYMOUR, CPAERIC C. SMITH, CPA, MBAMELANIE L. THOM, CPA

SOUTHERN MARYLAND CHAPTERREGINA D. CHAVIS, CPAAMANDA C. HANSON, CPA

WESTERN MARYLANDRYAN M. WOOLSLAYER, CPA

OUT OF STATEANGOSOM H. ABRAHA, CPA, EA AND MSTMARIO BECCONE, CPAGOKSEN BUPP, CPAJOEL W. COHN, CPAJEFFREY M. DALEY, CPAKEVIN ELLIS, CPAANTHONY F. GIOFFRE, CPAGARY MERRON, CPAKRISTIE A. STRUBECK, CPA, CRPCMATTHEW C. VARVARIS, CPA

STATEMENT46

MEMBER SERVICES

47JANUARY 2015

NYPN is an organization committed to connecting new / young professionals to the MACPA, protecting the integrity of the

profession, and helping new CPAs and CPA candidates achieve their goals. NYPN is a place where new CPA professionals

can make contacts in the profession, get involved in the community and get the support they need to be successful. The

requirements to be a part of NYPN are CPA candidates (working on or having achieved the 150-hour threshold) or current CPAs

under the age of 40 and/or licensed for fewer than five years. Learn more at macpa.org/NYPN.

1. Camaraderie 6. Commitment2. Insight 7. Charity3. Professionalism 8. Community4. Development 9. Responsibility5. Growth 10. FUN!

What is NYPN?

TOP 10 REASONS TO GET INVOLVED:

GET TO KNOW OUR NYPN ADVISORY BOARD AND FIND OUT FIRST-HAND WHAT WE’RE ALL ABOUT:

Chair: Debra Hale, Weil, Akman, Baylin & Coleman, P.A.: [email protected]

Vice chair / chair-elect: Stephen Hohne, Hertzbach & Company: [email protected]

Secretary / treasurer: Kuo Lee, CrossCountry Consulting: [email protected]

Past chair: Nick Hollander, L&H Business Consulting: [email protected]

LEADERSHIP BOARD

Activities / professional development chair: Jennie Hammett, Gorfine, Schiller & Gardyn: [email protected]

Public Relations / outreach chair: Barrett Young, The Green Abacus: [email protected]

At-large member: Harry Sturgis, Weyrich, Cronin & Sorra Chtd.: [email protected]

At-large member: Katy Koza, Grant Thornton: [email protected]

Get involved

QUALITY CPA FIRM WISHES TO ACQUIRE PRACTICE OR ACCOUNTS in Baltimore/Washington/

Annapolis area, or possible association with retirement-minded

practitioner. “Top Dollar Paid.” Reply in strictest confidence to

410.539.7100, or File No. 63-87.

SANTOS POSTAL & COMPANY, PC, a nationally

recognized CPA firm located in Rockville, MD, is enhancing its

organic growth through the acquisition or merger of existing

practice or accounts in the Washington metropolitan area. Reply

in confidence to File No. 28-91.

THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of tax and

accounting practices in North America. We have a large pool

of buyers, both individuals and firms, looking for practices to

purchase. We also have the experience to help you find the

right fit for your firm, negotiate the best price and terms and

get the deal done. We welcome the opportunity to talk to

you about our risk-free and confidential services. For more

information please call Bradley Holmes with the APS Holmes

Group at 1-800-397-0249 or email [email protected].

INTERESTED IN BUYING A PRACTICE? See

local and nationwide listings at www.AccountingPracticeSales.

com and register for free email updates or call us at 1-800-397-

0249.

MARYLAND PRACTICES FOR SALE: Annapolis

MD CPA Partnership Opportunity with revenues for sale between

$375,000 and $600,000; loyal client base of high-net-worth

individuals as well as large number of businesses. Strong tax

experience a must. For more information call us at 800-397-

0249. View listing details and register for free email updates at

www.AccountingPracticeSales.com.

RETIRE/SEMI-RETIRE NOW! RESURRECCION CPA FIRM, LLC: CPA/19yrs/

Towson-looking to grow my quality client base (tax, accounting,

payroll, etc.) by acquiring some or all your accounts ASAP so you

can retire/semi-retire now. Let’s discuss-c:443.765.2775.

mergers & acquisitions

CPA firm in Queen Anne’s County, Maryland, currently has a

SEASONAL TO FULL-TIME CPA OR CPA CANDIDATE POSITION available. Applicant is

required to have at least 5 years of experience in personal and

corporate tax preparation and financial statement write-up

work.

Send resume and salary requirements to accountantopening@

yahoo.com.

EXPERIENCED AUDIT AND ACCOUNTING SUPERVISOR/MANAGER WANTED for a CPA

firm located in Baltimore County. You will be responsible for

preparation and review of audit, compilation and review work

papers and financial statements, and will assist with the overall

accounting services offered by the firm. You will be working

directly with the partners.

We offer a competitive compensation package including

medical, dental, 401k and profit sharing, life insurance,

generous paid vacation and holidays, casual dress, free

parking, year-end bonus and overtime.

The firm continues to grow each year.

Requirements:

- BS/BA in Accounting or related field;

- 7 to 15 years of experience preferably in public accounting;

- team player;

- excellent verbal and written communication skills;

- ProSystem Engagement a plus.

Email resume with cover letter and salary requirements to:

[email protected].

CBIZ AND MAYER HOFFMAN MCCANN P.C. (MHM) are together ranked as one of the top ten

accounting services providers in the United States. With

more than 35 offices and more than 2,000 professionals, we

serve the country’s growing mid-market public and private

businesses. MHM provides high quality audit and attest

services while closely associated CBIZ provides all other

accounting, tax and consulting services.

CLASSIFIEDSjob openings

STATEMENT48

We are seeking to hire audit and tax professionals to join our

team nationwide. The ideal candidates will have at least two

years of experience in a tax and audit environment. There are

opportunities for highly motivated individuals to establish their

career and to position themselves for professional growth and

development.

Please visit www.cbiz.jobs to apply online or email our Talent

Team at [email protected].

Equal Opportunity Employer committed to employment of

Females, Minorities, Persons with Disabilities and Veterans.

An E-Verify Employer.

ACCOUNTANT- ROCKVILLE CPA FIRM SEEKS CPA with 8 years recent public accounting

experience to work part-time. Individual will prepare mainly

individual income tax returns. Experience with UltraTax CS

& QuickBooks a plus. This is a permanent part-time position

with flexible hours. Please send resume to monteloeb@

mloebandassoc.com.

49JANUARY 2015

WANT TO SUBMIT A CLASSIFIED AD?To submit a classified ad, please visit macpa.org/submitclassifieds, or contact Amy Moran at 443.632.2319, or by email [email protected].

CONFIDENTIAL ADS: Replies to confidential ads will be addressed to the file number in care of:Amy Moran MACPA901 Dulaney Valley Road, Suite 800Towson, MD 21204Properly addressed replies will be forwarded to the advertiser unopened. Replies that are not properly addressed will be opened only to determine contents and then forwarded to the advertiser.

CLASSIFIEDS

1/9/15 1/9/15 WEBCAST: Engagement Letters - A First Line of Defense 1 12 p - 1 p $39 $39 11W010 Online Webcast, Internet

1/21/15 1/21/15 CPA Firm M&A Workshop: Comprehensive Options for a Sale, Merger, or Independence

4 8 a - 11:30 a $75 $150 111003 MACPA Towson Center, Towson

1/22/15 1/22/15 Incurred Cost Audits of Government Contractors and Subcontractors

8 8 a - 3:30 p $295 $395 110044 MACPA Columbia Center, Columbia

1/30/15 1/30/15 Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know

4 8 a - 11:30 a $150 $200 111217A MACPA Columbia Center, Columbia

1/30/15 1/30/15 Purchasing, Inventory, and Cash Disbursements: Common Frauds and Internal Controls

4 12 p - 3:30 p $150 $200 111218A MACPA Columbia Center, Columbia

2/9/15 2/9/15 AACC: Health Care Reform 4 2 p - 6 p $40 $50 140602 TBD

2/27/15 2/27/15 GASB Statement No. 68 Audit and Accounting Workshop 4 8 a - 11:30 a $150 $200 111219A MACPA Columbia Center, Columbia

2/27/15 2/27/15 Frequent Frauds Found in Governments 4 12 p - 3:30 p $150 $200 111220A MACPA Columbia Center, Columbia

4/17/15 4/17/152015 GOVERNMENT AND NOT-FOR-PROFIT CONFERENCE 8 8 a - 5 p $250 $350 121000

University of MD University College Inn & Conference Center, College Park

5/18/15 5/18/15 Auditing Employee Benefit Plans 8 8 a - 3:30 p $295 $395 111212A The Loyola Graduate Center, Timonium

5/19/15 5/19/15 AICPA’s Annual Update: Top 12 Governmental and Not-for-Profit Accounting and Auditing Issues Facing CPAs

8 8 a - 3:30 a $295 $395 111213A Mount Continuing Studies Center, Frederick

1/5/15 1/5/15 Budgeting, Forecasting, & Business Techniques for Accounting and Finance Professionals

8 8 a - 3:30 p $330 $480 130024 The Loyola Graduate Center, Timonium

1/5/15 1/5/15 WEBCAST: Microsoft Office 2010: Excel, Word, Outlook and Windows 7 Tips

1 11 a - 12 p $39 $39 17W020 Online Webcast, Internet

1/6/15 1/6/15 WEBCAST: Blog 101: First Steps to Stardom 1 12 p - 1 p $39 $39 17W091 Online Webcast, Internet

1/9/15 1/9/15 WEBCAST: Engagement Letters - A First Line of Defense 1 12 p - 1 p $39 $39 11W010 Online Webcast, Internet

1/14/15 1/14/15 Establishing an Effective Compliance Program (GVC) 2 8 a - 10 a $40 $50 184019 MACPA Columbia Center, Columbia

1/20/15 1/20/15 Applying Ethics in the Real World 4 8 a - 11:30 a $115 $215 110045 The Loyola Graduate Center, Timonium

1/20/15 1/20/15 WEBCAST: Employee Motivation and Engagement: Driving Results Without Driving Your Team Crazy

3 8 a - 11 a $105 $105 17W0034 Online Webcast, Internet

1/22/15 1/22/15 Financial Leaders Forum: Why Don’t We Say Yes? 21st Century Negotiating

4 8 a - 12 p $200 $250 171004 The Loyola Graduate Center, Timonium

1/29/15 1/29/15 WEBCAST: The Eight Hour MBA 8 9 a - 5 p $245 $245 17W143 Online Webcast, Internet

BUSINESS & INDUSTRY

Upcoming Events & Courses

DATE COURSE TITLE CPE TIME MEMBER NON-MEM. EVENT ID LOCATION

ACCOUNTING & AUDITING

STATEMENT50



1/30/15 1/30/15 WEBCAST: Brand You: How to be a leader and boost your career with a little help from social media

1 1 p - 2 p $39 $39 17W111 Online Webcast, Internet

1/30/15 1/30/15 WEBCAST: Twitter 101: Changing Your World 140 Characters at a Time


2/3/15 2/3/15 WEBCAST: Key Financial and Economic Issues Facing the Financial Executive


2/12/15 2/12/15 WEBCAST: From Technical Expert to Financial Leader: How to Make a Critical Leap in Your Career Development




2/19/15 2/19/15 WEBCAST: Linkedin 101- Basics and Beyond 1 2 p - 3 p $39 $39 17W121 Online Webcast, Internet







3/24/15 3/24/15 Microsoft Excel (2013); Outlook (2013); Word ( 2013); Adobe Acrobat and Windows 8 - Best Practices for CPAs




3/26/15 3/26/15 Financial Leaders Forum: Staying in the C-Suite: 10 Skills to Keep You There

4 8 a - 12 p $200 $250 171005 MACPA Columbia Center, Columbia

3/27/15 3/27/15 Ethics Update for CPAs in Business 4 - $115 $215 111002 TBD



4/24/15 4/24/15 2015 FORENSIC VALUATION CONFERENCE 8 8 a - 5 p $279 $379 121013 Hilton Baltimore BWI Airport, Linthicum

4/29/15 4/29/15 Excel Pivot Tables in-depth, Data Analysis Functions and Tips 8 8 a - 3:30 p $330 $480 130028 MACPA Columbia Center, Columbia

4/30/15 4/30/15 Outlook Update and Best Practices for CPAs 4 12 p - 3:30 p $150 $200 130030 MACPA Columbia Center, Columbia

5/7/15 5/7/152015 BUSINESS AND INDUSTRY CONFERENCE 8 8 a - 5 p $0 $0 121011

Turf Valley Resort & Conference Center, Ellicott City




1/9/15 1/9/15 WEBCAST: Applying Ethics in the Real World 4 12 p - 3:30 p $125 $125 17W096 Online Webcast, Internet


2/9/15 2/9/15 WEBCAST: Applying Ethics in the Real World 4 8 a - 11:30 a $125 $125 17W116 Online Webcast, Internet




1/30/15 1/30/15 WEBCAST: Brand You: How to be a leader and boost your career with a little help from social media










2/19/15 2/19/15 WEBCAST: Linkedin 101- Basics and Beyond 1 2 p - 3 p $39 $39 17W121 Online Webcast, Internet

















4/29/15 4/29/15 Excel Pivot Tables in-depth, Data Analysis Functions and Tips 8 8 a - 3:30 p $330 $480 130028 MACPA Columbia Center, Columbia







1/9/15 1/9/15 WEBCAST: Applying Ethics in the Real World 4 12 p - 3:30 p $125 $125 17W096 Online Webcast, Internet


2/9/15 2/9/15 WEBCAST: Applying Ethics in the Real World 4 8 a - 11:30 a $125 $125 17W116 Online Webcast, Internet



ETHICS

BVLS

EMPLOYEE BENEFITS

1/6/15 1/6/15 Update: Changes Maryland Elder Law (PFP Study Group) 2 9 a - 11 a $20 $100 182063 MACPA Towson Center, Towson

1/15/15 1/15/15 The Complete Guide to the Preparation of Form 1041 8 8 a - 3:30 p $295 $395 110036 MACPA Columbia Center, Columbia

1/15/15 1/15/15 WEBCAST: The Complete Guide to the Preparation of Form 1041

8 8 a - 3:30 p $245 $245 17WL31 LIVE- ONLINE WEBCAST, INTERNET

1/16/15 1/16/15 The Complete Guide to Preparing Forms 706 and 709 8 8 a - 3:30 p $295 $395 110037 MACPA Columbia Center, Columbia

1/16/15 1/16/15 WEBCAST: The Complete Guide to Preparing Forms 706 and 709




2/4/15 2/4/15 Forensic Accounting Investigations: Views from the Field - FVS Speaker Series

2 8:30 a - 10:30 a $50 $60 182062 MACPA Columbia Center, Columbia





2/27/15 2/27/15 GASB Statement No. 68 Audit and Accounting Workshop 4 8 a - 11:30 a $150 $200 111219A MACPA Columbia Center, Columbia




5/19/15 5/19/15 AICPA’s Annual Update: Top 12 Governmental and Not-for-Profit Accounting and Auditing Issues Facing CPAs

8 8 a - 3:30 a $295 $395 111213A Mount Continuing Studies Center, Frederick


1/22/15 1/22/15 Incurred Cost Audits of Government Contractors and Subcontractors



8 8 a - 3:30 p $330 $480 130024 The Loyola Graduate Center, Timonium

1/6/15 1/6/15 WEBCAST: Seven Secrets of Successful Business Communication



1/7/15 1/7/15 WEBCAST: Master Coach and Mentor - Valuing Your Emotional Intelligence


1/7/15 1/7/15 WEBCAST: The Finance and Accounting Organization as Strategist and Partner to the Business



STATEMENT52

FINANCIAL PLANNING

FRAUD & FORENSIC

GOVERNMENT / NOT-FOR-PROFIT

GOVERNMENT CONTRACTING

MANAGEMENT & LEADERSHIP



1/13/15 1/13/15 WEBCAST: Find a Need and Fill It: Your Key to Business Development


1/14/15 1/14/15 WEBCAST: Getting Things Done - Engaging People to Execute Effectively



1/15/15 1/15/15 WEBCAST: High Performance Time Management: Boosting Your Personal Energy


1/16/15 1/16/15 WEBCAST: How the Best Financial Executives Create High Performance Organizations


1/19/15 1/19/15 WEBCAST: Leadership and Generations: What Are They Thinking?

4 12 p - 3:30 p $125 $125 17W101 Online Webcast, Internet



1/20/15 1/20/15 WEBCAST: Get out of the Casket and up to the Podium 2 9 a - 11 a $79 $79 17W102 Online Webcast, Internet



1/21/15 1/21/15 WEBCAST: Listening For Leaders: Ask the Question, Discover the Need, Win the Trust




1/22/15 1/22/15 WEBCAST: MacGyvering: The Art of Being Resourceful in a Crisis


1/22/15 1/22/15 WEBCAST: FLF: Why Don’t We Say Yes? 21st Century Negotiating

4 8 a - 12 p $200 $200 17WL33 LIVE- ONLINE WEBCAST, INTERNET

1/23/15 1/23/15 WEBCAST: Strategic Focus for your practice: It’s not just bookkeeping anymore


1/26/15 1/26/15 WEBCAST: Motivating and Retaining Your Top Performers 3 12 p - 3 p $105 $105 17W106 Online Webcast, Internet

1/27/15 1/27/15 WEBCAST: Personality Styles in the Workplace 3 12 p - 3 p $105 $105 17W107 Online Webcast, Internet

1/28/15 1/28/15 WEBCAST: Succession Planning Developing Tomorrow’s Business Leaders Today


1/28/15 1/28/15 WEBCAST: Public Speaking: How to Speak with Presence 1 1 p - 2 p $39 $39 17W109 Online Webcast, Internet

1/29/15 1/29/15 WEBCAST: Selling for CPAs: Using Your Problem-Solving Skills to Promote Profitable Business Growth



2/2/15 2/2/15 WEBCAST: Giraffes of Technology: The Making of the 21st Century Leader


2/3/15 2/3/15 WEBCAST: Develop a Positive Work Culture for the iY Generation


2/4/15 2/4/15 WEBCAST: Lean Management in a Lean Economy 2 11 a - 1 p $79 $79 17W146 Online Webcast, Internet

2/4/15 2/4/15 Forensic Accounting investigations: Views from the Field - FVS Speaker Series


2/5/15 2/5/15 WEBCAST: Slaying the Energy Vampires And Boosting Your Performance




2/17/15 2/17/15 WEBCAST: Get out of the Casket and up to the Podium 2 12 p - 2 p $79 $79 17W119 Online Webcast, Internet

2/18/15 2/18/15 WEBCAST: Business Development: Distinctions Between Marketing and Sales







1/13/15 1/13/15 WEBCAST: Find a Need and Fill It: Your Key to Business Development







1/16/15 1/16/15 WEBCAST: How the Best Financial Executives Create High Performance Organizations


1/19/15 1/19/15 WEBCAST: Leadership and Generations: What Are They Thinking?




1/20/15 1/20/15 WEBCAST: Get out of the Casket and up to the Podium 2 9 a - 11 a $79 $79 17W102 Online Webcast, Internet



1/21/15 1/21/15 WEBCAST: Listening For Leaders: Ask the Question, Discover the Need, Win the Trust




1/22/15 1/22/15 WEBCAST: MacGyvering: The Art of Being Resourceful in a Crisis


1/22/15 1/22/15 WEBCAST: FLF: Why Don’t We Say Yes? 21st Century Negotiating


1/23/15 1/23/15 WEBCAST: Strategic Focus for your practice: It’s not just bookkeeping anymore


1/26/15 1/26/15 WEBCAST: Motivating and Retaining Your Top Performers 3 12 p - 3 p $105 $105 17W106 Online Webcast, Internet

1/27/15 1/27/15 WEBCAST: Personality Styles in the Workplace 3 12 p - 3 p $105 $105 17W107 Online Webcast, Internet

1/28/15 1/28/15 WEBCAST: Succession Planning Developing Tomorrow’s Business Leaders Today


1/28/15 1/28/15 WEBCAST: Public Speaking: How to Speak with Presence 1 1 p - 2 p $39 $39 17W109 Online Webcast, Internet




2/2/15 2/2/15 WEBCAST: Giraffes of Technology: The Making of the 21st Century Leader


2/3/15 2/3/15 WEBCAST: Develop a Positive Work Culture for the iY Generation


2/4/15 2/4/15 WEBCAST: Lean Management in a Lean Economy 2 11 a - 1 p $79 $79 17W146 Online Webcast, Internet

2/4/15 2/4/15 Forensic Accounting investigations: Views from the Field - FVS Speaker Series


2/5/15 2/5/15 WEBCAST: Slaying the Energy Vampires And Boosting Your Performance




2/17/15 2/17/15 WEBCAST: Get out of the Casket and up to the Podium 2 12 p - 2 p $79 $79 17W119 Online Webcast, Internet





53JANUARY 2015

STATEMENT54


2/23/15 2/23/15 WEBCAST: Leadership: Coaching to Develop & Empower - Accountability, Delegation and Dialogue


2/25/15 2/25/15 WEBCAST: Financial Leadership Unleashed 1 9 a - 10 a $39 $39 17W124 Online Webcast, Internet





3/5/15 3/5/15 WEBCAST: Leadership: Coaching to Develop and Empower - Accountability, Delegation and Dialogue


3/9/15 3/9/15 WEBCAST: Transitions to Leadership 3 10 a - 1 p $105 $105 17W129 Online Webcast, Internet

3/11/15 3/11/15 WEBCAST: Leadership - Social Media Influence on Decision Making and Time Mgmt





3/18/15 3/18/15 WEBCAST: Leadership - Which Style Fits You 1 2 p - 3 p $39 $39 17W134 Online Webcast, Internet

3/19/15 3/19/15 WEBCAST: Slaying the Energy Vampires - And Boosting Your Performance


3/23/15 3/23/15 WEBCAST: Master Coach and Mentor - Valuing Your Emotional Intelligence


3/24/15 3/24/15 WEBCAST: Seven Secrets of Successful Business Communication






3/26/15 3/26/15 WEBCAST: FLF: Staying in the C-Suite: 10 Skills to Keep You There




3/30/15 3/30/15 WEBCAST: Get out of the Casket and up to the Podium 2 10 a - 12 p $79 $79 17W141 Online Webcast, Internet





1/9/15 1/9/15 2015 ACCOUNTING EDUCATORS CONFERENCE 8 8:30 a - 4:30 p $120 $220 121001 Sheraton Columbia Hotel, Columbia



1/29/15 1/29/15 CPA DAY 2 7:30 a - 1:30 p $0 $0 181000 Governor Calvert House, Annapolis

2/4/15 2/4/15 Forensic Accounting Investigations: Views from the Field - FVS Speaker Series








MANAGEMENT & LEADERSHIP (CONT.)

SPECIALIZED KNOWLEDGE


5/4/15 5/4/15 WEBCAST: The Anticipatory CPA - The BLI Author Series with Dan Burrus


5/4/15 5/4/15 The Anticipatory CPA - The BLI Author Series with Dan Burrus 4 9 a - 12:30 p $195 $295 191014 Hilton Baltimore BWI Airport, Linthicum

1/8/15 1/8/15 WEBCAST: MACPA’s 1040 Fast Track - A Comprehensive Individual Tax Seminar for CPAs and Their Staff


1/8/15 1/8/15 MACPA’s 1040 Fast Track - A Comprehensive Individual Tax Seminar for CPAs and Their Staff

16 8 a - 4 p $350 $450 211002Loyola University Maryland Graduate Ctr Columbia Campus, Columbia

1/9/15 1/9/15CAC: State Tax Update 4 8 a - 12 p $60 $70 140501

Johns Hopkins University - Montgomery County Campus, Rockville

1/12/15 1/12/15 AACC: Multi-State Tax Update 4 2 p - 6 p $40 $50 140601 Blue Dolphin Seafood Bar & Grill, Gambrills








1/20/15 1/20/15 QuickBooks 2013 Comprehensive Training 16 8 a - 3:30 p $660 $810 130036 MACPA Columbia Center, Columbia

2/13/15 2/13/15 WEBCAST: The Rise of the Digital CPA 1 11 a - 12 p $39 $39 17W144 Online Webcast, Internet

2/25/15 2/25/15 Excel Advanced Features, Functions, Pivot Tables and the Macro Recorder




4/29/15 4/29/15 Excel Pivot Tables In-depth, Data Analysis Functions and Tips 8 8 a - 3:30 p $330 $480 130028 MACPA Columbia Center, Columbia

4/30/15 4/30/15 Word Productivity Features and Time-Saving Tips 4 8 a - 11:30 a $150 $200 130029 MACPA Columbia Center, Columbia




5/4/15 5/4/15 WEBCAST: The Anticipatory CPA - The BLI Author Series with Dan Burrus


5/4/15 5/4/15 The Anticipatory CPA - The BLI Author Series with Dan Burrus 4 9 a - 12:30 p $195 $295 191014 Hilton Baltimore BWI Airport, Linthicum

1/8/15 1/8/15 WEBCAST: MACPA’s 1040 Fast Track - A Comprehensive Individual Tax Seminar for CPAs and Their Staff


1/8/15 1/8/15 MACPA’s 1040 Fast Track - A Comprehensive Individual Tax Seminar for CPAs and Their Staff

16 8 a - 4 p $350 $450 211002Loyola University Maryland Graduate Ctr Columbia Campus, Columbia

1/9/15 1/9/15CAC: State Tax Update 4 8 a - 12 p $60 $70 140501

Johns Hopkins University - Montgomery County Campus, Rockville

1/12/15 1/12/15 AACC: Multi-State Tax Update 4 2 p - 6 p $40 $50 140601 Blue Dolphin Seafood Bar & Grill, Gambrills








1/20/15 1/20/15 QuickBooks 2013 Comprehensive Training 16 8 a - 3:30 p $660 $810 130036 MACPA Columbia Center, Columbia

2/13/15 2/13/15 WEBCAST: The Rise of the Digital CPA 1 11 a - 12 p $39 $39 17W144 Online Webcast, Internet

2/25/15 2/25/15 Excel Advanced Features, Functions, Pivot Tables and the Macro Recorder




4/29/15 4/29/15 Excel Pivot Tables In-depth, Data Analysis Functions and Tips 8 8 a - 3:30 p $330 $480 130028 MACPA Columbia Center, Columbia

4/30/15 4/30/15 Word Productivity Features and Time-Saving Tips 4 8 a - 11:30 a $150 $200 130029 MACPA Columbia Center, Columbia


TAX

TECHNOLOGY

55JANUARY 2015

Find interns here.

Announcing the all-new website connecting

accounting students, CPA candidates, and

the organizations looking for talent.

VISIT TOMORROW’S CPA ONLINE:

macpa.org/tcpato see all the great resources available to the next generation of our profession.

UNIVERSAL SOFTWARE SOLUTIONS, INC. TEL: (410) 358-8851 P. O. BOX 5866 www.ussi-md.com BALTIMORE MD 21282-5866 U S S

MARYLAND PERSONAL PROPERTY SOFTWARE 2015 EDITION

Prepares and Prints Maryland Personal Property Tax Returns

Please send one copy of MD “TPP” - 2015 edition to:

Name_____________________________________________________________________________________________ Company_________________________________________________________________________________________ Address__________________________________________________________________________________________ City/Sta te /Zip__________________________________________________Telephone_________________________

Md residents: Add 6% sales tax.

SPECIAL 50% DISCOUNT FOR FIRST TIME USERS:

$125.00 PLUS 6% MD sales tax. This is a full working edition except it does

not convert prior year data. Enjoy the time saving and ease of use. Print professional looking returns.

For more infor-mation call : 410-358-8851

2015 Edition — $250.00 plus 6% MD Sales Tax.

Features: Multi-User-Network Compatible. Easy installation. Full screen editing and Pull-Down menus make data

entry simple and efficient. Field marking for review and verification. Data files can be stored on any drive/folder. Error checking routines prevent common mistakes. On screen totals - Updated with each entry. Prints government approved returns on plain paper: Form

1—Corporations, LLC’s, LLP, etc.; AT3-51— Partnerships and Sole Proprietorships; AT3-75— Bank, Saving & Loans and Trust Companies, AT3-53 Rental Property.

Multiple location capability for all entities. Assessment calculations with user adjustable tax rates and

assessments. On screen print preview. Print from print menu or Preview screen. Print options - Entire return, Batched returns, single and

multiple pages. Prepares and prints a collated signature ready return. Prints Extensions-Selected Client(s) or all Unfiled

Returns. Prints client lists - All clients, filed returns and unfiled

returns. Information saved and updated annually. Easy to use Multi-Featured word processor or link

to MS Word for full feature processing. Word processor can be used for Form letters,

Transmittals, Filing Instructions, Billing, etc. User friendly - Screens simulate actual return. Unlimited number of clients. Concise, easy-to-read user’s manual. Automatic Internet updates. Free unlimited support.

Find interns here.

Announcing the all-new website connecting

accounting students, CPA candidates, and

the organizations looking for talent.

VISIT TOMORROW’S CPA ONLINE:

macpa.org/tcpato see all the great resources available to the next generation of our profession.

MARYLAND ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTSDulaney Center II | 901 Dulaney Valley Road, Suite 800Towson, MD 21204 | www.macpa.org410. 296.6250 | Fax: 410.296.8713






EVENT ID

191014



macpa statement // january 2015

Documents

values arent

members of macpa

n v e s t

e n t smember fdic

n s u r

tax corner

tax season race

tax season rush