LETTER OF THE LAKES A NO TE FRO M THE P R ESI D E NT MN NATP. Happy Summer!!

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1 MN NATP Volume 6, Issue 2 LETTER OF THE LAKES August 2013 A NO TE FRO M THE P R ESI D E NT Happy Summer!! MN NATP Jane Amble, EA President th Ave S, Ste 102 Moorhead, MN Phone: Fax: jane@jbataxprep.com Can you believe it s more than half over already? Where did it go? I don t know if it s me getting older or just the crazy 2013 filing season (or maybe a combination of the two,) but lately time seems to be just flying by! I m finally ready to enjoy my summer and my calendar says that it s time to be thinking about continuing education. Many of us have just returned from Phoenix (it seems like we ve just returned, although it has been a few weeks!) where we attended this year s National Conference. We had 4 days chock full of fabulous education, incredible speakers, great vendors, unlimited networking opportunities, loads of fun and lots of sunshine! If you ve never attended a National Conference, I invite you to do so. Next year s conference is scheduled for August 11-14th in Orlando, Florida - mark your calendars. On behalf of our MN Board of Directors, I would like to extend an invitation to each of you to attend this year s Fall Conference in St. Cloud. It will be back at the Holiday Inn and is scheduled for September 19th and 20th, with some additional opportunities on the 18th. This year s outstanding lineup includes Karen Brehmer form IRS, Jake Feneis from the State of Minnesota and our keynote speaker, Melinda Garvin. I have heard Melinda speak at National many times and you will love her! Watch Chapter Weekly for additional information and watch your mail for your conference brochure. NATP offers some of the best educational opportunities around - and as I know I ve said before, education is the key to success in this business! Check out NATP s website for a full listing of all of the classes that are being offered this fall. I look forward to seeing all of you at our fall conference. I expect it to be our best one yet! Jane Amble

2 Page 2 Volume 6, Issue 2 W E L C O M E N E W M E M B E R S Welcome to MN NATP! We are excited to have you as part of our family. New MN NATP Members that have joined us in May/June/July 2013 are: Frank E Claymon, CPA St Louis Park Timothy O Connor St Cloud David Doffing, EA, CPA Hastings Thomas Ohlgren, CPA Blaine Kate Hittle Blaine Richard Charles Riener, EA White Bear Lake Jaren L Keaton Minneapolis Marvin Scroggins, CPA St Paul Steven Alan Kohler New Hope Tiffany Stenglein Nisswa Ruth Lane St Louis Park Kathie C Swetland, EA, RAP, Cedar CTP Paul Horner Madsen Columbia Kin Vang, EA St Paul Carmen Norenberg Bemidji Brooke Worden Bloomington

3 Letter of the Lakes Page 3 Tax Law Changes This year s legislative session mad a number of changes to Minnesota s tax code for individuals and businesses. Among the more notable changes for you and your clients to consider: Individual Income Tax and Withholding - Minnesota has a new top-tier income tax rate of 9.85% on taxable income above $250,000 for married couples and $150,000 for single filers. Employers received new withholding tables in June, but anyone subject to the new rate may need to adjust withholding or estimated payments to avoid a large tax bill at the end of the year. Business Taxes - The minimum fee has been Restructured so that many small businesses no longer pay a fee; for those that do, the fee amount and thresholds are now indexed to inflation. The state R&D credit is no longer refundable, and the Angel Investor credit has been expanded for pharmaceutical and medical device companies. The foreign operating corporations and foreign royalties provisions have been repealed. Estate and Gift Tax - The rules were clarified for the small business and farm property exemption, which exclude up to $4 million from the estate tax for qualifying properties. Minnesota now has a gift tax of 10% on taxable gifts; we generally follow the federal definition. Starting July 1, gifts given within three years of death are now included when determining if an estate meets Minnesota s $1 million estate tax threshold. Sales and Use Tax - The existing sales tax exemption for townships is being extended to cities and counties (effective January 1, 2014). The sales tax base has been modernized and expanded to include some digital products and business services. We are still reviewing some of this year s changes and continue to publish more information as it becomes available. For the most current information, go to and click the 2013 Tax Law Changes button (near the bottom of the page). If you have questions, please contact us through the phone number or link provided for each tax type on our website. Disaster Information for Taxpayers The Minnesota Department of Revenue has introduced new tools to help taxpayers before and after disaster strikes. These include: We added a page to our website that has FAQs, links to state and federal tax resources, and information about how to prepare for disaster. Taxpayers or practitioners can sign up for our new Disaster Relief Notification list to receive updates and notifications. We ll still communicate through the news media and answer taxpayer questions by phone or . For more information and the latest updates, see Tax Relief When Disaster Strikes on our website. (Go to or enter Disaster Relief into the Search Field on our home page).

4 Page 4 Volume 6, Issue 2 Help Us Improve We have started a Plain Language project to improve our online content, fact sheets, letters, and other information so they are more understandable to taxpayers and preparers. You can help by giving us feedback, comments, and ideas. If you re interested, sign up for our new list to receive notice of surveys, focus groups, or other chances to tell us what you think about this project or others to come. To get on the list, just subscribe through this link, or go to our home page and click on the red envelope icon ( ). After you enter an address, select Opportunities to give us feedback and then click Submit. You can also subscribe to some of the other lists while you re there. Follow Us on Twitter and Facebook Get the latest department news and updates by following us on Twitter and Facebook. Just click on the Twitter or Facebook icon at the bottom of our homepage MN NATP Board Positions Available Here s your opportunity to serve your Minnesota Chapter of NATP! There are several openings available - elections will be held at our annual meeting in St Cloud on September 19th. If you or someone you know would like to be more involved and have a positive impact on all the MN NATP members, it is your time to make a difference! Please submit your name or the nominee s name to Kelly Nokleby at kelly@booksbykelly.com. Your Minnesota Chapter is always looking for new ideas and people who desire better education and knowledge! Be the change you wish to see in the world. Now s your chance! GO FOR IT!!!

5 Letter of the Lakes Page 5 Fall Conference and Annual Meeting We are so excited to have Melinda Garvin join us in September for our Fall Conference and Annual Meeting. Melinda is an NATP National Instructor that consistently receives positive feedback regarding her knowledge, humor and teaching style. Please plan to join us this year in St Cloud for our conference - We are striving to make this a conference for every tax professional! The conference will be held at the Holiday Inn and Suites in St Cloud on September 19 and 20. The registration fee includes 16 hours of CPE and Lunch on both days. Come renew connections with friends and take the opportunity to meet some new ones! We would also like to encourage you to come and share your ideas with your MN NATP Board of Directors - or better yet, take the opportunity to join the Board of Directors. As always, please contact any Director (contact information on the back page of this newsletter) with any questions, concerns, ideas or interest in volunteering your time. Lastly, welcome to National Board Member, Jimmie Capps from South Carolina. Jimmie will be at our conference to lend support to our Minnesota Chapter, to meet & greet members and share her Southern Charm! Watch the mail for your conference brochure - it will be arriving in your mailbox shortly. With schedules getting fuller and fuller as time goes by, I find it helpful to know about events as far in advance as possible. Please mark your calendar with the following dates as these are events you do not want to miss! MN NATP Fall Conference NATP National Conference & Expo September 19 & 20, St Cloud, MN September 29 & 30, Alexandria, MN August 11-14, Orlando, FL 2014 is MN Chapter of NATP s 25th Anniversary and there are plans for a big celebration on Sunday Night (September 28, 2014) before the conference. Don t miss out on the celebration!

6 Page 6 Volume 6, Issue 2 N O T E S FRO M MN NATP S IRS STA K E HOLDE R L IA ISON: KARE N BRE H M E R Disclosure Authorization and Electronic Account Resolution retire this month IRS is retiring the Disclosure Authorization (DA) and Electronic Account Resolution (EAR) options on e-services on August 11, 2013, primarily due to low usage. Only 10% of authorizations are submitted through DA and only 3% of notice responses are addressed through EAR. The other reason for this decision is that we re updating our operating platform. Transitioning these two services to our new operating platform would be cost prohibitive. In this time of tight budgets, that cost could not be justified due to the low usage. Once IRS removes the two applications, former DA users will need to complete Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorizations, and mail or fax it to the appropriate IRS location. Please note that the fax number given on the instructions for Form 2848 is outdated. The correct fax number for the Ogden campus (Minnesota taxpayers) is Please allow at least 4 days for the authorization to post to the IRS database before requesting a transcript through the Transcript Delivery System. Former EAR users should call the Practitioner Priority Service at for help resolving account-related issues. The IRS continues to look for ways to improve its current processes and is exploring an improved electronic solution for DA and EAR in the future. If you have comments about this issue, please send them to Karen Brehmer at Karen.a.brehmer@irs.gov. Affordable Care Act update We updated our Affordable Care Act page on IRS.gov: The Department of Health and Human Services has also updated their Affordable Care Act website. The address is Check it out! The new IRS flyer, Healthcare Law Online Resources (Pub 5093), lists internet resources available from our federal agency partners including the Department of Health and Human Services, the Department of Labor and the Small Business Administration. (continued on page 7)

7 Letter of the Lakes Page 7 DOMA Here s the IRS Statement regarding the recent Supreme Court Decision on DOMA: We are reviewing the important June 26 Supreme Court decision on the Defense of Marriage Act. We will be working with the Department of Treasury and Department of Justice, and we will move swiftly to provide revised guidance in the near future. Information about same sex marriages appeared in the December 2012 MN NATP Newsletter. The links to the information is repeated here as a refresher. The questions and answers below do not reflect the Supreme Court s June 26 decision relating to DOMA. Community-Property-States Material for Client Newsletters Do you send a newsletter to clients to keep them informed of various tax topics during the year? Do you want to send a letter but need material? Two sources of materials are IRS Tax Tips and Outreach Corner. Subscribe to IRS Tax Tips Subscribe to Tax Tips to get tips about taxes via from the IRS each business day during the tax-filing season and periodically through the rest of the year. Tax Tips are brief, to the point and cover a wide-range of topics, including: Common errors to avoid when you prepare your return Where you can get free tax help Guidance on available tax deductions and credits How e-file can make filing easier, get you your refund faster and protect your payments How to file for an extension or amend your return We ll issue more than 70 Tax Tips through the April filing deadline and dozens more throughout the rest of the year. Subscribe here: Outreach Corner offers you electronic communication materials to use in reaching out to the people you serve. Get free news you can use each month, targeted by time of year to coincide with what your customers, employees, volunteers, etc. need to know about new tax law legislation, IRS events and other activities that affect them. Please feel free to use these items for your websites, in electronic products, publications, etc. as needed. More items will be added each month. Submit your suggestions for topics you would like to see. Please send any feedback to partner@irs.gov. Subscribe now to receive alerts when Outreach Corner is updated!

8 Pa g e 8 Vo l um e 6, Is su e 2 H I G H L I G H T S F RO M N A T I O N A L C O N F E R E C E IN PHOEINX, AZ Arizona s Children Association was the beneficiary of this year s fundraising Each year a local charity is chosen to be the beneficiary of NATP Member s generosity. This year, Alice Beighley from Rochester, MN helped by contributing a hand-made quilt to be part of the live-auction hosted by the National Board of Directors. For information regarding this year s fundraising efforts, see the article written by the beneficiary of our member s efforts: Alice Beighley shown with the NATP Member who purchased the quilt. The Quilt Chapter Showcase: Cindy McLane, Debbie Gellatly and Jane Amble Minnesota Members at the Banquet

9 Letter of the Lakes Page 9 THANK YOU I would like to take the opportunity to thank the members of the MN Chapter of the National Association of Tax Professionals for allowing me to serve our Chapter. I joined NATP in 1999 because I wanted to be a part of a Professional Organization; NATP was the organization that seemed to fit my needs. I did not know then what this organization would provide for me - but I grew up being taught that you get more from something when you become involved! In 2005, Lillian Johnson nominated me to serve on the Board of Directors for the State Chapter - what an honor! I am not sure what Lillian was thinking (LOL) - but I am glad she provided me with the opportunity to begin my service to MN NATP! After being on the Board of Directors for two years, I was nominated to serve as the Secretary and served in that capacity during my 3rd year on the Board. In 2008 I was nominated to serve as the President and served in that capacity for 3½ years until I was elected to sit on the National Board of Directors. According to our by-laws, I am not eligible to run for another term to serve you as a member of the MN Board of Directors, but know that I continue to serve each of you in my role as a member of the National Board of Directors, and my phone/ is still there for anyone who needs/wants to talk. In the 14 years that I have been a member of NATP, I have been given several opportunities for personal growth. When I joined in 1999 it never occurred to me that I would be in leadership or facilitate sessions helping other tax professionals to understand tax law. I never dreamed that I would have met so many people across the country that I consider to be life-long friends. What a blessing this has been (and continues to be)! If you have not thought about it in the past, please consider serving on the MN Board of Directors - I will not simplify it by saying it is not work - as nothing worth anything comes without a little bit of work - but the rewards and satisfaction of being a part of something as wonderful as NATP is worth every ounce of energy expelled! Become involved - you will not regret it!! Thank you, thank you from the bottom of my heart! You are all the reason that NATP is the great organization that it is! See you in September at the Fall Conference. Kelly Nokleby

10 MN N AT P Kelly Nokleby, EA Newsletter Editor PO Box 130 Granite Falls, MN ext 200 kelly@booksbykelly.com B OAR D O F D I R E C TORS Jane Amble, EA President JBA Tax Preparation, LLC th Ave S, Ste 102 Moorhead, MN jane@jbataxprep.com Debbie Gellatly, EA Secretary 272 E Hamey Road Esko, MN ctsdeb02@msn.com Heather Taylor DuCharme, EA Sieloff & Associates, PA Yankee Square Office III 3460 Washington Dr, Ste 214 Eagan, MN Ducharme.heather@yahoo.com Patrick Zierden, EA Vice President Dalton Ave NE Monticello, MN patrick@taxmanmn.com Cindy McLane, EA Treasurer McLane Acctg & Tax Svc, Inc PO Box Bench Street Taylors Falls, MN cindy@mclaneaccounting.net David Lundborg, EA nd St S, Ste 208 St Cloud, MN david@whetstoneents.com Kelly Nokleby, EA Books by Kelly, LLC PO Box 130 Granite Falls, MN ext 200 kelly@booksbykelly.com Randy Watkins, EA 540 Hwy 104 NE Sunburg, MN randyjwatkins@hotmail.com