Tax Report Created Especially for Members of Wisconsin NATP

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1 Tax Report Created Especially for Members of Wisconsin NATP Summer 2014 In this issue: Presidents Message Wisconsin Tax News Wisconsin Sales Tax News IRS NEWS WI NATP Seminars ~ don't skip this special event ~ JUST for YOU! President s Message- Welcome to summer in Wisconsin! Most days I would rather look out at the sunshine or rain from inside an air-conditioned home or office. What do you say when people ask you, Aren t you glad tax season is over? or What do you do the rest of the year? If you are like our office, we finish extension returns, do amends, answer questions, and help people with estimates. Maybe you also are a financial planner, do payroll, and/or have bookkeeping or accounting clients. It seems that there never is a lack of work. Thank you to all that attended our spring conference in Fond du Lac. Susan Scioli and as an added bonus her husband Al gave a well-received presentation on some things we don t often use-innocent spouse and office in compromise. There also was a silent auction to benefit the WI NATP scholarship fund. We raised $279! If any of you are attending the national conference, please stop by the Wisconsin table at the Chapter Showcase and say Hi! Also watch the chapter bulletin board at the conference as we are still trying to figure out a fun and not so expensive way to get our chapter together. This fall your chapter will be having three events to further your education. First will be the Wisconsin update class on October 10 at Neenah with the always popular and knowledgeable David and Mary Mellem. The following week on Thursday will be the annual Farm classes with returning instructors Les Marti and Brad Droste. Then November 6 and 7 will be our fall conference and annual meeting at the Olympia Resort in Oconomowoc with Melinda Garvin as the speaker. On Thursday evening we will again have a hospitality room so be sure to indicate on your registration form if you will be able to attend. More information on all of these activities are available elsewhere in this newsletter.

2 Wisconsin Tax News Itemized Deduction Credit Errors Taken from WDOR Website Tax professionals The state announced recently that the Wisconsin itemized deduction credit was computed incorrectly on certain 2013 Wisconsin income tax returns by certain tax preparation software. The article does not state specifically what tax software was incorrect. Taxpayers with incomes over a certain threshold are subject to limitations of federal itemized deductions for The limitation applies for Wisconsin if: Your income was over $300,000 if married filing joint; $275,000 if head of household; $250,000 if single; or $150,000 if married filing separately, and You claimed interest expenses and/or gifts to charity for the Wisconsin itemized deduction credit If your income was above these thresholds, the interest expenses and gifts to charity otherwise includable in the credit are reduced by the lesser of: 3 percent of the excess of adjusted gross income (AGI) over a certain amount, or 80 percent of the amount otherwise allowable Beginning July 15, 2014, the department will correct returns with this error and send a Notice of Amount Due.* You do not need to send an amended return for this error. Interest and penalties will not be assessed as long as the bill is paid on or before the due date of the Notice of Amount Due since the IRS instructions were not available in time for the department to provide additional guidance on the topic in the Form 1 income tax booklet instructions. * If you had a refund that you asked to be carried forward to the 2014 tax year, and the department uses the carry forward to pay the additional amount of tax due on your 2013 return, you will be notified that you should make additional estimated payments for 2014 in order to avoid potential underpayment interest. Wisconsin Sales Tax News Publication 229, Brackets For Collecting Wisconsin Sales or Use Tax on Retail Sales, has been updated to reflect the 6.75% tax rate applicable for sales in the City of Wisconsin Dells and the Village of Lake Delton beginning on July 1, The revised publication has been posted to the Department of Revenue's website. Publication 233, Newspaper Publishers - How Do Wisconsin Sales and Use Taxes Affect Your Operations?, was revised to reflect the law changes in 2013 Wis. Act 145.

3 IRS NEWS IRS Announces NEW AFSC Designation Written by: TR Heinrich The IRS announced the new voluntary designation for tax prepares. The new designation is the AFSC (Annual Filing Season Certificate) It is a designation that will need to be renewed every year and will include annual testing. Tax preparers can meet the requirements by obtaining 18 hours of continuing education including a six hour federal tax law course with a test. With that you will receive a "Record of completion" from the IRS. AFSP preparer's will be listed in a public database on the IRS website by January The directory of federal tax return preparers with credentials and select qualifications will include name, city, state, zip code and credentials of all attorneys, CPA's, Enrolled agents, enrolled retirement plan agents and enrolled actuaries with a valid PTIN, as well as all AFSP - Record of completion holders. Anyone who has passed the RTRP (Registered Tax return preparer) test that was offered between November 2011 and January 2013 only needs to meet their original 15 hour continuing education requirement each year to obtain an AFSP - Record of Completion. Those who have passed the RTRP test and certain other recognized national & state tests are exempt from the six hour federal tax law refresher course and annual test. This is a voluntary designation. Currently, anyone with a valid PTIN can prepare tax returns for compensation. Attorneys, CPA's and enrolled agents will continue to be the only tax professionals with unlimited representation rights. For more information please visit: Internal Revenue Service Chatter: ACA Publications The year is half over and sadly January will be fast approaching. Our clients and likely a new crop of taxpayers will be knocking at our doorstep to get the scoop on the Affordable Care Act and what it means to them. At this point, the IRS is pushing the use of three Publications as guides until we get further guidance. Publication Facts about the Premium Tax Credit: This publication gives a brief overview of the Tax Credit as to who is eligible, taxpayer s choice of payment if they are eligible; Get It Now or Get It Later and finally a reminder to report changes in circumstances. Publication Report Changes to the Marketplace as They Happen: This publication is geared towards those taxpayers that have elected to receive the Premium Tax Credit during the tax year and have life changes that should be reported to the Marketplace. The publication lists the 7 changes that should be reported and also goes on to mention these events may open the door for the Marketplace special enrollment period. Lastly, the publication reminds taxpayers that if they receive the advance credit payment, they must file a federal income tax return in order to reconcile the payments and the credit amount they were eligible for in Publication Facts About the Individual Shared Responsibility Provision: This brief publication reminds taxpayers of the need for minimum essential coverage along with a link to a chart to be sure they have minimum essential coverage. It also provides a link for a chart of those who are exempt. The last issue they cover is the Individual Shared Responsibility Payment that a taxpayer may be charged. These publications are brief overviews of all topics and issues involved with the ACA. Our clients have all asked these questions and wondered what might happen as the year unfolds. We need to use these tools and the information on the IRS website to guide our clients correctly. The IRS will provide us with additional guidance

4 as it is available, but in the mean time, our clients will have life changes and wonder what a penalty might be if they do not obtain health insurance. Deceased Taxpayers The old saying goes There are two guarantees in life; Death and Taxes. The IRS is attempting to make researching how to properly handle a deceased taxpayer s tax matters easier. Tax practitioners have been asking for an easier way to find these coveted pieces of information and IRS provided it. Go to the IRS website and in the search box type in the words: Deceased Taxpayers. Once the search data is brought up, click on the first option which is title Deceased Taxpayers- Probate, Filing Estate and Individual. That title will bring you to a catalog of 9 options to help resolve the tax matters of a deceased taxpayer. Titles include Filing Final Returns, Filing the Estate Income Tax return, Getting information from the IRS, Protecting the Deceased s identity from ID theft, etc. Publication 1345 The publication received a little updating for the first time since March of It also raised a few eyebrows in regards to verifying taxpayer s identification. Page 11 of the publication states that to prevent filing returns with stolen identities, an ERO should ask taxpayers not known to them to provide two forms of identification (picture IDs are preferable) that include the taxpayer s name and current address. The IRS has stated that new clients or the previously mentioned taxpayers not known to them are the clients they believe tax practitioners should be obtaining documents such as picture IDs, Social Security cards or ITIN letters to verify identity. The IRS further stated that clients of practitioners that have multi-year or established relationships, would not require the practitioner to obtain these documents. The IRS referred to documents such as a Drivers License or Social Security card as wallet proof. There have been thoughts that practitioners would have to obtain credit reports for some clients. At this point the IRS said this would not be the case. I think the established versus unknown client status could be open for interpretation, but the IRS assured practitioners that additional guidance would be coming. The IRS did mention that they are putting additional identification verification requirements on software companies and warned that those additional costs would probably be passed onto practitioners. Tax Tools and Payment Options The IRS has been very busy developing tools and payment options that could be easily found and used on the IRS website. If you click on Tools tab, which is one of the orange tabbed options in the middle of the page, you will find very useful options to help you deal with the day to day grind of your practice. This one stop shop tab will assist practitioners resolve issues such as Where s my Refund and Where s my Amended Return. Taxpayers and Practitioners can set up Online Payment Agreements, Get Transcript for My Tax Records and apply for an EIN online. Additional tools at the bottom of the page include the 1 st Time Homebuyers Credit account look-up, OIC pre-qualifier tool and an EITC Assistant. After you have explored the Tools tab, immediately head to the Payments tab at the very top of the page. Here the IRS has laid out the payment options for those that can pay now and for those that cannot. For those who cannot pay now, the IRS lays out two options. They provide the short cut to the Online Payment Agreement Application and the Offers in Compromise summary page. These option help taxpayers and authorized representatives to navigate through the installment agreement and offer in compromise processes. Now for those that can pay now, the IRS has just rolled out the Direct Pay option. This option allows individual taxpayers with a Social Security number (ITINs are not allowed for this application) to pay Estimated Taxes, Installment Agreements 20 yrs. back, tax returns 20 yrs. back, CP2000 or Audit assessments and Amended returns 20 yrs. back for up to 30 days in advance. The application will require the taxpayer to verify their identity based on information from one of the last five tax years. Only one payment can be scheduled at a time and the payment will take two days to process. The best part is that there is no cost to the taxpayers for using this option. The IRS has provided an option to cancel, search for the status or edit payments as well. The taxpayer will need their Social Security number and the confirmation number provided at the time the payment was scheduled. The other options available to those that can pay now include Debit or Credit card, EFTPS and check or money order. Article Submitted by: Bradley A Droste, EA

5 THANK YOU WI NATP MEMBERS! Our membership and education continues to grow more successful and WI NATP realizes the real value of these achievements are in our membership. WI NATP would like to give back by offering our members a substantial educational opportunity for the low cost of FREE Open to the first 125 WI NATP member's (only) Conference Location: Wisconsin Tax and Update Seminar David & Mary Mellem Best Western Bridgewood Resort Hotel & Conference Center 1000 Cameron Way Neenah, WI Friday October 10th: 9:00 am - 4:00 pm Speakers David & Mary Mellem Discussion on the numerous 2014 WI Updates makes this seminar of great importance this year! Get a complete understanding of the Schedule I adjustments and their consequences. In depth discussion of Homestead Credit. Understand the new laws regarding WI NOL's vs Federal NOL's. Discuss the Federal Itemized Deductions and their affect on the WI Itemized Deduction Credit. Registration HURRY! ONLY 56 REGISTRATIONS AVAILABLE AS OF 7/10! Registration FEES: WI NATP Member's ONLY $ FREE $ LUNCH INCLUDED! A cancellation fee of $25 will be charged on cancellations after 10/3/2014 There will be an opportunity for Non - Members to sign up after August 15th if we do not fill before that date. Register Online at:

6 Farm Seminar October 16, 2014 Conference Location: Best Western Bridgewood Resort Hotel 1000 Cameron Way Neenah, WI (920) Thursday October 16th: 8am - 4:30pm Speakers: Brad Droste, EA Les Marti, EA Topics: Federal Farm Tax: Distinguishing between employees & subcontractors, SE tax on CRP land, Wind turbine issues, Dealing with 3.8% NIIT, Acquisition and disposal of farm assets. WI Farm Topics: Updates, Farm related credits, Depreciation & Schedule I Meal Included 6 CPE Credits Registration Registration FEES: WI NATP Member $125 After 9/23/14 $150 Non - Member $150 After 9/23/14 $175 Registration Form Register Online at:

7 2014 Fall Conference & Annual Meeting November 6, & 7, 2014 Olympia Resort & Hotel 1350 Royale Mile Rd Oconomowoc, WI Speaker: Melinda Garvin, EA, RTRP Galion, OH Melinda is the Founder, President and Co-Owner of Foos-Garvin Accounting, Inc., a full-service, smalltown practice serving the needs for 2000 clients. She has 25+ years of experience as a tax practitioner. In 2006, Melinda took the stringent Enrolled Agent exam issued by the Internal Revenue Service. An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation. She achieved her EA status by passing the exam which gives her the right to represent taxpayers before all administrative levels of the IRS. In 2011, Melinda passed the RTRP competency exam issued by the IRS. Foos-Garvin Accounting, Inc. and Melinda are members of Better Business Bureau, Richland County Chamber of Commerce, National Association of Tax Professionals and National Association of Enrolled Agents. Since 2007, Melinda has been an instructor for National Association of Tax Professionals (NATP). Melinda has been a presenter at the IRS Nationwide Tax Forums, instructed various classes for local organizations and has served on the Ohio NATP Chapter as the Education Director. In 2012, to encourage tax professionals in office best practices, she authored the manuals Audit Proof the Tax Office and Best Practices for the Tax Office. Melinda has a strong aspiration to support the tax professional s many sides of interactions with clients, IRS and the always needed education. Topics: Top Ten Mistakes, Federal Updates, Gambling Income / Loss, Social Security & Railroad Retirement reporting, Selling or Buying a Tax Practice, Tip Reporting, Form 1099 K, Schedule C, Transportation Expense Headaches, Ethics 16 Hours of Informative Tax Education ~16 Hours of CPE available~ Hospitality Room and Social: Thursday Evening 5 8pm Food/Beverages will be provided by the Chapter as well as time to Network and catch up with Colleagues and Friends Community Involvement: The WI Chapter will be collecting donations for a local charity. The Chapter feels it is our responsibility to give back to the communities we visit each Fall Conference. This Year we have selected: To Be Announced Soon

8 Registration Registration FEES: WI NATP Member $195 After 10/15/14 $220 Non - Member $245 After 10/15/14 $270 Registration Form Register Online at: Mark Your Calendars NOW Wisconsin Tax Update - Complimentary Seimar to Members Only October 10 th Best Western Bridgewood Resort Hotel & Conference Center Speakers: David & Mary Mellem Farm Tax Seminar October 17 th Best Western Bridgewood Resort Hotel & Conference Center Speakers: Les Marti, EA and Brad Droste, EA Fall 2014 Seminar & Conference November 6 & 7 Olympia Resort Oconomowoc, WI Speaker: Melinda Garvin (Author of Audit proofing your office) IMPORTANT REMINDER Seminar attendees, please bring your PTIN. We are now required to have that number to credit your PTIN account for the CPE credits earned.

9 BECOME A LEADER Your Wisconsin Chapter needs a few good volunteers. Every year four director positions come up for election at the Annual Meeting in November. This year the regions that need a director are Region 2, which needs 2 directors, Region 3, and Region 6. The time commitment for serving as a director is minimal. The benefits are enormous. Not only will you be helping your state chapter provide education and resources for fellow tax professionals, but it also gives back to you. The relationships and peer connections that you make are irreplaceable. The face to face contacts with IRS and WDOR employees can be a huge help when you need a contact person. Your meeting expenses get reimbursed and you receive a discount on seminars put on by the WI Chapter. It s a Win/Win situation! So what does it take to become a director? You must be a member of NATP in good standing and willing to donate the minimal time it takes to lead and serve your chapter. You automatically become a state member with your national membership. The board meets three or four times a year. Two of these meetings coincide with the spring and fall state seminars. Much of the communication is done by . You may not be on the board of a competing organization. We also need people to volunteer for committees if serving on the board is not your thing. We invite you to ask questions of any of the board members. All the names, phone numbers, and s are printed in the Board listing in every newsletter. Please consider nominating yourself or someone else that you know would be willing to have their name on the ballot in November. We will follow up with the nominee to verify information and their interest in serving. The term is for 3 years and starts on January 1 following the election. If you are interested, please send me an or snail mail to: Vickie Zukaitis, NATP Nominations Committee, 1000 N. Wisconsin St., Port Washington, WI or vzukaitis@msn.com WI NATP Board Candidates Barbara Steponkus My name is Barbara (Barb) Steponkus. Currently I represent Region 2, the southern central to west counties. If reelected, this will be my second current term. I also served on the board in the 1990s. From 1999 to 2009 I was the newsletter coordinator and also served two terms on the national board in that same time period. Since 1981, I have been a member of NATP and also became an EA that same year. I have been a tax consultant since 1977 and have owned my own office since We are located in Edgerton with satellite offices from January to April in Milton and Evansville. Although our main focus is individual returns, we also prepare farms, businesses, partnerships and both C and S corp returns with a few fiduciary returns. My husband Ron and I have four children and seven grandchildren. We have really gotten the travel bug and make several trips each year. In my spare time reading, knitting and sewing are great past times. The author Sterling North was born in Edgerton and I am the treasurer of the Sterling North Society. I am also a lector and lay distributor at church. Linda Lueck: Linda worked for Western Technical College in La Crosse for 30 years teaching accounting in the two year associate program. She has also had a tax business for 25 years. She had a sole proprietorship for 24 years and she recently joined another tax practitioner in partnership. She attended UW-Whitewater where she received her Bachelor of Business Administration degree and she received her master degree from UW La Crosse. She has been on the Chapter board before in the early 2000 s. Linda is originally from La Crosse and has lived in the La Crosse area her entire life. She currently resides in Holmen just north of La Crosse. She is also an enrolled agent for many years.

10 NATP SCHOLARSHIP FUND Scholarship Committee Are you a member of NATP and a Wisconsin resident? Are you thinking about taking the enrolled agent exam? Need help with the material? If you take the enrolled agent live course through NATP you will be eligible to apply for a scholarship. The Wisconsin Chapter of NATP is offering a $350 scholarship. I would encourage anybody thinking about taking the enrolled agent exam and also taking the NATP live course to apply for the scholarship. The application is on NATP website under Wisconsin.

11 2013 WI Chapter of NATP Board Members Listing President Barb Steponkus, EA Vice President Vickie Zukaitis Secretary - Janet Jentsch Treasurer - Joann Olson, EA Region 1 JoAnn Olson, EA (2015) Julie Kendhammer (Director at Large, 2016) Region 2 Linda Lueck, EA (2014) Barbara Steponkus, EA (2014) Region 3 Jenny Stroetz (2016) Mark Konkel, CPA (2014 At large) Region 4 Mary Lloyd-Jones, EA (Direct At Large, 2015) Jann Kostecke, CPA (2016) Region 5 Janet Jentsch (2016) Sharon Hafemann (Director at Large, 2015) Region 6 Vickie Zukaitis, (2015) Frank Becerra (2014) Committee Members Brad Droste,EA Joel Lemanski Carol Huf Julie Quinn, EA Newsletter Coordinator: Tina Heinrich W3615 Highway 50 Lake Geneva, WI Phone: abctina@sbcglobal.net Board Meetings 2014 ~ Aug 1, 2014-NATP National Office, Greenville, WI 10am-3pm Nov 5, 2014-Olympia Resort, Oconomowoc, WI 3pm-6pm

12 WI NATP Classifieds HELP WANTED: Services Offered: The WI NATP Newsletter is published four times a year. When considering an entry for the newsletter, please be aware of the following deadline cut offs for getting in your articles or classifieds: September 26, 2014 December 12, 2014 Advertising Rates: Classified Ad - $10 per forty Words ($10 minimum) Standard text at font size. forty. 20% Discount for WI NATP Members 50 cents per additional word after Business Card Size Ad: (2 x3.5 ) Horizontal or vertical placement $40 Each Placement ($10 discount if paid in full for a whole year of placement) 50% Discount for WI NATP Members Quarter Page Size Ad: $80 Each Placement ($10 Discount if paid in full for a whole year of placement) 50% Discount for WI NATP Members Half Page Size Ad: $ Each Placement ($10 Discount if paid in full for a whole year of placement) 50% Discount for WI NATP Members ** Add a photograph to any ad for an additional $3 charge To place an ad: Contact Tina Heinrich by at abctina@sbcglobal.net or phone at