The President s Message

Transcription

1 December, 01 The Informer Volume 16, Issue 1 Inside this issue: The President s Message 1 Picture of 013 Officers Contemporaneous Receipt Rule New Schedule B-Interest and Dividend Income Important Dates Submitting Electronic Returns New Taxpayer Advocate Rusty Chase Scholarship Fund Kansas Dept of Revenue Kansas NATP History 5 Officers/Board Members 5 Officers: President Tim Graham, Jr Vice President Tim Cain Secretary Kerry Bush Treasurer Terri Ryman The President s Message As we work on getting ready for a new tax season, I look back on the prior year of tax season and see a different road beginning this year. This different road for the tax profession is one of many different lanes of change in one direction. These lanes consist of things that are going to change us as the tax professionals, educational providers and as a chapter for National Association of Tax Professionals. Some of these changes are things that are going to happen behind the scenes of the educational seminars and also behind the scenes of the tax office. The educational providers, such as the Kansas Chapter of National Association of Tax Professionals, are going to have to do more paper work. This paper work is going to start with us getting the approval of the educational seminars and also us keeping track of the attendees PTIN number. This tracking will help the IRS make sure that the tax professionals are keeping up the hours of continuing education. Continuing education hours that are approved for the enrolled agent may be different from the registered tax preparer. Therefore, as the tax professional we are going to have to watch the hours we are attending to make sure that we get the hours that work for us. This leads me to the next lane of change that is coming down the road for the tax professional. The change ranges from the continuing education requirements, competency testing, and the registration process. The continuing education requirements are things that are going to require our PTIN people who prepare the 100 returns to go out and get their education for a total of 15 hours. These 15 hours need to consist of hours of ethics, 3 hours of federal tax law From the Sunflower State. update, and 10 hours of other federal tax law. Then, if you have a PTIN and prepare 100 series returns for compensation you will need to take the competency test before the end of 013. This step completes the registration process for those that don t hold the Enrolled Agent, CPA, or attorney designation. This is where the Kansas Chapter is going to be on the front edge of trying to provide leading education for those in the tax profession or wanting to be in the tax preparation industry.

2 P a ge T h e I n f ormer V olume 16, I s s u e 1 KS CHAPTER-NATP OFFICERS FOR 013 At the KS Chapter Annual Meeting on October 31st, Dorothy Atchison, NATP National Rep, swore in the following chapter officers: (from left to right) Tim Graham-President Tim Cain-Vice President Kerry Bush-Secretary Terri Ryman-Treasurer Please contact them with chapter suggestions! Contemporaneous Receipt Rule As tax professionals we should all be familiar with the fact that deducting a donation made to a charitable organization requires a written record of the taxpayer making the donation, but also a written communication from the charitable organization having received the donation from the taxpayer. Charitable organizations usually send written acknowledgements to donors no later than January 31 of the year following the donation. To be able to deduct that all important donation made to your favorite charity of choice and to be considered contemporaneous with the contribution, you must receive the receipt from the organization by the earlier of; the date that you file your individual federal income tax return for the year of the contribution, or the due date of your return. Schedule B-Interest and Dividend Income ership interest in any company, private equities, hedge fund interests, rental properties, investment assets not held for business. The 8938 should be attached to the 100. Filing deadlines for the 100 apply, including extensions. Don t forget: Form TD F 90-.1, Report of Foreign Bank and Financial Accounts, may also be required (filed separately from the form 100). You must file this form if the tax- A provision of the 009 Hire Act went into effect January 01. Any taxpayer with a foreign asset total of greater than $50,000 for Single and $100,000 for MFJ must file a special statement, Form 8938, showing the maximum value of their assets for the year. This new filing applies to US citizens, resident aliens, dual citizenship citizens. Financial assets are classified as deposits, cash, custodial accounts, ownpayer had an interest in or signature or other authority over a financial account located outside the US, such as a bank, securities, or other financial accounts, or owned more than 50% of the stock of a corporation that owns one or more bank accounts located outside of the US. This form must be received by the Dept of the Treasury on or before June 30th of the year following the year being reported. No extensions permitted!

3 T h e I n f ormer V olume 16, I s s u e 1 Important Dates to Remember for 013: WHAT DATES WHERE BOD Meeting May 0, 013 Bank of Tescott Bldg-Salina, KS RTRP Seminar June 1, 013 Crown Plaza-Overland Park, KS RTRP Seminar June 1, 013 Doubletree by Hilton-Wichita, KS RTRP Seminar June 8, 013 Sternberg Museum-Hays, KS NATP Nat l Convention July 08-11, 013 JW Marriott-Phoenix, AZ BOD Meeting July 7, 013 Jan Cowick s Office-Wichita, KS Annual Seminar Oct 8, 013 Doubletree by Hilton-Wichita, KS Scholarship Fund Social Oct 8, 013 (PM) Doubletree by Hilton-Wichita, KS BOD Meeting Oct 9, 013 (PM) Doubletree by Hilton-Wichita, KS Nat l 100/100X Oct 9-30, 013 Doubletree by Hilton-Wichita, KS Western Seminar Nov 0, 013 Sternberg Museum-Hays, KS Nat l 100/100X Nov 11-1, 013 Crown Plaza-Overland Park, KS Fall Seminar Nov 13, 013 Crown Plaza-Overland Park, KS P a ge 3 EDUCATIONAL SEMINARS & MEETINGS IRS Symposium to be announced (August or September) If you have a suggestion for a topic for these seminars, please contact Tim Graham or Tim Cain Submitting Electronic Returns to the IRS You already know that, once signed, an ERO must originate the electronic submission of a return as soon as possible. With the delay in the filing season to January 30th, questions have arisen regarding the prompt e-filing of returns. Per a QuickAlert from the IRS on : The IRS does not consider returns held PRIOR to the date that the IRS accepts transmissions of electronic returns to be stockpiling. This also includes whenever the IRS is not able to accept specific returns, forms, or schedules until a date LATER than the start-up of IRS e-file due to constraints such as late legislation, programming issues or other problems. ERO s are obligated to inform their clients that they cannot transmit completed, signed, and paid for returns to the IRS until the date that the IRS has indicated they will accept transmissions of electronic returns. The definition of stockpiling is when an ERO collects returns from taxpayers or from another Authorized IRS e-file Provider PRIOR to being officially accepted as an ERO. Or, after official acceptance to participate in the IRS e-file program, stockpiling refers to waiting more than three calendar days to submit the return to the IRS once the ERO has all of the necessary information and signatures on file. The IRS has also pointed out that EROs must not electronically file individual income tax returns PRIOR to receiving forms W-, W-G, Gambling Winnings, 1099-R, etc. The ERO may electronically file the return AFTER the taxpayer completes Form 85 (Substitute for Form W- or Form 1099-R). Typically this form cannot be e-filed until February 15th.

4 P a ge T h e I n f ormer V olume 16, I s s u e 1 Introducing, Desiree Frierson, Taxpayer Advocate in Wichita, Kansas. Desiree Frierson is a native of Long Island, New York. She received a Bachelor of Business Administration in Business Management from Adelphi University in Garden City, New York and a Master of Business Administration in Business Management from Oral Roberts University, Tulsa, Oklahoma. Desiree began her IRS career in 1991 in Receipt and Control. With the changing RTRP regulations, the KS Chapter Board has determined that the awards from the scholarship fund should be used to assist KS NATP members to further their education. This would be accomplished by attending the 3 day Enrolled Agent review course offered by NATP, or attending the Registered Tax Return Professional one day review course offered by NATP or KS-NATP. New Taxpayer Advocate Shortly thereafter she worked in the Taxpayer Relations Branch. In 1995, she transitioned to field Collection and began work as a Revenue Officer. For a portion of time she also worked as an Offer in Compromise Specialist. In 007, she became a Collection group manager in Overland Park, KS. Over the past 1 years, she has gained a wealth of knowledge and experience which she is excited to bring to the Taxpayer Advocate Service and specifically to Rusty Chase Scholarship Fund These awards will be in the amount of $50 each for Enrolled Agent courses, or $75 each for the Registered Tax Return Professional course. The scholarship committee will award up to $1,000 in scholarships during 013. The deadline for submission of the application is October 1, 013. For more information, please visit the KS Chapter s Kansas Department of Revenue the Local Taxpayer Advocate position. In her free time Desiree enjoys spending time with her family, traveling and reading. We are hoping that Desiree will be able to address us at our Annual Meeting and KS Update Seminar to be held on October 8th. Be sure to pencil in this date so that you will have an opportunity to meet her. web page on the natptax.com website. We hope this helps members to become credentialed. These courses are excellent training tools to assist you before you sit for these exams. More detailed information on these courses can be found in the E d u c a t i o n s e c t i o n o f natptax.com s website. We encourage you to check these courses out. Effective for Tax Year 013, there will be a subtraction modification available on certain nonwage business income for small business owners, income reported by LLCs, S Corps, sole proprietors, and farmers. Additionally, there will be an elimination of credits for individuals, partnerships, s-corps, LLCs and other pass through entities for such things as: K-56 (Child & Daycare Assistance), K-68 (Individual Development Accounts), and many others (ref: Senate Substitute for House Bill No. 117). Also repealed was the K-7 (Adoption Credit), K-37 (Disabled Access Credit), and the deduction of Qualified Long Term Care Insurance Premiums (claimed on line A1 of Schedule S), among others. The Food Sales Tax Refund has been repealed and additionally effective , renters will no longer qualify and may not claim a Homestead Property Tax Refund. This is just a FEW of the changes coming in 013. Be sure to attend one of our seminars coming in the fall for more detailed information on this massive KDOR change.

5 Have you ever wondered about the history of your Kansas Chapter of the National Association of Tax Professionals (NATP)? Well wonder no more Contributors: Jennifer Davids, Peggy Beasterfeld, Terri Ryman The first annual meeting was held at Shoney s in Wichita, KS on July 30th, 199. This was when the first officers were elected for the chapter. The chapter was then chartered by the National Conference on August 0, 199 in Atlanta, Georgia. Since the founding of our chapter we have had 6 presidents. Find out more information on your Kansas Chapter tin future newsletters. Stay tuned in... Phone: Fax: tryman@elkhart.com Member Get a Member Do you know someone who might be interested in NATP and all the benefits for members? You might want to check out National s Member Get a Member campaign. You could win a $15 or $30 gift card, a free membership, or even $1,000 in cash! Just put your name on NATP Membership Enrollment forms in the Who recommended your to NATP? line and hand them out to non-member tax professionals. Officers/Board Members Tim Graham, President (785) timjrtax@cox.net Tim Cain, Vice President (785) caint@sbcglobal.com Kerry Bush, Secretary (316) superiortax@cox.net Terri Ryman, Treasurer (60) 697- tryman@elkhart.com Jim Cain, Board Member (316) dejafs@cox.net Peggy Beasterfield, Board Member (785) peggystax@gmail.com Susan Fesler, Board Member (60) msfesler@terraworld.net Leahann Snow, Board Member (785) 5-89 sprucecorporation@sunflower.com Nolin Christensen, Board Member (316) @100.com Committee Chairs Janet Cowick Professional Standards Peggy Beasterfield Govt. Relations Jim Cain Convention Timothy Cain Regional Nolin Christensen Bylaws Mary Giesler-Membership, Scholarship Education Susan Fesler Nominating Here to Serve