S e r v i n g t h e A c c o u n t i n g P r o f e s s i o n f o r M o r e T h a n 5 0 Y e a r s

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1 Summer 2012, Issue 1 The Folio Official Publication of the South Carolina Society of Accountants S e r v i n g t h e A c c o u n t i n g P r o f e s s i o n f o r M o r e T h a n 5 0 Y e a r s SCSA Schedules Another Enrolled Agent Examination Review Course September in Columbia The IRS requires competency exams for all paid tax return preparers who are not attorneys, certified public accountants or enrolled agents. The new IRS tax preparer exams will cover Individual and/or Business tax returns depending on the type of IRS forms you file on behalf of your clients. To prepare tax returns you must pass at least one of the exams. SCSA offered a two-day IRS Enrolled Agent Examination Review Course in mid-may and the overwhelming response has led to the scheduling of another one September in downtown Columbia at the Columbia Metropolitan Convention Center. An enrolled agent is a person who has earned the privilege of representing taxpayers before any office of the Internal Revenue Service. An enrolled agent can negotiate with the IRS during examinations and appeals, and act in place of a taxpayer signing consents and executing agreements on their behalf. An enrolled agent is the only professional granted a right to practice directly from the U.S. government. Attorneys and certified public accountants (CPA) have state licenses, which limits their practice only to the states where they are licensed. Unlike a CPA or Attorney, an enrolled agent holds a federal license and has the right to represent any taxpayer in any state regarding federal tax matters. The practice of enrolled agents before the IRS is not limited and they may represent taxpayers before the IRS, performing the same tasks as an Attorney or CPA. The capabilities of an enrolled agent extend beyond just preparing returns to areas such as representing clients in cases involving audits, collections, and appeals. Registration begins at $325. Go to www. scsacct.org to register. South Carolina Among States that Fail to Effectively Track Tax Breaks According to a recent article that appeared in the Charleston Post & Courier, The Pew study has concluded that South Carolina is among the states that are trailing behind when it comes to tracking whether their tax breaks for businesses actually spur job growth. The state also was among 35 that didn t review all major tax incentives or use data to make policy choices. Three taxincentive documents and one evaluation document were examined. None met one or more criteria for determining effectiveness. But the state does little to monitor the effectiveness of the tax breaks and other incentives used to lure the companies, according to a report released in April by the Pew Center on the States. The report found that South Carolina is among 25 states and Washington, D.C., that may not be spending wisely and getting the most bang for taxpayers buck as a consequence of the lack of evidence. Pew examined documents from state agencies and legislative committees and interviewed policymakers, agency officials and outside experts in compiling the report. Thirteen states were found to be leading the way in monitoring incentives, including neighboring North Carolina. South Carolina government agencies didn t have incentive or tax evaluation documents that met the Pew s standards for scope or quality. The governor s office directed questions about the report to the S.C. Commerce Department, which did not specifically respond to the report in a prepared statement provided, but said it takes incentive oversight seriously. A spokeswoman for the department said the S.C. Coordinating Council for Economic Development has authority over specific incentives related to grants and job development credits. Gov. Nikki Haley has made economic development a major emphasis of her administration, and economic incentives have helped the state land splashy additions and expansions during her 15 months in office. It s difficult to say just how much U.S. states spend combined on tax incentives, but they have become more common in the past decade, particularly since 2008 when the country sank into recession. Given that states are rebuilding their budgets and economies in the wake of the Great Recession, these are mistakes states can t afford to make, Pew researcher Jeff Chapman said. Among the glaring problems identified with incentive oversight was failing to provide information to state lawmakers who have to sign off on the programs, at least initially, Chapman said. The study found the Palmetto State is The Folio Issue 1,

2 Donald Burkett, CPA to Lead Corporations and Partnerships Seminar Scheduled September 24 among 35 states that didn t review all major tax incentives or use data to make informed policy choices. Donald (Donny) Burkett, CPA, will present the 8-hour Corporations and Partnerships Seminar for SCSA on Monday, September 24 at the Columbia Metropolitan Convention Center. Former Chairman of the South Carolina Board of Accountancy, Burkett has also served as President of the SCACPA. He is a partner at Burkett, Burkett & Burkett, CPAs in West Columbia. Topics covered will include: Review of new tax laws, including court cases, IRS rulings and notices, and other developments; Advantages and disadvantages of C corporations; S corporations, limited liability companies (LLCs), general partnerships, and limited partnerships (including family limited partnerships). Registration is available at LLC Act Does Not Shield A Member of an LLC from Personal Liability Earlier this year, the South Carolina Supreme Court held that the South Carolina General Assembly did not intend for the Limited Liability Corporation Act to shield a member of an LLC from personal liability for his own torts while acting in the course of business of the LLC. Therefore, members of LLCs are not insulated from personal liability when acting in good faith for the LLC. This ruling will have a significant impact on many businesses established as LLCs in South Carolina because a primary benefit of LLCs, a shield of personal liability, has been eliminated. In the case, a member of an LLC was the general contractor for the construction of a condo project in Beaufort. Problems arose with the structural support of the house, and both the LLC and the member were sued for negligence. The Supreme Court found that the member of the LLC was personally liable for torts he committed in furtherance of the LLC s business. The Court reasoned that the right to sue one s wrongdoer is a long-standing common law principle, and the Court would not overturn this principle unless it was the clear intent of the legislature to do so. The Court was not persuaded that the intent of the General Assembly was to overturn the common law and shield a member of an LLC from personal liability for torts committed in the ordinary course of business of the LLC. This newsletter is a service of the South Carolina Society of Accountants. Should you no longer wish to receive these messages please send an to: marie.queen@scsacct.org To ensure delivery of this newsletter to your inbox and to enable images to load in future mailings, please add marie.queen@scsacct.org to your e- mail address book or safe senders list. South Carolina Society of Accoun- 2 The Folio Issue 1, 2012

3 Continuing Education for Accountants and Tax Preparers in Columbia, South Carolina A t t e n t i o n : Tax Preparers Meet IRS Testing Requirements and Become an Enrolled Agent Take the Two-Day EA Examination Review Course CPAs, Accounting Practitioners, Certified Financial Planners, Enrolled Agents Accumulate Your Continuing Education including Ethics Hours Corporations & Partnerships (8 Hours) September 24, :30 am-5:00 pm Presented by Donald (Donny) Burkett, CPA Become an Enrolled Agent: Two-Day EA Examination Review Course (16 Hours) September 25-26, :30 am 4:30 pm each day Presented by Dennis Fish, Accounting Practitioner, EA Individual Income Tax Seminar (16 Hours) November 27-28, :30 am 4:30 pm each day Corporations & Partnerships Seminar (8 Hours) (Includes 2 Ethics Hours) September 24, at the Columbia Metropolitan Convention Center, 1101 Lincoln Street Presented by Donald (Donny) Burkett, CPA, this seminar will provide a review of new tax laws, including new tax legislation, court cases, IRS rulings and notices, and other developments. Other topics will include: Advantages and disadvantages of C corporations, S corporations, limited liability companies (LLCs), general partnerships, and limited partnerships (including family limited partnerships) Important issues, planning opportunities, and techniques essential to providing service to all business clients. Incorporation planning and the Section 83 election Small business stock incentives; corporate liquidation/dissolution rules C Corporations: AMT, shareholders and constructive dividends, Schedule M-3, avoiding the 35% penalty tax rate for PSCs S Corporations: Basis rules, longer range planning (QSST, ESBT), QSUB, pre-agi health insurance deduction reporting, GAO recommendations on noncompliance, penalty taxes LLCs and partnerships: PAL rules, qualified joint ventures, when to check the box, capital and basis, Sec. 754 assets step up Presenter Donny Burkett, CPA, is Vice President at Burkett, Burkett & Burkett. He has served as Chair of the South Carolina Board of Accountancy and President of the South Carolina Association of Certified Public Accountants. He is a graduate of USC. He is also a Partner of Resource One Health Management Service, LLC and provides management and tax advice to more than 100 medical practices in South Carolina. The Folio Issue 1,

4 Become an Enrolled Agent: Two-Day EA Examination Review Course Scheduled September 25-26, at the Columbia Metropolitan Convention Center, 1101 Lincoln Street The IRS requires competency exams for all paid tax return preparers who are not attorneys, certified public accountants or enrolled agents. The new IRS tax preparer exams will cover Individual and/or Business tax returns depending on the type of IRS forms you file on behalf of your clients. Move in the right direction to becoming an enrolled agent by taking this examination. All attendees will receive the IRS Enrolled Agent Exam Study Guide that contains the information you are most likely to see on the IRS Special Enrollment Examination. In addition, you will have unlimited online practice exams that you can log in and take after the course. The South Carolina Society of Accountants has teamed up with Fast Forward Academy to provide a two-day Enrolled Agent Examination Review Course on September at the Columbia Metropolitan Convention Center. The IRS requires competency exams for all paid tax return preparers who are not attorneys, certified public accountants or enrolled agents. By taking this course and passing the examination you will be in the same company as CPAs and attorneys with unlimited practice rights. Enrolled agents are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and before which IRS offices they can represent clients. This two-day course provides each attendee with a comprehensive Enrolled Agent Exam Study Guide and unlimited practice exam questions and answers. During this two-day course, you will cover everything you need to know to pass all three parts of the IRS test covering individual and business tax returns. By completing this two-day review course and taking the practice exams, you have more than an 81% chance of passing all 3 examinations on the first try. The practice exams are updated for the 2012 through February 2013 testing season. Presenter Dennis Fish is the founding partner of Fish, Streyffeler, & Ulmer, Ltd. He has a Bachelor of Science degree in Business Management and in Accounting from Metropolitan State College. He is licensed with the South Carolina Board of Accountancy and is and Enrolled Agent with the Internal Revenue Service. Dennis specializes in Tax Compliance to assist clients with their IRS and State tax issues. He is also involved in his community and serves as a county council member of Berkeley County. Accreditation: 16 total hours for licensed accountants and registered tax preparers. Tax preparers who take and pass the Enrolled Agent examination will not be required to take the RTRP examination. Individual Income Tax Seminar November The South Carolina Association of Accountants has scheduled a two-day Individual Income Tax Seminar on November at the Embassy Suites Greystone, 200 Stoneridge, Columbia, This comprehensive course covers the key tax issues for completing complicated Individual returns. In addition, all topics cover new legislation and extenders, revenue rulings and procedures, as well as case law to help the busy practitioner keep current on changes for The 2013 year is going to see many changes and steps taken in 2012 will have a major impact on your client s returns. Practical tips and insights are shared by practicing practitioners to help you get up-to-date for the 2012 tax season. Updated for tax legislation, IRS rulings, court decisions and other important topics that impact your clients. All recent tax acts including The latest in the registration of tax preparers Extenders and other incentives to stimulate the economy Revised education credits and benefits Net Operating Loss deduction rules and revisions Reporting fraud losses and repayment of fraudulent gains Income and exclusions from cancellation of debt Changes in principal residence rules and new home credits Evaluating conversions to a ROTH. Accreditation: 16 total hours for licensed accountants, registered tax preparers and enrolled agents. This course has also been approved by the Certified Financial Planner Board and by the South Carolina Supreme Court Commission for Continuing Legal Education. Schedule for Sept. 24, Sept and Nov :30 am...registration 8:30-10:15 am...seminar Begins 10:15-10:30 am...break 10:30-12 noon...seminar Continues 12-1:00 pm...lunch 1-2:15 pm...seminar Continues 2:15-2:30 pm...break 2:30-5:00...Seminar concludes Seminar Locations/Accommodations The September seminars are scheduled at the Columbia Metropolitan Convention Center, 1101 Lincoln Street, Columbia, SC Within walking distance of the Convention Center are two hotels that are holding rooms for attendees who need them. One is the Hilton Columbia Center, 924 Senate Street. The rate at the Hilton is $132 per night for a king or double. Call (803) and use the code L-SCSOA to reserve a room at the Hilton. The second is the Hampton Inn, 822 Gervais Street. The rate at the Hampton is $139 for a king or double. This rate includes breakfast. Call (803) and indicate 4 The Folio Issue 1, 2012

5 you are with the South Carolina Society of Accountants to reserve a room at the Hampton. The November seminar is scheduled at the Embassy Suites Greystone in Columbia. Hotel address is 200 Stoneridge Drive Columbia, SC A block of sleeping rooms is being held at the reduced rate of $129 until November 6th. After this date, this rate is subject to availability. To reserve your sleeping room, call and indicate you are with the South Carolina Society of Accountants. Continuing Professional Education Accreditation: The South Carolina Society of Accountants is a recognized continuing education provider by the US Department of Treasury-Internal Revenue Service, Provider #128. All seminars and workshops have been designed to meet continuing education requirements of the SC Board of Accountancy. Additional, program-specific accreditation information appears with individual program descriptions. Seminar Registration See form below or register on line at Registration is refundable less $25 administrative fee two weeks prior to the seminar date. No refunds after this deadline; substitutions and transfers are allowed. Register on line or mail/fax form below. Complete the form below and mail or fax it to the SCSA Office, 1215 Anthony Avenue, Columbia, SC Fax is Telephone is Not a member: membership application included with this form. Join and save. Continuing Education for Accountants and Tax Preparers in Columbia, South Carolina September 24: Corporations & Partnerships (8 hours 2 are in Ethics) at the Columbia Metropolitan Convention Center, 1101 Lincoln Street, Columbia, SC September 25-26: Enrolled Agent Examination Review Course (16 hours) at the Columbia Metropolitan Convention Center, 1101 Lincoln Street, Columbia, SC November 27-28: Individual Income Tax Seminar (16 hours) at the Embassy Suites Greystone, 200 Stoneridge Drive, Columbia, SC One-Day Only: November 27 or November 28 (circle date) By 8/27 $195/$210 By 8/27 $325/$350 By 11/5 $325/$350 $200/$225 After 8/27 $210/$225 After 8/27 $350/$375 After 11/5 $350/$375 Name: Address: Telephone: _ Licensed/Certified as q CPA q AP qea qcfp qattorney qother: Payment Method: q Check Enclosed q Credit Card: q VISA q MasterCard q American Express Credit Card Number: Expiration Date: CV Code on the back: Cardholder Name: Billing Address: Signature: Date: Total Paid: $ The Folio Issue 1,

6 South C arolina Society of Accountants Membership Application Today s Date: q Yes, I want to join SCSA q Yes, I am interested in joining SCSA. Please send me additional information. Enroll me as a member today. Name: Name of Firm: Mailing Address: City, State, Zip: Fax: Business Phone: q Sole Proprietor q Partner q Employee q Corporate Officer Name of Partner(s): Date of Birth: No. of years experience in practice: Check those that apply: q Enrolled to practice before the IRS q Licensed Public Accountant, Lic. No. & State q Licensed Accounting Practitioner, Lic. No. & State q Certified Public Accountant, CPA No. & State q Accredited by the Accreditation Council for Accountancy in: q Accountancy q Taxation Degree: Year: School: National or state accounting organization in which you now hold membership: Accounting experience (public or private) other than current position: Employer and Dates: The following references may be contacted: (Please include Name Address City, State, Zip and Phone) 6 The Folio Issue 1, 2012

7 Check below the class of membership for which this application is made: q Active Member: Persons who possess valid permits to practice as Public Accountants, Accounting Practitioners, Certified Public Accountants, or Enrolled Agents and those who are not licensed, who are now employed by licensed accountants and have been employed at least three years with a licensed firm (regardless of whether the firm or its principals are members of the South Carolina Society of Accountants) and are now accredited by the National Society of Accountants in Accountancy or Taxation shall be eligible for membership as active members. q Associate Member: CPAs who are not actively engaged in the practice of accounting but possess an interest in accounting; attorneys who possess an interest in accounting; officers and employee accountants of banks and in private industry who possess an interest in accounting; educators actively engaged in the instruction of accounting subjects; employees engaged in accounting work; governmental accountants; and individuals with an interest in the accounting profession. q Student Member: Persons pursuing a course of study in accounting, business administration, or related subjects in a college, university, business school or home study school. (Student applicants should include a letter from their school verifying their student status or a copy of their current course schedule and a copy of their student ID.) Please check amount to pay: q Active Member: $100 plus $10 application fee... $110 q Associate Member: $80 plus $10 application fee... $90 q Student Member: $15 plus $10 application fee... $25 Attach a copy of your professional stationery and business card. Outline below any information not otherwise covered in this form, that should be on file in the office of the Society. The information should indicate the fields of activity in which you are experienced or in which you have an interest. The names of professional publications you currently read, details of any experience in teaching accounting, or related subjects, and details of any membership in societies. Payment Method: q Check Enclosed q Credit Card: q VISA q MasterCard q American Express Credit Card Number: Expiration Date: CV Code on the back: Cardholder Name: Billing Address: Signature: Date: Total Paid: $ I hereby state that the accompanying statements are correct to the best of my knowledge. I further state that I will abide by the Constitution and Bylaws of the Association and will practice in strict conformity with the Code of Ethics and Rules of Professional Conduct adopted by the Society. Signature: Please return this application and fee to the SouthCarolina Society of Accountants 1215 Anthony Avenue Columbia, SC Telephone: Fax The Folio Issue 1,

8 1215 Anthony Avenue Columbia, SC The Folio Issue 1, 2012