The Kansas Society of CPAs Presents:

Transcription

1 The Kansas Society of CPAs Presents: Led by: John C. Tripp, Ph.D., CPA May 8, 2012 Fundamentals May 9, 2012 Advanced & Update 8:00am 3:45 pm Reception follows Conference on May 9 EACH DAY: KSCPA/PASOK Members $280 Non-members $330 8 Hours CPE / 8 Hours CLE Credits Applied For CO-SPONSORED BY: Chet L. Buchman, CPA, Member, Swindoll Janzen Hawk & Loyd, LLC, McPherson Kathy Mitchell, CPA, Operations Partner, Brungardt Hower Ward Elliott & Pfeifer, LC, Hays Mitch Caddell, CPA, Manager, BKD, LLP, Wichita Krista R. Burdick, CPA, Manager, Flint Hills Resources, Wichita Michelle Schneider, CPA, Manager, Adams, Brown, Beran & Ball, Chtd. Mary Rapp MacBain, CPA.CITP, CGMA President/CEO, KSCPA, Topeka New workshops for 2012! This workshop covers the fundamental concepts of income taxation of the oil and gas industry with a primary emphasis on the oil and gas producer. The tax treatment of costs incurred in the exploration, acquisition, development and production of oil and gas is covered. Two videos may be shown to provide an introduction to the industry and to illustrate the drilling of oil and gas wells. This workshop provides experienced practitioners with in-depth coverage of complex issues encountered in the acquisition, operation and disposition of oil and gas properties. It also brings practitioners up to date by focusing on current developments relating to the major tax principles applicable to upstream operations. Special Rates Available at Holiday Inn at The Campus (Across from the KSU Alumni Center). Call before 4/20/2012 for KSCPA rate. CLICK HERE TO REGISTER: Fundamentals Advanced on or call

2 The Kansas Society of CPAs Presents: Led by: John C. Tripp, Ph.D., CPA May 8, 2012 Fundamentals May 9, 2012 Advanced EACH DAY: KSCPA/PASOK Members $280 Non-members $330 8 Hours CPE / 8 Hours CLE Credits Applied For CONFERENCE SCHEDULE: May 8: May 9: 08:00 08:30 am 07:30-08:00 am Registration & Continental Breakfast Alumni Center Banquet Room 08:30 08:35 am Welcoming Remarks 08:35 10:00 am 08:00 9:30am Workshop with John C. Tripp, Ph.D., CPA (see description/objectives on following page) 10:00 10:10 am 09:30 09:40 am Break 10:10 12:00 pm 09:40 11:30 am Workshop (con t) 12:00 1:00 pm 11:30 12:15 pm Lunch 01:00 02:30 pm 12:15 01:45 pm Workshop (con t) 02:30 02:45 am 01:45 01:55 pm Cookie Break 02:45 0 4:30 pm 01:55 3:45 pm Workshop (con t) 03:45 4:45 pm Reception Sponsored by PASOK Barrett Wildcat Den CO-SPONSORED BY:

3 May 8, 2012 Fundamentals This course will cover the fundamental concepts of income taxation of the oil and gas industry with a primary emphasis on the oil and gas producer. The tax treatment of costs incurred in the exploration, acquisition, development and production of oil and gas will be covered. Two videos may be shown to provide an introduction to the industry and to illustrate the drilling of oil and gas wells. This course can be taught as the first day of a two day program. The materials for this program include a complete copy of the IRS MSSP on the Oil and Gas Industry. The author's outlines are cross referenced to the MSSP as well as CCH's recently published treatise Oil and Gas - Federal Income Taxation (2011 Edition). These reference materials will be used to highlight the IRS's position on various oil and gas tax questions, cases and revenue rulings. Recently published oil and gas industry Coordinated Issue Papers will also be discussed. The taxation of the exploration and development of natural resources is very specific to the industry and very different from regular tax accounting rules. Concepts like the "pool of capital" doctrine, that allows certain tax free conveyances of oil and gas property interests, are not applicable to any other industry. Other very specific rules regarding geological and geophysical expenses, the current deduction for IDCs, special depreciation recovery periods and cost and percentage depletion are unique to this industry. If CPAs or their clients are involved in the oil and gas business the knowledge of these special industry tax rules is essential. Any new industry rules promulgated during President Obama's administration will be covered in detail. Who should attend? Tax professionals involved in oil and gas industry's upstream operations and tax professionals whose clients own oil and gas mineral interests. The people who will most benefit from this program are tax staff, tax supervisors and managers moving into the oil and gas industry. This course will also serve as a great review for senior level managers and practitioners that have had prior experience in the industry and are seeking to reenter the field. Objectives Objective 1: To gain an understanding of the upstream operations of the oil and gas industry and to understand the nomenclature used to describe oil and gas mineral interests and their economic characteristics. Objective 2: To understand the basic conveyancing transactions common in the oil and gas industry and to understand the tax implications arising from those conveyances. Objective 3: To identify and determine the proper tax treatment for geological and geophysical expenditures. Objective 4: To compute depreciation on lease and well equipment under MACRS rules or the units of production method. Objective 5: To identify intangible drilling and development costs (IDCs) and to understand the requirements that must be met in order to take a current deduction for IDCs. Major Subjects Working definitions for oil and gas mineral interests and other industry terminology, including the unit of property and an economic interest Geological and geophysical costs Proper tax accounting for the leasing transaction, the subleasing transaction, including lease bonus, sublease bonus, and delay rental payments Depreciation issues specific to oil and gas exploration and production companies Proper tax treatment of IDCs, including what they are, the election to currently expense, and an election to capitalize IDCs under section 59(e)

4 May 9, 2012 Advanced & Update 8:00am 3:45pm Followed by Reception Sponsored by PASOK This workshop will provide experienced practitioners with in-depth coverage of complex issues encountered in the acquisition, operation and disposition of oil and gas properties. It will also bring practitioners up to date by focusing on current developments relating to the major tax principles applicable to upstream operations. This course can be taught as the second day of a two day program. The materials for this program include a complete copy of the IRS MSSP on the Oil and Gas Industry. The author's outlines are cross referenced to the MSSP as well as CCH's recently published treatise Oil and Gas - Federal Income Taxation (2011 Edition). These reference materials are used to highlight the IRS's position on various oil and gas tax questions, cases and revenue rulings. Recently published oil and gas industry Coordinated Issue Papers will also be discussed. Who should attend? Tax professionals involved in the oil and gas industry's upstream operations and tax professionals whose clients own oil and gas mineral interests. All the participants that have taken the Oil and Gas Taxation: Fundamentals CPE Course. Objectives Objective 1: To determine the proper cost depletion and percentage depletion for each unit of property: including barrel limitations, taxable income from the property limitations, and the 65% of the taxpayer's taxable income limitation and the use of depletion carryovers. Objective 2: To understand the proper tax treatment of sharing arrangements and carried interests. Objective 3: To determine the proper tax consequences upon the sale or abandonment of an oil and gas mineral interest. Objective 4: To understand the AMT issues relating to the IDC tax preference item and the election to capitalize IDCs under section 59(e) to help ameliorate the AMT burden. Objective 5: To properly apply the like kind exchange rules regarding exchanges of oil and gas properties, including the Section 1254 recapture provisions. Major Subjects Complex percentage depletion calculations, limitations, and the use of depletion carryovers Sales of oil and gas properties with an emphasis on current deal structures Sharing arrangements, carried interests and other "pool of capital" transactions AMT issues, including the Section 59(e) election Like kind exchanges of oil and gas properties Electing out of subchapter K and gas balancing agreements Proper tax treatment of IDCs, including what they are, the election to currently expense, and an election to capitalize IDCs under section 59(e)

5 John C. Tripp, Ph.D. is a Tax Professor with teaching responsibilities in the School of Accountancy and the Graduate Tax Program at the University of Denver (DU). Dr. Tripp has been teaching income taxation at DU since 1979, specializing in the taxation of natural resources, property transactions and consolidated returns. His public accounting experience includes a two year stint with KPMG prior to his teaching career, and while on a leave of absence from DU he worked in the National Tax Department of Ernst & Young as a Visiting Professor for two years. He has also spent two sabbaticals gaining practical professional experience with the Denver offices of KPMG and Arthur Andersen & Co. He is an active member of the American Taxation Association and Co-chairman of the COPAS-Colorado Tax Committee. John is a former Trustee of COPAS-Colorado and a past member of the Washington, D.C. S Corporation Study Group, as well as past Treasurer of the Denver Tax Group. He has served on several tax committees of the Colorado Society of CPA's, and has been a member of the University of Denver's Tax Institute Planning Committee for many years. His articles have been published in many professional journals including: The Journal of Taxation, Taxes - The Tax Magazine, The Tax Advisor, The Journal of Partnership Taxation, Accounting Horizons, and The Oil and Gas Taxation Quarterly. He is also a contributing author to Tax Management Inc.'s Tax Practice Series on S Corporations and Thomson's tax textbook series Federal Income Taxation and Individual Federal Taxation. In addition to writing continuing professional education courses for MircoMash (including: Oil and Gas Taxation and Alternative Minimum Tax - Corporate), he has written and presented programs to numerous professional groups and tax institutes around the country. Most recently he has made presentations to the 52nd Annual Texas CPA Tax Institute, Texas Society of CPAs; the Kansas Society of CPAs 2007 Annual Tax Institute; and the 2007, 2008, 2009 and 2010 AICPA-PDI National Oil and Gas Conferences.