President s Remarks. News for Arizona Tax Professionals Arizona State Chapter of National Association of Tax Professionals. AZ NATP Chapter Chatter

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1 AZ NATP Chapter Chatter Volume 13, Issue 1 Special Interest Articles: President s Remarks Arizona Update 2015 Spring Seminar Registration Chapter Chatter News for Arizona Tax Professionals Arizona State Chapter of National Association of Tax Professionals President s Remarks Hello Arizona NATP Members, Well another tax season is behind us for better or worse. This one certainly had its challenges with the implementation of repair regulations and the affordable care act, just to name a couple. NATP research helped out for federal issues while our state tax volunteers continued to be busy with Arizona questions. I lost count of the Arizona questions I received, but most just required a quick response to help out a practitioner in another state. Time compression continued with what seemed like even later brokerage statements and, for many clients, corrections after the late statements. Fortunately there are extensions which I made use of in record numbers this year. While those of us in the profession know taxes are never ending, with the crunch of tax season over, it s time to focus on gaining some education for the new issues always coming our way. Highlights: President s Remarks 1 Arizona Update 2 Calendar 2 Did You Know 2 Charitable Contributions 3 Scholarships 3 Understanding Taxes 4 Lighter Side 4 Advertising 5 NATP Benefits 6 BOD 7 Spring Seminar 8 Our first seminar of the year will be on Friday June 5 th with four great topics planned. Think you know everything about Schedule A, Mike Whittle will go through all of the changes in the past few years and give us a crucial update. Come find out what you ve been missing and learn how to find what the GAO estimates as approximately $1.3 billion dollars a year in over paid taxes. We survived tax season but what s been going on while we were busy. Find out the latest in pending legislation as well as best practices in implementing the affordable care act, accounting change rules and identity theft issues. Lin Leclair and I will present an interactive post tax season update. Do you have clients who come in with multiple K1 s for their publically traded partnerships? George Harris will discuss everything you need to know to properly report these complex K-1s on your clients' tax returns including unique passive activity rules applicable to PTPs. Still confused about all of the changes on rental property? The repair and capitalization regulations have undergone several changes over the past three years. Sharon Lewis will cover these and clarify the new rules created and how they apply to rental real estate and the schedule E page. If you re looking to get out of town and also get some great education, the National Conference will be held in New Orleans July We ll have an Arizona chapter gathering here as well details announced in our next newsletter. Also, save the date for our annual conference held October 22 & 23. Nationally recognized Dale Boushley will be the main speaker for both days. We look forward to seeing you at these events. If you have questions or comments regarding anything that relates to the chapter, please don t hesitate to contact me or any other board member. Andrew Mark, CPA President, AZ-NATP andrew@ajmarkcpa.com

2 AZ NATP SPRING 2015 NEWSLETTER Page 2 of 7 Arizona Quick Update Andrew Mark, CPA The Arizona legislature adjourned on April 3 rd with the session lasting just 81 days, the shortest in more than 40 years. The governor has signed Internal Revenue Conformity (SB 1188). Annual update classes in BOTH Phoenix AND Tucson this year. Other bills passed include yet another update to the transaction privilege tax and allowing the public school activity credit to be taken up to April 15 th of the following year beginning with the 2015 tax year. We ll have annual update classes in both Phoenix and Tucson this year so look for those so you can be ready to do tax season all over again. AZ NATP Calendar of Events AZ NATP Spring Seminar Friday, June 5, 2015 Embassy Suites, Tempe AZ *Up to 8 CPE AZ NATP Tax Update Friday, December 4, 2015 Embassy Suites, Tempe AZ *Tucson date to be announced. *Up to 8 CPE NATP 2015 National Conference July 20-23, 2015 New Orleans, Louisiana AZ NATP Annual Conference October 22 nd & 23rd, 2015 Embassy Suites, Tempe AZ *Up to 16 CPE DID YOU KNOW THAT Lin Leclair, EA Johnstown, Pennsylvania was devastated by a flood that killed nearly 2,000 in the late 19th century, and in 1936 another flood damaged the town. That led to the state of Pennsylvania passing a tax on alcohol, the proceeds of which would be used to rebuild the city. By 1942, enough money was raised to rebuild Johnstown, yet the tax exists to this day, and brings in around $200 million a year for Pennsylvania. New York City places a special tax on prepared foods, so sliced bagels are once as food and again as prepared food, thus creating a sliced bagel tax. Maine has special tax on blueberries, a valuable state resource. Pennsylvania has a tax on coin-operated vacuum machines at gas stations. Pittsburgh has a 5% amusement tax on anything that offers entertainment or allows people to engage in entertainment. States like Iowa, Pennsylvania, and New Jersey exempt pumpkins from sales tax but only if they will be eaten and not carved. In 2005, Tennessee began requiring drug dealers to anonymously pay taxes on illegal substances they sold. In Arkansas, body piercings, pet grooming, and gutter cleaning are all subject to a 6% sales tax. More Did You Know That in the next issue. Stay tuned.

3 Page 3 of 7 AZ NATP SPRING 2015 NEWSLETTER Taxpayers Must Have Excellent Records on all Charitable Contributions Camala Templeton, EA Did you know that taxpayers are required to have accurate records documenting charitable contributions over $250? Okay, maybe you knew that but did you know that the IRS may deny claims even with a letter from the organization? According to Code Section 170(f)(8), a deduction is allowed if the taxpayer substantiates by written acknowledgement that includes The amount of cash donated and a description of any property other than cash contributed. Whether the donee organization provided any goods or services in consideration, in whole or in part, for any property. A description and good faith estimate of the value of any goods or services. This acknowledgment must be obtained on or before the tax return is filed or the due date including extensions for filing the return. Here is a notable case: Durden v. Commissioner: The taxpayers claimed charitable contributions to their church totaling $22,517 (each donation was $250 or more). Their proof was cancelled checks and a letter from the church acknowledging receipt. The taxpayers claim was denied because the letter did not include a statement that neither goods nor services were provided as consideration for the contributions. The church issued a subsequent letter; however, it was tardy. It must be contemporaneous (dated on or before the return was filed). When receiving acknowledgement of charitable contributions that exceed $250, the responsibility is the taxpayers to ensure that the acknowledgement includes the statement about goods and services. Check receipts and get a correction prior to filing the return. References: 26 U.S. Code 170 (f)(8) - Charitable, etc., contributions and gifts Durden V. Commissioner, T.C. Memo , Docket No IT S NOT TOO LATE Michael Whittle, EA, MBA Scholarships AZ NATP hopes to encourage and support its members that are interested in a career as an Enrolled Agent (EA). The objectives of the AZ NATP Scholarship are outlined as follows: To enable a member of our professional association who is actively involved in the tax preparation profession to continue their education. The goal of the program is to assist our members to gain an understanding and appreciation of a career in the tax profession with an EA designation. To motivate members to consider a career as an Enrolled Agent investigating this career path within accounting. Compared to someone of the same education and experience, an EA can earn significantly more per year more than a typical tax professional. (Source: PayScale.com.) The AZ NATP will award Two (2) EA scholarships for the 2015 academic year. All interested, tax professionals who do not have a CPA, or EA designation are encouraged to apply for the scholarships. Deadline for submitting applications is December 1, For more details and an application, contact Mike Whittle at mwhittle1@hotmail.com or Burton Carter at taxer@citlink.net.

4 AZ NATP SPRING 2015 NEWSLETTER Page 4 of 7 UNDERSTANDING TAXES: AN IRS TAX EDUCATION TOOL Camala Templeton, EA The IRS offers a free online tool to help teachers and students learn about Federal taxation in an easy manner. The program is web-based and comprehensive. If you are teaching tax theory courses during the off-season, this may be a valuable resource. It was designed by teachers for teachers. The program includes thirty-nine lessons and is user friendly. The user can skip lessons and move around as needed. For instructors, it allows the use of their own lesson plans and customization. The content is updated each fall. To access the Understanding Taxes site go to: IRS.GOV and search for key words UNDERSTANDING TAXES. Enjoy! IRS.GOV ON THE LIGHTER SIDE

5 Page 5 of 7 AZ NATP SPRING 2015 NEWSLETTER ADVERTISE IN THE AZ NATP NEWSLETTER The AZ NATP Board has adopted the following policy with regard to adverting in this newsletter. Business Card Size: Maximum size of 1 column wide (2") by 3.5" long. Horizontal or Vertical placement will be agreed upon between the client and the Newsletter Committee Chair. Non-Members to be charged the following: One newsletter $50 each time / Two newsletters $40 each time / Three newsletters $30 each time (Same Ad, No Changes, Paid Up Front). Members will get a 50% discount and will pay for same, in order: One $25/Two $20/ Three $15 (Same Ad, No Changes, Paid Up Front). Quarter Page Size: No larger than 2.5 times larger than the business card size. Horizontal or Vertical placement will be agreed upon between the client and the Newsletter Committee Chair. Non-Member to be charged the following: One Newsletter $100 each time / Two Newsletters $90 each time / Three Newsletters $80 each time (Same Ad, No Changes, Paid Up Front). Members will get a 50% discount and will pay for same, in order: One $50 / Two $45 / Three $40 (Same Ad, No Changes, Paid Up Front). Half Page Size: No larger than 5 times larger than the business card size. Horizontal or Vertical placement will be agreed upon between the client and the Newsletter Committee Chair. Non-member to be charged the following: One Newsletter $170 each time / Two Newsletters $160 each time / Three Newsletters $150 each time (Same Ad, No Changes, Paid Up Front). Members will get a 50% discount and will pay for same, in order: One $85 / Two $80 / Three $75 (Same Ad, No Changes, Paid Up Front). This is a great opportunity for you to reach all the members of AZ NATP so that you can fill your needs for employees, sell tax-related products, or search for a new job! Please contact Camala Templeton, EA at camala@1stchoicetaxservices.com for advertising opportunities in the newsletter. Like us on Facebook

6 AZ NATP SPRING 2015 NEWSLETTER Page 6 of 7 Your Chapter provides you with great networking opportunities, educational events, state government representation, and more! NATP BENEFITS NATP strives to bring you success in your business through many member benefits designed for the busy tax professional. Research Services: Remember to use your FREE research answer. Our on-site staff of federal tax specialists answers over 30,000 questions every year on a variety of complex tax issues and will provide supporting documentation at no extra charge. Plus, members get one FREE answer every calendar year and discounted rates on subsequent answers. Tax Store: Supplies and educational material for the tax professional. The NATP Tax Store is the one-stop shop your business needs plus members get a discount! Here s just a sample of the great items you ll find: -Client Folders -Record Saver Envelopes -Record Books & Organizers -Client Brochures -Tax Tips Client Newsletters -Reference Books Publications: Get the latest tax news and updates. Education: Flexible choices to give you the CPE course you want. Choose from outstanding live workshops, facilitated online, self-study, and webinars. Members get discounted rates on all our education. Representation & Advocacy: Your views are represented. NATP works to protect your right to practice and shares your concerns and views with key IRS personnel and government officials. NATP Affinity Partners: Group Buying Power! Get great prices on insurance (E&O business, medical, personal), credit cards and processing, collections, and office supplies. Chapters: Another FREE Member Benefit Not only do you get this great newsletter, but your Chapter also provides you with great networking opportunities, educational events, state government representation, and more!! We make complex tax issues easy to understand and feature business and practice management information in our three publications: TAXPRO Weekly and Chapter Weekly , TAXPRO Monthly newsletter, and TAXPRO Journal - yours FREE with membership. Contact the NATP National office for more information at or , ext. 3.

7 Page 7 of 7 AZ NATP SPRING 2015 NEWSLETTER 2015 COMMITTEES Bylaws: Michael Morrison, EA Chapter of the Year: Sharon Lewis, EA Community Betterment: Sharon Lewis, EA Education: Lin Leclair, EA Electronic Communications: Camala Templeton, EA Fund Raising: Sharon Lewis, EA Government Relations: Michael Morrison, EA Membership: Lou Bates, EA Member Recognition: Lou Bates, EA National Conference: Samantha Whittle, EA Newsletter: Camala Templeton, EA Nominating: Mike Whittle, EA Professional Standards: Michael Morrison, EA Scholarship: Mike Whittle, EA AZ NATP BOARD OF DIRECTORS 2015 CENTRAL REGION NORTHERN REGION Director/President: Director: Andrew Mark, CPA Michael Whittle, EA, MBA andrew@ajmarkcpa.com mwhittle1@hotmail.com Director: Director/Secretary: Sharon Lewis, EA Sandy Barrett, EA, MEd sharon@lbstax.com sbarrett_ea@msn.com SOUTHERN REGION AT LARGE Director/Vice President: Director/Treasurer: Lin Leclair, EA Samantha Whittle, EA lin@1stchoicetaxservices.com sam@metrotaxgroup.com Director: Director: Camala Templeton, EA Lou Bates, EA camala@1stchoicetaxservices.com tempetaxlady@gmail.com Director: Michael Morrison, EA morriscat@morfinserv.com If you are interested in volunteering, please contact any of the board members.

8 ARIZONA CHAPTER - NATP SPRING SEMINAR Friday, June 5th, 2015 Join us for up to 8 hours of CPE on current issues and expand your tax knowledge of the Schedule A and Publicly Traded Partnerships. You will receive two hours each of: Form Schedule A, Hot Topics, Publicly Traded Partnerships, and Rental Regulations. EMBASSY SUITES 4400 S. Rural Road, Tempe, AZ RESERVATIONS: Reserve Your Room By May 22th, 2015 for the AZ-NATP Room Rate of $89 Group Code: ATP Free Wi-Fi in Conference Room AZ-NATP ~ AN NATP AWARD WINNING CHAPTER EARN UP TO 8 CPE CREDITS* ~~SCHEDULE & TOPICS~~ AGENDA & SPEAKERS (subject to change) FRIDAY, JUNE 5, :00AM TO 4:25PM 7:00 AM Sign-In Register For Seminar & Continental Breakfast 7:55 AM Seminar: Form Schedule A Presented by: Michael Whittle, EA 9:55 AM Hot Topics Presented by: Andrew Mark, CPA & Lin Leclair, EA 11:35 AM Lunch Time! 12:35 PM Publicly Traded Partnerships Presented by: George Harris, EA 2:35 PM Rental Regulations Presented by: Sharon Lewis, EA 4:15 PM Arizona Bucks & Pick Up CPE Certificates *Disclaimer: Eight hours of Continuing Professional Education will be issued to Enrolled Agents. Lawyers, CPAs and other professionals are responsible for reporting their CPE credits in accordance with the requirements of their regulating or certifying organizations. They may obtain more or less CPE credit depending on those requirements. Topics, speakers and order of presentations are subject to change. Food presentations are subject to change by venue.

9 ~~SPEAKERS~~ MICHAEL WHITTLE, EA, RTRP is a nationally recognized tax professional and frequent lecturer on taxation. Mike has obtained permanent Arizona Community College certification as a professor in Federal Taxation and business courses. Mike has taught accounting, federal taxation and business courses at Mohave Community College for 8 years and has worked in tax preparation for more than 30 years, becoming an Enrolled Agent in His education includes a BS from the University of Central Texas, a BA from St. Leo College and, a Masters in Business Administration from California State University. He is a "Fellow" of the National Tax Practice Institute. Mike is a member of NATP and NSA. As an AZ-NATP board member, Mike has served as president, vice president, treasurer and has been chairperson and member of many committees. Mike was elected to the NATP National board in 2004, where he served as treasurer for one year, acting vice-president for one year and as the National President for six years. ANDREW MARK, CPA Andrew Mark has been a CPA since 1993 and has a B.S. degree in Finance from Arizona State University. A second generation CPA, Andrew started his CPA firm in 2002 and completes just over 400 individual and small business returns annually. He also offers Quickbooks support, tax consulting and IRS representation to clients. He has been a member of NATP for 9 years and an Arizona chapter board member since December During his time as a board member, Andrew has tracked legislative changes proposed and enacted in Arizona and is currently the President of AZ-NATP. He is also a member of the Arizona Society of CPA's and serves as volunteer Treasurer of a Scottsdale Pet Therapy Group that brings dogs to nursing homes. LIN LECLAIR, EA, RTRP Lin majored in Accounting at the University of Maine. She has been working in the tax business for 21 years and has been an Enrolled Agent since June of She has successfully represented multiple clients in IRS audits. She is a frequent presenter for the state society of National Association of Enrolled Agents and the National Association of Tax Professionals. Lin also serves on the Board of Directors for the Arizona Chapter of National Association of Tax Professionals, currently as Vice President and Education Committee Chairperson. Lin resides in Tucson where she is a founding partner and President of 1st Choice Tax Services, Inc. GEORGE HARRIS, EA George is a co-owner of 1 st Choice Tax Services in Tucson with Lin Leclair. He has over 17 years of experience with preparing complex returns, managing a Premium tax office for H&R Block, and instructing advanced level tax courses. He has been an Enrolled Agent since 2005 and holds a Bachelor s degree in Computer Science from Purdue University. After moving to Tucson in 1989, he operated a small business for over 10 years, where he experienced the many challenges facing small business owners, and takes pride in being able to provide clients business, accounting, record keeping, and tax advice to make their jobs easier. SHARON LEWIS, EA received her B.S. degree in Accounting from the University of Phoenix. She is a CPA candidate. Sharon began her career in taxes working briefly for a CPA firm before forming Lewis Business Services in Sharon s main areas of practice are accounting and income tax for small businesses. Prior to completing her degree, Sharon worked in banking and finance for over ten years and achieved the position of Operations Manager. Sharon is presently serving on the AZ-NATP board of directors. She also serves as auditor of a not for profit organization. Sharon and her husband, Bill, live in the Phoenix area with their two children.

10 Arizona Chapter June Seminar June 5, :00 AM 4:30 PM Embassy Suites 4400 S Rural Rd Tempe AZ Name: Member ID#: Designation(s): License #: PTIN #: Address: City: State: Zip: Phone: Emergency Contact Name & Number Registration Fee After 5/26/15 Member $135 $160 Non-Member $160 $185 Note: Meal is included with registration. REGISTRATIONS MUST BE RECEIVED AT NATP BY CLOSE OF BUSINESS JUNE 4, 2015 AFTER THAT DATE, PLEASE REGISTER AT THE DOOR. Payment Method: Credit Card or Checks made payable to NATP Name as it appears on CC: CC #: Signature: Exp. Date: How To Register: Mail To: NATP, PO Box 8002 Appleton, WI Phone: , Ext. 3 Fax: Online: Cancellation Policy: To cancel your registration, you must notify NATP no later than May 22, 2015 to receive a refund. Cancellation fee is $50