ASSOCIATION OF TAX PROFESSIONALS. And the Award Goes to...

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1 ALABAMA CHAPTER NATIONAL ASSOCIATION OF TAX PROFESSIONALS SEPTEMBER 2013 VOLUME 3 ISSUE 2 Delete text and place photo here. And the Award Goes to The Alabama Chapter was awarded the Community Betterment Award this year at the national conference in Arizona. We are getting closer and closer to reaching the goal of being the overall Chapter of the Year. As we continue to grow and succceed as the Alabama Chapter don t forget to send in special or community betterment activites in which you have participated in Also if you have been honored or won any type of award in relation to your tax business these will count as well. Please send this information to Deb Lewis by the end of the year. (teamdeb@cableone.net) WHAT IS INSIDE.. Page 2 From the Education Chair. Page Fall Conference Agenda Page Fall Conference Registration Page 5 Member Highlight Page 6 GA NATP Invitation Page 6 Simplified or Actual? Page 7 Time to Cast Your Ballot Page 8 Government Relations Page 9 At the Corner of 230 & Circular Page 10 Little Humor/What Would You Do? Page 10 Board of Directors Contact Information "Coming together is a beginning. Keeping together is progress. Working together is success. " ~ Henry Ford

2 From your Education Chairman.. Dear Membership, As your education Chairman, I am working on the finalization of our Annual Membership & Fall Education Seminar. It is coming together very nicely. I am planning on a two hour networking class with heavy hors d oeuvres with someone from each table presenting what they discussed and asking for room discussions during the last forty-five minutes to an hour of the time. This will take the place of our Round Table class. Hopefully everyone will bring their business cards to exchange and allow us to make some new friends. Be sure to mark your calendars now with the date: November 7 th & 8 th, Please find below in this newsletter the registration form and agenda for the fall conference. Go ahead and reserve your room and register for conference. Hope to see everyone in November. I would like to take this opportunity to thank the Alabama Membership for awarding me 2012 Chapter Person of the Year. I thoroughly enjoyed National Conference very much and feel I obtained allot of great information to use at the Chapter level. I did attend Sunday s Leadership Meeting and the out-break classes. One of the out-break classes was Bridging the gap with the State wherein I was all fired up about putting together a State Tax Topics Only one day seminar!!!! How does this sound to you?? I plan currently to ask for a representative from the following departments: Individual Income Tax, Corporate Income Tax, Business Privilege Tax, Unemployment Tax, Sales & Use Tax and someone just with information on using their new MAT system as individuals and bulk filers. If you have anything not covered in these areas, have an idea SEND IT TO ME!! kathystax@millry.net (You can send topics and/or ideas for 2014 now also.) The current tentative date for the State Tax Topics Only one day seminar is December 9th. Watch the Chapter Weekly for updates and registration information. Thank you again for your time and I look forward to seeing each of you in November! Kathy R. Hallford, EA RTRP 2

3 ANNUAL MEMBERSHIP MEETING & FALL EDUCATION SEMINAR 2013 November 7 & 8, 2013 Pelham Civic Complex Pelham, AL APPROVED AGENDA 4:30pm 5:50pm 6:00pm - 8:30pm WEDNESDAY, November 6, 2013 Education Committee Meeting Board of Directors Board Meeting Kathy Hallford Board of Directors THURSDAY, November 7, :30am 8:00am Registration 8:00am 8:10am Welcome & Opening Comments Hallford 8:10am 9:00am (NATP) Divorce & Taxes (Basic) 9:00am 9:10am Break 9:10am 10:00am (NATP) Divorce & Taxes (Basic) 10:00am 10:10am Break 10:10am 11:00am (NATP) Independent Contractor vs. Employee (Intermediate) 11:00am 11:10am Break 11:10am - 12:00pm (NATP) Independent Contractor vs. Employee (Intermediate) 12:00pm 1:00pm LUNCH 1:00pm 1:50pm (NATP) Liquidation & Post Liq. Issues (S Corp - Advanced) 1:50pm 2:00pm Break 2:00pm - 2:50pm (NATP) Liquidation & Post Liq. Issues (S Corp - Advanced) 2:50pm 3:00pm Break 3:00pm - 4:40pm Federal IRS Updates 2013 Liaison 4:40pm - 6:00pm Annual Businesss Meeting 6:00pm - 8:00pm Round Table Networking with Hors D oeuvres FRIDAY, November 8, :30am 7:50am Registration 7:50am 8:00am Welcome 8:00am 8:30am New Officers & National Representative 8:30am 9:20am Federal and State Tax Legislative Update 9:20am 9:30am Break 9:30am 10:20am Handling Tax Audits (Intermediate) 10:20 am 10:30am Break 10:30am 11:20am Ethics (Basic) 11:20am 12:10am Tax Issues Specific to Non-Profit Organizations (Intermediate) 12:10am -- 1:00pm LUNCH 1:15pm 2:55pm Affordable Health Care (Basic) 2:55pm 3:15pm Break 3:15pm 4:55pm Alabama Updates 2013 Lorene Reed, Treasurer Shirley Bolt & Kathy Dorothy Atchinson, EA Dorothy Atchinson, EA Beauford Young, RTRP Beauford Young, RTRP Brittany Dionne, RTRP Brittany Dionne, RTRP Nora Huffman, IRS Shirley Bolt, President Board of Directors Shirley Bolt, President NATP Representative Blake Madison. Esquire Blake Madison, Esquire Blake Madison, Esquire Blake Madison, Esquire IRS (Webinar) Ann Winborne, ADOR 3

4 REGISTRATION FORM: Fairfield Innn & Suites Hampton Inn & Suites 232 Cahaba Valley Rd 230 Cahaba Valley Rd. Pelham, AL Pelham, AL (205) (205) We have a Block of rooms reserved at both of the above referenced hotels; they are right next to each other; with the Pelham Civic Complex immediately behind the hotels. The Civic Complex is within walking distance but free shuttle service is provided when desired to the Complex or to Birmingham s many Restaurants and Shopping Areas. Special rates of Single/Doubles $95 or Suites $115 plus taxes; have been arranged under GROUP CODE NATP Special Rates End October 18, 2013: YOU MUST CALL THE HOTELS DIRECT AT THE ABOVE TELEPONE NUMBERS! AL NATP Members Early Registration fee is $175.00; Non-Member Registration is $ Registration Name: NATP ID#: Designation(s): License #: Address: Alabama Chapter National Association of Tax Professionals Annual Membership Meeting & Fall Education Seminar 2013 November 7 & 8, 2013 Pelham Civic Complex Pelham, AL ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~ ***We will be doing a toy drive again this year for the Children s Hospital. Please bring an unwrapped toy as donation for the children at the Children s Hospital. ****** PTIN #: City: State: Zip: Phone *18 IRS CPE CREDITS* IRS PROVIDER # 9ZMJ *The number of Continuing Professional Education credits is as stated for RTRP & EA and is currently under review. The number of hours of Continuing Professional Education may be subject to interpretation, and ultimately, it is the responsibility of each Circular 230 Practitioner to understand and comply. Different Professional organizations may have different requirements/specifics for qualifying Continuing Professional Education Credits. The Educational AGENDA will accompany this registration form either by attachment or included in an Alabamaa Chapter Newsletter. Non-member joining the NATP at the meeting will receive a $25 Gift Certificate to the Spring Fling Education Seminar Early Registration Fee for NATP Members is $175.00, if paid and received by October 17, If paid and received AFTER October 17, 2013, the fee for NATP Members will be $ NON MEMBERS ARE ALWAYS WELCOME! Registration fee for NON MEMBERS is $ Registration includes the networking meal. For each additional person: spouse, guest or child, etc. the fee is $25.00 for each additional person(s) please add the $25.00 fee to your registration fee. CANCELLATIONS: There will be NO refunds of paid registration fees after. October 31, Written Cancellation for paid registration fee received on or before October 31, 2013 (postmark date will apply) will have a $50.00 charge withheld from the refund for administration costs. FOR MORE INFO CALL: Kathy Hallford Deb Lewis Shirley Bolt Make Payment (checks or Money Orders only) of registration fee to: AL CHAPTER NATP C/O: Lorene Reed PO BOX , Tuskegee, AL Tele: r_lorene#.net 4

5 MEMBER HIGHLIGHT... Nelda Bunch's honest nature has been the key to her success in South Mobile County. She has been a tax preparer for twenty-eight years and is the most trusted name in her community where tax and accounting are concerned. Being a registered tax return preparer is not the only accomplishment that Mrs. Bunch has achieved in her life. She was the first licensed woman's auctioneer in She was also the champion bid caller for Alabama in As diverse and full of personality as Nelda is it was only natural that she would incorporate the same kind of character into her business. Bunch Income Tax is located in St. Elmo. Although "tax" may be in the name of the business it is not the only servicee the Bunch provides. Aside from state returns, Bunch Income Tax helps with Tax Preparation, Bookkeeping, Sales Tax, Payroll Taxes, Notary and Accounting services. She stays ahead of her peers by attending classes to learn about changes in the tax industry yearly. Her licenses are current and clearly displayed for the public and never a hint of dishonesty can be detected. Nelda is a remarkably interesting woman who enjoys life, work and accomplishments. Each newsletter a different member will be highlighted. This is to allow us to get to know one another. Sometimes we go to conference and do not get to meet everyone. Getting to know other members allows for networking and the building of a successful chapter. 5

6 Simplified or Actual? How many of you have clients or maybe even you have offices at home? The new simplified method for the home office deduction for the 2013 tax year may be an option. Our Neighbors from the GA Chapter have invited us to attend their annual fall conference in Dillard, GA. Their conference is Sept , Check the link below for more details to include the schedule and lodging information. Looks like it is going to be a wonderful conference. oducts.php (if unable to click, copy and paste into your web browser.) Sometimes clients come into the office and they may not have very good documentation of their numbers for the home office deduction. All of their numbers seem to be rounded perfectly ending in zeros or they may even be pulling numbers from the sky. Using the simplified method for the home office deduction reduces the amount of recordkeeping and calculations required. The rules do not change in the fact that the area of the home must be used exclusively for business on a regular basis. Also the deduction cannot exceed gross income from business use of home less business expenses. These are the same whether you take the actual or simplified method for the deduction. When using the simplified method there is a limitation of up to 300 square footage allowed. Currently the standard rate per square foot is $5. This will allow a maximumm deduction of $1,500. There is no depreciation deduction and no recapture of depreciation upon sale of the home. The simplified method also allows qualified home related deductions to be deducted on Schedule A. These will include items like mortgage interest and taxes which are normally prorated when using the actual expense method. Continued on Page 7 6

7 CONT. FROM PAGE 6 ACTUAL OR SIMPLIFIED? The simplified method does not allow a carry over any amount in excess of gross income limitations. In the year the simplified method is used any loss carryovers from the actual expense method cannot be claimed. Here is where I question if this method is actually simplified or not. A taxpayer may choose the simplified method or the actual expense method for any given tax year starting in Once a method is chosen for a tax year they must stick with that method for that particular tax year. However the following year they can then choose again which method to use. This is where the simplified becomes not so simplified. If a taxpayer chooses to go back and forth between the two methods over several years and then decides to sale his home it can create a monster trying to determine the recapture of depreciation. It will be the burden of the taxpayer to track all of this information. This will be ok if it is a long time client however if it is a new client, they may have trouble finding all the necessary information. TIME TO CAST YOUR BALLOT Our November meeting every year is also our "annual" meeting. This means that it's Board nominations time. Nomination to the Board is for a three year term. After the Board is in place each year, then officers are chosen from the Board of Directors. This is done at the annual meeting also. Officer's terms are for a one year period. Board members and officers can be reelected for more than one term. This year we have 4 members scheduled to rotate off and one resignation. So we have five vacancies to fill. If you are one of the Board Members scheduled to rotate off, you need to let us know if you desire to continue on the Board and be considered for another term. (I will notify you individually also.) Anyone desiring to be on the Board has to be a member in good standing with NATP. You need to have the time to devote to Chapter activities, as well as a dedicated desire to improve our Alabama Chapter. There are many of you out there with knowledge and leadership strength to share and we sincerely want you as part of our Board. You will be asked to verify in writing that you would like to run and to present a short bio to the membership in November before the vote. Please consider adding your integrity and concentration to our Chapter Leadership quest. We know that there are many talented people in our Chapter - assess your own qualities and let us hear from you! We need you on board. Contact Lorene Reed (r_lorene@att.net) or Deb Lewis (TeamDeb@CableOne.net) and let us know you want to be considered. Thanks. Deb and Lorene. 7

8 GOVERNMENT RELATIONS---where do I go from here?! IRS is in a situation that we fear for our clients: their operating funds have been slashed, their hands are tied because of action/inaction of Congress, and they are getting much bad publicity and ill will from taxpayers and tax professionals. On top of that, they are unable to collect what is owed because of cuts in staff, lack of training for new employees, and inability to fill vacancies. As professionals we must stay informed and at present no one seems to know what is going to change for tax year We must continue to act within current laws although it looks as if we may be hit with last minute changes, retroactive legislation, and/or holds on anticipated form changes relating to health care, retirement requirements, etc. NATP has representation in constant contact with what is going on in DC. Our liaison, Larry Gray, and CEO Kathy Stanek are often up there behind the scenes to represent US and our clients. They pass on to us all info they receive once it can be revealed. They are working for us and our tax payers. Our IRS Liaison in Birmingham, Nora Huffman, will be able to have a fall meeting after all. Some speakers may speak through teleconferencing but that worked well at the Spring meeting. I will keep you informed of any new developments I receive. CHANGING HATS-as custodian of our chapter documents I was involved in a discussion at the National Conference concerning what can be done with the large accumulation of information (paper!) that chapters are accumulating. I currently have two large boxes for our chapter that goes back to the first meeting! A fantastic suggestion was made!! SCAN ALL DOCUMENTS TO A CD OR STICK. The entire history of the chapter can be put on one device and each member of the Board of Directors can be given a copy. It can be updated following each meeting and new disc/stick made following the most recent Annual Meeting. PLEASE GIVE THIS CAREFUL THOUGHT!! Continued on Page 9 8

9 Cont. from page 8 At the Corner of 230 & Circular Question: As defined by Circular 230, what is the defintion of a contingent fee Last Newsletter's Answer: If any (some) of you have the equipment to scan, the willingness to do the work and the time required to do this please VOLUNTEER! It is quite a challenge and perhaps more than one person can do this each do a section then put it onto a single disc/stick. ANOTHER ISSUE DISCUSSED AT NATIONAL: The need of Chapters to have a Sgt. at Arms (Parliamentarian). I was proud to be able to say The Alabama Chapter has one and it is a great asset in keeping order and getting scheduled work done. ALABAMA TAX INFO: Remember, you can go to ADOR website and get the Revenue Review Quarterly. The current issue (1 st Qtr) reports the retirement of Cynthia Underwood who has been to many of our meetings and was always ready and willing to discuss state issues with us. Info on use tax and refund cards is also available. If you are not familiar with this publication please make it a habit to check it out each quarter. A new one should be published very soon for 2 nd Qtr. See you in November at Pelham Civic Center!! Dot Atchison 9

10 A Little Humor What Would You Do? Taxpayer comes into your office and wants to claim the mileage deduction. He says he has 30,000 business miles and it is used 100% for business. He has no mileage log but does have a W-2 from the employer. Delete text and place photo here. What questions would you ask? How would you proceed? ALABAMA Chapter of National Association of Tax Professionals 2013 Board of Directors Quick Contact Information SHIRLEY L BOLT Shirley@shirleysacct.com Office: KATHY HALLFORD kathystax@millry.net Office: WESLEY MOTT Wes.Mott@abkpg.com Office: DOUGLAS CRUMP djcrump@rrbusiness-solutions.com Office: ROGER HORTON ohnotaxes@yahoo.com Office: DEBORAH LEWIS teamdeb@cableone.net Office: LORENE REED R_lorene@att.net Office: BEAUFORD YOUNG bo@afm-inc.com Office: PAUL YOUNG paul@afm-inc.com Office: EARLENE CLAYTON earlytax@earthlink.net Office: DOROTHY ATCHINSON abctax@earthlink.net Office: Any comments, suggestions or concerns reference the newsletter please direct them to Brittany at: alstaxservice1@centurytel.net or