ALABAMA CPA MAGAZINE FEBRUARY/MARCH 2014
Governmental Relations and Tax Issue
The Alabama CPA MAGAZINE Alabama Society of Certified Public Accountants P.O. Box 242987 Montgomery, Alabama 36124-2987 1-800-227-1711 334-834-7650 www.ascpa.org Officers Renee B. Hubbard, Chair Don McCleod, Chair-Elect Dr. Lowell S. Broom, Vice-Chair James R. L. Carroll, Secretary-Treasurer Steven A. Shelton, Past Chair Board of Directors James Adam Causey Allison H. Guice Paul Marcus Hamilton Kate J. Ham Sharon S. Jackson Robert Rush Letson III Bradford A. Lynch Jason L. Miller Amanda N. Paul Michael C. Reibling Matthew T. Roeder Lewis T. Shreve Chasity L. Sweatmon Daniel K. Tew Alison Nicole Cunningham, Young CPA Lindsey S. Weems, Young CPA AICPA Council Members William H. Carr Renee B. Hubbard E. Lamar Reeves Jimmy L. Williamson, Past Chair, AICPA The Alabama CPA Magazine is published by Alabama Society of Certified Public Accountants as a membership service to Society members. Views and opinions appearing in this publication are not necessarily endorsed by the ASCPA. The deadline for submitting materials for publication is the first of the month preceding issue date.
Jeannine P. Birmingham, CPA, CAE, CGMA President and CEO Diane L. Christy, Editor
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Message from the Chair... For me HAPPY NEW YEAR is just another way of saying another busy season has arrived! And by the time you read this article it will be in full swing for me and, I am sure, many other CPAs in public practice. For others, busy season may occur at a different time of the year or month. A couple of weeks ago, one of my friends told me that he “enjoys busy season” and thought I would be shocked but I really was not surprised at all. Busy season definitely brings with it many challenges such long hours, time away from family and stress. However, the consistent interaction with clients and colleagues, as well as providing solutions to complex issues, provides a great sense of accomplishment. Solving problems and finding solutions for clients is why many of us have chosen this career path. A great deal of preparation goes into busy season. Our ASCPA State Tax Committee, chaired by Tom Zoebelein, met with the ADOR in early January to discuss the changes preparers should be aware for this filing season. There are several very important changes so please make sure you check out Tom’s article on page 6. The state legislature is currently in session. In my opinion, one of the most important things your state society provides to its members is a voice in state and federal government. There are two very important items on the agenda of the Alabama Legislature this session: SB146, by Senator Jimmy Holley which expands the definition of Attest in the Alabama Uniform Accountancy Act; and HB105 by Representative Paul DeMarco, Taxpayer Bill of Rights II, which updates the 22-year-old TBOR and establishes an independent Alabama Tax Appeals Commission within the executive branch of government. Both pieces of legislation are favorable for all Alabama CPAs and our clients. Take time to contact your senator and representative and ask for their support of these important pieces of legislation. Cast your VOTE! It is time to vote on the proposed by-law amendment. You will have an opportunity to vote via paper ballot on page 15 or by email ballot. I have had the opportunity to discuss this proposal with many of you over the past few months at your chapter meetings. I truly believe this change will provide the ASCPA with a more effective board structure and also allow more CPAs the opportunity to serve at the state level. If the amendment is approved, the nominating committee will need board nominations quickly so a nomination form are also included on page 15. Each year I select ONE WORD to focus on. Last year my ONE WORD was THANKFUL and this year I selected GIVE. But during busy season I have to add another focus word – PATIENCE. Between January and April we tend to push the definition of the phrase “multi-tasking” to its limit and we expect everyone else, including our family, to do the same. Just remember to be patient with those around you and also with yourself.
AM 95 ROCKS!
ASCPA 95th Annual Meeting Save the Date June 5, 2014
Cahaba Grand Conference Center Birmingham The Alabama CPA MAGAZINE
Governmental Relations
Mr. Abroms Goes to Washington
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Marty Abroms, CPA, CPA PAC Chair
am writing this article from 25,000 feet in the air on my way back from a visit to Washington, D.C. on January 8/9. I participated as one of several Business Council of Alabama (BCA) delegates in what is called a “fly-in”. A fly-in offers the opportunity to participate in several important and informative meetings, while not spending a lot of time in Washington. We started our series of meetings with Tom Donahue, president of the U.S. Chamber of Commerce. Next stop – the Cannon House Office Building – to attend a reception for Alabama’s newest congressman, Bradley Byrne. I was also able to visit with Congressman Mo Brooks and Robert Aderholt (who represents my own Shoals area) as well as meeting other key elected officials. We finished the first day at the 1789 Restaurant in Georgetown (great food!) with Alabama Senators Richard Shelby and Jeff Sessions. Day two was a quick breakfast at The Capitol Club, followed by a rare opportunity to have an audience with Speaker of the House John Boehner. We finished our visits at the National Association of Manufacturing, a trade association that the BCA team feels we can partner with to add value to Alabama’s growing manufacturing sector. My main question to our federal elected officials was, “Are we going to be able to pass the Marketplace Fairness Act this year?” This is federal legislation that would require online retailers, with revenues over $1 million, to collect sales tax from residents of a state that impose a sales tax. It also requires states to provide internet retailers with a single point of payment to make it easier to comply with this new law. As a CPA who represents brick and mortar retailers, I feel that I must know about tax laws and regulations that impact my clients. I am very concerned that consumers now walk into my clients’ retail stores, do an internet search for a better price, and elect to purchase online because there is no sales tax charged. These uncollected sales taxes are costing Alabama’s state and local governments $300 million or more per year. I find it frustrating that several federal officials from Alabama, and other states with a comparable sales tax, do not make it a top priority. I definitely take advantage of any opportunity to emphasize the importance to me and my clients of passing this law. In addition to my role as chairman of Progress PAC, Alabama’s largest pro-business political action committee, I will also be working for the interests of Alabama CPAs by chairing your CPA PAC. I have found that the Alabama Society’s legislative goals are comparable, at both the federal and state level, to those of the BCA. So it is easy to piggyback those two roles and work to create a business-friendly environment in which entrepreneurs can create new Alabama jobs and do so without burdensome taxes and too much government regulation. My goal is straight forward: I want to try to make it easier for those who sign the front of a paycheck to have more people in Alabama signing the back of it! The only way we are going to be able to make a real difference is to be sure YOU get involved in the political process! How to get involved: 1. Educate yourself on key legislative issues that impact your CPA firm or your business and government – ASCPA’s resources to the rescue! Check the website for updates as they’re posted, watch the Tuesday Bulletin for weekly news during the Alabama Legislative Session, and read what critical issues are discussed in more depth in the Alabama CPA magazine. 2. Donate to the CPA PAC – it gives us the funding to support pro-CPA candidates for Alabama office and enables the ASCPA to provide more opportunities to participate in legislative events. The Alabama CPA MAGAZINE
3. Join the Key Person program – express your views to the elected officials you know, especially those you can vote for in your district, when the ASCPA has under consideration an important bill or regulatory issue that impacts our CPA profession. I am very excited that Jeannine Birmingham has agreed to become even more involved by serving as the chair of the BCA Tax Committee. This will give the ASCPA a greater role in the formulation of good tax policy in Alabama. She will be assisted by well-known tax attorney Chris Grissom as co-chair. As a good friend of mine once explained to me, “You can choose to get involved in the political process or be a victim of the political process.” Please make the right choice and get involved today. I am happy to answer any questions you may have about specific issues or to help you find a place to volunteer, abromsm@abroms.com.
The Alabama Society of CPAs advocates for you!
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he Alabama Society of CPAs has introduced legislation in the current legislative session that will protect work performed by certified public accountants. SB146 was introduced by Senator Jimmy W. Holley (R) expands the definition of attest. Under existing law, the term attest is defined in the Public Accountancy Act of 2003 as providing specified financial statement services, including examination of prospective financial information. This bill would expand the definition of attest to include any engagement to be performed in accordance with the Statements on Standards for Attestation Engagements, (SSAE) rather than just examination of prospective financial information. The bill also defines the term report. SB146 received a second reading Tuesday, January 21, resulting in a favorable report from the Senate Governmental Affairs Committee. Thank you for the ASCPA Key Persons who communicated the necessity of this bill to their senators sitting on the committee. There will be a House version of the bill introduced to move it forward. Support for this bill, and other measures favorable for ASCPA members and a favorable business climate, is just one of the reasons why you are a member of the Alabama Society. 3
Tax Time Alabama CPAs Serve as Volunteers Certainly ASCPA members volunteer in many ways in their communities and with the ASCPA. They also play vital roles with the American Institute of CPAs, providing input on critical issues.
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Get on Board the Tax Hotline Express!
t’s called an action line, hotline or something else, but the annual live, call-in phone lines are the biggest outreach to the general public that the ASCPA will do all year.
More than 1100 calls are fielded during the hotlines, happening this year in Alabama’s four largest markets.
Huntsville – WHNT– February 4 Jason Miller, Anglin Reichman Mobile – WKRG – February 6 Cliff Jackson, Smith Dukes Birmingham – WBRC – February 11 Beth Arnett, Humphreys & Arnett Montgomery – WSFA – February 11 Diane Christy, ASCPA What’s needed to volunteer? Just your tax guide or laptop, a listening ear and an ability to clearly answer (relatively simple) tax questions. The ASCPA provides a light supper to keep you going. Beth Arnett has been the Birmingham Chapter hotline liaison for a couple of years. “You realize that you’re talking to someone who truly needs your help. The questions can be touching as you learn about difficult family situations. You’re often functioning as a social worker as well as a trusted advisor! At the end of the evening, which flies by as you talk non-stop, you feel great. It’s a wonderful way to provide a real service using our singular skills”, she explained. 8-12 volunteers are needed for each location. Get in touch with the liaison in your area and sign up as a volunteer.
Michael L. Brand, Chair Strategic Planning Task Force and Accounting and Review Services Committee William H. Carr ASCPA Representative on AICPA Council Joe W. Garrett State and Local Taxation Technical Resource Panel Renee B. Hubbard Designated Council Representative Current ASCPA Board Chair Donald McCleod, Co-chair National Commission on Diversity and Inclusion Task Force Donald W. Murphy Professional and Personal Liability Insurance Plan Darren L. Neuschwander S Corporation Taxation Technical Resource Panel Michael A. Palmer Employee Benefits Tax Technical Resource Panel Edward Lamar Reeves ASCPA Representative on AICPA Council Edward J. Schnee Corporations and Shareholders Taxation Technical Resource Panel John P. Shank Nominations Committee Kaye F. Sheridan Individual and Self-Employed Tax Technical Resource Panel Jason A. Westbrook Joint Trial Board Jimmy L. Williamson Past Presidents/Chairmen of the Board
2013 LEGISLATORS’ TAX GUIDE
2013 Legislators’ Tax Guide
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s a public service to Alabama lawmakers, the ASCPA furnishes them (and their CPAs) with a tax guide. It was distributed to legislators at the State House the first weekend of February and is now also available on request. A huge thank you to Kee Ruland of Ruland and Ruland CPAs in Mobile, who updates this document each year. Contact Diane Christy, dchristy@ascpa.org or 334.386.5752 for a copy.
THE ALABAMA SOCIETY
OF CERTIFIED PUBLIC ACCOU NTANTS
SERVING THE PUBLIC SINCE 1919
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The Alabama CPA MAGAZINE
DOING IT BETTER AICPA Releases New Tools to Help Members Retain and Acquire Clients
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irms of all sizes continue to face competitive pressures when it comes to their tax practices. In the marketplace of tax services, CPAs must make it clear to consumers the benefits and value of hiring them over other service providers. The AICPA Tax Practitioner’s Toolkit is an ideal – and free – set of resources to bolster your current client base and actively reach out to prospective clients. The Toolkit’s messaging will help you establish yourself as a leading provider of tax services, 12 months of the year.
year round is easy with the Toolkit tools, such as website articles and tweets for consumers, as well as client letters and brochures on tax changes that require planning. The materials in the Tax Practitioner’s Toolkit help you reinforce your relationships, while highlighting the essential quality that makes them possible: No other tax preparer has the education, experience and expertise to more ably assist their clients with all their tax and financial needs than a CPA.
Getting the Word Out About Your Practice (While Saving Money and Time)
AICPA Checklists Now Ready to Use
Within the Toolkit are customizable materials intended to help you as a tax practitioner reach potential clients and be ready for business opportunities. What can you say or send as a follow up to someone who asks what you do? Is your child’s school looking for ad sponsors for a game or play program? Your local paper would likely appreciate a tax expert offering tips for their readers. The range of Toolkit resources enables you to reach consumers from many different angles, including ads, presentations, social media posts, pay-per-click ads, a sample media advisory, and brochures covering both tax law changes and the advantages of working with a CPA.
AICPA Tax Season Help Many of the AICPA Tax Checklists are now available as interactive tax checklists or for downloading in Word and PDF, including checklists for Forms 1040, 1120, 1120 S and 1065. Also ready for use is the State and Local Practice Guide. The downloadable versions are available free for Tax Section members; the online Interactive Checklists version is available for purchase by AICPA members.
Free Tax Tools to Navigate New Tax Regulations on Business Property Your members in public practice may be interested in resources from the AICPA Tax Division that will help them make sense of the 300-plus pages of regulations governing tangible property, which will affect almost every business. The Summary Chart provides a quick overview of the regulations and their key requirements. The new regulations call for taxpayers to develop written policies to take advantage of certain rules; this Sample Book Capitalization Policy provides a template for one of the policies.
AICPA Proposes Permanent Tax Disaster Relief The AICPA has proposed a way to speed the availability of aid to victims of disasters such as Superstorm Sandy or the wildfires in the West. New provisions in the tax code would provide for permanent disaster relief, triggered automatically. The AICPA outlined its proposal in a letter to the Senate Committee on Finance and the House Committee on Ways and Means.
Understanding the Benefits You Offer Key to all these efforts is an accurate sense of what sets your tax practice apart. If you were to spend the next hour – by yourself or with your staff – discussing your firm’s value, what would you come up with? You might say it’s your client service – how you manage each account. Perhaps it’s the breadth of services you offer to address a full range of client needs. Or maybe it’s how you see what is behind the numbers on a return and ask questions to gain insights which you can translate into a solid, objective plan of action.
Keeping those Great Clients Whatever specific answers you come up with, it will be time well spent. You’re likely to discover that while clients come to you for different reasons, ultimately they seek you out because they recognize your value. But it’s important not to take them for granted. Reminding clients of your value regularly and The Alabama CPA MAGAZINE
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Zoebelein on Tax
The 2014 Alabama Tax Season is here…
Are You Ready? By: Tom Zoebelein, CPA, Tax Manager with Pearce, Bevill, Leesburg, Moore P.C.
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s I write this article, it’s January and tax season is here. I thought I would go over some Alabama filing pointers with a couple of new changes for this filing season.
Can we see some ID please? Commissioner Julie Magee and members of her staff addressed the ASCPA State Taxation Committee on January 8, 2014. She expressed the department’s concern over fraudulent efiled refund claims. The department is taking action to thwart the criminals by requiring the addition of the taxpayer’s driver’s license number and date of birth for all e-filed individual tax returns (AL 40 and 40A) beginning this tax season. If the taxpayer does not have a driver’s license, then a non-driver identity card number will be accepted. Our committee was assured that advance notice was given to all tax preparation software companies in November. The new changes apply only to individual income tax returns that are e-filed, including nonresident individual tax returns. The driver’s license information will be entered under the direct deposit section of the tax return, but will not appear on the taxpayer’s paper return copy. A return can be e-filed for a taxpayer who does not have either a driver's license or a non-driver ID (such as a child or invalid) without a rejection for lacking the taxpayer’s driver’s license number. However, all e-filed individual tax returns that lack the driver’s license number will be manually reviewed by the department to determine if more information is needed to verify the taxpayer's identity prior to issuing a refund. James Lucy of the Department of Revenue
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assured the committee that this manual review is limited in scope (less detailed than a regular audit), but they could not guarantee that all manual reviews will remain limited in scope. Magee asked that we encourage our clients to use direct deposit to reduce the incidence of refund fraud. Paper checks are too easily diverted into criminal hands. A Montgomery U.S. Postal Service employee was recently convicted of stealing refund checks!
The AAA Credit The Alabama Accountability Act (AAA) credit is a new income tax credit for 2013, available exclusively to individuals and C corporations (not Sub S or LLCs). Starting with 2013, the Alabama Legislature made available a $25,000,000 AAA credit pool. Each qualifying taxpayer must secure his credit annually through the Department of Revenue website (see the October issue of the Alabama CPA magazine for more details). The AAA credit is strictly an income tax credit and is available to both resident and nonresident taxpayers. The AAA credit is established by the taxpayer’s making a cash-only donation to a qualified scholarship-granting organization (SGO) and then applying for a share of the credit pool. The AAA credit is capped at $7,500 for individual taxpayers, but is unlimited for regular corporations. The AAA credit can be applied to as much as one half of the tax shown on the Alabama 2013 tax return. Any unused credit will carry forward to the next three tax years Taxpayers taking advantage of this new credit program should receive a written acknowledgement from the Alabama Department of Revenue website showing their AAA credit (See the October issue of the Alabama CPA magazine for more details). The department will not require the preparer to verify the client’s AAA credit available to him. Any cash donations to the SGO in 2013 that failed to receive an
electronic credit should still qualify as a charitable contribution on the Alabama Tax Return, but not as a tax credit.
Say Hello to Two NEW Federal Taxes The Affordable Care Act (ACA) added two new federal taxes for 2013: a 3.8% tax on net investment income/passive income and the .9% additional employee withholding/SE tax, which both are referred to in the Affordable Care Act as Medicare taxes. The Department of Revenue will treat the 3.8% investment tax as a deductible federal income tax (above the line deduction) while the .9% addition to the Medicare tax will be treated as a Medicare payment deductible as an itemized deduction.
At Risk and Passive Losses in Alabama Bruce Ely, Bradley Arant Boult Cummings, wants to remind tax preparers that Alabama does not follow the federal at-risk rules under IRC § 465, nor the passive activity loss rules of IRC § 469. The federal limitations on these deductions do not apply to Alabama taxable income or losses. Thus, he points out, the passive loss is deductible in the year incurred for Alabama and Alabama losses are not limited to at-risk basis, despite what some tax prep software programs may require. But also remember that nonbusiness passive losses not used in the year the loss was incurred don’t carry over to any future Alabama tax year.
Electronic or Paper? The ASCPA State Tax Committee raised the issue that certain required attachments to an individual tax return cause the tax return to be filed in hard copy instead of e-filed. The example given was Form OC Part F requiring an executed notarized Form K-RRC to support the capital tax credit. The department will look into some of these issues and only require the documentation at the entity level. The department stated that a PDF copy of the attachment will be accepted so that the individual income tax return can be e-filed. The Alabama CPA MAGAZINE
Doing It Better
Best Foot Forward
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Hopefully we will see something more definite for the 2015 filing season.
PPT FILING The commissioner’s staff announced some favorable changes regarding the filing of the PPT this season. The PPT can now be filed with the individual Form AL 40 for all SMLLCs owned by the taxpayer (check with your software vendor). The department assured the committee that PPT e-filed tax due of less than $750 can be filed without electronic payment without incurring a penalty. The taxpayer will need to send the payment with a voucher.
2014 E-filing Schedule At this date, the e-filing schedule below was given by the Department of Revenue: • January 21, 2014– Form 20S, 65, PTEC • January 21, 2014 – Form PPT, CPT, 20C and 20CC. • January 31, 2014 – Forms 40 and 40NR • February 3, 2014 – Form 41
art of what your Alabama Society does is respond to members’ needs. When former board of directors member Michael Baker of Dent Baker & Co. came to President and CEO Jeannine Birmingham with a question about training of younger staff, he shared his frustration in finding a solution. “We wanted to address the issue of our younger staff who, while well-educated and with a lot of technical information under their belts, are not comfortable in social settings. Quite frankly, I looked at several different vendors to see if the training I had in mind was available. There were pieces here and there, but not the comprehensive program I wanted. As firms continue to see their seasoned senior management retire, business development becomes an issue”, stated Baker. “Bringing in new clients, or expanding the services offered to existing clients, demands a polished and confident professional, no matter their age or years of experience. We need each of our staff members to operate from that perspective.” Baker was invited to share his thoughts with Robin Brothers of The Rainmaker Companies and see if they would be willing to create a custom program for the ASCPA. That conversation gave birth to see the Best Foot Forward Workshop. “The aim of the intensive two-day program, with real life situations, is to provide young professionals with the tools they need to support their firm’s brand in the marketplace. The sessions will give them a grasp on essential business skills, including an awareness of professional image and etiquette, in order to align themselves with the firm’s strategic goals”, emphasized Brothers. The program will be tested in the spring, with a launch planned for fall 2014. Day one will consist of learning personal communication styles, discussion of business and social etiquette, exploring the definition of leadership within the firm and increasing knowledge of its brand. Then comes the fun part – a business cocktail hour and dinner in order to model the behavior learned earlier in the day. There’s nothing like putting something into practice right away to make those theories really stick. Day two will include time management and planning in the morning. After lunch, the participants will have a unique opportunity to visit with a managing partner from a major Alabama firm and to learn directly from them the value of the skills they’ve just learned. Best Foot Forward is part of the ASCPA’s Young Professionals’ Series – a block of education options for young and emerging staff members.
The Department gave this caveat: “Preparers should be aware that these are the dates when our system will be ready to receive returns. In order for preparers to submit their returns, their software vendor has to be approved by ADOR and ready to submit returns.” The Authorized Alabama Corporate, Partnership and Business Privilege Income Tax EFile Providers page at http://revenue.alabama. gov/incometax/corpefilevendors.cfm will list all approved vendors for TY2013. This list includes the Vendor Name, Form Name, Date Approved, Supported Schedules and Unsupported Schedules/Restrictions. The Authorized Alabama Individual e-File Providers (PC-Online and Professional Software) at http://revenue.alabama.gov/incometax/ PC_ONLINE.cfm. ––––– Tom Zoebelein, Tax Manager tzoebelein@pearcebevill.com
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Thanks to Bruce Ely for his contributions on Alabama at-risk and passive activity exceptions.
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The Alabama CPA MAGAZINE
SOLUTIONS
Birmingham | Mobile | Huntsville | Nashville 7
Women’s Summit
May 8, 2014 / Hyatt Regency Birmingham-The Wynfrey Hotel
9:00 – 9:00 am
Registration and Networking
9:00 am – 12:00 pm Finding Resilience in a Changing World Beth Terry, CSP
12:00 pm – 1:15 pm Luncheon and Women to Watch Awards 1:30 – 2:30 pm Restoring the World Around You: The Heart of Philanthropy Elizabeth Hutchins, Sirote & Permutt, PC
2:45 pm – 4:00 pm Who Do You Think You Are? Restoring the Past by Discovering Yours Nancy Dupree, Research Archivist, Alabama Department of Archives and History 4:00 pm – 4:20 pm
Wrap-up and Door Prizes
Finding Resilience in a Changing World Beth Terry Managing change has as much to do with resilience and a healthy perspective as it does with systems and marching orders. Your teams need information and tools to survive the rapid pace of change in their business and personal lives. This program provides four non-negotiable truths about change, a handy change path to chart their progress, and five practical tools to master the change process.
Restoring the World Around You: The Heart of Philanthropy Elizabeth Hutchins Whether you are seeking volunteer opportunities with not-for-profits, or are a seasoned board member, learn how to effectively give back to your community without losing your life. How to get started, ethical considerations, expectations, financial commitments and mentorship will all be covered in this session. In addition, there will be tips for effective charitable giving and teaching philanthropy to your children.
Who Do You Think You Are? Restoring the Past by Discovering Yours Nancy Dupree Family history research can reconnect us, not only to our own personal history, the whos and whats that makes us the people we are, but also to our families, both those still present and those long gone. It is a unique way to bring history to life, a way to connect to history that’s personal and be restored in the stories left untold. Nancy Dupree will challenge you to seek out your personal history and leave a legacy to future generations. Fee is $199 with 6 hours of Other education credits. Register on the website, www.ascpa.org. 8
The Alabama CPA MAGAZINE
Feeling Overwhelmed By The Challenge Of Payroll? W-2s
Complex Overtime Rules
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Electronic Tax Filing
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401(k)
Security SUTA
Section 125 Deductions
Payroll Accuracy
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The Alabama CPA MAGAZINE
MEMBERS IN MOTION Promotions and New Positions Clifton T. Jackson has been admitted to membership in Smith Dukes & Buckalew LLP. Jackson has over 14 years of experience specializing in tax preparation, consultation and research for individuals, corporations, partnerships and tax-exempt entities. Russell Thompson Butler & Houston announced the internal promotion of Daniel Adams, CPA to supervisor. Daniel is a 2006 graduate of Auburn University with a BS in Business Administration with a major in Accounting. His practice areas primarily Daniel Adams include financial audits, focusing on insurance companies, retirement plans and construction contractors. Joseph Barton McCurley has been admitted as a shareholder of Self, Maples & Copeland of Oneonta, effective January 1. McCurley has been with the firm since 2002 and specializes in services for long-term care clients, which includes multi-state cost reporting and audits for HUD-financed nursing home projects. He received his accounting degree from the University of Alabama. Sarah Malcom has taken a position with Christ Health Center, Inc., a non-profit health clinic in the Woodlawn community of Birmingham. She is managing the financial operations of the organization as it grows following the award of a federal grant. Christ Health Center is committed to the physical, mental and spiritual health of every patient. More than simply seeing the sick made well, at Christ Health Center strives to see the well made whole and to see each patient living life abundantly. Wilkins Miller Hieronymus announced that Lyndsey Dixon, Scott Province, and Micah Wheeler have been promoted to the position of manager and Judy Chen has been promoted to the position of supervisor. Dixon joined the firm in 2012, after receiving her MBA from Auburn Montgomery. Her undergraduate degree is from the University of Alabama. Dixon works in tax, auditing and consulting services, primarily with financial institutions. Province’s area of special concentration includes financial reporting and tax compliance for mid-size commercial businesses, employee benefit plans, and non-profit organizations for manufacturers, multi-employer retirement and health and welfare plans, charitable organizations, and local governments. He joined the firm in 2011 and was graduated from the University of Southern Mississippi with a BS in accounting. Wheeler joined the firm in 2006 and was graduated from the University of
Sarah Malcom
South Alabama with a BS degree in accounting. His area of expertise includes audits of not for profits and federal awards programs as well as accounting and tax services for corporations, partnerships and individuals. Chen concentrates on compilation and review of various business entities; taxation of corporations, partnerships, and individuals; audit of non-profit organizations, as well as accounting services including license renewal, payroll, general ledger and QuickBooks support. She joined the firm in 2008, was graduated from the University of South Alabama in 1999 with a Master of Accounting and received her undergraduate degree in 1990 with a BS in Information and Library from Central China Normal University. Richard, Harris, Ingram and Bozeman announced the promotion of Scott Lee to manager. Lee joined the firm in 2006 and actively practices in the firm’s tax and audit sectors, with emphasis in audits of local city school boards, Scott Lee not-for-profit tax and audit, and tax services to small businesses and individuals. He received his undergraduate and graduate degrees from Auburn Montgomery. Susan Cornejo is now the senior vice president and chief financial officer of Sacred Heart Health System in Pensacola. She serves in the same role for Providence Health System in Mobile, part of the same Ascension Health network as Sacred Heart. Cornejo has board experience in healthcare finance with stints at St. Vincent’s and HealthSouth in Birmingham. She is a fellow of the Healthcare Financial Management Association and serves as president-elect for its Alabama chapter.
Community News
Lyndsey Dixon
Scott Province
Micah Wheeler
Judy Chen
The Alabama CPA MAGAZINE
Jackson Thornton announced it has opened an office in Nashville, marking the firm’s further expansion into middle Tennessee. The new office is home to a group of the firm’s utilities auditors and consultants as well as a segment of the healthcare and physician practice management group. It is managed by Jackson Thornton principals George Lynch and Rod Ballard. Jackson Thornton Technologies has also expanded into the space. Lanny Crane, a principal at Jackson Thornton, has recently been honored by two organizations. He was chosen as the recipient of the Maury D. Smith Award for Excellence in Professional Ethics by the River Region Lanny Crane Ethics in Business and Public Service Group. Crane was also voted 2013 Citizen of the Year by an esteemed panel of judges on behalf of River Region Living magazine. Cecelia Hill, director at Beason & Nalley, has been nominated to serve as finance vice-chair on the 2014 Leadership Huntsville/ Madison County (LHMC) Board of Directors. Her primary role is to strategically direct the organizaCecelia Hill tion in accordance with LHMC’s mission. At Beason & Nalley, Hill offers specialized accounting and tax services with an emphasis on cost segregation consulting. She earned a BS in accounting from the University of Alabama in Huntsville and a masters of taxation from the University of Alabama.
Jeremy Jefferys, owner of the Assurance and Advisory Group at Beason & Nalley, has been accepted as a member of the Government Finance Officers Association’s Special Review Committee. Jeffreys has a strong background in audits of local governments. His experience includes preparation of Jeremy Jefferys Comprehensive Annual Financial Reports in conjunction with the Government Finance Officers Association’s Certificate for Excellence in Financial Reporting Program, performance of Single Audits in compliance with the Office of Management and Budget Circular A-133, and assistance in preparation and submission of Data Collection Form. Jeffreys earned a BS in accounting from the University of Alabama in 1998. Larry Hyatt & Associates of Brentwood, Tennessee, a specialty firm recognized as a leading authority in state and local taxes, has merged with Decosimo, a regional firm headquartered in Chattanooga, with offices in Tennessee, Alabama, Georgia and Ohio. Donald W. Nalley, Jr., owner and director at Beason & Nalley, has been named vice-chair of the University of Alabama’s Culverhouse College of Commerce Board of Visitors. Nalley specializes in business value planning, individual Donald Nalley and estate tax, small business valuation and litigation consulting. In addition to his new position, Nalley serves as an executive board member and previously chaired the finance committee. Nalley is a magna cum laude accounting graduate of the University of Alabama. He became a CPA in 1980, joined Beason & Nalley in 1984 and became a shareholder of the firm in 1986. Derrel Curry, partner at Barfield Murphy Shank & Smith, will receive the Alabama Golf Association’s Joe H. King award on March 7. In 1993, the AGA created the award to be given periodically to amateur golfers for their Derrel Curry contribution to the sport, essentially acting as a hall of fame for the organization. Curry is the 17th recipient of the honor. While Curry did not grow up playing golf, his sport was softball, he began to learn more about it when invited by a friend and neighbor to play. He became fascinated by the rules of the game. He joined Hoover Country Club after softball weekends were replaced by the needs of his growing family, and continued to learn more about the game. Curry regarded the U.S. Open as the pinnacle in golf competition and, while realizing that he’d never compete as a player, began to think about serving as an official. In 1991 he became involved with the AGA as an avenue to the USGA Rules Committee. His being a CPA was a benefit to the AGA and he ending up serving on its executive committee for the next 20 years and as an officer 1997-2002. He was introduced to officiating at local USGA qualifiers and then moved into national events, starting with the U.S. Junior Amateur. His car tag reads Rule 13-1; play the ball as it lies.
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Alabama Society of CPAs Nomination Form – 2014
CRITERIA Outstanding Young CPA – recognizes exceptional service to the Young CPA board, Young CPA chapters or individual Young CPA projects. The Young CPA Board will make the selection of this recipient. Outstanding Accounting Educator – recognizes an Alabama college accounting teacher for excellence in teaching and active involvement in the accounting profession. This award includes a $1500 stipend. The nominee need not be a CPA nor hold a doctoral degree and can include those who are presently involved in administration or research. Past winners are not eligible. The Society’s Education Committee will review and make the selection of this recipient. Outstanding Member in Business and Industry, Outstanding Member in Government, Outstanding Public Service Awards – these nominees have managed processes, technology and resources to create value; have demonstrated leadership and commitment to their organization, have acted as a strategic business partner or leader, have provided vision and knowledge of board institutional issues, have understood key non-financial and cross-functional measures and principles, have championed change and non-traditional methods and approaches, have demonstrated leadership in adopting technological change. The Public Service award candidate should have the qualities listed above, but within a community service, or special project of the ASCPA, arena. These three awards are determined at the discretion of the Nomination Committee. DEADLINE FOR ALL SUBMISSIONS IS MARCH 28, 2014. All nomination forms should be sent to VP Communications Diane Christy for distribution to the appropriate selection committee: dchristy@ascpa.org, P.O. Box 242987 Montgomery, AL 36124-2987 12
NAME of NOMINEE _______________________________________________ TITLE ____________________________________________________________ ORGANIZATION ___________________________________________________ ADDRESS ________________________________________________________ PHONE __________________________________________________________ EMAIL ___________________________________________________________ PROFESSIONAL CERTIFICATIONS __________________________________ _________________________________________________________________ PROFESSIONAL AFFILIATIONS _____________________________________ _________________________________________________________________ POSITIONS HELD IN THEIR CURRENT OR PREVIOUS COMPANIES (by title and date) 1. 2. 3. 4. DEGREES EARNED _______________________________________________ SUMMARY OF CONTRIBUTIONS IN THEIR ORGANIZATION OR THE COMMUNITY _____________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ (Feel free to add more information on a separate sheet.) NOMINATOR _____________________________________________________ PHONE __________________________________________________________ EMAIL ___________________________________________________________
The Alabama CPA MAGAZINE
STUDENT SUCCESS
Educational Foundation Scholarship Program Continues to Evolve
I
f it’s February, then it’s time for scholarship applications to be flying through the air! The ASCPA Educational Foundation’s robust program has undergone some amazing changes in the last two years, and is continuing to adapt to meet the needs of deserving fourth and fifth year accounting students.
EDUCATORS: Each school is encouraged to submit multiple candidates for both the general scholarships (one per school) and the newer statewide Chairman’s Awards (two for financial need and 5 for diversity in accounting). All of these awards are for $2500. In addition, Auburn University and the University of Alabama each have an endowed scholarship from Kassouf & Co. for $1500 and University of Alabama at Birmingham receives the Pearce Bevill Minority Scholarship in the amount of $1500.
New this year: All applications will be sent in hard copy or digitally to the ASCPA. In the past, local chapters have assisted in choosing recipients for both their own scholarships as well as the Educational Foundation awards. Due to the scheduling of university honors programs – many are now in April, in the heart of busy season – it has become very difficult to run the selection process in a timely way. Based on feedback, chapters who wish to remain involved in selection of the Educational Foundation scholarships will continue to do so. The process for chapters who choose their own scholarship recipients will not change, regardless. The ASCPA is anxious that chapters maintain close relationships with local colleges and universities. All applications will be sent to VP Communications Diane Christy, dchristy@ascpa.org, PO Box 242987, Montgomery, AL 36124-2987 and she will distribute them in a timely way to those chapters who will remain part of the Educational Foundation selection process.
STUDENTS: Contact your advisor or department head to get a copy of the application and take note of the March 3, 2014 deadline. There are separate criteria for the general, diversity and financial need scholarships. You are welcome to apply for one or all three of the awards. You will be notified by the end of March of your successful submission for the 2014/15 academic year.
The Alabama CPA MAGAZINE
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George Washington Carver
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The Alabama CPA MAGAZINE
Board of Directors News
BALLOT
Proposed By-laws Amendment
Change in Governance Structure (Notice to membership was published in the December/January issue) The amendment would allow for a more flexible and competency-based board of directors. Candidates for open seats on the board would be nominated to the membership by the ASCPA Nominating Committee and voted into office at the ASCPA Annual Meeting. Please review all the specific language changes on the ASCPA website, www.ascpa.org. 400 votes must be received to constitute a quorum, with two-thirds of the votes in favor of the amendment for it to pass.
I support the proposed amendment to the ASCPA by-laws: p YES p NO Complete your ballot and scan/email to Lacey Williams, lwilliams@ascpa.org, fax it to 334.834.7603, or mail to P.O. Box 242987, Montgomery, Alabama 36124-2987.
Ballots must be received by February 21 to be valid. Please print your name ______________________________________________________________
2014 Nomination Form ASCPA Board of Directors The ASCPA Nominating Committee is asking the general membership to nominate candidates for the 2014/15 board of directors. The Nominating Committee will review the candidates and recommend a slate of officers and board members to be voted on at the Annual Meeting on June 5, 2014. Board members should be able to address complex issues occurring in a radically-changing environment. They should possess excellent communication skills, leadership ability and be willing to actively serve. The board of directors must be competency-based; diverse in age, background and gender. Duties of board member include four board meetings and one strategic planning session per year, as well as support of ASCPA initiatives and programs. The committee encourages nominations from all membership sectors, from the 11 ASCPA chapters, and from the Young CPA Board. The Alabama CPA MAGAZINE
NAME of NOMINEE ___________________________________________________________ TITLE ________________________________________________________________________ ORGANIZATION _______________________________________________________________ ADDRESS ____________________________________________________________________ PHONE _____________________________ EMAIL ___________________________________ PROFESSIONAL CERTIFICATIONS _______________________________________________ PROFESSIONAL AFFILIATIONS _________________________________________________ POSITIONS HELD IN THEIR CURRENT OR PREVIOUS COMPANIES (by title and date) 1. 2. 3. 4. DEGREES EARNED ________________________________________________________ SUMMARY OF CONTRIBUTIONS IN THEIR ORGANIZATION OR THE COMMUNITY _____________________________________________________________________________ _____________________________________________________________________________ (Feel free to add more information on a separate sheet.) DEADLINE FOR SUBMISSION IS FEBRUARY 21 NOMINATOR _________________________________________________________________ PHONE _____________________________ EMAIL __________________________________ 15
Presorted Std US Postage PAID Permit No. 131 Montgomery, AL FEBRUARY
MARCH 2014
The Alabama Society of Certified Public Accountants 1041 Longfield Court P.O. Box 242987 Montgomery, AL 36124
Classified YOUR PRACTICE WANTED: We are North America’s leader in practice sales. Let us navigate the complexities, locate the best match from a deep pool of qualified and serious buyers, and optimize your return on the years invested in building your practice. If you are considering a change, contact Alabama broker Lori Newcomer, CPA, at (888) 277-6040 or LNewcomer@apsleader.com for a confidential discussion. Seasonal Tax Return Preparer – Montgomery CPA firm seeks seasonal tax return preparers for the 2014 filing season (February – April). Candidates must possess general understanding of individual income tax laws; proficiency in computer skills, including Excel, PDF and paperless work environment. Passed experience is preferred. Send cover letter and resume to mgm.hrdirector@gmail.com
If you have not renewed your 2013 dues, you’d better get on your bike and ride. The Membership Department wants you to remain a member! Get those dues paid and keep receiving all the great benefits of a “Member in Good Standing” of the Alabama Society of CPAs. Questions? Contact Shanna Jackson, senior manager of membership and website administrator, sjackson@ascpa.org, 334.386.5754.
In Memoriam Patti Jo Everage Luverne May 21, 1959 – Nov. 15, 2013 Certificate #6705
Betty Jo Ramsey Alexander City May 20, 1952 - Nov. 16, 2013 Certificate #7398
Junior/Senior Level Accountant – Montgomery CPA firm seeks an accountant with 2-3 years experience. CPA, experience in public accounting preferred. Candidates must exhibit excellent verbal and written communication skills, commitment to outstanding client service, strong collaboration skills, and proficient computer skills including paperless work systems. Opportunity to work in challenging, rewarding environment with potential for advancement. Competitive salary and benefits provided. Send cover letter and resume to mgm.hrdirector@gmail.com Bookkeeper – Montgomery CPA firm seeks a full-time bookkeeper with proficiency in general ledger accounting, bank reconciliation preparation, sales tax and payroll processing. Candidates must exhibit a commitment to outstanding client service, strong collaboration skills with team members, and the ability to adapt to new accounting and business systems/platforms. Send cover letter and resume to mgm.hrdirector@gmail.com Seasonal Administrative Assistant – Montgomery CPA firm seeks seasonal administrative assistant to assist with tax return assembly and other clerical duties during the 2014 filling season (January – April). Team oriented attitude and proficiency in computer skills including paperless office environment is required. Send cover letter and resume to mgm.hrdirector@gmail.com