ASCPA Connections - Nov/Dec 2023

NOVEMBER

P R ACTI C E M A N AG E M E N T I S S U E

•

DECEMBER

2023

RETHINK...

your approach to ERTC with FREE resources to help CPAs assess the advantages and potential risks for their clients regarding the Employee Retention Tax Credit

MANDATES

PARTIAL SUSPENSION

APPROPRIATE DOCUMENTATION

SUPPLY CHAIN

REMEDIATION

Resources

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Access Our Free Resources

TABLE OF CONTENTS

FEATURES 6

Practice Management Challenges

12

DEI Is Evolving: Is Your Firm Keeping Up?

Jerry W. Grant, CPA, PFS

2023-24 ASCPA BOARD OF DIRECTORS James White, Jr., Chair Sarah Propper, Chair Elect Mandy Barksdale Cathy Dover Bruce Fryer Matthew Hilburn Kendra James Michael Kassouf Jeremy Mosteller Amanda Paul Paul Perry Joseph Wynn Dennis Sherrin, AICPA Council Rep Jamey Carroll, AICPA Council Rep S. Jon Heath, Past Chair CHIEF EXECUTIVE OFFICER Jeannine Birmingham, CPA, CAE, CGMA CONTRIBUTING WRITERS Jerry W. Grant, CPA, PFS Andrea Wright, CPA Sarah Beckett Ference, CPA Deborah K. Rood, CPA Marc Hamilton, CPA, CGMA Rick Meyer EDITOR Megan G. Hughes, APR

Andrea Wright, CPA

14

Succession and Practice Continuation Agreements

Sarah Beckett Ference, CPA, and Deborah K. Rood, CPA

16

On the Cover Leveraging Historic Tax Credits: A Discussion into the Revitalization of Prestwood Building in Andalusia, Alabama Marc Hamilton, CPA, CGMA

@ALsocietyofCPAs

Advertisers in this issue

Inside the ASCPA

Silicon Ledger .......................................................... 2

Message from ASCPA CEO Jeannine Birmingham ......... 4

Camico ........................................................................... 6 Bahwan CyberTek ............................................... 10 CORVEE ........................................................................... 23 Vindex Financial Partners/Ameritas 26 Accounting Practice Sales .......................28

Message from ASCPA Chair James White, Jr. ....................... 5 Member News .......................................................................................................... 24 Classifieds ..................................................................................................................... 26

November / December

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FROM THE CEO House is not working, so our bills, like all others, are at a standstill. To further complicate the legislative process is yet another due date, 11/17, for Congress to approve a Continuing Resolution to avoid a government shutdown.

Also note an incredible statistic that only 4% of federal legislation passes in a two-year period. In my opinion, we will be back at the drawing board in 2024.

The profession expects significant growth in both AI and ESG. Generative AI is reshaping the accounting and finance process. What is it? Generative AI is trained on different sets of data, text, images, 3D models, etc., to learn patterns to create content with predictive results. Automated financial reports, personalized advisory services, and workflow efficiency enhancements are

Greetings ASCPA members. This month’s article is going to be a little different.

Having just returned from the AICPA Fall Council Meeting, I thought I would take this opportunity to share information on a few professional issues. I will also discuss the work your ASCPA team is undertaking with Pipeline Initiatives. There are many professional topics, and I know it comes as no surprise that change happens about as quickly as we can say the word.

AICPA’s Fall Council meeting was held last month in Pasadena, California, a beautiful city indeed. Joining me to represent Alabama were Jamey Carroll (Huntsville), Dennis Sherrin (Fairhope), and James White, Jr. (Birmingham).

From the top, we heard from Barry Melancon, CEO of AICPA, and Susan Coffey, CEO Public Accounting, on issues to include current federal legislation, ESG growth, Generative AI, and Human Capital issues. Before a highlight is shared, please know there is a deep dive of information on these issues at aicpa.org.

Where are we on certain federal legislative issues? STEM – we have a vehicle to move the legislation, which would add accounting to the definition of STEM, in both the U.S. House and Senate, and the profession has increased the number of bi-partisan sponsors in both chambers. Similarly, we have strong bi-partisan support in both chambers for an extended date for BOI (Beneficial Ownership Information) requirements. As of this writing, unfortunately there is no elected Speaker of the House. No legislation can move if the

4

ASCPA Connections

examples of how CPA organizations are using generative AI. In the area of ESG, CPA firms surveyed expect an 84% growth in ESG assurance services. ESG assurance services will offer financial statement readers a broader set of company information such as governance, environmental sustainability, and human capital strategies.

Lastly, AICPA Council offered several opportunities to learn more and discuss more about human capital, pipeline recruitment and retention matters. We heard updates on the Pipeline Acceleration Plan, statistics from the very recent AICPA Trends Report, and updates from the National Pipeline Advisory Group.

Back at home, recognizing talent pipeline as a top concern among members, the Alabama Society of Certified Public Accountants (ASCPA) Board of Directors has spearheaded several initiatives to engage students and young professionals.

First, we developed a Career Decision Tree visual to help students explore accounting paths, expected salaries, and more. Next, we will launch a survey of young professional members focused on retention and advancement. Finally, member testimonials will highlight diverse accounting careers for media and student presentations.

These “quick wins” arose through the Board’s collaborative efforts to expand the pipeline. We have also seen growth in existing programs like high school outreach partnerships, a new diversity student event called Balance Sheet Bash, and university webinars for undecided freshmen. Graduate

student speakers further spread accounting awareness with high school visits.

To further address talent pipeline challenges, the Alabama Society of CPAs staff recently held a strategic planning session with several educators and CPA firm recruitment leaders.

This collaborative exercise generated three additional key initiatives to explore in coming months: 1.

Establishing regional educator forums for professors and students. These events would allow direct conversations to better understand enrollment barriers, concerns, and reasons students leave the accounting major.

2.

Developing an introduction to accounting course and resources for college freshmen. Many students switch majors when facing debits and credits in their first class without understanding the varied career paths accounting offers.

We aim to clearly communicate the profession’s opportunities and potential.

3.

Launching a campaign to positively showcase accounting careers, particularly CPAs, throughout Alabama media. With accounting often portrayed unfavorably in popular media, a local awareness effort could highlight the profession’s value, diverse roles, and social impact.

By creating new tools, gathering insights from educators, students, and members, and expanding outreach, ASCPA aims to inspire the next generation of accounting professionals. We appreciate our Board’s commitment to addressing this critical need.

If you have questions about the information shared here, or if you want to join our efforts, please contact me. I hope that everyone enjoys the upcoming November and December holidays. I am thankful for the chance to serve you and work with dedicated ASCPA Board and committee volunteers, and I am blessed to work with the best team who are fully dedicated to their role in serving Alabama’s accounting profession.

FROM THE CHAIR Guten Tag! As I write this, I am on my way out of the

by “staying the same” you, by default over

Country, much to the dismay of my team, to

time, become worse by losing efficiency and

spend my daughter’s fall break broadening

competitiveness. As, we all know, efficiency

her horizons and practicing her German.

and competitiveness are paramount in our

You have likely noticed a theme from me

profession.

as I prepare these messages. I implore you all to take time and smell the roses. Let us never lose sight of the things that are most

As I mentioned previously, the task of

important; without our family and friends

continually evaluating and modifying

none of this would have purpose or meaning.

practices, policies and protocols, can be daunting. I was taught that the best way to eat an elephant is ‘one bite at a time’. I

You have likely just gotten past the extension

believe that is the approach we must employ

crunch for taxes and are preparing for the

to continue to push forward. It is our hope

2023-24 busy season, industry depending.

that this issue will give you a few shortcuts to

This is a great moment to pause and take a

help maximize your time. If you don’t find the

look at your firm’s practice management. The

answer inside the issue, then we hope that

factors to consider can be quite daunting

you will reach out to the amazing staff at

because it covers “everything”; just to name

the Alabama Society. They strive to connect,

a few we have software and technology,

protect, and educate you to enhance the

policy and process, recruiting, talent

profession (and your opportunities inside it) in

management and development, billing and

Alabama and beyond. We deeply appreciate

collection, customer or client satisfaction,

the opportunity to serve you; we are thankful

social media, marketing, service offerings,

for you. We are so very excited about the

etc. I am so happy to report that we have

future of the profession. As we approach the

sooo many things in the works at the ASCPA

2023 holidays and the 2023/2024 busy season,

to assist you in your endeavors. We expect to

we wish our members and their families a

issue toolkits, videos, and webcasts over the

wonderful Christmas and holiday season. May

coming months to hopefully add value and

we be reminded of our many blessings and

take some of the weight off our members.

give thanks for them.

If there is one thing that I have stock of during

Auf Wiedersehen!

James White, Jr. 2023 ASCPA Board Chair

my career, even in a profession as aged as public accounting, we must remain dynamic as the world around us continues to change.

It is that adaptability, that will allow us to continue to flourish and remain an attractive launching point for careers and livelihoods.

A firm’s ability to do that starts and stops with Practice Management. It is quite often we can get caught in the trap of “set it and forget it” when it comes to the topic. I think that is a critical misstep. Last year’s chair, Jon Heath, provided a great quote last year “either we get better or worse every day – there is no staying the same”. I expand on that by saying in some cases

November / December

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36th Annual Governmental Accounting & Auditing Forum

December 4-6 Office of Alabama Society of CPAs Don’t miss this annual conference hosted by

Darlene Adkins Auburn University at Montgomery

ASCPA! Whether attending in-person or via live

Dean Mean Carr, Riggs &

Lisa Parker, CPA Governmental Accounting Standards Board

webcast, this year’s conference is sure to be another can’t-miss event.

Hear from a powerful slate of speakers, to include a four-person panel session focusing on

Marena Messina University of Alabama at Birmingham

Kathleen Baxter State of Alabama

pipeline issues and unique ways to operate with a shortage of accountants. Participants will also

Susan Wilhelm Alabama Department of Finance

hear from experts on topics such as ChatGPT, AI and Data Analytics Application in Governmental Accounting.

Cathy Dover Carr, Riggs & Ingram

Marc Hamilton CDG Engineers and Associates

Register by November 13 to take advantage of an early registration discount!

Amanda Senn Alabama Securities Commission

Learn more at alabama.cpa/GAAF. Rachel Riddle Alabama Department of Examiners of Public Accounts

November / December

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Practice Management Challenges

By Jerry W. Grant, CPA, PFS

Leaders of today’s CPA firms face a litany of challenges (e.g., staff shortages, pipeline issues, AI usage/implementation, outsourcing, new professional standards/guidance, mergers and acquisitions, retiring partners, staff hesitating to take the CPA exam, and rising health insurance costs). I had a profound thought developing, but making that list stressed me out and sidetracked my brain. Let’s try a different approach: I’ll share my current “To Do” list for doing a better job managing our practice in 2024.

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ASCPA Connections

1.

2.

3.

Stop doing and start thinking. Writing that statement makes me cringe. Yes, I’m fully aware that engagement planning has been a requirement, and I should be well versed in this. Most of us came up through the ranks of public accounting with a billable hours goal hovering over our shoulders and an abundance of deadlines pushing us into action just to keep our heads above water. The concept of stopping action and truly just contemplating the future makes me feel like a slacker. I recently saw a quote at a managing partner conference: “Creativity Requires Time.” My perception is that creativity requires “free time” and cannot simply be a segment of another fully scheduled day at the office. And, yes, I fully believe the challenges we are facing require true creativity to develop adequate solutions to best serve our firms in the future. We need adequate down time away from work to reboot our minds and creative abilities. If my wife ever reads this, I have a distinct image of her rolling her eyes at me saying this. So, I pinky swear, to actually take time away from the grind of the office to think about and create our best future.

“Borrow” the great ideas of others. I have had the honor of working with and speaking with some great firm leaders over my career. I revel in asking them how they do things and what has worked well at their firms. I gladly take the best ideas I come across and run with them; we’re all in this together. I am committing now to allocating more time in 2024 to attend industry meetings and conferences and to asking a truly embarrassing number of questions of my peers.

Change perspectives. I am a “past-middle-age” Caucasian male that has worked at the same firm for going on 36 years. I comprehend that my views, expectations, and approaches to the future are skewed by my experiences. Every day, I attempt to understand what my fellow firm owners, our other professional staff, and our future team members will want from the firm. I acknowledge that my default solution to overcoming challenges has always been to simply work longer and harder. That approach has served me well over my career, but I am cognizant of the high price it carries. I want our firm to provide wonderful opportunities for all our team members and to do so in a way that still provides for a life outside of work. I am committing to having discussions with our team members, and to truly listening to them to understand how to provide the best work environment, learning opportunities,

and atmosphere for professional advancement we can. Caveat: I recognize that foosball tables and chair massages don’t directly correlate to getting work out the door. Perhaps there is happy medium between the old school approach and an enlightened present environment.

4.

Look for the possibilities. How we do our work has morphed in amazing ways during my time in the profession. Wonderful new tools continue to become available, and I want us to identify and utilize those resources. Further, I want to guarantee that we consider and develop new services for our clients. We are problem solvers, and a basic tenant of our profession is serving our clients and the public.

I believe that foundation will allow our profession to continue to evolve beyond our historic compliance roles and allow us to be true agents of change for the betterment of our clients’ businesses and finances. Perhaps AI and robotic processes will give us some bandwidth to help our clients in even more meaningful roles. I wish I had some artistic ability; I have an image in my mind of a Cyberdyne Systems Terminator T-800 in the pure exoskeleton form sitting at a table, working on my clients’ 2023 income tax returns that I would love to submit for this article.

The conversation bubble above the drawing (in a presumptive Austrian accent) would read, “No, you can’t deduct that!” Perhaps the robots will allow all our CPA brethren to go forth providing enlightened advisory services rather than passé compliance services.

5.

Have the best intentions. Most firm leaders that I know are still heavily involved with the day-today operations of their firms. We worry about the financial results of our practices and making sure that we get the work done for our clients. My goal for 2024 is to always remember that firm leaders are here to serve our firms, our team members, and our clients. Hopefully, I can live up to this one.

My best wishes to you for 2024, and may you accomplish all your “To Do’s”!

Jerry W. Grant, CPA, PFS Bern, Butler, Capilouto & Massey, P.C.

November / December

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CPE WITH ASCPA We have a list of CPE FAQs on our website which address accessing your ASCPA account, logging into a CPE course, and finding your transcript. There is also a section on surveys, which must be completed within seven days after a course in order to process CPE certificates.

Please read over this short FAQ page: alabama.cpa/cpe-faq,

K2’s Technology Conference Virtual 11/9/2023 - 11/10/2023 Various | 8 Other Shorten Month End: Closing Best Practices Virtual 11/10/2023 (7:30 AM-11 AM) John Daly | 4 AA 2023 Business & Industry Conference Virtual 11/15/2023 - 11/16/2023 Various | 8 CPE

2023 Government Accounting & Auditing Forum Hybrid 12/4/2023 - 12/6/2023 Various | 16.0 CPE

See the latest course offerings at alabama.cpa/catalog/events.

Nov. 15 - 17, 2023 Birmingham

Alabama Federal & State Tax Institute Hybrid 11/15/2023-11/17/2023

2023 Women’s Leadership Forum Virtual 12/8/2023 (7 AM-3:30 PM) Various | 8 PD Tax Webinar with Jim Martin Virtual 12/12/2023 (8:30 AM-4:30 PM) Jim Martin | 8 TX

Coming January 2024 January 16 in Huntsville January 17 in Birmingham January 18 in Montgomery

In January 2024, a new event will be coming to Alabama’s HBCU community – and will offer motivational speakers, leadership training, networking, as well as on-site interviews with sponsors. This impactful series will be held over three consecutive days in Huntsville, Birmingham, and Montgomery. We will bring accounting students from Alabama HBCUs to one of the three program locations. This event is free for students, and intended for those majoring in Accounting, or a student from a college of business major who may be interested in learning more about Accounting. It’s easy to participate - and we hope you will!

alabama.cpa/HBCU

DEI Is Evolving: Is Your Firm Keeping Up? To attract and connect with a new generation of CPAs, firms must renew their commitments to creating a more equitable—and transparent—workplace.

By Andrea Wright, CPA Like many other industries, the accounting profession has had to navigate a lot of challenges in recent years.

The most obvious being the COVID-19 pandemic and the resulting hiring and retention difficulties. Though, in my opinion, maybe one of the more threatening issues, and more specific to the accounting profession, is the stagnating CPA pipeline—a troubling trend that industry stakeholders, including the Illinois CPA Society, have been warning us about for many years. The resulting talent shortage we’re now seeing is, in part, a result of national college and university accounting degree programs continuing to see declining enrollments, compounded by a decline in new candidates pursuing the CPA credential.

According to a May 26, 2022, report from the National Student Clearinghouse Research Center, undergraduate enrollment declined 4.7% from spring 2021 to spring 2022, which follows a 4.9% decline from spring 2020 to spring 2021. This means undergraduate enrollment has now fallen by nearly 1.4 million students since the COVID-19 pandemic started (i.e., spring 2020 to spring 2022), compared to 2.6 million students over the past decade.

With the profession’s candidate pool shrinking more every day, it’s imperative for firms to use every recruiting tool available to them to attract the next generation of CPAs. 12

ASCPA Connections

More importantly, if firms wish to remain relevant, they need to rethink how they connect with this incoming labor force.

Connecting with a New Generation of CPAs One powerful way to make connections with any job candidate is to show them how the values of your organization mirror those they’re seeking. For students and young professionals, this increasingly means showing a commitment to diversity, equity, and inclusion (DEI) in the workplace.

According to a recent Monster survey, 83% of Gen Z individuals stated that an employer’s commitment to DEI plays a significant role in their decision-making process when choosing where to work. Another survey by Staffing Industry Analysts found that 75% of candidates would reconsider applying to a company if they were unsatisfied with the organization’s DEI efforts.

I think it goes without saying that firms need to consider these stats and pivot their recruiting strategies if they plan to have any sway in ushering in a new generation of CPAs. Also, it’s important to understand that Gen Z candidates don’t operate within the same rules of the generations

before them. Decisions about where to work, what kind of work to pursue, and what kind of colleagues they choose to surround themselves with are largely influenced by their values around culture and diversity. Not only is Gen Z the most diverse generation within themselves, but they expect their future employers to increase the diversity of their organizations to reflect society more accurately.

If we’re going to help improve the CPA pipeline, it’s in our profession’s best interest to embrace incoming policy changes and use them as a catalyst for forging connections with the talent we want and need. Now more than ever, prospective employees want you to put your money where your mouth is—right now, that’s in your job descriptions.

Equity Calls for Pay Transparency For Gen Z, a clear indication that DEI is an organizational value is a commitment to making their culture more equitable. Over the past three years, in particular, there’s been a significant increase in companies promoting their DEI and sustainability targets, goals, and initiatives. It’s now common to see organizations supporting open forums, bias training, and the formation of DEI committees, among other actions, to show their employees they’re committed to cultural change and are making strides to achieve equity.

Andrea Wright, CPA Partner, Johnson Lambert LLP ICPA member since 2010.

This column was reprinted courtesy of Insight, the magazine of the Illinois CPA Society, and was co-authored by Lyndsey Wells,

One area of historical inequity that’s garnering greater attention today is pay. Pay transparency laws have cropped up in many states, including Illinois. One major step taken to enhance equity throughout Illinois was amending the Equal Pay Act, making it unlawful for any employer with 15 or more employees to not include a pay scale for any job posted in the state. In this case, pay scale is defined as the salary or hourly wage range that the employer reasonably expects to pay for the posted position. Notably, studies have indicated that including a pay range within a job posting has had a positive impact on reducing the gender pay gap and inequity for other marginalized groups.

recruiting manager with Johnson Lambert LLP.

While pay transparency isn’t without its challenges, firms should view it as an additional tool in their recruiting toolbox. Whether you agree with it or not, this change is coming. Firms need to adjust their perspectives and think of pay transparency not as another challenge to overcome but rather as a way to differentiate themselves and illustrate renewed commitment to the DEI initiatives they may have committed to years ago.

Simply put, employees’ DEI expectations are evolving and are playing increasingly bigger roles in guiding them toward employers. DEI is no longer simply about supporting minority employees and having conversations that provide new perspectives. Now, employers must be prepared to show top-down commitment to stated DEI and sustainability policies, with demonstrated buy-in at every level, to attract top talent.

November / December

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Succession and practice continuation agreements

By Sarah Beckett Ference, CPA, and Deborah K. Rood, CPA In late March, a 44-year-old CPAtriathlete was getting ready for a morning run before a busy day at work.

While getting dressed, he suddenly had a massive stroke. His wife was able to call an ambulance and get help quickly, but the CPA was in a coma for a week and hospitalized for several months thereafter.

How can you avoid putting your spouse, child, other family member, or friend in this position? Entering into a practice continuation agreement (PCA) with another CPA to help you plan and prepare for the unimaginable.

The CPA was a sole practitioner, and the April 15 tax deadline was approaching. His wife, who had no prior experience with his business, was thrust into having to address the impending deadline, all while juggling her career, their three children, his care, and her feelings and emotions.

A PCA provides for your practice to be assumed by another firm or individual in the event of your death or permanent or temporary disability.

It details who, how, and when another CPA will step in to assist should the need arise. The purpose of a PCA is to decrease the likelihood of a significant break in the client service, and, depending on the size of the firm, assure staff of continued employment.

She frantically searched her husband’s records, looking for someone who might be able to assist his clients, as she knew he would not want to leave them in a lurch. Even though she eventually found help, the process took an unnecessary and perhaps avoidable emotional toll on everyone.

Unfortunately, this is not an uncommon situation. The AICPA Professional Liability Insurance Program regularly hears from spouses and children who are left to fumble their way through their loved one’s business and client needs while processing their own grief.

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ASCPA Connections

What Is A Practice Continuation Agreement?

Unfortunately, according to the 2020 AICPA CPA Firm Succession Planning Survey, only 6% of sole/solo practitioners report having a PCA. On a slightly brighter note, 47% of survey respondents understood the need for a PCA but didn’t know how to get started.

How To Get Started Analyze your practice and its value Understanding your practice can help identify what type of PCA is

appropriate. Perhaps you want to partner with another sole practitioner and you both agree to be the successor for the other. Perhaps you and several other CPA firms agree to act as successors for the group, asking clients to select a new CPA from among the surviving members. It is important to understand the benefits and risks of each type of PCA and to select the one most appropriate for your practice.

Reviewing your practice can also help to assess its value, as compensation is a typical element of a PCA. Armed with this information, you can then identify potential successors.

Identifying candidates Next, identify a successor that will help your clients if necessary. What is the potential successor’s client service philosophy? Management style? How much will clients and staff need to adjust, or will the transition be more seamless? Will the potential successor’s professional experience support your client’s needs?

In most PCAs, the purchase price is based upon clients retained by the successor. As a result, it is important that the successor have the capacity and expertise to retain and continue

serving your clients.

How to identify potential successors?

Consider other firms you know from professional associations, conferences, and volunteer activities. What about current or former employees? Your state CPA society may be able to identify potential successors as well.

Constructing the agreement The PCA should address the assumption of your practice for both temporary and permanent situations, including triggering events. Consult with an attorney familiar with PCAs to help draft the agreement. Like any good plan, it is recommended that the PCA be reviewed periodically to ensure the plan is ready for action when necessary. From a professional liability perspective, the following items should be addressed in the PCA:

Workpapers: Your firm’s workpapers are needed to support previously delivered services and to allow the successor to continue to efficiently serve clients. Address how a copy of your firm’s records will be transferred to the successor in the PCA. Note that your original records should be retained and maintained by your estate in accordance with your record retention policy. Finally, if tax information for individual tax clients will be shared with the successor, the next of kin should obtain client consent that meets the requirements of Internal Revenue Code Sec. 7216 before information is transferred to the successor. AICPA members can obtain sample consent forms found here.

Client notification: How clients will be informed of the event triggering the PCA should be addressed. Consider making clients aware of the PCA’s existence so they understand there will not be a service disruption if something happens to you.

Professional liability insurance: Most professional liability insurance policies are issued on a “claims made” basis, meaning that a policy must

be in effect at the time a claim is made for coverage to exist. In the event of temporary disability, the PCA should address the responsibility for continuing to maintain your professional liability insurance policy.

In the event of death or permanent disability and the assumption of your practice by the successor, an extended claim reporting period (ECRP) policy, commonly known as a “tail,” should be purchased. An ECRP policy extends the reporting period of time for claim reporting following the policy expiration date, so coverage is available for future claims that are made against you during the applicable ECRP due to an act or omission that happened prior to the end of the policy period and is otherwise covered by the professional liability policy. Instruct your next of kin to contact your professional liability agent or broker regarding this coverage.

notification; •

Transitioning all records to clients or another CPA, making them unavailable to help defend a future professional liability claim; or

•

Not purchasing a tail policy, which may expose next of kin to an uncovered professional liability claim.

More important than ensuring client service, or mitigating professional liability risk, a PCA can give you peace of mind knowing that, while you cannot control the future, you can help make the inevitable bump in the road smoother for your loved ones.

Communication To Next Of Kin After the PCA is finalized, communicate it to your next of kin so they are prepared. Consider creating an instruction sheet that includes key dates and deadlines; contact information of important people and entities, such as your attorney and professional liability agent or broker; and the location of the PCA and other important documents for your firm.

What Is The Relationship To Professional Liability?

While a PCA makes good business sense, it also helps manage professional liability risk. When a CPA is unexpectedly unable to fulfill his or her client responsibilities, and the next of kin does not know how to proceed, problems may arise such as: •

Missed filing deadlines, which may result in a professional liability claim;

•

Mishandling of confidential client information, leading to a data security incident requiring client

Ference

Rood

Sarah Beckett Ference, CPA, is a risk control director at CNA. Deborah K. Rood, CPA, is a risk control consulting director at CNA. For more information about this article, contact specialtyriskcontrol@cna. com.

Continental Casualty Company, one of the CNA insurance companies, is the underwriter of the AICPA Professional Liability Insurance Program.

Aon Insurance Services, the National Program Administrator for the AICPA Professional Liability Program, is available at 800-221-3023 or visit cpai. com.

This article provides information, rather than advice or opinion. It is accurate to the best of the authors’ knowledge as of the article date. This article should not be viewed as a substitute for recommendations of a retained professional. Such consultation is recommended in applying this material in any particular factual situations.

Examples are for illustrative purposes only and not intended to establish any standards of care, serve as legal advice, or acknowledge any given factual situation is covered under any CNA insurance policy. The relevant insurance policy provides actual terms, coverages, amounts, conditions, and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice.

November / December

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Leveraging Historic Tax Credits: A Discussion into the Revitalization of Prestwood Building in Andalusia, Alabama

Tax incentives have long been potent catalysts for economic development and investment. Among these, the Federal Rehabilitation Tax Credit (HTC) program stands as a unique intersection of fiscal policy and cultural preservation. Since its inception in 1976, the Federal Rehabilitation Tax Credit program has leveraged over $116 billion in private investment, contributed to the preservation of more than 47,000 historic properties, and has been one of the nation’s most successful and cost-effective community revitalization programs.

In Alabama, the state’s Historic Rehabilitation Tax Credit (HTC) program was established to foster historic preservation. The program is designed to stimulate job creation, bolster the tax base, revitalize existing infrastructure and buildings, and ensure the preservation and rehabilitation of Alabama’s historic landmarks.

This article aims to delve into the intricacies of both federal and state HTC programs and reference the recently completed Prestwood Building project in Andalusia, Alabama, as a case study.

firm headquartered in Andalusia, took on the monumental task of restoring it.

Early in 2021, the City of Andalusia, under the visionary leadership of Mayor Earl Johnson, joined CDG in unveiling the public-private partnership project and ambitious plans for the Prestwood Building.

Recognizing the building’s historical significance and potential, Mayor Johnson emphasized the role of the public-private partnership in preserving Andalusia’s heritage. Through Alabama’s Amendment 725, the city was empowered to collaborate with private entities, fostering economic development while safeguarding its historic landmarks.

The city’s partnership with CDG, Inc., Lost Pizza, and Town and Country Boutique marked the beginning of a new chapter for the Prestwood Building. CDG, an Alabama engineering firm with a presence in Alabama, Tennessee, and North Carolina, took the lead in the building’s renovation and utilized the historic tax credit programs as a source of capital in the renovation. The efforts to transform the building to modern building standards and safety codes while preserving the history look, character, and as much as possible actual building materials was a daunting challenge.

As construction efforts come to completion this fall, the Prestwood Building is poised to reclaim its glory. The CDG, Inc. Andalusia operations and corporate staff have moved into their new office space, occupying the entire second floor. Town and Country Boutique has opened its doors for retail shoppers, and Lost Pizza will soon be offering a unique spot for the coldest beer and “best pizza ever eaten”, marking the culmination of a project that blends Andalusia’s rich history with a dynamic future.

Navigating the Maze: Federal HTC Program

The Prestwood Building: A Historical Gem In 1874, Aus Prestwood embarked on a journey from Coffee County to Andalusia, seeking a brighter future for his family. Inspired by the Owens-Thomas House in Savannah, Georgia, he envisioned and constructed the Prestwood Building in the Regency Revival architectural style. This design choice not only showcased Prestwood’s refined taste but also positioned the building as a landmark in Andalusia’s architectural landscape. Located in the heart of Andalusia on the town square, the Prestwood Building is a two-story brick structure that has served various purposes over the years, from a bustling general store to a furniture shop. However, like many historic buildings, it had been vacant and deteriorating for many years, until CDG, Inc., an Alabama-based engineering

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ASCPA Connections

The journey to qualify for the federal Historic Tax Credit (HTC) program is intricate and demands a keen eye for detail. The legal foundation for the credit is found in 26 U.S. Code § 47 Rehabilitation Credit. It provides, in general, that there is a federal income tax credit equal to 20 percent of the “qualified rehabilitation expenditures” (QREs) concerning a qualified rehabilitated building placed in service within the tax year. The credit is recognized pro-rata over 5 years, beginning in the year in which the qualified rehabilitated building is placed in service.

The code defines a “qualified rehabilitated building” as one that has been substantially rehabilitated, was placed in service before the beginning of the rehabilitation, is a certified historic structure, and is depreciable. It also defines “qualified rehabilitation expenditure” as any amount properly chargeable to capital account for property for which depreciation is allowable under section 168 and which is nonresidential real property, residential

Marc Hamilton, CPA CGMA CFO & Treasurer, CDG, Inc.

November / December

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rental property, real property that has a class life of more than 12.5 years, or addition or improvement to these described properties incurred in connection with the rehabilitation of a qualified rehabilitated building.

Historic Use and Adaptation A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment.

Furthermore § 47 clarifies certain expenditures not included in the term “qualified rehabilitation expenditure”, such as expenditures where straight-line depreciation must be used, acquisition costs, expenditures attributable to the enlargement of an existing building, or expenditures attributable to the rehabilitation of a qualified rehabilitated building, unless the rehabilitation is a “certified” rehabilitation. A “certified” rehabilitation of a certified historic structure is one which the Secretary of the Interior has certified to the Secretary as being consistent with the historic character of such property or the district in which such property is located. Also not included are expenditures for tax-exempt property, which may play a role in the context of a public-private structured transaction.

Preservation of Historic Character The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided.

Moreover, § 47 defines a “certified historic structure” to mean any building (and its structural components) that is listed in the National Register, or is located in a registered historic district and is certified by the Secretary of the Interior to the Secretary as being of historic significance to the district.

The certification process begins with a three-part application that must be submitted to both the State Historic Preservation Office (SHPO) and the National Park Service (NPS).

The first part, known as the “Evaluation of Significance,” delves deep into the building’s history. It requires comprehensive details about the building’s historical significance, its architectural style, and its past uses. A pivotal aspect of this section is to determine if the building is individually listed in the National Register, or if it’s situated within a registered historic district. In the case of the Prestwood project, rather than qualify the building, our team was able to qualify a larger area of downtown as a registered historic district, which has allowed other Historic Tax Credit projects to be jump-started.

The second part, titled “Description of Rehabilitation,” provides a blueprint of the proposed rehabilitation work. This includes architectural drawings, cost estimates, and a detailed explanation of how the work will align with the Secretary of Interior’s Standards for Rehabilitation. It is critically important to understand all the expectations captured in the architectural drawings as there are absolute requirements for historical integrity in establishing the expectations.

The following table provides the Standards for Rehabilitation:

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ASCPA Connections

Acknowledgment of Historical Context Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken.

Preservation of Changes Over Time Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved.

Distinctive Features and Craftsmanship Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a historic property shall be preserved.

Repair Over Replacement Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires the replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence.

Sensitive Treatments Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible.

Protection of Archeological Resources Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken.

Differentiation Between Old and New New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property.

The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural

features to protect the historic integrity of the property and its environment.

Reversibility of New Additions New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired.

must be claimed at the entity level.

To claim the credit, any nonprofit entity awarded the tax credit must file an Alabama income tax return for the tax year the project is placed in service.

Tax credits granted or transferred to a single member liability company or a Q-sub that is disregarded for federal income tax purposes shall be claimed by the owner of the disregarded entity.1

The third and final part is the “Request for Certification of Completed Work.” This section serves as a testament that the rehabilitation work was executed as initially proposed. Qualify requirements also include a CPA-prepared final cost certification, categorizing the Qualified Rehabilitation Expenditures (QREs).

It should be noted that there was legislation introduced in 2023 sponsored by Senator Bobby Singleton (SB240) that seeks to increase the amount of annual tax credits available from $20 million to $40 million.

Both the SHPO and NPS have set timelines for reviewing each segment of the application and their outcomes can vary, ranging from full approval to conditional approval or even denial.

The AHC is also available to provide technical assistance on application procedures, review and discuss appropriate rehabilitation work, and will make the site as needed.

Other provisions of § 47 address items such as progress recognition, timing of expenditures and claiming credits, holding period, and recapture. A thorough understanding is needed to successfully implement the use of the program.

While the processes are tedious and administratively burdensome, the HTC program is a unique strategic financial tool. Its primary objective is to incentivize the private sector to invest in the rehabilitation of historic structures which translates into stimulating the economy of our communities. As in the case of the Prestwood project, the revitalization has spawned an influx of investment into other historic structures creating direct and indirect economic benefits for the surrounding areas.

Navigating the Qualification Maze: Alabama HTC Program While the federal HTC program has its complexities, the Alabama HTC program, managed by the Alabama Historical Commission (AHC), has its own unique set of qualification criteria. Mirroring the federal program, it too involves a three-part application.

The AHC has a competitive application process in place, evaluating projects on various criteria, including historic significance and economic impact. The AHC assesses qualifications and recommends qualifying projects to the Historic Tax Credit Evaluating Committee and ranks projects for them to receive tax credit from the annual reservations.

The 2017 Alabama Historic Rehabilitation Tax Credit law (Section 40-9F-30 through Section 40-9F-38, Code of Alabama 1975) provides for a refundable income tax credit against the tax liability of the taxpayer for the rehabilitation, preservation, and development of historic structures. It currently provides $20 million in tax credits each calendar year from 2018-2027.

Beyond the economic implications, the HTC program has played a crucial role in preserving the architectural and cultural heritage of our city. These historic structures, once at risk of being lost, are now being meticulously restored, which ensures their continued presence in our urban landscape. Thanks to the HTC programs, downtown Andalusia continues to develop as a vibrant aesthetically pleasing area with a strong feeling of pride and community. Ya’ll come see us!

https://www.revenue.alabama.gov/tax-incentives/2017-alabamahistoric-rehabilitation-tax-credit/ 1

Provisions of the Alabama Historic Rehabilitation Tax Credit include: The credit is refundable and cannot be carried forward. The taxpayer must claim the entire credit in the taxable year in which the reservation is allocated to a project, or the certified rehabilitation is placed in service. Any additional credit allocated to the taxpayer for the same project must be claimed in the taxable year the reservation is allocated; however, in no event shall the tax credit be claimed before the taxable year in which the certified rehabilitation project is placed in service.

The credit is transferable.

Any tax credits granted or transferred to a pass-through entity

Marc Hamilton, CPA, CGMA CFO & Treasurer, CDG, Inc.

>>>>>> What...the IRS Now Doing R&D Studies? >>>>> I know, you probably think I’m crazy.

But laugh now because reality is setting in for 2022. Let me restate... the IRS WILL BE doing R&E studies. Yes, WILL BE! Ok, let me clarify a bit further. The IRS will not be trying to identify R&D credits for the benefit of the taxpayer, no, no, no! I am not talking about an IRC Code Section 41 R&D (Research & Development) credit study. I am talking about an IRC Code Section 174 R&E (Research and Experimental) expenditures study!

Think back to the 2017 Tax Cuts and Jobs Act (TCJA). This Act no longer allows companies to currently expense 100% of IRC Section 174 R&E costs in the first year. Instead, starting in 2022, taxpayers are required to amortize these costs over 5 years (and 15 years for foreign expenses).

Plus, in the first year, 2022, you must apply the half-year convention.

This means that those domestic IRC Section 174 R&E expenses that used to be 100% deductible prior to 2022 will now be only 10% deductible in year 1, 20% deductible in years 2-5, and 10% deductible in year 6.

We all hoped by now that Congress would have either changed this law or deferred the effective date.

Well, none of this has happened so far. And, with a divided Congress and deficit and budget issues, who knows if this will ever change and if so retroactively or prospectively.

So, if the IRS knocks on your door doing a random 2022 audit, I would wager that the first two items on their Information Document Request (IDR) form will be the “low hanging fruit” such as:

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ASCPA Connections

1.

Provide substantiation for your T&E expenses (an old favorite), plus

2.

Provide all detail for your IRC Section 174 R&E expenses

Now, let’s discuss the 5 “False Beliefs” regarding R&E expenses and next steps: #1 False Belief – “I’ve never taken the R&D credit in the past. So, the IRS won’t catch my R&E expenses...”

Think again. As I said, the R&E 174 expenses will become “low hanging fruit” for the IRS. It doesn’t take much for the IRS to read a company’s website that brags about why they are better than their competitors offering new or improved products and that offers customers their new product catalogs. It’s not rocket science to conclude that a company is doing some type of R&E activities.

Also, I could easily see the IRS developing an IRC Section 174 R&E questionnaire for the client to complete before they begin their audit. It may be modeled after those “innocent” nexus questionnaires we all remember that states provide to determine whether you are doing activities in their state for state taxation. You know, innocent questions like, “...are you improving your products, are you making new products, are you improving your processes, etc...” It will be easy for the IRS to identify R&E activities, not so easy for the IRS to specifically quantify these costs. More on that coming up. #2 False Belief – “My exposure is small because my R&D credit expenditures are small...”

Not so fast. There are big differences

between IRC Section 41 R&D costs subject to the R&D credit and IRC Section 174 R&E expenditures subject to the 5 year amortization rule. The 174 R&E expenditure definition is much broader and many more expenses will fall into the 174 R&E expense bucket.

The IRC section 41 R&D costs subject to the R&D credit is much more narrow because it includes a special 4 part test that must be met.

The Income Tax Regulation Section 1.174-2 definition is, “The term research or experimental expenditures, as used in section 174, means expenditures incurred in connection with the taxpayer’s trade or business which represent research and development costs in the experimental or laboratory sense. The term generally includes all such costs incident to the development or improvement of a product. The term includes the costs of obtaining a patent, such as attorneys’ fees expended in making and perfecting a patent application...”

These regulations do not have an all-inclusive list of R&E expenses.

However, Income Tax Regulation 1.1744(c) has an example that includes more broadly defined 174 expenses that include heat, light and power in a building that has some R&E activities as well as depreciation for of part of the building!

Other guidance has come from Rev. Rul. 73-275 expanding 174 R&E expenses to include overhead expenses. Field Attorney Advice (FAA) 20154501F includes as R&E 174 wages, “Gross Wages.” However, wages for the IRC Section 41 credit only include the smaller W-2 “Box 1” wages. Also, 174 expenses include 100% of outside consultants doing R&E activities. For the IRC 41 R&D credit, only 65% of these expenses are used to compute the credit.

>>>>>> >>>>>

(...plus 5 false beliefs on R&E amortization) Another new amortization rule with the TCJA states that foreign IRC 174 R&E expenses must be amortized over 15 years, not 5 years. For example, let’s say a US company has some remote employees in Canada and India doing some IRC 174 R&E activities.

These wages were previously 100% deductible. Now, they must be amortized over 15 years with a halfyear convention in year 1. That means only 3% of these expenses could be deductible in the first year! Foreign R&E expenditures were never allowed for the IRC 41 R&D credit calculation.

The bottom line here is that IRC Section 174 R&E expenditures subject to the 5 year (or 15 year) amortization rules will be much higher than the IRC section 41 R&D expenditures subject to the R&D credit. So, your exposure may be much greater than you think! #3 False Belief – “The IRS isn’t sophisticated enough to identify IRC Section 174 R&E expenses...”

Don’t be surprised! The IRS has, what I call, their “magic assumption” power at their disposal. For example, let’s use an analogy. Let’s say you owned a stock for many years, you reinvested dividends, there were stock splits, and you sold your stock for a huge gain. You must do your homework to calculate and prove your basis in that stock. If you cannot come up with your basis calculations, the IRS will “assume” a zero basis to maximize your tax liability. Likewise, I could easily foresee the IRS casting a very large net and “assume” some large, arbitrary chunk of total expenses that should be reclassified as 174 R&E expenditures subject to the 5 year amortization, unless you could prove otherwise. So, it will be up to you to identify and properly compute and prove your 174 R&E expenses so that they are not arbitrarily overstated by the IRS.

#4 False Belief – “I am afraid...there is too much risk to take the R&D credit in 2022...”

Calm down and face the facts. You need to separate in your mind the IRC Section 41 R&D expenditures subject to the R&D credit and the IRC Section 174 R&E expenditures subject to the 5 year amortization rule. The 174 R&E amortization rules are now the law of the land unless the law gets reversed or postponed sometime in the future.

We are stuck with it. Companies that don’t identify and amortize the 174 R&E costs are exposing themselves to tax liability, interest, and maybe penalties.

Those are the facts. Whether you claim the R&D credit or not, that is irrelevant.

You must still identify and amortize the IRC 174 R&E expenditures over 5 years. #5 False Belief – “...The R&D credit won’t help me...”

Wrong! A credit is a credit is a credit!

Wouldn’t you rather have a credit to offset some tax liability rather than no credit and pay the full tax liability?

•

Consider doing an IRC Section 41 R&D credit study to help offset some of the extra tax from being forced to amortize IRC Section 174 R&E expenses over 5 years,

and finally...

•

Write your Congressmen. Explain that both parties in Congress have always given speeches and agreed about the intent of the US R&D tax incentive. The keys were to create more jobs in the USA and to do more manufacturing/ technical services in the USA with the goal of having less dependence on foreign countries.

Before this R&E amortization rule came into play, the US ranked 24 out of 34 OECD member countries regarding the generosity of their R&D credit. Now, with the new R&E amortization rule, studies have shown that the US will fall to 32 out of 34. This will undoubtedly have a negative impact on US productivity and jobs and continued dependence on foreign countries. It just makes no sense.

Next Steps...Here are some ideas: •

Prepare your client for the news before delivering their tax return or extension payment,

•

Make an attempt to identify and quantify IRC Section 174 R&E expenditures,

•

Make adjustments to your client’s 2023 estimated tax payments.

You may already be in a penalty situation for 2022 estimated tax payments,

•

Watch for any law changes or deferral of the effective date.

Most likely, there may be no Congressional action until later in the year when Congress discusses the deficit/budget,

So, now is the time to let your voices be heard!

Rick Meyer alliantgroup Rick.Meyer@alliantgroup.com

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Congratulations to Alabama’s newest CPA Licensees The following individuals have successfully passed all four parts of the CPA exam - Congratulations!

Sara E. Asmann, Birmingham

Kara Makenzie Moulton, Dothan

Mary Williams Adams, Mobile

John Kyle Murphree, Wetumpka

Katherine Askew Aikens , Tuscaloosa

Micah Wayne Murphy, Birmingham

Benjamin Allen Atchley, Valley Head

Dedrea Lesha Norman, Missouri City, TX

Melissa Anne Baioni, Brentwood, TN

Molly Smith Osborn, Birmingham

Justin Daniel Barkley, Gadsden

Bradley Connor Pinkerton, Birmingham

Kelly Grace Bemis, Birmingham

Katelyn Janice Poole, Daphne

Lara Claire Bolling, Auburn

Nicholas Sebastian Ranta, Huntsville

Joshua David Bowers, Birmingham

Lauren Susan Rattenbury, Huntsville

Haylee Elizabeth Bull, Montgomery

Matthew Wendell Rea, Decatur

Sara Crawford Burrows, Cottondale

Denisha Tenae Reeves, Millbrook

Destiny Nicole Carter, Harvest

Matthew Keith Reid, New York, NY

Regan Deslonde Collins, Mobile

Tiffany Carla Reid, Plantersville

Richard Keith Cummings, Helena

Myra Elizabeth Reiss, Homewood

Nick George Donkar, Atlanta, GA

Eden Hipps Renfroe, Troy

Jacob Woollen Fitts, Birmingham

Rebecca McCaleb Sargent, Huntsville

Stephanie Minium Fitzgibbons, Madison

William Wright Schaffeld, Homewood

Jacob Benjamin Flaskamp, The Woodlands, TX

Tara Maynard Scheurich, Jackson

Nicole Ann Hamblet, Auburn

Adam W. Smith, Ohatchee

William Kennedy Hancock, Birmingham

Sydney Grace Spier, Madison

James Wilbur Hartman, Mobile

Sarah Nichole Stacey, Daphne

Blair Bonham Herrington, Birmingham

Scott Jason Stein, Atlanta, GA

Stephen Copper Herrinton, Birmingham

Zachary Daryl Summy, Tuscaloosa

Cheryl Lynn Hutcheson, Pelham

Samantha Rae Swistak, Nashville, TN

Jhabrea Nashae Jackson, Sheffield

Callie Margaret Taylor, Decatur

Lindsay Michelle Kahn, Mountain Brook

David Brand Thaggard, Tuscaloosa

Daniel Keddie, Birmingham

Kayla Sisco Thomas, Tuscaloosa

Jac Wilson Kennedy, Birmingham

Logan Addison Thrasher, Birmingham

Jessica Stull Lloyd, Hoover

Ethan Payne Turner, Hoover

Chardonnay Canilla Loadholt, Birmingham

Benjamin Charles Vanveckhoven, Huntsville

Owen Christopher McGrath, Ft. Lauderdale, FL

Mary Claire Weeks, Birmingham

Griffin Wilks McKenzie, Monroeville

Guang Dong Xu, Tuscaloosa

Patrick Bryan Metz, Birmingham These individuals completed all four parts of the CPA exam between July 1 - August 31, 2023.

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MEMBER NEWS Jeannine Birmingham, CPA, CAE, was recently named chair of the CPA Society of Executives Association. In this role, Birmingham will lead a prestigious group of society leaders as they work closely with the AICPA on important professional Birmingham issues like pipeline, legislation, and the image of the CPA profession. She will serve as chair for one year.

Pearce, Bevill, Leesburg, Moore P.C. is pleased to announce two promotions. Jeffery S. Smith, CPA, AEP has been promoted to Director Smith Andrews and Matt A. Andrews, CPA has been promoted from Manager to Principal.

FIRM NEWS BMSS Ranked #102 Firm by INSIDE Public Accounting Bradley Arant Boult Cummings LLP is pleased to announce that partner Bruce P. Ely has been appointed as a Senior Fellow and a special consultant to Bloomberg Tax & Accounting. Mr. Ely is the first Senior Fellow appointed by Bloomberg Tax & Accounting to consult on its state tax

Ely publications.

In this role, Ely will focus on Bloomberg Tax & Accounting’s passthrough entity products, including its premier research tool, the Pass-Through Entity Navigator (PTEN), a comprehensive online resource providing detailed analysis and practical guidance on a state-by-state basis for each type of pass-through entity and pass-through entity owner.

Jackson Thornton is pleased to announce several promotions throughout their five Alabama offices. Erica L. Bailey, based in the firm’s Montgomery office, was named a principal. Jake S. Bailey Studdard Studdard, based in the firm’s Wetumpka office, was also named a principal. In addition, several other team members were recently promoted. Mark Cooley, Katie Vega Schmidt, Hannah Spann and Melanie Weed were promoted to Senior Manager. Ryan Shubird, Amanda Wisdom and Michael Vidich were all promoted to Manager.

Jackson Thornton is also proud to announce that three of their young professionals have recently been honored by various organizations.

Ashley Taylor, a principal in the Tucker Taylor firm’s Montgomery office, was inducted into Troy University’s Accounting Hall of Honor. Holly Tucker, a manager in the firm’s Prattville office, was recognized as a “Top 20 Under 40” by the Prattville Area Chamber of Commerce. Erica Bailey, a Senior Manager in the Montgomery office, was named Troy University School of Accountancy’s “Young Alumnus of the Year.”

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BMSS is honored to be named the #102 firm by INSIDE Public Accounting for 2023. We are so incredibly grateful for our team members who always go the extra mile in providing excellent service to each and every client.

BMSS Internal Retreats In August, we had the pleasure of holding both our Leadership and Member Retreats. Our team members enjoyed learning alongside each other and relationship building.

BMSS Wellness Way In January, BMSS launched the Wellness Way, a health initiative for our Family of Companies, encouraging movement and clean eating through monthly challenges.

For the last two months, our team members have trained for races, and in October, many walked or ran in 5k’s, 10k’s or half marathons!

Send news to ASCPA Communications Director Megan Hughes at mhughes@alabama.cpa.

FIRM NEWS

Celebrating 75 years with Richard, Harris, Ingram & Bozeman, PC

climbing on silos to check feed stock, and flying in helicopters to count cattle holdings. Our firm has progressed from all paper through floppy disks (and dragging around heavy portable computers) to thumb drives to “the cloud.” Undoubtedly, the future definitely has more changes in store for us!

The year 1948 was a time of post-war optimism – Harry Truman was President, NASCAR held its first Daytona race, and the Iron Bowl was held at Legion Field for the first time. (Bama won 55-0.) The time also found young Fred Richard completing his military service and returning to his hometown of Demopolis, Alabama. There, in 1948, he earned his CPA certificate (#153) and opened his own CPA firm.

That firm, now Richard, Harris, Ingram and Bozeman, PC is celebrating its 75th year in 2023.

Over 75 years, the firm has seen many changes. It moved to Montgomery in the 1950’s with offices in the Bell Building, and the firm remains in Montgomery today. Over the years many have joined the firm future shareholders Jack Harris in 1954, Shelby Ingram in 1969, and current shareholders Lynne Bozeman in 1983 and Scott Lee in 2006, plus other faces have come and gone along the way. The firm’s practice mix has also changed over the years. Its practice has been, and remains, about half audit - half tax and advisory for most of its history but the industry mix has changed. In earlier years’, the firm focused in insurance, banking and commercial real estate management and development (and we still work in those areas). Now, industry areas have shifted to concentrations in individual tax, small business, notfor-profits, and Single Audit.

Of course, the practice of public accounting has also seen changes in 75 years – among them, so many more standards (!) and the explosion of technology. We’ve counted inventory by crawling up on heavy machinery, bundling up in freezers,

Yet with all the changes we’ve seen, the heart of the firm remains the same – and that is the key to the firm’s longevity.

An overriding philosophy for our firm has always been “family first.” While our business requires a lot from our members, our families enable us to make the commitment of time and travel our practice demands and are ultimately our most important obligation. Put simply, our family time is precious. This foundation has been a factor in allowing us to recruit and retain members by providing a professional home where members can pursue their career goals without sacrificing their personal aspirations.

We also value learning. Education and training – both classroom and on-the-job - are invaluable to creating knowledgeable and capable members so foundational to our success.

Our experience with others is an integral factor for us. Our firm has a history of commitment to community involvement and being active with our professional organizations.

Ultimately the key to our growth, success, and longevity is our clients. Our clients expect the best from us and that compels us to demand the best from ourselves – fostering a “do it right” philosophy that has been a driving force for our development.

Through our history, our practice, and our people, we have embraced and adapted to never-slowing changes. We can’t wait to see what the next 75 years holds!

CLASSIFIEDS

SELLING YOUR FIRM IS COMPLEX. LET US MAKE IT SIMPLE. Accounting Biz Brokers has been selling CPA firms for over 18 years and we know your market! Our brokers are Certified Business Intermediaries (CBI) specializing in the sale of CPA firms. We are here to help you navigate through the entire sales process. Contact us TODAY to receive a free market analysis. Listings include:

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For more information on these listings or to sell your practice, contact Lori Newcomer, CPA and Tim Price, CPA at (888) 553-1040 or PNgroup@APS.net, or visit www.APS.net.

Announcing an exciting new relationship to provide retirement plan services to ASCPA members!

Alabama Society of CPAs (ASCPA) is excited to launch a Multiple Employer Plan (MEP) in conjunction with Ameritas and Vindex Financial Partners.

Why consider the ASCPA Multiple Employer Plan?

ASCPA MEP

Easy to administer

Cost competitive

Plan compliance

Actionable technology

Support for your fiduciary responsibility

Established data integrations with dozens of payroll providers

Want to find out more about the ASCPA MEP? Michael LaHurd at (205) 313-6705 or michael.lahurd@vindexfinancialpartners.com Michael LaHurd is the referral contact for this product only. This retirement product is established by Ameritas and offered through the ASPCA. Michael LaHurd, Registered Representative and Financial Advisor of Park Avenue Securities, LLC (PAS), 5040 Roswell Road, Atlanta, GA 30342. Securities products and advisory services offered through PAS, 800-366-0839. Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is a direct, wholly owned subsidiary of Guardian. Vindex Financial Partners, LLC is not an affiliate or subsidiary of PAS or Guardian. PAS is a member FINRA, SIPC. California Insurance License #OL24271 2023-159095 (Exp. 8/25).

Unless otherwise specified, any entity referenced in this material is not an affiliate of Ameritas or any of its affiliates. Fulfilling life is a registered service mark of affiliate Ameritas Holding Company. © 2023 Ameritas Mutual Holding Company. ®

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