ASCPA October 2014 by Alabama Society of CPAs

ALABAMA CPA MAGAZINE OCTOBER 2014

ASCPA Partners 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 Don McCleod, Chair Dr. Lowell Broom, Chair-Elect Renee Hubbard, Past Chair Board of Directors James R. L. Carroll Caitlin F. Glass Kate J. Ham Paul Marcus Hamilton M. Buddy Johnsey Jason L. Miller Michael C. Reibling Gregory E. Sellers Dennis E. Sherrin Rachel M. Taylor AICPA Council Members William H. Carr Don McCleod 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

Message from the Chair... Recently I attended the ASCPA State Tax Committee meeting with the Alabama Department of Revenue. There were representatives in attendance from different sectors of the tax compliance community. It was amazing to witness the partnership of so many who were working wonderfully together to address important issues while helping to make the success of our state tax system more conducive for Alabama taxpayers. It made me think how each representative, while concerned for their individual areas, understood clearly how the “whole was greater than the sum of the parts”, or expressed another way, how “no individual or organization was an island entirely of themselves”. That we needed to have that shared degree of risk in making the system work in order to eventually have that greater feeling of reward from those that we serve. It was also a wonderful confirmation to me of how we, as the Alabama Society of CPAs, have always understood the importance of being well-connected through strong partnerships when carrying out our mission to serve the profession. Our partnership with the Alabama State Board of Public Accountancy is an example. The ASCPA makes it easier for the State Board to supervise the practice of public accountancy because we nominate leaders from our ranks for their board. Likewise, their partnership with us is invaluable because they share information about newlyadmitted CPAs who become members and leaders within our organization. They, in turn populate our boards, committees, task forces and other volunteer positions. Another example is our partnerships with universities and recruiters for Accounting Interview Day. Moreover, our partnership with academia is helping smooth the eventual acceptance of AP accounting for college credit. This is a great step forward and will result in students being more prepared for college accounting courses. In turn, it stimulates the ambitions of our membership and helps to move our profession forward. Our partnerships are indeed very important to us. Whether it is the Alabama State Department of Education partnering with the ASCPA to bring financial literacy to high school students through the Classroom Blitz, or the AICPA’s partnering with the ASCPA through their support of AP accounting to help inspire and train the next generation of certified public accountants. We are very blessed to have strong partnerships that work extremely well each and every year. Take note of the partner articles throughout this issue. Of course my greatest partnership happened over 15 years ago when my wife accepted my hand in marriage. I am eternally grateful for that partnership and will be for the rest of my life. Finally, because we understand that we can’t do the great work of this profession alone, I want to say to every partner, every stakeholder and every friend of the Alabama Society of CPAs who have contributed their time, talents and monies in helping us to live out the true meaning of our mission, thank you for all that you do.

Don

the first of the month preceding issue date.

Jeannine P. Birmingham, CPA, CAE, CGMA President and CEO Diane L. Christy, Editor

The Alabama CPA MAGAZINE

Chambliss Brister, Managing Director-Partner of FIT Recruiting

2015 Hiring Outlook for Buyers and sellers

ob growth has returned and will continue to improve as we raise our glasses and toast 2015. Cheers! Hiring is on the rise, layoffs are becoming scarce and employees are content and happily working. Employers from various industries express optimism for the upcoming year and plan to hire at all levels, including from part- time assistants, contractors and to full-time permanent employees. While you, as the job seeker or you as the business owner, celebrate all this great news, you must ask yourself how this affects you and your company. and determine what steps you are taking to either make a move in your career or how you can retain your top talent while recruiting new staff.

Current Trends A common thread recruiters are encountering in almost every industry is the rising demand for degreed candidates. In fact, according to CareerBuilder’s midyear projections, 61% of the occupations expected to grow by 8% or more in 2015 require a college degree. Associate degree and master’s degree occupations are each projected to grow 8%, while jobs requiring a bachelor’s degree are projected to grow 6%. Jobs requiring short-term, on-the-job training, trail at 4%. These projections certainly are not meant to downplay other skilled labor jobs or positions that require significant experience, as we expect to see positive hiring trends across all occupations.

Retaining talent Employee engagement and retention is, and should be, a top priority for employers as the economy continues to improve and more jobs become available. Employers go to great lengths and expense identifying, interviewing and hiring the right employees and it is vital that employers take strategic actions to capitalize on retaining these team members. In today’s highly competitive job market, professionals are more selective in where they work, and hiring and retaining top talent requires a more comprehensive approach. This retention effort could come in the form of higher pay, along with better benefits and other perks, but is that enough? More companies are now embracing a flexible work force and offering more of a work/life balance. This is especially important when hiring millennials. As a general rule, most overly rigid work environments tend to drive away all good employees. Professional and personal development is also a key factor in keeping employees engaged. Professionals who feel they are still learning and challenged, tend to stay put. A retention tactic could be as small as offering weekly dry cleaning pick up or free soft drinks at the office. It might even be a culture shift empowering self-management and independence. When employers ask employees what matters most to them and they respond accordingly, their work force becomes engaged, grows more satisfied and is happy in their job.

Finding your next best hire As said by the author Jim Collins in Good to Great, “Great vision without great people is irrelevant,” but it now takes more than a “help wanted” sign or a simple job posting for employers to find those great people. Fewer passive job seekers are perusing job sites as employees are happy in their current jobs and less interested in discovering what might be around the corner. Also, the retirement of the baby boomer generation is creating a talent vacuum at many levels as experienced managers, and even support staff, are retiring or facing anticipating The Alabama CPA MAGAZINE

retirement in the next five years. Companies will face difficult tasks of not only replacing these important team members, but also reworking positions. They will change workflow to better accommodate the work habits of a younger generation, all while maintaining a high level of client service. This presents a challenge to employers seeking qualified, experienced staff, and opportunities for those qualified employees to be seen and consider making a move to advance their career. Other than enlisting help from your recruiter when facing this challenge, what can you do? Companies have begun what is referred to as “mapping” to build their pipeline for future hires. It’s a simple process of identifying potential future talent targets long before they are needed with the goal of bringing them onboard when the time is right. Internship programs do this exact thing, which is why they are becoming more routine and elaborate. Social media sites, such as LinkedIn, also allow employers an opportunity to keep tabs on any future hires, congratulating them on any successes as they advance in their career. By developing and fostering relationships over time, even if online, employers have an advantage of knowing just the right time to reach out and make an offer. Finally, developing an internal referral program is an easy, yet effective way for employers to identify new candidates. As the old saying goes “birds of a feather flock together,” so employers should look internally to assist with selecting promising new talent and utilizing these connections in hiring to foster a positive culture. Every business cycle is unique and challenging and perhaps this impending hiring cycle is not altogether different from history. It is important to realize that new challenges exist in identifying, recruiting and incorporating great talent with in a positive work culture amid today’s current and potential workforce. Successful companies and potential employees will recognize the necessity to address these challenges with novel solutions tailored to the employee, the work force and the industry. So whether you are looking to advance your career or hire your next accountant, it appears to be an employee’s market,: so those on both sides of the desk will want to brush up on your negotiating skills and start planning ahead now to take action. ______ Fit is a professional recruiting firm affiliated with Smith Dukes & Buckalew of Mobile, the oldest accounting firm in Alabama. ChamblissBrister assists Smith Dukes and their clients with their hiring needs specializing in the area of Accounting, Information Technology, Office Administration and Executive Searches. She is an experienced recruiter with over 6 years professional staffing and business development experience, a member of the Rotary Club of Mobile and the Society of Human Resource Management. You can reach her at chambliss@fitrecruiting.com,

251.300.3585. 3

DOING IT BETTER

UA’s Accounting Program Ranks High in Nation

he University of Alabama’s Culverhouse School of Accountancy’s undergraduate and master’s programs are ranked eighth in the nation and the doctoral program 12th. Released in August, it’s the school’s highest standing ever in the Public Accounting Report rankings. Each of the program’s rankings increased by at least 12 spots from 2013. When compared to other schools of the same size, however, the Culverhouse School bounces up to second place. Dr. Rich Houston is the director of the Culverhouse School of Accountancy that is within UA’s Culverhouse College of Commerce. “This ranking is indicative of the commitment of our faculty and staff who work hard day in and day out to make this one of the best accounting programs in the country,” said Houston. “Our students know that if they want to pursue a degree in accounting, we will do everything we can to ensure that they are getting a top-notch education. We also could not have accomplished this without our loyal alumni base.” The School of Accountancy received its own accreditation in 1982 and has consistently ranked in the top 25 programs in the nation. “I am extremely proud of our accounting faculty and their outstanding research and teaching practices that make the school what it is today,” said Dr. J. Michael Hardin, dean of the Culverhouse College of Commerce. “This recognition is long overdue and richly deserved. “In the past year, Dr. Houston has provided extraordinary leader-

Bidgood Hall, Culverhouse College of Commerce ship and has created an exemplary culture and esprit de corps in the department. The people who benefit the most from this very hard work are, of course, our students and graduates.” Other SEC schools making the top 10 include Texas A&M and the University of Georgia. ––––– Article provided courtesy of Culverhouse School of Accountancy.

The Alabama CPA MAGAZINE

68th Federal Tax Clinic

2014 Federal Tax Clinic will be November 20-21 at the Bryant Conference Center in Tuscaloosa.Â It is a joint project of the Alabama Society of CPAs, the Alabama Bar and Continuing Education at the University of Alabama. More information about the Federal Tax Clinic, including the program schedule and status of professional approvals, can be found at http://federaltaxclinic.ua.edu.Â The Alabama CPA MAGAZINE

CHANGE IS INEVITABLE . DIRECTION IS INTENTIONAL. PANGEATWO successfully matches clients with talented professionals. Our seasoned understanding of human potential, including individual strengths, lets us design far-reaching and personalized workforce solutions for employers. Our experience gives candidates an advantage and creates common ground between companies and professionals. PANGEATWO is a leader in recruitment and stafﬁng solutions in accounting and ﬁnancial services. Call today, and we’ll help you connect talent and potential.

Jeannine Birmingham presents a check for $20,265.63 to Tricia Kirk of the Exceptional Foundation. The check represents the shared proceeds from the Young CPA Charity Golf Tournament, sponsored by PangeaTwo.

Birmingham, AL 205.444.0080 | Mobile, AL 251.732.3000 www.pangeatwo.com

Working together, we get deals done. Specializing in the sale of accounting and tax practices, our team at Accounting Biz Brokers is committed to providing personalized business brokerage services to our clients and customers.

The Alabama CPA MAGAZINE

STUDENT SUCCESS It’s Time to Pay it Forward

7th Young CPA Classroom Blitz

alling all CPAs! Join the Young CPA Board of Directors as a volunteer in high schools November 17-21. This year the message is Borrowing, Module 2 of the amazing High School Financial Planning Program of the National Endowment for Financial Education (NEFE.com). 31 schools are already signed up as the magazine goes to press on September 23. If history repeats itself, there will be close to 50 schools eager to have a CPA come and talk to their students. The schools are spread all over Alabama, and many are smaller schools in outlying communities which do not have the resources of larger, more urban schools. Your visit would be a huge gift to one of these schools. It’s a remarkable program, with 20,000 students participating over its history. This year the Alabama State Department of Education is asking the CPA volunteers to not only deliver a financial education message but also discuss a career in accounting by sharing yourown story. They will want to know what kind of car you drive! The earning potential of accounting always gets their attention. The ASCPA’s newest staff member, Ashley Smallwood, is the contact for Classroom Blitz. You can reach her at asmallwood@ascpa.org or 334.386.5761 with any questions. Take a few minutes and

sign up TODAY. Through a Google doc – the link is on the ASCPA website. Maybe there’s a school you pass every day as you drive to work which has signed up. Or maybe your alma mater wants a speaker. Either way, there are students who are hungry to hear you. Don’t worry about learning the material, there will be two webinars the week before the Blitz and friend of the ASCPA Adena Whitman will do her usual excellent training job. No matter how much or little time you have in the classroom, she’ll lead you through the most effective way to use the materials and to make it interactive and engaging for you and the students. James Wishon, president of the Young CPA Board, stated it this way, “This is actually an effort with both short-term and long-term goals. First, we want to help young people become smarter about using money. Second, this is truly a chance to Pay it Forward and The Alabama CPA MAGAZINE

take some time to inspire the next generation of accounting professionals. We want to encourage them, to motivate them towards

an accounting career. I know we’re passionate about it and hope that you can share that passion with these students.”

1. Initial Discovery

2. Preliminary Data Review

3. Income Protection Analysis

Live Free. Live Secure. Live Happy.

4. Income Protection Audit Report 5. The Prudent Choice

6. The Reliable Relationship

Doing It Better

Professional Liability Risk Control: C

NA’s risk control team has more than 60 years of experience working with CPA firms. Their professional background as CPAs in public practice, knowledge of insurance products and overview of claim experience permits the team to provide practical solutions to mitigate professional liability exposures for firms. CNA created a Top 10 Frequently Asked Questions based upon policyholder inquiries.

1 A tax client has asked the firm to write a “comfort letter” to his/her loan broker or lender that includes confirmation of self-employment, verification of income, and profitability of business. Should the firm prepare such a letter? Providing written assurance to third parties is a violation of the AICPA Statements on Standards for Attestation Engagements unless the CPA performs services and provides reports in accordance with these standards. CPAs should avoid confirming client information to third parties. To assist CPAs in responding to such inquiries, CNA provides guidance in its article Third Party Verification Letters found in the Education Center of CNA. www.cpai.com.

2 Are engagement letters truly necessary? CNA views engagement letters as one of the most important risk control tools a CPA firm can employ to mitigate professional liability risk in ALL engagements. The podcast, An Introduction to Engagement Letters, summarizes some of the benefits of using engagement letters. In addition, the article Tax Practice and Engagement Letters discusses the use of engagement letters specifically related to a tax practice. Policyholders have access to sample engagement letters for a variety of services, which are updated annually. In addition, policyholders have access to Preparing and Using Engagement Letters, which answers most questions CPAs have about drafting engagement letters and is a useful reference tool. Both resources are available to policyholders in the Policyholder Resource Center at www.cpai.com. 8

3 The firm seeks to terminate its professional relationship with a client. Is there a sample termination letter available Claims sometimes arise after an engagement is terminated because the client asserts its lack of awareness regarding continuing accounting and tax obligations. As such, CNA recommends that CPA firms terminate client relationships in writing, setting forth the client’s continuing accounting and tax obligations. The article Client Termination Letters provides sample language to consider, including a suggested letter to terminate a professional relationship with a client, guidance to organizing the letter and other considerations. The article is located in the Education Center of www.cpai.com.

4 What considerations should be examined to determine if the firm has a conflict of interest with a client? The determination of whether or not a conflict of interest exists requires both a legal and ethical analysis, based upon specific facts and circumstances. Common conflicts include marital divorce, business dissolutions, and providing services in connection with the purchase or sale of business interests. The AICPA Code of Professional Conduct addresses conflicts of interest and provides examples of such in Ethics Interpretation 102-2. In addition, Treasury Department Circular 230, Section 10.29, Conflicting Interests, defines a tax practitioner’s responsibilities related to conflicts. 5 A client owes the firm significant unpaid fees. The firm has attempted to collect the unpaid fees but was stonewalled. Should the firm sue the client in small claims court to collect the unpaid fees? Fee suits against clients frequently result in counterclaims of malpractice against the CPA firm. There are many questions CPAs should consider before instituting a fee suit against a client. The article, Is Suing a Client for Fees Worthwhile summarizes the most important considerations.

If the firm discovers evidence of fraud while providing services to a client, what are its responsibilities? Auditors must comply with the auditing standards if evidence of potential fraud is discovered during an audit. In addition, CPAs who discover evidence of potential fraud in other types of engagements also have professional responsibilities that are addressed by the AICPA Professional Standards and other professional literature. Consult these articles This Might Be Fraud . . . What Do We Do Now? and Don’t Be a Victim: Accountant’s Failure to Detect Theft and Fraud (a risk alert) to gain additional guidance. For any type of service provided, if the fraud occurred during a period when the CPA firm provided services, the firm should promptly report the matter in writing to their professional liability insurance carrier as a potential claim.

My firm’s laptop computer was lost or stolen. It contained confidential client information. What should be done? This matter should be promptly reported in writing to the firm’s professional liability carrier as a potential claim. Unauthorized individuals could gain access to this information, and it may interfere with the firm’s ability to complete ongoing engagements in a timely way. There are also disclosure and related obligations under federal and state privacy and data security laws. CNA’s articles, A Possible Privacy Breach: What Next?, Privacy, Confidentiality, and Electronic Communications, and Protect Your Firm Against Data Security Breaches provide an overview of post-breach response requirements and preventive strategies firms can implement to reduce the risk of a breach.

The CPA of a former client is requesting copies of the firm’s records. Should the records be provided? CPA firms either maintain or have access to numerous types of client records and related working papers, which may constitute confidential business and tax records and/or trade secrets. Requests for access to copies of such records can arise from multiple The Alabama CPA MAGAZINE

CNA Answers Top 10 Frequently Asked Questions sources, including successor CPAs, current and former clients, lawyers, civil and criminal investigators, regulators, lenders, adverse parties in litigation, dissident shareholders, and others. The duty to respond to these requests is governed by professional standards, state board of accountancy regulations, state and federal law, and regulatory bodies. Before responding to these requests, CPA firms should consider all applicable professional standards, laws, rules, and regulations. Responding to requests can be challenging, regardless of whether the client consents to the production. CPA firms should consider the scope of any authorization provided by the client, the types of records requested, the time frames sought to produce the records, the format of the documents being requested, and the resources necessary to identify, retrieve, reproduce and submit copies of records. CNA policyholders have access to the CNA practice guide, Requests for Records – A Guide for CPA Firms, which is available in the Policyholder Resource Center at www. cpai.com. This guide is a useful resource that addresses replies to record requests.

• Advise the taxpayer of the potential consequences of the error, and • Recommend corrective measures to be taken.

10 The firm does not conduct audits and has been in practice for over 20 years without experiencing a claim. Why is professional liability insurance coverage needed? It is likely most CPAs will face a professional liability exposure in their career. A CPA need not have made a mistake for a client to file a malpractice claim. Additionally, tax practice generates approximately 65% of all claims in the AICPA Program. When a claim is filed, CPA firms must respond, and these legal actions can be quite costly. Professional liability insurance typically covers various types of professional services in your firm’s practice. Accountants should carefully review the cov-

Do you have broad professional liability insurance coverage? You do if you are insured with the AICPA Professional Liability Insurance Program.

9 An error was discovered on a client’s prior year tax return the firm prepared. What should be done? This matter should be promptly reported in writing to the firm’s professional liability carrier as a potential claim. While the error on the current return may be below the firm’s deductible, a claim representative can assist the firm in responding to the matter with the client and mitigating the risk of future claims related to preparation of this and other related tax returns for that year. The claim representative also can offer advice related to compliance with Circular 230, Section 10.21, Knowledge of a Client’s Omission, and the AICPA Statements on Standards for Tax Practices No. 6, Knowledge of Error: Return Preparation and Administrative Proceedings. In accordance with these rulings, practitioners should: • Inform the taxpayer of the error; The Alabama CPA MAGAZINE

erages and exclusions in their policies and also engage in discussions regarding these matters with their insurance professional. No type of professional service is immune to a professional liability claim. CNA claim cards describe causes of loss by area of practice and provide real-life claim examples and suggested risk control points. Claim cards are available in the Policyholder Resource Center at http://www.cpai.com. _____ More information on these topics, as well as other resources, is available to CNA policyholders in the Education Center of www. cpai.com, which may be accessed from the Policyholder Resource Center webpage. To learn more about the AICPA Professional Liability Program, visit the home page of the website or call 800.221.3023. CNA, Accountants Professional Liability Risk Control, 333 South Wabash Avenue, 36th Floor, Chicago, IL 60604.

When it comes to something as important as your CPA firm, do you want to insure it with a professional liability insurance policy created for all types of professionals? Doesn’t it make sense to cover your firm with a professional liability insurance program created with the support of the AICPA specifically for CPAs? Get the benefits of a national provider with the personal service you deserve: • Policy form designed to cover the unique exposures of CPA firms • All size firms and areas of practice are eligible • Premium credits designed to reflect the way CPAs do business • Quality coverage at a price that fits your budget

Please contact Robert Albertini at Aon Insurance Services at 800.221.3023 or visit www.cpai.com/premierad today! More than 25,000 CPA firms depend on the AICPA Professional Liability Insurance Program.

Endorsed by:

Underwritten by:

Administered by:

Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (AR 244489); in CA and MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc. (0G94493), Aon Direct Insurance Administrator and Berkely Insurance Agency; and in NY, AIS Affinity Insurance Agency. One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the 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. The statements, analyses and opinions expressed in this publication are those of the respective authors and may not necessarily reflect those of any third parties including the CNA companies. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2014 CNA. All rights reserved. E-10893-1014 AL

E-10893-1014 AL.indd 1

8/12/14 11:48 AM

Caring For Dad

Four daughters provide end-of-life support for their CPA father

icki Martin is a CPA with McDaniel & Associates in Dothan. Her father, Charles Maddox, was a member of the firm since 1960 and managing partner 1973-1989. Maddox was diagnosed with Alzheimer’s disease in 2005, right about the time that his wife died unexpectedly from surgery for ovarian cancer. It was a double whammy for his four daughters. “Mom had noticed signs of Alzheimer’s before she died. He was having trouble with his memory and his behavior was changing, too”, shared Martin. “Looking back, he was covering up his illness, excited about his retirement and plans to celebrate their 50th wedding anniversary.” As his disease progressed, his daughters stepped in to assist with different aspects of his care. Martin, as the CPA, dealt with financial matters. “I remember clearly the first time he got frustrated reconciling his bank account. Of course a lot of that had to do with how many $5, $10, $20 checks he was sending to every organization that sent him something! I told him I would do it for him and I could tell how relieved he was. I diverted his mail and took care of bills. By the next year, he let me do his tax return as well. When we had to hire caregivers, my background as a CPA helped with payroll taxes, quarterly returns and so on.” The other Maddox daughters also had skills that paid off as their dad declined. Laura Everett was a nurse and went on all medical appointments and monitored medications. Charla McKoy was an Air Force wife whose motherin-law had Alzheimer’s. She and her husband John supplied vital emotional support to the sisters and physical help for Maddox. Melissa Thornell was an educator. She was responsible for tempting their dad’s appetite by doing thoughtful grocery shopping. Charles Maddox was from Covington County. He joined the army and entered the Korean War as part of the 417th Engineer Aviation Brigade. After leaving the service he attended the University of Alabama and was graduated in 1956. He joined McDaniel & Associates that same year, earned his CPA certificate in 1959 and became a partner in the firm and a member of the ASCPA in 1960. Maddox was active in the community and considered a man of impeccable integrity by the McDaniel firm family. He was a big fan of Alabama football. Vicki Martin was the only sister who elected to follow their dad into accounting 10

“My sisters just never liked math/numbers as much as I did. It was always my favorite subject while they liked reading, English, or science. I originally planned to major in computer science, but it was such a new field back when I started college that I didn’t see a clear career path. I enjoyed the entry level accounting courses at Alabama (of course) and found that I was very successful in them, so I stuck with it.” She did an internship at McDaniel one summer, got married, worked at a small firm in Decatur, commuted to Tuscaloosa to finish her degree, moved back to Dothan, had a baby, and worked tax seasons at the firm. Martin began sitting for the exam and started accumulating her hours of experience. “Dad was able to present me with my certificate in Montgomery, which was very special.” On October 4, the four Maddox sisters cochaired the Alzheimer’s Resource Center (ARC) “A Walk to Remember” fund-raiser. The goal of the walk was to raise awareness of the disease

and to fund resources for patients and caregivers. “We appreciate so much the support we got from ARC while we traveled the Alzheimer’s road with Dad. Kay Jones, executive director, was so wonderful to us, giving us a place to unload our sometimes contradictory emotions. We grew closer as a family as we shared his care. It became about honoring our dad in the midst of the ugliness. We love that the website is www.wesharethecare.org.” _____ To remember Charles Maddox with a contribution to ARC, contact Kay Jones at 334.702.2273 or through the ARC website.

C L I E N T - F O C U S E D

service.

A recognized leader in assisting clients with business and tax issues in Alabama for more than 40 years: • Federal, State and Local Taxation • Estate Planning Blake A. Madison

• Business Law • Tax Litigation • Church Law • Healthcare Law

Jeffrey C. Morman

• Information Privacy & Security Law

(877) 223-9497 • RosenHarwood.com NO REPRESENTATION IS MADE THAT THE QUALITY OF THE LEGAL SERVICES TO BE PERFORMED IS GREATER THAN THE QUALITY OF LEGAL SERVICES PERFORMED BY OTHER LAWYERS

The Alabama CPA MAGAZINE

MEMBERS IN MOTION New Positions and Promotions Wilkins Miller Hieronymus LLC (WMH), an accounting and advisory firm with offices in Mobile and Fairhope, is pleased to announce that Eric Haynes, CGMA and Amanda Jones, have Eric Haynes been promoted to the position of senior Accountant. Haynes’ area of special concentration includes financial analysis, litigation, audit, tax, and advance spreadsheet design. He joined the firm in 2012 and was graduated Amanda Jones from the University of South Alabama in 2009. Jones concentrates in financial analysis, litigation and tax. She also joined the firm in 2012 after graduating from the University of South Alabama. Kim Tarnakow has been promoted to senior manager at Barfield. Murphy, Shank & Smith.

Kim Tarnakow

Warren Averett, LLC announced that David Legrand, Will Aderholt, Yogesh Patel, Aimee Burgess, Chris Reyer, Heather Scott, Jonathan Fleisher, Kevin Golden and Alisha Shedd have been promoted. David LeGrand and Will Aderholt are now senior managers within the tax division. LeGrand works in the Birmingham office and specializes in consultation and compliance on federal and state corporate and partnership tax matters as well as transactional and R&D credit work. Aderholt specializes in tax planning and consulting for closelyheld and private-equity owned businesses. He also consults with business owners on profitability enhancement, multi-state tax compliance, liquidity and capital sourcing issues as well as providing financial statement reviews and compilations. Yogesh Patel, CFE, has been promoted to senior manager within the audit department. Patel specializes in the appropriate application of generally accepted accounting principles, financial statement audits, single audits and agreed upon procedures. Aimee Burgess has been promoted to manager within the firm’s estate division. Burgess is in the Birmingham office and specializes in estate planning, valuation services and tax planning. Chris Reyer and Alisha Shedd have been promoted to managers within the firm’s tax division. Reyer specializes in economic claims, estate planning, as well as providing tax services to clients. Shedd works in the Cullman office providing tax and tax planning services. Heather Scott, CVA, CIA, CRMA is now a manager within the firm’s The Alabama CPA MAGAZINE

consulting division. She specializes in business valuations, financial analysis and forecasts, fraud investigations, risk management and internal control services, information technology controls and assessments, workflow and process reviews and due diligence projects. Jonathan Fleisher, CFE has been promoted to a manager within the firm’s Birmingham audit division. His responsibilities include managing audits, reviews and compilations, as well as reviewing and assisting in preparation of financial statements.

AWARDS AND NEW DESIGNATIONS Patrick Bowman, member at Barfield, Murphy, Shank & Smith, was inducted into Troy University’s Accounting Hall of Honor. He received his undergraduate

Patrick Bowman

and masters degrees in accounting from Troy. With over 15 years of public accounting experience, he provides audit, review and compilation services as well as internal control reviews to clients primarily in the construction, manufacturing, governmental and not-for-profit industries. Beason & Nalley, Inc. is pleased to announce that Jeremy Jefferys, owner, Assurance & Advisory Group, received the Northern Alabama Chapter of the Association of Government Accountants’ (AGA) Mem- Jeremy Jefferys ber of the Year Award. AGA serves government accountability professionals by providing quality education, fostering professional development and certification, and supporting standards and research to advance government accountability.

Emmett Cameron Emmett Cameron, an emeritus partner of Wilkins Miller Hieronymus, LLC (WMH), died on September 3, 2014. He had been a member of the Alabama Society of CPAs since 1952. Born on August 15, 1924 in Kiln, Mississippi, Cameron recently celebrated his 90th birthday. Survived by his wife, Louise, their two children, Joe and Beth, and several grandchildren, Cameron will be missed by many in the community including members of his church, Trinity Episcopal, as well as his clients and colleagues at WMH. Cameron was a humble man who knew how to make a lasting impression and was highly respected by everyone at the firm. According to Frank Brown, WMH partner, “Cameron was a fine gentleman, world class; incredibly kind, polite and generous to everyone he met.” Cameron attended the University of Alabama where he earned an accounting undergraduate degree and a masters in taxation. He was a veteran of World War II, serving as an infantryman in Italy. He worked with the Internal Revenue Service 1948 to 1979, serving on the IRS Commissioner’s staff and as the chief of the

audit division for the state of Virginia. He was responsible for four hundred agents and twenty-four attorneys. After retiring from the IRS, he joined Pannell Kerr Foster in 1980 and was a founding shareholder of Wilkins Miller Stalcup Galle Brown and Cameron in 1991, a predecessor firm of WMH. Cameron was most proud of the roles he played in education. In 1963, alongside Dr. Thomas Wood, Mr. Cameron served as an adjunct professor teaching some of the first accounting courses ever offered at the University of South Alabama. In 1989, he worked to establish the masters in taxation program for Spring Hill College, developed the material used in the program and taught tax courses. He also taught accounting and tax courses at Georgia State University. All of Cameron’s hard work and efforts over the years made WMH possible. He cared deeply about the firm and its people. The family has asked that any memorials to Emmett Cameron are directed to Trinity Episcopal Church, the University of South Alabama, Spring Hill College or the University of Alabama. 11

Doing it better Top Ten Reasons to Join Class V of the ASCPA Leadership Academy 10.The toolbox you build is tangible and long-lasting. 9. You can take what you learn in each session and put it into practice right away. 8. Materials and discussions are specific to YOUR everyday challenges. 7. Rainmaker coaches are smart, funny and seriously skilled at bringing out the best in each member of the class. (Joe Fehrman and Bryan Shelton) 6. T here is a hugely supportive atmosphere among participants. Class members help each other solve problems creatively. Let’s face it, your issue is probably shared by someone else. 5. You’re encouraged to share what you’ve learned with your peeps back at the office; not only reinforcing the lessons for yourself, but also helping to inspire other team members. 4. Accumulate 32 continuing education credits (bridging two compliance years) while building serious skills. 3. The lunches are yummy! 2. T here is a strong connection within each class. Reunions are being planned. 1. “What happens at Leadership Academy……” - you know the drill.

Here’s the Cliff Notes breakdown: • Four quarterly 8 hour in-person sessions beginning in May 2015 and concluding in May 2016. The other two classes are in late September and mid-January. •C oaching calls, individual and firm projects between in-person sessions. • Webinars and reading assignments between in-person sessions.

• Graduation and special recognition awards at the final session. • $1000 per person cost, subsidized 50% by the ASCPA, resulting in a $500 net fee. If managing partners at firms from as far away as Toronto think this program offers excellent ROI, maybe you need to check it out. Still undecided? ASCPA staff will put you in touch with Class I, II and III participants, and even management decision-makers so you can get objective feedback. Complete the application form and submit to the ASCPA, along with your resume, no later than December 5. Acceptance letters will go out by December 19. To request an application, contact Diane Christy, dchristy@ascpa.org, 334.386.5752, or locate it on the ASCPA website.

AUBURN UNIVERSITY AT MONTGOMERY SEEKS ACCOUNTING PROFESSIONAL FOR FULL-TIME LECTURER POSITION Position: Lecturer in Accounting Courses Contract: 12-month contract with possibility for annual renewal. Lecturers are eligible for benefits equivalent to other full time employees of Auburn University at Montgomery. Starting Date: Spring Semester or Summer Term 2015 Duties: Teaching courses, undergraduate and/or graduate level, in areas consistent with professional qualifications and experience. In addition, the lecturer will serve as advisor to the graduate accounting students and maintain the appropriate documents relevant to student records; will establish a Beta Alpha Psi chapter at AUM; and will coordinate the accounting student organization activities. The Lecturer will report to the Department Head regarding these activities. Our College teaches graduate level courses in the evening hours. Candidates must agree to evening scheduling. Salary Level: Dependent on qualifications Minimum Qualifications: • Master of Accountancy degree from an AACSB separately accredited accounting program 12

• Professional Certification – Certified Public Accountant with an active permit to practice • Minimum of 4 years substantive professional experience in the areas of cost/managerial, tax, financial reporting, and/or management advisory services for private or public organizations. •D emonstrated success in teaching college level accounting courses, adjunct or full-time, preferred. • Experience with the organization and operations of a Beta Alpha Psi organization, preferably from a leadership role. Interested parties should apply at www.jobs.aum.edu. Auburn University at Montgomery is an equal-opportunity employer committed to achieving excellence through diversity; therefore, we encourage applications from historically under-represented groups. It is our policy to provide equal employment opportunities (including provisions for training, development, transfers, and promotions) for all individuals without regard to race, sex, religion, color, national origin, age disability or veteran status, or any other classification protected by applicable law. The Alabama CPA MAGAZINE

bradley Arant SALT Corner When Your Client Discovers It’s in a Tax Minefield, Consider a Voluntary Disclosure Agreement Bruce P. Ely, William T. Thistle, II / www.babc.com This is the inaugural column in a quarterly series. Bruce and Will hope it will provide practical guidance to members and ask for your feedback.

et’s assume that last week, your client wrapped-up a sales, use, rental and business license tax audit by a contract auditing firm that represents a number of cities and counties in the state. It turns out that your client has never filed a consumer’s use tax return. “Mercifully,” the examiner only went back six years, and not all the way back to the date your client first started doing business in the targeted localities. You’ve reviewed the audit report and the legal authorities the auditor relies on and (gulp) conclude that your client probably owes the use tax. You also realize that your client has perhaps a BIGGER problem – it does business in a lot of jurisdictions that the audit didn’t cover and it also owes State use tax. Now, you’re preparing for a meeting with your client to discuss the next steps. What should you do? In these situations, we often recommend that our clients consider pursuing a voluntary disclosure agreement (“VDA”) with the Alabama Department of Revenue (“ADOR”) and with other local jurisdictions that may be owed the same type of tax. A VDA allows a taxpayer to proceed with a clean slate. Indeed, taxpayers participating in a VDA program generally receive a contractual commitment from the taxing authority to limit the look-back period, waive penalties, and possibly even reduce

The Alabama CPA MAGAZINE

(or eliminate) interest. In short, a VDA provides much greater certainty than the taxpayer’s most realistic other option – playing the audit lottery. And with recent changes in the law and enhanced cooperation between the taxing authorities, the chances of “winning” that lottery are slimmer and slimmer. Thankfully, the ADOR offers a formal VDA program, and its guidelines are available on the ADOR’s website. In our experience, most (but not all) local jurisdictions offer very similar programs. Typically, to be eligible for a VDA, the taxpayer must not have been filing returns for the type of tax at issue and must not have been contacted by the taxing authority or its agents regarding potential liability. Importantly, the ADOR (and most local jurisdictions) permit taxpayers who were audited by other taxing authorities to enter into a VDA if you contact them first For most tax types, a VDA will limit the look-back period to just 36 months from the date you or the client’s attorney contacts the taxing authority, although there may be exceptions for city business license taxes and for taxpayers who collected sales or seller’s use tax but failed to remit it. In addition, the taxing authority agrees to waive all penalties. So, a taxpayer may be able to resolve decades of potential liability for just three years’ worth of tax and interest – and may even get a break on the interest. In exchange, the taxing authority receives an unexpected influx of revenue, with little effort, and a new taxpayer on the rolls. A win-win Continued on page 14

EDUCATION Express

Save $25 when you register at least 10 days before class date.

Type of AICPA Member No. Hrs Credit Title Date Location Discount Fee

Non-Member Fee

EDCONF 4.5 AA

7th Annual ASCPA Educator Conference

10/10/2014

Montgomery

100

GAAF 16

27th Annual Governmental Accounting & Auditing Forum

12/3/2014

Birmingham

330

380

209

Getting Ready for Busy Season: A Guide to New Forms, Filing Issues and Other Critical Developments

12/16/2014 Huntsville

275

325

210

Surgent’s Federal Tax Camp

12/16/2014

Mobile

275

325

211

Getting Ready for Busy Season: A Guide to New Forms, Filing Issues and Other Critical Developments

12/17/2014

Birmingham

275

325

212

Surgent’s Federal Tax Camp

12/17/2014

Montgomery

275

325

213

Getting Ready for Busy Season: A Guide to New Forms, Filing Issues and Other Critical Developments

12/18/2014

Montgomery

275

325

214

Surgent’s Federal Tax Camp

12/18/2014

Birmingham

275

325

215

Getting Ready for Busy Season: A Guide to New Forms, Filing Issues and Other Critical Developments

12/19/2014

Mobile

275

325

216

Surgent’s Federal Tax Camp

12/19/2014 Huntsville

275

325

Looking for your CPE Transcript?

Barry Crabb, second from left, City of Montgomery Financial Director, recently spoke to students at Trenholm Tech. Their instructor, Pamela McCorvey, is accounting manager for the city.

BABC Salt Corner Continued from page 13 solution and you look like a hero to your client! To initiate a VDA, we recommend that you or the client’s attorney call the taxing jurisdiction (or their contract auditing firm if they use one), on an anonymous taxpayer basis, to explain your client’s situation, find out the terms of their VDA program, and make sure your client is eligible to participate. Assuming your client is eligible, the next step is for you to send a letter to the taxing authority formally requesting participation in their VDA program, but without naming your client (yet). Typically, the taxing authority has a standard voluntary disclosure agreement they will send back to you to memorialize the terms and which provides a deadline for compliance. From there, your client simply determines its tax liability for the look-back period. It’s a relatively simple process that we successfully use for literally dozens of our clients each year. _____ ©Bruce P.Ely/William T. Thistle, II/Bradley Arant Boult Cummings LLP/September 2014.

The Alabama CPA MAGAZINE

ASCPA Continuing Professional Education Registration Form Mail form to : ASCPA P.O. Box 242987 Montgomery, AL 36124-2987

Fax form to :

(334) 834-7310

www.ascpa.org

REGISTRANT INFORMATION Last Name

M.I.

First Name

ASCPA Member Number

Firm / Employer

State Certificate Number

Address City

State

Business Phone

Business Fax

Please visit www.ascpa.org to view all registration policies, including information about cancellations and refunds.

Zip

Please attach a description of special requests or contact us at (334) 386-5764.

Email Address (for registration confirmation)

 Vegetarian  ADA Request

 Check if information has recently changed and needs to be updated in your member record Are you a member of the AICPA?  Yes How did you hear about this class?

Course Date

 No

 Email

Course Title

Member Number: ____________________ (Required for discount; subject to verification)  Newsletter

 Website

Course Number

 Postcard/Special Mailing Course Fee ASCPA Member

NonMember

 Other

AICPA Discount *see note (where applicable)

Book Fee ($20 per course)

Subtotal

Total: *CPAs who are members of the ASCPA may register at the member rate. CPAs who are not a member of the ASCPA or other State Society may register at the Non-Member rate. Please include the appropriate discount(s) when registering for events. CPAs who are members of the AICPA may deduct $30 from AICPA seminars ONLY (8 hrs classes). (These are identiﬁed in the CPE Schedule online or in the ASCPA newsletter). *Electronic course materials are included in the registration fee and will be emailed at least two weeks before the course date. You can choose to purchase a paper copy of the course materials for an additional fee of $20 per course.  I acknowledge that I will receive course materials electronically (included in course fee).  I would like to purchase my manual for $20 per class Check: I have enclosed a check payable to ASCPA in the amount of $ ___________ I authorize the ASCPA to charge $ __________ to my credit card. Card Number

Credit Card:  MC  Visa  Discover  AMEX Expiration Date Month Year

________________________________________ Print Cardholder’s Name

________________________________________________ Cardholder’s Signature

________________________________________ Address of cardholder

________________________________________________ City, State, Zip of cardholder

The Alabama CPA MAGAZINE

1/11/12

Presorted Std US Postage PAID Permit No. 131 Montgomery, AL OCTOBER

2014

The Alabama Society of Certified Public Accountants 1041 Longfield Court P.O. Box 242987 Montgomery, AL 36124

C l assifi e d

Contribute to the ASCPA archive as we celebrate 100 years. Send photos, early CPA certificates and other memorabilia. Contact Jeannine Birmingham jbirmingham@ascpa.org

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.

LOOKING FOR A TEAM PLAYER ? Every position has its own set of expertise, challenges and goals. Whether it’s shortstop or baseman, you have to play to your strengths, but this isn’t a one-man sport and we understand the essence of teamwork. We believe that when you connect the right person to the right job and the right individual to the right company, it’s like a hand in glove. We’re here to help you find that ideal person to play on the team, and to make sure they can help the team PERFORM FOR SUCCESS.

PRACTICE FOR SALE: grossing $415,000, primarily from tax preparation and write-up. Seller pays brokerage commission. For more information, please contact Lori Newcomer at 888-277-6040 or LNewcomer@APSLeader. com or visit AccountingPracticeSales.com.

Successful transitions require experienced, confidential, professional services you can trust. This is what Akins Professional Brokerage provides. Specializing exclusively in the brokerage of CPA firms, we have no upfront fees. List your firm w/ a professional. Call David Akins, CPA, at (877) 277-0272. Visit our website at www.ProfessionalCPAbroker.com.

www.itacsolutions.com TECHNOLOGY | CORPORATE PROFESSIONAL/CLERICAL GOVERNMENT/ENGINEERING | ACCOUNTING/FINANCE

Providing temporary/contract, contract-to-hire, and direct hire staffing solutions. SOLUTIONS

Birmingham | Mobile | Huntsville | Nashville