CONNECTIONS s e pte m b e r
ACCOU NTI NG PI PELI N E ISSU E
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O C T O B E R
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TA B L E O F C O N T E N T S
FEATURES 7 2019 ASCPA Educational Foundation Scholarship Recipients
COLUMNS CONTINUING EDUCATION 10 Upcoming CPE Rule Changes
by Nicole Robinson, CPE Administrator at the Alabama State Board of Public Accountancy
ADOR NEWS
Financial Institution Excise Tax Reform Act
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by Kelley Gillikin, ADOR Acting Director of Tax Policy & Governmental Affairs
ZOBELEIN & BENITEZ ON TAX 24
8 Making Partnership Appealing
to Younger Generations by Rachel Anevski, MAOB, PHP, SHRM-CP
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26
30
Ideas from the 2019 Tax Filing Season Helpful for 2019 Year-End Planning
TELLING THE FIRM STORY: 30 Carr, Riggs & Ingram, CPAs and Advisors As told by Bill Carr
Meet Doug Marshall
The road to Talladega for Alabama’s Homeless Children from the C-Suite.
The Business of Making a Social Impact
Inside the ASCPA Message from Jeannine................ 4 Message from the Chair................ 5
Corporations, communities, and careerist can all do better by doing good.
Member News............................ 16
Meet Hannah Donovan
Classifieds................................... 31
Our Spring 2019 Intern is going places.
Mark Your Calendar.................... 21 Remembering............................. 31 ASCPA Across Alabama.............. 32 General CPE Schedule................ 33
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MESSAGE FROM JEANNINE
B
ackpacks are packed, books and school supplies have been ordered, and the entire office is in full-swing with one word on our minds—expectant! That’s the mindset that a new school year brings in each year for our staff. One of our brilliant young ladies on staff is diving into her second semester of her Masters of Accountancy program. Over half the staff have prepped their children for their new classrooms and after-school activities. All of us are buzzing over Alabama, Auburn & Troy (of course) football schedules and the dozens of ways we get to work with you in this vibrant time of year. You will want to Mark Your Calendar with the student, firm and chapter events that we have coming up (page 21). I love all the ways that we get to stand along side this generation of CPAs and empower them to put their ideas into action. Lately, it’s been the friendly faces on the cover of this issue—our Young CPA Cabinet. This year’s Cabinet is full of fresh, honest ideas to help propel the Society into 2020 and connect with young professional leaders on a genuine level. One of their great ideas was bringing the annual Young CPA Charity Golf Tournament back to Birmingham in 2020 at the beautiful Greystone Golf & Country Club on June 15, 2020. They expect this tournament to be the best day of networking and golf to benefit the ASCPA Educational Foundation and the Exceptional Foundation. Thanks to your continued contributions to the ASCPA Educational Foundation, students from across the state were awarded a total of $80,000 in scholarships this year. We are always grateful for your support, because we get to meet the dozens of
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ASCPA Connections
students recognized on page 7, hear stories like Hannah Donovan (page 30), and see the positive impact your support makes in their lives. They are expectant for their future and excited to be a part of your organization very soon. Please continue to boost the best and brightest of the accounting crop with contributions through www.ascpa.org/ EdFoundation. Upcoming CPE changes will open a variety of opportunities for you to expand your knowledge and earn the hours you need over the coming year. Nano-learning and ethics courses are just a couple new items that we plan to offer. Nicole Robinson, the CPE Coordinator from the Alabama State Board of Public Accountancy, covers all the details of the changes that will take affect October 1, 2019 on page 10. The Accounting Pipeline Issue would not be complete without insights into future CPAs and colleagues. Individuals invested in the future of accounting make it clear that Making Partnership Appealing to Younger Generations (page 8) and turning our attention to our businesses’ social impact (page 26) benefit our great profession. When I visit your firm or you see one of our staff members at one our many events, do not hesitate to tell us what you want to see from the Society as we go into our next century. Please feel free to connect with me at jbirmingham@ascpa.org with your ideas or suggestions.
Jeannine
MESSAGE FROM THE CHAIR
Wow, it seems like I just finished my first Chair Letter last week and I find it’s time for my next one! I write this letter as we approach the Fall and that means one thing to me - it’s college football season! And while college football may bring me happiness, there is much more happiness to look forward to in our profession.
adversely affected. CPA Evolution, a joint initiative of AICPA and NASBA, is working to address the changing landscape of the accounting profession by identifying opportunities to enhance future licensure. You can learn more about this initiative at: https:// www.evolutionofcpa.org/.
This Connections issue focuses on the Accounting Pipeline—the Up and Coming Talent in the accounting profession. We all can appreciate a “pipeline” in the sense that our organization is working to create new opportunities to serve our customers/clients in the future. The same is true for the continuous flow of talent into the accounting profession. It must continue to innovate to attract highly talented individuals.
ASCPA also has many efforts focused on enhancing the student pipeline. Numerous on-campus activities to create deeper relationships between students and CPAs, scholarships for accounting majors via the ASCPA Educational Foundation, and Accounting Interview Day benefitting students of smaller programs are a few of the student focused initiatives provided by ASCPA. We, as members, should contribute to ASCPA’s efforts by getting involved in these activities. You can encourage newer staff to return to their local university or alma mater to participate and share about their experiences in the accounting profession to make an impact on the next generation.
We know this for certain: technology is rapidly changing how we work. Innovations of just the past 3-4 years are eliminating “transactional” functions that newer staff typically perform. From scan software that populates data, to analytical technology that can evaluate entire sets of data rather than samples, time-consuming manual efforts are being eliminated. This allows the opportunity to utilize newer staff’s talent in different ways to better serve our organizations. How our profession adapts will enhance the attractiveness of being a CPA. More college students are seeking a major in accounting than ever before. However, the number of individuals seeking the CPA designation is not increasing commensurate with the growth in accounting majors. At the same time, the top 20 firms are hiring more new staff who do not have a degree in accounting. This trend will make its way to the G400 and beyond. So, the future pipeline of CPAs to employment in firms, membership in state societies and the AICPA may be
When I speak of talent from newer members of our profession, I must give a shout-out to the members pictured on our cover: The Young CPA Cabinet. This group of creative and innovative individuals show me how strong our profession can be in the future. At two of our recent events, the Emerging Leader Summit and our August Board meeting, these folks contributed to great discussions on the direction of our (and their) profession that will lead us in our next 100 years. I encourage you to support the Cabinet and its programs including their annual golf tournament which will return to Birmingham in June 2020 at Greystone Country Club. A thank you to everyone who contributes to the ASCPA Educational Foundation. Through your kindness and support we are honored
to award $80,000 in scholarships to students from programs throughout the state. These scholarships benefit deserving accounting majors and is another way we enhance the future of our profession. Finally, we are approaching the end of Alabama’s CPE reporting year. If you need last minute hours, we have offerings for you at www.ascpa.org. In the future, be on the lookout for upcoming changes to the CPE rules from the State Board, providing broader options for learning. The next century for the Alabama CPA is filled with opportunity. As we take advantage of opportunities, we will change much of “how” and “what” we do but, the “why” of serving and building great relationships will not disappear. Here’s to a great future and to a great 2019 college football season!
Dennis
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ASCPA Connections
2019 ASCPA Educational Foundation Scholarship Recipients The primary goal of the ASCPA Educational Foundation is to attract the best and brightest individuals into the profession of accounting. With dedicated leadership and responsible investment strategies, in 2019 the ASCPA Educational Foundation was able to award $80,000 in college scholarships to recipients in three categories: General, Diversity in Accounting and Financial Need. Chapters of the ASCPA were also able to award nine scholarships to students at their local universities.
The 2019 ASCPA Educational Foundation scholarship recipients are:
Mai Do, The University of Alabama at Birmingham Lakeisa Tinker, The University of Alabama at Birmingham
Keniatta Lawery, Alabama State University
Jacob Lambert, University of Alabama in Huntsville
Alyah Sheppard, Alabama State University
Hunter Avery, University of Mobile
Victoria Conard, Athens State University
Katie Hurt, University of North Alabama
Tiffanie Duke, Athens State University
Autumn Leavins, University of North Alabama
Mary Catherine Hyde, Auburn University
Ryan Ruland, University of South Alabama
Parker Bethea, Auburn University
Sarah Wyatt, University of West Alabama
Hannah Donovan, Auburn University Montgomery
2019 Chapter Scholarships were awarded to:
Emma Gunter, Auburn University Montgomery Tommie Johnson, Auburn University Montgomery Savannah Gibbs, Huntingdon College Julia Matthews, Jacksonville State University Courtni Ivory, Miles College Kelly Watts, University of Montevallo Anna Zahumensky, University of Montevallo Amanda Kilduff, Samford University Kaylynn Peel, Troy University Makaia Davis, Tuskegee University Maximilian Archer, University of Alabama Autumn Bolton, University of Alabama Heather Drew, The University of Alabama at Birmingham
East Alabama Chapter Mason Mathis, Auburn University Birmingham Chapter Brian Curry, Miles College Keyshawn Roache, Miles College
Hugo Moreira, Samford University Olivia Godfrey, Samford University Kayla Graves, Samford University Tyler Warren, Samford University Hannah Marcelino, The University of Alabama at Birmingham Julie Vo, The University of Alabama at Birmingham Please visit www.ascpa.org/EdFoundation to learn more about scholarships and make a contribution to the future of accounting.
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Making partner isn’t what it used to be. CPAs no longer go door to door to sell commodities like tax returns and audits. Accountants are no longer interested in one career or staying with just one firm. Staff don’t want to put in the hours, equity or sweat. They don’t want to hear “Let’s talk when you start bringing in business.” Fewer staff are stepping up and willing to do “what it takes” to make partner. They are not like us. Sound familiar?
A CLOSER LOOK
Making partnership more appealing to younger generations begins with taking a good look at the behavior current partners exhibit. Does your existing partner group stay the latest in the office, never take vacation, anger easily, lose patience frequently, often speak negatively about the revolving staff or lack of payment from clients? These types of behaviors are some of the major reasons younger generations are looking for alternatives to partnership. If you are a partner reading this, think about all the reasons you love being a partner. Do you love feeling empowered to make decisions, meeting interesting clients you get to make lifelong friendships with and becoming a trusted advisor and the first call your clients make when they need advice? Do you love the flexibility to travel, learn about multiple industries and gain a birdseye view into executive strategy? How about the shore house, the fast car, the financial stability and future secured retirement? What about client perks and all that GOLF? All of these are reasons to celebrate your role as partner and should be shared with upcomers, mentees and the future of your firm.
FINDING LEADERS
There are leaders everywhere. But, no one wants to join a group of individuals that dislike their work or aren’t happy to arrive each day. Ready to put in another 12 hours today…who’s with me? When was the last time you told someone you loved what you do, or that you were happy with your choice to become a partner? In fact, when was the last time you shared with someone of the younger generation what it would mean to become a partner. Young accountants know the job description of a CFO or a controller, yet few know the job description of a partner. Transparency is key to developing future partners.
The future of partnerships means more than just a buy-in, a decided amount of new revenue to bring in each year or a designated book of business to manage. The appeal of becoming partner one day means that you get to own a piece of the puzzle with others who share your vision and values. Furthermore, you get to share these ideals with future generations. Becoming partner means that you have earned one of the highest levels as a CPA. As a partner, other business owners weigh your words and decisions more importantly. As a partner, you may be charged with certain areas within the firm to manage, such as marketing or human capital. You will have more opportunities to give back to the community and make a difference.
THE BENEFITS OF PARTNERSHIP Staffers have many reasons to strive for partner. Aside from the obvious monetary benefits, partners are able to:
Lead others. Partners can make an impact that affects large groups of individuals. They have reached a level of mastery within the profession that is recognized by ownership and that is shared with others. Create policy and vote on it. Partners don’t just work for the company but also towards the company’s goals and objectives.
Experience gratitude from various clients
and their staff for helping them become successful.
Exhibit their education, experience and career passion in a way that allows for
others to view them at the top, amongst peers.
The way to a more appealing future isn’t limited to enticing staff with flexible schedules, casual dress codes or having bean bags and foosball tables. It comes when management encourages the next generation to realize that being in a partnership is a wonderful way to celebrate true dedication to the profession, where sharing one’s talent is appreciated both internally and externally.
Reprinted with permission from the New Jersey Society of CPAs from the March/April 2019 issue. (njcpa.org/newjerseycpa)
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Upcoming CPE Rule Changes The Alabama State Board of Public Accountancy has reviewed the CPE Rules that are currently in place and approved some significant changes and updates in CPE requirements. The changes are extensive and are outlined in detail below. Please review this guide carefully so that you are aware of all that is new in CPE. If you have any questions about these changes, please contact Nicole Robinson at the state Board office:
Nicole Robinson, CPE Administrator 334-242-5712 | nicole.robinson@asbpa.alabama.gov Most importantly, please note that these changes will be effective on October 1, 2019. This means that the CPE you report on your 2019-2020 Registration form, which is earned from October 1, 2018 through September 30, 2019 must follow the current CPE Rules in place. Beginning October 1, 2019, all active CPAs, PAs and NLOs will follow the new CPE Rules outlined below. These new CPE Rules must be reflected in CPE earned from October 1, 2019 through September 30, 2020, which will be reported on the 2020-2021 Registration Form.
RULE REFERENCE
OVERVIEW OF CHANGE
RULE DETAIL
30-X-5-.02(1)(a)
Clarification of software courses qualifying for A&A
At least eight of the forty hours reported must be obtained in the subject of accounting and auditing. Computer software and applications courses dealing with the general use of software will not qualify for accounting and auditing CPE; although, software courses that focus on the application of the software in accounting or audit will qualify as accounting and auditing CPE
30-X-5-.02(1)(b)
Addition of 2 hours of ethics CPE
At least 2 hours must be earned in a qualifying ethics course
30-X-5-.02(1)(c)
Expanding/clarifying the definition of behavioral/ personal development CPE, maximum hours increased from 8 to 12.
The Board will accept a maximum of twelve hours of the forty in behavioral/personal development courses. CPE classified as behavioral/personal development center on workplace behaviors, including but not limited to time management, leadership, team building, goal setting, and other soft skills related to working in an office or professional setting
30-X-5-.02(3)
Catch-up CPE for those who have previously been actively licensed; change in make-up of catch-up CPE from 50% A&A and 25% tax to 20% A&A.
If a CPA or PA who has been licensed previously (active status) and who has since elected any status other than active wishes to return to active status, he shall make application to the Board for an annual permit to practice with proof that he has obtained forty (40) hours of continuing professional education (CPE) for each year that he was not on active status, not to exceed a total of 120 hours of CPE. Twenty percent of the hours submitted to the Board must be obtained in accounting and auditing courses, and all of the hours must be obtained during the three-year period preceding the date of request for an annual permit to practice. Upon satisfaction of the Board that the applicant has completed the above requirement, the Board shall issue him a permit to practice and transfer him to active status
30-X-5-.02(4)
Catch-up CPE for those who have never been actively licensed; change in make-up of catch-up CPE, up to 120 hours with 20% A&A.
If a licensee has never elected active status, has elected inactive status for more than five years, and wishes to enter the practice of public accountancy, he shall make application to the Board for an annual permit to practice with proof that he has obtained forty (40) hours of continuing professional education (CPE) for each year that he was on inactive status, not to exceed a total of 120 hours of CPE. Twenty percent of the hours submitted to the Board must be obtained in accounting and auditing courses, and all of the hours must be obtained during the three-year period preceding the date of request for an annual permit to practice. Upon satisfaction of the Board that the applicant has completed the above requirement, the Board shall issue him a permit to practice and transfer him to active status
30-X-5-.03
Chart detailing calculation of credit for various delivery methods
SEE CHART ON PAGE 11
30-X-5-.03(a)
Addition of 1/5 increment level after earning credit minimum
Credit will be given based on program length, with one fifty (50)-minute period equal to one CPE hour. One-fifth CPE hour increments (equal to 10 minutes) and one-half CPE hour increments (equal to 25 minutes) are permitted after the first CPE hour has been earned in a given learning activity for all delivery methods, except nano-learning, which is always only one-fifth credit in length. The minimum allowable credit for self-study CPE is one-half hour (25 minutes). For group and blended learning activities in which individual segments are less than 50 minutes, the sum of the segments should be considered one total program. For example, five 30-minute presentations would equal 150 minutes and should be counted as three CPE hours. When the total minutes of a sponsored learning activity are greater than 50, but not equally divisible by 10, the CPE hours granted should be rounded down to the nearest one-fifth hour
30-X-5-.03(b)
Addition of 1/2 credit minimum for self-study and 1/5 credit for nano-learning; Clarification of six hours course equal to 8 hours of CPE
In order to qualify, a group and blended learning program must be at least one hour (fifty-minute period) in length, a self-study program must be at least one-half hour (twenty-five minutes) in length, and a nano-learning program must be at least one-fifth hour (ten minutes) in length. Eight hours credit will be granted for a one-day or split-day session or program, provided the course or program, exclusive of the time taken by introductions, announcements or other activity which may be a part of the program, is in actual session at least six clock hours (360 minutes)
30-X-5-.03(d)
Addition of instructor/developer for credit and not just instructor
The credit to be granted for service as a lecturer, instructor/developer or discussion leader of an acceptable program will be equal to twice the number of actual hours of the lecture or session. However, no additional credit will be allowed for repetition of a program
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30-X-5-.04(3)(b)
Removes prior 8-hour cap on technical sessions & clarifies that only instructional portion may qualify
Educational portions of technical sessions at meetings of recognized national and state accounting organizations and their chapters. Portions of each meeting devoted to administrative and other organizational matters cannot be included.
30-X-5-.04(3)(c)
Addition of technical committee sessions for credit
Participation and work on a technical committee of an international, national or state professional association, council or member organization or a governmental entity that supports professional services or industries that require unique and specific knowledge in technical fields of study. Portions of each meeting devoted to administrative and other organizational matters cannot be included
30-X-5-.04(3)(h)
Clarifies the requirements for group internet-based to be live webinars that provide for real-time interaction with instructors
Group internet-based education programs (live webinars) that provide for real-time interaction with the instructors.
30-X-5-.04(4)(a)
Clarification of on-demand webinars as self-study CPE & additional language requiring a qualified assessment for self-study;
Formal self-study programs (including internet-based non interactive programs and on-demand webinars). Permit holders claiming credit for such courses will be required to obtain evidence of satisfactory completion of the course from the sponsor. Credit will be allowed in the renewal period in which the course is completed. The Board will not approve any program of learning that does not offer sufficient evidence that the work has actually been accomplished. The amount of credit to be allowed in each case shall be determined by the Board. A qualified assessment must be used to evaluate completion before credit is allowed.
Removes the cap on the number of hours that can be earned through selfstudy
30-X-5-.04(4)(b)
Change in percentage of credit allowed for authorship from 25% to 50%
Credit may be allowed for published articles and books provided they contribute to the professional competence of the permit holder. The amount of credit so awarded will be determined by the Board. Credit for preparation of such publications may be given on a self-declaration basis up to fifty percent of the renewal period requirement. In exceptional circumstances a permit holder may request additional credit by submitting the article(s) or book(s) to the Board with an explanation of the circumstances which he feels justify a greater credit
30-X-5-.04(4)(c)
Blended-learning defined
Credit may be allowed for formal learning activities in which multiple learning formats are incorporated. CPE credit must equal the sum of the CPE credit determination for the various components of the program. A qualified assessment must be used to evaluate completion of any self-study portions of the course before credit is allowed
30-X-5-.04(4)(d)
Nano Learning defined
Credit may be allowed for tutorial programs designed to permit a participant to learn a given subject in a 10-minute time frame through the use of electronic media and without interaction with a real-time instructor. A nano learning program focuses on a single learning objective and is not paper-based. A qualified assessment must be used to evaluate completion before credit is allowed. No more than twenty-five percent of the total required hours will be allowed for nano learning courses
30-X-5-.05(5)
Remove the requirement for other states to reciprocate CPE treatment; allows for full CPE reciprocity for our out of state CPAs
A nonresident licensee seeking renewal of an annual permit in this state shall be deemed to have met the CPE requirements of this state by meeting the CPE requirements for renewal of a certificate in the state in which the licensee’s principal office is located. (a) Nonresident licensees applying for renewal of an annual permit in this state shall demonstrate compliance with the CPE renewal requirements of the state in which the licensee’s principal office is located by signing a statement to that effect on the annual registration form of this state. (b) If a nonresident licensee’s principal office state has no CPE requirements for renewal of a certificate, the nonresident licensee must comply with all the CPE requirements for renewal of an annual permit in this state.
CALCULATIONS OF HOURS OF CREDIT CHART FOR RULE 30-X-5-.03 Qualifying CPE Program
Minimum initial credit that must be earned
After first credit has been earned, credit may be earned in these increments
Group
One (50 minutes)
One-fifth or one-half
Blended learning
One (50 minutes)
One-fifth or one-half
Self-study
One-half (25 minutes)
One-fifth or one-half
Nano-learning
One-fifth (10 minutes)
Not applicable (single nano-learning program is one-fifth credit)
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Meet Doug Marshall Doug Marshall is the President and CEO of Presbyterian Home for Children, located in Talladega and celebrating over 150 years of serving at risk and homeless children, after a successful journey in public accounting, the corporate world, and the disability community. In a state with so many homeless children who have been displaced in life, he is now dedicating his life and heart to leading the Home’s efforts to helping put both homeless children and their mothers on a path of hope, along with providing a residential therapeutic treatment program for teenage girls who have been subject to trauma. He is a much sought after speaker for the Home at churches and venues across Alabama. A graduate of the University of West Florida (UWF) with a Bachelors of Arts degree in Accounting, Doug was recognized as a Distinguished Alumni in 2012. Doug fondly recalls, “An incredible accounting professor at Pensacola Junior College, Dr. Louise Wise, helped play a key role in guiding me to accounting as a career. UWF provided a smaller class size and learning environment where I knew all my professors and was constantly challenged. My toughest professor was Dr. Ron Gray. He helped prepare me to pass the CPA exam on my first try and for the real world of accounting and finance. Dr. Gray and I have kept up with each other over the years since my graduation.” Doug has been profiled in a recently released book celebrating the state’s 200th anniversary. Alabama: The Bicentennial shares the account of Doug stepping away from an elite-level corporate career and following his heart to a path of service. According to Secretary of State John Merrill and Tom Ward, co-authors of this book, Doug is believed to be the only CPA profiled in the book, published jointly with the Alabama Department of Archives and History and Churchill Press. In 2017, he was recognized as one of the Top 50 Over 50 in central Alabama by Positive Maturity. In 2018, Doug was named in the Top 20 Making a Difference in Talladega and St. Clair Counties by The Daily Home newspaper. In 2019, he was elected to the EAGLE Commission, a fifteen-member accreditation commission under the United Methodist Association’s Health and Welfare Ministries which provides the only faith-based accrediting body in the world with a focus on ministry to children and older adults. He is currently leading efforts to build Union Village, a tiny home community on the back of the
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ASCPA Connections
Presbyterian Home’s campus dedicated to providing much needed safe and affordable housing for deaf and blind individuals, while enabling a new cash flow from the rentals to help provide for their core mission of serving children in need from across Alabama. Doug is a results-oriented and highly accomplished operational, financial, tax, marketing, and human resources executive with extensive leadership experience in both for-profit businesses and notfor-profit organizations. Led by his heart, Doug brought his savvy in finance and accounting along with his unmatched ability to recruit and build successful teams as CFO to United Ability and the United Ability Foundation serving children and adults with all disabilities and then to the state-wide nonprofit Alabama Family Trust as CFO and Director of Community Relations in the administration of special needs trusts. Widely respected in the business community across our State, Doug enjoyed 25 years with Energen Corporation, where he served as Vice President/Controller of Spire with direct operational responsibility with the State’s largest natural gas utility and Director of Tax for Energen Corporation, formerly one of the country’s larger independent oil and gas producers after starting his career in the Tax Department for Ernst & Young, LLP. Doug also serves as a career and life coach with Grace Ministries, which he describes as one of his most worthwhile investments of time and energy. Outside of accounting and serving his community, he has also co-founded two newspapers, The Selma Sun and The Leeds Tribune. The financial and operational skills he acquired while he served in industry and public accounting, combined with his huge heart to serve and care for at risk and homeless children in Alabama, prompted Doug to accept the challenge to lead the Presbyterian Home for Children. His financial background and ability to network with others across the state comes into play every day, but he has adapted new skills to help the Home succeed. “Resource development, fundraising and communications were all things I had to learn QUICK.” In this new role Doug has also learned, “Self-care is about being good to yourself so that you can be good to others. That means seizing
those moments to recharge and having a life outside of work. Keeping first things first and enjoying your family and friends. It is also getting enough rest and finding your trusted sounding board when life can get unfocused.” Doug encourages students about to start their professional careers with two simple tips: “Look for opportunities to network and help others around you succeed—pay it forward! Plus, first impressions do matter.” Doug is on the Board of Directors for both United Way of North Talladega County and Presbyterian Oaks Apartments, section 8 affordable housing for senior adults in Talladega, and is a member of the Talladega Rotary Club. During his career in Birmingham, he served as Chair of the Tax and Fiscal Policy Committee for the Business Council of Alabama, Chair of the Tax Committee for the Coalbed Methane Association of Alabama, Chair of the Tax Committee for the American Gas Association, Chair of the Advisory Council for the School of Business and Accounting for Miles College, Vice Chair of the Hope Foundation, board member for Workshops, Inc., board member for Alabama Gerontological Society and member of Birmingham Society for HR Management. Additionally, he volunteered extensively over the years for many nonprofit organizations, including United Way of Central Alabama, Kingwood Christian School Athletic Boosters, Liberty Church, Saginaw Volunteer Fire Department, Birmingham Business Alliance, Downtown Birmingham Kiwanis Club, and Vestavia Chamber of Commerce. He and his wife (and best friend), Christy, have been married for 33 years. Together they have two daughters, Deanna and Adrienne, and one son, Eric, a three-year old grandson, and another grandchild on the way. He is very grateful for and proud of their growing family. The Presbyterian Home for Children’s website is located at www.phfc. org where you can learn more and become a friend of children at the Home.
Doug has been a source of spiritual encouragement to me over many years, primarily during his long and distinguished tenure at Alagasco and Energen. The State Society should be proud of him not only for his many accomplishments but his spirit and tenacity to serve humanity. In addition to being a Godly husband and father and now grandfather in his family, “Mr. Doug” has become a father to many abused, neglected, and homeless children living at the Presbyterian Home for Children.
Doug is a caring and compassionate professional who always looks for ways to improve the lives of others. He is open about his faith and is inspiring to those who encounter him. We need more people like Doug Marshall in this world. It was my great privilege to introduce Doug at his Installation Ceremony as the 16th President of the Presbyterian Home for Children.
Bruce Ely
Partner with Warren Averett Former Chair of United Ability
Partner/State and Local Tax Attorney Bradley Arant Boult Cummings LLP Long-time friend and Associate Member of the ASCPA
Brian Bateh
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33RD annual
Accounting Interview Day SEPTEMBER 27, 2019
The ASCPA invites students from smaller colleges, university accounting programs and recruiters from national & local public accounting firms, government agencies and corporate entities to participate in this annual event. Students are hand-picked by schools for interviews for exciting accounting career opportunities. Find more details at www.ascpa.org/AID.
AID-2019.indd 1
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SUPPORT THE EDUCATIONAL FOUNDATION OF THE ASCPA
You shop. Amazon gives. When you #startwithasmile, Amazon donates 0.5% of the purchase price to the ASCPA Educational Foundation. Bookmark https://smile.amazon.com/ch/63-6063630 in your favorite web browser to start today.* *Currently, Amazon Smile is not supported in the Amazon app. ASCPA-AmazonSmile.indd 1
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ASCPA Connections
8/26/2019 4:26:32 PM
Financial Institution Excise Tax Reform Act BY KELLEY GILLIKIN, ACTING DIRECTOR OF TAX POLICY & GOVERNMENTAL AFFAIRS DIVISION OF ADOR
Summary
During the 2019 Regular Legislative Session, the legislature passed House Bill 419, the Financial Institution Reform Act of 2019 (FIETRA). The bill was signed into law by Governor Ivey on May 28, 2019 and assigned act number 2019-284. This act updates the antiquated Financial Institution Excise Tax (FIET) statute which has not been substantially revised since being adopted in 1935. The act provides clarity, simplicity, and administrative ease for taxpayers and the Alabama Department of Revenue (ADOR) while keeping the revenue collected for FIET neutral.
Background
FEITRA is the product of a collaboration between ADOR, representatives of financial institutions, and tax practitioners that was facilitated by the Alabama Bankers Association. The need for this reform became apparent as this working group undertook an examination of the impact of the federal Tax Cuts and Jobs Act on the calculation of FIET. Unlike the calculation of traditional corporate income tax, which starts with federal taxable income, the existing FIET law defines net income broadly as encompassing all gross income of the financial institution, less certain deductions that for the most part are not expressly tied to federal income tax provisions. Under this statutory scheme, DOR traditionally allowed items of income reported by the financial institution to be computed similarly to those same items of income addressed in federal law, unless Alabama rules provided direct guidance on these items. Absent express ties to federal provisions, however, it was not clear whether changes effected by the TCJA would affect the calculation of FIET. Also, through collaboration of the FIETRA working group, it became evident that fundamental reforms were needed to clarify the calculation of net income for FIET taxpayers, simplify reporting, and simplify the distribution of FIET collections to local governments. These goals were affected with the enactment of FIETRA, Act 2019284.
Key Provisions:
Calculation of Net Income for Financial Institutions (Section 2 & 3 of Act 2019-284): For financial institutions other than credit unions, the act clarifies the calculation of net income by tying it to federal taxable income, with certain specified additions and subtractions prescribed by Section 40-16-1.2. Calculation of Net Income for Credit Unions (Section 3 of Act 2019-284): For credit unions only, net income means financial statement income, which is the final net income amount calculated for financial statement purposes and reported to the IRS as a tax-exempt organization and to the Alabama Credit Union Administration or other government regulatory authority as appropriate. Credit unions are afforded certain subtractions from net income in accordance with Section 40-16-1.3.
Modification to Simplify Reporting (Section 2 of Act 2019-284): The simplified distribution of the FIET receipts prescribed by Section 40-16-6 eliminates the requirement for financial institutions to report location information as part of the FIET return. Beginning with the 2020 return, location information will no longer be included on the FIET forms, thus alleviating the need to track deposits by location. Although the location information is shown on the 2019 forms, financial institutions are not required to report this information. Net Operating Losses (Section 3 of Act 2019-284): The act extends the net operating loss (NOL) carryforward period to fifteen years, while eliminating the ability to carry back NOLs to the prior two tax years in accordance with Section 40-16-10. Captive REITs (Section 3 of Act 2019-284): The act provides for a five-year phaseout of the dividends received deduction (DRD) when such dividend is received from a Captive REIT that meets certain requirements. The percentage allowed to be deducted decreases over a five-year period until it is completely phased out for tax years beginning after December 31, 2024. Other Transition Provisions (Section 3 of Act 2019-284): The act provides clarification that the FIET statute does not conform with the new IRC §163(j) or §951A. The act also clarifies that the new limitations on deductions for FDIC premiums are not a part of the FIET statutes. The act does not ‘decouple’ the FIET from these provisions but instead is a codification of prior law. Additionally, the statute now makes it clear that the FIET conforms to the federal depreciation deduction. These provisions apply retroactively to all open tax years. Transition provisions are provided in Section 40-16-11. Estimated Payments (Section 3 of Act 2019-284): The act implements a prepaid estimated tax payment system, patterned after the federal system, and transitions the FIET from the current postpayment system. The first estimate payment due date is April 15, 2020. To account for this transition, the DOR is required to waive both penalties and interest attributable to underpayment of estimated tax payments occurring within the first two applicable tax years and not attributable to an intentional disregard of the law. Estimated payment provisions are prescribed by Section 40-16-5.1. Due Date (Section 2 of Act 2019-284): Section 40-16-3 was amended to change the FIET due date to make it correspond to the federal income tax or federal information return due date. Effective Date (Section 5 of Act 2019-284): Most provisions are effective for tax years beginning after December 31, 2019. However, several provisions of the act, such as the conformity of the depreciation deduction, are retroactive as they are simply clarifications of existing law. For further information, contact Kelley Gillikin at 334-242-1080 or kelley.gillikin@revenue.alabama.gov. September/October
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MEMBER NEWS Eight ASCPA members from across the state have been appointed to various AICPA volunteer groups for the committee year that began in May 2019 and will end in May 2020. Michael Brand, ASCPA Chair-elect, CPE leader, and Partner at Johnson, Feigley, Newton & Brand, LLP will serve on the International Federation of Accountants (IFAC) Convergence/Monitoring Task Force – a standing task force of the Professional Ethics Executive Committee (PEEC). Jon Heath, a member of the ASCPA Board of Directors, ASCPA Audit Committee, ASCPA Professional Ethics Committee, and Partner & Director of Professional Services at Carr, Riggs & Ingram, CPAs and Advisors, will serve on the Auditing Standards Board and AICPA Council as an Elected Member. Darren Neuschwander, co-managing member of Green, Neuschwander & Manning, LLC will serve on the Individual & Self-Employed Tax Technical Resource Panel.
ed Member.
one year.
John Shank, a member of the ASCPA Board of Directors and founding member of BMSS Advisors & CPAs, LLC will continue to serve on the AICPA Council as an ElectAs the 2019-2020 ASCPA Chair, Dennis E. Sherrin, managing shareholder at Hartmann, Blackmon, & Kilgore, PC will serve as the Designated AICPA Council Representative for
M. Chad Singletary, partner at Carr, Riggs & Ingram, CPAs and Advisors (CRI), member of CRI’s Accounting and Audit Quality Control and Continuing Education committees and member of the National Association of State Board of Accountancy 16
ASCPA Connections
(NASBA) Audit Committee will serve on the Attestation Standards Task Force. Tommie W. Singleton, ASCPA CPE leader, the “Fraud Doctor,” and Partner & Director of Consulting Services at Carr, Riggs & Ingram CPAs and Advisors, will serve on the Certified Information Technology Professional (CITP) Champion Program, CITP Credential Committee and Information Management and Technology Assurance (IMTA) Cybersecurity Task Force. Jason A. Westbrook, Shareholder at Aldridge Borden & Company, will serve on the Joint Trial Board.
Zach Clifton (Birmingham) has been promoted to manager. Auston Sullivan (Birmingham) and Jayme Lambert (Birmingham) have been promoted to supervisor. In addition, Chance Cassidy (Gadsden), Jacob Bradshaw (Birmingham), Kelsey Dalton (Huntsville), Marlah Stancil (Birmingham), Stephanie Jensen (Birmingham), Sylvia Turner (Birmingham) and Zak Kimes (Birmingham) have been promoted to senior accountant.
The AICPA is now accepting applications for the 2020-2021 volunteer year! The application window will close on October 1, 2019. For more information, check out https://volunteers.aicpa.org or contact Jeannine Birmingham. Sam Allison with Lighthouse CPA, LLC in Vestavia, has been named Controller on the Executive Leadership Team for the Presbyterian Home for Children. From 2013 through 2017, Allison was Director of Accounting and Finance for Alabama Baptist Children’s Homes & Family Ministries after his service as both their auditor and then on their Board of Directors. Since founding Lighthouse CPA, Allison has served as the outsourced CFO/Controller for ten different companies and ministries. BMSS, LLC is proud to announce several promotions in their offices across the state. Fawn Smith (Huntsville) Jaclyn Collins (Birmingham) Jenny Gray (Birmingham) Joyce Rinaldi (Huntsville) Kate Fluker (Birmingham) and Nick D’Alessandro (Birmingham) have been promoted to senior manager.
The shareholders of Bern, Butler, Capilouto & Massey, P.C. have announced that Jamie M. Hill, CPA and Jim R. Crumpton, CPA have been named principals with the firm. Hill is a graduate of Troy State University at Montgomery and has fourteen years of experience in public accounting. He services business and individual clients in the tax, auditing, and accounting areas. His specialties are in the construction industry and the estate and trust area. Hill is also a member of the AICPA. Crumpton is a graduate of Auburn University at Montgomery. He has twelve years of public accounting experience providing services in the auditing, accounting, and tax area for individuals, businesses, and other organizations. Crumpton specializes in the audits of small businesses and nonprofit organizations. He is also a member of the AICPA and serves on the Board of Directors of the Easterseals Central Alabama.
Collegiate Housing Foundation is pleased to announce that Brian Blakeney has joined its staff as Chief Financial Officer. As a certified public accountant with Wilkins Miller for the past 23 years, Brian has broad experience working with municipalities, colleges and universities, non-profit organizations, retail businesses, residential and commercial construction companies and real estate developers. Brian earned a bachelor’s degree of science in business administration with a concentration in finance from Auburn University and is also a member of the AICPA. Dent Moses LLP is pleased to announce that Jonathan Averette, CPA has joined the firm as a senior accountant. Averette brings experience and specialized knowledge in the construction and real estate industries as well as multistate tax regulation. As a senior accountant at Dent Moses, he will focus on tax services. Grant, Sanders and Taylor, P.C., recently named Chad E. Lipscomb as a shareholder. Lipscomb earned his Bachelor of Business Administration in Accounting degree from the University of South Alabama and has been a CPA since 2002. Lipscomb has extensive experience in diverse tax, financial, and business consulting that he gained through staff, senior and management roles during his 20 years of employment with the firm. His primary focus is on income tax related services for individuals, corporations, partnerships, nonprofit organizations, and common interest realty associations. He is also a member of the AICPA. Horne LLP. announced the election Jason Saulters, CPA, CGMA to Horne’s Board of Directors. Saulters was also elected to serve as the secretary/treasurer of the board, is the partner in charge of franchise services for the firm. He specializes in helping clients grow their businesses through financial outsourcing, tax
strategy and consulting. Since joining the firm in 2005, Saulters has remained driven and devoted to serving franchise clients. He earned his Bachelor of Science in Business Administration with a major in accounting from the University of South Alabama. Jackson Thornton is pleased to announce two recent recognitions of team members based in the firm’s Dothan office and several recent promotions. Daniel Tew, Senior Manager and CPA was selected as one of the Top 40 Under 40 in Commercial Construction by the Alabama Associated General Contractors (AGC) and Business Alabama Magazine for demonstrating a high level of leadership, professional excellence and commitment to the construction industry. Jay Newsome, Senior Manager and CPA, recently graduated from the Alabama Banking School, a two-year program. Sponsored by the Alabama Bankers Association, the school is administered by a 26-member faculty comprised of bankers and industry professionals. During the final session, students form teams and participate in a bank simulation program called BankExec. Newsome’s team won first place in the simulation. “We’re proud of both Daniel and Jay,” said, Ned Sheffield, President and Managing Principal of Jackson Thornton. It’s very gratifying when two of our rising stars are recognized by the industries in which they specialize.” Newsome was also recently promoted to Senior Manager. Newsome joined the firm in 2017 and specializes in the financial institution audit and assurance work. He is a member of the Dothan Area Young Professionals, has served as Treasurer, Vice-President, and President of the Southeast Chapter of the ASCPA, and is a graduate of the Alabama Bankers Association Banking School. Newsome received his undergraduate degree and his MBA from Troy University. Erica Bailey, CPA, CFE was promoted to Senior Manager. Bailey, who joined the firm in 2012, specializes in audit and assurance work in the
utilities industry. She is a member of the Montgomery Chapter Advisory Council for the ASCPA and the Junior League of Montgomery. Bailey is also a graduate of Leadership Montgomery’s Torchbearers program and the ASCPA’s Leadership Academy. She received her undergraduate degree and her MBA from Troy University. Jackson Thornton also promoted Michael Bird, CPA; Austin Gaines, CPA; Lindsey Goddard, Enrolled Agent; and Jake Studdard, CPA to Manager. JamisonMoneyFarmer PC is pleased to announce the following promotions: Rachel Aaron, CPA has been promoted to manager. Rachel Aaron began full time at JMF in 2010 as a staff accountant in tax and accounting. Rachel worked as an intern for JMF during the 2009 tax season. She is a graduate of the Alabama Society of CPAs Leadership Academy. She is the former treasurer for the Good Samaritan Clinic and an avid volunteer for Junior Achievement and Operation Christmas Child and for the United Way of West Alabama. Rachel has a Bachelor of Science in Commerce and Business Administration and a master’s degree in accounting from the University of Alabama. Rachel, formerly Rachel Pruden of Dora, is married to Mark Aaron and has two children. Reed Lightsey, CPA has been promoted to manager. Reed began full time at JMF in 2011 as a staff accountant in tax, accounting and audit. He worked as an intern for JMF during the 2009 and 2010 tax seasons. Reed has a Bachelor of Science in Commerce and Business Administration from the University of Alabama and a master’s degree in accounting from the University of Mississippi. He serves on the Board of Tuscaloosa’s One Place. Reed is a Tuscaloosa native, and is married to the former Lindsey McCracken. Kimberly Miesse, CPA has been promoted to manager. Kim also began full time at JMF in 2011 as a staff accountant in tax, accounting and audit. She worked as an intern for JMF during the 2010 September/October
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MEMBER NEWS tax season. She graduated magna cum laude and has a master’s degree in accounting from the University of Alabama. She is a member of the Accounting & Financial Women’s Alliance. Formerly Kimberly Christian of Tuscaloosa, she is married to Shane Miesse, and the couple has one son. Morgan Akins, CPA has been promoted to supervisor. Morgan began full time at JMF in 2014 as a staff accountant in tax and accounting. She worked as an intern for JMF during the 2013 and 2014 tax seasons. She graduated with a Bachelor of Science in Commerce and Business Administration in Accounting and has a master’s degree in accounting from the University of Alabama. She is the treasurer of Arc of Tuscaloosa and is on the board of the Tuscaloosa Alpha Gamma Delta Alumnae Club. Morgan is originally from Tuscaloosa. Quinn Roe, CPA has been promoted to supervisor. Quinn began full time at JMF in 2014 as a staff accountant in tax. He worked as an intern for JMF during the 2013 and 2014 tax seasons. He graduated with a Bachelor of Science in Commerce and Business Administration in Accounting and Marketing and has a master’s degree in accounting from the University of Alabama. He is a the president of the Board of the Good Samaritan Clinic, is president of the Tuscaloosa Exchange Club, is a board member of the Exchange Club Foundation, treasurer of the Tuscaloosa Republican Executive Committee, and is vice president of the Tuscaloosa Estate Planning Council. Quinn is originally from Leesburg, GA. Landon Shelby, CPA has been promoted to supervisor. Landon began full time at JMF in 2014 as a staff accountant in tax, audit and accounting. He worked as an intern for JMF during the 2014 tax season. Prior to joining JMF, Landon held several finance positions at Tuscaloosa privately-held companies with his last as Controller of Dixie Mechanical, Inc. He graduated with a Bachelor of Science in Accounting from the University of Alabama. He is the treasurer of the Tuscaloosa Public Library Foundation. Landon is originally from Northport. He has two daughters, Charlee Grace and Channing. 18
ASCPA Connections
Matt Shirley, CPA has been promoted to supervisor. Matt began full time at JMF in 2014 as a staff accountant in tax and accounting. He worked as an intern for JMF during the 2012 and 2013 tax seasons. He graduated magna cum laude with a Bachelor of Science in Commerce and Business Administration in Accounting and has a master’s degree in accounting from the University of Alabama. He is originally from Fayette. Thomas Hahn, CPA, has been promoted to senior accountant. Thomas began full time at JMF in November 2017, after interning with the firm during the tax seasons of 2016 and 2017. Thomas has a Bachelor of Science in Commerce and Business Administration and a master’s degree in accounting from the University of Alabama. Thomas is originally from Tuscaloosa. Brad Hicks has been promoted to senior accountant. Brad began full time at JMF in November 2017 after 13 years in the timber industry and is a member of our Timber Practice Group. Brad has a Bachelor of Science in Commerce and Business Administration from the University of Alabama. Brad is originally from Centreville. Savannah Hornsby, CPA, has been promoted to senior accountant. Savannah began full time at JMF in 2016, after interning with the firm in 2015. Savannah serves as Vice President on the Board of the West Alabama Chapter of Accounting and Financial Women’s Alliance. Savannah has a Bachelor of Science in Commerce and Business Administration and a master’s degree in accounting from the University of Alabama. Savannah, formerly Savannah Hunt of Tuscaloosa, is married to Tucker Hornsby. Caitlyn Woods, CPA, has been promoted to senior accountant. Caitlyn began full time at JMF in 2016, after interning with the firm in 2015. Caitlyn is a member of the Accounting and Financial Women’s
Alliance. Caitlyn has a Bachelor of Science in Commerce and Business Administration and a master’s degree in accounting from the University of Alabama. Caitlyn is from Tuscaloosa. Leadership Hoover has appointed Diana Knight, partner and CEO of Sovereign CPA Group, to its board of directors for a three-year term. Leadership Hoover began in 2017 as an initiative to help those who work, live, or have other interests in the city of Hoover. Nominated class members learn about different aspects of Hoover, from small business awareness to education to nonprofits to local government and other topics. McDaniel & Associates is proud to announce Gunter Price and Sean Ingram as new partners effective July 1, 2019. Gunter joined McDaniel & Associates in 2005. In addition to being a CPA, he is a Certified Valuation Analyst (CVA) and Certified Exit Planning Advisor (CEPA). Gunter leads the firm’s Business Valuation department which provides certified business appraisals tailored to the specific needs and circumstances of their clients. He has performed valuations for many different purposes including mergers and acquisitions, succession planning, buy-sell agreements, and estate and gift tax planning. Gunter received his Bachelor of Science in Business Administration from Auburn University. He is married to Kari Beth Price and they have three children. He is a member of Ridgecrest Baptist Church and serves on the boards of the Southeast Child Advocacy Center and Tri-State Community Choir. Sean is a CPA and Personal Financial Specialist (PFS) who joined McDaniel & Associates in 2003. Prior to joining McDaniel, he worked at a regional brokerage firm for six years. Sean focuses on estate and family wealth planning, small and family businesses, trusts, and high- income tax planning. Sean is a former treasurer of the Dothan Ro-
tary Club, a former President of the Southeast Chapter of the Institute of Management Accountants, a member of the American Institute of Public Accountants, and is the current vice president of the Alabama-Florida Council of the Boy Scouts of America. Sean graduated with a Bachelor of Science degree from Auburn University College of Engineering and a Master of Business Administration (with an accounting emphasis) from Troy University. He and his wife, Amy, have two children. The Partners of Russell Thompson Butler & Houston are delighted to announce that Micah Pointer will be serving their firm as the newest Supervisor. He will continue to help grow and serve valuable clients. Micah is a 2014 graduate of the University of South Alabama and holds a Bachelor of Science in Business Administration with a concentration in accounting. He completed studies for his public accountant certification in the summer of 2016. Micah works with a variety of clients ranging from small to mid-sized businesses and individuals on their tax planning and preparation needs. His responsibilities also include the preparation of the firm’s fiduciary tax returns, which includes estate, trust and gift tax returns. Kayli Pharr and Christian Day were also promoted to Senior Accountant at Russell Thompson Butler & Houston. Kayli attended the University of Alabama where she received a Bachelor of Science in Business Administration with a specialization in Professional Accounting. She then went on to receive her Masters in Business Administration from Troy University. Christian is a 2016 graduate of the University of South Alabama where he received his Bachelor of Science in Accounting. Joshua B. Shaw, CPA, CGMA has recently been elected shareholder of T.E. Lott & Company. He has practiced public accounting for 14 years, all of which have been
with T.E. Lott & Company. His professional experience also includes time spent in private accounting. In the Tuscaloosa community, he has been a member of the Home Builders Association, Chamber of Commerce, and Business Network International, serving in various leadership roles at times. He is also a member of the AICPA and ASCPA. Josh is a native of Tuscaloosa. He received his Bachelor of Accounting from Jacksonville State University. He and his wife, Whitney, raise two children, Kaylee and Bennett. He and his family are active members of Church of the Highlands in Tuscaloosa.
WHAT’S HAPPENING OUT THERE BMSS, CPAs and Advisors was recently named as one of the 2019 Accounting Today’s Best Accounting Firms to Work for. Accounting Today has partnered with Best Companies Group to identify companies that have excelled in creating quality workplaces for employees. This survey and awards program are designed to identify, recognize and honor the best employers in the accounting profession, benefiting its economy, workforce and businesses. The list is made up of 100 firms. “BMSS’ most valuable asset is our employees,” said BMSS Managing Member Don Murphy. “We strive to make our workplace one that people will be pleased to invest their career.” Firms from across the United States entered the two-part survey process to determine Accounting Today’s Best Accounting Firms to Work for. The first part consisted of evaluating each nominated company’s workplace policies, practices, philosophy, systems and demographics. This part of the process was worth approximately 25% of the total evaluation. The second part consisted of an employee survey to measure the employee experience. This part of the process was worth approximately 75% of the total evaluation. The combined scores determined the top firms and the final ranking. Best Companies Group managed the overall registration and survey process, analyzed the data and determined the final ranking.
Kassouf & Co. has been recognized by INSIDE Public Accounting (IPA) as a Best of the Best Firm and a Top 300 Firm for 2019 and
as one of the 2019 Accounting Today’s Best Accounting Firms to Work for. “Being named a ‘Best Accounting Firm to Work for’ by the national publication, Accounting Today is a great tribute to our Kassouf Team,” said Kassouf & Co. Director Gerard J. Kassouf. “We take pride in our team members and we are interested in all facets of their career, promoting a workplace filled with opportunity, encouragement, and engagement.” Kassouf also noted, “Our vision is to maintain service teams with specific industry and service lines. Kassouf & Co. provides sound business and personal advice to our clients, developing long-term relationships as advisors. Being named a ‘Best of the Best’ and a ‘Top 300’ firm is a tribute to our team of professionals and their desire to see our clients succeed.” IPA releases annual rankings of the 400 largest accounting firms in the United States, based on U.S. net revenue. In its most recent survey, the top 300 firms for 2019 range in size from $11.4 million (300) to $19.4 million (201), with Kassouf & Co. ranked at number 227.
Machen McChesney was recently named as one of the 2019 Accounting Today’s Best Accounting Firms to Work for. Marty Williams, the firm’s managing partner, was delighted with the news. “We are proud and honored to receive this award that recognizes the value and complexity of creating an environment where each team member feels valued and is provided resources and encouragement to succeed in their career. We appreciate being recognized alongside some of the best firms in the nation and we thank Accounting Today for their hard work developing and presenting the award.” Machen McChesney’s unique ability to consistently Return Value to their clients, professionals, and community continues to be recognized. The firm has been recently recognized for other accolades including; Business Alabama – ‘Alabama’s Largest Accounting Firms”, Inside Public Accounting – “IPA Top 400 Firms”, and Opelika-Auburn News – “Readers’ Choice Awards.” “Being recognized with these three independent rankings is humbling and very much appreciated,” Williams said. In addition, Machen McChesney is celebrating 65 years of service. September/October
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MEMBER NEWS Wilkins Miller, an accounting and advisory firm with offices in Mobile and Fairhope, has been named one of the 2019 “Best Companies to work for in Alabama” by Business Alabama and the Best Companies Group. The Firm earned third place for best companies in Alabama and the top accounting firm in the small-to-medium company category.
Wilkins Miller was formally recognized and honored in the August edition of Business Alabama magazine. “To be named a best company in Alabama for the fifth time is a testament to our people and the culture our team creates each day,” Wilkins Miller Managing Partner Allen Carroll said. “We genuinely care about the environment we provide for our team and
believe that results in great service to our clients.” “It’s an honor for our team to be recognized among so many outstanding companies again this year,” Wilkins Miller Partner Erin Jones said. “Having an engaged team with a commitment to serving our clients, each other and the community is truly what makes our organization great.”
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ASCPA Connections
MARK YOUR CALENDAR September September 5
1:00PM – 5:00PM
East Alabama Chapter CPE on Artificial Intelligence 4 Hours of Other CPE Auburn Chamber of Commerce, Auburn
September 13
9:00AM – 3:00PM
Diversity & Inclusion Student Conference Wynlakes Country Club, Montgomery
September 18
8:00AM – 5:00PM
Mobile Chapter Tax Update with Bill Taylor 8 Hours of Tax CPE Mobile Marriott, Mobile
September 19
4:30PM – 6:30PM
September 24 11:30AM-1PM
Tuscaloosa Chapter Luncheon- Joe Espy Levee Bar & Grill, Tuscaloosa
September 27 Accounting Interview Day Wynlakes Country Club, Montgomery
September 27 Business Clothing Drive at Financial Accounting & Auditing Conference
Auburn University Montgomery, Montgomery
October October 10
NOVEMBER November 1
8:00AM – 12:00PM
Birmingham Chapter State and Local Tax Update with Bruce Ely Harbert Center, Birmingham
November 5
11:30AM – 1:00PM
East Alabama Chapter Luncheon
Saugahatchee Country Club, Opelika
November 7
5:30PM – 7:30PM
Eastern Shore Professionals Night
11:00AM – 1:00PM
Fairhope Brewing Company Taproom, Fairhope
Mission House, Montgomery
November 12
Montgomery Chapter Tailgate
11:30AM – 1:00PM
5:00PM – 7:00PM
Tuscaloosa Chapter Luncheon with Mayor Walt Maddox
Boiler Room, Florence
The Levee Bar and Grill, Northport
September 20
October 22
November 14
Birmingham Chapter A&A Update - Bruce Nunnally 8 Hours of A&A CPE
Northeast Alabama Chapter Social
Mobile Professionals Night
Birmingham Chapter Bankers & Attorneys Social Topgolf, Birmingham
8:00AM – 5:00PM
Harbert Center, Birmingham
October 17
North Alabama Chapter Social
5:30PM – 7:30PM
5:30PM – 7:30PM
Cedar Street Social Club
The Train Depot, Jacksonville
October 24
4:30PM – 6:30PM
East Alabama Bankers & Attorneys Social Collegiate Hotel, Auburn
more information about these and other upcoming chapter and student events will be sent out via email and on www.ascpa.org.
September/October
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BMSS Team Teaches Accounting to Rwandan Students Through Bridge2Rwanda Organization
BMSS, LLC sent Managing Partner Don Murphy along with four CPAs from its management group to Kigali, Rwanda for 10 days in July to help launch a business analyst and manager training program with Bridge2Rwanda.
Personal Finance and Financial Statement Analysis. Although most of the BMSS family was unable to be in Rwanda in person, many contributed funds to purchase educational resources for the library program in a neighboring village.
Bridge2Rwanda (B2R) is a nonprofit organization founded in 2007 in order to create opportunities for Rwandan student to obtain a global education and to attract foreign direct investors to help accelerate Rwanda’s economic growth. BMSS originally connected with B2R through Dale Dawson, the founder.
Fluker was responsible for scheduling and leading the trip to Rwanda. “Spending time with the analysts and other members of the B2R team was such a privilege,” she said. “I learned so much about the Rwandan culture and their personal stories. These individuals are truly remarkable and are headed for great things. I am so thankful that I was able to be a small part of their journey.”
Senior Manager Kate Fluker, Senior Manager Nick D’Alessandro, Manager Margi Patel, Supervisor Jennifer Mayfield and Murphy spent their time leading accounting and business training for the B2R Analyst Program and meeting with B2R students. The training was broken down into lessons on QuickBooks, Leadership, Steps to Starting a Business,
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ASCPA Connections
BMSS looks forward to more opportunities to partner alongside B2R in the future. To learn more about B2R visit https://www.bridge2rwanda.org/
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Donating to Educational Foundation Revised.pdf 1 8/14/2019 8:22:19 AM
WelcomeMS.indd 1
8/29/2019 10:33:20 AM
Donating to the
Educational foundation
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Donate to the Educational Foundation with a recurring donation through the ASCPA’s website and automatically support a student in the accounting pipeline.
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September/October
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Tom Zoebelein & Clara Benitez on Tax IDEAS FROM THE 2019 TAX FILING SEASON HELPFUL FOR 2019 YEAR-END PLANNING The 2019 Tax Filing Season was extra stressful due to implementing the TCJA changes. The 20% qualified business income (QBI) deduction and its specified service trade or business (SSTB) exclusion added complications. How many times before do you remember having final regulations issued, only to have another set of final regulations issued a few months later? In early January we had the §199A Final Regulations, shortly followed by what I affectionately call the “Final-Final Regulations.” Below are my observations from the 2019 Tax Filing Season that may assist in year-end planning and beyond.
fore SSTB exempt. We see this with the specialized pharmacies compounding cancer drugs. QBI Aggregation •
Aggregation to maximize the 20% qualified business deduction. Do not forget to consider aggregation of your client’s business interests when computing the QBI deduction and limitations. This can be very important, as it combines the W-2 wages and UBIA of all the aggregated businesses. This can allow income which would otherwise be excluded because of, for example, the business’s lack of W-2 wages, to be included in the QBI calculations with those that have W-2 wages.
•
The criteria for aggregation of trades or businesses are 50% common ownership and meeting two out of the three requirements below (50% ownership includes attribution under §267(b) and §707(b)).
“SSTB or not SSTB?” that is the Question •
•
If you have clients that have a mixture of SSTB and nonSSTB activities, it is important to keep separate books for each line of business. The more separation the better, as the Final-Final Regulations’ examples show us. For instance, consider using separate invoices for each line of business to more easily identify and separate their income. Supporting facilities for SSTBs are problematic for owners with a 50% or more interest (§267(b) and §707(b) attribution rules apply). This is especially an issue with clients in the medical field. The key, according to the Final-Final Regulations, appears to be the level of contact between patients and the facilities’ staff. SSTB exceptions listed in the two sets of Final Regulations are as follows: o Surgery centers that contract out the supporting staff, including nursing, appear to avoid being considered an SSTB support facility (see the example in the Regulations). o Unrelated third parties who own less than a 50% interest may escape the SSTB taint. Do not forget the §267(b) and §707(b) attribution rules apply. o Labs and diagnostic centers which are staffed with non-physicians may escape SSTB taint. However, for these facilities, the patient contact requirement was removed; thus, expanding the SSTB taint under the Final-Final Regulations. Technicians originally thought to be excluded are included under these Regulations. Labs analyzing samples are only excluded if they merely report their findings and make no recommendations or diagnoses. o Pharmacies, because they are a mix of retail and a medical, are exempted from SSTB treatment. A pharmacist working in a hospital is not exempt, however, because they may use their knowledge of pharmacology to assist the physician. o Compounding Pharmacies are treated more as a manufacturer than a service provider and are there-
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ASCPA Connections
o Providing similar products or services (e.g. a restaurant and a food truck business) o The businesses share facilities or common business elements (e.g. management, accounting, banking, purchasing, manufacturing, IT, or personnel) o The businesses are operated in tandem or reliant on other members of the aggregation. •
Remember, you essentially have one shot at making this aggregation decision. Once businesses have been aggregated for QBI purposes, a material change in economic circumstances is required to disaggregate them.
Good Options for Small Businesses Under $25 Million Average Gross Revenue It should be noted that making the elections below requires filling Form 3115 and, with the exception the of election out of percentage of completion, will result in what should be a §481(a) adjustment. •
Electing cash method of accounting. We all know the advantages and disadvantages of this election, so I will not get into its details.
•
Electing out of §263A. This annoying exercise came in with the 1986 Tax Act to be a one-time revenue-raiser to balance the Act. It is often referred to as “super-full absorption,” as it capitalized inventory costs beyond GAAP.
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Electing out of §471 Inventory. Clients required to record inventory have two options if they choose to elect out of the required tax treatment for inventory: (1) electing to treat inventory as non-incidental supplies, or (2) electing to follow the inventory treatment in their financial statements. If you will recall, when the IRS introduced the §263(a) Repair Regs, supplies were classified as either incidental or non-inci-
dental. Incidental were expensed when acquired, while non-incidental supplies were required to be capitalized and expensed when used or consumed. If the business has a minimum capitalization policy, it also will apply to non-incidental supplies. Electing out of the inventory regulations will also apply the business’s minimum capitalization policy. Thus, a retail client with, for example, a modest $500 minimum capitalization policy, can expense each item in their retail inventory under $500. (Note: the financial statement reporting would also need to write off that inventory.) The second option is to follow the financial statements. This election, if made, will allow the taxpayer to deduct previously disallow book inventory valuation reserves. If a taxpayer chooses to make both elections, that may make inventory reporting IRS audit-proof. •
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The lower corporate rates may make converting to a Sub S entity more attractive because the built-in gain tax effective rate is reduced.
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The $500,000 loss limitation applies only to 2018 and forward losses. All prior year losses are grandfathered. The $500,000 limitation only applies in the year the loss is created, as it becomes an NOL limited to 80% of operating income in the succeeding year(s). Keep this in mind in your planning.
A Few Non-TCJA Items I Think are Important. •
Electing out of the partnership audit rules. I know I sound like a broken record, so I promise this will be the last time I say this. Think about correcting your LLC structure to enable election out of the partnership audit rules.
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§1341 is what old timers like me referred to as a “claim of right.” This section is important every time tax rates decrease. §1341 allows our clients who recognized income at a higher tax rate and repaid it when rates are lower to get a federal tax credit for the rate difference. In Alabama, these clients are allowed a state itemized deduction for the income repaid. I have used this tool to assist physician clients that had to repay previously taxed income due to billing issue settlements.
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Watch your Sub S clients for inadvertent S-election revocations. I have seen that arise in two sales of S corporations because of the buyers’ due diligence. In both cases, the buyer wanted the Sub S to file for a private letter ruling, which carries a $35,000 user fee to the IRS, not to mention the legal fees to prepare. In one large sale, it cost the selling shareholders extra tax because they were forced to take on an asset sale. Watch out for these potential revocations:
Electing out of percentage of completion to completed contract for tax purposes.
Opportunity Funds •
2019 is the last year to get the full seven-year deferral for reporting the gain and the full 15% reduction of the gain to be reported. Clients must move quickly to take advantage of this tax-planning strategy.
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Firms are starting to market qualifying opportunity zone funds with pretty good, diverse mixes of properties within the fund. The prospectuses I have read look very similar to a REIT for the properties included in their offerings.
§163(j) Interest Limitation •
Other TCJA Observations
This only applied to those clients with over $25 million in average gross revenue. However, if a client who exceeded $25 million of revenue had investments in pass-through entities that had revenue under $25 million, they were still required to secure the necessary information from the smaller entities to compute their limitation. o The real estate and farming industries were given an option to elect out of the interest limitation by retroactively electing ADS for all their depreciable assets not already fully depreciated. The big surprise to me under the §163(j) Temporary Regulations is that this only applies to the entity over $25 million in revenue, and not any of the pass-through entities in which they are invested (non-controlling interests only). This is a departure from the rule above for these two groups. I contacted the regulation writers, and their explanation was that only the owners of the depreciable property can make that election. This makes sense to me, but I can see it being abused, so it may be changed in the §163(j) Final Regulations.
o Non-qualified shareholders, such as trusts who failed to make elections as qualified trusts. o LLC electing S status who did not change the operating agreement. Boiler plate language allowing special allocations is a killer. This one can be very costly! At a minimum, please advise your clients to go back and mark through the violating language and initial and date the change. o Disproportionate distributions. I commonly see where there has been estate planning to transfer S corporation shares to trusts. The problem arises if “daddy” is getting distributions, but the trusts are not. This failure to make proportionate distributions creates a second class of stock, which revokes the S-election.
We hope you found this helpful in planning for 2019 and beyond.
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Corporations, communities, and careerists can all do better by doing good. BY CAROLYN TANG KMET As technology continues to break down geographic and demographic barriers, greater insight into the plight of others has spawned a collective heightened sense of social awareness. So, it should come with little surprise that emerging generations of workers exhibit a deep desire for doing good, and this philosophy is now permeating the corporate realm. Many of today’s organizations must now focus on a triple bottom line, where stakeholder value is measured not only by profitability but also by social and environmental impact — but what does that mean for the future of business and the people driving it? “The world has become a smaller place,” says Sylvia Panek, AIF, an investment advisor and financial planner with Natural Investments, a nationwide advisory firm specializing in socially responsible, impact-driven investing. She credits our digital information age with fundamentally shifting the public consciousness. “As workers and as consumers, people today more closely feel how exploitative traditional corporate practices can be. Subsequently, they are pushing back and holding corporations to higher standards,” Panek says. “A company does not exist in an isolated bubble and cannot operate as if investors are the only group that matters anymore.” To say today’s employees actively seek out socially responsible companies might even be an understatement. According to a 2016 Cone Communications study, 76 percent of millennials consider a company’s social and environmental commitment when deciding where to work, 75 percent would take a pay cut to work for a socially responsible company, and 64 percent won’t take a job if a potential employer doesn’t have strong corporate social responsibility practices. One could argue those percentages are likely higher
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today given how our society has become ever more sensitive to wide-ranging social, political, and environmental issues. And, in fact, a more recent 2017 Cone Communications survey found that 84 percent of consumers want companies to support women’s rights and 87 percent would buy a product because a company stood up for an issue they cared about. From a corporate point of view, that means organizations that incorporate making a positive social impact into their missions should have an easier time attracting and retaining employees and customers. “Everyone wants to be a part of something great. It’s not just about going to work — young people are looking to make an impact,” says Houston-based community engagement professional Courtney Taylor, MBA. For Taylor, making a positive social impact, both personally and professionally, is a philosophy instilled from an early age. As a child, she recalls going door-to-door with her grandfather one hot Houston summer day, delivering fans to people who didn’t have air conditioning. “I never forgot that day because it showed me how everyone is not as fortunate. It showed me the responsibility we have to help each other, and it showed me love,” Taylor says. Today, Taylor incorporates her love for helping others into her everyday job through developing partnerships with community organizations, developing volunteer opportunities, and securing program funding. “I feel that we have a responsibility to lift each other up,” Taylor says. “It put a fire in me to start creating some additional projects around philanthropy and to be involved in systemic change. Whether the cause is for at-risk youth, breast cancer, hunger, social justice, I am there.”
Her desire and effort to link a career with a cause is not entirely unique; rather, it is what more and more millennials and Gen Zers are aiming to achieve. In light of that, Taylor suggests companies that provide opportunities for volunteer work and actively design programming around driving social change will see positive outcomes.
At the time of writing, Benefit Chicago had raised $96 million toward its $100 million goal and has issued over $25 million in loans. “A lot of times, we’re underwriting the financial aspect, which is important, but we’re also underwriting the hearts and minds of the leadership and the mission,” Dr. Towns says.
To cite Seth Green, founding director of Loyola University Chicago’s Baumhart Center: “True empathy and a service orientation toward others makes us better thinkers, happier people, and more satisfied with our lives.”
Social Venture Partners (SVP) is another entity striving for social change in Chicago using conscious capital and more. The organization is comprised of investors, entrepreneurs, business professionals, attorneys, educators, and philanthropists who invest time, money, and expertise in Chicagoland nonprofits.
In Taylor’s interpretation, the morale boost can “lead to increased productivity, which will help the overall bottom line of an organization. It’s a win for the employee, the company, and the community.”
“Our founding partners believed that the route to greater social impact is to leverage philanthropic dollars with contributions of time, talent, and connections to help innovative nonprofits scale their work,” explains Evelyn Kuo Fitzgerald, SVP’s executive director.
CONSCIOUS CAPITAL “The question of how we build a more equitable society is the most urgent and important question of our time,” according to Green, who says that making a social impact is good for the mind, heart, and soul — and business. After all, not only are socially responsible companies more attractive to potential employees, they are also increasingly more attractive to prospective investors.
YOUR IMPACT It’s important to remember that it’s not just big corporations and investors that have the power to drive social change and make a social impact. While the deep desire for doing good that emerging generations of workers exhibit may be inspiring corporate reactions, it still takes individuals committed to causes to make real, lasting social impacts.
“Doing good in business was once ‘nice.’ Today, it is a ‘must’ for any company that wants to attract top talent, investment, and operational partners,” Green says. “Many investors now measure the triple bottom line, or environmental and social impact alongside financial performance.” And, in fact, many investors now strive almost solely to affect social change.
Taylor urges young professionals who want to make a difference to get out there and just do it. “Figure out what you are passionate about,” she says. “Many nonprofits and community organizations have created young professional groups that offer opportunities for networking, community service, and social gatherings with likeminded individuals.”
Benefit Chicago — a collaboration between The Chicago Community Trust, the John D. and Catherine T. MacArthur Foundation, and Calvert Impact Capital — came to be partly because investors today are less willing to accept social inequities and are instead looking for opportunities to take an active role in society. The organization serves as a conduit between investors looking to make a positive social impact and promising businesses and organizations in underserved neighborhoods that need access to capital.
Fitzgerald’s advice for those yearning to make a positive social impact through their life’s work is to participate in engaged philanthropy and to maximize impact by contributing not only dollars but also intellectual and social capital. “Consider joining a group or nonprofit board where you can roll up your sleeves and engage in skills-based volunteering that takes advantage of the expertise that you bring to the table,” Fitzgerald says.
Benefit Chicago evaluates potential opportunities in much the same way as any traditional investment, looking for evidence of strong leadership, solid organizational structure, a thorough business plan, and a proven market. “Where we differ is that we’re willing to work with organizations that may have a little more risk than what you would typically see but also still have a real passion and idea,” says William W. Towns, Ph.D., MBA, Benefit Chicago’s executive director. “There are certain areas of Chicago that, for a number of reasons, don’t receive capital. You can see the disparities in the city. But if we’re going to have a strong Chicago, we need strong South and West sides.” To illustrate, this past December, Benefit Chicago provided Chicago Community Loan Fund (CCLF) with a $5 million loan to aid in repurposing vacant Chicago Public School buildings on the South and West sides. The first redevelopment is the conversion of the former Overton School in the Bronzeville neighborhood, which will be transformed into a business incubator. “For local residents, a closed school signals distress and abandonment,” says Calvin Homes, CCLF’s president. “A revived and repurposed school is a beacon of hope for a neighborhood. It provides needed services and amenities, boosts traffic for nearby businesses, and encourages additional investment.”
No matter what your background is, everyone has something to offer, Dr. Towns adds. “If you’re an accountant, if you’re a marketing professional, or sales person, there are always opportunities to add a social impact lens to your work,” he says. “Think beyond the philanthropic and nonprofit space. For-profit organizations have contributed greatly to societal issues and improvement, whether it’s reducing their impact on the ozone or creating spaces for women in leadership.” Expanding on Dr. Towns’ advice, Green encourages young professionals to seek jobs where they can learn a lot, work for people they admire, and use their talents to authentically help others. “Very few people look back at their careers and celebrate their wealth accumulation; almost all judge their careers by the difference they make in others’ lives,” he says. “Like begets like,” Panek adds. She urges young careerists to surround themselves with like-minded business associates. “The goal,” she says, “is to truly build a better world, one that is bigger than each one of us individually, and it’s best done together.” Reprinted courtesy of INSIGHT, the magazine of the Illinois CPA Society. For the latest issue, visit www.icpas.org/insight.
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TELLING THE FIRM STORY
Carr, Riggs & Ingram, CPAs and Advisors FOUNDATION OF THE FIRM Carr, Riggs & Ingram, CPAs and Advisors (CRI) was founded in October 1997 by Bill Carr, Steve Riggs, and Phyllis Ingram. They united their practices in Enterprise, Fort Walton Beach, and Montgomery in response to consolidators in the accounting industry who were trying to dominate the market. They felt personally responsible for preserving and leveraging the horizontal public accounting firm versus the growing number of vertical firms. In 1998, CRI had 77 employees, 11 partners, and netted eight-million dollars in revenue. Twenty-one years later, Carr, Riggs & Ingram, CPAs and Advisors boasts more than 300 partners, 1,900 professionals, and approximately $305 million in revenue. Their progressive growth started with a merger with a firm in Panama City in 1998, another in Mississippi in 1999, and another in Tallahassee in 2000. In 2008, the accounting profession’s response to the economic crisis was another wave of consolidation. Carr, Riggs & Ingram stood their ground. They saw generous work opportunities arise as the Big 4 shed clients to large regional firms like CRI. Because the firm was branded well and known for its intentionality, the organization grew again in number. Since then, they’ve expanded their footprint as far west as New Mexico and east to North Carolina. Mr. Carr attests this growth to innovation, infrastructure, and the necessity of new services in response to the needs and opportunities from their clients. Today CRI incorporates data scientists in their scope of work, offers a single purpose bank to clients, and has expanded into a wealth management group with $3 billion assets under management. It’s clear that Mr. Carr and his partners are intentional and responsive. But, he claims, “We don’t see opportunities, but we seize opportunities when we do see them.” 28
ASCPA Connections
It’s also what spurred CRI’s need for their in-house IT and analytics program. They have developed and graduated over 300 IT professionals to support the expansive relationship between technology, data, and accounting. They have extended that innovative training by partnering with Enterprise State Community College to equip IT professionals with the skills that accounting firms need now and in the future. LEADERSHIP Carr, Riggs & Ingram develops and sustains leaders across their firm. Many of their leaders contribute to their state’s Societies, the American Institute of CPAs, and are encouraged to by way of the example of their three founders. Bill Carr, Steve Riggs, and Phyllis Ingram have a strong presence and actively contribute to the future of the accounting profession. Bill Carr is a man with vision — not only for CRI, but also for his clients and their businesses. With more than 40 years of accounting experience, Bill is one of the founders and serves as managing partner of CRI, as well as the chairman of CRI’s Executive Committee. Under Bill’s leadership, CRI has become a Top 20 CPA firm nationally and is recognized as one of the nation’s fastest-growing CPA firms. As a leader in the accounting industry, Bill is actively involved with the American Institute of Certified Public Accountants (AICPA) and the ASCPA. Steve Riggs believes in pairing cutting-edge technologies with tried and true business values. With more than 39 years of experience in the accounting profession, he uses this philosophy to deliver innovative accounting solutions designed to improve efficiencies and profitability for Destin clients — including homeowner association audit clients, employee benefit plan audit clients, and governmental audit clients. Steve also serves as partner-in-charge of the Destin office. Steve’s personal client work typically relates to litigation support and
court-appointed receiver work as he serves as both a consulting expert and testifying expert witness at trials involving financial matters. His work often focuses on economic damages – either performing calculations on behalf of plaintiffs or assessing calculations of other experts on behalf of defendants. Steve’s expertise spans across business fraud, antitrust, breach of contract, and estate, trust, and probate cases, as well as taxrelated IRS disputes. Steve is active in the accounting community with current roles, including service on the Florida Board of Accountancy. Additionally, Steve is a member of the AICPA, the Florida Institute of Certified Public Accountants (FICPA), and the ASCPA. Phyllis Ingram truly represents the heart of CRI. Her passion for excellence and dedication to exceeding client expectations is reflected in CRI’s core values of tailored client-service, respect for all, and unyielding integrity. With more than 30 years of experience, Phyllis provides accounting, auditing, and taxation services to insurance companies, captives, workers’ compensation self-insurance funds, closely held businesses, and nonprofit organizations throughout the United States. As a part of the firm’s insurance audit team, recognized throughout the nation for its knowledge of insurance industry issues, Phyllis participates in external audits and internal audits, as well as compliance and taxation services for insurance companies, captives, funds, and pools. She also offers accounting and taxation specialization in the nonprofit industry with expertise gathered from performing audits, accounting, and taxation services. Within the nonprofit sector, Phyllis specializes in audit and taxation services for trade associations. She has extensive experience in unrelated business income taxation (UBIT), exempt income, and excluded income for trade associations. Additionally, Phyllis currently serves the firm as the financial services industry line leader. She is also the partner-incharge of CRI’s Montgomery office and a board member for Trustmark National Bank, as well as several other nonprofit organizations. At the 100th Annual Meeting of the ASCPA, Phyllis was recognized with the E. Lamar Reeves Life Member Award for her contributions to the profession through the ASCPA. She served on the Management of Accounting Practice Committee and has served on the Audit Committee since 2012. She regularly supports her local chapter of the ASCPA, Montgomery, and has led CPE for the Society, too. “GREAT CLIENTS MAKE GREAT FIRMS.” The entrepreneurial and visionary spirit that birthed and sustained CRI has allowed them to expand and help create opportunities to be a top 20 nationally ranked CPA firm. Their “big firm” expertise in tax, accounting, audit, consulting, and advisory services is delivered locally from 62 offices to create 28 markets across 10 states. It is that same spirit that fuels their extensive consulting work. Mr. Carr says, “our clients’ needs marry the large knowledge base available thanks to our network of experts and individuals at Carr, Riggs & Ingram.”
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Meet Hannah Donovan Hannah Donovan came to the ASCPA by way of the ASCPA Educational Foundation and our partnership with Auburn University Montgomery’s School of Accountancy to provide internships for accounting students. She helped us navigate months leading up to our Centennial celebrations and prepare for this CPE season. Her willingness to jump in anywhere on our team impressed us, and we are so excited to see where her future as a CPA takes her. When did you decide you wanted to major in accounting? I wanted to go into a science or math-related field and decided to major in accounting going into college. I wasn’t entirely sure what I was signing myself up for but as I progressed further into it, I felt I had made the right decision. Tell us about your inspiration/motivation. Have you had a mentor who has encouraged you? My family and friends are always a great source of motivation and encouragement in my endeavors. I would say Zack Camerio and Jeannine Birmingham at the ASCPA have become mentors in my career. I really enjoyed learning more about the career opportunities the accounting profession offers while working for them! What have you gained from your time as an accounting student at Auburn University Montgomery (AUM)? I am beginning my senior year but reflecting so far, I am truly thankful for my experience here at AUM. Going to a smaller school has allowed me to get to know my classmates and professors closely. The School of Accountancy has a great program run by a close-knit group of professors and faculty that put students first and foremost.
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ASCPA Connections
What have you been up to since interning at the ASCPA? Did you make any connections that lead you to those opportunities? Since interning at the ASCPA this past spring I have started a new internship with the Alabama Department of Revenue. The way I came across the internship was through meeting the supervisor through the ASCPA. Coincidentally, I had a completed application on hand. It was perfect timing! I also visited a few firms through Summer Leadership Programs and took classes this summer. Do you plan to sit for the CPA exam? My goal is to graduate with my bachelor’s in May 2020, earn my master’s and complete my CPA exam by May 2021. After you pass the exam, what do you hope your career looks like? After earning my master’s degree and completing my CPA exam I plan to officially enter the profession working at a regional sized public accounting firm in Birmingham, AL. What advice do you have for fellow students or others interested in accounting? I did not become actively involved in the accounting club until my sophomore year. If I can give any piece of advice, I deeply encourage every accounting student, including students considering switching to accounting, to participate in their accounting club as early possible. The accounting club at AUM is the most active club on campus. The meetings and events provide opportunities to learn more about the profession, enhance workforce ready skills, find internships, and grow closer to your classmates and professors.
REMEMBERING
CLASSIFIEDS
TRUEL DWIGHT HICKS T. E. Lott & Company has a career opportunity for an accountant in its Tuscaloosa, Alabama office. The successful individual must possess a degree in accounting. The Tuscaloosa office also seeks CPAs with 5-6 years public accounting experience. Experience in both attest and tax. Experience with Access and Engagement software would be a plus. The firm offers competitive salary and benefit package, including bonus opportunities, as well as opportunity for advancement.
Qualified applicants can send resumes to Josh Shaw, 6834 Hwy 69 South Tuscaloosa, AL 35405 or info@telott.com.
SUCCESSFUL TRANSITIONS
require experienced, confidential, professional services you can trust. We specialize exclusively in the brokerage of accounting firms. List your firm with a professional. Call David Akins, CPA at 877-2770272. To learn more about our services and to see firms we have listed, go to our website at www. akinsprofessionalbrokerage.com.
WDNClassifed.indd 1
June 1, 1927 – July 5, 2019 Livingston, AL | Certificate 2589-R
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On Friday, July 5, 2019, Truel Dwight Hicks passed away at Jeff Anderson Regional Medical Center at the age of 92. He was born June 1, 1927, in Laurel, Mississippi. Mr. Hicks ditched school and joined the Marines in January of his senior year in high school. After serving in the Marines, he graduated from the University of Southern Mississippi and completed further studies at Tulane University and the University of Memphis. He also held a C.P.A. He began his business career employed by the California Company and the United States General Accounting Office. His career in education began at Troy University, teaching there for several years before joining the accounting faculty at the University of Memphis. In 1981, Mr. Hicks joined the faculty at the University of West Alabama, serving as Chair of the Department of Accounting and Finance. He was very active in the community, serving as a consultant to the Small Business Development Center and as a tax accountant. He also held various offices in the Rotary Club and was a Deacon at Livingston First Baptist Church. Mr. Hicks had a passion for accounting. He loved teaching his accounting majors at the University of West Alabama and serving the Sumter County community thru his CPA office above the post office in Livingston. He was known as a loving husband, father…and VERY proud grandfather. He was also known for being a snappy dresser and always having a smile on his face. He will be missed. In lieu of flowers, the family is requesting that memorials be made to the York Rotary Club Truel D. Hicks Accounting Scholarship Fund at the University of West Alabama, Attention: Lynda Harwell, Station 6, Livingston, Alabama 35470.
8/29/2019 10:52:42 AM
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ASCPA ACROSS ALABAMA
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1 ASCPA Crew at AICPA Interchange learning how to work hard for you; 2 Small Firms
Forum with Carl Peterson in Montgomery; 3 Mike Hogg at the inaugural Not-for-Profit Summit; 4 Member Jeremy Moreland
Leading at the Emerging Leaders Summit; 5 Mike Brand hosting the Small Firm Forum
in Huntsville with Carl Peterson; 6 Full house
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in Tuscaloosa for Lisa McKinney’s Tax Update; 7 Small Firms Forum in Mobile; 8 ASCPA Staff Meeting Brent & Kyle Pease at the Emerging Leaders Summit; 9 Jim Martin & the Wheeler Basin Chapter navigating 2019 A&A updates; 10 Young CPA Cabinet Members at the August Board of Directors meeting.
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GENERAL CPE SCHEDULE 109 Becoming an AICPA Peer Review Team or Review Captain: Case Study Application Thursday, September 12, 2019 Montgomery | Full | AA: 8 DIV Diversity & Inclusion Student Conference Friday, September 13, 2019 Montgomery | Full | 122 Federal Income Taxation of Estates and Trusts Update Monday, September 16, 2019 Montgomery | Full | TX: 8 110 GASB Update Tuesday, September 17, 2019 Huntsville | AM | AA: 4
Tuesday, September 17, 2019 Montgomery | Full | TX: 8
Wednesday, September 18, 2019 Huntsville | PM | TX: 4
119 Key Partnership and S Corporation Tax Planning Strategies Tuesday, September 17, 2019 Huntsville | PM | TX: 4
131 GASB Update Wednesday, September 18, 2019 Birmingham | PM | AA: 4
120 S Corporation Taxation: Advanced Issues Tuesday, September 17, 2019 Birmingham | PM | TX: 4 LS118 LIVE STREAM - Navigating the Tax Cuts and Jobs Act - Law and Planning Issues Tuesday, September 17, 2019 WEBCAST | Full | TX: 8
121 K2’s Excel Financial Reporting 111 Ethics and Professional Conduct: and Analysis Updates and Practical Applications Wednesday, September 18, 2019 Tuesday, September 17, 2019 Montgomery | Full | AA: 8 Birmingham | AM | Ethics: 4 123 A&A for Tax People Who Hate A&A 112 Controller’s Update: Today’s Wednesday, September 18, 2019 Latest Trends Huntsville | AM | AA: 4 Tuesday, September 17, 2019 124 Developing Your Digital Mindset Birmingham | AM | Finance: 4 Wednesday, September 18, 2019 113 Securing a Comfortable Birmingham | AM | MG: 4 Retirement in the Age of Spending 125 Select Estate and Life Planning Tuesday, September 17, 2019 Issues for the Middle-Income Client Huntsville | AM | TX: 4 Wednesday, September 18, 2019 114 IRS Tax Examinations and Hot Huntsville | AM | TX: 4 Issues 126 Compliance Testing for Single Tuesday, September 17, 2019 Audits Birmingham | AM | TX: 4 Wednesday, September 18, 2019 115 What You Need to Know About Birmingham | AM | AA: 4 the Changes to Yellow Book and an 127 Critical Issues Involving Update on Uniform Guidance Taxation of Construction Contractors Tuesday, September 17, 2019 Wednesday, September 18, 2019 Huntsville | PM | AA: 4 Birmingham | AM | TX: 4 116 Lean Accounting and 128 Change the Way You Work: Management: Saving Money by Success as a Virtual CFO Streamlining Operations Wednesday, September 18, 2019 Tuesday, September 17, 2019 Birmingham | PM | MG: 4 Birmingham | PM | Finance: 4 117 Financial Reporting for Not-forProfit Entities Tuesday, September 17, 2019 Birmingham | PM | AA: 4
129 2019 Compilation and Review Update for the Local Firm Wednesday, September 18, 2019 Huntsville | PM | AA: 4
118 Navigating the Tax Cuts and Jobs Act - Law and Planning Issues
130 Maximizing Your Social Security Benefits
132 Four Tiers of Loss Limitations: A Guide to the New Rules for PassThrough Entities Wednesday, September 18, 2019 Birmingham | PM | TX: 4 LS121 LIVE STREAM -K2’s Excel Financial Reporting and Analysis Wednesday, September 18, 2019 WEBCAST | Full | AA: 8 133 Section 199A: Applications and Challenges in 2019 Guidance Thursday, September 19, 2019 Huntsville | AM | TX: 4 134 Introduction to Blockchain Thursday, September 19, 2019 Birmingham | AM | Other: 4 135 Financial Reporting for Not-forProfit Entities Thursday, September 19, 2019 Huntsville | AM | AA: 4 136 K2’s Securing Your Data Practical Tools for Protecting Information Thursday, September 19, 2019 Montgomery | AM | Other: 4 137 A&A for Tax People Who Hate A&A Thursday, September 19, 2019 Birmingham | AM | AA: 4 138 Surgent’s Top Five Tax Topics This Year Thursday, September 19, 2019 Birmingham | AM | TX: 4 139 Limited Liability Companies: Losses, Liquidations, Terminations, Continuations, and Sales Thursday, September 19, 2019 Huntsville | PM | TX: 4 140 Cybersecurity Risk Fundamentals Thursday, September 19, 2019 Birmingham | PM | Other: 4 141 Audit Workpapers: Documenting
Field Work Thursday, September 19, 2019 Huntsville | PM | AA: 4 142 K2’s Emerging Technologies, Including Blockchain and Cryptocurrencies Thursday, September 19, 2019 Montgomery | PM | Other: 4 143 2019 Compilation and Review Update for the Local Firm Thursday, September 19, 2019 Birmingham | PM | AA: 4 144 Real Estate Taxation: Critical Considerations Thursday, September 19, 2019 Birmingham | PM | TX: 4 150 Governmental A&A Update Thursday, September 19, 2019 Montgomery | AM | AA: 4 156 Not for Profit A&A Update Thursday, September 19, 2019 Montgomery | PM | AA: 4 LS150 LIVE STREAM - Governmental A&A Update Thursday, September 19, 2019 WEBCAST | AM | AA: 4 LS156 LIVE STREAM - Not for Profit A&A Update Thursday, September 19, 2019 WEBCAST | PM | AA: 4 145 The Bottom Line on the New Lease Accounting Requirements Friday, September 20, 2019 Huntsville | AM | AA: 4 146 Controller’s Update: Today’s Latest Trends Friday, September 20, 2019 Huntsville | AM | Finance: 4 147 K2’s Testing and Auditing Excel Workbooks Friday, September 20, 2019 Birmingham | AM | Other: 4 148 The New Revenue Standard: Speaking a Different Language of Revenue Friday, September 20, 2019 Birmingham | AM | AA: 4
149 Sirote’s Hottest Tax Topics GO TO WWW.ASCPA.ORG FOR NEW CLASSES AND MOST CURRENT INFORMATION.
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GENERAL CPE SCHEDULE Friday, September 20, 2019 Birmingham | AM | TX: 4 151 Introduction to Blockchain Friday, September 20, 2019 Huntsville | PM | Other: 4 152 Interpreting the New Revenue Recognition Standard: What All CPA’s Need to Know Friday, September 20, 2019 Huntsville | PM | AA: 4 153 K2’s Advanced Excel Reporting Best Practices, Tools, and Techniques Friday, September 20, 2019 Birmingham | PM | AA: 4 154 The New Leasing Standard: It’s Here and It’s Huge Friday, September 20, 2019 Birmingham | PM | AA: 4 155 R&D Credits Friday, September 20, 2019 Birmingham | PM | TX: 4 157 A&A for Tax People Who Hate A&A Tuesday, September 24, 2019 MOBILE | AM | AA: 4
158 This Year’s Top Tax and Financial-Planning Ideas Tuesday, September 24, 2019 MOBILE | AM | TX: 4
164 Select Estate and Life Planning Issues for the Middle-Income Client Wednesday, September 25, 2019 MOBILE | PM | TX: 4
FAAC Financial Accounting and Auditing Conference - 32nd Annual Friday, September 27, 2019 Montgomery | Full | AA: 8
159 Nontraditional Services and Other Methods of Making a Living Tuesday, September 24, 2019 MOBILE | PM | AA: 4
165 Risk, Cost, and Cash Management for Controllers and Financial Managers Thursday, September 26, 2019 MOBILE | AM | Other: 4
ED 10th Annual Educator Conference Friday, October 25, 2019 Montgomery | AM | Other: 5
160 The Top Five Tax Issues in Dealing with LLCs and Partnerships Tuesday, September 24, 2019 MOBILE | PM | TX: 4 161 Section 199A: Applications and Challenges in 2019 Guidance Wednesday, September 25, 2019 MOBILE | AM | TX: 4 162 The New Revenue Standard: Speaking a Different Language of Revenue Wednesday, September 25, 2019 MOBILE | AM | AA: 4 163 The New Leasing Standard: It’s Here and It’s Huge Wednesday, September 25, 2019 MOBILE | PM | AA: 4
166 Financial Statements of Nonprofit Organizations: Significant Changes are Happening Thursday, September 26, 2019 MOBILE | AM | AA: 4 167 Financial Forecasting: Planning for Success Thursday, September 26, 2019 MOBILE | PM | Finance: 4 168 Small Business Fraud: The Lessons behind the Stories Thursday, September 26, 2019 MOBILE | PM | AA: 4
170 Staff Tax Training Level I Monday, December 02, 2019 Montgomery | Full | TX: 16 GAAF Governmental Accounting & Auditing Forum Thursday, December 05, 2019 Birmingham | Full | AA: 16 171 Staff Tax Training Level II Monday, December 16, 2019 Montgomery | Full | TX: 16 169 The Best Federal Tax Update Course by Surgent Thursday, January 09, 2020 Birmingham | Full | TX: 8
You’ve completed your 40 hours for 2019. Now what? You can download your CPE transcript under “My Education Account” on www.ascpa.org OR you can expect it in your e-mail inbox the first week of October. Thank you for making the 2019 CPE season great with the ASCPA. See you soon!
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ASCPA Connections
9/5/2019 3:46:39 PM
AUM’s Xi Gamma Chapter of Beta Alpha Psi is hosting a Professional & Business Casual Clothing drive at this year’s event. Please bring your gently used articles of clothing, including shoes & accessories to the FAAC conference. These items will be placed in the School of Accountancy & College of Business Clothing Closet for AUM Business Students.
September/October
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Presort Std US Postage PAID Permit No 131 Montgomery, AL
The Alabama Society of Certified Public Accountants 1041 Longfield Court P.O. Box 242987 Montgomery, AL 36124
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Sell By Year End! Delivering Results - One Practice At a time Lori Newcomer, CPA & Tim Price, CPA
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