AZ CPA Sept. 2016 by ASCPA

AZ CPA September 2016

Arizona

Legislative Update and PAC Report Reasonable Compensation in Business Valuation Is Your HRA Integrated with Your Group Health Plan?

The Arizona Society of Certified Public Accountants y www.ascpa.com

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AZ CPA The Arizona Society of Certified Public Accountants

The Right Call in Tax and Estate Planning. When you refer a valued client to Frazer Ryan, you can be confident they will enjoy the highest levels of attention and respect. Our nationally recognized tax and estate planners include four certified legal specialists,1 five AV Preeminent® attorneys, four Super Lawyers® honorees, and five Best Lawyers in America® honorees.

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Certifications by the Arizona Board of Legal Specialization | Chuck Whetstine is of counsel | Details on peer recognition at www.frgalaw.com/about.htm

Greg Nelson Molly Montgomery Mike Allen Jared Van Arsdale Brenda Blunt Michael Chesin Virginia DeSanto Marcus Feder Teresa Finley Julia Miessner Mark Patton Jeffrey Quick Curtiss Smith Nancy Thomas Char Woodall

Immediate Past Chair Rob Dubberly AICPA Council Members

Karen Abraham Armando Roman

Chapter Presidents Southern Chapter Northern Chapter

Cathy Poore Bethany de Alva Southwest Chapter Jennifer Sullivan North-Central Chapter Ellen Carpenter AZ CPA is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends in the profession of accounting. It is distributed 10 times a year as a regular service to members of the Society. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in articles or advertisements within this publication. Opinions expressed by contributors are not necessarily those of the ASCPA.

Arizona Society of CPAs 4801 E. Washington St., Suite 225-B Phoenix, AZ 85034-2021 Telephone (602) 252-4144 AZ Toll-Free (888) 237-0700 www.ascpa.com

AZ CPA SEPTEMBER 2016

AZ CPA Volume 32 Number 7

September 2016

Features

In Good Company A profile of Wilbert John Harri, CPA, director of finance and operations for The Arizona Aerospace Foundation, Pima Air & Space Museum/Titan Missile Museum. by Patty Gannon

How to Steer Clear of (T)reasonable Compensation in a Business Valuation-Part 1

For many closely held businesses, no single operating expense affects the bottom-line profit as much as officers’ compensation.

by Kevin R. Yeanoplos, CPA/ABV/CFF, ASA

15 Columns & Departments

Chair’s Message by W. Gregory Nelson, CPA

Member News

A Dash of SALT by James Busby, Jr., CPA

ASCPA Board Highlights Quick Quiz

2015-16 Legislative Update 19

This year, the ASCPA tracked and monitored 118 bills impacting four areas of Arizona’s tax code: income, property, sales and general tax policy. by DeMenna and Associates

21 ASCPA PAC Report

Arizona Society of Certified Public Accountants 4801 E. Washington St., Suite 225-B Phoenix, Arizona 85034-2021 www.ascpa.com

Garverick covers a basic area of the complex rules applicable to the health reimbursement arrangements (HRAs). by J. Patrick Garverick, CPA

Classifieds 26

Is Your HRA Integrated (ACA Compliant) with Your Group Health Plan?

Our members contributed almost $60,000 during the last fiscal year to open doors, share ideas and make sure the CPA voice was heard.

SEPTEMBER 2016 AZ CPA

ASCPA Chair’s Message

Politics and the Voice of the ASCPA In 1948, Lyndon Baines Johnson (LBJ) was in a “Texas-sized” fight for his political life. He was running for the U.S. Senate against the most popular politician in the history of Texas, Gov. Coke Stevenson. Stevenson was undefeated in his previous 12 elections and the odds for LBJ winning seemed impossible.

by W. Gregory Nelson, CPA When political and legislative issues are proposed that are against our collective best interests, we no longer rent a helicopter, but instead find a different way to get noticed. The ASCPA acts as our voice and ensures we are heard.

In those days, there were only a handful of passenger certified rotorcraft in the world, and LBJ used this to his advantage with Texas voters. With his rented Bell 47D helicopter, his campaign slogan, “All the Way with LBJ,” meant flying from dawn to dusk to small town fairgrounds, city squares, softball fields and anywhere people could gather to watch him dramatically fling his hat into the crowd before jumping from the helicopter to the music from a hillbilly band. He would slap backs, kiss babies and deliver his stump speech with tremendous fanfare. His Austin, Texas headquarters was soon receiving calls from small town bosses and mayors pleading for a visit from LBJ and the “Johnson City Windmill.” Stevenson’s conventional approach to campaigning could not stop LBJ’s ascension, and soon Johnson’s tactics had transformed him. He had previously been unable to fill a room in his home district, and now he was drawing enormous crowds throughout the state. Of the 988,295 votes cast, he won by just 87. There’s a certain amount of chutzpah in politics, as we’ve seen this year during the presidential contest. We need a loud voice on important matters. When political and legislative issues are proposed that are against our collective best interests, we no longer rent a helicopter, but instead find a different way to get noticed. The ASCPA acts as our voice and ensures we are heard. House Bill (HB) 2693 was introduced in the Arizona House of Representatives during the 2016 legislative session and did not move forward. We anticipate it returning in 2017, proposing a greatly expanded Arizona sales tax base by including previously exempt categories of personal and financial services. Several categories of services are often provided by CPAs, such as personal accounting, bookkeeping and tax return services as well as investment advice. The legislation is intended to be “revenue neutral” by incorporating some reduction in marginal individual income tax rates. However, the ASCPA board believes this legislation is not in the best interest of Arizona or the CPA profession.

AZ CPA SEPTEMBER 2016

Member News I n M a y, t h e S o c i e t y a s s e m bled 50 CPA leaders to discuss this legislation. We learned that only three non-industrial states (Hawaii, New Mexico and South Dakota) have a form of tax on professional services (TOPS). Four other states have implemented a TOPS, but later repealed it due to administrative and economic reasons. The ASCPA leadership believes there would be numerous negative consequences to taxing personal or professional services, including complicating tax administration for taxpayers, increasing administrative costs for small businesses and discriminating against smaller firms with a larger component of taxable services. It is a regressive tax that would impact those least able to afford it. In addition, the association believes it would be a detriment to the average Arizona taxpayer by simply shifting the Arizona tax burden while increasing tax complexity for Arizona’s many small service-based businesses. The ASCPA will keep you updated on this important tax issue in the following months. In the meantime, watch for opportunities to reach out to our legislators to voice your opinion on this proposed legislation. And, if you haven’t already, please consider a contribution to the ASCPA Political Action Committee. Together let’s make the voice of our profession heard. n

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The Phoenix office of Heinfeld, Meech & Co., P.C. volunteered to help pack and sort emergency food boxes for St. Mary’s Food Bank Jessica Iennarella, CPA, CFE, senior associate at Epps Forensic Consulting PLLC, has been accepted to attend the AICPA’s 2016 Leadership Academy.

and start the year off right. Henry & Horne has also ranked in the top 10 large accounting firms for “Who’s Who in Business 2016” by the Arizona Republic.

Morrison Clark & Conover CPAs promoted Janeen H. Butler, CPA, to tax manager and Jason C. Phillips, CPA, to financial manager.

Wallace, Plese + Dreher elected three new partners, Randy G. Brammer, CPA, CCIFP, Michelle Flynn, CPA, and Sara B. Nance, CPA, effective July 1, 2016.

Benjamin L. Cilek, CPA, was selected by the Phoenix Business Journal as one of their 40 Under 40. CliftonLarsonAllen’s (CLA) Tucson office relocated to 5255 East Williams Circle, Suite 5000 Tucson, AZ 85711. The phone numbers remain the same. Also, Peto & Company CPAs, PLLC joined CLA on July 1, 2016. Henry & Horne employees held a donation drive to collect hundreds of school supplies for the Turn a New Leaf Foundation.Team members donated 850 items including 50 backpacks to help make sure students have the supplies they need to succeed

Tony M. Astorga, CPA (Retired), was appointed to the BBVA Compass Advisory Board. Flowers Rieger & Associates, PLLC announced that Valerie A. Ferry, CPA, senior tax manager, recently passed all five parts of the QuickBooks Exam and is now a QuickBooks Online Certified ProAdvisor. Stella M. Shanovich, CPA, joined BDO USA, LLP as office managing partner for Assurance Services in their Phoenix office.

SEPTEMBER 2016 AZ CPA

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A Dash of SALT

Arizona’s 2016 Amnesty Program is Better and Worse Than Last Year’s Program This month’s state and local tax (SALT) column explains how Arizona’s new amnesty program differs from last year’s amnesty program and points out that there may be better ways for some taxpayers to resolve outstanding tax liabilities. Thrilled at recovering more than $55 million during last year’s tax amnesty period — far more than the $15 million projected recovery — Arizona Gov. Doug Ducey recently approved a bill that establishes a tax amnesty period in Arizona for the second consecutive year. The bill requires the Arizona Department of Revenue (Department) to conduct the program, officially known as the “tax recovery program,” for a two-month period from Sept. 1, 2016 through Oct. 31, 2016.

Parallels to Arizona’s 2015 Amnesty Program Like last year’s program, Arizona’s 2016 tax amnesty program: 1. Requires the Department to waive all civil penalties and interest for tax liabilities that have been or could be assessed during the liability period for taxpayers who comply with the requirements of the program; 2. Applies to all taxes and surcharges administered or collected by the Department, except luxury and withholding taxes; 3. Covers different tax periods based on the type of tax return involved. For taxpayers filing annual returns, such as income tax returns, the program applies to all taxable periods ending before Jan. 1, 2014. For all other taxpayers, the program applies to any taxable period ending before Feb. 1, 2015; 4. Requires taxpayers to submit a “complete and correct application” on a form provided by the Department. The application must identify the tax liability, the qualifying period, and other information that the Department may require when it develops the application; 5. Requires taxpayers to include the appropriate tax returns and reports with the application, including amended returns and reports, if appropriate. If the application is based on an established yet unpaid tax liability, the taxpayer must include a copy of the latest billing notice; 6. Requires that applications be filed during the two-month amnesty period; 7. Provides that taxpayers who already paid any penalties or interest during the liability period are ineligible for a credit or refund for those payments as part of the program; 8. Requires taxpayers who participate in the program to forfeit all administrative and judicial appeal rights related to the tax liabilities included in their applications; and 9. Restricts the following categories of taxpayers from participating in the program:

by James G. Busby, Jr., CPA

James G. Busby, Jr., CPA, is a state and local tax attorney at The Cavanagh Law Firm. Busby previously worked in the SALT departments at Arthur Andersen and Deloitte & Touche. Before entering private practice, Busby was in charge of all transaction privilege (sales) tax audits at the Arizona Department of Revenue. If you have any questions, please contact the author. He can be reached at (602) 322-4146 or JBusby@CavanaghLaw.com.

SEPTEMBER 2016 AZ CPA

• Taxpayers who entered into a closing agreement with the Department for the tax period covered by the application; • Taxpayers who were a party to a criminal investigation or proceeding that was pending on Jan.1, 2016; and • Taxpayers who have been the subject of past tax-related criminal investigations that resulted in a conviction, a guilty plea, or a plea of no contest.

Changes From Last Year’s Amnesty Program The most welcome change is that, unlike previous Arizona amnesty programs, taxpayers who participate in the 2016 program may pay the tax due over three years. Taxpayers who select this option must pay at least 30 percent of the tax by Oct.31, 2016, at least 60 percent by Oct.31, 2017, and the balance by Oct. 31, 2018. The Department is not allowed to abate the penalties and interest until the tax is paid in full.

AZ CPA SEPTEMBER 2016

But, unlike the 2015 amnesty program, taxpayers whose “tax liability due is the subject of an audit being conducted” by the Department are ineligible for this year’s amnesty program. Because the legislature used the term “audit being conducted” in that provision yet specifically requires the Department to abate or waive all civil penalties and interest for “tax liabilities that have been or could be assessed,” the limitation regarding audit liabilities probably is limited to penalties and interest that could be assessed but have not been because an audit is still pending.

Amnesty is Not Always the Best Option Five of the six limitations to last year’s amnesty program — all but the requirement that taxpayers pay all tax due under the amnesty program at the time they submit their amnesty application — apply to this year’s amnesty program.

Accordingly, as I explained in my column related to the pros, cons, and alternatives to last year’s amnesty p ro g r a m , s o m e t a x p a y e r s w i t h outstanding tax liabilities may be better off pursuing relief by: (1) challenging the alleged liability and seeking recovery of part of their costs and fees if their challenge is successful, (2) pursuing a voluntary disclosure agreement, (3) pursuing a managed audit, (4) pursuing a closing agreement, (5) pursuing relief under Arizona’s Taxpayer Bill of Rights, or (6) pursuing an offer in compromise. Practice Tip —Savvy CPAs who represent taxpayers that may benefit from the amnesty program surely will make those clients aware of the program. But, rather than encourage or allow their clients to leap into Arizona’s amnesty program without looking into all of their options, they will help their clients identify the pros and cons of the various options available to them to resolve outstanding tax liabilities. n

In Good Company

Preserving the Past and Preparing for the Future Profile: Wilbert John Harri, CPA

Director of Finance and Operations, The Arizona Aerospace Foundation, Pima Air & Space Museum/Titan Missile Museum, Tucson, Arizona “I have two mantras for my work here,” says Wil Harri, director of finance for Pima Air and Space Museum / Titan Missile Museum. “The first is that we have a positive visitor experience, and the second one is to make money. One contributes to the other. Whatever profit we gain goes right back into the museum. It goes back into the facilities and back into the collection.”

“I have been working here for six years,” says Harri, “and you never know what you are going to encounter – whether it is a bobcat in the cowling of a plane that we have to remove, or visitors that have gotten lost, or a 787 that has gotten stuck in the mud and has to be moved. Every day is an adventure.“ He finds the accounting work interesting as well. “Both museums are private and receive no public funds and they must generate all their revenues from admissions and gift shop sales. We have 200,000 visitors come each year, so there is the public admissions side and we bring in a million dollars in retail sales.” “The best part of my job is the variety of tasks and activities,” states Harri. “My responsibilities include the accounting, the physical plant, and the network and IT component. For instance, it took six months for us to convert to EMB processing for our credit cards (that is still why many businesses don’t have EMB capability because it is complicated and expensive).” Harri works with approximately 45 employees, a nonprofit board of 12 “very supportive” individuals and more than 300 volunteers. “The volunteers are invaluable to us,” says Harri. “We have docents who give tours, drive trams, etc.; they are very important to our functioning. It can be misleading to say that we only have 45 employees, because we have hundreds of volunteers to serve all ancillary functions. Some of them have literally donated thousands of hours to the museum. Many of the volunteers have a background either in the military or some exposure to flying, and that is what prompted them to volunteer.” The procurement and care of the planes is also a big factor of the museum. Planes are donated or on loan. “Giving back a B36 which takes 17 semis to get here is very unlikely,” laughs Harri. “We own very few planes. Most of them are on loan from the Smithsonian or Air Force or in a few cases, private parties.” Planes are dissembled and reassembled and restored on site. “There are special firms that do just that,” says

SEPTEMBER 2016 AZ CPA

Harri. “The museum recently had to pay $30,000 to transport one plane. And that does not get capitalized under the relatively new accounting rules for museums – it just gets expensed.” “We are one of the only museums in the country that actually restores planes,” says Harri. “I’ve learned that it takes tens of thousands of dollars of paint to restore a B52. (Every month I get an invoice for lots of paint.) We have only a handful of people that do the restoration and we must rely on volunteers in this area as well. For instance, we have a woman whose skill is putting canvas on plane frames. Of course all of the planes until relatively recently were covered in canvas or cloth, rather than metal. She was invited to give a class on the technique in Australia. The volunteers in the restoration department are all remarkably skilled. “We are currently restoring a Russian plane called a Sturmovik from WW2 – there are only a handful left in the world. We can trace its history and who flew it. The fuselage is made out

AZ CPA SEPTEMBER 2016

of wood and the wings are covered in plywood. We’ve contracted with a German company who is going to restore the wings for us. It takes close to a million dollars to restore a plane. It also takes years to restore them.” A history buff, Harri enjoys that aspect of the work. He was an academic librarian for 25 years. He then went into full-time accounting and worked for several nonprofits. Harri has also taught more than 50 accounting courses at Pima Community College and will teach another class this fall. “Teaching forces me to stay current in accounting theory and practices,” says Harri. “And, of course, what I bring to that teaching position is my practical experience.” How has his CPA helped him in this job? “Well, it has given me a perspective in terms of assessing appropriateness and adequacy of internal controls,” states Harri. “Nonprofits are typically very pokey in filing their 990s, because they don’t have that expertise on staff. Since I’ve been here, we’ve not had to file one extension. Our fiscal

Want to learn more? Join us for a Behind the Scenes event at the Pima Air and Space Museum on Sept. 27. Go to www.ascpa.com

for more details. year ends Oct. 31, and our auditors are accustomed to getting our trial balance mid-November. Having that CPA expertise, and understanding it from the auditor’s perspective, allows me to prepare the documentation for them so I can make the engagement more efficient. And it allows us to save money.” In his spare time, Harri professes to be “an opera junkie” who frequently attends the opera in Tucson, and is planning to attend an opera festival in Santa Fe. He also has a penchant for historical biographies, “but they have to be at least 1,000 pages to be worthwhile.” n — Patty Gannon

How to Steer Clear of (T)reasonable Compensation in a Business Valuation-Part 1 by Kevin R. Yeanoplos, CPA/ABV/CFF, ASA The most important step in a business valuation engagement is arguably the determination of reasonable compensation for the owner/employee. For many closely held businesses, no single operating expense affects the bottom-line profit as much as officers’ compensation. An expense that is discretionary to the owner in terms of its magnitude, timing and method of payment, may represent not only compensation for services rendered, but may also be a disguised dividend or a distribution of profits. The amount of profits determined for tax reporting purposes can easily be manipulated by adjusting the amount of officers’ compensation considered reasonable. In most instances, the focus on reasonable compensation will relate to normalization adjustments made in the context of the valuation of a closely held business security, but the same concepts and analytical framework have other applications. The concepts and framework presented here can be of benefit in the assessment of reasonable compensation for other purposes, including the valuation of a non-compete agreement and in the segregation and measurement of personal/ professional versus enterprise goodwill. Another emerging area to apply these

principles is in the evaluation of excess or inadequate compensation challenges by the Internal Revenue Service (“IRS”) with respect to closely held C corporations or Subchapter S corporations, respectively. Obviously, owners’ compensation should be evaluated closely for business valuation purposes; because the overstatement of owners’ compensation can lead to an understatement of the value of the business enterprise within the application of several commonly used valuation methodologies Alternatively, overstatement of owner’s compensation can lead to an understatement of the value of the business enterprise. The opinion of value using an income approach hinges on the ability to support the computation of reasonable compensation for the controlling owner or professional practitioner. The expense deducted should represent the compensation that would be paid to the practitioner in an arm’s length arrangement for the duties and services performed. Prior to determining reasonable compensation for a particular business owner, the analyst should perform an analysis of business expenses in order to determine the “true” amount of owner’s compensation to compare against reasonable compensation. The payment of an owner’s personal expenses by the business is quite common and can be both intentional and unintentional. There is a common misperception that it is inappropriate for a business to pay personal expenses and excess perquisites (benefits paid only to the owner and not employees) on behalf of the owner. However, it is not the payment of the expenses that is inappropriate and creates problems. Rather, it is that the payments are inappropriately classified on the company’s books as business expenses, thereby understating business and taxable income. These expenses may be more appropriately classified as owner advances or owner draws. Alternatively, these expenses can actually represent additional owner’s compensation

SEPTEMBER 2016 AZ CPA

disguised as operating expenses. Unless adjustments are made to correctly classify these expenses, the company’s operating ratios can be misstated by giving the impression that the company incurred more operating expenses than it actually did. Business income and compensation available to the owner also can be understated when “phantom income” is unreported. Unfortunately, it is quite common for the small business owner to understate business income by not reporting cash or barter sales. Some business owners mistakenly believe that the tax laws allow the owner to legally do such. Phantom income presents a number of challenges. The owner may deny the existence of such, and a professional may be required to perform costly forensic procedures to determine the existence of misreported income. This can involve tracing spending, analyses, or other time-consuming methods. The owner may readily admit the existence of unreported income and provide an estimate of the amount. A professional should perform some type of analysis to determine the reasonableness of the estimate. To the extent that unrecorded income exists, it represents additional compensation to the owner.

Once the analyst has determined the owner’s actual total compensation, it should be compared to reasonable compensation for the particular owner. Consider the following characteristics when computing reasonable compensation: • Experience of the owner/ practitioner; • Hours worked or other measure of productivity on a daily or periodic basis; • Responsibilities of the position; • Primary and ancillary duties performed; • The age of the owner/practitioner; • N a t u r e o f t h e b u s i n e s s / professional practice; • Geographic setting of the business/professional practice; • Demographic characteristics of the area served by the enterprise/ professional practice; and • Sustainable revenues of the practice.

Rev. Rul. 68-609 provides some guidance in the selection process: The past earnings to which the formula is applied should fairly reflect the probable future earnings. Ordinarily, the period should not be less than five years, and abnormal years, whether above or below the average, should be eliminated.

Upcoming ASCPA Conferences

Business Valuation Conference Sept. 9 12:15-4:00 p.m. ASCPA Learning Center, Phoenix Also offered as a webcast

• It’s in There: What’s Baked Into the Conventional Cost of Capital Data? • Panel: Fast Five Valuation Headaches • Valuator Know Thy Data: The (Mis)Use of Private Company Databases

Learn more and register at www.ascpa.com/conferences

AZ CPA SEPTEMBER 2016

If the business is a sole proprietorship or partnership, there should be deducted from the earnings of the business a reasonable amount for services performed by the owner or partners engaged in the business. The term reasonable compensation is derived from Section 162(a) of the Internal Revenue Code. Section 162(a) provides for a corporation to deduct as a business expense “a reasonable allowance for salaries or other compensation for personal services actually rendered.” Although tax courts have frequently addressed the reasonable compensation issue, divorce courts have not routinely devoted much attention. The importance of this issue should not be understated. The valuation of a business or professional practice may be greatly affected by the absence or existence of excess owner’s compensation. The adjustment for reasonable compensation is critical. It is also one of the most difficult adjustments to quantify. The goal is to find the salary that would be paid to perform the same services and duties as the current owner/employee. To determine a reasonable salary, the analyst needs to determine what a hypothetical replacement employee would be paid to perform the same services with the same skill level, education, and duties. In Part Two, we will consider some of the specific factors addressed by the tax courts related to reasonable replacement compensation. n Kevin R. Yeanoplos, CPA/ABV/CFF, ASA, is an ASCPA member and a shareholder and the director of valuation services for Brueggeman and Johnson Yeanoplos, P.C., a firm that specializes in the areas of business and intellectual property valuation. The AICPA Business Valuation Hall of Fame inductee has been a faculty member of the AICPA’s Business Valuation School for more than 20 years and was recently appointed to the Arizona Commission on Judicial Performance Review by the Arizona Supreme Court. Join him at the BV Conference on Sept. 9 for his presentation: Valuator Know Thy Data: The (Mis)Use of Private Company Databases.

Is Your HRA Integrated (ACA Compliant) with Your Group Health Plan? by J. Patrick Garverick, CPA

ACA Market Reform Background The Affordable Care Act (ACA) contains certain market reforms that apply to group health plans. The market reforms do not apply to a group health plan that has fewer than two participants who are current employees on the first day of the plan year, and also do not apply to a group health plan in relation to its provision of excepted benefits. Excepted benefits include, among other things, accident-only coverage, disability income, certain limited-scope dental and vision benefits, certain long-term care benefits, and certain health FSAs. This article only covers a basic area of the complex rules applicable to the health reimbursement arrangements (HRAs) and the following market reforms: PHS Act §2711 (the annual dollar limit prohibition) — provides that a group health plan (or a health insurance issuer offering group health insurance coverage) may not establish any annual limit on the dollar amount of benefits for any individual; and PHS Act §2713 (the preventive services requirements) — requires non-grandfathered group health plans (or health insurance issuers offering group health insurance plans) to provide certain preventive services without imposing any cost-sharing requirements for these services.

Excise Tax Group health plans that fail to satisfy the market reforms may be subject to a $100 per day excise tax per applicable employee (i.e., $36,500 per year, per employee) under IRC §4980D. The excise tax is self-reported on the Form 8928 – Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code.

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Health Reimbursement Arrangements (HRAs) An HRA is an arrangement that is funded solely by an employer and that reimburses an employee for medical care expenses (as defined under IRC §213(d)) incurred by the employee, or his/her spouse, dependents, and any children who, as of the end of the taxable year, have not attained age 27, up to a maximum dollar amount for a coverage period. Under IRC §105, this reimbursement is excludable from the employee’s income. Amounts that remain at the end of the year generally can be used to reimburse expenses incurred in later years. HRAs with two or more participating employees are considered to be group health plans and are subject to the ACA market reforms.

Application of the Market Reforms to HRAs The preamble to the interim final regulations implementing the annual dollar limit prohibition states that if an HRA is integrated with other coverage as part of a group health plan and the other coverage alone would comply with the annual dollar limit prohibition, the fact that benefits under the HRA by itself are limited does not fail to comply with the annual dollar limit prohibition because the combined benefit satisfies the requirements. Further, the preamble states that an HRA that covers fewer than two participants who are current employees (such as one covering only retirees or other former employees) is not subject to the annual dollar limitation of the market reforms. Thus, to have an HRA compliant with the ACA market reforms, it must be either a: 1. Integrated HRA – An HRA linked to a group plan 2. Retiree-Only HRA 3. One-Person Stand-Alone HRA

Integrating an HRA with a Group Health Plan Under Notice 2013-53, an HRA will be integrated with a group health plan for purposes of the annual dollar limit prohibition and the preventive services

AZ CPA SEPTEMBER 2016

requirements if it meets the requirements under either of the integration methods described below.

Minimum Value Not Required Requirements • the employer offers a group health plan (other than the HRA) to the employee that does not consist solely of excepted benefits; • the employee receiving the HRA is actually enrolled in a group health plan (other than the HRA) that does not consist solely of excepted benefits, regardless of whether the employer sponsors the plan (nonHRA group coverage); • the HRA is available only to employees who are enrolled in nonHRA group coverage, regardless of whether the employer sponsors the non-HRA group coverage (for example, the HRA may be offered only to employees who do not enroll in the employer’s group health plan but are enrolled in other nonHRA group coverage, such as a plan maintained by the employer of the employee’s spouse); • the HRA is limited to reimbursement of one or more of the following—co-payments, co-insurance, deductibles, and premiums under the non-HRA group coverage, as well as medical care (as defined under Code §213(d)) that does NOT constitute essential health benefits; and • under the terms of the HRA, an employee (or former employee) is permitted to permanently opt out of and waive future reimbursements from the HRA at least annually and, upon termination of employment, either the remaining amounts in the HRA are forfeited or the employee is permitted to permanently opt out of and waive future reimbursements from the HRA.

Minimum Value Required Requirements •

the employer offers a group health plan to the employee that

provides minimum value (i.e., the plan’s share of the total allowed cost of benefits is at least 60% of those costs); • the employee receiving the HRA is actually enrolled in a group health plan that provides minimum value, regardless of whether the employer sponsors the plan (nonHRA MV group coverage); • the HRA is available only to employees who are actually enrolled in non-HRA MV group coverage, regardless of whether the employer sponsors the non-HRA MV group coverage (for example, the HRA may be offered only to employees who do not enroll in the employer’s group health plan but are enrolled in other non-HRA MV group coverage, such as a plan maintained by an employer of the employee’s spouse); and • under the terms of the HRA, an employee (or former employee) is permitted to permanently opt out of and waive future reimbursements from the HRA at least annually, and, upon termination of employment, either the remaining amounts in the HRA are forfeited or the employee is permitted to permanently opt out of and waive future reimbursements from the HRA. Note — This integration method requires the non-HRA group health plan to provide minimum value and the HRA does NOT include the limitations on reimbursements (i.e. fourth bullet of the minimum value not required integration method).

Additional Guidance on Reimbursing Family Members’ Medical Expenses Notice 2015-87 states that if the spouse and/or dependents are not enrolled in the employer’s group health plan coverage, the coverage of these individuals under the HRA cannot be integrated with the coverage under the employer’s group health plan, and the HRA coverage generally would fail to meet the group market reforms. Thus,

an HRA is permitted to be integrated with the employer’s other group health plan coverage for purposes of the application of the group market reforms only as to the individuals who are enrolled in both the HRA and the employer’s other group health plan. This notice also provides that an HRA could be structured to be continuously integrated if eligibility for coverage under the HRA automatically applied only to individuals covered under the employer’s other group health plan, so that eligibility for expense reimbursement would expand automatically if the employee changed coverage from employee-only coverage to coverage including a spouse and/or dependents (and vice versa).

Transition Relief Until 2017 The IRS will not treat an HRA available for the expenses of family members not enrolled in the employer’s other group health plan for plan years beginning before Jan. 1, 2016, as failing to be integrated with an employer’s other group health plan for plan years beginning before Jan. 1, 2016, nor will they treat an HRA and group health plan that otherwise would be integrated based on

the terms of the plan as of Dec. 16, 2015 as failing to be integrated with an employer’s other group health plan for plan years beginning before Jan. 1, 2017, solely because the HRA covers expenses of one or more of an employee’s family members even if those family members are not also enrolled in the employer’s other group health plan. Caution — To be integrated with the employer’s group health plan, however, the HRA must meet all the other requirements of the applicable guidance on integration with a group health plan.

602.631.2300 | 800.231.1363

Information Reporting The employer will still be responsible for the Form 1095-B & 1095-C information reporting (under §6055) as minimum essential coverage for each individual whose medical expenses are reimbursable by the HRA and who is not also enrolled in the employer’s group health plan. n J. Patrick Garverick, CPA, is a member of the ASCPA and is the owner of Phoenix Beach, LLC. He is a popular CPE instructor. See below for some of his upcoming seminars or go to www.ascpa. com.

Upcoming Seminars ... Federal Tax Update - C & S Corporations, Partnerships & LLCs Yuma — 11/18 Phoenix- 11/22 A comprehensive review of the Federal business income tax provisions and tax forms/schedules that will affect the 2015 tax returns and 2016 tax projections with an emphasis on newly enacted tax legislation, court cases, and IRS guidance. Federal Tax Update- Individuals (Form 1040) Yuma — 11/17 Phoenix 11/21 A “must-attend” course for all tax practitioners who want to be up to speed quickly and have a successful Federal individual income tax filing season. This session is a comprehensive review of the Federal individual income tax provisions and tax forms/schedules that will affect the 2015 tax returns and 2016 tax projections with an emphasis on newly enacted tax legislation, court cases, and IRS guidance. Register at www.ascpa.com

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AZ CPA SEPTEMBER 2016

T:9.5”

S:9.25”

Family time or overtime.

Arizona

Legislative Update by DeMenna & Associates

Like a Car or Like a Cat? In politics, there is certainly no shortage of quotes, quips, and epigrams, and Arizona’s cowboy lawmakers always seem to have the best. After being told that his legislation needed to be “fixed,” a former Senate President from northern Arizona once jokingly asked, “Do you mean ‘fixed’ like you would fix a car or ‘fixed’ like you would fix a cat?” When it comes to the Arizona Society of Certified Public Accountants (ASCPA), your legislative team reads every bill with a simple test in mind: Does this bill affect the profession? If the answer is “Yes,” then it gets scrubbed and analyzed to see if it needs to be fixed. This requires a thorough review of every piece of legislation introduced by all 90 of Arizona’s lawmakers – and over the course of the last 15 years, lawmakers have managed to introduce an average of 1,239 bills each session. Hundreds of these proposals are aimed at making an array of revisions to Arizona’s tax code, and the ASCPA and its lobbying team are there to communicate and implement the changes necessary to make these proposals work. This year, the ASCPA tracked and monitored 118 bills impacting four areas of Arizona’s tax code: income, property, sales and general tax policy (a “catchall” category). These bills received additional review by ASCPA volunteers who provided critical, real-time feedback to lawmakers as their proposals advanced through the legislative process. The legislation tracked by the ASCPA touched on a whole host of issues, including charitable tax donations, tax credits, tax abatement, exemptions from the state sales tax, audits, unclaimed property, and proposed changes to property tax classifications, valuations and exemptions. Lawmakers also entertained proposals to reign in “patent trolls,” make revisions to Arizona’s Boards and Commissions, change hiring practices by preventing employers from asking about an applicant’s criminal history on job applications, revise campaign finance laws, and regulate “destination management companies” like Airbnb. The ASCPA and its lobbying team also worked to ensure that legislation continuing the statutory life of the Arizona Department of Revenue (ADOR) received lawmakers’ approval (believe it or not, ADOR is not the most beloved state agency in Arizona government).

SEPTEMBER 2016 AZ CPA

In addition to the ADOR continuation, the ASCPA helped usher proposals making non-substantive corrections and updates to Arizona’s tax code through the legislative process, an annual exercise known as the Tax Corrections Act. Internal Revenue Code Conformity, another annual exercise that conforms Arizona’s income tax statutes to reflect changes adopted by Congress to the Internal Revenue Code for the preceding calendar year, also received assistance from the ASCPA and its lobbying team. Although this year’s conformity bill fell victim to last-minute political gamesmanship, the legislation was ultimately passed and signed by the Governor. While the vast majority of the ASCPA’s involvement in the political process focuses on fixing bills (like a car), there are many instances in which the organization takes a proactive approach to policymaking. This session, the ASCPA worked closely with lawmakers to make a number of changes to state law. The ASCPA scoured Arizona’s statutes to identify any remaining sections where reciprocity privileges may have been overlooked, and successfully advocated for legislation that added the missing reciprocity references. The ASCPA also successfully sought changes to state law allowing an “injured spouse” to file a form with the ADOR. The form will allow the taxpayer to protect their portion of any potential tax refund from their spouse’s debts. Arizona law already had provisions for “innocent spouses” in place, and the addition of the injured spouse provisions better align the treatment in these instances with the Federal tax code. The ASCPA also worked with lawmakers to pass legislation removing the penalty assessed against taxpayers who voluntarily report errors they make in filing their Arizona income taxes. Under current law, a taxpayer can avoid the penalty by waiting to be audited, but if they come forward voluntarily, they can be penalized. The ASCPA worked closely with lawmakers to ensure that

AZ CPA SEPTEMBER 2016

this disincentive for honest taxpayers was removed from statute. When Governor Ducey took office in 2015, he had made it clear on the campaign trail that he wanted to reduce, if not eliminate, the state’s income tax. Eliminating the state’s income tax is a serious feat when you consider the fact that it accounts for roughly a third of the state’s General Fund. Regardless, policymakers are exploring every possible way to accomplish this goal. This session, the Chairman of the House Ways and Means Committee introduced a proposal that would apply a tax on a number of professional services, including personal and financial services – or a service tax. The ASCPA strongly opposes any legislation that would apply a service tax to personal and financial services. A service tax will result in increased costs, and puts Arizona CPAs at a competitive disadvantage when compared with states that do not tax these services. The ASCPA, in coordination with its lobbying team, immediately worked to ensure that this legislation never received a hearing, and continues to educate policymakers about the harmful impact a service tax can have on Arizona CPAs. Proposals to expand Arizona’s tax base through a professional services tax have been explored in the past by Terry Goddard during his time as the Mayor of Phoenix, and by former Governor Janet Napolitano, who tasked the Citizen’s Finance Review Commission with finding ways to improve Arizona’s revenue structure. Other states have also considered, and some have enacted a service tax that was later repealed. Stopping this legislation so early in the 2016 legislative session speaks directly to the ASCPA’s impact on policymaking. However, when you consider the Governor’s stated goal of eliminating the personal income tax, as well as the legislation’s impressive list of co-sponsors, it is clear that a professional service tax has become a tangible threat to the CPA profession in Arizona.

As an advocate for Arizona CPAs and taxpayers alike, the organization’s reputation continues to grow. The ASCPA has set itself apart as one that supports straightforward and understandable tax policies, and the organization’s continued impact on Arizona policymaking is all the more impressive when you consider the state’s ever-changing “political landscape.” Last year, roughly one third of Arizona’s legislators were new to the process, and every member of Arizona’s statewide leadership team – from the Governor to the Superintendent of Public Instruction – was new to their role. Looking ahead to the 2016 election and 2017 legislative session, it appears that roughly a third of Arizona policymakers will once again be completely new to the process. As we look ahead to future sessions, it will be critical to focus our efforts on engaging and educating new policymakers about the importance of sensible, functional tax policy, and continuing to build on the outstanding reputation and working relationship Arizona’s CPAs enjoy with the state’s elected officials. It is also important to recognize that the successes of each legislative session would not be possible without the ongoing efforts of Cindie Hubiak, the ASCPA staff, and the countless hours of work that CPA volunteers dedicate every session to crafting better public policy. The ASCPA will continue to be a significant force in shaping Arizona’s tax code, and the laws governing CPAs in the state. The ASCPA also stands ready to fix any legislation seeking to enact a service tax on Arizona CPAs. Although a service tax proposal would likely be fixed like a cat, not like a car. n DeMenna & Associates is a Phoenixbased government relations, public affairs and political consulting firm. With nearly 60 sessions of combined experience among our team, we provide lobbying and consulting services intended to make a difference. For more information, contact DeMenna & Associates at www.demenna.com.

2015-2016 PAC Contributors We appreciate everyone who contributes to the PAC. Here is a list of everyone who gave $250 or more to the PAC.

2015-16 ASCPA PAC Report The ASCPA PAC is the voice of the CPA profession in Arizona. Lawmakers listen when we speak and initiate conversations with us to improve their decisions. The ASCPA PAC and ASCPA leaders contribute money to a wide variety of candidates, current lawmakers and both major political parties. We make sure those who impact the CPA profession know we represent CPAs who care about their credential and Arizona. Our voice is heard loudest when we combine our resources, both knowledge and financial. Our members contributed almost $60,000 last fiscal year to open doors, share ideas and make sure the CPA voice was heard. Please make sure this continues by contributing to the PAC today at www.ascpa.com.

Total ASCPA PAC Contributions:

$59,912 Total Contributed to candidates/causes:

$67,300

Sandra A. Abalos Karen M. Abraham Mike Allen Mark M. Anderson Cord D. Armstrong Susan A. Armstrong Corey Arvizu Anita F. Baker Connie L. Baker Steven E. Bandler Donald R. Bays Bruce D. Beach Peter F. Beaham Lawrence C. Bello Jeffrey A. Bither Brenda Blunt Frank J. Brady James F. Brewer Christine Brueser Jay L. Buck James J. Buhr Ronald Butler, Jr. Debra A. Callicutt Kevin F. Camberg Brian J. Campbell Ellen J. Carpenter Julie P. Cauich George M. Cohen Andreas D. Coumides, Jr. Sandra L. Cronstrom David M. Damron Lisa L. Daniels Craig Desnoyer Bradley S. Dimond Scott A. Donaldson Kevin J. Donovan Robert E. Dubberly Mary K. Duffy Lawrence Field Teresa Finley Michael T. Finnegan Marc D. Fleischman Gary Fleming Michael I. Fleming Randy G. Fletchall Barry R. Friefield Thomas L. Friend Gary L. Gethmann

Rufus Glasper Chrisitne L. Goldberg Richard H. Goldenson Charles H. Goodmiller Jacob P. Gregory Darlene D. Hagan Sean Hales Nickolyn Hansen Robert G. Harbour Stephen T. Harris Victoria C. Harris Joshua P. Hayes William C. Heimerdinger George E. Henderson Dale R. Hensley William J. Hodges, Jr. Michael A. Hoerig Herbert J. Hoffman Michael J. Holt David L. Hopkins Terry Hothem Cindie Hubiak Marla V. Hummel Debra Hunter David M. Iaconis Charles J. Inderieden Janis K. Isaacson Craig J. Isakson Thomas G. Johnson William J. Judge Colette Kamps Julie S. Klewer Joel B. Kramer Richard C. Kudzmas Chad D. Kunze Mark L. Landy Susanne Landy Donna H. Laubscher Robert J. Leslie Chris W. Ludwig Christopher A. Lutes Johannes J. Marais Thomas V. Marin Alexander T. Marr Charles A. Marx, Jr. Marilyn M. Mays Karen K. McCloskey Kevin W. McHolland

SEPTEMBER 2016 AZ CPA

Upcoming ASCPA Conferences

Arizona Federal Tax Institute Conference November 3-4 Black Canyon Conference Center Attend one day or two days to get updated on tax issues from national and local experts. November 3 The Year in Review in Estate Planning Tom Murphy, Murphy Law Firm, Inc. Economic Update: What Data Actually Matters Jim Rounds, Rounds Consulting Group, Inc. Income Tax Planning for IRAs During Life and Beyond Michael Tucker, Michael J Tucker PC Forms, Forms, Everywhere a Form: A Transactional Approach to Required International Information Reporting Burgess Raby, Raby Law Office Representing Taxpayers in Domestic and International Criminal Tax Investigations Kirk McCarville, Kirk A. McCarville, P.C. Inversions, Admissions, Taxes and Ethics: 2015-2016 in Review Marianne Jennings, Professor, W.P. Carey School of Business, ASU November 4 Google Research Ed Zollars, Thomas, Zollars & Lynch, Ltd. 2016 Representation Update Robert McKenzie, Arnstein & Lehr LLP How to Take Advantage of the Permanent Section 1202 Gain Exclusion Jim Hamill, Reynolds, Hix & Co., P.A. Target Partnership Allocations: How to Recognize Them and How to Prepare the Partnership Return Jim Hamill, Reynolds, Hix & Co., P.A. Individual Income Tax Update Ed Zollars, Thomas, Zollars & Lynch, Ltd.

Learn more and register at AZwww.ascpa.com/conferences CPA SEPTEMBER 2016

Charles McLane George H. McNamara Norman R. Mendoza, II David G. Miller, Jr. Dennis E. Mitchem Bryan W. Mogensen Molly Montgomery Dan Nahom Allen L. Nahrwold Ralph G. Nefdt Greg Nelson Lori A. Niederlehner Bruce J. Nordstrom Jennifer Nordstrom Zandra L. O’Keefe Dennis J. Osuch Randall Ottaway Tyler J. Pace, I Jay Z. Parke Mark Patton Bridget B. Phillips David P. Phillips Bradley J. Preber John W. Prenzno Victor D. Puchi Dave H. Richardson Christina C. Roderick Jay R. Rold Armando G. Roman Vanesa Romero Eric S. Rudner LeAnn M. Rudolph John P. Russo James A. Schmidt Cynthia A. Schroeder

Richard R. Schultz Jay J. Senkerik Stella M. Shanovich Lisa A. Shepard Jennifer L. Shields Layne R. Simmons Bradley A. Smith Curtiss Smith Jeremy A. Smith Andrew M. Spillum Leslie B. Stackpole Ronald L. Stearns Tracy L. Stone Steven L. Tait Laurie A. Taylor Philip W. Taylor Nancy Thomas Candace B. Tooke Todd Trendler Christopher W. Tyhurs Peggy H. Ullmann Carlos E. Wagner Scott T. Wallace Brooke M. Westemeier Lynn C. Westergard Pamela D. Wheeler Corrine G. Wilson Donna Witherwax Susan Wolak G. James Wright Robert Wyndelts Bryan A. Zall Dominic J. Zamora Scott R. Ziemer Edward K. Zollars

Every member of the ASCPA board of directors contributes at least $500 toward the ASCPA’s legislative efforts.

Help join in the effort to protect our profession, contribute to the ASCPA PAC by going to www.ascpa.com.

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SEPTEMBER 2016 AZ CPA

Highlights of Board of Directors July Meeting Among other actions at its July 27, 2016 meeting, the ASCPA board of directors reviewed the following:

Behind the Scenes: Pima Air & Space Museum — Sept. 27 Join us as we go Behind the Scenes at the Pima Air & Space Museum. We will start with a docent-led guided tour, followed by a box lunch while Wil Harri, director of finance and operations, provides an overview of the history and the economic success of The Arizona Aerospace Foundation during financially tough times. After lunch, we will finish with an optional exclusive tour of the “Boneyard/AMARG” (included). Register: www.ascpa.com

AZ CPA SEPTEMBER 2016

Auditor Report The 2015-2016 financial report was given by the independent firm of Mayer Hoffman McCann P.C. An unqualified audit report was issued. Consent Agenda The consent agenda, which included the board minutes, financial statements and audit committee chair selection, was approved. Conflict of Interest Policy Board members reviewed and signed the conflict of interest policy as part of the annual process. Nominating Committee Report Molly Montgomery, chair of the committee, presented the following names as members of the nominating committee: Jessica Iennarella, Armando

Roman, Donna Tannatt and Jared Van Arsdale. The board approved the names and had a conversation on the areas of expertise the committee should explore when adding the new directors. Strategic Plan Update Board members discussed potential changes to the regulation of CPAs in Arizona, the recent Accountancy Board appointment and strategies regarding the proposed personal services tax. Staff members shared the approach and process for the development/redesign of the Society’s new website. A Day in the Life Mike Allen, Jeff Quick and Jared Van Arsdale each shared challenges and joys they experience in their life and job. Other Business No other business was conducted. If you have questions or would like additional information, please contact Cindie Hubiak at (602) 324-2888; AZ toll free at (888) 237-0700, ext. 203; or chubiak@ ascpa.com.

AZ CPA Quick Quiz You’ve Read It, Now Get Credit Take this quiz online or submit this hard copy on AZ CPA content. Receive a score of 70% or more and earn one hour of CPE credit in specialized knowledge. It’s that easy! Fees

Members $25 Nonmembers $40

Online Access Login to www.ascpa.com and go to CPE/OnDemand CPE Quick Quiz to access links to all active quizzes. Purchase quiz and the quiz link and password will be emailed to you. Your results will be sent immediately after completing, and certificates are emailed within two business days. Hard Copy Please select one answer for each question. Fill out registration/payment information below and mail or fax to the Society office. Quiz results and certificates will be emailed to the address provided on the registration form. *This quiz will be available until Sept., 2017. Please note that users have three attempts to pass the quiz with at least a 70% score.

September 2016 Issue of AZ CPA* 1. In the Chair’s Message, Greg Nelson mentions that only three nonindustrial states have a form of tax on professional services (TOPS). They are: Hawaii, New Mexico and ? m South Dakota m South Carolina m North Dakota 2. The 2016 Amnesty Program requires taxpayers to forfeit all administrative and judicial appeal rights related to the tax liabilities included in their application. m True m False 3. In the 2016 Amnesty Program, taxpayers who participate in the program must pay what percentage of the tax by October 31, 2017? m 30% m 60% m 100% 4. The Pima Air & Space Museum works with approximately how many volunteers? m 200 m 300 m 400

5. Which characteristic is not listed to consider when computing reasonable compensation? m The age of the owner/ practitioner m Responsibilities of the position m The gender of the owner/ practitioner 6. What is the per day excise tax per applicable employee under IRC if a

group health plan fails to satisfy the market reforms? m $50 m $100 m $150 7. In order to have an HRA compliant with the ACA market reforms, it must be all of the following except: m Stand-Alone HRA – An HRA not linked to a group plan m One-Person Stand-Alone HRA m Retiree-Only HRA 8. This year, the ASCPA tracked and monitored how many bills impacting four areas of Arizona’s tax code: m 115 m 118 m 122 9. Th i s p a s t ye a r, AS C PA PAC contributions to candidates and causes totaled: m $62,400 m $63,700 m $67,300 10. At the board of directors July meeting, which item was not discussed? m 2015-16 PAC contributors m Changes to the regulations of CPAs in Arizona m Strategies regarding the proposed personal services tax

Quick Quiz Registration Name: ____________________________________________________ Email:_____________________________________________________ Telephone: _________________________________________________

Payment

m Member: $25 m Nonmember $40 Checks: Please make payable to: The Arizona Society of CPAs Credit Card:

m Visa m MasterCard m American Express

Credit Card #: _______________________________________________ Expiration Date: _____________________________________________ Name on Card. _____________________________________________ Mail to: ASCPA, 4801 E. Washington St. Suite 225-B, Phoenix, AZ 85034-2021; fax to (602) 324-6043; scan and send to ASCPACPE@ascpa.com.

SEPTEMBER 2016 AZ CPA

Classifieds Business Opportunities/ Practices for Sale T ucson F irm S ee k s Acquisition — Small, established Tucson CPA firm seeks local sole proprietor in need of a succession plan. Experienced professionals will give your clients personal, quality service. Contact rcdcoo9@gmail.com to discuss a new home for your valued clients.

Employment CONTROLLER — Arizona Burn Foundation - Reporting to the President/ CEO and serving as an integral member of the senior management team. The Controller will be responsible for the development of Arizona Burn Foundation’s financial management strategy and contribute to the development of the organization’s strategic goals. In addition to the strategic components, the Controller will be charged with developing and implementing more sophisticated policies and procedures in the finance realm. Send resume, cover letter and salary requirements to jobs@azburn. org. CPA — MORTON CPAS P.C. — Professional-minded CPA with an entrepreneurial spirit and passion for tax and accounting work wanted to join a CPA firm with growth potential and an excellent reputation. At least eight years CPA firm experience required. Ongoing reward for client development and retention. We offer an excellent office atmosphere and team spirit; have regular peer reviews and CPE. People who join our team stay for the long-haul. Lacerte and QuickBooks knowledge would be beneficial. Send resume and cover letter to: tracey@mortoncpas.com. CPA — SENIOR TAX REVIEWER — Heritage Advisors, LLC - Are you looking for more work/life balance? We are a multidisciplinary firm with a unique approach, our clients are better served and our staff is less stressed. You

AZ CPA SEPTEMBER 2016

must have 10+ years’ experience in reviewing financial statements and tax returns for individuals, partnerships, corporations, and trusts. An ideal candidate should be comfortable meeting with clients, mentoring staff members, and thinking creatively in the planning process. Please send your resume to wealth@heritageadvisorsllc. com along with salary history. As part of your compensation package, you can expect to receive insurance, PTO, flexible hours in the summer, 401K, and great co-workers. NORTH SCOTTSDALE CPA FIRM SEEKS SENIOR TAX PREPARER — Position includes preparation of higher end business and personal tax returns as well as assisting tax manager and working from a leadership position on the team. Primary responsibilities include: • Preparation of high end tax returns • Assist Tax Manager with review of returns • Respond to IRS and other taxing authorities as needed • Meeting and conferences with tax clients • QuickBooks and financial statements knowledge • Bachelor’s degree with emphasis in tax/accounting or Master’s Degree in Taxation, current E/A or CPA is a Plus • 4+ years of recent tax preparation experience. Firm offers generous benefits package, bonuses, and flexible hours. Salary DOE, Send resume, salary requests, and availability to Joy@ partridgecpas.com. SENIOR TAX ACCOUNTANT — Tull, Forsberg & Olson, PLC - We are a long-established, mid-sized local CPA firm, which balances family and quality of life with a rewarding interaction among clients and coworkers. The Firm offers a flexible environment, benefits package, competitive salaries and excellent opportunities. We are looking for a CPA with 2 to 5 years of experience in accounting and tax who enjoys working in a team environment and brings a creative and problem solving attitude to the table. Please fax resumes to Tim (602) 277-5447 or email to tfyan@tfocpa.com.

TAX MANAGER — Tull, Forsberg & Olson, PLC — We are seeking a talented CPA desiring to be an immediate longterm integral part of our firm. We are looking for an individual who works well in a team environment and possess excellent communication skills. Five plus years of experience, and an initiative to seek out innovative and practical solutions to issues are required. Attractive compensation and a flexible atmosphere that balances family and quality of life with a rewarding interaction among clients and coworkers is the norm not the exception. Please email resumes to tfyan@tfocpa.com or call (602) 2775447. TAX MANAGER — Cambridge Tax Advisory LLC — Individual with significant recent tax experience focusing on individual tax needed to support investment firm. Interested party will enjoy seeking tax avoidance strategies for high income taxpayers, coordinating with financial and investment planning, and some business tax as well. Medium-term equity position possible. Successful candidate will enjoy client contact with high income clients from various background and industries. Charitable gift planning will also be a growing part of practice. Our firm is a close-knit boutique firm of six. Send resume and cover letter to ginger@takechargecoaching.com. TAX SUPERVISOR — LOCAL 10 PERSON TUCSON CPA FIRM — A minimum of five+ years of recent tax experience in public accounting and a CPA license are required. Strong technical, communication, customer service and practice development skills are highly desirable. You will review and prepare individual, partnership, trust and corporate tax returns, research tax issues and provide tax consulting services for small to medium sized businesses and wealthy individuals. We offer a competitive salary, flexible work schedule and comprehensive benefits package with partnership potential. Please apply by

Upcoming ASCPA Conferences sending your resume and cover letter to cpafirm3@gmail.com.

Office Space HISTORIC OFFICE BUILDING FOR SALE — Historic Office Building for sale, 3250 square feet at 2344 East Speedway Tucson. For information please email tdasse@dasselaw.com or call (602) 619-4948. OFFICE AVAILABLE — 16TH S T R E E T & G L E N D A L E AV E , PHOENIX — Large executive office in our professional suite. Share space with other CPAs, with access to all of the typical office amenities (conference room, copy room, file room) and possible shared services. A staff cubicle is also available. Call or email Ira Feldman for more information. (602) 850-5101 or ira@felco.biz. Website: http://www.felco.biz. OFFICE SPACE AVAILABLE WITH GROUP OF TUCSON CPAS — Share in costs with Tucson CPA group for a receptionist, conference rooms, a comprehensive library, copier/fax/ scanner and other office services and facilities. Become part of CPAs who each own their own practices, but unite together in discussions and interpretations of tax and accounting issues through personal interaction or meetings. Options available to either lease your own office space from the group or pay a standard monthly fee to have use of the conference rooms, receptionist, mail service, copier/fax/ scanner and other services. Located in the prestigious Plaza Palomino. Please contact David Lotz or Randy Livingston for more details. (520) 3211334. Website: http://CPATUCSON. COM.

For information about classified ads, visit www.ascpa.com and go to marketplace.

Construction Industry Conference October 19 Desert Willow Conference Center

Join us to get updates on issues in the construction accounting field. Workforce Shortage, Needs, Reality and Retention in Construction Fred Ingersoll, Arizona Builders Alliance, TC Enterprise LLC Lease Accounting Changes – How Big is the Impact? Jared Asay, Morrison, Clark & Conover CPAs Economic Outlook for the Construction Industry in AZ: Are the Good Times Rolling? Nate Curtis, Navigant Consulting Insurance Issues and Solutions – New or Often Overlooked Ben Greer, USI Insurance Services & Dennis Tsonis, Lovitt & Touche You Can’t Fix Your Mental Health With Duct Tape: Suicide Prevention and Construction Dr. Sally Spencer-Thomas, The Carson J Spencer Foundation Technology in Construction – Panel Dave Miller, Jokake Construction Co., Lisa Autino, Caliente Construction, Inc. & Michael Hansberger, CSW Contractors Best Practices to Protect Your Company Regarding Government Audits and New Employment Laws Julie Pace, Cavanaugh Law Firm

Learn more and register at www.ascpa.com/conferences

SEPTEMBER 2016 AZ CPA

Arizona Society of CPAs 4801 E. Washington St., Suite 225-B Phoenix, AZ 85034-2021

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