Fall 2018 - Florida CPA Today | Volume 34, Number 4 by Florida Institute of CPAs

FALL 2018 | VOLUME 34, NUMBER 4

Big Move for

Small Business A Distinctively Unique Business Deduction for Non-Corporate Taxpayers

PAGE 20 Wayfair Decision – What we know now

PAGE 25 Getting to Know Karen Lake, CPA

PAGE 24 ACA — Employer Provisions Still Apply

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CONTENTS PRESIDENT/CEO Deborah L. Curry, CPA, CGMA EDITORIAL COMMITTEE Ryan A. Myers, CPA, chair William C. Quilliam, CPA, vice chair Keith C. Blackman, CPA David J. Hochsprung, CPA Douglas E. Day, CPA David S. Holland, CPA Lynda M. Dennis, CPA Michael S. Kridel, CPA Troy Y. Manning, CPA All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability, and editing requirements and restrictions. Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/letterstoeditor.

8 COVERSTORY

Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc. (FICPA), nor should statements be considered endorsements of products, procedures or otherwise. The FICPA reserves the right to reject any editorial material or paid advertising that does not meet Florida CPA Today criteria or detracts from its ethical and professional standards. Florida CPA Today is published quarterly by the Florida Institute of Certified Public Accountants, Inc., 3800 Esplanade Way, Suite 210, Tallahassee, FL 32311. Telephone: (850) 224-2727 or (800) 342-3197. Visit our website at www.ficpa.org. This magazine is provided to members of the FICPA. No specific amount of your dues, either expressed or implied, is for this publication. This magazine is not available for purchase by either FICPA members or nonmembers.

Big Move for Small Business

FEATURES

Wayfair Decision – What we know now

ACA — Employer Provisions Still Apply

Getting to Know Karen Lake, CPA

ENDORSED PARTNER CONTENT

For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. © 2018 by the Florida Institute of Certified Public Accountants, Inc. All rights reserved. Reproduction in whole or part is prohibited without the express written consent of the FICPA.

DEPARTMENTS

Inside the Mind of a Hacker

Five Questions to Ask When Choosing a Data Hosting Provider

2 4 6 34 36 38 40

President's Message Chair's Message News Briefs Staff Reports DOR Update CPAs in the Spotlight Marketplace

Visit issuu.com/ficpa to access and download the digital version of Florida CPA Today. FALL 2018 | FLORIDA CPA TODAY

PRESIDENT'S MESSAGE

Leading into the Future Innovation...not just a concept but a commitment to remaining relevant to you, our valuable member. This fall, we are delivering member-centric events across the state. Our work with consultant Sarah Sladek, CEO of XYZ University, revealed that members want us to be more visible locally. To better reach you, here are several innovative new programs coming to your region. OUR FALL AGENDA

Town Halls | Miami and Tampa

DEBORAH L. CURRY CPA, CGMA

Our team would like to visit with you at your office. Contact me at deborah@ficpa.org for more information and to schedule a visit. FOLLOW FICPA ON SOCIAL MEDIA TO STAY TUNED ON THE LATEST CPA HAPPENINGS! @FICPA

The FICPA is offering two Town Halls this fall. We invite members and guests to join us for informative and interactive discussions on important developments within the CPA profession, as well as interesting business topics affecting Floridians. Our host cities include Miami and Tampa. Look for details and meeting notices via email, the FICPA NewsFlash and social media. Infusion Learning | Jacksonville, Palm Beach and Tampa

For several years, the Jacksonville Chapter has hosted the Infusion learning event, bringing a full day of continuing education. This year, we are expanding with two new locations: Palm Beach and Tampa. All Infusion events will be held in January 2019. We invite you to join your colleagues and fellow chapter members, not only for education, but for networking and collaboration. Diversity & Inclusion Round Tables

In partnership with Deloitte, we are pleased to announce an all-new Diversity and Inclusion roundtable training initiative. Six pilot events are planned. During these interactive sessions, attendees will explore the business case for their companies to embrace diversity and inclusion. The pilots will then be used as a model for expanding the program in 2019. Firm & Company Presentations | Your Company

We would like to share news on our programs, delve into what is important to you in terms of our support and legislation, and explore what we can do to help you succeed in your business. WEBSITE REDESIGN

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FLORIDA CPA TODAY | FALL 2018

Back to the topic of innovation. Although adopting new methods isnâ&#x20AC;&#x2122;t always easy we are dedicated to providing you with new and meaningful services.We pledge to revise and improve until we get it right rather than remain stagnant. On July 13, we launched a new website. Many members gave the siteâ&#x20AC;&#x2122;s modern visual appeal thumbs up. However, members also experienced functionality challenges, such as log-in and CPE registration issues that were not evident when we previewed the product. To avoid prolonging these challenges, we reverted back to our original website and customer management software. Technology changes rapidly and we are committed to ensuring that ours keeps up with your needs. The redesign of the website to enhance accessibility and visual appeal will continue.

Hurricane Michael: Office Space Matching & Recovery Resources As we go to press, our Panhandle colleagues and communities are digging out from devastating Hurricane Michael, many still are without power or even a roof over their heads. The FICPA is here for you. Visit michael.ficpa.org for the latest storm-related tax extensions, bridge loan updates and disaster recovery links. We are working to match those in need for office space with those who have space to lend. It is times like these that remind us how much we care and value you, our members and of the important work that you do. The road to recovery will be long for many. The FICPA family is here to support Panhandle CPAs in need. If you have office space in north Florida to share, please visit michael.ficpa.org to let us know.

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CHAIR’S MESSAGE

Moving Forward While Facing Disruption How the FICPA is helping members face uncertain times. CHANGE IS THE NEW CONSTANT

There’s a common misconception that the accounting and finance profession is immune to change. The thinking goes like this: CPAs and business professionals have provided countless services for so many years, across industries of all shapes and sizes, on a daily basis — services that nearly everyone benefits from, whether they know it or not. The need for these services has never changed. But have you ever thought about how different our profession might look in five or ten years — or even just one? Cloud computing, blockchain, process robotics, and data visualization are just a few of the new technologies our profession is already facing today. New business models continue to emerge as technological & regulatory change disrupts how, when, and where business is done.

GARY FRACASSI CPA, CGMA

I’d like to thank all of the FICPA members who attended our 2018 Accounting & Business Show. We put a huge amount of time, effort, and care into events like ABS to make sure members are receiving the best learning and networking opportunities possible, and I’m encouraged by the response we received this year.

It’s safe to say that the future of accounting and finance will require a very different skill set, and we will need to adapt to these changes by learning, unlearning, and relearning what we think we know. This presents a major opportunity for us to grow as a profession. I’m proud of the FICPA's work in this area for members. KEEPING MEMBERS INFORMED

You don’t have to look too far to see some of the ways the FICPA is keeping members informed of changes impacting our profession. Just flip through the rest of this magazine! • This month’s issue features a deep dive into the Supreme Court’s decision in South Dakota v. Wayfair, which stands to affect just about anybody working in tax planning and preparation. You’ll also find expert analysis of new regulations affecting qualified business income in our cover story. • FICPA conferences and events continue to be the place where Florida’s business leaders go to get up-to-date insight and analysis. We recently wrapped up our 2018 Accounting & Business Show, with sessions on disruptive technology; the recently-passed Tax Cuts & Jobs Act; and new cybersecurity trends. • The FICPA offers dozens of CPE classes on technology and change, such as: Blockchain and Digital Currency: The Next Frontier in Digital Transformation; Ransom, Cyber-Spying, and Subterfuge: Securing Your Data and Keeping the Bad Guys Out; and Update on Section 199A: What We Now Know in Light of NEW IRS Guidance. All of these resources at their disposal means that FICPA members are on the forefront of a changing profession. And we look forward to continuing to provide these services and opportunities to members like you. Thank you for your membership. Please reach out to me at chair@FICPA.org with any comments, concerns or suggestions you have. The FICPA is here to serve you.

FLORIDA CPA TODAY | FALL 2018

FALL 2018 | FLORIDA CPA TODAY

NEWS BRIEFS

COMPANY NEWS

Skoda Minotti — Best Firm to Work For

Bloomer, Geri & Company Merges with Anglin CPAs

Skoda Minotti named one of Accounting Today's best accounting firms to work for in 2018.

Anglin CPAs will maintain the office in Pensacola, which will offer tax services, but also services in audit and assurance, business solutions and IT solutions.

Pensacola-based Bloomer, Geri & Company has merged with Anglin Reichmann Snellgrove & Armstrong P.C. (Anglin CPAs), effective September 1. The combined firms will operate under the name Anglin Reichmann Armstrong.

COMPANY NEWS

CBIZ, Inc. Aquires LSA, PLC

Saltmarsh, Cleaveland & Gund Recognized as Top 200

Saltmarsh, Cleaveland & Gund, one of the largest CPA-led consulting firms in the Southeast, has been recognized as one of the nation's Top 200 accounting firms according to INSIDE Public Accounting (IPA). 3pagead.pdf 1 9/8/18 1:57 PM

CBIZ, Inc. (NYSE: CBZ) today announced that it has signed a definitive agreement to acquire business assets of Litigation Support Advisors, PLC, (“LSA”) of Tampa Bay, Florida, effective August 16, 2018. COMPANY NEWS

Call Levy & Associates for a FREE confidential consultation.

CPA Mutual Acquires PMCA & Enquiron CPA Mutual announces the acquisition of Michigan-based Professional Management Consultants Association of America (PMCA) in a effort to expand brand awareness to more CPA firms, particularly those that serve the healthcare industry. Since 2014, PMCA has been an insured member of CPA Mutual, delivering comprehensive group professional liability insurance to its membership.

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November 8-10, 2018

Gainesville and Simulcast

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The FICPA University of Florida Accounting Conference brings essential CPE training to Gainesville. Attendees will hear from leading speakers and instructors, all hand-picked to share knowledge on the broad and local issues that matter to you. Join in person or via online simulcast and connect with other CPAs in the University of Florida community. FOOTBALL GAME TOO! AFTER YOUR 18.5 HOURS OF CPE, JOIN US TO WATCH THE GATORS DEFEAT SOUTH CAROLINA! Limited tickets available for purchase. Details: ficpa.org/ufac.

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Big Move for

Small Business A Distinctively Unique Business Deduction for Non-Corporate Taxpayers1 BY JONATHON INGBER

BACKGROUND

The deduction for qualified business income, a new deduction contained within the Tax Cuts and Jobs Act of 2017 2, is not the most complicated provision to be found in the legislation, but to acquire a more than passing acquaintance with its intricacies, one must read the statutory language more than a couple of times. With a huge decrease in the highest corporate income tax rate from 35 percent to 21 percent, presumably it was only natural that those taxpayers that had made an entity choice other than subchapter C should also be honest candidates for tax relief. Perhaps one could view the qualified business income deduction as an attempt at tax parity. Despite the far from simplistic terms of Internal Revenue Code Section 199A (Qualified business income) as enacted, the Conference Committee’s rejection of the House’s version that contained a maximum rate of 25 percent for qualified business income made the final legislative result

somewhat simpler to apply. With the ink hardly dry, Congress enacted a retroactive modification referred to as the Grain Glitch Fix, a provision of the Consolidated Appropriations Act of 2018, designed to remove the original provision in subsection (g) that had the unintended consequence of giving farmers “a tax advantage for selling crops to farmer-owned cooperatives, but not for sales to private or investor-owned grain handlers”, which was declared to be a "mistake". Before tax practitioners sally forth into the 2019 tax season, it is fervently hoped that the executive branch will promulgate legislative and interpretative regulations to ensure a more accurate application of the statute for pass-through entities: partnerships, S corporations, sole proprietorships, real estate investment trusts, publicly traded partnerships, and specified agricultural and horticultural cooperatives. So hang on to your seats, my fellow tax practitioners, as a concerted effort to fully comprehend the statute is underway.3

1 For both S corporations and partnerships the deduction for qualified business income under I.R.C. § 199A is taken at the shareholder and partner level, respectively. 2 Presumably violating the reconciliation procedure, the “real" name of the enactment was changed: “Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018”. (The name was stricken by the Senate Parliamentarian immediately prior to the Senate’s passage of the final bill.) Note the absence of the word “reform” in the title to the legislation. If one wishes to acquire an appreciation for a legislative process that truly constituted genuine reform, the reader is advised to acquire a copy of Showdown at Gucci Gulch by Alan Murray and Jeffrey Birnbaum, two reporters of the Wall Street Journal who provided a masterful account of the ultimate enactment of the Tax Reform Act of 1986. Meaningful reform required the cooperation of Congressional members on both sides of the aisle as well as full cooperation from the executive branch. The political personalities of the participants (President Reagan; Secretary of the Treasury, James Baker; White House Chief of Staff, Donald Regan; Deputy Secretary of the Treasury, Richard Darman; Speaker of the House, Tip O’Neill; Chairman of the House Ways and Means Committee, Dan Rostenkowski; Chairman of the Senate Finance Committee, Bob Packwood; Senator Daniel Moynihan (ranking member); Senator Russell Long; Senator Bob Dole; Senator Bill Bradley; Senator Lloyd Bentsen; Representative Bill Archer; Representative Jack Kemp; and Chief of Staff of the Joint Committee on Taxation, David Brockway) constituted a “dream team" for sweeping tax reform. On October 9, 2013 Wall Street Journal reporters Lauren French and Byron Tau wrote that Senator Max Baucus and Representative Dave Camp hoped to repeat that legislative feat. It never happened. 3 While thousands of articles, small and large, may now be found on the ubiquitous Internet, the author has chosen, for the sake of cohesion, to follow the expositions contained in Wolters Kluwer’s Tax Cuts and Jobs Act: Law, Explanation & Analysis [hereinafter WK—LEA] and RIA’s Checkpoint. Where appropriate other citations will be made throughout the materials.

FLORIDA CPA TODAY | FALL 2018

THE NEW DEDUCTION4

The magnitude of the deduction may be stated quite succinctly as an amount equal to the lesser of— 1. T he combined qualified business income amount of the taxpayer; or 2. a n amount equal to 20 percent of the excess (if any) of the taxable income of the taxpayer for the taxable year, over the net capital gain (as defined in section 1(h)) The quintessence of the statutory definition is found in the further definition of the “combined qualified business income amount” in subsection (b) of section 199A: "b. Combined qualified business income amount. For purposes of this section— 1. In general. The term “combined qualified business income amount” means, with respect to any taxable year, an amount equal to— a. t he sum of the amounts determined under paragraph (2) for each qualified trade or business carried on by the taxpayer, plus b. 2 0 percent of the aggregate amount of the qualified REIT dividends and qualified publicly traded partnership income of the taxpayer for the taxable year.5 2. D etermination of deductible amount for each trade or business. The amount determined under this paragraph with respect to any qualified trade or business is the lesser of— a. 2 0 percent of the taxpayer's qualified business income with respect to the qualified trade or business, or b. t he greater6 of— i. 5 0 percent of the W-2 wages with respect to the qualified trade or business, or

(ii) the sum of 25 percent of the W-2 wages with respect to the qualified trade or business, plus 2.5 percent of the unadjusted basis immediately after acquisition of all qualified property.”7 I think it fair to say that paragraph (2) with its two subparagraphs is probably the most important part of the definition as it gives rise to a phase out to be illustrated in subsequent examples provided below. Essentially though, ignoring the magnitude of REIT dividends and publicly traded partnership income, it states that the most significant part of the combined qualified business income amount is the lesser of two possibilities: (1) 20 percent of the qualified business income of the qualified trade or business or (2) the greater of two further possibilities (i) 50 percent of W-2 wages or (ii) the sum of 25 percent of W-2 wages and 2.5 percent of the unadjusted basis of qualified property.8 The subparagraph 2(B) above does not apply if the taxable income of the taxpayer does not exceed the threshold amount of $157,500 (200 percent of such amount in the case of a joint return).9 One of the more difficult parts of the statute is subparagraph (b)(3)(B), which provides a modification to the limit based on taxable income.10 So if the thresholds are not exceeded by $50,000 (taxable income of $207,500), or $100,000 in the case of a joint return (taxable income of $415,000), and if the W-2 wages/qualified property limit amount is exceeded by 20 percent of the taxpayer’s qualified business income for the trade or business, then such qualified business income amount is reduced in the following manner: Subtract the qualified trade or business W-2 wages/qualified property limit from the amount that is 20 percent of the taxpayer’s qualified business income from

4 “Every deduction from gross income is allowed as a matter of legislative grace, and only as there is clear provision therefor can any particular deduction be allowed, and a taxpayer seeking a deduction must be able to point to an applicable statute and show that he comes within its terms.” White v. United States, 305 U.S. 281, 292 (1938) 5 Note that the deduction for publicly traded partnerships and real estate investment trusts are determined without regard to the wage and asset-based parameters. Also, the deduction for the latter is determined without regard to whether the REIT’s income is effectively connected with a United States trade or business or even if it includes the type of investment income that is excluded from Code Sec. 199A eligibility for ordinary pass-through businesses or for publicly traded partnerships. 6 To what extent will these modifications in the calculation of the deduction stimulate wage growth and capital investment? These parameters also will increase the requirements of K-1 Schedule reporting for partnerships and S corporations. 7 The sale of property before the end of the taxable year may reduce the magnitude of the section 199A deduction since the definition of qualified property requires that such property be “held by, and available for use in,” the business “at the close of the taxable year” in which the pass-through deduction would be claimed. 8 I am convinced to an absolute certainty that Congressional legislative draftsmen retire to the local bar and grill on an early Friday evening to assess whether or not they have succeeding in converting what appears simplistic at first blush but in truth is inherently complicated to statutory language that is understood by the cognoscenti alone. “An inevitable feature of any bright-line statute or regulation is that, no matter where the line may be set, some situations that fall outside the line will closely resemble other situations that fall inside it. Some observers find that outcome anomalous and argue that a bright-line approach is inferior to a statement of broad principles. But the legislative draftsman who chooses to suppress marginal anomalies by resorting to generalized statements of principle will pay a cost in terms of predictability. The choice between these two drafting approaches is a matter of judgment; an experienced legislative draftsman would never write a bright-line constitutional “due process” clause, nor would he provide, in a business corporation act, for a ‘reasonable period’ of notice for a shareholder’s meeting.” Company Governance Under Florida’s New Limited Liability Company Act, Barbara Ann Banoff, Florida State University Law Review, Fall 2002 9 Subject to an inflationary adjustment in taxable years beginning after 2018. 10 I.R.C. §199A(b)(3)(B): “Phase-in of limit for certain taxpayers. (i) In general. If— (I) the taxable income of a taxpayer for any taxable year exceeds the threshold amount, but does not exceed the sum of the threshold amount plus $50,000 ($100,000 in the case of a joint return), and (II) the amount determined under paragraph (2)(B) (determined without regard to this subparagraph) with respect to any qualified trade or business carried on by the taxpayer is less than the amount determined under paragraph (2)(A) with respect such trade or business, then paragraph (2) shall be applied with respect to such trade or business without regard to subparagraph (B) thereof and by reducing the amount determined under subparagraph (A) thereof by the amount determined under clause (ii). (ii) Amount of reduction. The amount determined under this subparagraph is the amount which bears the same ratio to the excess amount as— (I) the amount by which the taxpayer's taxable income for the taxable year exceeds the threshold amount, bears to (II) $50,000 ($100,000 in the case of a joint return). (iii) Excess amount. For purposes of clause (ii), the excess amount is the excess of— (I) the amount determined under paragraph (2)(A) (determined without regard to this paragraph), over (II) the amount determined under paragraph (2)(B) (determined without regard to this paragraph).”

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the trade or business, and then multiply that difference by a fraction the numerator of which is the amount by which the taxpayer’s taxable income for the tax year exceeds the relevant threshold amount $157,500 ($315,000 for a joint return), and the denominator is $50,000 ($100,0000 for a joint return).11 The definition of the deductible amount for each trade or business detailed in subsection b(2) above is modified in the case of any qualified trade or business of a patron of a specified agricultural or horticultural cooperative by reducing the amount so calculated “by the lesser of (A) 9 percent of so much of the qualified business income with respect to such trade or business as is properly allocable to qualified payments received from such cooperative, or (B) 50 percent of so much of the W-2 wages with respect to such trade or business as are so allocable.”12 It would appear that now would be an appropriate time to insert an example to illustrate the semi-arcane calculation:13 EXAMPLE 1 Pogo Possum and Albert Alligator are married.14 Albert has a qualified business that is not a specified service business (see illustration in later example). For the 2018 tax year, they file a joint return reporting taxable income of $365,000 (between $315,000 and $415,000). In that year, 20% of the qualified business income from Albert’s business is $20,000. Albert’s share of wages paid by the business in the tax year is $25,000, so 50% of the W-2 wages from the business is $12,500. (Assume that no qualified property is owned.) The $20,000 amount is reduced by 50% [($365,000 taxable income - $315,000 threshold amount)/$100,000) of $7,500 ($20,000 - $12,500), which equals $3,750 (0.50 x $7,500). Ergo, Pogo and Albert take a Code Sec. 199A deduction of $16,250 ($20,000 – $3,750).15

ASSORTED DEFINITIONS

1. Qualified REIT dividend.

The term “qualified REIT dividend” means any dividend from a real estate investment trust received during the taxable year which — a. is not a capital gain dividend, as defined in section 857(b)(3) and (B) is not qualified dividend income, as defined in section 1(h)(11) 2. Qualified publicly traded partnership income.

The term “qualified publicly traded partnership income” means, with respect to any qualified trade or business of a taxpayer, the sum of— a. t he net amount of such taxpayer's allocable share of each qualified item of income, gain, deduction, and loss (as defined in subsection (c)(3) and determined after the application of subsection (c)(4) from a publicly traded partnership (as defined in section 7704(a)) which is not treated as a corporation under section 7704(c), plus b. a ny gain recognized by such taxpayer upon disposition of its interest in such partnership to the extent such gain is treated as an amount realized from the sale or exchange of property other than a capital asset under section 751(a). 3. Qualified trade or business.

The term “trade or business” appears many times in the Internal Revenue Code but there does not appear to be an explicit definition found therein. Presumably the Groetzinger case is the most recent and thorough discussion of the issue.16 My starting point, however, when confronted by a highly factual determination demanding a definition susceptible to

11 The dedicated reader is referred to footnote 8 supra 12 I.R.C. §199A(b)(7) Subsection (g), which runs six pages, more than one-third of the entire Code Sec. 199A, is not elaborated upon herein on the assumption that a large majority of the readers have clients not engaged in a farming activity although the state of Florida has significant agricultural and horticultural production. The same subsection provides a deduction for both the cooperative [dependent upon concepts found in the repealed section 199 (income attributable to domestic production activities)] and its patrons. 13 The example appears in WK LEA with the names and numbers changed to produce a slightly different picture. Worksheets will be developed by the Internal Revenue Service to aid in the requisite calculation and such worksheets will be incorporated into the infallible tax software. 14 Obergefell v. Hodges, 191 L. Ed. 2d 953 (2015) Was it Pogo, a Euclidean adherent, who first defined two parallel lines as two lines that never intersect unless you bend one of them? The hyperbolic axiom, in one version of non-Euclidean geometry, proclaims that there exists a line l and a point P not on such l such that at least two distinct lines parallel to l pass through P. 15 WK—LEA ¶330, page 140 16 Commissioner v. Groetzinger, 107 S.Ct. 980 (1987): “The phrase ‘trade or business’ has been in §162(a) and in that section's predecessors for many years. Indeed, the phrase is common in the Code, for it appears in over 50 sections and 800 subsections and in hundreds of places in proposed and final income tax regulations. The slightly longer phrases, ‘carrying on a trade or business’ and ‘engaging in a trade or business,’ themselves are used no less than 60 times in the Code. The concept thus has a well-known and almost constant presence on our tax-law terrain. Despite this, the Code has never contained a definition of the words ‘trade or business’ for general application, and no regulation has been issued expounding its meaning for all purposes. Neither has a broadly applicable authoritative judicial definition emerged. Our task in this case is to ascertain the meaning of the phrase as it appears in the sections of the Code with which we are here concerned. “Next came Higgins v. Commissioner, 312 U.S. 212 [25 AFTR 1160] (1941). There the Court, in a bare and brief unanimous opinion, ruled that salaries and other expenses incident to looking after one's own investments in bonds and stocks were not deductible under §23(a) of the Revenue Act of 1932, 47 Stat. 179, as expenses paid or incurred in carrying on a trade or business. While surely cutting back on Flint's broad approach, the Court seemed to do little more than announce that since 1918 ‘the present form [of the statute] was fixed and has so continued; that ‘[n]o regulation has ever been promulgated which interprets the meaning of 'carrying on a business’; that the comprehensive definition of ‘business’ in Flint was ‘not controlling in this dissimilar inquiry; that the facts in each case must be examined; that not all expenses of every business transaction are deductible; and that ‘[n]o matter how large the estate or how continuous or extended the work required may be, such facts are not sufficient as a matter of law to permit the courts to reverse the decision of the Board.’ 312 U.S., at 215-218. The opinion, therefore,—although devoid of analysis and not setting forth what elements, if any, in addition to profit motive and regularity, were required to render an activity a trade or business—must stand for the propositions that full-time market activity in managing and preserving one's own estate is not embraced within the phrase ‘carrying on a business,’ and that salaries and other expenses incident to the operation are not deductible as having been paid or incurred in a trade or business. See also United States v. Gilmore, 372 U.S. 39, 44-45 [11 AFTR2d 758] (1963); Whipple v. Commissioner, 373 U.S. 193 [11 AFTR2d 1454] (1963). It is of interest to note

FALL 2018 | FLORIDA CPA TODAY

application, is to use the one espoused by Associate Justice Cardozo in the Welch case, in which the meaning of “necessary” and “ordinary” expenses paid or incurred to carry on a “trade or business” was at issue: “Here, indeed, as so often in other branches of the law, the decisive distinctions are those of degree and not of kind. One struggles in vain for any verbal formula that will supply a ready touchstone. The standard set up by the statute is not a rule of law; it is rather a way of life. Life in all its fullness must supply the answer to the riddle.”17 Internal Revenue Code Section 864(b) attempts to define trade or business within the United States in a negative manner. Here, Congress attempted to define a qualified trade or business, one eligible to avail itself of the pass through deduction, by cross referencing Section 864(c) which focuses on “effectively connected income.” Accordingly, under Section 199A(c)(3), the qualified items of income, gain, deduction, and loss, the items required to calculate qualified business income eligible for the deduction, are defined as those items of income effectively connected with the conduct of a trade or business within the United States. Put rather consequentially, does owning a single family residence subject to a triple net lease rise to the level of a “trade or business” for purposes of the section 199A deduction? My opinion is quite abbreviated: “No!” So a taxpayer’s involvement in an activity to rise to the level of a trade or business must be one with continuity and regularity. This means that a hobby or a sporadic activity would not constitute a qualified trade or business. Note also that the distinction between passive business activities and active business activities as qualified trades or business, contained in the House version of the legislation, was omitted in the Conference report.

4. Wages.

“a. I n general. The term ‘W-2 wages’ means, with respect to any person for any taxable year of such person, the amounts described in paragraphs (3) and (8)18 of section 6051(a)[Receipts for employees. Requirement] paid by such person with respect to employment of employees by such person during the calendar year ending during such taxable year. b. L imitation to wages attributable to qualified business income. Such term shall not include any amount, which is not properly allocable to qualified business income for purposes of subsection (c)(1). c. R eturn requirement. Such term shall not include any amount which is not properly included in a return filed with the Social Security Administration on or before the 60th day after the due date (including extensions) for such return.”19 5. Qualified Property.

“For purposes of this section: a. I n general. The term ‘qualified property’ means, with respect to any qualified trade or business for a taxable year, tangible property of a character subject to the allowance for depreciation under section 167— i. w hich is held by, and available for use in, the qualified trade or business at the close of the taxable year, ii. w hich is used at any point during the taxable year in the production of qualified business income, and iii. t he depreciable period for which has not ended before the close of the taxable year. b. D epreciable period. The term ‘depreciable period’ means, with respect to qualified property of a taxpayer, the period beginning on the date the property was first placed in service by the taxpayer and ending on the later of— i. t he date that is 10 years after such date, or ii. t he last day of the last full year in the applicable recovery period that would apply to the property under section 168 (determined without regard to subsection (g)[alternative depreciation system] thereof).”20

that, although Justice Frankfurter was on the Higgins Court and this time did not write separately, and although Justice Reed, who had joined the concurring opinion in Du Pont, was the author of the Higgins opinion, the Court in that case did not even cite Du Pont and thus paid no heed whatsoever to the content of Justice Frankfurter's pronouncement in his concurring opinion. Adoption of the Frankfurter gloss obviously would have disposed of the case in the Commissioner's favor handily and automatically, but that easy route was not followed. “From these observations and decisions, we conclude (1) that, to be sure, the statutory words are broad and comprehensive (Flint); (2) that, however, expenses incident to caring for one's own investments, even though that endeavor is full-time, are not deductible as paid or incurred in carrying on a trade or business (Higgins; City Bank; Pyne); (3) that the opposite conclusion may follow for an active trader (Snyder); (4) that Justice Frankfurter's attempted gloss upon the decision in Du Pont was not adopted by the Court in that case; (5) that the Court, indeed, later characterized it as an ‘adumbration’ (Snow); and (6) that the Frankfurter observation, specifically or by implication, never has been accepted as law by a majority opinion of the Court, and more than once has been totally ignored. We must regard the Frankfurter gloss merely as a two-Justice pronouncement in a passing moment, and, while entitled to respect, as never having achieved the status of a Court ruling. One also must acknowledge that Higgins, with its stress on examining the facts in each case, affords no readily helpful standard, in the usual sense, with which to decide the present case and others similar to it. The Court's cases, thus, give us results, but little general guidance.” 17 Welch v. Helvering, 54 S.Ct. 8 (1933) 18 The total amount of elective deferrals (within the meaning of section 402(g)(3)) and compensation deferred under section 457, including the amount of designated Roth contributions (as defined in section 402A). 19 I.R.C. §199A(b)(4) While the reasonable compensation paid to an S corporation shareholder/employee is not qualified business income, such wages would seem to be a part of the wages used to calculate the phase-out amounts in the statute, at least in the absence of a contrary intention to be found in the statute. 20 I.R.C. §199A(b)(6)

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...taxpayer’s involvement in an activity to rise to the level of a trade or business must be one with continuity and regularity. This means that a hobby or a sporadic activity would not constitute a qualified trade or business. — Jonathon Ingber 6. Specified agricultural or horticultural cooperative.

EXAMPLE 2 Clarence has taxable income of $177,500 of which $144,000 is attributable to a legal sole proprietorship (i.e., a specified service business) after paying wages of $59,000 to employees. Because his taxable income is less than the $207,500 threshold for specified service businesses, Clarence can claim the Code Sec. 199A deduction, but only for an applicable percentage of his qualified items of income, gain, deduction, or loss, and the W-2 wages from the legal business. (For purposes of this example, assume that no qualified property factors into the calculation.)

The term “specified agricultural or horticultural cooperative” means an organization to which part I (Tax Treatment of Cooperatives) of subchapter T (Cooperatives and Their Patrons) which is engaged (i) in the manufacturing, production, growth, or extraction in whole or significant part of any agricultural or horticultural product, or (ii) in the marketing of agricultural or horticultural products.22

Clarence has a 60% applicable percentage (1- ($177,500

SPECIFIED SERVICE TRADE OR BUSINESS

199A deduction for $17,280.24

It is difficult to understand why the Congress singled out certain types of businesses for less generous treatment under this new statutory provision. Rhetorically, why should the owner of a very successful partnership, S corporation, or sole proprietorship be entitled to a much larger deduction than the practitioner of a specified service trade or business. Initially, the statute declares that the term “qualified trade or business” means any trade or business other than a specified trade or business or the trade or business of performing services as an employee.23 But shortly thereafter in paragraph (d)(3) an exception is provided for a specified service business that does not exceed the threshold amount of $157,500 ($315,000 for a joint income tax return) plus $50,000 ($100,000 for a joint income tax return). The phase-out of this somewhat preferential treatment is dependent upon an applicable percentage, which means “100 percent reduced by the percentage equal to the ratio of (i) the taxable income of the taxpayer for the taxable year in excess of the threshold amount, bears to (ii) $50,000 ($100,0000 in the case of a joint return).” And, of course, this is the perfect opportunity for another example:

Besides the illustrated treatment for a specified service trade or business, there are other types of trade or business income that do not qualify at all for the qualified business income deduction, such as the compensation paid to an employee, the guaranteed payments paid to partners for services,25 and the “reasonable compensation paid to the taxpayer by any qualified trade or business of the taxpayer for services rendered with respect to the trade or business.”26

- $157,500/$50,000) = 1 – 20,000/50,000 = 1 – 0.4 = 0.6). In determining includible qualified business income, Clarence takes into account 60% of $144,000, or $86,400. In determining the includible W-2 wages, Clarence takes into account 60% of $59,000 or $35,400. Clarence calculates the deduction by taking the lesser of: 20% of $86,400 ($17,280) or 50% of $35,400 ($17,700). Clarence can take a Code Sec.

ADDITIONAL RULES

1. F or individuals, the section 199A is not allowed in computing adjusted gross income; rather it is deductible in computing taxable income. Additionally, the qualified business income deduction is available whether the individual taxpayer itemizes her deductions or takes the greatly increased standard deduction, as the deduction is also not an itemized deduction.27 2. T he deduction under section 199A is temporary and will expire for taxable years beginning after December 31, 2025. 3. A specified service trade or business is of a type found in I.R.C. Sec. 1202(e)(3)(A): “[A]ny trade or business involving

21 The retroactive change made by the Consolidated Appropriations Act of 2018, enacted in March 2018, was not reflected in the Wolters Kluwer’s Tax Cuts and Jobs Act: Law, Explanation & Analysis. Accordingly, the updated version found in Thomson Reuter’s RIA Checkpoint was resorted to. 22 I.R.C. §199A(g)(4) Note that the definition does not include an organization providing supplies, equipment, or services to farmers or to the organizations engaged in the activities described in the definition above. 23 I.R.C. §199A(g)(4) Note that the definition does not include an organization providing supplies, equipment, or services to farmers or to the organizations engaged in the activities described in the definition above. 24 WK—LEA ¶ 330, page 141 Note that there is no need for a further reduction since the wage amount is greater than the qualified business income amount. 25 Treasury regulations will be provided for payments to partners under I.R.C. §707(a). Such payments are paid to partner in other than her capacity as a partner. Guaranteed payments to a partnership under I.R.C. §707(c) are made to a partner in the partner’s capacity as a partner except for purposes of section 61(a) (relating to gross income) and, subject to section 263, for purposes of section 162(a) (relating to trade or business expenses) 26 I.R.C. §199A(c)(4)(A) Presumably the wages of an S corporation shareholder will nevertheless be taken into account in calculating the phase-out of the deductible amount based on the wage and qualified property limitations. 27 I.R.C. §63(b) and (d)

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the performance of services in the fields of health, law, … accounting, actuarial science, performing arts, consulting, athletics,28 financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of 1 or more of its employees [or owners].”29 The definition is further expanded to include “the performance of services that consist of investing and investment management, trading, or dealing in securities (as defined in section 475(c)(2)), partnership interests, or commodities (as defined in section 475(e)(2)).”30 4. I f the net amount of qualified income, gain, deduction, and loss is a negative amount, the loss is carried over to the next succeeding taxable year, which means that the carryover is for an indefinite period.31 Consequently, there is a corresponding modification in the calculation of a net operating loss, which states that a deduction under section 199A shall not be allowed.32 5. “ Qualified items of income, gain, deduction, or loss do not include— 1. i tems of short-term capital gain or loss, or long-term capital gain or loss; 2. d ividends, income equivalent to a dividend, or payments in lieu of dividends; 3. i nterest income which is not properly allocable to a trade or business; 4. t he excess of gain over loss from commodities transactions, other than those entered into in the normal course of the trade or business or with respect to stock in trade or property held primarily for sale to customers in the ordinary course of the trade or business, property used in the trade or business, or supplies regularly used or consumed in the trade or business; 5. t he excess of foreign currency gains over foreign currency losses from Code Sec. 988 transactions, other than transactions directly related to the business needs of the business activity; 6. n et income from notional principal contracts, other than clearly identified hedging transactions that are treated as ordinary (i.e., not treated as capital assets); 7. a mounts from an annuity not received in connection with the trade or business; or

8. i tems of deduction or loss properly allocable to an amount described in (1) - (7) immediately above.”33 6. T he deduction for qualified business income is limited to income taxes. Accordingly, section 199A has no effect on the self-employment tax. 7. F or the calculation of alternative minimum taxable income, qualified business income is computed without any of the adjustments or preferences contained within Internal Revenue Code sections 56 through 59, inclusive. 8. A s estates and trusts are non-corporate taxpayers, such entities are eligible for the section 199A deduction. The allocation of W-2 wages and unadjusted basis of qualified property will be divided between fiduciaries and beneficiaries in a manner similar to the manner of allocation prescribed by repealed section 199 for the domestic production activity income deduction. 9. I n applying the deduction for qualified business income, the substantial understatement penalty is modified by inserting five percent in lieu of ten percent.34 10. T he Secretary of the Treasury is directed to promulgate regulations for applying the qualified business income deduction to acquisitions, dispositions, short taxable years, and to require and restrict the allocation of items of income, gain, deductions, and losses and wages, providing appropriate reporting requirements, and the application of the section to tiered entities. EXAMPLE 335 (MORE COMPREHENSIVE) Isabella and Isaiah are married. They file a joint return on which they report taxable income of $355,000 (determined without regard to the Code Section 199A deduction). Isaiah is a partner in JKL Partnership, a qualified trade or business that is not a specified service business. Isabella operates Bell’s Economic Consulting, a sole proprietorship, a qualified trade or business that is a specified service business. They also received $13,000 in qualified REIT dividends during the tax year. Isabella and Isaiah determine their Code Sec. 199A deduction for the tax year as follows (for purposes of this example, assume that no qualified property factors into the calculation):

28 Entertainers and athletes come within the ambit of specified services. However, income consisting of royalties for songs and endorsements are not for services. In Goosen v. Commissioner, 136 T.C. 547 (2011), the court held that receipt of royalties is not for services, and the receipt of such royalties would constitute a trade or business. To that extent, then, the disallowance of the qualified business income deduction for specified services would be avoidable. In addition, royalties are not included in investment income, which is not eligible for the deduction. 29 Note that engineering and architecture have been removed from the narrow definition of a specified service trade or business. One should be more circumspect when choosing the codes from the North American Industry Classification System. 30 I.R.C. §199A(d)(2)(B) Section 475 covers the mark to market accounting method for dealers in securities. 31 I.R.C. 199A(c)(2) 32 I.R.C. §172(d)(8) 33 WK—LEA ¶ 330, page 144 The qualifying words of the listed items related to what constitutes a business as opposed to an investment activity. 34 I.R.C. §6662(d)(1)(C) 35 Illustrating application of the phase-out rules of the section to both qualified trades and businesses that are not specified service businesses and that are specified service businesses.

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Isaiah’s allocable share of qualified business income from the JKL Partnership is $280,000, so 20% of the qualified business income from JKL is $56,000 ($280,000 x 0.20). Isaiah’s allocable share of wages paid by JKL is $95,000, so 50% of the W-2 wages from the business is $47,500 ($95,000 x 0.5). Isabella and Isaiah’s taxable income is above the $315,000 threshold amount for a joint return, so the wage limit for JKL is phased in. Accordingly, the $56,000 amount is reduced by 40% ($355,000 - $315,000/$100,000) of the difference between $56,000 and $47,500, or $3,400 (($56,000 - $47,500) x 0.4). Isaiah’s deductible amount for the JKL Partnership is $52,600 ($56,000 - $3,400). Isabella’s qualified business income and W-2 wages from Bell’s Economic Consulting are $310,000 and $140,000, respectively. Because their taxable income is less than the $415,000 joint-return threshold for specified service businesses, Isabella and Isaiah can claim the Code Sec. 199A deduction for Isabella's consulting business, but only for an applicable percentage of the qualified items of income, gain, deduction, or loss and the W-2 wages from that business. Further, because their taxable income is above the $315,000 threshold amount for a joint return, the exclusion of qualified business income and W-2 wages from Isabella’s consulting business are phased in. Isabella has an applicable percentage of 60% (1- ($355,000 – 315,000)/$100,000 = 1 -$40,000/$100,000 = 1 – 0.4 = 0.60). In determining includible qualified business income, Isabella takes into account $186,000 ($310,000 x 0.6). In determining includible W-2 wages, Isabella takes into account $84,000 ($140,000 x 0.6). Isabella calculates the deductible amount for her consulting business by taking the lesser of 20% of her $186,000 of includible qualified business income ($37,200) or 50% of her $84,000 of includible W-2 wages ($42,000). Although Isaiah and Isabella’s taxable income is above the threshold amount for a joint return, the wage limit is not binding because the 20% of includible qualified business income of the consulting business ($37,200) is less than 50% of includible W-2 wages ($42,000). Isabella’s deductible amount for Bell’s Economic Consulting is $37,200.

Isabella and Isaiah’s combined qualified business income amount of $92,400 which consists of the $52,600 deductible amount for the JKL Partnership, plus the $37,200 deductible amount for Bell’s Economic Consulting, and plus 20% of the $13,000 qualified REIT dividend ($2,600). However, their Code Sec/ 199A deduction for the year is limited to $71,000, which is 20% of their $355,000 taxable income, because that amount is less than their qualified business income amount for the year.36 OTHER THOUGHTS STIMULATED BY THIS DISTINCTIVELY UNIQUE BUSINESS DEDUCTION

A. A potential employer, hoping to reduce the costs of treating a worker as an employee, having extolled the benefits of self-employment (“all those ordinary and necessary expenses paid or incurred to carry on a trade or business”), ignoring the exposure to the higher self-employment tax, with the concomitant reduction of employer employment taxes and costly fringe benefits, particularly health insurance premiums, has hoped to persuade the worker to become an independent contractor.37 Those past attempts at persuasion ring truer today with the temporary repeal of deductible unreimbursed employee business expenses under a non-accountable plan and the availability of the new 20 percent qualified business income deduction. Admittedly, the peculiar facts may support such a decision, but the loss of employee status would typically come at too high a cost. In addition, the loss of protection under both federal and state anti-discrimination statutes would add to such a prohibitive cost.38 B. T he choice of entity decision has now become somewhat less than the obvious “slam dunk”. The repeal of the General Utilities doctrine by the Tax Reform Act of 1986 made the selection of a subchapter C corporation very unlikely.39 Today, following the enactment of the Tax Cuts and Jobs Act of 2017, such a corporation would

36 WK—LEA ¶ 330, page 142. 37 The GIG Act (the New Economy Works to Guarantee Independence and Growth) would provide a more easily applied safe harbor: “Objective Tests: The safe harbor focuses on three areas that are intended to demonstrate the independence of the service provider from the service recipient and/or the payer based on objective criteria, rather than a subjective facts-and-circumstances analysis: (1) The relationship between the parties (e.g., job-by-job arrangement, the service provider incurs his own business expenses, the service by which provider is not tied to a single service recipient); (2) The location of the services or the means the services are provided (e.g., the service provider has his own place of business, does not work exclusively at the service provider’s location, provides his own tools and supplies); and (3) A written contract (e.g., stating the independent-contractor relationship, acknowledging that the service provider is responsible for his own taxes, providing the service recipient’s reporting and withholding obligations). While the so-called GIG Act would have provided an essential safe harbor, no such certain classification of a worker is found in the new statutory deduction. The statute was not enacted. Frankly, a statute that favors classification of a worker as an employee rather than as an independent contractor would be a better alternative. Along the same lines, the Congress should modify the self-employment tax exemption for a limited partner under I.R.C. §1402(a)(13) to expose members of a limited liability company to that tax. 38 National Labor Relations Act, Workers’ Compensation, Unemployment Insurance, Title VII of the Civil Rights Act (gender, religion, ancestor, race, and color), Age Discrimination in Employment Act, Occupational Safety and Health Act, Family Medical Leave Act, Fair Labor Standards Act, Americans with Disabilities Act, and others). In addition, the use of a mandatory arbitration clause prohibiting the institution of a class action is an existing tool for keeping workers classified as employees in check. In addition, for existing employees, any change in worker classification may make Section 530 relief under the Revenue Act of 1978 unavailable because of inconsistent treatment. 39 In the preface of the fifth edition to their classic treatise on corporate taxation professors Boris Bittker and James Eustice paid homage to their colleague, Gerald Wallace. “Jerry”, in the inaugural edition of the Tax Law Review in 1944, had stated that the General Utilities case had been wrongly decided. In the Tax Reform Act of 1986 Congress signaled their agreement with Professor Wallace albeit for revenue neutrality purposes. The function of I.R.C. § 1374 (Tax imposed on certain built-in gains) was to buttress the repeal of the doctrine spawned by the case. The length of the 10-year “recognition period” (now permanently reduced to five years) as well as the authorization of legislative regulations by I.R.C. § 337(d) are both indicative of the exceedingly strong legislative policy underlying the repeal of such a hoary line of cases [see Court Holding Co. (65 S. Ct. 707) and Cumberland Public Service Co. (70 S. Ct. 280)]

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operate at a relatively low flat rate of 21 percent, delaying the ultimate tax at liquidation (enjoying the deferral of tax and the accompanying benefit of the time value of money for many years) at a favorable capital gains rate. If the shareholder were unable to wait for the day of liquidation, the distribution of qualified dividends at the same preferential rate would make that “second” tax a bit more palatable. However, liquidation in the presence of assets not appearing on the balance sheet such as goodwill and self-created intellectual property would bring home the unfavorable tax consequences of the doctrine’s repeal.40 Frankly, it seems the only factor favoring the selection of an S corporation is the ability to reduce both parts of the Federal Insurance Contribution Act tax. Given the abuse of unreasonably low compensation among high earning professionals, presumably the savings would relate to the hospital insurance (Medicare tax) portion only. The author continues to be a pure sole proprietor thankful for his collection of social security benefits for over a decade. "Pure” in the sense that he does not avail himself of the alleged liability protection of a single member limited liability company. Performing all the functions of the tax preparation process, the occurrence of negligence could only be traceable solely to the sole proprietor. Consequently, to my mind, the best choice remains one of the many varieties of state partnerships subject to the complexities of subchapter K. As long as 45 pages of interpretative regulations under section 1.704-1(b) are respected, special allocations of income, gain, deduction, and loss among the partners is permissible. The ability to use third party debt as a part of a partner’s basis in her partnership interest is also an extremely important tax attribute. If one decides to convert a C corporation to such a partnership, however, the price of the repeal of the General Utilities doctrine must be paid. C. W hile the definition of combined qualified income described previously is not the essence of simplicity, it should be noticed that when the wage and the unadjusted basis of depreciable tangible property is greater than 20 percent of qualified business income, there is no need for a phased in reduction of the deduction under I.R.C. §199A(3)(B)(ii & iii) dependent on the extent to which taxable income exceeds the statutory thresholds. So while

the final statute does not contain a capital percentage, generally 30 percent, of net business income as contained in the original House version of the legislation, capital expenditures are hardly irrelevant. D. T here does not appear to be any acceptable rationale for removing architects and engineers from the specified service trade or business category. THE APPEARANCE OF REFORM41

Albert Hunt, then Washington D.C. bureau chief for the Wall Street Journal, wrote in an introduction to Showdown at Gucci Gulch: “The Tax Reform Act of 1986 was the best political story of its time, full of suspense, and with a vivid cast of characters. It marked the most significant achievement of the second Reagan administration. Indeed, in the history of the Republic, very few pieces of legislation have more profoundly affected so many Americans.” “To be sure, the way this legislation was fashioned, careening between extinction and dramatic revival, wasn’t a very neat or efficient process; the dance of legislation rarely is. In the last century Bismarck observed that two things one never should watch being made are sausage and legislation. Compared to the Tax Reform Act of 1986, a sausage factory is tidy and orderly.” “These two bright, industrious young journalists (Jeffrey Birnbaum and Alan Murray) genuinely appreciate and believe in the political process and politicians, as well as understand that an informed public is the centerpiece of democratic government.” In the first chapter of the book, entitled “Showdown”, the two authors write: “The clerk slowly calls out the names of the senators: “The last two Democrats cast their votes, and a flush comes over Chairman Packwood’s face. His dramatic proposal is not only going to win, it is going to win unanimously. No one expected that. No one thought that his committee—of all committees—could muster even a majority for such a radical bill, must less unanimous support. The chairman is the last to vote, and as he does, tears begin to well up in his eyes. He gives a slow, solemn aye.

40 The highest effective income tax rate on business income earned by a C corporation and distributed as dividends to individual is 36.8% [21% + (20% * (100% - 21%)] With a fully operative qualified business income deduction, the highest effective rate on business income earned by an individual from a pass-through business is 29.6% [37% * (100% - 20%)] 41 “Tax act after tax act failed to produce a fair, simple, and efficient tax code. The recently enacted Tax Cuts and Jobs Act is simply another failure to enact tax reform that provides a fair, simple, and efficient tax code.” Professor Martin J. McMahon, Jr. in the 2018 Erwin N. Griswold Lecture Before the American Tax Counsel: “Tax Policy Elegy”

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...transforming a system predicated on worldwide taxation for citizens, residents, and domestic corporations to one approximating a territorial system to know that reform has indeed come at least to the international arena.— Jonathon Ingber “Senator Chafee rises quickly to his feet and begins to applaud the chairman. Other senators and staff aides follow suit. Even the lobbyists in the back of the room, unable to avoid the sweep of sentiment, join in the applause. Packwood grabs the hands of Dole and Long and thrusts them into the air in a show of victory. Then he looks down at his desk, choked with emotion.”

Having watched42 Chairman Brady of the House Ways and Means Committee and Chairman Hatch of the Senate Finance Committee for hours on end while the Tax Cuts and Jobs Act elicited much controversy during the two months of hearings, the sense of accomplishment with no Democratic support certainly did not amount to a replay of the tax reform described by Birnbaum and Murray. Yet it would be unfair to state that the most recent Congressional legislative product is entirely devoid of reform. One only has to peruse the legislative changes to subchapter N (Tax Based on Income From Sources Within or Without the United States) and related sections, transforming a system predicated on worldwide taxation for citizens, residents, and domestic corporations to one approximating a territorial system to know that reform has indeed come at least to the international arena. JONATHON INGBER, CPA, LL.B & MST is employed with Kwal + Oliva, CPAs, Tax Department. He is responsible for conducting tax research and drafting all tax memoranda. Ingber has been an FICPA outstanding seminar leader for many years.

42 The Cable Satellite Public Affairs Network [C-SPAN] certainly provides much late night entertainment for the curious citizen.

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Wayfair Decision — What we know now AUTHOR (S): FICPA STATE TAX COMMITTEE MEMBERS

South Dakota vs. Wayfair was decided June 21, 2018 and has significant implications for the imposition of sales tax on remote sellers. A few members of the FICPA State Tax Committee have joined together to answer some questions on the impact of the decision. Does the Wayfair decision mean that businesses should start collecting sales tax on taxable sales tax to purchasers in every state starting June 21, 2018?

Not necessarily. Although the Supreme Court upheld South Dakota’s sales tax law, currently not all states have similar economic nexus sales tax registration and filing requirements. Approximately

twelve states had laws similar to South Dakota’s but delayed enforcing them until the Wayfair case was decided and another five or so had similar laws on their books that were to take effect beginning on or after July 1, 2019. Following the Wayfair decision, a couple states, notably New Jersey, convened special legislative sessions to

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approve bills adopting economic nexus provisions similar to South Dakota’s. Other states are currently reviewing the Court’s ruling to consider what action to take; while others have already begun considering draft bills submitted by state legislators for the upcoming legislative session (i.e., California). In any event, it is advisable for businesses that are making sales into a state where they lack physical presence (“remote sellers”), not just online retailers, to review their sales reports and identify the states in which they have sales that exceed the economic nexus thresholds of the various jurisdictions with economic nexus provisions. As of now, the lowest threshold in states with a remote seller type law is $10,000 of in-state sales (e.g., Minnesota and Pennsylvania) with the remaining states having a sales threshold of $100,000 or more. The majority of the states with remote seller laws require the registration and collection of sales tax if the seller’s gross revenue from the sales in the previous calendar year or current calendar year exceeds the economic nexus thresholds. So until that threshold is met or exceeded, registering for sales tax in a given state is not mandatory, but activities and sales should be closely monitored. — Kenneth Rios, Principal, Kaufman Rossin

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Has the Florida Department of Revenue addressed the Wayfair Decision?

In addressing the Wayfair decision, it's important to understand the Florida's Department of Revenue organizational framework. The agency head reports to the Governor and Cabinet. The FDOR annually develops legislative proposals, which are submitted to the Governor and Cabinet for approval, before presentation to the Florida Legislature. The official position of the FDOR is the agency does not create TAX Policy, which is the responsibility of elected officials. Currently, the sales tax provisions do not contain economic nexus thresholds and have not been updated since the 1992 U.S. Supreme Court decision in Quill Corp. v. North Dakota. In my opinion, the FDOR is reviewing the decision and will provide technical and legal assistance to the lawmakers at the appropriate time, but will wait until the lawmakers request their assistance. There may also be some consideration by the lawmakers on how to protect Florida based businesses from the overreach of other states seeking to collect taxes from non-resident businesses. The Wayfair decision has created many uncertainties which will need careful review by local and federal elected officials, including nexus provisions for other taxes beyond sales/use taxes. Further, at the time of submitting this article, we are in the middle of a mid-term election cycle, which has been unpredictable, at best. — Glenn Bedonie, Owner, Glenn Bedonie Consulting CPA PA & Former Florida Department of Revenue Director of Technical & Dispute Resolution and Director of Audits

Does the Wayfair decision apply retroactively?

As much turmoil as the Wayfair decision has caused, nothing is more problematic than the potential for states to retroactively assert nexus against companies that have relied on the physical presence bright line rule of Quill for years, if not decades. Very few companies could survive having to pay 6% to 9% of their revenues for each years’ sales into remote states multiplied times however many years the company was in existence, plus penalties and interest. As a general principle of judicial interpretation, rules of law announced by a court are presumed to have retroactive application.1

All states, including Florida, have officially or unofficially pronounced that Wayfair will not be applied retroactively. Before you take a collective sigh of relief, the only thing that truly stops a state from retroactively applying the Wayfair decision is whether or not the state already had a nexus law that was limited by Quill. For example, in 1987 Florida enacted section 212.0596, F.S., taxing all mail order sales made into the state, which was limited by National Bellas Hess and Quill. Many other states have similar laws that would have devastating effects if applied retroactively after the Wayfair decision.

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1 See, Kay, Richard, "Retroactivity and Prospectivity of Judgments in American Law" (2014). Articles and Papers. NicklausCHF-294 Florida CPAFaculty Today March 2018-1.indd 2 287. http://digitalcommons.uconn.edu/law_papers/287 2/15/18 1:09 PM

FALL 2018 | FLORIDA CPA TODAY

As a prime example of why businesses and taxpayers should not simply presume that states will honor their unofficial policy of not applying Wayfair retroactively, it only took Florida six weeks from the Wayfair decision to argue in court that Wayfair should be applied retroactively. On August 9, 2018, in Global Hookah Distributors Inc. v. State of Florida, Department of Business and Professional Regulation, Case No. 2017-CA-1623 (Fla. 2nd Cir.) (a tobacco wholesale tax nexus case), the Department of Business and Professional Regulation argued in a response brief that: “Wayfair controls the outcome of this matter, and there is no reason that case should not be applied retrospectively as well as prospectively.” — James Sutton, CPA, Esq., Moffa, Sutton, & Donnini, PA.

What impact does Wayfair have on a company’s historical nexus exposure in a state that has imposed an economic nexus standard for sales tax?

Wayfair does not change a company’s historical nexus exposure. However, it does accelerate the need for companies with historical exposure to review their overall state tax situation and consider the need for any mitigation, such as participating in a state’s Voluntary Disclosure Agreement (VDA). Companies with a historical exposure in a state are generally eligible to participate in that state’s VDA program for any tax type they have never previously filed/paid there (e.g. sales, income, franchise, gross receipts). The primary eligibility criteria for most states’ VDA programs is that the company must never have had any

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prior contact with the state, including notices, registrations, questionnaires, etc., regarding the specific tax type. As a result, if a company chooses to register and to collect sales tax as a result of Wayfair that company would likely forfeit its ability to participate in that state’s VDA program for sales tax purposes. If the company had historical nexus exposure in that state, such as by having travelling employees who created physical presence there, the act of registering might trigger a sales tax audit for prior periods and expose the company to liability for tax, penalty and interest. If a VDA is not pursued and no returns are filed, the statute of limitations remains open indefinitely. Furthermore, registering in a state could bring the entire state tax position of a company onto the state’s radar screen. While registering in a state for sales tax purposes may not technically disqualify a company from participating in VDA for other state tax types (income tax, gross receipts tax, etc.), it does significantly raise the likelihood that the state may trigger an audit for those tax types. This is particularly significant because, even though economic nexus was not a valid concept for sales tax purposes until Wayfair was decided, economic nexus has been used by many states for income and franchise tax purposes in prior years. In summary, before registering to collect sales tax in a new state because of Wayfair, sellers should perform due diligence to confirm that they did not have historical sales tax nexus in that state for prior periods, or nexus for other tax types. — Gretchen Whalen, SALT Principal, CliftonLarsonAllen LLP

2/15/18 1:09 PM

Businesses must consider whether the Wayfair decision will impact their evaluation of potential loss contingencies, and should closely monitor for subsequent legislative changes in each state. — Chris Oatis What impact if any does Wayfair have on financial statement reporting?

As a result of the Wayfair decision, there are a number of financial reporting implications that businesses will be required to evaluate. From a sales and use tax perspective businesses will apply the accounting guidance in ASC 450-20, Contingencies: Loss Contingencies, to any potential sales and use tax obligations that may result from the ruling. Businesses must consider whether the Wayfair decision will impact their evaluation of potential loss contingencies, and should closely monitor for subsequent legislative changes in each state. While the immediate focus is on internet retailers engaged in e-commerce activities, it is important to note that there may also be a significant impact on many other businesses, including service providers. Additionally, the Wayfair decision implications are broad enough to have an impact for income tax purposes. The accounting guidance in ASC 740, Income Taxes, may also need to be evaluated as a result of the ruling. Many states have various standards that impose income tax nexus regardless of physical presence. Businesses have relied on possible constitutional challenges to these types of standards to support a non-filing position, which now may no longer be valid. Businesses can continue to rely upon Public Law 86-272, though, which is not immediately impacted as a result of the Wayfair decision.

As businesses evaluate their income tax nexus positions, the guidance in ASC 740-10 could result in a significant financial statement impact. Interestingly, Wells Fargo included large disclosures within its second-quarter earnings announcement, related to exposures resulting from the Wayfair decision. While each business has different facts and circumstances, sellers of goods and services, having no physical presence and not filing tax returns in a particular state, will need to evaluate all of their nexus positions and the related financial statement implications under ASC 450-20 and ASC 740-10. — Chris Oatis, SALT Managing Director, Grant Thornton LLP Are foreign businesses without any connection to the US other than exceeding an economic nexus threshold now required to collect sales tax?

It is important to note that states are generally not bound by tax treaties, and bilateral tax treaties generally do not otherwise apply to non-income taxes at the state level. Therefore, non-U.S. company with customers in the United States, are faced with potential collection and filing responsibilities if the company meets the sufficient dollar/transaction threshold in a particular state. This would apply even if the company does not have a permanent establishment (PE) in that state. When the non-U.S. company’s sales meet the test for establishing a meaningful and substantial presence

in states, it would need to collect and remit sales tax in that jurisdiction. With economic nexus laws, states will now be able to enact or enforce sales or transaction threshold and compel more companies outside of their borders to collect tax on sales made to in-state customers. It is important to note that while the Commerce Clause of the U.S. Constitution prohibits states from imposing excessive burdens on interstate commerce without Congressional approval, the Supreme Court has demonstrated its authority to “formulate rules to preserve the free flow of interstate commerce” when Congress fails to enact legislation. In its option in Wayfair, the court notes that the dollar/transaction threshold satisfies South Dakota’s burden to establish economic nexus and impose tax on businesses that are “fairly related to the services provided by the state,” including “the benefits of a trained workforce and the advantages of a civilized society”. The factor of demonstrating a fair relationship between the tax imposed and the services provided by a state can be easily applied to foreign companies that conduct business in U.S. states. Therefore, foreign businesses must consider how the Wayfair decision will affect their sales and their profits, and they must take steps to comply with state-level taxation going forward. This may involve assessments of the volume of their transactions in each state, an understanding of and a method for applying the sales and use tax regimes in each of the states, and developing communication with customers about the addition of sales tax on future purchases. — Karen Lake, State and Local Tax Director, Berkowitz Pollack Brant Advisors and Accountants FALL 2018 | FLORIDA CPA TODAY

ACA — Employer Provisions Still Apply BY ELLEN L. JOSEPH

Attempts to repeal and replace the Patient Protection and Affordable Care Act (ACA) started almost immediately after its enactment in 2010. On December 22, 2017, President Trump signed into law the Tax Cut and Jobs Act (TCJA), which eliminated the penalty provisions of the “individual mandate.” However, the “employer mandate” remains law. The individual mandate is the requirement that individuals and their dependents maintain minimum essential coverage (MEC)1 throughout the calendar year.2 Under the TCJA, the individual shared responsibility payment for failing to have MEC is reduced to zero for years beginning after December 31, 2018. Internal Revenue Code Section 4980H, shared responsibility for employers regarding health coverage, was not amended by the TCJA. This employer mandate applies to applicable large employers (ALEs), defined below. An ALE has an average of 50 or more full-time and fulltime equivalent employees during the preceding calendar year. Full-time and full-time equivalents are determined based upon hours of service during each month of the preceding calendar year. Employers with sufficient common ownership are aggregated together as a single employer for purposes of §4980H. Generally, partnerships and proprietorships under common control, controlled groups of corporations and affiliated service group members are aggregated as a single employer for employer shared responsibility purposes.3 Often employers or their advisers erroneously assume that because an individual employer entity does not have at least 50 employees on payroll, then they are not an ALE. For example, assume that Joe Restaurateur has two restaurants, each owned by Joe in separate S corporations, each with

35 full-time and full-time equivalent employees in 2017. Because of their common ownership, the restaurants must be aggregated and together are an ALE in 2018, as they have a total of 70 full-time and full-time equivalent employees. In this example, each S corporation is an ALE member. Once an employer (or employer group) has determined that it is an ALE, it is required to offer its full-time employees and their dependents the opportunity to enroll in MEC. The MEC offered must provide minimum value and must be affordable.4 Failure of an ALE to offer coverage to at all but five percent (or, if greater, five) of its full-time employees could result in an Employer Shared Responsibility Payment (ESRP). This ESRP is often referred to as the “A” penalty, in reference to Section 4980H(a). A second ESRP, often referred to as the “B” penalty, could occur if an ALE offers all but five percent (or, if greater, five) of its full-time employees an opportunity to enroll in MEC but the coverage offered did not provide minimum value or was unaffordable.

Minimum essential coverage is health insurance that meets certain statutory criteria and is listed in Internal Revenue Code §5000A(f) Internal Revenue Code §5000A(a) 3 Internal Revenue Code §4980H(c)(2)(C)(i) 4 Treasury Regulations §54.4980H-4(b)(1) and §54.4980H-5(a) 1

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Both the “A” and “B” penalties are determined on a calendar monthly basis. The “A” penalty is $2,000 per full-time employee per year, adjusted annually for inflation; the penalty rate for 2018 is $2,320 or $193.33 per month.5 The “B” penalty is $3,000 per full-time employee per year, adjusted annually for inflation; the penalty rate for 2018 is $3,480 or $290 per month.6 An ESRP is triggered when a full-time employee has enrolled in a qualified health plan through the insurance marketplace for a calendar month and received a premium tax credit or cost-sharing reduction. When calculating the “A” penalty, the number of full-time employees of an ALE during any month is reduced by 30. Transition relief was available to eligible employers for calendar 2015, and for fiscal year insurance plan years that started in 2015. Under this transition relief, the reduction is increased to 80 from 30. It is important to note that this reduction is allocated among ALE group members. For example, if there are two entities that are members of the same ALE, the 30-employee reduction is shared between the two entities ratably based upon the number of full-time employees employed by each. When calculating the “B” penalty, the total penalty assessed cannot exceed what would otherwise have been the “A” penalty for that month. Thus, if the ALE had a total of 25 full-time employees, offered MEC to all of them and one of those employees received a premium tax credit, the “B” penalty would still be zero because the reduction of fulltime employees amount of 30 exceeds the actual full-time employee count used to calculate the “A” penalty. ALEs are also required to report to their full-time employees and Internal Revenue Service their offers of MEC (or that no coverage was offered) on Form 1095-C and transmittal Form 1094-C. Form 1095-C include a significant amount of information, often on a monthly basis, for a reporting year. The data reported includes whether or not MEC was offered, the type of MEC offered (employee only, family coverage, etc.), the employee’s share of the monthly cost of lowest cost employee-only coverage, safe harbor codes for the employer. The safe harbor codes are especially important for employers for months where no insurance coverage was offered to the employee or the employee chose not to enroll in the coverage offered. 5 6

An ALE has an average of 50 or more full-time and full-time equivalent employees during the preceding calendar year. Full-time and full-time equivalents are determined based upon hours of service during each month of the preceding calendar year. While Form 1095-C are now familiar to most tax practitioners, few are familiar with Form 1094-C, the transmittal. Form 1094-C includes information about the ALE member group, full-time employee counts by month, whether or not the ALE offered MEC to all but five percent (or, if greater, five) of its full-time employees each month, etc. This transmittal form provides information for IRS to determine whether or not an ALE member is subject to an ESRP if any of the employees to whom a Form 1095-C was issued received a premium tax credit. Beginning in early 2018, ALE members started receiving Letter 226J, preliminary calculation of ESRP owed for tax year 2015. These assessments grow quickly, especially because many ALEs did not offer any insurance to their full-time employees in 2015. There are often many ways to reduce or eliminate the proposed ESRP assessments, and ALEs should seek assistance from practitioners with expertise in this area. ELLEN L. JOSEPH is managing member of Ellen L. Joseph CPA Chartered and specializes in Internal Revenue Code § 4980H - shared responsibility for employers regarding health coverage, using proprietary software for the related reporting requirements of Forms 1094-C and 1095-C. Ms. Joseph is also Of Counsel with Sarbey, Kelly & Kaufman, LLC CPAs and is a member of the FICPA Federal Taxation and Business Technology Committees.

Internal Revenue Service Website: https://www.irs.gov/affordable-care-act/employers/employer-shared-responsibility-provisions Ibid

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Getting to Know

Karen Lake, CPA We recently asked FICPA Board Member Karen Lake, CPA, for her thoughts and insights on FICPA leadership and the state of the profession. Why did you decide to pursue accounting as a career?

I decided to pursue a career in accounting in part because the work is both challenging and interesting. Additionally, there were lots of career paths in accounting, so I knew that accounting would remaining interesting and continue to provide opportunities to learn and grow. What have you enjoyed most about being in FICPA leadership? What would you say is the most challenging part of board service?

KAREN LAKE, CPA

Engaging with individuals who are committed to an ideal that is bigger than themselves is rewarding. The most challenging aspect has been delivering hard truths. We work with a diverse group of CPA members, and while we strive to make members happy, there are times when may we may not be able to provide everything to every member. If you had to do your entire career over again, would you do anything differently?

No, because my professional opportunities enable me to bring a 360â&#x20AC;&#x201C;degree perspective to opportunities. With experience as a senior advisor at Big 4 public accounting firms, a member of corporate tax departments, and as a state auditor, my perspective allows me to understand the full range of tax issues most businesses face, and to bring practical, real-world solutions to complex business environments. What would you say are the most important challenges the FICPA faces today?

We are living in a business environment that is constantly evolving and changing, with innovative technology that continues to impact how and where we do business. These changes provide challenges but also opportunities for Florida CPAs. Additionally, we are faced with the challenge of helping members (and potential members) understand that the FICPA provides a full suite of benefits that are relevant to todayâ&#x20AC;&#x2122;s CPA. We are focusing on ensuring that the FICPA can meet the changing needs of CPAs.

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Inside the Mind of a Hacker Knowing The Motivations Can Help You Mitigate the Risk of a Breach

BY STAN STERNA, JD AND NICK GRAF, CISSP, CEH, CIPT

uccessfully avoiding a cyber threat means first understanding the mindset and motivation of cybercriminals. Not all hackers are teenagers hanging out in their parents’ basements, simply looking for something to do. Many are disgruntled, unemployed “coders” or nation-state sponsored paramilitary groups lurking on the deep web hawking their skills, exchanging tradecraft and selling stolen data. Some are involved in traditional hacking methods, such as breaking into networks to steal and corrupt data. Still others manipulate users through phishing expeditions and social engineering to receive access into a system. “And CPA firms are high-value targets due to the sensitive data they possess, similar to banks and broker dealers,” said Sam Aidee, senior AICPA risk advisor for Aon. Regardless of their motives — from mischievous, to malicious, to moneymaking schemes – cybercriminals can seriously threaten your firm’s continued success and profitability. What can you do to thwart cybercriminals? “Hackers will continue to test systems to see what works, they want information that is quick and easy to access,” said Candace Coach, AICPA risk advisor for Aon. “Implementing best practices will prevent firms from being the vulnerable targets that hackers prey on.” Understand the nature of the data in your possession and establish methods for how to discover a breach. Having a robust internal reporting process and incident response plan is key. With CPA firms, hackers tend to focus their efforts on mobile devices, which are vulnerable to malware when not patched properly, and can be easily lost exposing unencrypted data. They also target remote access to internal systems for the mobile workforce.

We recommend the following best practices to stay a step ahead of the hackers: • Ensure full disk encryption on all laptops, desktops, mobile devices, and external storage • Utilize multi-factor (or at least two-factor) authentication for remote login • Establish robust cloud/vendor management controls • Conduct regular security awareness training for all employees • Extend internal security controls to embedded devices like internet connected web cameras, HVAC, and door badge access systems • Document and test incident response plans • Establish a formal data retention policy — including secure deletion of data • Ensure physical security of hardware • Conduct annual penetration tests, and remediate identified issues Since each state has its own breach notification laws, the timing to execute remedial measures is critical. Apply the law as the facts are discovered, and be cognizant of the applicable breach reporting deadlines. Under most breach statutes, one must comply with the rules even if no theft or damage occurred. When necessary, consider hiring vendors that have expertise in implementing a breach response plan that sets forth timely notification, forensic analysis of how the breach occurred, client credit monitoring and other regulatory compliance measures.

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An inadequate breach response can be devastating to an accounting practice. Not only does it result in reputational harm, but can result in higher out-of-pocket expenses, including heavy fines, and more. From a hacker’s perspective, just because a firm has been breached once does not mean that it cannot be breached again; in fact, a breach history can make a firm a more appealing target. The likelihood of repeat attacks is a real risk. To further help insulate your firm from exposure, purchase appropriate cyber liability coverage. Remember that your existing coverage may not adequately cover a data security breach and the necessary response. Accordingly, consult with your insurance agent or broker when assessing your cyber coverage. Read the general terms and conditions of the policy and understand how it applies to first party risks (i.e., business interruption and data restoration) as well as to third party risks (i.e., network damage, privacy injury, event expenses, regulatory proceedings and extortion). Cybercrimes are constantly evolving, as hackers routinely alter their mode of attack to avoid detection. As a result, CPAs need to stay abreast of the latest threats and take measures to avoid them. In the meantime, firm

employees should be fully trained in security awareness. Most of all, recognize that statistically, you have a greater chance of being hacked than not. Having adequate data security measures in place can make all the difference between being just another victim of a cyber breach or a bulwark against data fraud. STANLEY D. STERNA, JD, serves as Vice President in the Professional Firms Division of Affinity Insurance Services, Inc. (Aon Affinity). As a Claim and Risk Management Consultant, Stan provides quality control, claim/ litigation management, and risk control expertise to many of the country's largest accounting firms. He also advises clients on broader enterprise risks including cyber liability. He supports business planning, client relations, and sales/marketing initiatives for the AICPA Professional Liability Program and Aon Affinity’s business partners. Aon Affinity has been the endorsed administrator of the AICPA Professional Liability Insurance Program since 1974. To learn more about the AICPA Program, visit www.cpai.com. NICK GRAF serves as Assistant Vice President of Information Security for CNA’s Risk Control unit. Nick has more than a decade of information security experience and specializes in data leakage prevention, security policies, incident response, data breach and security awareness. He has presented courses on privacy, big data, the cloud and healthcare risks, and has also written and contributed to articles regarding information risks, social engineering, mobile device security, phishing and personal password management. This article is provided for general information purposes only & is not intended to provide individualized business, risk management or legal advice.

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Five Questions to Ask When Choosing a Data Hosting Provider BY CHRISTOPHE RÉGLAT, PRESIDENT & CEO, COAXIS INTERNATIONAL

survey by the security software company McAfee found that 93 percent of organizations are using cloud services in some form and 80 percent expect their IT budget to be cloud-based within an average of 15 months. Why the popularity of cloud service providers? For CPA firms, the right data hosting — or cloud — provider offers several advantages: • Eliminates the distraction and frustration of dealing with time-consuming IT issues • Minimizes the threat of cybercrime • Manages the complexities of adhering to regulatory compliances for the financial industry • Typically, is less expensive then owning and operating a premise-based server Think of a cloud-based data hosting provider as an external alternative to your firm’s on-site data center or IT infrastructure that is accessed via the internet or a secure network connection. While some cloud hosting providers offer partial solutions for specific applications, a fully managed solution can protect and maintain all of your firm’s electronic data, applications, emails and security in a dedicated and accessible server environment. Here are five questions to ask when choosing a data hosting provider: 1 . What is the provider’s rating? The globally recognized ANSI/TIA- 942 evaluates and rates the ability of data centers to provide a predictable level of performance. Two key areas they evaluate are “redundancy,” referring to the duplication of critical components or functions of a system, usually in the form of a backup; and “uptime,” meaning the percentage of time a computer is operational (versus “downtime”). Level 1 is the lowest rating given to the simplest form of data centers, basically warehouses with power and no backup redundancy. Conversely, Level 4 is the highest rating given to data centers designed to host mission-critical servers and computer systems. Redundancy is applied across the entire data center, including both computing and non-computing infrastructures such as cooling, power and internet providers. The uptime for a Level 4 data center is 99.995%. 32

FLORIDA CPA TODAY | FALL 2018

2. What does the managed hosting provider offer when it comes to government and industry compliances relevant to financial services? If the answer is only SOC 1 or SOC 2, that is not be enough. Adherence to the Gramm Leach Bliley Act (GLBA), Sarbanes Oxley Act (SOX), Service Organization Control (SOC) 2 and the Bank Secrecy Act (BSA) are equally important. You also need to consider the compliance needs of your clients. For instance, if you serve clients in the medical field, the HIPPA HITECH Act mandates audits of health care providers to determine if they are in compliance with the HIPAA privacy and security rules for protecting personal health information. The U.S. Criminal Justice Information Services Security Policy (CJIS) is important for CPAs working with criminal justice clients, as it outlines security precautions to protect sensitive information like fingerprints and criminal background checks gathered by the local, state, and federal criminal justice and law enforcement agencies. Also on the horizon is the General Data Protection Regulation (GDPR). Implemented in May 2018, it is the primary law regulating data protection and individual privacy within the European Union. Its reach extends to the U.S. as it relates to companies working with European Union businesses, and we already know it is impacting CPAs and their clients. 3. What does the monthly fee include? Beware of hidden costs. Does the monthly fee stay the same regardless of your infrastructure’s capacity needs or does the rate go up as resources are added? Is technical support included in the monthly fee, and if so, is there a monthly limit to the number of hours? What else could change your monthly rate? Examples include add on charges for things such as CPU, RAM/memory, inbound/outbound network traffic, and the number of applications hosted. 4. Does the managed hosting provider have a Service Level Agreement? Commonly referred to as an SLA, these are contracts between the service provider and the client that articulate quality expectations, response times and service responsibilities.

5. Does the provider own the physical facility where your data will be stored or does it rent space (a process referred to as co-location)? If the provider owns and operates its facility, that is a good indication they have the control to perform secure managed hosting services at a much higher level for their clients. Location is also important when it comes to support staff. Are they U.S.-based or abroad? Is the support performed in-house or outsourced to a third party? Is it available 24/7? Location can also have compliance implications, especially when sensitive information is involved. CPA firms should make sure their data is being housed within the U.S. Moving your firm’s IT infrastructure to a cloud-based data hosting platform offers a wealth of benefits, from enhanced productivity and security to reduced software and hardware costs. To receive an evaluation checklist to help your firm choose a data hosting provider, send an email to lisa. bryant@coaxissolutions.com.

Think of a cloud-based data hosting provider as an external alternative to your firm’s on-site data center or IT infrastructure that is accessed via the internet or a secure network connection. — Christophe Réglat COAXIS is an endorsed program for the FICPA that provides CPA firms with a fully-hosted and managed network solution designed to remove the complexities of federal and industry compliances, curb the demands of maintaining an IT infrastructure, and greatly minimize the threat of cybercrime. Its private, single-tenant data center is built, operated and maintained to the highest level Rated 4 standards, meaning it has no single points of failure, allowing for continued operations despite the occurrence of any unplanned activity. The company’s services are also compliant with GLBA, HIPAA HITECH, CJIS, and an Industry Audit SOC 2 Type 2- Unqualified Audit Opinion.

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FALL 2018 | FLORIDA CPA TODAY

STAFF REPORT

Record Attendance at Ocean Reef Retreat Fundraiser A record number of CPAs, families and friends gathered in July at the ultra-private Ocean Reef Club in Key Largo for three days of relaxation, golf and networking. More than 180 attendees enjoyed comradery and hours of leisure at the Club’s 2,500 lush tropical acres, including two championship golf courses boasting scenic vistas.

Attendees enjoy comradery and supporting the Foundation at the Family Retreat and Golf Tournament.

Popular recreational activities included bonefishing and coral reef snorkeling charters, lounging poolside, paddle boarding, biking and tennis. An enthusiastic crowd of golfers enjoyed friendly competition during the Retreat’s Golf Tournament Fundraiser on the beautiful Hammock Course. A weekend highlight was the Saturday night Island Luau Celebration. Attendees enjoyed dining on a sumptuous luau of seafood and steak and experienced friendly competitive bidding on an array of silent auction items including vacation packages, autographed sports memorabilia and unique jewelry. Net proceeds from the auction, golf tournament and other Retreat activities help fund scholarships for deserving Florida accounting students in need. The Retreat and Golf tournament would not be possible without underwriting by our generous sponsors. In addition to providing financial support, many of sponsors were on hand throughout the weekend, helping the Foundation to roll out the island welcome mat to all attendees. We thank: Kaufman Rossin • MBAF • FICPA • GAG Consulting Services Inc. • Elizabeth Carson, CPA • TriNet • EJI Recruiting • O.E. Brand • In Memory of Azalea Grace • Compass Wealth Management • HSBC • Chase • Edin Watts Golf • LaRocca Assoicates • Niles Knight & Company, PLLC • Progressive • Storelli Recycling Co • Financial Forensic Group • Law Offices of Gilbert & Smallman, PLLC • Rick Smith, CPA • Alan West, CPA • Carcamo-Suarez Household JAN DOBSON, CAE, Sr. Director, FICPA Scholarship Foundation

FLORIDA CPA TODAY | FALL 2018

STAFF REPORT

Newest Scholarship Endowment Honors Foundation Past President Jason Chorlins KEY LARGO – Jason A. Chorlins, CPA was honored with a $25,000 named endowment at the 10th Annual Family Retreat Fundraiser at Ocean Reef Club July 28. Created by benefactors Kaufman Rossin, Mr. and Mrs. George Gulisano and the FICPA Scholarship Foundation (SF), proceeds f rom the Jason A. Chorlins endowment will provide annual scholarship funds for deserving Florida accounting students.

Chorlins, SF past president, is the principal of risk advisory services at Kaufman Rossin. Ivan Garces, the firm’s principal, risk advisory service practice leader and George Gulisano presented Chorlins with the endowment. Mr. Gulisano also is a Foundation past president and CEO of Florida Skin Center. “Jason is an industry leader in providing anti-money laundering expertise to financial institutions. His professional drive and work ethic are unparalleled,”

said Garces. “Helping young professionals and future CPAs are Jason’s passion. Kaufman Rossin is proud to honor him and support accounting students through this endowment.” “Jason is a tireless SF champion and leader,” explained Gulisano. Together, Chorlins and Gulisano are co-chairs of the SF’s signature Family Retreat and Golf Tournament. “Over the years Jason has been instrumental in raising significant money, fulfilling the SF’s mission of providing scholarships to Florida accounting students in need. It is a privilege to honor my friend and colleague Jason with this named endowment.”

“Endowments change lives — and the future of the profession,” said Alan West, SF President. “Paying it forward through planned giving and endowments gives benefactors and donors alike the opportunity to leave an impact on tomorrow’s leaders.” For more information on establishing or contributing to an FICPA Scholarship Foundation endowment, please visit ficpa.org/endowments. In 2018, the SF will grant more than $155,000 in scholarships statewide. JAN DOBSON, CAE, Sr. Director, FICPA Scholarship Foundation

Family Honors Mort Weinberger with Donation Happy Birthday to FICPA Past President Morton “Mort” Weinberger. Mort’s family surprised him with a birthday party in September and, adding to the surprise, made a contribution to the FICPA Scholarship Foundation in his honor. “We know how Dad feels about the profession,” said son Marc Weinberger. “My family and I chose to honor him and to show our appreciation to the FICPA with a monetary gift to the Foundation. It is the perfect gift, Dad was overwhelmed.”

Weinberger served as FICPA President from 1980-81. He was instrumental in moving the FICPA’s headquarters from Gainesville to Tallahassee, revising FICPA bylaws to address the rights of non-public-practice members and was very active in practice review. The Weinberger family’s contribution will help fund a scholarship, bringing joy to a deserving student who dreams of becoming a CPA.

Would you like to honor someone special with a commemorative contribution to the FICPA Scholarship Foundation? Contact jan@f icpa.org to learn how. The FICPA Scholarship Foundation has provided more than $3 million in scholarships and education programs to support Florida accounting students. Through the generous donations of FICPA members, the Foundation continues to provide more than $130,000 a year in scholarships to assist Florida’s future CPA leaders. Visit ficpa.org/sf for more information.

JAN DOBSON, CAE, Sr. Director, FICPA Scholarship Foundation

FALL 2018 | FLORIDA CPA TODAY

DOR UPDATE

Tax Credit Scholarship Program Updates BY VALERIE WICKBOLDT, DBPR COMMUNICATIONS DIRECTOR

Florida Tax Credit Scholarship Program. Additional details about these programs, as well as links to apply for credits, file reports, and download applicable forms, are available at floridarevenue.com. FLORIDA SALES TAX CREDIT SCHOLARSHIP PROGRAM

During the 2018 Florida Legislative Session, two tax credit scholarship programs were created, the Hope Scholarship Program and the Florida Sales Tax Credit Scholarship Program, and changes were made to the existing

About the Program: The Florida Sales Tax Credit Scholarship Program, established in 2018, authorizes the tenant of a commercial rental property to receive a credit against the state sales tax due on rent or license fee payments for contributions paid to an eligible nonprofit scholarship-funding organization (SFO). The Florida Department

of Education establishes the eligibility of SFOs to participate in the program. Allocation Application and Contribution Process: Tenants of commercial rental property apply to the Department of Revenue to receive an allocation of the funds available for sales tax credits each state fiscal year (July 1 - June 30). Once approved, a tenant will pay some or all of the allocated amount to an eligible SFO. This payment must be made in the same state fiscal year as the year in which the application was approved. The SFO will provide the tenant with a certificate of contribution showing the amount of the contribution, which can be used to document the credit against state sales tax due on their lease. Reporting Requirements: The SFO must file a monthly report with the Department that details the contributions received during the preceding calendar month, along with identifying information for each contribution. The tenant will provide their landlord with a copy of the approval letter from the Department and a copy of the certificate of contribution from the SFO. The landlord will report the credit amount taken by the tenant on their sales tax return filed with the Department. Unused credits can be carried forward by tenants for up to 10 years. In the event a tenant decides that they will not use all of the allocation they received from the Department, they can request that the Department rescind any allocation for which a payment has not already been made to the SFO. The rescinded amount will then be made available so that others can apply for an allocation of some or all of that amount.

FLORIDA CPA TODAY | FALL 2018

FLORIDA TAX CREDIT SCHOLARSHIP PROGRAM

About the Program: The Florida Tax Credit Scholarship Program (FTC), established in 2001, allows taxpayers to make private, voluntary contributions to eligible SFOs that award scholarships to students from families with limited financial resources. Taxpayers receive a dollar-for-dollar credit against the following Florida taxes: corporate income tax; excise tax on liquor, wine, and malt beverages; gas and oil production tax; insurance premium tax; and sales and use tax due under a direct pay permit. Changes to the Program: The application and contribution periods were changed for Corporate Income Taxpayers, and the collection allowance calculation for direct pay permit holders claiming a tax credit was also changed. In addition, the program now allows tax credits earned in a taxable year beginning on or after January 1, 2018, to be carried forward up to 10 years when a taxpayerâ&#x20AC;&#x2122;s tax liability is insufficient to use the entire credit. However, any unused credits earned in a taxable year beginning before January 1, 2018, may be carried forward for a period not to exceed five years. Unused tax credits now automatically carry forward. Applications to carry forward an unused tax credit into a specific tax year are no longer required.

Contributions Process: Beginning on or after October 1, 2018, anyone who purchases or registers a motor vehicle in Florida, which qualifies for the Hope Scholarship Program, may designate $105 of the state sales tax due at the time of purchase or registration to an eligible SFO participating in the program. If the sales tax owed is less than $105, the purchaser may instead designate that all state sales tax from the purchase be contributed to the selected SFO. Motor vehicle dealers, private tag agencies, and county tax collectors are required to provide a Hope Scholarship Program - Contribution Election (Form DR-HS1) to each purchaser or registrant of a qualified motor vehicle. If the purchaser or registrant chooses

not to contribute, the Form DR-HS1 does not need to be completed or retained by the purchaser or retained by the dealer, agency or county tax collector. The dealer, agency, or county tax collector receiving the contribution must remit the contribution directly to the designated SFO. Reporting Requirements: Beginning on or after October 1, 2018, motor vehicle dealers, private tag agencies, and county tax collectors receiving contributions for the Hope Scholarship Program must report the amount of contributions received during each reporting period to the eligible SFO designated and to the Department of Revenue. VALERIE WICKBOLDT, DBPR Communications Director

HOPE SCHOLARSHIP PROGRAM

About the Program: The Hope Scholarship Program, established in 2018, provides a public-school student who was subjected to an incident of violence or bullying at school the opportunity to apply for a scholarship to attend an eligible private school rather than remain in an unsafe school environment.

FALL 2018 | FLORIDA CPA TODAY

CPAS IN THE SPOTLIGHT

CORAL GABLES

Alex Montero

SARASOTA

VERDEJA, DE ARMAS, & TRUJILLO LLP

DEAN MEAD ATTORNEYS AT LAW

Verdeja, De Armas, & Trujillo LLP has promoted Alex Montero to Director of the firm’s tax department.

Brad Gould has earned Board Certification in Tax Law from The Florida Bar Board of Legal Specialization

FORT MYERS SANIBEL CAPTIVA COMMUNITY BANK

FICPA member David Hall, of Sanibel Captiva Community Bank, has rejoined the Florida David Hall Repertory Theatre’s board of directors. He previously served on its board of directors from 2003 to 2010. MARKHAM NORTON MOSTELLER WRIGHT & COMPANY, P.A.

Cory Mahosky recently joined Markham Norton Mosteller Wright & Co., P.A. (MNMW) after working with the firm as a Florida Gulf Coast University (FGCU) intern for the spring semester. Mahosky works in the tax division, helping to prepare individual and business tax returns and provide supportive accounting services.

FORT LAUDERDALE RSM US LLP

RSM US LLP congratulates Lance Lvovsky, CPA on being recognized by CPA Practice Advisor as a 2018 40 Lance Lvovsky Under 40 Honoree. This award recognizes professionals who are under 40, and are emerging as the future leaders in the profession, or those leading the development of technology that serves the profession. 38

FORT PIERCE

FLORIDA CPA TODAY | FALL 2018

Brad Gould

& Education.

HBK CPAs & CONSULTANTS

Clinton A. Smith, CPA, CCIFP of HBK CPAs & Consultants Sarasota, Florida office has been promoted to Principal.

STUART MARI HUFF C.P.A., P.A

NORTHEAST ACCOUNTING & FINANCIAL WOMEN’S ALLIANCE (AFWA)

FICPA congratulations member Karyn Hartke, CPA on being been Karyn Hartke named ’18-’19 National President of Accounting & Financial Women’s Alliance (AFWA).

Mari Huff C.P.A., P.A. has added Madison M. Freeman as a Staff Accountant and Trey M. Bruce, CPA, JD, LLM as a Senior Accountant.

TALLAHASSEE THOMAS HOWELL FERGUSON P.A. CPAs

ORLANDO KEITH ALTIZER AND COMPANY, P.A.

Tiffany A. Altizer, CPA, of Keith Altizer and Company, has been elected to the Tiffany A. Altizer Board of Trustees for the Southern Federal Tax Institute (SFTI). She has been selected by her peers to serve on the Board and will work with other tax professionals from across the country. FLORIDA MUNICIPAL POWER AGENCY (FMPA)

Florida Municipal Power Agency (FMPA) has promoted Linda S. Howard to Chief Linda Howard Financial Officer.

Stephen Andrews

Brandon Mott

Thomas Howell Ferguson P.A. CPAs congratulates Stephen Andrews on his promotion to Director in the Tax Services Department and Brandon Mott on his promotion to Director in the Assurance Services Department.

Lexi Quigley

Jillian Sliger

Thomas Howell Ferguson P.A. CPAs welcomes Lexi Quigley and Jillian Sliger as full time accounting professionals.

CPAS IN THE SPOTLIGHT

TALLAHASSEE

TAMPA

THOMAS HOWELL FERGUSON P.A. CPAs

Thomas Howell Ferguson P.A. CPAs welcomes Alyson Battista and Travis Britt to the firm. Thomas Howell Ferguson P.A. CPAs congratulates Brett Gilman on passing the CPA exam. Brett Gilman

Thomas Howell Ferguson P.A. CPAs congratulates Julian Dozier on receiving the National Association of Certified Julian Dozier Valuators and Analysts (NACVA) 40 Under Forty Award. MOORE, STEPHENS LOVELACE, P.A.

Daniel O’Keefe, the Orlando Office Managing Partner at Moore, Stephens Daniel O'Keefe Lovelace, P.A., was appointed to the Seminole State College District Board of Trustees by Governor Rick Scott. O’Keefe succeeds Wendy Brandon and is appointed for a term beginning July 12, 2018 and ending May 31, 2022.The appointment is subject to confirmation by the Florida Senate.

WEST PALM BEACH THOMAS HOWELL FERGUSON P.A. CPAs

CALER, DONTEN, LEVINE, COHEN, PORTER & VEIL, P.A.

Caler, Donten, Levine, Cohen, Porter and Veil, P.A. (CDL) has promoted Laura E. Clark to Shareholder.

Thomas Howell Ferguson P.A. CPAs, welcomes Justin Marsh to the assurance services Justin Marsh department in their Tampa office. Laura Clark

TAMPA GENERAL HOSPITAL

FICPA member Lijah P. Lokenauth, CPA, CFE was one of 41 CPAs honored by the American Institute of CPAs (AICPA) as a member of the Leadership Academy’s tenth graduating class.

WEST PALM BEACH

FICPA member David Donten, of Caler Donten Levine Cohen Porter & Veil, P.A. (CDL), has joined the Board of Directors of David Donten Big Dog Ranch Rescue, a not-for-profit organization in Palm Beach County.

CALER, DONTEN, LEVINE, COHEN, PORTER & VEIL, P.A.

Caler, Donten, Levine, Cohen, Porter and Veil, P.A. has promoted the following employees: Delia Lalchan, Senior Manager, Family Office Services Masami Fujimoto, Manager, Tax Chris Micolucci, Manager, Audit Daniel Demosthenes, Supervisor, Audit Nicholas Raiola, Supervisor, Audit Gary Mann, Senior Accountant, Audit Dustin Provenzano, Senior Accountant, Tax Blesilda Reis, Senior Accountant, Tax Shanna Modys, Advanced Staff Accountant, Family Office Services Susan Rojas, Advanced Staff Accountant, Family Office Services Dia Gilley, Bookkeeper, Family Office Services Shannon Foster, Client Service Specialist, Family Office Services Priscilla Lowe, IT Assistant

Dustin Provenzano

Caler Donten Levine Cohen Porter & Veil, P.A. is pleased to announce that Dustin Provenzano received his CPA license.

HBK CPAs & CONSULTANTS

Michael L. Kohner

HBK has welcomed Michael L. Kohner CPA, AEP, CAP, CFP® as Principal-in-Charge of the West Palm Beach office.

Congratulations to the Fall 2018 CPAs in the Spotlight! Email your submission to communications@ficpa.org. Check out what our members are doing at ficpa.org/CPASpotlight.

FALL 2018 | FLORIDA CPA TODAY

MARKETPLACE

Classified Ads, Job Postings, and More For information on rates and classified ad policies, visit ficpa.org/classifiedsonline. OFFICE SPACE FOR RENT

OFFICE SPACE FOR RENT

Well-established South Broward CPA firm seeking to share office space in upscale class “B+” building located near all major highways. Furnished, window office, conference room, kitchen, telephone, office equipment & internet access included. Email inquiries to ajcpapa@aol.com or call Hannah at 954-985-1040.

Shared office space with other CPAs near downtown Sarasota available immediately. Expense sharing possible. Length of lease is flexible. Email inquiries to amast@mastcpa.com or call Allen at (941)953-5036.

FLORIDA CPA TODAY | FALL 2018

OFFICE SPACE FOR RENT

Wanted CPA that wants to build their own practice. I have a fully functional accounting office to use for free in Fort Myers, FL. Reply to CPABANDB@ yahoo.com

PRACTICES FOR SALE

FLORIDA: Jackonville - $1.2 million-full service Palm Beach County - $75k - tax and tax resolution GEORGIA: Savannah - $1.1 million - full service Atlanta - $780k - tax/bookkeeping Atlanta - $420k - tax/bookkeeping Atlanta - $450k - tax/bookkeeping TENNESSEE: Memphis - $700k - tax/bookkeeping MORE LISTINGS COMING SOON! More details call David L. Akins at 877-277-0272 or email: david@akinsprofessionalbrokerage.com AKINS PROFESSIONAL BROKERAGE: www.akinsprofessionalbrokerage.com

THEY WON’T HEAR YOU — unless they hear from us, together.

Donating to the CPA/PAC is the most effective way to make sure that your voice is heard. With your financial support, we’ve vetted hundreds of candidates running for elected office to support those who are pro-CPA and pro-business. We have an 85% success rate when it comes to getting candidates elected. Make sure our profession has a seat at the table in Tallahassee.

DONATE TODAY AT FICPA.ORG/PAC Please note: contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.

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Register for the CIRA Real Estate Conference and earn an additional 7 hours of CPE! CPAs must know the complex issues faced by common interest realty associations to serve them well. At the CIRA Real Estate Conference & annual two-day CIRA Conference, hear from regulators, attorneys, reserve specialists, and CPAs specializing in this industry. There are two tracks: one provides round tables for senior staff and partners, and the other teaches CIRA’s unique tax and auditing issues. Attend in person or via online simulcast. Join us a day early for the CIRA Real Estate Conference on November 14 to earn extra CPE and gather insight on key topics like rental issues’ impact on taxes, revenue recognition, planning using LLCs and self-directed IRAs, and more! (CPE: 7) (Separate registration fee.)

FICPA.ORG/CIRA

ST. DENIS & DAVEY, ATTORNEYS AT LAW

MARKETPLACE

PRACTICES FOR SALE

FLORIDA

CPA Firm Looking for Merger. Established CPA firm of over thirty years, with partners looking toward retirement within the next ten years, seeking to merge with public accounting firm with auditing, accounting, and tax practice. Ideal for individual CPAs or a CPA firm with younger partners seeking to expand. 1,754 square feet of Class A space available to accommodate additional individuals in Fort Lauderdale office near I-95 on East Commercial Boulevard. Building is conveniently located with great visibility and parking. Second floor entrance directly off elevator. E-mail Richard@jagusztyncpas.com or call 954-491-1065 Ext 2, if interested.

Reclaiming Justice Focusing on legal malpractice and accounting malpractice statewide, St. Denis & Davey, P.A., Attorneys are led by Super Lawyers honoree Donald W. St. Denis and Rising Stars honoree Brian W. Davey. For St. Denis and Davey, finding justice for clients who have been let down in the past is the ultimate gratification. “Clients come to us jaded about the legal process.” St. Denis says. “When they see how hard we work and how hard our experts work, they’re very thankful to see that the legal system can ultimately work for them.”

PRACTICES FOR SALE

Thirty-year-old established southwest Florida CPA firm for sale. Business and personal tax practice with more than 130K in revenues with long-term multi generational clientele. 1500 sq. ft. office condo fully retrofitted to comply with ADA available for purchase. Call 916.897.3386 or email rebekah.s.sass@gmail.com

LEGAL MALPRACTICE MALPRACTICE Only through intense diligence does the team of five attorneys tackle malpractice claims that arise from personal injury, real estate and cases, plus Did fail you youaccounting orone oneof of your clients? Did a a lawyer lawyer fail or your clients? many more areas.

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throughout Florida, contact contactus. us. throughout Florida,

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Visit ficpa.org/classifiedsonline for complete classified ad policies Have office space to share in north Florida? Please visit michael.ficpa.org to help support Panhandle CPAs 42

FLORIDA CPA TODAY | FALL 2018

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VFALS V Valuation, Forensic Accounting & Litigation Services CONFERENCE The Future is Now — Be Anticipatory in Valuation, Forensic Accounting and Litigation Services

January 10-11, 2019 Ft. Lauderdale and simulcast CPE: up to 16 FICPA’s Valuation, Forensic Accounting, & Litigation Services Conference brings together the industry’s leading experts to bring professionals up to speed on the latest issues and challenges facing our field. Attendees will be able to network and learn together as they discuss key topics in person or via Simulcast. Join conference favorite speaker Cynthia Greene; and witness as our judge’s panel deliberates on a variety of issues.

ficpa.org/LC To register, call 800.342.3197 or 850.224.2727, or visit ficpa.org/cpe. | FICPA.ORG

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