January/February 2014 - Florida CPA Today | Volume 30, Number 1 by Florida Institute of CPAs

F L O R I D A

florida C P A

TODAY

contents JANUARY/FEBRUARY 2014

VOLUME 30, NUMBER 1

A P U B L I C AT I O N O F T H E F LO R I DA I N S T I T U T E O F C E R T I F I E D P U B L I C A C C O U N TA N T S

departments

12 features 10

Missed Opportunity 10 Excuses That Hold Business Owners Back

The American Taxpayer Relief Act Affecting 2013 Returns

Web Digest S Corporations Update

Robert Half Offers 2014 Salary Guide

Estate-tax Issues Affecting Non-resident Aliens

Installment Agreements Advising Clients With Delinquent Federal Taxes

Web Digest ROBS Transactions: Under IRS Attack FLORIDA CPA TODAY

Chair’s message

7 8 9 15 18 24 30 32 34

President’s message Letter to the editor Guest column

Staff reports News briefs DOR update On the move Marketplace FICPA member profile Jonathan Ingber, CPA

www.ficpa.org

F L O R I D A

PRESIDENT/CEO Deborah L. Curry, CPA, CGMA SR. DIRECTOR OF MARKETING & COMMUNICATIONS Jan Dobson, CAE, IOM EDITOR Suellen D. Wilkins GRAPHIC DESIGNER Loleta K. Bolden PUBLICATIONS COORDINATOR Dianne Dearduff EDITORIAL COMMITTEE Michael S. Kridel, CPA, chair David J. Hochsprung, vice chair Political Advertisement Paid by the Florida CPA Political Action Committee, Inc. 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. The Florida CPA/PAC is registered as a corporation with the Florida Division of Corporations and as a Political Committee with the Florida Department of State.

Douglas E. Day, CPA • Lynda M. Dennis, CPA Casey A. Fletcher, CPA • Troy Y. Manning, CPA Vicki H. Meyer, CPA William C. Quilliam, CPA, Ph.D. All articles submitted to Florida CPA Today are subject to technical review, Editorial Committee review, space availability and editing requirements and restrictions. Please contact the editor before submitting unsolicited manuscripts. Florida CPA Today publishes letters to the editor in its Members’ Forum. For information about the guidelines, visit www.ficpa.org/letterstoeditor. Statements expressed herein are those of the identified authors and not necessarily those of the Florida Institute of Certified Public Accountants, Inc., 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 bimonthly by the Florida Institute of Certified Public Accountants, Inc., P.O. Box 5437, Tallahassee, FL 32314. Telephone: (850) 224-2727 or (800) 342-3197. (Street address: 325 West College Ave., Tallahassee, FL 32301.) 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. For display advertising information, contact the FICPA Marketing Department at (850) 224-2727, Ext. 270. © 2014 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.

JANUARY/FEBRUARY 2014

chair’s

MESSAGE

Jump Start Your 2014 Membership Benefits Ken Strauss, CPA

Happy New Year!

Jan. 31 begins the Chinese Year of the Horse. According to Chinese literature, those born in a year of the horse (1918; 1930; 1942; 1954; 1966; 1978; 1990; or 2002) are recognized as unremittingly improving themselves. Regardless of culture or age, selfimprovement is a noble goal for all of us this New Year. Here’s a checklist to jumpstart your efforts: Get Health Insurance Health insurance is a hot topic and a lot of Americans are looking for new plans in 2014. As an FICPA member, our new CPA Insurance Marketplace simplifies shopping for and managing health insurance for yourself, your family and company employees. Be sure to visit memberbenefits.com/ficpa to learn more about a range of quality insurance carriers and plans (including pet insurance and more) to meet your needs. Get Educated The FICPA is expanding its in-person and digital CPE offerings in 2014. Start your CPE planning with a look at the 2014 Mega CPE Conference, coming back June 11-14. Our room block at Disney’s Contemporary Resort is open – book your 2014 bizcation now! Give Time “To do more for the world than the world does for you – that is success,” is good advice from Henry Ford. I think Mr. Ford would agree that volunteering your time and expertise with the FICPA is a powerful way to make our great profession even better. There are many ways to serve – on a committee or task force, at your local chapter or with the FICPA Educational Foundation (EDF), to name a few. Committee selections take place in the spring for the FLORIDA CPA TODAY

fiscal year beginning July 1. The first step to an appointment is to apply now at www.ficpa.org/ committees. Give Financial Support I challenge you to give the equivalent of one billable or salaried hour to the Florida CPA/ PAC (CPA/PAC) right now. This political action committee works year round protecting your hard-earned license. And while you’re giving, consider donating to the EDF. Florida’s accounting students are vital to the future of our profession. If every FICPA member gave a modest contribution to the CPA/PAC and EDF, our collective dollars could accomplish big things! Bring One On I spend a lot of time talking about the fact that 54 percent of Florida CPAs are FICPA members. There’s no doubt that the CPA designation makes you more valuable in the workplace; helps you earn a better living; and commands respect. If you know another CPA who isn’t a member, please talk with them about how the FICPA has enhanced your career and ask them to join. Together, all Florida CPAs are stronger. Ringing in the New Year also gives me time to reflect on the first six months as your Chair. Traveling throughout Florida and talking with many CPAs has been a lot of fun, and very informative. It also has been my honor to work with the insightful and dedicated members of the FICPA Board of Governors (BOG), Chapter Officers and other leaders to bring you more relevant insurance, CPE and other services. As the FICPA continues its self-improvement plans, I hope you’ll get health insurance, get educated, volunteer, give financial support and recruit a new member. FCT www.ficpa.org

You’re the Director – Who’s the Star?

We need star CPAs for our Annual Awards production at Mega CPE Conference 2014.

✮ Outstanding CPA in Business & Industry ✮ ✮ Outstanding CPA in Government ✮ ✮ Outstanding CPA in Public Service ✮ ✮ Outstanding Educator ✮ Submit your nominations online today for these Annual Awards!

www.ficpa.org/FicpaAwards The deadline for nominations for all four awards is April 4, 2014.

president’s

MESSAGE

At a Glance My Calendar for the First Six Months The first half of our fiscal year has flown by – my schedule, and my suitcase, have been packed! An important part of my position is to increase business opportunities for FICPA members, expand the FICPA brand and monitor issues that may negatively affect our license.

Deborah L. Curry, CPA, CGMA

Here’s a look at a few of the items on my calendar so far this year. AICPA National Accreditation Committee (NAC) Attended a meeting of the NAC, on which I serve as commissioner. Highlight: Additional avenues for online study and testing are under development. • CFF and ABV credentials www.aicpa.org. Under Interest Areas, click on Forensic and Valuation Services. • CITP credential www.aicpa.org. Under Interest Areas, click on Information Management and Technology Assurance, then on Become a CITP. • PFS credential www.aicpa.org/pfp/pfs Audits of Lobbyists Compensation Reports Testified at a meeting of the Joint Legislative Audit Committee (JLAC) regarding use of the term “audit” in Florida Statute 11.40(3)(h). Highlight: Rule language was revised to “agreed upon procedures.” • Florida Statutes 11.40(3)(h) www.flsenate.gov/Laws/Statutes/2013/11.40 • Procedures adopted Nov. 4, 2013 www.ficpa.org/AdoptedGuidelines CPA/Society Executives Association (SEA) The association for CPA state-society executives forum. Highlight: Presentation by Sarah Sladek, founder of XYZ University, “Membership of the Future.” • http://xyzuniversity.com AICPA Council Attended Fall Council. A major focus is succession planning for a retiring generation. Highlight: Keynote speech from Sal Khan, creator of Khan Academy, on the future of learning. • www.khanacademy.com Florida TaxWatch Attended the 34th Annual Meeting. Highlight: Launch of Center for Government Efficiency. Identifies cost savings and efficiencies and makes Florida government more accountable to taxpayers. • www.floridataxwatch.org Leadership Florida Class XXXII Completed the second session. Highlight: Meeting Eduardo Torres, director of the South Florida U.S. Export Assistance Center, U.S. Department of Commerce. Opportunities for CPAs to connect internationally with other CPA firms, or with companies importing/exporting products or services. • http://export.gov/florida/ FCT FLORIDA CPA TODAY

www.ficpa.org

16 Must-have Apps Get the latest smartphone or tablet over the holidays? The FICPA Tech Team recommends these popular apps for connectivity and convenience. AroundMe Android™, Apple®, Windows® Find the nearest gas station, bank, hotel and more. BillGuard® Apple® Track and protect your credit- and debit-card transactions. Chrome™ Browser Android™, Apple® Browse the web and sync with your computer. Dropbox Android™, Apple®, BlackBerry® Store files in the cloud and sync them to your devices.

Keeper® Password & Data Vault Android™, Apple®, Windows® Access, organize and sync all of your passwords securely. Kindle Android™, Apple®, Windows® Read books, magazines and newspapers. Last Message Android™ Automatically tell contacts how to get in touch if your battery dies. LinkedIn® Android™, Apple®, BlackBerry®, Windows® Connect and grow your network on the go. Mailbox Apple® Check email easier and faster. Polaris® Office Android™, Apple® Use Microsoft® Office and Adobe® PDF files.

EasilyDo Android™, Apple® Avoid traffic, track packages, RadarNow! create reminders and more. Android™, Apple® View live-updated weather Flipboard radars. Android™, Apple®, BlackBerry® WhatsApp® Messenger Read the news you care Android™, Apple®, about in a personalized BlackBerry®, Windows® magazine. Upgrade text messaging with multimedia, group chat and Google Maps™ more. Android™, Apple®, Windows® To see a full list of Get turn-by-turn GPS recommended apps, visit navigation to your www.ficpa.org/apps. destination. Google Translate™ Android™, Apple® Translate more than 70 languages.

Letter to the Editor What is an Automatic Extension? An automatic extension is a document filed by an

individual or entity to extend the filing date of their tax return. It does not extend the date to pay or remit their tax. Extensions are automatically granted. So my question is why do we file a document that is automatically accepted and granted? Did you know that from 2005-2012 there were 11,337,000 individual income tax extensions (Form 4868) filed and that 7,488,700 were paper filed? There were also 8,095,500 entity extensions (Form 7004) filed and 2,878,300 were also paper filed. That is 19,432,500 extensions and 53.29 percent are paper filed. We file extensions for non-tax paying entities, why? To ask for something that is automatically granted, you think absurd? In 2010 there were 142.9 million individual tax returns filed, 23.9 million had a tax due at time of filing, 113.6 million returns had overpayments and 5.4 million had no tax or overpayments at time of filing. Therefore, no more than 16.7 percent of individuals would need to file extensions. I can remember the days when we filed the extensions on behalf of our clients and indicated reasons for the extension and waited for the IRS to accept or deny the request. That is not the case now! Automatic means automatic, without reason, and always accepted when filed on time. Let us just make the filing date of returns the extended due date. During the 2013 AICPA annual tax convention in D.C., I met with Sen. Bill Nelson’s staff and suggested that extensions should only be filed by those who remit a tax payment. That could eliminate the need to file these documents, saving us hours and hours of time, saving our government from administering, receiving, filing/scanning and disposing of documents that are in my opinion meaningless, since they are automatically accepted and the extension to file is automatically granted. They totally understood and said that they would discuss this suggestion with Sen. Nelson. I can’t imagine the cost associated with this procedure, in addition to the number of trees that are destroyed to provide us with the paper, the printing costs, unnecessary postage and handling, etc. I realize this is not a priority at this time or any other time, but if each one of us try to imagine what we can suggest to our government to streamline processes that have been in existence for decades, we could have an impact as to putting our resource to better use. If you agree with my suggestion, please make yourselves heard! Very truly yours, Alex S. Binstock, CPA Binstock, Rubin, Adler, Aldecoa & Ellzey, PA Miami

JANUARY/FEBRUARY 2014

guest

COLUMN

All in a Day’s Work Understanding the Affordable Care Act

Aubrey Glazman, CPA/ABV/CFF, JD

eople have been kicking the can down the road on the Patient Protection and Affordable Care Act (ACA) for two years, and, like it or not, it has arrived.

advise our clients and employers accordingly? Beyond tax implications, there are human-resource and profit dynamics to be evaluated.

Fred Peters, frequent contributor to FICPA Connect Management of an Accounting (MAP) discussion group, recently lamented, “My clients are calling me about ACA and it is not about the taxes or the penalties. The questions are what exchanges are available, what health insurance programs are out there, the cost range, benefits coverage, the best method of setting up a benefit program for their employees. The lists goes and on and on.” Peters also asked his MAP colleagues how they planned to quickly become well-versed in ACA.

Famed management consultant and author Peter Drucker said, “Whenever you see a successful business, someone once made a courageous decision.” Setting your strategy now about the role you’ll play in the ACA may well become one of those courageous and crucial decisions Drucker was talking about.

An interesting discussion ensued among MAP members about the merits of CPAs advising their clients, or if the topic is better left to insurance providers and/or other professionals. This got me thinking about how universally the ACA affects CPAs, and about our responsibility as trusted business advisors to our clients. Love it or hate it, one thing about the ACA is certain – many Americans, including our clients, employers and customers, need help understanding the law and its impact on them. A recent USA Today/Pew Research Center poll found that 75 percent of Americans are unsure about how the law might affect them and their families. I am originally from Canada and grew up with public health care. The concept still is very new to most Americans and, I believe, ripe with opportunity for CPAs. The Supreme Court upheld the constitutionality of the ACA and deemed the legislation a tax – which is self-assessed. If one doesn’t follow the law, one can be penalized. And, as we know, the IRS will be administering all ACA-related compliance and penalties. Whether you work in public practice or in industry, you most likely will be asked to help others navigate the ACA – and you need to know the best options. As CPAs, isn’t it imperative that we get involved and FLORIDA CPA TODAY

Some CPAs have liability concerns about advising clients on insurance matters for which we aren’t licensed. Is there risk? Yes. However, I don’t believe the risk outweighs the opportunity or our responsibility. Think of it this way: there also is the risk that a client can file the perfect tax return, but still be audited, and potentially reassessed. CPA clients already know we don’t sell stocks, yet they seek our guidance on investments. People and companies come to us for advice on financing and tax; growing their small business; fraud; divorce; and other specialty areas. Serving as trusted advisors is what CPAs do, and we do it very well. The same expectations are true of the ACA. It is generally accepted knowledge that CPAs don’t sell insurance, however our clients and employers desperately need our guidance regarding the business of health care and the ACA. This is an opportunity, for those CPAs that choose to take on the challenge, to add value as trusted advisors. FCT Aubrey Glazman joined the FICPA staff in October 2013 as executive vice president and chief learning officer. He has been a CPA for 22 years and holds a Bachelor of Commerce degree from the University of Toronto, a Master of Business Administration degree from the University of Western Ontario, and a Juris Doctor (Bachelor of Laws) degree from the University of London. Glazman is responsible for the operations of the FICPA’s marketing and communications; membership; and CPE departments. www.ficpa.org

Missed Opportunity

10 Excuses That Hold Business Owners Back By Tom Panaggio

hen you’re in charge of running a company, it’s easy to convince yourself that playing it safe is the responsible choice. Especially if your business is new, going out on a limb is the last thing you want to do. But risk is necessary if you want to do more than just scrape by – and it may be needed just to survive in this economy.

a large part of your budget to producing a television commercial, for instance, but barely noticed any increase in your business. Or maybe you offered an online deal to new customers, only to realize the discount you advertised was a little too generous and wouldn’t allow you to make any profits. Your one-time marketing failure has convinced you not to try again.

You can’t wait for everything to be perfect because it never will be. You have to take action – accept risk and make things happen.

Excuse No. 3: “If I just had XYZ gadget…” “If I just had faster computers, my team could respond to customer emails more promptly.” “If I just had the latest supplychain management software, my company could fulfill orders more quickly.” When you’re an entrepreneur, there are a million “If I just had…”s, and they often focus on technology. You can spend forever waiting on the “next best thing” – and often, it isn’t as necessary as you thought.

You can’t wait for everything to be perfect because it never will be. You have to take action – accept

Even with the best attitude and plan, there are times in every business when progress slows and confusion sets in. You may feel frozen, afraid any move you make will be wrong. But if you don’t want to stagnate, you have to move. Unfortunately, this type of risk is the most difficult one to take. You’ll probably want to find ways to avoid action, which is tantamount to sinking your own ship. Here are 10 common forms of risk avoidance that may hold business owners back.

Excuse No. 1: “The timing isn’t right.” As a young commodities broker right out of college, I received a call from make things a client named Steve each morning. Steve was a “prisoner of hope” who happen. always asked the same question: “Where is gold this morning?” When gold was trading higher than the day before, he’d say, “Ah, missed it again.” If it was trading lower, he’d say, “Let’s wait and get it at the bottom.” Steve missed the biggest increase in gold in more than 50 years because he waited for the exact moment to make a move – and based on his perception, that moment never came.

risk and

Excuse No. 2: “I tried that once, and it didn’t work.” Small-business owners often say this in reference to marketing. Perhaps you’ve been there: You allocated 10 JANUARY/FEBRUARY 2014

Excuse No. 4: “I’m still working on the plan.” Let’s say you want to move to the next level, whatever that is for your business. You begin planning, preparing for every possible scenario. You define contingencies with backup plans full of redundancies. You sometimes wonder how anyone could fail with a plan that covers all possibilities, and that offers each a solution. But here’s what you’re not taking into account: Although your perfect plan might prevent you from failing, it also will hold you back from succeeding if it’s never executed. Excuse No. 5: “It’s a good idea, but circumstances have changed.” “I was ready to pull the trigger, but the market changed and I had to reassess.” “I had to set back the original product launch date because I was just too busy to get everything ready.” “Preliminary research showed this idea might not be as lucrative as we thought, so we scrapped it and went back to the drawing board.” Sound familiar? If so, you may be moving the target. Excuse No. 6: “I’ll get to it eventually.” One salesperson did extensive research on each sales lead she got. Some of her research files contained more than 100 printed pages. Her reasoning? She wanted to know as much as possible about potential clients before she called them. On the surface, this level of dedication sounds admirable. But the salesperson really was procrastinating to put off

the moment of truth. She was afraid of being rejected after making her pitch, and her research was a form of risk avoidance. Excuse No. 7: “I’m playing a defensive game.” Financial risks often are the hardest for cash-strapped entrepreneurs to take. Many business owners choose to cut costs and (at least attempt to) do more with less when what they really need is to hire new talent, invest more heavily in marketing, upgrade their machinery or something else. Excuse No. 8: “Nothing’s broken. Why fix it?” When you’re facing a crisis that could damage or even sink your business, it’s (fairly) easy to take risks. After all, if you don’t act, you’re doomed – and there’s probably not much to gain by holding back. But what about the times when things are going smoothly, when you may have more to lose by going out on a limb? Then it’s much easier to convince yourself there’s no need to tamper with the status quo. Excuse No. 9: “…<crickets chirping, dust falling, grass growing>…” That’s the sound of silence. You know – what you hear when you decide to let a project or initiative die over time instead of doing what’s necessary to bring it to fruition. Whether you lack motivation or your surrender is fear driven, your risk-avoidance behavior may take the form of lack of follow through. Excuse No. 10: “But I don’t avoid risk!” Even if you, the business owner, have conquered your fear of risk and move into uncharted territory without hesitation, progress paralysis still might be affecting your company through your employees’ actions (or inaction). If you as the owner don’t take ownership of your team’s counterproductive behavior, you could miss out on a lot of opportunities. Risk avoiders live in a false reality. The temporary comfort they gain from rationalizing their inaction postpones the inevitable. Hoping something will change will result in defeat, the end of their dreams. Success comes only through constant progress, which requires making something happen. As a leader, your example of enthusiastically seeking opportunity to execute, improve and deliver results will guide all who follow you. So stop avoiding – and start acting. FCT Tom Panaggio co-founded two successful direct marketing companies and is the author of The Risk Advantage: Embracing the Entrepreneur’s Unexpected Edge (River Grove Books, 2013, ISBN: 978-1-93841644-6, $14.95). It is available at national bookstores, from major online booksellers and at www.TheRiskAdvantage.com. Reprinted with the author’s permission. FLORIDA CPA TODAY

www.ficpa.org

The American Taxpayer Relief Act

Affecting 2013 Returns

he American Taxpayer Relief Act (the Act), passed in early 2013, affords tax professionals the perfect opportunity to provide guidance on and understanding of the myriad changes that will affect their clients. The Act has reinstituted a pre-2001 tax rate of 39.6 percent; changed income thresholds; reinstated prior tax-deduction limitations; provided permanent relief for Alternative Minimum Tax (AMT); and included some tax incentives for a handful of special interests.

By Donald L. Drummond, CPA, CGMA

The Act reintroduces the 39.6 percent higher tax rate, which existed before the Economic Growth and Tax Relief Reconciliation Act of 2001. Table I shows the tax-rate brackets and income thresholds per filing status for 2013 under the Act. (See Internal Revenue Code [IRC] §1.) In addition, the “Medicare Surtax” that was part of the Patient Protection and Affordable Care Act is imposed on individuals, trusts and estates as of Jan. 1, 2013. The surtax has two components: the 0.9 percent withholding surtax that applies to wages and self-employment income in excess of the threshold, and the 3.8 percent net-investment income surtax in excess of the threshold. Single taxpayers reach the wage threshold at $200,000, and taxpayers who are married and file jointly reach the wage threshold at $250,000. The threshold for the netinvestment income for a taxpayer filing single is $200,000, and the threshold for taxpayers who are married and filing jointly is $250,000. (See IRC §1411.) The Act has increased long-term capital gains tax rates. However, had Congress not passed the Act, the rates for long-term capital gains would have reverted to 20 percent (10 percent for taxpayers in the 15 percent tax bracket). Table II presents capital-gains tax rates for taxpayers in various income thresholds per filing status for 2013. (See IRC §1.) 12 JANUARY/FEBRUARY 2014

The Act provides permanent relief to the AMT by permanently increasing the amount of income exempt from AMT. Congress also permanently indexed the exemption amount for inflation. Had Congress not acted, an estimated 60 million taxpayers now would be subject to AMT. (See IRC §55.) In addition to the AMT limitations, congress has reintroduced the Pease Limitations. These limitations reduce the amount of itemized deductions higher-tax bracket taxpayers are allowed to deduct. The limitations also reintroduced the personal-exemption phase out for taxpayers at higher income levels. (See IRC § 68.)

The reduction of itemized deductions under the Pease Limitations will reduce the benefit of most itemized deductions, including charitable contributions; mortgage interest; state, local and property taxes; and miscellaneous itemized deductions. Certain itemized deductions are not subject to the Pease Limitations. These include medical expenses; investment-interest deductions; and casualty, theft and gamblingloss deductions. However, these typically are not significant deductions for many taxpayers. The limitation applies when a taxpayer’s adjusted gross income reaches a certain threshold, and it limits the deduction by the lesser of 3 percent of the adjusted gross income above the application amount, or 80 percent of the itemized deductions otherwise allowable for the taxable year. For example, a married couple has an adjusted gross income of $580,000 and the limitation applies at $300,000. Assuming the couple’s itemized deductions total $52,000

and are entirely subject to the Pease Limitations, the impact would be the lesser of: • 3 percent x ($580,000 - $300,000), a reduction of $8,400; or • 80 percent x $52,000, a reduction of $41,600 In this example, itemized deductions would be limited by $8,400, resulting in total itemized deductions of $43,600. Personal Exemption Phaseout, suspended as part of the Bush-era tax cuts, is back as part of the Act. The phaseout reduces the total amount of higher-income taxpayers’ allowable personal exemptions up to 100 percent. The phaseout threshold for a single filer starts at $250,000, phasing out completely at $372,500. The phaseout threshold for a couple filing jointly starts at $300,000 and phases out at $422,500. This marks a resurgence of the socalled “marriage penalty.” ➡

BRACKET

SINGLE

MARRIED, JOINT*

HEAD OF HOUSEHOLD

10 percent

$0 - $8,925

$0 - $17,850

$0 - $12,750

15 percent

$8,926 - $36,250

$17,851 - $72,500

$12,751 - $48,600

25 percent

$36,251 - $87,850

$72,501 - $146,400

$48,601 - $125,450

28 percent

$87,851 - $183,250

$146,401 - $223,050

$125,451 - $203,150

33 percent

$183,251 - $398,350

$223,051 - $398,350

$203,151 - $398,350

35 percent

$398,351 - $400,000

$398,351 - $450,000

$398,351 - $425,000

39.6 percent

$400,001 and up

$450,001 and up

$425,001 and up

Table I: 2013 tax-rate brackets by income and filing status under the Act. *Rates for taxpayers who are “married, filing separate” are half the “married, filing joint” figures.

RATE

SINGLE

MARRIED, JOINT*

HEAD OF HOUSEHOLD

0 percent

$0 - $36,250

$0 - $72,500

$0 - $48,600

15 percent

$36,251 - $400,000

$72,501 - $450,000

$48,601 - $425,000

20 percent

$400,001 and up

$450,001 and up

$425,001 and up

Table II: 2013 capital-gains tax rates by income and filing status. *Rates for taxpayers who are “married, filing separate” are half the “married, filing joint” figures.

www.ficpa.org

Note that the phaseout for joint filers begins at a mere $50,000 higher than for single taxpayers. Married taxpayers who file separately will find no relief either, as their phaseout thresholds still are half that of joint-filer taxpayers. (See IRC § Sec. 151.) Good news applies to credits related to children and dependents. The Act permanently extends the $1,000 Child Tax Credit that was set to revert to pre-2003 levels of $500 per child, and continues to apply to children under the age of 17. The Act also extends permanently the Bush-era enhancements to child and dependent-care credits. The 35 percent credit rate was made permanent, along with the $3,000 cap on expenses for one qualifying child and $6,000 for two or more qualifying children. One issue left unaddressed is a provision for inflation in future years. (See IRC § 24.) The Act also extends or enhances education incentives. It extends the American Opportunity Tax Credit through 2017 and the deduction for qualified tuition and related expenses through 2013. The Act suspends the 60-month rule for the student-loan interest deduction; expands the modified adjusted-gross income range for phase-out of deductions; and eliminates the restriction of voluntary

14 JANUARY/FEBRUARY 2014

payments of interest, which previously was nondeductible. (See IRC § 25A.) The Act provides for the reintroduction of a higher tax bracket; creates a definition of whom Congress considers “wealthy;” and reinstates the marriage penalty only for taxpayers congress considers “wealthy.” The Act also provides permanent relief for millions of taxpayers under the AMT while reintroducing the Pease Limitation and exemption exclusion phaseouts for wealthier taxpayers. The Act permanently extends child-related tax credits with no change to the pre-existing phaseout levels. The Act further extends Section 179 expensing amounts and bonus depreciation through 2013. Practitioners must be aware of these changes and how they will affect each client’s tax situation this year. Tax planning remains a crucial aspect of the profession. FCT Donald L. Drummond is a CPA in Jacksonville. He is a tax manager and the director of business development for GunnChamberlain, P.L. Certified Public Accountants. He also is a member of the FICPA Federal Taxation Committee.

STAFF

reports

From FICPA staff reports

Educational Foundation By Jason Zaborske, FICPA educational foundation development director and Elise Caruthers, coordinator

25th Annual 1040K Run/Walk Returns to the Grove

ince 1989, the FICPA Educational Foundation has hosted a 5K/10K race in South Florida. This year we’ll celebrate the 25th annual race by returning to Coconut Grove. The 2014 1040K will be held April 16, 2014. The event enjoys tremendous support in South Florida and is great fun for CPAs and the local community. The race is a celebration of the end of tax season, as well as a way to support a worthwhile scholarship fund. This event’s traditions continue with our special-guest CPAs dressed in shirts, ties and running shorts, and we’ll offer free beer to all attendees!

The 1040K has raised more the $250,000 for South Florida accounting students. With your help, we plan to provide more than $12,000 in scholarships this year. We hope you’ll join us to help continue the longstanding tradition and success of the 1040K Run/ Walk. FCT

Students Chinel Ducasse, Porchia Lazier and Jeremiah Irving (left to right) receive $3,000 Foundation scholarships at the 2011 1040K Run in Coconut Grove .

Early-bird registration specials start in January. For more information or sponsorship opportunities, contact Jason Zaborske, educational foundation development director, at (850) 251-7274 or edfound@ficpa.org.

New Members

Save the Date

The FICPA happily The Educational Foundation and the Suncoast Scramble Committee invite you to join us for the 2014 Suncoast Scramble Golf Tournament. This year’s

tournament will be held May 2 at the East Lake Woodlands Country Club in Oldsmar. Please mark your calendar for this annual tournament! FCT

What: 2014 Suncoast Scramble Golf Tournament Where: Oldsmar When: Friday, May 2 Register: www.ficpa.org/golf

FLORIDA CPA TODAY

welcomes many new What: 2014 1040K Run/Walk 5K and 10K Where: Coconut Grove When: Wednesday, April 16 Register: www.1040K.org

members throughout the year. To see a list of members who have recently joined, visit the FICPA website at www.ficpa.org/ meetnewmembers.

www.ficpa.org

LATE ELECTIONS UNDER SUBCHAPTER S New Revenue Procedure Revenue Procedure 2013-30, 2013-36 IRB 173, was released late in August 2013 and published in the Internal Revenue Bulletin dated Sept. 3, 2013. It consoli dates and supersedes the provisions of prior revenue procedures dealing with simplified methods to obtain relief for various late filed elections under Subchapter S without a private letter ruling into one revenue procedure. Rev. Proc. 2013-30 provides the exclusive simplified methods for taxpayers to request relief for each of the following: • • • • •

Late S corporation elections Late ESBT elections Late QSST elections Late QSub elections Late corporate classification elections which the taxpayer intended to take effect on the same date that the taxpayer intended that an S corporation election for the entity should take effect.

The new revenue procedure provides relief without the need for a private letter ruling if the taxpayer satisfies certain requirements and it sets forth the methods of obtaining the desired relief. It also contains flow charts summarizing the requirements for relief.

BASIS ISSUES Losses Reduce Stock Basis Even if Shareholder Does Not Deduct the Losses S corporation shareholders are permitted to deduct losses and deductions flowing through to them from an S corporation only to the extent of their basis 16 JANUARY/FEBRUARY 2014

Update in the S corporation stock and debt. Stock basis is increased for income and reduced by losses flowing through to shareholders. In Barnes v. Commissioner, 712 F. 3rd 581 (DC Circuit, April 5, 2013), the Appeals Court affirmed the Tax Court decision involving the calculation of Barnes’ basis in the stock of an S corporation. The Barneses claimed that by not deducting losses to which they were entitled, that the basis of their S corporation stock was not reduced. Both the Tax Court and District of Columbia Circuit held that they were wrong. S corporation stock basis is reduced by losses even if the shareholders do not claim these losses. QSub Election Does Not Affect Stock Basis In Ball v. Commissioner, TC Memo 2013-39 (Feb. 6, 2013), the issue was whether petitioners properly increased their adjusted basis in S corporation shares when the S corporation made a qualified Subchapter S subsidiary election (QSub election) that resulted in a deemed Section 332 liquidation of its 100 percent subsidiary. Taxpayers had contributed all of their S corporation stock to a new corporation that elected Subchapter S status and then made a QSub election for its wholly owned subsidiary. The taxpayers claimed that this increased their basis in the new S corporation stock. When they sold that stock, they reported a loss instead of a gain because of the adjustment in basis that they made following the QSub election. Petitioners claimed that the QSub election produced an item of income that increased their bases prior to the sale of their stock. After a lengthy discussion, the Tax Court concluded that unrecognized gain resulting from the QSub election does not create an item of income or tax exempt income pursuant to Code Section 1366(a) (1)(A). Thus, the Tax Court concluded that the taxpayers improperly adjusted their bases in the S corporation stock following the QSub election. FLORIDA CPA TODAY

By Sydney S. Traum, BBA, JD, LLM (Tax), CPA

Assumption of Liabilities on Liquidation Does Not Affect Stock Basis In a Legal Memorandum, ILM 201237017, IRS addressed the question of whether there is an increase in the shareholder stock basis when an S corporation distributes encumbered assets to a shareholder in exchange for the shareholder’s stock in a complete liquidation, and whether the assumption of the liability associated with the distributed assets affects the shareholder’s stock basis. It concluded that the distributed assets are accounted for in calculating the S corporation’s gain or loss on the assets under section 336. However, there is no adjustment to the shareholder’s stock basis associated with the assumption of a liability on liquidation. FCT This information is an excerpt from a longer article. To read the entire article, visit www.ficpa.org/Content/ Members/Tools/Publications/FCT/Technical.aspx. Sydney S. Traum, BBA, JD, LLM, CPA practices law in Miami-Dade County. His professional association is “Of Counsel” to a local law firm. He is author of The S Corporation: Planning & Operation and The S Corporation Answer Book, published by CCH/Aspen Publishers Inc. (Wolters Kluwer). He received the FICPA Editorial Committee’s 2011 Writing Excellence Award for his article, “Update on S Corporations,” which appeared in the January/February 2011 issue of Florida CPA Today. A licensed CPA and attorney in New York and Florida, Traum is Board chairman of the Florida Association of Attorney-CPAs and treasurer of the Harvard Club of Miami. He is a member of the American Association of Attorney-CPAs Executive Committee; the American Bar Association Tax Section S Corporations Committee; The Florida Bar Probate Rules Committee; the FICPA Federal Taxation Committee; and the FICPA Miami-Dade County Chapter Board of Directors. www.ficpa.org

NEWS

briefs

Gov. Scott re-appoints Robinson to BOA

FICPA sponsors Cuban American CPAs Gala

Gov. Rick Scott recently announced the reappointment of Eric Robinson to the Florida Board of Accountancy (BOA). Robinson is a CPA with Robinson, Hanks, Young and Roberts CPA in Venice. He was reappointed for a term beginning Nov. 1, 2013, and ending Oct. 31, 2017.

The FICPA was a platinum sponsor of the Cuban American CPAs Association (CACPA) 2013 Annual Installation Gala. The gala was held Nov. 2 at Eden Roc Miami Beach. FCT

Eric Robinson, CPA

“We truly appreciate Eric’s service on the BOA,” said FICPA President/CEO Deborah Curry, CPA, CGMA. “We look forward to working with him during his second term.” The appointment is subject to confirmation by the Florida Senate. FCT

CACPA Past President Ed Duarte, CACPA President Nestor Caballero, FICPA Board Chair Ken Strauss and CACPA Ex Officio Marcos Alvarez (left to right) enjoy the Cuban American CPAs Association Installation Gala in Miami Beach.

Allison Harrell Allison Harrell of Thomas Howell Ferguson in Tallahassee has been appointed by the AICPA to the Governmental Audit Quality Center Executive Committee for the 2013-2014 year.

DBPR increases awareness about unlicensed activity

“We’re very pleased that the AICPA has appointed Allison to this committee,” said FICPA President/ CEO Deborah Curry, CPA, CGMA. “As one of our young CPAs, she has already accomplished so much, and we’re happy to be able to work with her at the national level.”

FICPA member-firms named Best Companies to Work For Florida Trend has named eight FICPA member-firms among Florida’s Best Companies to Work For. The fifth annual list includes 100 small, medium and large companies throughout the state. Here are the winning FICPA memberfirms and their rankings. Large companies (250 or more employees) 13) Kaufman Rossin Group Midsized companies (50 to 249 employees) 12) Cross, Fernandez & Riley 14) Berkowitz Pollack Brant 15) Gregory, Sharer & Stuart CPAs 33) Averett Warmus Durkee CPAs Small companies (15 to 49 employees) 7) Markham Norton Mosteller Wright & Co. 8) Ennis, Pellum & Associates CPAs 30) CS&L CPAs For a complete list of the Florida’s Best Companies to Work For, visit www. floridatrend.com/best-companies, or see the August 2013 issue of Florida Trend. FCT 18 JANUARY/FEBRUARY 2014

The Florida Department of Business and Professional Regulation (DBPR) recently launched its annual unlicensed activity advertising campaign. The mission is to increase awareness among Florida consumers and professionals about the importance of doing business with licensed professionals. A portion of the campaign is dedicated to the CPA profession. Floridians should report any suspected unlicensed activity by emailing ULA@myfloridalicense.com or calling the Unlicensed Activity Hotline at (866) 5321440. For more information about this year’s campaign, including ads targeted to the CPA profession, visit www. myfloridalicense.com/ULA. FCT

From FICPA staff reports

Want tax reform? Mail your congressman a 1040 birthday card

Riggs to serve on Triumph Gulf Coast Board of Directors Florida Chief Financial Officer Jeff Atwater recently chose Stephen Riggs IV of Carr, Riggs & Ingram, LLC in Miramar Beach to serve on the Triumph Gulf Coast Board of Directors. Riggs is one of three people from Okaloosa County who will serve on the five-member board. The board will oversee spending of much of the oil-spill fines BP pays to the State of Florida.

In 2013, the Income Tax and the form 1040 celebrated their 100th birthday. As part of its “Income Tax at 100: What Were They Thinking?” campaign, Patrick & Robinson conducted a birthday-card contest. The winning card is available at www. cpasite.com/tax100card.htm. Fold it as directed; write a note about why the tax code should be changed; and mail it to your congressmen. FCT

FLORIDA CPA TODAY

Stephen Riggs IV, CPA

“I am honored by the appointment and will represent our profession in a positive manner,” Riggs said. “Stephen is an excellent addition to this important board,” said FICPA President/CEO Deborah Curry, CPA, CGMA. “We’re proud to have one of our members participating in the final phase of our state’s long road to recovery from this disaster.” FCT

www.ficpa.org

Robert Half Offers 2014 Corporate Accounting Chief Financial Officer a Company Sales in Millions $100-250K $ 50-100K

$137,250 - $198,000 $113,500 - $160,750

$142,000 - $204,000 $116,500 - $167,000

3.2% 3.4%

Controller a Company Sales in Millions $100-250K $ 50-100K

$100,750 - $135,000 $103,250 - $142,750 $82,500 - $116,000 $85,000 - $122,000

4.3% 4.3%

Public Accounting 2013 2014 Tax Services Mid-size Firmsb Senior Manager/Director a $101,500 - $155,250 $104,000 - $161,500 Manager a $84,250 - $113,250 $86,750 - $117,250 Senior $67,000 - $88,750 $68,750 - $91,750

% change

Audit/Assurance Services Mid-size Firmsb Senior Manager/Director a Manager a Senior

2013 2014 % change

$100,750 - $153,000 $102,500 - $159,250 $83,500 - $111,250 $85,500 - $115,500 $66,500 - $87,500 $66,500 - $87,500

Fort Myers Jacksonville 2014 2014 $124,960 - $179,520 $132,770 - $190,740 $102,520 - $146,960 $108,928 - $156,145

$90,860 - $125,620 $74,800 - $107,360

$96,539 - $133,471 $79,475 - $114,070

3.4% 3.3% 3.0%

$91,520 - $142,120 $76,340 - $103,180 $60,500 - $80,740

$97,240 - $151,003 $81,111 - $109,629 $64,281 - $85,786

3.2% 3.2% 3.5%

$90,200 - $140,140 $75,240 - $101,640 $58,520 - $77,000

$95,838 - $148,899 $79,943 - $107,993 $62,178 - $81,813

Bonuses and incentives reflect an increasingly large part of overall pay at this level and are not included in the salary ranges listed above. Advanced degrees or professional certifications also are assumed at this level. a

$25 million to $250 million in sales. Salary does not reflect overtime or bonuses, which are significant portions of compensation for these positions.

Unless otherwise noted (see footnote a), add 5-10 percent to graduate degrees or professional certifications.

obert Half International recently published its 2014 Accounting & Finance Salary Guide, which features starting-salary ranges for almost 300 positions in the accounting, finance, banking and financial-services fields.

“Skills determine whether a candidate is competing in this market or sitting on the sidelines,” said Ryan Skubis, Robert Half district president for Florida/North Carolina/ South Carolina. “People who have in-demand skills get more offers more quickly than those who don’t. Mobile, big-data, regulatory/compliance and soft skills are especially hot.

In-demand Credentials and Skills With big data, organizations look to accounting and finance professionals to analyze the data, tell the story and make strategic recommendations, Skubis said. Recommendations aren’t just related to IT initiatives, but to operations, human resources and other departments, as well as companywide initiatives. Organizations are relying on accounting and finance professionals to offer analysis to help manage costs, grow profits and make better strategic decisions. 20 JANUARY/FEBRUARY 2014

“Credentials still are a way to separate yourself from the pack,” Skubis said. “The CPA and MBA credentials still are in strong demand, as are internal audit certifications such as the CIA and CISA credentials. “These types of credentials put people in a different category in the job search,” he said. Robert Half’s 2014 Salary Guide includes local variances for many U.S. cities. Readers can use the variance numbers to calculate local salary ranges based on national ranges. Above are national salary averages for eight positions in corporate and public accounting, along with local-variance calculations for nine major Florida cities. FCT

To access Robert Half’s Salary Calculator, or to order or download a free copy of the 2014 Accounting & Finance Salary Guide, visit www.roberthalffinance.com/ salarycenter. Portions of this article are reprinted from the 2014 Accounting and Finance Salary Guide with permission of Robert Half International.

Salary Guide

Miami/Ft. Lauderdale Melbourne 2014 2014

Orlando 2014

St. Petersburg 2014

From FICPA communications staff reports

Tampa 2014

West Palm Beach 2014

$151,514 - $217,668 $126,380 - $181,560 $139,870 - $200,940 $133,480 - $191,760 $137,030 - $196,860 $141,290 - $202,980 $124,306 - $178,189 $103,685 - $148,630 $114,753 - $164,495 $109,510 - $156,980 $112,423 - $161,155 $115,918 - $166,165

$110,168 - $152,314 $90,695 - $130,174

$91,893 - $127,048 $101,701 - $140,609 $97,055 - $134,185 $99,636 - $137,754 $102,734 - $142,036 $75,650 - $108,580 $83,725 - $120,170 $79,900 - $114,680 $82,025 - $117,730 $84,575 - $121,390

$110,968 - $172,321 $92,562 - $125,106 $73,356 - $97,897

$92,560 - $143,735 $102,440 - $159,078 $97,760 - $151,810 $100,360 - $155,848 $103,480 - $160,693 $77,208 - $104,353 $85,449 - $115,491 $81,545 - $110,215 $83,714 - $113,146 $86,316 - $116,664 $61,188 - $81,658 $67,719 - $90,374 $64,625 - $86,245 $66,344 - $88,539 $68,406 - $91,291

$109,368 - $169,920 $91,229 - $123,239 $70,956 - $93,363

$91,225 - $141,733 $100,963 - $156,861 $96,350 - $149,695 $98,913 - $153,676 $101,988 - $158,454 $76,095 - $102,795 $84,218 - $113,768 $80,370 - $108,570 $82,508 - $111,458 $85,073 - $114,923 $59,185 - $77,875 $65,503 - $86,188 $62,510 - $82,250 $64,173 - $84,438 $66,168 - $87,063

FLORIDA CPA TODAY

www.ficpa.org

Estate-tax Issues Affecting By John McKinley, JD, LLM, CPA, CGMA and John Owsley, Ph.D.

22 JANUARY/FEBRUARY 2014

Non-resident Aliens

ith many developing economies transitioning into advanced economies, and with the decline in household wealth in the wake of the Great Recession, investment in assets located in the U.S. increasingly has come from abroad. In the 12-month period ended March 2012, international buyers accounted for 8.9 percent spent on residential real estate in the U.S. – a 24-percent increase from the prior year. Five states, including Florida, accounted for 55 percent of all international sales. This does not consider stock purchases, by non-resident aliens, in U.S.-based corporations. This article examines the estate-tax compliance issues affecting non-resident aliens investing and holding real estate, tangible personal property and stock in the U.S. The article focuses on some of the reporting issues involved in filing Form 706-NA, including the purpose of the form; the criteria for determining whether a decedent is considered a non-resident alien; the criteria for determining what portion of a non-resident alien’s estate is subject to U.S. estate taxes; and the tax ramifications of an estate-tax treaty between the U.S. and the non-resident alien decedent’s home country. The purpose of Form 706-NA Internal Revenue Code (IRC) § 2101 imposes a transfer tax on the estate of any non-resident, non-citizen, of the U.S. Form 706-NA, United States Estate (and Generation Skipping Transfer) Tax Return, is used to compute estate- and generation-skipping transfer (GST) tax liability for all non-resident alien decedents. Form 706-NA must be filed within nine months of the date of the decedent’s death. The taxpayer can request an automatic six-month extension by filing Form 4768 by the original due date. If Form 706-NA is not promptly filed, or the tax payment is not remitted by the original due date, penalties will be levied against the estate. Who must file Form 706-NA applies only to non-resident alien decedents – individuals whom, upon their death, are not U.S. residents or citizens. For purposes of determining estate and gift tax, residency is not determined by the residency rules for income-tax purposes (Sec. 7701(b) (6)). For estate and gift-tax purposes, U.S. residency requires physical presence at some place in the U.S., and the intention to make that place a fixed and permanent home (Christina de Bourbon Patino, 51-1 USTC ¶9123 (4th Cir.), aff’g, 13 T.C. 816 (1949)). If the facts and circumstances support the preceding notion of residence, the executor of the decedent’s estate must file Form 706. The executor of a non-resident alien decedent’s estate must file Form 706-NA if the date-ofdeath value of the gross estate located in the U.S. exceeds the filing limit of $60,000. Determining the taxable estate Gross estates of non-resident aliens with property located in the U.S., and valued at $60,000 or more, might be subject to estate tax. This is before taking into account any

➡ FLORIDA CPA TODAY

In the 12-month period ended March 2012, international buyers accounted for 8.9 percent spent on residential real estate in the U.S. – a 24-percent increase from the prior year.

Pg. 25

www.ficpa.org

DOR

update By Barbara Oâ&#x20AC;&#x2122;Donnell, revenue program administrator

and appealing directly to the Department of Consumer Affairs. At the conclusion of fieldwork, before the NOPA is issued, the auditor will present the findings to the taxpayer using the Notice of Intent to Make Audit Changes (DR-1215). The taxpayer has 30 days from the date of the DR-1215 to request a field conference. This conference generally includes the field auditor and manager, along with the taxpayer and representative. It is an opportunity for the taxpayer to ask questions, clarify findings and discuss the status of any documentation the auditor has requested, but hasnâ&#x20AC;&#x2122;t received. After the conference, the auditor will revise the DR-1215 as appropriate. The manager then will review the audit file again before the final review, processing and NOPA issuance.

Taxpayer Bill of Rights Specifies Audit Timeline

he Taxpayer Bill of Rights provides that taxpayers are entitled to have audits begin and end promptly. The Notification of Intent to Audit (DR-840) establishes the audit period and specific timeframes that must be followed. Taxpayers are allowed 60 days from the DR840 to get their books and records in order, and the audit must begin within 120 days of the DR-840 date. The Notice of Proposed Assessment (NOPA) summarizes the audit results. It states the additional amount due the state, or refund due the taxpayer, and must be issued within one year of the DR-840. Taxpayers may protest NOPA findings in several ways. These include informal protests, petitions for administrative hearings, filing in circuit court

24 JANUARY/FEBRUARY 2014

The auditor has approximately 90 to 120 days to conduct the fieldwork phase of an audit. During that time, auditors may conduct initial interview; tour the facility; review books and records; convert electronic records; refine document requests; and identify technical issues. Ideally, the auditor, taxpayer and representative communicate throughout the fieldwork, so any deficiencies presented in the DR-1215 are not a surprise. After receiving the DR-1215, the taxpayer may have additional documentation, statutory citations or other information that could provide the basis for a revision to the DR-1215. If so, the taxpayer must provide it to the auditor, so he or she can incorporate it in the revision forwarded to Tallahassee for final review. The auditor must receive this new material promptly. Field-audit staff is committed to managing the audit timeline. Taxpayers should expect auditors to discuss specific timeframes and complete audits promptly, with minimal business disruption. FCT For more information, contact Barbara Oâ&#x20AC;&#x2122;Donnell at odonnelb@dor.state.fl.us.

➡ Continued from Pg. 23

“allowable deductions” or estate-tax treaties between the U.S. and the non-resident alien’s home country. The value of the decedent’s gross assets is determined at the date of the decedent’s death or, six months later, on the alternate valuation date. Property located in the U.S., allowable deductions and credits For real estate and tangible personal property, “located in the U.S.” is determined by physical presence in the U.S. (regardless of where the owner resides). If a nonresident alien buys stock in a U.S. corporation (e.g., General Electric), the stock is considered located in the U.S., regardless of where the stock certificates are held. Furthermore, any debt obligations that a U.S. citizen, corporation or governmental agency issues to a nonresident alien are treated as gross assets, which need to be included within the decedent’s gross estate. From their gross assets, the decedent’s estate is entitled to deduct any and all “allowable deductions.” These include charitable contributions to U.S. charities designated as such by the IRC. The decedent’s estate also is entitled to certain expenses, losses, indebtedness or taxes incurred by the estate. These expenses must be prorated by the U.S.-share of the decedent’s worldwide estate. Assuming the decedent is not married to a U.S. resident, one deduction that is not allowed to a non-resident alien is the marital deduction, unless it meets the provisions of a Qualified Domestic Trust (Sec. 2056). Non-resident aliens are entitled to a unified credit of $13,000, reduced by any lifetime gifts. Non-resident decedents whose gross assets are less than $60,000 upon their death may still have to file a Form 706-NA, if they have used any part of the $13,000 unified credit during their lifetime. Treaty versus non-treaty countries When determining a non-resident decedent’s tax liability, the estate must take into account whether the decedent resided in a country governed by an estate-tax treaty with the U.S. Currently, 16 countries maintain an estate-tax treaty with the U.S. (Instructions for Form 706-NA). If the non-resident alien is from a treaty-based country, he or she must attach a statement to Form 706-NA indicating the return was prepared based on a treaty with the U.S. (Reg. Sec. 301.6114-1). Non-treaty based estate tax FLORIDA CPA TODAY

returns (i.e., Form 706-NA) are governed by the estate-tax provisions for non-resident aliens in IRC § 2101-2108. According to the SOI Tax Stats (Non-resident Alien Estate Tax Returns), for 2012 there were 162 taxable and nontaxable returns from decedents in non-treaty based countries, compared to 563 in treaty-based countries. This was a significant increase from 2011, when 97 nontreaty and 341 treaty-taxable and non-taxable returns were filed. Owning property in the U.S. could have a substantial tax impact on a non-resident alien decedent’s estate. Example: A taxpayer is a foreign non-resident alien/ citizen who currently resides in a country that does not have an estate-tax treaty with the U.S. Several years ago, the taxpayer purchased property in Florida for $300,000. The taxpayer dies during the current year, when the asset is valued at $500,000. Assuming there are no allowable deductions, and the $13,000 unified credit has been exhausted, the decedent’s taxable estate in the U.S. is $500,000. Using the Instructions for Form 706-NA, the tax due from the decedent’s estate would be $155,800 = $70,800+34 percent*($500,000-$250,000). This could be a burdensome result to the decedent’s heirs, including his or her spouse, who might not get the benefit of the marital deduction. The results in this example might be somewhat different if the decedent resided in a country that had a tax treaty with the U.S. Given the rise of non-resident alien investment in U.S. real estate, equities and other capital assets, practitioners should be aware of the tax compliance implications that might occur if a non-resident alien owns property in the U.S. By owning property today in the U.S, non-resident aliens might be creating a bigger tax burden for their heirs in the future. FCT John McKinley, JD, LLM, CPA, CGMA is an accounting lecturer at Cornell University and an adjunct accounting lecturer at Ithaca College. John Owsley, Ph.D. is a CPA candidate. He is a senior associate in Financial Services Transfer Pricing at Ernst & Young. www.ficpa.org

Installment Agreements

Advising Clients with Delinquent Federal Taxes By Russell F. Dunn, MS (Tax), CPA

lients call on tax practitioners for advice regarding delinquent federal taxes. Many clients wish to believe late-night TV commercials promoting firms that promise to settle federaltax debt for pennies on the dollar. This puts scrupulous tax professionals in the position of having to dispel these myths. Advisors must evaluate each client’s options and recommend a course of action.

The scenario of unpaid taxes is not pleasant, and the recent economic downturn

The first issue is to determine whether or not the client can pay the balance in full, including possible accruals of penalty and/or interest. The IRS has a notices process that can last several months. If the client can pay the balance within this time, the practitioner should inform the IRS. This can be done by obtaining an IRS Form 2848, Power of Attorney and Declaration of Representative and calling the IRS. It also is advisable to write a letter confirming the conversation. In order to monitor the IRS notices, the practitioner also should fax Form 2848 to the appropriate IRS Centralized Authorization Files (CAF) unit.

has

If the tax professional and client agree that a short-term payment in full is not exacerbated likely, they should consider an installment agreement; an offer in compromise; the problem. or a referral to a bankruptcy attorney knowledgeable in federal-tax matters. The correct recommendation will be based on the client’s particular facts and circumstances. This article focuses on the installment agreement as a solution. Internal Revenue Code (IRC) § 6159, “Agreements for Payment of Tax Liability in Installments,” grants the IRS authority to enter into an installment agreement. The “magic words” of section 6159(a) are, “if the Secretary determines that such agreement will facilitate full or partial collection of such liability.” There are interpretive regulations as well as other administrative and case law. The Internal Revenue Manual (IRM) provides IRS employees and tax practitioners with guidance regarding these procedures. 26 JANUARY/FEBRUARY 2014

When an installment agreement likely is the optimal solution, the practitioner should research the current status of IRS collections programs. The IRS uses different criteria, depending on the amount of the unpaid tax, penalty and interest. Tax practitioners will be responsible, as power of attorney, for communicating with the IRS. It is important to meet all IRS demands for information as completely and as promptly as possible. IRS employees have fairly strict guidelines regarding collections cases. Documentation submission is critical to obtaining an installment agreement. Communicating with the taxpayer also is critical. Practitioners should communicate with clients as matters progress, so there are no surprises. Current trends regarding installment agreements include the concept of “streamlined” agreements. The IRS also has used the phrase “fresh start” to describe recent initiatives. Streamlined, as the name implies, connotes a set of circumstances whereby specific facts and circumstances should yield an approved installment agreement with a quicker, less invasive examination of the taxpayer. The details for these initiatives depend on several factors, including: 1. Is the taxpayer an individual or a business? 2. If the taxpayer is a business, are the unpaid taxes trust fund (payroll) taxes? 3. Is the taxpayer a repeat offender? 4. Can the tax plus accruals of interest and/or penalties be paid in full within the normal 10-year Collections Statute Expiration Date (CSED)?

If the unpaid taxes are trust-fund taxes for a business that is still operating (In-business), the representative may contact the IRS to request an “In-business Trust Fund Express Agreement Installment Agreement.” The criteria for this agreement are: 1. The balance owed at the time of the agreement request is $25,000 or less. If the balance is more than $25,000, it can be paid down below this threshold to meet this requirement. 2. The entire debt, including accruals, must be paid within the shorter of 24 months or prior to the expiration of the CSED. 3. If the balance owed is more than $10,000, a Direct Debit Installment Agreement (DDIA) must be established. 4. All compliance requirements must be met at the time of the agreement and for the remainder of the agreement. This requirement includes filing all required tax returns by their due date (including extensions, if any) and promptly paying all taxes. If the unpaid taxes are for an individual, a Guaranteed Installment Agreement or a Streamlined Installment Agreement should be considered. The IRS still will use streamlined procedures to process a Guaranteed Installment Agreement. The term streamlined means collections examiners may not require submission of the taxpayer’s financial statements. IRC §6159(c) authorizes Guaranteed Installment Agreements, subject to these criteria: 1. The balance owed is $10,000 or less, determined without regard to penalty and/or interest. 2. All required returns have been filed for the five preceding tax years. 3. The taxpayer is currently unable to pay the tax in full, subject to such inquiry as the collections examiner may make. 4. The liability, plus accruals, is paid in full within three years of the agreement date. 5. While the agreement is pending, the taxpayer is in full compliance with all tax-filing and payment requirements. FLORIDA CPA TODAY

Taxpayers who don’t qualify for the Guaranteed Installment Agreement may qualify for the Streamlined Installment Agreement. This agreement may be reached if the balance owed, including accruals of penalty and/or interest, is less than $50,000 and the taxpayer can pay the entire liability within 72 months. IRM section 4.20.4.3 defines the “Minimum Acceptable Payment” as the greater of $25, or an amount equal to the unpaid balance divided by 72 months or the remaining months left on the CESD, if less than 72 months. As with all installment agreements, the taxpayer must remain in full compliance with all filing and payment requirements while the agreement is pending. Tax practitioners work with clients on planning and compliance matters. Sometimes clients need assistance with administrative procedures. The scenario of unpaid taxes is not pleasant, and the recent economic downturn has exacerbated the problem. Practitioners can consult the IRS website, as well as the IRC and IRM, to determine whether or not their clients qualify for the new IRS collections initiatives. If so, the process can be less time consuming and burdensome. Providing these services to clients should strengthen the client-practitioner bond. FCT Russell F. Dunn, MS(Tax), CPA is a former IRS revenue agent who currently is a tenured professor of accounting and taxation at Broward College. He has taught graduate and undergraduate tax courses at Florida International University (FIU) and Florida Atlantic University. He was Professor of the Year at the Executive Master of Science Taxation program at FIU. He concentrates his professional practice in IRS practice and procedure.

www.ficpa.org

WEB digest

ROBS Transactions: Under IRS Attack By Edward K. Zollars, CPA

ecent developments suggest the IRS is “getting serious” about challenging taxpayers who have used their retirement-fund rollovers to jumpstart a new business, having their individual retirement account (IRA) own the business. Such transactions, referred to as Rollover as Business Startup (ROBS) transactions, may use an IRA or a plan sponsored by the startup business. The structure appears appealing to the taxpayer. There is no tax on the distribution, so 100 percent of the available funds can be used to invest in the startup business. Also, the entity elects C corporation status, and although it pays income tax, it has access to lower

tax brackets in most cases. Because the IRA does not pay tax upon a disposition of the stock (such as in a later liquidation of the entity), the arrangement reduces the “double tax” disadvantage of the C corporation. The IRS’ concerns have been directed at potential violation by such arrangements of the prohibited transaction rules in Internal Revenue Code (IRC) §4975. In the case of an IRA, such a violation is particularly bad news. If the IRS succeeds in showing that any such prohibited transaction has taken place (no matter how minor), all assets held in the IRA are treated as immediately distributed. The list of “prohibited transactions” is found in IRC §4975(c)(1) and includes: • Sale or exchange, or leasing, of any property between a plan and a disqualified person • Lending of money or other extension of credit between a plan and a disqualified person • Furnishing of goods, services, or facilities between a plan and a disqualified person • Transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a plan • Act by a disqualified person who is a fiduciary whereby he deals with the income or assets of a plan in his own interests or for his own account • Receipt of any consideration for his own personal account by any disqualified person who is a fiduciary from any party dealing with the plan in connection with a transaction involving the income or assets of the plan. This article looks at two 2013 cases where the IRS prevailed on the §4975 argument. It also looks at relief the IRS granted one taxpayer in unwinding such a transaction, and a recent announcement that suggests the IRS is looking to obtain information that will allow them to more easily uncover such arrangements. So you want your new company to pay you? A ROBS (rollover as a business startup transaction) produced disastrous consequences for the individual whose rollover was involved in the case of Ellis v. Commissioner, TC Memo 2013-245, TC Memo 2013245.1 The issue in the case was whether the taxpayer had engaged in a prohibited transaction under IRC §4975 as part of his use of funds received from his previous

28 JANUARY/FEBRUARY 2014

employer’s 401(K) plan to have his IRA start a used-car business. If an IRA engages in a prohibited transaction, the entire balance of the account is deemed distributed to the IRA beneficiary and tax is triggered. The IRS saw four separate points at which a prohibited transaction under §4975 had occurred: • When Ellis had his IRA purchase an initial interest in the newly formed LLC (which elected to be taxed as a corporation) that previously had no ownership interests issued • When Ellis received compensation from the entity as an officer of that entity after formation in 2005 • When Ellis received compensation from the entity as an officer in 2006 • When Ellis had the corporation enter into a lease with an entity owned by Ellis, his spouse and their children in 2006.

transfer, Mr. Ellis dealt with the income or assets of his IRA for his own interest or for his own account in violation of section 4975(c)(1)(E). The Court also rejected the claim that section 4975(d) (10) exempted the transaction. That provision provides an exemption for reasonable compensation paid to a fiduciary for performance of duties of the plan. The Court found the payments were not for his duties of managing the investments of his IRA, but for being the general manager of the car dealership. The Court concluded: In essence, Mr. Ellis formulated a plan in which he would use his retirement savings as startup capital for a used-car business. Mr. Ellis would operate this business and use it as his primary source of income by paying himself compensation for his role in its day-to-day operation. Mr. Ellis affected this plan by establishing the used-car business as an investment of his IRA, attempting to preserve the integrity of the IRA as a qualified retirement plan. However, this is precisely the kind of selfdealing that section 4975 was enacted to prevent.

The Court found that Ellis dodged the first bullet. The IRS argued that, as Ellis constructively owned the corporation, the original purchase of interests was a transaction with a disqualified person (the corporation Ellis controlled). However, the Tax Court agreed with Ellis’ reliance on its decision in the case of Swanson v. Commissioner, 106 TC 76, which held that a corporation with no shareholders was not a disqualified person. Only after the shares were issued (following the transaction) would the new entity become a disqualified person.

That language does not bode well for other ROBS transactions, especially where the individual maintains any sort of connection to the entity and is compensated as part of that connection. FCT

However, Ellis did not fare as well on the second issue. There, the Court found that Ellis controlled the corporation and the payments it would make to him. The court noted that:

This information, reprinted with the author’s permission, is an excerpt from a longer article. To read the entire article, visit www.ficpa.org/Content/Members/Tools/Publications/ FCT/Technical.aspx.

The direct or indirect transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a plan is a prohibited transaction under section 4975(c)(1)(D). Similarly, an act by a disqualified person who is a fiduciary whereby he directly or indirectly deals with the income or assets of a plan in his own interest or for his own account is a prohibited transaction under section 4975(c)(1)(E). The Court found that the payment of salary to Ellis violated this provision. Although it paid Ellis from its own bank account and not that of the IRA, the IRA had virtually exclusively funded the entity. The Court noted: To say that CST merely was a company in which Ellis’ IRA invested is a complete mischaracterization. In reality, CST and Ellis’ IRA substantially were the same entity. In causing CST to pay him compensation, Mr. Ellis engaged in the transfer of plan income or assets for his own benefit in violation of section 4975(c)(1) (D). Furthermore, in authorizing and effecting this FLORIDA CPA TODAY

Endnote http://www.ustaxcourt.gov/InOpHistoric/EllisMemo.Paris.TCM. WPD.pdf 1

Edward K. Zollars, CPA is a partner with Thomas, Zollars & Lynch, Ltd. in Phoenix, Az. He has been in practice for more than 25 years, specializing in tax issues for closely held businesses and individuals. Zollars writes, edits and presents courses for Nichols Patrick CPE Inc. and speaks regularly at AICPA and state CPA society conferences. His articles have been published in Practical Tax Strategies and the Tax Adviser. Zollars started the first tax podcast (Ed Zollars Tax Update, dealing with current tax issues). He has been a member of AICPA Tax Division Committees dealing with tax and technology issues and has served as the Tax Section’s representative to the AICPA’s Top Ten Technologies project. He is a member of the Phoenix Tax Workshop’s Advisory Committee and serves on the Tax Legislation Liaison Committee for the Arizona Society of CPAs. www.ficpa.org

ON THE

move Transitions

Miami: Kabat, Schertzer, De La Torre, Taraboulous & Co. announces that it has merged with the boutique firm of TD CPA of Hollywood, Fla.

Bradenton: CS&L CPAs announces the promotion of Nicole Franklin to audit manager and David Reali and

Miami: Javier Sarmiento founded Sarmiento Consulting Services LLC. For more information about the firm, visit www.scsfirm.com.

Kinga Huse to tax supervisors. Cristina Encarnacion

Fort Lauderdale: Marcum LLP promoted Robert Burton and John L. Heller to directors in the firm’s South Florida Advisory Services Division.

Mandi Someson

Fort Myers: Markham Norton Mosteller Wright & Company,

Orlando: Averett Warmus Durkee announces that Russell Goldberg and Scott McEachron will become principals with the firm, and that the firm has acquired the Altamonte Springs office of Cohen & Co.

PA announces the addition of Ryan Fredericks and Cristina Ryan Fredericks

Encarnacion as members of the firm’s tax team. Fort Myers: Tuscan & Company, PA announces that James West and Melissa Wolfe have joined the firm as

Christopher Wailand

members of the audit team. Jacksonville: Smoak, Davis Russell Perkins

& Nixon LLP announces that

Miami: Bloom, Gettis &

John W. Giehrl has joined the

Habib announces that Felicity

firm as a partner in their tax

H.C. Fang has joined the firm

practice.

as principal.

For more news about members and other Florida CPAs, visit CPAs in the Spotlight at www. ficpa.org/Content/News/Spotlight.aspx. The space for Who’s News, Transitions and other announcements published on this page is limited to news focusing on promotions and new hires for FICPA members; speeches by members at professional conferences; and other firm news, such as recognition of business achievements. We do not publish FICPA committee appointments as a part of this feature because of space limitations. Submissions for On the Move can be emailed to communications@ficpa.org.

30 JANUARY/FEBRUARY 2014

Naples: BP LLC became part of the Hill, Barth & King LLC® family effective Nov. 1, 2013.

Sarasota: Kerkering, Barberio & Co., announces that Eric Leggitt has joined the firm as a Tax Manager. St. Augustine: Janice W. Lake and Associates Inc. announces the addition of Carly E. Williams to the firm as a shareholder. Tallahassee: Thomas Howell Ferguson announces that Russell Perkins has been admitted as a shareholder. Tampa: Cherry Bekaert LLP announces that C. Brett Cooper has joined the firm as a director in the Advisory Service Practice.

Who’s News Averett Warmus Durkee in Orlando is providing free tax tips on their website at www.awd-cpa.com/blog/category/ tax-tips. Gov. Rick Scott appointed six to the South Lake County Hospital District Board of Trustees, including Curtis A. Binney with Sines, Blakeslee and Madyda PA in Winter Garden. Laura Krueger Brock of CBIZ Kirkland, Russ, Murphy & Tapp and Mayer Hoffman McCann PC co-presented “Starting/Growing an NFP Organization” at the 2013 Not for Profit workshop at the David A. Straz, Jr. Center for Performing Arts in Tampa. Joe Echevarria of Deloitte & Touche LLP in Washington, D.C. was named to Accounting Today’s list of 100 Most Influential People in Accounting. Patricia Entsminger and Mandi Someson of Kerkering, Barberio & Co. in Sarasota have obtained the Certified Internal Auditor (CIA) certification from the Institute of Internal Auditors.

James Moore announces that the firm’s certified public accountants are blogging about startup technology businesses in the new “Business 4 Entrepreneurs Blog.” Gregory M. Levy of Kaufman, Rossin & Co. in Miami recently spoke at the 15th Annual Effective Hedge Fund Tax Practices Conference and will speak at the Third Annual Hedge Fund Tax 101 and K-1 Boot Camp conferences. Financial Research Associates LLC is the presenter of the conferences, all held in New York.

gardening, carpentry and other volunteer services. Gov. Rick Scott recently announced three appointments to the Community Association Living Study Council. Among the appointees are Jonathan Peet of Jonathan Peet CPA LLC in Tallahassee. Peet’s term began Nov. 7, 2013 and will end April 1, 2014. Howard D. Rosen of Donlevy-Rosen & Rosen in Coral Gables recently presented “Drafting the Asset Protection Trust” at a joint meeting of

Aubrey Lynch of CS&L CPAs in Bradenton has been named one of CPA Practice Advisor’s “40 Under 40” honorees. Gail Markham of Markham Norton Mosteller Wright & Company PA in Fort Myers recently passed the Association of Fraud Examiners exam and met the requirements to become a Certified Fraud Examiner. Myers, Brettholtz & Company PA in Fort Myers recently spent the day at Child Care of Southwest Florida Inc.’s Fort Myers location, providing

the Florida Bar Tax Section’s New Tax Lawyer Committee and the Florida Association of Attorney-CPAs. Kelsey Thompson of Markham Norton Mosteller Wright & Company PA in Fort Myers has been named one of the Business Observer’s “40 Under 40” for 2013. Christopher Wailand of Kerkering, Barberio & Co. in Sarasota has been awarded the Accredited in Business Valuation (ABV) credential by the AICPA.

FCT

David J. Goddu of the City of St. Petersburg has achieved the designation of Certified Government Audit Professional. Brad Gould of Dean, Mead, Minton & Zwemer in Fort Pierce recently served as the moderator for the Current Developments Program given by the S Corporation Committee of the American Bar Association’s Section of Taxation. FLORIDA CPA TODAY

www.ficpa.org

MARKET

place

Positions available Auditor/accountant position in SW Broward CPA firm – seasonal, part-time, per diem w/2-3 yrs of exp in public accounting. Must have audit, bookkeeping & accounts reconciliation exp. Email resume to erina.master@ masterandcompanypa.com. CPA firm in Hollywood, Fla. seeking a full-time accountant w/ tax & financial statement exp (compilations, reviews & audits). Must have good working knowledge of Quickbooks, Excel & Word. Min 2 yrs exp CPA or CPA candidate preferred. Please send resume, salary history & requirements to nyydolph@gmail. com. Public accounting firm seeks motivated CPA w/strong audit/ review & tax exp (3-5 yrs) to join our hard-working team of professionals whose focus is serving a diverse client base. Excellent opportunity for transition into ownership. Resumes to mail@stevenspowell-cpa.com. Finance director – Monroe County Clerk of the Circuit Court & Comptroller. Complex government accounting & financial knowledge, planning, development, oversight, evaluation & administration. Requires expertise in government accounting. CPA required plus 10 yrs managerial exp. Email cover letter & resume to apply@monroe-clerk.com. Internal auditor – Monroe County Clerk of the Circuit Court &

Comptroller. Performs county government internal audits. Requires accounting degree. Prefer CFE, CIA or CPA. Strong writing & organizational skills. Requires countywide travel & valid Florida driver’s license. Email cover letter & resume to apply@ monroe-clerk.com. Tourist tax development auditor – Monroe County Clerk of the Circuit Court & Comptroller. Performs tourist development tax audit, delinquent collection, compliance & enforcement. Requires accounting or related degree & tourist development tax audit exp. Prefer CFE, CIA or CPA. Requires countywide travel & valid Florida driver’s license. Email cover letter & resume to apply@ monroe-clerk.com. Kendall-area CPA firm is seeking to hire a tax manager(s) CPA w/near-term partnership potential. The candidate(s) must have a strong tax background & personal skills. Compensation will be commensurate w/the candidate’s ability. Our firm has a good reputation & is well established & profitable. Reply to reply@ficpa. org & reference file number H PA 01 02 14. Director of shared accounting services – Diocese of Orlando. Full time. In accordance w/ established policies & procedures, the director of shared services oversees back ofc accounting operations for a select group of parishes within the Diocese of Orlando. Responsible for all aspects of finance & accounting

for parish clients & ensuring proper execution of best-practices policies & procedures, including financial reporting & cash mgmt. BS/BA degree in accounting required; CPA preferred; min 10 yrs accounting exp; exp as controller/finance director & shared-service operation preferred; merger & acquisition exp a plus. Practicing Catholic w/a strong sense of respect for the Roman Catholic Church preferred. Send cover letter, resume & salary requirements to Theresa Simon, Human Resources Director, Diocese of Orlando, P.O. Box 1800, Orlando, FL 32802. No phone calls please. Fax (407) 2464844. Email humanresources@ orlandodiocese.org; website www.orlandodiocese.org. St. Petersburg CPA firm (Central Avenue) seeks tax preparer/ accountant, CPA or CPA candidate for full-time or permanent taxseason position(s). Exp w/UltraTax, CS products, Quickbooks, Excel, Word, Outlook a plus. Individual needs to be motivated & able to work independently & efficiently w/2+ yrs recent exp w/ tax returns for all types of entities. Also seeking energetic, permanent tax-season administrative help, processing tax returns, typing, data input, filing, general ofc activities. Email resume to robmcpa@aol. com.

Positions wanted Florida CPA w/20 yrs of tax & accounting experience in large-firm tax departments provides excellent per diem

For complete classified policies, visit www.ficpa.org/Content/CPAResources/ClassifiedsJobs/Classifieds.aspx. 32 JANUARY/FEBRUARY 2014

tax & accounting services. Responsible, accurate, timely & affordable. Services include taxreturn preparation, tax planning, tax consulting, tax research, accounting services, Quickbooks consulting & IRS representation. Areas of professional experience include domestic & international individuals, businesses, trusts & estates. Please call (305) 6312350, Ext. 180.

Growing South Florida CPA firm looking to purchase a practice from a retirement-minded CPA in Dade County. Favorable purchase terms offered w/continuing employment opportunities available. Please contact Jeffrey Taraboulos at info@ksdt-cpa.com or (305) 670-3370.

For sale

Office space Successful wealth-management firm w/a large clientele currently seeking to sublet ofc space located south of Palmetto Park in Boca Raton. We offer a great potential for client referrals. If interested, please call (561) 9989985 to schedule an appointment or conference call. Dadeland/Pinecrest – CPA has small ofc space available to lease. Internet, telephone, copier, scanner, fax & small kitchen. Please email all inquiries to Jeffgcpa@gmail.com or call (305) 975-0511. Long-established quality Fort Lauderdale CPA firm seeks practice from retirement-minded CPA w/transition of your choice. Email inquiries to ajcpapa@aol. com or call Cary at (954) 9851040.

Practices wanted for purchase or merger Established & growing PCAOBregistered Boca Raton CPA firm w/quality audit & tax practice seeks candidates w/$300k+ in gross revenues for merger or acquisition. Please call Mitch Pruzansky at (561) 756-9485.

FLORIDA CPA TODAY

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Access Florida CPA Today Archives Online For your convenience, Florida CPA Today articles from 1997-present are posted on the FICPA’s website at www.ficpa.org/Content/ Members/Tools/Publications/FCT/ Archives.aspx. The archives provide a variety of previously published information, including technical articles written by member CPAs, legislative updates, DOR and IRS updates and much more.

www.ficpa.org

F I C PA

member profile

Jonathan Ingber, CPA Meet 41-year FICPA member Jonathan Ingber, the man who has contributed more FICPA Connect listserv posts than any other member.

osition/firm. Staff accountant with Kwal + Oliva, CPAs in Miami.

First job. Waiter at a coeducational camp in North Sutton, N.H. at 16. My first job after graduation was as a line officer in the United States Navy, culminating with a billet as a qualified officer of the deck underway, operations officer and senior watch officer aboard the U.S.S. Adroit [MSO-509], an oceangoing minesweeper. I obtained my first accounting position in 1970 with Holtz & Co., a stone’s throw from Calle Ocho. Alma maters. Stuyvesant High School, 1959; Queens College, 1964; New York University School of Law, 1967; Graduate School of Business, Florida International University, 2002. 34 JANUARY/FEBRUARY 2014

Marital status/family/ pets. I married Ellen Meyer on April 8, 1971. If she lives to be 100, I want to live to be 100 minus one day so I never have to live without her. Ellen and I are blessed with our son, Jeffrey. Our two beloved whippets, Goosie and ‘Cara (Mascara), have gone to “a far, far better rest.” Professional/community activities. Lecturer for Surgent McCoy CPE, LLC; member of the FICPA Committee on Continuing Professional Education; walk 3.3 to 7.6 miles daily on the streets of Weston prior to “dawn’s early light.” Favorite authors. David Baldacci, Ken Follett, Alexander Dumas, Lee Child, Sue Grafton, Antoine de Saint-Exupery, William Shakespeare, Michael Connelly, Martin Cruz Smith, Daniel Silva.

I have about 175 books on my Barnes and Noble Nook and my Kindle Touch, with at least 30 books that I’ve partially read. The last book I read. I’m currently reading The Partisan: The Life of William Rehnquist by John A. Jenkins. It’s a critical, in the semi-pejorative sense, biography of Chief Justice of the U.S. Supreme Court, William H. Rehnquist. Although I was wrong, I once said I’d never... Quoting myself: “I never say ‘never.’” I never thought the Union of Soviet Socialist Republics would disappear during my lifetime. I never thought the United States would elect an African American president. Best thing about participating in FICPA listserves. I don’t participate on any of the social media networks,

as I’m basically a misanthropic curmudgeon. I have a ringside seat at the destruction of the English language. (CPA’s is not the plural form for more than one certified public accountant.) With the superlative tax research tools provided by Richard Kwal and Rolando Sanchez, the firm’s two partners, it’s a challenge to see how quickly I’m able to respond to a tax question one of our colleagues poses. Although I’ve been a proud member of The Florida Bar (not the Florida Bar Association, which does not exist) since Nov. 19, 1971, that fine organization has absolutely nothing comparable to the FICPA’s superb section listserves, which now are part of FICPA Connect. To read Ingber’s “words of wisdom” on the topic of health care, visit www. ficpa.org/Ingber. FCT

FLORIDA CPA TODAY

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F L O R I D A

Florida Institute of Certified Public Accountants P.O. Box 5437 Tallahassee, FL 32314-5437