CPA Report Q1 2013

Firs t Edi tion 20 1 3 South Carolina Association of Certified Public Accountants

PLUS...

Safeguarding Against Fraudulent 1040s

Investigate Potential Tax Implications of the Cloud

The Future of the South Carolina Board of Accountancy

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CPA Report South Carolina Association of CPAs

South Carolina Association of Certified Public Accountants Magazine Volume 43, First Edition 2013 OFFICERS Michael R. Putich, CPA, Chair Sharon E. Mann, CPA, Chair-elect J. Bratton Fennell, CPA, Vice Chair Robert M. Tilton, CPA, Secretary-Treasurer Timothy L. Baker, CPA, Immediate Past Chair BOARD OF DIRECTORS William R. Barefoot, CPA Charles E. “Eddie” Brown, CPA Patrick P. Carey Jr., CPA Zoe M. Davis, CPA Amanda Hallman, CPA Suzanne Harnois, CPA Cheryl O. Lang, CPA Penny A. Lewis, CPA A.D. “Dave” Masters, CPA J. Patrick McDermott, CPA James W. McIlrath, CPA Philip R. Snipes, CPA Michael J. Targia, CPA, CFA W. Ashley Thiem, CPA Beth T. Zamorski, CPA CHIEF EXECUTIVE OFFICER Erin Hardwick Pate, CAE MANAGING EDITOR Maureen Taylor GRAPHIC DESIGNER Lisa S. McGee CONTRIBUTING WRITERS Charles M. Ayers, CPA Bob Baldwin, CPA Reva Brennan, MPA, CAE, IOM Donny Burkett, CPA Terry Grayson-Caprio, CPA Jeff Corser, CPA K. Todd Dailey, CPA, CVA J. Bratton Fennell, CPA Renita M. Owens, CPA, PFS Erin Hardwick Pate, CAE Catherine W. Perrenoud, CPA Michael Putich, CPA Betsy Roof, CPA Caroline Strobel, CPA Jason Sweatt, CPA Maureen Taylor Walda Wildman, CPA 2013 EDITORIAL BOARD Charles E. Alvis, CPA, MPA, MBA, Chair John B. Brantley, CPA Amanda S. Colgate, CPA Lisa S. Cooke, CPA Karen A. Hursey, CPA Lesley H. Kelly, CPA Margaret L. Lattimore, CPA Anthony G. Masino, CPA A. D. “Dave” Masters, CPA Erin Hardwick Pate, CAE Derrick B. Stark, CPA V. Carroll Webster, CPA, MBA

Special Section: 2012 Tax Highlights 22

Tax Highlights for 2012 and Beyond

25

Working with Clients Post-Data Breach

26

More to Think About and Manage During Tax Busy Season

27

SCACPA Members Meet With IRS, DOR Representatives

28

AICPA National Tax Conference

30

Safeguarding Against Fraudulent 1040s

31

Investigate Potential Tax Implications of the Cloud

In This Issue 10

S.C. Board of Accountancy Update

11

The Future of the S.C. Board of Accountancy

14

SCACPA, JA Team Up to Build Awareness of Entrepreneurship and CPA Profession

18

A Look Back at the 2012 CPA Summit

20

South Carolina’s New CPAs

21

SCACPA Members Recognized for Achievements

34

2012 Fall Conferences in Review

In Every Issue 5 6 8 16 17

From the Chair Association News On Your Behalf Member Profile Member News

17 33 35 38

Welcome New Members Chapter Connections Upcoming CPE Advertiser Index

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia, SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of the product or service by The CPA Report or SCACPA. South Carolina CPA Report

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E-9002-113 SC

From the Chair “The new vision and mission statements put the emphasis on you, the member. As we move forward, we will continually measure our programs and services against the new mission statement.”

A

s SCACPA enters its 98th year we are reminded of the changes we have seen as a profession. We are also reminded that as a profession, and an association, we exist in a constantly changing environment and as such must be willing to address these changes to meet your needs.

In 2010, the SCACPA Board approved ȱę Ȭ¢ ȱ ȱ ȱ ȱȃ ȱ our association a continually relevant and evolving organization that helps members every day.” At the 2012 board retreat, we reviewed SCACPA’s current mission statement to ensure it embodies our purpose and goals and guides our actions.

Drafted in 2006, the mission statement states: The South Carolina Association of CPAS is a professional organization that provides support to all CPAs – whether in public practice, industry,

Michael Putich, CPA SCACPA Chair SCACPA member since 2000

government or education - with lifelong learning opportunities necessary for their success, the promotion of high ethical standards and legislative advocacy for both the public good and for the profession.

While the statement addresses our core services of education and advocacy, the board agreed that supporting all CPAs was a broad statement.

We are a membership organization and our primary purpose is to sup ȱ¢ ǰȱ ȱ ǰȱ ¢ȱ ě ȱ the tools you need to be successful as a CPA. In reviewing our mission statement, ȱ ȱ ȱ ȱ ȱ ȱ

By The Numbers, which documented the results of the 2011 member ȱ ȱ ȱ ¢ȱ ȱ Volf, a Charleston-based consulting ę ǯȱ ȱ ȱ ¢ȱ ȱ ȱ groups, your comments provided the foundation to guide our ȱ ȱ ȱ ȱ ȱ sion statement as well as a vision statement. The vision statement is what inspires an association’s strategic decisions. It outlines what the organization wants to be and in today’s fast-paced, changing environment this is a necessity.

Following the retreat, a ȱ ȱ ȱ of board members and facilitated by Chris Volf of ȱ ǰȱ ȱ ȱ

process of drafting the association’s ę ȱ ȱ ǰȱ ȱ ȱ ȱ statement and our core values. The following were approved by the full board at its October meeting: MISSION STATEMENT To empower our members to grow professionally.

We believe that by providing education, advocacy, communication, and leadership we will ensure our success.

VISION STATEMENT SCACPA will be the premier provider of relevant resources for its members.

We recognize that our members exist in a constantly changing environment and we will support them as they embrace future opportunities.

The CORE VALUES connect our members with SCACPA: • Accountability • Integrity • Competency • Leadership • Diversity • Quality • Innovation • Trustworthiness The new vision and mission statements put the emphasis on you, the member. As we move forward, we will continually measure our programs and services against the new mission statement. In doing so, we will ensure that we are providing the ȱ ȱ ȱ¢ ȱ ȱ ȱę ȱ success as a CPA, thereby ensuring our success as your professional home.

W James McIlrath,CPA, Duncan, Farmer, Munden, McIlrath & Co in Myrtle Beach, during the task force meeting focused on developing SCACPA’s new vision and mission statements.

(888) 557-4814 | www.scacpa.org

South Carolina CPA Report

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570 Chris Drive, West Columbia, South Carolina 29169 (803) 791-4181 or Toll-free (888) 557-4814 Fax (803) 791-4196 | www.SCACPA.org

To empower our members to grow professionally.

We believe that by providing education, advocacy, communication, and leadership we will ensure our success.

Erin Hardwick Pate, CAE Chief Executive Officer Ext. 104, ehardwickpate@scacpa.org Reva E. Brennan, MPA, CAE, IOM Chief Operating Officer Ext. 103, rbrennan@scacpa.org Karen M. Hancock, CPA Finance Director Ext. 108, khancock@scacpa.org Maureen Taylor Director of Marketing and Member Services Ext. 105, mtaylor@scacpa.org Glenna P. Osier Peer Review and Member Services Manager Ext. 107, gosier@scacpa.org April C. Cox Education Manager Ext. 110, acox@scacpa.org Sandra P. Oxner, CMP, CMMM Chapter & Special Events Manager Ext. 112, soxner@scacpa.org

This Could be Your Last CPA Report

We Need Your Help!

Become a KPC in 2013

Have you renewed your SCACPA membership for 2013? As a reminder the SCACPA membership year ended Dec. 31, 2012. In order to transition to ÂŠČąÂ—ÂŽÂ ČąÄ™ÂœÂŒÂŠÂ•ČąÂ˘ÂŽÂŠÂ›ČąÂœÂ?Š›Â?ČąÂ?ŠÂ?ÂŽÇ°Čą Čą is invoicing for 18 months. When you Â›ÂŽÂ—ÂŽÂ ČąÂ˘Â˜ÂžÂ›ČąÂ?ÂžÂŽÂœČąÂ Â’Â•Â•ČąÂ‹ÂŽČąÂ™ÂŠÂ’Â?ČąÂ?‘›˜žÂ?‘ȹ June 30, 2014.

‘Ž—ȹÂ?Â‘ÂŽČąĹ˜Ĺ–Ĺ—Ĺ™ČąÂ•ÂŽÂ?’œ•ŠÂ?Â’Â&#x;ÂŽČąÂœÂŽÂœÂœÂ’Â˜Â—ČąÂ‹ÂŽÂ?Š—ȹ in January, there were 19 new house representatives and nine new senators. It is imperative to the success of SCACPA’s ŠÂ?Â&#x;Â˜ÂŒÂŠÂŒÂ˘ČąÂŽÄ›Â˜Â›Â?ÂœČąÂ?‘ŠÂ?ȹŠȹ Ž¢ȹ ÂŽÂ›ÂœÂ˜Â—Čą ˜—tact (KPC) is assigned to each of these Â—ÂŽÂ ČąÂœÂ?ŠÂ?Žȹ•ŽÂ?’œ•ŠÂ?Â˜Â›ÂœÇŻČąČą Â?ČąÂ˘Â˜ÂžČąÂ”Â—Â˜Â ČąÂŠÂ—Â˘ČąÂ˜Â?Čą Â?Â‘ÂŽČąÂ—ÂŽÂ ČąÂœÂ?ŠÂ?Žȹ•ŽÂ?’œ•ŠÂ?Â˜Â›ÂœÇ°ČąÂ‘ÂŠÂ&#x;ÂŽČąÂ?Â‘ÂŽÂ–ČąÂŠÂœČąÂŠČą Œ•’Ž—Â?ČąÂ˜Â›ČąÂ•Â’Â&#x;ŽȹŠ—Â?ČŚÂ˜Â›ČąÂ Â˜Â›Â”ČąÂ’Â—ČąÂ?‘Ž’›ȹÂ?Â’ÂœÂ?›’ŒÂ?Ç°Čą Â™Â•ÂŽÂŠÂœÂŽČąÂœÂ’Â?Â—ČąÂžÂ™ČąÂŠÂœČąÂŠČą ÇŻČą

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Renew online at www.scacpa. org or call the SCACPA office at 803-791-4181.

Correction

Cooper Contributes to Lollie Harper Scholarship Robert C. (Bob) Cooper, CPA, of ÂŒ ’—•Ž¢ȹ Â˜Â˜Â™ÂŽÂ›ČąÇ­Čą Â˜ÇŻÇ°Čą ȹ’—ȹ ›ŽŽ—Â&#x;Â’Â•Â•ÂŽČąÂ ÂŠÂœČąÂ˜Â–Â’Ä´ÂŽÂ?ČąÂ?Â›Â˜Â–ČąÂ?Â‘ÂŽČąÂ•Â’ÂœÂ?Čą of Education Fund Donors in the 2012 Q4 CPA Report. Bob contributed $100 Â?Â˜ČąÂ?‘Žȹ Â˜Â•Â•Â’ÂŽČą ÂŠÂ›Â™ÂŽÂ›ČąÂœÂŒÂ‘Â˜Â•ÂŠÂ›ÂœÂ‘Â’Â™ÇŻČą ÂŽČą ÂŠÂ—Â—ÂžÂŠÂ•Â•Â˘ČąÂŒÂ˜Â—Â?›’‹žÂ?ÂŽÂœČąÂ?Â˜ČąÂ?‘Žȹ Â?žŒŠÂ?Â’Â˜Â—ÂŠÂ•Čą ž—Â?ÇŻČą ÂŽČąÂŠÂ™Â˜Â•Â˜Â?Â’ÂŁÂŽČąÂ?Â˜Â›ČąÂ?Â‘ÂŽČąÂ˜Â&#x;Ž›œ’Â?‘Â?ÇŻ

Peer Review Committee Welcomes New Reviewers

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To become a KPC, visit scacpa. org/kpc or email Glenna Osier at gosier@scacpa.org

Have You Heard From Us Lately? ČąÂ›ÂŽÂŒÂŽÂ—Â?Â•Â˘ČąÂœÂ Â’Â?Œ‘ŽÂ?ČąÂ?Â˜ČąÂŠČąÂ—ÂŽÂ Čą Ž–Š’•ȹ™•ŠÂ?Â?Â˜Â›Â–Ç°Čą Â’Â?‘ȹ ˜ŠÂ?Ç°ČąÂ?Â˜Â›ČąÂ˜ÂžÂ›Čą ÂŽČŹÂ—ÂŽÂ ÂœÂ•ÂŽÄ´ÂŽÂ›ÂœÇ°ČąÂŠÂ•ÂŽÂ›Â?ÂœČąÂŽÂ?ÂŒÇŻČąČą Â?ČąÂ˘Â˜ÂžČąÂŠÂ›ÂŽČąÂ—Â˜Â?Čą receiving SCACPA’s communications Â˜Â—ČąÂŠČąÂ›ÂŽÂ?ÂžÂ•ÂŠÂ›ČąÂ‹ÂŠÂœÂ’ÂœÇ°ČąÂ ÂŽČąÂŽÂ—ÂŒÂ˜ÂžÂ›ÂŠÂ?ÂŽČąÂ˘Â˜ÂžČąÂ?Â˜Čą Œ˜—Â?ŠŒÂ?ČąÂ˘Â˜ÂžÂ›ČąÂŽÂ–ÂŠÂ’Â•ČąÂŠÂ?–’—’œÂ?›ŠÂ?Â˜Â›ČąÂ?Â˜ČąÂ–ÂŠÂ”ÂŽČą ÂœÂžÂ›ÂŽČąÂŠČąÂœÂ™ÂŠÂ–ČąÄ™Â•Â?ÂŽÂ›ČąÂ’ÂœČąÂ—Â˜Â?ČąÂ‹Â•Â˜ÂŒÂ”Â’Â—Â?ČąÂ?Â‘ÂŽČąÂ–ÂŽÂœsage from being received. Some spam ę•Â?ÂŽÂ›ÂœČąÂ›ÂŽÂšÂžÂ’Â›ÂŽČąÂ?‘ŽȹÂ?Â˜Â–ÂŠÂ’Â—ČąÂ—ÂŠÂ–ÂŽČąÂ˜Â?ČąÂ?‘Žȹ œŽ—Â?’—Â?ȹŽ–Š’•ȹŠÂ?Â?Â›ÂŽÂœÂœČąÂŠÂ—Â?ČąÂœÂ˜Â–ÂŽČąÂ›ÂŽÂšÂžÂ’Â›ÂŽČą both the domain name and sending IP address.

Â•ÂœÂ˜Ç°ČąÂ™Â•ÂŽÂŠÂœÂŽČąÂ‹ÂŽČąÂŠÂ ÂŠÂ›ÂŽČąÂ Â‘ÂŽÂ—ČąÂ˘Â˜ÂžČąÂžÂ—ÂœÂžÂ‹scribe via High Road you are opting out ˜Â?ȹŠ••ȹ ČąÂŒÂ˜Â–Â–ÂžÂ—Â’ÂŒÂŠÂ?Â’Â˜Â—ÂœČąÂ’Â—ÂŒÂ•ÂžÂ? ‘Žȹ ŽŽ›ȹ ÂŽÂ&#x;Â’ÂŽÂ Čą Â˜Â–Â–Â’Ä´ÂŽÂŽČąÂ ÂŽÂ•ÂŒÂ˜Â–ÂŽÂœČą ’—Â?ČąÂ–ÂŽÂ–Â‹ÂŽÂ›ÂœÂ‘Â’Â™ČąÂ—Â˜Â?Â’ÂŒÂŽÂœÇ°ČąÂœÂ™ÂŽÂŒÂ’ÂŠÂ•ČąÂŠÂ•ÂŽÂ›Â?ÂœÇ°Čą Â‘Â˜Â–Â™ÂœÂ˜Â—Čą ÇŻČą Â˜Ä›Â–ÂŽÂ˘ÂŽÂ›Ç°Čą ›ǯǰȹ Ç°Čą •˜›- ČąÂŠÂ—Â—Â˜ÂžÂ—ÂŒÂŽÂ–ÂŽÂ—Â?ÂœČąÂŠÂ—Â?ȹ•ŽÂ?’œ•ŠÂ?Â’Â&#x;ÂŽČą ÂŽÂ—ÂŒÂŽÇ˛Čą Â•Â•Â’ÂœÂ˜Â—Čą Ž—Šǰȹ ‘Žȹ Â˜Â‹Â‹ÂœČą Â›Â˜ÂžÂ™Ç°Čą ž™Â?ŠÂ?ÂŽÂœÇŻČą Â•ÂŽÂŠÂœÂŽČąÂŒÂ˜Â—Â?ŠŒÂ?Čą ČąÂ?’›ŽŒÂ?•¢ȹ ÇŻ ÇŻÇ°Čą Â˜Â•ÂžÂ–Â‹Â’ÂŠÇ˛Čą ŠÂ&#x;Â’Â?Čą ÇŻČą Â‘Â’Â•Â•Â’Â™ÂœÇ°Čą ŠÂ?ȹ–Â?ÂŠÂ˘Â•Â˜Â›Č“ÂœÂŒÂŠÂŒÂ™ÂŠÇŻÂ˜Â›Â?ČąÂ?Â˜ČąÂœÂŽÂ?ČąÂ˘Â˜ÂžÂ›ČąÂŒÂ˜Â– ›ŽŽ—Žȹ ’——Ž¢ȹǭȹ ˜›Â?Â˜Â—Čą Ç°Čą Šž•Â?’—Dzȹ munication preferences. and R. Derek Poston, CPA with Moore ŽŠžœÂ?Â˜Â—ČąÇ­Čą ˜˜Â?‘Š–ǰȹ Ç°Čą ÂœÇ°Čą ˜›Â?‘ȹ ‘Š›•ŽœÂ?Â˜Â—Ç˛ČąÂŠÂœČąÂ—ÂŽÂ ČąÂ™ÂŽÂŽÂ›ČąÂ›ÂŽÂ&#x;Â’ÂŽÂ ÂŽÂ›ÂœÇŻČąČą Â‘ÂŽÂ’Â›ČąÂ›ÂŽÂœÂžÂ–ÂŽÂœČąÂŠÂ›ÂŽČąÂŠÂ&#x;ÂŠÂ’Â•ÂŠÂ‹Â•ÂŽČąÂ˜Â—ČąÂ?‘Žȹ ÂŠÂ”ÂŽČąÂ˘Â˜ÂžÂ›ČąÂ?Š¥ȹÂ?ÂŽÂ?žŒÂ?Â’Â‹Â•ÂŽČąÂŒÂ˜Â—Â?›’‹žÂ?Â’Â˜Â—Čą AICPA website at aicpa.org or on the Â?Â˜ČąÂ?‘Žȹ Čą Â?žŒŠÂ?Â’Â˜Â—ÂŠÂ•Čą ž—Â?ÇŻČą SCACPA website under peer reviewers. ÂŒÂ‘Â˜Â•ÂŠÂ›ÂœÂ‘Â’Â™ÂœČąÂ Â’Â•Â•ČąÂ‹ÂŽČąÂŠÂ ÂŠÂ›Â?ÂŽÂ?Čą ÂžÂ•Â˘ČąĹ˜Ĺ–Ĺ—Ĺ™ÇŻ

Grow the Profession

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South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

Promoting the Profession

Young CPAs Lend Helping Hand to Children in Need SCACPA’s Young CPA Leadership Cabinet held their annual community service day at Lowcountry Orphan Relief in North Charleston on Oct. 19. ȱ Ȭ ę ȱ £ ȱ ȱ goods and services to children who have been abused or neglected. Cabinet ȱ ȱ ȱ ¢ȱę ȱ ǰȱ ȱ ȱ ȱ ȱ ȱ for the organization. ȱ ȱ ȱ ȱ Ȭ ę ȱ organization every year for its community service event and rotates the location around the state. To learn more about the Cabinet visit www.scacpa.org/ycpa.

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YCPA Cabinet member Valerie Lee is featured in the AICPA’s video on the importance of volunteerism. Watch online at http://tinyurl.com/atf7fw7

SPromoting the Profession – Members of SCACPA’s Young CPAs Leadership Cabinet sort clothes at Lowcountry Orphan Relief in North Charleston Oct. 19. Pictured are (from left) Damon Hilton, College of Charleston Institutional Advancement, Charleston; Joel Gibbons, WebsterRogers, LLP, Charleston; Allyson DeHart, The Hobbs Group, PA; and Russ Gladden, The Springs Company, Lancaster.

South Carolina CPA Report

7

F

or the profession,

by the profession – that’s what the South Carolina Association of CPAs is all about. SCACPA’s board ˜Â?ČąÂ?’›ŽŒÂ?Â˜Â›ÂœÇ°ČąÂŒÂ˜Â–Â–Â’Ä´ÂŽÂŽÂœČąÂŠÂ—Â?ČąÂ?ÂŠÂœÂ”Čą forces and Young CPAs Leadership Š‹’—ŽÂ?ȹŠ›Žȹ‘Š›Â?ȹŠÂ?ČąÂ Â˜Â›Â”ČąÂ–ÂŠÂ”Â’Â—Â?Čą decisions, providing guidance and Ž–‹Š›”’—Â?ČąÂ˜Â—ČąÂ™Â›Â˜Â“ÂŽÂŒÂ?ÂœČąÂŠÂ—Â?ČąÂ™Â›Â˜Â?Â›ÂŠÂ–ÂœČą that strengthen the profession and enable members to improve their ”—˜ •ŽÂ?Â?Žǰȹȹ—ŽÂ?Â Â˜Â›Â”ČąÂŠÂ—Â?ČąÂ?ÂŽÂŒÂ‘Â—Â’ÂŒÂŠÂ•Čą ÂœÂ”Â’Â•Â•ÂœÇŻČą

SCACPA BOARD OF DIRECTORS MEETING The SCACPA Board of Directors met ÂŒÂ?ÇŻČąĹ˜ĹœČąÂ?Â˜Â›ČąÂ?‘Žȹꗊ•ȹ–ŽŽÂ?’—Â?ČąÂ’Â—ČąĹ˜Ĺ–Ĺ—Ĺ˜ÇŻČąČą The meeting began with a presentation by Jay Moeller, CPA, partner with Batelle & Batelle in Ohio. Moeller is a member of the AICPA board of directors and liaison to South Carolina.

His presentation highlighted some of the most pressing issues in the accounting profession. SCACPA board members engaged in a lively discussion and left the presentation with a ‹›˜ŠÂ?ÂŽÂ›ČąÂ”Â—Â˜Â Â•ÂŽÂ?Â?ÂŽČąÂ˜Â?ČąÂ’ÂœÂœÂžÂŽÂœČąÂ?ŠŒ’—Â?Čą SCACPA members.

T Chair-elect, Sharon Mann, and I participated in a Leadership Conference sponsored by the CPA State Executives Association. Pictured here are (from left) AICPA CEO Barry Melancon, SCACPA Chair-Elect Sharon Mann, SCACPA CEO Erin H. Pate and AICPA Chair-Elect Bill Balhoff.

The SCACPA board approved its 18-month budget, now spanning Jan. 1, 2013 to June 30, 2014. As part of the budget approval, the SCACPA board modestly increased the annual Š—Â?ČąÂœÂŒÂ‘ÂŽÂ?ž•’—Â?ČąÂ?ÂŽÂŽÂœČąÂ?Â˜Â›ČąÄ™Â›Â–ÂœČąÂŽÂ—Â›Â˜Â•Â•ÂŽÂ?Čą in the peer review program. Peer review fees are increasing due to the growing cost of administering the program. Increasing complexity of standards and compliance, coupled  ’Â?‘ȹÂ?‘Žȹ™Ž—Â?’—Â?ȹ›Žšž’›Ž–Ž—Â?ČąÂ˜Â?Čą paperless participation in the peer review program, necessitates more time and resources to serve and œž™™˜›Â?ČąÄ™Â›Â–ÂœČąÂŠÂ—Â?ČąÂ?Â˜ČąÂ?Ž—Ž›Š••¢ȹ administer the program.

“SCACPA has an effective voice in Columbia with the state legislature and with regulatory bodies, such as the S.C. Board of Accountancy. One of the main reasons for this is the CPAs around the state who have volunteered to be a key contact person (KPC).�

Â‘Â›ÂŽÂŽČąÂœÂ?›ŠÂ?ÂŽÂ?Â’ÂŒČąÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽÂœČąÂ?ŠÂ&#x;ÂŽČą reports to the SCACPA board, each ˜ěŽ›’—Â?ČąÂ—ÂŽÂ ČąÂ ÂŠÂ˘ÂœČąÂ?Â˜ČąÂœÂŽÂ›Â&#x;ÂŽČąÂ–ÂŽÂ–Â‹ÂŽÂ›ÂœČą ‹ŽĴŽ›ǯȹȹ ‘ŽȹÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČąÂ›ÂŽÂ™Â˜Â›Â?ÂœČą included:

with determining which segments of SCACPA’s membership should ‹ŽȹÂ?Š›Â?ÂŽÂ?ÂŽÂ?ČąÂœÂ™ÂŽÂŒÂ’Ä™ÂŒÂŠÂ•Â•Â˘ČąÂ˜Â&#x;Ž›ȹÂ?‘Žȹ—Ž¥Â?Čą two years with the development of programs and services. Small, local Ä™Â›Â–ÂœČąÂŠÂ—Â?ČąÂ?‘Žȹ ÂœČąÂ Â‘Â˜ČąÂ Â˜Â›Â”ČąÂ?‘Ž›Žȹ are one of two primary target groups, the other target group is CPAs who Â Â˜Â›Â”ČąÂ’Â—ČąÂ?‘Žȹ™›’Â&#x;ŠÂ?ÂŽČąÂœÂŽÂŒÂ?Â˜Â›Ç°ČąÂ’Â—ČąÂ‹ÂžÂœÂ’Â—ÂŽÂœÂœČą Â˜Â›ČąÂ’Â—Â?žœÂ?›¢ǯȹ Â?ČąÂ˘Â˜ÂžČąÄ™Â?ȹ’—Â?Â˜ČąÂ˜Â—ÂŽČąÂ˜Â?ČąÂ?Â‘ÂŽÂœÂŽČą target groups the goal is to enhance existing services and develop new ones that meet your professional —ŽŽÂ?ÂœÇŻČąČą Ž›Â&#x;’—Â?ČąÂ˜Â—ČąÂ?Â‘Â’ÂœČąÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČąÂŠÂ›ÂŽÇąČą ’–ȹ Š”Ž›ǰȹ Čą Š›•Šȹ Â˜Â˜Â›ÂŽČą ÂŒÂ‘Â˜Â˜Â•Čą ˜Â?Čą ÂžÂœÂ’Â—ÂŽÂœÂœÇ°Čą Â˜Â•ÂžÂ–Â‹Â’ÂŠÇ˛Čą ŠÂ?Â›Â’ÂŒÂ”Čą Š›Ž¢ǰȹ Carey & Company, Hilton Head œ•Š—Â?Dzȹ Â‘Â›Â’ÂœČą Â˜Â•ÄľÂŒÂ•ÂŠÂ Ç°Čą ’••’Š–ȹ Barnet & Son, LLC, Arcadia; Cheryl Lang, Tindall Corp., Spartanburg; and Penny Lewis, Penny A. Lewis, CPA, PA, Isle of Palms.

Developing a Future Forward Mission, Vision and Values. ČąÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČąÂ ÂŠÂœČąÂŒÂ‘ÂŠÂ›Â?ÂŽÂ?ȹ ’Â?‘ȹ reviewing and updating SCACPA’s organizational mission, vision and values. Why is this important to you?

These statements or declarations will guide leadership decisions of the SCACPA Board and management Â?ÂŽÂŒÂ’ÂœÂ’Â˜Â—ÂœČąÂ˜Â?ČąÂœÂ?Šěǯȹȹ Â‘ÂŽÂ˘ČąÂ Â’Â•Â•ČąÂœÂŽÂ›Â&#x;ÂŽČąÂŠÂœČą a standard against which programs and services will be measured going Â?˜› Š›Â?ǯȹȹ Ž›Â&#x;’—Â?ČąÂ˜Â—ČąÂ?Â‘Â’ÂœČąÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČą are: Zoe Davis, Hubbard Davis CPAs, LLP, Mount Pleasant; James McIlrath, Duncan, Farmer, Munden, McIlrath & Co, Myrtle Beach; Beth ÂŠÂ–Â˜Â›ÂœÂ”Â’Ç°Čą ˜Â?Â?Ç°Čą ›Ž–Ž›ȹǭȹ ÂŠÂ ÂœÂ˜Â—Ç°Čą Â—ÂŒÇŻÇ°Čą Â˜ÂŒÂ”Čą ’••DzȹŠ—Â?Čą ’••’Š–ȹ Š›ŽÂ?˜˜Â?Ç°Čą WebsterRogers LLP, Florence. ˜Œžœ’—Â?Čą Ž›Â&#x;Â’ÂŒÂŽÂœČąÂ˜Â—Čą Â™ÂŽÂŒÂ’Ä™ÂŒČą Member Groups for Greater Impact. —˜Â?‘Ž›ȹÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČąÂ ÂŠÂœČąÂŒÂ‘ÂŠÂ›Â?ÂŽÂ?Čą

8

South Carolina CPA Report

œ’—Â?Čą ŽŒ‘—˜•˜Â?¢ȹÂ?Â˜Čą ŽĴŽ›ȹ Ž›Â&#x;ÂŽČą Members. Čą ČąÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČąÂŽÂĄÂ™Â•Â˜Â›ÂŽÂ?ȹ—Ž ȹ possibilities for SCACPA to serve South Carolina CPAs with more advanced technological capabilities. The recommendations called for greater investment in CPE delivery, helping

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T Jay Moeller with Batelle & Batelle in Ohio is AICPA's board liaison to SCACPA. He came to South Carolina to share insights into the most pressing issues facing the profession and lead an engaging discussion about them.

members connect and collaborate easier online, a redesigned website that is easier to navigate and an upgraded membership data management system that among other functionality will help SCACPA customize its messages to your interÂŽÂœÂ?ČąÂŠÂ›ÂŽÂŠÂœÇŻČąČą Ž›Â&#x;’—Â?ČąÂ˜Â—ČąÂ?Â‘Â’ÂœČąÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČą are: William Barefoot, WebsterRogers LLP, Florence; Eddie Brown, SwaimBrown, PA, Spartanburg; Suzanne

ÂŠÂ›Â—Â˜Â’ÂœÇ°Čą Ž›—Š›Â?Čą ÇŻČą ÂŒÂ”ÂŽÂ›Â–ÂŠÂ—Ç°Čą Ç°Čą Ç°Čą Â˜ÂŒÂ”Čą ’••Dzȹ ’••ȹ Â?ÂŽÂ&#x;ÂŽÂ—ÂœÇ°Čą ‘Žȹ Hobbs Group, PA, Columbia; and Sandy Sanders, Presidium Retirement Advisers, Inc., Charleston.

Being A Strong Voice In Columbia Takes All Of Us! ČąÂ‘ÂŠÂœČąÂŠÂ—ČąÂŽÄ›ÂŽÂŒÂ?Â’Â&#x;ÂŽČąÂ&#x;Â˜Â’ÂŒÂŽČąÂ’Â—Čą Columbia with the state legislature and with regulatory bodies, such as the S.C. Board of Accountancy. One of the main reasons for this is the CPAs around the state who have volž—Â?ŽŽ›ŽÂ?ČąÂ?Â˜ČąÂ‹ÂŽČąÂŠČąÂ”ÂŽÂ˘ČąÂŒÂ˜Â—Â?ŠŒÂ?ČąÂ™ÂŽÂ›ÂœÂ˜Â—Čą (KPC).

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What is a KPC? A KPC is simply a ČąÂ Â‘Â˜ČąÂ˜Ä›ÂŽÂ›ÂœČąÂ?Â˜ČąÂŒÂ˜Â—Â?ŠŒÂ?ČąÂ?Â‘ÂŽÂ’Â›ČąÂ•Â˜ÂŒÂŠÂ•Čą •ŽÂ?’œ•ŠÂ?Â˜Â›ÂœČąÂœÂ‘Â˜ÂžÂ•Â?Čą ȹ–Š”Žȹ Â?Â‘ÂŽČąÂ›ÂŽÂšÂžÂŽÂœÂ?ÇŻČą Â˜ÂŒÂŠÂ•ČąÂŒÂ˜Â—Â?ŠŒÂ?ČąÂ’ÂœČąÂ?Â‘ÂŽČąÂ–Â˜ÂœÂ?Čą ŽěŽŒÂ?Â’Â&#x;Žȹ Š¢ȹÂ?Â˜ČąÂ’Â—Â?Â˜Â›Â–ČąÂŠÂ—Â?ČąÂ’Â—ÄšÂžÂŽÂ—ÂŒÂŽČą legislators. They want to hear from their constituents and they say often that CPAs carry a lot of weight.

There are some 25 newly-elected state legislators who joined the General Assembly in January as freshman. ÂŽČąÂŠÂ›ÂŽČąÂœÂŽÂŽÂ”Â’Â—Â?Čą ÂœČąÂ Â‘Â˜ČąÂ•Â’Â&#x;ÂŽČąÂ˜Â›Čą Â Â˜Â›Â”ČąÂ’Â—ČąÂ?‘ŽȹÂ?Â’ÂœÂ?›’ŒÂ?ÂœČąÂ˜Â?ČąÂ?Â‘ÂŽÂœÂŽČąÂŽÂ•ÂŽÂŒÂ?ÂŽÂ?Čą Â˜ÄœÂŒÂ’ÂŠÂ•ÂœÇŻČąČą Â˜Â—Č‚Â?ČąÂ˘Â˜ÂžČąÂ›ÂŽÂ&#x;Â’ÂŽÂ ČąÂ?Â‘Â’ÂœČąÂ•Â’ÂœÂ?Ç°Čą ę—Â?ČąÂœÂ˜Â–ÂŽÂ˜Â—ÂŽČąÂ˘Â˜ÂžČąÂ”Â—Â˜Â ČąÂŠÂ—Â?ČąÂœÂ’Â?—ȹž™ȹ as a KPC? All you have to do is send a note to SCACPA CEO Erin H. Pate ŠÂ?ȹŽ‘Š›Â? ’Œ”™ŠÂ?ÂŽČ“ÂœÂŒÂŠÂŒÂ™ÂŠÇŻÂ˜Â›Â?ȹ„ Erin Hardwick Pate, CAE, has served as SCACPA’s CEO since 2005.

She currently serves as president of the CPA Society Executives Association, a member of the S.C. Secretary of State’s Nonprofit Advisory Council and Francis Marion University Advisory Council for the Non-Profit Leadership Institute.

New Members of the House of Representatives • Craig Gagnon, Republican – Abbeville/Anderson • Robert Shannon Riley, Republican – Greenwood • Samuel Rivers, Jr, Republican – Berkley/Charleston • Leola Robinson Simpson, Democrat – Greenville • Raye Felder, Republican – York • Donna Wood, Republican – Spartanburg • Ralph Shealy Kennedy, Republican – Lexington/Saluda • MaryGail Douglas, Democrat – Chester/Fairfield/Richland • Mandy Norrell, Democrat – Lancaster • Mike Ryhal, Republican– Horry • Wayne George, Republican – Dillon/Horry/Marion • Robert Ridgeway, III, Democrat – Clarendon/Sumter • Heather Ammons Crawford, Republican – Horry • Kirkman Finlay, Republican – Richland • Beth Bernstein, Democrat – Richland • Don Wells, Republican – Aiken • Kevin Hardee, Republican – Horry • Stephen Goldfinch, Republican – Charleston/Georgetown • Weston Newton, Republican – Beaufort/Jasper

2013 New Senators Senators • • • • • • • • •

Karl Allen, Democrat – Greenville Ross Turner, Republican – Greenville Katrina Shealy, Republican – Lexington Tom Young, Republican – Aiken Greg Hembree, Republican – Dillon/Horry Thomas McElveen, Democrat – Kershaw/Lexington/Richland/Sumter Kevin Johnson, Democrat – Clarendon/Darlington/Florence/Sumter Sean Bennet, Republican – Berkeley/Charleston/Dorchester Paul Thurmond, Republican – Charleston/Dorchester

South Carolina CPA Report

9

Board of Accountancy

South Carolina Board of Accountancy Update National Association of State Boards of Accountancy 105th Annual Meeting

by Donny Burkett, CPA SCACPA member since 1976

F

ormer South Carolina Board of Accountancy Chair Bobby Creech, CPA, ˜Š›Â?Čą Â?–’—’œÂ?›ŠÂ?Â˜Â›Čą Â˜Â›Â’ÂœČą ž‹’Ĵǰȹ ǰȹŠ—Â?Čą ȹŠĴŽ—Â?ÂŽÂ?ČąÂ?‘Žȹ ŠÂ?Â’Â˜Â—ÂŠÂ•Čą Association of State Boards of Accountancy (NASBA) 105th Annual Meeting in Orlando, Florida at the end of October. At the annual meeting, we participated in discussions on many timely topics with board members representing 54 other boards of accountancy.

Some of the topics included: • The implementation by state boards of international standards œŽĴ’—Â?ȹŠ—Â?ČąÂ˜Â?ČąÂœÂŽÄ´Â’Â—Â?ČąÂœÂ?Š—Â?Š›Â?ÂœČą for private companies; • The impact of Sarbanes-Oxley Act (SOX) on the United States’ system of auditor oversight and its role in creating models for many other countries in the 10 years since it passed; • The future plans of the Â–ÂŽÂ›Â’ÂŒÂŠÂ—Čą —œÂ?Â’Â?žÂ?ÂŽČąÂ˜Â?Čą Ž›Â?’ęŽÂ?Čą Public Accountants (AICPA), which were presented by Richard J. Caturano, AICPA chair 2012-13; • A presentation by Barry Melancon, CPA, CGMA, president and CEO of Ç°ČąČąÂ˜Â—ČąČƒ ˜˜”’—Â?Čą ‘ŽŠÂ?ǹȹ Matching Regulation to Future Ž›Â&#x;Â’ÂŒÂŽÂœÇ°ČƒČąÂ Â‘Â’ÂŒÂ‘ČąÂ?ÂŽÂ?Š’•ŽÂ?ČąÂ‘Â˜Â Čą they believe the profession is changing and how regulations œ‘˜ž•Â?ČąÂ Â˜Â›Â”ČąÂ Â’Â?‘ȹÂ?Â‘ÂŽÂœÂŽČą changes;

10

South Carolina CPA Report

ČŠČą Â˜Â ČąÂ?’쎛Ž—Â?ČąÂœÂ?ŠÂ?ÂŽČąÂ‹Â˜ÂŠÂ›Â?ÂœČąÂŠÂ›ÂŽČą žœ’—Â?ČąÂŽÄ›ÂŽÂŒÂ?Â’Â&#x;ŽȹŠ—Â?ȹ’—Â?Ž›ŽœÂ?’—Â?Čą ways to communicate with their licensees; • What state boards can and are doing to reduce ethics problems in the profession, including such preventive measures as mandatory ÂŽÂ?Â‘Â’ÂŒÂœČąÂ›ÂŽÂšÂžÂ’Â›ÂŽÂ–ÂŽÂ—Â?ÂœČąÂ’Â—ČąÂŠČąÂ•Â’ÂŒÂŽÂ—ÂœÂŽÂŽČ‚ÂœČą continued professional education (CPE) (These were added to the South Carolina Board of Accountancy’s regulations in 2012); and,

Â?Â›Â˜Â–ČąÂ˜Â?Â‘ÂŽÂ›ČąÂ“ÂžÂ›Â’ÂœÂ?Â’ÂŒÂ?Â’Â˜Â—ÂœČąÂ‘ÂŠÂ&#x;Žȹ‹ŽĴŽ›ȹ Žšž’™™ŽÂ?Čą Â˜Â›Â’ÂœČąÂŠÂ—Â?ȹ–ŽȹÂ?Â˜ČąÂ‘ÂŽÂ•Â™ČąÂ?‘Žȹ South Carolina Board of Accountancy meet the public’s needs and licensee expectations. ČąÂ Â˜ÂžÂ•Â?ČąÂŠÂ•ÂœÂ˜ČąÂ•Â’Â”ÂŽČąÂ?Â˜ČąÂŽÂĄÂ?Ž—Â?ČąÂ?‘Žȹ board’s gratitude to SCACPA for its role in the new CPA Oath Ceremony.

The Board, with SCACPA’s help, administered the last oath ceremony for those licensed from April 2012 through September 2012, at SCACPA’s Annual Summit at the Columbia Convention Center. „

Donny Burkett, CPA, is executive vice president of Burkett, Burkett & Burkett, CPA, PA in West Columbia.

A past president of SCACPA, he is a member of SCACPA’s Managing Partners Task Force.

He can be reached at dburkett@ burkettcpas.com.

• The exchange of major ideas and œ˜•žÂ?Â’Â˜Â—ÂœČąÂ?ž›’—Â?ȹ›ŽÂ?Â’Â˜Â—ÂŠÂ•ČąÂ‹Â›ÂŽÂŠÂ”Â˜ÂžÂ?Čą sessions with board members and administrators/executive directors from other jurisdictions.

In my opinion, the presentations and informal gatherings with colleagues

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Board of Accountancy

The Future of the S.C. Board of Accountancy Concerns over the structure under which the BOA operates continue to escalate.

by Erin Hardwick Pate and J. Bratton Fennell, CPA Special thanks to the Georgia Society of CPAs for serving as a resource for the following article.

T

he South Carolina Board of Accountancy (BOA) plays a critical role in protecting both the public and the CPA profession. It is responsible for ensuring that the CPA credential in South Carolina stands for the core values of the profession– reliability, independence, objectivity.

Concerns over the structure under which the BOA operates continue to escalate. And if you were among ȱ ¢ȱŗǰŖŖŖȱ ȱ Ĵ ȱ ȱ of SCACPA’s regional professional issues update sessions, you heard about these concerns and how SCACPA intend to address them. ȱ ȱ ȱ ȱ ȱ concerns and information on SCACPA’s proposed solution.

The BOA is comprised of nine ȱȮȱę ȱ ǰȱ ȱ accounting practitioners and two public members – all of whom are appointed by the governor. These ȱ ȱ ȱ ȱ ę ȱ ȱ charge of the board, but their hands are often tied by the current funding structure and limited resources ě ȱ ȱ ȱ ¢ȱ ȱ ȱ Department of Labor Licensing and Regulation, LLR (the state agency within which the BOA resides).

Currently the BOA is one of 40 board and commissions that are administered by LLR. These boards and commissions range ȱ ȱ ȱ ǰȱ physicians and engineers to

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“What may be most surprising is that the annual license and firm registration fees that you remit to the BOA actually go to LLR and are pooled with fees from other boards and commissions.” ȱ ȱ ȱ ǰȱ cosmetologists and auctioneers.

These boards and commissions share Ĝ ȱ ȱ ȱ ¢ȱ and legal services.

What may be most surprising is ȱ ȱ ȱ ȱ ȱę ȱ registration fees that you remit to the BOA actually go to LLR and are pooled with fees from other boards and commissions. The state agency determines how these funds are ¡ ǯȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ȱ Ĵ ǰȱ ȱ ¢ǰȱ

authority on how to apply these resources to help them meet their mission of protecting the public.

ȱ ę ȱ ȱ ȱ ȱ ȱ collected by the BOA are swept out for purposes unrelated to the regulation of the accountancy profession. As you will see in the schedule below, $176,512 was transferred out of the BOA’s fund to other programs not related to the BOA; these include $106,448 for the implementation of immigration legislation, $54,433 to the state’s

South Carolina CPA Report

11

Board of Accountancy general fund and $15,631 to implement OSHA legislation. In addition, $443,705 was transferred to LLR for non-direct expenses. The basis for these allocation formulas are not discussed with the BOA; the transfers occur under the sole discretion of LLR. Ken Bishop, president and CEO of the National Association of State Boards of Accountancy (NASBA) shared his thoughts with SCACPA about the ȱ ȱ ȱ ȱ ȱ ǯȱȱȃ ȱ South Carolina Board of Accountancy ȱ ȱ ȱę ȱ ȱ ȱ the operational authority to carry out their statutory duties. NASBA believes that it is essential for all Boards of Accountancy to have the resources necessary to operate at a level that is commensurate with their responsibility to act in the public interest,” says Bishop.

As the advocate for the CPA profession in South Carolina,

What is the South Carolina Board of Accountancy?

The SC Board of Accountancy has many responsibilities, including: D Protecting the public D Protecting the credibility, validity and reliability of the CPA license D Determining initial qualifications and licensing D Making and updating statutes and rules D Determining continued competency and compliance, including CPE and peer review D Taking enforcement actions against CPAs who harm the public by violating these statutes, standards and rules

12

South Carolina CPA Report

YE June 30 2011

YE June 30 2012

Two-year period

1,132, 235*

111,822

1,244,057

BOA Direct Expenditures

(317,049)

(227,284)

(544,333)

BOA Non-Direct (Allocated) Expenses

(221,495)

(222,210)

(443,705)

Transfers to non LLR programs

(131,705)

(44,807)

(176,512)

Net

461,986

(382,479)

79,507

Revenue

2010-11 – 2011-12

*License renewals took place in the fall of 2010 under a schedule that at the time was biannual SCACPA has been concerned for years about the structure under which the BOA operates. There have been Ĵ ȱ ȱ Ě ȱ ȱ ȱ discussions with the leadership at LLR and with legislative proposals. ȱ ȱ ȱ ȱ ȱ ȱ ȱŘŖŗŘȱ ȱ ȱ ȱ on a legislative solution. SCACPA ȱ ȱ ȱ ȱ ȱ ȱ ȱ House and Senate Labor, Commerce ȱ ¢ȱ Ĵ ȱ ȱ ȱ legislation introduced to allow ȱ ȱę ȱ ȱ ȱ authority.

PROTECTING THE PUBLIC INTEREST A strong BOA is critical to protecting the citizens of South Carolina and the state’s business community. CPAs ȱ ȱ ȱ ȱ ȱ Ĵ ǰȱ ¡ȱ and advisory services that contribute to the state’s economic health and ȱ ȱ ȱę ȱ ¢ ǯȱ ȱ BOA plays a critical role in ensuring only competent individuals become CPAs and that those holding the designation follow statutes, standards and rules that govern the profession. ȱ ȱ ȱ ę ȱ ȱ ¢ǰȱ an accountancy board needs ȱ ȱ ȱ ȱ ěȱ with a high level of expertise in the profession and investigators ȱ ȱ ¢ȱ ȱ ȱ ȱ into complaints against CPAs of malpractice and other violations.

ȱ ȱ ȱ ¢ȱ ȱ preventing individuals from illegally representing themselves as CPAs. Currently, the BOA does not have the authority to hire support ěȱ ȱ ȱ ¡ ȱ ǯȱ ȱ board shares four LLR employees with other licensing boards, more ę ¢ȱ ȱ ¢ ȱ ȱ accountancy, funeral directors and cemetery owners. This means that, ȱ ǰȱ ȱ Ȃ ȱ ȱ ȱ slightly more than one full-time ȱ ¢ ǰȱ ȱ ȱ ¢ȱ Ĝ ǯȱȱ ȱ ȱ ȱ ȱ deeper than simply adding people. ȱ ȱ ȱ ȱ ěȱ with a high level of expertise to manage the issues around protecting the public and the profession. ȱ ȱ ȱ ěȱ ¡ ȱ in the CPA profession extends to investigators and prosecuting Ĵ ¢ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ĵ ¢ ǯȱ LLR has 43 investigators and 16 Ĵ ¢ ȱ ȱ ȱ ȱŚŖȱ ȱ licensing boards. These boards have over 398,200 licensees among them.

That’s roughly one investigator for şǰŘŜŖȱ ȱ ȱ ȱ Ĵ ¢ȱ ȱ 24,887 licensees.

NASBA addressed recently in a white paper the importance of having a ¢ȱ ę ȱ ěȱ ¢ ȱȃ ȱ

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Board of Accountancy

The BOA’s inability to hire ȱ ěǰȱ ¡ ȱ investigators and prosecuting Ĵ ¢ ȱ ȱ ȱ Ȃ ȱ ability to protect the public, South Carolina’s business community and the CPA profession. The BOA must be provided these resources to ě ¢ȱ ȱ ¢ȱ ȱ ȱ obligation.

THE FUTURE OF THE SC BOARD OF ACCOUNTANCY In the aforementioned white ǰȱ ȱ ȱ ȱ ȱ

¢ǯȱȃ ¢ȱ ȱ ȱ ȱ ě ȱ ȱ ¢ȱ complexity, goals, licensee services ȱ ȱ ę ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ are generally grouped under an umbrella agency. The CPA profession is the only one with accountability to third parties and the general public who are dependent upon audited ę ȱ ȱ ȱ ȱ ȱ ȱ ǰȱę ȱ ȱ and lending decisions.”

During the 2013 legislative session, ȱ ȱ ȱ ȱ ȱ ȱ leaders to advance legislation that will, if successful, provide the BOA with the ability to direct and manage their resources in order to protect ȱ ǯȱ ȱ ȱ ȱ¢ ȱ informed of developments on this important issue. Your help may be needed by contacting your local legislator to urge their support of this legislation. As a profession we must ȱ ȱ ȱ ȱ ȱ ȱ ȱ

BOA, and as a member of SCACPA, we appreciate your support and involvement!

Erin Hardwick Pate, CAE, has served as SCACPA’s CEO since 2005.

She currently serves as president of the CPA Society Executives Association, a member of the S.C. Secretary of State’s Nonprofit Advisory Council and Francis Marion University Advisory Council for the Non-Profit Leadership Institute.

J. Bratton Fennell, CPA, is chief financial officer for Burroughs & Chapin Company, Inc. in Myrtle Beach. A SCACPA members since 1989, he serves as vice chair of the board and chair of the Board of Accountancy Autonomy Task Force and a member of the Finance Committee, Audit Committee, Investment Committee and Behavioral Standards Committee.

CLICK

Read NASBA’s position paper on Semi-Independent State Boards of Accountancy at www.scacpa.org/NASBA.

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Officially, of course, it’s Chartered Global Management Accountant.

A new designation representing accomplished professionals that drive and deliver business success, worldwide.

Find out more at cgma.org

South Carolina CPA Report

Copyright © 2012 American Institute of CPAs. All rights reserved.

¢ȱ ȱ ȱ ȱ ¢ȱ ȱ is technical and comprehensive, as are the accountancy statutes and regulations. As a result, enforcement cases can be exceedingly complex, ¢ȱ ȱ ěȱ ȱ ȱ ę ȱ ȱ ȱ ǰȱ ȱ ȱ ȱ experience in order to understand ȱ ę ȱ ȱ ȱ ȱ professional standards.”

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SCACPA, JA Team Up To Build Awareness of Entrepreneurship and CPA Profession

by Renita M. Owens, CPA, PFS SCACPA member since 1989

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ÂœČąÂŠČąÂ–ÂŽÂ–Â‹ÂŽÂ›ČąÂ˜Â?ČąÂ?‘Žȹ Â’Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•Čą Â’Â?ÂŽÂ›ÂŠÂŒÂ˘Čą ÂŠÂœÂ”Čą Â˜Â›ÂŒÂŽČą for SCACPA since 2006, I have seen a lot of hard Â Â˜Â›Â”ČąÂ‹Â˘ČąÂ?Â‘ÂŽČąÂŒÂ˜Â–Â–Â’Ä´ÂŽÂŽČąÂ Â‘Â’Â•ÂŽČąÂ?›¢’—Â?ČąÂ?Â˜ČąÂ?Žœ’Â?—ȹ learning materials and determine the best opportunity Â?Â˜ČąÂ Â˜Â›Â”ČąÂ Â’Â?‘ȹ’—Â?Â’Â&#x;Â’Â?ÂžÂŠÂ•ÂœČąÂ’Â—ČąÂ˜ÂžÂ›ČąÂœÂ?ŠÂ?ÂŽČąÂ Â‘Â˜ČąÂ—ÂŽÂŽÂ?ČąÂ?›Š’—’—Â?Čą and ideas about managing money. Â‘ÂŽÂ›ÂŽČąÂ ÂŽÂ›ÂŽČąÂ™Â›Â˜Â‹Â•ÂŽÂ–ÂœČąÂ Â˜Â›Â”Â’Â—Â?ȹ ’Â?‘ȹ ČąÂ™Â›Â˜Â?Â›ÂŠÂ–ÂœČą across the state because the adults in the programs, Â?‘˜žÂ?‘ȹ—ŽŽÂ?’—Â?ČąÂ?Â‘ÂŽČąÄ™Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•ČąÂœÂ”Â’Â•Â•ÂœČąÂ‹ÂŠÂ?Â•Â˘Ç°ČąÂ ÂŽÂ›ÂŽČąÂŽÂ—Â›Â˜Â•Â•ÂŽÂ?Čą in classes to prepare for the GED exam while juggling Â Â˜Â›Â”ČąÂŠÂ—Â?ČąÂ?ÂŠÂ–Â’Â•Â’ÂŽÂœÇŻČą

“The overall objective is to help the students stay in school and reduce an extremely high dropout rate in our state. I love the program (Junior Achievement)!â€? Â—ČąĹ˜Ĺ–Ĺ—Ĺ—ČąÂ?‘ŽȹÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČąÂ?ŽŒ’Â?ÂŽÂ?ČąÂ?Â˜ČąÂ Â˜Â›Â”ČąÂ Â’Â?‘ȹ ÂžÂ—Â’Â˜Â›Čą Œ‘’ŽÂ&#x;Ž–Ž—Â?ȹǝ ÇźÇ°ČąÂŠČąÂ—Â˜Â—Â™Â›Â˜Ä™Â?ČąÂ˜Â›Â?Š—’£ŠÂ?Â’Â˜Â—Ç°ČąÂ Â‘Â’ÂŒÂ‘Čą already had volunteer opportunities in the public school system throughout the state and sophisticated, easy to use materials that meet educational standards as ›Žšž’›ŽÂ?ȹ‹¢ȹÂ?‘Žȹ Â?ŠÂ?ÂŽČąÂ˜Â?Čą ˜žÂ?‘ȹ ÂŠÂ›Â˜Â•Â’Â—ÂŠÇŻ Â?ČąÂ–Â˘ČąÂ›ÂŽÂšÂžÂŽÂœÂ?Ç°Čą ¢—Â?Šȹ ™™•ŽǰȹÂ?’›ŽŒÂ?Â˜Â›ČąÂ˜Â?Čą ÂžÂ—Â’Â˜Â›Čą Œ‘’ŽÂ&#x;Ž–Ž—Â?ȹ’—ȹÂ?‘Žȹ ™œÂ?ŠÂ?ÂŽÇ°ČąÂŒÂŠÂ–ÂŽČąÂ?Â˜ČąÂ–Â˘ČąÂ˜ÄœÂŒÂŽČąÂŠÂ—Â?Čą explained the JA program. She left three portfolios for Â?’쎛Ž—Â?ČąÂ?›Š’—’—Â?ČąÂœÂŽÂœÂœÂ’Â˜Â—ÂœČąÂ?Â˜Â›ČąÂ–Â˘ČąÂ›ÂŽÂ&#x;’Ž ȹŠ—Â?ČąÂ™Â›Â˜Â&#x;Â’Â?ÂŽÂ?Čą ÂŠČąÂ•Â’ÂœÂ?ČąÂ˜Â?ČąÂœÂŒÂ‘Â˜Â˜Â•ÂœČąÂ’Â—ČąÂ–Â˘ČąÂŠÂ›ÂŽÂŠČąÂ?‘ŠÂ?ȹ‘ŠÂ?ČąÂ›ÂŽÂšÂžÂŽÂœÂ?ÂŽÂ?ČąÂ&#x;˜•ž—Â?ŽŽ›ȹ help. ČąÂ?ŽŒ’Â?ÂŽÂ?ČąÂ?Â˜ČąÂ Â˜Â›Â”ČąÂ Â’Â?‘ȹ ˜˜Â?–˜—Â?Čą Â’Â?Â?•Žȹ ÂŒÂ‘Â˜Â˜Â•Č‚ÂœČąÂœÂ’ÂĄÂ?‘ȹ grade after school program in the Piedmont area. The ™›˜Â?Â›ÂŠÂ–ČąÂ’ÂœČąÂ?Žœ’Â?—ŽÂ?ČąÂ?Â˜ČąÂ‘ÂŽÂ•Â™ČąÂœÂ?žÂ?Ž—Â?ÂœČąÂ Â’Â?Â‘ČąÂ‘Â˜Â–ÂŽÂ Â˜Â›Â”Čą Š—Â?ČąÂ?žÂ?˜›’—Â?ȹž—Â?’•ȹÂ?‘Ž’›ȹ™Š›Ž—Â?ÂœČąÂŒÂŠÂ—ČąÂ™Â’ÂŒÂ”ČąÂ?‘Ž–ȹž™ȹŠÂ?Â?Ž›ȹ Â Â˜Â›Â”ÇŻČąČą Â‘ÂŽČąÂ˜Â&#x;ÂŽÂ›ÂŠÂ•Â•ČąÂ˜Â‹Â“ÂŽÂŒÂ?Â’Â&#x;ÂŽČąÂ’ÂœČąÂ?Â˜ČąÂ‘ÂŽÂ•Â™ČąÂ?Â‘ÂŽČąÂœÂ?žÂ?Ž—Â?ÂœČąÂœÂ?Š¢ȹ in school and reduce an extremely high dropout rate in our state.

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South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

ČąÂ•Â˜Â&#x;ÂŽČąÂ?Â‘ÂŽČąÂ™Â›Â˜Â?›Š–ǡȹȹ ‘Žȹ”’Â?ÂœČąÂŠÂ›ÂŽČą great and there are enough teachers for the group to maintain the discipline needed throughout the activities.

I chose a series of study called Our Nation. I prepare for one to two hours on Sunday afternoon, using the JA provided materials, then go to school from 5- 6 p.m. on Tuesday afternoons. The course of ÂœÂ?žÂ?Â˘ČąÂ›ÂŽÂšÂžÂ’Â›ÂŽÂœČąÄ™Â&#x;ÂŽČąÂœÂŽÂœÂœÂ’Â˜Â—ÂœČąÂ Â’Â?‘ȹ approximately 10 – 15 minutes of lecture and 45 – 50 minutes of activities and games.

Our Nation Â’ÂœČąÂŠÂ‹Â˜ÂžÂ?ČąÂ Â˜Â›Â”Â’Â—Â?ȹŠ—Â?Čą starting your own business. It was amazing to see some of the business ideas the groups had. Science, techology, engineering and math (STEM) are emphasized as career areas that are in high demand at this Â?’–ŽȹŠ—Â?ȹ›Žšž’›ŽȹŽÂ?žŒŠÂ?Â’Â˜Â—ČąÂ?Â˜ČąÂŠÂŒÂšÂžÂ’Â›ÂŽČą Â?Â‘ÂŽČąÂœÂ”Â’Â•Â•ÂœČąÂ—ÂŽÂŽÂ?ÂŽÂ?ČąÂ?Â˜ČąÂ˜Â‹Â?ÂŠÂ’Â—ČąÂ“Â˜Â‹ÂœČąÂ’Â—Čą these areas.

The educator over the Woodmont program and I had decided that, even though Our Nation had already ‹ŽŽ—ȹÂ?ÂŽÂ?Ž›–’—ŽÂ?ČąÂ?Â˜Â›ČąÂ?Â‘ÂŽČąÄ™Â›ÂœÂ?ČąÂœÂŽÂœÂœÂ’Â˜Â—Ç°Čą the series called Â˜Â›ÂŽČą ‘Š—ȹ Â˜Â—ÂŽÂ˘Čą might be more in line for learning Â™ÂŽÂ›ÂœÂ˜Â—ÂŠÂ•ČąÂ–Â˜Â—ÂŽÂ˘ČąÂ–ÂŠÂ—ÂŠÂ?Ž–Ž—Â?ČąÂœÂ”Â’Â•Â•ÂœÇŻ I completed the Our Nation sessions with the students and went straight into the Â˜Â›ÂŽČą ‘Š—ȹ Â˜Â—ÂŽÂ˘ series.

This one involves a community game  ’Â?Â‘ČąÂŠČąÂŒÂ‘ÂŽÂŒÂ”ČąÂ›ÂŽÂ?Â’ÂœÂ?ÂŽÂ›ČąÂœÂ˜ČąÂ?Â‘ÂŽÂ˘ČąÂŒÂŠÂ—ČąÂœÂ?Š›Â?Čą with a deposit then add income and deduct expenses as they play the game. There is also discussion of Â?˜˜Â?ČąÂ Â˜Â›Â”ČąÂ‘ÂŠÂ‹Â’Â?ÂœČąÂŠÂ—Â?ȹŠȹÂ?˜˜Â?ČąÂ Â˜Â›Â”Čą ÂŽÂ?Â‘Â’ÂŒÇ°ČąÂ Â‘ÂŽÂ?Â‘ÂŽÂ›ČąÂ˘Â˜ÂžČąÂŠÂ›ÂŽČąÂ Â˜Â›Â”Â’Â—Â?ČąÂ?Â˜Â›Čą someone else or have your own business.

to students about what I did that Â?Š¢ȹŠÂ?ČąÂ Â˜Â›Â”Ç°ČąÂŒÂ‘ÂŠÂ•Â•ÂŽÂ—Â?ÂŽÂœČąÂ›ÂŽÂ™Â›ÂŽÂœÂŽÂ—Â?’—Â?Čą clients before the IRS, the education ›Žšž’›ŽÂ?ČąÂ?Â˜ČąÂ‹ÂŽÂŒÂ˜Â–ÂŽČąÂŠČą ǰȹŠ—Â?ȹ›ŽŠ•ȹ life stories that relate to the materials.

The children are really engaged in Â?‘Žȹ•ŽŠ›—’—Â?ČąÂŠÂŒÂ?Â’Â&#x;Â’Â?Â’ÂŽÂœÇŻČąČą ÂŽÂŠÂ–Â Â˜Â›Â”Čą and discussion are encouraged.

During the last session of Our Nation, ČąÂ?Â˜Â˜Â”ČąÂ™Â’ÂŒÂ—Â’ÂŒČąÂ‹Â•ÂŠÂ—Â”ÂŽÂ?ÂœČąÂŠÂ—Â?ČąÂœÂŠÂ?ČąÂ˜Â—Čą Â?Â‘ÂŽČąÄšÂ˜Â˜Â›ČąÂ Â’Â?Â‘ČąĹ™ĹœČąÂœÂ?žÂ?Ž—Â?ÂœČąÂ?Â˜ČąÂ?Â’ÂœÂŒÂžÂœÂœČą various careers and let each one tell what they wanted to do for their career as well as what some of the members of their family do to earn a living.

If you are interested in partnering with Junior Achievement in your community, visit the SCACPA website atČąÂ‘Ä´Â™ÇąČŚČŚÂ Â Â ÇŻÂœÂŒÂŠÂŒÂ™ÂŠÇŻ ˜›Â?ČŚ ˜—Â?Ž—Â?ČŚ Ž–‹Ž› ÂŒÂ?Â’Â&#x;Â’Â?Â’ÂŽÂœČŚ ˜•ž—Â?ŽŽ› ™™˜›Â?ž—’Â?Â’ÂŽÂœČŚ

FinancialLiteracyTaskForceProject GED.aspx Renita M. Owens, CPA, PFS is the principal of Renita M. Owens, CPA, LLC in Greenville. Started by her father in 1959, the firm has eight employees and is a full service accounting firm.

TRANSFORMING THE GOVERNMENTAL LANDSCAPE

COPPER DOME S T R A T E G I E S, L L C A Subsidiary of Haynsworth Sinkler Boyd, P.A.

Carl Blackstone Kim Kent

Billy Routh Jeff Thordahl

www.HSBCopperDome.com

Encouraged to tell about the ŠŒŒ˜ž—Â?’—Â?ČąÂ™Â›Â˜Â?ÂŽÂœÂœÂ’Â˜Â—Ç°Čą ȹ‘ŠÂ&#x;ÂŽČąÂ?Š•”ŽÂ?Čą

(888) 557-4814 | www.scacpa.org

South Carolina CPA Report

15

Focus on Membership

Ž–‹Ž›ȹ ›˜ę•Ž

Â˜Â—Â—Â˘Čą ÇŻČą ž›”ŽĴǰȹ Title and Company: Executive Vice President, Burkett Burkett & Burkett, Certified Public Accountants, P.A. Hometown: West Columbia, South Carolina SCACPA Involvement: Managing Partners Task Force, past president of the SCACPA board, recipient of the 2008 Outstanding Service to Profession Award SCACPA Member since: 1976 Why did you become a CPA? It became apparent to me Â Â‘Â’Â•ÂŽČąÂ Â˜Â›Â”Â’Â—Â?ȹŠÂ?ȹŠȹÂ?Â›Â˜ÂŒÂŽÂ›Â˘ČąÂœÂ?Â˜Â›ÂŽČąÂ?ž›’—Â?ȹ‘’Â?Â‘ČąÂœÂŒÂ‘Â˜Â˜Â•Čą that accounting was the language of business. If I ž—Â?Ž›œÂ?˜˜Â?ČąÂ?Â‘ÂŽČąČƒÂ•ÂŠÂ—Â?žŠÂ?ÂŽČąÂ˜Â?ČąÂ‹ÂžÂœÂ’Â—ÂŽÂœÂœÇ°Č„ČąÂ?‘Ž—ȹ ČąÂ Â˜ÂžÂ•Â?Čą have advantage in the business world.

What do you enjoy most about being in public accounting? Least? I thoroughly enjoy the ability to Â Â˜Â›Â”ČąÂ’Â—ČąÂŠČąÂ“Â˜Â‹ČąÂ’Â—ČąÂ Â‘Â’ÂŒÂ‘ČąÂ˘Â˜ÂžČąÂ–ÂžÂœÂ?ČąÂ•ÂŽÂŠÂ›Â—ČąÂœÂ˜Â–ÂŽÂ?‘’—Â?ȹ—Ž ȹ every day to survive, as well as, being a member of a profession that excels in the highest regard because of its ethical behavior of the members. The demanding hours Â?ž›’—Â?ČąÂ?ÂŠÂĄČąÂœÂŽÂŠÂœÂ˜Â—ČąÂ™Â›Â˜Â&#x;ÂŽÂœČąÂ?Â˜ČąÂ‹ÂŽČąÂ?‘ŽȹÂ?‘’—Â?ČąÂ?‘ŠÂ?Čą ȹ•’”ŽȹÂ?‘Žȹ least about this profession.

How have you benefitted from your membership in SCACPA? I have been able to establish relationships with other CPAs throughout the state of South Carolina who are not only colleagues, but who have become lifelong friends.

You currently serve as chairman of the Board of Accountancy and a member of the National Association of State Boards of Accountancy. What do you find the most rewarding in serving on these boards? Most challenging? Through these boards we are able to Â’Â—ÄšÂžÂŽÂ—ÂŒÂŽČąÂ•ÂŽÂ?’œ•ŠÂ?Â’Â˜Â—ČąÂŠÂ—Â?ČąÂ˜Â?‘Ž›ȹ›ž•Žȹ–Š”’—Â?ČąÂ‹Â˜Â?Â’ÂŽÂœČą in order to enhance the CPA profession. The most challenging is without a doubt, the part of the job with the Board of Accountancy which involves disciplinary actions against other CPAs and being privy to some of the unethical behavior of fellow professionals.

What major obstacles do you think the CPA profession faces today and in the future? Quite simply, recruiting and retaining the best and the brightest for our outstanding profession.

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South Carolina CPA Report

What is one thing your colleagues would be surprised to learn about you? ČąÂ•Â˜Â&#x;ÂŽČąÂ?Â˜ČąÂŒÂ˜Â˜Â”ČąÂ?Â˜Â›ČąÂ?›’Ž—Â?ÂœČąÂŠÂ—Â?ČąÂ?Š–’•¢ȹŠ—Â?Čą ȹ‘ŠÂ&#x;ŽȹŠĴŽ—Â?ÂŽÂ?ČąÂŒÂ˜Â˜Â”Â’Â—Â?ČąÂŒÂ•ÂŠÂœÂœÂŽÂœČąÂ’Â—ČąÂ–Â˘ČąÂ?›ŽŽȹÂ?’–Žǯ How do you enjoy your leisure time? Traveling. I have been fortunate enough in my life to travel throughout the world. I also enjoy spending time at the Isle of Palms with my family and friends.

If I were not a CPA I would be? A teacher and coach. „

It’s a rare combination:

A tax lawyer with courtroom savvy.

Jerry has more than 14 years of courtroom experience, having litigated cases in 18 states and scored several multi-million dollar verdicts. He graduated with distinction from Georgetown’s Tax LL.M. program, after receiving his J.D. and A.B. from Duke University.

Jerry represents North and South Carolina clients in U.S. Tax Court proceedings, federal refund actions, tax collection actions, and state income and sales tax proceedings.

When it’s time for your client to call in a tax lawyer, Jerry Meek is courtroom ready.

250 N. Trade Street, Suite 207 | Matthews, NC 28105 Tel: 704.845.9490 | www.jerrymeek.com

(888) 557-4814 | www.scacpa.org

Focus on Membership

Member News ˜—Š•Â?Čą ÇŻČą Â˜Â‹Â•ÂŽÂ˘Ç°Čą Ç° has been —Š–ŽÂ?ȹ–Š—ŠÂ?’—Â?ČąÂ–ÂŽÂ–Â‹ÂŽÂ›ČąÂ˜Â?Čą ÂŒÂ˜Ä´Čą and Company, LLC, Columbia. In his new role, Mobley will oversee the strategic direction and management ˜Â?ČąÂ?Â‘ÂŽČąÄ™Â›Â–ČąÂ Â‘Â’Â•ÂŽČąÂŒÂ˜Â—Â?’—ž’—Â?ČąÂ?Â˜Čą Â?ÂŽÂ&#x;ÂŽÂ•Â˜Â™ČąÂ?Â‘ÂŽČąÄ™Â›Â–Č‚ÂœČąÂ™Â›ÂŠÂŒÂ?Â’ÂŒÂŽČąÂŠÂ—Â?Čą provide client service for some of the Ä™Â›Â–Č‚ÂœČąÂ•ÂŠÂ›Â?ÂŽÂœÂ?ȹŠžÂ?Â’Â?ČąÂŒÂ•Â’ÂŽÂ—Â?ÂœÇŻČą

Â˜Â‘Â—Čą ÇŻČą Â›Â’ÂŒÂŽÇ°Čą ›ǯǰȹ Ç°Čąwill serve ÂŠÂœČąÂŒÂ‘Â’ÂŽÂ?ČąÄ™Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•ČąÂ˜ÄœÂŒÂŽÂ›ČąÂ?Â˜Â›Čą ÂŒÂ˜Ä´Čą and Company, LLC. He will also Œ˜—Â?’—žŽȹÂ?Â˜ČąÂ‘ÂŽÂŠÂ?ČąÂ?Â‘ÂŽČąÄ™Â›Â–Č‚ÂœČąÂ?Š¥ȹ practice. ’••ȹ žŠĴ•Ž‹Šž–ǰȹ Ç° has joined Â•Â•Â’Â˜Ä´Čą ŠÂ&#x;Â’ÂœÇ°Čą ȹ’—ȹ Â˜Â•ÂžÂ–Â‹Â’ÂŠČąÂŠÂœČą shareholder. ÂžÂœÂœÂŽÂ•Â•Čą žŠĴ•Ž‹Šž–ǰȹ Čąhas “˜’—ŽÂ?Čą Â•Â•Â’Â˜Ä´Čą ŠÂ&#x;Â’ÂœÇ°Čą ȹ’—ȹ Columbia as senior manager.

˜‹Ž›Â?Čą ÇŻČą ’•Â?Â˜Â—Ç°Čą Ç° has been named a partner with WebsterRogers. ’•Â?Â˜Â—ČąÂ Â˜Â›Â”ÂœČąÂ’Â—ČąÂ?Â‘ÂŽČąÄ™Â›Â–Č‚ÂœČą Â•Â˜Â›ÂŽÂ—ÂŒÂŽČą Â˜ÄœÂŒÂŽČąÂŠÂ—Â?ČąÂ‘ÂŠÂœČąÂ˜Â&#x;ÂŽÂ›ČąĹ—Ĺ™ČąÂ˘ÂŽÂŠÂ›ÂœČąÂ˜Â?Čą experience in public accounting with an emphasis in audit.

Kimberly WelpČąÂ“Â˜Â’Â—ÂŽÂ?Čą ÂŽÂ›Â›Â’ÂŒÂ”Ç°Čą Stubbs & Stith, LLP as an audit and assurance specialist.

Firm News Â•Â•Â’Â˜Ä´Čą ŠÂ&#x;Â’ÂœÇ°Čą Ç°Čąhas been named Š–˜—Â?ČąÂ?Â‘ÂŽČąČƒ ÂŽÂœÂ?Čą Â•ÂŠÂŒÂŽÂœČąÂ?Â˜Čą Â˜Â›Â”ČąÂ’Â—Čą South Carolinaâ€? for a sixth consecuÂ?Â’Â&#x;Žȹ¢ŽŠ›ǯȹ ‘Žȹꛖȹ›Š—”ŽÂ?ČąÂ?‘’›Â?ȹ’—ȹÂ?‘Žȹ large company category (250 employees or more). ÂŒÂ˜Ä´ČąÂŠÂ—Â?Čą Â˜Â–Â™ÂŠÂ—Â˘Ç°Čą Čąwas named Â˜Â—ÂŽČąÂ˜Â?ČąÂ?‘Žȹ ÂŽÂœÂ?Čą Â•ÂŠÂŒÂŽÂœČąÂ?Â˜Čą Â˜Â›Â”ČąÂ’Â—Čą South Carolina in the small/medium employer category.

Condolences ǯȹ ž¢ȹ ‘ŽŠ•¢ȹ ›ǯǰȹ ǰ died Nov. 26, 2012.

Born in Batesburg, he was a graduate of the University of South Carolina. Guy obtained his CPA license in 1967 and owned E. Guy Shealy Jr., CPA, in BatesburgLeesville.

Guy was a lifetime member of SCACPA having joined the association in 1967. He served as a member ˜Â?ČąÂ?‘Žȹ ŽŽ›ȹ ÂŽÂ&#x;Â’ÂŽÂ Čą Â˜Â–Â–Â’Ä´ÂŽÂŽČąÂœÂ’Â—ÂŒÂŽČą 1995. For many years he was the sole

technical reviewer for SCACPA. In 2007, he became the senior technical reviewer and in that role served as a valuable resource to his peers. He previously served on the Information ŽŒ‘—˜•˜Â?¢ȹ Â˜Â–Â–Â’Ä´ÂŽÂŽÇŻÂ„

Welcome New Members (through 12-31-12) ASSOCIATE David M. Rutter Faunce, CPA, CrFA Rutherfordton, NC Charles E. McNealy, CPA Charlotte, NC Mark A. Peters Simpsonville, SC Rose M. Santiago-Toca Florence, SC Dennis H. Skibinski Mt. Pleasant, SC Wilfred A. Smith Charleston, SC

CPA CANDIDATE Lori Berger Sumter, SC William M. Boyd Greenville, SC Monica E. Carver Columbia, SC

Sarah E. Hooper Columbia, SC

Casey W. Earhart, CPA Greer, SC

Nam H. Nguyen, CPA Moncks Corner, SC

Pamela B. Westbrooks, CPA Spartanburg, SC

Jessica L. Hudson Charleston, SC

Jonathan E. Flinchum, CPA Wedgefield, SC

Justin T. Phillips, CPA Greenville, SC

FIRM ADMINISTRATOR

Stephen M. Rossetti Fort Mill, SC

Nathan D. Gillow, CPA Greenville, SC

Joseph R. Reese, CPA Easley, SC

Ryan W. Smith Taylors, SC

Lawrence R. Hammond Jr, CPA Evans, GA

Heather Rhinehart, CPA Orangeburg, SC

Miles R. Warren, CFE Greenville, SC

Brett B. Hancock, CPA Belton, SC

Emily K. Sobczak, CPA Charleston, SC

Shannon W. Edwards Myrtle Beach, SC

Kimberly H. Welp Columbia, SC

Stephanie A. Harrison, CPA Aiken, SC

E. A. Thrower, CPA Greenville, SC

Taylor Huettig Columbia, SC

Preston W. Williams Greenville, SC

Lisa R. Hornyak, CPA Greenwood, SC

Tiffany N. Wargo, CPA Greenville, SC

Tammy B. Lloyd West Columbia, SC

Jamie Ziembo West Columbia, SC

Elizabeth M. Lott, CPA Columbia, SC

Wendy C. Weimer, CPA Myrtle Beach, SC

Corey A. Munden West Columbia,SC

FELLOW

Kurt E. Moore Sr., CPA Sumter, SC

FELLOW-OTHER

Kelly S. Sorensen Columbia, SC

Margaret A. Bost, CPA, MACC Myrtle Beach, SC Pete Chavez, CPA Simpsonville, SC

(888) 557-4814 | www.scacpa.org

Chad D. Nagel, CPA Charleston, SC

William K. Bowers, CPA Bluffton, SC Teresa P. Taylor, CPA Anderson, SC

STUDENT Sarah Arnold Aiken, SC

Lisa C. Arnett Beaufort, SC

Evan T. Barbare Columbia, SC

Ebony Austin Greenville, SC

Melissa S. Eichinger Columbia, SC

PROFESSIONAL AFFILIATE

Thomas L. Kennedy Pamplico, SC Kim M. Manuel Pelzer, SC Lillian H. Minor Greenville, SC John Stafford Columbus, OH Brett N. Wyatt Gaffney, SC

RETIRED William J. Mills, CPA Isle of Palms, SC

South Carolina CPA Report

17

A Look Back at the 2012 CPA Summit

O

Â&#x;ÂŽÂ›ČąĹ˜Ĺ–Ĺ–ČąÂŠÄ´ÂŽÂ—Â?ÂŽÂŽÂœČąÂ?ŠÂ?‘Ž›ŽÂ?Čą ˜Â&#x;ÇŻČąĹ—ČŹĹ˜ČąÂŠÂ?ČąÂ?‘Žȹ Ĺ˜Ĺ–Ĺ—Ĺ˜Čą Čą ž––’Â?ČąÂ?Â˜ČąÄ™Â—ÂŽČąÂ?ž—ŽȹÂ?‘Ž’›ȹ ČąÂ?ŠŒÂ?Â˜Â›ÇŻČą The two-day conference included a variety of šžŠ•’Â?¢ȹ Ç°ČąÂ?‘Žȹ Čą ——žŠ•ȹ ÂžÂœÂ’Â—ÂŽÂœÂœČą ÂŽÂŽÂ?’—Â?Čą Š—Â?ČąÂ˜Â™Â™Â˜Â›Â?ž—’Â?Â’ÂŽÂœČąÂ?Â˜ČąÂŒÂ˜Â—Â—ÂŽÂŒÂ?ȹ ’Â?Â‘ČąÂŒÂ˜Â•Â•ÂŽÂŠÂ?ÂžÂŽÂœÇ°ČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›ÂœČą and vendors. Â’Â?Â‘ČąĹ™Ĺ˜ČąÂœÂŽÂœÂœÂ’Â˜Â—ÂœČąÂ?Â˜ČąÂŒÂ‘Â˜Â˜ÂœÂŽČąÂ?Â›Â˜Â–Ç°ČąÂ?Â‘ÂŽČąÂœÂžÂ–Â–Â’Â?ČąÂ˜Ä›ÂŽÂ›ÂŽÂ?ȹŗĹ?Čą Â‘Â˜ÂžÂ›ÂœČąÂ˜Â?Čą ȹ’—ȹÂ?Â˜ÂžÂ›ČąÂ?Â›ÂŠÂŒÂ”ÂœÇŻČą Â˜Â™Â’ÂŒÂœČąÂ’Â—ÂŒÂ•ÂžÂ?ÂŽÂ?Čą Ž‹˜˜Â?ing Business, Multi-State Taxation, Healthcare Reform Provisions, Ethics, Succession Planning, Successor & ›Š—œÂ?Ž›ŽŽȹ ’Š‹’•’Â?¢ǰȹ Â?›ŠÂ?ÂŽÂ?Â’ÂŒČą Â”Â’Â•Â•ÂœČąÂ?Â˜Â›Čą Â’Â—ÂŠÂ—ÂŒÂŽÇ°Čą ŽŽ›ȹ Review, Fraud Detection and Prevention, IRA Distribution Planning, Consolidating Data in Excel, Tax Controversy and more.

SCACPA’s Annual Business Meeting included committee reports, the approval of the 2013 budget, board elections and the passing of the gavel from Chair Michael Putich to Sharon Mann, who will assume the chair position July 1, 2013.

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Other highlights included the Awards Luncheon, Student Recognition luncheon and the New CPA Oath Ceremony.

In Your Words Good mix of topics for the breakout sessions.

I enjoyed seeing friends and collegues. The event was worthwhile and I will likely go back next year.

I enjoy the opportunity to have varied topics and speakers and be able to get updates on topics that are relevant to our profession. ÂŠÂ–ÂŽČąÂ‘Â˜Â–ÂŽČąÂ Â’Â?Â‘ČąÂŠČąÂ•Â˜Â?ČąÂ?Â˜ČąÂ?Â‘Â’Â—Â”ČąÂŠÂ‹Â˜ÂžÂ?Čą and act on -- very good overall. ČąÂ›ÂŽÂŠÂ•Â•Â˘ČąÂ•Â˜Â˜Â”ČąÂ?˜› Š›Â?ČąÂ?Â˜ČąÂŠÄ´ÂŽÂ—Â?’—Â?Čą each year and catching up on new developments and ideas related to use of technology.

2013 SUMMIT SAVE THE DATE November 13-14 DoubleTree in Columbia

Look forward to next year's event!

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X SCACPA Board Chair Michael Putich, CPA, passes the gavel to Chair-elect Sharon Mann, CPA, at the Annual Business Meeting. Y Congressman Joe Wilson speaks at the Managing Partners Breakfast. Z McRoy Skipper, CPA, (at right) WebsterRogers, LLP, Georgetown, surprises Bob Cooper, CPA, McKinley Cooper & Co., LLC, Greenville, with a framed 48 representing the number of CPA Summit & Annual Meetings he has attended. [ SCACPA members Charles Alvis, CPA, Winthrop University, Rock Hill and Pat McDermott, CPA, The Beach Co., Charleston update their SCACPA member profile during the break. \ The summit offered attendees plenty of time to network with peers. ] SCACPA Secretary-Treasurer Robert Tilton, CPA, (center) WebsterRogers, LLP, Florence, talks with peers during the break.

7 Panelists (from left) Jimmy E. Addison, CPA, SCANA, Cayce; Richard Waycaster, CPA, Elliott Davis, LLC, Greenville; Deanna Cochran, CPA, CGMA, Coastal Cancer S Center, Myrtle Beach; Sharon Mann, CPA, CGMA, General Information Services Inc., Chapin; and Paul Parks, CPA, CGMA, AICPA, Durham, N.C.; discuss Rebooting Business: How Human Factors are Critical for Long-Term Business Success.

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South Carolina’s New CPAs Â˜Â—Â’ÂŠČą Â‹Â‹Â˜Ä´Čą Craig Adams Angela Arnold Emile Artus Amanda Bagwell * Kathryn Bahme Â•Â•Â’ÂœÂ˜Â—Čą Š”Ž›

Â˜Â‘Â—Čą Š›ęŽ•Â?Čą

žœÂ?’—ȹ Â•ÂŠÂŒÂ”ČąČ˜Čą Robert Burch Daniel Campbell Xuan Cao Michelle Carl * Patricia Coimbra ÂŽÂ‹ÂŽÂŒÂŒÂŠČą ˜”Ž› Š›”ȹ Â›Â˜ÂœÂ‹Â˘ Robert Deuel* Lauren Deuell* •Š—ȹ Â˜ÂŠÂ”Č˜ ÂŠÂ–Â›Â˜Â—Čą ÂŠÂžÂ•Â”Â—ÂŽÂ›Č˜ Richard Fisch Jonathan Flinchum Ž›ŽÂ?Â’Â?‘ȹ •’Ĵ—Ž› John Gabbard*

Rebecca Givens Michelle Gneisig* Pamela Greene* Natalie Hite* Monica Houston Bruce Howell William Huber Lauren Hubert Robert Hutchison* David Johnson Kevin Karpowicz* Paul Kelly ‘›’œÂ?Â˜Â™Â‘ÂŽÂ›Čą Â˜Â™ÂŽÂŒÂ”Â˘ Kenneth Kriner James Lagana Jessica Laney*

ŽěŽ›¢ȹ ÂŽÂ Â’ÂœČ˜ George Long Christopher Lynch Dzwimbu Magombedze Geralyne Mahoney Â‘ÂŠÂ›Â•Â˜Ä´ÂŽČą Š—œ˜— Benjamin Martin* Donna Miser

’ľ’ȹ ÂŒ ÂŠÂ•Â•Č˜ Dennis McGlory* Silvia McKenna Hope McNeill Sarah Meyer* Kirby Mills Christina Moore* Sarah Motley Chad Nagel Katharine Pace Amy Payne* Justin Phillips James Pierce Luisa Pino  Ž—ȹ ’›”•Ž Sarah Presnell

ÂŽÂœÂœÂ’ÂŒÂŠČą ›ž’Ĵ ž£Š——Žȹ ÂžÂŠÄ´Â•ÂŽÂ‹ÂŠÂžÂ–Č˜ Alysa Rubin Wade Sansbury Mary Shuler* John Sircy Jordan Smith* –’•¢ȹ Â˜Â‹ÂŒÂŁÂŠÂ”

Corey Swaim* Ashley Tate* Alan Taylor* Dana Thompson* Tamara Thompson Patricia Trombly* —Â?›Ž ȹ žŒ”Ž› John Vann*

ž•’Šȹ ÂŠÂœÂšÂžÂŽÂŁČ˜ Â’ÂŒÂ˜Â•ÂŽČą ŠÂ?ÂŒÂ‘Â’Â—ÂœÂ”Â’Č˜ Daniel Wheeler Amber White* Kevin Wise* Robert Young* Yinglin Yu Chase K. Williams Victor L. Williams ŠÂ?Â›Â’ÂŒÂ”Čą ÇŻČą Â’Â•ÂœÂ˜Â—Čą Charles M. Wooten * ** Indicates SCACPA member at time of Oath Ceremony.

S The New CPA Oath Ceremony was held in conjunction with SCACPA’s CPA Summit.

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ȱ ȱ £ ȱ ȱ ȱ ȱ

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he South Carolina Association ȱ ę ȱ ȱ ȱ ǻ Ǽȱ £ ȱ ¡ȱ ȱ for their achievements in the profes ȱ ȱ ȱ ȱ ȱ ȱ ŘŖŗŘȱ ȱ ȱ ȱ ȱ ȱ Nov. 1. Ȉ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǰȄȱ ȱ ȱ ȱ ȱ ȱ ǰȱ ǯȱȃ ȱŗşśŝǰȱ ȱ ȱ ȱ ȱ ȱ £ ȱ ȱ ȱ ¡ ¢ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ǯȄ ǯȱ ȱǻ ¢Ǽȱ Ĵǰȱ ǰȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ¢ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ǰȱ ȱ ȱ ě ȱ ȱ ȱ ę ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ Ĵȱ ȱ ȱ ȱŗşşŘȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱȱ ȱ ȱ ȱ ȱ ȱ ȱ Ĵȱ ȱ ¢ǰȱ ǰȱ ȱ Ĝ ȱ ȱ ȱ ȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ

ȱ Ĵǰȱ ǰȱ ȱ ȱŘŖŗŘȱ Ȃ ȱ ȱ ȱ ę ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ǯȱ Ĵȱ ȱ ȱ ȱǭȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¡ȱ ¢ȱ ȱ ȱ ȱ ǯȱȱ Ĵȱ ȱ ȱ ȱ ȱ Ȃ ȱ ȱ ȱ ¢ȱ Ĵ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¡ ȱ ǯȱ

ȱ ȱ ȱ ȱ ȱ ¡ȱ Ĵ ȱ ȱ ȱ ǯ ǯȱ ȱ ȱ ǯȱ

ȱ ǰȱ ǰȱ ȱ ȱ

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S SCACPA award recipients (from left): Kathy Scott and Don Mobley, Scott & Company, LLC, accepting the Service to the Profession Award, which was bestowed posthumously to N. Randolph (Randy) Scott; Leslie Johnson-Quick, recipient of the 2012 Public Service Award; Janice Fergusson, Outstanding Accounting Educator; Jason Sweatt, recipient of the 2012 President’s Award; and Zoe Davis, with the Coastal Chapter, accepting on behalf of Lyndall Dantzler, Outstanding CPA in Business and Industry and Young CPA Award recipient Crystal McGuire. . ȱ ȱ . ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ĝ ȱ ȱ ȱ ȱ ǯȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱŘśȱ¢ ȱ ȱ ¡ ȱ ȱ ¢ǯȱȱȱ

¢ ȱ ǰȱ ǰȱ ř ǰȱ ǰȱ ȱ ȱ ȱYoung ȱ ǯȱȱ ȱ ȱ £ ȱ ȱ¢ ȱ ȱ ȱ ¢ ȱ ¡ ȱ ȱ ȱ ȱ ȱ ¢ǰȱ ȱ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ¢ǰȱ ȱ ȱ ȱ ¢ȱ ȱ Ȃ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ¢ǯȱ ¢ ȱ ĵ ǰȱ ǰȱ ȱ ȱ ǰȱ ǯǰȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ǯȱ ĵ ȱ

ȱ £ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ ȱ ȱę ȱ Ĝ ȱ ȱ ȱ ǰȱ ĵ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ ǰȱ ȱ ȱ ȱ ȱ ȱę ȱ ȱ ȱ ȱ ȱ ȱ ¢ǯȱȱ The ŘŖŗŘȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ȭ ǰȱ ǰȱ ȱ ǰȱ ǰȱ ǰȱ ȱǭȱ ȱ ȱ ¢ ȱ ǯȱȱ ȱ ȱ £ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ę ȱ ȱ ȱ ȱ ȱ ¢ǯȱ Ȭ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ǰȱ ǯ ǯȱ ȱ ȱ ȱ ǰȱ ȱ ȱ ȱ ě ȱ ¢ȱ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ Ĵ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ Ĵ ǯȱ

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Tax Highlights

Tax Highlights for 2012 and Beyond

By K. Todd Dailey, CPA, CVA; Catherine W. Perrenoud, CPA; and Betsy Roof, CPA

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ǰȱ ȱę ¢ȱ ȱ ȱ tax legislation to address the expiring 2001 and 2003 Bush-era tax cuts and certain other tax provisions for 2012 and 2013. At the last possible moment, ȱ ȱ ȱ Ȭ ȱȈę ȱ ěȱ ǰȈȱ ȱ ȱ ȱ ȱ ǯȱ ȱ ment, called The American Taxpayer Relief Act of 2012, addresses several expired or expiring individual and business tax provisions, including the much-anticipated impact on individual income tax rates. The new law ȱ ǰȱ ǰȱ ȱ ȱ ę ȱ process for any tax reform legislation in 2013. It is unclear how the permanent extension of certain individual income tax rates will impact comprehensive tax legislation going forward.

Until that time, this article will focus on changes for 2012 and 2013, includ-

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ȱ ȱ ę ȱ ȱ ȱ individuals, the Patient Protection ȱ ě ȱ ȱ ǰȱ ȱ ness tax provisions.

Individual Income Tax Considerations Individual Income Tax For 2012 and Beyond For tax year 2012, personal exemptions and standard deductions will ȱ ȱ ¡ȱ ȱ ȱ ȱ ȱ ȱ Ě ǯȱȱ ȱŘŖŗŘǰȱ ȱ ȱ ȱ itemized deductions phase out, regardless of income. The full amount of itemized deductions and personal exemptions are allowed.

Certain other items increased or adjusted for 2012 include: • Annual deductible amounts for Medical Savings Accounts increase.

Ȋȱ ȱ ȱ ȱ ȱ ȱ ing a maximum of $2,500 deduction for interest paid on student ȱǻ ȱ ȱ ȱę ȱ jointly taxpayers, but stays the same for single taxpayers.) Ȋȱ ȱ ¡ȱ ȱ Ȭ ping Transfer Tax (GST) exemptions increase to $5,120,000.

The annual exclusion for gifts remains at $13,000. ȱ ǰȱ ȱ ȱę ¢ȱ addressed the Alternative Minimum Tax (AMT) exemption amount. After years of adjustments, creating what many refer to as the "AMT patch", we now have a permanent increase on those exemption levels and an ȱ ȱ ȱ Ě ȱ ȱ¢ ȱ beginning after 2012. The new Act increases the exemption to $50,600 for single taxpayers and $78,750 for

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Without the new legislation, individual income tax rates on all groups would have increased, taxpayer-friendly capital gain and dividend income tax treatment would have disappeared, and the estate tax would have reverted to 55 percent. “˜’—Â?ČąÄ™Â•ÂŽÂ›ÂœÇŻČąČą Â˜Â›ÂŽČąÂ?Â‘ÂŠÂ—ČąĹ˜Ĺ?ČąÂ–Â’Â•Â•Â’Â˜Â—Čą American households were projected to be subject to the AMT for the 2012 tax reporting period if no agreement was reached to provide a temporary increase or patch in the AMT exŽ–™Â?Â’Â˜Â—ČąÂŠÂ–Â˜ÂžÂ—Â?ÇŻČą ČąÂ˜ÄœÂŒÂ’ÂŠÂ•ÂœČąÂŽÂ&#x;Ž—ȹ cautioned that the processing of 2012 income tax returns could be delayed Â’Â?ȹŠȹ•ŠÂ?Žȹ•Š–ŽȹÂ?ÂžÂŒÂ”ČąÂœÂŽÂœÂœÂ’Â˜Â—ČąÂ?Â˜Â˜Â”ČąÂŠÂŒÂ?Â’Â˜Â—Čą to add the patch.

Without the new legislation, individual income tax rates on all groups would have increased, taxpayerfriendly capital gain and dividend income tax treatment would have disappeared, and the estate tax would have reverted to 55 percent. Under the Act, individual income tax rates will include a top rate of 39.6 percent for ordinary income, along with a top rate of 20 percent for capital gains Š—Â?ȹšžŠ•’ęŽÂ?ČąÂ?Â’Â&#x;Â’Â?Ž—Â?ČąÂ’Â—ÂŒÂ˜Â–ÂŽČąÂ?Â˜Â›Čą those individuals with incomes in ÂŽÂĄÂŒÂŽÂœÂœČąÂ˜Â?ȹǞŚŖŖǰŖŖŖȹŠ—Â?ČąÂ“Â˜Â’Â—Â?ČąÄ™Â•ÂŽÂ›ÂœČąÂ Â’Â?‘ȹ income over $450,000. Under the 2010 health care law, a separate 3.8 percent Medicare net investment income Â?ÂŠÂĄČąÂ’ÂœČąÂŽÄ›ÂŽÂŒÂ?Â’Â&#x;ÂŽČą ÂŠÂ—ÇŻČąĹ˜Ç°ČąĹ˜Ĺ–Ĺ—Ĺ™ČąÂ?Â˜Â›ČąÂ?Â‘Â˜ÂœÂŽČą with incomes in excess of $200,000 for single taxpayers and $250,000 for “˜’—Â?ČąÄ™Â•ÂŽÂ›ÂœÇŻČą ‘Žȹ ÂŒÂ?ČąÂ?’œŒ˜—Â?Â’Â—ÂžÂŽÂœČąÂ?‘Žȹ 2 percent point reduction in social security tax withholding that expired at the end of 2012, resulting in lower Â?ÂŠÂ”ÂŽČŹÂ‘Â˜Â–ÂŽČąÂ™ÂŠÂ˘ČąÂ?Â˜Â›ČąÂ–Â˜ÂœÂ?Čą Â–ÂŽÂ›Â’ÂŒÂŠÂ—ÂœÇŻ In addition to addressing the expiration of 2001 and 2003 income tax rates, the Act includes a permanent estate tax rate of 40 percent that will apply after Dec. 31, 2012 on estates in excess of $5,120,000 (indexed an-

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—žŠ••¢ȹÂ?Â˜Â›ČąÂ’Â—ÄšÂŠÂ?Â’Â˜Â—ÇźÇŻČąČą ‘Žȹ—Ž ȹ›ŠÂ?ÂŽČą represents a compromise between the Ĺ™Ĺ›ČąÂ™ÂŽÂ›ÂŒÂŽÂ—Â?ȹ›ŠÂ?ÂŽČąÂ?‘ŠÂ?ČąÂ‘ÂŠÂœČąÂ‹ÂŽÂŽÂ—ČąÂ’Â—ČąÂŽÄ›ÂŽÂŒÂ?Čą since 2010 and the Obama administration's plan to return to a higher estate tax rate of 45 percent on estates in excess of $3.5 million. Under prior law, the rate would have reverted to pre-2001 levels with a 55 percent tax rate and an estate tax exemption of $1 million.

Other expired individual provisions given new life in the 2012 Act include the federal tax deduction for state sales tax, a charitable deduction for IRAs, an expanded child tax credit, earned income tax credit, and college tuition tax credit.

Reporting Income from Foreign Investments The IRS is increasingly focused on the proper recognition and reporting of foreign income on the part of U.S. individuals and companies. As ÂœÂžÂŒÂ‘Ç°ČąÂœÂ’Â?—’ęŒŠ—Â?ȹ™Ž—Š•Â?Â’ÂŽÂœČąÂŠÂ›ÂŽČąÂ˜Â?Â?Ž—ȹ ’–™˜œŽÂ?ȹ’Â?ČąÂ?Â‘ÂŽÂœÂŽČąÂ›ÂŽÂ™Â˜Â›Â?’—Â?ȹ›Žšž’›Žments are not met each year. There are two common forms that must be used to disclose the holdings of a U.S. taxpayer in foreign investments, Form TD F 90-22.1 Report of Foreign Š—”ȹŠ—Â?Čą Â’Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•Čą ŒŒ˜ž—Â?ÂœČąÇť ǟȹ Š—Â?Čą Â˜Â›Â–ČąĹžĹ&#x;řŞȹ Â?ŠÂ?Ž–Ž—Â?ČąÂ˜Â?Čą ™ŽŒ’ęŽÂ?Čą Foreign Financial Assets. ‘Žȹ ČąÂ’ÂœČąÂ›ÂŽÂšÂžÂ’Â›ÂŽÂ?ȹ’Â?ČąÂ˘Â˜ÂžČąÂ‘ÂŠÂ&#x;ÂŽČą ÂŠČąÄ™Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•ČąÂ’Â—Â?Ž›ŽœÂ?ČąÂ’Â—ČąÂ˜Â›ČąÂœÂ’Â?—ŠÂ?ž›Žȹ ŠžÂ?‘˜›’Â?Â˘ČąÂ˜Â&#x;Ž›ȹÂ?˜›Ž’Â?Â—ČąÄ™Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•ČąÂŠÂŒcounts with aggregate balances in excess of $100,000. No tax is due with Â?Â‘Â’ÂœČąÂ?Â˜Â›Â–Ç°ČąÂ‹ÂžÂ?ČąÂ?‘ŽȹÂ?Â˜Â›Â–ČąÂ’ÂœČąÂ›ÂŽÂšÂžÂ’Â›ÂŽÂ?Čą Â?Â˜ČąÂ‹ÂŽČąÄ™Â•ÂŽÂ?ȹŠ——žŠ••¢ȹŠ—Â?ČąÂ–ÂžÂœÂ?ČąÂœÂ‘Â˜Â Čą the maximum balance in the foreign

Ä™Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•ČąÂŠÂŒÂŒÂ˜ÂžÂ—Â?ÂœÇŻČą ‘ŽȹÂ?Žę—’Â?Â’Â˜Â—ČąÂ˜Â?Čą a foreign account for this purpose is very broad and many investments that may not seem as though they œ‘˜ž•Â?ČąÂ‹ÂŽČąÂ›ÂŽÂ™Â˜Â›Â?ÂŽÂ?ȹŠ›Žȹ›Žšž’›ŽÂ?ČąÂ?Â˜ČąÂ‹ÂŽČą disclosed. Â˜Â›Â–ČąĹžĹ&#x;Ĺ™ĹžČąÂ’ÂœČąÂŠČąÂ›ÂŽÂšÂžÂ’Â›ÂŽÂ–ÂŽÂ—Â?ČąÂ˜Â?ČąÂ?‘Žȹ Foreign Account Tax Compliance Act Çť ÇźČąÂ˜Ä›ÂœÂ‘Â˜Â›ÂŽČąÂŠÂ—Â?Â’ČŹÂ?Š¥ȹŽÂ&#x;ÂŠÂœÂ’Â˜Â—Čą provisions that arose out of the 2010 Hiring Incentives to Restore Employment Act (HIRE). Taxpayers must ꕎȹ Â˜Â›Â–ČąĹžĹ&#x;řŞȹ ’Â?‘ȹÂ?‘Ž’›ȹ’—Â?Â’Â&#x;Â’Â?žŠ•ȹ ›ŽÂ?ž›—ȹ’Â?ČąÂ?Â‘ÂŽÂ˘ČąÂ‘Â˜Â•Â?ČąÂ?˜›Ž’Â?Â—ČąÄ™Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•Čą assets that exceed certain thresholds.

These thresholds vary based upon Â?‘Žȹ’—Â?Â’Â&#x;Â’Â?ÂžÂŠÂ•Č‡ÂœČąÂ›ÂŽÂœÂ’Â?ÂŽÂ—ÂŒÂ˘ČąÂŠÂ—Â?ȹꕒ—Â?Čą status, but may be as low as $50,000 as of the end of the year, or $75,000 at any time during the tax year. The Â?Žę—’Â?Â’Â˜Â—ČąÂ˜Â?ČąÂ?˜›Ž’Â?Â—ČąÄ™Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•ČąÂŠÂœÂœÂŽÂ?ČąÂ’ÂœČą broader even than that of the FBAR, and may include assets such as forÂŽÂ’Â?Â—ČąÂ›ÂŽÂŠÂ•ČąÂŽÂœÂ?ŠÂ?ÂŽÇ°ČąÂœÂ?Â˜ÂŒÂ”ÂœÇ°ČąÂ‘ÂŽÂ?Â?ÂŽČąÂ?ž—Â?ÂœÇ°Čą and pensions. ‘Žȹ›Žšž’›Ž–Ž—Â?ČąÂ?Â˜ČąÄ™Â•ÂŽČą Â˜Â›Â–ČąĹžĹ&#x;řŞȹ is separate and distinct from the ˜‹•’Â?ŠÂ?Â’Â˜Â—ČąÂ?Â˜ČąÄ™Â•ÂŽČąÂ?‘Žȹ ǯȹȹ ‘Žȹ ÂŒÂ˜Â—ÂœÂŽÂšÂžÂŽÂ—ÂŒÂŽÂœČąÂ˜Â?ČąÂ—Â˜Â?ČąÂ™Â›Â˜Â™ÂŽÂ›Â•Â˘ČąÂŒÂ˜Â–plying with the FBAR and FACTA ›Ž™˜›Â?’—Â?ȹ›Žšž’›Ž–Ž—Â?ÂœČąÂŠÂ›ÂŽČąÂ‘ÂŽÂ?Â?¢ȹŠ—Â?Čą could include both civil and criminal penalties.

The Patient Protection and Affordable Care Act ‘Žȹ ŠÂ?’Ž—Â?Čą ›˜Â?ÂŽÂŒÂ?Â’Â˜Â—ČąÂŠÂ—Â?Čą 옛Â?Š‹•Žȹ Care Act includes a variety of items to be implemented over the coming years. One of the Act’s largest tax implementations for 2013 is related to the increased Medicare Tax. řǯŞȹ Ž›ŒŽ—Â?Čą ÂŽÂ?Â’ÂŒÂŠÂ›ÂŽČą ÂŠÂĄČąÂ˜Â—Čą Unearned Income The Act introduces a new 3.8 percent Medicare tax on unearned income.

The IRS has released proposed regulations that detail the implementation of this new tax. Single taxpayers

South Carolina CPA Report

23

Tax Highlights with an adjusted gross income over ÇžĹ˜Ĺ–Ĺ–Ç°Ĺ–Ĺ–Ĺ–ČąÂ˜Â›ČąÂ–ÂŠÂ›Â›Â’ÂŽÂ?ȹꕒ—Â?ČąÂ“Â˜Â’Â—Â?•¢ȹÂ?Š¥payers with an adjusted gross income over $250,000 may be subject to the additional 3.8 percent tax. The tax is computed by multiplying the lesser of adjusted gross income less the threshold or net investment income times 3.8 percent. Â‘ÂŽČąÂ™Â›Â˜Â™Â˜ÂœÂŽÂ?ȹ›ŽÂ?ž•ŠÂ?Â’Â˜Â—ÂœČąÂ?ÂŽÄ™Â—ÂŽČąČƒÂ—ÂŽÂ?Čą investment incomeâ€? as passive activity income, interest, dividends, net gains (unless such are in the course of a business), rents, royalties, etc.

There are exceptions to the unearned Â’Â—ÂŒÂ˜Â–ÂŽČąÂ?Žę—’Â?Â’Â˜Â—Ç˛ČąÂ˜Â—ÂŽČąÂ˜Â?ČąÂ?Â‘ÂŽČąÂŽÂĄÂŒÂŽÂ™tions is retirement distributions. This may be a planning area for taxpayers going forward.

Example 1: Â˜Â‹ČąÂŠÂ—Â?Čą ÂŠÂ›Â˘ČąÄ™Â•ÂŽČąÂŠČąÂ“Â˜Â’Â—Â?Čą tax return which reports an adjusted gross income of $300,000. They have passive business income of $40,000, interest of $20,000 and capital gains Â?Â›Â˜Â–ČąÂœÂ?Â˜ÂŒÂ”ČąÂœÂŠÂ•ÂŽÂœČąÂ˜Â?ȹǞŗŖǰŖŖŖǯȹȹ ‘Ž’›ȹ—ŽÂ?Čą investment income is $70,000. The income over the threshold of $250,000 is $50,000; therefore the 3.8 percent tax is applied to the $50,000 since it is the lesser of the two. This will generate an additional $1,990 of federal tax for their 2013 Form 1040.

Example 2: Assume the same facts as in Example 1 except there are passive losses of $25,000. The net investment income totals $45,000. The income over the threshold of $250,000 is $50,000; therefore the 3.8 percent tax is applied to the $45,000 since it is the lesser of the two. This will generate an additional $1,710 of federal tax for their 2013 Form 1040. ÇŻĹ&#x;Čą Ž›ŒŽ—Â?Čą ÂŽÂ?Â’ÂŒÂŠÂ›ÂŽČą ÂŠÂĄČąÂ˜Â—Čą Š›—ŽÂ?Čą Income The Act also introduces a new .9 percent Medicare tax on earned income. This tax will be assessed on

24

South Carolina CPA Report

wages or self employment income ˜Â&#x;ÂŽÂ›ČąÇžĹ˜Ĺ–Ĺ–Ç°Ĺ–Ĺ–Ĺ–ČąÂ?Â˜Â›ČąÂœÂ’Â—Â?•Žȹꕒ—Â?ČąÂ?ÂŠÂĄÂ™ÂŠÂ˘ÂŽÂ›ÂœČąÂŠÂ—Â?ČąÇžĹ˜Ĺ›Ĺ–Ç°Ĺ–Ĺ–Ĺ–ČąÂ?Â˜Â›ČąÂ–ÂŠÂ›Â›Â’ÂŽÂ?ȹꕒ—Â?Čą jointly taxpayers. Employers are rešž’›ŽÂ?ČąÂ?Â˜ČąÂ Â’Â?‘‘˜•Â?ČąÂ?‘ŽȹǯĹ&#x;ČąÂ™ÂŽÂ›ÂŒÂŽÂ—Â?ČąÂ˜Â—Čą any employee earning over $200,000.

For self employed individuals the additional tax will not be eligible for the Form 1040 page one deduction for 50 percent of the self-employment tax. ¥Š–™•Žȹřǹ Bob has W-2 income of $85,000. Mary has W-2 income of $175,000. Neither Bob nor Mary will have the additional .9 percent withheld by their employers since the W-2’s are under $200,000. However their joint earned income is $260,000 and therefore .9 percent will be owed on the $10,000 over the $250,000 threshold.

Example 4: Bob has W-2 income of $225,000. Mary has no income.

Bob’s employer will withhold the additional .9 percent tax on $25,000.

However since the earned income on Â?Â‘ÂŽČąÂ“Â˜Â’Â—Â?•¢ȹꕎÂ?ČąÂ?Š¥ȹ›ŽÂ?ÂžÂ›Â—ČąÂ’ÂœČąÂžÂ—Â?Ž›ȹ the $250,000 threshold Bob and Mary will receive a credit for this overpayment.

In this part of the article we transition to ways to reduce taxes focus’—Â?ČąÂ˜Â—ČąÂŠÂŒÂšÂžÂ’ÂœÂ’Â?Â’Â˜Â—ČąÂ˜Â?ČąÂ‹ÂžÂœÂ’Â—ÂŽÂœÂœČąÄ™ÂĄÂŽÂ?Čą assets and associated depreciation rules.

BUSINESS CONSIDERATIONS RELATED TO DEPRECIATION: A general theme still existed during 2012 for business owners to reinvest in their companies. Invest’—Â?ȹ’—ȹšžŠ•’Â?¢’—Â?ȹę¥ŽÂ?ČąÂŠÂœÂœÂŽÂ?ÂœČąÂŠÂ•Â•Â˜Â ÂœČą depreciation of those assets reducing income tax exposure while increas’—Â?ČąÂŒÂŠÂœÂ‘ČąÄšÂ˜Â ÇŻČą —ȹŠÂ?Â?Â’Â?Â’Â˜Â—Ç°ČąÂ’Â?ČąÂŠÂ•Â•Â˜Â ÂœČąÂŠČą company to possibly produce more ÂœÂŠÂ•ÂŽÂœČąÂ˜Â›ČąÂ’Â—ÂŒÂ›ÂŽÂŠÂœÂŽČąÂŽÄœÂŒÂ’ÂŽÂ—ÂŒÂ’ÂŽÂœÇŻČą Š¥ȹ•Š ȹ involving depreciating assets has been changing since 2001. For 2011, a

ÂŒÂ˜Â–Â™ÂŠÂ—Â˘ČąÂŒÂ˜ÂžÂ•Â?ČąÂ™ÂžÂ›ÂŒÂ‘ÂŠÂœÂŽČąÄ™ÂĄÂŽÂ?ČąÂŠÂœÂœÂŽÂ?ÂœČą up to $2,000,000 before phasing out under IRC 179 limits of $500,000 and ČąĹ—ĹœĹžÇťÂ”ÇźČąÂŠÂ•Â•Â˜Â ÂŽÂ?ČąÂ?Â˜Â›ČąĹ—Ĺ–Ĺ–ČąÂ™ÂŽÂ›ÂŒÂŽÂ—Â?Čą ÂŠÂœČąÄ™Â›ÂœÂ?ČąÂ˘ÂŽÂŠÂ›ČąÂ‹Â˜Â—ÂžÂœČąÂ?Ž™›ŽŒ’ŠÂ?Â’Â˜Â—Čą without phase-outs. For 2012, the rules changed as we learned through part of the 2010 Tax Relief Act. The ÂŒÂ?ČąÂœÂ™ÂŽÂŒÂ’Ä™ÂŽÂ?ČąÂ?‘ŠÂ?Čą ȹŗĹ?Ĺ&#x;ČąÂ?ÂŽÂ?žŒÂ?Â’Â˜Â—Čą would be set at $125,000 but indexed Â?Â˜Â›ČąÂ’Â—ÄšÂŠÂ?Â’Â˜Â—ČąÂ?Â˜ČąÇžĹ—Ĺ™Ĺ&#x;ǰŖŖŖȹ ’Â?Â‘ČąÂ™Â‘ÂŠÂœÂŽČŹ outs on purchases beginning at $560,000 investment limit. We further •ŽŠ›—ŽÂ?ČąÂ?‘ŠÂ?ČąÄ™Â›ÂœÂ?ČąÂ˘ÂŽÂŠÂ›ČąÂ‹Â˜Â—ÂžÂœČąÂ?Ž™›Žciation would be available at a 50 percent level instead of 100 percent.

With the passing of the 2012 American Taxpayer Relief Act we learned that the 2012 and 2013 IRC 179 limits would follow the same limits in place for 2011. First year bonus depreciation would be available for 2013 instead of expiring at the end of Ĺ˜Ĺ–Ĺ—Ĺ˜ÇŻČą Ž™›ŽŒ’ŠÂ?Â’Â˜Â—ČąÂ•ÂŠÂ ÂœČąÂŠÂ•Â˜Â—ÂŽČąÂ”ÂŽÂŽÂ™Čą business owners focusing on their capital expense budgets and how to plan accordingly for tax planning, ÂŒÂŠÂœÂ‘ČąÄšÂ˜Â ČąÂ–ÂŠÂ—ÂŠÂ?Ž–Ž—Â?ȹŠ—Â?ȹ›Ž’—vesting in their business operations.

If these laws weren’t confusing enough, states normally follow different rules than federal law related Â?Â˜ČąÂ’Â–Â–ÂŽÂ?’ŠÂ?ÂŽČąÂŽÂĄÂ™ÂŽÂ—ÂœÂ’Â—Â?ČąÂ˜Â?ȹę¥ŽÂ?ČąÂŠÂœsets and bonus depreciation, which means additional planning must be considered based on state tax law rules.

As we are aware tax law in the United States is ever changing. Educating ourselves so we can ÂŽÂ?žŒŠÂ?ÂŽČąÂ˜Â?Â‘ÂŽÂ›ÂœČąÂ’ÂœČąÂŠČąÂ”ÂŽÂ˘Čą to everyone’s success.

(888) 557-4814 | www.scacpa.org

¢ȱ ¢ ȱ ȱę ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱŘŖŗŘȱ ȱŘŖŗřȱ ¡ȱ ȱ ȱ ȱ ȱ ǯȱ ȱ ¡ȱ ȱ ȱ ȱ ȱ ě ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ĵ ȱ were used. At the reading of this ȱ ȱ ȱ ȱ ¡ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ

K. Todd Dailey, CPA, CVA, is a partner with Derrick, Stubbs & Stith, L.L.P. A SCACPA member since 1993, he serves on the Board of Accountancy Autonomy Task Force, co-chair of SCACPA’s Legislative and Advocacy Committee and previously served as a member of the Taxation Committee, the State and Local Taxation Task Force and a past chair of the Central Chapter.

Catherine W. Perrenoud, CPA, is tax director at PricewaterhouseCoopers LLP in Spartanburg. A SCACPA member since 1999, she is a past chair of the Foothills Chapter.

Betsy Roof, CPA, is a senior tax specialist with Derrick, Stubbs & Stith, L.L.P. in Columbia and a SCACPA member since 2006.

(888) 557-4814 | www.scacpa.org

Working with Clients Post-Data Breach ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǰȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ę ȱ ȱ ȱ ȱ ȱ¢ ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ¢ ȱ ¢ȱ ȱ ȱ ȱ ȱ ¢ȱ ǯȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱǻ Ǽȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯ Ȋȱȱȱ ǰȱ ȇ ȱ ȱ ȱ ȇ ȱ ȱ¢ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ Ĵ ȱ ȱ ȱ ȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ Ȋȱȱȱ ȱ¢ ȱę ȱ ȱ ȱ ȱ Ȭ ȱ ȱ ȱ ȱ¢ ȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ȭ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ Ȭ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ȃ ȱ ǯȱȱȱ Ȋȱȱȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ Ȭ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ ȱ Ȭ ę ȱ ȱ ȱ ¢ ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ Ȭę ȱ ȱ ȱ ȱ ȱ Ȭ ȱ ¢ȱ ȱ ȱ ȱ ȱ ¢ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ǯȱ Ȋȱȱȱ ȱ ¢ ȱ ¢ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ¢ ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ȱ ȱ ¢ ȱ ȱ ȱ ȱ ¢ ¢ȱ ȱ ȱ ȱ ǯȱ ȱ ȇ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ ǯȱ Ȋȱȱȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ¡ ȱ ȱ ȱ

ȇ ȱ ȱ Dzȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ ȱ ȱ ¢ȱ ȱ ȱ ę ¢ȱ ǯȱȱȱ Ȋȱȱȱ ȱ ȱ ȱ ȱŗŚŖřşȱ ǻ ¢ȱ ȱ Ĝ Ǽȱ ¢ȱ ȱ ǯȱ ¢ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¡ ¢ ȇ ȱ ¢ ȱ ȱ ¢ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱę ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȇ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ¡ ¢ ȇ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¡ ¢ ǰȱ ȱ ȱ ȱ ȱ ȱ ¢ ȱ ȱ ȱę ȱ ȱ ȱ ȱ ȱ ǯȱ Ȋȱȱȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ȭ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ¢ ǯȱȱȱ Ȋȱȱȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǯ ǯ Ȧ ǯ ȱ ȱ ȱ ȱ ȱ ȱ ¡ȱ ǰȱ ¡ ¢ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ǯȱȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ǯȱ ¢ȱ ǰȱ ȱ ȱ Ȭ ȱ ȱ ȱ Ȭ ¢ȱ ȱ ȱ ȱ ǰȱ ȱ ǯȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ

¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ ǰȱ ȱ ǰȱ ȱ ¡ ȱ ȱ ȱ ȱ ȱ ǯȱ

South Carolina CPA Report

25

Tax Highlights

More to Think About & Manage During Tax Busy Season

by Jason Sweatt, CPA SCACPA member since 1997

T

he environment in which we operate as tax preparers continues to evolve, and we are forced to evolve with it. The ÂŽÂ?’œ•ŠÂ?Â’Â&#x;ŽȹŠ—Â?Čą Â?Â&#x;Â˜ÂŒÂŠÂŒÂ˘Čą Â˜Â–Â–Â’Ä´ÂŽÂŽČą Â’ÂœČąÂ Â˜Â›Â”Â’Â—Â?ČąÂ?Â˜ČąÂ”ÂŽÂŽÂ™ČąÂ˜ÂžÂ›ČąÂŽÂ˘ÂŽÂœČąÂ˜Â™ÂŽÂ—ČąÂ?Â˜Čą issues that impact many of us and to educate legislators regarding the impact on our profession and the public. Some new or unusual issues that we are discussing, monitoring, or providing education on currently include:

1

ŠÂ?ÂŽČą Š ȹ ‘Š—Â?ÂŽÂœÇąČą Similar to the thought process on South Carolina conformity with the Internal ÂŽÂ&#x;Ž—žŽȹ ˜Â?ÂŽČąÂ?‘ŠÂ?ČąÂ ÂŽČąÂ Â˜Â›Â”ČąÂ˜Â—Čą Š——žŠ••¢ǰȹÂ?‘Žȹ™ŠĴŽ›—ȹÂ?‘ŠÂ?ČąÂ?‘ŽȹÂ?ÂŽÂ?Ž›Š•ȹ Â?ÂŠÂĄČąÂ•ÂŠÂ ČąÂŒÂ‘ÂŠÂ—Â?ÂŽÂœČąÂŠÂ›ÂŽČąÂ?ŽĴ’—Â?ȹ•ŠÂ?Ž›ȹŠ—Â?Čą later in the year are troublesome. A good example is the negotiations Š›˜ž—Â?ČąÂ?Â‘ÂŽČąÄ™ÂœÂŒÂŠÂ•ČąÂŒÂ•Â’Ä›ÇŻČąČąČą Â?ČąÂŠÂ—Â˘ČąÂ˜Â?ČąÂ?‘Žȹ Œ‘Š—Â?ÂŽÂœČąÂŽÂ—Â?ČąÂžÂ™ČąÂŠÄ›ÂŽÂŒÂ?’—Â?ČąĹ˜Ĺ–Ĺ—Ĺ˜ČąÂ?Š¥ȹ return reporting, and the changes are announced this late, the software ÂŒÂ˜Â–Â™ÂŠÂ—Â’ÂŽÂœČąÂ Â’Â•Â•ČąÂ‹ÂŽČąÂ?Ž•Š¢ŽÂ?ȹ’—ȹÂ?ŽĴ’—Â?Čą Â?‘Žȹꗊ•ȹÂ&#x;ÂŽÂ›ÂœÂ’Â˜Â—ÂœČąÂ˜Â?ČąÂ?Â‘ÂŽČąÂœÂ˜Â?Â? Š›Žȹ released, compressing busy season with the related stress added to Â™Â›ÂŽÂ™ÂŠÂ›ÂŽÂ›ÂœÇŻČąČą —˜Â?Â‘ÂŽÂ›ČąÂœÂ’Â?ÂŽČŹÂŽÄ›ÂŽÂŒÂ?ČąÂ’ÂœČą a delay in the IRS and states being able to complete the processes Â?Â˜ČąÂ‹ÂŽÂ’Â—Â?ȹ›ŽŠÂ?¢ȹÂ?Â˜ČąÂŠÂŒÂŒÂŽÂ™Â?ȹŽȏꕒ—Â?Ç°Čą again compressing busy season and Â?›’Â&#x;’—Â?ČąÂžÂ™ČąÂŒÂ˜ÂœÂ?ÂœČąÂ?Â˜Â›ČąÄ™Â›Â–ÂœÇŻČąČąČą

2

›Ž™Š›Ž›ȹ Š¥ȹ Â?Ž—Â?’ęŒŠÂ?Â’Â˜Â—Čą ÂžÂ–Â‹ÂŽÂ›ČąÇťČˆ ÂœČˆÇźČą Š’—Â?ÂŽÂ—ÂŠÂ—ÂŒÂŽÇąČą The IRS is beginning to contact preparers with expired PTINs. Some may have let PTINs expire for legitimate reasons (retirement, etc.),

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but some will be dealing with time-consuming and costly reinstatement, if they have accidentally let PTINs expire. Note that the IRS does not currently have an easy way to ČˆÂœÂ”Â’Â™ČˆČąÂŠČąÂ˘ÂŽÂŠÂ›ČąÂ Â’Â?‘ȹŠȹ ǯȹȹ Â?ČąÂ˘Â˜ÂžČą legitimately have a year that you did not need the number, you will need to renew for each year in succession, and then apply for a refund for the years that the PTIN was not needed.

Ĺ™

ÂŽČŹ ’•’—Â?Čą Š—Â?ŠÂ?ÂŽÂœÇąČą States are continuing to ramp up –Š—Â?ŠÂ?ÂŽÂ?ȹŽȏꕒ—Â?ČąÂ˜Â—ČąÄ™Â›Â–ÂœÇŻČąČą Â˜Â–ÂŽČą are mandating other items such as extensions or information returns Â?Â˜ČąÂ‹ÂŽČąÂŽČŹÄ™Â•ÂŽÂ?ǯȹȹ —Žȹ’—Â?Ž›ŽœÂ?’—Â?Čą Â? ’œÂ?ČąÂ’ÂœČąÂ?‘ŠÂ?Čą ČąÂ›ÂŽÂšÂžÂ’Â›ÂŽÂœČąÂ?‘ŠÂ?Čą preparers initiate the e-payment of estimated payments for clients, if the preparer calculates or prepares the extension vouchers. We have not seen enforcement on this to-date.

However, it is critical that preparers –˜—’Â?Â˜Â›ČąÂ?‘Žȹ›Žšž’›Ž–Ž—Â?ÂœČąÂ’Â—ČąÂ?‘Žȹ jurisdictions in which they operate and comply when mandates exist.

4

Electronic Signatures: States are continuing to evolve on whether taxpayers or preparers may sign tax returns using electronic means. In most cases (but not in all states) a tax preparer may sign a return or extension electronically. However, in most cases, a taxpayer (including Â?Â˜Â›Čą ȹꕒ—Â?ÂœÇźČąÂ–ÂžÂœÂ?ČąÂ™Â‘Â˘ÂœÂ’ÂŒÂŠÂ•Â•Â˘ČąÂœÂ’Â?—ȹ Â?‘Žȹ›ŽÂ?ÂžÂ›Â—ČąÂ˜Â›ČąÂ˜Â?‘Ž›ȹꕒ—Â?ǯȹȹ ČąÂ—Â˜Â?Š‹•Žȹ exception is that a taxpayer may sign on an electronic signature pad in the presence of the preparer, but

generally may not use a stamp or other electronic means to sign.

As you encounter unusual situations during busy season, please email a short summary of the issues that are ’–™ŽÂ?’—Â?ČąÂ˘Â˜ÂžÂ›ČąÂŽÄœÂŒÂ’ÂŽÂ—ÂŒÂ˘ČąÂ?Â˜Čą Čą Čą ›’—ȹ ŠÂ?ŽȹŽ‘Š›Â? ’Œ”™ŠÂ?ÂŽČ“ scacpa.org, so that the appropriate ÂŒÂ˜Â–Â–Â’Ä´ÂŽÂŽČąÂ˜Â›ČąÂ?ÂŠÂœÂ”ČąÂ?Â˜Â›ÂŒÂŽČąÂŒÂŠÂ—ČąÂŽÂ&#x;Š•žŠÂ?ÂŽČą whether SCACPA can have an impact on the issue with the appropriate governmental entity or taxing authority. „ Jason Sweatt, CPA, is senior manager, tax quality and risk management for the global firm Ernst & Young in Greenville. He serves as co-chair of SCACPA’s Legislative and Advocacy Committee, a member of the Board of Accountancy Autonomy Task Force and is a board memberelect.

(888) 557-4814 | www.scacpa.org

Tax Highlights

SCACPA Members Meet With IRS, DOR Representatives

by Caroline Strobel, CPA SCACPA member since 1982

M

embers of SCACPA Tax Ĵ ȱ ȱ ȱ ȱ and DOR representatives on Oct. 25, 2012. The IRS presented in the morning and the DOR in the afternoon. Both meetings were very productive as a means of exchanging information between practitioners and the government tax enforcement agencies.

are having problems communicating with an agent you should contact their group manager. This could provide ȱ ě ȱ ȱ ȱ ȱ ȱ under audit, or help you with communication issues. There are more Ȭ ȱ ę ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱę ȱ ǯȱȱ ȱ ȱ CPA can get the information needed to the agent instead of the agent hav ȱ ȱ ȱ ȱę ȱ ȱ ȱ ǰȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ ȱ ȱ ¡ dited. The IRS is trying to get partner ȱ ȱ ȱ ȱ ȱę ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ 1040s. The new Group Manager is Alice Robinson and you can contact ȱ ȱ Ĵ ȱ ȱ ǯ

ȱ ǰȱ ȱ Ĝ ǰȱ ȱ that they had received 782 cases during the last year, approximately 50 cases from Columbia. Nestor said 80 percent of the cases receive conferenc ȱ ȱ ȱę ȱ ȱ ¢ ǯȱȱ ȱ average case is processed in approxi ¢ȱŘŗŖȱ ¢ ǯȱȱ ¢ȱ ȱ ȱ extensions on the statute of limitations ȱ Ĵȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱę ȱ ȱ tions and said there are currently nine groups in the region, each comprised some of the cases. of seven to 11 agents. The group’s goals include improved service to

Ĵ ȱ ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱ ȱ ȱ Ȧ Ȭ ¢ ȱę ȱ and enforcement of the law to ensure exam group. There has been a recent everyone meets their tax obligareorganization of the group and Florence and Myrtle Beach are now a part tions. A PowerPoint presentation on of the Wilmington area. There are ap- their Fresh Start plan can be accessed proximately 112 agents in South Caro- online at IRS.gov. Sheila Johnson is territory manager for the Collections lina. There are many new hires and Group. they have been trained well. If you

“There are more on-line classifications now that allow cases to get into the field sooner.

If a CPA can get the information needed to the agent instead of the agent having to get the file from the IRS, it is likely that the process can be expedited. “ George Adjetey reported for Collec ȱ ȱ ǯȱȱ ¢ȱ ȱ ing from three to two groups. Calls ȱ ȱ ¢ȱ ȱę ȱ ȱ ȱ 48 hours. All calls are returned on a ę Ȭ ǰȱę Ȭ ȱ ǯ ȱ ȱ ȱ ȱ ȱ Criminal Investigations Division.

Identity theft is the largest area of crime currently being reported. The incidence of identity theft is increasing and involves fraudulent refund claims as well as employment/income related issues. Currently, there is a three day turn-around time with the Department of Justice on whether to proceed with cases. There is an IRS ȱȃ ¢ȱ ȱ ȱ and Victim Assistance” that provides taxpayers and practitioners with useful information. Form 14039 – ¢ȱ ȱ Ĝ ȱ ȱ ȱ ȱ ȱ report identity theft.

Gwen Sonier reported for the Tax ¢ ȱ Ȃ ȱ Ĝ ȱ ȱ ȱřŞȱ percent of their inventory involves identity theft. There are also a number of preparer fraud issues. Late tax changes by Congress will impact IRS timeliness in adjusting to changes in ȱ ¡ȱ ȱ ȱ ȱ ȱ ¡ȱę ȱ season. Nina Olson remains taxpay ȱ ȱ ȱ ȱ ȱ ¢ȱ annual report to Congress, which is available on-line. continued on page 38

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South Carolina CPA Report

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Tax Highlights

AICPA National Tax Conference

by Charles M. Ayers, CPA SCACPA member since 1988

I

›ŽŒŽ—Â?•¢ȹŠĴŽ—Â?ÂŽÂ?ČąÂ?‘Žȹ Čą Â›ÂŠÂŒÂ”ČąÂ˜Â?Čą the AICPA National Tax Conference as the South Carolina repreœŽ—Â?ŠÂ?Â’Â&#x;Žǯȹȹ Â‘ÂŽČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›ÂœČąÂ?Â˜Â›ČąÂ?Â‘Â’ÂœČąÂ?Â›ÂŠÂŒÂ”Čą were the leaders of the IRS including Commissioner Douglas Shulman, National Taxpayer Advocate Nina Olson, and various division chiefs. The presentations included a period for Q&A and in many cases the CPAs in ŠĴŽ—Â?ÂŠÂ—ÂŒÂŽČąÂ ÂŽÂ›ÂŽČąÂŠÂ‹Â•ÂŽČąÂ?Â˜ČąÂœÂ‘ÂŠÂ›ÂŽČąÂ’Â—ÂœÂ’Â?‘Â?ÂœČą with the IRS representatives that may lead to improvements with the way the IRS does business.

Nina Olson, the national taxpayer advocate, shared many of the same concerns that CPAs have concerning IRS operations. She is concerned  ’Â?‘ȹÂ?‘ŽȹÂ?’–Žȹ’Â?ČąÂ?ÂŠÂ”ÂŽÂœČąÂ?Â˜ČąÂ?ÂŽÂ?ȹ’Â?Ž—Â?Â’Â?¢ȹ theft issues resolved and feels that the average of 180 days to resolution is too long. She also said that taxpayers who have been victims of identity theft should be able to get replacement PIN’s instantly with a phone call. Concerning taxpayers  ’Â?Â‘ČąÂ˜Ä›ÂœÂ‘Â˜Â›ÂŽČąÂŠÂŒÂŒÂ˜ÂžÂ—Â?ÂœČąÂŠÂ—Â?Čą Čą ›Ž™˜›Â?’—Â?ȹ›Žšž’›Ž–Ž—Â?ÂœÇ°ČąÂœÂ‘ÂŽČąÂ?ÂŽÂŽÂ•ÂœČąÂ?‘ŠÂ?Čą Â?‘Žȹ ČąÂœÂ‘Â˜ÂžÂ•Â?ČąÂ—Â˜Â?ČąČƒÂ‹ÂŽÂŠÂ?ČąÂ?‘Ž–ȹž™ȹŠ—Â?Čą terrorize themâ€? with broad sweeping

initiatives that tend to put everyone Â’Â—ČąÂ˜Â—ÂŽČąÂ‹Â˜ÂĄČąÂ›ÂŠÂ?‘Ž›ȹÂ?Â‘ÂŠÂ—ČąÂ•Â˜Â˜Â”Â’Â—Â?ȹŠÂ?ČąÂ?‘Žȹ facts and circumstances in each case. ’”Žȹ–Š—¢ȹ ÂœÇ°Čą Â•ÂœÂ˜Â—ČąÂ’ÂœČąÂŒÂ˜Â—ÂŒÂŽÂ›Â—ÂŽÂ?Čą  ’Â?‘ȹÂ?Â‘ÂŽČąÂ’Â—ÂŽÄœÂŒÂ’ÂŽÂ—ÂŒÂ’ÂŽÂœČąÂŠÂ—Â?ȹ’—Žšž’table treatment with correspondence ÂŽÂĄÂŠÂ–ÂœÇŻČą Â‘ÂŽČąÂ Â˜ÂžÂ•Â?ȹ•’”ŽȹÂ?Â˜ČąÂœÂŽÂŽČąÂ?Â‘ÂŽÂœÂŽČą cases assigned to one person who ÂŒÂŠÂ—ČąÂ™Â’ÂŒÂ”ČąÂžÂ™ČąÂ?Â‘ÂŽČąÂ™Â‘Â˜Â—ÂŽČąÂŠÂ—Â?ČąÂ?Š•”ȹÂ?Â˜ČąÂ?‘Žȹ taxpayer. She has been instrumental in helping implement a virtual resolution pilot program where taxpayers can sit in front of a computer in Š—ȹ ČąÂ˜ÄœÂŒÂŽČąÂŠÂ—Â?ȹ‘ŠÂ&#x;Žȹ•’Â&#x;Žȹ’—Â?Ž›ŠŒtion with an examiner. Other topics she touched on included tax reform, AMT reform, return preparer fraud, domestic partnerships, aggressive collections and IRS email capability.

Olson also said she is pushing her employees to not just push paper but to advocate for the taxpayers.

This includes using more taxpayer assistance orders.

partnerships. One comment he made that I found especially interesting was that not every partnership is set up to avoid taxes. While the payroll tax area has a high compliance rate, the areas that they see with the most Â™Â›Â˜Â‹Â•ÂŽÂ–ÂœČąÂŠÂ›ÂŽČąÂ?›’—Â?Žȹ‹Ž—ŽęÂ?ÂœÇ°ČąÂŽÂœÂ™ÂŽÂŒÂ’ÂŠÂ•Â•Â˘ČąÂ™ÂŽÂ›ÂœÂ˜Â—ÂŠÂ•ČąÂžÂœÂŽČąÂ˜Â?ČąÂŠČąÂ Â˜Â›Â”ČąÂ&#x;ÂŽÂ‘Â’ÂŒÂ•ÂŽÇŻČąČą Another area he discussed was return preparer visits. He feels that Â?Â‘ÂŽÂœÂŽČąÂ&#x;’œ’Â?ÂœČąÂŠÂ›ÂŽČąÂ‹ÂŽÂ—ÂŽÄ™ÂŒÂ’ÂŠÂ•ČąÂ‹ÂŽÂŒÂŠÂžÂœÂŽČą they help change behavior in the Œž››Ž—Â?ȹꕒ—Â?ČąÂœÂŽÂŠÂœÂ˜Â—ÇŻČą Â‘Â’ÂœČąÂ™ÂŠÂœÂ?ȹ¢ŽŠ›ȹ many of the visits had to do with EIC due diligence. During these visits the IRS is assessing penalties. From visits with 300 preparers, approximately 10,000 penalties were assessed. He also stressed that they are currently ’–™›˜Â&#x;’—Â?ČąÂ?Â‘ÂŽČąÂ˜Ä›ÂŽÂ›ČąÂ’Â—ČąÂŒÂ˜Â–Â™Â›Â˜Â–Â’ÂœÂŽČą ™›˜ŒŽÂ?ÂžÂ›ÂŽÂœČąÂŠÂ—Â?ČąÂ•Â˜Â˜Â”Â’Â—Â?ȹŠÂ?ČąÂ›ÂŽÂŠÂœÂ˜Â—able collection potential. He stated Â?‘ŠÂ?ČąÂŽÂŠÂŒÂ‘ČąÂ˜Ä›ÂŽÂ›ČąÂ’ÂœČąÂ Â˜Â›Â”ÂŽÂ?ČąÂ‹ÂŠÂœÂŽÂ?ČąÂ˜Â—ČąÂ’Â?ÂœČą particular facts and circumstances.

ÂŠÂ›Â’ÂœČą ’—”ȹ ’Â?‘ȹÂ?‘Žȹ ČŚ Čą division said that his area will be focusing more resources on examin’—Â?ČąÄšÂ˜Â ČŹÂ?‘›˜žÂ?‘ȹ entities such as

“There have been 38,000 voluntary disclosures resulting in $5.5 billion in increased revenue to the tax system.

Shulman said that this push has had a deterrent effect and has fundamentally changed behavior for the next generation of taxpayers.�

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(888) 557-4814 | www.scacpa.org

Tax Highlights The representative from the W&I division was Peggy Bogadi. An improvement in W&I that will be ȱ ȱ ȱ ȱę ȱ ȱ ȱ ȱ ȱȃ Ȃ ȱ ¢ȱ Ȅȱ tool on IRS.gov. The tool will provide ȱ ę ȱ ȱ ȱ ¡ ¢ ȱ rather than generic refund dates based on expected processing times as used in the past. She also shared ȱ £ ȱ Ȭę ȱ ȱŗŖŚŖ ȱ ȱ complete. The next returns to be implemented are the 940 series and 1041. They are in the planning stages ȱ ȱ Ȭę ȱ ȱŗŖŚŖȬ ǯȱ ǭ ȱ ȱ ȱ ȱ ȱ ȱ controls to stop identity theft by stopping returns on the front end. ȱ ȱ ȱ ȱ ȱ ment as commissioner, Shulman told us about some of the IRS’ recent successes. He said that the recent activity on the international front ȱ ȱ ȱ ȱ ȱ ȱ ¢ǯȱ There have been 38,000 voluntary disclosures resulting in $5.5 billion in increased revenue to the tax system.

Shulman said that this push has had ȱ ȱ ě ȱ ȱ ȱ tally changed behavior for the next generation of taxpayers. He is also

pleased with the modernization of the tax system and the registration of tax return preparers. Some of his concerns as he leaves the IRS are the ¡ ȱ ¡ȱ Ȧę ȱ ěȱ ȱ ȱ ȱ ȱ ě ȱ ȱ act tax provisions. He also said that if Congress does not address the AMT ȱ ȱ ȱ ȱ ę ȱ ¢ ȱ ȱ ȱ¢ Ȃ ȱę ȱ ǯȱȱȱ ȱ ȱ ȱ ȱ ě ȱ the following tips for preparers in dealing with appeals: • If new information becomes available it should be shared with ȱ ȱ ȱ ȱ ě ences resolved at the compliance level.

• Issues should be fully developed and shared with compliance.

• Communicate early, fully, and often. Ȋȱ ȱę ȱ ȱ ȱ ȱ ȱ slow down the case.

• Meet the time frames set by the ȱ Ĝ ǯ Ȋȱ ȱ ȱ ǰȱ ȱę cial statements upfront.

Carol Campbell with the Return Pre ȱ Ĝ ȱ ȱ ȱ ȱ

to be sure to renew their PTIN and ȱ ȱ ȱ ¢ȱ ȱ ȱ in the registration process. Since parts of this information is subject to disclosure to 3rd parties under the Freedom of Information Act, they ¢ȱ ȱ ȱ ȱ ȱ ȱ ȱ that is used is their business address rather than their home address. She also shared that Schedule C will be the focus of most of the return ȱ ȱ ȱ Ĵ ȱ ȱ¢ ǯȱ She expects that there will be about śǰŖŖŖȱ ȱ ȱ ȱ Ĝ ȱ ȱ ȱ Ĵ ǯȱȱȱ ȱ Ȭ ȱ ȱ ȱ touches will be education visits to the Ȃ ȱ Ĝ ȱ ¢ȱ ȱ ȱ ǯȱȱȱ Another one-third will be general let ȱ ȱ ȱ ȱ ȱ ǯȱȱ ȱę ȱ Ȭ ȱȱ ȱ ȱ ȱ Ĵ ȱ ȱ ȱ ȱ ȱ schedule C.

Charles M. Ayers, CPA, is a manager with McdowellPearman, LLC In Columbia. He currently serves as chairman of SCACPA’s Taxation Committee and previously served on the Information Technology Committee.

Your staff deserves the best training available e but providing it can be a challenge.

Now you can bring top-quality programs directlyy n to your office with the South Carolina Association of CPAs’ On-site Customized Training program.

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Contact Reva Brennan, MPA, CAE at (803)791-4181 x103 or rbrennan@scacpa.org, or visit www.scacpa.org/onsitetraining.

(888) 557-4814 | www.scacpa.org

South Carolina CPA Report

29

Tax Highlights

Safeguarding Against Fraudulent 1040s

by Walda Wildman, CPA, with Bob Baldwin, CPA

M

Â˘ČąÂœÂ–ÂŠÂ•Â•ČąÂ˜ÄœÂŒÂŽČąÂ‹ÂŽÂŒÂŠÂ–ÂŽČą Œ˜—ŒŽ›—ŽÂ?ČąÂ?Â‘Â’ÂœČąÂ™ÂŠÂœÂ?ȹꕒ—Â?Čą season when, for the second year in a row, a client’s return Â ÂŠÂœČąÂ›ÂŽÂ“ÂŽÂŒÂ?ÂŽÂ?ČąÂ?Â˜Â›ČąÂŽČŹÄ™Â•Â’Â—Â?ČąÂ‹ÂŽÂŒÂŠÂžÂœÂŽČąÂ‘Â’ÂœČą ›ŽÂ?ž›—ȹ‘ŠÂ?ȹŠ•›ŽŠÂ?¢ȹ‹ŽŽ—ȹꕎÂ?ǯȹȹ Čą Â?›ŠžÂ?ÂœÂ?Ž›ȹ‘ŠÂ?ȹꕎÂ?ȹŠȹ›ŽÂ?ÂžÂ›Â—ČąÂžÂœÂ’Â—Â?ČąÂ‘Â’ÂœČą name and Social Security number claiming refundable credits. The refund had already been sent out along with my taxpayer’s estimate payments.

Because this had now happened two years in a row, I became concerned Â?‘ŠÂ?ČąÂ–Â˘ČąÄ™Â›Â–Č‚ÂœČąÂœÂŽÂŒÂžÂ›Â’Â?¢ȹ–’Â?‘Â?ȹ‹Žȹ •ŠŒ”’—Â?ǯȹȹ žÂ?ȹ‹ŽÂ?Â˜Â›ÂŽČą ČąÂŒÂŠÂ•Â•ÂŽÂ?ȹ–¢ȹ Čą Â?ž¢ǰȹ ČąÂŠÂœÂ”ÂŽÂ?ČąÂœÂ˜Â–ÂŽČąÂ˜Â?ČąÂ–Â˘ČąÂŒÂ˜Â•Â•ÂŽÂŠÂ?ÂžÂŽÂœÇ°Čą including Bob Baldwin, of Baldwin & Associates, LLC in Mt. Pleasant, if they had encountered the same problem. I was surprised that a number had and then wondered why we weren’t hearing much about this from the IRS. I got my answer at a recent CPE session presented by my software vendor. The discussion topic focused on things to expect with the 2013 ꕒ—Â?ČąÂœÂŽÂŠÂœÂ˜Â—ÇŻČąČą ÂœČąÂ’Â?ČąÂ?‘Ž›Žȹ Ž›Ž—ȂÂ?Čą enough other issues we will have Â?Â˜ČąÂ?ŽŠ•ȹ ’Â?‘ȹ—Ž¥Â?ȹ¢ŽŠ›ǰȹÂ?Â‘ÂŽČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›Čą predicted we will see slower refunds ÂŠÂœČąÂ?‘Žȹ ȹꗊ••¢ȹŠÂ?Â?Â›ÂŽÂœÂœÂŽÂœČąÂ?‘Žȹ fraudulent return problem. Â‘ÂŽČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›ČąÂŽÂĄÂ™Â•ÂŠÂ’Â—ÂŽÂ?ČąÂ?‘ŠÂ?ȹ ‘Ž—ȹ tax anticipation loans were allowed, Â‹ÂŠÂ—Â”ÂœČąÂ ÂŽÂ›ÂŽČąÂ?‘Žȹ Č‚ÂœČąÄ™Â›ÂœÂ?ČąÂ•Â’Â—ÂŽČąÂ˜Â?Čą defense against fraudulent returns. Š—”ȹ•Ž—Â?’—Â?ČąÂœÂ˜Â?Â? Š›Žǰȹ’Â?ČąÂœÂŽÂŽÂ–ÂœÇ°Čą was set up to identify fraudulent refund claims. IRS software, on the other hand, was not designed with Â&#x;Ž›¢ȹ‘’Â?‘ȹÂ?›ŠžÂ?ȹę•Â?ÂŽÂ›ÂœÇŻČąČą ‘Žȹ Čą

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South Carolina CPA Report

“As if there weren’t enough other issues we will have to deal with next year, the speaker predicted we will see slower refunds as the IRS finally addresses the fraudulent return problem.â€? was simply not prepared for what happened year before last when Â‹ÂŠÂ—Â”ÂœČąÂ ÂŽÂ›ÂŽČąÂ›ÂŽÂ–Â˜Â&#x;ÂŽÂ?ČąÂ?Â›Â˜Â–ČąÂ?‘Žȹ–’¥ǯȹȹ ŠœÂ?ȹ¢ŽŠ›ǰȹÂ?‘Žȹ ČąÂ ÂŠÂœČąÂ Â˜Â›Â”Â’Â—Â?ČąÂ˜Â—Čą Ä™ÂĄÂŽÂœČąÂ‹ÂžÂ?ČąÂ?Â’Â?—ȂÂ?ȹ‘ŠÂ&#x;ÂŽČąÂ?Â‘ÂŽÂ–ČąÂ’Â—ČąÂ™Â•ÂŠÂŒÂŽÇŻČąČą This upcoming third year, the IRS  ’••ȹ‹Žȹ’–™•Ž–Ž—Â?’—Â?ČąÄ™ÂĄÂŽÂœČąÂŠÂ—Â?Čą ›Žę—’—Â?ȹ’Â?ÂœČąÂ?›ŠžÂ?ȹę•Â?ÂŽÂ›ÂœÇŻ As a result, we will see the service ČƒÂœÂžÂœÂ™ÂŽÂ—Â?Č„ČąÂ™Â›Â˜ÂŒÂŽÂœÂœÂ’Â—Â?ȹ›ŽÂ?ÂžÂ›Â—ÂœČąÂ’Â?Čą Â’Â?Ž—Â?Â’Ä™ÂŽÂœČąÂŠÂœČąÂ™Â˜Â?Ž—Â?’Š••¢ȹÂ?›ŠžÂ?ž•Ž—Â?ǯȹȹ The suspension period will be 75 days, a length of time which will Â•Â’Â”ÂŽÂ•Â˘ČąÂ–Â˜Â&#x;ÂŽČąÂ›ÂŽÂœÂ˜Â•ÂžÂ?Â’Â˜Â—ČąÂ™ÂŠÂœÂ?Čą ™›’•ȹŗśǯȹȹ During the suspension, the IRS will œŽ—Â?ȹŚŞŞř ČąÂ•ÂŽÄ´ÂŽÂ›ÂœČąÂ?Â˜ČąÂ?‘ŽȹŠÂ?Â?Â›ÂŽÂœÂœČąÂ˜Â—Čą the potentially fraudulent returns ›ŽšžŽœÂ?’—Â?ČąÂ™Â›Â˜Â˜Â?ČąÂ˜Â?ȹ’Â?Ž—Â?Â’Â?¢ǯȹȹ While the suspect returns are suspended, a valid return for the taxpayer victim will be rejected because it reports a duplicate Social Security number.

At least this was the plan as of early ÂŽÂŒÂŽÂ–Â‹ÂŽÂ›ÇŻČąČą ’”Žȹ–Š—¢ȹÂ?‘’—Â?ÂœČąÂ?Â‘Â’ÂœČą season, the plan may change. But for those of you who have had this Â™Â›Â˜Â‹Â•ÂŽÂ–Ç°ČąÂ’Â?ČąÂ’ÂœČąÂ•Â’Â”ÂŽÂ•Â˘ČąÂ—Â˜Â?ČąÂ˘Â˜ÂžÂ›ČąÄ™Â›Â–Č‚ÂœČą Â•ÂŠÂŒÂ”ČąÂ˜Â?Čą ČąÂœÂŽÂŒÂžÂ›Â’Â?¢ȹÂ?‘ŠÂ?ČąÂ’ÂœČąÂ?Â‘ÂŽČąÂŒÂžÂ•Â™Â›Â’Â?ÇŻ

have breached the South Carolina Department of Revenue taxpayer database we can count on more Â?›ŠžÂ?ž•Ž—Â?ȹ›ŽÂ?ž—Â?ȹŠĴŽ–™Â?ÂœČąÂ‹Â˘ČąÂ?Â‘Â˜ÂœÂŽČą Â‘ÂŠÂŒÂ”ÂŽÂ›ÂœÇŻČąČą Â˜Â‹ČąÂœÂžÂ?Â?ÂŽÂœÂ?ÂœČąÂ?‘ŽȹÂ?˜••˜ ’—Â?Čą safeguards for clients’ tax returns:

1

’•Žȹ Čą Â˜Â›Â–ČąĹ—ĹšĹ–Ĺ™Ĺ&#x;ȹŠ—Â?ȹ–Š›”ȹÂ?‘Žȹ box indicating that the taxpayer is a victim of identity theft (the South Carolina DOR Breach) and that they ‹Ž•’ŽÂ&#x;ÂŽČąÂ?‘Ž¢ȹ–Š¢ȹ‹ŽȹŠÂ?ČąÂ›Â’ÂœÂ”ČąÂ?Â˜Â›ČąÂ?žÂ?ž›Žȹ impact on their tax account.

2

Be sure to have a power of ÂŠÄ´Â˜Â›Â—ÂŽÂ˘ČąÂ˜Â—ČąÄ™Â•ÂŽČąÂ?Â˜Â›ČąÂ˘Â˜ÂžÂ›ČąÂŒÂ•Â’ÂŽÂ—Â?Č‡ÂœČą so that you will receive copies of all IRS notices sent to your clients. In that manner you can help monitor the ÂœÂ?ŠÂ?ÂžÂœČąÂ˜Â?Čą ČąÂ–ÂŠÄ´ÂŽÂ›ÂœČąÂ?Â˜Â›ČąÂ?Â‘ÂŽČąÂŒÂ•Â’ÂŽÂ—Â?ǯȹ„ Walda C. Wildman, of Walda C. Wildman, LLC in Columbia, has been a SCACPA member since 1984. She is a member of the Benefits Committee and previously served on the Membership Committee and the CPE Committee.

—Â?Čą Â˜Â‹Čą Š•Â?Â Â’Â—ČąÂ‘ÂŠÂœČąÂ˜Ä›ÂŽÂ›ÂŽÂ?Čą ŠÂ?Â?Â’Â?Â’Â˜Â—ÂŠÂ•ČąÂŠÂ?Â&#x;Â’ÂŒÂŽÇąČąČą Â’Â—ÂŒÂŽČąÂ‘ÂŠÂŒÂ”ÂŽÂ›ÂœČą

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Tax Highlights

Investigate Potential Tax Implications of the Cloud

by Terry Grayson-Caprio, CPA, and Jeff Corser, CPA

“... more than half of senior U.S. corporate tax professionals surveyed reported they generally were not included in discussions with top management of other groups in their organizations to provide tax perspective on cloud initiatives”.

T

he fact that many companies ȱ ȱ ȱ ȱ ȱ ¢ȱ ȱȃ ȱ ȱ ȱ cloud” is well-documented. But as South Carolina-based businesses consider moving to the cloud to help save ȱ ȱ ȱ Ĝ ǰȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ Ȭ ȱ ȱ ¢ȱ ȱ the potential tax implications related to cloud operations.

In fact, a survey by KPMG conducted in Spring 2012 indicated companies may unintentionally be excluding their tax departments from discussions about moving to the cloud. In fact, more than half of senior U.S. corporate tax professionals surveyed reported they generally were not included in discussions with top management of other groups in their organizations to provide tax perspective on cloud initiatives.

Without input from their tax departments, companies can face potential ¡ȱ ǰȱ ȱ ȱ Ȭ ȱ tunities and decreased return-oninvestment for cloud projects. The tax department’s input regarding cloud implementation can be a critical part

of a company’s overall planning and ȱ ǯȱȱ

STATE TAX FACTORS ȱ ȱ ȱ ȱ ¡ȱ ȱ ȱ cloud providers and end users may need to address is domestic sales/use tax and income/franchise tax issues.

In the United States, sellers are re ȱ ȱ ȱ ȱ ¡ȱ ȱ ¡ ȱ transactions in the states where they ȱ ȱ ¢ ȱ ȱǻȃ ¡ ȄǼǯȱȱ Inconsistent state guidance on the taxation of cloud services can create customer service issues and potential tax liabilities for cloud providers as well as their customers. To help address these issues, cloud providers will need to understand both the characterization and sourcing rules for each state in which they have nexus.

The same is true for consumers of cloud services. Every state that imposes a sales tax also imposes a compensating use tax. To the extent a provider does not charge sales tax on the sale of cloud services, it is the consumer’s responsibility to assess ȱ ȱ ¡ȱ ȱ ǯȱȱ ȱ ȱ ȱ

of clarity, consumers should consider reviewing all purchases from their cloud providers to determine whether sales tax was over- or undercollected. ȱ ¢ȱ ȱ ȱ ȱ ȱ vantage of use-based sourcing rules and business input exemptions to reduce their potential liability. Consumers may also want to understand where a provider has nexus and a corresponding collection obligation to ensure they are appropriately fulę ȱ ȱ ȱ ¡ȱ ǯȱ The South Carolina Department of Revenue has issued several rulings addressing certain types of cloud services but the conclusions vary de ȱ ȱ ȱ ę ȱ ȱ Ĵ ǯȱ The Department, however, has consistently held that remotely accessing software in a Software as a Service ȱ ȱ ¡ ȱȃ munication services.” Recently, however, the Department found that a taxpayer bundling access to software online—which would be subject to tax if purchased alone—and related medical billing services was in fact providing a nontaxable data processcontinued on page 32

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South Carolina CPA Report

31

Tax Highlights ing service because the “true object” of the purchaser was the non-taxable data processing associated with the billing service.

While these rulings are helpful in understanding how the department analyzes certain cloud services, the department has yet to provide any general guidelines on taxation of cloud services or the treatment of income from the provision of cloud services. It should also be noted that ȱ ȱ ě ȱ ȱ ¡ ȱ for computer equipment used in connection with a technology intensive facility (e.g., data center) provided certain conditions are met.

In light of these and other developments, it is critical that cloud providers and end users both in South Carolina and across the country stay current on the rules in the states in which they operate. Providers should also consider the additional system requirements needed to support proper invoicing and customer exemptions.

In addition to sales tax, providers also need to establish positions on state income tax apportionment. £ ȱ ǰȱ ę ȱ income producing activity, identifying cost of performance, evaluating ě ȱ ȱ ¡ ȱ £ tional structures, reviewing transfer pricing arrangements, and evaluating data center sites/incentives—all must be considered when doing business in the cloud.

questions. For example, as a cloud user, is any VAT cost you bear recoverable? Would your VAT answer change if your cloud contract were worded such that bundled elements of the service were invoiced separately? Do you understand your VAT self-assessment responsibilities to avoid possible penalties?

Addressing transfer pricing tax risk is another key consideration when moving to the cloud. When cloud IT costs are pushed-out to your global organization, how are you going to document that the allocation is a supportable “arm’s-length” charge for each Ĝ ȱ ȱ ȱ ȱ ǵȱȱ Cloud users should work closely with cloud providers and tax advisors to help build a workable methodology and have access to necessary information (possibly only available from the provider).

Some multi-national cloud users are considering implementing IT solutions that can help capture the result ȱ ȱ ȱ ȱ Ĝ ȱ ȱ tax-favored jurisdictions. Given the potential IT cost savings from cloudrelated IT solutions, this can be a sig ę ȱ ¢ǯȱȱ ȱ ȱ potential savings typically requires

early collaboration with the user’s IT professionals, IT partners (including cloud providers) and tax advisors.

As these and many other tax issues related to the cloud continue to develop, cloud providers and end users in South Carolina and across the country need to carefully monitor them and manage the associated risks and opportunities.

The information in this column is of a general nature and based on authorities that are subject to change.

Applicability of the information to specific situations should be determined through consultation with your tax adviser. This article represents the views of the authors only, and does not necessarily represent the views or professional advice of KPMG LLP. Terry Grayson-Caprio, CPA, is the managing partner of KPMG LLP’s Greenville office. A SCACPA members since 1991, she serves on the Managing Partners Task Force, a past board member and previously served on the Finance Committee and Technical Standards Committee.

Jeff Corser, CPA, is a tax managing director based in KPMG LLP’s Charlotte office.

INTERNATIONAL TAX CONSIDERATIONS For organizations doing business overseas—whether as a vendor or a customer—it is important to consider value-added tax (VAT) and other transactional tax rules. Purchasing cloud IT services as compared to a traditional IT model raises several

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South Carolina CPA Report

(888) 557-4814 | www.scacpa.org

South Carolina

CPA 2012-13 CHAPTER LEADERSHIP

JANUARY - MAY CALENDAR OF EVENTS CATAWBA

GRAND STRAND

Ĺ˜Ĺ–Ĺ—Ĺ™Čą ÂžÂŽÂœÇą $90 (18 months), includes discounted registration to CPE seminars and free family/ —ŽÂ? ˜›”’—Â?ȹŽÂ&#x;Ž—Â?ǹȹ • Feb. 24: Social featuring the musical Hairspray – Free for Catawba Chapter members and family. • April 30: A & A Update (8 hours credit)-Russ Madray

Ĺ˜Ĺ–Ĺ—Ĺ™Čą ÂžÂŽÂœÇą $187 (18 months), includes free registration to CPE seminars; Holiday Party and Student Recruitment Fair:

CENTRAL

• March 15: Mid-Season Tax Breather • May 7: A & A Update (8 hours credit)-Russ Madray

Ĺ˜Ĺ–Ĺ—Ĺ™Čą ÂžÂŽÂœÇąČą$75 (18 months), includes discounted registration to CPE seminars, free Oyster Roast, Family Day, Business Meeting Dinner and Entertainment Night: • Spring: CPE (8 hours)

COASTAL Ĺ˜Ĺ–Ĺ—Ĺ™Čą ÂžÂŽÂœÇą $195 (18 months), includes free registration to CPE seminars (additional registration fee for Tax Update) and free registration to family/ —ŽÂ? ˜›”’—Â?ȹŽÂ&#x;Ž—Â?ǹȹ • April 26: Second Annual Entertainment Night ČŠČą Š¢ǹȹ Ç­ Čą ™Â?ŠÂ?ŽȹȎ Š›”ȹ Hobbs (8 hours)

FOOTHILLS Ĺ˜Ĺ–Ĺ—Ĺ™Čą ÂžÂŽÂœÇąČą$60 (18 months), includes discounted registration to CPE seminars Š—Â?ČąÂ?Â›ÂŽÂŽČąÂœÂ˜ÂŒÂ’ÂŠÂ•ČŚÂ—ÂŽÂ? ˜›”’—Â?Čą events: • April 24: A & A Update (8 hours credit)-Russ Madray

(888) 557-4814 | www.scacpa.org

In the interest of space, following is an Š‹‹›ŽÂ&#x;’ŠÂ?ÂŽÂ?ČąÂ•Â’ÂœÂ?’—Â?ČąÂ˜Â?ČąÂŒÂ‘ÂŠÂ™Â?ÂŽÂ›ČąÂ˜ÄœÂŒÂŽÂ›ÂœÇŻČą ’œ’Â?Čą scacpa.org/chapters for a complete list.

CATAWBA President: Amy Rubin, Charles M. Redfern, CPA Vice President: William L. Faris, Engine Power Source, Inc. Secretary/Treasurer: Glenn E. Savage, Winthrop University Administration

• May: CPE (8 hours)

CENTRAL

PEE DEE

President: Matthew Hodges, Burkett Burkett and Burkett, PA Vice President: Russell Quattlebaum, J. W. Hunt & Company, LLP Secretary/Treasurer: Will Stevens, The Hobbs Group, PA CPE Coordinator: Christopher Hinchee, McGregor & Company, LLP

Ĺ˜Ĺ–Ĺ—Ĺ™Čą ÂžÂŽÂœÇą $75 (18 months), includes discounted registration to CPE and free social events:

PIEDMONT Ĺ˜Ĺ–Ĺ—Ĺ™Čą ÂžÂŽÂœÇąČą$50* (18 months), includes registration for CPE at a nominal fee: *The Piedmont Chapter is subsidizing a portion of the dues for 2013-2014 and the membership renewal will remain $50 (covers 18 months) for members. • Feb. 15: Piedmont Chapter is a co-sponsor with IMA and IIA for the Winter Accounting Conference. • May 21: A & A Update with Russ Madray, Anderson (8 hours)

SEA ISLAND Ĺ˜Ĺ–Ĺ—Ĺ™Čą ÂžÂŽÂœÇąČą$202 (18 months), includes free registration to CPE seminars and special events: • May 14: A & A Update (8 hours credit)-Russ Madray

COASTAL President: E. W. Sanders, American Pensions Vice President: Jim Hudson, Hudson & Associates, CPA, LLC Secretary: Crystal McGuire, LS3P Treasurer: Frances Y. Moseley, Isle of Palms Red and White

FOOTHILLS President: Cheryl Lang, Tindall Corporation Vice President: Chris Holtzclaw, PricewaterhouseCoopers, LLP Secretary: Christina Braswell, PricewaterhouseCoopers, LLP Treasurer: Kara S. Shealy, Milliken & Company

GRAND STRAND President: Leigh Ann Marks, Fun Warehouse Inc. Vice President: J. Burt Huggins, Smith, Sapp, Bookhout, Crumpler & Calliham, PA Secretary/Treasurer: Sharon Proctor, Smith, Sapp, Bookhout, Crumpler & Calliham, PA

PEE DEE President: Nancy Waring, Waring & Associates, CPAs, PA Vice President: Joseph Griffin, WebsterRogers, LLP Secretary/Treasurer: Lawrence Kennedy, Jr., McCall Farms

PIEDMONT President: Brad Ledford, Staffing Partners, LLC Vice President: Stephen Stokes, Stokes & Bales CPAs Secretary: Art Tompkins, VistaBank Treasurer: Jimmy Tenpas, Dixon Hughes PLLC

SEA ISLAND President: Anne Reed, Carey & Company, PA Vice President: Raymond Williams, Crowley Wechsler & Associates, LLC Secretary: Christopher Linkimer, Carecore National, LLC Treasurer: Amy Graybill, Robinson Grant Company, LLP

South Carolina CPA Report

33

Focus on CPE

Ĺ˜Ĺ–Ĺ—Ĺ™Čą Čą ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽÂœČąÂ’Â—Čą ÂŽÂ&#x;Â’ÂŽÂ Â˜Â–ÂŽÂ—ČąÂ’Â—Čą ŽŠÂ?ÂŽÂ›ÂœÂ‘Â’Â™Čą ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąČŠČą ÂŒÂ?Â˜Â‹ÂŽÂ›ČąĹ—ĹžÇ°Čą ˜•ž–‹’Š SCACPA held its third annual Women in Leadership Conference designed to raise awareness of both men and women regarding the gap in the progress of women in the accounting profession. We believe that a diverse profession is a sustainable profession. This conference ™›˜Â&#x;Â’Â?ÂŽÂœČąÂŠČąÂ&#x;Ž—žŽȹÂ?Â˜Â›ČąÂ Â˜Â–ÂŽÂ—ČąÂ?Â˜ČąÂ—ÂŽÂ?Â Â˜Â›Â”ČąÂ Â’Â?Â‘ČąÂ˜Â?Â‘ÂŽÂ›ČąÂ™Â›Â˜Â?ÂŽÂœÂœÂ’Â˜Â—ÂŠÂ•ÂœÇ°ČąÂŠÂ—Â?ČąÂ?ÂŽÂ&#x;ÂŽÂ•Â˜Â™ČąÂœÂ”Â’Â•Â•ÂœČąÂ?Â˜ČąÂŠÂœÂœÂ’ÂœÂ?ČąÂ?‘Ž–ȹ’—ȹÂ?›˜ ’—Â?Čą personally and professionally. Topics featured during Â?Â‘Â’ÂœČąÂŽÂ&#x;Ž—Â?ČąÂ?Â˜ČąÂŠÂœÂœÂ’ÂœÂ?ČąÂ Â˜Â–ÂŽÂ—ČąÂ’Â—ČąÂžÂ—Â•Â˜ÂŒÂ”Â’Â—Â?ČąÂ?Â‘ÂŽÂ’Â›ČąÂ™Â˜Â?Ž—Â?’Š•ȹ  Ž›Žǹȹ Â˜ÂžÂ›Čą ŽŒ›ŽÂ?ÂœČąÂ?Â˜Â›Čą ÂŽÂ&#x;Ž•˜™’—Â?Čą Â˜ÂžÂ›Čą Â™Â‘ÂŽÂ›ÂŽČąÂ˜Â?Čą Â—ÄšÂžÂŽÂ—ÂŒÂŽČąÂŠÂ—Â?Čą ÂŽÂ&#x;Ž•˜™’—Â?Čą ÂžÂœÂ’Â—ÂŽÂœÂœÇ°Čą Š–Ž›Šȹ Â˜ÂŽÂ›ÂŁÂŽÂ•Ç˛ČąČą 쎌tively Leveraging Mentors for Career Growth and The Power of Social Media in Developing Your Brand and Generating Business, Rita Keller; Social Media: Avoiding Â?‘Žȹ Â’Â?Â?ÂŠÂ•Â•ÂœÇ°Čą Š¢ȹ ÂŠÄ´Â‘ÂŽÂ ÂœÇ˛Čą ž•Â?Â’Â&#x;ŠÂ?’—Â?ČąÂ?‘Žȹ ˜–™ŽÂ?ÂŽÂ—ÂŒÂ’ÂŽÂœČą ˜Â?Čą ˜––ž—’ŒŠÂ?Â’Â˜Â—ČąÂŠÂ—Â?Čą ˜—Ě’ŒÂ?Ç°Čą ‘Ž›’ȹ Š••Š‘Š—ǯ During the conference lunch, three South Carolina women were recognized by SCACPA and AICPA as Women to Watch: Emerging Leader, ›’ĴŠ—¢ȹ ÇŻČą  Ž—ǰȹ Ç°Čą ••’˜Ĵ ŠÂ&#x;Â’ÂœÇ°Čą ȹŠ—Â?Čą ÂĄÂ™ÂŽÂ›Â’ÂŽÂ—ÂŒÂŽÂ?Čą ŽŠÂ?ÂŽÂ›ÂœÇąČąAnne ÇŻČą Š›Â?¢ǰȹ Ç°Čą Â’Â?Â˘ČąÂ˜Â?Čą Â˜ÂŒÂ”Čą ’••ȹŠ—Â?ČąDebra A. Turner, , WebsterRogers, LLP.

S Women to Watch award winners (from left) Debra A. Turner, Brittany B. Owen and Anne P. Harty with SCACPA Chair Michael Putich.

In your words‌

Š¢ȹ ÂŠÄ´Â‘ÂŽÂ ÂœČąÂ’ÂœČąÂŠÂ—ČąÂžÂ—Â‹ÂŽÂ•Â’ÂŽÂ&#x;Š‹•¢ȹÂ?›ŽŠÂ?ČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›ÇŻČą Ž›¢ȹ›Ž•ŽÂ&#x;Š—Â?Čą ’—Â?˜›–ŠÂ?Â’Â˜Â—ČąÂŠÂ—Â?ȹ”Ž™Â?ȹ–¢ȹŠĴŽ—Â?Â’Â˜Â—ČąÂ?Â‘ÂŽČąÂ Â‘Â˜Â•ÂŽČąÂ?’–Žǡ Would love to have this conference in Greenville, if possible. Â‘ÂŽČąÂœÂŽÂœÂœÂ’Â˜Â—ÂœČąÂ˜Â—ČąÂ?ŽŒ‘—˜•˜Â?Â˘ČŚÂœÂ˜ÂŒÂ’ÂŠÂ•ČąÂ–ÂŽÂ?Â’ÂŠÇ°ČąÂŒÂ˜Â—ÄšÂ’ÂŒÂ?ČąÂ›ÂŽÂœÂ˜Â•ÂžÂ?Â’Â˜Â—ČąÂ ÂŽÂ›ÂŽČą great; need more.

Â’Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•Čą •Š——’—Â?Čą ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąČŠČą ÂŒÂ?Â˜Â‹ÂŽÂ›ČąĹ˜Ĺ™Ç°Čą ÂŽÂœÂ?Čą ˜•ž–‹’Š The goal of this conference was to provide the ŠĴŽ—Â?ÂŽÂŽÂœČąÂ Â’Â?‘ȹÂ?‘ŽȹÂ?Â˜Â˜Â•ÂœČąÂ—ÂŽÂŽÂ?ÂŽÂ?ČąÂ?Â˜ČąÂ™Â›ÂŽÂ™ÂŠÂ›ÂŽČąÂ?Â˜Â›Čą Â?Â‘ÂŽÂ’Â›ČąÄ™Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•ČąÂ?žÂ?ÂžÂ›ÂŽČąÂŠÂœČąÂ ÂŽÂ•Â•ČąÂŠÂœČąÂ?Â‘ÂŽÂ’Â›ČąÂŒÂ•Â’ÂŽÂ—Â?ÂœÇŻČą ‘Žȹ Œ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąÂ˜Ä›ÂŽÂ›ÂŽÂ?ČąÂœÂŽÂœÂœÂ’Â˜Â—ÂœČąÂ˜Â—ČąÂ?‘Žȹ•ŠÂ?ÂŽÂœÂ?ČąÂœÂ?›ŠÂ?ÂŽÂ?Â’ÂŽÂœČą Š—Â?ČąÂ?ÂŽÂŒÂ‘Â—Â’ÂšÂžÂŽÂœČąÂ?Â˜Â›ČąÂ?‘Žȹ ČąÂ?Â˜ČąÂŽÂĄÂŒÂŽÂ•ČąÂŠÂœČąÂŠČąÂ?›žœÂ?ÂŽÂ?Čą Â‹ÂžÂœÂ’Â—ÂŽÂœÂœČąÂŠÂ?Â&#x;Â’ÂœÂ˜Â›ÇŻČą ŽŠÂ?ž›ŽÂ?ČąÂ?Â˜Â™Â’ÂŒÂœČąÂŠÂ—Â?ČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›ÂœČą were: Economic Update, Ray Owens; Alternative Investments, Charles Flowers; Estate Planning, Erin Â˜Â˜Â”Ç˛Čą ÂœÂ?ŠÂ?ŽȹŠ—Â?Čą Â’Â?Â?Čą Š¥ǰȹ ŠÂ&#x;ÂŽČą Â˜Â“Â˜ÂžÂ›Â—ÂŽÂ›Ç°ČąÂŠÂ—Â?Čą Â˜ÂŒÂ’ÂŠÂ•Čą ŽŒž›’Â?¢ǰȹ ›ŽĴȹ Â˜Â›Â˜Â Â’ÄľÇŻ

In your words‌ The event is one of my favorites each year. Breaking up the topics and speakers keeps you engaged.

Every person should have walked away with several items that should make them more relevant to their clients. Â?ČąÂ ÂŠÂœČąÂ˜Â‹Â&#x;Â’Â˜ÂžÂœČąÂ?‘ŠÂ?ČąÂ?‘ŽȹŽÂ&#x;Ž—Â?ČąÂ ÂŠÂœČąÂ ÂŽÂ•Â•ČąÂ™Â•ÂŠÂ—Â—ÂŽÂ?ȹŠ—Â?ČąÂ?‘ŽȹÂ?Â’Â–ÂŽČąÂŠÂ•Â•Â˜Ä´ÂŽÂ?Čą for speakers was managed well to keep the event on schedule.

›ŠžÂ?Čą ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąČŠČą ˜Â&#x;Ž–‹Ž›ȹĹ?Ç°Čą ˜•ž–‹’Š

34

This second annual event in sponsorship with the ÂŠÂ•Â–ÂŽÄ´Â˜Čą ‘Š™Â?ÂŽÂ›ČąÂ˜Â?ČąÂ?‘Žȹ ČąÂ ÂŠÂœČąÂ‘ÂŽÂ•Â?ȹŠÂ?ČąÂ?‘Žȹ ˜žÂ?‘ȹ Carolina Bar Conference Center. The 2012 program focused on fraud prevention and detection methods using technology, a very timely topic considering the recent South Carolina Department of Revenue data breach.

In your words‌ Â‘Â˜ÂœÂŽČąÂ?‘ŠÂ?ČąÂ ÂŽÂ›ÂŽČąÂ—Â˜Â?ȹŠ‹•ŽȹÂ?Â˜ČąÂŠÄ´ÂŽÂ—Â?ČąÂ–Â’ÂœÂœÂŽÂ?ČąÂ˜ÂžÂ?ČąÂ˜Â—ČąÂ?Â˜Â™ČŹÂ—Â˜Â?ÂŒÂ‘ČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›ÂœČą Š—Â?ČąÂ?›Š’—’—Â?ÇŻČą Â—ÂŽČąÂ˜Â?ČąÂ?Â‘ÂŽČąÂ‹ÂŽÂœÂ?ČąÂŒÂ˜Â—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽÂœČą ȹ‘ŠÂ&#x;ŽȹŽÂ&#x;Ž›ȹŠĴŽ—Â?ÂŽÂ?ÇŻČą

Â˜ČŹÂœÂ™Â˜Â—ÂœÂ˜Â›ÂŽÂ?ȹ‹¢ȹÂ?‘Žȹ ÂŠÂ•Â–ÂŽÄ´Â˜Čą ‘Š™Â?ÂŽÂ›ČąÂ˜Â?ČąÂ?‘Žȹ

Ž˜›Â?ÂŽČą œŽ•Ž—’Â?ÂœČąÂ ÂŠÂœČą ǡǡǡ

South Carolina CPA Report

‘Žȹ Čą Š›ȹ ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČą Ž—Â?ÂŽÂ›ČąÂ’ÂœČąÂŠČąÂ Â˜Â—Â?Ž›Â?ž•ȹÂ?ŠŒ’•’Â?¢ȹȏȹ‹ŽŠžÂ?Â’Â?ž•ȹ building, comfortable seating with ample space between participants, ÂŽÂŠÂœÂ’Â•Â˘ČąÂŠÂŒÂŒÂŽÂœÂœÂ’Â‹Â•ÂŽČąÂ•Â˜ÂŒÂŠÂ?Â’Â˜Â—ČąÂŠÂ—Â?ȹ™Š›”’—Â?ÇŻČą ˜Â&#x;ÂŽÂ?ČąÂ?Â‘Â’ÂœČąÂ•Â˜ÂŒÂŠÂ?Â’Â˜Â—ČąÂ?Â˜Â›Čą ÇŻ

(888) 557-4814 | www.scacpa.org

Focus on CPE

˜Â&#x;Ž›—–Ž—Â?Š•ȹ Â˜Â—ÂžÂœČą Â˜Â›Â”ÂœÂ‘Â˜Â™ČąČŠČą ˜Â&#x;Ž–‹Ž›ȹŗřǰȹ ˜•ž–‹’Š ‘Žȹ ˜Â&#x;Ž›—–Ž—Â?Š•ȹ Â˜Â—ÂžÂœČą Â˜Â›Â”ÂœÂ‘Â˜Â™ČąÂ‘ÂŽÂ•Â?ȹŠÂ?ČąÂ?‘Žȹ Columbia Conference Center led by Marci Thomas featured a governmental industry update and major ŠŒŒ˜ž—Â?’—Â?ȹŠ—Â?ČąÂ?Â’ÂœÂŒÂ•Â˜ÂœÂžÂ›ÂŽČąÂ’ÂœÂœÂžÂŽÂœČąÂœÂ™ÂŽÂŒÂ’Ä™ÂŒČąÂ?Â˜ČąÂ?˜Â&#x;Ž›—–Ž—Â?Š•ȹ entities such as reporting entities, management's discussion and analysis, leases, cash and investments (valuation and disclosure), compensated absences, •Š—Â?Ä™Â•Â•ČąÂŒÂ•Â˜ÂœÂžÂ›ÂŽČąÂŠÂ—Â?ČąÂ™Â˜ÂœÂ?ČąÂŒÂ•Â˜ÂœÂžÂ›ÂŽČąÂŒÂŠÂ›ÂŽČąÂŒÂ˜ÂœÂ?ÂœÇ°ČąÂ—Â˜Â—ČŹÂŽÂĄÂŒÂ‘ÂŠÂ—Â?ÂŽČą Â?›Š—œŠŒÂ?Â’Â˜Â—ÂœÇ°ČąÂ›Â’ÂœÂ”ČąÄ™Â—ÂŠÂ—ÂŒÂ’Â—Â?ȹŠ—Â?ČąÂ’Â—ÂœÂžÂ›ÂŠÂ—ÂŒÂŽČąÂ›ÂŽÂ•ÂŠÂ?ÂŽÂ?Čą activities, capital assets, debt and other obligations, Â™ÂŽÂ—ÂœÂ’Â˜Â—ÂœÇ°ČąÂ™Â˜ÂœÂ?ČąÂŽÂ–Â™Â•Â˜Â˘Â–ÂŽÂ—Â?ȹ‹Ž—ŽęÂ?ÂœÇ°ČąÂŽÂ?žŒŠÂ?Â’Â˜Â—ÂŠÂ•ČąÂŠÂ—Â?Čą other governmental entities.

In your words‌ ŠŒ’•’Â?Â˘ČąÂ ÂŠÂœČąÂ?›ŽŠÂ?ȹŠ—Â?ČąÂ?Â‘ÂŽČąÂ‹ÂŽÂœÂ?ČąÂŒÂ‘ÂŠÂ’Â›ÂœČąÂŠÂ?ȹŠ—¢ȹ Čą ȹ‘ŠÂ&#x;ŽȹŽÂ&#x;Ž›ȹ ŠĴŽ—Â?ÂŽÂ?ÇŻČą ŽŠ••¢ȹ•’”ŽÂ?ČąÂ?Â‘ÂŽČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›Ç°Čą ÂŠÂ›ÂŒÂ’Čą Â‘Â˜Â–ÂŠÂœÇ°ČąÂœÂ‘ÂŽČąÂ?ŠÂ&#x;ÂŽČąÂ?›ŽŠÂ?Čą examples throughout which makes for a much more interesting ÇŻ ÂŽÂœÂ?ČąÂ•Â˜ÂŒÂŠÂ?Â’Â˜Â—ČąÂŽÂ&#x;Ž›ǯȹ Â˜Â—Č‡Â?ȹ‘ŠÂ&#x;ÂŽČąÂ?Â˜ČąÄ™Â?‘Â?ČąÂ?‘ŠÂ?ČąÂ?˜ —Â?Â˜Â Â—ČąÂ?Â›ÂŠÄœÂŒÇŻ ČąÂŠÂ•Â ÂŠÂ˘ÂœČąÂŽÂ—Â“Â˜Â˘Čą ÂŠÂ›ÂŒÂ’Čą Â‘Â˜Â–ÂŠÂœČ‡ČąÂŒÂ•ÂŠÂœÂœÂŽÂœÇŻČą Â‘ÂŽČąÂ’ÂœČąÂ”Â—Â˜Â Â•ÂŽÂ?Â?ŽŠ‹•Žǰȹ entertaining, and is more than willing to answer questions Â?‘›˜žÂ?‘˜žÂ?ČąÂ?‘Žȹ¢ŽŠ›ǯȹ ČąÂ?›ŽŠÂ?Čą ČąÂ’Â—ÂœÂ?›žŒÂ?Â˜Â›ČąÂ?Â˜ČąÂŠÂ?Â?ČąÂ?Â˜ČąÂ–Â˘Čą contact list!

ŒŒ˜ž—Â?’—Â?ȹǭȹ žÂ?Â’Â?’—Â?Čą ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąČŠČą ÂŽÂŒÂŽÂ–Â‹ÂŽÂ›ČąĹœČŹĹ?Ç°Čą ‘Š›•ŽœÂ?˜— This end of the year highlight for accounting and auditing Â‘Â˜ÂžÂ›ÂœČąÂ ÂŠÂœČąÂŠČąÂœÂžÂŒÂŒÂŽÂœÂœÇŻČą Ž•Â?ȹŠÂ?ČąÂ?‘Žȹ ÂŠÂ›Â›Â’Â˜Ä´Čą ‘Š›•ŽœÂ?Â˜Â—Ç°ČąÂ?‘Žȹ Œ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąÂ?ŽŠÂ?ž›ŽÂ?ČąÂœÂ™ÂŽÂŠÂ”ÂŽÂ›ÂœČąÂŠÂ—Â?ČąÂ?Â˜Â™Â’ÂŒÂœČąÂœÂžÂŒÂ‘ČąÂŠÂœČą ÂŽÂ Čą Model Revenue Recognition, Going Concern and Special ÂžÂ›Â™Â˜ÂœÂŽČą Â›ÂŠÂ–ÂŽÂ Â˜Â›Â”Čą Ž™˜›Â?’—Â?ȹ‹¢ȹ ÂŽÂ‹ÂŽÂŒÂŒÂŠČą ŽŽDzȹ Žœ”Â?Â˜Â™Čą Tools for Preventing & Detecting Fraud, Internal Controls for Computing Remote Access and Accountants’ Bag ˜Â?Čą Â›Â’ÂŒÂ”ÂœČąÂ‹Â˘Čą Â‘Â›Â’ÂœČą ‘’Â?ꎕÂ?ČąÂ˜Â?Čą Ĺ˜Čą —Â?ÂŽÂ›Â™Â›Â’ÂœÂŽÂœÇ°Čą Čą Update by Michael Auerbach of the U. S. Department of ÂŠÂ‹Â˜Â›Ç°ČąÂŠÂ—Â?Čą ›’Â&#x;ŠÂ?ÂŽČą Â˜Â–Â™ÂŠÂ—Â˘Čą Ž™˜›Â?’—Â?Čą ™Â?ŠÂ?ÂŽČąÂ?Â›Â˜Â–Čą Žěȹ ÂŽÂŒÂ‘ÂŠÂ—Â’ÂŒÂ”ČąÂ˜Â?ČąÂ?‘Žȹ ÂŽÂ?Ž›Š•ȹ ŒŒ˜ž—Â?’—Â?Čą Â?Š—Â?Š›Â?ÂœČą ˜Š›Â?ÇŻ

In your words‌ Â‘Â’ÂœČąÂ ÂŠÂœČąÂ–Â˘ČąÄ™Â›ÂœÂ?ČąÂ?’–ŽȹŠĴŽ—Â?’—Â?ČąÂ?Â‘Â’ÂœČąÂŒÂ˜Â—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąÂŠÂ—Â?ČąÂ ÂŠÂœČąÂ‹Â˘ČąÂ?Š›ȹ Â?Â‘ÂŽČąÂ‹ÂŽÂœÂ?Čą Ç­ ȹž™Â?ŠÂ?ÂŽČą ȹ‘ŠÂ&#x;ŽȹŽÂ&#x;Ž›ȹÂ?Š”Ž—ǯȹ ČąÂ Â’Â•Â•ČąÂ‹ÂŽČąÂ‹ÂŠÂŒÂ”ČąÂ—ÂŽÂĄÂ?ȹ¢ŽŠ›ǯ Â‘Â’ÂœČąÂ’ÂœČąÂ–Â˘ČąÂ?‘’›Â?ČąÂ?’–ŽȹŠÂ?ČąÂ?‘Žȹ Ç­ ČąÂŒÂ˜Â—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽÇŻČą ȹę—Â?ȹ’Â?ČąÂ?Â˜ČąÂ‹ÂŽČą relevant and timely. I plan on coming back next year. Â‘Â’ÂœČąÂ’ÂœČąÂ?Â‘ÂŽČąÂœÂ’Â?—ŠÂ?ž›ŽȹŽÂ&#x;Ž—Â?ČąÂ˜Â?Čą ČąÂ’Â—ČąÂ–Â˘ČąÂ˜Â™Â’Â—Â’Â˜Â—ÇŻ Facility was very comfortable, parking easy, and food good.

Mega Conference * ÂœČąÂ’Â—Čą ÂžÂœÂ’Â—ÂŽÂœÂœČąÇ­Čą —Â?žœÂ?›¢ȹ ˜—Â?Ž›Ž—ŒŽ –Ž›Â?’—Â?Čą ŽŠÂ?ÂŽÂ›ÂœČą ˜—Â?Ž›Ž—ŒŽ Fraud Conference Small Firms Conference Â’Â—ÂŠÂ—ÂŒÂ’ÂŠÂ•Čą •Š——’—Â?Čą ˜—Â?Ž›Ž—ŒŽ Governmental Bonus Workshop Čą ž––’Â? ŒŒ˜ž—Â?’—Â?ȹǭȹ žÂ?Â’Â?’—Â?Čą ˜—Â?Ž›Ž—ŒŽ

April 25 May 16-17 September 19 September 26 October 17 October 23 November 5 November 13-14 December 5-6

Columbia Columbia Columbia Columbia Columbia West Columbia Columbia Columbia Charleston

Č˜ Â‘ÂŽČąĹ˜Ĺ–Ĺ—Ĺ™Čą ÂŽÂ?Šȹ ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąÂ Â’Â•Â•ČąÂŒÂ˜Â–Â‹Â’Â—ÂŽČąÂ?Â‘Â›ÂŽÂŽČąÂŠÂ›ÂŽÂŠÂœČąÂ˜Â?ȹ’—Â?Ž›ŽœÂ?ȹ’—Â?Â˜ČąÂ˜Â—ÂŽČąĹ—ČŹÂ?Š¢ȹ Œ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČąÂ Â’Â?‘ȹÂ?‘›ŽŽȹÂ?Â›ÂŠÂŒÂ”ÂœÇŻČą ‘Žȹ Ž—ŽęÂ?Čą Â•ÂŠÂ—ÂœÇ°Čą ˜Â&#x;Ž›—–Ž—Â?ȹŠ—Â?Čą ˜—™›˜ęÂ?Čą ˜—Â?ÂŽÂ›ÂŽÂ—ÂŒÂŽČą will be combined into one event, but you will have the opportunity to choose breakout sessions from all three areas.

Please note dates are subject to change.

Grand Strand Coastal Cluster

(888) 557-4814 | www.scacpa.org

July 10-12 August 12-14

Myrtle Beach Charleston

South Carolina CPA Report

35

Focus on CPE

SCACPA Announces Partnership with the Madray Group

T

he South Carolina Association of CPAs understands the ȱ ȱ ȱ Ȭ ¢ǰȱ relevant and engaging continuing ȱ ȱ ȱ ę ȱ public accountants. We have a commitment to excellence and welcome the opportunity to provide you with new and exciting courses for 2013. ȱ ȱ ě ȱ ȱ ȱ¢ ȱ ȱ best and brightest, SCACPA is proud to present J. Russell Madray, CPA as our newest partner in content and instruction. Russ Madray is president of The Madray Group, which helps ǰȱ ȱę ǰȱ ȱ other organizations understand and implement technical accounting and auditing issues. The Madray Group specializes in providing technical

reviews, inspection services, and technical assistance to small and ȱ £ ȱ ȱę ȱ throughout the U.S. As an author, Madray is responsible for several of the profession’s ȱ ǯȱ ȱ ȱ ȱ many of the AICPA’s publications ȱ ȱ ȱ ȱ ȱ ȱ ȱ Journal of Accountancy. In addition, ȱ ȱ ȱ ȱ ȱ ȱ each year on accounting and auditing topics and has made presentations in more than 40 states and several foreign countries.

Madray has an exclusive agreement for live group study, conferences and onsite training with SCACPA in South Carolina. He is available for full and half day programs,

and shorter conference sessions.

We encourage you to contact Reva Brennan to schedule Madray as soon as possible, dates are limited.

Programs that are available include: • The 2013 Accounting and Auditing Update • Compilation and Review Engagements • Small Business Accounting Update and Review • Ethics for South Carolina CPAs In addition to the above live programs, webinars and a selfstudy course of the Ethics for South Carolina CPAs are also available through this partnership, visit www. scacpa.org/webinars and www. scacpa.org/ethics to learn more.

2013-2014 Continuing Professional Education Schedule ȱ ȱ ȱ ȱ ȱ ȱ ȱ¢ ȱ ȱ ǰȱ ȱ ȱ ȱ ȱ ¢ȱ ǯȱ ȱ ȱ¢ ȱ ȱę ȱ ȱ ȱ ȱ ȱ ȱ ȱę ȱ¢ ȱ ǰȱ ǰȱ ȱ ȱ ȱ ȱ ȱ ǯȱ ȱ ȱ ȱ to stay up-to-date on our latest course listing at www.scacpa.org/CPE, more new programs appear all the time. This schedule is subject to change.

APRIL 2013 4/22, West Columbia Chief Financial Officer: Executive Level Skills for Financial Managers 4/23, West Columbia Financial Reporting: Turn Information into Action!

4/24, Spartanburg Accounting & Auditing Update 4/25, Columbia Mega Conference (benefit plans, government, nonprofits)

MAY 2013 5/16-17, Columbia CPAs in Business & Industry Conference 5/20, West Columbia Excel 2013 for CPAs

36

South Carolina CPA Report

5/21, West Columbia QuickBooks 2013 for CPAs 5/23, West Columbia Loscalzo's Not-for-Profit and Governmental Update 5/24, West Columbia Loscalzo's Not-for-Profit Auditing Made Easy 5/28, West Columbia Loscalzo's Audits of Defined Contribution Pension Plans (Emphasizing 401k Plans)

JUNE 2013

6/7, West Columbia iPad - Advanced Configuration Settings and Content Management 6/7, West Columbia Using the iPad and the Cloud to Manage Your Documents on the Go 6/10, West Columbia Revised Yellow Book: Government Auditing Standards 6/11-12, West Columbia Comprehensive FASB Standards

6/6, West Columbia 10 Steps to a Digital Office in the Cloud

6/24, West Columbia Professional Ethics for South Carolina CPAs

6/6, West Columbia Adobe Acrobat Advanced Tips, Tricks & Techniques

6/25, West Columbia 2013 FASB and AICPA Update

JULY 2013 7/15, Myrtle Beach 2013 FASB and AICPA Update 7/15, Myrtle Beach Fiduciary Income Tax Returns Form 1041 Workshop 7/16, Myrtle Beach Loscalzo's Deceptive Revenue Recognition and Other Accounting Techniques - Recognizing the Warning Signs 7/16, Myrtle Beach The Best Income Tax, Estate Tax, and Financial Planning Ideas of 2013

7/30, West Columbia Advanced Strategies for S Corporations 7/31, West Columbia Social Security and Medicare

AUGUST 2013 8/12, Charleston Forensic Accounting: A Comprehensive Guide to Conducting Financial Fraud Investigations 8/12, Charleston Tax Strategies for Businesses

7/17, Myrtle Beach Using Tax Basis and other Special Purpose Frameworks Presentations Effectively

8/13, Charleston Exploring the Updated Internal Control Framework: Critical Concepts in Design, Evaluation, Implementation and Monitoring

7/17, Myrtle Beach Surgent McCoy's Multistate Tax Update

8/13, Charleston 2013 Hot Tax Topics (888) 557-4814 | www.scacpa.org

Focus on CPE 8/14, Charleston Occupational Fraud: The Top 50 Tips on How to Prevent Executives, Managers and Employees from Stealing and Not Getting Caught 8/14, Charleston The Life of a Business Entity 8/19, Rock Hill SC Ethics-AM 8/19, Rock Hill Professional Issues Update-PM 8/21, West Columbia Excel Based Dashboards 8/22, West Columbia Cloud Computing 8/26, Florence SC Ethics-AM 8/26, Florence Professional Issues Update-PM

9/23, Anderson SC Ethics-AM

10/17, Columbia Small Firms Conference

9/23, Anderson Professional Issues Update-PM

10/18, West Columbia Update for Accountants and Auditors

9/23, West Columbia Financial Reporting Framework for Small and Medium Sized Entities 9/24, Greenville Professional Issues Update-AM 9/24, Greenville SC Ethics-PM 9/24, West Columbia Audit Workpapers: Documenting and Reviewing Field Work 9/25, Spartanburg Professional Issues Update-AM 9/25, Spartanburg SC Ethics-PM

8/27, Myrtle Beach Professional Issues Update-AM

9/25, West Columbia Performing an Engagement Review

8/27, Myrtle Beach SC Ethics-PM

9/26, Columbia Fraud Conference co-sponsored with Palmetto Chapter of ACFE

SEPTEMBER 2013 9/16, Greenville From Hiring to Firing and Everything in Between: Legal, Tax and Health Care Issues 9/16, Greenville FASB Industry Review 9/17, Greenville Current Developments and Best Practices for Today's CFOs and Controllers 9/17, Greenville Exploring Internal Control Deficiencies 9/18, Greenville CFO/Controller's Roadmap to Organization Success with Integrated Planning, Budgeting and Forecasting 9/18, Greenville OCBOA Financial Statements Greenville 9/19, Columbia Emerging Leaders Conference

OCTOBER 2013 10/3, Charleston Professional Issues Update-AM 10/3, Charleston SC Ethics-PM 10/4, Hilton Head Professional Issues Update-AM 10/4, Hilton Head SC Ethics-PM 10/7, Columbia SC Ethics-AM 10/7, Columbia Professional Issues Update-PM 10/16, West Columbia Loscalzo's Tax Practitioner's Guide to Accounting and Reporting Issues 10/17, West Columbia Loscalzo's Frequently Asked Questions on Not-for-Profit Accounting, Auditing, Governance and Disclosure Topics

(888) 557-4814 | www.scacpa.org

10/22, Columbia Financial Planning Conference 10/23, West Columbia Creating the Best Projections You Can: Insights and Techniques 10/23, West Columbia Ethics and Sustainability: Profit from Doing Good 10/24, Greenville Estate Planning Under the New Tax Law 10/24, West Columbia Corporate Finance Check-up: Renovate Your Analytical Toolbox 10/25, Greenville Trust Workshop 10/25, West Columbia Acquisitions to Grow the Business: Strategy, Structure, Integration and Due Diligence 10/28, West Columbia Determining How Much Money You Need to Retire, and Tax Ideas and Money Management in Retirement 10/29, West Columbia Surgent McCoy's Comprehensive Guide to Tax Depreciation, Amortization, and Property Transactions from Acquisition to Exchange or Disposition 10/30, West Columbia Shortcuts to Tax Cuts: Individual, Social Security & Retirement Planning Tools and Strategies

NOVEMBER 2013 11/5, Columbia Governmental Bonus Workshop 11/6, Greenville Top 12 Audit Issues

11/7, Greenville Auditor/Accountant Communications 11/13-14, Columbia CPA Summit 11/18, West Columbia The Complete Guide to Payroll Taxes and 1099 Issues 11/19, West Columbia Surgent McCoy's Top 10 Tax Issues in Dealing with LLC's and Partnerships 11/20, West Columbia How to Settle an Estate for a Client from A to Z 11/21, West Columbia Estate and Life Planning Issues for the Middle-Income Client 11/25, West Columbia Fraud & Abuse in Not-for-Profit Entities and Governments: Stealing from Everyone 11/26, West Columbia OMB A-133 from A to Z West Columbia

DECEMBER 2013 12/2, Columbia Professional Ethics for South Carolina CPAs 12/2, Greenville Federal Tax Update with Walter Nunnallee 12/3, Greenville Loscalzo's Analyzing Financial Statements, Including Techniques for Cash Flow Analysis 12/4, Greenville Getting Ready for Busy Season: A Guide to New Forms, Filing Issues and Other Critical Developments 12/5, West Columbia Surgent McCoy's Advanced Individual Income Tax Return Issues 12/5-6, Charleston Accounting & Auditing Conference

12/9, West Columbia Construction Contractors: Critical Accounting, Auditing and Tax Issues in Today's Environment 12/10, West Columbia Revenue Recognition: A New Day is Dawning 12/11, West Columbia Loscalzo's GAAP Refresher 12/12, West Columbia Loscalzo's Improve Your Accounting and Finance Team Effectiveness 12/16, Columbia Federal Tax Update with Walter Nunnallee 12/16, West Columbia Excel Pivot Tables for Accountants 12/17, West Columbia Paperless Office 12/18, West Columbia Ethics in the Real World: Living Values for Today 12/18, West Columbia How Good Companies Become Great: Secrets to Success 12/19, Greenville Risk Analysis and Management: What Every Financial Manager Must Know 12/19, West Columbia Loscalzo's Compilation and Review Essentials - Rules for Local Practitioners 12/20, Greenville Metrics Management: Choose and Use Key Performance Indicators 12/20, West Columbia 2013 FASB and AICPA Update 12/30, Myrtle Beach Federal Tax Update with Walter Nunnallee 12/31, Charleston Federal Tax Update with Walter Nunnallee

South Carolina CPA Report

37

Classified

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Accounting Practice Sales www.accountingpracticesales.com Inside Back Cover ADP accountant.ADP.com Page 7 American Pensions www.ampen.com Inside Front Cover Aon/BB&T Insurance Services/ AICPA Professional Liability Insurance Program www.cpai.com Page 4 CGMA www.cgma.org Page 13 Copper Dome Strategies, LLC www.HSBCooperDome.com Page 15 Jerry Meek www.jerrymeek.com page 16 John F. Hamilton, CPA JOHNFH@aol.com Page 32

ČŹ Čą(continued from 27) Sylvan Poser reported for the DOR Š—Â?ČąÂŠÂ—ÂœÂ ÂŽÂ›ÂŽÂ?ČąÂšÂžÂŽÂœÂ?Â’Â˜Â—ÂœČąÂ?Â›Â˜Â–Čą ÂŒÂ˜Â–Â–Â’Ä´ÂŽÂŽČąÂ–ÂŽÂ–Â‹ÂŽÂ›ÂœČąÂ˜Â—ČąÂ™Â›Â˜Â™ÂŽÂ›Â?¢ȹ Š—Â?ČąÂœÂŠÂ•ÂŽÂœČąÂ?ÂŠÂĄČąÂ’ÂœÂœÂžÂŽÂœÇŻČąČą Â‘ÂŽÂŒÂ”ČąÂ?‘Žȹ box on returns does not replace Šȹ ČąÂ?Â˜Â›ČąÂ?Â‘ÂŽČąÂ˘ÂŽÂŠÂ›ČąÂ’Â—ČąÂšÂžÂŽÂœÂ?Â’Â˜Â—ČąÂ’Â—Čą allowing a dialogue between a return preparer and DOR. In the area of Žȏꕎǰȹ–ŽÂ?‘˜Â?ČąÂ˜Â?ȹ›ŽÂ?ž—Â?ČąÂŒÂŠÂ—ČąÂ—Â˜Â ČąÂ‹ÂŽČą œŽ•ŽŒÂ?ÂŽÂ?ČąÂŽÂ•ÂŽÂŒÂ?Â›Â˜Â—Â’ÂŒÂŠÂ•Â•Â˘Ç°ČąÂ™ÂŠÂ™ÂŽÂ›ČąÂŒÂ‘ÂŽÂŒÂ”Ç°Čą debit card, or electronic transfer.

Corporate returns should be able Â?Â˜ČąÂ‹ÂŽČąÂŽČŹÄ™Â•ÂŽÂ?ČąÂœÂ˜Â˜Â—ÂŽÂ›ČąÂ?Â‘Â’ÂœČąÂ˘ÂŽÂŠÂ›ČąÂ?‘Š—ȹ last. Even though a corporation Â‘ÂŠÂœČąÂ—Â˜Â?ČąÂ›ÂŽÂ•Â’Â—ÂšÂžÂ’ÂœÂ‘ÂŽÂ?ȹ’Â?ÂœČąÂŒÂ˜Â›Â™Â˜Â›ÂŠÂ?ÂŽČą charter with the secretary of state, a ÂŁÂŽÂ›Â˜ČąÂ›ÂŽÂ?ž›—ȹÂ?Â˜ÂŽÂœČąÂ—Â˜Â?ȹ‘ŠÂ&#x;ÂŽČąÂ?Â˜ČąÂ‹ÂŽČąÄ™Â•ÂŽÂ?Čą

38

South Carolina CPA Report

Â’Â?ȹŠȹꗊ•ȹ›ŽÂ?ÂžÂ›Â—ČąÂ‘ÂŠÂœČąÂ‹ÂŽÂŽÂ—ČąÄ™Â•ÂŽÂ?ȹ ’Â?‘ȹ DOR. There are no current plans Â?Â˜ČąÂ?ÂŽÂ&#x;ÂŽÂ•Â˜Â™ČąÂŽÂ•ÂŽÂŒÂ?Â›Â˜Â—Â’ÂŒČąÄ™Â•Â’Â—Â?ČąÂ?Â˜Â›Čą Čą ™Š›Â?Â—ÂŽÂ›ÂœÂ‘Â’Â™ČąÂŠÂ—Â?ȹęÂ?ÂžÂŒÂ’ÂŠÂ›Â˘ČąÂ?Š¥ȹ›ŽÂ?ÂžÂ›Â—ÂœÇŻČąČą Two new items with SCBOS are being rolled-out. E-sales payments will begin going to SCBOS and payment scheduling will be an option with SCBOS. All of DOR will be moved to Â?‘Žȹ žÂ?•ŽÂ?Čą ˜’—Â?Čą ÂŠÂ•Â•ČąÇťÂ˜Â•Â?Čą ÂŠÂ–Â›Â’ÂŒÂ”Č‚ÂœÇźČą ‹¢ȹÂ?Â‘ÂŽČąÄ™Â›ÂœÂ?ČąÂ˜Â?ČąÂ?‘Žȹ¢ŽŠ›ǯȹ„ Caroline D. Strobel, CPA, is a professor of accounting at the USC Moore School of Business. She is a member of SCACPA’s Taxation Committee and previously served on the CPE Committee.

Richardson Plowden Attorneys at Law www.richardsonplowden.com Page 10

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