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					                                       Texas Taxing Times
                                                                                                     Winter 2010

                                             New Chapter President’s Message
                                                                         Brett Rosser

                                      Hello fellow Tax Professionals! If you were not at the 2010 Annual Meeting in
                                      Fort Worth, TX this past November, then you missed one of the best educational
                                      seminars the Texas Chapter has ever put on!

                                      Beanna Whitlock prepared a special class for the Texas Chapter titled
                                      “Sale, Conversion and Disposition of Assets” and the reception for the attendees
 “I would like to express my          was great! Janet Spies from the Comptroller Office once again enlightened us on
 appreciation for the vote of         the Franchise Tax. I believe most everyone in attendance learned more than one
confidence from our members           new thing [see pg.s 2-4 herein for more].
 for electing me as the 2011
 Texas Chapter President.”            Please consider attending the classes hosted by TX-NATP next time!

                                      The year 2010 was a very eventful year. Texas NATP hosted the NATP Annual
                                      Convention in Austin. The response by the Texas Members was amazing and
                                      again, a very big “Thank You” goes out to all the volunteers who helped put this on.
2-4    2010 Fall Seminar              The year 2011 will have many changes that we must consider - The new Preparer
                                      Licensing requirement, when will the IRS have Preparer Testing in place???
5    More PTIN Tips                   The IRS is also looking at making education providers submit the education
                                      material and have it approved before providing the education. And who knows
6    Textbooks 4 Sale
                                      what tax credits will be renewed or allowed to expire before the end of the year (or
7    TX Chapter Board of              created)? What fun we will have the next few months!
                                      I would like to express my appreciation for the vote of confidence from our
8    Meet Newly Elected Board
                                      members for electing me as the 2011 Texas Chapter President. I hope that I, along
     Director & Chapter
     Secretary                        with the other board members, can continue the great things that have occurred
                                      under our retiring president, Karen Coombes. She has done a wonderful job and a
9    Starting & Promoting             big “Thanks” goes out to her for all her hard work and dedication to bettering this
     a Small Suburban                 organization.
     Tax Practice

10    IRS PLM Meeting Report          If you ever have a question or concern about your Texas NATP chapter, please do
     [11.17.2010]                     not hesitate to let a board member know. The Board is here to help you get the
11   [IRS E-File Products,            most out of your membership [see pg. 7 herein for contact information].
     Relief for Late Classification
     & Education Ideas???             Here‟s to a bright and prosperous 2011 to all,
12    Calendar of Events              Brett Rosser
Page 2 of 12                                                             Winter 2010 Texas Taxing Times

2010 Fall Seminar
By Denise Mendez, TX NATP Chapter Director

The TX Chapter hosted its annual Fall Seminar on November 1 & 2 at
the American Airlines Training & Conference Center in Fort Worth, TX.

Those who attended were privileged to learn more about the Texas
Franchise Long Form Tax Report from Janet Spies of the TX
Comptroller‟s Office and had the opportunity to express their concerns
and ask additional questions.

Dorothy “Dot” Atchison, E.A. joined us from the NATP National Board
and reiterated the many benefits NATP has to offer, including over 300
educational courses, a FREE tax research question per year and a
reasonable price for those thereafter, the opportunity for members‟                   Janet Spies,
views to be expressed to IRS, Congress and the media, and a great             Comptroller of Public Accounts
referral program through Member 2 Member.

NATP is one of the largest and fastest growing organizations for tax
professionals with nearly 21,000 members. We all should be honored to
be part of such an established, accomplished organization.

                                                         After a gourmet lunch buffet, Beanna Whitlock, E. A.,
 “NATP offers over 300                                   CSA presented the “Ugly 1040”. Beanna presented a
 educational courses, a                                  very “Ugly” case study and also challenged us to
FREE research question                                   estimate the tax preparation fees, before and after the
    per year and an                                      interview process with the “taxpayer”.
opportunity for members’                                 Several issues were discussed in the case study, from
      views to be                                        specifics as the address on the return to dependency
     expressed…”.                                        issues, vacation properties vs. rental, abandoned
                                                         partnerships and estate issues just to name a few.
                                                         For example, the IRS requires a physical address on
                                                         returns unless it is not possible to receive mail at the
                               Dorothy Atchison, E. A.   physical address.
                                National Board Member    Also, when children are involved, a divorce decree
                                                         typically cannot be relied upon with dependency issues
                                                         unless it outlines the same “language” as Form 8832.
                                                         This case study covered it all and more, including some
                                                         great resources.

                                 Former TX               Beanna continued the afternoon with a discussion about
                                 Chapter President       Due Diligence/Section 7216 as tax professionals,
                                 Karen Coombes           including our diligence regarding disclosure and related
                                 & Beanna J.             parties. Beanna also presented several court cases in
                                 Whitlock,               which tax preparers were found guilty of not abiding by
                                 EA, CSA                 Section 7216.
Page 3 of 12                                                               Winter 2010 Texas Taxing Times

2010 Fall Seminar ~Continued~

An Annual Banquet Dinner & Scholarship Fund Auction was held the evening of
Monday, Nov. 1.
The new TX Chapter Board of Directors was sworn in and a farewell was said to Karen
Coombes, TX NATP Chapter president of 5 years. Thanks again for your dedication,
Karen, to the TX Chapter! Karen may no longer be the TX Chapter President but will
continue to serve the chapter she has dedicated her time to for so many years.
We, as a chapter, are glad to have her as an active member.                                     Karen Coombes, former TX
A variety of items were auctioned and $855.00 was raised for the TX NATP Chapter                Chapter president was
Scholarship Fund! Thanks to all who participated in the auction and who were present            presented a saddle blanket, a
                                                                                                gift to fuel her passion, for her
at the Annual Meeting.
                                                                                                commitment to the TX

       Brett Rosser, newly nominated TX Chapter president showed his auctioneer talents while Karen Coombes,
       former TX Chapter president; and Denise Mendez, TX Chapter Director presented auction items.

 Beanna Whitlock began the second educational day with a newly developed presentation, specially requested by
 Karen Coombes on behalf of TX NATP members, and dedicated by Beanna to the members of the TX NATP
 Chapter titled “Sale, Conversion and Disposition of Assets”.

 Beanna not only tailored this presentation to the Texas Tax Professional by discussing in detail the disposition of
 oil and gas interests, but also covered the sale of a business vehicle, realized events on retirement plan assets,
 personal assets, the abandonment of a personal residence, and worthless & abandoned assets,

 Beanna‟s presentation was so well outlined and informative, one TX member commented, „There should have
 been more time allowed for this presentation‟.

 This will definitely be taken into consideration by NATP when Beanna presents this class in the future.
 Page 4 of 12                                                             Winter 2010 Texas Taxing Times

                             Have you registered for your PTIN yet ???
                                                2010 Fall Seminar ~Continued~

Many of us thought it would be a smart idea to wait until    7. Your debit or credit card to pay the $64.25 fee.
all of the bugs were worked out before submitting our        The PTIN process begins by setting up your account and
application for our PTIN‟s                                   the IRS will email you a password in order to continue.
Well, that may not be as smart of an idea as one thinks!     WARNING: It has been reported that those individuals who
My hat goes off to those who worked diligently to acquire    use either “GMAIL” or GODADDY”, both web based email
their PTIN‟s when the process first started. Those           services, have not received the email from the IRS as it
individuals uncovered many of the problems that were         goes into the spam or junk folder. Before you begin the
subsequently resolved for those of us who took the “wait     PTIN process, you should update your security filter to
a while” attitude.                                           “Allow”     email    from     the    following     address:
 I know many who have said they were going to wait until
December before applying. You might want to re-think         So who exactly needs to get a PTIN?
that also! If everyone waits, then the system will be just   Well, according to the IRS, “Any individual who is
as bogged down as it was in the beginning.                   compensated for preparing or assisting in the preparation
                                                             of, all or substantially all of a U.S. federal tax return or
Here are some things to keep in mind and to have
                                                             claim for refund”.
available when you start your PTIN process:
                                                             Now, the interesting thing here is that this does not mean
1. Make sure you have your permanent mailing address
                                                             those who just prepare Forms 1040/1065/1120/1120-S. It
   and your PTIN address. The PTIN address is actually       also applies to payroll tax returns such as the 941 and
   the address you use on your personal tax return.          940‟s! So if you have staff members who prepare any of
2. You will be required to enter your SSN, your birth date   these forms, they will need their own PTIN as well.
   and your EIN if you have one.                             This means they too must pay the $64.25 and they will be
3. You will also need to provide your AGI from your last     required to pass competency tests relevant to the type of
   return [if you filed your 2009 return after September     work they perform (i.e. if all they do is payroll, they will
                                                             have to pass the competency exam once it becomes
   1, I recommend you use your 2008 return). This
   information is all used to authenticate who you are
   and thereby duplicate your original PTIN if you           When will that be? Sometime in the next 3 years! But in
   previously had one.                                       the meantime, they have to register every year for their
                                                             PTIN, just as we do.
   PTIN already, it should be re-assigned to you (mine       Competency exams will be required by tax preparers who
   was but I know a few who have received new PTIN‟s         are not already credentialed [i.e. if you are not a CPA, EA
                                                             or an attorney]. Exams, other than payroll, are scheduled
   for some unexplained reason, most likely because the
                                                             to roll out sometime in the summer of 2011.
   system could not authenticate who they were back to
   their original PTIN).                                     Be reassured, though, NATP will keep you updated on all
5. You will have to put in your professional credentials     exams once information is shared. In the meantime,
   including your certification number and the state of      happy PTIN getting!
   issuance. And by the way, these have to be U.S.
                                                             Merry Christmas!
   based professional certifications.
                                                             Susan J. Cartmill, CPA
6. Be ready to offer any explanations for any felony
                                                             Vice President, TX NATP
   convictions and explain any problems with your
   federal tax obligations.
 Page 5 of 12                                                               Winter 2010 Texas Taxing Times

      More PTIN Triumphs & Struggles
      By a fellow tax preparer in the Austin area
 The online registration worked like a charm for me!
 I even entered my CAF# with the R at the end
 because it fit in the box. They must have enlarged           More Tips [from members at Essential 1040 Workshop]
 It assigned me my already established PTIN, which            1. Do not include the suffix on your ZIP code.
 shows up on the confirmation. I'm good to go for a
 year!                                                        2. If you already have a PTIN but have forgotten your
                                                                 password, request a temporary password.
 The only problem I had was entering my temporary                CAUTION: If your temp. password has a #1 in it, these
 password, which would not take even though it was
                                                                 have appeared not to work.
 emailed to me.
                                                              3. Use the PTIN Online Help Desk for Assistance.
 Then I read the instructions for entering it. Duh!
 Instead of typing the temporary password, copy

 and paste it from the e-mail.
 I was interpreting one of the characters wrong and
 until I pasted it (instead of manually typing it) in the
 box, I continued to fail the login process.

More about PTIN Requirements…                                         Dear Texas NATP,
                                                                      I would like to thank you again for choosing
Should Non-Signing Preparers Register for PTINs?
                                                                      me as your scholarship recipient. I am
IRS Commissioner Doug Shulman told participants of the
AICPA National Tax Conference the beginning of
                                                                      attending Texas A&M University in College
November that non-signing preparer employees of                       Station and majoring in Agricultural
licensed tax practitioners will “likely” be exempt from the           Economics.
testing and continuing education of the preparer tax
identification number (PTIN) requirements.
                                                                      Once I earn my bachelor's degree, receiving
                                                                      my Master's degree will become my next
He offered that additional guidance is expected by year-              priority. I plan on working in the political field
end. The Commissioner and other IRS executives at the
conference clearly stated that these non-signing preparers
                                                                      with my number one goal being to become the
will still need to register for PTINs and pay the user fees           Texas Commissioner of Agriculture.
before preparing any federal tax returns in 2011.                     I plan on using the scholarship money to buy
The natural preference is to wait until the IRS guidance is
                                                                      my books and to cover other expenses I will
released, but waiting comes with its own problems. It is              have, such as food or school supplies.
sometimes difficult to obtain a PTIN by way of the online             Again I would like to thank you for the
PTIN application system, and the telephone hotline is
frequently nonresponsive. The IRS asserts that it takes
                                                                      scholarship. I will make y'all proud.
four to six weeks for the paper application to process.               Sincerely,
                                                                       Tyler Rosser, Scholarship Recipient
CPA firms should weigh their options and the risk that they
would have staff that is not qualified to prepare returns
because of failure to have a proper PTIN by January 2011.
 Page 6 of 12                                                           Winter 2010 Texas Taxing Times

                                                                          Other Must Have Textbooks
         2010 Fall Seminar Textbooks 4 Sale                                     Still Available…

  Several attendees commented on their evaluation forms                  2009 FALL SEMINAR text contents
  that this was the best seminar ever!                                         [by Sue Voth, E.A.]
  If you couldn‟t make it, don‟t worry - you haven‟t missed     32 pages on Social Security Tax Planning –
  out completely.                                                   interesting SS facts, how SS tax is computed,
                                                                    who qualifies, how benefits are computed (with
           We have a few extra textbooks just for you!              detailed, step-by-step instructions), survivor
  Our featured speaker was Beanna Whitlock and, as                  benefits, disability benefits, and strategies to
  usual, she provided excellent texts for her presentations.        reduce SS tax and maximize benefits
                                                                44 pages on Fringe Benefits - descriptions of fringe
  Included in the 2010 Fall Seminar text:                            benefits and their effects on sole proprietors,
                                                                     partnerships, LLC's, corporations and S-
  1. Complete forms and instructions for the TX Franchise            corporations
     Tax Return (over 50 pages) from the TX Comptroller         37 pages on Financial Distress - bankruptcy,
     office                                                          abandonment, foreclosure, short sales,
  2. “The Ugly 1040” by Beanna Whitlock – 55 pages – a               solvent/insolvent taxpayer and Form 982
     comprehensive       example      of   several     „tax     41 pages on Recent Rulings, procedures and Court
                                                                     Cases - chock full of examples, facts,
     issues/problems‟ that come up when preparing returns            backgrounds, court cases, and IRS analysis
  3. “Return Information Disclosure” by Beanna Whitlock –            and holdings
     28 pages of information on code section 7216, return
                                                               Also included:
     preparer disclosure issues                                 How to use the STAR (State Tax Automated
  4. “Sale, Conversion and Disposition of Assets” by                   Research) System
     Beanna Whitlock – 40 pages total – 15 pages on oil &       Attorney General of Texas - information on Child
     gas properties, 13 pages on autos, plus retirement                Support Division Employer Services and New
     plans, personal use assets, abandonment of personal               Hire Reporting requirements and employer
     residence and worthless & abandoned assts                  Scenarios prepared for ethics discussion and
  5. “Pride, Passion & Penalty… Pride, Revisited” by                   Circular 230 Update by the IRS
     Beanna Whitlock – 28 pages of Ethics                       EIC Due Diligence Requirements - discussion
  6. Insurance Products presentation by Bryant Cook of                 slides and examples
     Liberty Mutual                                             Debt Free Living - discussion slides and statistics
  7. Three Power Points from the IRS – “New Rules for                 2010 WINTER SEMINAR text contents
     Federal Tax Preparers”, “IRS e-file Nuts & Bolts” and                 [by Beanna Whitlock, E.A.]
     “Overview of 2010 Income Tax Law Changes”                  79 pages of Tax Season Review, Are You Ready?
                                                                    - tax season update for 2009 returns, lots of
                                                                    useful information for fingertip reference
    To order, mail your check, payable to TEXAS NATP to:        30 pages of Ethics - the evolution of ethics, current
                         Melissa Lewis                              examples, disclosure letter samples and some
                                                                    great ethical quotes
                       1301 Holliday St
                                                                32 pages on Choice of Entity - follow George the
                    Wichita Falls, TX 76301                         plumber as he investigates the requirements
                                                                    and benefits of setting up his business as a sole
Prices, including shipping, are:
                                                                    proprietor, a partnership, a corporation, an S-
                $50 for 2010 Fall Seminar [above]                   corp, or as an LLC
                $15 for 2009 Fall Seminar [right]
                                                                 The last 30 pages, from the Texas Comptroller,
                $10 for 2010 Winter Seminar [right]
                                                                Franchise Tax Legislative & Filing Update - 81st
Call Melissa at 940-767-5234 or Brett Rosser at 936-642-2708        Legislative Session Update - no more initial
                     with any questions.                            returns to file, threshold increases, etc with a
                                                                    thorough overview of Franchise Tax forms and
Page 7 of 12                                                                  Winter 2010 Texas Taxing Times

            2010 ~ 2011 NATP Texas Chapter
                                                                                  DIRECTORS ~ CONTINUED~
                   Board of Directors
                                                                                   Toni McIntyre, CPA, E. A.
PRESIDENT                              VICE PRESIDENT                              PO Box 181335
Brett Rosser, E. A.                    Susan Cartmill, CPA                         Corpus Christi, TX 78480
1220 Rosser Lane                       2213 Cypress Court                
Groveton, TX 75845                     Flower Mound, TX 75028                      Cell/Office: 361-945-2688                                       Term Expires 2013
Office: 936-642-2708                   Office: 972-221-6431
Fax: 936-642-1565                      Fax: 972-221-6006                           Connie Staton
Term Expires 2012                      Term Expires 2011                           PO Box 10215
                                                                                   Midland, TX 79702
                                                                                   Office: 432-686-7638 OR
Gary Brown, CPA, CMA                   Melissa Lewis, E. A.
                                                                                   Toll Free: 888-851-4491
             CITP, PFS                 1301 Holliday St
                                                                                   Fax: 432-686-7438
5353 Williams Drive, Ste 200           Wichita Falls, TX 76301
                                                                                   Cell: 432-559-7705
Georgetown, TX 78633         
                                                                                   Term Expires 2012                      Office: 940-767-5234
Office: 512-930-3003                   Fax: 940-767-7791                           Denise Mendez
Fax: 512-864-2515                      Term Expires 2013                           3801 Sally Ln.
Term Expires 2013                                                                  Corpus Christi, TX 78414
                     DIRECTORS                                                     Cell: 361-834-1354
Carmen Garza                        Eric Amado, MBA                                Term Expires 2012
1001 E. Rio Grande                  1276 Winnipeg Dr.
Victoria, TX 77901                                                                 Alicia Lozano
                                    Lewisville, TX 75077                                                             2808 S. Richey Road
Office: 361-578-6481                                                               Houston, TX 77017
                                    Cell/Office: 214-354-1056
Fax: 361-578-6561                                                        
                                    Term Expires 2012
Term Expires 2013                                                                  Office: 713-910-8585
                                                                                   Term Expires 2011

                                                                                   Donna M Shook
                                                                                   4521 Bluefield Drive
                                                                                   Corpus Christi, TX 78413
                                                                                   Office: 361-854-5871
                                                                                   Fax: 361-853-7661
                                                                                   Cell: 361-548-7753
                                                                                   Term Expires 2011

2010 ~ 2011 Texas Chapter Board of Directors: From left, Gary Brown,
Melissa Lewis, Alicia Lozano, Susan Cartmill, Denise Mendez, Brett Rosser ,
Donna Shook, Toni McIntyre & Connie Staton. Also pictured is former TX
Chapter President, Karen Coombes.
Not pictured are Carmen Garza and Eric Amado.
Page 8 of 12                                                          Winter 2010 Texas Taxing Times

                                         Meet Gary Brown,
                              Newly Elected TX Chapter Board Director
Managing Director of a full service boutique CPA firm based in Georgetown specializing in tax, accounting,
and business management services, Gary Brown has over thirty years experience working with small
businesses and high net worth individuals. His background also includes experience in Chief Financial Officer
and senior management positions with such businesses as Astec International LTD (acquired by Emerson
Electric), Ralston Purina, Ford Motor Company, Honeywell, and Texas Instruments.
As a seasoned financial and operations executive, he has helped businesses varying in size from start-up to
Fortune 50 enhance profitability, build wealth for owners, and properly structure their financial activities for
acquisition, diversification, and growth opportunities. Using a strong service orientation combined with
business ethics and professionalism, he has helped clients develop sound tax planning strategies that include
utilization of deferred tax opportunities, wealth accumulation plans and achievement of retirement goals.
Married with one child, he has a degree in accounting from Montana State University, an MBA from Texas
Tech, plus is a Certified Management Accountant and has extensive training in tax, systems, and financial
Recognized in the Wall Street Journal as 2003 Financial Executive of Year by Robert Half International and
Institute of Management Accountants, his firm was recognized by the AICPA as one of the best users of
Human Capital by small firms in the United States.
He is currently on the Board of Directors and is an Ambassador for the Chamber plus is a graduate of
Leadership Georgetown and Round Rock, is a National Director at large and former National Vice President
of the Institute of Management Accountants serves as one of two CPAs in public practice on the Constructive
Enforcement Committee for the Texas State Board of Public Accountants plus is Chair of a Practice
Management Group of the Private Company Practice Section of the AICPA.
In addition, he is the immediate Past Chairman of the Round Rock Historic Commission and was National
President of the Stuart Cameron McLeod Society, a premier accounting organization comprised of individuals
who previously held leadership positions at the national level of the Institute of Management Accountants.
Gary also has qualified as a Personal Financial Specialist and Certified Information Technology Professional,
certifications sponsored by the American Institute of CPAs.

                                                              Would you like to nominate someone for
                                                              Tax Professional of the Year and make your Texas
                                                              Chapter proud?
Would you like to nominate someone to be
highlighted in the next newsletter?                           Do you know a member who is passionate about not
                                                              only their profession but also their community?
This is a great opportunity for you to
introduce that person to other Texas Chapter                  The winner will receive a FREE trip to the 2011
members and be recognized at future NATP                      National Conference & Expo in St. Louis, MO.
events.                                                       This also includes airfare, a 5 night stay at the Hyatt
                                                              Regency St. Louis at the Arch and a full Conference
Please email their name and contact                           registration.
information   to   Denise  Mendez    at no later than                       Entries must be received by May 27, 2011.
February 14, 2011.                                            Visit to learn more and to
                                                              nominate as many NATP members as you like.
Page 9 of 12                                                           Winter 2010 Texas Taxing Times

Starting & Promoting                                            appliances to charitable organizations instead of
a Small Suburban                                                disposing of them. This action got me a lot of
Tax Practice                                                    business and started my career.
                                                             3. One year I decided to do RALs and launched an ad
By Phil King, Jr.                                               campaign to target a large apartment complex in my
TX NATP Chapter Member
                                                                neighborhood. I hired a firm to do mail outs for me
If you have never prepared taxes before and want to             emphasizing the benefits of instant refunds. This
find out if you would like it, volunteer with the AARP
                                                                was a big bust! I only had three responses, two of
TCE program. It will not only help you decide, but it will
also give you tax law training and allow you to work with       which got no refunds. I no longer do RALs!
real clients.                                                4. I actively participate in my neighborhood by
                                                                becoming a block captain [deliver newsletters,
I fell into the business by helping friends and neighbors
with their tax returns. I used commercial tax preparation       attend monthly meetings, and be a link to other
software. One day after finishing a return for a neighbor       neighbors]. By attending monthly meetings, I soon
with a small business, he wanted to pay me for doing            let it be known that I was the neighborhood tax
the work. I didn‟t take his money, but it struck me that I      man.
could make a few extra dollars by doing this each year.      5. I placed a small ad in my church bulletin. The
It was my original intention to keep my business small          response was slow, but in the long run I have seen
and start slow.                                                 a significant return on this mode of advertising. The
Here is a list of a few things that helped promote my           new clients I gained from this ad also stayed longer.
                                                             6. Use your logo. I place a sign in front of my house
1. I asked the president of our neighborhood                    during tax season that promotes my business and
   association if I could make a presentation at the next       serves as a landmark to my home office.
   association meeting. When he said yes, I printed up       One year I left it up past tax season and a man
   a two-page hand out entitled “Everything you wanted       knocked on my door asking how much I was asking for
   to know about taxes but were afraid to ask.” I printed    my house!
   20 copies on blue paper and one copy on orange            In my ads, as part of my business promotion I provided
   paper. I took most of my information from the             free tax advice to any neighbor. I also provided free tax
   “What‟s New” page of IRS publications plus a few          returns for dependent children who worked if I
   items I knew would interest suburbanites. I passed        prepared their parent‟s return. Finally I provided a free
                                                             tax return and advice to anyone whose spouse had
   them out and made my presentation. When I
                                                             died that year. This worked very well for several
   concluded the presentation, I asked for the person        reasons. First, if you do a dependent‟s return, you do
   with the orange copy to raise their hand. When she        not have to worry the child will file their own tax return
   did, I told her she had just won a free tax               and beat Mom and Dad out of a tax deduction
   preparation. I heard a man ask the winner if he could     Second, the free advice usually ends up generating a
   buy the orange copy for fifty dollars. Thankfully, she    return because they found how difficult it would be.
   said no. At the end of the meeting I sought out the       Third, helping a neighbor through a difficult time
   man who wanted to buy the orange copy and asked           generated a great deal of good will.
   him why he wanted to buy it. “Because I own fifteen       I expanded my advertisements to neighboring
   rent houses” he replied.                                  subdivision newsletters. This also brought in a
2. I decided not to do any more presentations but            significant amount of new business.
   instead asked if I could advertise in the
   neighborhood newsletter. The answer was yes, but          If anyone would like samples of what I have done that
                                                             was successful, please send me your email request to
   the costs would be $50 per publication, which fit my
   advertising budget. In the ad I suggested donating
Page 10 of 12                                                            Winter 2010 Texas Taxing Times

                     Texas IRS/PLM Meeting Report [November 17, 2010 - Austin, TX]
                      By NATP Representative Karen Coombes, Former TX Chapter President
The following topics were covered:
          LMSB renamed                                       TAP (Taxpayer Advocate Panel) update
          Current News                                       IRS counsel report
          PTIN/Affordable Care Act/E-File updates            New issues to resolve/round table
 IRS has renamed the LMSB (Large to Mid Sized                    PTIN/AFFORDABLE CARE ACT/MANDATORY E-FILE UPDATE
 Business) Division. The new name/acronym is LBI                       PTIN‟s will be mandatory for all paid preparers
 (Large Business International).                              beginning 1.1.2011. Returns filed with social security
                                                              numbers for paid preparers will be rejected, as will those filed
 Current news covered included:
                                                              with invalid/expired PTIN‟s.
          Schedule UTP – to be used by corporations
                                                                       Future proposals, besides competency testing,
 starting in TY 2010 to report uncertain tax positions
                                                              include fingerprint checks for those not already required to do
 [see announcement 2010-76].
                                                              so (CPA‟s, attorneys, E. A.‟s), and continuing education
          The „Dirty Dozen‟ tax scams were listed (return
                                                              requirements. For complete details on the new rules go to
 preparer fraud, offshore income, phishing, false
 /misleading forms filed, nontaxable SSI with
 exaggerated withholding, charitable deduction abuse,
                                                                       The Affordable Care Act contains more than 500
 frivolous arguments, abusive retirement plans,
                                                              changes to the tax code – the largest number of changes in a
 disguised corporate ownership, $0 wages, misuse of
                                                              single bill in 20 years! Some are already effective (required
 trusts and fuel tax credit schemes)
                                                              coverage for children under 27 effective 3.30.2010, increased
          EFTPS Phishing scam – do not reply to any
                                                              adoption credit) and other provisions will become effective
 email seeming to be from IRS – forward any such
                                                              over the next 4 years.
 emails immediately to
                                                                       Mandatory E-File rules require a preparer who files,
          IRS will be contacting „at risk‟ EITC return
                                                              or expects to file, 100 or more returns in 2011 to file them
 preparers with letters, visits and due diligence audits.
                                                              electronically. For 2012, if a preparer files 11 or more returns
 Section 6695(g) penalties may be assessed. Due
                                                              they will be required to e-file them. Additional guidance is
 diligence videos are available online now at EITC
                                                              forthcoming regarding opting-out, exceptions and waivers.
          Tax packages (IRS forms and instructions) are      IRS counsel gave a brief update from their department.
 no longer being mailed out to businesses or individual       Offshore compliance is a big issue, along with foreign tax
 taxpayers – due to growth in e-file, and to reduce costs.    credits and foreign earned income. They also mentioned that
          Draft Form W-2 for 2011 released. Reporting        court dates will not be stayed if the taxpayer initiates contact
 of employer-sponsored group health plan costs has            with the Taxpayer Advocate.
 been deferred. Optional in 2011 (for 2010 W-2‟s).
                                                              Lastly, we brought our issues to the floor for discussion and
 Mandatory for 2012 (2011 W-2‟s).
                                                              possible entry into the IMRS system for resolution:
          IRS is conducting a telephone survey of tax         In processing returns with a 1st Time Homebuyer‟s Credit. This
 professionals November 3 through January 2011.
                                                                issue resolved itself once IRS required additional information
 Participation is voluntary and confidential and surveyors
                                                                be provided with the return to verify and process the credits.
 will not ask for any personal information.
                                                               Difficulties resolving issues with lost returns that were indeed
          New IRS website – – is up
 and running and full of FQA‟s and other resources for          filed (preparer has type H checked on Form 2848).
 business owners. Check it out and recommend it to all         Issues with auditors not contacting representatives when they
                                                                are out of the office for a scheduled audit: Requested a
 your business clients.
                                                                „common professional courtesy‟ policy be put in place to notify
          New audit info online at IRS – watch the video       representatives (and taxpayers) when a scheduled audit is
 series “Your Guide to an IRS Audit” – demonstrating            cancelled/delayed.
 the stages of each type of audit; correspondence, office
 and field.             If you have any issues/concerns youwould like me to present at the
                      next meeting in May 2011, please contact me at 512-515-6250 or
                      email your issue to      ~Karen Coombes
Page 11 of 12                                                       Winter 2010 Texas Taxing Times

                                   E-File Marketing Tools Still Available
                                   You can order the following products by
                                          calling 1-800-829-3676.
                                   1. Publication 2043 IRS e-file 2011 Refund
                                      Cycle Chart

                                   2. Publication 3010 e-file Stickers (52
                                       stickers per sheet)

                                  Relief for Late Classification Elections
 Did you know…When an LLC, with more than one member, fails to make the election of
 being taxed as a corporation on Form 8832, the default classification is partnership.

 Not to worry if this has happened to you and even if you are late filing tax returns.

 Simply fax over a completed Form 8832, after speaking to the Practitioner’s Hot Line, with
 your election and after adding “Filing Under Rev Proc 2009 -41” at the top.

 Rev Proc 2009 – 41 acknowledges such this case in Paragraph 4 – Relief for Late Classification

 The IRS will honor your election and should accept your late filed forms 1120 [payroll
 returns will be accepted as filed].

Have you noticed the Texas Chapter Board wearing gold                EDUCATE ITS MEMBERS.
colored, Texas shaped name tags?
   Would you like to own your own similar name tag??                         ANY IDEAS???
Beginning January 2011, orders will be taken for Texas
Chapter Member name tags through April 8, 2011, just in      We are open to any suggestions you may
time to attend education events and show off your new,       have to bring the topics you want to TX
very professional looking, name tag.                         NATP’s TX Chapter events.
Your name tag will include your first and last name and         If you have any suggestions, please
the Texas NATP logo. Also, your name tag will not ruin               contact Karen Coombes at
your favorite shirt as they are magnetic, not pin on!       
Please look out for an email blast soon for more details.
Page 12 of 12                                          Winter 2010 Texas Taxing Times



   Aug. 15 –18 ~ NATP National Conference & Expo ~ St. Louis, MO [TX NATP will hold a
            board meeting there]

            Please visit for updated events

                                   IRS Forum Dates
   June 28 thru 30 ~ Atlanta, GA               Aug. 9 thru 11 ~ San Jose, CA
   July 12 thru 14 ~ Orlando, FL               Aug. 16 thru 18 ~ Las Vegas, NV
   July 26 thru 28 ~ Dallas, TX                Aug. 30 thru Sept. 1 ~ National Harbor, MD

           IRS Regional Practitioner Meeting Dates [To Be Determined]

                          IRS Practitioner Liaison Meetings
        Karen Coombes, EA and former TX Chapter President, represents NATP &
                        will continue to relay your concerns.
     Send any issues you may have to Karen at by May 2011.

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