Texas Taxing Times
New Chapter President’s Message
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.
INSIDE THIS ISSUE
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.
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
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.
4. DO NOT EVER ENTER YOUR CURRENT PTIN. If you have a
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.
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
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 firstname.lastname@example.org
Groveton, TX 75845 Flower Mound, TX 75028 Cell/Office: 361-945-2688
email@example.com firstname.lastname@example.org 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
5353 Williams Drive, Ste 200 Wichita Falls, TX 76301
Georgetown, TX 78633 email@example.com
Term Expires 2012
firstname.lastname@example.org 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
Best6481@sbcglobal.net 2808 S. Richey Road
Office: 361-578-6481 Houston, TX 77017
Fax: 361-578-6561 email@example.com
Term Expires 2012
Term Expires 2013 Office: 713-910-8585
Term Expires 2011
Donna M Shook
4521 Bluefield Drive
Corpus Christi, TX 78413
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
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
firstname.lastname@example.org no later than Entries must be received by May 27, 2011.
February 14, 2011. Visit www.natptax.com 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 email@example.com
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 – www.business.gov – 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 firstname.lastname@example.org. ~Karen Coombes
Page 11 of 12 Winter 2010 Texas Taxing Times
E-File Marketing Tools Still Available
You can order the following products by
1. Publication 2043 IRS e-file 2011 Refund
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].
TX NATP MEMBERS’ NAME TAGS COMING SOON ! NATP’S MISSION IS TO CONTINUALLY
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! email@example.com
Please look out for an email blast soon for more details.
Page 12 of 12 Winter 2010 Texas Taxing Times
April 21 ~ TX NATP TELECONFERENCE BOARD MEETING
July 21 ~ TX NATP TELECONFERENCE BOARD MEETING
Aug. 15 –18 ~ NATP National Conference & Expo ~ St. Louis, MO [TX NATP will hold a
board meeting there]
Please visit www.natptax.com 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 firstname.lastname@example.org by May 2011.