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SEPTEMBER 2009 Volume 4, Issue 2
www.natptax.com.ca.html
President’s Message
The National Conference in NATP’s Charity, while, the other
Reno last July 20-23 was a big half went to the Frank Zion
hit. Seventy one (71) participants Scholarship Fund. Raffle prizes
came from California. Some are were two (2) gift baskets and a
familiar faces and most were first Casio Calculator donated by
time attendees. We met so many Charlotte Nunez. We also
In this issue: new faces, had the chance to participated in the Charity
network, and encourage them to auction and donated a huge
Calendar of Events volunteer. basket of beauty products.
New Members
It was a very informative Then on Wednesday, we
week; the classes were great and posted our “WANTED-
Annual Conference timely. The speakers were VOLUNTEER” sign on our lunch
awesome, one of my favorite was table again, to encourage more
Regional & IOUs LG Brooks. His topic about members to volunteer. During
engagement letters and audits that lunch, I had the opportunity
Tax Rates
was very interesting, especially to meet Howard Lyon, the first
Legislative Update the tips and the examples that he president and one of the founders
gave us for our protection was of our Chapter. It was such a
Stakeholder Liaison
indeed logical, helpful and very great honor for me to hear from
CTEC News pragmatic. him personally the bits and
pieces of how our Chapter
Goals Monday, while at the started. You will see more of him
bowling tournament, we were all in our coming events.
End Notes, Etc.
astounded to find bowlers in our
Chapter. Carol Thomas won our Thursday, the last day.
game with one hundred fifteen We had lunch with our members
(115) points.
as we enjoy our traditional
The following day, “Meet and Greet” at the pizza
Tuesday, we were very proud to
place in the same bowling alley
give away California’s finest
grapes and San Francisco’s were the tournament was held.
original Ghirardelli chocolate Members who joined me were
bars at the Chapter Showcase. Robert Jahnigen, Marcy Terby,
We also had a raffle. We
(Continues on page 2)
generated $141.00, 50% of the
proceeds was donated to the
2009 NATP and CA-NATP Calendar of Events
Event Date Location Speaker(s)
Summer Workshop 8/31-9/2 Oxnard Steve O’Rouke
Annual Conference 9/23-26/09 Bakersfield Various
Board of Director’s Meeting 9/26/09 Bakersfield n/a
1040 Workshop 10/26– 27/09 Berkeley Randy Lawshe
1040 Workshop 10/26-27/09 Whittier Tom O’Saben
Regional Dinner Meetings 11/12/09 East Bay, Fresno, TBA
Los Angeles, San Diego
Board Retreat 11/09 TBA n/a
(President’s Message continued from page 1)
Ann Blanco-Driver, Juanita Joyce, Diana Skocypec, Maria Tapang, Charlotte Nunez
and Ariel Sanchez. We had so much fun that we begin to hurdle with our goodbye to each
other. I went home with the list of new names and volunteers that are willing to help. It was
such a great experience. I am hoping to see you all next year in Austin.
On September 24 to 26, we will be having our Annual Meeting and Educational
Conference in Courtyard by Marriot in Bakersfield. We have numerous motivating and
appropriate topics to discuss. We offer up to 18 CPE credits for such a reasonable price. We
will also have a council of experts to tackle all your challenging tax issues. IN ADDITION, we
will treat you to a dinner show at the famous Buck Owens’ Crystal Palace. Come and join us,
registration is now available online at www.natptax.com/stateinformation.html.
I would also like to announce that on November 12, we will be having our very first
Regional Dinner Meeting in four (4) different locations. The following are the Regional
Directors/ Coordinators, namely; Rita Byrum in Fresno area, Carol Thomas in Los Angeles
area, Jackie Marazzi in San Diego area and yours truly in East Bay area. It will be a great
opportunity to network, have dinner and at the same time earn two (2) credits in your local
area.
To finish, I would like to thank the following members that emailed me and expressed
their willingness to volunteer and support our Chapter; Tim Powell (Shafter), Dinaz D’souza
(Indio), Dina Rosales (Richmond) and Abdul Noori (Fremont). I am looking forward to
seeing you all at the Annual Meeting.
Sincerely,
Sarah J. Halog,
President
2 CA Tax Times SEPTEMBER
Welcome to Our Newest Members
Khorshed Alam, EA, CPA, CVA Lisa Ihm
Joseph Alfonso Sally Jacobson
Sandra R Barilla, CTEC Dawn M Juby
Glenda M Bayless, CPA, EA, CSA Timothy E Kelly, Esq.
Kathy Birdwell, EA Sandra A Klingbail
Sherry Board, EA Eric Kovesdy
James T Bonner Ninarose Maldonado, CTEC
Tamie Cabrera, EA Galen McCoy, EA
Jacqueline C Chan, EA Myra McGill
Stan Crowder Peter R McIntyre, EA
Susan Didriksen Carmen Mendoza
Dinaz D'Souza Amanda L Morris, EA
Flora Espino Steven W. Pokriefka
Paula Christine Felker Ariel Sanchez
Armando Garcia-Martinez Mary Jane S San Diego
John E Gonzalez, EA John Scheck, CRTP
Kay Greenspon Patricia J Schwafel
Gaby Guillermo Dale Shartsis, EA
Jenny Hays April Perez Singh, CRTP
Shannon Henry Eric Vanpraag, EA
Yogesh Hiralal Richard Waterman, CPA
Susan E Honig Stephanie Wong
Herschel Hudson
SEPTEMBER 2009 CA Tax Times 3
Come join us in our…
ANNUAL CONFERENCE & MEETING
September 24-26—Bakersfield, CA
Agenda:
Thursday, September 24
8:30 a.m. to 10:10 a.m. - Registration and Welcome Breakfast
10:15 a.m. to 12:00 p.m. - IRS Update
12:00 p.m. to 1:00 p.m. - Lunch
1:00 p.m. to 1:50 p.m. - FTB Audit - Steve Sims, FTB
1:55 p.m. to 3:35 p.m. - CA Update - Steve Sims, FTB
3:40 p.m. to 4:30 p.m. - IRS Audit
4:35 p.m. to 6:15 p.m. - Panel with IRS, FTB, EDD,CPA, NATP EA, & Tax
Professional
Friday, September 25
8:30 a.m. to 9:30 a.m. - Registration and Breakfast
9:30 a.m. to 11:10 a.m. - FBAR - Kelly Jackson
11:15 a.m. to 12:05 p.m. - Ethics - Curtis Eakin
12:05 p.m. to 1:05 p.m. - Lunch
1:05 p.m. to 1:55 p.m. - Ethics - Curtis Eakin
1:55 p.m. to 2:55 p.m. - Annual Meeting
2:55 p.m. to 4:35 p.m. - Schedule E/Real Estate - Carol Thomas, EA
5:30 p.m. - Banquet
Saturday, September 26
8:30 a.m. to 9:30 a.m. - Registration and Breakfast
9:30 a.m. to 11:10 a.m. - 1040X and 540X Line by Line - Jackie Marazzi
11:15 a.m. to 12:55 p.m. - W2 vs. 1099 Employee vs. Employer - Rita Byrum
For questions, please call us at 510-938-6102 or email
sarah@canatp.com
13 FEDERAL & 5 CA CPE Available
4 CA Tax Times SEPTEMBER
SEPTEMBER 2009 CA Tax Times 5
CA-NATP Regional Dinner Meeting / CA IOUs
Save the Date
Thursday, November 12, 2009
Starting next November The California Chapter will hold Region meetings in four areas mainly Fresno, Los
Angeles, San Jose and San Diego and these meetings will consist of tax presentations (federal and state) which
qualify for two (2) continuing professional education.
These meetings are scheduled between 6:00 p.m. and 9:00 p.m. with an hour for either dinner or refreshments
depending on the location and the cost. Registration fee is $35 for NATP member and $45 for non member. The
four regions will present the same tax topics providing speakers are available. Further details will be available at the
state conference next September.
We are looking forward to seeing you there.
Written by Jackie Marazzi, EA
Controller Chiang Completes Cash Review
Determines Date to Stop Issuing IOUs
State Controller John Chiang today announced he has completed ―stress testing‖ the Department of Finance’s cash
projections from the State’s newly-revised budget and has determined the new spending plan will provide the State
Treasury with enough cash to stop issuing IOUs on September 4, almost one month earlier than expected.
―The State of California owes a debt of gratitude to the thousands of individuals and businesses that were forced to
bear the brunt of the State’s chronic fiscal mismanagement,‖ Chiang said. ―Along with short-term loans that are
routinely obtained in the fall, this spending plan should provide sufficient cash to meet all of California’s payment
obligations through the fiscal year.‖
As the State’s chief fiscal officer, the Controller is responsible for managing the State’s cash and sizing the amount of
short-term borrowing that typically is needed to pave over cash shortages during months when there are less
revenues than expenditures. Using the new state spending plan, the Controller applied additional revenue
projections and cash pressures, such as potential litigation, to determine when the State will have sufficient funds to
meet all of its payment obligations, including redeeming outstanding IOUs.
The Controller has advised the Governor, Treasurer and legislative leaders that current projections show the State
will need to borrow $10.5 billion to meet California’s cash needs for the fiscal year.
Based on the State Treasurer’s assurance that he will be able to obtain an interim $1.5 billion loan by August 28, the
Controller set September 4 as the date he could stop issuing IOUs and the Treasurer may begin redeeming those that
have already been issued.
At the Controller’s request, the Pooled Money Investment Board (PMIB) has scheduled an emergency meeting for
August 21. At that meeting, the Controller will ask the board to approve a redemption date of September 4, which is
almost one month earlier than the October 2 maturity date printed on the IOUs. ―While we can finally put an end to
this difficult, and frankly, shameful chapter in the State’s history, it does not bring an end to our fiscal challenges,‖
Chiang said. ―I urge the Governor and Legislature to continue their efforts to fix the State’s structural budget deficit
and ensure we are never again forced to issue IOUs or delay payments to California families and small businesses.‖
Faced with a cash deficit of $2.8 billion in July, the Controller was forced to issue IOUs to preserve cash for
education, debt service and other payments protected by the Constitution, federal law and court orders. Since July 2,
the State has issued 327,000 IOUs totaling $1.95 billion.
6 CA Tax Times SEPTEMBER
2009 State Income Tax Rates Adjusted
Sacramento – The Franchise Tax Board (FTB) released the 2009 state tax
brackets. Brackets are ―indexed‖ each year by adjusting them to reflect changes in
the California Consumer Price Index (CPI).
Filing requirement thresholds, the standard deduction, and certain credits were adjusted along with income tax
brackets based on the deflation rate of -1.5 percent, as measured by the California CPI for all urban consumers
from June 2008 to June 2009. Last year’s inflation rate measured 5 percent. This has only occurred one other time
since indexing became law in 1978.
The standard deduction will decrease for single or “married filing separate” taxpayers from last year’s rate of
$3,692 to $3,637. For joint, surviving spouse, or head of household taxpayers, the standard deduction decreases
from $7,384 to $7,274. The personal exemption credit amount for single, separate, and head of household filers
will decrease from $99 to $98 and for joint filers or surviving spouses it will decrease from $198 to $196. The
Renter’s Credit is available for single filers with adjusted gross incomes of $34,412 or less and joint filers with
adjusted gross incomes of $68,824 or less.
A new tax law sets the dependent exemption credit for tax years 2009 and 2010 to the indexed personal exemption
credit, lowering the credit to $98. Last year’s credit was $309.
In addition, FTB provides minimum filing requirement thresholds to ensure that most people who will not owe
taxes are not required to file a tax return. FTB adjusts these tables each year to include the added senior exemption
and the dependent exemption credits. For example, most single people under 65 years old with no dependents
would not need to file a state return until they have adjusted gross income of $11,698 or more.
Other tax credits affected by indexing include the Joint Custody Head of Household Credit, Dependent Parent
Credit, and Qualified Senior Head of Household Credit. More information about this and other tax matters is
available at www.ftb.ca.gov.
California Adjusted Gross
California Gross Income Income
Dependents Dependents
On
12/31/09,
my filing status and on 12/31/09, my
was: wage was: 0 1 2 or more 0 1 2 or more
Single or Head of
Household Under 65 14,622 17,889 20,339 11,698 14,965 17,415
65 or older 19,522 21,972 23,932 16,598 19,048 21,008
Married Filing
Joint Married Under 65 (both
Filing Separate spouses 29,245 32,512 34,962 23,396 26,663 29,113
65 or older (one
spouse) 34,145 36,595 38,555 28,296 30,746 32,706
65 or older (both
spouses) 39,045 41,495 43,455 33,196 35,646 37,606
Qualifying Widow
(er) Under 65 14,622 17,889 20,339 11,698 14,965 17,415
65 or older 19,522 21,972 23,932 16,598 19,048 21,008
Any Filing Status Under 65 More than your standard deduction
65 or older More than your standard deduction
SEPTEMBER 2009 CA Tax Times 7
FTB Legislative Update
Analyses Posted The Week
Assembly Bills
AB 292 (Yamada, et al.) California Alzheimer's Disease And Related Disorders Research Fund/Extend
Repeal Date To January 1, 2015, FINAL ANALYSIS
AB 404 (Eng) Exempt Organizations/Subordinate Organizations Included In Federal Group Exemption
Letter, FINAL ANALYSIS
AB 469 (Eng) FTB Revise Income Tax Forms And Instructions To Enable A Person To Report & Pay
Qualified Use Taxes, Amended 08/17/09
AB 756 (Eng/Lieu) State Agencies Prepare Annual Report Available On Internet Website Of Personal
Services & Consulting Services Contracts, Amended 08/17/09
AB 765 (Caballero/Solorio, et al.) Principal Residence Credit, Amended 08/25/09
AB 1546 (AR&T Comm) Limited Partnership Revival-Account Fees, Tax Returns, And Expedited Service
Fees/2009 Budget Bill Clean-Up, Amended 08/17/09
AB 1580 (Calderon) Conformity Act of 2009, Amended 08/18/09
Assembly Special Session Bills
ABX4 17 (Comm On Budget) Estimated Tax Payments/Wage Withholding, (Stats. 2009, Ch. 09X4-15) -
Legislative Change 09-6
ABX4 18 (Comm On Budget) Backup Withholding, Amended 07/23/09
ABX4 18 (Comm On Budget) Backup Withholding, (Stats. 2009, Ch. 09X4-16) - Legislative Change 09-7
Senate Bills
SB 257 (Pavley) State Agencies Notify Each Female Nearing Maternity Leave Of Provisions Relating To
Lactation Accommodation, FINAL ANALYSIS
SB 314 (Calderon) Interagency Intercept/Change Priority For Payment, FINAL ANALYSIS
SB 425 (Simitian) Commute Expenditures Reduction Credit/Parking Subsidy Deduction Disallowed
Unless All Employees Are Offered Parking Cash-Out, Amended 07/15/09 & 07/23/09
SB 830 (Wright, et al.) Enterprise Zone/Fremont Automobile Manufacturer/State Agencies Must Give
Preference If Procuring For Automobile Or Trucks To Those Manufactured In Enterprise Zone, Amended
07/24/09
8 CA Tax Times SEPTEMBER
STAKEHOLDER LIAISON
What is it?, What does it do ? Who Who belongs?
Belongs?
Tax professionals representing the tax
The Stakeholder Liaison was formed around community throughout the country have been
2002 as Taxpayer Education and invited to join the liaison group in their area.
Communication (TEC) to provide education There are 10 Stakeholder Liaison offices in
and outreach to tax practitioners and small California alone. IRS can always use more
businesses. The country was divided into 12 input from our profession. If this is something
areasof the Small Business/Self Employed you might want to be apart of, go to
Operating Division of IRS as part of the www.irs.gov and search Local Contacts to
Communi. (California is the Western Area, locate the coordinator in your area.
along with Nevada and Hawaii.) In 2005, TEC
Written by Rita Byrum
was reorganized and renamed Stakeholder
Liaison. It is part cations, Liaison, and
Disclosure Function.
What does it do?
IRS’s Stakeholder Liaison partners with
organizations serving tax professionals, small
businesses and self employed taxpayers. Local
stakeholder liaison groups participate in tax-
related events by conducting small business
forums, co-ordinate phone forums (free
conference calls that deliver information on tax
topics.) In addition, the local groups host
practitioner liaison meetings with tax
professionals. It is at these meeting that the tax WANTED
profession can learn about the various IRS NEWSLETTER ARTICLES
units: What they are doing, what is new in their
individual groups, and what problems they may
be encountering. This information can, then, be Please submit an article today!
sent on the members of the various tax
Email it to carol@cttaxprep.com
organizations. In return, IRS has an
opportunity to learn about the problems that Thank you
may be plaguing the tax community.
SEPTEMBER 2009 CA Tax Times 9
CTEC NEWS
Why Wait? Renew Your Registration Today!
August 1st is the start date for CTEC Registered Tax Preparers (CRTPs) to renew their registration for the
2009/2010 cycle. If you already completed the continuing education requirements (12 hours federal, 4 hours
state, plus 4 hours of federal and/or state) now is the time to renew your registration. Online Renewals To
register online, go to www.ctec.org and click on “2009/2010 Online Renewal Registration” located at the
center of the homepage. You will need to enter your user ID and password to login.
Please remember education providers are not yet required to report hours electronically to CTEC. If your
education provider does not submit hours electronically, then you cannot renew online and will have to
renew by mail. Reporting hours electronically will not be a requirement until 2010.
Education providers also have 45 days from the date the course was completed to report hours earned to
CTEC, so plan ahead and complete your education early if you do not want to risk paying a late fee. Mail-In
(Manual) Renewals Applications sent by mail must include the following documents:
A copy of your bond showing the expiration date
Copies of education completion certificate (s)
Completed 2009/2010 renewal application
Personal check, cashier’s check or money order for $25 made payable to CTEC
If any of the above documents are missing your application will be sent back. If your application is
postmarked by October 31st, but is returned by mail due to missing information, you will be required to pay
the late fee.
As of November 1, 2009 the late fee will increase from $13 to $15.
10 CA Tax Times SEPTEMBER
More Chapter News...
Win 2009 Chapter of the Year Award
Increase membership by 10%
Hold 10 Educational Seminars
Increase Participation in Education and Seminars
Implement 4 Regional (Webinars or Dinner Meetings)
Development Opportunity for Board of Directors
Increase Community Betterment Activities
Increase Visibility to Tax Community
Increase Chapter Treasury
Provide Quarterly Financial Reports
"Don't be afraid of the space between your
dreams and reality. If you can dream it,
you can make it so."
Belva Davis
The Members of our Board are dreaming & working to
make it a reality; grow our membership, and plan fun
educational seminars, up and down the state.
Dream with us
SEPTEMBER 2009 CA Tax Times 11
End Notes, Etc.
QuickFinder & TheTaxBook
Help yourself AND help your state chapter
Place your order for either the Quick Finder or The Tax Book through NATP‖s order line and
our CA Chapter will receive $5 for each book sold.
Get Your
CA NATP
Logo Stuff
Polo Shirts—$25
Tee Shirts—$10
Tote Bag—$7
12 CA Tax Times SEPTEMBER
Mission Statement
CA-NATP fosters the life-long development of
professionals who provide tax and related financial
Tax Times services by
Providing, on a state level , education,
research, and other services,
P.O. Box 586
Tel: (510) 938-6102 Communicating knowledge about state
Fax: (510) 952-9610 issues,
E-mail: sarah@canatp.com
Building resource alliances, and
Advocating for the profession and the public
We’re on the web interest.
www.natptax.com.ca.html
www.canatp.com
Advertise in this
CA—NATP BOARD OF DIRECTORS 2009 Newsletter
Officers Daniel Harris, LLM The Board has adopted the following policy
with regard to advertising in the newsletter.
(925) 818-3518
daniel@canatp.com Business Card Size: 2‖ by 3-1/2‖ in size.
President Horizontal or vertical placement agreed
Sarah Halog, CRTP upon between client and Newsletter Editor.
Warren Erickson $25 each/monthly
(510) 938-6102 — (510) 952-9610 Fax
Finance Chair
sarah@canatp.com Half Page Size: 4-1/4‖ x 5-1/2‖ in size.
(858)232-5576—(858)246-7326 Fax Horizontal or vertical placement agreed
warren@canatp.com upon between client and Newsletter Editor.
Vice-President $50 each/monthly
Charlotte Nunez, CRTP Full Page Size: 8-1/2‖ by 11-1/2‖ in size.
(661)324-6205 — (661)324-6228 Fax Horizontal or vertical agreed upon between
client and Newsletter Editor. $100 each/
charlotte@canatp.com monthly
Advisory Committee
Secretary Carol Thomas, EA—Los Angeles,
Ariel Sanchez Newsletter
(661)303-7458— (661)324-6228 Fax Howard Lyons, EA—San Jose
Jackie Marazzi, EA—San Diego California Tax Times is
ariel@canatp.com
Rita Byrum, CRTP—Fresno published monthly except for two
combined issues of Dec-Jan and
Treasurer
Feb-Mar by the California Chapter
Shirley Miller, CRTP
of NATP.
(760) 208-1461 — (800)708-6583 Fax
shirley@canatp.com
The California Chapter, NATP Newsletter is distributed with the understanding that the publisher is not engaged in rendering tax, legal, accounting or other
professional or technical advice and assumes no responsibility or liability whatsoever in connection with its use. You are advised to research any subject or topic
SEPTEMBER 2009 CA Tax Times 13
