CALIFORNIA SOCIETY OF TAX CONSULTANTS

Newsletter of the Inland Empire Chapter of the California Society of Tax Consultants. Published monthly May through December.

Editor: Hilde Morrow July 2014

P RESID EN T ’ S COLUMN

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ell, it’s already too hot for me! I hope that you are enjoying your summer.

If you are on the call-in list for our meetings, note the phone number change! It’s effective immediately! The new number is 909.575.1066. July’s education will be brought to us from our own member David Eastis, CRTP who will be the speaker for the evening. The topic for the evening will be “HOW TO READ A K-1”. The IRS has announced a new program: “New IRS Filing Season Program Unveiled for Tax Return Preparers – Voluntary program to focus on continuing education for unenrolled preparers.” The Annual Filing Season Program will allow unenrolled return preparers to obtain a record of completion when they voluntarily complete a required amount of continuing education (CE), including a course in basic tax filing issues and updates, ethics and other federal tax law courses. "This voluntary program will be a step to help protect taxpayers during the 2015 filing season,” said IRS Commissioner John Koskinen. “About 60 percent of tax return preparers operate without any type of oversight or education requirements. Our program will give unenrolled return preparers a way to stay up-to-date on tax laws and changes, which we believe will improve service to taxpayers.” Tax return preparers who elect to participate in the program and receive a record of completion from the IRS will be included in a database on IRS.gov that will be available by January 2015 to help taxpayers determine return preparer qualifications.

The database will also contain information about practitioners with recognized credentials and higher levels of qualification and practice rights. These include attorneys, certified public accountants (CPAs), enrolled agents, enrolled retirement plan agents (ERPAs) and enrolled actuaries who are registered with the IRS.

Inside this issue: President’s Column

1

Dinner Meeting Info.

2

Speaker Information

3 4

Calendar Member Anniversaries Member Benefits Classified Ads 2014 Board, Mtg Location From the Tax Front

5, 6

7, 8, 9

Society Calendar

10

Officers President

Barbara Feliciano

909-896-1452 1st VP Hilde Morrow 909-624-9366 2nd VP Clint Young 951-682-4848 Secretary Janice Coleman 909-941-7939 Treasurer

Ann R Esquivel

909-824-1623 Past President Priscilla Lerma 909-983-3716

Directors Membership

Tina Garcia

909-626-7706

It’s dues renewal time. Remember to pay those dues! The Board meets at 4:00 at the Claremont Doubletree just before our dinner. Feel free to join us!

Asst Treasurer Ann Mills 909-983-3716 Director Frank Medrano

909-271-9980

Barbara

Newsletter Editor Hilde Morrow

Barbara Feliciano, C.P.A., President CSTC Inland Empire Chapter

Volunteer

[email protected] 909-624-9366 Photographer Annette Finnerty

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THE INLAND EMPIRE TAX GAZETTE

J uly 20 14 D INN ER MEETI NG DoubleTree Hotel Claremont

== MENU ==

555 West Foothill Blvd, Claremont, CA 91711

House Salad with Ranch and Italian dressings Fresh Rolls and Butter

Phone: 909.626.2411 Wednesday, July 16, 2014

Baked White Fish with lemon pepper

Dinner at 6:00 pm —– Sign in at 5:30 pm

Rice Pilaf Fresh Steamed Vegetables

For Reservations and Menu Preference:

OR

Phone 909.575.1066 on or before Saturday, July 12, 2014, 11:59 pm

Vegetarian Lasagna

MEETING COST (dinner and 2 hours of education)

Lasagna Noodles layered with Mozzarella Cheese, Alfredo Sauce and Succulent Layers of Vegetables Rice Pilaf, Fresh Steamed Vegetables

$35 for members on the permanent dinner list & members with timely reservations. $50 for non-members, walk-ins and late registrations.

Coffee, Ice Tea & Chef’s Choice House Dessert

Cancellation Policy: If you are on the permanent dinner list or have made a reservation and are unable to attend, you must cancel your reservation by Saturday, July 12, 2014 , 11:59 pm, otherwise you will be billed for the dinner. Note to all members: Please check the permanent dinner list below for accuracy. Are you on the list and should not be, or should you be on the list and your name does not appear? If you wish to be added to or deleted from the permanent dinner list please inform Ann Mills, 909-983-3716, Email: [email protected]. Alternatively, you may call our message phone 909.575.1066 and leave a message.

O

ur next Board Meeting will be on July 16, 2014 at 4:00 pm. All members are welcome to attend. The meeting will be at the DoubleTree Hotel in the same room as our dinner meeting.

PERMANENT DINNER LIST* Emma Barrows Russel Bisgaard Phillip Brown Mary Carlos Ted Caruthers III Corina Christiansen Janice Coleman Susan Cook Richard Doyle David Eastis Barbara Feliciano

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Annette Finnerty Elvia Flores Wayne Franck Tina Garcia Ruth Godfrey Wayne Hardesty Sharon Hardy Eric Johnson Don Klotz Priscilla Lerma Berlina Love

Leonor Maher Cecilia Martinez Francisco Medrano Renee McClellan Ann Mills Hilde Morrow J.M. Olchawa Michael Olden Julio Romero Michael Richeson Janine Rodriguez

Leticia Scanlan Randi Stern Jessica Vasquez Norman Wing Dee Wonders Clint Young *current to June, 2014

he California Society of Tax Consultants was born in Southern California in 1966. Today we have 15 Chapters in California. CSTC’s emphasis on high-quality education and its atmosphere of friendly sharing make it an ideal organization for the tax professional.

THE INLAND EMPIRE TAX GAZETTE

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j u ly 2 0 1 4 t o p i c & S P E A K E R I N F O R M AT I O N

CTEC # 1000-CE-3695—IRS Program # 18QC1-T-00306-I (2 hours Federal Tax Law)

new client comes into your office for their income tax interview. They provide you a copy of last year's tax return, sources of income/expenses and documentation, and present you with a K-1. Now what do you do? What guidance and/or tax advice may you provide your client concerning their K-1? This workshop is designed to help you find the answers to this and other questions concerning reading and understanding K-1s. We will be examining the outline and format of K-1s for Partnerships (Form 1065), S Corporations (Form 1120s), LLCs (Form 1065), and Trusts/Estates (Form 1041).

avid A Eastis, CRTP, received his Bachelor of Arts Degree from the University of La Verne in 1980, and Master of Arts in Theology Degree from Bethany Seminary in 1984. Since graduating from seminary, he has served in pastoral positions in Maryland and Indiana. In addition, he has worked with several Not–for–profits and Tax-exempt organizations on the local, state, and national level. In 2000, David left the pastoral ministry and went back to school and completed his accounting degree in 2003 from Indiana University, South Bend, Indiana.

In 2003, David moved back to California to work in the family tax and bookkeeping business, now located in Brea California, under the dba “BREA TAX CONNECTIONS.” David joined the California Society of Tax Consultants in 2004. As an active member of the CSTC he has served as Secretary for the Greater Long Beach Chapter. In 2012 he completed a 4year term serving as Secretary for the Society Board of Directors. David was recently elected to serve as 1st Vice President for the Society Board of Directors in 2014. David has been encouraged by CSTC to share his gifts of speaking and teaching as a presenter for various chapter meetings, the CSTC Summer Symposium and the Wine Country Symposium. His topics include: IRS Form 990; S Corporations; Preachers, Teachers, and other specialized Vocational Fields; Charitable Contributions; and Federal Tax Credits. And in the Fall of 2013 David completed his second year teaching the Fundamentals Tax Course (Contact) for CSTC.

This presentation has been designed to meet the requirements of the Director of Practice of the Internal Revenue Service; the California State Board of Accountancy; and the California Tax Education Council including code 31 of Federal Regulations 10.6(g). This does not constitute an endorsement by these groups. A listing of additional requirements to renew taxpreparer registration may be obtained by contacting CTEC at PO Box 2890, Sacramento, CA 95812-2890, or phone CTEC at 1-877-850-2832, or on the Internet at www.ctec.org.

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CSTC MISSION STATEMENT o promote professionalism by providing quality educational events for tax professionals, creating and encouraging networking opportunities for members, and advocating professional standards and positions within the tax industry.

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THE INLAND EMPIRE TAX GAZETTE

2014 CSTC INLAND EMPIRE CHAPTER MEETING CALENDAR All our meetings are on the third Wednesday of the month.

Date

Topic

Speakers

May 21, 2014 June18, 2014 July 16, 2014 Aug 20, 2014 Sept 17, 2014 Oct 15, 2014 Nov 19, 2014

The IRS wants my money—now what do I do? Third Party Authorizations & IRS Online Resources How to read a K-1 Social Security Workshop Sch A—Itemized Deductions Real Estate Issues Update TBA

Gary Quackenbush, Esq. Amy Smith, IRS David Eastis, CRTP Brian Vosberg, CFP, EA Elaine Woodson, EA Steve Honeyman, CPA TBA

Dec 17, 2014

Holiday Party - Magical Entertainment

Rob Rasner, Magician

2015 Board Elections

Annual Meeting & Installation of 2015 Board

Topics are tentative and subject to change without prior notice. May through November: 2 hours education credit, December: Holiday Party, no education credit.

W

e are all getting so excited about our December special program – here’s a little teaser as to who we have booked. This Magician has performed for one of our sister CSTC chapters, North San Diego, and they loved him. We would welcome all members to bring their spouses, significant others and guests to this special event in December. Mark your calendars now, it will be on Wednesday, December 17th (our normal meeting day) – if you have any questions, please don’t hesitate to contact me at [email protected] or at 909-983-3716. More teasers to come in future newsletters – Happy 4th of July – Priscilla Lerma

Annual Update and Review Workshop January 10, 2015 - 8 hours CPE credit Where: DoubleTree Hotel, Claremont Federal and California Update Speakers and price TBA

Minds are like parachutes—they only function when open.

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THE INLAND EMPIRE TAX GAZETTE

July 2014 Thank you for your loyalty to our Chapter!

Ruth Godfrey 27 years

Michael

Renee McClellan

Ann Mills 17 years

5 years

Olden

Jessica Vasquez

5 years

6 years

Picture not available at press time

William Griffith, Jr 1 year

CSTC Inland Empire Chapter Benefits  

   

 

A free Quickfinder or TheTaxBook for members who attend at least 5 of our educational dinner meetings (December does not count), or 4 meetings and the January 2014 Workshop. Members who prepay for their 2014 dinner meetings, will be able to save $80 off the total price. The pre-pay cost for 8 meetings is $200. The deadline to prepay is May 21, 2014. No dinners will carry over to 2015 and there will be no refunds for missed dinners. Chance to win a $15 gift card for wearing your badge to the meetings. Any member who signs up a new member gets a $15 off dinner the month after the person joins. The new member will also get $15 off (this does not apply to prior members who join again). A monthly free Newsletter. Seven educational dinner meetings May through November (2 hrs CPE/meeting) and one Holiday Party meeting in December. Entertainment will be provided at the December meeting. (See pricing options above.) One Saturday all day workshop (8 hrs CPE) - cost to be announced later. Non-credit breakfast meetings during tax season provide a chance to network and get answers to difficult tax questions from other tax professionals. Invest in yourself. It will pay you for the rest of your life.

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THE INLAND EMPIRE TAX GAZETTE

CLASSIFIED ADS

F

ellow CSTC member and Enrolled Agent Tina Garcia is available to represent clients before the IRS and FTB. Tina will represent taxpayers in correspondence, office and field examinations of individual income tax and payroll tax returns as well as collection matters. She has been an enrolled agent for 18 years after a 14 year career with the IRS in the Examinations and Criminal Investigation Divisions. Tina is tri-lingual (English/Spanish and some Portuguese). Phone: (909) 626-7706 Email: [email protected]

PSI FINANCIAL SERVICE “Doing More than Just Taxes”

14175 Telephone Ave – Suite L – Chino, CA 909-628-9469 [email protected]

Become An Enrolled Agent (EA) The EA is licensed by the US Treasury Department and allows the qualified person to Prepare Tax Returns and to Represent Taxpayers before the IRS and can practice anywhere in the USA. Orientation and Introduction Class Starts July 29, 2014 at 6:00pm All Three Sections of the Exam Covered: Individuals- Businesses- Representation, Practices & Procedures Instructor and Mentor Phillip J. Brown, EA

D

o you prefer not to handle Audits and CP 2000s for your clients?

Our long time member – Don Klotz, EA – is seeking referrals for audit representation from other firms or tax preparers. Don will handle Personal Income Tax Audits as well as Sales Tax Audits. He will also answer and handle CP 2000s. Don has been an Enrolled Agent since 1990 and a tax preparer for 38 years. Phone: 909.717.3755 Email: [email protected]

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here is no charge to members to advertise positions available in their practice, equipment for sale, or similar subjects. Members looking for a new employer may also advertise. For non-members and for promotional advertising, there is a $15 charge for each advertisement in the newsletter, limited to business-card size, subject to available space and the discretion of the Chapter Board. Advertising does not constitute endorsement by the Inland Empire Chapter of the California Society of Tax Consultants. Please contact Hilde Morrow if you would like to place an ad. Email: [email protected]

Starting at $275 (Material, License, Test Fee Additional Cost) Call for additional information and schedule

T

P Rick Byrne

he winner of the June wear your badge drawing was Myriam Mourani, member of the Hi Desert Chapter. She received a $15 gift card.

lease welcome our newest member: of Prescott, AZ

Rick has been a member of CSTC, Hi Desert Chapter since November 1992. He transferred to our chapter in June.

Change brings freshness. Today is the tomorrow you worried about yesterday.

THE INLAND EMPIRE TAX GAZETTE

PAGE 7

2014 OFFICERS AND DIRECTORS The term of office is one year, unless otherwise stated

President Barbara Feliciano Serving 2nd year of a 2 year term

First Vice President

Past President

and Newsletter Editor

Priscilla “Pris” Lerma

Mathilde “Hilde” Morrow

Not an elected position

Second Vice President

Director— Membership

Clinton “Clint” Young

Isabel Christina “Tina” Garcia

Secretary

Director—Asst. Treasurer

Janice Coleman

Ann Mills

Treasurer

Director—Member at Large

Ann R. Esquivel

Francisco “Frank” Medrano

Serving 1st year of a 2 year term



Our chapter will reward you for recruiting a new member. You will receive a $15 gift card or a $15 one time discount on a dinner meeting of your choice. The new recruited member will get the same.



As of May 2, 2014 Society will give you a $25 discount on your membership dues if you recruit a new member, but the new member does not get a discount.



The referring member must be listed on the new member application for both the chapter benefit and the Society discount. The real leader has no need to lead—he is content to point the way.

THE INLAND EMPIRE TAX GAZETTE

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THIS IS OUR 2014 MEETING LOCATION

e-News 2014-27 7-3-2014

VOLUNTARY ANNUAL FILING SEASON PROGRAM

Revenue Procedure 2014-42 provides guidance regarding a new, voluntary Annual Filing Season Program designed to encourage tax return preparers who are not attorneys, certified public accountants (CPAs), or enrolled agents (EAs) to complete continuing education courses for the purpose of increasing their knowledge of the law relevant to federal tax returns. In addition, this revenue procedure modifies and supersedes Revenue Procedure 81-38, 1981-2 C.B. 592, regarding limited practice before the IRS by individuals who are not attorneys, CPAs, or EAs. Revenue Procedure 2014-42 will be published in IRB 2014-29, dated July 14, 2014.

Phone Forum: 403(b) Plans Update and Latest Developments Sign up now for this July 28 Phone Forum and join experienced IRS representatives from Employee Plans Technical and Guidance for an overview of the latest developments in the 403(b) world. The overview will primarily focus on the 403 (b) Pre-Approved Plan Program. This will include a discussion of program details as well as some of the issues the IRS is encountering as it begins to implement the program

IRS Fights Fraud with New Direct Deposit Limits In an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three.

IRS Announces ITIN Policy Change ITINs will be deactivated if not used on a federal income tax return for five consecutive years.

THE INLAND EMPIRE TAX GAZETTE

PAGE 9 IR-2014-77—July 1, 2

New 1023-EZ Form Makes Applying for 501(c)(3) Tax-Exempt Status Easier Most Charities Qualify WASHINGTON — The Internal Revenue Service today introduced a new, shorter application form to help small charities apply for 501(c)(3) tax-exempt status more easily.

than 60,000 501(c)(3) applications in its backlog, with many of them pending for nine months.

The new Form 1023-EZ, available today on IRS.gov, is three pages long, compared with the standard 26-page Form 1023. Most small organizations, including as many as 70 percent of all applicants, qualify to use the new streamlined form. Most organizations with gross receipts of $50,000 or less and assets of $250,000 or less are eligible.

risks," Koskinen said. "Rather than using large amounts of IRS resources up front reviewing complex applications during a lengthy process, we believe the streamlined form will allow us to devote more compliance activity on the back end to ensure groups are actually doing the charitable work they apply to do."

"Previously, all of these groups went through the same lengthy application process -- regardless of size," Koskinen said. "It didn't matter if you were a small soccer or gardening club or a major research organization. This process created needlessly long delays for groups, which didn’t help the groups, the taxpaying public or the IRS.”

The new EZ form must be filed online. The instructions include an eligibility checklist that organizations must complete before filing the form.

Following feedback this spring from the tax community and “This is a common-sense approach that will help reduce those working with charitable groups, the IRS refined the lengthy processing delays for small tax-exempt groups and 1023-EZ proposal for today's announcement, including reultimately larger organizations as well,” said IRS Commisvising the $50,000 gross receipts threshold down from an sioner John Koskinen. “The change cuts paperwork for these earlier figure of $200,000. charitable groups and speeds application processing so they "We believe that many small organizations will be able to can focus on their important work." complete this form without creating major compliance

The Form 1023-EZ must be filed using pay.gov, and a $400 user fee is due at the time the form is submitted. Further details on the new Form 1023-EZ application process can be The change will allow the IRS to speed the approval process found in Revenue Procedure 2014-40, posted today on for smaller groups and free up resources to review applica- IRS.gov. tions from larger, more complex organizations while reduc- There are more than a million 501(c)(3) organizations recoging the application backlog. Currently, the IRS has more nized by the IRS.

Franchise Tax Board Contacting Business Tax Nonfilers 06.18.2014 Sacramento –The Franchise Tax Board (FTB) is sending letters to more than 45,000 California businesses that have not filed their 2012 state income tax returns. Each year FTB reviews more than 5 million income records received from the IRS, the State Employment Development Department, the State Board of Equalization, financial institutions, and other businesses. FTB matches this information against its tax records to identify nonfilers. Last fiscal year, FTB collected approximately $32 million from businesses that failed to file tax returns. FTB gives business nonfilers 30 days to file a tax return or show why one is not required. Businesses that disregard the letter will get a tax assessment based on income and other information reported to FTB. The tax assessment includes interest, fees, and penalties. FTB has more information for those receiving letters at ftb.ca.gov. Click on the Businesses tab and select Notices/ Collections from the left side menu. Click on Notices and then select more on bills and notices tab. Select: Respond to request or demand for tax return. Businesses can request more time to respond, retrieve information that can help them file a return, sign up to receive an email reminder to file, and much more. Information is also available by phone at 866.204.7902.

c/o Hilde Morrow 2058 N Mills Ave PMB 225 Claremont CA 91711

Address Service Requested

Educational Dinner Meeting:

July 16, 2014 Location: DoubleTree Hotel, Claremont

2014 SOCIETY CALENDAR UPCOMING EVENTS 7/15-17 7/21

IRS Forum, San Diego Society Board Meeting (virtual)

9/10-11

Autumn Classic, Morongo

9/29

Society Board Meeting (virtual)

11/6-8

Wine Country Seminar

11/17

Society Board Meeting (virtual)

SOCIETY MEMBER BENEFIT Members who bring in (refer) a new member will receive a $25 credit towards (their) membership renewal. The referring member’s name must be stated on the new member’s application. (effective date May 2, 2014)

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e now offer many on-line courses ranging from 1 to 8 CE hours. These classes are updated annually and are reasonably priced. More classes will be added. Go to: www.cstcsociety.org & click on the Education Button.

CTEC CONTINUING EDUCATION REQUIREMENTS?

The address for the Society Office is: 12419 Lewis , Ste 106 Garden Grove, CA 92840 Phone: 714-750-CSTC (2782) Fax: 714-750-2722

Twenty (20) hours of CTEC-approved continuing education (10 hours of Federal Tax Law, 3 hours Tax Updates, 2 hours Ethics and 5 hours CA). This education must be taken from a CTEC approved curriculum provider and completed by October 31 of each year. CSTC meetings and workshops are approved curriculum providers.