UPDATE...FROM THE NC CPA P PRESIDENT WELCOME New Members 2 Message From the Editor 3 Successor Liability for a Buyer in M&A Transactions: One Little-Known Exception to the General Rule 3 Telecommuting---Part II—Five Steps to Evaluating a Telecommuting Request 4 Client Consent Required to Assist with Health Care Premium Tax Credit Applications 4 NCCPAP Invited to Testify by Congress 5 2014 - 2015 Officer, Director Candidates 6 Profiles of The Candidates 6-8 NCCPAP 36th Annual Conference 9 In My Opinion.... 9 Recruitment and Retention: Could Emotional Intelligence Be The Answer 10-13 NCCPAP Begins to Award Grants to CPA Candidates 13 NCCPAP Membership Benefits 13 CASHBACK 14 National Ads 14-16 Florida Chapter News 17 Westchester/Rockland News 17 Westchester/Rockland Tax Tips 18-19 2014 LITPS - Save the Date 20 Nassau/Suffolk Chapter News 21-23 IRS Amends Regulations for Written Tax Advice: Say Goodbye to the Circular 230 Disclaimer at the End of Emails 24 OVDP – New Streamlined Compliance and Transitional Procedures 24 Membership Appreciation Dinner 25 Nassau/Suffolk Chapter Ads 26-27 Calendars for LIE, NYC, Northern NJ, Central NJ, Delaware Valley PA, Massachusetts, Blank Rome 28 Membership Application 29 Why NCCPAP? As our tag line says, members of NCCPAP, are practitioners helping practitioners. And this takes many forms. Have a tax, accounting, audit, or MAP question? We intend to make available to our members, a list of “experts” or “go to people” to help you when you have questions. And this service is offered free to members by members. Need discounts on office supplies, shipping, or other items? As a member, you are entitled to these and other discounts. And through our close relationship with ADP, members can obtain ADP’s services for free for their firm's payroll. Just call our National office to find out more. Want to learn how to manage your practice? Just sign up and attend one of the many MAP courses offered by us. Want to learn how to grow your practice? Want to learn how to replace a client who has left your firm? Want to learn how to work your client base to obtain new clients? Want to learn how to obtain more than one new client per week throughout the year? Attend one of our courses. Want to help influence proposed changes in Washington, DC or within your state? Join either our Tax or Issues (A&A) Committee. Decisions made at the Committee level form the basis of how we try and help our more than one million cumulative clients; how we explain to politicians and their staffers at the federal, state, or local levels why certain issues make sense or not. Why some rules need to change; why some should not change. And membership on either committee (or both) is encouraged. Remember that NCCPAP membership is comprised of CPAs in public practice who want to provide the right information to their clients; who obtain the benefits of a large firm while still maintaining their own individual practice. We are truly practitioners helping practitioners; we are CPAs who want the right things for their clients. In closing, I want to say what an honor it has been to lead you these last two years. Yet, this never would have happened without your encouragement. It never would have happened without being surrounded by others who provide the leadership to make things happen; to make our voice heard. To each of you, a big thank you! Ed Caine, CPA President NCCPAP [email protected]
30
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Transcript
UPDATE...FROM THE NCCPAP PRESIDENT
WELCOME New Members 2
Message From the Editor 3
Successor Liability for a Buyer in M&A
Transactions: One Little-Known Exception to
the General Rule 3
Telecommuting---Part II—Five Steps to
Evaluating a Telecommuting Request 4
Client Consent Required to Assist with Health
Care Premium Tax Credit Applications 4
NCCPAP Invited to Testify by Congress 5
2014 - 2015 Offi cer, Director Candidates 6
Profi les of The Candidates 6-8
NCCPAP 36th Annual Conference 9
In My Opinion.... 9
Recruitment and Retention:
Could Emotional Intelligence
Be The Answer 10-13
NCCPAP Begins to Award Grants to CPA
Candidates 13
NCCPAP Membership Benefi ts 13
CASHBACK 14
National Ads 14-16
Florida Chapter News 17
Westchester/Rockland News 17
Westchester/Rockland Tax Tips 18-19
2014 LITPS - Save the Date 20
Nassau/Suffolk Chapter News 21-23
IRS Amends Regulations for Written
Tax Advice: Say Goodbye to the Circular
230 Disclaimer at the End of Emails 24
OVDP – New Streamlined Compliance and
Transitional Procedures 24
Membership Appreciation Dinner 25
Nassau/Suffolk Chapter Ads 26-27
Calendars for LIE, NYC, Northern NJ,
Central NJ, Delaware Valley PA,
Massachusetts, Blank Rome 28
Membership Application 29
Why NCCPAP?
As our tag line says, members of NCCPAP, are practitioners helping
practitioners. And this takes many forms. Have a tax, accounting,
audit, or MAP question? We intend to make available to our
members, a list of “experts” or “go to people” to help you when
you have questions. And this service is offered free to members
by members. Need discounts on offi ce supplies, shipping, or other
items? As a member, you are entitled to these and other discounts.
And through our close relationship with ADP, members can obtain ADP’s services for
free for their fi rm's payroll. Just call our National offi ce to fi nd out more.
Want to learn how to manage your practice? Just sign up and attend one of the many
MAP courses offered by us. Want to learn how to grow your practice? Want to learn
how to replace a client who has left your fi rm? Want to learn how to work your client
base to obtain new clients? Want to learn how to obtain more than one new client per
week throughout the year? Attend one of our courses.
Want to help infl uence proposed changes in Washington, DC or within your state? Join
either our Tax or Issues (A&A) Committee. Decisions made at the Committee level
form the basis of how we try and help our more than one million cumulative clients;
how we explain to politicians and their staffers at the federal, state, or local levels why
certain issues make sense or not. Why some rules need to change; why some should
not change. And membership on either committee (or both) is encouraged.
Remember that NCCPAP membership is comprised of CPAs in public practice who
want to provide the right information to their clients; who obtain the benefi ts of a large
fi rm while still maintaining their own individual practice. We are truly practitioners
helping practitioners; we are CPAs who want the right things for their clients.
In closing, I want to say what an honor it has been to lead you these last two years. Yet,
this never would have happened without your encouragement. It never would have
happened without being surrounded by others who provide the leadership to make
things happen; to make our voice heard. To each of you, a big thank you!
President Edward Caine, CPA Executive VP Sandra Johnson, CPA Vice Presidents: Kenneth Hauptman, CPA Donald Ingram, CPA Sanford Zinman, CPA Secretary Stephen Mankowski, CPA Treasurer Stuart Lang, CPA Immed. Past President Lana Kupferschmid, CPA
Bruce Berkowitz, CPA Neil Fishman, CPA Frank Gallo, CPA Carol Markman, CPA Lynne Marcus, CPA David Rothfeld, CPA Paula Sheppard, CPA Ronald Tockman, CPA Barry Zalk, CPA
Boston, MA Jeffrey Winer, CPA Delaware Valley Joseph Lowe, CPAFlorida Lynne Marcus, CPA Long Island East, NY James Diapoules, CPA Nassau/Suffolk, LI Michael Rubinstein, CPA New Jersey (Northern) Fred Bachmann, CPA New York City, NY Anthony Candela, CPA Westchester/Rockland, NY Sanford Zinman, CPA
New Jersey (Central) John Raspante, CPA
Tax Stephen Mankowski, CPA Issues Alan Feldstein, CPAMembership Sandra Johnson, CPATechnology Lana Kupferschmid, CPA Stephen Palmerio, CPA By-Laws Robert Markman, CPAForward Planning Sandra Johnson, CPAPeer Review Frank Gallo, CPAEducation Susan Gallo, CPAMAP Paula Sheppard, CPAPublic Relations David Rothfeld, CPA Carol Markman, CPAEthics Barry Zalk, CPAChap Reps to be announcedNominating Susan Gallo, CPAScholarship Jeffrey Winer, CPAAudit Carol Markman, CPA
Holly Coscetta
Editor Frimette Kass, CPA Editorial Board Carol Markman, CPA Stephen Mankowski, CPA Alexander K. Buccholz, CPA
2011-2012: Lana Kupferschmid2009-2011: Andrew L. Hult, CPA2007-2009: Karen Giunta, CPA2005-2007: Dennis Scott, CPA2003-2005: Carol C. Markman, CPA2001-2003: Alan Feldstein, CPA1999-2001: Robert Goldfarb, CPA1998-1999: Carole M. Roble, CPA1996-1998: Herbert Schoenfeld, CPA1995-1996: Theodore Feher, CPA1993-1995: Mitchell Klein, CPA
1991-1993: Peter Ciccone, CPA1989-1991: Charles W. Newton, CPA1988-1989: Jerome Fien, CPA1987-1988: Edwin Kliegman, CPA1986-1987: John Sehrt Jr., CPA (Deceased)1985-1986: Eli Mason, CPA (Deceased)1984-1985: Irwin Pomerantz, CPA1983-1984: John MacMullen, CPA1982-1983: Sam Fisher, CPA1981-1982: Ralph Rehmet, CPA1980-1981: Clint Romig, CPA (Deceased)
PAGE 2 NATIONAL
JOURNAL OF THE CPA PRACTITIONERS is published by the National Conference of CPA Practitioners (NCCPAP) , a not-for-profi t New York association. Editorial: Copy due the 10th of the month preceding publication. Advertising: Camera-ready art due the 12th of the month preceding publication. No articles herein may be reproduced without expressed permission of NCCPAP. NCCPAP is not responsible for any error or omissions in advertising matters. Depiction, likenesses, drawings or photographs of any person, whether living or dead, appearing in any advertising matters, is solely the responsibility of the advertisers. Submitted articles are expressed opinions of the authors and are not necessarily the opinions of the Offi cers or Board of Directors of NCCPAP.
It is the policy of the National Conference of CPA Practitioners (NCCPAP) that the use of the organization’s mailing and contact lists for commercial purposes without the specifi c written authorization of the Board of Directors is strictly prohibited.
Views expressed in articles printed in Journal of the CPA Practitioner are the authors' only and are not to be attributed to the publication, its editors, the National Conference of CPA Practitioners, or their directors, offi cers, or employees, unless expressly so stated. Articles contain information believed by the authors to be accurate, but the publisher, editors and authors are not engaged in rendering legal, accounting or other professional services. If specifi c professional advice or assistance is required, the services of a competent professional should be sought.
The National Conference of CPA Practitioners is a non-profi t organization. A copy of Form 990 may be found at www.guidestar.org
June-August 2014
Affordable Accounting Solutions (subscriber) Philadelphia, PAARCAP Partners (subscriber) East Norwich, NYClyde P. Millman, CPA PC Plainview, NYPareshah Financial Services (subscriber) Rego Park, NYLaura Sabbagh, CPA PC Wantagh, NYKessler Liscia Gonzalez & Timms PLLC Selden, NY
(l-r) Donald Payne (D, NJ), Terry Durkin (President-Elect, NAEA), Steve Mankowski, Donald Williamson (Executive Director, Kogod Tax Center, American University), Tom Rice (R, SC) Chairman of the Small Business Committee, Sarah Windham (Sr. Manager, Dixon, Hughes Goodman, LP), Judy Cho (D, CA) Ranking Member of the Small Business Committee.
Tom Rice and Steve MankowskiSteve Mankowski
NATIONAL PAGE 5
Over the last few years, NCCPAP has been invited to testify at
Congressional hearings on several occasions. Testifying
is actually the by-product of the work performed by the
NCCPAP Tax Committee. As Chair, I participate in the monthly
Public Liaison meetings at IRS HQ, present at the quarterly
Board meetings, prepare our IRS and Congressional Agendas
with committee input and support, and schedule meetings with
Legislative Directors in Congress. These meetings generally
occur during the May Board meeting in Washington, DC. Often,
however, we are not able to meet with everyone that we would
like to, so meetings are scheduled to coincide with the monthly
trips to DC.
Recently, while trying to schedule a meeting to review our
agendas with the Ranking Member of the House Small
Business, we were invited to testify on their behalf.
The honor of providing that testimony tends to fall upon the
Tax Committee Chairperson. This was again the case in July
when we were invited to testify for the House Small Business
Subcommittee on Economic Growth, Tax and Capital Access.
The topic was Cash Accounting: A Simpler Method for Small
Firms?”
Testifying might seem like an easy task. Witnesses are required
to submit written testimony within 48 hours of the hearing, then
prepare oral testimony not to exceed 5 minutes. And to make
this even more “enjoyable”, the hearing was being held on
July 10th so I had a fun 4th of July weekend writing my initial
drafts of the testimony. I want to take a moment to thank Neil
Fishman, Ed Caine, Carol Markman, Sandy Zinman, and Frank
Gallo for their assistance with reading and editing my testimony.
The actual hearing, which was televised by CSPAN and web
streamed, was attended by many of the members of the
committee, their staff and those supporting the witnesses. The
opinions of the witness, while similar, were actually divided
down the middle. The division was not whether cash or accrual
is better for small businesses; rather, two witnesses actually
advocated the use of PURE CASH.
After providing our testimony, all members of the committee
were able to ask us questions. One telling comment was offered
by the Chairman, Tom Rice. He noted that many issues begin
with those in Washington who pass legislation that hinders the
growth of businesses rather than promoting an environment of
growth. He cited the 51 employee threshold of the employer
mandate of the Affordable Care Act (ACA) where many employers
will limit part-time hours and not exceed 50 employees rather
than fall under the ACA rules. Having businesses convert to
accrual basis of accounting was yet another of those policies.
I had the opportunity to meet with my contact on the Small
Business Committee last week. All of the staff was impressed
with my testimony and will defi nitely keep me and NCCPAP in
mind for future tax related testimony.
If you would like to learn more about the Tax Committee, please
and General Mood. Each scale consists of sub-scales, for a total of
15 sub-scales. A high total score or a high score on any individual
scale indicates a high level of emotional and social competency.
The sampling frame, provided by the New York State Society of
CPAs (NYSSCPA), consisted of CPAs and accounting professionals
employed in CPA fi rms. The NYSSCPA selected only accounting
professionals who were employed in CPA fi rms from among their
28,000 members. The NYSSCPA emailed the subset of 5,129
CPAs and accounting professionals employed in CPA fi rms. The
survey was performed and the sample information was received
in the spring 2013.
To stimulate a high response rate, the introductory email included
a letter explaining the importance of the research and the steps
for participation. A follow up email would have also been sent,
if necessary, to increase the response rate. The NYSSCPA would
have sent a second email, if necessary, one week after the initial
invitation as a reminder requesting participation if the initial email
did not yield the minimum required number of participants. The
matching and exclusion of missing values resulted in a sample
size of 78 from the 85 total participants. Data collection closed
after the number of participants reached the desired sample size,
which limited the response rate to 1.7% of the 5,129 accounting
professionals surveyed.
Study participants were asked seven demographic questions about
their age, gender, current employment as a public accountant,
ethnicity, time employed in current position, time employed in
public accounting, and type of work performed. Exhibit 1 includes
a summary of the sample demographics. The results indicate
that more than half of the participants were less than 40 years
old. Slightly less than one-third of the participants (30.8%) were
between 20 and 29 years. A little over one-quarter were between
30 and 39 years (28.2%). Only 6.4% participants were over 60
years. With more than half of the participants (59.0%) being 39
years old or less, indicates the sample was dominated by younger
participants. The NYSSCPA could not provide demographic
information to determine if each age category of the participants
was accurately represented in the current study. The Trends
Report (AICPA, 2011) provided access to demographics of the
population for gender, race, and type of work performed.
In the current study, the number of male participants (52.6%) was
slightly higher than the number of female participants (47.4%). In
the Trends Report (AICPA, 2011), the demographics for gender
were 55% male and 45% female which was consistent with the
results of the current study.
The overwhelming majority of participants (89.7%) in the current
study were White or Caucasian. The percentage of White or
Caucasian participants in the current study was higher than the
percentage (79%) reported in Trends Report (AICPA, 2011) for the
similar category. The percentages of Blacks or African Americans
and Hispanics or Latinos in the study were consistent with the
Trends Report. The proportion of minorities (10.3%) in the study
PAGE 12 NATIONAL
sample were underrepresented in the current study. The Asian
(1.3%) category was the most underrepresented category
compared to the Trends Reports (11%). There is no reason to
believe minorities would be unrepresented in NYSSCPA. The
unrepresentation of minorities in the sample appears to be an
artifact of purposive sampling among NYSSCPA.
More than half of the participants (52.6%) were employed in their
current position for 2-5 years, 16.7% were employed in current
position for 6-10 years, and 16.7% were employed in their position
for over 15 years. A little less than one-third of participants (32.1%)
were employed in public accounting for over 15 years, 28.2% for
2-5 years, 24.4% for 6-10 years, and 14.1% for 11-15 years.
In the current study, most participants (47.4%) performed audit
work. The next most frequent work type was taxation, reported by
32.1% participants. The demographics reported by assignment
in the Trend Report (AICPA, 2011) for auditing and assurance
services (52%) and taxation (25%) was somewhat consistent
with the results of the current study. (The detailed demographics
information is available on request.)
Accounting professionals working in public accounting took the EQ-
i:S to measure their EI. Scores were calculated for interpersonal
EI factor, stress management EI factor, and total EI. Multi-Health
Systems, Inc. calculated the total EI score by converting raw
scores to standard scores. Individuals whose standard scores
are between 85 and 115 is within average range and represents
effective EI skills (Bar-On, 2002). Participants whose standard
scores are above 115 have enhanced emotional and social
intelligent behaviors. The scoring for the EQ-i:S is similar to IQ
tests. Results revealed public accounting professionals scored
somewhat below average (M = 100) on interpersonal EI factor (M
= 96.96). The participants scored somewhat above the average
(M = 100) on stress management EI factor (M = 104.69). The
participants’ mean total EI score (M = 96.56) was almost the
same as the average.
The results indicated a positive and signifi cant effect of total EI on
job satisfaction indicating that increased total EI brings more job
satisfaction. The results indicated that as total EI increases, job
satisfaction increases as well. As expected, emotional intelligence
was found to be positively associated with and a signifi cant
predictor of job satisfaction. Furthermore, participants’ scores
indicate that EI employees experience greater job satisfaction.
The results of the study indicated a positive and signifi cant
relationship between interpersonal EI factor and job satisfaction.
The results indicated that as interpersonal EI factor increases, job
satisfaction increases as well. While the current study could not
establish causality, a positive and signifi cant relationship exists
between the interpersonal EI factor and job satisfaction. The
correlations imply that individuals who managed and understood
emotions well were more satisfi ed with the job than individuals
who did not manage and understand his or her emotions.
The results of the study seeking to determine whether a relationship
exists between stress management EI factor and job satisfaction
among accounting professionals yielded mixed results. The lack of
relationship between stress management EI and job satisfaction in
the current study is surprising due to a majority of the participants
indicating they worked in taxation or auditing which both have
pressures and stress to complete assignments by deadlines.
In the current study, a positive and signifi cant relationship between
total EI and job satisfaction and between the interpersonal EI factor
and job satisfaction among public accountants working in certifi ed
public accounting fi rms limited to New York who are members of the
NYSSCPA, a homogeneous sample. The relationship between EI
and job satisfaction might only be signifi cant to the homogeneous
sample of public accountants working in CPA fi rms limited to New
York who are members of the NYSSCPA.
Perhaps the relationship between EI and job satisfaction may,
at least to some extent, depend on the participants’ occupation.
The current study is the fi rst study that measured the relationship
between EI and job satisfaction among accounting professionals
working in public accounting. The assumption in the current study
was job satisfaction is a function of an individual’s disposition
(such as EI); thus, in the current study, accounting professionals
have the predisposition to having more satisfaction with their job
regardless of job environment or working conditions.
Job satisfaction is a contributing factor in job retention. An
accountant’s intent to remain in the industry was directly related
to job satisfaction; thus, factors that contribute to job satisfaction
have implications for job retention (M. Afzalur Rahim & Mainuddin
Afsa, “Leader power, commitment, satisfaction, compliance and
propensity to leave a job among U.S. accountants”, 2001, Journal
of Social Psychology, pp. 611-625). Firm leaders’ need to identify
factors associated with job satisfaction in order to understand how
to retain employees.
Employees who have emotional skills are more apt to experience
job satisfaction than those without the emotional skills. Since
a relationship exists between EI and job satisfaction, employers
could use EI measures in pre-employment screenings to identify
individuals with high EI, who consequently, may have increased
likelihood to be satisfi ed with the job and remain in the accounting
profession. Job satisfaction is one contributing factor in job
retention. Understanding factors contributing to job satisfaction
may facilitate understanding of how to retain individuals.
Job satisfaction is important to retain and meet the demand for
accountants. It is important for leaders of accounting fi rms to
continue to identify factors that contribute to job satisfaction and
retention of their employees. Leaders at accounting fi rms need to
know how to identify candidates who are likely to be satisfi ed with
their positions and how to increase the satisfaction of currently
employed accountants to increase the retention of accountants.
The current study has practical applications for the steps leaders
at public accounting fi rms might take to meet the demand for
accounting professionals. Given the positive and signifi cant
relationship between total EI and job satisfaction, leaders of
NATIONAL PAGE 13
accounting fi rms should consider building EI measures into the
accountant selection process in order to better retain public
accountants. The results of the current study could be signifi cant
by providing the necessary foundation to assist accounting
leaders and human resource personnel to address the problem
of accounting fi rms retaining adequate number of accounting
professionals to meet current and future demand.
Recruitment and retention within the public accounting profession
has long been a problem because of high rates of employee
turnover. The study addressed the inability of accounting fi rms
to retain adequate numbers of accountants by examining the
relationship between emotional intelligence (EI) on job satisfaction
among public accounting professionals. The study investigated
the relationship between EI and job satisfaction among public
accountants working certifi ed public accounting fi rms in New York
who are members of the New York State Society of Certifi ed Public
Accountants (NYSSCPA). The results indicate that leaders of public
accounting fi rms might consider using emotional intelligence and
the EQ-i:S as a tool in the recruitment and selection process of
accounting professionals to address the problem of accounting
fi rms retaining adequate number of accounting professionals to
meet current and future demand.
Article was subbmitted by Dr. David Glodstein CPA, CFE Asst. Professor at SUNY Old Westbury/Forensic Accounting Consultant. He can be reached at ([email protected])
• ADP –Free Standard Payroll Processing for your
Accounting Firm and discounts available in Payroll
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with RUN Powered by ADP®.
• JOBTARGET/NCCPAP Career Center. Online job board,
resume bank, career advice, resume services, etc.
• First Benefi t Health Savings Card- *This is not insurance
nor is it intended to replace insurance. This discount card
program that provides discounts at certain healthcare
providers for medical services.
• BISK. Bisk CPEasy. 25% discount.
• IShade- a private online community for ncCPAp members.
Within the ncCPAp group you can: Network other ncCPAp
members, Access private special interest groups and
tools and resources, Share your expertise and ideas with
members
• Practitioners Publishing. Discount 20%. Certain products
do not qualify for discount; call the NCCPAP National
Offi ce (discount does not apply to yearly updates).
• CCH. 25% discount on CCH products shipped and billed
directly to you.
• 1-800-FLOWERS® 15% discount.
• WWW.Offi ceQuarters.com. Offi ce supplies, etc. Minimum
of 5% discount.
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provides you and your fi rm with
valuable discounts, informational tools and
the enhanced services you need to succeed
in today’s business environment. NCCPAP
wants to be your business partner in a whole
line of affi nity programs.
Call or email the National offi ce for further details.
The National Conference of CPA Practitioners (NCCPAP)
has begun awarding a limited number of competitive
merit-based $500 awards to outstanding college
students who have completed their undergraduate program in
a U.S. accredited college and have sat for the certifi ed public
accountant exam.
The applications are on-line at http://go.nccpap.org/NCCPAP/
Participate/Grants.
The grant applications are accepted on a rolling basis
throughout the year. Annually all grant applications received
by December 15th are awarded the following January.
Applications received after December 15th will be reviewed
Effective June 12, 2014, the IRS has announced revisions
to Circular 230: Regulations Governing Practice Before the
Internal Revenue Service that are designed, in part, to provide
a more fl exible standard for all written tax advice. The regulations
require that practitioners base all written advice on reasonable
factual and legal assumptions, exercise reasonable reliance and
consider all relevant facts the practitioner knows or should know.
The new Circular 230 can be found at http://www.irs.gov/pub/irs-
pdf/pcir230.pdf .
The most publicized change is the elimination of Covered
Opinion Rules in §10.35, which required practitioners providing
covered opinions to make certain disclosures in marketed opinions,
limited scope opinions and other opinions. What this means is that
a disclaimer under Circular 230 is no longer required. The IRS has,
in fact, indicated that continued use of disclaimers that imply that
they are required or pursuant to Circular 230 or related regulations
would be misleading. Those practitioners who continue to include
disclaimers that indicate they are required by Circular 230 or the
IRS will receive cease-and-desist letters.
The elimination of the disclaimer requirement was
prompted in large part by widespread overuse, where the disclaimer
would appear on all written correspondence regardless of whether it
was a covered opinion. Although the new regulations do not prohibit
the use of general disclaimers that do not reference Circular 230
or IRS regulations, it may be benefi cial for fi rms to provide tailored
disclosures based on the particular facts and circumstances
of an engagement rather than a generalized broad disclaimer
automatically attached to every correspondence without regard
to whether the correspondence provides advice. A customized
approach is also in keeping with the new standard governing
written advice and can incorporate appropriate limitations based
on factors such as the scope of engagement, the information
available and the actual opinion provided.
However, this does not mean, that the use of all
disclaimers should be discontinued. Firms should continue to use
a “Confi dentiality” disclosure to provide protection in the event of
an inadvertent breach of confi dential communications.
Article was submitted by Thomas Manisero, Esq of Wilson Elser Moskowitz Edelman & Dicker LLP. Tom can be reached at 914-872 -7229 or email [email protected].
PAGE 24 NASSAU/SUFFOLK CHAPTER
On June 18, 2014 the IRS announced new procedures
for taxpayers with undisclosed foreign fi nancial
accounts may. Most notably, the Domestic Streamlined
Compliance Procedure provides a tempting alternative to the
OVDP for two reasons. First, it imposes a reduced 5% offshore
penalty versus the OVDP standard penalty of 27.5%. Second, it
requires back taxes for a three year period versus the OVDP’s
eight year period. Further, previously unfi led informational forms
(e.g., 8938 and 5471) need to be fi led for the three year period.
A separate Foreign Streamlined Procedure applies for taxpayers
who are non-US residents. A zero percent offshore penalty
applies under this Procedure. Other characteristics of the
Domestic Streamlined Procedure remain in the Foreign version.
Non-resident taxpayers must fi le three years of amended
tax returns or three years of original returns if the taxpayer
previously failed to fi le.
Under either Procedure, a taxpayer must submit a statement
under penalty of perjury that the taxpayer’s conduct was
non-willful. Non-willful is defi ned as “conduct that is due to
negligence, inadvertence, or mistake or conduct that is the
result of a good faith misunderstanding of the requirements of
the law.” Care must be taken; if the IRS fi nds the conduct willful,
the Procedures offer no protection from further IRS enforcement
or criminal penalties.
Taxpayers do not receive an IRS closing agreement and any
submission is subject to a full IRS audit. Taxpayers who disclose
under the Streamlined Procedures will not be able to switch to
or enter the OVDP. Given the uncertainty, practitioners should
be cautious in advising the tempting Streamlined route.
Taxpayers who entered the OVDP before the Procedure was
available, may still be eligible to apply for the preferential fi ve
percent or zero percent offshore penalty under “Transitional
Treatment.” To be eligible such taxpayers must not have
executed a closing agreement with the IRS under the OVDP and
otherwise qualify for the Foreign or Domestic Procedure. The
IRS will individually review every eligible transitional case and
provide a closing agreement upon acceptance. If the IRS denies
the preferential penalty due to fi nding willfulness, the taxpayer
could reenter the OVDP.
Given the complexity of the various considerations, taxpayers
with non-compliant foreign accounts are urged to seek
professional advice.
Robert S. Barnett, CPA, JD, MS (taxation) is a partner at Capell Barnett Matalon & Schoenfeld LLP in Jericho, New York, where he heads the tax and estate planning departments.Mikhail E. Lezhnev, JD, MBA is an associate in the tax and estate planning departments at Capell Barnett Matalon & Schoenfeld LLP in Jericho, New York.
1 Hour Networking
Wine and Beer 5-6 PM
Full Dinner and Dessert
- Nationally Acclaimed “Social
Security Maven” Will Speak
About Social Security Planning.
- When And How To Best Apply.
- Planning Techniques & Benefits
- Mulligans And Do-Over’s
- Tax Benefits And Planning
- Navigating The Maze Of Options
- Cost – Benefit Analysis
- Annuities In Trust
Location: Mio Posto Restaurant - 600 W Old Country Road, Hicksville, NY 11801
Time: Networking Hour: 5:00 to 6:00 PM Dinner: 6:00 - 6:45 PM Program: 6:45 to 8:30 PM
Cost: Members $40.00 - Invite a NON-Member* and receive $10.00 back.
Your CPA Guest comes for Free!
*NON-Member requirements is a CPA who has NEVER previously attended a NCCPAP Event.
Contact: [email protected] to verify if your guest has never attended any events.
First Individual – non-CPA ! rm – No Voting rights
Name:_______________________________________
Email Address:________________________________
PTIN #:______________________________________
Other Owner/Sta" Member - No Voting rights
Name:_______________________________________
Email Address:________________________________
CPA License #:_______________________State:_____
PTIN #:______________________________________
Please list other owners(s)/sta� member(s) on separate page
Dues Schedule (includes $195/base charge)
• CPA owner - designated as the individual entitled to vote $270 • Non CPA � rm - First Individual - no voting rights $270 • Each additional owner(s) or sta� member(s) - no voting rights $ 75 • Maximum dues for any � rm $870 • Retired CPA - no voting rights $135
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