Chapter of Enrolled Agents

Far Northern California Chapter of Enrolled Agents S e p t e m b e r 2 0 1 4

PRESIDENT’S MESSAGE:

N October is right around the corner and before we know it the holiday season will be here. Last weeks rain and cooler weather were a welcomed event.

E You all should have received the seminar registration forms early this month. I hope you were able to take advantage of the early bird discount of $35 by signing up by September 15th. If not, you will have the chance to do so on our next two seminars. The W Quickfinder/Tax Book order forms also went out this month. Make sure you place your order for them by November 15th and take $25 off your first book as a member benefit.

Our Chapter Annual dinner will be held October 30th at Cattleman’s Restaurant right after

S Day 1 of the seminar. CSEA’s First Vice President Doug Pickford, EA will be our guest and present the chapter awards. The food is great and there are multiple door prizes to be given away. Where else can you have a wonderful evening for $15? I hope to see new L faces this year. Make sure to RSVP to Sandra at 547-4474 so we know how many to expect.

E See you at the seminar!!!!

Respectfully Submitted, Michele Williams, E.A. President

T Board Meetings and Roundtable Schedules

Oct 01, 2014 - Board Meeting - 9:30am Holiday Inn Express, Red Bluff

E Redding Roundtable: 12:00p.m. Lulu’s Restaurant 2230 Pine St, Rdg Subject: Affordable Health Care

R Oct 02, 2014 - Chico Roundtable: 8:00a.m. Cozy Diner 1695 Mangrove Ave., Chico Subject: Dan Davis, CRTP – Annual Filing Season initiated by IRS

Nov 05, 2014 - Board Meeting – via Conference Call Redding Roundtable: 12:00p.m. Lulu’s Restaurant 2230 Pine St, Rdg Subject: Bill Reilly, EA – Not for Profit Organizations Nov 06, 2014 - Chico Roundtable: 8:00a.m. Cozy Diner 1695 Mangrove Ave., Chico

1 Subject: Tracie Hannick, EA Healthcare form Upcoming CONTINUING EDUCATION SCHEDULE

****Note: You MUST give your PTIN number when registering or you will NOT receive your CE Certificate.

YOUR OPINION COUNTS!!!

TELL US WHAT YOU THINK ABOUT FNCC’S SEMINARS. 1) Do you think they should be held elsewhere? 2) Do you think we should use different speakers? 3) Should we split the two day into one day each in order to accommodate those only wanting one day? 4) How’s the menu? Should we have more variety on the menu?

NEW! NATP 2 Day Seminar 1040 Update- S Corporations & Ethics October 30th and October 31st Earn 16 hours of CPE in Two Days 2014 The Essential 1040 Day One :

For 29 years NATP has been providing the best tax update in the country to prepare professionals for the coming tax season. This tradition of excellence will continue in 2014. This course covers the standard features of the inflation-indexed updates for preparing individuals’ 2014 tax returns, new tax laws applicable to 2014 and recent developments. This course satisfies 8 hours of CPE including 3 hours of tax updates.

Objectives include:  Apply inflation-adjusted amounts to 2014 individual tax returns  Identify expired tax provisions  Summarize new federal tax laws that have passed since 2013  Identify federal tax provisions first taking effect in 2014  Apple the latest court and IRS rulings to taxpayers’ current situations  Provide tax advice for clients in light of new developments  Describe the current IRS hands-on initiative to improve the accuracy and quality of filed tax returns and to heighten awareness of preparer responsibilities

2  Explain the Circular 230 rules governing individuals eligible to represent taxpayers before the Internal Revenue Service (IRS)  Identify the various penalties that can be assessed on a tax return preparer and how to avoid them  Explain due diligence requirements for earned income tax credit (EIC)

2014 Intermediate S Corporations Day Two:

This hands-on course is ideal for tax professionals who have prepared S corporation returns and are looking to improve their skills to assist clients with their continuing needs. Topics covered include reasonable compensation, book to taxable income reconciliation, distributions and shareholder basis, shareholder loss limitations, and ownership changes.

Objectives include:  Compute the shareholder’s stock and debt basis in the S corporation  Determine the timing and ordering rules for basis adjustments  Explain how distributions from an S corporation are taxed  Report the repayment of reduced-basis debt  Distinguish between basis for regular tax and AMT purposes  Calculate a shareholder’s at-risk basis  Explain the passive loss limitations that apply to S corporation shareholders  Identify when Schedule M-3 (Form 1120S)  Complete Form 8916-A, Supplemental Attachment to Schedule M-3  Explain the taxation of an S corporation stock sale  Explain how income and losses are allocated when there is an ownership change  Identify an inadvertent termination of the S election and explain how to fix it  Explain how to report a property foreclosure and summarize the tax consequences  Determine if an S corporation has cancellation of debt income  List several ways an S corporation can exclude canceled debt from gross income  Determine if an S corporation is bankrupt or insolvent  Explain the taxation of an S corporation stock sale  Explain the tax consequences and reporting requirements for stock redemption  Allocate shareholders’ income and losses when there is an ownership change  Explain how to fix an inadvertent termination of S election  Determine if an S corporation is paying a reasonable salary to its shareholder-employees  Identify an S corporation’s course of action when the S corporation does not have available funds to pay its shareholder-employees  Report the compensation of shareholder-employees, including certain fringe benefits, on Forms 1120S and W-2

The Seminar will be at the Holiday Inn, 1900 Hilltop Dr., Redding. Lunch is included with registration. Seminar hours are 8am to 5pm, Early Bird registration Members $345.00 / Non Members $375.00, postmark/fax by 9/15/14, afterwards Members $380.00 / Non Members $410.00, at the door $475.00. See FNCC.org for registration information.

3 Annual Member Dinner at Cattlemen’s Restaurant Join us Thursday, October 30th at 5 pm for our annual member dinner. We will stroll over to Cattlemen’s Restaurant, immediately following the 1040 Update Seminar day one. Come and join us at one of Redding’s finest steakhouses! We will have raffle prizes and meet CSEA’s new Vice President, Doug Pickford, EA who will be handing our awards. Every year members look forward to sharing this great time relaxing with fellow Enrolled Agents. The cost for members is $15.00 and guests are $30.00. We will have an assortment of menu items to choose from such as: Steaks, Chicken, Pesto Ravioli and of course Salmon. RSVPs must be in by October 23 rd , 2014. Contact Sandra Lamberson, EA event coordinator at [email protected] or (530) 547-4474.

AFFORDABLE HEALTH CARE ACT December 9th, 2014 ROLLING HILLS CASINO, CORNING

Speaker John Stevco with Gear Up will present this important new tax law and discuss the latest changes that YOU NEED TO KNOW. Earn 8 hours of Continuing Education at this state of the art facility, including lunch. Seminar hours 8:00am to 5:00pm. Early bird prices: Members $190.00 / Non Members $205.00 postmarked/fax until 11/3/14, afterwards Members $210.00 / Non Members $225.00, at the door $275.00. See FNCC.org for registration details.

Cal Fed Last Chance Update » January 08, 2015 Back by popular demand....This is your last chance! Important planning for 2014!

NATP speaker(s) present this course for the busy tax professional that needs to know the essentials of important changes from the previous year, including recent tax law changes, court cases and IRS rulings. The federal government continues to be very active with regard to

4 changes in the tax law and this has a major impact on preparing California tax returns. In addition, California will have several of its own.

Total CPE hours include 4 hours Federal Tax Update and 5 hours California Tax Update. The Seminar will be held at the Holiday Inn, 1900 Hilltop Dr., Redding, Lunch is included. Seminar hours are from 8:00am to 5:00pm. Early bird registration Members $190.00 / Non Members $205.00 postmark/fax by 12/02/14, afterwards Members $210.00 / Non Members $225.00, at the door $275.00. See FNCC.org for registration information.

Free OPR Webinar Covering Cirular 230 Changes

Hello Everyone,

The director of the IRS Office of Professional Responsibility, Karen Hawkins, will conduct a webinar on October 29 covering the recent changes to Treasury Department Circular No. 230, Rules Governing Practice Before the Internal Revenue Service (Circular 230 was updated in June).

There will also be a question-and-answer session during the webinar. In addition to the recent Circular 230 changes, the webinar will cover:

 Due diligence obligations of tax professionals  Overview of other key Circular 230 provisions  Practitioner responsibilities to their clients and to the Tax Administration System  Best Practices for all tax professionals  Office of Professional Responsibility (OPR) Policies and Procedures

The webinar is free, and will begin at 11a.m. Pacific. PTIN holders (including enrolled agents) can earn up to two continuing education credits for the webinar, which includes 1 hour of Ethics. Certificates of completion will also be issued to non-PTIN holders.

Details on registering for the webinar, Practicing Before the IRS: Circular 230 A to Z, are at http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Webinars-for-Tax- Practitioners- 1#Ethics.

Marc J. Zine, CPA Stakeholder Liaison/IRS-SBSE Stakeholder Liaison Field Operations

5 SEE CLASSES GOING ON NOW! Part 2 currently in session STUDENTS WANTED

Gleim and the Far Northern Chapter of the California Society of Enrolled Agents (CSEA) have partnered to offer a live Enrolled Agent (EA) review course in northern California beginning June 3, 2014. This comprehensive EA exam preparation review course provides live, weekly sessions designed to help you pass each part of the EA exam quickly and efficiently.

This offering is unique in terms of its affordability and the one-on-one attention you will receive. Candidates can engage in live classroom discussions with classmates and the instructor while also taking advantage of the online components from the comfort of their own home.

If you are a candidate who wants to pass the EA exam this year and appreciates the added value of a live instructor, contact Rose Hablitzel at 530.527.8225 or [email protected] for more information and to register. You can also visit fncc.org.

Class size is limited! Register NOW to reserve your seat. Part 2 began 8/19/14.

Are you already an Enrolled Agent? Please forward this opportunity to other tax preparers, as we want to help them excel as Enrolled Agents in 2014 as well.

Students can also sign up for online courses at NAEA’s website. Class details contact Rose Hablitzel @ 530-527-8225 or email [email protected].

SCHOLARSHIPS AVAILABLE

NAEA, CSEA and FNCC all have Scholarship funds set aside to financially help cover a portion of the education costs for those wishing to become an Enrolled Agent. Check out the following websites and telephone numbers for more information or copy the following links to access Scholarship applications: FNCC : 530-547-4474 Contact William Reilly, EA OR Jenny Wettemann, EA 530-347-3395

6 NAEA.Org : 202-822-6232 http://www.naea.org/NR/rdonlyres/800C71BF-8AD5-4858-B508- C89C508CD5D9/0/2008_SEE_Scholarship_Application.doc

CSEA.Org : 800-777-2732 http://www.csea.org/Portals/0/S-1%20Final%20non-EAs..pdf

National Public Liaison Tax Practitioners Meeting Highlights 9/18/14

IRS National Public Liaison recently held a meeting with national practitioner organizations, and the meeting summary was passed onto me in Sacramento. I think it’s very interesting, and has some “insider” information on Filing Season Communications, the new ACA TaxPros Page on IRS.gov, and Return Preparer Office updates on the new Annual Filing Season Compliance Program.

Attached is the meeting highlights.

Marc J. Zine , CPA

CSEA Education Foundation The primary purpose of the Foundation is to foster, improve and provide access to tax related information and services available to the general public through education programs and scholarships aimed at increasing the knowledge of current Enrolled Agents and potential EA candidates. There are two types of scholarships available. 1) California residents not currently or previously licensed as EAs are eligible to apply for a scholarship for tuition, including registration fees and books, for courses in the field of taxation, finance, or accounting, particularly courses specifically designed for Special Enrollment Examination (SEE) preparation. 2) Current California EAs who wish to broaden their knowledge in the field of taxation are eligible to apply for a scholarship for appropriate courses. Scholarships are NOT awarded for courses necessary to maintain Continuing Professional Education hour requirements, but are specifically intended for courses that expand the field of knowledge and expertise. Examples of appropriate courses include Tax Court, NTPI, C Star, etc. More information and Scholarship applications can be found at www.cseaeducationfoundation.org. Scholarship Awards and Foundation operating expenses are funded through the generosity of the Members of the California Society of Enrolled Agents and by sponsors, donors, and bidders of the Foundation’s annual Auction. Contributions to the CSEA Education Foundation are deductible for tax purposes. Donations of cash and merchandise can be made year round. For more information contact CSEA at 800-777- 2732 or 916-366-6646.

7 CSEA/NAEA POLITICAL ACTION COMMTTEE: (pictured right, Senator Ted Gaines, Rose Hablitzel, EA, center and William Reilly, EA, left)

The PAC has contributed too many legislators such as Senator Ted Gaines, (Redding Area), who are either on tax or budget committees. These legislators know what Enrolled Agents do and are interested in working with us. We are spending our budgeted amount and are in need to generate more funds to keep this action going. We are developing great relationships with these legislators that are in turn working with us on relevant and significant concerns of Enrolled Agents. Please donate and give generously to the NAEA PAC. Your dollars are working for you! Any contributions over $50 will receive a lapel pin from the NAEA PAC. Please make your contributions out to "NAEA PAC". Or, you may contribute to CSEA’s PAC for any amount and receive a CSEA pin. All members are encouraged to contribute since the PAC works for all Enrolled Agents and their Affiliates! Contact Rose Hablitzel, EA for further questions: 530-527-8225. NAEA’s “Get Your Hustle On” Membership Drive

1 Get Members Campaign Summary Kickoff: Begins July 1, 2014 – runs through June 30, 2015

Offer: Prospective members can be offered a 30-day money back guarantee Rewards: Members will get $10 off renewal (to be applied at time of renewal) for every new member sponsored Recognition in E@lert every month for sponsors and total members to date A Conference Ribbon – 1 Get Members

Top 8 Sponsors with at least 5 members sponsored gets a prize and special recognition (if there is a tie, winners will be determined by a drawing.) 1st -- $500 2nd -- $400 3rd -- $300 4-8th -- $100 each (5 prizes) Top 3 Affiliates by growth percentage – prize - $750 each

All new members submitted during the campaign will have their name entered into a drawing for one of three kindle fire HDX tablets.

A post card announcing the campaign will go to every NAEA member by the last week in June. The post card has www.IGetMembers.com with details, rules, prize list and tools to recruit, such as overcoming objections.

NAEA will be sending letters to the names on the latest PTin list and names in NAEA database that have been collected.

Applications can be downloaded from the NAEA website.

8 ADVERTISE YOUR NAME FOR FREE: Would you like your name advertised as an Enrolled Agent in your area? Let us know and we will list your name, address, phone number and specialty on your chapter’s website. Contact Karol Read, CRTP at [email protected].

EMBERSHIP Benefits

NAEA and CSEA are YOUR advocates in Congress and your personal representative in all facets of your profession! Below are some of the numerous benefits that NAEA/CSEA and your local chapter offer our members. ►discounts on tax/education materials ►discounted seminar fees (savings up to $75) ►discounted Quickfinder or Tax Book(s) ►discounted 2 hours of Ethics including lunch ►member to member mentoring & networking ►CSEA magazine / EA Journal ►redesigned website with the ►safe harbor disclosures/disclaimer sample latest E Tools on CSEA’s website letters & much more on the website ►FREE CE at monthly roundtables ►extensive representation/liaison federal & State ►NAEA $65 membership discount for a ►reduced annual member dinner

Our Organization: Michele Williams, EA President 221-7960 Fax 221-5736 Rex Cerro, Vice President 527-8225 Fax 527-1006 Sandra Lamberson, EA Secretary and Newsletter 547-4474 Fax 547-3004 Mary Ann Beguin, EA Treasurer 242-6278 Fax 242-6935 William Reilly, EA Director, Redding Area 547-4474 Fax 547-3004 Tracie Hannick, EA Director, Chico Area 893-0859 Fax 893-2643 Ardis Smith, EA State Director 824-1040 Fax 824-0594 Rose Fulton, EA Immediate Past President 527-8225 Fax 527-1006 Karol Read PIA Redding/Chico & Website 894-4041 Fax 894-5622

Editor: Sandra Lamberson, EA P.O. Box 1040 Palo Cedro, CA 96073 Office: 530-547-4474 Fax: 530-547-3004