The WashingtonCPA - July/August 2010

July/August 2010 Volume 53, Number 1

2118 New Washington Tax Law May Significantly Impact Service Businesses

Resources to Help CPAs Comply with IRC §7216

www.wscpa.org

12 Advocacy More Important Than Ever

washington

CPA

Why Going Green is Good, But Sustainable is Better

Tax Incentives for Green Building Construction

GreeN issue

3www.wscpa.org WashingtonCPA July/August 2010

www.wscpa.org • [email protected] Tel (425) 644-4800 • Toll free in WA (800) 272-8273

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Bellevue, WA 98005-3480

BOARD OF DIRECTORS James r. Ladd Chair Mark A. Hugh Vice Chair David E. Katri Secretary Mary D. Marino Treasurer Carmen J. Aguiar Immediate Past Chair Richard E. Jones President & CEO

Robert M. Cole, Jr. Russell D. Price Jolene G. Cox Thomas A. Pucci Peter E. Doubleday Lisa J. Sunderman Joyce G. Etheridge David E. Trujillo Michelle H. Gretsch Randy L. Wells Susan E. Legel William L. Wells Lucy L. Liu Glenn G. Wisegarver Nerelys M. Ortiz

CHAPTER BOARD CHAIRS Bryce Hansen Bellevue Area

Joseph Crowther Central Joseph M. Reid Central — North Seattle Richard E. Helke, II Northwest Vicki Dixon Olympia — Peninsula — Pierce County Amanda J. Goodman Sammamish Valley Connie L. Griffith Seattle Court Carter Snohomish County Michael K. Briggs South King County John Vogel South Sound Industry Trayson J. Harmon Southwest Shaun W. Johnson Spokane

— Wenatchee Katrina L. Cantu Yakima

Jeanette Kebede Editor

The WashingtonCPA is published by the Washington Soci-ety of Certified Public Accountants for its members. Views and opinions appearing in this publication are not necessarily endorsed by the WSCPA.

The products and services advertised in The Washington CPA have not been reviewed or endorsed by the Wash-ington Society of Certified Public Accountants, its board of directors or staff.

The WashingtonCPA (USPS 009754) is published six times annually by the Washington Society of Certified Public Accountants, 902 140th Avenue NE, Bellevue, WA 98005-3480. $12 of members’ annual dues goes toward a subscription to The WashingtonCPA.

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DeparTmenTS

CPAwa s h i n g t o n

4 Leadership Lens11 News Briefs12 Advocacy19 Industry Voice27 Financial Literacy25 Events

28 Members Only30 CPE Digest37 Registration Form38 Classified Ads39 Member Profile

CoNteNts

Green Issue6 Why Going Green is Good, But Sustainable is Better

9 Tax Incentives for Green Building Construction

29 Accessible Green IT

12 Advocacy More Important Than Ever

14 Annual Award Winners

18 New Washington Tax Law May Significantly Impact Service Businesses

21 Resources to Help CPAs Comply with IRC §7216

24 How to Start a CPA Blog

26 Cloud Computing: Is it Right for Your Firm?

4 WashingtonCPA July/August 2010 www.wscpa.org

LeAdersHip LeNs

NASBA (the National Association of State Boards of Accountancy)

recently announced that its President and CEO, David Costello, will retire effective January 1, 2012. Should anyone care? I think so. I do. So let me tell you why.

First, I suspect that most of our read-ers don’t really know who NASBA is. So let’s start there. NASBA is a profes-sional association whose members are current or former members of State Boards of Accountancy. The organization was started over 100 years ago and it continues today to provide a forum for its members to discuss professional and regulatory issues and trends affecting the regulation of the accounting profession.

NASBA is not a regulator or a profes-sional standards setter per se, but it plays a very active role in the regulation of the accounting profession. For example, many states look to NASBA to set the standards for what type of CPE will meet their licensing requirements and many states require NASBA’s certification as a condition of accepting the CPE for license renewal. NASBA owns one-third of the Uniform CPA Examination that all CPA candidates must past and they control the gateway for exam takers to go through to sit for the exam. They maintain a national database of information about all licensed CPAs in the country and this database is utilized by most states in their licensing and enforcement activities.

NASBA, along with the AICPA, is responsible for the development of the Uniform Accountancy Act (UAA), a model act that is the foundation for most states’ accounting statutes. NASBA alone is responsible for developing the rules under the UAA.

The list I have provided describes a small portion of what NASBA actually does. For example, through its for-profit subsidiary, Professional Credential Ser-vices (PCS), NASBA provides testing ser-vices and credentialing services to more

naSBa CeO is retiring—So What?By Rich Jones, CPA, President & CEO

David Costello has been an active force behind each of these issues and many more. He is a man of incredible energy, intellect, confidence and drive. He possesses the charm of a Southern Gentleman and the steely determination of high stakes poker player. He uses homi-lies and parables to make his point and tries to leave you with no option but to see things his way. And he is willing to be unpopular if necessary.

He has several top lieutenants who will be considered in the process to replace him. Best known is certainly Ken Bishop, who was recently promoted to Chief Operating Officer. Ken had been the CEO of NASBA’s for-profit subsidiary. He continues as a Senior Vice President of NASBA. Ken had a very significant role in the success of the Mobility initiative that NASBA, AICPA, The Accountants Coali-tion and State CPA Societies spearheaded over the past three years. In that role, he met with state boards and state legisla-tures across the country to encourage them to adopt the mobility provisions of the UAA. I worked very closely with Ken in the mobility effort and I am confident that he would do a great job if chosen to succeed David.

Two other strong internal candidates are probably Denise Hanley (promoted from Vice President of PCS to President

than 50 professions, ranging from funeral services, professional engineering, and body piercing, and from barbers to podia-trists, or from head to toe, so to speak. It is highly unusual and probably unprece-dented that this for-profit entity provides substantially all of the revenue necessary to operate NAsBA.

So now to the key question: what does David Costello have to do with this? Everything! David became the Executive Director of NASBA in 1996. At that time, NASBA shared space with the AICPA in New York City and had about 40 employ-ees. He moved NASBA’s offices to Nash-ville, TN (his home town) and today there are about 250 employees of NASBA. NASBA has a seat at the table on just about every issue affecting the account-ing profession. And if it does not have a formal seat at the table, it is effective in asking, sometimes noisily, why it does not have a seat and in expressing what its views would be if it were sitting at the table. For example, here are just some of the issues that NASBA has commented on within the past few years:

• Education requirements to sit for the CPA exam, i.e.120 hrs vs. 150 hours

• Peer review standards• Composition of Peer Review

Board• IFRS• Differential accounting

standards, i.e. Big GAAP vs. small GAAp

• Mobility• Compilation and review

standards• Registration of tax return

preparers• Administration of the CPA

exam outside the United States• Ability to use fictitious names

for CPA firms and network names

NAsBA has a seat at the table on just about every issue affect-ing the accounting profession. And if it does not have a formal seat at the table, it is effective in asking, sometimes noisily, why it does not have a seat and in expressing what its views would be if it were sitting at the table.


LeAdersHip LeNs

Looking Back, Looking ForwardBy Jim Ladd, CPA, Chair

the WSCPA’s fiscal year ended May 31 was one of the most success-

ful, despite the challenging economic and legislative environment. President & CEO Rich Jones and his management team, with guidance and support from Chair Carmen Aguiar and the WSCPA board, nimbly adjusted to the challenges and fin-ished the year strong.

Among the successes were:

• Achieving a new record high in total memberships – now over 10,000.

• Working with legislators to avoid a cumbersome and costly sales tax on CPA services.

• Bringing AICPA President Barry Melancon to speak at the annual meeting in May – evalu-ations of the event were 100% positive, which I suspect is a first for any meeting of CPAs.

• Building CPE participation and revenues back towards expected levels after a down-turn last fall.

• Adding over 100 webcasts to the Society’s CPE catalog, both to expand the range of subjects and to provide new delivery options for our members.

As we look forward in the new fiscal year, we can see many of the same chal-lenges and opportunities continuing. The economy may continue to improve only slowly, or may suffer a double-dip, keep-ing our members (and potential mem-bers) cautious and the legislature looking for new sources of revenue to reduce the state’s budget problems.

In addition, at both the federal and state level there may be proposals to change the way CPAs and potential competitors are regulated. One such proposal is to merge the Washing-ton State Board of Accountancy into the State’s Department of Licensing, which I believe would reduce the effectiveness of regulatory oversight of our profession. While there may be opportunities to continue improv-ing the operations of the state board, I believe that can best be done under the guidance of CPAs and others who thoroughly understand our profession, rather than by administrators who do not have the necessary qualifications and experience.

But come what may you can be sure that the WSCPA will continue to be essential to the success of mem-bers by, among other things:

• Providing outstanding learn-ing opportunities for mem-bers and their employees.

• Serving as an advocate in Olympia and elsewhere for the benefit of members and the public.

• Keeping members connected through communications and networking opportuni-ties.

I look forward to serving you, our profession and the public by partici-pating in those efforts throughout the coming year and beyond.

You can contact Jim Ladd at [email protected].

and CEO of PCS) and Linda Biek, Direc-tor of Governmental and International Professional Relationships. There are also many members of NASBA who know the organization and the issues concerning regulation of the profession that would also make good candidates for the NASBA CEO position.

NASBA will be different when David leaves. The strength of his personality has changed the organization for the better. There are plenty of qualified candidates for the position, but I am confident that none of them will do it the same way David did. Best wishes to him and the organization as he retires.

You can contact Rich Jones at [email protected].

Learn about other issues affecting the profession. Sign up for Rich’s free webcast: Professional Issues Update on November 9. For details, see below.

NEED CPE THIS YEAR? Check out WSCPA Webcasts at www.wscpa.org/Cpe/catalog(enter “WEB” in keyword search)

Try webcasts for free: Professional Issues Update with Rich Jones, November 9.

July 22 | XBRLWEBCAST: Intro to XBRL and New Opportunities for CPAs (WEB21)

July 30 | Employee BenefitsWEBCAST: Health Savings Accounts (HSAs), Medicare, Tax Favored Health Care Plans & Medical Expenses (WEB24)

Aug 19 | FraudWEBCAST: Searching for Fraud: Assessing Risk and Addressing Red Flags ( WEB31)


CoVer story GreeN issue

Why Going Green is Good, But Sustainable is BetterBy Aaron Nelson, Foundation for a Sustainable Community

sometimes it is hard to know the dif-ference between a fad and a trend.

And some trends are small and change how we behave in modest ways while others are quite large and dramatically change how individuals and organizations behave and operate.

“Green” is a mega-trend that is chang-ing forever how organizations and indi-viduals consume energy, utilize resources and dispose of waste. Businesses and non-profits across the globe are discovering there is money to be saved and made by implementing green practices, and these enterprises are scrambling to align with the global greening trend.

Green is Good, but “Sustainable” is Better

Going green is good. It makes busi-ness and accounting sense to efficiently use limited and/or expensive resources

– to reduce the consumption of electric-ity and water, to purchase less styrofoam and paper, to put less in the dumpster and more in the recycle bin.

But while green is good, sustainable is better. It is important to be a good envi-ronmental steward, but for both busi-nesses and communities to be successful they will have to pay attention to more than just their environment. The success-ful future of our businesses, our clients and our communities requires a balanced approach – a focus on sustainability.

A few definitions: First, “green.” Green is almost always

and exclusively about the environment and protecting it. Green is about energy, waste, water, pollution, transportation choices and resource consumption. Be careful of the related term “green-washing,” which means faking it. Do it, or

don’t do it, but don’t fake it.Now, “sustainable.” Sustainable has

several definitions. The first formal defini-tion was offered by the United Nations World Commission on Environment and Development who defined sustain-ability as “meet[ing] the needs of the present without compromising the abil-ity of future generations to meet their own needs.”

The most popular and most accepted is also known as the “triple bottom line” definition. Sometimes referred to as the Three Es (Equity, Environment, and Econ-omy) or the Three Ps (People, Planet and Profit), the triple bottom line refers to measuring success based on outcomes in these three areas.

I think the best definition is expressed in the mission of North Carolina’s Foundation for a Sustainable Commu-nity: “environmental stewardship, social responsibility and economic prosperity.”

The University of North Carolina’s Kenan-Flagler Business School Center for Sustainable Enterprise says a sustainable business is one that “employs profitable strategies that approach social and envi-ronmental challenges as business oppor-tunities and minimize negative social and environmental impacts.”

Adoption of green and sustainable business practices are being driven by six powerful forces:

1. Capitalism – sustainability has a positive impact on bottom line, organizational branding, reputa-tion and likelihood of long-term financial success;

2. Regulation – reaction to real and anticipated regulation is driving organizations to become more efficient, carbon-aware and community invested;

3. Innovation – from carbon scrubbers and bio-fuels to per-vious pavement and

“Now is the time to make sustainability a key pillar in your business planning.”

– Bob Harris, Chair of the Board of Directors, AICPA


sustAiNABiLity

drinking cups made of corn, what was crazy-talk 10 years ago isn’t crazy-talk anymore and new developments are announced weekly;

4. Competition and Peer Pressure – as more companies adopt these practices, there will be more pressure to do so. Wal-Mart’s aspirational sustainability goals and decision to implement sustainability reporting for all 100,000 suppliers will have huge impact; and

5. Global Warming –Nearly all scientists and politicians now agree something is happening, and even those who do not think humans had anything to do with it agree that humans can do something about it.

6. Customer and Employee Demand – the customer cares about the behavior of the company and the sustainability of the products, and employees care, particularly Gens X, Y and Z.

Unlike the green movement, which spent its first 30 years wagging a judg-ing finger at the business community and trying to regulate business behavior, the concept of sustainability is a holis-tic approach. Sustainability is not only a strategy the business community can buy into but a movement that business should lead.

Sustainability’s triple bottom line of environmental stewardship, social equity and economic prosperity is proving to be a powerful and convening concept. Sustainability focuses on the intersec-tion of interests, the place where neither the social, nor the environmental, nor the economic objectives can be accom-plished as well separately as they can be together.

Sustainability is proving to not only be a powerful concept, but a popular one. Here are some results from a late 2009 survey deployed by the Institute for Sus-tainable Development to 20,000 small to mid-sized enterprises (SMEs) through Chambers of Commerce in Ohio, Penn-sylvania and North Carolina.

• 87% of respondents said their businesses have a responsibility to protect the natural environ-ment.

• 70% think their businesses gains some or great competitive advantage by being known as “green.”

• 94% said they are somewhat interested or very interested in being known as a successful business that is committed to its community and the envi-ronment.

• 70% believe that adopting sus-tainable business practices will make their organizations more successful in the long run.

• Only 8% are aware of web-based tools to assist them with going green and sustainable.

Business and industry agree something big is happening, and the businesses that choose to lead on this trend are more likely to thrive.

Sustainability is also moving fast in many places around the world. In June 2009, the World Chamber Con-gress convened 1,000 Chamber of Commerce executives from 100 countries in Kuala Lumpur, Malaysia for a conference on “Leading Sustainable Growth and Change.”

The Victoria Australia Chamber of

Commerce runs Carbon Down and Grow Me the Money, a $10 million, three-year program at their Chamber that helps small businesses go green and sustainable. The Mongolian National Chamber of Commerce has made sustainability one of their national economic development priorities, created a green small business loan fund, and hosts the national Sustain-able Business of the Year Awards.

One of the best programs in North America focused on helping small and mid-sized employers go green and sus-tainable is Green Plus™ (www.gogreen-plus.org). Green Plus™ is managed by the Institute for Sustainable Develop-ment (ISD), a public-private partnership of chambers, trade associations and uni-versities, including Duke University, UNC Chapel Hill, Elon University and Research Triangle-based Chambers of Commerce.

Green Plus™ is designed to educate, motivate and reward small employers while providing them with affordable, easy-to-use information for improving sustainability performance. Green Plus and ISD won the 2008 Siemens Foun-dation national award for leadership in sustainable development and the Interna-tional Economic Development Council’s (IEDC) award for leadership in sustain-able economic development.

Green Plus™ is a triple bottom line sustainability program that helps busi-nesses review their environmental stewardship (energy, water, waste, trans-portation), their social responsibility

(family friendly policies, civic participa-tion, corporate responsibility, volunteer-ism) and economic prosperity (business planning, performance measures, best

Sustainability is not about making due with less; it’s about thriving in a changing business environment.


sustAiNABiLity

practices). Green Plus™ participants also gain access to an online network of spe-cialists, peer enterprises and the informa-tion support they need in order to make positive changes in their organizations.

Sustainability is not about making due with less; it’s about thriving in a chang-ing business environment. Sustainability is about improving the way that individuals and organizations engage their commu-nity and their environment and making them more successful for it.

Sustainability is a prescription for both organizational and community suc-cess. Organizations that balance the triple bottom line of sustainability will be rewarded by their customers, employees and community. Today’s customers and employees are demonstrating a greater interest in supporting companies that share their values.

In a national poll of 923 voters con-ducted by CapStrat and Public Policy Poll-ing - July 6-7, 2009:

• 55% said being green and sustainable was a top priority or an important priority for their employer when making deci-sions; and

• 83% of voters surveyed said the sustainability of the mer-chant or service provider was somewhat or very important to them when making purchasing decisions.

Fast Company reported on May 20, 2010 that a survey by OXYGENZ of 3,011 18- to 25-year olds along with 1,300 26- to 35- year olds in the US, EU, India and China found 96% of the younger cohort and 98% of the older cohort “aspire to work in a greener office,” and 67% of the 26- to 35-year-olds want their work place to be “environmentally friendly; ie well above regulatory compliance.”

Getting StartedSo, how do you get started? I recom-

mend taking the following steps (loosely in this order):

1. Form a Team - Start with a core group of three, then expand to include a diverse group of managers and employ-ees. (Be sure to include some doubters. You’ll have to bring them along later anyway.)

2. Get Smart – Seek out and read articles and books on the subject and talk to people who are smarter than you on the subject and better understand the business case for sustain-ability.

3. Set Goal(s) – Does your orga-nization want to be the best of the best, or to be in the top quartile in your industry or just make modest improvements? Is your goal to save money or to make money or to save the world? Decide, write it down and post it somewhere.

4. Get Buy In – Seek investment and buy in within your organiza-tion from above and below.

5. Pick the Low Hanging Fruit (and eat them) – Select a few areas where you can demon-strate measurable results and then execute. Get some early wins.

6. Decide How to Measure and Report – Deliver internal reports first and build to exter-nal sharing. Your customers care, your employees care, the com-munity cares, so measure what you are doing and tell them.

CPAs are poised to lead the way in sustainability. CPAs can and should play a central role in advising their organiza-tions and/or their clients and in setting and helping execute organizational sus-tainability initiatives.

At the fall meeting of the Council of the AICPA in October 2009, the newly inaugurated AICPA board chair Robert Harris and CEO Barry Melancon both identified sustainability as a key opportu-nity for CPAs to bring value to the firms

or industries they work for and the clients they serve. Chairman Bob Harris stated, “Now is the time to make sustainability a key pillar in your business planning.”

CPAs are positioned better than any industry to advise their clients or compa-nies on how enterprises can save money and make money going green and sus-tainable and how they can measure and track results. Like Harris and Melancon, I encourage CPAs to get involved in the front end by helping develop comprehen-sive plans, rather than simply measuring the outcomes.

“Green” is big and here to stay. Expand-ing the notion of “green” to “sustainable,” a holistic approach that also includes social and economic objectives, is a far more powerful concept and approach. Business leaders should take the lead, help define the objectives and own the space around sustainability. Sustainability is a successful strategy to build more robust, successful businesses and communities prepared to meet the challenges of the future.

Aaron Nelson, IOM, is the president and CEO of the Chapel Hill-Carrboro (NC) Chamber of Commerce, co-founder and senior fellow at the national Institute for Sustainable Development and a Ford Fellow for Regionalism and Sustainable Develop-ment. Aaron can be reached at [email protected]. Learn more on Twitter @GreenPlus and @SustainableSME or visit www.gogreenplus.org.

Learn More and Earn CPE

WEBCAST: Green Accounting and Sustainability (WEB51)

Monday, November 88:30 am - 4:30 pm.

For details and to register, visit www.wscpa.org/Cpe/catalog


GreeN BuiLdiNG

Tax Incentives for Green Building ConstructionBy Gian Pazzia, CCSP and CJ Aberin, CCSP

several lucrative federal tax incen-tives have been extended and

enhanced for energy efficient design, con-struction, and improvement of buildings and homes. Companies that developed properties without necessarily trying to “go green” are often pleasantly surprised to discover that they qualify for these credits and deductions.

The types of taxpayers that are likely to benefit from the legislation include commercial developers, home builders, apartment and condominium develop-ers; architects and designers of govern-ment-owned buildings; and those making improvements to commercial buildings.

Under the Emergency Economic Sta-bilization Act of 2008 and the American Recovery and Reinvestment Tax Act of

ings for the government will be eligible for a full, $1.80 per square foot deduc-tion. Therefore, any architect designing government buildings, schools, etc., with energy efficiency in mind should strongly consider this deduction.

Obtaining this deduction requires a licensed professional engineer or con-tractor to certify that a detailed energy analysis of the property’s improvements, which typically involves energy simulation modeling and lighting power density cal-culations, per IRS requirements. Qualify-ing improvements for this tax deduction must be placed in service by December 31, 2013.

Section 45L - Apartment, Con-dominium, and Single-Family Residence Developers

This is one of the most beneficial tax incentives offered to developers of apart-ments, condominiums and single-family residence developers, who are eligible for a $2,000 federal tax credit for each energy efficient dwelling unit constructed. More specifically, a $2,000 tax credit can be applied for the development of apart-ment units and new homes, and a $1,000-$2,000 credit for manufactured homes, for properties constructed after August, 2005. This means a developer of a 50-unit apartment complex could earn up to $100,000 in tax credits.

To qualify, a dwelling unit must pro-vide a level of heating and cooling energy consumption that is significantly less than certain 2004 energy standards.

2009, some of the tax incentives for going green include:

Section 179D - Commercial Developers, Real Estate Inves-tors, and Architects

Section 179D offers a depreciation deduction of 30 cents to $1.80 per square foot for eligible improvements to com-mercial buildings placed in service after January 1, 2006. The deduction rewards commercial developers and real estate investors for efforts to reduce energy use in the categories of building enve-lope, HVAC, and interior lighting systems. Residential rental buildings also qualify for this tax deduction if the property is four stories or taller. Ideal candidates are taxpayers who have made improvements

to at least 50,000 square feet of their property. LEED-certified, Energy Star buildings or partici-pants in utility rebate programs are inherently great candidates for the full deduction. The qual-ifying improvements run the gamut, from new lighting ret-rofits to full-scale construction projects.

Building owners are not the only beneficiary of this tax deduction. A key provision to the code is the way the full deduction can be transferred in the case of a government build-ing. As is the case with commer-cial developers, architects that design energy-efficient build-

The move toward environmentally friendly building design and construction is gaining rapid momen-tum. Once taxpayers are armed with awareness of the available incentives, taking advantage of the tax benefits is not a difficult process.


GreeN BuiLdiNG

Given that current energy codes have evolved tremendously over the past five years, many developers built to specifica-tions that qualify them for this credit.

Other good candidates include Energy Star Homes, LEED developments, and participants in utility rebate programs. Another particularly likely candidate for the Section 45L credit are developers of Affordable Housing projects, as the build-ing codes in many states for these types of projects call for standards that mirror or exceed the qualifications for the tax benefit.

The process for obtaining these credits requires a detailed energy analy-sis that must be certified by a qualified third party.

Section 48 - Energy CreditsSection 48 benefits those who invest

in solar energy, providing a 30-percent tax credit. A 10-percent credit is given for the

purchase of qualifying stationary micro-turbine power plants, certain geothermal equipment and heat pumps, and certain combined heat and power or cogenera-tion systems. These credits apply to prop-erty placed in service after December 31, 2005 and before January 1, 2017.

The Energy Credit property has a tax recovery period of five years, allowing for the potential eligibility of a 50-percent bonus depreciation deduction in the first year. If these tax credits cannot be uti-lized, there are other ways to monetize the benefits and skilled cost segregation specialists can consult with you in this area to put cash in your pocket. Addi-tionally, a cost segregation study can add

more benefits by helping developers allo-cate toward Section 48-qualified energy property, while accelerating depreciation on other assets.

The move toward environmentally friendly building design and construction is gaining rapid momentum. Once tax-payers are armed with awareness of the available incentives, taking advantage of the tax benefits is not a difficult process. Gaining in-depth knowledge of the cred-its and deductions that are out there, and building relationships with third-parties who provide the analysis and certifica-tions the IRS demands could provide you with a tremendous tax advantage.

Gian Pazzia, CSSP, is a Shareholder at KBKG, Inc and oversees the company’s Cost Segregation operations nationally. He is also the Product Champion for the Fixed Asset Recov-ery Group. He can be contacted at [email protected].

CJ Aberin, CSSP, is a Sr. Manager at KBKG, Inc and oversees the Green Building Tax Incentive practice. He can be contacted at [email protected].


NEWS BRIEFS

And the winners are...Three WSCPA members were selected

as winners from 13,977 entries in the WSCPA annual dues drawing. Congratu-lations to the following members:

• Scott Nordberg, CPA, is managing partner of Nord-berg Hammack Kolp & Cash PS in Bellevue and has been a member since 1996. He won a Kindle and a $25 Amazon gift card for renewing his member-ship by April 30.

• Elaine MacDougall, CPA, a member since 1993, is an accounting manager with AAA Washington in Bellevue. She received a Wii for renewing her membership by May 15.

• Valerie Moseley, CPA, is a tax accountant with Joseph & Associates PS in Seattle, and a member since 2008. She received a $300 Master Card gift card for paying her dues by June 1.

Thank you to all members who renewed their membership by June 1. If you have not yet renewed your member-ship, visit www.wscpa.org or call (800) 272-8273 (toll-free in Washington) or (425) 644-4800. Renew your membership by July 31, 2010 or your member benefits will expire.

New Way to Learn about CPE: CPE Quick Look

You can now learn about WSCPA CPE programs in a new e-newsletter, CPE Quick Look. Watch for this e-mail on the first Tuesday of every month.

To ensure you receive this e-mail, update your e-mail address in your member profile by visiting www.wscpa.org or e-mail member [email protected].

Where Does Your Firm Stand? 2010 MAP Survey Helps You Find Out

PCPS and the Texas Society of Cer-tified Public Accountants (TSCPA) are pleased to introduce the PCPS/TSCPA National MAP Survey for 2010. The Survey’s rich history makes it the lead-ing benchmarking survey for CPA firms. For more information and to learn how you can participate, visit www.wscpa.org and search for “MAP.” The survey closes August 13, 2010.

speCiAL MeMBer disCouNt FroM CCH

Save 30% on CCH U. S. Master Tax Guide - Order by Aug. 31

Reserve your copy of the industry’s leading tax guide before August 31, 2010 and save 30% off the list price of $86.60. You pay only $60.55 plus tax and ship-ping. You will not be billed until after the book ships. (Cancel before shipment without charge.) The 2011 edition will contain timely and precise explanations of federal taxes for individuals, corpora-tions, partnerships, estates and trusts.

To order, visit http://tax.cchgroup.com/members/wscpa and enter your member discount number (Y5596).

Order a Season Ticket today at www.wscpa.org and your

CPE journey this year will be incredibly affordable

and hassle free.

* The Season Ticket is $1,745.

$174.50 per 8-hour seminar!* You cannot find a better

value on live CPE.

Easy Marketing for Your Firm: Enroll or Renew Now in Find a CPA Referral Service

Would you like to expand your client base? Is your firm currently enrolled in the WSCPA Find a CPA Referral Ser-vice?

The WSCPA’s online Find a CPA Referral Service is a cost effective way to market your firm’s services to the public. For just $175, you can list your firm with this service. Plus, you can add satellite offices for $50 each.

Enroll or renew now and your firm will be in the service from July 1, 2010-June 30, 2011. This service is marketed in directories statewide and online. Hundreds of individuals and busi-nesses statewide looking for CPAs visit this service at www.wscpa.org or call the Society.

To enroll, visit www.wscpa.org, and click Find a CPA. Questions? Call Jen-nifer Ayoub, (425) 586-1142 or (800) 272-8273, Ext. 1142 (toll-free in WA), or e-mail [email protected].

Read The WashingtonCPA Magazine Online

read The WashingtonCPA magazine online at www.wscpa.org. Visit the News-room and click WashingtonCPA.

Season Ticket


AdVoCACy

advocacy more Important Than everBy Judy Love, WSCPA Director of Advocacy

even though it is such a cliché, the Chinese proverb, “May you live

in interesting times,” certainly applies at this point in time to the CPA profes-sion. Looming budget deficits continue to make a sales tax on professional services an attractive target to the Washington State legislature. Another proposal to move the State Board of Accountancy into the Department of Licensing is likely to be re-introduced in the 2011 legisla-tive session. And these are just a couple of issues close to home. The national and international issues expand exponentially.

At the beginning of his presentation at the Society’s May 5 Annual Meeting, AICPA President & CEO Barry Melan-con stated, “Never, since 1982 when I became a member of the Louisiana State Society, later as the Executive Director of the Louisiana Society, and throughout my fifteen years with the AICPA, have there been so many issues, so many issues that are interconnected, and so many issues with such serious implications for the profession at any one time.”

Melancon’s overview covered more than 30 issues, ranging from a case before the Supreme Court about the constitu-tionality of the PCAOB to the internaliza-tion of the CPA exam. For those who did not attend the Annual Meeting or watch the live webcast, the presentation will be available on the WSCPA website. Watch for the announcement in an upcoming Short Form e-newsletter.

During these interesting times, the advocacy efforts of the WSCPA and the AICPA are more important than ever. Professional staff, lobbyists and active member involvement are vital to staying on top of issues. Here’s how you can help shape rapidly moving issues:

Contribute to the CPAPACIf you have already contributed to

the CPAPAC, THANK YOU! You under-stand the important role campaign contributions play in establishing relation-ships with legislators who make decisions

about issues that affect the profession. If you haven’t contributed, you can do so through the Advocacy section of the WSCPA website.

Volunteer to Deliver a CPAPAC check

A small investment of 30 minutes spent over coffee with a legislator while deliver-ing a PAC check provides an opportunity to talk about key issues while promoting the value of the profession. Even if you don’t already have a connection to a leg-islator, helping to deliver a PAC check is a great way to introduce yourself. If you would like to learn more about deliver-ing CPAPAC checks, please contact the Society.

Become a Grassroots Volunteer

Legislators value personal connections from people in their districts; your input

can affect the outcome of proposed legis-lation. Over the past couple of legislative sessions legislators have delayed making a decision on an issue of importance to the profession until they heard from CPAs in their district.

If you have a connection with to a State legislator, please let the Society know.

Volunteer to be on a WSCPA or AICPA Committee

See the article on page 13 from WSCPA member Kristine Wolbach who serves on the AICPA’s Tax Practice and Proce-dures Committee. Many other WSCPA members serve on similar committees to represent the interests of the profession to decision-making bodies. If you have an interest in taking an active role in your profession, please let the Society know.

Your contact at the WSCPA is Judy Love, Director of Advocacy; [email protected]; (425) 586-1130, (800) 272-8273, Ext. 1130.

Your contribution to the CPAPAC makes a difference. If you have already contributed to the CPAPAC, thank you! If you haven’t contributed, you can do so through the Advocacy section of www.wscpa.org.


AdVoCACy

have experienced a significant increase in activity in the past year. The IRS has centralized the function of review of real estate appraisals, and increased the settlement authority of revenue agents to speed case resolution. They have insti-tuted procedures to allow taxpayers flex-ibility to renegotiate installment payment plans on a short term basis. The examina-tion division has a new team dedicated to implementation of the Healthcare Bill. They are also training staff to examine high wealth individuals and tiered pass through structures. They plan to revise their approaches to the preparer over-sight function.

The LMSB division plans to hire new employees to focus on global high wealth examinations. The division has built up its staff resources in the past year to include employees with specialties in financial products, valuation and international taxation. The division is looking closely at disclosure issues relating to undisclosed tax positions and transfer pricing issues. The division is very interested in increas-ing audit efficiency in its focus on pass-through entity examinations.

The W&I Division is charged with coordinating the e-filing of individual returns, providing taxpayer advice on the phone and the internet and process of return filing. They are centralizing the communication function of correspon-dence audits, and have instituted a toll free number to respond to status inqui-ries of correspondence audits. They were challenged this last filing season by imple-menting new tax laws and the make work pay credit refunds.

The Appeals division mirrors many of the concerns of the other divisions. Appeals officers will focus on alterna-tive case resolution. The area has hired employees with prior expertise in eco-nomics and financial instruments.

AICPA committee members raised concerns relating to procedures to with-draw IRS tax liens. The CPAs encouraged the IRS to balance the taxpayer cost of

the AICPA Tax Practice and Proce-dures Committee held its semi-

annual meeting with IRS executives May 17 and 18 in Washington DC. The AICPA committee consists of 17 members rep-resenting a broad spectrum of members from public accounting, academia and pri-vate business. The meetings are a means of discussing new IRS initiatives and prac-titioner problems and concerns.

Commissioners and deputy commis-sioners for various IRS divisions attend these meetings: Large and Mid-Size Busi-ness Division (LMSB); Chief of Appeals; National Taxpayer Advocate; Director of Office of Electronic Administration; Deputy Commissioner of Tax Exempt/Government Entities Division (TE/GE); Deputy Commissioner Wage & Invest-ment Division (W&I). There were also representatives from the Small Business/Self Employed Division (SB/SE), Collec-tions and Examination.

Each IRS representative provided a short description of emerging issues in their department and a summary of filing season issues. AICPA committee mem-bers raised questions forwarded to them from the state societies and based on their firm’s experiences.

David Williams, of IRS Electronic Administration, was charged with devel-oping guidelines for the taxpayer consents to disclose tax information under IRC 7216. That division is also responsible for implementing the Commissioners’ initia-tive to regulate tax preparers. AICPA concerns relating to cost of compliance, the proposal for employees who do not sign returns to register as tax payers, and other implementation topics were the subject of lively discussions. The IRS is gearing up to issue new and “refreshed” PTIN’s online in September. Rules relat-ing to continuing education and require-ments for registered preparers are still being formulated.

The SB/SE department described chal-lenges faced by the Collections and Offer in Compromise departments. Both areas

compliance with the benefit to the gov-ernment, particularly as the IRS comes up with measures to close the tax gap. The inconvenience of IRS contacts during tax season for examinations and correspon-dence was discussed.

The AICPA Tax Practice and Proce-dures Committee also serves as a sound-ing board to the IRS on emerging issues or special studies. Within the last year, teleconferences have been held with IRS areas relating to the e-file process, IRS training materials, implementation of leg-islative law changes, feedback on impact of changes for information statements, comments on the process for offers in compromise, and input for preparer registration initiatives. The committee members respond to AICPA requests for comment on IRS initiatives with broad practitioner implications.

WSCPA members with specific con-cerns to bring to the attention of the com-mittee should contact Judy Love, WSCPA Director of Advocacy, [email protected]; or Kristine Wolbach, the AICPA com-mittee member assigned to the states of Washington, Idaho and Montana, [email protected].

The Tax Practice and Procedure Com-mittee is one of several standing Tax Committees at the AICPA. AICPA mem-bers interested in committee service are encouraged to apply on the AICPA Tax Section website in the Spring. Commit-tees include the Tax Executive Commit-tee, and Tax Legislation and Policy, Tax Practice Responsibility and Tax Practice Improvements. The AICPA looks for com-mittee members from diverse geographic areas and tax experience.

Kristine Wolbach, of McDirmid, Mikkelsen & Secrest, P.S., Spokane, WA, practices in the area of federal tax controversies. She serves as a member of the AICPA Tax Practices and Procedures Committee, and is also on the WSCPA Taxation Committee.

To join a WSCPA committee, contact [email protected].

aICpa Committee meets with IrS executivesBy Kristine Wolbach, CPA, McDirmid, Mikkelsen & Secrest, PS


ANNUAL AWARDS

Richard Greaves Jacobson Jarvis & Co Heather Fitzpatrick Barbara Huang Dora Leung John Fasler Kristen Guzman

Volunteer of the Year Heather Fitzpatrick, CPA

For being the driving force behind breathing new life into the Washington CPA Foundation

Heather Fitzpatrick, the president and CEO of MarketFitz, Inc., serves as the President of the Washington CPA Foun-dation’s Board of Trustees.

“Heather was truly the driving force behind breathing new life into the Wash-ington CPA Foundation,” said Julleen Snyder, Foundation Secretary/Treasurer, 2009-2010.

A former member of the Washing-ton Society of CPAs’ Board of Directors, Heather put her marketing skills to work in developing a plan to bring awareness of the Foundation to the WSCPA mem-bership. This plan resulted in a significant increase in donations this fiscal year. She also made numerous presentations about the Foundation to attendees at CPE events and other WSCPA gatherings.

In addition to her service to the pro-fession, Heather is a member of the Lead-ership Tomorrow Board of Directors, and is an active member of Seattle Rotary #4, among other organizations.

Volunteer of the YearBarbara Huang, CPA

For dedication to, leadership of and passion for the financial education of students in Washington

Connecting with teenagers in the classroom at 7:20 a.m. requires spe-cial skills, especially when the topic is

Annual Award Winners

Vincent A. Gervais Public Service AwardRichard Greaves, CPA

For years of contributions to the profes-sion, community and WSCPA through leadership, vision, and dedication

Active in the accounting profession for 33 years, Rick Greaves is partner with the Seattle office of Pricewater-houseCoopers LLp.

Rick was member of the Board of Directors of the WSCPA and served as its Vice President and Secretary. He also served on the WSCPA’s Nominat-ing Committee, Governance Task Force, Health Care Industries Committee and as Chair of the Accounting and Auditing Conference Task Force.

“The WSCPA is grateful for his many years of dedicated service. For many long-time CPAs, Rick personifies what it means to be a true professional,” said Rich Jones, President & CEO of the WSCPA.

In the community, he has held leader-ship roles on the boards of several orga-nizations, such as Chief Seattle Council, Boy Scouts of America; Greater Seattle Chamber of Commerce; Summit Assis-tance Dogs; United Way of King County; and Seattle Downtown Rotary Club #4.

“He is a highly respected member of the profession and community. It was a privilege to serve with Rick on the Board and I’m particularly grateful for his lead-ership and key role in the development of the Society’s strategic plan. He has made a real difference in the profession here in Washington,” said Thomas Bourne, WSCPA Past President.

Business of the YearJacobson Jarvis & Co PLLC

For outstanding support of the WSCPA through volunteer service and commit-ment to programs

Over many years Jacobson Jarvis & Co PLLC has supported the activities and pro-grams of the WSCPA. A certified public accounting firm in Seattle, Jacobson Jarvis has a strong sense of community involve-ment, which goes hand in hand with the company’s goal to exclusively serve the Northwest’s not-for-profit community.

“Partners and key staff actively partici-pate at the state level to represent CPAs and the not-for-profit community,” said Rich Jones, WSCPA President & CEO.

Thanks to the firm’s encouragement, 100 percent of eligible Jacobson Jarvis staff is WSCPA members. Moreover, more than 40 percent of their staff serve on committees, chapters or participate in other ways with the WSCPA.

every year the WSCPA recognizes CPAs for making a difference in their communities, providing outstanding service, dedication or lead-

ership to advance the accounting profession and the Society. The Society congratulations this year’s honorees.


ANNUAL AWARDS

financial literacy. Barbara Huang’s presentations have earned kudos from the teacher at Mariner High School in Everett, where she has accepted this chal-lenge several times.

“Barbara has a passion for finan-cial education, especially for the youth,” said Amy O’Donnell, WSCPA Financial Literacy Program Manager.

In her many presentations to high school students, Barbara creates materi-als to supplement the WSCPA curriculum and tailor the message to fit her style.

Always willing to go the extra mile, Barbara “has stepped forward to part-ner with new volunteers to help them become more comfortable in making presentations and talking about financial education,” said Amy.

Barbara is the CFO at Avidian Technol-ogies, a CRM software company in Red-mond, and has several other accounting and tax clients.

Volunteer of the YearDora Leung, CPA

For innovative leadership and engaging new board members to reinvigorate the Sammamish Valley Chapter

As Sammamish Valley Chapter Presi-dent for 2009-2010, Dora Leung helped to reinvigorate the chapter.

“Dora and her current leadership group have been willing to honestly examine what is working and what is not working, be willing to experiment and take risks, to plan, and then to execute to that plan, all with outstanding results,” said Mark Hugh, WSCPA Board of Direc-tors Liaison to the chapter.

New Professional of the YearKristen Guzman, CPA

For leadership, the passion to grow and commitment to the development of the Spokane New Professional’s Committee

Kristen Guzman is chairperson of the Spokane WSCPA New Professionals Committee, which organizes networking events for professionals.

A mother of two young children, Kris-ten accepted the role of chair when the chair was on maternity leave.

“She has been instrumental in getting the word out to local firms, recruiting new committee members and attendees for events,” said Kimberly Scott, WSCPA Director of Member Services.

A WSCPA member since 2007, Kristen has also volunteered with Junior Achieve-ment and the WSCPA Financial Literacy programs. A staff accountant in LeMas-ter Daniel’s Spokane assurance services office, Kristen has encouraged her co-workers to also get involved.

“Kristen’s leadership is worthy of an award not only because she takes the ini-tiative, but she does it early in her career, and far away from the WSCPA offices and typical support system.”

Special AwardLisa Thatcher

For effective guidance and relationship building in support of the WSCPA and the accounting profession in Washington State

The WSCPA is very fortunate to have Lisa Thatcher for its lobbyist.

Richard Greaves Jacobson Jarvis & Co Heather Fitzpatrick Barbara Huang Dora Leung John Fasler Kristen Guzman

Under Dora’s leadership, the chap-ter moved meetings to a more central location in the chapter area, cut its pric-ing for meetings, and began aggressively recruiting attendees, including new CPAs and students.

Dora is a senior manager in Clark Nuber’s tax practice.

Volunteer of the Year John Fasler, CPA

For developing a strong accounting pro-gram, and inspiring students to pursue the accounting profession

John Fasler, JD, MAc, MBA, CPA is an Associate Professor of Business at Centralia College where he has taught accounting since 2001.

One of his students, John Heller said, “Beyond fulfilling the requirements of his profession as an educator, Mr. Fasler has presented the career options of CPAs in a manner that has driven me and many others to pursue the profession.”

John expanded the Centralia account-ing program and met with representa-tives from four-year schools to develop programs that encourage students to pursue Centralia’s one-year accounting certificate and transfer to universities.

“Now students not only gain the requirements to begin entry level jobs in the field, we also graduate from Cen-tralia College with the credits to transfer as juniors and pursue higher education. Without the influence of Mr. Fasler, many of us would not have completed our education and would have chosen other careers,” said John Heller.


ANNUAL AWARDS

Professionals Committee, and part of our student recruitment program,” said Kim-berly scott.

“He eagerly engaged in meetings, func-tions and asked for more responsibility.”

Adam currently serves as the mentor program committee chair. The program is in its inaugural year and he is respon-sible for helping establish the foundation for the coming years. In addition to his professional commitments, Adam serves the interests of abused and neglected children as a court appointed special advocate for King County.

Chair’s AwardMark Hugh, CPA

For strategic leadership as WSCPA Treasurer and innovation in professional education

A three-term board member of the WSCPA, Mark serves as the treasurer and chair of the audit committee and will serve as board chair for 2011-2012.

“The WSCPA is fortunate to be the recipient of Mark’s tremendous gifts as a leader and instructor,” said Hayden Wil-liams, CPA, WSCPA Director of Educa-tion.

A frequent speaker and popular instructor for the WSCPA, Mark gener-ously shares his expertise on Washington State and local tax, as well as Washington State ethics for the WSCPA.

He is developing new ethics courses and has embraced new delivery formats for CPE programs.

Mark is the principal of Mark Hugh & Associates PLLC, a CPA firm in Bellevue.

“Several legislators have shared directly with us how fortunate they believe the profession is to have Lisa represent it in Olympia.” said Rich Jones, WSCPA Presi-dent & CEO.

“Lisa’s knowledge of the players in Olympia, with all their intricate relation-ships and political realities, is invaluable in developing strategy to reach satisfactory outcomes,” said Rich.

A lobbyist since 1992, Lisa began work-ing with WSCPA staff and volunteers as early as this past summer to educate leg-islators and staff about two issues of vital interest to the profession in the 20I0 ses-sion: keeping the Washington State Board of Accountancy as a stand-alone agency and the inadvisability of imposing a sales tax on professional services.

“Lisa worked on accounting issues for many years in partnership with the Society’s long-time lobbyist, Jim Boldt. When Jim retired six years ago, there was no question that Lisa was the right choice to take the lead. Her hard work and demonstrable outcomes validate that confidence,” said Rich.

Rising Star AwardAdam Bystedt

For active participation, commitment and service to the WSCPA, and the New Professional’s Committee

Adam Bystedt, a staff accountant with Clothier & Head, P.S. in Seattle, joined the WSCPA in September 2009 with the desire to get involved. He joined the New Professionals Committee right away.

“I am impressed by how quickly he has become a key part of the WSCPA New

President/CEO’s AwardRoy Polley

For making a significant contribution to the success of the profession in Washington

Roy Polley was an accounting profes-sor at the University of Puget Sound from 1963 until May 1999 and taught account-ing courses to about 15,000 students during his tenure.

Since retiring as a full professor in 1999, Roy continued to teach accounting on a part time basis at Pierce College and Tacoma Community College, until he had to quit in 2007 due to health reasons.

Roy told everyone how much he loved being an accounting professor. It defined his life. And he got involved in the lives of his students. At a recent gathering of several former students who were pres-ent to see Roy receive the President & CEO’s Award, everyone present had a story to tell about how instrumental Roy had been in creating in them an interest in accounting as a career and how he had helped each of them get their first job.

Roy passed away on May 15, 2010.In his online obituary guest book, Ron

Thomas, President of University of Puget Sound wrote, “Roy was one of those truly distinguished faculty members here at Puget Sound who understood that teach-ing was the core calling of the profession, and earned a reputation for putting stu-dents first. We will miss him, as will the students he taught so well.”

Lisa Thatcher Adam Bystedt Mark Hugh Roy Polley

Submit nominations for next year’s awards at www.wscpa.org. Nominations must be received by March 15, 2011.

Lisa Thatcher Adam Bystedt Mark Hugh Roy Polley


STATE TAX

new Washington Tax Law may Significantly Impact Service BusinessesBy Darcy Kooiker, CPA, and Rachel Roberson, Berntson Porter and Company PLLC

the media has been full of informa-tion about new taxes on candy

and beer but there are many other signif-icant Washington tax laws passed in this legislative session that deserve attention. One such law, 2ESSB 6143 Part I, involves a sweeping change in which service-providing and royalty-earning companies are subject to Washington’s business and occupation tax and how that tax is appor-tioned between states. This law went into effect June 1, 2010.

Economic NexusA business is subject to a state’s taxa-

tion if it establishes a minimum presence, or “nexus,” in the state. The traditional nexus standard is typically defined as a business having a physical presence in a state. However, many states are starting to change their nexus standard by imple-menting an economic presence test.

Washington adopted an economic presence standard for service-provid-ing and royalty-earning businesses. The intent is to tax businesses, particularly in the financial industry, located outside Washington that generate income from sources within the state but have no physical presence here. This law does not change the nexus requirements for businesses reporting under the Retailing, Wholesaling, Manufacturing and many other business and occupation tax clas-sifications.

The law establishes a bright line test for establishing economic nexus. If a ser-vice business exceeds any of the follow-ing criteria in Washington, it is subject to the business and occupation tax:

• $50,000 in owned or rented real, tangible and intangible property; or

• $50,000 in payroll and third party compensation; or

• $250,000 in receipts; or • 25% or more of the total

property, payroll, or receipts are attributable to Washington.

Any company that has estab-lished nexus in Washington and subsequently severs its nexus will have a tax filing obligation for one year after its nexus-creating activ-ity ceases.

Single Sales Factor Apportionment

For determining how much service-related and royalty gross income is subject to taxation, Washington has adopted an appor-tionment factor based solely on sales.

The sales factor is determined by taking the apportionable income sourced to Washington (numerator) and dividing by the similar apportionable income from worldwide sources (denominator). Note that if a business performs activities that are subject to more than one apportion-able tax classification, a separate appor-tionment factor must be calculated for each revenue stream. It should be noted that this law does not affect nexus or apportionment requirements for city tax purposes.

The law created the following hierar-chy for sourcing the income to Washing-ton. Only if a test cannot be determined to be met, should the next test be applied. Income is sourced to:

1. Where the purchaser receives the benefit of the service; or

2. Where the benefit of the service is primarily received if the benefit is received in mul-tiple states; or

3. Where the service was ordered; or

4. Where the billing statements or invoices are sent to the

purchaser; or 5. Where the purchaser sends the

payment from; or 6. The purchaser’s address

maintained in the seller’s records; or

7. The seller’s commercial domicile.

It has been widely speculated how the Washington Department of Revenue will interpret these criteria for determining whether the client received or primar-ily received the benefit of the service in Washington. Depending on how this wording is interpreted, Washington-based businesses providing services to clients located outside the state might actually pay less business and occupation tax as the result of this law change. As of the submittal of this article on June 3, 2010, minimal guidance has yet been published. More information can be found on the Department of Rev-enue’s website at www.dor.wa.gov.

For additional information, please contact Darcy Kooiker, CPA, Director of State and Local Tax Services ([email protected]) or Rachel Roberson ([email protected]) at (425)454-7990.

Learn More and Earn CPEWashington B & O and Sales Tax (WSTX) with Mark Hugh, CpA | August 2 in Bellevue, October 26 in Lynnwood, and December 7 in Tacoma For details and to register, visit www.wscpa.org/Cpe/catalog


iNdustry VoiCe

On Fire CpeFor Industry CPAs

NEW! Financial Management Workshop: What Public Accounting Didn’t Teach You (FMW) July 12 | WSCPA Learning Center, Bellevue Every year thousands of professionals transition out of public accounting. No matter where these aspiring CPAs go, the realization is the same. They are not fully prepared for “life after the CPA firm.” This seminar will provide answers for accountants attempting to make the transition to the corporate world.

Corporate Finance Tune-Up: Putting the Right Skills in Your Analytical Toolbox (CFT) July 13 | WSCPA Learning Center, Bellevue

Understanding corporate finance is a skill that separates those who will become Chief Financial Officers from those who will always remain accountants. This seminar provides a refresher on corporate finance skills for those who work or aspire to work at a CFO level.

NEW! Effective Business Development Skills in Today’s Recession (EBS41) July 22 | WSCPA Learning Center, Bellevue

Learn real world, proven techniques to attract “A” level clients you can immediately put to work.

• Learn how to find desirable prospects.• Discover marketing strategies that work. • Learn very effective techniques to identify and

make contact with more sophisticated and desir-able prospects.

• Find out how to approach the meeting and what to say and do to turn a prospect into a client.

NEW! 2010 Health Care Reform Act: Critical Tax and Insurance Ramifications for You, Your Business and Your Clients (CL4HCRA) July 26 | WSCPA Learning Center, Bellevue

Dramatic and significant tax and health insurance changes are coming to America! The nearly $1 trillion, 10 year cost of the Patient Protection and Affordable Care and Recon-ciliation Acts of 2010 will change the way health insurance is delivered and how we will pay for it. Be informed of these changes and get tips for strategies to best deal with them.

Excel Tips, Tricks and Techniques for Accountants (EXL) August 2 | WSCPA Learning Center, Bellevue

Excel is the accountant’s tool of choice for analyzing and reporting financial data, yet most accountants have never received any formal Excel training. As a result, many accountants use time consuming and error prone pro-cesses to complete everyday tasks. This highly acclaimed course contains hundreds of tips, tricks, and techniques to improve your productivity and accuracy.

NEW! WEBINAR: Protecting Your Clients, Your Business and Your Good Name (WNR07) August 4 | Online

Identity theft is the number one complaint to the Federal Trade Commission and costs over $54 billion a year. Learn about the different types of identity theft and new tactics being used by thieves. Tips on how to protect your clients and business, along with the way to handle a breach, will be covered.

NEW! Business Continuity and Disaster Recovery (BUS) August 5 | WSCPA Learning Center, Bellevue

Fire. Flood. Virus. Server failure. Even a dissatisfied employee deleting critical files from your computer sys-tems. If such an event struck your business, how long would it take for your company or firm to resume full opera-tions? Are you sure you would be able to do so? In fact, Gartner Inc., research found that 93% of organizations that have experienced a significant data loss are out of business within five years. If you are not willing to gamble with your organization’s future, then you should make plans to attend this seminar.

Looking for additional CPE? Learn about additional seminars for CPAs working in business and industry at www.wscpa.org. Plus, learn about webcasts on topics in your business niche, such as:

WEBCAST: Real Estate Conference (WEB57)WEBCAST: International Tax & Business Conference(WEB65)WEBCAST: Wine Industry Conference (WEB68)WEBCAST: Health Care Conference (WEB85)


IRC §7216

Absent a specific exception, such as a subpoena, summons, peer

review, or a regulatory request for infor-mation, prior written consent by a tax-payer is generally required to disclose or use tax return information. An unauthor-ized disclosure or use of tax return may result in both civil and criminal penalties, so CPAs are advised to review the appli-cable standards in order to determine whether written consent is required prior to making a disclosure or use of tax return information.

Earlier this year, the Internal Revenue Service updated information in its §7216 Information Center, and the most recent information can be found at www.irs.gov/taxpros/article/0,,id=218344,00.html.

Internal Revenue Code §7216 gov-erns the disclosure or use of tax return information by tax return preparers (T.D. 9375). Pursuant to IRC §6713, a civil pen-alty of $250 per disclosure ($10,000 max-imum per calendar year) may be imposed on an income tax return preparer who improperly discloses tax return infor-mation. In addition, under IRC §7216, tax return preparers who knowingly or recklessly discloses or uses information furnished to them in connection with the preparation of an income tax return may be subject to a criminal penalty, a $1,000 fine, and up to one year imprisonment.

CPAs should be familiar with the §7216 regulations as well as Rev. Proc. 2008-35, which provides further guidance as to the form and content for consents to disclose or use tax return information derived from Form 1040 series income tax returns.

Also useful are:

• Treas. Reg. §301.7216-1, pro-viding general information regarding IRC §7216 and key definitions.

• Treas. Reg. §301.7216-2, listing situations in which disclosure

or use is permitted without consent.

• Treas. Reg. §301.7216-3, pro-viding the rules regarding the form and content of consents to disclose or use tax return information.

Frequently Asked Questions1 on §7216 RegulationsDisclosure to Attorneys

Q: Under the new §7216 regula-tions, do I need to obtain prior written consent if my client requests that his/her tax return information be sent to their attorney?

A: If the disclosure is done to facili-tate the client and/or tax return preparer seeking legal advice pursuant to Treas.

resources to Help Cpas Comply with IrC §7216By Anthony J. Cooper, J.D., CAMICO

Reg. §301.7216-2(g)(1), a tax preparer would not need to obtain written con-sent of the taxpayer as defined by §7216. However, CAMICO recommends as a best practice that firms maintain some documentation of the client’s request.

Disclosure to Lender at Client’s RequestQ: My client files an individual tax

return and has asked me to forward her return to her lender for purposes of obtaining a loan. Although I would prefer sending the return directly to the client, it is not practical in the present case. Which sample consent form should I use?

A: See the sample Consent Form 4A — Client Request to Send Info to Third Party, e.g., Lender, which applies to situa-tions involving disclosures to third parties for purposes other than preparation of the tax. Please note that the consent form is designed for domestic disclosures that have been initiated at the client’s request. This sample form should be tailored to the particular situation. [Download this form at www.wscpa.org/Content/ technical.aspx.]

Blank Lines — Incomplete ConsentsQ: Can I allow the taxpayer to fill in

the purpose for which the disclosure or use is sought?

A: No. According to Rev. Proc. 2008-35 §4.04(4), a tax return preparer may not present a consent form with blank spaces related to the purpose of the consent to the taxpayer for signature. However, nothing in the regulations would preclude the tax preparer from allowing the tax-payer to fill in other items.

FacsimileQ: Can a signed consent form be a

copy (e.g., facsimile) or must it be the original?

A: Presumably, a copy or facsimile would be valid. According to Rev. Proc. 2008-35 §4.04(3), consents to disclose

Download sample consent forms at www.wscpa.org/ Content/technical.aspx


IRC §7216

Sample Consent Forms and Requirements for Consents

The regulations describing the required format and content of a consent form are detailed. For a complete list of the requirements, please consult Treas. Reg. §301.7216-3 and Rev. Proc. 2008-35 for consents involving 1040 series tax return.

For additional information on consents, including eight sample forms (one is reproduced at right), go to www.wscpa.org/Content/technical.aspx

Form 1 – Domestic disclosure for purposes of providing tax return preparation services; e.g., outsourcing. Applies to situations where consent is required to disclose tax return information within the United States, its ter-ritories or possessions for purposes of tax return preparation or performance of aux-iliary services.

Form 1 Consent to Disclose Tax Return Information in Tax Preparation and Auxiliary Services Context

Federal law requires this consent form be provided to you. Unless authorized by law, we cannot disclose, without your consent, your tax return information to third parties for purposes other than the prepara-tion and filing of your tax return and, in certain limited circumstances, for purposes involving tax return preparation. If you consent to the disclosure of your tax return information, Federal law may not protect your tax return information from further use or distribution.

You are not required to complete this form. Because our ability to disclose your tax return information to another tax return preparer affects the service that we provide to you and its cost, we may decline to provide you with service or change the terms of service that we provide to you if you do not sign this form. If you agree to the disclosure of your tax return information, your consent is valid for the amount of time that you specify. If you do not specify the duration of your consent, your consent is valid for one year.

We may disclose your tax return information to the entities listed below for purposes of [e.g., providing tax return preparation services]. The disclosure may include information contained in or derived from the information furnished to [preparer/firm name] in connection with the preparation of your current or prior year tax return(s). The information disclosed may also include all information contained within your tax return(s), unless you request a more limited disclosure.

ACKNOWLEDGMENT

__ I (We), [taxpayer name], authorize [name of preparer] to disclose to [name of recipient] my (our) tax return information to allow [name of recipient] to assist [name of preparer] in providing us with [e.g., tax return preparation services].

___________________________________ ____________Client (and spouse, if applicable) Signature Date Signed

_________________Duration of Consent

If you believe your tax return information has been disclosed or used improperly in a manner unauthorized by law or without your permission, you may contact the Treasury Inspector General for Tax Administration (TIGTA) by telephone at 1-800-366-4484, or by email at [email protected].

resources to Help Cpas Comply with IrC §7216


IRC §7216

or use tax return information must be signed by the taxpayer. However, neither IRC §7216, its regulations, nor the above Rev. Proc. require the tax preparer to retain an original signed copy of the consent form. Nevertheless, CAMICO advises policyholders to always request an original signed copy of the con-sent form, which should be kept in the client’s file.

Please note, pursuant to Treas. Reg. §301.7216-3(c)(3), a tax return preparer must provide a copy of the executed consent to the taxpayer at the time of execution.

Disclosure to Third Party — Identifying Recipient

Q: Does the third party have to be identified where a consent to disclose is required?

A: Generally, yes. According to Treas. Reg. §301.7216-3(a)(3)(i)(B), if a taxpayer

consents to a disclosure of tax return information, the consent must also identify the specific recipient (or recipi-ents) of the tax return information. How-ever, for filers not filing in the Form 1040 series, a consent may allow disclosure to a descriptive class of entities engaged by a taxpayer or the taxpayer’s affiliate in lieu of identifying specific recipients of an intended disclosure. Treas. Reg. §301.7216-3(a)(3)(iii).

Processing or Collecting PaymentQ: May I use and/or disclose tax return

information to process or collect pay-ment for tax preparation services pro-vided to the taxpayer?

A: Yes, provided the information was furnished by the taxpayer for purposes of making payment for the tax prepara-tion services (Treas. Reg. §301.7216-2(n)). However, in general, the tax preparer may not disclose or use tax return

information to collect payment without prior written consent, if the information was not provided for purposes of making payment.

Anthony Cooper is a tax analyst with CAMICO (www.camico.com), responsible for providing CAMICO’s policyholders with infor-mation regarding income, gift, and estate tax issues.

1 CAMICO’s FAQs are provided for reference only. As this information is designed solely to provide guidance, it is not intended to be a substitute for someone seeking personal-ized professional advice based on specific factual situations.

2 Disclosure for use in securing legal advice, Trea-sury investigations or court proceedings. A tax return preparer may disclose tax return information:

(1) To an attorney for purposes of securing legal advice;(2) To an employee of the Treasury Department for use

in connection with any investigation of the tax return preparer (including investigations relating to the tax return preparer in its capacity as a practitioner) conducted by the IRS or the Treasury Department; or

(3) To any officer of a court for use in connection with proceedings involving the tax return preparer (including pro-ceedings involving the tax return preparer in its capacity as a practitioner), or the return preparer’s client, before the court or before any grand jury that may be convened by the court.


BLoGGiNG

Tell us about your blog, FarmCPAtoday.com.

As the name denotes, the blog Farm cpatoday.com focuses on farm account-ing and taxation. I grew up on a farm and still have a passion for farming and accounting related to farming. I started getting interested in doing a blog during late 2008. When I couldn’t find CPA-related blogs for farming or agriculture, I contacted Michelle Golden, a market-ing expert, who helped my firm, Hansen NvO PS, get started.

What tips would you give to CPAs who want to start a blog?

1. You must have a passion for the subject or the idea of writing a blog. Although I enjoy researching and writing the posts for the blog, it would be much harder if I did not enjoy writing about it.

2. You need to be committed to posting to the blog. I have tried to post at least twice a week and try to get in about 3 posts a week. Each post takes probably about 30 minutes of prep and writing time. To be effective, you need to be committed to posting.

3. Find some professional help in setting up the blog. You can do a blog by using canned software, however, I think for it to look professional, it is worth the cost to get it done by a professional. I would estimate this would cost about $2,500-3,500 to get it all done right.

4. Understand your audience. A large portion of my readers are from the Midwest corn belt and are not CPAs. I do not use too much accounting lingo, or if I do, I explain it to our readers.

How long did it take to set up and launch your blog?

We started this process early in 2009 and most of the work took place during the 2009 tax season. The blog

went live during the first quarter of 2009. Since then I have posted about 175 articles to the blog.

How much time do you devote to blogging?

Three to five hours per week to find content, write posts and update the site with comments or photos.

How do you decide what to write in your blog?

The blog covers issues that I think are important to farmers. The posts are divided between tax, accounting issues and other interesting topics for farmers. I use various sources for material:

1. Every week I review web sites related to farming and farm taxation. If I find something interesting in one of these sites, I will do a post and then have a link to the article.

2. With all of the income tax law changes that have been done in the last year or so, it has been easy to simply post on these changes and how it might affect farmers.

3. I get various comments and e-mails with questions from farmers and CPAs and I will answer these questions. I usu-ally try to give some real life examples to make it more understandable for the reader.

4. In my normal day to day interac-tion with my clients, I come across vari-ous situations that I think my readers might be interested in and will write on those subjects.

How much exposure have you received as a result of your blog?

I have gotten quite a bit of exposure in the last few months as a direct result of the blog. Farm Journal Media became aware of my blog about 6 months ago.

They invited me to write various arti-cles for Farm Journal and Top Producer magazine. I have also appeared on their national TV show Agday as part of their Leave a Legacy project.

Their website Agweb.com invited me to create and post a blog on farm accounting and taxation. Most of these postings are also on my current blog, however, this has greatly increased the number of my readers.

Other CPA firms from around the country have contacted me asking for solutions to their income tax questions for their farm clients. That has been very rewarding to help out other CPAs.

How do you measure the effectiveness of your blogging efforts?

Metrics that come with my blog site measure how many unique visitors I get per day, the number of pages visited, etc. Agweb.com tracks how many people are visiting the site each month.

Have you noticed an increase in your business since you started blogging?

I have obtained about five very good farm clients from the blog already. Two of them are local.

I get several questions each month from readers. Even though most of them never become clients, I find it very rewarding to help my readers become better farmers.

Paul Neiffer is a partner at Hansen NvO in Yakima and Kennewick. You can contact him at [email protected].

Read the WSCPA blog at www.wscpa.org.

How to Start a Cpa BlogAn interview with Paul Neiffer, CPA, Farmcpatoday.com


eVeNts

new professionals networking events

FOR ONLY $20/PERSON (unless noted otherwise), each event includes: networking with young CPAs, bankers and lawyers; activities, prizes, appetizers and drinks.

REGISTER and learn more at www.wscpa.org (search for NP in the Education & Events Catalog) or call (425) 644-4800. Locations subject to change. Check online at www.wscpa.org for latest event details.

SPONSORS Event fees are low thanks to these sponsors:

SPOKANE EVENTSAuG 13 New! Scavenger Hunt (Np05),

Downtown SpokaneoCt 21 New! Billiards Tournament (NP07),

Far West Billiards

PUGET SOUND EVENTSJuLy 16 BBQ Picnic (NP03), BellevueAuG 11 Argosy Cruise (Np04), seattle, $30SEPT 16* Members’ Reception (Np06), rock Bottom

Brewery, Bellevue, complimentaryoCt 28 New! Whirly Ball (Np08), seattleNOV 17* Casino Night (Np09), redhook Ale Brewery,

Woodinville

* One lucky eligible attendee will win a CPA exam review prize.

2010 photo album

Conference ScheduleDATES CONFERENCE

Aug 19 Farm Tax Conference (FARMC) Kennewick

tBA IRS Joint CPE (IRSV)

oct 13 Business Valuation & Litigation Services Conference (BVLSC) Bellevue

Oct 25-27 Northwest Tax Institute™ (NWTI) Seattle

oct 29 Working Together Symposium (WTS) Seattle

Nov 11-12 Pacific NW Construction Industry Conference (CIC) Seattle

Nov 18-19 Not-for-Profit Conference (NFPC) Seattle

dec 3 Fraud Conference (FDC) Bellevue

dec 13-14 Information Technology Conference (ITC) Bellevue

Learn more at www.wscpa.org/CPE/Conferences or call (800) 272-8273 (Toll-free in WA) or (425) 644-4800.

2010 Golf Tournament, May 17

Wine Tasting,

April 29

Emerald Downs, May 14

Barry Melancon Meets with Students at UW, May 4

1st place team

2nd place team


CLoud CoMputiNG

Is Cloud Computing right for Your Firm?By Brian Sears, CISSP, Benson & McLaughlin PS

Both Amazon and Microsoft have significant investments into cloud

computing. Cloud computing is not a fad and it’s here to stay. So what is cloud computing? Simply, it’s a service based on the concept of virtualization, or the idea of using one physical server to host many virtual servers. This provides for a more efficient use of resources, decreased cost in physical hardware and redundancy. So is cloud computing a new technology? Actually, virtualization has been around for a few years. With cloud computing the virtualized servers are hosted by third parties and are accessed via any Internet connected computer. You and your firm need to address a unique set of techno-logical and security related issues. I hope this article helps you with this decision.

What happens in the event of a service failure?

Cloud computing requires reliable Internet service and in most cases the purchase of additional T1’s will be needed to support the increased in bandwidth. Consider purchasing T1’s from different providers to provide some redundancy and insure you stay connected to your cloud even if one provider suffers an outage. Select a cloud service provider with multiple data centers. If one center suffers a failure you want to be able to access your cloud. plus, ask about back-ups and the portability of what you have in the cloud. Request weekly backups that can be restored to a traditional network or if needed another cloud provider.

Carefully read the provider’s Service Level Agreement (SLA) and question any promise of 100% uptime. To the provider 100% uptime may mean that the servers your cloud resides upon will be running and working properly. Ask about external factors that impair access to the servers, like power and Internet outages. SLAs have exclusions for everything from acts of god to services outside their control.

Remember, the terms are designed to protect the provider.

Will your data be secure? Security in the cloud exists on two

plains, when data is at rest and in transit. Data at rest is everything that is in the cloud and stored on the provider’s serv-ers. Security at this point relies heavily on your provider’s ability to configure both the servers and the virtualization prop-erly. Even if you ensure that your cloud and its security are properly configured, any failure by the provider to properly configure, maintain and patch the physical systems puts your data at risk.

Data in transit is data as it moves between you and your cloud. Prior to the cloud this data was on a server locked in your server room and probably never left your network. In the cloud this data moves freely across the internet, acces-sible from any computer with internet access. Insist on two-factor authentication (a username, password and a PIN), and ensure that your data in transit and left on remote workstations is encrypted.

Will my firm be in compliance with applicable laws?

Can your cloud provider meet or exceed industry standards, state and fed-eral laws for the protection of personal identifiable information, and demonstrate that they have the ability to stay compli-ant? Who inspects the provider to ensure compliance and what happens if they can no longer maintain the standards and fall out of compliance? Also, does your firm have an ethical obligation to inform your clients that their personal data is being stored and managed by a third party?

Is my firm protected in the event of a legal dispute?

In the event your firm gets involved in a legal action, does your provider have the ability to respond in a timely manner to discovery request while protecting

data from loss of deletion? The provider will need to be able to collect the data without affecting your ability to do busi-ness, and be able to show that the collec-tion of the required data is complete and unaltered. If your data is on a server in another state or country, this could com-plicate the discovery process and be time consuming and costly.

Is it cost effective? Can moving to the cloud save your

firm money? On the surface the answer is yes! But let’s take a closer look. Assume you purchase a server for your internal network for $5k. Depreciated over five years, your cost for the server is $1k/year. If you move to the cloud and pay $500 annually, you will save about $500/year. Looks good, right? But wait! By eliminat-ing the server and moving to the cloud your firm now has an increased need for bandwidth. With the average cost of a T1 at $500/month, $6k/year, your firm’s cost with the cloud have actually increased.

How long could the firm go without access to the cloud? If over the course of a year, your firm has an average of one outage/month, what would your revenue loss be? This cost should to be factored into the total cost of using the cloud.

If you are considering a move to cloud computing, move slowly, and start with non-business critical services to ensure it works as intended. Be flexible as the technology evolves; you will need to adapt as new regulatory controls and state and federal laws in data protection are implemented. Do your research, con-duct a risk assessment and rely on your IT team. Consult your attorney to make sure you address legal risks and meet regulatory requirements.

Brian Sears, CISSP, is Chief Information Security Officer with Benson & McLaughlin in Seattle. You can contact him at [email protected].


FiNANCiAL LiterACy

With 41% of U.S. adults, or more than 92 million people living in

America, giving themselves a grade of C, D, or F on their knowledge of personal finance, there is considerable room for improvement. (source: 2009 Financial Literacy Survey of adults conducted on behalf of the National Foundation of Credit Counseling, Inc.) In an effort to bring our grade up, several WSCPA chap-ters hosted financial literacy workshops in conjunction with the first west coast Money Smart Week campaign (April 26-May 1), organized by Washington Jump$tart Coalition with support from the federal Reserve Bank of Chicago and the Federal Reserve Bank of San Fran-cisco.

Money Smart Week® is a public awareness campaign designed to help consumers better manage their personal finances. It began as a coordinated effort of the Federal Reserve Bank of Chicago and the Money Smart Advisory Council, a diverse group of more than 40 Chicago-area organizations working together to promote personal financial literacy. Members agreed to share resources and ideas to achieve greater public aware-ness of the programs and services avail-able in the city of Chicago. The result was Money Smart Week 2002, a week of 40 financial seminars and educational activi-ties. The Money Smart Week model has since spread throughout the Midwest, and now to the west coast.

This is achieved through the collabora-tion and coordinated effort of organiza-tions across the state including businesses, financial institutions, schools, libraries, not-for-profits, government agencies and the media. The campaign allows the groups to come together once a year to stress the importance of financial literacy, inform consumers where they can get help, and provide free educational semi-nars and activities throughout the week.

Jump$tart invited different groups

to become partners in the campaign by either hosting an event or workshop, or offering some kind of financial education service. CPA groups were among the first to step forward and some partnered with other groups to increase their reach. Groups included:

• South King County Chapter which worked with the Auburn Chamber of Commerce to host a workshop on identity theft in business.

• Sammamish Valley Chapter collaborated with Third Place Books to host a workshop on credit cards and an information table.

• The Filipino American Associa-tion of CPAs and the Seattle Chapter partnered to offer three workshops at the seattle Times building. The topics included identity theft, retire-ment and debt management.

• Whitworth University and the Spokane Chapter joined together to offer a workshop to college students on credit.

• The Beta Alpha Psi Club of the University of Washington orga-nized on campus workshop on retirement.

• WSCPA volunteers made a pre-sentation to college students on budgeting as part of the Money Smart Day in Bellingham.

WSCPA board members and volun-teers also attended the Money Smart Week kickoff event that was co-hosted by the Federal Reserve Bank of San Fran-cisco and Washington Jump$tart.

The feedback from these events was positive from both participants and volunteers.

Carl Chan, a Whitworth University student who helped organize the event, along with the Spokane Chapter, said, “Working with business professionals from our local area in connection with the Money Smart Week program was a huge success! I strongly hope that this event becomes an annual occasion as it is so important that students learn about credit and how it affects them.”

Money Smart Week is a great way for your firm, company or community group to get involved in financial literacy. Wash-ington Jump$tart and other groups pro-vide opportunities throughout the year for individuals and groups to bring finan-cial literacy to your community.

To learn more about this and other opportunities to improve financial literacy in your community, watch for announce-ments through the FL Blog or WSCPA Short Form. For more information about resources available to members, contact [email protected].

Building money Smart CommunitiesBy Amy O’Donnell, WSCPA Financial Literacy Program Manager

More than 92 million people living in America give themselves a grade of C, D, or F on their knowledge

of personal finance.

“I strongly hope that this event becomes an annual occasion as it is so important that students learn about credit and how it affects them.”


MeMBers oNLy

a Greener Way to ShipUPS, WSCPA: Partners in Sustainability

uPS pursues sustainable business practices worldwide through

operational efficiency, conservation ini-tiatives and industry-leading innovations.

Now UPS can help you do the same. UPS offers a way for you to offset the

climate impact of your UPS shipping with carbon neutral shipping. When you select this service, UPS calculates carbon emis-sions for all carbon neutral shipments, then purchases and retires offsets equal-ing that amount. The UPS process for carbon neutral shipping is certified by The CarbonNeutral Company, one of the world’s leading carbon offset and carbon management businesses, and the calcula-tor for quantifying the emissions to offset is verified by SGS, the world’s leading ver-ification and certification company. Plus, UPS will match offset purchases up to $1 million through 2010.

When you choose UPS, you are selecting a company that has already made great strides to reduce its own impact on the planet. To read more about green initiatives

by UPS, visit www.wscpa.org (click on Membership).

Coming soon: improved WSCPA member discounts to help you save

even more money on shipping.

To learn more about UPS (and other) WSCPA member discounts visit www.wscpa.org and login. Click Membership > Member Benefits > Business Services.

A way for you to offset the climate impact of your UPS shipping:

verified carbon neutral shipping.


GreeN it

Green computing initiatives seem to focus on things that simply

don’t relate to my business, or that of my customers. When I recently searched online for “green IT initiatives” the results were about supercomputer heating sys-tems and global alliances around data center management. These are not the most accessible concepts to most of us.

Fortunately, Green IT can be simple, when we focus on common sense approaches. Consider these key points for greening up your IT efforts.

1. Product longevity. According to Gartner, manufactur-

ing itself accounts for 70% of the natural resources used in the life cycle of a PC. Investing in higher quality and more pow-erful machines today will lengthen the time before you have to make another purchase. If you have existing PCs, then upgrade them with more ram or larger hard drives before buying new. Not only is this a green approach, but you will likely be more productive with faster machines.

2. Virtualize. Server virtualization is running mul-

tiple instances of servers on one physi-cal machine. This reduces the number of servers you will need to purchase, which again is not only a green approach, but a very cost effective one. In many cases, a single server with beefed up memory and storage may cost 30-50% more than a standard server, but can replace several physical servers. This can save you many thousands of dollars on hardware as well as up to 80% savings on power according to industry experts.

3. Turn stuff off. Turn off desktop and laptop comput-

ers every night and always turn off moni-tors at night. All of these devices use power even in standby mode. Do a full shut down. Saves energy, and your com-

puter really was not meant to stay on for weeks on end. There are processes that need periodic cleanup that happen on shut down and if you don’t shut down periodically, you will notice stability issues with your computers. If you are running desktops all day and night, they will cost an average of $200 annually to run. Turn them off at night and that number comes down to an average of about $85. With 20 employees you would save $2,300 per year in electricity.

4. Buy laptops instead of desktops.

Laptops use well less than 50% of the power of a desktop/monitor combo, and in some cases that can be as little as 20% as much power. If an average desktop and monitor cost around $200 to run for a year, and the average laptop costs $60 and you have 20 employees, simply moving to laptops will save you $2,800. For more savings, turn those laptops off at night (as stated in #3 above) and bring that average operating cost to $25 for an additional savings of $700 in this example.

5. Don’t print things you don’t need to print and manage print usage.

Everything you print uses toner, paper, and electricity. Each page printed costs up to 13 cents. Use print preview instead of printing a sample copy, don’t print e-mails, and interestingly, use a carbon efficient font. A font like Century Gothic uses 30% less toner than Arial! Statistics show that printing costs from $300 to $1,200 on average per employee. Using the right font and printing the same amount can save you $90 to $360.

6. Communicate electronically. Use e-mail instead of printed mail

whenever possible. Use web marketing to the extent possible. Also think about meetings and how technology can assist – teleconference, do web presentations,

etc. Think about the travel you can reduce and the reduction in printed materials!

When you add it all up, going green sounds a lot like doing good business. Being green aligns with many things that just make sense: saving money, being more efficient, and being more productive.

NEW MEMBER BENEFIT Free Server Monitoring and Desktop Management from ISOutsource

Looking for proactive IT support that’s within your budget? Since 1992, ISOutsource has been helping busi-nesses with flexible and affordable IT solutions and support. With its local technical staff, ISOutsource can help you reduce frustrating IT disruptions, minimize costly delays, and ensure that you never feel abandoned by your IT service provider.

At the simplest level, ISOutsource can help you ensure your employees are happy, productive and supported.

Whether your internal IT depart-ment needs project support or vaca-tion coverage, you need end to end outsourced IT, or you need remote support for your users, ISOutsource can help.

Contact ISOutsource today at (800) 240-2821or e-mail [email protected] to discuss how ISOutsource can help you. Ask about special offers for WSCPA members, including free server monitoring ($19.95 value per server each month) and free desktop management ($4.95 value per desktop/laptop per month) with the purchase of a $1,000 minimum Block of Support*.

* Block of Support is a pre-pay for time and material services, which has no required monthly minimums, and can be used for up to 12 months.

accessible Green ITSimple Ways to Save Money, Be More Efficient & Productive

By Richard Brunke, COO, ISOutsource


CPE Digest Education and Event Listing ..... page 31Registration .................................page 37

need affordable Cpe? Start your search here

Looking for an economical way to take your CPE? As a WSCPA member, you can save on CPE in the classroom and online. Take advantage of these member discounts:

Save on Live CPESave up to $75 on each eight-hour seminar. Plus, you can pass on this savings to your non-CPA staff (to receive this discount call the Society).

Save Even More with a Season TicketWith the Season Ticket, you can take live CPE at a cost of only $174.50 per 8-hour seminar. That’s about $22 per CPE hour. You cannot find a better value on live CPE. Order yours today in the Education section of www.wscpa.org.

Save on Self StudySave hundreds with an annual self study subscription through WA Pros. Check out this and other self study options at www.wscpa.org (Education > Self Study/Online CPE).

Save with Webcasts and Webinars Eliminate travel expenses (and save time) with webcasts and webinars. Try webcasts for free, November 9 with a Profes-sional Issues Update. Register today by searching for “WEB” at www.wscpa.org/Cpe/catalog.


Register at www.wscpa.org/CPE/catalog or page 37 eduCAtioN ANd eVeNt ListiNG

Fees date Course Code WSCPA

MemberFee

Non- Member Fee

AiCpA Member Discount

FacilityFor more information, enter code in catalog at www.wscpa.org

Full day courses are from 8:00 a.m.-4:00 p.m. and qualify for eight credit hours unless otherwise noted. ç New | non-tech credits | E Ethics credits | 4 credits | Conference | Y yellow Book | C CFp | l Chapter event | Networking Event | S Season Ticket and Coupons N/A

need affordable Cpe? Start your search here


MemberFee

Non- Member Fee



EVENTS BY LOCATION

WSCPA education and events scheduled for July - Ocober 2010 are listed below, chronologically by location. If you are looking for a program in another location, it may be scheduled for later in the year. Using the online CPE/Event Catalog at www.wscpa.org/CPE/catalog, you can search by location.

Locations in this CPE Digest issue

Bellevue p. 31 Lynnwood p. 34

Bellingham p. 33 Olympia p. 34

Chelan p. 34 seattle p. 34

Coeur d’Alene p. 34 Spokane p. 34

Everett p. 34 tacoma p. 34

Kennewick p. 34 Yakima p. 35

Kent p. 34 Your Desk - Webcasts and Webinars

p. 35

LEARN MORE To view complete course details, please visit the CPE/ Event Catalog at www.wscpa.org/CPE/catalog.

ICONS

ç New

l Chapter event or meeting

Networking event

S Season Ticket and Coupons N/A

2010-2011 EVENT SCHEDULE To view the complete schedule of events through May 2011, refer to the CPE/Event Catalog at www.wscpa.org/cpe/catalog or the 2010-2011 Washington Professional Education Catalog (mailed to members in mid-May). To request a copy of the catalog, call (800) 272-8273 (toll-free in Washington) or e-mail [email protected].

Need help finding a seminar or webcast? Call the WSCPA at (800) 272-8273 or (425) 644-4800 to speak with a Member Services Representative.

Bellevue

Jul 6 Compilation and Review Standards Update and Review by Walter Haig Crur1 295 370 0 WSCPA

ç Jul 7 GAAP Update and Review for Small and Medium-Sized Entities (SMEs) by Walter Haig

GursMe1 295 370 0 WSCPA

ç Jul 12 Financial Management Workshop: What Public Accounting Didn’t Teach you

FMW 265 340 0 WSCPA

Jul 13 Corporate Finance Tune-Up: Putting the Right Skills in Your Analytical toolbox

CFt 265 340 0 WSCPA

Jul 13 Accountant’s Guide to Fraud in Compilations/Reviews/Audits AGF 265 340 0 WSCPA

ç Jul 14 Auditing: Implementing the NEWLY Revised Risk Assessment Standards RISK10 265 340 0 WSCPA

Jul 16 s BBQ Picnic - New Professionals Networking Event 7-10 pm Np03 20 20 0 WSCPA

ç Jul 22 Effective Business Development Skills In Today’s Recession 8-11:30 am eBs41 140 170 0 WSCPA

ç Jul 23 Inside the IRS - A Tour for CPAs, EAs and Accountants iti 265 340 0 WSCPA

Jul 26 Excel for Windows Advanced COMEX2 230 305 0 WSCPA

Jul 26 2010 Health Care Reform Act: Critical Tax and Insurance Ramifications for You, Your Business and Your Clients 8-11:30 am

CL4HCrA 140 170 0 WSCPA

Jul 27 Word Tips Tricks & Techniques COMWO1 230 305 0 WSCPA

Jul 29 The Top 50 Mistakes Practitioners Make and How to Fix Them: Individual Tax and Financial Planning

iNBB 275 350 0 WSCPA

Jul 30 The Best S Corporation Limited Liability and Partnership Update Course by Surgent McCoy

BCpe1 275 350 0 WSCPA

Aug 2 Excel Tips, Tricks and Techniques for Accountants EXL 265 340 0 WSCPA

Aug 2 DATE CHANGE: Washington B & O and Sales Tax WSTX1 265 340 0 WSCPA

ç Aug 3 Rock Solid Tax Strategies That Will Mesmerize Your Self-Employed LLC, “S” Corporation, and Schedule C Clients

rsts 265 340 0 WSCPA

Aug 3 Internal Controls for Small Business Accounting Systems itCB1 265 340 0 WSCPA

ç Aug 4 Fresh New Tax Planning and Compliance Ideas That Take Advantage of Recent Tax Acts and IRS Pronouncements

FNtp 265 340 0 WSCPA

Aug 4 Paperless Office ppo 265 340 0 WSCPA


eduCAtioN ANd eVeNt ListiNG Register at www.wscpa.org/CPE/catalog or page 37



MemberFee

Non- Member Fee



Aug 5 Guiding Surviving Spouses, Heirs, Beneficiaries, Estates, Trusts and Dece-dents on Tax, Estate and Financial Planning - Forms 1040, 1041, 706

ssAr 265 340 0 WSCPA

ç Aug 5 Business Continuity and Disaster Recovery Bus 265 340 0 WSCPA

ç Aug 9 Microsoft Excel 2007 Level 2 MEXII 265 340 0 WSCPA

ç Aug 10 Microsoft Excel 2007 Level 3 MEXIII 265 340 0 WSCPA

Aug 10 Personal Financial Accounting: A Prescription for Achieving and Managing Wealth by Walter Haig

pFA1 295 370 0 WSCPA

Aug 11 Compilation and Review Standards Update and Review by Walter Haig Crur2 295 370 0 WSCPA

ç Aug 12 GAAP Update and Review for Small and Medium-Sized Entities (SMEs) by Walter Haig

GursMe2 295 370 0 WSCPA

Aug 18 Thirty-Plus Practical Tools and Techniques for Making Your Key Financial Decisions

ttMd 265 340 -30 WSCPA

Aug 19 Negotiating Skills for Finance Professionals: Get What You Want When You Want It

NsFp 265 340 -30 WSCPA

Aug 23 Excel Functions Tips Tricks Techniques COMEX3 230 305 0 WSCPA

Aug 24 Introduction to SQL COMSQ1 230 305 0 WSCPA

Aug 25 Crystal Reports Introduction CoMCr1 230 305 0 WSCPA

Aug 25 Troubled Times - Current Economic Crisis: Critical Accounting & Auditing Considerations

tteC 265 340 -30 WSCPA

Aug 26 Cash Flow Statement: Preparation, Presentation and Use FCFs 265 340 -30 WSCPA

Aug 27 e DATE CHANGE: CPE in Ethics: A Requirement in Washington State 8-11:30 am

CENRW402 175 210 0 WSCPA

Aug 30 Revised Yellow Book: Government Auditing Standards eoyB2 265 340 -30 WSCPA

Aug 31 Right the First Time: Cases in Not-For-Profit Accounting and Auditing CNFp 265 340 -30 WSCPA

sep 1 Excel Pivot Tables COMEX4 230 305 0 WSCPA

sep 2 Introduction to Microsoft PowerPoint CoMpp2 230 305 0 WSCPA

sep 3 Crystal Reports Intermediate CoMCr2 230 305 0 WSCPA

sep 8-9 s Northwest Accounting Educators Conference 7:30 am-4:10 pm NAeC 175 175 0 WSCPA

sep 10 Compilation and Review Standards Update and Review by Walter Haig Crur4 295 370 0 WSCPA

ç sep 13 Acquisitions to Grow the Business: Structure, Due Diligence and Financing AGB 265 340 0 WSCPA

ç sep 14 Driving Corporate Performance: The CFO’s Role in Developing Competi-tive Advantage

dCp 265 340 0 WSCPA

sep 16 s Members’ Reception - Networking Event Must be 21 or older to attend 6-8:30 pm

Np06 0 0 0 Rock Bottom Restaurant & Brewery

sep 21 Form 990: AICPA’s Answer to Unlocking the Tax Complexities eoF9902 265 340 -30 WSCPA

sep 22 Real Estate Accounting and Auditing reAA 265 340 -30 WSCPA

sep 22 How to Guide Your 60+ Clients on Tax, Long-Term Care, Planning, Estate, Social Security, Medicare, and Eldercare Strategies

GyeC 265 340 0 WSCPA

sep 23 C Tips and Traps for Dealing with the IRS: From Start to Finish dirs 265 340 -30 WSCPA

sep 23 Construction Contractors: Accounting, Auditing and Tax CAAt 265 340 -30 WSCPA

sep 24 C Closely Held Business Taxation: 49 Practical Ways to Cut Taxes CHBt1 265 340 -30 WSCPA

Sep 27 Cash and Tax Basis Financial Statements - Preparation and Reporting CtB1 265 340 -30 WSCPA

Sep 27 Excel Budgeting and Forecasting Techniques eBt 265 340 0 WSCPA

sep 28 Public Company Update: SEC, PCAOB, and Other Developments pCou 265 340 -30 WSCPA

sep 28 Microsoft Word: Essential Tools and Techniques for Accountants WOR 265 340 0 WSCPA

sep 29-30 SEC Reporting seCr 425 540 -60 WSCPA

ç sep 29 Google Apps for Accountants - An Alternative to Microsoft Office 12:30-4 pm

GAp41 140 170 0 WSCPA

sep 29 Excel PivotTables for Accountants - Part I 8-11:30 am pt141 140 170 0 WSCPA

ç sep 30 Surviving and Growing Your Company in Difficult Times: Essential Skills for the Finance Team

sGyC2 265 340 -30 WSCPA

sep 30 Security for Accountants: New Legal Requirements and Practical Solutions seC 265 340 0 Meydenbauer Center

oct 4 Auditing: What’s New for 2010 Engagements AWN10 265 340 0 WSCPA




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oct 5 Fraud: 15 NEW Hot Topics F2010 265 340 0 WSCPA

oct 6 Financial Statement Presentation and Disclosure - A Realistic Approach Fspd 265 340 0 WSCPA

oct 6 Controllers Profit Building Toolkit CpBt 265 340 0 WSCPA

Oct 7 The Role of Internal Control in the Risk Based Audit riC 265 340 0 WSCPA

oct 8 Yellow Book Essentials for New Staff - A RealisticApproach Workshop yBe 265 340 0 WSCPA

oct 12 e CPE in Ethics: A Requirement in Washington State 8-11:30 am CENRW404 175 210 0 WSCPA

oct 13 Business Valuation and Litigation Services Conference 8:30 am-4:30 pm BVLsC 215 290 0 WSCPA

oct 14 Word Tips Tricks & Techniques COMWO2 230 305 0 WSCPA

oct 15 Excel Functions Tips Tricks Techniques COMEX5 230 305 0 WSCPA

oct 18 Applying A-133 to Nonprofit and Governmental Organizations eooMB 265 340 -30 WSCPA

oct 18 Advanced Excel Ade 265 340 0 WSCPA

oct 19 C Advanced Estate Planning: Practical Strategies for Your Clients Aep 265 340 -30 WSCPA

oct 19 QuickBooks Advanced Features, Tools, and Techniques ADQ 265 340 0 WSCPA

oct 20 Excel Data Analysis COMEX6 230 305 0 WSCPA

oct 20 C S Corporation Key Issues, Compliance, and Strategies: An IRS Target Area sCorp1 265 340 -30 WSCPA

oct 21 Business Sustainability: Keeping Lean but with More Green for the Com-pany’s Long Haul

SKLG 265 340 -30 WSCPA

oct 21 Using Outlook as a Personal Information Manager CoMou1 230 305 0 WSCPA

oct 22 Lean Accounting for Service and Nonmanufacturing Businesses LAsN 265 340 -30 WSCPA

oct 22 Internal Control Essentials for Financial Managers, Accountants, and Auditors

iCdAd2 265 340 -30 WSCPA

Oct 25-27 Staff Training - Basic stp1A 655 770 0 WSCPA

oct 25 Getting On Top of It All: The New Science of Increasing Productivity in Yourself and Others

Got 265 340 0 WSCPA

oct 26 Triple Your Memory and Confidence, and Halve Your Stress tyMC 265 340 0 WSCPA

Oct 27 C AICPA’s 2010 Tax Review Series: S Corps, LLCs, and Other Pass-Through Entities

trpt 265 340 -30 WSCPA

Oct 27 C Understanding Accounting Issues for Estates and Trusts: Meeting Your Accounting and Auditing CPE Requirements

uAet 275 350 0 WSCPA

oct 28 C Choice of Entity - Key Issues: S Corp, C Corp, Partnership, LLC and Sole Proprietorship

CEKI 265 340 -30 WSCPA

oct 28 C Fiduciary Income Tax Returns - Form 1041 Workshop 1041 275 350 0 WSCPA

oct 29 Advanced Income Tax Accounting - Including Practical Application Exercises

ADTX 265 340 -30 WSCPA

oct 29 Advanced Concepts in Estate Planning ACep 275 350 0 WSCPA

Bellingham

sep 8 Compilation and Review Standards Update and Review by Walter Haig Crur3 295 370 0 Hampton Inn Bellingham

ç sep 9 GAAP Update and Review for Small and Medium-Sized Entities (SMEs) by Walter Haig

GursMe3 295 370 0 Hampton Inn Bellingham

Nov 3 C Basis/Distributions for Pass-Through Entities: An IRS Hot Spot Bdpte1 265 340 -30 Lakeway Inn & Conference Center

Nov 4 C Innovative Tax Planning for Small Businesses: Corporations, Partnerships & LLCs

tpoC1 265 340 -30 Lakeway Inn & Conference Center

Nov 8 Annual Update for Accountants and Auditors AuAA1 265 340 -30 Lakeway Inn & Conference Center

Nov 18 Nonprofit Auditing and Accounting Update NAu1 265 340 -30 Lakeway Inn & Conference Center

Dec 7 e CPE in Ethics: A Requirement in Washington State 8-11:30 am CENRW415 175 210 0 Lakeway Inn & Conference Center

Jan 12 Federal Tax Update - Individuals (Form 1040) Ftui3 265 340 0 Lakeway Inn & Conference Center

Jan 13 Federal Tax Update - C & S Corporations, Partnerships & LLCs (Forms 1120, 1120S & 1065)

FtuB3 265 340 0 Lakeway Inn & Conference Center





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Chelan

Jul 8-9 Accounting and Reporting Standards Annual Update and Review by Walter Haig

Arsur1 485 600 0 Campbell’s Resort on Lake Chelan

Coeur d’Alene

Aug 19-20 Accounting and Reporting Standards Annual Update and Review by Walter Haig

Arsur2 485 600 0 Coeur d’Alene Golf & Spa Resort

Edmonds

oct 28 s Whirly Ball - New Professionals Networking Event 6-8:30 pm Np08 20 20 0 Whirly Ball

Everett

oct 20 Common Frauds and Internal Controls for Revenue, Purchasing and Cash Receipts

CFiC2 265 340 -30 Edward D. Hansen Conference Center

oct 22 e CPE in Ethics: A Requirement in Washington State 8-11:30 am CENRW403 175 210 0 Edward D. Hansen Conference Center

Kennewick

Aug 19 Farm Tax Conference FArMC 220 295 0 Three Rivers Convention Center

oct 21 Internal Control Essentials for Financial Managers, Accountants, and Auditors

iCdAd1 265 340 -30 Hilton Garden Inn Tri-Cities/ Kennewick

Kent

Jul 15 l s Asset Allocation in Today’s Market 8-9 am CHSK01 20 20 0 Golden Steer Restaurant

Oct 27 Forensic Accounting: Fraudulent Reporting and Concealed Assets FAFr2 265 340 -30 Holiday Inn Hotel & Suites

Lynnwood

Jul 13 l s Elder Law: Pitfalls and Tax Traps for the Unwary 3:30-5:30 pm CHsN01 20 20 0 Hampton Inn Lynnwood

oct 26 Washington B & O and Sales Tax WSTX2 265 340 0 Lynnwood Convention Center

Olympia

oct 18 IFRS Small and Medium-Sized Entities (IFRS for SMEs) iFrss 265 340 0 Red Lion Hotel Olympia

seattle

Aug 11 s Argosy Cruise - New Professionals Networking Event 7:30-9:30 pm Np04 30 30 0 Argosy Cruises

Aug 13 s Scavenger Hunt - Networking Event 4:30-7:30 pm Np05 20 20 0 tBA

ç sep 23 The LLC and LLP Supercourse - How to Guide Families, Professionals and Closely-Held Clients on Limited Liability Companies and Limited Liabil

LLsC 265 340 0 Hilton Seattle Airport

ç sep 24 Today’s Complex Real Estate Tax Planning Strategies for Distressed Real Estate, LLCs, Contractors/Builders, Investors, Homeowners, and Like-K

drep 265 340 0 Hilton Seattle Airport

sep 28 Accounting for Income Taxes: Applying SFAS No. 109/FIN 48: A Whole New Ballgame!

Ait 265 340 -30 DoubleTree Guest Suites Southcenter

oct 19 Solving Complex Single Audit Issues for Government and Nonprofit Organizations

eosAi 265 340 -30 Washington State Conv Center

oct 21 Forensics and Financial Fraud: Real-World Issues & Answers FFF2 265 340 -30 Washington State Conv Center

Oct 25-27 s Northwest Tax Institute 8 am-4:30 pm NWTI 775 850 0 Bell Harbor International Conf Center

oct 28 FASB Review for Industry FAsBi1 265 340 -30 Washington State Conv Center

Spokane

sep 20 Form 990: AICPA’s Answer to Unlocking the Tax Complexities eoF9901 265 340 -30 Hampton Inn Spokane

ç sep 29 Surviving and Growing Your Company in Difficult Times: Essential Skills for the Finance Team

sGyC1 265 340 -30 Hampton Inn Spokane

oct 18 Forensics and Financial Fraud: Real-World Issues & Answers FFF1 265 340 -30 Hampton Inn Spokane

oct 19 Common Frauds and Internal Controls for Revenue, Purchasing and Cash Receipts

CFiC1 265 340 -30 Hampton Inn Spokane

oct 21 s Billiards Tournament - Networking Event 6-8:30 pm NP07 20 20 0 Far West Billiards

oct 28 Advanced Controller and CFO Skills ACCs1 265 340 -30 Hampton Inn Spokane

tacoma

oct 20 Controllership: Leading Edge of Corporate Performance CLeCp1 265 340 -30 Pacific Grill Events Center




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Yakima

oct 26 Forensic Accounting: Fraudulent Reporting and Concealed Assets FAFr1 265 340 -30 Clarion Hotel and Conference Center

Webcasts and Webinars - Your Desk

ç Jul 6 WEBCAST: Measure What Matters to Customers Using Key Predictive Indicators 8:30 am-4:30 pm

WEB12 255 295 0 Online

ç Jul 8 C WEBCAST: Estate and Trust Conference 8:30 am-4:30 pm WEB13 255 295 0 Online

ç Jul 9 WEBCAST: Business Valuation Conference 8:30 am-4:30 pm WEB14 255 295 0 Online

ç Jul 12 WEBCAST: Private Foundations Tax Primer 8:30 am-4:30 pm WEB15 255 295 0 Online

ç Jul 13 WEBCAST: Private Foundations - Advanced Tax Topics 8:30 am-4:30 pm WEB16 255 295 0 Online

ç Jul 14 s WEBINAR: Unclaimed Property - Making Claims and Getting Claims 9-10 am

WNR06 20 35 0 Online

ç Jul 14 WEBCAST: Accountancy Laws, Ethics (CA ONLY), Taxes and Financial Reporting Review 8:30 am-3:30 pm


ç Jul 19 WEBCAST: Legal and Financial Aspects of Restructuring and Liquidation 8:30 am-4:30 pm


ç Jul 20 WEBCAST: Finding and Evaluating Frauds: A Case Study Approach 8:30 am-4:30 pm


ç Jul 21 WEBCAST: Advanced Fraud Case Study 8:30 am-4:30 pm WEB20 255 295 0 Online

ç Jul 22 WEBCAST: Intro to XBRL and New Opportunities for CPAs 8:30 am-4:30 pm


ç Jul 28 WEBCAST: New Federal Tax Law- Individual and and Business Current Developments You Need To Know 8:30 am-4:30 pm


ç Jul 29 WEBCAST: IRAs--Contributions and Distributions Distributions for Traditional Roth, SEP, and SIMPLE IRAs 8:30 am-4:30 pm


ç Jul 30 C WEBCAST: Health Savings Accounts (HSAs), Medicare, Tax Favored Health Care Plans & Medical Expenses 8:30 am-4:30 pm


ç Aug 4 s WEBINAR :Protecting Your Clients, Your Business and Your Good Name 9-10 am


ç Aug 9 WEBCAST: Tax Planning Based on the 1040 8:30 am-4:30 pm WEB25 255 295 0 Online

ç Aug 10 WEBCAST: Tax Planning for Investors 8:30 am-4:30 pm WEB26 255 295 0 Online

ç Aug 11 WEBCAST: Ready, Set, Change: Today’s Real Estate Laws 8:30 am-4:30 pm


ç Aug 13 WEBCAST: Applying A-133 to Nonprofit and Governmental Organiza-tions 8:30 am-4:30 pm

WEB28 305 355 -30 Online

ç Aug 17 C WEBCAST: Tax Issues in Divorce 8:30 am-4:30 pm WEB29 255 295 0 Online

ç Aug 18 WEBCAST: FASB Update 8:30 am-4:30 pm WEB30 255 295 0 Online

ç Aug 19 WEBCAST: Searching for Fraud: Assessing Risk and Addressing Red Flags 8:30 am-4:30 pm


ç Aug 23 WEBCAST: Preparing Form 5500 8:30 am-4:30 pm WEB32 255 295 0 Online

ç Aug 24 WEBCAST: Partner’s Audit Engagement Documentation and Review 8:30 am-4:30 pm

WEB33 305 355 -30 Online

ç Aug 25 s WEBINAR: Accounting 101: How HR Affects the Bottom Line 9-10 am WNR08 20 35 0 Online

ç Aug 25 WEBCAST: Compilation & Review Update 7 am-3 pm WEB104 195 225 0 Online

ç Aug 26 WEBCAST: FIN 48--Accounting for Uncertain Tax Positions 8:30 am-4:30 pm


ç Aug 30 WEBCAST: Corporate Liquidations and Dissolutions 8:30 am-4:30 pm WEB35 255 295 0 Online

ç Aug 31 WEBCAST: FIN 46R Variable Interest Entity Consolidation Rules: Not Just a Big Company Issue! 8:30 am-4:30 pm

WEB36 305 355 -30 Online

ç sep 1 WEBCAST: S Corporations Workshop 8:30 am-4:30 pm WEB37 255 295 0 Online

ç sep 15 s WEBINAR: Cash Reporting: Hazards for the Accountant and Business 9-10 am


ç sep 22 WEBCAST: Farmers Tax and Accounting Conference 8:30 am-4:30 pm WEB38 255 295 0 Online

ç sep 23 WEBCAST: Federal Taxation of Partnerships and LLCs Part I: Formation, Operation and Allocations 8:30 am-4:30 pm






MemberFee

Non- Member Fee



Need help finding a seminar, conference or webcast? Call the WSCPA at (800) 272-8273 or (425) 644-4800.

ç sep 24 WEBCAST: Common Interest Realty Associations Conference 8:30 am-4:30 pm


ç sep 29 WEBCAST: Audits of HUD-Assisted Projects 8:30 am-4:30 pm WEB41 305 355 -30 Online

ç sep 30 WEBCAST: Fraud in the Governmental and Not-For-Profit Environments: What a Steal! 8:30 am-4:30 pm

WEB42 305 355 -30 Online

ç oct 1 WEBCAST: Federal Taxation of Partnerships and LLCs Part II: Sales, Bequests, Redemptions and Liquidations 8:30 am-4:30 pm


ç oct 6 WEBCAST: Representing Clients in the Marriage Dissolution, Process: Accounting, Tax, Estate and Financial Planning Issues 7 am-3 pm

WEB105 195 225 0 Online

ç oct 19 WEBCAST: Fraud: Exposures and Solutions in the Non-Audit Environ-ment 8:30 am-4:30 pm


ç oct 20 WEBCAST: 2010 Accounting & Auditing Update 7 am-3 pm WEB106 195 225 0 Online

ç oct 22 WEBCAST: Deal Structure for Mergers Acquisitions Transactions 8:30 am-4:30 pm


ç Oct 27 WEBCAST: Accounting and Auditing Conference 8:30 am-4:30 pm WEB46 255 295 0 Online

ç oct 29 C WEBCAST: Asset Protection Planning 8:30 am-4:30 pm WEB47 255 295 0 Online

Advantage Skills based courses for all accounting/finance professionals

� WSCPA Members $289+ tax

Regular price $409

Government/Nonprofit CPA Report

For CPAs working in governmental and not-for-profit accounting


Regular price $205

CPA Report Online Designed for CPAs in public practice

WSCPA Members $289+ tax

Regular price $409� FMN Online

For business & industry finance professionals


Regular price $409

For more information and to view course catalogs for each subscription, visit www.wscpa.org. Go to the Self Study and Online CPE page.

Online Self-Study CPE Subscriptions: Unbelievable selection. Unbeatable price. Want affordable CPE that’s flexible? WA Pros online annual self-study subscriptions provide unlimited access to text-based and streaming video CPE at unbeatable prices. These subscriptions are designed for CPAs who need to keep up to date on ever-evolving rules, regulations and trends affecting public accounting, business, government or NFPs. Select from four WA Pros self-study options below. Order online at www.wscpa.org, and simplify your CPE journey with WA Pros.

CPE Value Seeker, Meet WA ProsOnline Self-Study CPE Subscriptions: Unbelievable selection. Unbeatable price. Want affordable CPE that’s flexible? WA Pros online annual self-study subscriptions provide unlimited access to text-based and streaming video CPE at unbeatable prices. These subscriptions are designed for CPAs who need to keep up to date on ever-evolving rules, regulations and trends affecting public accounting, business, government or NFPs. Select from four WA Pros self-study options below. Order online at www.wscpa.org, and simplify your CPE journey with WA Pros.


Register at www.wscpa.org/CPE/catalog reGistrAtioN

Code Title Date City Fee1

3

WSCPA CPE policies apply to all programs in the CPE Digest. Review the CPE policies at www.wscpa.org.

Register online at www.wscpa.org/CPE/catalog or:

Questions? E-mail [email protected] or call (425) 644-4800 or (800) 272-8273 (toll-free in Washington).

2

2

ç sep 24 WEBCAST: Common Interest Realty Associations Conference 8:30 am-4:30 pm


ç sep 29 WEBCAST: Audits of HUD-Assisted Projects 8:30 am-4:30 pm WEB41 305 355 -30 Online

ç sep 30 WEBCAST: Fraud in the Governmental and Not-For-Profit Environments: What a Steal! 8:30 am-4:30 pm

WEB42 305 355 -30 Online

ç oct 1 WEBCAST: Federal Taxation of Partnerships and LLCs Part II: Sales, Bequests, Redemptions and Liquidations 8:30 am-4:30 pm


ç oct 6 WEBCAST: Representing Clients in the Marriage Dissolution, Process: Accounting, Tax, Estate and Financial Planning Issues 7 am-3 pm

WEB105 195 225 0 Online

ç oct 19 WEBCAST: Fraud: Exposures and Solutions in the Non-Audit Environ-ment 8:30 am-4:30 pm


ç oct 20 WEBCAST: 2010 Accounting & Auditing Update 7 am-3 pm WEB106 195 225 0 Online

ç oct 22 WEBCAST: Deal Structure for Mergers Acquisitions Transactions 8:30 am-4:30 pm


ç Oct 27 WEBCAST: Accounting and Auditing Conference 8:30 am-4:30 pm WEB46 255 295 0 Online

ç oct 29 C WEBCAST: Asset Protection Planning 8:30 am-4:30 pm WEB47 255 295 0 Online


CLAssiFied Ads

Detailed advertising information is available online at www.wscpa.org. Classified Ads are $40 for 40 words or less and $1 for each additional word. Active E-mail and web site addresses count as two words and are $10 additional each. Positions available ads are for magazine placement only. Contact Sharon Olene-Marander at (425) 586-1138, (800) 272-8273, Ext. 1138, or [email protected] for more information. All ads must be pre-paid.

POSITIONS AVAILABLEEstablished Bellingham CPA firm is seeking experienced auditor to join our team of professionals. 5+ years of audit experience required. Collaborative working environment, excellent advancement opportunities and salary and benefits package. Submit resume and cover letter to Varner Sytsma & Herndon, CPA’s, 2200 Rimland Drive, Suite 205, Bellingham, WA 98226, Attn: H/R

Established Bellingham CPA firm is seeking experi-enced CPA to join our team of professionals. 3+ years of tax experience required. Collaborative working environment, excellent advancement opportunities and salary and benefits package. Submit resume and cover letter to Varner Sytsma & Herndon, CPA’s, 2200 Rimland Drive, Suite 205, Bellingham, WA 98226, Attn: H/R

OFFICE SPACEBellevue Office Space: 4,300 sq.ft. on Lake Bellevue, Kitchen, conference room, 8 small offices, Workstations, Call JJ at 425-373-9922 ext.105.

MERGERS & SALESAuburn, WA practice for sale. Grossing billings 300k. Details on this practice can be viewed at www.newclientsinc.com or call 1-888-NEW-CLIENTS.

Looking for sole proprietor practice for possible affili-ation. We have office and support team infrastructure and also can help increase your revenues by providing to your clients fee only wealth management. Contact Curtis Erickson at 206-734-3705 or [email protected].

CPA looking for $150,000-$250,000 size practice to pur-chase in the Bellingham area. Cash purchase. Please respond to Tom by phone, (707) 545-0701 or e-mail, [email protected].

Local Firm Looking for Practice. Are you thinking of retiring or selling your practice soon? We are a Redmond based CPA firm looking to purchase another firm. We are looking for a firm with revenues between $200,000-$1,000,000. Most of our work is with business clients and high net worth individuals. We have purchased practices before and are very familiar with how to transition a client base. Please call Bruce Sult at 425 883-3111 or e-mail [email protected] if you are interested in discussing a sale. You can review our website at www.falcosult.com.

Considering Selling Your Practice? Consider all your options. We do the work. Confidential. We have buyers actively seeking practices. Call Mark Hause at 877-345-7722 or visit our website at www.accountingpracticesales.com. Accounting Practice Sales. We make dreams happen!

IBA Sells Privately Held Companies. Do you represent a client who is ready to retire or has taken a company as far as they want to or can? IBA is the Pacific Northwest’s oldest business brokerage (M&A) firm. We are professional negotiators with over 4000 completed transactions. Please contact us if we can be of assistance at (800) 218-4422 or www.ibainc.com.

We Sell Practices! --- ProHorizons has been helping CPAs sell their practices since 1995. Confidential, prompt, professional and stress free. Call for a FREE sales package and confidential consultation with our regional representative, Ken Berry at 888-729-9476 or visit www.prohorizons.com.

PRACTICES FOR SALE

Contact Mark Hause at Accounting Practice Sales by e-mail at [email protected] or call 877-345-7722 for more information on the following practices:

counsel on a variety of business related matters. The firm has great staff, established methods and procedures which make this a turn key practice. All of these qualities combine to make this firm a must see for any accountant or firm looking for an acquisition.Puget Sound Accounting, Bookkeeping, & Consult-ing Practice for Sale: This practice’s revenue comes from accounting, bookkeeping, and consulting with individuals and companies who need professional help with their accounting function of their business. The marketing strategy has been based on referrals, networking, and some advertising. A lot of the work is performed in the offices of the client with some completed at the home office of the Seller. Currently, the missing component of this practice is tax work which could come the Buyer’s way with the proper background and credentials. The ideal buyer will understand QuickBooks and possibly be a QuickBooks ProAdvisor along with a solid background in accounting with good customer service skills.Spokane CPA Firm for Sale: The owner of this account-ing practice with an emphasis on tax preparation is ready to retire. The firm revenue mix is 87% tax preparation with the balance being write-up and representation before taxing authorities. The clients of the firm are loyal due to receiving hands on personalized service from the owner. The firm is further enhanced by having a high visibility office location on a heavily traveled thorough fare. All of these qualities add up to create a firm that is an excellent prospect for acquisition whether for an individual who has aspirations of owning a practice or a firm wanting to expand their customer base.

Small North Seattle CPA Firm for sale. Owner wants to retire (or semi-retire) after 30 years; will consider contingent sale to right person. 95% tax; approximately 500 clients. Send inquiries to [email protected] or fax to 1-877-752-7716.

Volunteer Opportunities206 Universal is looking for direction in our first year filing as an organization; meets 1st and 3rd Mondays of the month.

the Aging & Disability Resource Center (ADRC) needs a volunteer CPA to bring experiential perspective and expertise on personal accounting options/resources, to be an integral part the planning process.

The Institute of Inspection, Cleaning & Restoration Certification needs a volunteer to oversee an annual audit of financials, review/recommend an audit firm selected by RFP, and review/approve an annual audit report.

TisBest Philanthropy is seeking a board member / volunteer treasurer who would provide general financial guidance.

The Arc of Tri-Cities Foundation is seeking new board members. The Foundation meets on the 4th Wednesday of the month at 5:15 pm.

Washington Water Trust is looking for a board member to attend quarterly meetings and provide financial expertise and serve on our finance committee or as treasurer.

Best Little Rabbit, Rodent & Ferret House needs general financial advice including the proper way to prepare a yearly budget.

International District Housing Alliance is looking for board members who can support the mission of the orga-nization, fund development, and commit to a year of service. Meetings are 1/month on a Wednesday evening.

Theater Puget Sound is looking for board members with financial backgrounds. We hold meetings quarterly, and have standing committees that meet monthly or as needed.

New Moon Farm Goat Rescue and Sanctuary is look-ing for a CPA with non-profit experience to help us plan our finances, and help with our books (if necessary).

Learn more about these and other volunteer opportunities at www.wscpa.org (enter volunteer positions in the search box).

Anacortes CPA Firm for Sale: This CPA firm is a traditional CPA firm with income tax, write-up, along with financial services to round out the practice. The firm revenue mix breaks out 76% tax, 18% write-up, and 6% financial services. The buyer will have the opportunity to retain the current office location indefinitely as the Seller owns the building. With a loyal client base and good fees, this firm offers opportunity to a firm looking to expand or a CPA wanting to be on their own. Bellevue CPA Firm for Sale: This CPA located in Bellevue wants to sell a highly profitable practice. The firm revenue mix is heavily concentrated in the area of tax preparation with over 92% of all fees coming from the rendering of tax services. The future of this firm is further enhanced by a significant number of clients having a high net worth with the need for additional services in a variety of areas. The ideal buyer will be one who has the experience of working with high net worth individuals who can take advantage of the solid fees and loyal practice base.Blaine CPA Tax Firm for Sale: This CPA firm located close to the Canadian border is primed for a new owner and has wonderful potential. The firm is the only CPA firm in town and receives referrals from all types of professionals including banks and real estate agents. The practice revenues are predominantly from tax services with that segment of the business generating approx. 86% of total revenues for the firm. The balance is split almost equally between write-up and consulting. With opportunities for cross border tax and consulting services along with traditional income tax services, this firm is a solid opportunity for any accountant who wants to own their own firm or a firm looking to expand or open a branch office.Bremerton, Port Orchard, Silverdale Area CPA Firm for Sale: This outstanding CPA firm (single loca-tion) with an excellent fee structure and solid cash flow is for sale. The firm is a tax practice with no auditing and enough write-up work to balance out cash flow over the course of the year. The firm client base composed of long term loyal clients is the product of the owner’s long term commitment to the community coupled with top of the mind name recognition when seeking professional accounting services. This firm is further enhanced with knowledgeable staff, no concentration of clients either by fees or segment of the local economy. All of the forego-ing creates an opportunity for any firm or practitioner to acquire a firm that is a proven entity.Everett Tax Practice for Sale: The seller of this prac-tice has several locations and wishes to sell two locations whether together or singly and focus on the remainder of the practice. The locations have established clients and have lease’s in place insuring the availability of the current location for several years. Each of the locations were previously national franchise tax preparation locations who are no longer affiliated with the organization. What remains are high visibility locations with staffing in place that would be a profitable addition to an existing firm seeking to expand or a great starter practice(s) for an individual that are located within 15 minutes of each other.Kent Tax Practice for Sale: This firm caters to the Hispanic community by preparing income tax returns and providing accounting services for the balance of the year. The revenue stream consists of 65% income tax preparation and 35% accounting services. The firm employs schedule billing for all individual income tax returns which causes the average fee to equal many franchise tax providers. The firm value is further augmented by the staff that assists the owner in providing quality professional services. The ideal buyer would be one who possesses Hispanic communica-tion skills that will enhance the loyalty and boost the value of services rendered to the firm’s clients.North Seattle CPA Firm for Sale: This CPA firm located in North Seattle has been in the business of pro-viding top drawer professional services for over 30 years. The firm is a full service practice offering all traditional accounting services including attestation. The revenue mix breaks out 73% income tax, 10% write-up, 14% auditing, 3% reviews and compilations with excellent per return and/or engagement fees. The practice has a significant number of business returns that will require a good business minded accountant that is comfortable with rendering advice and


MeMBer proFiLe

Heading Back to the ClassroomLaura Lindal, CPA

if you could schedule your own engagements anywhere in the U.S.,

which locations would you pick? According to Laura Lindal, CPA, an

auditing instructor for the American Institute of CPAs, timing is everything. She would schedule teaching engagements in: “Vail, CO in February; Austin, TX in May; Vermont in October; New York City in December.”

“My ideal locale would be somewhere I haven’t been before. And, please, may I teach two classes with a day in between – time enough for sight-seeing?” said Laura.

“Traveling is definitely a big consider-ation as an AICPA instructor. While I may be in a number of cities during the year, usually I am arriving in the evening and bustling after a class to get back to the airport.”

“The best part about being an instruc-tor is that each time I teach I learn something – either more efficient doc-umentation or audit procedures,” said Laura, who has more than 20 years of experience in auditing, including audits performed in accordance with OMB Cir-cular A-133, HUD Consolidated Audit Guide and Government Auditing Stan-dards.

“I have been able to build relationships with some of the CPAs from my classes. This has been rewarding and it is a great resource to have CPA contacts all over the country,” said Laura.

Though she enjoys teaching, Laura did not set out to be an instructor.

“Fifteen years ago a fellow CPA recruited me to teach at a vocational college, which I did as a second job. More recently, I was recruited by the AICPA to teach auditing courses, particularly in the government auditing area, and have been doing so since.”

When she is not in a classroom, you can find Laura working with clients in the Kirkland, Washington area, where she started her own CPA practice in 2008.

“After being in the CPA profession 20 years, and considering the next 20 years of my career, I wanted to be in an atmo-sphere where I could fully implement my ideas for an audit practice that was dedi-cated to effectively understanding and implementing professional standards in an environment that efficiently utilized its resources – the greatest resource being the people who are doing the work. I also wanted to be able to respond to client concerns I had heard over the years – clients prefer to work with CPAs who know their industry and they want consistency in the personnel assigned to their work. Clients are our customers and we should be providing them with the most excellent service. The consider-ation of all these elements led me to start my own CPA practice.”

Laura grew up in California and began her career there.

“At the beginning of my career I worked for a large local firm in Fresno, California. I put in 2,700+ hours my first year working on financial statement engagements.”

Within a couple of years, Laura had the opportunity to join an audit partner who was leaving the firm to start his own practice.

“Being able to work directly with a partner during that time of my career gave me an intense education on how to audit efficiently and effectively. It gave me experience designing an audit from start to finish. Being a part of building his firm gave me administrative skills and experi-ence managing a CPA practice.”

“I was also exposed to developing CPE course material and the performance of peer reviews, both of which enhanced my focus on learning the requirements of our professional standards,” recalls Laura, the chairperson of the WSCPA Engage-ment Review Acceptance Body.

This partner also encouraged Laura, who is a licensed CPA in California, Washington and Alaska, to sit for the CpA exam.

“He encouraged me to sit for all parts of the exam whether I felt ready or not. I’m grateful he did – I passed all parts the first time,” said Laura.

“The firms I have worked at since have broadened my experience at managing personnel and capitalizing on each per-son’s strength, integrating professional standards with firm procedures to build a profitable audit practice, and using electronic audit and research tools to enhance profitability.”

“Working with clients is the best part of my job, whether those clients are com-panies, non-profit organizations, or other CPAs,” said Laura. “I enjoy building posi-tive working relationships and being able to provide services that are beneficial to my clients.”

Laura Lindal will be teaching Annual Update for Accountants and Auditors (AUAA), November 9 in Kennewick and November 11 in Olympia; and Risk Assessment and Audit Sampling: Applying the New Audit Sam-pling Guide Requirements (RAAS), December 10 in Bellevue. Register today at www.wscpa.org/cpe/catalog.

If you are interested in becoming an instructor, contact the WSCPA Director of Education, Hayden Williams, CPA, at [email protected] or (425) 586-1110.

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Documents

The WashingtonCPA - July/August 2010