September - ND CPA Society

September 2015 | Volume XXVII | No. 5
New Tax Due Dates Create More Logical Information Flows
On July 31, President Obama signed into
law a short-term highway funding extension that contained important due date
modifications for several common tax returns, including partnerships and C corporations. PL 114-41 is the culmination
of a longstanding effort by the AICPA
and state CPA societies to eliminate the
awkward chronology for many returns.
Under the prior due dates, taxpayers and
practitioners often had insufficient time
to prepare returns because required information from a flow-through business
was not available before the taxpayer’s
income tax return was due. The idea behind the changes is to have flow-through
returns completed before the returns in
which the flow-through information is
reported for the recipients – in forms
1040 and 1120, for example. Tax preparers will now have time to receive and
analyze the flow-through information
before reporting it in other filings.
Most of these changes are ones that the
AICPA and state CPA societies have been
advocating for several years. The effort
centered on urging a more logical flow
of information that would help taxpayers and tax professionals file timely,
more accurate returns. In articles, social
media posts and personal appeals to
other members, about 200 AICPA and
state society members volunteered their
time to communicate the profession’s
concerns. Discussions also were held between representatives of the profession
and officials from the IRS and Treasury.
Among the changes, the new due date
for C corporations generally will be the
15th day of the fourth month following
the close of the corporation’s year (i.e.,
April 15th for calendar year C corps).
Currently, these returns are due on the
15th day of the third month following the
close of the corporation’s year.
viously permitted. That extended date,
October 15, is also aligned with the Form
1040 extension.
For a complete list of the recent due date
changes, download this chart. http://
www.aicpa.org/Advocacy/Tax/TaxLegislationPolicy/DownloadableDocuments/
Due-Dates-Summary-Chart.pdf
In some cases, due dates have been
moved up. For partnership returns, the
new due date will be the 15th day of the
third month following the close of the
taxable year (i.e., March 15 for calendar
year partnerships). Currently, these
returns are due on April 15 for calendaryear partnerships.
It’s important for practitioners to note
that the new law generally provides
6-month extensions (five and a half
months for trusts), mitigating possible
disruptions from the new due dates. The
new law also provides for additional extensions not previously allowed. The due
date for FinCEN Form 114, for example,
will change from June 30 to April 15 to
align with Form 1040 filings, and under
the new law, Form 114 taxpayers will be
allowed an extension, which was not pre-
September 20-22
Annual Convention
In this issue:
1
•Presidents Message 2
•Recent Exam Passers 2
•Member News 2
•Exam Awards 3
•Member Profiles 4
•YP Article 5
•Small Firms Session 7
•CPA Convention 8
•Upcoming CPE 9
•Tax Commissioner News 11
•Classifieds 12
•Ethics Corner 14
•Annual Meeting Notice/ Proxy Ballot 15
ndcpas.org
September 2015
PRESIDENTS Message
John Mongeon, CPA
And so it is my final article for the newsletter. I want to
thank Jim, his staff, and our members for allowing me
the privilege of serving as President of the Society this
year. I also want to thank the board members for all their
support; Past President, Patrick Kautzman and President
Elect, Tracee Buethner. The year went by very quickly,
but there are many memories that will stay with me.
The state of our society is strong; however there is always
opportunity to improve our value to members. Our June
board meeting was devoted to strategic planning. There
were a lot of great ideas shared, but I want to highlight just a few in this article.
We developed a new mission statement; “Serve members, through Promotion,
Advocacy, Connections & Knowledge (PACK).” Our plan and action items are
focused on providing members value through PACK.
Our value as CPAs cannot be communicated enough to the public. Whether you
are a CPA practicing with a public firm, in industry, government or education,
our expertise, honesty, integrity and objectivity are qualities that can be leveraged and valued by our employers and the public. Our board has developed action items to better promote our CPA brand. We will arrange meetings with the
Governor, Tax Commissioner, State Auditor and other influential public officials.
There will be a task force assembled to create a social media strategy to get our
message out. In addition, a public information campaign to communicate our
value will be disseminated through social media and other forums, such as the
GNDA newsletter. I welcome any members who want to volunteer their time and
talents towards these strategies.
We also need to continue and strengthen our strategies in promoting the profession to students. Our outreach efforts will be targeted to students in college, high
school and possibly even younger. The Public Relations committee has been
tasked to develop recommendations for outreach and promotion. The number
of students choosing accounting as a degree has been strong, but the number
sitting for the exam remains flat. Efforts to educate and promote the value of
earning the CPA certificate will hopefully reverse the trend as well as increase
the number of students entering the profession.
Other strategies along with action items were adopted in our planning session.
The board and other volunteer members will be busy implementing the society’s
strategic plan in the near future.
If you haven’t done so already, please plan on attending our annual convention
in Fargo on September 20 - 22. There will be plenty of CPE opportunities, and
an excellent lineup of speakers. Tommy Barie, our AICPA Chair, will provide a
professional issues update. Outgoing Chair of the Private Company Council, Billy
Atkinson, will be our Tuesday luncheon speaker. One of my favorites, Bill Reeb,
will kick off Tuesday morning. The convention is a great time to network, enjoy
great entertainment, and attend CPE. Hope to see you there!
NEW members
Rachel Almen, Park River
Olga Arend, Gladstone
Angela Berntson, Fargo
Kayla Christensen, Dickinson
Morgan Ellis, Fargo
Jennifer Jacobson, Fargo
Machelle Pochant, Bismarck
Brade Schweitzer, Moorhead
Aja Steinfeldt, Grand Forks
Congratulations
Exam Passers
The following candidates passed
the CPA exam from
Jan 1, 2015 thru June 30, 2015
Joseph Anderson, West Fargo
Amy Anderson, Oxbow
Calyn Beckman, Minot
James Carroll, Bismarck
Taylor Erickson, Omaha
Logan Fahnhorst, Minnetonka
John Fraase, Fargo
Laura Gilberg, Reynolds
Alec Grande, Mandan
Ryan Haug, Fargo
Andrew Leizens, Grand Forks
Alex Mehring, Fargo
Darren Mende, Plano TX
Nicholas Nelson, Mandan
Rose Nichols, Bismarck
Kristie Novak, East Grand Forks
Landon Padrnos, Fargo
Sevara Pfeifer, West Fargo
Madison Porter, Dickinson
Sean Reinbeau, Blacksburg VA
Andrew Richards, Fargo
Santosh Shetty, Mississauga, Canada
Taylor Siverson, Bismarck
Jessica Speicher, Grand Forks
Whitney Sundquist, Milnor
William Swanson, Mandan
Caleb Tesmer, Eyota MN
Thomas Woodby, Mandan
Jonathan Worrall, Fargo
Qun Yin, Oakville, Canada
Calais Zimney, West Fargo
Member News Glennon Named Director of Manufacturing at Eide Bailly
Dave Glennon has been named director of manufacturing at Eide Bailly LLP. Glennon is a partner
in the firm’s Fargo office and brings more than 14 years of public accounting experience to the role.
He’s provided audit and accounting services to the manufacturing and distribution industries as well
as SEC registered entities, closely held commercial companies, and insurance companies, pools and
trusts. He also has significant experience in engagements with large, multi-location organizations.
2
ndcpas.org
Society Strategic Planning
In June, the Society Board met for a strategic planning session in addition
to their regular meeting. Special thanks to Mary Medley, CEO of the Colorado CPA Society for facilitating the session. Pictured from left to right:
Jim Abbott, Lyndsey Roemmich, Tracee Buethner, Michelle Schumacher,
Clarence Sitter, Dianna Kindseth, Marci Schorsch, Patrick Kautzman,
John Mongeon, Steve Britsch, David Glennon and Mary Medley.
Exam Awards
The following candidates received the top scores on the CPA exam.
These candidates completed the exam between 7/1/14 and 6/30/15.
They had the highest composite exam scores, passing all four parts
on their first attempt, within the 18 month conditioning period. To
be eligible, an individual must be a graduate of a North Dakota or
border city college.
Amy Anderson, Oxbow, ND.
Amy Anderson is a professional golfer on the
LPGA Tour. She graduated Summa Cum Laude
from North Dakota State University with a
Bachelor of Science in Accounting. Her brother
Nathan received a 2014 exam award.
Ashley Freeberg, CPA
Ashley works at Eide Bailly LLP in Fargo. She
graduated Cum Laude from the University of
North Dakota with a Bachelor of Accountancy
and a Bachelor of Business Administration.
Brady Meyers, CPA
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Brady is a Tax Associate at Eide Bailly LLP in
Fargo. He graduated Summa Cum laude from
North Dakota State University with a Master of
Accountancy.
YP Event
Sunday, September 20 from 2:00 pm - 4:00 pm
at Elevate - 210 Broadway, Fargo
Young Professionals join your colleagues for a fun and FREE
roof top social prior to the CPA Convention. For more information or to RSVP go to www.ndcpas.org/ypevent
COLLEAGUES YOU CAN COUNT ON
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3
NDCPAS
Member Profiles
Carol S. Retterath, CPA
Steven Lehrke, CPA
Industry
Young Professional
Position: Tax Specialist - Financial
Current Position: Controller for
Pinnacle West, LLC and Pinnacle Communications Corporation
Services
Company Name and Location:
Farm Credit Services - Mandan, ND
Job Responsibilities: Provide tax preparation, planning
and consulting for agriculture producers.
Company Biography: Farm Credit Services Mandan is a
member-owned cooperative offering agriculture lending and
a variety of financial management services, including farm tax
preparation and planning.
Where did you grow up? Fergus
Falls, MN
First job ever: I worked as a cook at Dairyland during the
summers while in High School. .
How did you decide to be an accountant? I always loved
puzzles and math. I imagined accounting would be a great
way to incorporate both into a career. Employment Background: I worked in tax preparation for
a private CPA for over 7 years and was employed as an Agency
Auditor with the North Dakota Auditor’s Office for approximately 6 years. I am currently employed as a tax specialist for
Farm Credit Services of Mandan.
Alma Mater/Degree: Minnesota State University Moorhead: Bachelor of Science in Accounting
Professional Activities: I am a member of the ND CPA
Society, NDCPA Tax Committee, and past member of the BisMan CPAs.
Hobbies and Pastimes: Anything on the lake, swimming
with my dogs, camping, spending time with my family, and
reading.
Birthplace: Bismarck, ND
Family: My wife Jamie and I just welcomed our first baby, a
boy, on 4/11/15.
Alma Mater/Degree: University of Mary - Bachelor of Science Degree
Hobbies and Pastimes: I enjoy working in fine art, photography, traveling, and spending time with my family.
Personal: My husband and I own and operate a family farm
and ranch in the Washburn area. We have six children and 14
grandchildren.
Something most people don’t know about me: I have a
passion for art and am a member of Bismarck Art & Galleries
Assoc. and the Prairie Plein Air Artists. I work mainly in oils
and my favorite subjects are rural landscapes, prairie flowers,
and buffalo.
What did you do to celebrate passing the exam? Biggest… Steak… Ever!!!
Dream vacation: A quiet, peaceful ocean beach with my
family during one of the ND winters.
The best advice you ever received: Smile and say “Hi”
to everyone. Do what you are afraid to do. Learn from your
mistakes. Always do the right thing. – all from my dad.
Something most people don’t know about you: I have
amazing dance moves, only a few people have ever seen them.
The nicest thing someone has said to you this week:
“Your son looks just like you.” Raffle Tickets
support the foundation
Tickets are now on sale for the Foundation’s Annual Convention Raffle! Funds collected are used for
scholarship awards available to accounting students enrolled at eight area colleges. Several representatives are pre-selling tickets. You can call the Society office to get yours or purchase at the convention. Prizes will be drawn at the close of the convention.
Prize 1: Apple Watch - Sponsored by Brady Martz & Associates, PC
Prize 2: Medora Vacation (Lodging, musical, dinner & golf) - Sponsored by TR Medora Foundation
Prize 3: Fitbit Charge HR wristband - Sponsored by Widmer Roel PC
4
ndcpas.org
Young Professional Group
5 books young CPAs should consider reading
As a young CPA, it’s important to take charge of your own
learning and development. Waiting for someone else to train
you gives away power and misses an opportunity to show initiative. Reading popular business books is one way for you to
keep up with the latest in thought and innovation.
“Reading can give you new perspectives, insights, thoughts,
and ideas to use, not only in your professional life, but at home
and in your community as well,” said Alison A. VanOtterloo,
CPA, vice president of Internal Audit at Pharmacists Mutual
Cos. in Algona, Iowa, and a graduate of AICPA’s Leadership
Academy. “It’s a great way to fast-track your own development
and hopefully when new opportunities or challenges arise you
will be more ready to handle them.”
So what should you be reading right now? We asked several
successful young CPAs for their personal recommendations.
Here’s what they suggested.
1. The Carpenter by Jon Gordon is one VanOtterloo recommends. Drawing on his work with business leaders, salespeople, college, and professional teams & nonprofits, Gordon
advocates for building a life based on proven strategies.
“I loved that book, especially [for someone] in a role that deals
with customers,” said VanOtterloo, who leads a book club that
recently launched at her company. “I’m creating a ‘Leaders are
Readers’ book list for our management team, so I am hoping to
get more ideas of books to add to the list.”
2. The Go-Giver by Bob Burg and John David Mann
is recommended by Andy Armanino, CPA, managing partner
of accounting and business consulting firm Armanino. “It’s a
great little book about how to develop trust and how to give
more in the business world,” he said. “Through that giving,
there are benefits you receive, especially if you’re doing it
because you want to truly give your client or your business
relationships something of value.”
Armanino also is spearheading a leadership book club for
young CPAs at his company. “It’s going to talk about culture,
philosophy, solutions, and our overall leadership style here,”
he said. “We’ve taken the concept of reading popular books
and encouraged up-and-comers to do it in a more formal way.”
COLLEAGUES YOU CAN COUNT ON
by Sheon Ladson Wilson
3. The 15 Invaluable Laws of Growth by John Maxwell is recommended by Joseph Rugger, CPA, CGMA, who is
CFO at Jonesboro Prosthetic & Orthotic Lab in Jonesboro, AR.
In the third and final book in his best-selling series, Maxwell
spells out principles he contends will always propel personal
growth and development.
“This is a great book to get you thinking about ‘You Inc.,’” said
Rugger, a Leadership Academy graduate. “Having a growth
plan for yourself and your career is invaluable as you develop
and grow as an individual in your career.”
4. Thrive by Arianna Huffington is suggested by Mandy
K. French, CPA, who owns MKFrench, an accounting firm
in Springdale, Ark. In the book, Huffington, co-founder and
editor-in-chief of the Huffington Post Media Group, uses her
challenges with juggling business demands and prioritizing
family life to advocate for new metrics of defining success.
French, a Leadership Academy graduate, found the most
value in the book’s early chapters, which focus on Huffington’s
personal journey after realizing she had dangerously overextended herself and the importance of focusing on well-being.
5. Essentialism: The Disciplined Pursuit of Less
by Greg McKeown was suggested by Dan Griffiths, CPA,
CGMA, director of strategic planning at Tanner LLC in Salt
Lake City, Utah. The book advocates pursuing only things that
are essential to your life, and saying no to everything else. To
do this, McKeown says, we should ask what is really elemental
and navigate decisions at work and home based on the answer.
“Greg makes the case that one of the greatest obstacles for
successful people is success itself,” said Griffiths, a Leadership Academy graduate. “Success tends to breed a seemingly
endless stream of opportunities. If we’re not careful, we soon
find our efforts diluted by a number of good opportunities that
inhibit the level of focus required if we are to truly reach our
highest point of contribution.”
Sheon Ladson Wilson is a freelance writer in Durham, N.C.
©2015, AICPA. All rights reserved. Reprinted by permission.
5
You’re covered for most any
disaster, right?
Jim Abbott, Executive Director
Early unexpected departure? You’ve got life insurance for that,
to help those left behind. Serious sickness? That’s where disability insurance comes in. Car accident? That kind of coverage is mandated; of course that’s in place.
How about at work -- your accounting firm or your business
office? If you didn’t show up tomorrow, are you “insured” for
that? Could someone cover for you? Could they even get into
your computer, or access your tax files, or your investment
accounts? Would someone be able to pick up where you left
off, with work in progress? Here are some things we can do to
help smooth out a transition (and the “we” includes me!)
FINISH THAT WILL. It’s been written, maybe even typed years ago, and buried on a
disk somewhere. But now the kids are grown and two are married, so there’s no need
for the guardian or the education funding. And do you really want the same arrangements you sketched out 20 years ago? Wouldn’t it be smart to have a legal mind review
and polish up the wording? Let’s get this piece fixed, shall we!?
701
499.0200
Murphy Business & Financial - ND
www.murphybusiness.com/fargo
Brendan
Muldoon
701
499.3938
Brad
Sturn
701
499.3914
Dan
Hicks
701
499.3911
Logan
Carney
701
499.3933
DRAW A MAP. Perhaps you have a file with dozens of IDs, passwords, accounts, credit
card numbers, etc. It’s like a “map” to all your sensitive information and it’s passwordprotected. That’s all good, but even securely protected, there is the issue of who has the
“key” to the map? Who’s got the password to the “password file”?
HIDE THE KEY. Be sure someone has that “key” to the map of all your sensitive
information. Maybe your spouse could guess the key within a few tries, but if they’re
not available, then what? Let’s figure this out in advance. It could be that you give the
password to a son or daughter. Or, half to one, half to another. Another technique
would be to eliminate the passwords!! Instead use a password program that creates a
new code whenever you enter a password-locked site. Then you don’t need to remember any passwords -- except for the one to the password program! So now there’s just
one key to leave with your spouse, or an attorney. If you have a similar password file
“map” at work, with all the office passwords you could use the same approach – leave
the “key” with a friend or staff member, attorney, etc. Or use a utility and eliminate the
password file.
BACKUP WITH A HUMAN. Yes, we should have our files backed up regularly, offsite, tested occasionally, etc. But I’d suggest also getting a “human backup” – someone
pre-arranged to cover for you when it’s needed in a hurry. That might be someone in
town, or even miles away. They’d be pre-set to step in for you. Their help might be just
transferring your phones and covering calls, perhaps filing extensions, until they dig
themselves out of tax season. If you “leave” without this human backup, your practice
and its value are at risk. They can evaporate as clients take their work across town,
though they might have issues if their documents are locked behind your locked doors.
They may even end up calling the Board of Accounting for help. One place you might
find a “human backup” is at one of our upcoming local firm roundtables. There will be
local firm owners there, visiting about issues of concern. We’ll also hear about services
available, and a profession issues update from AICPA’s Carl Peterson. There will be
ample time to visit about “what keeps you awake at night.” We’ll also talk about possibly creating an ongoing forum – perhaps monthly or quarterly sessions in person or
through the web. We have had small firm sessions in the past -- one in January, with
about 20 participants, where we mentioned some firms who are willing to help with
backup. We also mentioned our ndcpas.org front page having a link to a sample agreement and an AICPA kit. You can join us at either session and you don’t need to be an
accounting firm.
Sept. 9, 9 am, Bismarck Kelly Inn (in Minerva’s), with breakfast
Sept. 22, 12:45 pm, Fargo Holiday Inn, Club Room 3, with refreshments.
RSVP: 877-637-2727, or email: [email protected]
6
Business Sales
Business Valuation
Buyer Search
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Confidential
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BUSINESS
BROKERAGE
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.propertyresourcesgroup.com
www
ndcpas.org
Let’s do coffee
Photo credit: Unsplash.com
Yes, let’s do coffee…
Local firms are invited to an informal round
table, to visit about issues of concern. About
ways to work together. About protecting the
firm and its clients. About what’s out there,
available to your firm now.
The session will include a professional issues update from AICPA’s Carl Peterson.
There will be ample time for visiting about
“what keeps you awake at night (besides
coffee)?” We will talk about continuing
the dialog – perhaps a monthly session, in
person or through the web. Please add this
to your calendar. Feel free to attend both
sessions, and bring along colleagues.
• Sept. 9, 9 am, at the Bismarck Kelly
Inn (in Minerva’s). Seattle’s Best Coffee
(plus breakfast).
• Sept. 22, 12:45 pm, at the Fargo Holiday Inn, Club 3. Coffee/other options.
RSVP: 877-637-2727, or [email protected]
INN
VATION
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No Travel Required
Volunteer without Leaving Your Desk
Our committees work on various aspects of the profession – from planning education to finding member services. A
majority of the groups meet by phone most of the time (see symbols). Take a look at the committees below and get involved! To sign up or ask questions, call 877-637-2727, or [email protected].
 Convention 2016 (Bis)
Plan & manage the Convention (5 or 6 local meetings)
 CPE
Select CPE programs (a 1 day meeting; emails)
 Membership
Select award winners and member services (4 or 5 calls)
 Members in Industry
Management Conference planning, newsletter items (a 1 day meeting; emails)
 Peer Review
Manage accepting process; oversee program (3 or 4 calls; 1 in-person meeting)
 Professional Ethics
Address complaints and proposed rule changes (approx 1 call)
 Public Relations
Work to enhance the CPA image, add to public financial literacy, and encourage individuals to consider entering the profession (1 or 2 1/2 days)
 Taxation
Liaison with tax entities; inform members (1 or 2 calls and 1 meetings)
 Young Professionals
'
'
'
'
Organize education and networking for newer CPAs (about 5 or 6 calls) '
Other Opportunities:  Write a newsletter item  Host a new CPA at Convention  Mentor a new CPA
COLLEAGUES YOU CAN COUNT ON
7
September 20-22
Annual Convention
Schedule of Events
Sunday, September 20
3:00 2:00 - 4:00
3:00 - 5:00 5:30 - 6:30 6:30 9:00
Registration
YP Social at Elevate
Hospitality Room Open
Social
Recognition Dinner
LineBenders Comedy Improv Show
Monday, September 21
7:30 - 8:00 Registration / Breakfast
7:00 - 3:00 Exhibits
7:30 - 8:00 Annual Meeting
8:00 - 9:45 Tommye Barie, AICPA
10:00 - 11:40 Show Your Ink: Under
standing the Power of
Authentic Leadership
12:00 Golf at Rose Creek
1:00 - 2:40
C1. Frequent Frauds in Government(YB)
C2. Individual Tax Update
C3. Revolutionize Small Business Accting
C4. Truth About Creativity & Innovation
3:00 - 4:40
D1. GASB 68 (YB)
D2. Passive Activity and Basis Issues
D3. Prevent/Detect Spreadsheet Errors
D4. Managing Conflict and Change
6:15 Social
7:00 Dinner followed by Las Vegas Style
Dinner Show and Casino Night
Tuesday, September 22
8:00 - 9:40
Overachiever’s Guide to Getting Unstuck
10:00 - 11:45
F1. Accounting and Auditing Update
F2. Business Tax Update
F3. Leadership and Accountability
F4. Data Security - Need We Say More?
11:45 Lunch Presentation by Billy Atkinson, Private Company Council
12:45 - 2:25
G1. Update for Govts and Nonprofits(YB)
G2. Affordable Care Act Update
G3. Fed Reserve Strategies for Improving the US Payment System
G4. Tech Update 2015
2:45 - 4:25
Overcoming Adversity: The Power of One
Details
Conference information:
Holiday Inn
3803 13th Avenue South
Fargo ND 58103
(701) 282-2700
Room Release: 8/25/15
Room Rate: $104
Alternate Hotel:
Fairfield Inn & Suites
3902 9th Ave SW
Fargo, ND 58103
(701) 281-0494
Room Release: 8/23/15
Room Rate: $105
CPE: 16 hours available (including 6 Yellow Book Credits)
Fees include: electronic handouts,
To register or for more details go to
www.ndcpas.org/conv
Fees:
Add $50 if after Sept 4
‰‰ $375 Society member
‰‰ $425 Nonmember
‰‰ $0 Exam Passer from 7/14 to 6/15
‰‰ $175 Lifetime Member
‰‰ $325 One day Soc Member
‰‰ $375 One day Nonmember
‰‰ $50 Printed Materials
‰‰ $ 50 Golf
Guest pricing also available
Conference Sponsor:
entertainment, breakfasts, lunches and
dinners on Sunday and Monday evening.
Golf is extra.
Handout Material:
A link will be sent
to you to access the materials at least
one week prior to the conference. If you
would prefer we provide the copies, there
is a charge of $50.
8
Keynote Sponsor:
IVDesk.com
ndcpas.org
Upcoming CPE
September 18
Drive Your Competitive Edge
with Audit Quality (CL4QUAL)
Fargo Cambria Hotel & Suites
8:30 am - 12:00 pm / 4 CPE Hours
Free but limited to 35 participants
This free CPE course will map your route
to making your firm’s audit practice
more profitable by focusing on quality
and identifying and addressing risks in
your practice. Further, hear tips on how
to demonstrate audit quality and how to
articulate it as a competitive edge to clients. In addition to CPE credit, you will
receive a toolkit of practical resources to
ignite your firm’s pathway to effectively
and efficiently providing quality services
and showcasing the firm’s value.
Learning Objectives
Upon completion of the course, participants will be able to:
• Articulate a working understanding
of the requirements of Statements on
Quality Control Standard No. 8
• Prepare their firms for the types of
questions reviewers will be asking in
their next peer review
• Supercharge their engagement
acceptance policies and proposal
strategies for a more profitable audit
practice
Topics Discussed
• Requirements of SQCS No. 8
• New peer review approach effective
in 2016, which will increase focus on
identifying quality control risks
• Free tools and resources the AICPA
has developed to make firms’ audit
practices more efficient and effective
Intended Audience: Practitioners
subject to peer review who are involved
in compiling, reviewing, or auditing
financial statements of small and midsize
businesses
Level: Intermediate
Instructor: Kim Tredinnick
Developer: AICPA
Area of Study: 4 Auditing
COLLEAGUES YOU CAN COUNT ON
CFO Series
October 8 & 9
Bismarck Heritage Center
www.ndcpas.org/cfo
October 8
Challenges for the CFO/
Controller and Financial
Executive (CFO)
Bismarck ND Heritage Center
8:00 am - 4:00 pm / 8 CPE Hours
$285 Member ($335 Nonmember)
Add $30 after 9/24/2015
As the US economy continues to
struggle, the critical importance of
governance and effective management
controls take a more prominent role
for the CFO/Controller. This course
provides guidance to the financial
executive in dealing with the financial
and accounting issues of these volatile financial markets that the global
economy is currently experiencing.
Useful tools will be explored as it relates to the major risks an organization
faces and how to effectively use those
tools in strategic and operational roles
of the CFO/Controller particularly as
it relates to HR, dealing with difficult
people and ethics.
Topics Discussed:
• Organization governance
• Accounting and legislative process
control risks
• Managing growth and right sizing
• Managing the debt and equity
balance
October 9
Current Economic and
Financial Conditions and
Their Impact on Financial
Decisions (CFO4)
Bismarck ND Heritage Center
8:00 am - 4:00 pm / 8 CPE Hours
$285 Member ($335 Nonmember)
Add $30 after 9/25/2015
The stress on an organization and its
people during prolonged periods of
economic uncertainty can be a leadership problem of untold proportions for
the unprepared CFO and Controller. The
course explores the current economic
trends of major issues facing the financial executive to include deflationary
concerns; fair value standards in unstable markets; obtaining equity capital;
Quantitative Easing impact; collateral
values; financial capacity and cash flow
planning; adding and deleting product
lines; and right sizing an organization in
uncertain times. Specific recommendations and insights will be offered to you
to deal with the challenges.
Topics Discussed:
• The impact of deflation and uncertain inflation on the organization
• Managing organization finances
• Managing risk in an uncertain economic climate
Designed For: Controllers, CFO's,
COO's and CEO's
Designed For: Controllers, CFO's,
COO's and CEO's
Level: Intermediate
Instructor: Frank Ryan
Developer: Business Learning Inst
Area of Study: 8 Business Management and Organization
Level: Intermediate
Instructor: Frank Ryan
Developer: Business Learning Institute
Area of Study: 8 Business Management and Organization
9
upcoming CPE
Registration
September
15
WEBCAST: FASB Review for Business & Industry
16 Payroll Taxes and 1099 Issues (Fargo)
17
Form 1041: Income Tax of Estates & Trusts (Fargo)
18
Drive Your Competitive Edge with Audit Quality (Fargo)
20-22 Annual Convention (Fargo)
28
WEBCAST: Internal Control Best Practices for Small and Medium-Sized Entities
Fill out your contact information
October
Telephone
6
8
9
19
23
27
28
29
30
WEBCAST: Form 990: A Comprehensive Approach
Challenges for the CFO/Controller (Bismarck)
Current Economic and Financial Conditions (Bis)
WEBCAST: Financial Statement Analysis
WEBCAST: Adv Auditing of HUD-Assisted Projects
WEBCAST: Multistate Income Tax
WEBCAST: Statement of Cash Flows
Oil and Gas Taxation – Nuts & Bolts (Bismarck)
Oil and Gas Taxation: Adv Issues/Update (Bismarck)
Name
Company
Address
City/State/Zip
Email
List the events you would like to attend
Title or Acronym
Date
Price
November
3
Annual Update for Accountants & Auditors (Bismarck)
4
Construction Contractors Advanced Issues (Bismarck)
9-10 Technology Conference (Fargo)
12
Not-for-Profit Financial Reporting (Fargo)
13
Performing Single Audits in 2015 and Beyond (Fargo)
17-18 Tax Practitioner Institute (Fargo)
19- 20 Tax Practitioner Institute (Mandan)
December
3
3
3
3
4
4
4
4
7
8
14
15
15
16
Adv Comp & Review Engagement Issues (Grand Forks)
Current Issues in A&A: Annual Update (Grand Forks)
S Corp, Partnership, and LLC Tax Update (GF)
Individual Income Tax Update (Grand Forks)
Statement of Cash Flows (Grand Forks)
Financial Statement Disclosures (Grand Forks)
Guide to Understanding Passive Activity Rules (GF)
Understanding Net Investment Income Tax (GF)
WEBCAST: GAAS: Comprehensive Review for Auditors
WEBCAST: Fundamentals for Performing a Single Audit Under the Uniform Guidance for Federal Awards
Tax Update: Individuals and Sole Proprietors (Minot)
Tax Update: Corps/Pass-Through Entities (Minot)
Identity Theft: Preventing, Detecting (Fargo)
Fraud Update: Top Ten Fraud Schemes (Fargo)
January
11 WEBCAST: Indiv Tax Returns for New Staff
12 WEBCAST: Tax Forms Boot Camp: LLCs, Partner
ships, and S Corporations
Materials
‰‰ $0 Electronic materials
(a link will be emailed five days prior to session)
‰‰ $25/course Printed Materials
(must be ordered 10 days in advance)
Please check all that apply
‰‰ NDCPAS Member
‰‰ AICPA Member
‰‰ CPE Learners Permit
‰‰ Other Society (list)
‰‰ Special Needs? Please attach a description
To Register
+
Mail to NDCPAS
2701 S Columbia Rd
Grand Forks ND
58201
7
Register on line at
ndcpas.org/cpe
'
Call
(877) 637-2727
Local 775-7111
Select Payment Method:
‰‰ Check (Payable to NDCPAS)
‰‰ Discover
Acct #
‰‰ Visa
Exp
‰‰ MasterCard
CVV#
Signature
10
ndcpas.org
2015 Tax Filing Season
Record Number of Returns and Unprecedented
Efforts to Protect ND Taxpayers
by Ryan Rauschenberger, Tax Commissioner
Even with the current slowdown in
oil activity, our state has a vibrant
economy and the highest ever population. As a result, you
likely see an increase in the level of activity all around you,
in restaurants, stores, hotels, and the amount of traffic on
the roads. For some of you this increase in activity has led
to growth in your business and led to additional demands at
your job or CPA practice. At the North Dakota Office of State
Tax Commissioner the 2015 tax season was the busiest ever.
Through the end of July, nearly 481,000 individual income
tax returns were processed, compared to 455,000 in 2014
-- an increase of nearly 6 % in just one year. In 2013 that
number was only 435,000, an increase of 45,000 returns,
over 10 % in the last two years. Taking a longer term look
at our statistics shows an even more drastic increase. From
calendar year 2010 to 2014, the number of original individual
income tax returns filed with the Office of State Tax Commissioner grew by nearly 117,000 returns, or 32 %.
The number of individual income tax refunds issued has
grown even faster than the number of returns. This is likely
due in part to the continual reduction in income tax rates
over the past several legislative sessions, which often results
in over-withholding or over-payment of estimated tax, and
additional refund claims. However, a growing concern at
the IRS and state tax agencies is the increasing incidence of
identity theft, resulting in fraudulently filed tax returns and
refund claims.
The IRS was able to stop or recover over $24 billion of that total,
or approximately 81% of the fraudulent claims.
At the North Dakota Office of State Tax Commissioner, we have
often used the speed with which returns are processed and refunds returned to taxpayers as one of the measures to determine
operational efficiency. However, during the 2015 tax season, a
growing concern over fraudulent refund claims prompted us to
change several business processes to ensure the protection of taxpayer information and identify fraudulent refund claims. Many
additional checks were implemented and thousands of returns
were reviewed manually in order to identify and stop fraudulent
returns. Staff were reallocated from other areas of the department and many staff worked significant overtime hours in order to
process returns and provide legitimate refund checks as quickly as
possible. However, our focus was on protecting taxpayer refunds
and safeguarding state revenues by being thorough and conducting a comprehensive forensic review of any return that was potentially fraudulent.
The result was thousands of additional work items for Office of
State Tax Commissioner staff and an unavoidable slow-down in
return processing. During this time we received many calls and
inquiries from taxpayers checking on the status of their refunds.
Once taxpayers understood the reason for the delay – to protect
their refund and preserve state tax dollars – they were very understanding.
During the 2015 tax season, many states reported identifying
a large percentage of returns as fraudulent. This is not a new
issue. The IRS estimated that during the 2013 filing season
alone, over 5 million federal tax returns were filed using stolen identities, claiming approximately $30 billion in refunds.
We will always work diligently to process returns quickly and
efficiently and get refunds back to taxpayers as expeditiously as
possible. However, the activity of computer hackers and thieves
will continue. So will our diligent efforts to protect taxpayer information and refunds. I hope you can help us convey the message
to taxpayers that future state income tax refunds may take a few
extra days due to efforts to identify fraudulent returns and ensure
refunds are available when a valid return is filed.
News from the IRS
Small Businesses Can Get IRS Penalty Relief for
Unfiled Retirement Plan Returns
Excise Tax on High Cost Employer-Sponsored
Healthcare Coverage
The IRS has issued Notice 2015-52, Section 4980I — Excise
Tax on High Cost Employer-Sponsored Health Coverage. The
tax is 40% of the cost of health coverage that exceeds predetermined threshold amounts. Cost of coverage includes the
total contributions paid by both the employer and employees,
but not cost-sharing amounts such as deductibles, coinsurance and copays when care is received.
For planning purposes, the thresholds for high-cost plans are
currently $10,200 for individual coverage, and $27,500 for
family coverage. These thresholds will be updated for 2018
when final regulations are issued and thereafter indexed for
inflation in future years. For pre-65 retirees and individuals
in high-risk professions, the threshold amounts are currently
$11,850 for individual and $30,950 for family coverage
COLLEAGUES YOU CAN COUNT ON
Eligible small businesses that did not file certain retirement plan
returns are encouraged to take advantage of a low-cost penalty relief program enabling them to quickly come back into compliance.
Small businesses that fail to file required annual retirement plan
returns, usually Form 5500-EZ, can face stiff penalties — up to
$15,000 per return. However, by filing late returns under this program, eligible filers can avoid these penalties by paying only $500
for each return submitted, up to a maximum of $1,500 per plan.
Program applicants are encouraged to include multiple late returns in a single submission. Find the details on how to participate
in Revenue Procedure 2015-32 on IRS.gov. The program is generally open to small businesses with plans covering a 100 percent
owner or the partners in a business partnership, and the owner’s
or partner’s spouse (but no other participants), and certain foreign
plans. Those who have already been assessed a penalty for late
filings are not eligible. The DOL offers a similar relief program for
businesses with retirement plans that include employees known as
the Delinquent Filer Voluntary Compliance Program.
11
Classified Ads for
September 2015
North Dakota Practices for Sale: Bismarck CPA Practice,
gross $643K; Tax (59%), accounting (32%), payroll (5%), and
reviews (4%). Knowledgeable staff in place, seller flexible with
regard to transition. Southeast ND CPA Practice, gross $141K;
Quality client base, tax (75%), accounting (8%), audits/reviews (13%), other services (4%). For more information call
us at 800-397-0249. View listing details and register for free
email updates at www.AccountingPracticeSales.com.
Thinking of Selling Your Practice?
Accounting Practice Sales is the leading marketer of tax and
accounting practices in North America. We have a large pool
of buyers, looking for practices to purchase. We also have the
experience to help you find the right fit for your firm, negotiate
the best price and terms and get the deal done. We welcome
the opportunity to talk to you about our risk-free and confidential services. For more information call Trent Holmes with
the APS Holmes Group at 1-800-397-0249 or email trent@
accountingpracticesales.com.
Practice for Sale - Park Rapids
Live and work in the nation’s vacation land, Park Rapids, MN.
Approximately 80 to 85% of revenue is income tax preparation and planning for individuals, business and estates. CPA
owner would like to work tax season and as needed balance
of year for a few years. Branch office in Mahnomen, MN.
Park Rapids office building available for sale or lease. Seller
financing preferred. Contact John Lee at 218-732-8946 or at
PO Box 387, Park Rapids MN 56470.
Accountant / Tax Preparer - Bottineau
Chad R. Strand CPA, P.C., located in Bottineau, ND, is seeking
to add an Accountant/Tax Preparer. This FT position requires
an accounting degree and 2+ years professional tax prep
experience. Individual will be responsible for the planning
and preparation of individual and business tax returns as well
as various bookkeeping, payroll and accounting duties. Top
salary & benefits package includes sign-on bonus and relocation expense allowance. Opportunity for ownership interest
someday for the right person. Resumes should be sent to
[email protected].
CPA / Partnership Potential - Bismarck
Bismarck, ND firm seeking experienced CPA for long term
employment with partnership potential. Prefer some experience in non profit accounting / auditing and technology. Firm
currently has 4 support staff and 3 CPAs. For additional information check out our web site: www.capacct.com. Submit your
resume along with salary requirements via email to carl@
capacct.com. Expected salary range of $50,000 to $70,000.
Small Tax & Bookkeeping Service - SE ND
Over 15 years in business. Would consider working with new
owner for a seamless transition of clientele. Contact Society if
interested. All inquiries will be kept confidential.
12
YOUR LAST DECISION
IS THE BIGGEST.
When it is time to transition out of your practice you want to
do it right. We are the largest facilitator in North America for
selling accounting and tax practices. We provide a free estimate of
your firm’s value, market extensively, assist in negotiations and
find you the right situation.
Contact us today so your last decision will be your absolute best.
The Holmes Group
Trent Holmes
Toll Free: 800.397.0249
AccountingPracticeSales.com
[email protected]
CPA - Fargo
Anderson & Fercho, PLLC, a local public accounting firm, is
seeking a full-time accountant. CPA License and a minimum of
three years of public accounting experience preferred. Salary
based on experience. Send resume to [email protected].
CPA Firm for Sale
Tax and accounting practice for sale in Southeast North Dakota. Great hunting and fishing. Annual revenues of $141,000
at this long term firm. For information call the Society Office.
Audit Senior/Supervisor
Widmer Roel, a regional CPA firm, has a full-time opening
for an Audit Senior/Supervisor in our Fargo. The position requires a CPA certificate, bachelor’s degree in accounting and
3+ years of experience, preferably in public accounting. We
offer a competitive compensation package, as well as medical, dental, disability and life insurance, 401-k plan, flexible
spending accounts, and summer hours. Salary is dependent
upon experience. To apply, visit our website, www.widmerroelcpa.com/careers to complete an on-line application.
ndcpas.org
Back to school
time is 529 time!
Encourage clients to sa
ve for the
future with College SAVE
College SAVE: Picture the Future
The tax-advantaged, flexible way for your clients to invest today
in tomorrow’s dreams.
Visit collegesave4u.com/CPA
or call 1.866.SAVE.529.
For more information about North Dakota’s College SAVE Plan (College SAVE), call
1-866-SAVE-529 (1-866-728-3529) or visit www.collegesaves4u.com to obtain a Plan Disclosure
Statement. Investment objectives, risks, charges, expenses, and other important information
are included in the Plan Disclosure Statement; read and consider it carefully before investing.
Ascensus Broker Dealer Services, Inc. (ABD) is Distributor of the Plan.
The College SAVE Plan (College SAVE) is a 529 plan established by the State of North Dakota. Bank of North Dakota
(Bank) acts as trustee of College SAVE Trust, a North Dakota Trust, and is responsible for administering College
SAVE Trust and College SAVE. ABD, the Plan Manager, and its affiliates, have overall responsibility for the day-to-day
operations of College SAVE, including recordkeeping and marketing. The Vanguard Group, Inc. (Vanguard) provides
underlying investments for the Plan. College SAVE’s Portfolios, although they invest in mutual funds, are not mutual
funds. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.
Investment returns are not guaranteed, and you could lose money by investing in College SAVE. Participants assume
all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state
UIIIND MKT8934C 0815
tax consequences.
COLLEAGUES YOU CAN COUNT ON
13
Ethics Corner
The Case of Quint’s Quirk
By Charles Selcer, CPA, MBA
Quint Tuplitz CPA is the controller of a law firm, Smoak & Meares.
Receipts have been slow causing a
cash crunch. The managing partner told Quint to delay the timely
remittance of withheld payroll taxes to ease the
pain. She’s the boss, so Quint did what she said.
Q. Any ethical problems here?
A. Yes. The new Code has a separate section for
members in business. Section 2.400.030 discusses
failure to file a return or pay a liability. As controller, Quint has the authority in his organization to
pay the taxes on time. By not doing so he may be
considered to have committed an act discreditable
to the profession.
When it comes to
Choice
99.6%
DOCTORS
Nearly every one in North Dakota
NORTH DAKOTANS
ARE COVERED
10
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Rural and urban, across the state
LOCATIONS
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www.BCBSND.com
14
ndcpas.org
Official Notice
2015 Annual meeting & election
The NDCPAS annual meeting will be Monday, September 21, 2015 at 7:30 am, at the Fargo Holiday Inn. The
meeting will include election of directors, officers, a Foundation trustee, and 3 nominees for a July 2016 position on the Accountancy Board, plus comments from the current and new presidents. Each member has one
vote at the meeting, except student members and those with dues in arrears. Cumulative voting is not allowed.
A person may serve as proxy for only one other member. A majority of the members entitled to vote and present (in person or by proxy) shall carry any motion unless otherwise provided in the Articles or Bylaws. To vote
by proxy, complete and sign the proxy form below and send to your proxy (a member who will be attending).
Feel free to specify voting choices to the proxy.
Proxy Ballot
I, _______________, CPA cert. #______, hereby appoint _____________________as my proxy
to vote on any and all matters which may come to a vote at the 2015 NDCPAS Annual Meeting.
Signature:____________________ Date:__________Name:__________________________
Voting instructions (optional):
THE NOMINEES
The following slate will be proposed at the annual meeting. Voting members present may also nominate members.
Society President (1 to be elected)
Tracee Buethner, Widmer Roel PC, Fargo
Tracee is a current member of the Board of Directors, and has
served in the Secretary role. She has worked with the Membership
and Peer Review groups, and been involved with Convention and
mentoring.
Society President-elect (1 to be elected)
Marci Schorsch, Basin Electric, Bismarck
Marci is a current Board member, now serving as the Secretary.
She has been involved with the Members in Industry Committee,
as well as the Annual Convention.
Society Director (3 to be elected) [3 year terms]
Steve Britsch, Britsch & Associates PC, Devils Lake
Steve is a current member of the Society Board. He has been
involved with the Foundation, as well as the Tax and PR Committees, and involved with Legislation.
Robert Dosch, UND Accounting, Grand Forks
Robert has worked in the areas of Young Professionals and CPE.
He has also served on two task force groups.
Dave Glennon, Eide Bailly LLP, Fargo
Dave is a current member of the Board. He’s worked with the PR
and Nominations teams, Convention and as liaison to the Peer
Review group.
Society Director (1 to be elected) [2 year term]
Society Secretary [1 to be elected, for a 2-year term]
Clarence Sitter, T.R. Medora Foundation, Medora
Clarence is a current board member. He has also chaired the Convention, and a Convention task force, been liaison to the Young
Professionals Group and to CPE.
NDCPAS Foundation Trustee (1 to be elected) [3 year term]
DeeAnn Ellingson, UND Accounting, Grand Forks
DeeAnn is currently a Foundation trustee. She has also served on
the Society Industry Committee, and helped with Convention and
a Scholarship Task Force.
State Board Nominees (3 to be selected & submitted to the
Governor’s Office) [5 year term, starting July 2016]
Laura Adair, Ritter Adair, Bismarck
Laura has been Chair of the Taxation Committee, as well as its
representative to the CPE team. She has also been involved with
the Society Convention.
Darlys Anderson, Darlys Anderson CPA, Fargo
Darlys is a current trustee of the NDCPAS Foundation.
She has been Chair of the Tax Committee, involved with the CPE
team, and has been a volunteer with Convention and mentoring.
Patrick Kautzman, Eide Bailly LLP, Fargo
Patrick is a recent Society president. He was also co-chair of Convention, and worked in the areas of Membership, Nominations
and Mentoring, and also with a Scholarship Task Force.
Brittany Dunn, Eide Bailly LLP, Fargo
Brittany has served as chair of the Young Professionals Group,
and has been involved with Convention, the Membership team,
and a scholarship task force.
COLLEAGUES YOU CAN COUNT ON
15
Dakota CPA is published bimonthly, by the North
Dakota CPA Society.
DIRECTORS
John Mongeon President
Tracee Buethner, President-elect
Marci Schorsch, Secretary
Clarence Sitter
Taryce Malnaa
Steve Britsch
Dianna Kindseth
Dave Glennon
Terri Clark
Lyndsey Roemmich
Michelle Schumacher
Patrick Kautzman, Past President
3 Year AICPA Council Member, Mike Schmitz
Jim Abbott, Executive Director
Sherre Sattler, CPE and Communications Director
Mandy Harlow, Licensing/Peer Review Coordinator
Connie Holte, Administrative Assistant
Aja Steinfeldt, Bookkeeper
North Dakota CPA Society
2701 South Columbia Road, Ste D
Grand Forks, ND 58201
Toll Free: 877-637-2727
Local: 701-775-7100
Fax: 701-775-7430
Email: [email protected]
Ste D
PRSRT STD
U.S. Postage Paid
Fargo, ND
Permit #1159