November 2012 Newsletter

CALIFORNIA SOCIETY OF TAX CONSULTANTS
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Newsletter of the Inland Empire Chapter of the
California Society of Tax Consultants. Published monthly May through December.
Editor: Hilde Morrow
November 2012
PRESIDENT ’S MESSAGE
W
ow – what can I say other than we had a great time at
our 46th anniversary celebration in October. There was
that festive feeling in the air – it wasn’t Fall though since the
temperatures were in the high 90’s . We were honored by our
special guests Frank Alvarez, Pauline Doyle, Mamie Erby, Rich
ard Irwin, Liz Larson and Adele Stagner. They each said a few
words about what they enjoyed being members in the past of
ISTC or CSTC – it was very enlightening to all of us.
Thanks to Don Klotz suggestion, we had a vacant chair with a flowering plant behind
the podium in memory of all those tax preparers we have lost in the last 46 years,
the latest one being our dear Past President Cookie Diamond.
We are looking forward to our November 14, 2012 meeting (remember it will be
the second Wednesday rather than the third which is right before Thanksgiving).
The speaker will be our own Ruth Godfrey, EA, and her topic is Married Filing Sepa
rate. You will learn things you never even thought of before when you file some
one MFS. Plan to be there.
Inside this issue:
President’s Message
1,
Dinner Meeting Info.
2
Speaker Information
3
Misc member info
Member Anniversaries
2012Board, 2013 Slate
Our January 5, 2013 workshop will have Claudia Stanley and Vicki Mulak as our
speakers – they are both top notch professionals in the tax field – “treat” yourself to
this one.
We have received an invitation from the Double Tree Hotel to a Client Appreciation
Lunch and we plan to have representation in attendance.
Society Board meeting will be November 19, and yours truly plans to attend.
5.,6, 7
8,9
From the Tax Front
Member Benefits, Pics 46th
Society Calendar
10,11
Officers
President
Tax Bridge is scheduled for December 67, 2012 at the Crown Plaza in Anaheim –
check out the CSTC website for more information.
4
Calendar
Priscilla Lerma
909-983-3716
1st VP
Tina Garcia
909-626-7706
2nd VP
Clint Young
951-682-4848
Secretary
Janice Coleman
909-941-7939
Treasurer
Ann Mills
909-983-3716
Past President Barbara Feliciano
909-896-1452
Nominations and elections will take place at our November meeting, and no one
has stepped up to the plate yet for the position of President – I’m keeping my fin
gers crossed that someone will. This is a fantastic chapter to lead in 2013 – really
think about this.
Directors
Membership
Hilde Morrow
909-624-9366
Asst Treasurer Randi Stern
909-597-2721
In closing, I wish you a Happy Halloween and many blessings of the Thanksgiving
season. See you on the 14th –
Respectfully submitted,
Newsletter Editor Hilde Morrow
[email protected]
909 -624-9366
Volunteer
Priscilla Lerma, EA, President
[email protected]
Photographer Annette Finnerty
PAGE 2
THE INLAND EMPIRE TAX GAZETTE
November 2012 DINNER MEETING
DoubleTree Hotel Claremont
== MENU ==
555 West Foothill Blvd, Claremont, CA 91711
House Salad with Ranch and Italian dressings
Fresh Rolls and Butter
Phone: 909.626.2411
Beef Bourguignon
Wednesday, November 14, 2012
with burgundy wine sauce
Garlic Mashed Potatoes
Fresh Steamed Vegetables
Dinner at 6:00 pm —– Sign in at 5:30 pm
For Reservations and Menu Preference:
OR
Vegetarian Lasagna
Phone 18888539670 on or before Tuesday,
November 10, 2012, 11:59 pm
Lasagna Noodles layered with Mozzarella Cheese,
Alfredo Sauce, & Succulent Layers of
Vegetables
Garlic Mashed Potatoes
Fresh Steamed Vegetables
MEETING COST (dinner and 2 hours of education)
$35 for members on the permanent dinner list & members with timely
reservations.
$50 for nonmembers, walkins and late registrations.
Coffee, Ice Tea & Chef’s Choice
House Dessert
Cancellation Policy: If you are on the permanent dinner list or have made a reservation and are unable to attend, you
must cancel your reservation by Saturday, November 10, 2012, 11:59 pm, otherwise you will be billed for the dinner.
Note to all members: Please check the permanent dinner list below for accuracy. Are you on the list and should
not be, or should you be on the list and your name does not appear?
If you wish to be added to or deleted from the permanent dinner list please inform Ann Mills, 9099833716, Email:
[email protected]. Alternatively, you may call our message phone 18888539670 and leave a message.
O
ur next Board Meeting will be on November 14, 2012 at 4:00 pm. All members are welcome to attend. The
meeting will be at the DoubleTree Hotel in the same room as our dinner meeting.
PERMANENT DINNER LIST*
Emma Barrows
Marcia Berry
Russel Bisgaard
Phillip Brown
Mary Carlos
Ted Caruthers III
Corina Christiansen
Janice Coleman
Cookie Diamond
Richard Doyle
David Eastis
T
Dotte Egbert
Barbara Feliciano
Annette Finnerty
Elvia Flores
Wayne Franck
Tina Garcia
Rosemary Genovese
Ruth Godfrey
Wayne Hardesty
Sharon Hardy
Eric Johnson
Don Klotz
Priscilla Lerma
Leonor Maher
Francisco Medrano
Renee McClellan
Ann Mills
Hilde Morrow
J.M. Olchawa
Michael Olden
Robert Rego
Michael Richeson
Janine Rodriguez
Randi Stern
Margarita Varela
Jessica Vasquez
Mark Wilson
Norman Wing
Dee Wonders
Clint Young
*current to October
2012
he California Society of Tax Consultants was born in Southern California in 1966. Today we have 16 Chapters in
California. CSTC’s emphasis on highquality education and its atmosphere of friendly sharing make it an ideal
organization for the tax professional.
THE INLAND EMPIRE TAX GAZETTE
PAGE 3
N ov e m b e r 2 0 1 2 t o p i c & S P E A K E R I N F O R M AT I O N
MARRIED FILING SEPARATE
CTEC # 1000-CE-3548—IRS Program # 18QC1-T-00029-12-I
2 hours Federal Tax Law Credit
T
his is a class about people that the IRS considers Married! (As opposed to the people that the state recog
nizes as Married). Some of the things we’ll discuss: Why do I want to file separately? Is it a good idea to file
separately? What about community property? Will my pre/post nuptial agreement work? What breaks a pre/
postnuptial? What is separate property in a community property state? What do I lose by filing separately?
Speaker: Ruth Godfrey, EA
R
uth Godfrey, EA has been an Enrolled Agent since 1984 and has a tax practice in Upland, CA
serving both individuals and small businesses.
Prior to becoming an EA, Ruth was a licensed real estate agent and she has kept her contacts with
the real estate market. During this everchanging financial period Ruth has kept on top of the
most recent developments in the foreclosure world. Knowledgeable and entertaining, she is a
frequent speaker to professionals throughout California.
Ruth is a Past President of the California Society of Tax Consultants, Inc and the Inland Empire
CSTC Chapter as well as a PastChairman of the California Tax Education Council (CTEC).
This presentation has been designed to meet the requirements of the Director of Practice of the Internal Revenue Service; the California State Board of Accountancy; and the California
Tax Education Council including code 31 of Federal Regulations 10.6(g). This does not constitute an endorsement by these groups. A listing of additional requirements to renew taxpreparer registration may be obtained by contacting CTEC at PO Box 2890, Sacramento, CA 95812-2890, or phone CTEC at 1-877-850-2832, or on the Internet at www.ctec.org.
This is our 2012 Meeting Location
.
CSTC MISSION STATEMENT
To promote professionalism by providing quality educational events for tax professionals, creating and encouraging
networking opportunities for members, and advocating professional standards and positions within the tax industry.
PAGE 4
THE INLAND EMPIRE TAX GAZETTE
2012 CSTC INLAND EMPIRE CHAPTER MEETING CALENDAR
All our meetings are on the third Wednesday of the month, except the
September and November meetings, which will be on the second Wednesday of the month.
Date
Topic
Speakers
May 16, 2012
Tax Credits
David A Eastis, CRTP
June 20, 2012
Social Security
Robert “Bob” Hartnett, Social Security
July 18, 2012
Aug 15, 2012
“Basis Bingo”
Rodney Couts, EA
“Tax Jeopardy “
Lisa Ihm, EA
Joint Meeting with the San Gabriel Valley Chapter
The new Sch D and Form 8949
Steve Honeyman, CPA
along with an investment update
46th Anniversary Celebration
CA Update—1 hr CTEC credit *
Lynn Freer, EA, Spidell
Married Filing Separate
Ruth Godfrey, EA
Sept 12, 2012
(2nd Wednesday)
Oct 17, 2012
Nov 14, 2012
(2nd Wednesday)
Dec 19, 2012
2013 Board Elections
Living Trust
J. Benjamin Selters, III, Esq.
Annual Meeting; Installation of 2013 Board
Topics are tentative and subject to change without prior notice.
May through November: 2 hours education credit—December: 1 hour education credit.
* 1 hour CA Update CTEC credit, there will be no Federal EA or RTRP credit granted for this presentation.
Annual Update and Review Workshop
January 5, 2013 8 hours CPE credit
Where: DoubleTree Hotel, Claremont
Federal Update: Claudia Stanley, CPA, EA
California Update: Vicki Mulak, EA
Topics and speakers are tentative and subject to change without prior notice.
Save the date! Mark your calendar!
Y
our membership renewal was due on July 1, 2012. A $15 late fee will be charged for all memberships not re
newed by August 15, 2012. In addition, members who have not renewed their membership will be charged
the nonmember price to attend our meetings. Please renew your membership ASAP.
PAGE 5
THE INLAND EMPIRE TAX GAZETTE
Registered Tax Return Preparer Test
D
Frank Alvarez
and
Hilde Morrow
o we have other members who have
taken and passed the RTRP test???
So far we only heard from 5 of our members,
including myself, that they have taken the test.
We are wondering if some of you took the test
and we did not find out about it, or are you still
thinking about it? This is not going away and sooner or later you will
have to do it.
Passed the RTRP test!
Here is what I did. I made my appointment for the test. With the
date in place I had a deadline to be ready by – this put on some
pressure and made me focus. I studied every day for about 3 weeks. I used an exam review book which had been
issued to me by my employer. I also signed up for a RTRP Exam Prep WBT – all this consisted of was tests and quiz
zes. There was a pretest to take to start with. By looking at the results of this test I knew exactly what to focus on.
I didn’t have to waste time on things I already knew. I read the entire book (about 500 pages) it was a good review
for some of the things I once knew, but had forgotten about and I learned some things I never knew. I took lots of
tests on the WBT. One could either take a test with 120 questions which covered all the domains (the areas the IRS
tests on) or pick one of the areas. If a question was answered wrong feedback was provided.
I took the test last Wednesday, October 31, 2012 at the Rancho Cucamonga Prometric test center and passed. Now
all I have to do is wait for the Registered Return Preparer certificate to arrive in the mail, which will be in 4 to 5
weeks. I am really happy this is all behind me and I am glad to be able to enjoy the upcoming holidays without
thinking about having to take a test.
I hope sharing with you what I did, will help you decide to go ahead sign up, study and take the test. There is noth
ing to be scared about, if you are well prepared you will pass!
In closing I would like to ask all of you again to please let us know ([email protected]) if you took and
passed the test so we can properly recognize your achievement.
Respectfully submitted,
Hilde
Hilde Morrow, Membership Director/Newsletter Editor
[email protected], 909.624.9366
O
ur long time member and
friend, Cookie Diamond,
passed away on October 6, 2012.
Cookie was a board member for
many years and a Past President
of our chapter. Several of our
board members attended the
funeral.
We will all miss her!
Daily Bulletin—October 9, 2012
THE INLAND EMPIRE TAX GAZETTE
PAGE 6
November 2012
Thank you for your loyalty to our Chapter!
PICTURES OF THE MEMBERS LISTED BELOW
WERE NOT AVAILABLE AT PRESS TIME!
Member
Emma Barrows
Mary Carlos
Elvia Flores
Tina Garcia
35 years
35 years
1 year
2 years
S
Noel De Trinidad
30 years
Jimmy Kamio
13 years
Patricia Kamio
13 years
George Phillips
15 years
P
hari Hardy was the winner of
our September wear your
badge drawing.
She received a $15 Staples gift
R
enee McClellan was the winner of our
October wear your badge drawing.
Anniversary
lease help us welcome our
newest member John Doran
of Apple Valley.
John has been a member of the Hi
Desert Chapter since August 1999. He transferred
to our chapter in October.
We are looking forward to meeting him soon!
She received a $15 Staples gift card.
CLASSIFIED ADS
T
here is no charge to members to advertise po
sitions available in their practice, equipment
for sale, or similar subjects. Members looking for a
new employer may also advertise.
D
o you prefer not to handle Audits
and CP 2000s for your clients?
Our long time member – Don Klotz, EA –
is seeking referrals for audit representa
tion from other firms or tax preparers.
Don will handle Personal Income Tax Au
dits as well as Sales Tax Audits. He will
also answer and handle CP 2000s.
For nonmembers and for promotional advertising,
there is a $15 charge for each advertisement in the
newsletter, limited to businesscard size, subject to
available space and the discretion of the Chapter
Board. Advertising does not constitute endorsement Don has been an Enrolled Agent since 1990 and a tax pre
by the Inland Empire Chapter of the California Soci parer for 37 years.
ety of Tax Consultants.
Phone: 909.717.3755
Please contact Hilde Morrow if you would like to
Email: [email protected]
place an ad. [email protected]
THE INLAND EMPIRE TAX GAZETTE
PAGE 7
2012 OFFICERS AND DIRECTORS
The term of office is one year, unless otherwise stated
President
Priscilla Lerma
Serving 2nd year of a 2 year term
Director Membership
First Vice President
& Newsletter Editor
Tina Garcia
Hilde Morrow
Second Vice President
Director—Asst. Treasurer
Clint Young
Randi Stern
Past President
Treasurer (2 year term)
Ann Mills
Not an elected position
Secretary
Janice Coleman
O
Barbara Feliciano
NOTE: The Member at Large position
was eliminated at the October 2011
meeting with board and membership
approval.
Slate of 2013 Officers and Directors
ur 2013 Board of Directors will be elected at the November 2012 Meeting. Installation of the Board will take
place at the December 2012 meeting. Barbara Feliciano, current Past President, has submitted the following
candidates:
President (2 year term)
Open
First Vice President
Tina Garcia
Second Vice President
Clint Young
Secretary
Janice Coleman
Treasurer (2 year term)
Ann Mills (Serving 2nd year of a 2 year term)
Director— Membership & Newsletter Editor
Hilde Morrow
Director – Assistant Treasurer
Ann Esquivel
Past President
Priscilla Lerma (Not an elected position. The outgoing
President will serve as Past President.
lease contact Barbara Feliciano—email: [email protected] or phone: 909.896.1452—if you would like to
serve on the board, or if you would like to nominate a member to serve on the board. The nominee’s permis
sion is required. The term of office is one year, unless otherwise stated.
P
THE INLAND EMPIRE TAX GAZETTE
PAGE 8
NEWS FROM THE TAX FRONT
IR201279 —October 22, 2012
PTIN Renewal Period Underway for All Tax Professionals
Registered Tax Return Preparer Candidates Urged to Schedule Tests
WASHINGTON — The Internal Revenue Service today reminded the nation’s 730,000 federal tax return preparers
that they must renew their Preparer Tax Identification Numbers (PTINs) for 2013. Also, preparers who have a com
petency test requirement should take the time now to schedule an appointment for the exam.
Anyone who is a paid federal tax return preparer must register with the IRS and have a PTIN, as must all Enrolled
Agents. Additionally, some return preparers have new continuing education and competency test requirements.
“We ask that you renew your PTIN as soon as possible to avoid a lastminute rush. It’s easy to let this slip as the
holiday season approaches,” said Carol A. Campbell, Director, IRS Return Preparer Office. “And, if you have a test
ing requirement and haven’t yet scheduled an appointment, please do so at the same time.”
The online PTIN renewal process takes about 15 minutes. Renewed PTINs will be valid for calendar year 2013. The
IRS also has significantly upgraded the PTIN system to make it easier to use and more intuitive.
Preparers who have forgotten their login information, password, or email address can use online tools to resolve
these issues. Get started at www.irs.gov/ptin.
New continuing education and testing requirements also apply to approximately 340,000 preparers who previously
had no such requirements. These preparers must certify when renewing their PTIN for 2013 that they have com
pleted the 15hour requirement for continuing education in 2012. Learn more about the 2012 continuing educa
tion requirement at www.irs.gov/taxpros/ce.
Additionally, preparers with a testing requirement should schedule their tests, whether it is the Registered Tax Re
turn Preparer (RTRP) test or the more extensive Special Enrollment Exam (SEE) for those interested in becoming
Enrolled Agents. Compare the tests and credentials at www.irs.gov/taxpros/tests. The RTRP test can be scheduled
online through the PTIN system by selecting “next steps and additional requirements” from the PTIN account Main
Menu. The SEE can be scheduled online at www.prometric.com/see. Preparers who wait until next year to sched
ule a test may find it difficult to arrange the test at a convenient date, time and location.
Enrolled Agents, Certified Public Accountants and attorneys are exempt from the new continuing education re
quirements because they already pass more extensive tests and take continuing education courses to satisfy their
professional credentials.
For more information about requirements for federal tax professionals, go to www.irs.gov/forTaxPros.
E-News 2012-44 —-11/1/2012
Preparers Suspected of Filing Inaccurate EITC Claims to Receive Warning Letters
During October and November 2012, the IRS is sending letters to preparers suspected of filing
inaccurate EITC claims. The letters pinpoint the primary issues identified on the returns, discuss
the consequences of filing inaccurate claims for EITC and inform the preparer IRS will continue to
monitor the types of claims for EITC they file. Check out EITC Central for more information on IRS
compliance efforts and how to avoid penalties.
PAGE 9
THE INLAND EMPIRE TAX GAZETTE
NEWS FROM THE TAX FRONT
In 2013, Various Tax Benefits Increase Due to Inflation Adjustments
WASHINGTON — For tax year 2013, the Internal Revenue Service announced today annual inflation adjustments for
more than two dozen tax provisions.
x The annual exclusion for gifts rises to $14,000 for 2013, up from $13,000 for 2012.
x The amount used to reduce the net unearned income reported on a child’s tax return subject to the “kiddie tax,” is
$1,000, up from $950 for 2012.
x The foreign earned income exclusion rises to $97,600, up from $95,100 in 2012.
Details on these inflation adjustments and others such as the lowincome housing credit, the dollar limits for high
deductible health plans and other amounts can be found in Revenue Procedure 201241, which will be published in
Internal Revenue Bulletin 201245 on Nov. 5, 2012.
October 2012
Don't Fall for Phony IRS Websites
The IRS warns consumers about a new tax scam that uses a website that mimics the IRS eServices online registraon
page.
The actual IRS eServices page offers webbased products for tax preparers, not the general public. The phony web
page looks almost identical to the real one.
The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and
nancial informaon that may be used to steal the vicm’s money or identy.
The address of the official IRS website is www.irs.gov. Don’t be misled by sites claiming to be the IRS but ending in
.com, .net, .org or other designations instead of .gov.
The IRS website has information that can help you protect yourself from tax scams of all kinds. Search the site using the
term: phishing.
ENews —November 2, 2012
IRS Announces Qualified Disaster Treatment of Payments to Victims of Hurricane Sandy
The Internal Revenue Service today alerted employers and other taxpayers that because Hurricane Sandy is desig
nated as a qualified disaster for federal tax purposes, qualified disaster relief payments made to individuals by their
employer or any person can be excluded from those individuals’ taxable income.
Qualified disaster relief payments include amounts to cover necessary personal, family, living or funeral expenses
that were not covered by insurance. They also include expenses to repair or rehabilitate personal residences or repair
or replace the contents to the extent that they were not covered by insurance. Again, these payments would not be
included in the individual recipient’s gross income.
The IRS also announced that the designation of Hurricane Sandy as a qualified disaster means that employer
sponsored private foundations may provide disaster relief to employeevictims in areas affected by the hurricane
without affecting their taxexempt status. Like all charitable organizations, employersponsored private foundations
should follow the guidance in Publication 3833, Disaster Relief: Providing Assistance Through Charitable Organiza
tions, in providing assistance to employees or their family members affected by Hurricane Sandy.
THE INLAND EMPIRE TAX GAZETTE
PAGE 10
MEMBER BENEFITS
F
orty two of our members have attended enough meetings to receive a free book. One member
has attended 4 meetings and two members have attended 3 meetings.
See CSTC Inland Empire Chapter Benefits below for eligibility details. Please note we need a filled
out book order form, even if you qualify for a free book. The final due date for submitting your order is
November 14, 2012. The book order form is attached separately for your convenience.
FREE BOOKS
Bert Aquas, Emma Barrows, Marcia Berry, Russel Bisgaard, Phillip Brown, Mary Carlos,
Corina Christiansen, Janice Coleman, Cookie Diamond, Richard Doyle, David Eastis,
Dotte Egbert, Ann Esquivel, Barbara Feliciano, Annette Finnerty, Elvia Flores, Wayne
Franck, Isabel Garcia, Rosemary Genoveve, Mary Gibson, Ruth Godfrey, Wayne
Hardesty, Sharon Hardy, Eric Johnson, Don Klotz, Priscilla Lerma, Leonor Maher, Renee
McClellan, Francisco Medrano, Ann Mills, Oscar Moreno, Hilde Morrow, J.M. Olchawa,
Michael Olden, Michael Richeson, Robert Rego, Randi Stern, Margarita Varela, Mark
Wilson, Norman Wing, Dee Wonders, Clint Young
Four Meetings attended
Jessica Vasquez
Three Meetings attended
Ted Caruthers, Theresa Franke, Janine Rodriguez
CSTC Inland Empire Chapter Benefits
x
x
x
x
x
x
x
A free Quickfinder or TheTaxBook for members who attend at least 5 of our educational dinner meetings
(December does not count), or 4 meetings and the January 2012 Workshop.
Members who prepay for their 2012 dinner meetings, will be able to save $70 off the total price. The prepay
cost for 7 meetings is $175. We will celebrate our 46th anniversary this year. In celebration of this event our
chapter will pay for the dinners for all our members, regardless if they prepaid or are paying as they go. The
deadline to prepay is May 16, 2012. No dinners will carry over to 2013 and there will be no refunds for missed
dinners.
Chance to win a $15 off dinner for wearing your badge to the meetings. Members who prepaid for all the meet
ings and win the badge drawing will receive a $15 Staples gift card.
Any member who signs up a new member gets a $15 off dinner the month after the person joins. The new
member will also get $15 off (this does not apply to prior members who join again).
A monthly free Newsletter.
Eight educational dinner meetings (2 hrs CPE) and one Saturday all day workshop
(8 hrs CPE).
Noncredit breakfast meetings during tax season provide a chance to network and get answers to difficult tax
questions from other tax professionals.
We are what we repeatedly do. Excellence, therefore, is not an act but a habit.
Aristotle
THE INLAND EMPIRE TAX
Page 11
1966
2012
F
rank Medrano was the lucky winner of
our grand prize donated by the
DoubleTree Hotel.
The prize consisted of a free night and
breakfast for two, as well as tickets to pi
ano, piano..
c/o Hilde Morrow
2058 N Mills Ave PMB 225
Claremont CA 91711
Address Service Requested
Educational Dinner Meeting:
November 14, 2012
Location: DoubleTree Hotel, Claremont
2012 SOCIETY CALENDAR
11/19/12
12/67
“2012 by 2012” (Society Benefit)
UPCOMING EVENTS
CSTC members in good standing
Society Board Meeting
will receive a $25 Society Education
Voucher for each new member they bring
into CSTC.
Tax Bridge to 2013
W
e now offer many online courses ranging from 1 to
8 CE hours. These classes are updated annually and
are reasonably priced. More classes will be added.
Go to: www.cstcsociety.org & click on the Education
Button.
CTEC CONTINUING EDUCATION REQUIREMENTS?
The address for the Society Office is:
12419 Lewis , Ste 106
Garden Grove, CA 92840
Phone: 714750CSTC (2782)
Fax: 7147502722
Twenty (20) hours of CTEC-approved continuing education (10
hours of Federal Tax Law, 3 hours Tax Updates, 2 hours Ethics
and 5 hours CA). This education must be taken from a CTEC approved curriculum provider and completed by October 31 of each
year. CSTC meetings and workshops are
approved curriculum providers.