121862 Nwsltr REV_2016.pdf · 2016-08-22 · Joe’s son, Matt, completed his 10,000 hour (over 5 years!) IBEW apprenticeship in November and is now a journeyman electri-cian. During

www.eacfo.com Keep What You ReapSM

E&A turns 20 years old on July 6, 2016! Watch for more info on festivities.

What’s New

1. Two new groups of non-profit clients have joined the E&A client family. Biome and Youth Learning Center; and PROMO/PROMO Fund, both contracted with E&A early this year for full, turn-key, outsourced, Controllership Services.

2. Three new additional attest engagements also arose. One was the first time audit of an employee retirement plan. Another engagement was a group of three, related non-profit organizations. Two needed formal reviews and all three needed tax com-pliance services. A third engagement was a property rehabilitation tax credit audit for a real estate redevelopment company.

3. A new client with companies in Germany, the Czech Republic, U.S., Ireland, and India brought the number of countries E&A’s clients have been in/from to 60. They were referred to E&A by their current CPA. An existing client, now working in Afghani-stan, brings the current count to 61, or 30% of the world’s countries. Similarly, other CPAs referred clients from U.K. and Ger-many since our last Navigator. New clients from Chile, Argentina, Australia, Egypt and elsewhere also joined E&A.

4. E&A teamed with a financial planning firm and an immigration attorney to work with an existing expatriate client on retire-ment strategies. In addition, an elite St. Louis money management organization and its tax services affiliate are expanding their relationships with E&A—particularly for expatriates.

5. In December, E&A won Acquisition International’s 2016 Global Accountancy Award for “Best Full Service Accounting Firm” for Missouri and the same organization named Joe as its “2015 CEO of the Year, Missouri”.

6. Tillman Private Equity Services, owned by Joe Bartek, is co-locating with E & A. Joe & his 3 employees occupy several of our offices. Tillman is a CPA firm specializing in advising private equity firms and is about a year old. Joe was with RSM McGladrey before this. E &A has a long history of working collaboratively with other CPAs and we’re pleased to welcome the “Tillman Gang.”

7. At the Missouri Society of Accountants’ request, Joe developed and presented a 2 hour, IRS-approved, continuing education session on non-profit tax reporting and compliance issues, and Form 990, to its St. Louis chapter.

8. You’ve probably noticed new credit card machines at stores. The machines are designed to cut down on fraud from counter-feit and stolen cards. (See page 4 for more information.)

9. Congress made many of the year-to-year and “extended” tax provisions permanent. The Section 179 expensing election and the R&D tax credit are among the most significant provision they addressed. Plus, this year marks the first year legally mar-ried, same-sex persons are allowed to file joint tax returns. However, medical marijuana is still NOT a deductible medical ex-pense, even if prescribed by a doctor. The IRS holds it violates “sound public policy” because its use is still illegal under Federal law.

10. Caitlin Bolinger and Kevin Moore joined E &A as tax season interns. Kevin has an MBA and is completing a Masters in Ac-counting at Fontbonne. He primarily worked on tax assignments. Caitlin is a junior, who is also from Fontbonne. She took on the role as scanner/assembler. When our payroll specialist, Christy Boraz, went on permanent medical disability, Caitlin per-formed so well as a back-up payroll specialist in her internship that she became the full time payroll specialist.

11. Six clients won $75 gift certificates to our client Twin Oak Wood Fired Fare for using the E&A portals. Returning user winners were Nancy Hayes, Jan Noser, and Michelle Harthill. New user winners were Erik Funk, Naila Farouky, and Freddy Baker. See, it really does pay to use your portal!!

12. Joe’s son, Matt, completed his 10,000 hour (over 5 years!) IBEW apprenticeship in November and is now a journeyman electri-cian. During his apprenticeship, he installed the IKEA store’s solar array—the largest solar energy project in Missouri.

(Continued on Page 3)

Volume 16, Issue 1 314-849-7555 Spring, 2016



What’s New

















What’s New















www.EACFO.com 1 ”Keep What You Reapsm”

What’s New Despite the best of intentions, serving our clients always seems to come in front of a more frequent Navigator publishing schedule. Lots of things continue to occur around The E&A CFO Group, though. Some of the more significant are:

After five months of dialogue and consternation, E&A’s own IRS audit (mentioned in the prior Navigator) concluded. E&A’s turn came up after 15 years and E&A prevailed on every contested issue and ended with “no tax due”.

We successfully eliminated a $6,850 penalty for a client whose prior accountant triggered IRS action. While actually less difficult, we also made an erroneous IRS notice assessing $169,000 in tax on a modest income client go away.

E&A added clients from/in Syria, the Cayman Islands, Taiwan, and Turkey. E&A now has served clients in/from 44

countries. That’s even more than the 41 U.S. states and territories where our clients file returns. Joe led another Missouri Society of CPAs roundtable and presented tax tips on KTVI-Fox 2 in the morning. Joe also

was appointed to the Technical Issues Group of the Accounting & Auditing Committee of the MSCPA. This group handles responding to proposed new accounting pronouncements on behalf of the Missouri Society of CPAs.

New clients include an interventional radiologist, bringing E&A’s medical services niche (our largest) to 19 clients.

We also added a multi-specialty law firm, a bankruptcy attorney, and a litigation attorney, expanding our legal services niche to 13 law firms in 15+ disciplines.

Other clients joining E&A include a start up technology business needing Rent-A-CFOsm services (see page 4), a Farmer’s Insurance agent, a member of the Cardinals Baseball organization, and a condominium owners’ association.

Alan Naes passed the CPA exam in tax season! His ambition and drive will serve him well. He began his permanent career at a much larger CPA firm in June. We wish Alan and Mary Ellen Dee (she left E&A in January) well.

Jeff Tank successfully completed his securities licensing exams. Now, while both Joe and Jeff are CPAs with

securities licenses, Jeff will be able to devote far more ongoing, proactive attention to those clients’ needs. E&A was named “Best in St. Louis” for CPAs for a 5th consecutive year by the U.S. Small Business Association and

is among a small group of first-ever 5-time winners. A client nominated E&A for St. Louis Small Business Monthly’s (SLSBM) 2011 Best in Customer Service Award; E&A received 3rd place in SLSBM’s 2009 Best Accounting Firms.

E&A enhanced its new payroll client promotion. Clients committing to one year of service receive their 1st month free

and the referral source receives a $40 gift certificate to any of three E&A clients: a restaurant, salon, or florist. Clients committing to two years receive the 1st quarter of processing free and the referral source gets $100 in gift certificates.

Health issues have loomed large since the last Navigator. Laurie Haller’s daughter, Stephanie, had successful open

heart surgery in November, 2011. Several clients lost either a key supporter, a spouse, or a child since then. And a long-time client is battling serious health issues at press-time. Please keep them all in your thoughts and prayers.

(continued on next page)

NAVIGATORSM

Volume 12, Issue 1 314-849-7555 Fall 2012


Protecting Yourself Personally 2

The prior Navigator addressed steps to take once your tax identity is compromised and a general discussion of risk. This article follows up with information about personal cybersecurity at home and work to help prevent problems. A separate article (page 5) addresses protecting your business. Steps to take personally include:

1. For sensitive websites (e.g. online banking), periodically check the applications’ account settings and security questions to en-sure your information hasn’t changed without your knowledge. It’s also wise to use these opportunities to change passwords.

2. When selecting passwords, balance convenience with security. Make passwords stronger by combining letters, numbers, and symbols. Avoid birthdays, children’s names, or other items easily discovered via other sources, such as Social Media (e.g., use a childhood street address or a childhood neighbor’s name.)

3. Use the most up-to-date anti-virus and anti-malware software. Make sure they auto-update at least weekly and do a full scan right after the updates. Use the latest operating system patches for Windows, iOS, Android, and others. For example, “Stage Fright” was a very dangerous malware affecting Android devices and it could only be fixed via a vendor’s patch.

Some other tried and true tips are:

Always type in Web addresses yourself. Do not use links included in emails.

If you’re suspicious about an email, call the sender (bank/brokerage/etc.) to verify they’re trying to reach you.

Don’t provide sensitive information (e.g. Social Security or account numbers) to anyone who called you asking to verify information. They should already have it. In one month alone, Joe received 4 fake IRS calls at home.

Avoid sharing sensitive information via email. If you must do so, break it into multiple emails.

Do not conduct financial transactions using an unsecured network. (i.e., at a Starbucks public Wi-Fi.)

Turn off the feature allowing devices (including your smartphone) to store passwords. Install “remote erase” software on your smart phone.

Don’t carry your Social Security card or any documents that include your Social Security number (SSN). Joe is old enough that his card says not to use the SSN as identification!!

Don’t give a business your SSN just because someone asks. Give it only when required and ask why they need it.

Monitor your financial information regularly, including your credit report. You can get a free report yearly at annualcreditreport.com and several financial services and credit card companies now offer free monitoring.

____________________________________________________________________________

Commerce Bank’s “Best Practices” for Corporate Banking

Commerce Bank mailed a brochure to its corporate customers about general data security, including some recommendations every business should consider:

Block social networking sites like Facebook, etc., on work PCs. They are common malware access points.

Always sign out of, and close, browsers when finished.

Require short “go to sleep” or “time out” times for computers and require passwords to “wake up” computers.

Do NOT save passwords in any applications.

Require good anti-virus/anti-spyware software (such as VIPRE) on all computers used for business, including home/personal devices (PC’s, smart phones, i-Pads, etc.) Often, businesses overlook the risk with remote devices.

Use email scanning security software.


Client Corner 3

Artist Windows and Bottlebrush Photography

In 2005, John and Ann Weaver and their adult son, Christopher launched two websites: Artistwindowsphotography.com and BottlebrushPhotography.com, to offer their high quality art work. Ten years later their businesses are still growing rapidly! The family owned businesses feature formal art work and photographic art. They offer stunning museum quality prints, paintings, and works on metal and acrylic glass suitable for all occasions. Their works are available for production, for showings, and for sale.

Ann and John each have 30 years of photographic experience, while Christopher has 20 years of experience. All three artists re-ceived formal training from National Geographic instructors and all have won jury-selected awards including first, second, and third place, and honorable mentions. Many have been displayed on the US Air Force’s website home page. John’s work is on permanent display at the National Geospatial Intelligence Agency in St. Louis, Missouri. All three artists are also university graduates with expe-rience in business, information technology, and the arts/theater.

Their photographic art work primarily presents their extensive international travel. In addition to Europe, recent images of America and Australia arising while living and traveling throughout both countries have been a driving influence. As international artists and photographers, they seek out diversity in life in its natural beauty. That includes landscapes, portraits, abstracts, architecture, rural frontiers, historical sites, oceans/beaches, wild life, and floral displays. However, John and Ann are careful to leave nothing but foot prints behind and leave the raw power of nature as untouched and pristine as possible.

The Weavers became E&A clients because their previous tax accountant told them four years in a row: “You work full-time and the IRS won’t recognize your business as legitimate.” That became the motivation to search for, in John’s words, “a real accounting firm.” It also was the day they hired the E&A CFO Group (E&A) as accountants for Artist Windows and Bottlebrush Photography. E&A has helped the Weavers and their businesses—both here in the U.S. and as they set up a permanent location in Australia.

Regarding the change to E&A, John further commented that in business you get what you pay for and sometimes you don’t know what you don’t know. After John and Ann made several phone calls to friends and business associates seeking referrals, the CEO of Energizer Corporation suggested the E&A CFO Group. John stated, “I knew we had the right accounting firm after a short talk over the phone while scheduling an appointment. We quickly realized during our first meeting with Joe and Diane that we had found the accounting firm we were looking for - one that brings business experience, philosophy, attitude, critical thinking, and trained tax knowledge of the US and international tax codes to the table. International taxes are very important for our business.”

So, if you would like to own some truly spectacular artwork, contact them at the websites above or let us know here at E&A. We’ll be pleased to put them in touch with you. We’ve added some of their work here at E&A.

_____________________________________________________________________________

What’s New (continued)

14. Joe’s oldest son, Ted, signed a contract to practice family medicine with SSM Healthcare on St. Mary’s Hospital’s campus in Clayton. He starts there in August shortly after concluding his Mercy Hospital residency. So, if you need a good doctor, consider using another Eckelkamp.

15. Joe’s third son, Mark, graduated from Maryville University’s nursing program in May, 2016. He begins working in Mercy Hospi-tal’s Emergency Department. So, as one Eckelkamp leaves Mercy, another one joins.

16. Joe’s daughter, Laura, led her Rhodes College field hockey team to the Southern Athletic Association’s (SAA) title and an NCAA Division III Sweet-16 appearance. She played every minute of every game, posted 7 shutouts, and led the SAA in goals-against-average and save percentage (goalies with at least 600 minutes ), all while also earning scholar athlete recognition.


Important Credit Card Changes 4

Enhancing credit card payment security is more important than ever to everyone. For this reason, since October 15, 2015, Master-card, Visa, Discover, and American Express require merchants to use “chip card” technology (EMV) or assume greater risk for fraud. U.S. Card issuers previously resisted the change because traditional magnetic stripe cards cost banks about $.25, while a chip card costs $1.25 to $2.50. Merchants had resisted because it required them to buy new equipment.

The new chip cards use stronger authentication processes because credit cards with just a magnetic stripe can be copied relatively easily. Merchants whose terminals don’t use the chip now assume much more liability for fraud. However, even after embedded EMV chips are used, a magnetic strip remains for compatibility with older machines at merchants that don’t update their readers. EMV cards don’t prevent security breaches like those at Target or Schnuck’s, but EMV chips use cryptography and other security features to limit the value of stolen data.

American Express has used this technology for many years because it’s common in Europe. However, most U.S. cards are only im-plementing it now. Significant liability for counterfeit card fraud shifts to merchants not using the chip technology, as we ll as to banks for some lost, stolen, and never received card fraud. So, adopting EMV equipment quickly is important for merchants (and consumers). We will be pleased to meet to address it in more detail, but your card processor should have already contacted you.

This has no immediate impact on individual card holders, and banks are including chips in new cards as they issue them. However, the policy change shifts liability for counterfeit and invalid card frauds to the merchant if it didn’t use chip technology on that transaction. It also shifts liability for lost/stolen/not received fraud to the party involved in the transaction with the lowest level of chip technology. Unlike today, where the card issuer (i.e. the bank) is liable for losses, merchants are responsible for counterfeit transaction losses at their locations unless they use the chip protections.

Contact your merchant services company immediately about what changes you may need to make if you haven’t done so already. It can take from a few weeks to months to switch.

____________________________________________________________________________

Global Diversity Diversity implies many factors (gender, race, age, physical abilities). A “100 Persons” model uses data from a recent CIA Factbook to shrink the Earth’s population down to 100 people. Using that model, the 100 people (18 of which are over 65) includes:

Asians and the South Pacific residents: 60 Africans: 15

Western Hemisphere residents: 14 Europeans: 11

Additional facts on those 100 people are: 50 men and 50 women

18 white and 82 non-white 80 live in substandard housing. Of those, 22 lack any shelter and electric.

Only 7 would be college educated; only 22 would own a computer; and only 35 have any access to the Internet. 13 lack safe drinking water and 16 lack any toilet facilities.

Similarly, it’s interesting to note that 50 percent of the world’s wealth would be in the hands of 2 people, both of which are from

the U.S. This brings home pretty quickly just how good, we have it in the U.S., where internet access, cell phones, advanced educational opportunities, and so much more, are “givens.”

DID YOU KNOW?...

In a 2015 St. Louis Business Journal reader survey, just 17% respondents received pay increases over 5% at their last raise, including all merit increases, promotions, and cost of living adjustments. Over half (54%) received raises of 1-3%, while 11%

received 4-5% raises. Another 18% responded, “It’s been so long that I don’t remember how much my last raise was.”


More Ways to Protect Business Accounts 5

Data security, in all of its forms, is as important for small businesses as for big companies. For example, while U.S. law limits con-sumer credit card fraud liability to $50 per card (and many banks waive that loss), those fraud protections do not apply to business accounts, making small businesses much more vulnerable than consumers. So, don’t skimp on protecting your business. Bank ac-counts are vulnerable; customer lists can be copied, and employees can damage your business, intentionally or not.

While hackers target big businesses because they can steal thousands of account numbers at one time, large companies also usual-ly have far stronger security measures. Therefore, it’s often easier for a criminal to access a small business with weak security pro-tocols. Common vulnerabilities arise with:

Using debit cards at ATM machines or point–of-sale (POS) terminals. Criminals install scanners to capture account information and PINs. This risk is somewhat reduced by new “chip” technology. (see page 4) but it applies to personal and business ATM transactions.

Hackers breaking into a retail POS system or website POS system to capture or download card numbers.

Personal computer software. If network security weaknesses exist, or if even one person in your business isn’t careful about clicking email links, thieves can install mal-ware software, such as keystroke loggers, to record information needed to log into bank accounts. One business lost over $50,000 in 24 hours before discovering the problem.

Physical keylog devices. These small, inexpensive devices are virtually impossible to detect and are plugged into a PC in sec-onds. They capture every key stroke via undetectable wireless connections. Therefore, safeguard physical access to your busi-ness computers. Public kiosk computers and hotel business centers are prime targets. Do not use these computers to conduct business, including airline ticket or hotel accommodation transactions. Use your own device.

Stealing credit card numbers at locations, such as restaurants or other venues, where the card leaves the customer’s sight. Anyone with a smartphone can scan a credit card in seconds, recording the account number, expiration date and security code.

What can business owners do to protect themselves?

Use your bank’s tools, such as a token (code generator) that generates one-time passwords for transactions. Review accounts daily online for unexpected transactions. Reconcile bank accounts regularly and promptly.

Use a top-notch computer network security; it’s essential for every business. Use the best possible technology, including anti-virus/anti-spam software, and a firewall. Turn computers off and/or disconnect them from the Internet when not in use.

Install system updates and patches regularly, automatically, and immediately.

Separate tasks. Ideally, PC’s used to conduct financial transactions, such as online banking and accounting, should not be used to access other Internet sites, play games, or email. Use multiple passwords for different accounts so hackers can’t use one password to access everything.

Be aware of the risks from mobile devices. Smartphones/tablets are fantastic tools, but they complicate security. Use strong passwords and mobile device management software to control device usage and to be able to disable/wipe data from them, if necessary.

Adopt an Internet usage policy covering personal use, mobile devices (especially personally-owned devices), etc. Discourage employees from accessing personal email via business computers. Prohibit USB drives and other removable media. Enforce policies with monitoring software that alerts you when something dangerous happens.

Implement and enforce strong passwords using at least eight characters and special characters, numbers, lower and uppercase letters, etc. Ideally, use words/phrases with no direct tie to the user. Substitute characters (e.g., “Fab Four” becomes a strong-er password of F@bf0ur4 and “Alabama” becomes @l@b@mA0). This makes it easier to remember and much harder to guess.

Train your people; and refresh that training regularly. A business’s greatest vulnerability is the people using computers, not the machines or software. People working with valuable data can risk losing it every time they surf the internet.

Take your electronic hotel/motel key cards with you and destroy them. Many lodging companies store credit card numbers and other data on the magnetic stripe on their key cards.


IRS Simplifies Expense-tracking and Recordkeeping 6

The IRS recently greatly simplified recordkeeping requirements for most small businesses. It quintupled (from $500 to $2,500) the safe harbor (de minimus) threshold for expensing certain expenditures immediately instead of depreciating them over time. The new threshold allows any item substantiated by an invoice to be expensed immediately. While the $2,500 threshold officially took effect in 2016, the IRS stated it won’t challenge use of the new threshold in earlier years. As before, businesses repair and mainte-nance costs are deductible even if they exceed $2,500.

As a result, businesses can now deduct expenditures in the year of purchase for such items that, otherwise, would have had to be spread over a period of 5 (or more) years via depreciation. Because many commonly purchased assets, such as personal computers, tablets, smart phones, etc., typically cost more than $500, but under $2,500, this is a big help for our clients.

In addition, Congress permanently set the Section 179 Expensing Election threshold at $500,000 and indexed it for inflation while also extending the “bonus depreciation” rule. The Section 179 Election allows business to expense up to $500,000 of assets that do otherwise require being depreciated as assets, so long as doing so doesn’t create a net loss. These rules have exceptions, but they eliminate the need for most small businesses to depreciate most fixed assets over long periods.

_____________________________________________________________________________

Overtime Pay Requirements

The U.S. Department of Labor created many rules, including overtime rules, to protect non-union workers under the Fair Labor Standards Act (FLSA). Union employees are governed by their union’s respective contract provisions.

The FLSA applies on a work week basis. Obviously, regular pay cannot be less than minimum wage which is set at both the Federal + State level. Regular pay generally includes all remuneration for employment, except expenses, regardless of how it’s calculated. This includes bonus, shift differential, etc.

Generally, employees who work overtime (by choice or not) must receive premium pay for the overtime. Unless specifically ex-empted, employees must receive at least time and a half overtime pay for hours worked over 40 in a workweek. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, etc., unless it results in over 40 hours worked.

A workweek is a fixed, recurring 168 hour period (seven 24 hour periods). It can begin any day, at any time, and different employ-ees can have different workweeks. However, averaging hours for two or more weeks is not permitted. Vacation, holidays, sick leave, etc., do not count as hours worked for the 40 hour threshold.

If an employee works two or more jobs with different straight-time rates in a single work week, the regular rate for that week must be at least the weighted average of all such rates. Alternatively, many companies simply pay overtime using the highest rate paid to that employee in that period to avoid the headache of recalculating pay rates each week. Earnings may be determined on a piece-rate, salary, commission, etc., but regardless, overtime pay must be computed based on the average hourly rate by dividing the total pay for that week by the number of hours actually worked.

Let us know if you are concerned about this or any other payroll issue. We’ll be pleased to help.

IRS Security Issues An IRS review of its “Get Transcripts” on-line application discovered 390,000 taxpayer accounts were likely accessed without authori-zation from January 2014 through May 2015. Another 295,000 taxpayers were targeted unsuccessfully during that same period. IRS mailings to alert these taxpayers started February 29, 2016. In August 2015, the IRS identified another 220,000 transcripts that were accessed and 170,000 more unsuccessful attempts.

The IRS also offered those taxpayers Identity Protection PINs; and free Equifax identity theft protection for one year. The IRS encour-aged taxpayers to place a “fraud alert” on their credit accounts and the IRS placed special markers on these accounts.


The Impact of IRS Problems 7

Many clients are experiencing very long delays (sometimes several months) getting both Federal and State refund checks, or re-sponses to inquiries to the IRS. Yet, you must meet all IRS deadlines or be penalized. These delays are the most frustrating of the many issues arising this year. Another frustration that appeared only recently is the IRS requiring taxpayers to show up in person at the IRS to get a large refund check.

While the IRS’s mission remains: “to provide taxpayers with top-quality service by helping them understand and meet their tax re-sponsibilities and by applying tax law with integrity and fairness”, it’s been failing in 2015 and 2016—and badly. Nonetheless, as your CPA firm and advocate, we work with the IRS, and play the cards we’re dealt, to get you the best outcome possible.

Put simply, dealing with the IRS the way it was done in the past no longer works. Routine face-to-face office audits, field audits, and negotiating agreements in person are going away. The National Taxpayer Advocate, Nina Olson, reported to Congress to expect con-tinued declines in taxpayer service. Some examples she gave late in her 2015 report included:

The IRS likely would not answer well over half the telephone calls it received during the 2016 filing season. Average hold times would routinely exceed an hour and “courtesy disconnects” would be common.

No return preparation assistance would be available from the IRS in 2016. Plus, callers would be referred to the IRS website for solutions to problems. The IRS would answer far fewer tax-law questions in 2016. During filing season, only “basic” tax-law questions were answered and after filing season, no tax-law questions would be answered.

Computer-generated collection notices would increase dramatically and would likely be less accurate.

Audits of individual returns are now almost always done via “correspondence examinations” from an IRS “Service Center”. Face-to-face meetings are very rare and, often, the first you hear of the audit is after it’s been completed. Most often, correspondence ex-aminations address employee business expenses, dependency exemptions and related credits (Earned Income, Child-Care, Adop-tion, etc.), and Hope and Lifetime Learning Credits. Schedule C or F income/expense, home-office deductions, and certain itemized deductions are also frequent targets of these audits.

However, submitting records by mail to a general IRS office address without knowing how long a response will take is ridiculous. If the IRS adjusts your return because of “insufficient proof”, you can’t offer to explain it, and, therefore, a lot more appeal requests arise. Plus, taxpayer appeal requests now go to any appeals office, and are often handled exclusively by phone. Requesting a trans-fer to a local office generally succeeds, but it’s not guaranteed.

Moreover, the time the IRS takes to review and respond to taxpayers’ responses is increasing dramatically. Often, the IRS sends a (mandatory) letter 45 days after receiving a taxpayer communication saying it’s “been unable to address this matter, but we will get back to you in the next 30 to 60 days”. Some taxpayers receive this letter multiple times on the same item. While the Practitioner Hotline was usually pretty good, reduced training now means Hot-line agents have less knowledge/experience.

Recent IRS security breaches added to the problem. Often, the IRS also refuses to send e-faxes or even fax to a physical fax machine that isn’t in a “secure, locked room with limited access”, though we’ve had success avoiding that so far.

In fairness to the IRS, most of the time, once we get through to the agents themselves, we can resolve problems relatively quickly. Some issues are easily resolved via phone—if we can get through. An example of items easily addressed this way are getting penalties waived due to “reasonable cause” and as “first time” failures. Also, the IRS website has become quite robust (sometimes too much so), but knowing how to parse the website to get relevant information can be very tricky. The e-Services website for practitioners also offers a lot of help, but security concerns are negatively impacting this, too.

So, our message to clients is: It’s going to get worse—likely, a lot worse. However, rest assured, we will navigate (pun intended) the storm to get you the right outcome.


Ask the Accountant 8 Q: What is E&A doing to protect our data?

A: We take protecting your data very seriously and continually look for better safeguards. A few examples of steps we’ve tak-en are:

1. Replacing all in house servers with a state-of-the-art, host-ed solution over 5 years ago. No client data remains on desktop/laptop hard drives– it’s all at our hosting compa-nies’ secure locations.

2. No thumb drives, disks, etc. are retained. Immediately after the data transfers to the secure, central location, the media is wiped clean and the data is no longer accessible.

3. E&A associates are not permitted to bring removable media into our offices. The only removable media we use are a few CDs/DVDs we burn for tax return clients requiring them.

4. We refuse to use wireless internet connectivity. That limits the ability to penetrate our systems by requiring a physical con-nection.

5. E&A associates are not allowed to use E&A computers for so-cial networking sites, streaming music or videos, etc.

6. E&A retains almost no paper files. That protects against them “walking away”, and safeguards them from fire, flood, etc.

While no system is impenetrable, we do everything we can to make it so difficult that the hacker will look for an easier target.

INSIDE THIS ISSUE

1. What’s New

2. Protecting Yourself

Commerce Bank’s “Best Practices” for

Corporate Banking

3. Client Corner

What’s New? (continued)

4. Important Credit Card Changes

Global Diversity

5. More Ways to Protect Business

6. IRS Simplifies Expense-tracking, and

Recordkeeping

7. The Impact of IRS Problems

8. Inside This Issue

Ask the Accountant

E&A CFO Group 9109 Watson Rd. Ste. 300 St. Louis, MO 63126

Address Service

Requested

Documents

121862 Nwsltr REV_2016.pdf · 2016-08-22 · Joe’s son, Matt, completed his 10,000 hour (over 5 years!) IBEW apprenticeship in November and is now a journeyman electri-cian. During