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I am looking forward to the next year as president of MAPA. It will be a fun and challenging year. I have been a member of MAPA for many years. Both of my bosses (Edwin Murray and Steven Alaspa) were presidents of MAPA, so I guess it’s only fitting that I followed in their footsteps. We had our annual meeting June 23 at the DoubleTree Bloomington South. The day was full of meetings, speaker Josh Dye, and lunch with the installation of officers. We changed the format to a one-day event in the Twin Cities in hopes that we can get more people involved and get new people interested in how the organization works. The day went very well and I am confident that it will turn into a great annual event.
Summer is in full swing and I hope everyone is getting out and enjoying the beautiful weather. I will have a busy summer. My granddaughters Elise (who is 13) and Alaina (who is 10) are here visiting from Washington State. We have a full couple of weeks planned with camping, site-seeing and, of course, going to the mall.
I am part of the leadership program through National Society of Accountants; in July, I will be going to a NSA Legislative Strategy & Leadership Networking & Training Conference in St. Louis, Missouri. In August, I will go to Tampa, Florida, for the NSA 71st Annual Meeting and Expo. NSA has some great programs that work well with the state organizations.
Our seminar season is under way and we have some great opportunities to get your hours of CPE needed. Check out the seminars coming up on the MAPA website. In July, we have the Technology and Estates & Trusts program. In August, we have the Retirement Advisers Program. In September, we have the Business Entities seminar. December features the Ethics Training and Minnesota Update and our 1040 seminars will be held in November, December and January. Remember, our location for seminars is now the DoubleTree Bloomington South as the Ramada is being demolished.
I want to thank all of the volunteers and the staff at Ewald Consulting for all their hard work. MAPA will continue to be a great organization when everyone works together.
Have a great summer!
Heidi Baublitz, CPAPresident
“The MAPA assists its members in achieving success in the profession of accounting and taxation through the advocacy of practice rights and the promotion of high standards in ethics,
education, and professionalism.”
Volume 57, No. 3 A Publication of the Minnesota Association of Public Accountants July/August 2016
The
MAPANInforming members about accounting, tax, and technology issues
In This Issue President’s Message .................... 1 Executive Director’s Report ....... 2 In Memory: Bob Christensen ... 2 NSA State Director Report ........ 3 IRS News & Views ...................... 4 Legislative Update ...................... 5 In This Corner ............................. 7 IRS Fact Sheet — Protect . . . .... 8 IRS Security Summit . . . ........... 9 What’s New at Revenue? ..........10 In Memory: Jon Enstad............10
MAPA OfficersPresident . . . . . . . . . . . . . . . . . . Heidi Sue Baublitz, CPA
(218) 879-4817 [email protected] Vice President . . . . . . . . . . Stephanie Johnson, EA
(651) 772-2202 [email protected] Vice President . . . . . . . . Jacen Gondringer, CPA
(218) 829-3501 [email protected] . . . . . . . . . . . . . . . . . . Jennifer A . Schutz, CPA
(651) 252-9754 [email protected] . . . . . . . . . . . . . . . . . Sherry B . Gunelson, CPA
(651)731-3663 [email protected] First Past President . . . . . . . . .David E . Engelking, CPA
(651) 464-3231 [email protected] Past President . . . . . . . . . . . . . .Erin Nebben, EA
(763) 263-3300 [email protected]
MAPA Executive Offices
1000 Westgate Drive, Suite 252, Saint Paul, MN 55114(651)290-6289 or (800)501-4521 (MN only)
Fax: (651) 290-2266 Website: www.mapa-mn.com
The MAPAN The MAPAN is the official publication of MAPA. The MAPAN is published eight times annually. All articles must be submitted to the MAPA Office by the 15th of the month to be included in the following month’s publication. Submit all articles and letters to the Editor:
MAPAN Editor1000 Westgate Drive, Suite 252
Saint Paul, MN 55114 [email protected]
President’s Message
Heidi Baublitz
71st Annual NSA Meeting and Expo Tampa, FL | August 17-20, 2016
Vol 57 NO. 3 July/August 2016PAGE 2 The MAPAN
I would like to introduce myself. My name is Bryan Mowry and I am the new Executive Director for MAPA. I look forward to learning more about MAPA and working with you to continue to improve the benefits of the organization for everyone involved. I was born and raised in Wisconsin and graduated from the University of Wisconsin with a degree
in political science. Over the past 10 years I've worked with various associations. My job duties have included fundraising, government relations, and overseeing a trade association's foundation.
So far during my tenure as the Executive Director, I have been very impressed with what MAPA has to offer its membership. MAPA is an organization that truly cares about people and about the profession. This is clearly evident from the type of events and benefits MAPA offers. Here is a list of the services MAPA provides its memberships:• Education and Seminar Opportunities. The education and seminar
events provide attendees with valuable information, but they also provide continuing education credits. Members receive special discounted rates to attend the events and earn education credits. This is not an insignificant discount!
• MAPA’s Quality Review Program is an approved Report Acceptance Body with the Minnesota State Board of Accountancy; MAPA is authorized to review and process your quality review reports.
• MAPA keeps its members informed. Members are kept current on important press releases through the monthly newsletter, and special
email notices during tax season. If you choose, MAPA provides members with a client annual fall newsletter which provides clients with the latest Federal and Minnesota tax law changes.
• The Accountants Professional Liability program, recommended by the National Society of Accountants, is available to members of the Minnesota Association of Public Accountants (MAPA). This program provides access to Travelers 1st Choice+SM *, a "state of the art” errors and omissions policy that was designed with you, the accounting professional, in mind. Whether you are a bookkeeper, tax preparer, enrolled agent or Certified Public Accountant, this plan can be tailored to fit your business, so you don’t have to pay for coverage you don’t need.
• Another source of value the organization provides its membership is having a legislative and monitoring and lobbying committee. This committee works hard to make sure your interest is heard at the state capitol. Without this benefit, your concerns about legislation would not be heard, which could have a devastating impact on your business and profession.
• Other programs include our respected MAPAN newsletter, which keeps members abreast of information regarding accounting, MAPA, Minnesota, and IRS news.
As you can see, MAPA provides an excellent return on investment! If you have any questions, please feel free to contact me.
Bryan MowryExecutive Director (651)366-6099
Executive Director’s ReportBryan Mowry, CAE
Bryan Mowry
In Memory of Bob ChristensenChristensen, Robert W. (Bob) Born to Mabel & Walter Christensen on 3/25/1930 in Minneapolis, and died on 5/20/2016 at Ebenezer Ridges in Burnsville, MN.
He is survived by his wife, Jeanne, whom he met at Macalester College in St. Paul, MN in 1950 and married in 1953. Also survived by son Peter & wife Cindy; son Mark and daughter Laura; grandchildren Michael & wife Amy, Mara Riordan & husband Patrick, Alexa Roiger & husband Josh; great-grandchildren Makayla, Addison, Jackson and Ryan; siblings Jay & wife Pat, Darrell & wife Lynne, Sharon Norrbom & husband Jim; sister-in-law Kathy (brother Bryan preceded Bob in death); sister-in-law Carol Kiecker, and many nieces and nephews. He joined the Air Force after college, then returned to the Twin Cities after his discharge. He
was an accountant in both private and public sectors and was active in his community serving on the boards of the Minnesota Valley YMCA, Burnsville Chamber of Commerce and Minnesota Association of Public Accountants. He and his family built and operated the Burnsville Dairy Queen Brazier. After the sale of the DQ, he began RW Christensen Associates, an accounting and tax office which eventually merged into Enestvedt & Christensen, CPA. Bob and Jeanne traveled widely, enjoyed visiting many places in this country and other parts of the world. He was a kind and generous man, loved by family and many friends. He loved people and especially kids, being a big kid at heart with a fondness for cookies and Twinkies. We will miss him. From www.startribune.com
Vol 57 NO. 3 July/August 2016PAGE 3 The MAPAN
National Society of Accountants (NSA) State Director ReportEllen E. Stebbins, EA, RAP, ABA, ATA, ATP and ARA, NSA State Director
May 16 we were blessed with our third grandchild. Our daughter had her first child, a boy they named Rhett Nathan. People keep asking them if they named Rhett after the character in the movie and book Gone With the Wind. They didn’t
even know about the movie or book, they just liked the name.
AMP it UpThis is the theme of NSA’s Annual Convention & Expo in Tampa, Florida, August 17-20, 2016. Courses at the convention offer continuing professional education and networking opportunities that will help attendees ramp up their marketing, customer service, and growth strategies; reduce risk; save time and money; and amp up profits and the value of their businesses.
Speakers and courses include:• Karen Hawkins, the former director of the IRS Office of Professional
Responsibility, speaking on “Ethics in the Eye of the Beholder: What Conduct is Most Likely to Result in Discipline Under Circular 230? She will also lead two roundtable discussions on this topic.
• Josh Dye, president and founder of Convene, LLC, a speaking, training, and marketing consulting company, speaking on “From A to Zuckerberg: New Tech & Social Media for Tax Accountants.” He will also lead two roundtable discussions.
• Joseph Santoro, CPA, ABA, the 2015 NSA Accountant of the Year and a member of the NSA Accounting Standards Committee and the Board of Directors for the Accreditation Council for Accounting and Taxation (ACAT), speaking on “SSARS 21 and Accounting.”
• Jeffrey A. Schneider, EA, CTRS (Certified Tax Resolution Specialist), a National Tax Practice Institute (NTPI) Fellow and principal at SFS Tax & Accounting Services, speaking on “Time Management in Your Practice.” He will also lead two roundtable discussions on this same topic.
• Steven G. Siegel, JD, LLM, president of The Siegel Group, which provides consulting services to attorneys, accountants, business owners, family offices and financial planners, speaking on “Retirement: Estate Planning for the 99% & Common Estate Planning Mistakes.”
• Katie Tolin, founder of CPA Growth Guides, LLC and a past president of the Association for Accounting Marketing, speaking on “Positioning Your Practice for Growth.” She will also lead two roundtable discussions on overcoming obstacles to specialization and which growth strategies produce the greatest return.
NSA is also offering a preconference Enrolled Agent (EA) Exam Review Course, August 15-17. The course will be taught by two leading experts.
An Accredited Tax Preparer (ATP) Exam Review Course will take place on August 15 with the optional exam given on August 16. Earning the ATP credential from the Accreditation Council for Accountancy & Taxation (ACAT) exempts practitioners from taking and passing Annual Federal Tax Refresher courses and exams each year.
The conference offers many networking opportunities and social events, beginning with the Welcome Reception on August 17 and concluding on August 20 with an exciting dinner and show, “Experience the Fire of Flamenco,” at the original Columbia Restaurant — Florida’s oldest continuously operating restaurant — in Tampa’s historic neighborhood of Ybor City. For more information and to register, visit www.nsatampa2016.org or contact NSA at 800-966-6679 or [email protected].
Free Trial Offer to NSA Members for Clients Tax & Financial UpdateNSA and our partner, Client’s Tax & Financial Update, are pleased to offer members who are new subscribers to the service a free subscription to this client e-newsletter service. Each issue delivers solid tax advice and business planning ideas in a digital format customized with your firm name and information. You can link the issues to your websites and email messages or distribute via email to your clients and potential clients. This six-issue subscription normally costs $285; NSA members who are new subscribers can now, for a limited-time, get this subscription at no-cost. No strings attached. Order by phone: 800-255-1615, email: [email protected], or by mail: Client’s Tax and Financial Update, 51 Jefferson Blvd, Warwick, RI 02888.
Paychex PartnershipNSA has partnered with Paychex, Inc., as a payroll provider for the NSA and its members. Paychex offers several benefits to your clients when referred by NSA members, including one month of free payroll processing and a six-month, money-back guarantee. In addition, they offer you a referral incentive whereby your firm can earn free payroll processing for client referrals.
If your firm elects to take advantage of Paychex CPA Member Retirement Program and invites Paychex to administer your firm’s 401(k) plan, your payroll processing is free of charge. You can learn more about these program benefits by calling Paychex partners at 800-322-7292.
The TaxBook ProductsNSA members save on The TaxBook products and services including tax research books, WebLibrary subscriptions, CE courses, FastTaxFacts and ClientTaxTools. Use NSA Member Discount Code: 385. Call 866-919-5277.
Ellen Stebbins
NSA State Director Report continued on pg. 4
Vol 57 NO. 3 July/August 2016PAGE 4 The MAPAN
NSA State Director Report continued from pg. 3
Spread the Membership Love with Why I Belong to NSANSA is creating a new membership campaign “Why I Belong to NSA”. It will feature photos and quotes from NSA members that we will use on marketing campaigns, at trade shows, on our website, and on social media. Tell us why you are an “NSA Belonger” at: http://connect.nsacct.
org/belong. If you would like to share a photo of yourself (headshot preferred) for this campaign, please email one to [email protected]. We will make a photo montage of many NSA members.
My goal is to spend more time with my grandchildren this summer. Enjoy your summer with family.
IRS Launches More Rigorous e-Authentication Process and Get Transcript OnlineWith the assistance of top digital experts at U.S. Digital Service and other security authorities, the Internal Revenue Service has launched a more rigorous e-authentication process for taxpayers that will significantly increase protection against identity thieves impersonating taxpayers to access tax return information through the IRS Get Transcript online service. This enhanced authentication process will also provide a foundation for additional IRS self-help services in the future.
After being disabled last spring, Get Transcript Online is now available for all users to access a copy of their tax transcripts and similar documents that summarize important tax return information. Today’s formal re-launch of Get Transcript Online addresses increased cybersecurity threats by using a new, more secure access framework. This framework enables the IRS to require a two-step authentication process for all online tools and applications that require a high level of assurance.
While some taxpayers may now find it more difficult to authenticate their identities with this strengthened process, the IRS is committed to making sure everyone accessing the site will be able to do so in a safe and secure way. The IRS continues to support multiple options for those taxpayers who may be unable to access online features or who prefer to obtain information in more traditional ways. These options currently include ordering transcripts online or by phone for receipt by mail, which typically are delivered to the address of record within five to 10 days. The IRS continues to look for ways to expand options for all taxpayers.
Tax transcripts are summaries of tax returns. Transcripts often are used for non-tax purposes, such as income validation for mortgages or student loans. Taxpayers also can use transcripts to obtain their prior-year adjusted gross income (AGI), which they need in order to e-file their tax returns.To access the new Get Transcript Online feature, taxpayers must have an
email address, a text-enabled mobile phone and specific financial account information, such as a credit card number or certain loan numbers. Taxpayers who registered using the older process will need to re-register and strengthen their authentication in order to access the tool.
As part of the new multi-factor process, the IRS will send verification, activation or security codes via email and text. The IRS warns taxpayers that it will not initiate contact via text or email asking for log-in information or personal data. The IRS texts and emails will only contain one-time codes.
See Fact Sheet 2016-20 (https://www.irs.gov/uac/how-to-register-for-get-transcript-online-using-new-authentication-process) on irs.gov for details on what you need to successfully access Get Transcript Online.New features also allow taxpayers to see the date and time the Get Transcript Online page was last accessed. Returning users must always receive and enter a text code prior to being able to obtain access.
Employer Shared Responsibility Provision Estimator Is Now AvailableThe Taxpayer Advocate Service announced a new Employer Shared Responsibility Provision (ESRP) Estimator (https://taxpayeradvocate.irs.gov/estimator/esrp/) designed to help a business determine:• Its number of full-time employees, including full-time equivalent
employees (FTEs)• Whether it might be considered an applicable large employer (ALE),
and• If it is an ALE, the maximum amount of the potential liability for
the employer shared responsibility payment that could apply if the employer fails to offer coverage to the required number of full-time employees and their dependents.
Tax professionals can use the tool to help educate business clients about potential Employer Shared Responsibility requirements.
IRS News & ViewsAnn Makres, SBSE Taxpayer Education and Communication
The MAPAN Vol 57 NO. 3 July/August 2016PAGE 5
The Legislature Adjourned Sine DieFollowing 10 weeks of committee hearings, late night floor sessions, and last-minute conference committee meetings, the 2016 legislative session has come to an end. The House adjourned Sine Die (the constitutional term for the end of the biennial legislative cycle) at Midnight on Sunday night, while the Senate adjourned on Monday morning. Gov. Mark Dayton had 14 days to sign any bill into law that was passed by both the House and Senate. View the governor’s legislative tracker to see all bills that were signed into law this year: mn.gov/governor/resources/legislation
With only 76 days to finish all of their work, legislators were able to accomplish much of their business — including a $182 million supplemental budget, tax relief, a presidential primary system, and drug sentencing reform. What follows is a comprehensive summary of the work done by the 2016 legislature.
Supplemental Budget RecapWhen legislators came together on Tuesday, March 8, they were discussing how to properly utilize a $900 million state surplus. Because of the surplus, the House and Senate revisited the two-year budget passed during the last session. Through the work of the House Ways and Means committee and the Senate Finance committee, they passed a $182 million budget that included the following:• $75 million for jobs, energy and equity (including $35 million for
broadband expansion and $35 million for racial equity programs)• $45 million for state government operations• $25 million for E-12 education• $25 million for the Department of Public Safety• $7 million for environment and agriculture• $5 million for higher education• $70 million in tax provisions (separate from the funds for the tax
omnibus bill)
The tax provisions in the budget provide a one-year extension for the angel investment tax credit, an exemption for military pensions from state taxes, a $2,000 credit for families who have a stillborn child, and eliminates sales tax from modular homes. The bill was passed by both the House and Senate, and was signed by Gov. Dayton. See page 10 for more detail.
Tax Bill Gains Big Votes After the 2015 legislative session resulted in stalled talks on an Omnibus Tax Bill, the House and Senate passed a comprehensive tax package which included $257 million in tax relief in 2016-17 and $543 million in next biennium. This was less than the roughly $2 billion in tax changes that the House originally proposed, but above what the Senate had planned to do. With recent budget surpluses, House Republicans focused on tax relief and reforms while the Senate DFL favored a mixture of targeted tax credits additional spending on various programs and initiatives. Some items included in HF 848:
• Nearly full conformity to federal tax provisions enacted in 2014• Domicile language applying to CPA’s regarding residents • Over $30 million over the next two years added to the child and
dependent care credit• $36.5 million in 2016-17 and $75.4 million in 2017-18 for a new
student loan refundable credit up to $1,000 for principal and interest• $15.8 million in 2016-17 and $33.2 million in 2017-18 for income
tax credits and subtractions for 529 college saving plan contributions• A refundable income tax credit of $2,500 to K-12 teachers who
complete a master’s degree in their field of licensure• A new property tax credit for owners of agricultural property equal
to a portion of school district bonds• Phase-out of the state general levy (applies to commercial and
seasonal properties)• Property tax exemption for the Minnesota United soccer facility in
St. Paul• $10 million in County Program Aid and $20 million in Local
Government Aid• $10 million in riparian protection aid to counties and watershed
districts• Modifies or adds local sales tax authority for numerous cities• Approves tax increment authority for numerous cities• Clarifies the law for collecting sales taxes for online purchases when
the retailer has a presence in the state• Provides sales tax exemption and reimbursements for Super Bowl
LII, and a sales tax exemption for suites and skyboxes licenses at the stadium
• Provides a sales tax exemption for a siding production facility on the Iron Range
• Places new taxes on e-cigarettes, and removes inflationary increases on cigarette taxes, capping it at $3/pack.
• Creates a new markets grant program
The bill received bipartisan support, with a vote of 123-10 in the House and 55-12 in the Senate. However, Gov. Dayton did not sign the bill, citing an error of $101 million.
No Agreement on Bonding BillOne of the highlight issues this year was the effort to pass a bonding bill that would invest in state-owned infrastructure throughout Minnesota. The Senate proposed a bill that would have invested $1.5 billion on projects, while the House bill would have invested $800 million. Neither original version garnered enough votes to pass off the floor of the Senate or House. Due to the differences in the bills the House and Senate formed a conference committee to attempt to reach a compromise between the two positions, and with under an hour to go in the session the House heard a bonding bill that would have invested $995 million. When the Senate received the bill they amended it to include funding for transit and passed it back to the House, but the House had already adjourned for the session. This discrepancy left a difference in the bills which meant
Legislative UpdateFrom Ewald Consulting
Legislative Update continued on pg. 6
Vol 57 NO. 3 July/August 2016PAGE 6 The MAPAN
a final version couldn’t be sent to the governor’s desk for signature. Due to the failure to pass a bonding bill, there has been discussion among legislative leaders about holding a special session, but recent talks have not produced an agreement.
No Agreement on Transportation PackageFor two years, House Republicans and Senate Democrats have been negotiating a comprehensive transportation funding package. Last year the disagreement centered around how to fund transportation projects with $600 million a year over a 10-year period, with the Senate favoring an increase to the gas tax and the House preferring to use general fund money from sales taxes on auto parts. There was also strong disagreement between Senate Democrats who wanted to increase funding to metro transit projects, specifically the Southwest Light Rail project, and House Republicans, who wanted to focus spending on funding renovations to roads and bridges. Neither chamber was able to pass a comprehensive transportation funding bill this year.
Possible Special Session?With three main issues left unresolved (taxes, transportation and bonding), there is the possibility that Gov. Dayton may call a special session to address these issues. He has remained non-committal to the idea of a special session, saying none of the work is required to be done to continue the operation of state government. Only the governor can call a special session, but the legislature controls the agenda once it is called, so Gov. Dayton may be reluctant to call a special session to address issues that aren’t time sensitive.
Governor Appointments to the Board of AccountancyGov. Dayton has made his appointments to the Board of Accountancy. The following people will serve on the board from June 29, 2016 to January 6, 2020:Christopher Omdahl – Minneapolis, MNLance Radziej – Minneapolis, MNDebra Thompson – Minnetonka, MN
Legislative Update continued from pg. 5
Ransom Todd Dykema, Molly Matthews and Angela Miller are not pictured. Pictured is Ezra Koetz and the scholarship committee.
The MAPAN is published monthly (except the July/August issue) from May through January for the members of MAPA by the Minnesota Association of Public Accountants, 1000 Westgate Drive, Suite 252, Saint Paul, MN 55114.
Phone: 651-290-6289 or 800-501-4521 | Fax: 651-290-2266 Email: [email protected] | Website: www.mapa-mn.com
Unless stated, comments in this publication do not necessarily reflect the endorsement or opinion of MAPA. The publisher is not responsible for statements made by the authors, contributors or advertisers. The publisher reserves the right to final approval of editorial and advertising copy in this publication.
About the MAPAN
The MAPAN Vol 57 NO. 3 July/August 2016PAGE 7
Summer is here, spring is gone and my peer review is over. Now we can relax and enjoy the next few months with some trips to our cabin where we can relax and enjoy seeing the deer, birds and other animals as they come to eat the bird seed and deer feed.
We had our ship’s 21st reunion in Nashville, TN and were joined by my brother Tom, his wife Gerri and my son Don and his wife Molly. The Grand Ole Opry and the museum were two of the historic places we visited. I noticed that we lost Robert “Bob” Christensen May 20, 2016. He was 83. I always enjoyed talking to Bob at the seminars.
The 2,000 Mile Great Wall of China. Besides traveling with his wife and children, Bob would keep me posted with the adventurous hiking trips his sister would take to foreign lands. The last time I talked to Bob, he said she was going to China and do some hiking along the ancient 2,000 mile Great Wall of China. I hope she made it.
The 2,000 Mile Appalachian Trail. “When you find my body, please call my husband,” was the headline in the Star Tribune May 27, 2016. Geraldine “Gerry” Largay was a 66-year-old retired nurse when she and her friend Jane Lee decided to hike the trail in 2013. To make a long story short, her friend Jane had to abandon the hike due to a family emergency. Gerry elected to keep hiking. Nearing the end of her hike in Maine, she left the trail to relieve herself. She made a wrong turn and was lost…there was no cell phone service and her message for help was never received. They eventually discovered her body October 14, 2015 and estimated that she survived about 26 days before dying.
The Thunderbird Hotel. That was and is one of my favorite places for seminars. Why they changed the name and will tear down the hotel was because the hotel’s “Kitsch Indian” theme was racist and wrong. That blows my mind. One girl had her response printed in the Star Tribune, May 22, 2016. Susan Terry from Blaine said her family used to go to the Thunderbird for special events and she found the Indian décor very fascinating to the point she started reading a number of books about our Native Americans and learned a lot about their culture and the various Indian wars. She concluded that she will miss the Thunderbird that was considered to be an icon from her youth. She is not alone.
She Faked Her Ex-husband’s Death. Irina Vorotinov, 49, of Minneapolis pleaded guilty in federal court to mail fraud and a related felony count for concocting the death of Igor Vorotinov, who was said to be hiding in Eastern Europe. The FBI and Criminal Investigation Division of the IRS determined Igor’s death was faked for a $2 million dollar insurance
claim. Her son, Alkon Vorotinov, 26, of New Hope, has pleaded guilty to concealing a felony for his role in the alleged plot and awaits sentencing with his mother. The ashes that were alleged to be Igor’s were examined and the results proved they were not his. Forensic science can tell a lot about the ashes. Digest from the Star Tribune May 17, 2016.
Do What Warren Buffett Does to Get Rich. A summer 2016 special edition of Bottom Line said, use Buffett’s “Cockroach Strategy” for getting rich. Cockroaches have been around since the beginning of time and survived every war and every catastrophe imaginable. An example of this is Coca-Cola, which has been around since 1892. Since then, we’ve had two world wars, a Great Depression, dozens of recessions, terrorist attacks, oil shocks and an international currency collapse. Yet Coke keeps growing its sales and earnings and increasing its dividends. Buffett bought most of his Coke stock in 1987 and 1988. When you take all the stock splits over the years, his average cost is $1.40 per share. Today the dividend is $1.40 per share. Bottom line: ask your broker about solid companies that have been around for years and have performed like cockroaches with increased sales, earnings and dividends. You might be surprised to find a few like Coke.
Prince Died Without a Will. I don’t know how much more can be written about Prince who died April 21, 2016, at Paisley Park in Chanhassen. Many were shocked that a man with his estate (estimated to be between $100 and $300 million) died without a will. The article I read about Prince was written June 8, 2016 in the Star Tribune. It said Carlin Williams, 39, was serving time in a Colorado prison on a gun charge, and has claimed to be Prince’s son. Carlin will have genetic testing to see if the results prove positive that he is the son of Prince. If he is Prince’s son, that will stop the other nine persons who claim to have some relationship with Prince, because both his mother and father had children from previous marriages. They have hired 20 attorneys for making claims to his estate. Prince was allegedly very generous and others have noted that if he had a will, a good share of his estate would have gone to his favorite charities. The federal and state governments and the attorneys will be the biggest beneficiaries — with approximately 50% or more going for estate taxes and attorney fees. A will and estate plan would have eliminated those making claims if they were not named as beneficiaries.
Quotable Quotes. Clear communication is key to productivity according to Harvey Mackay who writes a weekly article in the Star Tribune every Monday. He told one story about the man who saw a receptionist at the hospital and told her that he had shingles. She made him wait a long time to see a doctor and it turned out he had shingles to deliver for some repair work. The deliveryman should have been clearer about the shingles. Like a will, you can write your own, but it should be clear about who gets what.
In This Corner...Jerry Deiley, CPA, Technical Editor
Jerry Deiley
The MAPAN Vol 57 NO. 3 July/August 2016PAGE 8
IRS Fact Sheet — Protect Your ClientsFrom www.irs.gov
The Security Summit, the partnership between the IRS, state tax agencies and the tax community formed to combat identity theft, recently announced it expanded its public awareness campaign on data security to include tax professionals.
The “Protect Your Clients; Protect Yourself ” campaign is intended to raise awareness among tax professionals on their responsibilities and the common sense steps they can take to protect their clients from identity theft and to protect their businesses.
Because of the sensitive client data held by tax professionals, cybercriminals increasingly are targeting the tax preparation community, using a variety of tactics from remote computer takeovers to phishing scams.
How are Tax Preparers Impacted? Identity thieves are a formidable enemy. Data breaches are increasing in number and scope, increasing the potential for stolen identity information to be used to file tax returns. As a tax preparer, you play a critical role in protecting taxpayer data. What is my role as a preparer? It is a legal responsibility of businesses and individuals that maintain, share, transmit, or store taxpayer data to have safeguards in place to protect client information. Taxpayer data is defined as any information obtained or used in the preparation of a tax return.
What Can I Do? Data security includes all aspects of your business. Review your administrative practices, facility protection, computer security, personnel & information systems.
Read the complete IRS Publication 4557, Safeguarding Taxpayer Data, for a more comprehensive view including tips and links to additional information.
Critical Steps:• Assure that taxpayer data, including data left on hardware and media,
is never left unsecured• Securely dispose of taxpayer information• Require strong passwords (numbers, symbols, upper & lowercase)
on all computers and tax software programs
• Require periodic password changes every 60 – 90 days• Store taxpayer data in secure systems and encrypt information when
transmitting across networks• Ensure that e-mail being sent or received, that contains taxpayer data,
is encrypted and secure• Make sure paper documents, computer disks, flash drives and other
media are kept in a secure location and restrict access to authorized users only
• Use caution when allowing or granting remote access to internal networks containing sensitive data
• Terminate access to taxpayer information for anyone who is no longer employed by your business
• Create security requirements for your entire staff regarding computer information systems, paper records and use of taxpayer data
• Provide periodic training to update staff members on any changes and ensure compliance
• Protect your facilities from unauthorized access and potential dangers• Create a plan on required steps to notify taxpayers should you be the
victim of any data breach or theft
Additional Considerations:• Complete a risk assessment to identify risk and potential impacts of
unauthorized access• Write and follow an Information Security plan• Consider performing background checks and screen individuals
before granting access to taxpayer information
Putting safeguards in place to protect taxpayer data helps prevent fraud and identity theft and enhances customer confidence and trust. These safeguards will help you:1. Preserve the confidentiality and privacy of taxpayer data by restricting
access and disclosure2. Protect the integrity of taxpayer data by preventing improper or
unauthorized modification or destruction; and3. Maintain the availability of taxpayer data by providing timely and
reliable access and data recovery.
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Advertising SpecsThe following types of advertisements will be accepted from MAPA members:
1) sale or purchase of a practice2) person seeking employment3) potential internships
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The MAPAN Vol 57 NO. 3 July/August 2016PAGE 9
Have a great summer!
IRS Security Summit Announces “Protect Your Clients, Protect Yourself ” InitiativeFrom www.nsacct.org
NSA Executive Vice President and Member of the IRS Advisory Council, John Ams participated in today’s IRS Security Summit to review 2016 accomplishments and announce initiatives for 2017.
Fewer people became victims of tax-related identity theft during the 2016 filing season. Summit partners reported a 40% decrease in taxpayers who said their identity was stolen and a 60% decrease in the number of suspicious returns.
Looking to the next filing season, the summit voiced concern with the security of tax preparers, who are the next logical target for identity theft. The IRS announced a new outreach “Protect Your Clients, Protect Yourself” as an upcoming initiative to protect tax preparers from potential security threats.
In response to this concern, NSA will be meeting with the IRS Commissioner in August to provide suggestions to improve the Power of Attorney process for tax professionals, suggestions for e-service improvements and to discuss support for increased IRS budget appropriations.
A few of the 2016 Security Summit highlights include:• New protocols required all individual tax software customers to
update their security credentials to a minimum eight-digit password and establish security questions.
• Software providers shared approximately 20 data elements from tax returns with the IRS and states to help identify possible fraud. These elements are confidential but include information to identify returns prepared quickly by automated programs.
• Industry partners performed regular reviews to identify possible identity theft schemes and report them to the IRS and state partners to help stay on top of emerging schemes.
• Summit partners launched a “Taxes. Security. Together” campaign to increase public awareness about the need for computer security and provide people with tips on how to protect their personal information.
A few 2017 initiatives include:• Expanding a W-2 Verification Code test to cover approximately 50
million forms in 2017. The selected forms contain a 16-digit code that taxpayers and tax preparers enter when prompted by software. The code helps validate not only the taxpayer’s identity but also the information on the form. This pilot is among the most visible Summit action for 2017.
• Identifying additional data elements from tax returns that will help improve authentication of the taxpayer and identify possible identity theft scams and sharing data elements from corporate tax returns.
• Launching the Identity Theft Tax Refund Fraud Information Sharing & Analysis Center (IDTTRF-ISAC) in 2017. This will serve as the early warning system for partners, collecting and analyzing tax-related identity theft schemes.
The MAPAN Vol 57 NO. 3 July/August 2016PAGE 10
Legislative SessionThe supplemental budget bill was signed into law on June 1. We are beginning the work of implementing the provisions as they relate to taxes. Below are two notable provisions in the supplemental budget.
Military Pension/Retirement Pay Subtraction from the Supplemental Budget BillMinnesotan military personnel may be eligible for an income tax subtraction for certain military retirement pay included in federal taxable income beginning in 2016. To qualify for the subtraction, the pension or retirement pay must be:• from a pension or other retirement plan paid by the federal
government for service in the military• computed under U.S. Code, Title 10, sections 1401 to 1414, 1447 to
1455, and 12733• Taxpayers who claim this subtraction may not claim the Credit for
Past Military Service.
Credit for Parents of Stillborn Children from the Supplemental Budget BillParents who gave birth to a stillborn child in 2016 may be eligible for a refundable tax credit of $2,000.
To qualify for this credit, you must have:• been issued a certificate of birth resulting in stillbirth by the
Minnesota Department of Health • qualified to claim the child as a dependent if the child had survived• The credit is available only for the year in which the stillbirth
occurred. • Part-year and nonresidents are eligible for the credit based on the
percentage of the income that is allocated to Minnesota.
Proposed Tax BillThe proposed tax bill included federal extenders that could affect tax year 2015 if they are signed into law as part of a special session.
The department will continue to monitor the legislation and provide more information and clarity to taxpayers as it becomes available.
To receive the latest information by email, visit our website at www.revenue.state.mn.us and click the red envelope to sign up for our email updates.
Continued Education and OutreachThe department is always working to provide innovative resources and educational activities to advance and support Minnesota businesses. Here are just a few of the resources we are working on to better meet our customer’s needs. Industry GuidesThis year we added seven industry specific guides to our website. These guides cover common sales and use tax issues and provide information specific to select industries. Each guide consolidates information currently located within multiple documents into a single resource. Eventually these guides will replace most fact sheets.To access our industry guides, visit our website and type industry guides into the search box.
WebinarsWe began offering Minnesota Basic Sales and Use Tax education webinars in December 2015. We wanted to make the basic class available to those in greater Minnesota areas and to reach those who cannot attend an in-person class.
We have held six webinars — our current goal remains one per month. Our attendance has increased each time and we’ve had about 400 attendees from 24 states and 3 different countries.
To register for a webinar, visit our website and type sales and use tax webinar into the Search box.
What’s New at Revenue?Department of Revenue
In Memory of Jon Lowell Enstad Another sinner-saint is now but saint. Jon: husband, father, grandfather, brother, uncle, friend, and most importantly, a redeemed child of God, was embraced by his Savior, Jesus, in the glories of heaven on June 5 after succumbing to complications from suffering a heart attack and later stroke.
Jon was born to Aldon and Phyllis Enstad in Mason City, Iowa on April 29, 1960. He was born a sinful human being like each one of us, bound for the punishment of hell we all deserve. By faith in God’s promises, Al and Phyllis had Jon baptized in the name of the Father, Son and Holy Spirit on May 15, 1960. It was then Jon was
given a new heart, a heart of faith to believe in Jesus as his one and only Savior from sin. A faith God preserved until his dying day.
To provide for his family, Jon faithfully worked for one employer for 34 years, of which he became part owner: Hubmer, Enstad, Ovik & Co. Ltd. They were like family to him. Even in his role as a CPA, Jon lived his Christian faith for all to see and sought opportunities to witness to colleagues and clients alike. Please find the complete obituary at www.washburn-mcreavy.com
The MAPAN Vol 57 NO. 3 July/August 2016PAGE 11
Gear Up Accounting Seminar attendees at the DoubleTree Hotel Bloomington South in Bloomington, MN.
Gear Up Accounding Seminar attendees on June 1–2, 2016.
AdvisoryDavid E . Engelking, [email protected](651)464-3231
ByLawsJennifer Schutz, [email protected](651)252-9754
Communications, MAPAN, Technology, and Public RelationsSherry B . Gunelson, [email protected](651)731-3663
Matthew Dahl, [email protected](218)829-3585
Erin Nebben, [email protected](763)263-3300
Contract ReviewHeidi Sue Baublitz, [email protected](218)879-4817
ConventionVirginia Bruns, CPA, [email protected](763)263-3300
Ellen Stebbins, EA, RAP, [email protected] (507)583-66011
EthicsTim Robinson, [email protected](320)286-5552
Legislative /MN State Board LiaisonKurt Juergensen, [email protected](320)587-2255
Al Maves, [email protected](507)282-9488
MembershipStephanie Johnson, EA, RAP, [email protected](651) 772-2202
Jacen Gondringer, [email protected](218)829-3501
IRS and State Tax LiaisonDavid Shabaz, CPA, [email protected](952)432-7770
NominatingDavid E . Engelking, [email protected](651)464-3231
Peer ReviewMark Hemerick, [email protected](320)587-2255
ScholarshipDebra Yerys, [email protected] (612)272-3434
SeminarVirginia Bruns, CPA, [email protected](763)263-3300
Darrel D . Terning, CPA, [email protected](320)583-7288
Strategic PlanningAl Maves, [email protected](507)282-9488
Student ConferenceStephanie Johnson, EA, RAP, [email protected](651)772-2202
MAPA Committee Chairpersons 2016–2017
Minnesota Association of Public Accountants1000 Westgate Drive, Suite 252Saint Paul, MN 55114
ADDRESS SERVICE REQUESTED
July/August 2016 Newsletter
MAPAMinnesota Association of Public Accountants
July 2016 WednesdayJuly 27 Gear Up Technology 3 .0
Thursday, July 28 Gear Up Estates & Trusts August 2016Tuesday-Wednesday, August 9-10The Retirement Advisors Program Series
September 2016Tuesday, September 27MAPA Board Meeting
Wednesday-Thursday, September 28-29 Gear Up Business Entities November 2016Tuesday-Wednesday, November 1-2 Gear Up 1040 Individual Tax
Wednesday-Thursday, November 9-10 Gear Up 1040 Individual Tax
December 2016Thursday, December 1Ethics Training & Professional Conduct for the CPAand Minnesota Tax Update
Wednesday-Thursday, December 7-8Gear Up 1040 Individual Tax
January 2017Wednesday-Thursday, January 4-52017 Gear Up 1040 Individual Tax
MAPA Calendar
More and more accountants are finding they need to be up-to-date on financial matters facing seniors. The seminars in this series are designed for accountants working with this market segment. These workshops are also designed to prepare accountants for the Accredited Retirement Advisor® (ARA) certification exam. After completion of all three seminars, a computer-based exam can be taken at one of many local and national testing sites. For more information about the Accredited Retirement Advisor® credential, visit the ACAT website at www.acatcredentials.org.
As an attendee of these seminars, you will:• Discover ways to ensure your client’s and your own long-term
financial security• Receive a comprehensive manual for future use• Gain your clients’ trust in your professional knowledge• Acquire skills to build and increase your elder care practice• Be able to apply your newly gained knowledge immediately to
increase revenue• Work toward obtaining the prestigious ARA credential
The Retirement Advisors Program SeriesAugust 9-10, 2016 Register online at www.mapa-mn.com!
Register at www.mapa-mn.com!
