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“How do we think differently in a world of transient advantage?”Rita McGrath & the End of Competit ive Advantageof Competit ive AdvantagePage 6
January 2014 | Maryland Association of Certified Public Accountants, Inc.
STATEMENTMACPA’S
A L S O I N S I D ETax season: Roll with the changesPAGE 24
The new financial landscape for same-sex couplesPAGE 27
WE WILL GUIDE YOU every step of the way
Prepare your business for the changing landscapeof employee benefits and health care reform
control costsThe RJP team delivers effective benefits programs and provides integrated HR services and support.
• Strategic Benefits Planning • Regulatory Compliance | Health Care Reform • Human Resources Support • Online Enrollment | HRIS | Payroll • Corporate Wellness Solutions • Custom Benefits Communications • Retirement Plan Services
An employee benefits program audit is free for MACPA members and your clients.
health care reformRJP will guide you through Health Care Reform to help you understand what actions you need to take and how the laws will affect your business.
We offer a customized cost impact analysis to help you start making changes now that will position your company for the future.
The timely Health Care Reform cost impact analysis is free for MACPA members and your clients.
RJP & Associates is the MACPA’s Exclusive Preferred Provider for employee benefits.
B A N K I N G . I N S U R A N C E . I N V E S T M E N T S
Member FDIC. Only deposit products are FDIC insured.© 2013, Branch Banking and Trust Company. All rights reserved.
If values aren’t shared,If values aren’t shared,If values aren’t shared,they aren’t lived.they aren’t lived.they aren’t lived.
For more than 140 years, BB&T has never taken a relationship for granted. We set out to earn your business each and every day. Our strong value system helps us determine what is right and reasonable. And to remain focused on doing what’s in the best interests of the clients and communities we serve. Discover the value a values-driven bank can offer you. Talk to us today. BBT.com
Proud Sponsor of the MACPA
ADMINISTRATION
Amy Stumme [email protected]
Becky Conley [email protected]
TECHNOLOGY
Doug Shaner [email protected]
COMMUNICATIONS
Amy Moran [email protected]
Bill Sheridan [email protected]
FINANCE
Margaret DeRoose [email protected]
Laura Swann, CPA [email protected]
MEMBER SERVICES
Julianne Part [email protected]
Jeannie Richardson [email protected]
Ashlee Stem [email protected]
PRODUCT DEVELOPMENT
Akesha Brown [email protected]
Debbie Zizwarek [email protected]
TECHNICAL SERVICES
MaryBeth Halpern [email protected]
Cora Edwards [email protected]
PROFESSIONAL DEVELOPMENT
Dee Sullivan [email protected]
Pamela C. Devine [email protected]
Chris Dougherty [email protected]
MaryBeth Drusano [email protected]
Jared Feinstein [email protected]
Megan Gratz [email protected]
Emily Trott [email protected]
Rebekah Brown
Donna Lewis [email protected]
Ryan Wey [email protected]
Amy Puente [email protected]
Paige [email protected]
Meredith Senio [email protected]
Laura Dorsey-Shaner [email protected]
Andrew Hood [email protected]
2013-2014 BOARD OF DIRECTORSOFFICERS
Byron Patrick, CPA.CITP, MCSE Chair
Marianela del Pino-Rivera, CPA Vice Chair
Michael Manspeaker, CPA Secretary/Treasurer
Anoop N. Mehta, CPA, CGMA Immediate Past Chair
DIRECTORS
Samantha Bowling, CPA
Lisa Cines, CPA
Shane Grady, CPA
Kara King Bess, CPA
Michael Manspeaker, CPA
Joselin R. Martin, CPA
Amy Myers, CPA
Robert Tarola, CPA
SENIOR STAFFMACPA EXECUTIVE DIRECTOR
J. Thomas Hood III, [email protected]
MACPA DEPUTY EXECUTIVE DIRECTOR
Jacqueline E. G. [email protected]
DIRECTOR OF FINANCE AND ADMINISTRATION
Skip Falatko, [email protected]
CONTENTS
WE WANT TO HEAR FROM YOU! See below to submit content
Bill SheridanMACPA Dulaney Center II 901 Dulaney Valley Road Suite 710 Towson, MD 21204
For content submission: [email protected]@macpa.org
P: 410.296.6250 F: 410.296.8713Toll free: 800.782.2036
The MACPA reserves the right to edit all submissions for grammatical style and / or length.
Statement of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of MACPA.
The Statement is published four times a year by the Maryland Association of Certified Public Accountants, Inc.
Bill Sheridan, EditorAmy Moran, Advertising Sales
January 2014 | Maryland Association of Certified Public Accountants, Inc.
CHAIR’S COLUMN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
FEATURESYou can thrive in complex times . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . .. . . . 6Tax season: Roll with the changes. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24The new financial landscape for same-sex couples . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
DEPARTMENTSNews & Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Business & Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16High Tech Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Tax Corner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Professional Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35Practice Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36Member Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
MEMBER NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
NYPN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 48
CLASSIFIEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
3JANUARY 2014
B A N K I N G . I N S U R A N C E . I N V E S T M E N T S
Member FDIC. Only deposit products are FDIC insured.© 2013, Branch Banking and Trust Company. All rights reserved.
If values aren’t shared,If values aren’t shared,If values aren’t shared,they aren’t lived.they aren’t lived.they aren’t lived.
For more than 140 years, BB&T has never taken a relationship for granted. We set out to earn your business each and every day. Our strong value system helps us determine what is right and reasonable. And to remain focused on doing what’s in the best interests of the clients and communities we serve. Discover the value a values-driven bank can offer you. Talk to us today. BBT.com
Proud Sponsor of the MACPA
STATEMENT4
CHAIR’S COLUMN
WHAT IF WE DIDN’T HAVE CPA DAY? NOW THERE’S A SCARY THOUGHTBY BYRON PATRICK, CPA.CITP, CGMA, MCSECEO AND CO-FOUNDER, SIMPLIFIED INNOVATIONS
It’s January. Who’s stoked for some Maryland politics?
The General Assembly returns to Annapolis on Jan. 8 for its 2014 legislative session — and when politicians invade Annapolis, CPAs are sure to follow.
Indeed, the 2014 edition of CPA Day in Annapolis arrives just seven days later, on Jan. 15, starting at 7:30 a.m. at the Governor Calvert House. Once again, scores of CPAs will put aside tax season preparations to fight the good legislative fight on behalf of the profession, meeting directly with their legislators to discuss issues of importance to Maryland’s CPAs.
Except, what if they don’t?
What if the MACPA didn’t hold CPA Day each year? What if state CPA associations and their members didn’t monitor state legislation and lobby for the profession’s position on the issues of the day?
• It might be harder for you to work across state lines. With strong support from the MACPA, the General Assembly passed a measure that allows CPAs in other states to provide their services in Maryland without having to obtain a license or notify the State Board of Public Accountancy. It’s part of a nationwide “mobility” movement designed to make it easier for CPAs to do their work in multiple states. To date, 49 states and the District of Columbia have passed such laws.
• Your State Board wouldn’t have the resources it needs to serve you well. With MACPA support, legislators approved a bill that provides separate funding for the State Board of Public Accountancy via CPA licensure fees. Those funds can’t be cut or diverted by state lawmakers. They are used solely to serve Maryland CPAs.
• You might be subject to onerous
Sarbanes-Oxley-type legislation that would have stifled the work of Maryland CPAs. In the wake of the Enron and WorldCom scandals, some people lobbied hard to apply Sarbanes-Oxley-esque restrictions at the state level. Instead, with support from the MACPA, the General Assembly passed a law mandating peer review in Maryland as a way to ensure that high standards of professionalism and independence are upheld and that CPA firms maintain an effective system of quality control.
• It might be easier for someone to sue you or one of your clients. In past years, trial lawyers have introduced bills designed to replace Maryland’s current system of determining a defendant’s liability with a “comparative negligence” system that makes recovery against a defendant easier – even when the person bringing the lawsuit substantially contributed to his own injuries. Maryland courts allow a person sued for negligence or wrongdoing to raise the “contributory negligence” defense – that is, the party sued may claim that the plaintiff contributed to his injury and thus should not be allowed to recover from the defendant. This rule prevents a person from shifting his or her responsibility to others. The MACPA works each year to make sure the state’s contributory negligence rule is retained.
• Your CPA services might be subject to sales and use taxes. The state is always looking for ways to raise revenue, and a tax on the services you provide would hurt both you and your clients. The MACPA gears up to fight this battle every year.
Get the picture? Without someone diligently watching out for — and acting on — legislation that impacts you and your clients, it might be a whole lot harder for CPAs to do business in Maryland.
That’s why we need you to join us in Annapolis on Jan. 15. Our legislative voice
grows louder with every CPA who joins the effort.
Our focus this year will center on a couple of oldies but goodies:
SALES TAX ON SERVICES
It’s always possible that the General Assembly could revisit the idea of imposing sales taxes on professional services as a way to raise revenue. The MACPA believes a sales tax on services would burden the citizens and businesses of Maryland unnecessarily with additional taxes. We believe this proposal is bad for small business and will work to defeat such legislation if introduced.
TORT REFORM / CONTRIBUTORY NEGLIGENCE
As I mentioned above, the MACPA will work in support of Maryland’s contributory negligence rule for a number of reasons. It prevents a flood of suits by plaintiffs who have a disproportionate amount of fault, helps keep a lid on insurance premium growth rates, and fosters the exercise of due care by everyone. On the flip side, the higher cost of conducting business and the decreased productivity associated with the “comparative negligence” alternative would lead to a loss of jobs, increased liability and a deterioration of the economic climate in Maryland.
Register today at MACPA.org/CPADay and join us in Annapolis on Jan. 15. Meet your legislators. Have lunch and a conversation. Protect your profession.
We need you. This work is too important to ignore.
What if we didn’t do it?
FIND YOUR COMPETITVE EDGE
Event ID: 121011 | Turf Valley Resort & Conference Center
macpa.org/industry
KATHLEEN SNYDERMD CHAMBER PRESIDENT
ANIRBAN BASUCHAIRMAN & CEO OF
SAGE POLICY GROUP, INC.
PETER FRANCHOTCOMPTROLLER OF MD
Maryland Competitive Update from Comptroller & Maryland Chamber
Economic Update
2014Business& Industry C O N F E R E N C E
APRIL 24
You can thrive in complex timesOur problem isn’t change; it’s keeping pace. Best-selling business expert Rita McGrath will show us how in a can’t-miss event on Jan. 30
BY BILL SHERIDAN
To hear the experts tell it, the biggest
issue facing businesses today is change.
Wrong.
Change isn’t the problem. Things have
always changed. The problems are the
staggering pace of change and our
inability to catch up.
Businesses don’t need to know that the
world is changing. They need to know
what to do about it.
For that bit of information, let’s bring in
Rita McGrath.
A Columbia Business School professor
and best-selling author who is sixth on
Forbes’ most recent list of the world’s
most influential business thinkers,
McGrath will speak live in Baltimore
on Jan. 30 as part of “The End of
Competitive Advantage,” an event
hosted by the MACPA and the Business
Learning Institute. The event is named
after McGrath’s most recent book, The
End of Competitive Advantage: How to
Keep Your Strategy Moving as Fast as
Your Business.
Get details and register at BLIonline.org/Rita.
McGrath’s message will focus less on
change and more on our reaction to it.
She says too many organizations are
trying to solve today’s complex problems
with outdated methods. They’re trying to
predict their way out of an unpredictable
situation.
“One of the dilemmas we all face,”
McGrath said, “is that we are trying to
grapple with truly complex systems by
using tools and frameworks that were
designed for more simple, more linear
systems.”
So what do we need to do? Four things,
says McGrath:
1. FORECAST DIFFERENTLY
Spend less time on lagging indicators
like yesterday’s numbers and outcomes.
Spend more time on leading indicators
like data that offer clues about what the
future holds.
“Leading indicators are the hardest to
find,” McGrath said. “The problem is
that they are subjective; they’re not facts
yet. But they also give us some distant
early warnings about things that might
happen.”
Here’s an exercise we can try: Imagine
a future event – something that’s either
good or bad for your organization. Now
imagine what would have to happen first
in order for that event to take place. Ask
yourself: “Can I see the signs that will tell
me if that is happening now?”
2. TAKE ON INTELLIGENT RISK
McGrath channeled political scientist
Aaron Wildavsky for this one. Most
organizations today invest in prevention –
trying to keep bad things from happening
to them. McGrath said we need to invest
more resources in what Wildavsky called
“resilience,” a trait that will help us
“mount the appropriate response” when
something goes wrong.
That point of view requires an eye toward
innovation. Don’t be afraid to try new
things. If they work, great. If they don’t,
respond accordingly and try again.
“Start making small bets on things that
are not part of your core business,”
McGrath said. “Then ask yourself: Who
are your truth-tellers – the people who are
able to look at the future and articulate
cases where things are going to be much
different than it is today?”
And if the people in power aren’t truth-
tellers, watch out: This could be a difficult
exercise.
3. ALLOCATE YOUR RESOURCES DIFFERENTLY
Sure, we need to focus on our core
businesses. But in this crazy environment,
McGrath said it’s critical that we also
devote some time and energy to
innovation identifying opportunities,
thinking of things we’ll want to invest in,
figuring out how to ramp them up and
make them scalable.
STATEMENT6
That means we’ll also have to spend some
time on what she calls “disengagement” –
figuring out what we should stop doing so
that we’ll have the time and resources to
devote to innovation.
And here’s the most important thing: Your
superstars need to be innovators.
“Average organizations put their best
people on problems,” McGrath said.
“Exceptional organizations put their best
people on opportunities.”
DON’T JUST SURVIVE. THRIVE.
In times like this, when change and
complexity fuel massive uncertainty,
many companies take the safe route and
concentrate not on growth, but on mere
survival.
Big mistake, says McGrath.
“As a leader, you want to be thinking about the future at all times, and that does require some
investment,” she said. “An analogy would be to think about sending your children to college. I have absolutely no idea what those children are going to do once they’re done with their degrees, but I know that if I don’t make that investment in their education, there will be whole sets of opportunities that won’t be open to them. When you stop thinking about growth, it’s sort of the same as not investing in education, not investing in things that will give you a future.”
Getting past the barriers of change and
complexity and focusing on growth has all
kinds of benefits, McGrath explained.
“Think of it a bit like momentum,” she
said. “If you start a race from a dead
stop, you’re much less likely to get up to
speed fast than someone who’s already
moving. With growth, you have a similar
phenomenon. Those who start making
those investments today – those who start
removing some of the structural barriers
(to growth) – are going to be that much
more in motion than companies that have
been at a dead stop for the past few
years.
“Plus, it’s more fun. It’s more fun for your
people, it’s more fun for yourself to be
thinking of doing something new rather
than the same old thing. Once you’re
focused on growth, people start to see
opportunities more readily because
they’re actively thinking about it. People
are less likely to cling to the past if they
see that there are opportunities in the
future that they could be going after.”
Bill Sheridan is editor of The Statement and
chief communications officer for the MACPA.
A series for financial professionals in Business & Industry
Shape your organizat ion for better results .
CHANGE EFFORTS THAT STICK Aug 29, 2013 // Gretchen Pisano // Event ID: 170000macpa.org/QFLFaugust
CHALLENGES FOR FINANCIAL PROFESSIONALS Nov 21, 2013 // Francis X. Ryan // Event ID: 170001macpa.org/QFLFnovember MACGYVERING: THE ART OF BEING RESOURCEFUL IN A CRISIS Feb 27, 2014 // Greg Conderacci // Event ID: 170002macpa.org/QFLFfebruary
SMARTER DECISION-MAKINGMay 22, 2014 // Jennifer Elder // Event ID: 170003macpa.org/QFLFmay
4 hours of CPE each quarter to share and learn with other experienced financial leaders.
AGENDA: 8-11 am – topical instruction, 11-12 noon – lunch and facilitated discussionLOCATION: Towson Training CenterPRICING: Members: $175/forum • Non-Members: $225/forum
QUARTERLY
LEADERS
FORUM
FINANCIAL
7:30am - 1:30pm | Wednesday, January 15 | Event ID: 181000
macpa.org/cpaday
2014
Promoting and Protecting CPAs in Maryland Bring your voice to Annapolis on January 15th
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E-10486-114 MD_Layout 1 10/11/13 10:06 AM Page 1
“CPA exam candidates nowadays have it
too easy. They can sit for the exam pretty
much whenever they want.”
“Old timers complain too much. Yeah,
they had to take all four parts at once,
but we have so much more information to
study.”
Do either of these statements sound
familiar? If you’ve spent any time with
any group of CPAs even once in your life,
you’ve likely heard it all before.
“Back in my day ...”
“The partners have no idea what we have
to go through ...”
You get the point.
We’ve all heard the horror stories of
sitting in a cramped room surrounded
by fellow CPA exam candidates for a
marathon two-day session of exam-taking
“back in the day,” and if you’re one
such candidate who experienced that
personally, you’ve probably told those
stories over the years. We know that
before the exam went computerized in
2004, in some states you had to sit for
all four parts at once, pass at least two of
them and score at least a 50 on remaining
failed sections, or guess who would be
back at the fairgrounds to take everything
again next May or November?
An old examination requirement “cheat
sheet” (wait, maybe I shouldn’t use that
term considering we are talking about
the barrier to entry into one of the most
ethical professions in the world) from the
Maryland Board of Accountancy says it
all. Rather, it says it in ALL CAPS (because
lower case letters clearly would miss the
point):
“CANDIDATES MUST SIT FOR ALL
SUBJECTS OF THE EXAMINATION IN
ORDER TO OBTAIN CONDITIONAL
CREDIT.”
This fact is a common point of reference
when older CPAs bemoan how bad they
had it in their day to current CPA exam
candidates bemoaning their own fate.
Maybe part of the problem isn’t the exam
itself but all this bemoaning going on.
I’ve been hearing these tales of woe
since I started in CPA review in 2007, and
frankly, I’m sick of it. So I decided it was
time to get to the bottom of the “who
had it worse” debate with some good
old-fashioned facts.
OK, maybe not facts, but opinions.
I surveyed a completely random group of
CPAs – by “completely random,” I mean
friends and social media connections
willing to fill out my survey – whose
varying CPA exam experiences cross
decades. Thankfully, no one responded
that back in their day they had to walk
uphill both ways in the snow with no
shoes to get to the testing center.
Unexpectedly, most respondents agree
each version of the exam is difficult for
its own reasons. Most also recognize
that while having to study and sit for all
four parts (or even five parts, going way
back) of the CPA exam at once makes the
“old” exam more difficult in that respect,
current candidates have a larger body of
knowledge they are expected to know.
“This debate is over before it begins:
The current CPA exam is more difficult
due to the sheer volume of law changes
and pronouncements that have come
out since the ‘old days,’” said Jeff Elliott,
founder of Another71.com. Jeff built a
following documenting his CPA exam
experience – hence the name of his site,
reflecting the fact that he received (you
guessed it) several 71s on the exam. That
following grew into a vibrant community
of like-minded candidates seeking study
tips and support.
Elliott admits, however, that though
current candidates are tested on a
wider range of topics, paper-and-pencil
candidates had a more difficult testing
experience.
NEWS & VIEWS
Back in my day: How the CPA exam has changed
NEWS & VIEWS
BY ADRIENNE GONZALEZ
11JANUARY 2014
CONTINUED ON PAGE 12
BORMEL, GRICE & HUYETT AMONG THE BESTBormel, Grice & Huyett, P.A., has been named one of the 2013 “Best Accounting Firms to Work For.” The annual list was created by Accounting Today and Best Companies Group. Pictured from left are Anna Huyett, Larry Bormel and Katherine
Grice.
That doesn’t mean the paper-and-pencil
exam was bare bones, either.
“What surprised me most was the raw
amount of information you needed to
know and understand,” said Maryland
CPA Calvin Harris Jr., who passed the
exam in 1997. “The exam contained far
too much information for you to rely on
memory. You either knew the concepts
cold or you had no chance of success.”
James Carroll, another Maryland CPA who
first took the exam in 1985 and passed
two years later in 1987, points out that
one downside to studying for five parts
(yes, it was five back then) was keeping it
all straight in his brain. “I think the hardest
part was trying to keep all the information
separate in my head for the various
subjects,” he said.
New Jersey CPA Jesse M. Herschbein,
who took and passed the exam from
1998-99, reminds us that one thing
current candidates might take for granted
are their numerous CPA review options.
“Review courses back then were not
online or even CD-ROM based,” he said.
“Four big binders and an empty hotel
conference room, two nights a week, four
hours a night, for 18 weeks.”
Even when I started in CPA review in
2007, flexible options like online studying
weren’t nearly as widespread as they are
today. Those empty hotel conference
room options still remain, as I recall as
late as 2010 having to get up at 5 a.m.
on a Saturday to load up our books and
equipment, set up the classroom, check in
our students and spend the longest eight
hours of my life proctoring live CPA review
classes. You thought YOU had it bad?
Try sitting through the same government
accounting class weekend after weekend
for years.
I digress.
So we’ve established that scheduling
individual parts of the exam throughout
the year is a lot easier than 2,000 people
cramming into a big room at the local
fairgrounds in a scene reminiscent of “a
North Korean propaganda video” (one
respondent described it that way). We’ve
also established that over the years, the
inch-deep, mile-wide lake of knowledge
required of entry-level CPAs has expanded
to include much more information.
All of this leads us, as reasonable people,
to declare that no one had it easier, nor
does anyone have it harder. The exam
is just hard because it is supposed to
be, and it has evolved along with the
profession. In the past (by “the past,”
I mean the 1990s), the AICPA Board of
Examiners (BOE) updated the exam’s
Content Specification Outlines (CSOs)
every five to eight years. Currently, the
CSOs are updated every six months, with
new pronouncements eligible for testing
as early as six months after taking effect.
In some cases – such as the addition
of international financial reporting and
auditing standards in 2011 – these
changes are significant.
Also notable, the pool of exam candidates
continues to grow. In 2006, 69,236 unique
candidates sat for the exam. By 2011, that
number had grown to 90,644!
Did you know that until 1996 you could
get a copy of your exam, including correct
responses? I am fairly sure there is still
an old paper copy of the very exam
taken by my former boss in a certain
CPA review company office in California.
According to a 1998 article published in
the Journal of Accountancy, transitioning
to a non-disclosed exam was the first
step to build the large database needed
for a computer-based exam. Currently,
the AICPA releases a limited number of
“retired” questions each year to assist
candidates in studying, but the Institute
guards exam content through heightened
security procedures at the testing
center and by making candidates sign a
nondisclosure agreement. Even taking
to social media to discuss what kind
of simulation a candidate received is a
violation of this agreement.
A GOOD TURN BY DELEON AND STANGDeLeon & Stang, CPAs and Advisors, held its annual corporate volunteer event benefiting the Butler School in Germantown. Members of DeLeon & Stang, along with members of Chazin and Company, worked to beautify the Butler School grounds. Activities included re-setting of the front entrance signs, grading and re-seeding the surrounding areas, installing entrance fencing behind the entrance signs to enhance the front entrance appearance, painting jump posts for the school’s equestrian riding area, planting bushes, clearing out brush around the school grounds and assisting some of the school’s staff
with some administrative work.
CONTINUED ON PAGE 15
Attention CPAs:Whether A Decision Maker Looking To Upgrade Your Talent,
Or A CPA Looking to Upgrade Yourself/Your Skills, Ask Yourself:
Who really chose who in joining your company?
Are you/your professional staff really at the right level where you should be/you need them to be?
Are you/your staff in a position that truly suits your/their personality, values, and professional and personal needs?
Why leave your future to chance?If you’re seriously interested in making the “right” move for your next hire, I can help you.I am an actively licensed CPA in Maryland and Virginia with over 20 years of experience including public accounting (E&Y) and consulting (KPMG), financial accounting (American Cancer Society), internal audit (Moneyline Telerate), and recruiting (Acsys, formerly Don Richards). As a networker who truly enjoys helping others and sharing my career experiences to guide fellow professionals, here is how I can help you:
Decision Makers: Ask you questions, and most likely ask many more questions than other recruiters
about your company, duties involved, skills required, corporate culture and more Work with you on finding the “right” professional that is the “right fit” Provide you with valuable information about the professionals I work with,
the marketplace, what your competitors pay, and more
Career Seekers: Guide you on career paths available in public accounting and industry Enable you to capitalize on your strengths Coach you on how to put your best foot forward to find the “right fit” Advise you when to stay in your current position if that is the right move
If you’re interested in working with a recruiter who understands your background, skills, andis genuinely interested in helping you find the “right fit”, then I welcome meeting you!
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The BOE first made its desire to
computerize the exam known to
interested parties in 1995, nearly a full
decade before the computerized exam
would debut, by seeking comment
from state boards of accountancy on
the conversion. When the results of that
invitation to comment were published in
1997, they revealed that 92 percent of
responding state boards supported the
conversion.
Five years after it was unleashed on future
CPAs across America, the computerized
CPA exam reached its 1 millionth
administration.
So what does the CPA exam of the future
look like? Will there come a time when
you will be taking the exam at your
own leisure, wherever you like, using a
personal device that uses biometrics to
verify you and you alone are the one
taking the test? Considering that just 10
years ago the exam wasn’t even taken on
the computer and 10 years before that
calculators weren’t even allowed, no one
can say for sure what the exam will look
like 10 years from now.
One thing we can know for certain,
though, is that future CPAs will be sure
to gripe, moan, and complain about how
difficult the exam is, and those who came
before them – no matter how long ago –
will be there to remind them it was hard
when they took it, too.
Some things never change.Sources:
CPA Examination Candidate Performance Book, National Association of State Boards of Accountancy. NASBA.org/products/nasbareport/yearlyedition/
“Brave New World for the CPA’s Exam,” by Quinton Booker, Vincent C. Brenner and James D. Blum, Journal of Accountancy, January 1998. JournalofAccountancy.com/Issues/1998/Jan/booker.htm
Adrienne Gonzalez is a contributor to The Statement.
IT’S GAME-ON FOR MISTER, BURTON & FRENCHMembers of Mister, Burton & French, LLC, took some time off between deadlines to travel to Clifton Park in Baltimore on Sept. 17 to run an after-school soccer clinic for three Baltimore schools and recreation centers – Northwood, Carroll Cook and Woodhome. The program is co-sponsored by the Lutherville Timonium Recreation Council Soccer Program’s Community Outreach Initiative. More than 60 children participate in the six-week program each Tuesday at Clifton Park, and another 70 on Wednesdays at Carroll Park. Each participant is outfitted with a jersey, soccer cleats and shin guards, and a new soccer ball. After 90 minutes of play time, all
participants are sent home with a drink, and a snack.
15JANUARY 2014
BY EDWARD E. SHARKEY, ESQ.
SEC rules for equity crowdfunding create business, consulting opportunities for CPAs
BUSINESS & INDUSTRY
STATEMENT16
Businesses seeking to raise money under
the Securities and Exchange Commission’s
new rules for crowdfunding are going to
need accountants.
The SEC finally issued long-awaited rules
to govern equity crowdfunding. Under the
JOBS Act, the SEC was mandated to issue
the rules – primarily meant to protect new
and unsophisticated investors from fraud –
by the end of 2012.
Crowdfunding experts and small
business advocates had voiced concern
that the delay in the SEC’s rulemaking
was a bad omen, signaling a potential
for overregulation and the possible
neutering of the JOBS Act’s titular goal: to
“Jumpstart Our Business Startups.” That
did not happen.
Instead, the SEC’s rules – all 500-
plus pages of which can be found
at http://www.sec.gov/rules/
proposed/2013/33-9470.pdf -- align
closely with the existing provisions in
the JOBS Act. The JOBS Act legislation
and the rules allow businesses to raise
up to $1 million in equity capital in any
12-month period using “funding portals”
on the Internet. A business can raise
the money from an unlimited number of
investors, and none of them need to be
“accredited.”
The rules proposed by the SEC add only
a few caveats:
• Businesses must use one funding portal
at a time.
• They may not spread their offer over
multiple portals.
• There is a variety of legal paperwork and
disclosures to be filed.
• The business may advertise, but only to
direct prospective investors to the funding
portal’s website.
• A business may not use general
advertising to the public as it could under
Title II Crowdfunding (which is for equity
raised from accredited investors).
• The $1 million limit on funding from
non-accredited investors does not affect
a company’s ability to raise additional
private equity using other types of private
placement.
Businesses are not only going to look
to accountants for general advice on
raising equity capital. They are going
to need reliable financial statements for
compliance. Any business raising more
than $100,000 will need to file financial
statements reviewed by an independent
public accountant. For any raise in excess
of $500,000, the business will need
to provide statements that have been
independently audited.
As for investors, the SEC left the JOBS
Act limits on the caps on investing
unmodified. The total amount invested in
crowdfunding investments by an investor
with income or net worth in excess of
$100,000 may not be greater than 10
percent of income or net worth (up to
a maximum of $100,000). If either the
annual income or net worth of the investor
is below $100,000, the amount invested
may not exceed the greater of $2,000 or 5
percent of income or net worth.
Businesses should be aware that the SEC’s
rules do not immediately go into effect. A
public commentary period is now open,
and we can expect the SEC to finalize the
rules in early 2014. With the scope of the
rules now freely available, this is the time
for businesses to position themselves to
take advantage of equity crowdfunding
when the rules become law.
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STATEMENT18
Because you can’t expect the perfect replacement to just pop in.
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The sudden loss of a key executive can derail the operations of even the strongest company. When you need an experienced stand-in for a top team member, call Mitch Halbrich, The Mergis Group’sSM Senior Director, Executive Consulting. Mitch will help you fill that spot in a hurry, so you can take your time looking for a permanent match. For over thirty years, the Mergis Group has recruited smart, experienced professionals with impeccable qualifications. That’s why the BBJ rated us the number one search firm in the region, and why 90% of our business comes from repeat customers.
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Visit us at www.mergisgroup.comThe Mergis Group is now a Randstad company, the second-largest staffing and recruiting provider in the world.
FROM THE AICPA
Big Data: From potential obstacle to driver of innovation and growth
BUSINESS & INDUSTRY
Corporate leaders are continuing to see
extraordinary organizational changes that
are bringing new focus, meaning and
value to their operations, competitive
position and overall success.
Nowhere is change being felt more
strongly than in how data – in record
amounts – is being received, analyzed
and unlocked to achieve commercial
advantage and, for finance professionals,
exciting career prospects. In fact,
finance’s ability to transform insights
into performance, opportunities and
risks has risen so dramatically that it has
transformed large volumes of information
from being a potential obstacle to
progress to a driver of innovation and
growth.
To learn more about the critical role
finance can play in helping organizations
benefit from the burgeoning amount
of available data and how Big Data can
be integrated into corporate reporting,
the American Institute of CPAs and the
Chartered Institute of Management
Accountants have issued a Chartered
Global Management Accountant (CGMA)
report titled, “From Insight to Impact: The
Role of Finance in a Data-Centric World.”
The report draws on research performed
by the AICPA and CIMA, including a 2013
survey of nearly 2,100 CFOs and other
finance executives from a broad range
of business sectors across more than 80
countries. The report also reflects the
expert knowledge and experiences shared
during a series of interviews with senior
finance leaders at organizations ranging
from Accenture to Google.
CONTINUED ON PAGE 21
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2014
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RISE OF A DATA-CENTRIC ORGANIZATION
The momentum toward a data-driven
business environment is showing no
sign of slowing down, with 87 percent of
surveyed finance professionals agreeing
that it has the potential to change the way
business is done over the next 10 years,
and 51 percent ranking Big Data and
analytics as a top 10 corporate priority.
Also, more than 90 percent of CGMAs
believe that finance has an essential role
in helping organizations benefit from data
projects.
The need has therefore never been
stronger for finance teams to recognize
the impact of data on the finance function,
the benefits of innovative approaches to
data analytics, and their own expanded
role in the organization. For example, at
Yahoo! it has long been necessary for the
finance function to understand the data
captured by the company’s key products,
such as Yahoo! mail, in order to genuinely
comprehend revenue drivers.
The latest CGMA report discusses insights
that can help guide finance professionals
in these and other key leadership areas.
The following are among those featured
in the report:
• Data-driven decision-making brings
greater productivity, value, efficiencies,
and new KPIs, among other benefits, that
cross organization size, type and industry.
• More than 90 percent of survey
respondents agree that finance is well
positioned to help translate data into
commercial insights and value. Although
some uncertainty prevails over their
specific role, finance can add value by
applying their expertise to planning,
budgeting, forecasting, performance
management, and other areas.
• Delivering on data’s value potential
raises the importance of strong finance-
business teamwork, and requires that
finance executives master management
skills, such as communications and the
ability to lead and influence, and have a
strategic understanding of the business.
• The data-enabled era creates
new opportunities for finance team
members through the development
of additional skills and competencies.
These opportunities are most appealing
to those interested in a more strategic
organizational role. According to 85
percent of survey participants, increasing
their ability to work with Big Data
enhances their employability.
• There is a steep learning curve for
organizations as they use data for
commercial benefit, with 86 percent of
survey respondents struggling to obtain
valuable insight from data. Top obstacles
include organizational data silos and data-
quality challenges.
Additional insights are shared in the
report by Matthew Keylock, global
capability managing director of data
at DunnHumby, a worldwide data-
science company. Keylock advises that
organizations first assess their own data
sources and use them as the foundation
on which to build a data project. Data
can include customer contact information,
organization details and roles, and
historical engagement data such as
purchased products and services. He
also recommends that data projects be
implemented in phases and built on
individual successes.
BENEFITS TO SMALL AND MEDIUM ENTERPRISES
Benefitting from new data insights is
as much an opportunity for small and
medium enterprises (SMEs) as it is for
large enterprises. For example, although
SMEs usually have limited resources
and budgets, they typically have a more
flexible IT infrastructure with fewer legacy
system issues or disparate databases.
Additionally, they can change practices
quickly.
The report also reveals the following:
• SMEs understand the value of Big Data
and are less likely to be deterred by cost.
• SMEs can use affordable online and
cloud-based specialist software and
services such as Google Analytics and
Kaggle to help analyze data.
• More adventurous SMEs are tapping
into the capabilities of advanced
data scientists to optimize Big Data
opportunities, even without the budgets
or capabilities to bring these resources
in-house.
• The key to success for organizations
of all sizes is to develop clear objectives
for data projects before selecting the
tools or services that are best aligned to
organizational goals.
Google illustrates another benefit that
Big Data presents to SMEs – advertising
opportunities. After years of focusing
on larger advertisers that had significant
budgets, Google expanded its focus and
used analytics to gain an understanding of
the factors that drive SMEs. The result is
that SMEs have become one of Google’s
fastest-growing segments.
NEW LEADERSHIP ROLE
As finance team members help lead their
organizations through an increasingly
data-driven business era, challenges
will arise that will stretch their skills into
unfamiliar service and functional areas.
However, finance professionals have
successfully distinguished themselves
with a history of evolving their roles and
ways of thinking to meet new demands,
opportunities, and economic and industry
conditions. This history, combined with
their drive to acquire new skills and
expertise, positions them as potential
leaders in harnessing data for greater
organizational value and long-term
success.
CGMA designation holders can download
“From Insight to Impact: The Role of Finance in
a Data-Centric World” from CGMA.org.
STATEMENT22
Cloud computing 101BY BARRY MACQUARRIE, CPA
EDITOR’S NOTE: The following article is reprinted with permission by the Massachusetts Society of CPAs.
HIGH-TECH SOLUTIONS
They seem to be everywhere!
They are at trade shows and association
meetings. They have been seen
advertising in accounting profession
journals, and their promotional e-mails
have probably reached your mailbox.
They sure are making a lot of noise.
They are the vendors selling cloud
accounting solutions.
Are cloud accounting applications right
for you and your clients? In this article,
we’ll define cloud accounting and look at
the risks and benefits.
WHAT IS CLOUD ACCOUNTING?
Cloud accounting applications provide
much of the same functionality as desktop
accounting software, with one major
difference: Cloud accounting apps run
on remote servers and are accessed via a
web browser.
Cloud accounting applications are
typically offered in one of these two
formats:
Hosted applications: The hosted
solutions involve your desktop or client
/ server accounting application running
on a remote server. You gain access to
your accounting software using a remote
session via the Internet. This solution
allows you to use your existing software
and data.
Software as a Service (SaaS): In this
format, the accounting software and your
data are stored on the vendor’s servers
and are accessible via a web browser. If
you have ever used a social media site
or online banking, you have used a SaaS
solution.
WHAT ARE THE BENEFITS?
There are numerous benefits to cloud
accounting, and progressive business
owners are enjoying them. Here are a few
of the benefits:
Anytime, anywhere access: Your
accounting software and operating results
are available to you from a browser or
mobile device. This is something that you
can’t do with today’s desktop accounting
solutions.
Better security: Most cloud accounting
software is run from a data center, which
offers multiple levels of security to protect
the software and your data. The typical
data center has significantly better
security than most small businesses.
No installations or updates required:
Cloud accounting vendors maintain the
software and install the updates.
Automatic backups: The cloud vendor
assumes responsibility for system backups.
Your data is often stored in multiple data
centers that are in geographically diverse
locations.
No startup costs or long-term
commitments: Cloud accounting
applications are rented, not purchased.
They do not require a small business to
invest in servers or software.
Platform agnostic: Do you prefer a
Windows PC or Mac? What’s your choice
– Chrome, Internet Explorer or Firefox?
In the world of cloud accounting, it
simply doesn’t matter. Cloud accounting
applications are delivered via a web
browser and typically support all popular
platforms.
WHAT ARE THE RISKS?
The world of cloud accounting is not
without risk. These solutions are new and
require that you perform the necessary
due diligence to determine if the solution
is right for your business.
Here are a few of the risks:
The vendor goes away: Over a decade
ago, we experienced a tech bubble in
which vendors were here one day and
gone the next. The same risk exists with
cloud accounting vendors. It is important
to have a contingency plan.
You don’t have Internet access: Cloud
accounting vendors are accessible from
anywhere and anytime assuming that you
have a connection to the Internet. If you
find yourself without Internet access, you
will not have access to your accounting
data.
Security breach: Cloud accounting
software and your data both live on the
Internet. There is a risk that someone
could gain access to your data.
WHAT’S NEXT?
We are just beginning to see the impact
of cloud accounting applications. It will
take time to determine if they will be the
next major paradigm shift in the world
of accounting. There is so much more
to learn about these products and their
impact on the small business community.
Stay tuned!
Barry MacQuarrie, CPA, is a consultant at KAF Financial Group. He combines his knowledge of social media and technology to provide consulting services to accounting firms and other businesses.
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HIGH-TECH SOLUTIONS
ADP adp128713a Proof 1 - MACPA Statement Magazine
Payroll is a huge business opportunity that’sright under your nose.
Work less, worry less and profit more withRUN Powered by ADP® Payroll for Partners. With ADP’s easy-to-use online payroll solution, you can regain control of your time and rethink how payroll can help driverevenue and profitability. Our solution requires no upfronttechnology investment, and comes with simple pricing,dedicated service and marketing support. Count on our 60+ years of expertise as the payroll leader to help you benefit from less work, less worry and more profit.Learn more with the free strategy brief, “3 Easy Ways Payroll CanHelp Grow Your Business.” Go to accountant.adp.com/opportunity
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ADP is a Premier Bronze Sponsor of the Maryland Association of CPAs.For more information about our member benefit program call 410.933.2181 today!ADP®, the ADP logo and RUN powered by ADP are registered trademarks of ADP, Inc. Copyright © 2013 ADP, Inc.
Tax season: Roll with the changesComplexity could make this another challenging filing season. Here are some things to consider.
BY BEVERLY A. BAREHAM
TAX CORNER
Year-end tax planning is under way and
tax season is just around the corner – and
it could be more complex than usual. The
financial landscape is constantly changing
and CPAs continue to struggle to keep
pace with numerous tax changes.
As CPAs look at taxes and meet with
clients, here are some items to consider:
• Watch for changes in legislation.
Congress is considering some meaty tax
proposals that had not passed as of press
time. We could see tax changes passed
at the last moment again this year.
• Net investment income tax and
additional Medicare surtax: Review
“active” versus “passive” status. Consider
grouping activities and offsetting losses
and expenses. Consider the tax impact on
trusts.
• With the federal Defense of Marriage
Act changes and related state impacts,
same-sex married couples need an
in-depth review of filing status, potential
amended returns, benefits analysis, and
estate planning revisions. Keep in mind
that each state differs in its treatment
of same-sex couples. Businesses need
to review benefits issues for same-sex
employees. (See related article, page 27.)
• Manage taxable income for cash basis
taxpayers to maximize planning. If this is a
transition year between loss and income,
consider targeting certain levels of income
to hit lower tax brackets or for AMT
implications. Taxpayers may have non-tax
reasons why they need to show income
instead of losses, such as refinancing a
higher-rate mortgage before rates rise.
• Suggest that clients harvest losses
or gains before year-end, depending
upon their tax situations and portfolio
needs. With the ups and downs of the
stock market, a client portfolio may have
become unbalanced.
• Maximize retirement and profit-sharing
contributions.
• Review the business fixed asset listing
for missed disposals to reduce personal
property taxes.
• Watch new fixed asset purchase
planning. As of press time, the Section
179 expensing limit is set to fall to
$25,000 in 2014, and bonus depreciation
generally goes away. Keep in mind that
first-year “luxury” auto depreciation is
impacted if bonus depreciation is allowed
to expire as scheduled.
• Review tax credits: As the economy
begins to show signs of life again and
businesses move from losses to profits,
tax credits increase in importance.
Determine if the taxpayer may benefit
from any new Maryland credits such as the
Cybersecurity Credit, Employer Security
Costs Credits, the Wineries and Vineyards
Credit, or the expansion of the DC High
Technology Tax Credit. Write a letter of
intent to the Department of Economic
Development if a client may be growing
and adding jobs so that they can get the
proper future tax credits, such as the Job
Creation Credit. Check the address to
see if you are in a special taxing zone,
such as an Enterprise Zone.
• Obtain copies of any notices. Correct
overpayments applied from last year,
supply additional documentation to
remove erroneous assessments, or request
penalty abatements.
• Consider a cost-segregation study
for both new and existing buildings.
Catch-up depreciation deductions can
have meaningful impact on current
taxable income. Additional benefits
may be realized under the new Tangible
Property Repair Regulations. To withstand
a potential audit, be sure to use an
experienced, engineering-based cost-
segregation team that will provide the
proper documentation.
• Watch state tax nexus: Businesses
evolve over time. New state activities are
added or ended, giving rise to changes
in state nexus and filing requirements.
Watch Public Law 86-272 protections from
state income tax as business personnel
may evolve their activities. A once-exempt
salesperson may now be doing training
or collections, giving rise to nexus. States
are gathering more information in this
electronic age and are more aggressive
at looking for non-filers as states seek
to increase revenues, ideally from out of
state. If problems are found, consider
voluntary disclosure with the state to limit
look-back.
• Consider state changes in their nexus
rules, particularly as some states have
STATEMENT24CONTINUED ON PAGE 26
ADP adp128713a Proof 1 - MACPA Statement Magazine
Payroll is a huge business opportunity that’sright under your nose.
Work less, worry less and profit more withRUN Powered by ADP® Payroll for Partners. With ADP’s easy-to-use online payroll solution, you can regain control of your time and rethink how payroll can help driverevenue and profitability. Our solution requires no upfronttechnology investment, and comes with simple pricing,dedicated service and marketing support. Count on our 60+ years of expertise as the payroll leader to help you benefit from less work, less worry and more profit.Learn more with the free strategy brief, “3 Easy Ways Payroll CanHelp Grow Your Business.” Go to accountant.adp.com/opportunity
HR. Payroll. Benefits.
ADP is a Premier Bronze Sponsor of the Maryland Association of CPAs.For more information about our member benefit program call 410.933.2181 today!ADP®, the ADP logo and RUN powered by ADP are registered trademarks of ADP, Inc. Copyright © 2013 ADP, Inc.
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The Holmes GroupToll Free: 800.397.0249
STATEMENT26
passed “Amazon” laws, asserting “click-
thru” nexus from in-state web “affiliates.”
• Sales and use tax: Discuss taxpayers’
need to self-report use tax on purchases.
This is an area of focus in business audits
and one in which many taxpayers are non-
compliant.
• Business taxpayers with employees
should be aware of the Division of
Unemployment’s new penalties if they
fail to provide timely and accurate
information on terminated employees.
Remind clients to provide the new
unemployment rate to the payroll provider
so the provider impounds the correct
amount of unemployment taxes. Maryland
rates have decreased across the board.
However, a taxpayer with increased claims
against them may have a rate increase.
• Check individual taxpayers’ SDAT
Homestead tax exemption to make
sure they have their principal residence
accepted as such, and that any additional
residences, rental or investment properties
are not marked as principal.
Beverly A. Bareham, CPA, MST, is senior tax manager with SC&H Tax & Advisory Services LLC, and a member of the MACPA’s State Tax Committee.
UB alumni lead more of Baltimore’s largest accounting firms.*Enroll now in the Merrick School of Business, where we are dedicated to serving the needs of the accounting and financial community.
Graduate Program Offerings• M.S. in Accounting and Business Advisory Services • M.S. in Finance• M.S. in Taxation• M.B.A. (UB/Towson)• Certificate in Accounting Fundamentals
For more information, visit: www.ubalt.edu/gradadmissions or call 410.837.6565
REAL LEADERSHIP
*According to the 2013 Baltimore Business Journal Book of Lists, the University of Baltimore has 14 alumni who are managing or co-managing Baltimore’s 25 largest accounting firms.
The new financial landscape for same-sex couplesBY AMANDA S. WOODDELL, CPA
TAX CORNER
On June 26, 2013, the Supreme Court
struck down Section 3 of the Defense of
Marriage Act (DOMA) which, for federal
purposes, defined “marriage” as a legal
union between one man and one woman
as husband and wife, and the word
“spouse” as a person of the opposite sex
who is a husband or a wife.
Under DOMA, same-sex married couples
could not share all of the federal tax and
employee benefits available to opposite-
sex married couples.
In a 5-4 decision, the Supreme Court
ruled that same-sex married couples in
states that recognize their marriages are
entitled to the same federal benefits that
opposite-sex married couples receive.
This ruling opened up numerous planning
opportunities but also a myriad of
questions, particularly what position the
IRS would take as a result of this landmark
decision.
RECENT IRS RULING
The IRS issued its highly anticipated
interpretation of the Windsor decision
on Aug. 29, 2013 (Revenue Ruling 2013-
17). A “state of celebration” approach
was adopted by the IRS – i.e. same-
sex couples who are legally married in
jurisdictions that recognize their marriage
are treated as married for federal tax
purposes, regardless of whether or
not their state of current residence
recognizes their marriage. This covers
same-sex marriages performed in the 50
states, the District of Columbia, a U.S.
territory or a foreign country. The ruling
does not pertain to registered domestic
partnerships, civil unions or similar formal
relationships recognized under state
law. This guidance generally applied
prospectively as of Sept. 16, 2013.
At the present time, 13 states and the
District of Columbia recognize same-sex
marriage. Marriage licenses are currently
being issued in New Jersey as a result
of a lower court ruling, but this could
potentially be overturned by the New
Jersey Supreme Court.
INCOME TAX IMPLICATIONS
Married couples typically are subjected
to a higher federal tax bill if both spouses
earn a healthy amount of taxable income.
“Marriage penalties” such as higher rate
brackets, exemption and credit phase
outs, itemized deduction limitations,
IRA contribution limitations, and passive
activity loss rules come into play. On the
other hand, a joint filing can result in a
lower combined federal income tax if one
spouse earns most or all of the income.
The IRS guidance outlined that same-sex
couples are permitted (not required) to file
amended returns for any open tax years
in order to claim potential tax savings as a
result of filing jointly.
ESTATE AND GIFT TAX CONSIDERATIONS
There are also positive gift and estate
tax implications as a result of this ruling.
Same-sex couples who are married can
now make unlimited gifts to each other
without any negative federal gift or estate
tax consequences.
The tool of “gift-splitting” is also
available. Gift-splitting allows married
individuals to use their and their spouses’
annual exclusion amount and gift tax
exemption toward a gift if the spouse
consents. If one spouse dies, the surviving
spouse can be left an unlimited amount
free of any federal estate tax because
of the marital deduction privilege. The
deceased spouse’s unused unified federal
gift and estate tax exemption ($5.25
million for 2013) can now be left to the
surviving spouse (portability).
Given this turn of events, same-sex
couples should review their current
estate plans, account / asset titling,
and beneficiary designations and make
needed adjustments. Individuals whose
same-sex married partner has died should
explore the possibility of a refund of
estate taxes paid.
The IRS has issued a set of frequently
asked questions to accompany Rev Rul
2013-17 in hopes of addressing questions
regarding such items as filing status,
processes for refunds claims and other
odds and ends. Read the FAQs at http://
cpa.tc/3pm.
The IRS has stated that additional
direction is forthcoming.
EMPLOYEE BENEFITS
Outside of income tax, no other area
has felt more impact from the Supreme
Court’s decision than that of employee
benefits. The entitlement and tax
treatment of health benefits, cafeteria
plans, qualified retirement plans, and
family and medical leave have been
27JANUARY 2014
CONTINUED ON PAGE 28
affected by this landmark case.
Prior to this ruling, employers that
allowed employees to add their same-
sex spouses to their health plans had
to impute income to the employee for
federal income tax purposes and withhold
the requisite Social Security and Medicare
taxes on such income. Same-sex couples,
even married ones, also could not take
full advantage of health flexible spending
accounts, health savings accounts and
similar arrangements. Employees who
were married can now file an amended
joint return for open tax years to recover
federal income tax paid on the value
of this coverage. Additionally, if the
limitations period is open, employers have
the opportunity to file a claim for any
excess Social Security and Medicare taxes
paid on such benefits.
Under Rev Rul 2013-17, a qualified
retirement plan must treat legally married
same-sex spouses as married for purposes
of applying federal tax laws that govern
qualified plans, thus implementing the
state of celebration rule. Plans must
comply with these rules as of Sept. 16,
2013.
The Department of Labor oversees the
administration and stipulations of the
Family and Medical Leave Act. The DOL
initially employed a “state of residence”
approach in regard to this benefit. This
required an employer to only provide
FMLA leave to same-sex couples
who currently resided in a state that
recognized same-sex marriage. However,
the Office of Personnel Management
recently issued a statement that updated
the terms “spouse” and “marriage” in
the FMLA regulations to include same-sex
married couples.
OTHER FEDERAL AGENCY GUIDANCE
The Social Security Administration also
issued guidance in response to the
changes to DOMA. Effective Aug. 9,
2013, for purposes of determining benefit
entitlement, claims would be paid when
an applicant was (a) married in a state
that permits same-sex marriage; and (b)
is residing, at the time of application
or while the claim is pending a final
determination, in a state that recognizes
same-sex marriage. Survivor benefits,
divorced spouse entitlement and death
benefits are now all potentially available
to married same-sex couples. To date, no
further statements or guidance have been
issued by the SSA.
While guidance from other federal
agencies is still unfolding, the following
departments have issued statements
regarding their treatment of benefits for
same-sex married couples:
Office of Personnel Management:
• Effective June 26, 2013, benefit
coverage will be available to a federal
employee’s or annuitant’s same-sex
spouse. Affected benefits include health,
life, vision, dental, long-term care
insurance and flexible spending accounts.
OPM is following the IRS rule of state of
celebration.
• Department of Defense: On Aug. 14,
2013, the DOD announced that spousal
and family benefits will be extended
to the same-sex spouse of U.S. service
members. Benefits will be provided
retroactive to June 26, 2013. Such
benefits include health care, housing
allowances and family separation
allowances. The DOD is following the IRS
rule of state of celebration.
• Veterans Affairs: The VA is currently
undecided as to whether it will extend
veterans’ benefits to a same-sex spouse.
• Department of Homeland Security /
Immigration: A U.S. or permanent resident
is permitted to file an immigrant visa
petition for a same-sex spouse. DHS will
follow the IRS rule of state of celebration
when reviewing these applications.
STATEMENT28CONTINUED ON PAGE 30
Visit the entire tax curriculum at
MACPA.ORG/TAXTRAINING
all the
y o u n e e d i n o n e p l a c e
taxtraining
CURRENT STATE TREATMENT
Complications have arisen as nearly all
states reference the federal tax code for
purposes of state income tax calculations.
While compliance is clear for states that
recognize same-sex marriage, taxpayers
are awaiting guidance from states that
do not acknowledge same-sex unions.
At the present time, the following
non-recognition states have taken the
position that they will not accept a joint
state return:
Arizona Nebraska
Georgia North Carolina
Idaho North Dakota
Kansas Ohio
Louisiana Oklahoma
Michigan Utah
Minnesota Wisconsin
In general, the states listed above are
requiring individuals in a same-sex
marriage to recompute their federal
adjusted gross income as
single or head of household for
purposes of their state income
tax returns. Some jurisdictions
have created a new schedule
for this calculation as opposed
to requiring a “dummy” federal
return be attached to the state
filing. Many experts believe
that most non-recognition
states will follow in the path
of recomputation but again,
guidance is pending.
Although the DOMA ruling
left many with a multitude of
questions, it has also brought
peace of mind to many same-sex
couples. The tax and financial planning
opportunities that have now opened up
for same-sex couples are plentiful thanks
to the landmark decision. Fortunately,
at this juncture, we have a better
understanding of its tax and benefit
implications and
the future financial impact on same-sex
couples so that they can confidently move
forward in the decisions they make with
their investments and tax planning.
Amanda S. Wooddell, CPA, is a tax manager with SC&H Group, LLC, an audit, tax and
consulting firm headquartered in Sparks, MD.
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OTHER DOMA RESOURCESMore information about the Supreme Court’s repeal of the Defense of Marriage Act can be found here:
“Supreme Court’s Ruling in Defense of Marriage Act: Tax Planning Considerations,” from the AICPA
http://cpa.tc/3pn
“Domestic Partners and Same-Sex Couples,” from the AICPA - http://cpa.tc/3po
“Estate Tax Impact of Same-Sex Marriage Ruling,” from the AICPA - http://cpa.tc/3pp
BY BEVERLY A. BAREHAM, CPA, MST
Maryland officials offer updates for CPAs on assessments, tax credits, unemployment
TAX CORNER
The following are highlights of the Oct.
16, 2013 MACPA State Tax Committee
liaison meetings with Maryland’s State
Department of Assessments and
Taxation; the state Department of Labor,
Licensing and Regulation’s Division of
Unemployment; and the state Department
of Business and Economic Development.
STATE DEPARTMENT OF ASSESSMENTS AND TAXATION
The SDAT Personal Property Division
reminds practitioners and filers to please
check the box if you do not need forms
mailed to you the following year. This
significantly helps save money on postage
costs.
Due to budgetary constraints, the
Property Division is operating on a
reduced staff, including five fewer
assessors. The reduced staffing has
impacted processing times, call center
service, and certification of assessments to
the jurisdictions.
The due date for the principal residence
certification for the Homestead Tax Credit
will be Dec. 30, 2013 – not the 31st. This
is an extension from the original deadline
in 2012. However, any applications not
received by this date will not receive the
Homestead credit next year. The credit
caps annual home value assessment
increases at 10 percent for the state and
less for some jurisdictions. The SDAT has
made significant progress in processing
any filed applications, and SDAT
representatives hope to have any backlog
cleared by year-end. Please check online
to see your property’s status.
rate notice in January. Be sure to provide
these new revised rates to your payroll
provider.
On Oct. 1, 2013, two new bills went
into effect related to unemployment
tax:
• House Bill 354 provides for a 15 percent
penalty to be assessed on unemployment
benefit overpayments due to fraud.
• House Bill 583 provides that an
employer’s claim history will not be
relieved of charges for benefits originally
paid to a claimant due to failure by the
employer (or the employer’s agent) to
provide timely or adequate separation
information. This may occur where
inadequate information was originally
provided, benefits were paid, but the
claim was later denied when further
information was provided under appeals.
There is an opportunity for waiver of the
charges where good cause for the failure
can be shown.
Employers may sign up for electronic
notifications via e-mail to ensure the
proper person receives separation
notices given the importance of a timely
response.
The Division of Unemployment highly
encourages employers to report new
hires on the Maryland new hire registry
as early as possible to help prevent
unemployment recipients from receiving
excess benefits. The overpayment
of benefits is a problem nationally,
particularly when claimants return to
Certain Charter filings, such as setting
up an unincorporated entity, may now
be submitted online. Department
identification numbers are not given
instantly online, but are available in five
to seven days. The SDAT is not able to
handle web submissions of Form 1s for
the 2014 filing season, but representatives
are looking to make this available at a
future time.
DLLR DIVISION OF UNEMPLOYMENT
Increased taxable wages, reduced
unemployment payments, and tax rate
adjustments each year have led to a very
healthy unemployment trust fund. As
such, for 2014, employers will receive the
benefit of the lowest tax rate schedule as
pertains to unemployment tax, “Schedule
A.”
Rates will range from 0.3 percent
minimum to a maximum of 7.5 percent.
The taxable wage base limit remains the
same at $8,500. For employees earning
at least $8,500 of wages, that would
be unemployment insurance of $25.50
minimum to $637.50 maximum per
employee.
The change from Table C tax rates to
the more favorable Table A rates means
that all employers’ rates will decrease if
there is no change in the claims history.
However, employers with additional
claims against their account could still see
increases in their rates due to their claims.
Employers can call DLLR to obtain their
rates in December, or they will receive a
31JANUARY 2014
CONTINUED ON PAGE 32
work but fail to immediately notify
unemployment. They continue to collect
benefits until the new employer reports
their employment on the registry.
DEPARTMENT OF BUSINESS AND ECONOMIC DEVELOPMENT (DBED)
Members of the MACPA’s State Tax
Committee met with Mark Vulcan, director
of tax incentives for Maryland DBED.
Mark gave a very informative presentation
on Maryland Department of Economic
Development, with particular attention to
Maryland tax incentives. DBED has many
more programs than those touched upon
here, including additional tax credits,
grants, and loan programs.
Many tax credits administered by DBED
must be preapproved or certified through
DBED, so it is very important to contact
them before claiming credits. Certain
tax credits, such as the Job Creation
Tax Credit and One Maryland Credit,
require a letter of intent be submitted
by the taxpayer to DBED prior to the
hiring of the new employees and prior
to the money being spent or the project
beginning. This is a critical step which can
cause an automatic denial of the credits.
The Maryland Research and
Development Credit remains very active.
Each year the appropriation is fully utilized
and the tax credit must be prorated
among the applicants. This year the
appropriation has been increased from $6
million to $8 million and is still expected
to be fully utilized. Beginning with 2013,
Maryland R&D credits will be refundable
for small businesses. For this purpose, a
small business is defined as one with $5
million or less in book assets.
The Biotechnology Tax Credit is
another popular credit encouraging
capital investments in Maryland biotech
companies. This is a refundable credit
to the investor of 50 percent of the
investment, up to a maximum $250,000
credit. It is issued on a first-come, first-
served basis. This year’s appropriation is
increased to $10 million. This credit has
been expanded to allow companies to
participate in the program for up to 10
years.
Maryland has established a new
Cybersecurity Tax Credit that functions in
a similar way to the biotech credit – first-
come, first-served. It encourages capital
investment in a Maryland cybersecurity
company through a refundable credit
with a $250,000 maximum. Differing from
the biotech credit, this new credit is for
33 percent of the capital investment and
will be refunded to the company, not
the investor. Mr. Vulcan clarified that the
company must sell a product and cannot
provide services only.
DBED anticipates that the $2 million
appropriation for the Employer Security
Clearance Cost Tax Credit will be fully
subscribed and need to be prorated
among claimants, similar to the R&D
Credit method. The credit applications
for 2013 costs would be due Sept. 15,
2014. The credit has several aspects:
• First-year costs for a qualified small
business to lease space in Maryland to
perform security-based contracting work,
up to $200,000.
• SCIF (Sensitive Compartmented
Information Facility) construction – 50
percent of the costs to construct or
renovate a federally accredited SCIF in
Maryland, up to $200,000 ($500,000 for
multiple SCIFs).
• Administrative costs to obtain security
clearance, up to $200,000. Qualified
expenses include processing application
requests, training employees to administer
the clearance application process, and
maintaining, upgrading or installing
computer systems in Maryland to obtain
security clearance.
DBED will also be administering the new
Wineries and Vineyards Tax Credit.
The credit is 25 percent of qualifying
capital expenses made in connection with
the establishment of, or improvements
made to, Maryland wineries or vineyards.
Applications are due Sept. 15 of the
year following the expense. If total
credit applications exceed the $500,000
appropriation, the credit will be prorated
among the applicants. Qualifying
expenses do not include the cost of
buildings or structures.
Beverly A. Bareham, CPA, MST, is a senior
manager with SC&H Group.
STATEMENT32
What’s on Line 37?
Your opportunity to make a tax-deductible
donation to the Maryland Cancer Fund which provides cancer treatment and screening programs for low-income and uninsured
Maryland residents.
Please Donate on Line 37 for Tax Year 2013!
http://phpa.dhmh.maryland.gov/cancer/SitePages/mcf_home.aspx
201 West Preston Street, Baltimore, MD 21201 • 410-767-6213 Martin O’Malley, Governor | Anthony G. Brown, Lieutenant Governor | Joshua M. Sharfstein, M.D., Secretary
Forens ic Va luat ion C O N F E R E N C E
D I G D E E P E R .S E E M O R E .
O F F E R C L A R I T Y.
May 16 | Event ID: 121013| Hilton Baltimore BWI Airport
macpa.org/forensicvaluation
What’s new for the Forensic and Valuation Services Committee in 2014?
PROFESSIONAL DEVELOPMENT
The New Year will get off to a busy and
informative start for the MACPA’s Forensic
and Valuation Services Committee.
The committee’s first speaker
series session of 2014 will feature
Edward Beckwith of BakerHostetler
in Washington, D.C. His presentation,
scheduled for Friday, Jan. 10 at the
MACPA’s Columbia Center, will focus on
opportunities for forensic and valuation
professionals in the area of estate and gift
taxation.
Beckwith serves as counsel to affluent
families and charities across the
country and is a national leader of the
BakerHostetler tax-exempt practice. He
is nationally recognized in the legal and
administrative specialties that concern
establishing and guiding the operations of
charitable and educational organizations,
health care institutions, and trade
associations. His advice is often sought
with respect to the governance and best
practices of such organizations and the
maintenance of their tax-exempt status,
as well as the tax and practical aspects of
contributions and other financial support
programs.
A significant aspect of Beckwith’s
practice involves the application of the
tax laws to family and business financial
arrangements, including the preparation
of related documents to conserve and
transfer wealth, the administration of such
arrangements and the representation
of clients before legislative, judicial and
regulatory branches of government at
all levels. He lectures throughout the
United States and has written extensively,
including articles and speeches for the
American Law Institute / American Bar
Association Committee on Continuing
Professional Education and the Council on
Foundations.
In April, the committee’s speaker series
presentation will feature a mini mock trial,
building on the success of the mock trial
last year at Stevenson University. This year,
the committee will focus on a dialogue
between one attorney and one expert
witness. These two professionals will
cover best practices, tips and techniques
from both the plaintiff and defendant’s
perspectives. Committee members
anticipate a highly interactive program
with plenty of time for questions.
The mini mock trial will be held on
Tuesday, April 29 at the MACPA’s
Columbia Center.
On May 16, the committee will sponsor its
second annual FVS Conference at the BWI
Hilton. This year’s conference will feature
nationally recognized experts as well as
presentations from regional experts.
Committee members have been very
busy reaching out to the thought leaders
in FVS and are very excited that speakers
such as Michael Craine, James Hitchner,
Harold Martin, Michael Pellegrino, and
Ronald Seigneur have agreed to be part
of the conference. Members are planning
concurrent sessions offering content in
both the forensic and valuation disciplines.
By running concurrent sessions, we will
be able to tailor some sessions toward
professionals new to FVS as well as
sessions focused on more advanced skills.
In July, the committee is planning its
speaker series to focus on the role of
forensic accountants within the federal
government.
The committee has a very ambitious
year ahead and welcomes new members
at any time. If you are interested in
the committee or you would like more
information, please call De’Landa Sullivan
at (443) 632-2309.
35JANUARY 2014
Forens ic Va luat ion C O N F E R E N C E
D I G D E E P E R .S E E M O R E .
O F F E R C L A R I T Y.
May 16 | Event ID: 121013| Hilton Baltimore BWI Airport
macpa.org/forensicvaluation
Perpetuating your accounting practiceBY IRA S. ROSENBLOOM, CPA
PRACTICE MANAGEMENT
Accounting practices have always exceled
in dealing with change. Tax, regulatory,
technology, and accounting rules evolve
at a powerful pace, and accounting
practices seem to navigate their way
through these volatile changes, with a
great deal of success.
Given the demonstrated ability to
handle change, accounting firms should
be capable of implementing new and
more effective ways to perpetuate their
businesses as well.
The following are imperatives for
improving succession and continuity for
your firm:
EMBRACE NON-TRADITIONAL OWNERSHIP
Accounting firms typically look at
promoting their staff to partner or
shareholder, and allow them to own
a portion of the full firm. The goal of
being a partner is not as prevalent as the
profession requires, but the idea of being
challenged and helping clients still fuels
the commitment of many professionals.
Rather than presenting the goal of
becoming a partner, package the
ownership differently. Sell books of
business to the new / next generation,
with restrictions on their ability to service
the acquired books, should they leave
the firm before a certain period of time.
Another option is to have the ownership
in the book vest over a period of time.
Many effective players at CPA firms are
not always CPAs. Depending on the size
of your firm, you may have professionals
who concentrate on bookkeeping,
technology, marketing, sales, and internal
management, who excel in their roles
and are very entrepreneurial as well.
Accounting firms, like any other business,
are staffed with bright, talented individuals
who are excellent decision-makers. Do not
limit your definition of leadership to only
CPAs. Expand your view and allow your
non-traditional leaders to flourish in ways
that go beyond their daily role.
CONTINUALLY ENGINEER YOUR PRACTICE
Doing what you do best and what you
enjoy are crucial to optimizing the success
of your practice. Firms of all sizes should
define their “model client” and maximize
their “inventory.” A model client can
be defined based on varying criteria,
including degree of service, industry,
niche, geographic location, size of the
firm, nature of services, demographics,
and fees.
The model client should be reconsidered
every two years and will drive the
engineering and right-sizing of your firm.
Referral sources and staff should be well
informed about your firm, so they can
effectively contribute to the growth and
continuation of your practice, and ensure
that any new clients are the right fit as
well.
As you secure additional model clients, a
system needs to be in place for evaluating
the clients that are not meeting the
definition. Decisions then need to be
made as to which clients you retain and
which clients you dismiss, and how. Staff
generally has less tolerance for clients
who do not meet a particular profile,
or who agitate profusely. The more
model clients you acquire, the better the
propensity to secure the continuity of your
practice and the longevity of your staff.
USE INCENTIVE-BASED COMPENSATION
There are many entrepreneurial skills and
behaviors that are necessary to play a
leadership role at a CPA firm and manage
client relationships. Accountability
is vital in all businesses. Connecting
accountability with an incentive-based
compensation program will facilitate
entrepreneurial progress at both the
individual and team level. Goals for
engagement realization, turn-around
productivity timing, new business, total
production, and achieved hourly rates
are metrics that can be tracked and used
effectively in a bonus program.
In addition, staff should have two or three
professional advancement goals that also
can be measured. Succession of CPA firms
requires a number of different players,
especially entrepreneurs, at all levels.
CONTROL THE AGENDA
Accounting firm mergers, acquisitions,
and combinations are very common,
and the volume of these transactions
is projected to increase in the next few
years. The most advantageous practice
combinations are those driven by two
strong firms, which will become even
stronger by uniting. Profitability and
stability are very real factors, not just in
continuing the independence of your
practice, but in the combination process,
as well. The groundwork for every deal
is based on current profit and potential
profit, so the more you bring to the table,
the more substantial your portion.
STATEMENT36
The right deals are consummated
when the involved parties have a well-
developed visio and a priority for the
progress of their business, so that the
purpose for the alignment can be best
actualized. The agenda for pursuing a
combination may be best accomplished
by teaming with a comparable firm or a
firm that has differing but complementary
expertise.
For some firms, the timeline for the
next generation to take over is beyond
the preference of the current leaders.
These firms would be wise to take more
immediate steps to combine, so the
firms can jell quicker, and the future stars
can be retained and better developed.
The agenda for combining firms can be
compelling but should not be coerced.
Change will continue to be a constant
factor for accounting firms. Taking control
of the tides, reading the trends, and
pursuing bold approaches would be the
best kind of change for accounting firms
to orchestrate in order to perpetuate their
firms.
Ira S. Rosenbloom, CPA, is chief operating executive at Optimum Strategies, LLC (www.optimumstrategies.com), a consulting firm focused on helping small and medium-sized CPA firms enhance business performance, profitability, and foster practice continuity.
37JANUARY 2014
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MACPA.ORG/SUMMIT
Building relationships – and your business – with LinkedInBY JOE KOVACS, APR
PRACTICE MANAGEMENT
The accounting world is competitive and
can be even more challenging for CPAs
hoping to sell to strangers.
However, it is also true that individuals
use their emotions when making business
decisions. Developing new business
opportunities should include getting to
know decision-makers before they have to
hire accountants.
Relationship-building may seem tedious
to accountants who believe their expertise
is sufficiently well-known. But in today’s
era of social networking, competitors can
easily utilize online networks to “interfere”
with your reputation by getting in front of
clients and prospects.
In January 2013, LinkedIn reported
the number of users had surpassed
200 million. “LinkedIn has been the
most popular social media site among
accounting professionals according to
the results of our annual SocialCPAs
Social Media Survey,” explains Barry
MacQuarrie, CPA, who hosts an annual
survey for the accounting industry. “We
anticipate this trend will continue for
2013.”
With so many accountants online, those
responsible for developing business
should have a presence. Below are several
steps to show how to use LinkedIn to
build relationships.
SET GOALS
LinkedIn offers many features, but setting
a goal will help you determine which ones
to use.
When searching for new business, the
Advanced Search feature can help you
discover prospective clients that fit
predetermined demographics. Sarah
Johnson of Inovautus Consulting helps
her clients utilize LinkedIn as a “research”
tool to not only identify prospects but
utilize client connections to uncover
relationships, which can be leveraged for
new opportunities.
CREATE YOUR PROFILE AND BUILD A NETWORK
Visibility begins with your profile, and
LinkedIn lets you share such information
as a qualifications summary, work
experience, presentations, publications
and skills. It’s easy to feel overwhelmed
by everything you can include, but
some basic information will go a long
way toward letting others know who
you are. Don’t forget your photo, which
significantly increases the value of your
profile.
Building a LinkedIn network also means
you need to reach out. You can invite
individuals attached to your e-mail
accounts such as Outlook, Gmail or
Yahoo. Johnson believes most CPAs don’t
take full advantage of the opportunity to
make connections. In an audit of 200 CPA
firms, she finds that accountants have an
average of 199 connections. “This doesn’t
do full justice to the extent of their
networks,” she says.
Some users won’t engage strangers
online. Jack Craven, CPA, of MediaCPAs
(www.mediacpas.com) uses LinkedIn to
stay in touch with people he already
knows. When LinkedIn alerts him of a
friend’s new job or some personal event,
he will send a congratulations notice. One
acquaintance announced he was setting
up his own business. Jack reached out to
wish his friend well and ask if he needed
accounting assistance. Jack ended up
gaining a new client while supporting the
new venture.
BUILD TRUST BY SHARING VALUABLE RESOURCES
Sharing useful resources with your
network is critical to generating goodwill
and builds your reputation as a helpful
connection. This doesn’t mean posting
links to every article and blog post. The
strongest content will be useful to the
network while reflecting something about
you. Craven shares his own blog posts
and links to his electronic newsletters.
He achieves consistent visibility and his
network receives something helpful, which
reflects his business expertise.
LinkedIn publishes thought leadership
articles in a section called LinkedIn Today.
The topics range from accountancy to
business and management, all of which
are helpful. Be sure, though, to share
articles from other sources also to avoid
sharing the same insights as everyone
else. It takes time to find other blogs
and articles, but doing so increases the
chances you’ll find something valuable
your network hasn’t seen before.
PARTICIPATE IN GROUPS
LinkedIn groups provide an opportunity to
participate in conversations of interest to
a community of like-minded professionals.
STATEMENT40
Sharing your expertise by starting
discussions about challenging topics and
/ or by providing insights about them
demonstrates knowledge and increases
your familiarity within the group (including
among potential buyers). For the greatest
benefit, join groups that focus on areas
your firm serves, such as estate planning,
real estate or construction.
Anything you publish in a group may
also appear to your personal network.
Bill Sheridan, the MACPA’s chief
communications officer, posts news
articles from accounting publications
on the association’s LinkedIn group. His
personal network receives links to the
industry news while his group becomes
advertised as a forum to discuss issues
within the industry.
MOVE THE CONVERSATION FROM ONLINE TO OFFLINE
At a certain point, especially if your goal
is business development, you may want
to move a conversation offline. Meeting
someone in person after getting to know
them online can be done by inviting them
to a seminar you plan to host, offering a
free consultation or proposing a meeting
to introduce your contact to someone
with whom they might want to work.
Notice how these preliminary offline
encounters all provide something of value
to your LinkedIn contact.
The likelihood your contacts will engage
with you offline may depend on how well
you have accomplished at least some
of the steps articulated above. Sharing
content they post to their networks or
liking and commenting on their posts also
helps.
The purpose of this article is to
demonstrate one way to identify and
nurture new business leads. Selling tactics
don’t always make CPAs comfortable
but most companies need accounting
services, which means potential buyers will
at some point have to consider your firm’s
services. Strategically positioning yourself
online can lead to new opportunities.
In his book, To Sell is Human, Dan Pink
reminds us that we are all buyers and
consumers but that the era of the sleazy
car salesperson is over. The Internet
offers enough information to ward off
disingenuous sellers.
This digital age, however, provides a
platform for accountants to become
visible, known and trusted when someone
is searching for professional services. In
the 21st century, this is how buyers buy,
and LinkedIn is one of the hottest tools
available to get that visibility.
So what are you waiting for? Set up your profile and get going!
Joe Kovacs, APR is the director of marketing at Bethesda-based accounting firm Gelman, Rosenberg & Freedman CPAs.He sits on the board of directors of the Association for Accounting Marketing.
41JANUARY 2014
R. Frank Abel, CPA/CFF, CFE, an auditor
employed with the State of Maryland, has been
elected to serve as chairman of the Ritchie-
Jennings Scholarship Committee of the Association
of Certified Fraud Examiners. He also served as the emcee of
the ninth annual Shore Fraud Conference, sponsored by the
Franklin P. Perdue School of Business of Salisbury University.
Jovi B. Bohan, CPA, has been elected a director
of Invotex, a national accounting, financial, and
economic consulting firm. A member of the Invotex
litigation practice, Ms. Bohan provides expert
services in criminal and civil litigation matters.
Zachary Bromwell, CPA, has been promoted to supervisor in
the Audit, Accounting, and Consulting Department of Ellin &
Tucker, Chartered.
Lindsay Close, an MACPA CPA Candidate member, has been
promoted to senior accountant with Albright Crumbaker Moul
& Itell, LLC. She has been at the firm since October 2007 and
passed the CPA exam in December 2012.
John Comunale, CPA, of Councilor, Buchanan &
Mitchell, P.C., has been appointed to the Board
of the Catholic Business Network of Montgomery
County, an organization comprised of women
and men who strive to apply the principles of the
Roman Catholic faith to their daily lives in the marketplace.
Ryan Crabbs, CPA, has been promoted to supervisor with
DeLeon & Stang, CPAs. He is responsible for overseeing the
preparation of audit plans and audited financial statements.
S. Vincent Crescenzi, CPA, CVA, CFE, president
and managing partner with Councilor, Buchanan
& Mitchell, P.C., has been appointed to the office
of Treasurer of the Mental Health Association of
Montgomery County.
Diana DeWitt, CPA, CCIFP, has been promoted to principal
with Gross, Mendelsohn & Associates.
Aileen M. Eskildsen, CPA, a director and
professional development coordinator with Ellin
& Tucker, Chartered, has been appointed to the
Board of Trustees of The Legacy School located
in Eldersburg, a non-profit school that offers an
educational solution for students with language-based learning
disabilities.
Catharine Fairley, CPA, PFS, CFP®, CDFA™,
has started her own tax and planning practice,
Catharine Fairley CPA LLC, in Frederick, with an
emphasis on divorce planning and serving as a
financial neutral for collaborative divorces and
mediation.
Cara Farrell, CPA, a semi-senior accountant in the Audit and
Accounting Department at Gross, Mendelsohn & Associates,
P.A., has earned the CPA designation.
Brett Friedman, CFP®, an MACPA CPA
Candidate member who is in charge of the tax
and financial services departments of DeLeon
& Stang, CPAs, has been named to the Board
of Directors and Finance Committee of Arc
Montgomery County.
Elizabeth S. Gantnier, CPA, president of Stegman
& Company, has been appointed a member of
the American Institute of CPAs’ SEC Regulations
Committee as well as the AICPA’s Auditing
Standards Board for the 2013-14 volunteer service
year.
Dalbert B. Ginsberg, CPA, managing member of Ginsberg
Helfer & Boyd PLLC, has been elected to the board of
Georgetown University Hospital.
Jennifer Green, CPA, Jared Imhoff, CPA, and Rich Shank, CPA,
CMA, have been promoted to manager with Gross, Mendelsohn
& Associates. In addition, Jerry Housand (an MACPA CPA
Candidate member), David Leipnik, CPA, and Kaycia Rowe,
CPA, have been promoted to supervisor with the firm; Jennifer
Benward, CPA, and Tammy Lee, CPA, have been promoted
to senior accountant; and Shawn Burman (an MAPCA CPA
Candidate member), Carrie Letsch, CPA, and Todd Wilcom (an
NEWS & VIEWSMEMBER NOTES
STATEMENT42
MEMBER NOTES
BE THERE WHEN YOU CAN’T BE THEREMACPA offers over 400 webcasts a year.macpa.org/webcasts
STATEMENT44
MACPA CPA Candidate member) have been promoted to semi-
senior accountant.
Eddie Heppes, an MACPA CPA Candidate member, has
been promoted to in-charge with DeLeon & Stang, CPAs and
Advisors.
Brian Israel, CPA, has joined the Dixon Hughes Goodman DC
Metro Business Development team as business development
executive for the region.
Josephine Laleye, CPA, has been promoted to supervisor with
DeLeon & Stang, CPAs and Advisors.
Carrie Letsch, CPA, a semi-senior accountant in the Tax
Department of Gross, Mendelsohn & Associates, P.A., has
earned the CPA designation.
Frank Linardi Jr., CPA, has been promoted to
chief financial officer with Chesapeake Employers’
Insurance Company.
Jonathan Lovell, CPA, has joined the audit and accounting
team at Gross, Mendelsohn & Associates, P.A., as a manager.
Steven Manekin, CPA, director in the Audit, Accounting,
and Consulting Department at Ellin & Tucker, Chartered, has
become a member of the Equal Justice Council in Maryland.
Richard Neuman, CPA, a partner with Kahn, Berman, Solomon,
Taibel & Mogol, P.A., in Timonium, has been elected treasurer of
the Maryland State Funeral Supplies Association.
W. Andrew Powell, CPA, a partner with Halt, Buzas & Powell,
Ltd., has been named one of this year’s Power Players by
SmartCEO Magazine. The Power Players Awards recognize
60 top attorneys, bankers and CPAs in Greater Washington.
These professionals, practicing in corporate firms, private
industry, government and education, embody leadership,
accomplishment, innovation and success.
Lutamila Sallu, CPA, CMA, CFM, CFE, CIA, FRM, has been
promoted to senior manager and quality reviewer in the Audit
and Assurance Services Department at DeLeon & Stang, CPAs
and Advisors.
Nina I. Scherr, CPA, has been named a principal with Hertzbach
& Company, P.A.
Dalton A. Tong, MBA, CPA, CGMA, FACHE, FHFMA, executive
in residence and director of the accounting honors program
at the University of Baltimore, led a group of accounting
honors students from the University of Baltimore and Ohio
State University to the annual meeting of the International
Accounting Standards Board (IASB) in London. Mr. Tong and
the students were invited by the IASB to sit in as guests of its
deliberations, and to observe the standard-setting process as
it evolved. While there, a similar invitation was made to the
group to visit with famed professor Richard Barker of Oxford
University, where they presented research papers they had been
working on that addressed contemporary issues on the IASB’s
agenda. Accompanying Tong were two other faculty members:
Dr. Jan Williams, CPA, associate professor of accounting at
the University of Baltimore; and Dr. Tzachi Zach of Ohio State
University.
Lisa D. Wenger, CPA, has been promoted to supervisor with
Albright Crumbaker Moul & Itell, LLC.
George Whitehouse, CPA, executive vice
president for Payroll Network, has been
appointed to the Maryland Commission to Study
the Regulation of Payroll Services. He joins
the statewide commission as a designee of the
Maryland Chamber of Commerce.
Arnold Williams, CPA, a partner with Abrams, Foster, Nole,
& Williams, PA, has been honored with the Whitney Young Jr.
Service Award by the Baltimore Area Council of Boy Scouts of
America.
Lansing Williams, CPA, an assistant professor
of business management at Washington
College and advisor to the highly successful
Enactus team on campus, has been named
to the Enactus United States Faculty Advisory
Committee. As one of 25 advisors, he will offer his expertise to
enhance the programs and practices of the international non-
profit organization, which encourages college students to use
the power of entrepreneurial action and business concepts to
improve the quality of life for people in need.
Jeff W. Wilson II, CPA, a sole practitioner in Clinton, has
graduated from the AICPA’s 2013 Leadership Academy. Thirty-
seven rising stars in the profession learned to apply cutting-
edge leadership theory to handle complex management
challenges during the intensive four-day program in Durham,
N.C.
macpa.org/premiumlearning
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STATEMENT46
CohnReznick LLP, the 11th largest accounting, tax, and
advisory firm in the U.S., is pleased to announce that it has been
selected as one of The Baltimore Sun Top Workplaces. The Top
Workplaces are determined based solely on employee feedback.
The employee survey is conducted by WorkplaceDynamics, LLP,
a leading research firm on organizational health and employee
engagement. CohnReznick is among the 100 companies named
to the list.
Councilor, Buchanan & Mitchell, P.C., has redesigned and
launched its new website at www.cbmcpa.com.
DeLeon & Stang, CPAs and Advisors and Glen Todd &
Company, P.C., have announced plans for a merger. Effective
Dec. 1, 2013, Glen Todd & Company is now recognized as
DeLeon & Stang. Clients will be served in DeLeon & Stang’s
Gaithersburg office.
Ginsberg Helfer & Boyd, PLLC has relocated to 1850 K Street,
NW, Washington, DC.
Hertzbach & Company, P.A, is celebrating its 65th anniversary.
The festivities to commemorate the occasion took place on
Oct. 3 in Washington, D.C. The firm will make a donation to the
Capital Area Food Bank in honor of the occasion.
Rowles & Company, LLP, is relocating. The firm’s new address is
8100 Sandpiper Circle, Suite 308, Baltimore.
Smith Elliott Kearns & Company, LLC, has opened a new office
in Camp Hill, Pa.
Wilner & Scherr, P.A., has joined Hertzbach & Company, P.A.
Nina Scherr, CPA, joins the firm as a principal.
NEWS & VIEWSFIRM NOTES
MEMORIAMAlexander R. “Ruffie” Holmes, CPA, a life member
of the MACPA, died on Nov. 17, 2013. Mr. Holmes
was an MACPA member for 64 years. He was
an accountant at Haskins and Sells, a national
accounting firm, and later became treasurer of the
old Church Home and Hospital in East Baltimore.
Earlene Marshall Seidel, CPA, died on Nov. 6, 2013
at her home. Ms. Seidel owned and operated her
own accounting practice for more than 35 years. She
was a member of the MACPA for more than 30 years.
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GROW UP.But not too much.Young CPAs connect at MACPA’sNew Young Professionals Network
macpa.org/NYPN
Thank you to all who attended NYPN’s recent networking happy
hours. We hope everyone had an enjoyable holiday and we wish
you well during this coming busy season.
The committee met on Oct. 17 for the Fall Happy Hour in
Timonium at Hightopps Backstage Grille. Two Winter Happy
Hours were held on Dec. 12 and 19 at Liberatores in White
Marsh and Miller’s Ale House in Rockville. Thank you to everyone
who contributed to the holiday toy drive, and congratulations to
our Ugly Sweater Contest winners who received gift card prizes.
On Nov. 4, the MACPA held the Newly Licensed CPAs Swearing-
In Ceremony and Reception at the Hilton Baltimore BWI Airport
in Linthicum. This celebratory occasion included speeches from
distinguished individuals within the profession such as AICPA
President and CEO Barry Melancon; acting Commissioner of
Occupational and Professional Licensing Michael Vorgetts;
BLI CEO and founder and MACPA CEO Tom hood; CEO and
co-founder of Simplified Innovation and MACPA Chair Byron
Patrick; and President and Director of Quality Control at
Stegman & Company and BLI thought leader Liz Gantnier. The
evening concluded with more than 60 new Maryland CPAs being
sworn in while their friends, families, and colleagues cheered
them on. We congratulate and welcome all newly licensed CPAs
to the profession! NYPN was on hand at this event to promote
the committee and welcome new members.
The NYPN board is meeting this month to discuss 2014’s NYPN
events. Announcements will be made soon (via NYPN’s social
media pages and the NYPN E-ssentials newsletter) regarding
a Junior Achievement Bowlathon, the 2014 Generational
Symposium, post-tax season Spring Happy Hours, and much
more!
Visit the NYPN webpage at MACPA.org/NYPN.
NYPN is also on Facebook, Twitter, and Linkedin.
NYPN NEWS
GET TO KNOW OUR NYPN ADVISORY BOARD AND FIND OUT FIRST-HAND WHAT WE’RE ALL ABOUT:
Chair: Nick Hollander, L&H Business Consulting: [email protected]
Vice chair / chair-elect: Debra Hale, Weil, Akman, Baylin & Coleman, P.A.: [email protected]
Secretary / treasurer: Stephen Hohne, Hertzbach & Company: [email protected]
Past chair: Jeff Klima, SC&H: [email protected]
LEADERSHIP BOARD
Activities / professional development chair: Jennie Hammett, Gorfine, Schiller & Gardyn: [email protected]
Public Relations / outreach chair: Barrett Young, The Green Abacus: [email protected]
At-large member: Kuo Lee, KSL LLC: [email protected]
At-large member: Harry Sturgis, Weyrich, Cronin & Sorra Chtd.: [email protected]
• JA BIZTOWN – MAY 15, 2014, Junior Achievement (JA) of Central Maryland, Owings Mills
Join NYPN and volunteer at this structured program that teaches financial literacy to fourth- and fifth-graders. This
program encourages students to learn about the free enterprise system by running a simulated town economy for
a day and realizing the relationship between what they learn in school and how it applies to the real world of work.
Come make a difference in your community by signing up for JA BizTown (email [email protected]).
NYPN is an organization committed to connecting new / young professionals to the MACPA, protecting the integrity of the
profession, and helping new CPAs and CPA candidates achieve their goals. NYPN is a place where new CPA professionals can make
contacts in the profession, get involved in the community and get the support they need to be successful. The requirements to be a
part of NYPN are CPA candidates (working on or having achieved the 150-hour threshold) or current CPAs under the age of 40 and/
or licensed for fewer than five years.
1. Camaraderie 6. Commitment2. Insight 7. Charity3. Professionalism 8. Community4. Development 9. Responsibility5. Growth 10. FUN!
What is NYPN?
Get involved
You’re invited
TOP 10 REASONS TO GET INVOLVED:
49JANUARY 2014
ANNE ARUNDEL COUNTY
BEVERLY R. BEATTY, CPA
ROBERT E. BEATTY, CPA, MBA
BETSY J. BYRNE, CPA
MONIKA GAJDA, CPA
PEG C. HANNA, CPA
SUSAN M. KENNEDY, CPA
JOSEPH S. KINSLOW, CPA, MBA
JESSICA J. LUND, CPA
SHERYL E. OSTRYE, CPA
GAIL L. RAND, CPA
MATTHEW B. SHERMAN, CPA, MAC
IRENE B. ST CROIX, CPA, MBA, CIA
ARTHUR G. SVRJCEK, CPA
ELIZABETH L. TAFOYA, CPA
JOY P. TOEWS, CPA
CAPITAL AREA CHAPTER
VAIDA BUTKUTE, CPA
LAVINA CHAWLA, CPA
VARUN K. CHAWLA, CPA
SORY A. DAVIS, CPA
ROBERT M. FIRST, CPA, MBA, CFP, MST
ALEJANDRO GONZALEZ, CPA
CHRISTOPHER GRIFFIN, CPA
NANCY A. GUERRA, CPA
JIARONG GUO, CPA
ROBERT J. KELLY JR., CPA, MST
KEHINDE KOLAWOLE, CPA
ROY G. LAYNE, CPA
STEPHEN H. LEVIN, CPA
CAITLIN H. MIGLIORINI, CPA
OLUMIDE O. ODESINA, CPA
JENNIFER A. SHEPHERD, CPA
ALLISON H. SHIN, CPA
TODD A. STOKES, CPA
PATRICIA B. TAYLOR, CPA, CFE, CGMA
VANESSA C. TEITELBAUM, CPA
RAMI ZACKARIA, CPA
CENTRAL MARYLAND CHAPTER
CINDY C. ALLISON, CPA
LANA A. BADER MS., CPA
THOMAS J. BARNICKEL III, CPA
TIMOTHY S. BONIFACE, CPA
KEVIN BOSKIN, CPA
JOHN N. BOSLEY, CPA
CHARALAMBOS L. CHARALAMBOUS, CPA
JASON C. CHERUBINI, CPA
JOHN C. COPPOLA, CPA, MBA
BEVERLY DAVIS, CPA
REBECCA DEL BOVE, CPA
JON-MICHAEL W. DOLLER, CPA
JAMES A. ELDER, CPA
CARA L. FARRELL, CPA
MEGAN E. FARRELL, CPA
BRADLEY C. HAROLDSON, CPA
JEAN-ELIZABETH N. HUBBARD, CPA, MBA
JESSICA L. KAUFMAN, CPA
MANOJ KUMAR, CPA
KIMBERLY A. LAKIN, CPA
FREDRIC D. LEFFLER, CPA, JD, LLM, MBA
JOSE G. LOPEZ, CPA
JILLIAN MANNING, CPA
KATHERINE E. MARSHALL, CPA
ROBERT W. MARTAK JR, CPA
WILLIAM H. MARTIN, CPA
TARA V. MCGRATH, CPA
ROBERT J. MILES, CPA, CSEP
MEGAN E. MILLER, CPA
FAHAD Y. NAROO, CPA
ANDREW J. PARKER, CPA
MARIAN E. ROBINSON, CPA
RUSTIN A. ROSENBERGER, CPA
KEVIN E. SHAFFER, CPA
MICHELE N. STRONG, CPA
KEITH M. SWEETMAN, CPA
LINDSAY B. TAYLOR, CPA
EMILY A. UPDEGRAFF, CPA
VICKY WANG, CPA
ALLISON B. WARDENFELT, CPA
JANESSA L. WOLF, CPA
MINYIN XIE, CPA
KEVIN R. ZGORSKI, CPA
EASTERN SHORE
MARK A. REYNOLDS, CPA
SALLY M. WADE, CPA
MID-MARYLAND CHAPTER
ARTHUR C. BROCK, CPA
AMY NEWTON, CPA
JUSTIN PARK, CPA
TINA M. SEYMOUR, CPA
KATHLEEN S. ZIMMERMAN, CPA
OUT OF STATE
CYNTHIA L. BREINER, CPA
ALICE E. DRAGOON-ENGLISH, CPA
RYAN C. JOHNSON, CPA
JASON R. KING, CPA
THOMAS D. LEE, CPA
BRIAN S. OGRADY, CPA
JAMES T. RACKSON II, CPA
MATTHEW R. RAGER, CPA
JEFFREY S. ROSSER, CPA
KELLY A. WHELAN, CPA
ANNE ARUNDEL COUNTY
WHITNEY FLANARY
JAMES J. GIBBONS
JOSHUA PRICE
KELLY J. WINSLOW
CAPITAL AREA CHAPTER
NICHOLAS J. COVATTO
JENIFER B. FLYNN
CHANCHAL K. GOENKA, MBA
DANIEL GYIMAH
ANNA HAIRUMIAN
RUFUS M. JUDD III
ATHENA LIM
VILMA A. LUGO
ROBIN H. NGO
GIDEON D. OSEI
MD SAYEM SHARIF
JACQUELINE VASQUEZ
XUEYANG WANG
GE XU
LAILA M. YATES
CENTRAL MARYLAND CHAPTER
TORI J. CORKRAN, MBA
TAD D. EDWARDS
LINA H. HESTER
HEATHER A. HORST
CHARLES IMHOFF III
MATTHEW S. KEADLE
SABRINA M. KNOTT
STEPHANIE A. LACINY
ZACHARY MAINSTAIN
ATEFEH NASSERI ASL
JAMES E. PIERCE III
JAMIE M. SHRYOCK
TARA STRADLING
TREVON TILLMAN
EASTERN SHORE
STEPHANIE K. SHENTON
MID-MARYLAND
BRIDGETTE A. BENOIT
MARK COUNSELMAN
VICTOR MARWA
SOUTHERN MARYLAND
RACHAEL J. DURNBAUGH
NARVA N. THOMPSON II
KIMBERLY A. WHEELER
OUT OF STATE
RYAN B. PAUL
MATTHEW X. RYAN, CFE
WELCOME, NEW & REINSTATED MACPA MEMBERS!
WELCOME, NEW CPA CANDIDATE MEMBERS!
MEMBER SERVICES
STATEMENT50
MEMBER SERVICES
QUALITY CPA FIRM WISHES TO ACQUIRE PRACTICE OR ACCOUNTS in Baltimore/Washington/
Annapolis area, or possible association with retirement-minded
practitioner. “Top Dollar Paid.” Reply in strictest confidence to
410.539.7100, or File No. 63-87.
THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of tax and
accounting practices in North America. We have a large pool
of buyers, both individuals and firms, looking for practices to
purchase. We also have the experience to help you find the
right fit for your firm, negotiate the best price and terms and
get the deal done. We welcome the opportunity to talk to
you about our risk-free and confidential services. For more
information please call Bradley Holmes with the APS Holmes
Group at 1-800-397-0249 or email [email protected].
INTERESTED IN BUYING A PRACTICE? See
local and nationwide listings at www.AccountingPracticeSales.
com and register for free email updates or call us at 1-800-397-
0249.
office space
SEMI-RETIRED CPA WITH THOUGHTS OF RETIRING LOOKING FOR SPACE TO SHARE
with active firm. Interested parties please refer to File 10-1-13.
THE BALTIMORE MUNICIPAL GOLF CORPORATION (BMGC) IS SEEKING A DIRECTOR OF FINANCE Education and/or Experience:
- Bachelor’s degree from four-year college or university; Master’s
degree preferred with concentration in business or administration
with major or minor and coursework in financial analysis and
auditing;
- Ten years of professional accounting experience with at least
five of those years in a senior financial position such as CFO or
Director of Finance;
mergers & acquisitions- Experience supervising office staff (currently 1 Full-Time and
2 Part-Time);
- Experience overseeing information technology operation
preferred.
Licenses and Special Requirements:
- Certified Public Accountant (CPA) license preferred;
- Familiarity with the game of golf preferred.
The link to the complete job posting is here: http://www.
bmgcgolf.com/layout9.asp?id=502&page=85633.
Salary based on experience. Compensation includes benefit
package of health insurance, 401(k) plan, vacation, golf
privileges, etc.
Please send a cover letter and resume with salary history to
ACCOUNTANT/CPA: Medium sized local CPA firm
in the Pikesville area is seeking an experienced (2-5) years
Accountant in all phases of servicing a diverse group of small
and medium sized clients. The Firm offers a full range of
benefits and our competitive salary is commensurate with
qualifications and experience. Please e-mail your resume to
[email protected], or mail your resume to Katz & Associates,
P.A., 1777 Reisterstown Road, Suite 40, Baltimore, MD 21208.
TAX PROFESSIONAL FOR BUSY SEASON Kenneally & Company, a progressive, medium-size, Towson
CPA firm of highly motivated professionals, seeks like-minded
individuals capable of individual and/or business tax return
preparation. Familiarity with ProSystem fx is a plus. Flexible
hours, incentive compensation and a pleasant working
environment are just a few of our benefits. Forward your
resume via e-mail to [email protected], or via fax
(410) 321-9809.
SENIOR TAX MANAGERIn this leadership role, you will have the opportunity to utilize
your technical tax, analytical, operational, management, and
client service skills by:
• Serving as client’s trusted advisor, demonstrating knowledge
of industry trends, identifying client issues and conflicts;
proactively communicating solution options to client and team
• Reviewing complex tax returns including federal and multi-
state returns for C Corporations, S corporations, partnerships,
high net worth individuals, trusts & estates, and foundations
CLASSIFIEDS
job openings
CONTINUED ON PAGE 52
CLASSIFIEDS
STATEMENT52
Managing staff on deliverables (such as tax returns, work papers,
etc.); completing technical and strategic reviews as a member of
the final review team to ensure standards are met, and ensure
on-time delivery and on budget
• Demonstrating proficient technical skills for handling all client
responsibilities, including knowledge of trends, industries,
alternatives, etc.
• Understanding the client’s organization; discussing strategic
opportunities under consideration, or challenges being faced
• Understanding your clients’ goals and needs and servicing
clients directly
• Owning client relationships and work
• Strategizing with Management / Leadership regarding tax
planning
• Providing clients with recommendations and guidance on how
to achieve their goals and assisting in identifying opportunities
for growth with clients
• Researching tax issues and providing guidance to clients
• Working closely with staff, and assisting senior management in
mentoring, coaching, training, supervising, and evaluating staff
• Fostering a team environment; demonstrating support of
management and decisions, and building a positive culture
• Participating in practice development activities that lead to
the generation of new business and the opportunities for cross-
selling
Desired Skills and Experience
• Successful candidates will have an entrepreneurial spirit, strong
technical and management skills, in addition to:
• Master’s degree preferred in Taxation
• 8 years technical tax experience with a public accounting firm
• Specific technical experience in one of the following areas:
Foreign transactions, Estate and Gifts, Trusts or Merger and
Acquisitions
• Must have active CPA
• Ability to manage all aspects of client engagements
• Demonstrated ability to communicate verbally and in writing
throughout all levels of organization, both internally and
externally
• Demonstrated leadership and supervisory ability, strong
operational and project management skills
• Proficient use of applicable technology
TAX STAFF• 1-4 years tax public accounting experience
• Bachelor’s Degree in Accounting
• CPA or CPA candidate
• CCH Pro System software experience a plus
Company Information
E. Cohen and Company, CPAs is a full-service accounting firm
specializing in Tax Planning and Compliance, Tax Preparation,
Audits/Reviews/Compilations, Accounting Services, and
Business Advisory Services to Government Contractors,
Non-Profit organizations, Entrepreneurial and Middle-Market
businesses, Professional Athletes and Managers, and High-Net
Worth individuals and their families.
Located in Rockville, MD, and dedicated to customized
client service, we have a 95% client retention rate. Our
Firm has been voted “Best Accounting Firm to Work For”
by Accounting Today Magazine, five years in a row and
counting.
Each year, SmartCEO Magazine readers pick the area’s top
accountants who exemplify their roles as trusted advisor,
innovator and leader; and six of our firm’s accountants have
won the recognition of the Washington, D.C. region’s top
business executives in the SmartCEO Magazine SmartCPA
Readers’ Choice section in 2012.
We care a great deal about our clients and helping them
succeed in solving some of their toughest problems. Due
to our growth, we are looking for a Senior Tax Manager. We
are a Firm that aspires to excellence, a trusted partner who
is continuously learning -- we always want to be our best
and hold ourselves accountable to consistently develop our
breadth of knowledge and to treat others with respect.
If you are someone who wants to work hard, be rewarded for
being your best, and bring your best - every day - consider
applying. [email protected] | 301-917-6200.
CLASSIFIEDS
WANT TO SUBMIT A CLASSIFIED AD?To submit a classified ad, please visit macpa.org/submitclassifieds, or contact Amy Moran at 443.632.2319, or by email [email protected].
CONFIDENTIAL ADS: Replies to confidential ads will be addressed to the file number in care of:Amy Moran MACPA901 Dulaney Valley Road, Suite 710Towson, MD 21204
• Project / Task Management
• New Business Development
• Recruitment
• Staff Management and Development
• Specific duties include:
• Research tax issues and filing requirement that affect tax
compliance.
• Prepare and review tax returns and ensure accuracy and
completeness.
• Research complex tax issues using the Internal Revenue
Code, treasury regulations and other relevant authorities.
• Draft tax technical memorandums.
• Accept responsibility for, and complete tasked assigned by
McQuadeBrennan management in a timely fashion.
• Manage multiple client projects at any given time.
• Forward your resume to: humanresources@
mcquadebrennan.com.
TAX PROFESSIONAL NEEDED FOR BUSY SEASON: Schneider & Associates LLC a downtown Bethesda CPA firm
is looking for a tax preparer to work our busy season. The
person would prepare individual and trust income tax returns.
Prosystem experience is a plus. Please forward your resume to
[email protected], or fax to (301)-654-4685.
ACCOUNTANT- ROCKVILLE CPA FIRM SEEKS CPA with 8 years recent public accounting
experience to work part-time. Individual will prepare individual,
nonprofit and fiduciary income tax returns. Experience with
UltraTax CS & QuickBooks a plus. This is a permanent part-time
position with flexible hours. Please send resume to monteloeb@
mloebandassoc.com.
RETIRED? LOOKING FOR SOMETHING TO DO? Acuity Capital Network is seeking a retired CPA to help
introduce its revenue generating program to CPA firms in the
Baltimore area. Attractive compensation program available.
Acuity’s program, developed by a former Executive Office
partner of Deloitte, helps CPA firms increase revenue by helping
them add two new practice segments: Comprehensive Exit
Planning and M&A Intermediary Services. Acuity provides
Administrative, Marketing and Hands-On Operational Support to
make sure these practice segments are successful.
Contact Robert J. Jirovec, CPA, rjirovec@acuitycapitalnetwork.
com, (702) 493-6911, www.acuitycapitalnetwork.com.
TAX PROFESSIONALS: McQuadeBrennan, located in
downtown Washington, DC, has opportunities for experienced
tax professionals. Our client executives work closely with
our individual and business clients in all phases of each tax
engagement. Candidates will have direct client contact and
need excellent communications skills. Recent public accounting
experience a plus.
Primary responsibilities include:
• Tax Compliance
• Tax Consulting
53JANUARY 2014
MARYLAND ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTSDulaney Center II | 901 Dulaney Valley Road, Suite 710Towson, MD 21204 | www.macpa.org410. 296.6250 | Fax: 410.296.8713
The CPA Event of the year.
6.16.2014
INNOVATION SUMMIT
EVENT ID: 191008 | HYATT REGENCY INNER HARBOR
MACPA.ORG/SUMMIT
