Reporting Foreign Assets

IRS Schedule C Letters

Circular 230 Hot Buttons

Members Make Legislative Contacts

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3March/April 2016 | California Enrolled Agent

President’s Message

A

TABLE of CONTENTSMarch/April 2016 • VOLUME XXXIX • NUMBER 5

s I write this article, we are just getting ready for tax season. Having come from the CSEA January Board and commit-tee meetings, I’ve had time to refl ect on the blessings of belonging to CSEA, our professional association.

As tax professionals, we practice in an environment of very complex law and procedure combined with a challenging business climate. We need the guidance and support that a professional association gives us. At CSEA, Enrolled Agents work on behalf of the Enrolled Agent profession.

CSEA is the only professional associa-tion in California that advocates on behalf of California Enrolled Agents. CSEA has developed very benefi cial relationships with the Internal Revenue Service, the Franchise Tax Board, the Board of Equalization and the Employment De-velopment Department. Through these relationships, CSEA has been able to promote eff ective tax administration and bring our Members’ voices and con-cerns to these agencies to eff ect change when needed. No other professional tax organization in California has developed such advantageous relationships with the taxing agencies.

CSEA Members reap the benefi ts of membership on three diff erent levels. When we join CSEA, we gain the advantages of a statewide association. CSEA off ers a broad selection of education venues tailored for California tax profes-sionals, including virtual classes such as digiTAX, the annual Super Seminars in Las Vegas and Reno, federal and state tax updates, and the State Tax Agencies Liaison Meeting, just to name a few!

California

Enrolled Agent

3200 Ramos Circle, Sacramento, CA 95827-2513Telephone: 916/366-6646, Fax: 916/366-6674Toll Free: 800/777-2732Email: info@csea.org, Website: www.csea.orgSubscription rate: $75.00 per year

Editor/Publisher Scarlett D. Vanyi, CAEExecutive Editor Leslie CainManaging Editor Jana PerinchiefMagazine Layout Kate Cook Design

California Enrolled Agent (ISSN 1086-5012) is published bi-monthly by the California Society of Enrolled Agents, Inc. Offi ces are located at 3200 Ramos Circle, Sacramento, California 95827-2513.

© 2016 California Society of Enrolled Agents (CSEA). All rights reserved. No part of this publication may be reproduced by any me-chanical, photographic or electronic process, nor may it be stored in a retrieval system, transmitted or otherwise copied (except CSEA Members may copy all or part of this publication exclusively for personal use or use in the operation of that Member’s tax industry business other than a publication) without prior written permission from the publisher. For permission to make photocopies, contact CSEA at info@csea.org. We SpEAk Tax, Super Seminar, CSTAR and The Tax Boat are registered service marks of CSEA. Unauthorized use is forbidden.

Your comments and suggestions are invited. We reserve the right to edit articles for length and clarity. The editorial contents of this publication are educational and informational in nature, and not intended as minimum standards, or legal or other professional advice. CSEA has endeavored to include appropriate and accurate statements, but disclaims any and all warranties and/or responsibility for the statements or their application. Users should confer with their professional advisers for specifi c input and assistance concerning their respective projects. Any expressions of opinion or perspective by authors of articles included in this publication are not necessarily those of CSEA. CSEA is an Affi liate of the National Association of Enrolled Agents (NAEA).

continued on p. 4

The SocietyPresident’s Message .......................................3-4

OCEA Members Honored .................................4

Circular 230 Hot Buttons ..............................5-6

AdvocacyCSEA Advocacy Eff orts Paying Off ............7-8

Members Make Legislative Contacts ...........9

Jim Stern Legislative Day 2016 .............10-11

FeaturesTop Reasons to Attend Super Seminar .....12

Super Seminar 2016 .........................................13

Reporting Foreign Assets Collection Information .............................14-15

IRS Letters to Request Schedule C Improvements .....................16-17

In Memoriam .......................................................17

MembersVolunteering - Who Benefi ts? .......................18

Volunteer at Super Seminar 2016 ...............19

Baseball and BBQ ........................................... 19

Attending CSEA Meetings ......................20-21

Integrity and Transparency ....................22-23

CSEA Schedule of Events ................................23

Marketing Our Members ................................24

Capitalize on Your Member Benefi ts .........25

Annual Membership Dues Notice ..............25

Member Classifi ed Ads ....................................25

Members Get 15% Off on All EA Merchandise ....................................26

Welcome New Members ................................27

CSEA Member Discout Program .................28

Reference MaterialOrder 2016 Tax Guides Now ..........................29

Quickfi nder Handbooks .................................30

The Tax Book ........................................................31

CSEA, Your Professional Association

4 March/April 2016 | California Enrolled Agent

The Society

continued from p. 3

As Enrolled Agents, we need the best in tax education. Our 2016 Super Seminars, with up to 25 hours of continu-ing education in three days, are geared to the high-level tax professional. These annual events take an enormous amount of planning from our exceptional staff and the very dedicated group of volunteers from the CSEA Education and Chapter Development Committee.

This year’s Super Seminars will offer exciting new social events, new ways to access your session materials, and new ways to engage with exhibitors. Did you know you can register for Super Seminar now and choose your classes onsite? If you haven’t already registered, I hope you will sign up now! CSEA education is geared for Enrolled Agents. Get the best in education while keeping your education dollars in your association.

Our national association, NAEA, provides a wide variety of excellent professional tools that you’ll find useful in your tax practice, such as customizable newsletters that help you keep in touch with clients, engagement and disclosure letters for your tax practice, and sample letters to promote yourself and your profession within your local community. NAEA also advocates strongly with federal legislators and tax agencies on behalf of Members and the Enrolled Agent profession.

CSEA Members are served locally at our 19 Chapters throughout California. Our Members face challenges that are complex and constantly evolving, and many Members feel that the ability to network and get support and feedback

from their peers at Chapter dinners and education events is the most valuable benefit of membership.

The resources we have as CSEA Members is quite exten-sive. Whether you’re facing a perplexing tax situation that has you stumped, a tricky ethics question that has you in a quandary, or you’ve hit a wall in your interactions with one of the taxing agencies, CSEA can help make your life just a little bit easier. I just reread the article entitled “Lighten Your Load” by CSEA Executive Vice President Scarlett Vanyi, CAE, published in the March/April 2014 issue of California Enrolled Agent magazine. This piece is loaded with tips and resources that will really help during this tax season. I strongly recom-mend you read this again.

The true benefit of being a CSEA Member is the opportu-nity to work with other Enrolled Agents on matters that affect all of us, and the ability to discuss issues with other Enrolled Agents. As a CSEA Member, you belong to an association that truly supports you in your profession.

Douglas Pickford, EACSEA President

OCEA Members Honored SEA President Doug Pickford, EA bestowed Letters

of Commendation on five Members of the Orange County Chapter of Enrolled Agents (OCEA) during the December 2015 OCEA Dinner Meeting at the Phoenix Club in Anaheim. Five OCEA Members were honored:

Donna Miller, EADale Quelle, EAJohn Rumbold, EABill Stewart, EAPatricia Yeckel, EA

CSEA congratulates these dedicated Members for their well-deserved recognition!

Click here to learn more about Letters of Commenda-tion and other CSEA awards. OCEA Member Patricia Yeckel, EA proudly receives her Letter

of Commendation from CSEA President Doug Pickford, EA.

C

5March/April 2016 | California Enrolled Agent

The Society

EVP PerspectivesCircular 230 Hot Buttons

By Scarlett D. Vanyi, CAE

A s any Enrolled Agent knows, U.S. Treasury Department Circular No. 230, Regulations Governing Practice before the Internal Revenue Service is the guiding light for all conscientious tax practitioners. Originally adopted in 1921 and last revised on June 12, 2014, iconic Circular 230 outlines (1) authority to practice, (2) duties and restrictions relating to practice, (3) sanctions for violations and (4) disciplinary procedures.

While the Internal Revenue Service’s Return Preparer Office (RPO) is tasked with general tax preparer oversight, the Office of Professional Responsibility (OPR) is tasked with exclusive authority for disciplinary proceedings and sanctions. OPR’s authority extends to practice standards oversight, independent investigations, proposing and negotiating discipline and administrative hearings and appeals.

It should be noted that the term “practice” does not refer to mere tax return preparation; rather, it refers to all matters connected with a presentation to the IRS relating to a taxpayer’s rights, privileges, or liabilities under laws or regulations administered by the IRS. It also relates to prepar-ing or filing documents, corresponding and communicating with the IRS, rendering written advice, and representing a client at conferences, hearings and meetings.

OPR receives referrals for disciplinary consideration in a number of ways, but most commonly through IRS field staff who are required to report any situation that appears to be in violation of statute or regulation. If and when OPR comes knocking on your door, you will want to take comfort in the fact that you understand your legal obligations as outlined in Circular 230 and other authoritative documents. You will certainly be glad you spent the time to familiarize yourself with your obligations and to implement protocols in your practice to ensure you are in compliance.

During an October 2014 IRS webinar, then OPR Director Karen Hawkins outlined a number of key provisions in Circular 230 that practitioners should become intimately acquainted with, including the following “hot buttons”:

Diligence as to Accuracy (§ 10.22) This section states that practitioners must exercise due diligence in preparing, approving and filing tax returns, documents, affidavits and the like relating to IRS matters. Tax practitioners are also responsible for due diligence in determining correctness of oral and written representations made to the client or to Treasury personnel.

If the practitioner is relying on another’s work product, they must exercise reasonable care in doing so.

Due Diligence Standards for Tax Returns (§ 10.34(a)) Circular 230 also specifies that a practitioner may not sign a tax return or advise a position on a tax return, willfully, recklessly, or through gross incompetence if it lacks rea-sonable basis, is an unreasonable position (6694(a)(2)), is a willful attempt to understate liability (6694(b)(2)(A)), or is a reckless, intentional disregard of rules and regulations (6694(b)(2)(B)).

Due Diligence Standards for Documents and Other Papers (§ 10.34(b)) Likewise, a practitioner may not advise taking positions that are frivolous and may not advise submis-sions to delay or impede tax administration that are frivolous, or that contain or omit information that demonstrates an intentional disregard of rules or regulations.

Penalties and Client Reliance (§ 10.34(c),(d)) Regula-tions also dictate that practitioners must advise their clients of potential penalties and their avoidance through disclosure (10.34(c)). And while practitioners may rely on client informa-tion in good faith without verification, a practitioner cannot ignore implications of other information furnished, cannot ignore their actual knowledge about the situation, and must make reasonable inquiries for incorrect, inconsistent or in-complete information (10.34(d)). Finally, practitioners cannot be “willfully blind” to information presented by a client.

Negotiation of Taxpayer Checks (§ 10.31) It is a violation to endorse, negotiate, or direct any U.S. Treasury check written in another’s name, including cashing the check, endorsing it, depositing it into a controlled account, or splitting electronic transfers, even with the client’s concurrence, and IRC 6695(f ) imposes a penalty for such violations.

Giving False or Misleading Information (§ 10.51(a)(4)) Practitioners are prohibited from participating in any way in the giving of false or misleading information to the Treasury Department including testimony, tax returns, financial state-ments, applications, affidavits, declarations, and any other document or written or oral statement.

Willfully Assisting, Counseling or Encouraging a Client to Evade Taxes (§ 10.51(a)(7)) It is considered disreputable conduct to willfully assist, counsel, encourage, or suggest to a client or prospective client an illegal plan to evade federal taxes or payment thereof or violate any federal tax law.

continued on p. 6

The Society

6 March/April 2016 | California Enrolled Agent

Disreputable conduct is contrary to language that defines “fitness to practice” to include good character, good reputa-tion, necessary qualifications to provide valuable service to the client, and competency to advise and assist persons in presenting their cases.

Conflicting Interests (§ 10.29) Practitioners commonly encounter situations that involve conflicting interests, which occurs when one client’s interest is directly adverse to an-other’s. The problem with conflicts of interest are that they pose a significant risk of material limitation because of re-sponsibilities the practitioner has to another client, a former client, a third party or what is in the personal interest of the practitioner.

In these situations, a practitioner may represent a client if they have a reasonable belief in their ability to provide competent, diligent representation to each affected client; if it is not legally prohibited; and, EACH affected client waives the conflict by giving informed consent in writing at the time conflict is known.

Due Diligence for Written Advice (§ 10.37) In all federal tax matters, the reasonable practitioner standard applies. When issuing written advice, practitioners must make rea-sonable factual and legal assumptions, they must reasonably consider all relevant facts, they must make reasonable efforts to identify and ascertain the relevant facts, and they cannot unreasonably rely on representations, statements, findings, or agreements. In other words, if you know or should know the information is based on incorrect, incomplete, inconsistent representation or assumptions, you should not use it.

Practitioners must apply applicable law to relevant facts; they may not take an “audit lottery” position or issue advice based on the likelihood of audit, and they should rely on advice of others only when reasonable and in good faith.

Competence (§ 10.35) Circular 230 also specifies that a practitioner must possess the necessary competence to engage in practice before the IRS. Competent practice re-quires the appropriate level of knowledge, skill, thorough-ness, and preparation necessary for the matter for which the practitioner is engaged. Practitioners can meet this require-ment by either being competent, becoming competent or hiring or consulting someone who is competent in the subject matter.

Expedited Suspension (§ 10.82) Regulations authorize OPR to issue immediate suspensions in situations where a practitioner is not compliant with their own tax return filings for multiple years on the basis that it demonstrates a pattern of willful disreputable conduct.

Oral or Written Opinions (§ 10.51(a)(13)) This provision details the kind of behavior that constitutes disreputable or incompetent conduct, including issuing false opinions whether knowingly, recklessly, or through gross incompe-tence; issuing intentional or recklessly misleading opinions; or demonstrating a pattern of incompetent opinions. Specifi-cally, false opinions are knowing misstatements of fact or law;

assertion of unwarranted positions; counseling or assisting conduct known to be illegal or fraudulent; or concealing matters required by law to be revealed. Reckless conduct is defined as highly unreasonable omission or misrepresentation from standards of ordinary care that a practitioner should observe under the circumstances. Gross incompetence in-cludes gross indifference, grossly inadequate preparation, and consistent failure to perform obligations to the client.

In her remarks during the IRS webinar, former Director Hawkins seemed to suggest that OPR is not looking for the occasional error, but is looking for patterns of behavior that suggest whether or not a practitioner is truly making a good faith effort to comply with legal requirements. Ms. Hawkins reiterated numerous times, “Patterns matter.”

Many resources on this topic are available on www.irs.gov including the full text of Treasury Department Circular No. 230 (Rev. 6-2014), Regulations Governing Practice before the Internal Revenue Service. CSEA also recommends that prac-titioners subscribe to News and Updates issued by the IRS Office of Professional Responsibility.Editor’s note: This article is drawn from the IRS webinar, “Practic-ing Before the IRS - Circular 230 A to Z,” which originally aired on October 29, 2014, and which was rebroadcast on June 17, 2015. The content of this article is educational and informational in nature, and not intended as minimum standards, or legal or other professional advice. CSEA has endeavored to include appropriate and accurate statements excerpted from IRS written materials, but disclaims any and all warranties and/or responsibility for the statements or their application. Readers should confer with their professional advisers for specific input and assistance concerning their respective projects.

Scarlett D. Vanyi, CAE is the Executive Vice President of the California Society of Enrolled Agents. She holds a Bachelor’s of Science Degree in Organizational Behavior & Leadership from the University of San Francisco and is designated as a Certified Associa-tion Executive (CAE) from the American Society of

Association Executives. Ms. Vanyi has more than 20 years of experi-ence in the nonprofit association and legislative advocacy arenas and has expertise across a wide array of nonprofit management disciplines.

continued from p. 5

Advocacy

SEA’s ongoing advocacy efforts to promote fair and effective tax administration have resulted in progress on a number of regulatory and legislative priorities in the past few months. This progress is made possible by your support as a Member of your professional Society.

Streamlining Business Entity Statement of Information (SOI) Filing

CSEA Members have long expressed concern that busi-ness entities often forget to file an updated Statement of Information (SOI) with the California Secretary of State (SOS) because the due date is obscurely tied to the entity’s an-niversary date, and the reminder issued by the SOS is a small postcard that easily gets lost in the mail shuffle. If an entity fails to file timely, a significant penalty is assessed and eventually the entity is suspended, which interferes with its ability to receive properly due tax refunds.

CSEA began working with Assembly Member Cheryl Brown (D-San Bernardino) on a solution to this issue in Feb-ruary 2014 with two CSEA-sponsored bills, Assembly Bill (AB) 367 and AB 2180. Both of these bills were introduced by Assembly Member Brown and focused on changing the due dates for filing the Statement of Information to coincide with the due date of the business entities’ tax filing. There was formidable opposition to these bills based on cost, and they did not move forward.

With the start of a new legislative session in early 2015, CSEA worked with Assembly Member Brown to sponsor AB 871, which sought to simplify filing due dates to ease taxpayer burden and increase compliance. On April 20, 2015 CSEA staff and lobbyist Jennifer Tannehill accompanied CSEA Legislative Affairs Committee Vice Chair Joyce Cheng, EA to the Assembly Committee on Banking and Finance hearing to provide testimony on AB 871. The bill passed 11-0 and moved on to the Assembly Committee on Appropriations. The Appropriations Committee then placed a $2 million price tag on the bill, which destined it for the Suspense File.

As the deadline approached for AB 871 to pass its house of origin in January 2016, it became clear that more work was needed on the bill to ensure its passage. The SOS expressed concern that the approach proposed would present signifi-cant costs and might have other unintended consequences.

CSEA Advocacy Efforts Paying OffBy Scarlett D. Vanyi, CAE and Jean Krieger, EA

In mid-January, Assembly Member Brown and Secretary of State Alex Padilla agreed to work on an administrative solution to the problem rather than the solution proposed in AB 871.

CSEA has been in conversation with lead staff at SOS to better understand the issue from the agency’s perspec-tive and explore possible solutions. Staff has already made changes to the SOS website aimed at increasing awareness and compliance and has shared plans to revamp the reminder mailing to garner more serious attention. CSEA was also invited to be a part of the SOS Stakeholder Group that meets regularly to provide external feedback and assist the SOS in solving challenging issues.

CSEA is pleased that there is a desire to find solutions among not only the Secretary of State, but also the Governor’s Office of Business and Economic Development (GO-Biz), which holds summits designed for small business owners, during which they could discuss the SOI filing requirement.

CSEA has also received inquiries and interest from numer-ous legislators on both sides of the aisle in reaching some reasonable resolution of this issue on behalf of taxpayers.

Other Issues CSEA is AddressingThe annual Franchise Tax Board (FTB) Taxpayers’ Bill of

Rights (TBOR) Hearing gives taxpayers and tax practitioners an opportunity to bring items of concern regarding tax law and administration before the Board and to present proposals that could change existing law and improve FTB publications and services.

Each year, CSEA invites Members to submit systemic issues that the Society should consider addressing in its TBOR testimony, and also sends experts to the TBOR hearing to provide verbal comments and help clarify any questions the FTB may have about CSEA’s submission. On December 8, 2015 CSEA Legislative Affairs Committee Chair Vicki Mulak, EA, CFP® and CSEA Executive Vice President Scarlett Vanyi, CAE attended the TBOR hearing in Sacramento. Ms. Mulak presented testimony on behalf of CSEA focusing on three issues of primary concern:

Inability to Dissolve/Cancel Business Entities Formed and • not “Launched”

7March/April 2016 | California Enrolled Agent

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continued on p. 8

Inadvertent Failure to File Form 568 by Single-Member • LLCs (SMLLC)2015 California Disasters• CSEA detailed these concerns in a November 25, 2015

letter to FTB Taxpayers’ Rights Advocate Susan Maples, CPA. In CSEA’s letter, President Doug Pickford, EA thanked the FTB for its continued responsiveness to various concerns presented at previous TBOR hearings, including the prob-lems associated with pass-through entity (PTE) withholding allocations to K-1 participants, organizing a team to notify taxpayers of $6 million in unclaimed withholding credits, and EDR enhancement efforts.

Ms. Maples responded on January 29, expressing her thanks for CSEA’s participation in the TBOR and explaining the FTB’s actions on each of the issues. Below is an in-depth look at each of CSEA’s three issues of concern, and FTB’s response.Dissolution for Never-Launched Businesses

CSEA has been advocating to both the Legislature and the FTB for a legislative or regulatory way to administratively dis-solve business entities that form but never actually conduct business. Taxpayers who form entities often don’t realize that they have a filing obligation and incur an $800 annual minimum tax even if they conduct no business.

The FTB recently announced that it has assembled a team to study why entities continue to have chal-lenges with dissolving and cancelling. The team will formalize a planned approach with anticipated deliv-erables by July 2016, including a complete analysis of the dissolution and cancellation process, identification of opportunities for improved education and outreach, and a review of administrative, regulatory, and/or legislative changes that might present opportunities to address this continuing issue. This effort will include seeking input and feedback from partner state agen-cies and stakeholders such as CSEA.

Inadvertent Failure to File Form 568 by Single-Member LLCs

CSEA Members report encountering clients with individ-ually-owned Single-Member Limited Liability Corporations (SMLLCs) that fail to recognize their disregarded entity has an entity state return filing requirement. Failure to recognize this filing requirement can be quite expensive, especially when penalties and possible suspensions are factored in. CSEA requested that the FTB increase efforts to assure filers recognize the need to file three tax returns: a federal Form 1040, a California Form 540 (individual) and a California Form 568 (LLC).

The FTB will conduct a feasibility study regarding the SMLLC filing requirements for personal income tax filers, including the filing requirements for cor-porations that have SMLLCs. The feasibility study will address potential form changes suggested by CSEA and Spidell Publishing as well as impacts to the FTB’s business processes. The FTB expects the study and recommendation to be completed soon.

Disaster TreatmentCSEA’s efforts to obtain automatic disaster treatment were

rewarded when Senate Bill 35 (CH 2015-230) became law on September 1, 2015. The bill allows victims of a Gubernatorial-declared disaster to automatically claim a loss in either the year the disaster occurred or in the prior year (a “throwback” election), without waiting for legislation which can occur months after the event.

However, in the aftermath of the 2015 Valley and Butte Fires, CSEA noted discrepancies between IRS and FTB web-sites – the state guidance only recognized the Butte Fire as Presidentially-declared, although both were eventually declared. CSEA asked the FTB for clarification, noting that conflicting information could be a problem in the upcoming filing season for fire victims and their tax practitioners to understand whether they have disaster tax relief throwback elections available for both their federal and California returns or their California returns only.

The FTB responded by updating its Publication 1034, Disaster Loss, How to Claim a State Tax Deduc-tion to include both fires as Presidentially-declared disasters. In addition, FTB is updating its procedures so that it is aware of federal amendments to Presidentially-declared disasters.

PIA Efforts Nurture Legislative RelationshipsLegislators Support CSEA’s Tax Help Day

On the third annual CSEA Tax Help Day, February 6, 2016, Enrolled Agent volunteers from 13 Chapters met face-to-face with taxpayers at locations provided by local businesses and community organizations. Once again, EAs tackled questions on a wide variety of tax topics including filing requirements, real estate issues, the Affordable Care Act, audits, non-resident filing, and more.

While intended to support CSEA’s public information and awareness goals to promote Enrolled Agents as America’s Tax Experts, there was also widespread interest across the California State Legislature in tapping into CSEA’s annual

8 March/April 2016 | California Enrolled Agent

Advocacy

continued from p. 7

continued on p. 17

n Monday, January 11, 2016 more than 50 CSEA Members from throughout California converged on Sacramento to meet with legislators and their staff during CSEA’s annual Jim Stern Legislative Day. This Members-only event arms attendees with the information, training and confidence to effectively meet with legislators and talk about issues that are important to CSEA Members.

Jim Stern Legislative Day activities help Members develop relationships with legislators and their staff, so that Member EAs will be recognized as tax experts and called upon as resources in the creation and review of proposed tax-related legislation. Legislative Day 2016 attendees reported that many legislators and their staff were knowledgeable about the Enrolled Agent designation and the efforts EAs make on behalf of taxpayers and sound tax policy.

The day began with breakfast at the Holiday Inn Capitol Plaza in Sacramento, where attendees picked up their event packet showing the day’s Senate and Assembly appoint-ments. CSEA President Doug Pickford, EA and event Chair Donna Aguirre, EA gave a warm welcome. Expert presenta-tions were then made by CSEA’s lobbyist, Jennifer Tannehill; Oksana Jaffe, Chief Consultant to the Assembly’s Revenue & Taxation Committee; and Colin Grinnell, Consultant to the Senate’s Committee on Governance & Finance.

Next, Legislative Affairs Committee Chair Vicki Mulak, EA, CFP®, John Kristianson, EA and Richard Ogg, EA briefed at-tendees on this year’s advocacy issues and talking points:

CSEA-sponsored bill AB 871 (Brown, D-San Bernardino), • Statement of Information (SOI) Filing Date Proposal;The need for administrative dissolution for never-launched • business entities; andTax Help Day publicity and co-sponsorship.• Ms. Mulak emphasized the importance of AB 871, which

would eliminate confusion as to when the SOI is due, and which came about as a direct result of CSEA Member activism.

Lastly, Ms. Aguirre teamed up with Torie Charvez, EA and Alan Pinck, EA to demonstrate mock legislative visits, and CSEA Executive Vice President Scarlett Vanyi, CAE gave tips on how best to navigate the Capitol. Then attendees set off for their scheduled meetings.

Following their legislative office visits, participants re-turned to the hotel for a debriefing session where they shared

Members Make Legislative ContactsBy Jana Perinchief

the day’s experiences. When asked about their favorite part of Jim Stern Legislative Day, attendees responded that they valued the one-on-one time with legislators and their staff. Being able to personally explain tax issues during legislative meetings was felt to be a powerful and exciting experience. Attendees also appreciated the opportunity to make a dif-ference for taxpayers and for their clients.

CSEA thanks all those who participated in Jim Stern Legis-lative Day 2016, and encourages Members to take advantage of this unique opportunity to represent their profession by attending next year’s event.

Jana Perinchief is CSEA’s Publications Editor and has been with the Society since 2010. She holds a Master’s Degree in Philosophy from UC Davis and has 15 years of experience in publishing and communications. She can be reached at jperinchief@csea.org.

James A. “Jim” Stern, EA (1945-1999) was actively involved with CSEA for 10 years, including serving on numerous committees and the Board of Directors. While Jim was involved in nearly all of the Society’s programs and activities, one of his most lasting ac-complishments for the Society was the aggressive expansion and operation of the Society’s legislative affairs program. Jim’s early work in the Society’s Legislative Affairs Committee also led to the estab-lishment of the Legislative Action Fund (LAF) and the CSEA Politi-cal Action Committee (CSEA PAC). In 1994, he was formally recognized by the California Assembly for his work with the Legislature.

9March/April 2016 | California Enrolled Agent

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Advocacy

10 March/April 2016 | California Enrolled Agent

Jim Stern Legislative Day 2016

Torie Charvez, EA, Donna Aguirre, EA and Alan Pinck, EA demon-strate legislative visits.

Attendees take a moment to confer before meeting with as-signed legislators and their staff.

CSEA Members set off for their first round of legislative visits. Attendees queue up for a photo opportunity between appointments.

The day begins with breakfast and networking at the Holiday Inn Capitol Plaza in Sacramento.

Legislative Affairs Committee Chair Vicki Mulak, EA, CFP® sum-marizes CSEA’s key issues.

Advocacy

11March/April 2016 | California Enrolled Agent

Legislative visits continue throughout the day until mid-afternoon.

Alex Dunkel, EA receives a Certificate of Commendation from Assembly Member Scott Wilk.

Jennifer Wettemann, EA, Assembly Member James Gallagher, Rose Fulton, EA and Dave Shaw, EA.

Noel Baca, Jr., EA, Assembly Member Ian Calderon and Alan Pinck, EA.

Richard Ogg, EA, Assembly Member Jim Wood, Janelle Ogg, EA and Raven Deerwater, EA, PhD.

Larry Behage, EA and Nancy Pyzel, EA meet with Tatum Holland of Assembly Member Evan Low’s office.

Advocacy

Features

12 March/April 2016 | California Enrolled Agent

uper Seminar is designed for you! No matter where you are in your career, Super Seminar provides you with courses that will expand your knowledge, arm you with real-world solutions and power your tax career.

If you have never been to Super Seminar, you simply don’t know what you’re missing. Here are just a few of the great reasons to come to Super Seminar 2016:

Choose from up to 24 carefully curated education 1. sessions to help you stay at the forefront of the profes-sion. Topics include:

Representation•Individual return complexities•Corporation challenges•Trusts and their challenges•Federal and California updates•Ethics•

2. Earn up to 25 EA, CRTP, CFP, CPA and Attorney con-tinuing education hours that may be applied toward your credential, all in just three days.

3. Learn from your favorite speakers – 11 tax industry experts who are among the most respected names in the profession:

Frank R. Acuña, Attorney at Law•Karen Brosi, EA, CFP®•David Du Val, EA•Claudia Hill, EA, MBA•Lisa Ihm, EA•Vicki L. Mulak, EA, CFP®•Alice Orzechowski, CPA, CMA, EA•Alan Pinck, EA•Ron Roberson, CPA•Mark F. Seid, EA, CPA, USTCP•Carol W. Thompson, EA, ATA•

4. Meet well-connected people as you interact with hundreds of industry tax professionals like yourself. Get to know prac-titioners from your geographical area at this year’s special complimentary sit-down “Breakfast with Buddies.”

5. Learn about the latest “Hot Topics” from the IRS Stake-holder Liaison Office, and get one hour of continuing educa-tion for attending this complimentary evening session.

Top Reasons to Attend Super SeminarBy Jana Perinchief

6. Win fabulous prizes, including a free registration for both Las Vegas and Reno Super Seminars 2017 on Prize Drawing Night.

7. Recharge your energy level and return to your workplace bursting with new ideas and enthusiasm!

What’s new this year?

Education materials for ALL Super Seminar sessions, •not just those you’re registered for, are included free – a $225 value! Attendees will receive all session material on a USB drive onsite.

Download education materials in advance• , so you’re better prepared for your classes.

Take advantage of one-on-one consultations• with exhibitors and get access to discounts on the best industry tools at the “Demo & Hospitality Night.”

Lock in your rate by registering now, and choose your •sessions onsite – no fees to switch sessions!We know your time is valuable. That’s why we pack high-

powered learning and fun into a format so many have come to love! Don’t wait any longer. Register for Super Seminar today - get $5 off when you register online using Promo Code MAG6!

Jana Perinchief is CSEA’s Publications Editor and has been with the Society since 2010. She holds a Master’s Degree in Philosophy from UC Davis and has 15 years of experience in publishing and communications. She can be reached at jperinchief@csea.org.

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13March/April 2016 | California Enrolled Agent

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14 March/April 2016 | California Enrolled Agent

he area of foreign assets reporting has expanded over the last 14 years for several reasons, but mainly in order to curb unreported income from foreign assets and to track terrorist activities. This reporting has been linked with tax return reporting, making this our responsibility to get it right. The Office of Professional Responsibility (OPR) has made it very clear that tax practitioners must comply with Reports of Foreign Bank and Financial Accounts (FBAR) and Foreign Account Tax Compliance Act (FATCA) filing rules and use due diligence in determining if a taxpayer has a reporting requirement.

Form 1040, Schedule B, Part III, Foreign Accounts and Trusts, has asked the question about foreign bank account interest for many years. Many taxpayers have ignored this question. Now that many foreign financial institutions are reporting U.S. account owners to the IRS, it is almost impos-sible to hide. Question 8 of Schedule B, Part III addresses foreign trust distributions or transfers, which may require Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. It is critical to start with correct answers to the questions on Schedule B. Be sure to review the instructions to ensure accuracy.

The world seems to be getting smaller, and the pos-sibility of clients owning foreign assets is more likely today than every before. Although we think we know our clients very well, this information may not be discovered unless the right questions are asked. The penalties for not reporting are steep and exposure to preparer penalties and client lawsuits is greatly increased. It is critical to know the basics of reporting, the questions to ask, and also to know when to close the interview and bring in an attorney to prevent the preparer from becoming a witness against a client. This is an area of tax practice where we need to be very careful. Either study and learn the rules and procedures very well, or refer the taxpayer to an expert or a firm that specializes in this area.

Following is a list of questions that it is our duty as prepar-ers to ask. Depending on the answers, more questions may be required. Be sure to document the questions and answers for your files and have the client sign off on their answers.

Reporting Foreign AssetsCollection Information

By Connie Ferrell, EA

Do you have a bank account or signature authority on 1. a bank account located in a foreign country?

If the answer is no and the client really does not have ¾an account and/or signature authority, all is good.If the answer is no but the client really does have ¾an account and/or signature authority, there may be a problem.If the answer is yes but the client does not want to ¾report it, refer to an attorney.If the answer is yes, report the income and file FinCEN ¾Form 114, Report of Foreign Bank and Financial Ac-counts, and all is good.

2. Do you own any foreign assets, including but not limited to:

Mutual funds• Jointly owned foreign assets• Stocks• Passive foreign investment companies (PFIC)• Partnership interests• Interest in a foreign trust• Annuities• Life insurance• Bonds• Notes• CDs• Debentures• Retirement plans or savings accounts• Online gambling accounts• If the answer is yes to any of these, additional forms ¾may be required in addition to Form 8938, Statement of Specified Foreign Financial Assets.

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continued on p. 15

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15March/April 2016 | California Enrolled Agent

3. Are you an officer and/or a shareholder of a foreign corporation?

If yes, it may be necessary to file Form 5471, ¾ Infor-mation Return of U.S. Persons With Respect To Certain Foreign Corporations (a mini-corporation return), Form 8938 and Form 114.

Listen carefully to the client’s answers to determine if there has been noncompliance in the past that could be considered willful. Watch for traps and overlooked accounts such as family accounts and inherited accounts. Protect yourself and know when to bring in an attorney to maintain client privilege. If a taxpayer has reported all the income from a foreign account but has not filed an FBAR, file the past FBARs to catch them up. There will be no penalties. If it gets more complicated, consider referring out the case.

Editor’s note: Practitioners may also wish to refer to the detailed information provided by the IRS on both FBAR and FATCA.

Connie Ferrell, EA has been an Enrolled Agent since 1989, an NTPI Fellow since 1991, and has worked in tax preparation, bookkeeping, and representation for over 40 years. Connie is President of Flavin & Associates, Inc., and along with her brother, Tim Flavin, EA, practices in the small Sierra Nevada foothill

town of Soulsbyville, California. Connie was honored by CSEA in 2003 with the Enrolled Agent of the Year and Distinguished Service Awards, and NAEA presented Connie with the Outstanding Volunteer award in 2008. Connie has chaired the CSEA Professional Education Production Committee, State Tax Agencies Liaison Committee and the Awards Subcommittee. She was CSEA Treasurer in 2006-2007, CSEA First Vice President in 2007-2008, and CSEA President in 2008-2009. Connie served as President of the CSEA Education Foundation in 2009-2010 and served on the NAEA Education Foundation in 2009-2011. She was NAEA 2010-2011 Chair of Education and was Editor of the EA Journal in 2009-2010. Connie has spoken at various Chapter events, the Japan Tax Seminar and the California State Tax Agencies Representation (CSTAR) seminars. She specializes in complicated individual returns, corporations, partnerships, trusts, and estates returns, as well as representation.

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16 March/April 2016 | California Enrolled Agent

IRS Letter 5105We reviewed tax returns you prepared in the past year and found that many have a high percentage of traits we believe typically indicate errors on Form 1040, Schedule C, Profit or Loss from Business (Sole Proprietorship). This letter reminds you of your responsibilities in this area and provides educational assistance. As a paid preparer, you are responsible for ensuring your clients’ returns are accurate. We ask that you pay special attention to these schedules next filing season.

Due diligence responsibilitiesA paid tax return preparer must take multiple steps to prepare accurate tax returns on behalf of clients. These steps are a pre-parer’s due diligence and include reviewing the applicable tax law to establish the relevance and reasonableness of income, credits, expenses, and deductions on a return. In general, you can rely in good faith without verification on information your client provides. However, you can’t ignore the implication of the information you have. You must make reasonable inqui-ries if the information appears to be incorrect, inconsistent or incomplete.

Schedule C remindersTo prepare an accurate Schedule C, you must ask your clients relevant and probing questions to help you determine if the expenses are allowable. Taxpayers may not fully understand the tax laws and may incorrectly believe they can claim deductions for non-qualifying expenses. You should also ask your clients if they have receipts to support the expenses and instruct them to keep them in case we request supporting documentation.

IRS Letters to Request Schedule C Improvement

By Franklin J. Ruedel, EA

Helpful resourcesWe provide information about the Schedule C on our website at www.irs.gov, keyword: Recommended Reading for Small Businesses. In addition, we recommend you review:

Schedule C instructions•Circular 230, Section 10.22, Diligence as to accuracy•Circular 230, Section 10.34, Standards with respect to tax •returns and documents, affidavits, and other papers

Potential consequencesIn the future, both you and your clients could face negative consequences from inaccurate returns. We’ll be looking for improvement in future returns you prepare. Inaccurate returns may result in any of the following consequences:

If we examine your clients’ returns and find inaccuracies, your •clients may be liable for additional tax, interest, additions to tax, and penalties.If you prepare a client return that has an understatement •of tax liability due to an unreasonable position, we can assess you a minimum penalty of $1,000 per return (IRC Section 6694(a)).If you prepare a client return that has an understatement of •tax liability due to reckless or intentional disregard of rules or regulations by the tax preparer, we can assess a minimum penalty of $5,000 per return (IRC Section 6694(b)).

I hope this letter has increased your awareness of your respon-sibilities as a paid tax return preparer and provided you with in-formation on preparing accurate Schedules C for your clients.Thank you for your attention to this matter.

T he IRS began sending letters to tax return preparers regarding Schedule C, Profit or Loss From Business (Sole Proprietorship), in November 2013. Initially, Letter 4810 was developed to advise the recipient that an IRS representative would contact them to schedule an educational visit to review their responsibilities in correctly preparing Schedule C.

Letter 5102 was sent in November 2014 to request that the preparer pay special attention to accuracy in preparing Schedule C for returns prepared in 2015. While this letter does not state any intention on the government’s part to pay the preparer a visit, it does recommended that the recipient consider taking

continuing education programs related to business income and expenses. And of course it reminds the preparer that preparing a return that has any part of an understatement of tax liability due to reckless or intentional disregard of rules or regulations can be assessed a penalty of at least $5,000 per return under IRC Section 6694(b).

Letter 5105, sent in January 2015, encourages that the due diligence rules be followed carefully in the preparation of Sched-ule C and that the preparer pay special attention to accuracy. It is very similar to Letter 5102, and since it is the latest in the series, I feel it is worth including in its entirety in this article.

continued on p. 17

Features

Tax Help Day this year. After hearing from Members during CSEA’s Jim Stern Legislative Day on January 11, legislators scrambled to co-sponsor and/or help the Society get the word out about the February 6 Tax Help Day, seeing the event as a community service where their constituents could get answers to their tax questions.

Several legislators and their staffs worked closely with CSEA and lobbyist Jennifer Tannehill to secure additional Tax Help Day locations, including Senator Anthony Canella (R-Ceres), Assembly Member Ling Ling Chang (R-Diamond Bar), Assembly Member Jim Cooper (D-Elk Grove), Assembly Member James Gallagher (R-Plumas Lake), and Board of Equalization Member George Runner. This year’s event truly transcended its original purpose of public awareness, also becoming a valuable opportunity to partner with legislators in serving their constituents.

Scarlett D. Vanyi, CAE is the Executive Vice President of the California Society of Enrolled Agents. She holds a Bachelor’s of Science Degree in Organizational Behav-ior & Leadership from the University of San Francisco and is designated as a Certified Association Executive (CAE) from the American Society of Association Execu-

tives. Ms. Vanyi has more than 20 years of experience in the nonprofit association and legislative advocacy arenas and has expertise across a wide array of nonprofit management disciplines.

Jean Krieger is an Enrolled Agent and an NTPI Fellow with the Orange County Chapter (OCEA). She is Chair of the 2015-2016 CSEA Political Action Committee and is a member of the CSEA Legislative Affairs Committee, in addition to serving as 2015-2016 OCEA Secretary. Ms. Krieger is the Tax Manager for BCH Consulting, Inc.,

a full service CPA firm in Irvine, California. BCH Consulting provides tax, accounting and settlement services to individuals, businesses and trusts. In addition to processing 1,200 client returns each year, Jean specializes in payroll tax, sales tax and income tax audits.

17March/April 2016 | California Enrolled Agent

From these letters as well as letters on other issues, a series of FAQs has been developed to help clarify the IRS’s intent. Accord-ing to the FAQs, preparers may generally rely in good faith and without verification upon information furnished by a taxpayer. A tax return preparer, however, may not ignore implications of information either furnished to or actually known by him or her, and must make reasonable inquiries if the information as furnished appears to be incorrect or incomplete.

In addition, a preparer must make appropriate inquiries to determine the existence of facts and circumstances required by the Internal Revenue Code as a condition for claiming a deduction or credit.

It is likely that the IRS will continue sending letters regard-ing Schedule C in an effort to “encourage” us to step up our

game. If you receive such a letter, it needs to be read once in its entirety, then read a second time to understand what is being requested of you, and then a third time in order to note any due date for a response if required.

Franklin J. Ruedel, EA is a member of the CSEA Ethics & Professional Conduct Committee and the Legisla-tive Affairs Committee, and previously served on the CSEA Bylaws Committee. He is a Past President of San Gabriel Valley Chapter and served on the CSEA Board of Directors for seven years. He received his EA license

in 1975, and has been a Member of CSEA and NAEA since 1983.

The California Society of Enrolled Agents would like to pay tribute to those Members who have passed away since our last magazine issue. Each of them made a valuable contribu-tion to our organization by supporting their Chapters and CSEA. They will be missed.

In Memoriam

Katherine I. Washer, EACentral California Chapter

Founding MemberJoined: 1982

Marcus P. Powell, Jr., EAEast Bay Chapter

Joined: 1989

Russell B. Vartanian, EACentral California Chapter

Joined: 1986

continued from p. 16

continued from p. 8

MembersMembers

18 March/April 2016 | California Enrolled Agent

SEA, like similar associations, needs a talented, dedicated group of people willing to give their time to support its mission and achieve its goals. Volunteers are the lifeblood of the Society. Their duties and commitments vary, but each volunteer contributes at his or her own level and each makes a difference. Whether big or small, all contributions are important.

Where do our volunteers come from? Why do they begin volunteering? How do they get started? Why do they continue to volunteer? By and large, the volunteers come from our Chapters. Of course, the most obvious reason they begin volunteering is that someone asked them to, and also because they care about their association and know they have useful skills. The more compli-cated questions are “How do they get started?” and “Why do they continue to volunteer?”

As I said, by and large, it starts in the Chapters. The Chapters always need volunteers, and a good leader is always looking for people to help. A good leader also needs to be knowledgeable about Chapter Members and learn what they are good at, what their interests are and how much time they can spare. Usually, if someone begins by helping with a small task, they will become comfortable taking on more until they gradually become an integral part of the volunteer core group.

Thinking back on how they got started, most volunteers re-member the person who invited them to join a committee or help with a task. They felt valued, and as a result they developed a closer relationship with the Chapter. They were proud of what they achieved and had a feeling of contributing to something bigger and more important than they first imagined. From the simple task of greeting Members at the door, to being President of their Chapter, they made a difference and they liked it.

Some volunteers move from volunteering at their Chapters to state-level positions as Committee Members and/or Chairs, Direc-tors and Officers. These leadership volunteers give more generously of their time, talent and treasury, as our esteemed Executive Vice President Scarlett Vanyi would say, and are responsible for the myriad of essential tasks needed to run the Society. Although the commitment is greatly increased at the state level, all of these volunteers continue to take on more responsibility and accomplish more. They even seem to develop a stronger desire to stay involved as long as there is work to do.

These volunteers are a gift to every association, and CSEA could not persevere without them. Their accomplishments and dedication are immeasurable and they request nothing in return. At this point, you might wonder whether these individuals could actually be so altruistic. I truly believe they are. These volunteers expect nothing in return; they are just glad to be of service.

Volunteering – Who Benefits?By Patricia Kappen, EA

Personally, I know there are rewards. They may not be expected, but more often than not, every volunteer comes away with far more than they have given. These rewards, as described by CSEA Member Duncan Sandiland, EA, CFP® are hard to comprehend until you experience them, and they change you forever.

The rewards of volunteering come in the form of increased personal and professional development. The most significant of these is an increased confidence in one’s own abilities, resulting in a higher level of professionalism and increased profitability. Volunteers also learn new skills in the areas of teamwork, negotiat-ing, strategic planning and budgeting, that can be utilized to help a client’s businesses as well as in other volunteer work.

Another significant reward is the expanded number of pro-fessional contacts gained through the many different volunteer positions. These relationships would not be available in a lifetime of private practice! They become part of the volunteer’s social and professional world, a cornerstone to what they do in all areas of their lives.

Leadership volunteerism in CSEA is like being part of an ex-tended advanced professional development program, and all that is required of you is your time. This is time spent with like-minded professionals devoted to making a difference, bringing our Society one step closer to achieving its goals. It’s a way of influencing someone’s life and showing them what happens as a result of the unique camaraderie among volunteers. Ultimately, it is the satisfaction of knowing that you gave your time and talent with no real expectation of a reward, and knowing with certainty that you have been changed for the better forever.

I believe this is why we continue to volunteer. In our hearts, we know that we can never give more than the benefits we receive.

Patricia Kappen, EA is the CSEA Immediate Past President. She has been in the tax and/or accounting business for more than thirty years, and still manages the finances of a small retail business and rental property in New York in which she has part ownership. Since coming to California in 1992, she has been a controller for an

international company and for a small mortgage company, managed a private foundation, and of course practiced in her own tax business. She became an Enrolled Agent in 2002 and is a National Tax Practice Institute (NTPI) Fellow. She holds a Bachelor’s of Science Degree from the University of Phoenix, a Series 7 and 65 Securities License and a California Insurance License. She established her tax practice in 1996 in San Juan Capistrano, CA, where she and her husband work together.

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19March/April 2016 | California Enrolled Agent

uper Seminar is CSEA’s premier education event and supports much of the Society’s work on behalf of Members throughout the year. Volunteers are critical to the success of Super Seminar, and each year CSEA asks Members to consider volunteering at both the Las Vegas and Reno Super Seminar locations. CSEA needs help with:

Assisting pre-registered attendees with the check-in • process; Ensuring that attendees scan in to receive CE credit for • attendance at sessions; Addressing logistical needs in sessions and introducing • speakers; and Handling other miscellaneous tasks as they arise. • You can volunteer at the location for which you are regis-

tered and/or at the alternate location. You don’t have to be a paid registrant to volunteer, but you must be registered (and must attend sessions) if you would like to receive CE credits. If registered for Super Seminar, “Session Assistants” can still volunteer while obtaining their CE. CSEA will make sure to assign you to the education sessions you’ve registered for. We also welcome your guests as volunteers.

Volunteer at Super Seminar 2016No experience is required to volunteer at Super Seminar.

Training is mandatory and will be provided. CSEA will contact you to confi rm your assignments prior to the seminar. Click here for details about Super Seminar volunteer opportunities and to complete a Volunteer Sign-Up form.

Please contact CSEA Membership Manager Carrie Clarke with any questions at 916/366-6646, extension 20 or cclarke@csea.org. We look forward to working together to produce a fantastic event!

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f you like baseball, America’s national pastime, then you’ll defi nitely want to attend the CSEA 40th Annual Meeting in Ontario. Hosted by the Inland Empire Chapter, the 2016 Annual Meeting features “The Inland Empire 66ers Baseball Game & All-You-Can-Eat BBQ” on Friday, July 8 at San Manuel Stadium in San Bernardino.

The Inland Empire 66ers is the Class A – Advanced af-fi liate of the Los Angeles Angels of Anaheim, and plays in the California League. This family-friendly event includes a private area for CSEA Members, and children 12 and under will receive all-play wristbands for the fun zone.

Baseball and BBQat the CSEA 40th Annual Meeting

Dates: July 7-10, 2016Location: Embassy Suites Ontario Airport 3663 E. Guasti Road, Ontario, CA 91761

Ontario is located just 35 miles east of downtown Los Angeles, and is conveniently served by the LA/Ontario International Airport. Complimentary shuttle service is provided to and from the airport. There will be plenty of time to relax and unwind with your colleagues as you mix business and pleasure during your stay! Meet long-time friends, make new ones, and have a grEAt time as you help plan the course of your professional Society. For details, visit www.csea.org/education/annual-meeting.

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20 March/April 2016 | California Enrolled Agent

MembersMembers

ichelle Tanner, EA is the first Vice President of CSEA’s North Bay Chapter, but until this year, she had never physically attended a CSEA Board or committee meeting. The following interview gives her impressions of what it was like to participate in these meetings for the first time.

What motivated you to go to the meetings?At the January 10, 2016 CSEA Board meeting, North Bay

Chapter was slated to put in a proposal to host CSEA’s 2017 Annual Meeting. I had volunteered to Chair North Bay’s 2017 Annual Meeting Committee. With a little encouragement from fellow Chapter Member and former CSEA Membership & Chapter Development Committee Chair Sandy Danioth-Jones, EA in the way of a free ride and room, I decided to present the proposal myself. Editor’s note: the 2017 Annual Meeting will be held in Reno, NV in conjunction with Super Seminar.

What expectations did you have about the meetings prior to attending?

I expected the meetings to be somewhat boring and/or stuffy.

How did your experience differ from your initial expectations?

It was completely different. The discussions were lively and very informative and the people were really welcoming and open while also remaining professional.

How did you choose what meetings to go to?I followed Sandy’s lead and attended the Membership &

Chapter Development and Finance & Budget Committee meet-ings on Saturday, January 9 and the Board of Directors meeting and Educating America luncheon on Sunday, January 10.

Did you meet and interact with CSEA Members outside of your Chapter? In what ways?

Most definitely. There were several familiar faces with whom I got reacquainted, such as Vicki Mulak, EA, CFP® (Orange County Chapter), Torie Charvez, EA (Mission Chapter) and Patty Pringle, EA (East Bay Chapter) to name just a few. I was really pleased to make some new friends and meet new colleagues both during and between the meetings. I had the most fun at a lovely post-meeting cocktail session with some awesome Enrolled Agents, where a couple of us bonded over our mutual loves: Legos and dirty martinis.

Attending CSEA MeetingsA Member InterviewBy Raven Deerwater, EA, PhD

I also got a chance to speak with CSEA Past President Jean Nelsen, EA after the Educating America presentation. This was very informative, given that she is not only on the NAEA Board of Directors, but is also the person heading up the entire Educating America program (which is a cause near and dear to my heart). Editor’s note: For more information on Educating America, go to www.csea.org/governance/educating-america.

Everyone I met was very welcoming, and I am looking forward to seeing them again in the future. A couple of us agreed that going to the CSEA meetings is kind of like summer camp. You may not see those friends very often, but when you do it’s like you were never apart and it’s always fun catching up with them.

How did your Annual Meeting presention go?The theme of “EAs and Taxes … a Perfect Blend” came to

me (thankfully!) as I was trying out different ideas for coasters on Vistaprint. As I got further into the project, I communicated with Sandy (who was Chair the last time North Bay Chapter hosted CSEA’s Annual Meeting) to make sure that I was on the right path. We ordered bags and treats to distribute to Board Directors and guests. After everything arrived we met at her office, and along with her office manager’s help, we spent a few hours assembling the “goodie” bags.

Sandy was kind enough to help me come up with some bullet points for the presentation which I then expanded on (I do better with a fully-scripted speech). I read it to her on our way to Sacramento and got her seal of approval. I practiced it a few more times over the weekend, making adjustments as needed.

I admittedly got a little nervous right before I was called up to present the proposal to the Board, but the presentation went over well with everyone in attendance – I’m always happy to get a few laughs when speaking in front of an audience. The Board voted unanimously to approve our proposal and North Bay will be the official host Chapter for the CSEA 2017 Annual Meeting. Granted, there were no other Chapters competing for the honor, but a win is a still a win in my book!

Did you feel that you had a chance to contribute to other CSEA business? In what ways?

Absolutely. During each meeting I attended, I was able to speak up and add my opinions to the discussion. I was impressed with the way each committee as well as the Board not only allowed Members to speak, but really listened to what

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21March/April 2016 | California Enrolled Agent

Members

everyone had to say. Many of the motions were impacted by our discussions, which was an awesome sight to behold.

For example, during the Finance & Budget committee meeting, there was a recommendation by the Dues Subcom-mittee to increase Enrolled Agent Member dues to $205. I asked them to consider lowering this to $195, because to me, keeping it under $200 seemed more palatable. The Committee not only listened but actually took to heart what I said, and ended up changing the proposed amount to $195 when it brought the motion before the Board on Sunday. During its Sunday meeting (and after quite a rousing discussion), the Board postponed the vote on any dues increase until the next meeting. But the realization that little ol’ me would have literally impacted every Member of CSEA if the motion had passed was an empowering thought! Each Member of CSEA really does have a voice and the power to effect change if they choose to do so.

What was the most surprising thing that happened?I’d have to say the overall feeling of camaraderie and in-

clusion. Although many of our Chapter Members are active in CSEA (and therefore I knew there would be some familiar faces), I was expecting to feel somewhat like an outsider. I’ve always focused on doing things at the Chapter level and just thought of CSEA as that other entity over in Sacramento doing their thing. But after experiencing a weekend full of CSEA activity, it just felt like a bigger version of our Chapter. So many people are working hard to advance both our profession as a whole and our Society in particular. Everyone I spoke with was friendly and genuinely happy to see me participate, which helped make it such a positive experience for me overall.

Was anything unclear about how the CSEA committees and Board work?

I guess it would be which decisions need to be made by the Board and which are made by staff. I suppose it’s some-what similar to how big corporations operate – day-to-day operations are handled by management and staff, while the big picture stuff is determined by the Board. It’s different than the way things are handled at the Chapter level, and I don’t really have any experience. Everything I’m involved with is small scale and therefore very informal.

Would you consider attending and participating in more CSEA Meetings?

Definitely! Not only was it an informative and at times entertaining experience, but attending the meetings made me realize that CSEA isn’t just some separate organization up in Sacramento – it is OUR organization. We as Members not only have the opportunity to influence the decisions that CSEA makes, but we have a duty to speak up and be heard.

If there is something that you are passionate about or something that you do (or don’t) agree with, go to the CSEA meetings or at least communicate with the Board and/or

committee members and let them know how you feel. The members of the Board and the committees are people who have stepped up because they want to do their part to advance our profession. They can only do their jobs effectively if they know where the membership stands. Otherwise, it’s all just a guessing game.

Now that the North Bay Chapter’s bid to host the CSEA Annual Meeting in 2017 has been approved, I am officially our Chapter’s Chair for the event. I expect that through that position, my connections within CSEA will strengthen, which could in turn lead to more roles within our Society once the 2017 Annual Meeting has come and gone.

Is there one “take away” from your experience that you would like to communicate to CSEA Members?

The one takeaway for me is that CSEA makes a lot of decisions that impact its membership, and by attending the CSEA meetings, you have the ability to not only speak your mind but potentially affect CSEA’s decisions. It’s very empowering to realize the impact any one Member can have on the future of our professional Society.

Raven Deerwater EA, PhD was the CSEA President in 2012-2013. He is currently the North Bay Director and the Chair of the CSEA Bylaws Committee and the Leadership Development Task Force. He is also a teacher for the Schuldiner/Smollan Leadership Academy. Raven’s practice is on the Mendocino

Coast, where he lives with his wife Rebecca.

Michelle Tanner, EA is the current North Bay Chapter First Vice President, and Chair of the North Bay Chapter Finance & Budget and 2017 CSEA Annual Meeting Committees. She has been a continuous presence on the Chapter’s Board of Directors in a variety of roles including Director, Secretary and

First Vice President since joining in 2005. Michelle has also served on numerous committees over the years.

She received her EA license in 2005, a Master’s of Science degree in Taxation from Golden Gate University in 2009, and became an NTPI Fellow in 2012. Michelle has worked alongside her father, Michael W. Whipple, CPA since 2004, offering a variety of services including tax preparation, tax planning and representation.

Michelle has also been the Head Coach of the Special Olympics Novato Aquatics Program for over a decade and is a founding member of Marin’s Best, a 501(c)3 charitable organization which supports athletic, social and educational opportunities for the developmentally disabled population in Marin County.

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MembersMembers

he third CSEA Board of Directors meeting for the 2015- 2016 governance year was called to order on January 10, 2016 at 9:45 a.m. at the Holiday Inn Capitol Plaza. President Doug Pickford, EA read an inspirational message submitted by Immediate Past President Patricia Kappen, EA which set the mood for the meeting. President Pickford then installed the new Sacramento Valley Director, Barbara DeRenzo-Donovan, EA who was warmly welcomed by all. There were no requests for dues or education waivers. First Vice President Torie Charvez, EA gave a review of the October 25, 2015 Board Evaluation Summary, the status of CSEA’s Strategic Plan implementation, and a follow up on the Board’s feedback from the October meeting regarding Society priorities. The Consent Agenda was approved, and the October Board minutes were accepted as filed.

Hot Topics Dues

The Dues Subcommittee presented its report and findings along with motions to eliminate the $18 initiation fee for new Members; eliminate Chapter revenue-sharing practices, with the exception of collection and distribution of Chapter dues; and to set membership dues rates as follows:

Regular (Enrolled Agent) Members: $1951. Member Emeritus: $452. Students: $453. International Enrolled Affiliates: $1204. All other membership categories: $1955. The motions were passionately discussed in detail at the

Finance and Budget Committee meeting prior to the Board meeting. During the Board meeting, all three motions were referred to the Membership Committee for further review. The Membership Committee will make a formal report and recommendation at the July Board meeting.

CE Certificate Replacement FeesOne of the services CSEA provides to the Chapters is

reporting Chapter education attendees to RPO and CTEC (to record CE hours). When attendees lose their copy of the CE certificate, they turn to CSEA to locate and provide another copy. While this might be thought of as an easy process, it can be complicated and time-consuming. As a result of a discussion concerning this process, a motion was brought before the Board to authorize the EVP to charge up to $25

Integrity and TransparencyA Summary of the January 10, 2016 Board Meeting

By Joyce Cheng, EA

for Members and up to $40 for non-Members to research and provide a replacement copy of a CE certificate. The EVP indicated she would take the many discussion points into account before creating a new policy.

Pro Rata One-Time AssessmentA motion postponed from the October 25, 2015 meeting

for a one-time assessment of $10,000 distributed pro rata among the 19 Chapters (based on the number of Members per Chapter) was brought back for a thorough discussion. The original reason for the postponement was to allow the Directors to go back to their respective Chapters and seek approval at the Chapter level.

During the January Board meeting, an alternative motion was presented calling for a different calculation method. Your Directors were vocal in opposition to this alternative to the original motion. The predominant argument was the fact that the purpose of the postponement from October was to allow feedback and commitment from the Chapters for the specified dollar amounts. The alternative changed the per-Chapter amounts, in some cases to a significantly higher number, and the Board of Directors felt it was inap-propriate to approve a different amount. After voting down the alternative, the original motion was carried.

Cooler TopicsThere were several committee motions passed by the

Board.

F&B MotionsThe Finance and Budget Committee presented three

motions at the Board meeting, all of which were passed. First was the funding of the Capital Expenditure Reserve Fund, second was the funding of the Emergency Reserve Fund, and third was approval of the Society’s budget for 2016-2017.

BylawsThe Bylaws Committee completed its five-year review of

the Society’s bylaws and brought two motions to the Board as a result. Changes were proposed to:

Article 3 – Members, and Article 4 – Affiliates and As-1. sociates; andClarification changes. 2.

T

continued on p. 23

23March/April 2016 | California Enrolled Agent

Members

CSEA Schedule of EventsMAY 17-19, 201634th Annual Super Seminar – Las VegasRio All-Suite Hotel & Casino, Las Vegas, NV

JUNE 1-3, 201634th Annual Super Seminar – RenoGrand Sierra Resort & Casino, Reno, NV

Visit the CSEA Calendar of Events at www.csea.org/education-events/calendar-of-events.

Both motions were carried unanimously and will be pre-sented to the membership at the 2016 Annual Meeting.

Leadership Development Task ForcePresident Pickford appointed a task force charged with

developing leadership development tools to be used at the Chapter level to identify, engage, and develop new leaders in our Society. The task force completed its charge and presented a program for leadership development. The Board voted to adopt the program.

New BusinessThe North Bay Chapter was approved to host the 2017

Annual Meeting in Reno, NV. Chapter of the Year contenders presented their pitches

for this award, but the Los Angeles Chapter may have had the most unique “pitch” as Ms. Pamela Price, EA belted out a solo encouraging support for her Chapter.

The Nominating Committee held interviews and pre-sented their slate of Officers for the 2016-2017 governance year as follows:

President – Doug Pickford, EAFirst Vice President – Torie Charvez, EA Second Vice President – Cynthia Leachmoore, EATreasurer – Joyce Cheng, EASecretary – Susan DiMaggio, EAAll in all, this meeting reminded me of the important

role our Directors have in supporting the Society and their respective Chapters through conscientious consideration of motions and ensuring integrity and transparency in the conduct of our business.

Joyce E. Cheng, EA is currently serving as CSEA Sec-retary, as well as Vice Chair of the CSEA Legislative Affairs Committee and Chair of the Grassroots Advo-cacy Subcommittee. She is employed as a paralegal/Enrolled Agent and practices tax representation at the Law Offices of A. Lavar Taylor in Santa Ana, CA.

Ms. Cheng handles federal and state (BOE, EDD and FTB) audits, col-lection cases, innocent spouse and bankruptcy related tax matters, in addition to assisting the firm’s attorneys with all aspects of tax representation. From 1991 to 1995, Ms. Cheng worked for the IRS Office of District Counsel as a paralegal specialist handling Tax Court cases with issues including fraud, unreported income, tax shelters, review of offers in compromise and summons enforcement.

2016-2017 Officer Nominees Joyce Cheng, EA, Torie Charvez, EA, Doug Pickford, EA, Cynthia Leachmoore, EA and Susan DiMaggio, EA are recognized at the January 2015 Board meeting.

JULY 7-8, 2016CSEA 40th Annual Meeting Embassy Suites Ontario Airport, Ontario, CA

JULY 9-10, 2016CSEA Board and Committee MeetingsEmbassy Suites Ontario Airport, Ontario, CA(following the Annual Meeting)

continued from p. 22

24 March/April 2016 | California Enrolled Agent

MembersMembers

our free listing in CSEA’s Find an EA online directory (which gets thousands of hits throughout the year) is just one of the benefits of membership. Although CSEA works year-round to promote our Members and their businesses, we move into high gear during tax season.

During this tax season, CSEA is unleashing a combination of marketing campaigns, social media barrages, press release blasts, community activities and website enhancements designed to promote your business and your professional designation:

Super Bowl 2016’s California venue brought a unique opportunity to market Member Enrolled Agents with a five-day flyover campaign on February 3-7. Each day a plane towed the banner, “Enrolled Agents – America’s Tax Experts – FindanEA.org“ over Levi’s Stadium in Santa Clara, the site of the Super Bowl, as well as top visitor and traffic areas in Super Bowl City, San Francisco and San Jose.

CSEA launched a month-long campaign of eye-catching city bus tail ads. A total of 30 buses targeted heavy traffic routes near Levi’s Stadium and in the greater Bay Area. The attractive ad asked taxpayers if they “Need Tax Help?” and informed them that Enrolled Agents are America’s Tax Experts.

The Google AdWords campaign realized more than 3,500 clicks from mid-December through early March. CSEA’s Facebook ads garnered almost 10,500 clicks, and more than 210,000 people saw the ads.

Marketing Our MembersBy Jana Perinchief

CSEA’s new mobile-friendly www.findanea.org landing page made it easy for taxpayers to understand why an En-rolled Agent should be their chosen tax professional.

On Tax Help Day, February 6, Enrolled Agent volunteers from 13 Chapters met face-to-face with taxpayers at local businesses and community-based organizations. EAs tackled questions on a wide variety of topics and promoted Enrolled Agents with many different groups:

Legislators who helped secure site locations and ¾inform constituents;Local businesses and community organizations ¾that partnered with Chapters;Newspapers and radio and television stations that re- ¾ceived phone calls, emails and press releases; and Taxpayers who took advantage of the event. ¾

CSEA thanks all those Members who participated in this year’s marketing and outreach efforts, and looks forward to future opportunities to improve our Members’ prominence in today’s competitive tax marketplace.

Jana Perinchief is CSEA’s Publications Editor and has been with the Society since 2010. She holds a Master’s Degree in Philosophy from UC Davis and has 15 years of experience in publishing and communications. She can be reached at jperinchief@csea.org.

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25March/April 2016 | California Enrolled Agent

Members

Make Professional Connections •Gain access to CSEA’s community of seasoned tax

professionals. Make new contacts and meet people with the answers through your local Chapter and at state and national events. Get connected with the thousands of Enrolled Agents who make a difference every day – just like you.

Build Your Knowledge Base, at a Discount•Your CSEA membership gives you access to top-

notch tax education. As a Member, you can attend premier education events where industry experts share their knowledge at a discounted price.

Get Exclusive Access to Professional Resources•Find useful resources and models of what works in

today’s changing tax industry with Member-only access to the bi-monthly California Enrolled Agent magazine and the monthly CSEA News & Events newsletter. Receive alerts, publications and analysis of the latest tax news. Get help with ethical dilemmas and client complaints through the CSEA Ethics and Professional Conduct Committee.

Take Advantage of Member Discounts •Get discounts on products and services that enhance

your tax practice, including errors and omissions in-surance, bonding for tax professionals, tax research service, merchant credit card processing, promotional merchandise, tax and accounting books, and more!

Promote Yourself and Protect Your Profession•CSEA and NAEA provide marketing tools to help

you promote your practice and the EA designation to taxpayers. Your personalized listing in CSEA’s “Find an Enrolled Agent” and NAEA’s “Find Tax Experts Near You” online directories will help taxpayers single you out. Your membership also harnesses the power of numbers to protect your profession by advocating for EAs before legislative and regulatory agencies.

The California Society of Enrolled Agents takes your tax career as seriously as you do. Your CSEA membership lets you focus on what’s important – con-tinuing to build a successful career. CSEA helps you:

Learn more about the perquisites of CSEA member-ship at www.csea.org/member-resources.

Capitalize on Your Member Benefits

Classified ads are an economical and easy way to reach other Members and the public.Visit the CSEA website at www.csea.org/about-csea/recent-classified-ads for current online listings.

Both Members and non-Members may advertise in this section. Member rates are $5 per line (or partial line) per issue, 5-line minimum, maximum 100 words. A line consists of 50 characters. Non-Member rates are $75 per issue. The deadline for classified ads is the fifteenth of the month two months prior to the cover date (e.g., the deadline for the November/December issue is September 15). Email ads to asoy@csea.org with the subject line CSEA CLASSIFIEDS or mail with check to CSEA, 3200 Ramos Circle, Sacramento, CA 95827-2513. Advertisements in this section are limited to employment, equipment, practices for sale or purchase, office rental or shares, or other non-commercial messages. Advertisements for services, products, or educational events must run as display advertising; contact CSEA for rates. Each submitted advertisement is accepted at CSEA’s sole discretion.

Member Classified Ads

Annual Membership Dues Notice

Each year the CSEA Board of Directors considers membership dues rates upon the Finance & Budget Committee’s recommendation following a report from the Dues Subcommittee.

During its January 10, 2016 meeting, the Board consid-ered a dues-related motion and referred the topic to the Membership & Chapter Development Committee for further research.

The Board is expected to consider the dues-related motion again following this additional research during its next meeting on July 10, 2016. Any dues adjust-ments approved by the Board at that time will be effective as designated by the Board.

As currently proposed, annual membership dues rates would change to the following in the 2016-2017 governance year:

Regular Member (CA Enrolled Agent) .................$195Member Emeritus (Inactive CA EA) .........................$45Student..............................................................................$45International Enrolled Affiliate ...............................$120Enrolled Affiliate ..........................................................$195Professional Affiliate ...................................................$195Professional Associate ...............................................$195

The final outcome on this topic will be published after the Board’s action on July 10, 2016.

26 March/April 2016 | California Enrolled Agent

MembersMembers

Enrolled Agent Rotating Ferris iPad CaseShow off your technical savvy •with the Ferris rotating iPad case declaring that Enrolled Agents are America’s Tax Experts! It features a 360-de-gree rotating swivel that lets your iPad rotate both vertically and horizontally while in the case, with three convenient stand positions.

NEW! We Speak Tax LabelsThe new We Speak Tax labels •are a quick and easy way to remind clients that EAs are “America’s Tax Experts.” They’re great for including in personal and business correspondence as well as using on envelopes and packages – just in time for tax season!

Enrolled Agent Phone HolderIt’s likely that many of your •clients have smartphones. Help them keep you top of mind with the Enrolled Agent phone holder, complete with screen cleaner. Lightweight and attractive, these blue and red smartphone holders come in mixed sets of five, and are perfect gifts for clients, friends and family. Take them along to your business or client meetings.

Members Get 15% Off on All EA Merchandise

e know you like to stock up on the latest and greatest Enrolled Agent merchandise that proudly proclaims your Enrolled Agent status and your affiliation with CSEA, the preeminent professional organization for Enrolled Agents. From newly designed Enrolled Agent brochures and We Speak Tax labels to license plate holders, CSEA has all of your Enrolled Agent marketing needs covered. And, as usual, CSEA Members receive 15% off the purchase price!

Get these powerful Enrolled Agent marketing tools now from the CSEA Online Store:

NEW! Enrolled Agent BrochuresAre client meetings on the •horizon? Help your clients ap-preciate the value of Enrolled Agents with this full-color glossy brochure that clearly explains why they should choose an EA. Place them on your reception counter, mail them to prospects or hand them out to clients to share with friends and family.

Enrolled Agent License Plate HoldersHelp drive home the message •about Enrolled Agents with these sleek and stylish Enrolled Agent, We Speak Tax chrome license plate holders. The eye-catching design is impressive and elegant, while the classic style announces that you’re at the top of your profession.

CSEA Messenger BagsDisplay your pride in your •professional organization by using a CSEA messenger bag, available in green, blue, red, purple and black. Take it with you to your next out-of-office meeting and let your clients know that you’re a Member of the elite group, CSEA.

To get this great Enrolled Agent merchandise, shop now at the CSEA Online Store.

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27March/April 2016 | California Enrolled Agent

Members

Welcome New Members, Associates, and AffiliatesWelcome to the following people who joined CSEAbetween December 1, 2015 – January 31, 2016

MembersEric H. Arima, EA, CPA (San Fernando Valley)Noel Baca, Jr., EA (South Bay)Chandra N. Blencowe, EA (North Bay)Christi Bolitho, EA (Channel Islands)Nancy L. Byer-Hauan, EA (Big Valley)Cynthia Cady-MaBon, EA (East Bay)Nancy C. Callahan, EA, CPA, CFP® (Golden Gate)Christiana Chiu, EA (San Fernando Valley)Joseph M. Chung, EA (Los Angeles)Annemarie D’Angelo, EA (San Diego)Nena Divine, EA (East Bay)James Dunlap, EA, Esq. (Mission)Gloria J. Flandez, EA (Mission)Jorge A. Flores, EA (Orange County)Heather M. Grandgeorge, EA (Central Coast)Nancy K. Greer, EA (Mission)Robert L. Hammack, EA (Inland Empire)Evan G. Hopper, EA (Orange County)James S. Kazak, EA (Orange County)Thomas I. Klitgaard, EA (Inland Empire)Laura W. Lee, EA (North Bay)Paul Lee, EA (South Bay)Aileen G. Leong, EA (Sacramento Valley)Debra D. Linderholm, EA (Sacramento Valley)Kristeena Lopez, EA (Mission)Daniel M. Maiuro, EA, CPA (Sacramento Valley)Yekaterina A. Martz, EA (Mission)Mary Ann P. McCusker, EA (San Diego)David A. McKay, EA (Sacramento Valley)David P. Miller, EA (Los Angeles)Timothy M. Mulgrew, EA (East Bay)Robert A. Nylund, EA (Sacramento Valley)

Alicia Pantig, EA (East Bay)Stan K. Park, EA, CPA (Orange County)George Perozzi, EA (Central Coast)Blakely L. Sanford, EA (Palomar)Scott Steward, EA (Orange County)Robert F. Toy, EA (Golden Gate)Michael Tullio, EA (San Diego)Mitchell Underwood II, EA (San Diego)Paul Wong, EA (Sacramento Valley)Zao Yuan, EA (Golden Gate)

Enrolled AffiliatesJohn W. Bishop, EA (Texas)Marvin Burke, EA (Colorado)David J. Harris, EA (Colorado)Owen A. Hill, EA, CFP® (Nevada)Kenneth M. Hodges, EA (Texas)Lawrence M. Isom, EA, CFP® (Idaho)Ernie Kraft, EA (North Carolina)Linda Nayder, EA (Illinois)Paul V. Parendo, EA, CPA (Idaho)Michael Reynolds, EA (Nevada)Joanne L. Richard, EA, CFP® (Montana)Scott Rodabaugh, EA, CFP® (New York)Narda Sierra, EA (New York)Mary Sunderland, EA (New Jersey

Professional AffiliatesMark G. Borel, CPA (Nevada)Merry L. Duame, CPA (Alaska)Kenneth W. Escobar, CPA (North Bay)Lawrence L. Lathrop, CPA (Inland Empire)Stanley Matlock, CPA (Los Angeles)Larry S. Miller, CPA (Sacramento Valley)Aaron Nakahara, CPA (East Bay)

Kimberly J. Perry, CPA (East Bay)Pam R. Regatuso, CPA, CFP® (East Bay)Wayne W. Voigt, CPA (Oregon)Scott A. Wilson, CPA (Colorado)

Professional AssociatesErendira Casillas-Tarax (San Gabriel Valley)David Chu (Golden Gate)Jeremy Craig (San Gabriel Valley)Nancy L. Curry (North Bay)Koby J. Ferrell (Big Valley)Neville R. Gibson (East Bay)Rodolfo Gutierrez (Sacramento Valley)Patricia Hagen (Central California)Joyce Hodge (Oregon)Lorraine A. Huseman (Orange County)Scott Juceam (Channel Islands)Myles Kilroy (Golden Gate)Misty D. Little (Central Coast)Sylvia E. Littrell (Orange County)Ma Kristilyn Mallari (San Gabriel Valley)Pinkyben Mukhi (Golden Gate)Cynthia Nunez (Channel Islands)Stephanie Ozuna (Channel Islands)Luciano Penna (Los Angeles)Anna Polk (Oregon)Julie S. Polus (Mission)Tracey L. Pondillo (Inland Empire)Adrian Sagum (Golden Gate)Jackie I. Stevens (East Bay)Susan A. Tressler (Inland Empire)

Student AssociatesAmanda S. Forbes (Golden Gate)

EA Clothing/Awards & Promotional Marketing

Graphic Promotions yLitza Coughlin, CASLitzaC@graphic-promotions.com800-685-6648www.graphic-promotions.com

Insurance

Errors & Omissions and Bonding yfor Tax Professionals Placer Insurance 877-877-0770www.taxproeando.comE&O BrochureBonding Flyer

Personal Auto Insurance yPlacer Insurance 877-877-0770Call for a no-obligation quote and receive a $25 gas card and Place Insurance will also donate $10 to the CSEA Education Foundation.

Tax Publications

Checkpoint IRS Response yLibraryThomson Reuters800-510-8997https://tax.thomsonreuters.com/IRSResponseDescription FlyerUse discount code Q520

Quickfinder Handbooks yThomson Reuters800-510-8997Place an order todayUse discount code Q520

Quickfinder Tax & yFinancial ToolsThomson Reuters800-510-8997https://tax.thomsonreuters.com/qftoolsDescription FlyerUse discount code Q520

The Tax Book yTax Materials Inc.Jacob Meyerinfo@thetaxbook.com866-919-5277Place an order todayUse discount code 210

U.S. Master Tax Guides & yGuidebook to California Taxes CCH, A Wolters Kluwer BusinessKim AgricolaKim.agricola@wolterskluwer.com877-571-2841Place an order todayUse discount code Y5373

CSEA MEMBER DISCOUNT PROGRAMFor details, please visit www.csea.org/members-area/member-discounts.

28 March/April 2016 | California Enrolled Agent

MembersMembers

29March/April 2016 | California Enrolled Agent

Members

Order 2016 Tax Guides Now SEA and Wolters Kluwer have partnered to offer you a Member discount of 25 percent on the most

popular tax and accounting books, including the 2016 U.S. Master Tax Guide! Order directly through the CCH online store and your books will be shipped directly to you. In many cases eBook versions are also available for immediate download to your computer. Don’t forget to check out the Current Book Specials for huge Member savings of 40 percent on selected titles!

2016 U.S. Master Tax GuideThe 2016 U.S. Master Tax Guide provides helpful and prac-

tical guidance on today’s federal tax law. This 99th Edition reflects all pertinent federal taxation changes that affect 2015 returns. Now available in eBook format – download to your computer instantly. Get fast and reliable answers to tax questions on the following topics:

Tax Rates and Tax Tables• Checklists• Individuals• Corporations• S Corporations• Partnerships• Trusts – Estates• Exempt Organizations• Income• Exclusions from Gross Income• Business Expenses• Nonbusiness Expenses• Losses – Passive Activity Losses• Tax Credits• Alternative Minimum Tax• Basis for Gain or Loss• Sales and Exchanges – Capital gains• Securities Transactions• Health and Employee Benefits• Foreign income and Transactions• Returns – Payment of Tax• Withholding – Estimated Taxes• Examination of Returns – Collection of Tax• Penalties – Interest• Estate, Gift and Generation-Skipping Tax• And much more!•

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valuable books:2016 State Tax Handbook •2016 GAAP Guide•2016 GAAP Handbook of Policies and Procedures•2016 Guidebook to California Taxes •2015 Multistate Corporate Tax Guide•

Get Great Monthly Discounts on Tax BooksEach month, Wolters Kluwer offers CSEA Members

40 percent off on top tax reference guides. Be sure to visit Wolters Kluwer and check out the latest discounted items.

Click here to start saving now when you shop online with your CSEA Member dis-count.

And don’t forget to check out the monthly Current Book Specials and save 40 percent on selected titles!

Use the Member discount code Y5373.

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30 March/April 2016 | California Enrolled Agent

MembersMembers

Quickfinder HandbooksOrder Online for Fast Service

SEA Members, you can now order your copies of Quickfinder online directly from Thomson Reuters! Members will automatically receive their discount by entering the CSEA promo code at checkout: Q520.

1040 Quickfinder

The 1040 Quickfinder Hand-book is your trusted source for quick reference to tax principles that apply when preparing in-dividual income tax returns. It covers all aspects of preparing a Form 1040, including tax law changes and IRS developments, and is presented in a concise, easy-to-use format.

With the 1040 Quickfinder Handbook, you’ll be on top of the ever-changing tax rules that apply to your individual client returns. Whether determining how the tax rules apply to a particular transaction or event, or how to report a particular tax item on the return, or simply looking up an amount or rate, the Handbook gets you the accurate answers you need quickly. Check below for details.

Small Business Quickfinder

The Small Business Quick-finder Handbook is your trusted source for quick reference to tax principles that apply when preparing business and fidu-ciary income, estate and gift, tax-exempt organization, and payroll tax returns. It includes detailed, true-to-life examples with filled-in forms and line-by-line explanations, and thor-oughly addresses tax law changes and IRS developments, all in a concise, easy-to-use format.

From start-up to termination issues, and everything in between – including employee benefits, accounting methods and principles, deductions, credits, and tax planning – this Handbook is a unique, one-stop solution for your many tax questions. Check below for details.

With Quickfinder Handbooks you receive:

Material that’s organized in a unique tab structure based on the IRS tax forms and schedules.•

Loads of quick reference tables and charts to get you the answers you’re looking for quickly.•

Examples throughout to illustrate how the tax rules apply and how to report items on the return.•

A “What’s New” tab that summarizes significant current-year tax changes that are addressed throughout the Handbook, • so you can quickly get up to speed on what’s changed.

References throughout the Handbook to relevant Internal Revenue Code sections, IRS regulations and rulings, and court • cases so you can dig deeper into a subject if needed.

Also, be sure to check out the Quickfinder Tax and Financial Tools – hundreds of tools that will save valuable time when • preparing tax returns or advising individual and small business clients in tax and financial planning matters.

Click here to order your Quickfinders online with the CSEA Member discount.

Use discount code Q520.

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31March/April 2016 | California Enrolled Agent

STEP 3 Calculate Quantity Discount (Total Quantity × Quantity Discount Per Item)

Total Quantity of All Items

(from STEP 2)

Quantity Discount Per ItemQuantity Discount

1 Item

2 Items

3 – 5 Items

6 – 10 Items

11 – 20 Items

21+ Items

$ 0.00 $ 3.00 $ 4.00 $ 5.00 $ 6.00 $ 7.00A (items) × per item per item per item per item per item per item = $ C

STEP 4 Calculate Shipping & Handling Charge (Total Quantity × S&H Charge Per Item)

Total Quantity of All Items

(from STEP 2)

Shipping & Handling (S&H) Charge Per ItemShipping

& Handling Charge*

1 Item

2 Items

3 – 5 Items

6 – 10 Items

11 – 20 Items

21+ Items

$ 7.45 $ 6.45 $ 5.95 $ 5.45 $ 4.95 $ 3.95A (items) × per item per item per item per item per item per item = $ D

* Excludes all online products. Please call for international orders.

STEP 5 Calculate Order Cost (Total Cost – Quantity Discount + S&H Charge)Total Cost

(from STEP 2)Quantity Discount

(from STEP 3)Shipping & Handling Charge (from STEP 4) Order Cost

B – C + D = $

STEP 6 Finalize Your Order

Sales Tax MN residents add 7.275% (Order Cost from STEP 5 × 0.07275) = $

Order Total Order Cost (from STEP 5) + Sales Tax = $

– + =

× =

× =

2015 ORDER FORM

STEP 1 Enter Quantity and Calculate Cost for Each Item

TheTaxBook SeriesFast-Answer Tax Books

Quantity Price Cost

Deluxe Edition Plus × $ 87 $ 78 = $

Deluxe Edition × $ 79 $ 71 = $

1040 Edition Plus × $ 60 $ 53 = $

1040 Edition × $ 52 $ 46 = $

Small Business Edition × $ 52 $ 46 = $

Health Care & Retirement × $ 59 $ 49 = $

All States Edition × $ 83 $ 74 = $

California Edition × $ 59 $ 49 = $

What’s New In-Depth × $ 59 $ 49 = $

Depreciation Edition × $ 59 $ 49 = $

Planning Strategies × $ 59 $ 49 = $

TheTaxBook CD (1040 & SB) × $ 89 $ 79 = $

TheTaxBook Binder × $ 16 $ 14 = $

TheTaxBook WebLibraryOnline Tax Research Library

Quantity Price Cost

WebLibrary Plus (1st User) × $ 249 $ 224 = $

WebLibrary Plus (Add Users) × $ 89 $ 79 = $

WebLibrary (1st User) × $ 139 $ 125 = $

WebLibrary (Add Users) × $ 69 $ 62 = $

TheTaxReview SeriesSelf-Study CPE/CE Courses

Quantity Price Cost

20 Online Credit Hours × $ 159 $ 119 = $

8 Online Credit Hours × $ 89 $ 71 = $

1 Online Credit Hour × $ 16 $ 14 = $

New Tax Law (3 hrs) × $ 45 $ 40 = $

Review Health Care Reform (4 hrs) × $ 49 $ 44 = $

Repairs vs. Improvements (4 hrs) × $ 49 $ 44 = $

Circular 230 Ethics (2 hrs) × $ 38 $ 34 = $

FastTaxFacts SeriesTax Reference Charts

Quantity Price Cost

FastTaxFacts Master Set × $ 59 $ 50 = $

Health Care Reform/ACA × $ 17 $ 14 = $

1040 and Small Business × $ 17 $ 14 = $

Clients With Children × $ 17 $ 14 = $

W-2 / 1099 Roadmap × $ 17 $ 14 = $

ClientTaxTools SeriesClient Handouts

Quantity Price Cost

Client Handouts CD × $ 109 $ 87 = $

Calendar with Mileage Logs (30) × $ 49 $ 39 = $

STEP 2 Total Quantity and Cost Columns

Total Quantity of All Items A Total Cost B

BESTSeller

BESTSeller

BESTSeller

BESTSeller

BESTSeller

PROMO CODE

(If P.O. Box, please include physical address)

(Needed for order and shipping confirmation)

Customer #

Company Name

Name

Address

City, State, Zip

Email

Day Phone Billing Zip(If different, needed for credit card orders)

PAYMENT OPTIONS Credit Card Money Order Check payable to: Tax Materials, Inc. MasterCard Discover Visa American Express

– – –

Your credit card will be charged for the entire order when the first item ships. For orders that include an online product, access is available immediately and your credit card will be charged when you order.

Expiration Date

–

Remember to include credit card number & expiration date

(security code not required)Cardholder’s Signature

Tax Materials, Inc.15105 Minnetonka Ind. Rd.Suite 221 Minnetonka, MN 55345

www.thetaxbook.comEmail: info@thetaxbook.comToll Free: 866-919-5277Local: 952-746-5276Fax: 952-746-5278

The more you order, the more you save on each item!

Calculate Your Quantity Discount Here

For DiscountsMention

Promo Code:

For DiscountsMention Promo Code:Online: thetaxbook.com/order

Phone: 866-919-5277Mail/Fax: Order form below

3 WAYS TO ORDER

SPECIAL PRICING! 210

210

2 1 0

$5 donation to CSEA for every copy of

TheTaxBook™ purchased using Promo Code 210.

California Society of

Enrolled Agents

To save, be sure to use Promo Code 210 when ordering! Orders are shipped first-in, first-out starting on the start ship date of the product.