Embed Size (px)
Citation preview
February 2012President’s MessageRosemary C. McMahon, EA, CPA
Dear fellow members of VASEA,
I hope everyone is off to a
good start in 2012! Along with
another busy tax season, this
year promises to bring more changes for the tax
professional community with the new regulation of
the Registered Tax Return Preparers (RTRPs).
As you begin this tax season, keep in mind some of
the resources provided by NAEA and VASEA to
support you during this busy time:
• NAEA’s web board – This NAEA “member
only” community web board allows you to make live,
real-time connections with thousands of EAs who
offer advice and share experiences, knowledge and
ideas. New professional relationships are only a
mouse click away – login at www.naea.org/
MemberPortal.
• NAEA’s Online Tax Research Service –
NAEA members have complimentary access to the
tax knowledge database and discounted fees for the
research service. Login at www.naea.org/
MemberPortal.
• VASEA Chapter meetings – VASEA’s five
local chapters hold regular monthly meetings in Blue
Ridge, Fredericksburg, Hampton Roads, Northern
Virginia, and Richmond. If you have never been to a
chapter meeting, make it a resolution to attend one
©
VIRVIRVIRVIRVIRGINIAGINIAGINIAGINIAGINIAVVVVVOICEOICEOICEOICEOICE
Published by the Virginia Society of Enrolled Agents
continued on page 2
In this Issue
President’s Message Pages 1-2
Welcome New Members Page 2
Education Committee Report Page 3
CE & Record Keeping Requirements Page 4-5
Chapter Updates Page 6-7
SEE Review Course Page 8
Calendar of Events Page 9
VASEA Leadership
President Rosemary McMahon, EA, CPAVice President Steve Rue, EA, CTRSSecretary Kenneth Whitley, Sr., EATreasurer Gerald Machek, EA
Directors
Diane Beverly, EA Jim Lam, Sr., EAJeffrey Bruce, EA Barbara Taylor Roe, EAJulie Compton, EA George Walsh, EAEdward Griffing, EA
Chapter Presidents
Blue Ridge David Tanner, EAFredericksburg Gerald Machek, EAHampton Roads George Walsh, EANorthern Virginia Bill Wilke, EARichmond Jeffrey Bruce, EA
Virginia Voice - February 2012 Page 2
Presidents Message - continued from page 1
in 2012. It’s a great way to network and discuss tax issues that all of us experience.
This newsletter includes reports on other VASEA programs and activities. Later this year, the VASEA
Board of Directors will be evaluating our Strategic Plan. We need and welcome your input. If you have any
questions, comments or suggestions about anything related to VASEA, please do not hesitate to contact
me or Heather Greenwell, VASEA Administrator at (804) 340-5225.
Sincerely,
Rosemary C. McMahon, EA, CPAVASEA President
Welcome New Members and Associates!
Alex Rolando Flores CubaVienna, VA
Burton J. HaynesBurke, VA
Karen Hughes, EAMechanicsville, VA
Susan H. Jones, EANorfolk, VA
Rebecca LutzClifton, VA
Margaret Maguire, EAForestville, MD
Gwendolyn RuckerWashington, DC
Gail A. StewartDunnsville, VA
David B. Turner, EARichmond, VA
Christina WedekindManassas, VA
Edward J. Wyrsch, EAHaymarket, VA
Virginia Voice - February 2012 Page 3
VASEA Education Committee Updateby Pat Inman, EA, Chair
The Education Committee is continuing to sort out the new and ongoing changes to CE sponsor
rules and what they mean for VASEA and its chapters. We are corresponding with the Return
Preparer Office for clarification and hope to have concrete information and new CE guidelines for
VASEA chapters by March. In the meantime, we are governed by our existing sponsorship agreement
with IRS. The VASEA Administrative Office is still the office of record for all CPE activities of VASEA and
local chapters.
VASEA held its annual Current Tax Issues Seminar in Charlottesville in late October with speakers from
IRS and VTAX. This was the first year in a long time that we held this event in another location besides
Richmond or Fredericksburg. By all accounts, the seminar was a success. We had a good turnout with a
number of members from the Charlottesville area participating who otherwise may not have attended. The
Education Committee decided to start rotating the Current Tax Issues Seminar, which is held in conjunction
with VASEA’s Annual Meeting & Town Hall, to make it easier for members in different localities, who
otherwise would not travel to attend, to experience a VASEA seminar and provide input to the Society.
Based on the 5-year location rotation schedule developed by the committee, the 2012 Current Tax Issues
Seminar will be held in Virginia Beach on October 25-26.
Plans are underway for the 2012 Spring Seminar scheduled for June 7-9 in Fredericksburg. As always,
this seminar will have top notch speakers presenting intermediate to advanced tax topics. New this year,
we are adding an additional education track aimed especially at RTRPs. The RTRP track will cover more
basic tax topics including personal exemptions, standard deductions, filing status, and more. Below is the
tentative program schedule. We hope you will join us.
Give yourself a pay raisethis Tax Season.
NNNeeNNNN ww
New
$35 an hour Income +=$150 an hour.
www.personable.com
800.688.4281Get free trial today
Escape and automateyour data entry chore.
Continuing Education and Recordkeeping Requirementsby Irene Lawrence, EA2 3
4
6 8
9
8
On June 3, the IRS issued its long-awaited revision of Circular 230. Most of the changes fall into threecategories: the Return Preparer Office (RPO), a spin-off from the Office of Professional Responsibility(OPR); the introduction of Registered Tax Return Preparers (RTRPs) as practitioners governed by Circular230; and changes in continuing education (CE) requirements for all, but especially for CE providers. Thisarticle will deal with the CE requirements mostly as they apply to us rank-and-file EAs, the consumersrather than the providers of continuing education.
A little background: in her remarks at the 2011 CSEA Super Seminars, OPR Director Karen Hawkinsmentioned that OPR had been performing compliance checks on Enrolled Agents’ continuing education,and that the EAs who were audited did not, in general, do particularly well in providing substantiation for theCE hours that they had claimed. Ms. Hawkins added that she personally thought that most of those EAshad indeed completed the hours they claimed, but their recordkeeping was not, to put it mildly, up to theusual EA standard of excellence.
With the spin-off of the new RPO to handle the administration of Circular 230 practitioners including thenew RTRPs, OPR will be free to concentrate even more on ethical issues. It is only common sense toexpect that in the future OPR will pay even more attention to CE compliance. Therefore, now might be agood time to check that our own recordkeeping is compliant and up to date.
First, a quick look at the changes as they affect us consumers of education:
We are now required to keep our records for four years (formerly three) from our date of renewal.
The CE provider (formerly, the “sponsor”) is required to obtain a “continuing education providernumber” and, for each program presented, a “continuing education provider program number.” Weas education consumers are required to keep a record of the program number (in addition to every-thing else).
As before, programs may be classes or self-study, face-to-face, written or electronic, and instructors mayclaim credit for preparation and teaching hours, although the maximum instruction credit hours allowed hasbeen severely limited. However, practitioners may no longer claim CE credit for writing and publishingarticles (such as this one).
As for the rest of the CE requirements, there has been no change in the CE hours required for renewal forEAs. To review, EAs must obtain 72 hours in the three-year cycle, with a minimum of 16 hours in any oneyear, and a minimum of two hours of ethics or professional conduct in each year. RTRPs, who apparentlyat this time must renew annually, must obtain 15 hours each year, including two hours of ethics or profes-sional conduct and three hours of federal tax law updates. Every CE program for EAs and RTRPs must bea qualifying program “designed to enhance professional knowledge in Federal taxation or Federal taxrelated matters” and “be a qualifying continuing education program consistent with the Internal RevenueCode and effective tax administration.” Note that “Federal tax related matters” is usually construed tocover state taxes, but the issue does come up from time to time. Also note that Members and Associatesof the California Society of Enrolled Agents and the National Association of Enrolled Agents are required tocomplete 30 hours of CE each year, although the “extra” hours may be in more peripheral subjects such aspractice management.
The administrative requirements for a qualifying CE program also have not changed. They must includephysical attendance and a qualified instructor/leader/speaker for “formal” programs, or registration and a
Page 4 Virginia Voice - February 2012
Calendar of Events - continued on page 5
Virginia Voice - February 2012 Page 5
measure of completion, usually an exam, for individual study programs; a certificate of completion; andwritten or electronic educational materials. Instructors can find their parallel requirements in §10.6(f)(2)(iii).
Once we have taken our qualifying courses, we have to keep substantiation — and that is where EAshave been weak. Again, the period is now four years following the date of renewal. Let’s take as an ex-ample Emma Agent, EA, whose year of renewal is 2012. Her three-year period prior to renewal is 2009,2010, and 2011. She completes all her required CE, distributed appropriately through the three years, andrenews her enrollment in April 2012. She is required to keep her records from 2009, 2010, and 2011 untilApril 2016, four years after her renewal date of April 2012. Thus her oldest records may be seven years oldbefore she may safely discard them.
RTRPs also must keep their substantiation for four years after renewal, but currently their renewals areannual rather than triennial. Thus an RTRP who renews in 2012 will have to keep until 2016 only substantia-tion for education claimed in 2011 and later.
Now, what information is Emma (and are we) required to keep? Our recordkeeping requirements aresummarized in Circular 230, §10.6(h)(1). (Instructors can find their requirements in §10.6(h)(2).)
Recordkeeping Requirements:
• The name of the sponsoring organization;• The location of the program;• The title of the program;• The qualified program number;• A description of its content;• Written outlines, course syllabi, textbook, and/or written or electronic materials provided or re-
quired for the course;• The dates attended;• The credit hours claimed;• The name(s) of the instructor(s), discussion leader(s), or speaker(s), if appropriate; and• The certificate of completion and/or signed statement of the hours of attendance obtained from
the CE provider.
Customarily, this information is included on the Certificate of Completion that the provider issues. Pre-sumably, providers will include the new program number on new versions of their certificates as the num-bers begin to be required. Nevertheless, it is ultimately the practitioner’s responsibility to keep all therequired information—and find it again if audited!
Because of the complexity and magnitude of the issues involved in setting up the RTRP program, theTreasury Department and the IRS have decided to delay implementing the continuing education programrequirements for RTRPs for at least the first year of registration. But that doesn’t let EAs off the hook. Thenext time the Director of the Office of Professional Responsibility discusses EA educational compliance,let’s be the standard setters.
Irene Lawrence, EA, has her own practice, Lawrence Associates, now in Menlo Park, CA. Her tax specialties are personalincome taxes and expatriate taxes. She has been active in CSEA, first in the East Bay Chapter, then in the Mission Chapter,since she became an Enrolled Agent in 1987. She has served many years on the CSEA Ethics and Professional ConductCommittee, and was President of CSEA in 2006-2007. Her first career was as a teacher and professor; she holds a B.S. inmathematics from Stanford University, and a Ph.D. in theology and linguistics from the Graduate Theological Union in Berkeley,CA. She can be reached at [email protected].
continued from page 4
2
Hampton Roads Chapter Update
A monthly breakfast meeting, with CPE, is usually held on the third Wednesday of each monthexcept May. The breakfast meetings begin at 7:30 a.m. and are held at the Hilton Norfolk Airport ,1500 N. Military Highway in Norfolk. We do not have a breakfast meeting in May, but instead, hold afour-hour seminar on a Saturday in mid-May.
Upcoming Events
• Wednesday, February 15, 2012: Elder Tax Law Updatepresented by Andy Hook, Esq., Oast & Hook
• Wednesday, March 21, 2012: Speaker and topic TBA.
• Wednesday, April 25, 2012: Tax season roundtable.
Northern Virginia Chapter Update
A dinner meeting with one hour of CPE is generally held on the fourth Wednesday of each month at6:30 p.m. at the Marco Polo Restaurant in Vienna. Daytime seminars (3-4 hours of CPE) are held inMay and September.
We did not hold the Tri-State seminar this January 2012, due to logistical issues. We hope toresume the seminar in January 2013. We realize how valuable this seminar is to many tax professionalsin the DC metro area and we regret that we were not able to provide the knowledge and updates theyhave come to rely on from this seminar. You can check the VASEA website for updates on theseminar during the next year. If we have information pertaining to the 2013 seminar we will post it tothe website.
Join us on Wednesday February 29th at the Marco Polo Restaurant in Vienna. Cocktails at 6:30and dinner at 7:00. RSVP through the VASEA website.
Blue Ridge Chapter Update
The Blue Ridge Chapter of the Virginia Society of Enrolled Agents meets monthly on the thirdWednesday at various restaurants at noon in the Lynchburg, Roanoke, Rocky Mount area. We meeteach month except for November, February and March. Each month we have different speakersexcept for April when we have a roundtable discussion about the previous tax season. Most lunchesoffer continuing education credits. Speakers include IRS personnel, tax attorneys, local governmentofficials or members of our group talking about theirspecialty.
The Blue Ridge Chapter President is David Tanner, EA, Vice-President is Michael G. Harrison, EA,and Secretary-Treasurer is Fritz Greimel, EA.
Virginia Voice - February 2012 Page 6
Page 7 Virginia Voice - February 2012
Fredericksburg Chapter Updateby Gerald Machek, EA, Chapter President
The Fredericksburg Chapter meets monthly for dinner on the third Wednesday at 6:30 p.m. exceptfor June at Ristorante Renato, 422 William Street, in downtown Fredericksburg.
Our meetings generally have a speaker, but during the months of February, March, and April wehave roundtable discussions on current tax matters. The remainder of the year our meetings generallyhave a speaker who is capable of providing Continuing Education Credits. Past topics have beenReverse Mortgages, Converting Traditional IRA’s to Roth IRAs, and VA State Issues. Every Januarywe have invited the local Commissioners of Revenue: City of Fredericksburg, Stafford County, andSpotsylvania County to come and speak to us on local tax issues and tax processing that they do forthe Commonwealth of Virginia.
Our chapter leadership is: Gerald J. Machek, EA, President; Carolyn Brammer, EA, Vice President,and Deborah Gladden, EA, Secretary Treasurer.
Richmond Chapter Updateby Jeffrey S. Bruce, EA, Chapter President
A breakfast meeting, with one hour of CPE, is generally held on the second Thursday of each monthexcept April. The breakfast meetings begin at 7:30 a.m. and are held at the Westwood Racquet Club,6200 West Club Lane in Richmond. The registration fees include breakfast and are $20 for membersand $25 for non-members.
Fees are collected on-site day of meeting, checks are much preferred to cash. An advance headcountis imperative because of the food and meeting room size logistics. Attendees should register by emailto the Richmond Chapter Treasurer Brenda Hayes, EA by lunchtime on the Monday prior to a meeting.Her email is [email protected] Persons who have an interest in attending but who are noton the Chapter meeting notice email list could (and should) indicate their intention to attend throughthe VASEA office or directly to Brenda.
Upcoming Events
• Thursday, February 9, 2012 - Roundtable Discussion
• Thursday, March 8, 2012 - Roundtable Discussion
Virginia Voice - February 2012 Page 8
2012 VASEA-Gleim SEE Review CoursesWith IRS increasing oversight of federal tax return preparers, there is no better time to become an Enrolled
Agent. VASEA is committed to help aspiring EAs prepare and pass the Special Enrollment Exam. Our
“15-Week Live Intensive SEE Review Courses” kick off in May in Fredericksburg, Richmond, Vienna, and
Virginia Beach. Our course is designed so that students study for each part and then take the exam for that
part before they come back and study for the other parts.
Locations:
Fredericksburg - Saturdays, 10:00 am -1:00 pm
Richmond - Tuesdays, 6:00-9:00 pm
Vienna (Northern Virginia) - Tuesdays, 6:30-9:30 pm
Virginia Beach (Hampton Roads) - Saturdays, 9:00 am-noon
Course Includes:
Gleim exam preparation materials:
EA Review Books; Parts 1, 2, and 3
Audio Review Download; Parts 1, 2, and 3
EA Gleim Online; Parts 1, 2, and 3
EA Test Prep CD; Parts 1, 2, and 3
Gleim Personal Counselor
and
45 hours of local classroom instruction
Cost:
Registration Fees NAEA Members & Associates Non-NAEA Members
All Three Parts (15 weeks) $1,275 $1,340
Part 1 Only (5 weeks/sessions) $525 $550
Part 2 Only (7 weeks) $740 $780
Part 3 Only (3 weeks) $320 $340
2012 Classes Start In May ~ Class size is limited, so register early.
Contact
Barry Iacono: (757) 671-7000; [email protected]
Heather Greenwell: (800) 344-8732; [email protected]
Additional Information:
www.prometric.com/irs
www.gleim.com/accounting/ea
www.irs.gov
Page 9 Virginia Voice - February 2012
2012 Calendar of Events
2415 Westwood Avenue ~ Richmond, VA 23230Phone: (804) 340-5225 / (800) 344-8732
Fax: (804) 288-3551Email: [email protected]: www.vasea.org
VASEA 22nd Annual Spring Seminar (22 hours CPE)
Thursday-Saturday, June 7-9, 2012, Fredericksburg Expo & Conference Center
VASEA’s flagship tax seminar. Topics will include K-1’s, Real Estate Rentals, Net Operating Loss, Schedules
A & B, IRM & Audit Technique Guides and a two hour Practice Management session. Ten hours of basic tax
CPE for Return Preparers. See page 3 of this newsletter for more details.
VASEA Current Tax Issues Seminar (10 hours CPE)
Thursday-Friday, October 25-26, 2012, Holiday Inn & Suites North Beach, Virginia Beach
Speakers from IRS, Virginia Department of Taxation, and elsewhere discuss the latest changes in tax law.
This seminar is held in conjunction with VASEA’s Annual Meeting & Town Hall providing a great opportunity
to network and share ideas on the direction of the Society and the tax profession.
VASEA-Gleim 15-Week Live SEE Review Course (45 hours CPE for RTRPs -- not for EAs)
Courses start in May - see page 8 of this newsletter
With IRS increasing oversight of federal tax return preparers, there is no better time to become an Enrolled
Agent. VASEA is committed to help aspiring EAs prepare and pass the Special Enrollment Exam. Our
“15-Week Live Intensive SEE Review Courses” kick off in May in Fredericksburg, Richmond, Vienna, and
Virginia Beach.
Check the VASEA website for updated information on eventsheld by VASEA and its local chapters.
www.vasea.org
