iowa cpa - november 2014

Iowa Society of CPAs... Advancing the professional success of our members

ISCPA sets 2015 legislative agenda

After months of political ads, taking a break from politics after Election Day probably sounds pretty good about now. Reality check—the political season has only begun!

ISCPA staff and legislative team have been busy analyzing legislation that affects the accounting profession and crafting solutions for Iowa CPAs. Take a look at the identified issues we’re watching on your behalf in the 2015 legislative agenda (http://goo.gl/4FNENU).

ISCPA’s legislative teamMeet the Iowa CPAs and key players who help us to coordi-nate and monitor our legislative and regulatory platform.

Scott Sundstrom, legislative councilSundstrom is a shareholder at Nyemaster Goode PC in Des Moines, and lobbies on behalf of ISCPA before the legislature, the governor and regulatory agencies. He monitors legislation and informs ISCPA of bills that may impact the profession, primarily in Iowa, and

the business world in general.

Peg Trevino, ISCPA Legislation Committee chairTrevino is the owner of Trevino Associates PC in Fort Dodge. As chair of the Legislation Committee, she leads and encourages col-laborative input within the committee, ensures that it performs according to its purpose, and

supports ISCPA in seeing that the objectives of the commit-tee are fulfilled.

Mark Wackerbarth, AICPA elected council representativeWackerbarth is managing partner of Denman & Company LLP in West Des Moines. As AICPA council representative, he is part of the govern-ing body of the AICPA, stays well-informed on developments within the profession, and

provides input on council actions that affect the profession as a whole.

Steve Marlow, federal key person coordina-torMarlow is CFO of Care Initiatives Inc in West Des Moines. As federal key person coordina-tor, he stays informed on federal legislative issues affecting the profession and contacts AICPA Government Affairs when learning of

political developments affecting members of Iowa’s congres-sional delegation. He communicates issues that arise with Iowa senators and representatives, and provides education and talking points to key person contacts on legislative activi-ties and strategy.

Key person contactsKey person contacts are members who volunteer to establish and maintain regular and continuing communications with one or more legislators to reinforce the work of ISCPA’s lobby-ist and staff. Interested in being part of the Key Person Con-tact Program? Visit the Grassroots page in the “Resources” section of www.iacpa.org or visit http://goo.gl/hXNqTh.

Legislation CommitteeThe committee assists in the formulation and guidance of ISCPA’s legislative policy and the execution of policies as authorized by the board of directors. They help monitor state policymakers, and with input from ISCPA members, deter-mine PAC distributions to provide financial support to candi-dates for the Iowa Legislature. Visit http://goo.gl/6ExyWG to view members of the 2014-15 Legislation Committee.

Iowa CPA Political Action Committee (ICPA/PAC)Like it or not, politics play a vital role in how CPAs and ac-counting professionals do business. Political support in our profession is invaluable. ICPA/PAC contributions are disbursed to candidates who understand our issues, and sup-

November 2014

Newsletter from the Iowa Society of CPAs, your primary source for profession-related information

Continued on page 3

2 | Iowa CPA | November 2014 www.iacpa.org

2014 liaison meeting with IDRBy William Lipkea and Heath Beck, ISCPA Taxation Committee

On Aug. 6, 2014, members of the Taxation Committee met with Iowa Department of Revenue

(IDR) representatives Courtney Kay-Decker, Director; Victoria Daniels, ad-ministrator, Policy and Communications Division; and Jim McNulty, program manager, Policy and Communications Division. Discussion focused on activi-ties and changes at the IDR since our last meeting, and questions prepared by the committee.

IDR updateThe IDR launched its new website https://tax.iowa.gov in September. It offers a search box just for tax forms, tax education videos, links to online services and key information for taxpayers, tax professionals and local governments.

Partly as a function of adopting the MeF Modernized E-file system, from the per-spective of IDR, last filing season went very smoothly. Regarding recent IDR notice activity, IDR is reviewing criteria in an effort to help reduce the number of notices where no adjustment should have been made.

Discussion topicsIowa fiduciary returns: The department anticipates that effective March 2015

they will be accepting e-filed fiduciary returns for the 2014 tax year.

E-filing: The IDR will not be adopting the recent IRS rule changes accepting electronic signatures on its e-file au-thorization forms. An original taxpayer signature is required on paper returns filed when the Iowa e-filed return has been rejected.

IA POA processing: Power of Attorney (POAs) may go through the registration system if you wish to have them kept on file for future reference. Although there may be delays in getting POAs recorded due to staffing, they can still be sent directly to the field auditors working on specific cases.

State tax tribunal: Legislation was introduced this past year, but died when concerns were expressed over the small claims process, which included a “no appeals” aspect. The IDR is anticipating introducing legislation again during the 2015 session.

Iowa capital gains deduction: The only current activity is an Iowa Supreme Court case regarding material participa-tion requirements for non-farm rental property. A decision is expected by the summer of 2015.

Individual income tax returns: To as-sist preparers and clients in properly reporting and paying taxes, the depart-ment has identified these areas as the highest level of noncompliance. To expedite the process:

• File electronically for increased ac-curacy and speed.

• Enter all information requested, review, and attach all schedules.

• Report the correct federal tax re-fund (if applicable) and taxes paid.

• Include a copy of the federal return.• Mail your return to the correct ad-

dress.

Individual taxpayer payment confirma-tion: The IDR is working toward reinvigo-rating the online system for confirming tax payments received. This is not expected in time for next filing season,

since they are addressing security is-sues.

Iowa tax credit administration: To fa-cilitate compliance, the IDR has a good working relationship with agencies such as the Iowa Economic Development Au-thority (IEDA), who monitor credit activity before the credits are awarded. The department applies normal audit proce-dures to Iowa tax credit administration.

Non-compliance: The department indicated that they utilize information from many different sources to confirm compliance and identify non-filers.

Legislative issues

The IDR will continue to emphasize the importance of passing an IRC Update Bill early in the 2015 legislative session. IDR representatives reviewed some of the more important changes from the 2014 session in these areas: (See full details in link to original article.)

• Sales and use tax• Motor fuel tax• Property tax• Income tax–individual and corpora-

tion

Other tax updatesSocial security benefits are no longer taxable in computing tax under the tax tables, but up to 50 percent is included in determining whether a taxpayer has sufficient income to file a tax return, and is included in the alternate tax cal-culation. Iowa earned income tax credit is 15 percent of federal credit. Estimat-ed taxpayer trust fund credit is $40.

IDR’s full 2014 legislative summaries can be accessed at https://tax.iowa.gov/idr-legislative-summaries.

Read this article in its entirety at http://goo.gl/okQNaV.

William Lipkea is a tax manager with TD&T CPAs and Advisors PC in Cedar Rapids. Heath Beck is a tax manager with CasterFrame PC in West Des Moines.

Issue No. 2014-11

Published eleven times per year by the Iowa Society of Certified Public Accountants (ISCPA). Send address changes, advertising inquiries and all correspondence to:

Iowa Society of CPAs950 Office Park Rd, Ste 300West Des Moines, IA 50265-2548 Email: [email protected]: www.iacpa.orgor, contact the ISCPA office:515-223-8161/800-659-6375

Front page photo: Gray’s Lake, Des Moines.Photo by: JIM HEEMSTRA

www.iacpa.org Iowa CPA | November 2014 | 3

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port ballot initiatives or legislation that positively affect the profession.

Be part of the PACWhether you’re a newcomer to ICPA/PAC or a longstanding supporter, we encourage you to make an annual contribution commitment. Make a contribution by visiting the Grassroots page in the “Resources” section of our website www.iacpa.org or at http://goo.gl/oMkaDw. Learn more about ICPA/PAC http://goo.gl/yUNJMC. Contributors are encouraged to contact [email protected] and let us know which candidates you think we should support.

ICPA/PAC at a glance • Pools together personal contribu-

tions from Iowa CPAs and account-ing professionals.

• Allows the collective voice of our members to be heard in Iowa.

• Raises funds for political candi-dates running for the Iowa Legis-lature.

• Sends a clear message that issues are important to our profession, the business community and public interest. A powerful PAC = A pow-erful profession.

• Disbursed by the Legislation Com-mittee.

Continued from page 1

ISCPA sets 2015 legislative agenda

Revenue recognition: Do you have a plan?

Benjamin Franklin once said, “By failing to prepare, you are prepar-ing to fail.” That’s good advice

from Ben, but even this major figure in American history might question what action to take with the Financial Accounting Standards Board’s new revenue recognition standard.

According to AICPA’s Kim Kushmerick, the standard “presents the most signifi-cant accounting change many veteran CPAs have seen.”

Find out what you can do to prepare in this article from Kushmerick, who provides a high-level road map designed to help your clients and employers build a plan and implement the new stan-dard. Read the article at: http://goo.gl/Y73v6V.

Related ISCPA programsNov. 20 South Sioux City, Neb.: Annual

Update for Accountants and Auditors (AUAA-SC)

Nov. 21 West Des Moines: Annual Update for Accountants and Auditors (AUAA-DM)

Dec. 5 Webinar: Revenue Recogni-tion: A New Day is Dawning (RERE)

New website for IAEB

The Iowa Accountancy Examining Board (IAEB) has launched a new website—complete with easier

navigation, and streamlined, user-friend-ly features. The website address has changed to www.plb.iowa.gov. Users will be directed to the new site if they are using the previous web address.

New IAEB staffEllen Bridenstine has joined the IAEB staff as accountancy licensing special-ist. You may reach Ellen at [email protected] or 515-725-9021.Connect with ISCPA


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Affordable Care Act impact on employersBy Lance Dieleman, ISCPA Taxation Committee

The IRS continues to provide more guidance on the Affordable Care Act (ACA) and how it impacts

employers. IRS Notice 2013-54 (www.irs.gov/irb/2013-40_IRB/ar11.html) explains how Health Reimbursement Arrangements (HRAs) interact with employer payment plans. The phrase “employer payment plan” is used to describe employers’ payments for indi-vidual health insurance premiums that are treated as tax-free to the employee. Effective Jan. 1, 2014, businesses must ensure that they are in compliance with the provisions of Notice 2013-54. Fail-ure to do so could result in the employer facing penalties up to $100 per day per employee. Dustin Petty with Base, an employee benefit administration company in Adel, met with the Taxation Committee to help clarify what some of the implications are for employers.

HRAs that have one participant (one eligible employee) continue to operate similarly to how they have in the past. Employers may reimburse for individual health insurance premiums and dental, vision, long-term care and Medicare pre-miums, along with any other qualifying medical expenses. The plan must have a maximum benefit defined.

Notice 2013-54 describes the changes for how individual health insurance premiums must be handled for employ-ers that have an HRA with two or more participants, but do not have group health insurance. First, an employer may not reimburse for individual health insurance premiums, including Medicare Part B. Second, the HRA plan in this situ-ation is not allowed to have a maximum benefit stipulated per participant. Ex-penses that do qualify to be reimbursed under this scenario are dental, vision, and long-term care premiums and other qualifying medical expenses.

An employer that has two or more participants and provides group health insurance may integrate an HRA into

their Section 125 Cafeteria Plan. An HRA in this situation must have a plan maximum and allows the employer to specify which expenses will be reim-bursed through the HRA (deductibles, copays, prescriptions). This will allow the employer to set a plan maximum on the HRA with each participant.

Ultimately, employers may not reim-burse individual health insurance premiums through HRAs when there are two or more participants. This is because under ACA, the HRA raises the level of a group health plan and there-fore, is subject to the market reforms. When subject to the market reforms, group health plans are prohibited from imposing an annual dollar limit on es-sential health benefits. The stand-alone employer HRA must satisfy the annual dollar limit prohibition. If the HRA reim-burses for individual health insurance premiums, it is considered an employer payment plan that does not satisfy that prohibition. HRAs also fail to comply with market reforms because no-cost preventative services are not available to employees in all instances. However, it should be noted that HRAs limited to reimbursing excepted benefits, such as dental, vision and other supplemental premiums, are exempt from being sub-ject to the new market reforms.

Lance Dieleman is an account manager at Schuring Uitermarkt Sims McCleish & Ver Meer PC in Urbandale.

May 7

Iowa CPA Golf Classic The Legacy, Norwalk

100th Anniversary Celebration The Meadows, Altoona

May 8Annual Meeting & Leadership

Conference The Meadows, Altoona

Save the Date


New Members

Zachary M. BeamanHamilton Juffer & Associates

LLPDes Moines

Philip J. BieberKiesling Associates LLP

EmmetsburgDavid M. ChristensErnst & Young LLP

Des MoinesBrian Demijan

Deloitte & Touche LLPDavenport

Colin DietrichErnst & Young LLP

Des MoinesTrisha L. Ferguson

Winther Stave & Co LLPMilford

Heather A. GeissingerCliftonLarsonAllen LLP

Cedar RapidsTiffany L. Goodman

CliftonLarsonAllen LLPWest Des MoinesNicholas HazardMcGladrey LLP

Iowa CityDr. Dawn A. Humburg

Iowa Central Community College

Fort DodgeJames P. Kent

HamptonJoseph M. LeeMcGladrey LLP

Des MoinesStephanie N. Majeran

K L Smith PCWest Des MoinesTonya R. Maxwell

Global Atlantic Financial Group

Des MoinesSteven Miles

Hamilton Juffer & Associates LLP

Des Moines

Andrew W. MogolovKPMG LLP

Des MoinesRobert A. Poterucha

KPMG LLPDes Moines

Elizabeth A. ReedDeloitte & Touche LLP

Des MoinesJamie G. Seratt

PricewaterhouseCoopers LLPDes Moines

Sandra K. StruthersEMC National Life Company

Des MoinesCorey M. Vannausdle


Mark E. VisserWest Liberty Foods LLC

West LibertyKara N. Wilson


Professional Affiliates:Dalton Friedhoff


Adam HesseltinePricewaterhouseCoopers LLP

Des MoinesCarlene M. Hinds

Roth & Company PCDes Moines

Andrew MartinTimmins Kroll & Jacobsen LLP

UrbandaleRob Newland

PricewaterhouseCoopers LLPDes MoinesEthan Scott

Timmins Kroll & Jacobsen LLPUrbandale

Morgan WeedaTimmins Kroll & Jacobsen LLP

Urbandale

Exam-Qualified Affiliates:Alexandra M. Cornell

Bergan Paulsen & Company PC

Cedar RapidsMatthew R. Haley

Shull & Co PCIndianola

Janae HoltkampKPMG LLP

Des MoinesDerek Johnson

McGowen Hurst Clark & Smith PC

West Des MoinesCharles F. Knight


Jared L. KuetheBergan Paulsen & Company

PCWaterloo

Alex LangpaulMcGowen Hurst Clark &

Smith PCWest Des Moines

Christopher E. LewisMerit Resources Inc

UrbandaleAdam T. Magee


Cedar RapidsKelli Naughton


CoralvilleCharles C. Njoya


William H. Nolte IIIBergan Paulsen & Company

PCWaterloo

Tyler PetersonBergan Paulsen & Company

PCCedar Rapids

Weston C. PieperRoth & Company PC

Des Moines

Shogun PradhanPricewaterhouseCoopers LLP

Des MoinesGrace Schlagetter


Eric L. SchlehuberPricewaterhouseCoopers LLP

Des MoinesMaggie L. Simonson


Stephanie A. Van WykBergan Paulsen & Company

PCCedar Rapids

Chelsey A. Vanden BergPricewaterhouseCoopers LLP

Des MoinesAbby B. WenckMcGladrey LLP

Des Moines

Student Affiliates

Buena Vista UniversityKira Graf

Drake UniversityAmanda J. PlatteDaniel W. Sales

Mitchell ThompsonGrand View University

Stephanie B. BeyeaTyler P. Smith

Kyle G. StillmunkesIowa State University

Meghan GallagherLaura B. GarrettJessica Roach

Charlotte A. RoscoeSimpson College

Jill BaethUniversity of Maryland

Juli FosterUpper Iowa University

Charles Brock


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CPE SpotlightUnited Way seeks VITA volunteersBy Donavan Honnold, United Way of Central Iowa, Des Moines

If you know your way around the IRS Form 1040, or just enjoy helping oth-ers, then United Way VITA program

needs YOU.

VITA is United Way’s Volunteer Income Tax Assistance program. Taxpayers meeting certain income guidelines — about $57,000 per year or less for 2014 — are eligible to have their tax re-turns completed and filed free of charge by volunteer tax preparers.

VITA sites are located in Des Moines and surrounding communities, are open daytime, evening and weekend hours beginning in late January, and continuing through the April 15 federal filing dead-line. The VITA SuperSite will be located in a space donated by Polk County in the RiverPlace building, 2309 Euclid Avenue, Des Moines.

During the 2014 tax season, United Way volunteers completed and filed returns for 5,061 lower-income central Iowans, returning over $8.5 million to the local

economy. This included over $2.5 million in federal and state Earned Income Tax Credits (EITC), the country’s largest anti-poverty program for people who work.

“VITA is one of the very best examples of volunteer service provided each year,” said Renee Miller, United Way director of income. “We see throughout tax season the stream of people coming to our VITA sites, and how the kindness and exper-tise of the tax volunteers can transform an event as confusing and daunting as a tax return, and turn it into a positive experience — one that demonstrates the caring power in our community, and often transforms their financial situation for the better.”

What to expectIn a typical day, Miller says VITA volun-teers will assist young single mothers; help low-income elderly clients, often with health issues, continue to live in dig-nity; and many immigrant families who

are new to this country and struggling to build a new life here, begin to under-stand our complex income tax system.

VITA volunteers may serve as tax pre-parers, quality reviewers and greeters. United Way will provide the training and materials necessary to become IRS-cer-tified. Training is offered in a classroom setting or online for those with previous experience. Classroom training begins in December and consists of 10 hours of instruction.

As a VITA volunteer, you will be able to choose the site and schedule that is most convenient for you.

To learn more or to sign up to be a VITA volunteer, please contact Sarah Witt at 515-419-2863, [email protected]. For updated information about VITA sites and hours, please visit United Way’s website at www.unitedwaydm.org/vita.

Your insights are critical

Iowa CPAs are encouraged to down-load, read, and give input on the AICPA’s discussion paper Enhancing

Audit Quality: Plans and Perspectives for the U.S. CPA Profession on the AICPA’s online EAQ Community (aicpa.org/EAQpaper). Comments are due Nov. 7, 2014. You are also encouraged to send your comments to ISCPA’s Judy Chaplin at [email protected].

Membership THANK YOU

We extend our appreciation to every-one who has renewed their member-ship and commitment to ISCPA. We are thrilled to have the opportunity to continue to work on your behalf. We are also excited about the nearly full page of new members listed on page 5! We appreciate our board and other members who have told their fellow CPAs about us.

Forgot to renew or just haven’t got-ten around to it yet? Log on to www.iacpa.org to conveniently renew online today. Or give us a call at 515-223-8161 or 800-659-6375 and we’ll be happy to help you or answer any questions you have.

We have a few 2014 Tax Tips brochures

left—first come, first served. To order call

800-659-6375.


CPE SpotlightRequest a CPE topicDo you have a CPE topic you would like to see ISCPA offer? Send your CPE curriculum suggestions to Education Di-rector Kathy Nicholson at [email protected]. We welcome your ideas on speakers, topics and what time of year to schedule.

New! Half-day seminar for insurance industry CPAs

Introduction to Insurance Account-ing & ReportingDec. 8, 1-5 p.m., Homesteaders Life Company, West Des Moines

Church taxes–Do you know the law?CPAs often serve as church treasur-ers or are sought out to give advice to those who handle church finances. Even though most churches do not file tax returns and pay tax, like other nonprof-its, churches have to stay within the law in order to maintain their tax-exempt sta-tus. Plan to attend Church and Minister Taxation, Dec. 16, in West Des Moines to examine requirements and the pos-sible problems churches can have in complying with the tax provisions.

Practical ideas for time managementAttend highly effective seminar Skills to Succeed 24/7: Time Manage-ment, Nov. 7, 8 a.m.-12:30 p.m., at the Holiday Inn Hotel & Conference Center in Coralville, presented by Dr. Susan Johnson. Past ISCPA participants had this to say about the seminar:

“Great class! Speaker had a good sense of humor to keep the class interesting.”

“Susan was an excellent speaker, very knowledgeable with lots of practical

ideas.”

“Lively speaker, kept our attention.”

Upcoming ethics seminars

Beyond the Code: Ethical Decision Making in the Real WorldNov. 24, Holiday Inn Hotel & Confer-ence Center, Coralville

Building Your Moral CapacityDec. 15, Sheraton West Des Moines

Iowa Department of Revenue update

Nov. 24, Holiday Inn Hotel & Confer-ence Center, Coralville

Dec. 15, Sheraton West Des Moines

Invest in your staff–Tax Training seminars

Preparing Individual Tax Returns for New Staff and Para-ProfessionalsNov. 24, West Des Moines

The Complete Guide to Preparing LLC, Partnership and S Corporation Federal Income Tax ReturnsNov. 25, West Des Moines

Form 1041 Made EasyDec. 5, West Des Moines

2015 CPE catalogISCPA provides an online CPE catalog that includes the most current informa-tion on course offerings, including newly added programs. If you would like to receive a printed copy of the 2015 CPE catalog (once completed) please notify CPE Administrator Katie Shields at [email protected] or 515-223-8161, 800-659-6375.

Support

Donate at: www.iacpa.org.To learn more about the

Iowa CPA Education Foundation, visit: www.iacpa.org/AboutISCPA/

EdFoundation.aspx.

SustainSend us your photos for ISCPA’s 100th anniversary

Do you have old ISCPA photos or photos from your firm or business from 1915 to today? Photos of old office equipment or print publications from the past? How

about fashion faux pas photos of Iowa CPAs with big hair, platform shoes or bad ties? Please share them for our 100th anniversary edition of Iowa CPA (April 2015) and our “100 Wall” at the May 7-8, 2015, ISCPA 100th Anniversary Celebration.

Send your photos to: ISCPA, 950 Office Park Rd, Ste 300, West Des Moines, IA 50265. Include a note and mailing address if you would like your materials returned.


November3 2014 Individual Income Tax Workshop (iitw) West Des Moines4 2014 Corporate/Business Income Tax Workshop (citw) West Des Moines7 Skills to Succeed 24/7: Thriving Amidst Chaos–Organizational & Time Management (sstm-ic) Coralville

10 Tax Advisors Update (tau-ic) Coralville11 Tax Advisors Update (tau-dm) West Des Moines12 Basis/Distributions for Pass-Through Entities: Simplifying the Complexities (badi-sf) Sioux Falls12 Business Partner Fraud/Vendor Management Webinar (FREE for ISCPA Members) (bpfweb1) Webinar

13 Surgent's Handbook for Mastering Basis, Distributions, and Loss Limitation Issues for S Corporations, LLCs, and Partnerships (hmbi)

West Des Moines

13 Tax Advisors Update (tau-sf) Sioux Falls14 The Top 50 Business Tax Mistakes Practitioners Make & How to Fix Them (btbb) West Des Moines17 The Complete Guide to Payroll Taxes and 1099 Issues (cgpt-sc) Sioux City

17-18 2-Day Federal Tax Update for the Year 2014-2015: Individual, Business, and Corporate (2dyftucr)

Cedar Rapids

18 Shortcuts to Tax Cuts: Individual Tax, Social Security, and Retirement Planning Tools and Strategies (txcu-sc)

Sioux City

19 Advanced OMB Circular A-133 Issues (aomb) West Des Moines19 Understanding the Purchase and Sale of Businesses (Classroom Webcast) (psb-dav) Davenport19 Understanding the Purchase and Sale of Businesses (Classroom Webcast) (psb-dm) Des Moines19 Understanding the Purchase and Sale of Businesses (Classroom Webcast) (psb-wlo) Waterloo20 Accounting and Reporting for Not-for-Profit Organizations (fsnpo) West Des Moines20 Annual Update for Accountants and Auditors (auaa-sc) South Sioux City21 Annual Update for Accountants and Auditors (auaa-dm) West Des Moines24 Beyond the Code: Ethical Decision Making in the Real World (Ethics) (bymc-ic) Coralville24 Iowa Department of Revenue Update (idr-ic) Coralville24 Preparing Individual Tax Returns For New Staff and Para-Professionals (pitr) West Des Moines

24 Recognizing and Responding to Fraud Risk in Governmental and Not-for-Profit Organizations (frgnp)

West Des Moines

25 Governmental Accounting and Auditing Update (gau) West Des Moines

25 The Complete Guide to Preparing Limited Liability Company, Partnership, and S Corporation Federal Income Tax Returns (plps)

West Des Moines

December1 Tax Advisors Update (tau-sc) South Sioux City2 Tax Advisors Update (tau-sl) Storm Lake5 Form 1041 Made Easy (1041) West Des Moines8 Introduction to Insurance Accounting and Reporting (iiar) West Des Moines8 Social Security and Medicare: Maximizing Retirement Benefits (ssm4-cr) Cedar Rapids8 Tax Challenges for Older Americans (tca4-cr) Cedar Rapids9 Slashing Taxes for Your Small Business Clients: Corporations, Partnerships & LLCs (stsb-cr) Cedar Rapids

10 Annual Tax Update (atu-dav) Davenport10 Annual Tax Update (atu-dm) Des Moines10 Annual Tax Update (atu-wlo) Waterloo11 Excel for Accounting and Finance Professionals: Level 2 (eap2-ic) Coralville11 Partnership and LLCs: Avoiding Common Pitfalls Facing Practitioners (btp4-cr) Cedar Rapids11 Surgent's Guide to Understanding the Passive Activity Rules in 2014 (par4-cr) Cedar Rapids

CPE Calendar


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CPE Calendar Entering the arena: A leadership experienceBy Alison VanOtterloo

What are the arenas in my life where I want to show up, be heard and be brave? What

powers do I have within myself and how can I use them to maximize the poten-tial for success? How do I respond and react to the people, feelings and emo-tions represented in the arena seats? I recently attended the AICPA Leadership Academy, Sept. 28 – Oct. 2 in Durham, N.C., where these and other up-close-and-personal topics were examined.

It started with my team’s utter failure in the marshmallow challenge and ended in a lengthy letter of reflection that I will receive next year. The journey between those two events was one full of insight and inspiration — a four-day, life-changing adventure shared with 37 other diverse individuals representing the country’s next generation of leaders in the CPA profession.

A CPA and a wooDuring the academy, we defined and analyzed our personal values and strengths. What are your values and how do they align with those of your com-pany/firm? Who in your life helps you live those values? My strengths are Learner, Achiever, Maximizer, Positivity, and Woo (Winning Others Over) — and I own them! I now understand that being a CPA and a Woo is what makes me a little unique. We learned that effective leaders focus on their strengths and build a team that is strong in those areas they may be lacking. Tom Rath, in his book Strength Finders 2.0 (2007), put it simply as, “You cannot be anything you want to be — but you can be a lot more of who you already are.” We also learned strategies for keeping our strengths in check and making sure they show up “in excellence” rather than “in excess.” My Maximizer strength is definitely the most dangerous for me. It is what made me rewrite this article several times!

Maintaining well-beingWe were introduced to the theory of well-being and the five contributing ele-

ments: positive emotion, engagement, relationship with others, meaning and purpose, and achievement (PERMA). Our instructors illustrated how focus-ing on only one aspect of well-being can prevent you from truly flourishing. We were able to define our own PERMA equation and develop techniques for maintaining the balance. There are many events in life that are outside of our control, but each of us are the keepers of our own PERMA and have control over our reaction. We learned a technique called thought-bridging, or turning a negative reaction into a posi-tive one. With each situation there is a choice to move toward, move away or move against. I know it will take some practice to make thought-bridging auto-matic, but I am getting better each day.

Other highlightsWe practiced strategic thinking and learned how to apply and facilitate the i2a tool in group strategic planning. I am excited to give the tool a try! We also met Barry Melancon, CEO of the AICPA, and Bill Ballhoff, AICPA Chairman of the Board, who gave us insight into issues facing the CPA profession and their own leadership journeys. What an amazing opportunity to be in the same room with such influential members of the CPA profession!

I had no idea that saying goodbye to my academy classmates and instructors would be as difficult as it was. Listening to their stories, struggles and success-es was incredibly inspirational. Who knew a group of young CPAs could be so different, yet so similar at the same time. I spent a lot of time during the event reflecting on the various arenas in my own life. I entered the academy feel-ing fairly content with my performance, but I left absolutely inspired to change, grow and learn. To show up, be heard and be brave. I left with the skills to face the critics in the “cheap seats” and the gratitude for those who have walked beside me into the arena and cheered me on from the front row.

I often look back at my life and recog-nize those pivotal, life-defining mo-ments and appreciate the path that came after. I have no doubt that the AICPA Leadership Academy is a new significant mark. Even though I may have very few gladiator moments in my arenas of work, home and community, I know what I have learned through the academy will make a difference. I am extremely grateful to the AICPA, ISCPA, my company, my husband and my mom (who tag-teamed the children respon-sibilities while I was gone), for allowing me this amazing opportunity. It is one that I will truly never forget!

Alison VanOtterloo is director of internal audit at Pharmacists Mutual Insurance Company in Algona.


Classifieds

For ad rates and deadlines, visit: www.iacpa.org/Resources/

ClassifiedAds/ad_rates.aspx.

BUSINESS MANAGER–Des Moines nonprofit has an opening for an ex-perienced Business Manager due to year-end retirement. The desired applicant is a hands-on professional with experience in all aspects of ac-counting, including the preparation of financial statements, accounts payable, accounts receivable, payroll, budgets, forecasts and the year-end audit. Experience with grant writing is a plus. 5-7 years’ experience required; excel-lent verbal and written skills essential; CPA or ability to obtain license within one year of hire required. Salary com-mensurate with experience. Contact Ellie Anderson at [email protected] or 515-422-9091 to schedule an interview.

CAREER OPPORTUNITY-PUBLIC AND CORPORATE TAX–We currently repre-sent numerous Public Accounting and corporate clients throughout the state of Iowa who have immediate talent needs! The list of opportunities for tax professionals includes near term equity participation in both rural and metro locations. CPA required. For confidential inquiry and consideration, contact Miles Morrow, CPC, Iowa Career Connection: 515-282-5823 or [email protected]. We are retained by our clients who pay all fees.

TAX MANAGER/SUPERVISOR–Shaul & Desmond PLLC is a growing CPA firm in West Des Moines. We are looking to hire a CPA with 5-10 years of tax experi-ence in public accounting to fill the tax manager/supervisor position. Shaul & Desmond offers competitive wages, company paid employee health & dental insurance, vacation, and other benefits. Ownership/partnership track opportunity is available. Bi-lingual preferred. Ques-tions: Call 515-218-1659 ext. 102. Send resumes to [email protected]. Minorities are encouraged to apply. EOE

IOWA PRACTICES FOR SALE: Des Moines Area CPA Practice–gross $103K; Waterloo Tax Franchise–gross $246K; Creston CPA Practice–gross $570K; Central IA (near Des Moines) CPA Practice–gross $195K; Manches-ter CPA Practice–gross $550K; NE Iowa (Near Waterloo/Cedar Rapids) Tax & Acctng–gross $240K; Muscatine County EA Tax & Acctng Practice–gross $161K. For more information about these great listings or others in your area, call 1-800-397-0249. Also, view listing details and register for free email updates at www.AccountingPractic-eSales.com. Thinking of Selling Your Practice? Accounting Practice Sales is the leading marketer of accounting and tax practices in North America. We have a large pool of buyers, both individu-als and firms, looking for practices to purchase. We also have the experience needed to help you find the right fit for your firm, negotiate the best price and terms and get the deal done. To find out more about our risk-free and

confidential services, call Trent Holmes at 1-800-397-0249 or email [email protected].

PART-TIME AUDITOR–The Iowa Supreme Court Office of Professional Regulation (OPR) is seeking at least two new client security auditors due to ex-pected retirement of existing staff. Cli-ent security auditors visit Iowa law firms to perform compliance audits of trust accounts, as required by chapter 39 of the Iowa Court Rules. Client security auditor positions are part-time, compen-sated on an hourly basis. Each auditor generally works 600 to 800 hours each year. Work scheduling is very flexible. Some travel is required to perform the audits. Depending on the residence of the auditor and the audit locations, overnight stays sometimes are neces-sary. Travel expenses are reimbursed by OPR, and travel time is compensated. If you are interested, please send a letter of interest and resume by email to [email protected], or by regular mail to Paul H. Wieck II, Direc-tor, Office of Professional Regulation, 1111 E. Court Avenue, Des Moines, Iowa 50319. Questions may be directed to Paul Wieck or Trinity Braun-Arana at telephone (515) 725-8029.

AUDIT PROFESSIONAL–Brooks Lodden PC, a large, established West Des Moines based CPA firm is seeking an au-dit professional with 3-6 years of experi-ence for our audit staff. We are looking for individuals with experience working with larger closely-held businesses and nonprofit organizations. CPA designation is required. Excellent compensation and benefit package available, along with advancement potential. Please email resumes to [email protected] or mail to 1441 29th, Ste. 305, West Des Moines, IA 50266, Attn: Recruiting Shareholder.


Classifieds In Balance: Work/life well-being seriesBy Melissa Schumacher, ISCPA Family and Workplace Issues Committee

Editor’s note: This is the fourth article in the “In Balance” series featuring a variety of topics to improve your work/life well-being.

How did we survive before the word “app” was a daily part of our lives? While we continually

try to balance a demanding career and a home life that is increasing chaotic, find-ing quicker, easier and more streamlined ways to accomplish the same tasks has become a crucial part of our daily agenda. Below are five apps that help fellow CPAs in this never-ending quest:

1. AnyList. This app allows you to maintain several different lists at once. You can share the lists with other users, and see real-time updates made by anyone on the shared lists. Grocery, to-do’s, or Christmas lists can all be main-tained and updated anywhere, anytime. An added bonus: You won’t forget the list at home on the counter!

2. Hy-Vee. Not only can you see the weekly ad, find coupons and order prescriptions, but you can locate those hard-to-find items in the store. Simply choose your local store and type in the item you’re looking for into the product locator. The app will tell you if it’s carried and the specific aisle you can find it in. It can save you time wandering up and down the aisles when there isn’t a sales person in sight.

3. Flipboard. Every accountant needs to be briefed on the hap-penings around the world each day. The Flipboard app helps you accomplish this by showing all of your news and social media feeds into one place. It creates your own personal magazine to browse in an easy-to-view format. It’s a one-stop shop for news each morning, and who doesn’t love accomplishing several things at once?

4. Cam Scanner. Buried in piles of paperwork? Scan important docu-ments with the Cam Scanner app. It generates a pdf when you take a picture, and you can scan and send documents to clients and coworkers. Just be sure to abide by company records rules and delete things from your device as appro-priate. For personal use, you can email documents to yourself for safekeeping, file them electronical-ly for easy access, and reduce the clutter of paper around the house.

5. EZ Financial Calculators. A list of apps for accountants is not com-plete without at least one calcula-tor app. This has a huge number of calculators built into it including a basic loan calculator, a currency convertor and a retirement savings analysis. It also includes the more complex Black-Scholes Option cal-culator, WACC analysis, and a tax equivalent yield calculator among many others.

Do you use apps that have helped make life a little easier? Tell us by comment-ing on the Iowa Society of CPAs’ Face-book page or on Twitter at @IowaCPAs.

Melissa Schumacher is a finance man-ager with DuPont Pioneer in Johnston

Susan L. Davis, McGladrey LLP, Des Moines, was appointed to the American Institute of CPA’s Not-for-Profit Organizations Expert Panel in Oct. 2014.Dena J. Spooner has been hired by the City of Pleasant Hill as city clerk and finance director.Michael R. Trettin, KPMG LLP, Des Moines, has been promoted to audit managing director.The following personnel from Deloitte & Touche LLP, Des Moines, have been promoted: Brittany L. Owens to audit manager; Chelsea M. Bolander and Leigh C. Howell to audit senior; and Amanda Reynolds to tax senior.

Members in the News

The Society offers condolences to the family of:

Mary F. Babinat, Newton, CPA certificate No. O08337. Mary was a member since 1993.

In Remembrance


An extravaganza in Eastern Iowa

Thank you to the Iowa CPAs who attended the Sept. 30 Eastern EXTRAvanganza at the beautiful Cedar Ridge Winery in Swisher. Members enjoyed a leadership presentation from Charlie Funk, CEO and president of MidWestOne Bank in Iowa City, a state auditor’s office update from State Auditor Mary Mosiman and a professional issues update from ISCPA CEO

Cindy Adams, followed by a tour of the winery and member social.

“’Listening to a corporate leader is informative and educational. This part wasn’t a typical accounting subject so

I found it to be refreshing.”

“Very well planned out. Great event that I would come to again next year.”

“Nice program, great speakers, unique location. Well done. Thank you.”

“Loved it … the speakers, the topics and the venue were all top notch.”

“Awesome location! Nice to see so many people stay for the social event afterward. Speakers did a wonderful job. Thank you for having events in

this part of the state.”


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That’s why West Bend’s Home and Highway® policy makes sense. Not only does it protect just about everything you own, it can also protect you and your loved ones from the

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Visit thesilverlining.com for the name of the one nearest you.

…Need-to-know news and advice for leaders emerging in the accounting professionLEAP forward

ISCPA’s LEAP Task Force provides education, networking and develop-ment programs across the state

for members 40 and under. Visit www.iacpa.org/AboutISCPA/AboutLEAP.aspx for detailed information about these events and register today.

Lunch with LeadersGrab a bite and make

the most of your lunch break. Lunch with Leaders is a 90-minute session offering life,

community and career ad-vice from professionals who are leaders in Iowa’s business community.

Nov. 6 – Des Moines“The Process, Purpose and Power of Networking”

Featured leader: Adam Steen, owner, 25Connections LLC, Des Moines

Jan. 9, 2015 – Des Moines“Take a LEAP–Live Each Action Purpose-fully”

Featured leader: Sandy Hatfield Clubb, athletic director, Drake University, Des Moines

Feb. 19, 2015 – Des MoinesFeatured leader: Christine Hensley, city council member, Des Moines

Save the date…to be uglyJoin LEAP for happy hour and ugly sweater contest, Dec. 11 from 4:30-6:30 p.m. at Blue Moon Dueling Piano Bar in West Des Moines. Complimen-tary appetizers and one free drink ticket provided. Gift card prizes will be drawn throughout the night with a grand prize awarded for the worst in show! RSVP to [email protected] by Dec. 10.

Iowa CPA Day at the CapitolHosted by the LEAP Task Force

Jan. 29, 2015 – Des MoinesJoin your fellow accounting peers to learn about the many aspects of Iowa’s state government. Hear from top-notch guest speakers, tour Iowa’s Capitol, and have an opportunity to meet and talk directly with lawmakers. Breakfast and lunch is included in the registration fee. All members welcome. Visit http://goo.gl/OMnPcu to register.

Thank you to everyone who joined us at a recent Common Grounds gathering in your part of the state. There was lively conversation about the profession, shared ideas and concerns, new connections and a few laughs! Your feedback and input are so valuable in helping us plan for your future.There is no cost to attend a Common Grounds event. Simply RSVP to [email protected] or 515-223-8161; 800-659-6375 and we’ll see you there. Upcoming dates in your region of the state:

Common Grounds

Nov. 13–Windsor Heights (Des Moines)7:30 – 9 a.m.Hy-Vee, 7101 University AveCoffee and rolls

Nov. 14–Council Bluffs8:30 – 10 a.m.Hamilton Associates PC, 20 Pearl St.Coffee and rolls

Adams serves profession at national level

ISCPA CEO Cindy Adams has been named a state executive representa-tive to the AICPA’s National Ac-

creditation Commission, beginning Oct. 1. The commission provides a means for formally identifying, recognizing, advocating and supporting new areas of specialization that warrant an accredita-tion program.

Adams has also been named to the CPA Society Executives Association Board of Directors. The board oversees the orga-nization’s role in helping leaders achieve excellence in the management of their organizations, and provides a forum for collaboration to enable members to choose informed courses of action on professional issues affecting CPAs.


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What Iowa CPAs need to know about SAS No. 129Mike MeindersISCPA incoming president; managing partner, Carney Alexander Marold & Co LLP, Waterloo SAS 129 applies to practitioners who are requested to issue a letter commonly called a comfort letter to a requesting party in connection with the use of a nonpublic client’s (nonissuer) financial statements

in a registration statement or other securities offering. The standard applies to securities offerings whether they are to be filed with the SEC or not. The new SAS was not issued to set new standards. It was issued to amend SAS 122 to address implementation issues and unintended changes to previous practice that occurred when SAS 122 was redrafted for the clarity project as AU-C Section 920.

The term “comfort letter” as used in SAS 129, should not be confused with the type of letter many of us are asked to issue to underwriters and others to verify information for our clients seeking financing. These letters are also often referred to as comfort letters, but they are discussed in a different area of our professional literature.

Most practitioners will never have statements they are associated with used in a pub-lic offering. If you do, I encourage you to refer to the new standard before attempting to respond to an underwriter’s request for comment on those financial statements. The standard spells out the steps a practitioner should follow to obtain information, including a representation letter from the requesting party, before accepting an en-gagement to issue a comfort letter. The text of the standard is not very long, but the exhibits contain numerous examples of comfort letters and other guidance for use in various circumstances. SAS No. 129 becomes effective for comfort letters issued on or after Dec. 15, 2014. Early implementation is encouraged.

Congratulate ISCPA on 100 years

Be part of the 100th anniversary edition of Iowa CPA (published April 2015) and reserve your

“Congratulations ISCPA on 100 Years” ad space. Submit your ad with your cus-tomized message or purchase a custom 1/8-page option. (See sample above.) Go to www.iacpa.org for an advertising insertion order form and further details. Space is limited – reserve yours now!

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