macpa statement // october 2013

October 2013 | Maryland Association of Certified Public Accountants, Inc.

STATEMENTMACPA’S

HEALTH CARE:

Big changes for small business

PAGE 6

PLANNING FOR PROPERTY TRANSFER IN DIVORCEPAGE 38

WE WILL GUIDE YOU every step of the way

Prepare your business for the changing landscapeof employee benefits and health care reform

control costsThe RJP team delivers effective benefits programs and provides integrated HR services and support.

• Strategic Benefits Planning • Regulatory Compliance | Health Care Reform • Human Resources Support • Online Enrollment | HRIS | Payroll • Corporate Wellness Solutions • Custom Benefits Communications • Retirement Plan Services

An employee benefits program audit is free for MACPA members and your clients.

health care reformRJP will guide you through Health Care Reform to help you understand what actions you need to take and how the laws will affect your business.

We offer a customized cost impact analysis to help you start making changes now that will position your company for the future.

The timely Health Care Reform cost impact analysis is free for MACPA members and your clients.

www.rjpassociates.com410.773.4300 | 800.618.2600 | [email protected]

RJP & Associates, Inc. is the MACPA’s Exclusive Preferred Provider for employee benefits.

10/10 Rockville, 140023

10/11 Salisbury, 140030

10/15 Owings Mills, 140024

11/6 Frederick, 140027

11/7 Clarksville, 140025

11/14 Arnold, 140017

12/3 Waldorf, 140028

12/16 Towson, 140029 « REGISTRATION OPEN

V U C AVOLATILE UNCERTAIN COMPLEX AMBIGUOUS

MACPA Fall Town Halls with Tom Hood, CPA, CEO of the MACPA Positioning you for success in a VUCA world

It’s a VUCA world

MACPA.ORG/TOWNHALLS

B A N K I N G . I N S U R A N C E . I N V E S T M E N T S

Member FDIC. Only deposit products are FDIC insured.© 2013, Branch Banking and Trust Company. All rights reserved.

If values aren’t shared,If values aren’t shared,If values aren’t shared,they aren’t lived.they aren’t lived.they aren’t lived.

For more than 140 years, BB&T has never taken a relationship for granted. We set out to earn your business each and every day. Our strong value system helps us determine what is right and reasonable. And to remain focused on doing what’s in the best interests of the clients and communities we serve. Discover the value a values-driven bank can offer you. Talk to us today. BBT.com

Proud Sponsor of the MACPA

ADMINISTRATION

Amy Stumme [email protected]

Becky Conley [email protected]

TECHNOLOGY

Doug Shaner [email protected]

COMMUNICATIONS

Amy Moran [email protected]

Bill Sheridan [email protected]

FINANCE

Margaret DeRoose [email protected]

Laura Swann, CPA [email protected]

MEMBER SERVICES

Julianne Part [email protected]

Jeannie Richardson [email protected]

Ashlee Stem [email protected]

PRODUCT DEVELOPMENT

Akesha Brown [email protected]

Debbie Zizwarek [email protected]

TECHNICAL SERVICES

MaryBeth Halpern [email protected]

Cora Edwards [email protected]

PROFESSIONAL DEVELOPMENT

Dee Sullivan [email protected]

Pamela C. Devine [email protected]

Chris Dougherty [email protected]

MaryBeth Drusano [email protected]

Jared Feinstein [email protected]

Megan Gratz [email protected]

Emily Trott [email protected]

Rebekah Brown

[email protected]

Donna Lewis [email protected]

Ryan Wey [email protected]

Amy Puente [email protected]

Paige [email protected]

Meredith Senio [email protected]

Laura Dorsey-Shaner [email protected]

Andrew Hood [email protected]

2013-2014 BOARD OF DIRECTORSOFFICERS

Byron Patrick, CPA.CITP, MCSE Chair

Marianela del Pino-Rivera, CPA Vice Chair

Michael Manspeaker, CPA Secretary/Treasurer

Anoop N. Mehta, CPA, CGMA Immediate Past Chair

DIRECTORS

Samantha Bowling, CPA

Lisa Cines, CPA

Shane Grady, CPA

Kara King Bess, CPA

Michael Manspeaker, CPA

Joselin R. Martin, CPA

Amy Myers, CPA

Robert Tarola, CPA

SENIOR STAFFMACPA EXECUTIVE DIRECTOR

J. Thomas Hood III, [email protected]

MACPA DEPUTY EXECUTIVE DIRECTOR

Jacqueline E. G. [email protected]

DIRECTOR OF FINANCE AND ADMINISTRATION

Skip Falatko, [email protected]

CONTENTS

WE WANT TO HEAR FROM YOU! See below to submit content

Bill SheridanMACPA Dulaney Center II 901 Dulaney Valley Road Suite 710 Towson, MD 21204

For content submission: [email protected]@macpa.org

P: 410.296.6250 F: 410.296.8713Toll free: 800.782.2036

The MACPA reserves the right to edit all submissions for grammatical style and / or length.

Statement of fact and opinion are made by the authors alone and do not imply an opinion on the part of the officers or members of MACPA.

The Statement is published four times a year by the Maryland Association of Certified Public Accountants, Inc.

Bill Sheridan, EditorAmy Moran, Advertising Sales

October 2013 | Maryland Association of Certified Public Accountants, Inc.

CHAIR’S COLUMN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

FEATURESHealth care: Big changes for small business . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . 6Planning for property transfer in divorce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

DEPARTMENTSNews & Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Business & Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16High Tech Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Tax Corner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Financial Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Professional Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41Member Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

MEMBER NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

NYPN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 48

CLASSIFIEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

3OCTOBER 2013

B A N K I N G . I N S U R A N C E . I N V E S T M E N T S

Member FDIC. Only deposit products are FDIC insured.© 2013, Branch Banking and Trust Company. All rights reserved.

If values aren’t shared,If values aren’t shared,If values aren’t shared,they aren’t lived.they aren’t lived.they aren’t lived.

For more than 140 years, BB&T has never taken a relationship for granted. We set out to earn your business each and every day. Our strong value system helps us determine what is right and reasonable. And to remain focused on doing what’s in the best interests of the clients and communities we serve. Discover the value a values-driven bank can offer you. Talk to us today. BBT.com

Proud Sponsor of the MACPA

STATEMENT4

CHAIR’S COLUMN

AS CHANGE MOUNTS, YOUR ADVANTAGE AS A CPA IS THIS: YOU’RE FROM MARYLANDBY BYRON PATRICK, CPA.CITP, CGMA, MCSECEO AND CO-FOUNDER, SIMPLIFIED INNOVATIONS

It’s easy to take greatness for granted when you see it every day, when you live with it and work with it and are friends with it.

Make no mistake, though: The Maryland Association of CPAs is a great organization.

People throw out that word all too quickly these days – so quickly that it often loses its meaning.

Not in this case.

You are members of a world-class organization and you need to be aware of that fact, because the people who work there will never say as much out loud. They’re too busy working their tails off to support and protect your profession.

But the rest of the world knows. Consider:

HOOD LEADS THE WAY

MACPA Executive Director Tom Hood once again has earned a place on Accounting Today’s annual list of the 100 most influential people in accounting, and in a separate survey of the 103 candidates for the honor, Tom was named the second most influential person in the public accounting world, just after AICPA President and CEO Barry Melancon. That means he placed ahead of such luminaries as PCAOB Chair James Doty, FASB Chair Russell Golden, SEC Chair Mary Jo White, and President Barack Obama.

Writes Accounting Today, “If there’s a conversation going on about the future of the profession, you’re bound to hear Hood’s name mentioned as one of the people leading the way there.”

CUTTING-EDGE TRAINING

Remember the Horizons 2025 project? The one that identified the top skills CPAs will need going forward? Those competencies included things like leadership training,

communication, interpersonal skills, strategic thinking, and collaboration.

Do you know who provides training like that? The MACPA’s own Business Learning Institute. The BLI has become of the one biggest providers of customized, competency-based learning plans for firms and organizations worldwide, and it’s part of your membership organization.

Of course, the core of our professional development programs centers on technical accounting skills, and no one provides them in as many different ways – classroom presentations, live webinars, recorded webcasts – as the MACPA.

XBRL: SETTING THE PACE

The MACPA was one of the first non-profit organizations to grasp the importance of eXtensible Business Reporting Language, or XBRL, and to understand that its significance reaches far beyond the realm of public company financial reporting.

The association began tagging its own financials via XBRL a few years ago in an effort to increase internal efficiencies. Now, MACPA Finance Director Skip Falatko is working hand-in-hand with representatives of the Financial Accounting Standards Board to develop an XBRL taxonomy specific to non-profit organizations.

It’s a perfect example of the MACPA scanning the horizon for weak signals of disruptive change, then figuring out how to position itself and its members to take advantage of that change. It’s an example of why we’re all members of the MACPA to begin with.

WE WROTE A BOOK!

By “we,” I mean the MACPA’s chief communication officer, Bill Sheridan. He has been writing for the MACPA’s blog, CPA Success, for more than six years now, and he recently compiled some

of his most meaningful blog posts into a leadership-themed and future-focused book titled, Look, Lead, Love, Learn: Four Steps to Better Business, a Better Life – and Conquering Complexity in the Process.

The book is available in both print and electronic formats on Amazon.com.

AND THAT’S JUST THE START

I attend a lot of accounting events from coast to coast, and I meet a lot of colleagues along the way. When I tell them I’m from Maryland, the reaction is almost invariably the same:

“You’re from Maryland? You guys are doing some incredible things there. I wish our state society was half as innovative as yours.”

That’s not an embellishment. It’s the truth. There are lots of CPAs out there who don’t live in Maryland but wish they did, simply because of the work the MACPA does.

How do you feel about your association now?

And remember this: Participation in the association brings you even closer to that greatness. Standing on the sidelines and watching is good, but getting involved and surrounding yourself with great people, leaders in the profession, elevates your own game. I hope you’ll consider joining us as an MACPA volunteer.

There’s a lot happening out there that impacts your business and your clients. I get that.

I also know that with every change that arises, your professional association will work tirelessly to protect you and your clients.

You live and work in Maryland. You can count on it.

Please call Rich Bacher at Aon Insurance Servicesat 800.221.3023 or visit www.cpai.com/premierad today!

When it comes to something as important as your CPA firm, do you want to insure it with a professional liability insurance policy created for all types of professionals?

Doesn’t it make sense to cover your firm with a professional liability insurance program createdwith the support of the AICPA specifically forCPAs?

More than 25,000 CPA firms depend on the AICPA Professional Liability Insurance Program.Here’s why:

• Policy form designed to cover the unique exposures of CPA firms

• All size firms and areas of practice are eligible • Premium credits designed to reflect the way

CPAs do business• Quality coverage at a price that fits your budget

Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (AR 244489); in CA, MN & OK, AIS Affinity InsuranceAgency, Inc. (CA 0795465); in CA, Aon Affinity Insurance Services, Inc. (0G94493), Aon Direct Insurance Administrator and Berkely Insurance Agency; and in NY and NH, AIS Affinity Insurance Agency.One or more of the CNA companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intendedto constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. Allproducts and services may not be available in all states and may be subject to change without notice. The statements, analyses and opinions expressed in this publication are those of therespective authors and may not necessarily reflect those of any third parties including the CNA companies. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2013CNA. All rights reserved. E-10373-1013 MD

Do you have broad professional liability insurance coverage?You do if you are insured with the AICPA Professional Liability Insurance Program.

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E-10373-1013 MD_Layout 1 8/9/13 12:28 PM Page 1

H E A LT H C A R E : Big changes for small businessA complicated new rating structure is just one of the PPACA provisions that will impact Maryland’s small companies. BY RICHARD PRINCINSKY

Do you own a company in Maryland? Do you have fewer than 50 employees?If so, are you ready for the 2014 wave of provisions from the Patient Protection and Affordable Care Act?

Small businesses that provide health

insurance to their employees are

accustomed to a very straightforward

rating structure. It has been relatively

easy to prepare and project the costs of

insurance each year.

The cost of health insurance currently

depends on the average age of all

employees enrolled in the health

insurance plan. Once the average age has

been determined, insurance companies

establish the rates for each tier level of

coverage, meaning individuals, individuals

plus spouses, families, and all employees

pay the same tier rate, regardless of their

ages.

Get ready, because this rating structure is

about to change.

Starting on Jan. 1, 2014, under the

PPACA, insurance companies must

implement a new member-level rating

structure. In Maryland, for our small

businesses, the new rating structure to

determine the cost of health insurance will

be based on the age of each individual

employee and dependents enrolled.

That means rates will be based on each

person’s age, not a group’s average age

and common tier level rate. All employees

and their dependents with different ages

will have a unique rate.

With the new rating structure, employers

will be charged by the insurance company

a monthly premium of the sum of each

of their employees’ uniquely calculated

rates. Each employee’s unique rate will be

based on his or her age. If an employee

would like to include a spouse on the

plan, the cost will be the sum of the two

individual rates based on their ages. The

family plan rate will be the sum of each

member’s rate based on their age. For

example, the rate will be comprised of

the rate associated with the age of the

employee, the spouse, the oldest three

children under the age of 21, and all adult

children between the ages of 21 and 26.

Confused yet?

Now take into consideration the rate

structure ratios moving from 5-to-1 to

3-to-1. An example of the current ratio

would imply that if the individual group

rate was $100 per month for the lowest

average age group in the state, then

the group with the highest average age

could not be charged more than $500

per month for the individual rate. The

compression of a 3-to-1 ratio creates less

of a gap in cost between the younger

person and older person. Therefore, the

change from the current rates may be

greater for the younger person than the

older. However, it is yet to be determined

because the older worker will now be

rated solely on his or her age, without the

help of their younger co-workers bringing

the average age down. Stay tuned …

If they haven’t already, all employers

should put administrative systems in place

and revise business strategies / plans to

meet the current and ongoing demands of

the PPACA, such as defined contribution

options. As it stands, if an employer

chooses to offer health insurance through

the State SHOP Exchange and offers

a monetary contribution to help offset

the employee cost, that amount must

be an equal percentage regardless of

the different costs for each employee’s

uniquely calculated rate based on his or

her age. This may be a different approach

than the current method some employers

use to determine contribution amounts.

While there have been delays and

revisions to some of the health care

reform provisions, many remain in effect,

such as the PCORI fee (an excise tax to

fund the Patient Centered Outcomes

Research Institute), elimination of all pre-

existing condition exclusions, employee

STATEMENT6

STATEMENT7

(F)All Access is a two-day CPE event for CPAs that covers a wide range of topics. In a concentrated time frame, CPAs get “all access” to choose from the courses offered.

COURSES OFFERED DURING (F)ALL ACCESS:

November 19th 7:30am (pick 1 course)• Overview of Annual Updates (1FALL1)• Digital note-taking for Business Professionals: Comparing Microsoft OneNote 2010 and other apps (1FALL3)• Taxation for Expatriates: Outbound Tax Issues (1FALL9)

November 19th 11:30pm (pick 1 course)• Compilation, Review, and Accounting Services (1FALL2)• Cloud Computing - Unraveling the Issues (1FALL4)• Taxation for Foreign Nationals (1FALL10)

November 20th 7:30am (pick 1 course)• Audit Workpapers: Documenting Field Work (1FALL5)• Microsoft Office 2013 New Features and Windows 8: Making the Transition to your PC or tablet (1FALL7)• Annual Income Tax Update (1FALL11)

November 20th 12:00pm (pick 1 course)• Fraud in Purchasing and Cash Disbursement Cycles (1FALL6)• Microsoft Excel Hot Topics and Productivity Tips for CPAs (1FALL8)• Estate State Planning for Older Americans (1Fall12)

For more information or to register, call the Member Service Center at 800.782.2036.

Sponsored by:CO

ST CPE

Register Here: http://cpa.tc/4forFall

EVENT IDMACPA Members Non-Members

$150 4 hrs. per course 16 hrs. total

see above $200

Pay $125 if you register by October 19th.

notice of exchanges, new wellness

program requirements, and so on. Many

are on the horizon, slated to begin in

2014, including the implementation of

required health exchanges, the individual

mandate, non-grandfathered plans that

must comply with the annual limitation

on out-of-pocket maximums, 90-day

waiting period limits, and the requirement

for all plans to comply with deductible

limitations.

Employers need to be aware and ready

for each implementation round of

health care reform requirements. The

wait-and-see approach is not advised.

All employers should have a team of

trusted advisors, such as an experienced

employee benefits broker, to assist with

compliance and implementation strategy.

Employers can only hope that compliance

with the PPACA will be simplified as

provisions are continually reviewed and

implemented in the coming months.

MACPA PARTNERSHIP RJP & Associates, Inc., has been the

MACPA’s exclusive preferred provider of

employee benefits for more than 20 years.

The RJP team supports the MACPA in

multiple capacities. As a leading resource

for health care reform education and

planning, employee benefits regulatory

compliance, and corporate wellness,

the RJP experts offer webcasts; present

at chapter meetings, town halls, and

conferences; and are always accessible

to all MACPA members and clients for

employee benefits and HR support.

Richard Princinsky is president of Richard J.

Princinsky & Associates, Inc.

RJP & Associates’ integrated services

include:

• strategic benefits planning;

• account management and customer service;

• claims management;

• custom benefits communications;

• group benefit enrollment and billing services;

• HR and benefits technology solutions;

• client risk management, including HR services and compliance;

• HR outsource services;

• health care reform education;

• corporate wellness solutions; and

• retirement services.

Oct. 11 webcast offers answers to your health care questionsAre your clients asking you what they need to know and do to stay complaint with all the provisions of the Patient

Protection and Affordable Care Act?

The law is complex and changing, but as a trusted advisor, you need to stay ahead of the questions your clients are

asking. Doing so isn’t easy.

But help is available.

Richard J. Princinsky and Associates – the MACPA’s preferred provider of health care, employee benefit, human resources

and wellness services – will bring you up to date and answer all of your questions in a webcast encore of a special health

care-related MACPA town hall meeting.

The webcast will be held from 8:30 a.m. to 12:30 p.m. on Oct. 11. (17W910)

All business managers and employee benefits managers should be taking steps to be sure they are prepared for the

PPACA requirements that take effect later this year, in 2014, and beyond. While some requirements vary based on

employer size, business entity or type of health plan offered, other requirements apply to all individuals and employer

groups regardless of employee size or type of business entity.

This special edition town hall meeting will provide participants with the information and resources that will help you

make informed business decisions and advise clients related to this evolving legislation.

Get details and register at http://cpa.tc/38h.

STATEMENT8

9OCTOBER 2013

WHY WE’RE DIFFERENT.

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The Holmes GroupToll Free: 800.397.0249

[email protected]

ADP adp128713a Proof 1 - MACPA Statement Magazine

Payroll is a huge business opportunity that’sright under your nose.

Work less, worry less and profit more withRUN Powered by ADP® Payroll for Partners. With ADP’s easy-to-use online payroll solution, you can regain control of your time and rethink how payroll can help driverevenue and profitability. Our solution requires no upfronttechnology investment, and comes with simple pricing,dedicated service and marketing support. Count on our 60+ years of expertise as the payroll leader to help you benefit from less work, less worry and more profit.Learn more with the free strategy brief, “3 Easy Ways Payroll CanHelp Grow Your Business.” Go to accountant.adp.com/opportunity

HR. Payroll. Benefits.

ADP is a Premier Bronze Sponsor of the Maryland Association of CPAs.For more information about our member benefit program call 410.933.2181 today!ADP®, the ADP logo and RUN powered by ADP are registered trademarks of ADP, Inc. Copyright © 2013 ADP, Inc.

STATEMENT10

Brought to you by CCH | Presented by Jody Padar, CPA, MST, New Vision CPA Group, Inc.

Win the tax season race.

Sponsored by:

is an ideal way to prepare for the tax season rush. It is an extensive seminar covering changes in individual tax law. The event is interactive and features audience participation. Attendees are also provided with an 800+ page manual written by full-time practitioners, a two-hour IRS self-study course, as well as dozens of other resources.

December 3 & 4 SEMINAREvent ID: 211001Cost: Member $350, Non-member $450CPE: 16 hours taxEarly Bird: 11/03/2013

January 7 & 8SEMINAREvent ID: 211002 Cost: Member $350, Non-member $450CPE: 16 hours taxEarly Bird: 12/07/2013

For questions or for more information, please call the Member Service Center at 800.782.2036.

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REAL LEADERSHIP

Merrick School of Business

For more information, visit: www.ubalt.edu/admissions*According to the 2013 Baltimore Business Journal Book of Lists, the University of Baltimore ranked first in terms of the number of alumni managing or co-managing Baltimore’s largest 25 accounting firms.

NEW! Accounting Certificate now available to prepare you to sit for the CPA exam.

ENHANCING THE SKILLS & POTENTIAL OF WOMEN

LEADERS WITHIN THE FINANCIAL COMMUNITY.

OCTOBER 24 & 25 | WASHINGTON, DC

AICPA Women’s Global Leadership Summit

macpa.org/womensAICPAsummit

Brought to you by CCH | Presented by Jody Padar, CPA, MST, New Vision CPA Group, Inc.

Win the tax season race.

Sponsored by:

is an ideal way to prepare for the tax season rush. It is an extensive seminar covering changes in individual tax law. The event is interactive and features audience participation. Attendees are also provided with an 800+ page manual written by full-time practitioners, a two-hour IRS self-study course, as well as dozens of other resources.

December 3 & 4 SEMINAREvent ID: 211001Cost: Member $350, Non-member $450CPE: 16 hours taxEarly Bird: 11/03/2013

January 7 & 8SEMINAREvent ID: 211002 Cost: Member $350, Non-member $450CPE: 16 hours taxEarly Bird: 12/07/2013

For questions or for more information, please call the Member Service Center at 800.782.2036.

What are the biggest concerns affecting

firms like yours across the country?

Results of the American Institute of CPAs’

2013 CPA Firm Top Issues Survey (http://

cpa.tc/37z), sponsored by the Private

Companies Practice Section (PCPS),

provide the answers.

This year, the survey found that greater

economic stability has prompted

practitioners to take a longer-term, more

strategic view of the most important

challenges facing their firms.

Bringing in new clients was cited as an

issue by firms of all sizes, and all but the

smallest firms were concentrating on

finding qualified talent.

“The 2013 survey results paint a picture of

firms that are poised for future growth,”

said Mark Koziel, CPA, CGMA, the AICPA’s

vice president of firm services and global

alliances. “Practitioners are reassessing

where they stand after the recession and

preparing for renewed demand.”

Using the survey results as a benchmark,

CPAs can test their own experiences

against those of others and make strategic

planning decisions accordingly.

“The PCPS CPA Firm Top Issues Survey

results present a valuable resource for

firms. They help MACPA member firms of

various sizes, who are focused on growth,

track the issues facing peer and larger

firms and anticipate future challenges,”

said MACPA Executive Director Tom

Hood.

TOP CHALLENGES BY FIRM SIZE

The PCPS CPA Firm Top Issues Survey

is conducted biennially with results

categorized by firm size. While each

size grouping has a unique list of top

five issues, common elements provide

snapshots of general trends.

Client retention, for example, was a

significant concern for firms in the 2009

survey, during the midst of the economic

downturn. Again, client retention was

consistently cited across all firm sizes

in 2011, but was not among the top

five issues for all firm groups this year;

it ranked fourth and fifth, respectively,

among sole practitioners (http://cpa.

tc/380) and firms with 11-20 professionals

(http://cpa.tc/381).

In the meantime, succession, which only

the largest firms chose as a top issue in

2011, has also now become a challenge

for nearly all firm segments.

To view all the top issues lists for 2013,

visit: aicpa.org/pcps.

WHAT THE RESULTS MEAN FOR CPAS

Some of the key takeaways from the

survey include the following:

• Firms have put the economic crisis

behind them. Not only did client retention

move out of the top five issues for firms

with two to five, six to 10, and more than

21 professionals this year, but fee pressure

/ pricing and client collections, which

were concerns for many firms in 2011 and

2013, also moved down the list and out of

the top five for all firm sizes.

• Tax law changes and complexity and

workload compression remain burdens for

the smallest firms. They are perennially

among the top five issues for firms with

five or fewer professionals.

• Remember when scrambling to find

great staff was a major concern? Those

days are on the horizon, if not here

already.

• Firms that have not begun concentrating

on their transition to new ownership or

NEWS & VIEWS

What challenges are keeping CPAs up at night?

NEWS & VIEWS

FROM THE AICPA

13OCTOBER 2013

CONTINUED ON PAGE 14

CBM’S ACEITUNO EARNS BICYCLE COMMUTER SPIRIT AWARDRobert Aceituno, CPA and tax manager with Councilor, Buchanan & Mitchell, has been presented with a “Bicycle Commuter Spirit Award” by Bethesda Transportation Solutions and the Bethesda Urban Partnership. Given during Bethesda’s annual Bike to Work Day celebration, the award recognizes the most dedicated bicycle commuters in the community. An avid cyclist, Robert was originally motivated to bike the 21.5 miles to work by the traffic congestion. His personal health and fitness goals also played a role in the decision. Since Wahington D.C. and Bethesda are bike-friendly areas featuring numerous paths with scenic views, Robert continues to combine

exercise with his commute when the weather allows.

leaders would be well advised to do so as

baby boomers head into retirement and

as strong M&A activity changes their local

marketplace.

• Both large and some smaller firms

are thinking about partner unity and

accountability. Many firms weathered

the recession by tightening up

expectations for partner contributions

and standardizing their procedures to

maximize efficiency. Those have turned

out to be smart management choices and

firms appear ready to stick with them even

though the downturn is over.

ACTION STEPS FOR SUCCESS

How can you put the survey findings to

work in your practice?

• Review the results in a partner or

strategic planning meeting. Do they track

to your firm’s experiences? Are there any

surprises?

• Consider whether you would make any

changes in your strategic plans based

on the survey results. Discuss questions

such as: Is the firm making the most

of the new business opportunities that

may be available now that the economy

has stabilized? If not, what changes are

needed? Is it time to begin or revisit

your succession plans? Will your staff

recruitment and retention efforts give you

a competitive edge in an active hiring

market?

As part of your strategic planning, you can

turn to a broad range of AICPA and PCPS

resources to help you address all of the

issues identified in this year’s survey. They

include:

• The AICPA’s Tax Practitioners Toolkit

(http://cpa.tc/381)

• The AICPA’s Health Care Reform

Resource Center (http://cpa.tc/382)

• The PCPS Practice Growth and Client

Services (http://cpa.tc/383)

• Succession Planning Resource Centers

(http://cpa.tc/384)

The PCPS 2013 CPA Firm Top Issues

Survey Commentary (http://cpa.tc/385)

includes links to useful tools and a

discussion of what the trends mean and

how CPAs can respond to them.

The survey results webpage

(http://cpa.tc/385) provides the top

issues lists for various firm sizes, and

indicates the resources that help

practitioners address those critical issues.

In addition, the AICPA’s PCPS team has

recently launched webpages specifically

targeted toward sole practitioners, small,

medium and large firms, so that CPAs

can more easily access resources and find

practice management solutions tailored to

the size of their firm.

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BY DAVE W. RYAN, CPA, CCP, JD

Risk management: Executive compensation in tax-exempt organizations

BUSINESS & INDUSTRY

STATEMENT16

Many of your clients give back to the

community by serving as directors of tax-

exempt organizations. To help protect

them from financial and reputational

risk, CPA advisors should make sure

their clients are aware that executive

compensation at tax-exempt organizations

can be a challenging issue.

For example, under the IRC Section

4958 Intermediate Sanctions provisions,

directors that approve compensation

that is found to be excessive can be

personally liable for a 10 percent excise

tax on the amount of the compensation

that is deemed to be excessive. Moreover,

a recipient of excessive compensation is

subject to a 25 percent excise tax on the

amount of the excess compensation.

The IRS is continuing its audit focus on

executive compensation of tax-exempt

organizations. In fact, in its Exempt

Organizations 2013 Work Plan, the IRS

called out a focus on the transparency

of total executive compensation and the

disclosures in Form 990.

Prudent directors should take steps to

protect themselves and their organization

from the IRS Intermediate Sanctions

as well as public / press challenges to

executive pay.

In my experience, an organization that

clearly defines how and why executives

are being compensated and is open and

aboveboard with all aspects of this subject

is in a better position to defend against

not only IRS scrutiny, but that of the press

and public at large. So let’s review the key

steps directors should follow to establish

and maintain appropriate executive pay

and avoid the imposition of excise taxes

under the IRS Section 4958 Intermediate

Sanctions rules.

The Intermediate Sanctions regulations

make it clear that independent directors

of tax-exempt organizations can protect

their organization and themselves by

establishing and maintaining defensible

rationales for their compensation

programs and by following good

governance practices. The key concern

that tax-exempt organizations should

address is establishing a “rebuttable

presumption of reasonableness” of the

compensation. To do so, the regulations

contain the following three key

requirements:

1. Approval of executive compensation

must be done by an independent board

or a designated committee.

2. The committee should review

comparable and appropriate

compensation data as part of the

decision-making process.

3. The final decision and the rationale

for such must be documented by the

committee.

Directors should typically address four key

topics regarding executive compensation:

Define and document the organization’s

executive compensation strategy,

including:

1. Organizational pay philosophy. This is

the why and how of what you pay. Do you

pay for performance? If so, what are the

measures? Why do you do it?

2. Market definition. Define relevant

peer group, targeted positioning of pay

versus the market, and appropriate data

sources. If there is a reason to pay higher

or lower than the market median for your

executives, this is the place to define it.

3. Executive benefits and perquisites

approach. Often the perquisites

associated with a position draw the ire

of people outside and inside of the

organization. For example, an executive

driving a particularly ostentatious vehicle

may be noticed for the wrong reasons.

Define and document the role of the

committee that approves executive

compensation:

1. The committee must be comprised of

independent directors.

2. The committee is charged with

review of all elements of pay (“total

compensation”).

3. The timing and process of

compensation and performance reviews (if

you have a pay for performance approach)

should be considered.

4. Outside advice to be considered:

Decide whether to use an independent

compensation consultant.

Thoroughly document the committee’s

decision process and outcomes,

including:

1. Date of the decision.

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STATEMENT18

2. Members’ present and voting results.

3. Terms of the compensation and

benefits decisions.

4. Outside advice and details of market

comparability data used.

5. Rationale for decisions made.

Understand the total compensation

package – your process should include:

1. Review and understand existing

and proposed employment contracts.

Many times significant changes to total

compensation can only be affected

when a new executive starts or a current

contract expires. If there are issues that

need to be addressed in this manner, they

should be understood by the committee

ahead of time.

2. Review cash compensation – base

salary, bonus and any other cash

payments that may be made.

3. Review executive perquisites and

benefits.

4. Review severance arrangements. Again,

typically issues will need to be resolved

upon a change in employment or with

the expiration of a current employment

contract.

Given what’s at stake, it is important that

directors of tax-exempt organizations

establish and follow a thorough and

transparent governance process for

executive compensation decisions.

Doing so can help mitigate risks for

the organization, its executives and its

independent directors against the threat

of Intermediate Sanctions from the IRS.

As part of this process, compensation

committees frequently engage an

independent compensation consultant

with the expertise to assist with gathering

and analyzing compensation data

of comparable organizations and to

synthesize complex data into simple,

actionable advice for Committee

members’ use.

Dave W. Ryan, CPA, CCP, JD, is managing

director of CompensationGPS, which aligns

pay with company performance and develops

methods to attract, retain and motivate the

right employees. He has more than 25 years of

in-depth consulting and corporate leadership

experience in the design and implementation

of compensation, performance management,

and benefit programs for a wide range of U.S.

and global companies across many industries.

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I IRC INVITES CPAS TO HELP SHAPE THE FUTURE OF CORPORATE REPORTING

Integrated reporting: A new reporting model for the 21st century

BUSINESS & INDUSTRY

There’s a new opportunity for CPAs today,

and it provides organizations and their

stakeholders with deeper insights into

business operations than past and present

corporate reporting models.

Integrated reporting surpasses the

traditional reporting model by concisely

explaining how an organization’s

strategy, governance, performance and

prospects, in the context of its external

environment, lead to the creation of value

over the short, medium and long term.

It also meets the increasing demands

of investors, who now expect as much

information about an organization’s non-

financial assets and future prospects as

they do about financial assets and current

and past performance.

Integrated reporting represents the

next step in the evolution of corporate

reporting in United States and global

markets. It strongly emphasizes the value

of intellectual capital, sustainability, brand

and talent.

Combining financial and non-financial

information into a periodic integrated

report, it seeks to break down the silos

that often separate internal departments

or groups and inhibit informed decision

making.

Integrated reporting also elevates

transparency about a business’s intangible

assets, which have long been under-

represented in strategic decision-

making and reporting, to a higher

level of importance in driving growth,

reducing costs and determining future

performance.

On April 16, the International Integrated

Reporting Council (IIRC) released a

“Consultation Draft of the International

Integrated Reporting Framework.” The

draft framework lays out integrated

reporting’s core concepts, guiding

principles, primary elements and,

generally, how organizations will

communicate with their stakeholders.

KEY FEATURES OF THE DRAFT FRAMEWORK

As integrated reporting expands its

footprint throughout the business

community and accounting profession,

opportunities ranging from report

preparation to consulting services will

arise for CPAs in both industry and public

accounting. It is, therefore, important to

understand what integrated reporting

means to CPAs, their organizations and

their clients.

Here are four need-to-know features of

the draft framework:

1. NEW INTERPRETATION OF CAPITAL:

Types of capital reach beyond financial to

also include manufactured, intellectual,

human, social and relationship, and

natural capitals. A business draws on

these capitals and enhances, diminishes

or otherwise transforms them as it pursues

its objective of creating value over time.

For example, an organization’s financial

capital is increased when it makes a profit,

and the quality of its human capital is

improved when employees’ skills are

enhanced through training.

2. EMPHASIS ON VALUE CREATION:

Integrated reporting focuses on

explaining how an organization creates

value over the short, medium and long

term. This new focus encompasses

information describing the way in which

the organization has used and intends

to use the different types of capital, and

the interdependencies between those

capitals that influence value creation over

time. Creating value over the long term

usually requires that all types of capital are

considered. Maximizing one type while

disregarding others will not suffice in most

cases.

3. BEYOND TRADITIONAL THINKING:

Integrated thinking expands an

organization’s focus beyond the

traditional. By doing so, it breaks down


STATEMENT20

Attention CPAs:Whether A Decision Maker Looking To Upgrade Your Talent,

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“silo thinking” within an organization

and allows people to concentrate on the

relationships between their departments

or groups as well as the relationships

between the different types of capital the

organization uses or affects.

4. BETTER CONNECTIVITY: Integrated

thinking promotes better connectivity of

information presented in an integrated

report. Information communicated

focuses on the complete picture of how

the organization uniquely positions its

strategy, governance, performance and

prospects to create value over time. In

the process, it helps investors, employees

and other stakeholders understand

the different factors that affect the

organization’s future and the ways that

these factors interact with one another.

SHARE YOUR OPINION

The IIRC is now providing CPAs and other

stakeholders with the opportunity to read

and assess the draft framework.

“The IIRC’s International Integrated

Reporting Framework will have a positive

impact not only on businesses, investors,

capital markets and the economy, but

also on CPAs, so it’s important that our

members provide their feedback through

the Consultation Questions included in

the Draft Framework,” said Maryland

Association of CPAs Executive Director

Tom Hood.

The IIRC plans to issue the initial version

of the framework in December.

To learn more about the draft framework and

obtain additional information on integrated

reporting, visit the AICPA’s Sustainability

Reporting and Assurance webpage (http://

cpa.tc/37x) and the IIRC’s website (http://cpa.

tc/37y).

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BY THE AICPA

Management accountants: Delivering value beyond the numbers

BUSINESS & INDUSTRY

STATEMENT24

Few organizations, regardless of size

or industry, have escaped the shadow

of uncertainty that has long hovered

over the business community. This

uncertainty has exhibited itself in ways

ranging from intensified competition

and market volatility to complex

regulatory requirements and widespread

digitalization.

In spite of the inherent challenges of this

environment, a re-engineered formula

for organizational success has emerged

and finance teams are transforming and

reenergizing themselves in its wake.

BRIDGING THE TALENT DIVIDE

The finance team’s evolving remit is

largely due to its greater role as a trusted

partner with senior leadership and the

higher demand for a specific combination

of skills needed to guide the organization.

Key decision makers are looking for

financial professionals who combine

analytical and financial expertise with

strategic, management and decision-

making insights.

A study by the American Institute of CPAs

and Chartered Institute of Management

Accountants titled Rebooting Business:

Valuing the Human Dimension (http://

cpa.tc/38l) supports business savvy’s more

prominent footprint in corporate America,

with non-financial senior executives stating

that 68 percent of the value provided to

the organization is non-financial.

However, according to Deloitte’s 2013

Global Finance Talent Survey (http://cpa.

tc/38m), there is growing concern among

many finance executives over recruiting,

retaining and developing finance

employees with such an in-demand

combination of skills.

Management accountants – specifically,

those awarded the Chartered Global

Management Accountant (CGMA)

designation – are setting themselves apart

from other professionals in fulfilling this

unmet need. With their proven talent in

both financial and management areas,

coupled with their business acumen,

management accountants are advancing

into key advisory roles that are critical to

operations and strategy. In the process,

they are filling a talent void that, if not

met, could undermine sustainable growth

and progress.

“As senior leaders continue to look

to finance departments for insightful

management advice and direction,

opportunities will grow exponentially

for CGMAs to prove their value to

organizations, both in the U.S. and

abroad,” said Michael R. Nall, CPA,

CM&AA, CGMA, founder of Alliance

of M&A Advisors. “Among the ways

CGMAs can ensure that their expanded

new role will endure in the years ahead

is to reach out to fellow members of the

CGMA community to share best practices,

and participate in programs that can

further develop their skills, expertise and

leadership perspective.”

REDEFINING CAPABILITIES AND CONTRIBUTIONS

Similar to many of their peers from other

leadership disciplines, management

accountants’ contributions span the full

range of activities, making a measurable

impact on executive decisions,

performance and competitive position.

Whether managing risk across a portfolio

of projects, formulating strategy or

initiating and leading innovation and

change, management accountants are

helping finance departments more

proactively respond to leadership’s call for

deeper, more hands-on collaboration and

partnership.

Further building management

accountants’ value is a skill set that

extends beyond domestic operations.

“Management accountants and CGMAs

are also making tremendous contributions

to global and non-U.S. operations,

especially in long-term strategic planning,

short-term business planning, and

monitoring and control,” said Hiroshi

Miyamasu, CPA, CGMA, finance director

at Nike Japan. “Among the benefits of

their strengthening, multifunctional role

has been a measurable improvement to

the top- and bottom-lines at a time when

organizations of all types need to be at

their competitive best.”

As the new business mandate moves

beyond core financial accounting skills,

management accountants are using a

wide range of financial processes to

move business operations forward. The

following examples underscore some of

the diversity of their responsibilities:

• Providing non-financial information and

analysis of Big Data.

• Advising on internal and external drivers

of cost, risk and value.

• Performing rigorous analysis of the data

leading to performance improvements.

• Sharing insights into product, sector and

customer profitability to determine the

success of marketing efforts.

• Driving cost-reduction strategies within

finance and throughout the organization.

• Setting objectives to ensure that the

business is run in the long-term best

interests of stakeholders.

• Helping to ensure that remuneration

policy supports long-term value creation.

• Leading the identification and

assessment of new business opportunities.

• Developing financial awareness and

expertise within the organization.

• Monitoring how organizational

groups attain goals and contribute to

performance.

• Ensuring that goals are shared across

the business and appropriate resources

are allocated.

Management accountants are increasingly

preparing and being recognized for their

expanded organizational role at a time

when their contribution is strongly felt at

all levels. According to a CGMA survey,

New Skills, Existing Talent, 75 percent

of global finance executives reported

that when finance professionals support

management, the organization better

meets its objectives. In fact, there are few

innovative organizations today that are

genuinely successful without the influence

of management accountants and other

finance professionals.

The New Skills, Existing Talent survey

also provides insights into management

accountants’ potential influence on future

leadership initiatives. When finance

professionals and business managers

were asked whether finance provided an

appropriate training ground for future

business leaders, the majority of each

group responded that it was equal

to or greater than other parts of the

organization.

BUILDING A SUSTAINABLE MOMENTUM

Looking ahead, management accountants

will further identify new opportunities to

broaden their scope of responsibilities,

grow their capabilities and deliver even

greater value. The result will be an

organization that not only maximizes and

benefits from the full potential of the

finance team but is also poised for long-

term success.

Access additional valuable resources and

information on this topic and more at

CGMA.org.

Not a designation holder? Find out

more about the designation and

eligibility requirements at cgma.org/

BecomeACGMA.

STATEMENT26

Technology accelerates niche growth BY L. GARY BOOMER

HIGH-TECH SOLUTIONS

Growth typically requires both

entrepreneurial and managerial skills. The

majority of CPAs are more skilled in the

management area than entrepreneurship.

With both skills, firms can reduce risk

and grow through innovation and

learning. The end result is a new kind

of collaborative accounting where

technology plays an important role – the

accelerator.

How well do you know your clients

and prospects? Do you use the data

to market and differentiate your firm?

Marketing trumps facts when it comes

to sales. Great companies and firms

are using data mining and business

intelligence to increase their market share.

You are the trusted business advisor

with relationships and have access to

important and accurate data. Are you

leveraging these relationships and market

intelligence for the benefit of your clients

and to your firm’s advantage? Or are you

simply too busy charging hours to notice

the less commoditized opportunities?

There are five significant traps that firms

often fall into when trying to enter a new

or expanded niche with new innovation:

1. LACK OF FOCUSED LEADERSHIP

Firm leaders are often distracted with

existing responsibilities and try to develop

the new services on a part-time basis. If

the niche is a priority and part of the firm’s

strategic plan, then adequate resources

including firm leadership should be

allocated accordingly.

2. THE ALLURE OF A PLAN VERSUS A BUSINESS MODEL AND PLATFORM

Conventional wisdom typically includes a

business plan and projections. Too often,

these are little more than a spreadsheet

estimating hourly rates and the number of

hours utilized.

More important is a business model and

platform focusing on client dangers,

opportunities and strengths. The pricing

strategy should be value-based rather

than hourly and the business model

should be collaborative. In order to

be collaborative, the platform will be

typically cloud or software as a service-

based rather than traditional client server

architecture.

3. LACK OF KNOWLEDGE

Firms too often lack knowledge or ignore

important data regarding client needs

other than from an accounting and tax

perspective. While tax and accounting are

important, they are only part of the client’s

requirements.

The CPA is the most trusted business

advisor and must think like a quarterback

rather than a defensive lineman or safety.

There are many higher value-added

opportunities beyond the transactional

services that firms can offer. This requires

a process of communication to identify

and package services beyond tax and

accounting

Some professionals are comfortable with

change while others resist. Is your firm

missing viable opportunities because you

haven’t named, packaged and priced

services to meet client needs? These

opportunities may also require different

skills and delivery personnel.

4. “JUST DO IT” ATTITUDE

The day of the rugged individualist is

over. Today’s client services require a

team approach to meet the expanding

requirements. Broader scope often

requires additional internal or sourced

resources.

Lisa Gansky, the author of The Mesh,

coined the term “mesh.” It is appropriate

for an accounting market in which leasing

rather than owning is appropriate for firms

and their clients. The rugged individual

approach typically results in less-than-

optimal results for the client in the areas

of strategic planning, budgeting, cash

flow, human resources, technology and

talent development. Properly naming,

packaging and pricing these services

can result in extreme client savings and

satisfaction while increasing firm revenue

and margins.

5. TRADITIONAL ACCOUNTING FIRM MANAGEMENT METHODS

Most firms have focused on

independence rather than advocacy. Both

values are important depending upon the

type of service being offered. Continual

commoditization in the audit and tax

compliance areas is forcing firms to look

at margins and rethink service offerings.

The charge-hour mentality also challenges

good business thinking.

With the right business model and

platform, firms can increase both revenues

and margins. Unique processes and

a hosted platform make the services

scalable and address client requirements.

The most profitable firms focus on selling

consulting services, even to assurance

service clients. There are of course some

limitations based upon independence

requirements.


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THE CURRENT ENVIRONMENT AND OPPORTUNITIES

The tools and climate are right to

change industries, professions and the

world. Technology can be disruptive.

The “trusted business advisor” status

requires collaboration, creates value,

requires scope and pricing in advance,

and typically is based upon a fixed

monthly fee with change order clauses to

protect the client and the firm. The “value

creation agreement” improves cash flow

and addresses workload compression, if

properly managed.

You must think more like a lean startup

than a traditional CPA firm. The service

life-cycle has multiple phases. You should

start with the vision of your market,

experiment, and learn as you progress.

Most successful firms admit they got

their start from a client that requested

the additional services in a particular

niche. They learned, adjusted, packaged,

priced and grew the service. To remain

competitive they focus on innovation.

REQUIRED RESOURCES

In practice, we see four primary resources

that dictate success:

1. A champion with passion.

2. Existing clients who need the services.

3. A unique ability team to service the

clients.

4. A technology platform that supports

collaboration.

We will only focus on the characteristics

of the champion who reduces risk and

develops a profitable service. The

characteristics are as follows:

• Level 5 leader with a purpose and vision

beyond personal gain.

• Team builder who is a multiplier leader.

• Access to internal and external

resources.

• Politically connected.

• Proven track record.

• Passionate.

WORDS OF WISDOM

Those with passion do, while those

without passion try. Remember Charles

Kettering’s law on committees: If you

want to grow an idea, keep it away from

committees. Success requires leadership

and a unique ability team.

L. Gary Boomer is CEO and senior consultant

of Boomer Consulting, Inc.

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29OCTOBER 2013

The dollars and sense behind CPA mobile websitesBY MADISON MINER

HIGH-TECH SOLUTIONS

As a CPA in Maryland, you’ve probably

noticed how attached your clients are

to their mobile phones. Busy consumer

and business clients rely on their phones

to communicate and search for local

businesses any spare moment they can

find.

Mobile phones are ingrained into our

daily lives, and the rise in mobile usage is

projected to continue. With mobile web

traffic set to increase

2,600 percent in four

years, CPAs need to

consider how a mobile

world affects their

business.

Consider this: 95 percent

of mobile users search

for local businesses.

Put simply, if you’re

not adjusting to a

mobile world, you’re

losing business. This

is especially true for

professional services

because your clients

(or potential clients) will be making a

decision about your credibility based on

your web presence. In fact, 40 percent of

smartphone users switch to competitors

after a bad mobile experience. The last

thing you want is another roadblock

between you and your clients.

So, can your mobile customers view your

webpage on a small screen?

Customers today expect websites to be

mobile friendly and easy to navigate with

their fingertips, without having to pinch

and zoom. And with mobile browsing

speeds getting faster, the desktop

computer is no longer the access point to

the Internet. Mobile websites are the new

vehicle for web browsing.

When you make the move to go mobile,

consider the following tips to make your

site interactive for your clients:

• CALL WITH ONE CLICK. It’s important

to make it easy for mobile users to contact

you. The goal is to turn a search into a

client. And the simplest way to do this is

to enable a “click to call” function on the

mobile site. This is also true for contact

pages. These should be simple and built

for hassle-free touch screen navigation to

help capture incoming business.

• GUIDE THEM TO YOUR DOOR.

Your website should sync with mapping

features such as Google Maps so that

a user can find you in a search and get

directions from their current location.

• SOCIALLY SMART. If you have carved

out some time to create a blog or social

media presence, incorporate that on your

mobile site. These mediums give you

an outlet to engage existing and new

customers. Not only that, social media is a

powerful tool to grow your client referrals.

A mobile website should capitalize on this

by integrating with all social networks.

• STREAMLINE. Many of the flashy

design tricks, heavy text blocks, and

oversized graphics that work for a desktop

site will not serve you well on mobile. In

fact, they may take so long to load that

you lose customers – if they load at all.

The design and content should remain

brand consistent but be

accessible and easy to

find. No pinching and

zooming required.

• MORE THAN

NUMBERS. You are

the cornerstone of your

business and your most

valuable asset. You

want to foster trust and

be approachable. Your

mobile website should

clearly show who you

are and why you should

be trusted with a client’s

finances.

Once your mobile site is up and running,

you will see more traffic from search

engines via smartphones, and have more

of those searches lead to new clients.

It’s a mobile world, which is an advantage

to CPAs who seize the opportunity to stay

connected.

Madison Miner is CEO of WompMobile, a

Bellingham-based company that converts

regular websites to mobile ready, making them

accessible and searchable on smartphones. For

more information, visit www.wompmobile.com

or e-mail [email protected].

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Six ways the IRS uses information statements for complianceTHE IRS IS LEVERAGING DATA AND DEVELOPING INITIATIVES TO AUTOMATICALLY MATCH INFORMATION

Editor’s note: The following article was published in June 2013 in the AICPA CPA Insider e-newsletter. It is reprinted with permission.

BY JIM BUTTONOW, CPA, CITP

TAX CORNER

The IRS estimates that employers,

businesses, financial institutions and

other payers will file almost 2.3 billion

information statements (http://cpa.

tc/37m) for 2012 to report income

and financial transactions to the IRS.

Individuals and businesses use this

information to help prepare accurate tax

returns. The IRS uses this information to

address the $450 billion annual loss in

taxes due to taxpayer underreporting,

non-filing and underpayment.

IMPORTANCE OF INFORMATION STATEMENTS TO COMPLIANCE EFFORTS

Every year, an IRS Oversight Board survey

(http://cpa.tc/37n) studies factors that

influence taxpayer voluntary compliance.

Consistently, the survey results indicate

that the second-most compelling

factor holding taxpayers accountable

to accurately file and pay their taxes,

behind personal integrity, are third-party

information statements. This ranks even

higher than fear of an IRS audit.

As the IRS faces reduced budgets

and personnel, its use of information

statements is a cost-effective, high-touch

strategy to hold taxpayers accountable.

In information-matching programs, IRS

systems detect inconsistencies between

third-party information statements and

taxpayer data, and the taxpayer receives

a notice. In 2012, information-matching

programs (http://cpa.tc/37o) were the

only major compliance initiatives to

increase enforcement revenue.

Testifying before Congress on April 9

(http://cpa.tc/37p), former acting IRS

Commissioner Steven Miller provided

a prospective on how the IRS views

information reporting for compliance

enforcement.

“It will be interesting to see what some of

the reporting that (lawmakers) have given

(the IRS) will do to the tax gap in the next

couple of years – the foreign account

reporting, the credit card reporting, the

basis reporting. Those are going to be

interesting things that should make us

much more efficient,” Miller said.

Miller also made clear that the IRS places

a premium on the technology resources

needed for information-matching

programs.

“If you were to ask me, ‘If you had

one last dollar … and that dollar was

for bodies or for IT,’ I would take it for

IT, because that is the lifeblood of our

efficiency,” Miller said.

The IRS will continue to develop initiatives

in this area. For example, in 2012, the IRS

expanded its under-reporter matching

programs to businesses. The IRS is

setting the stage to use technology and

information statements to address the

most egregious under-reporters: small

businesses.

HOW THE IRS ALREADY USES INFORMATION STATEMENTS

There are a variety of existing IRS

information-matching programs for

individuals and businesses. Here’s how

several of the programs work:

Individual Automated Underreporter

(AUR) program: You’ll know this matching

program by its primary notice: CP2000,

Notice of Proposed Adjustment for

Underpayment/Overpayment. IRS systems

automatically send this notice when items

reported on Form 1040 returns don’t

match information reported to the IRS

by employers and other payers. The first

round of these notices arrives just after

Thanksgiving, and the second round

arrives toward the end of the next year’s

filing season.

The CP2000 notice has been a mainstay

of IRS information reporting for decades.

In 2012, the IRS issued more than 4.5

million CP2000 notices, with an average

of $1,572 in additional taxes owed

(http://cpa.tc/37q).

Business Underreporter (BMF-

AUR) program: Many taxpayers and

practitioners think the IRS matches

income reported under business Employer

Identification Numbers to business

returns. However, until September 2012,

the IRS conducted business matching only

in audits. The IRS is in the preliminary

stages of a program that matches

business income against filed Forms

1120, producing a new automated notice:

CP2030, Initial Notice Issued to Request

Verification for Unreported Income,

Deductions, Payments and/or Credits

on BMF Income Tax Returns Matched to

Payer Information Documents.

STATEMENT32

Form 1099-K merchant card transaction

matching program: In 2012, the IRS

started receiving Forms 1099-K reporting

merchant card transactions, and the IRS

quickly began using this information to

match against business returns. However,

because businesses do not specifically

report merchant card transactions as

separate line items on business tax

returns, the IRS can only infer potential

underreporting. For example, if a business

has a disproportionate amount of cash

to credit / debit card sales, based on its

line of business, the IRS may look closer.

These kinds of mismatches have led the

IRS to develop compliance initiatives,

including “soft” notices requesting

explanation and mail audits requesting

documentation.

The IRS is in the learning stages of

developing the Form 1099-K matching

initiative. Many initial notices indicate that

the IRS is focusing on under-reporting

cases in which merchant card payments

appear to make up the majority or

even exceed the total business receipts

reported on the return. In these cases,

the IRS perceives that the business is

underreporting cash sales due to the

disproportionate share of merchant card

payments. Accrual-basis taxpayers and

e-commerce businesses whose receipts

do not neatly match merchant card

transactions are likely early targets in this

program.

Automated substitute for return program:

According to the 2006 Tax Gap Study,

the U.S. Treasury loses $28 billion (http://

cpa.tc/37r) annually due to taxpayers

who don’t file their returns. When a

taxpayer does not file and the IRS has

information statements indicating a filing

requirement, the IRS uses the data to

file a return on behalf of the taxpayer

if there is a projected balance owed. In

2012, the IRS used information statements

to file 803,000 returns for taxpayers,

totaling $6.7 billion (http://cpa.tc/37q) in

additional taxes owed.

The IRS also uses information statements

to investigate non-filers. These inquiries

are called taxpayer delinquency

investigations (TDIs), in which the IRS

Collection function pursues potential non-

filers who don’t respond to delinquent

return notices. At the end of 2012, 3.9

million TDIs (http://cpa.tc/37s) were in

progress.

HOW THE IRS WILL EXPAND ITS USE OF INFORMATION STATEMENTS

Congress has expanded the IRS’s

reach to access more information to

enforce compliance and implement new

legislation. Here are two examples:

Under-reporting of foreign income:

According to a 2009 TIGTA study,

annual losses to the U.S. Treasury due

to international under-reporting could

be as high as $123 billion a year (http://

cpa.tc/37t). To combat that loss, the IRS

is implementing the Foreign Account

Tax Compliance Act (FATCA) to receive

information on foreign accounts. In 2014,

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33OCTOBER 2013

the IRS will have the ability to match

taxpayers’ returns against the information

it receives on U.S. taxpayers with accounts

at foreign financial institutions. The IRS

will likely scrutinize taxpayers who have

not filed the required

Form 8938, Statement

of Specified Foreign

Financial Assets.

Affordable care act

compliance: As the

Patient Protection and

Affordable Care Act

(PPACA) becomes fully

implemented in the next

several years, the IRS will

start using information

statements for individual

and employer compliance with PPACA

mandates. In 2012, employers reported

the value of employer-provided health

insurance (http://cpa.tc/37u) on Forms

W-2 to inform taxpayers of the value

of their health insurance coverage. As

proposed in IRS Notice 2012-32, in 2015,

the IRS will also receive information from

health insurance companies (http://

cpa.tc/37v) on employee coverage,

including the name and identifying

information of the employer. The IRS

can use the information to identify and

penalize individuals and employers for

noncompliance with PPACA mandates.

THE FUTURE: COMPLIANCE ACHIEVED THROUGH BIG DATA

A recent Government Accountability

Office study (http://cpa.tc/37w) showed

that the IRS spends $267 million on under-

reporter matching programs, compared

to the $4.2 billion it spends on audits.

Automated information-

matching programs return

almost six times more

revenue than audits.

With fewer IRS agents

and reduced budgets,

the IRS will increasingly

rely on technology-driven

matching programs that

use hundreds of millions

of information statements

– and growing.

Jim Buttonow, CPA/CITP, is cofounder of

Beyond415. He has more than 26 years of

experience in IRS practice and procedure.

Reach Jim at [email protected].

“If you were to ask me, ‘If you

had one last dollar … and that

dollar was for bodies or for IT,’

I would take it for IT, because

that is the lifeblood of our

efficiency,” Miller said.

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BY EDWARD E. SHARKEY, ESQ.

How does a business figure out who can be an independent contractor?

TAX CORNER

Would you like to save a client from liability for significant penalties?

The next time you hear a client say it need

not withhold employment taxes because

its workers are independent contractors,

ask what criteria they used to classify the

workers.

Businesses do not have discretion to

decide that a worker is an independent

contractor. Instead, a variety of state

and federal laws establish tests

for determining which workers are

employees and which can be classified

as independent contractors for particular

purposes.

A recent case (http://tinyurl.com/

bjb9dbh) from Kansas reminds us that

getting the classification wrong affects

more than just tax liability. It affects

requirements for wages, worker’s

compensation insurance, retirement

benefits, and health care.

The case concerned a business that

classified exotic dancers as independent

contractors. One of the dancers filed

for unemployment benefits. Eventually,

her claim made its way to the Kansas

Supreme Court. The court assessed the

parties’ relationship under the law of its

state.

In Kansas, as in most other states, the

critical factor in determining whether a

worker is an employee or an independent

contractor is the business’s right to control

the worker and his or her work. In this

35OCTOBER 2013

case, the court held that the dancers

were employees for whom the business

was required to make unemployment

insurance contributions.

The following facts were enough evidence of control:

1. THE BUSINESS SET RULES FOR THE DANCERS.

2. RULE VIOLATIONS WERE PUNISHABLE BY FINES AND TERMINATION.

Numerous factors are relevant to

assessing the level of control. Guidance

issued by the IRS (Available at: http://

tinyurl.com/bg6wcrv), for example,

lists 20 factors to be considered. Some

jurisdictions and agencies, such as

Maryland’s Department of Labor (http://

tinyurl.com/atr69h5), identify criteria, in

addition to control, that are relevant to

the classification of workers.

In any case, properly designating a worker

requires a fact intensive inquiry. For this

reason, and because the test for who is

considered an independent contractor

varies depending on the jurisdiction

and law in question, clients need to

review their designations carefully, and

potentially with counsel, before they

become the target of a state or federal

investigation.

Edward E. Sharkey focuses on business law

and litigation in Bethesda, Md. He can be

reached at [email protected] or www.

sharkeylaw.com.

BY SUSAN JAFFE ROBERTS

Recognizing insolvency under the Bankruptcy Code and its impact on the CPA-client relationship

FINANCIAL PLANNING

In difficult economic times, it is important

for a CPA to recognize the signs that

a client may be insolvent within the

meaning of the United States Bankruptcy

Code, 11 U.S.C § 101, et seq.

For a CPA, an insolvent company simply

has a negative net worth. Total liabilities

exceed total assets, resulting in a situation

in which the client is “insolvent on

the books.” A company that is simply

insolvent on the books may not, however,

be insolvent under the code.

INSOLVENCY UNDER THE CODE

Under the code, a corporate business

debtor is insolvent when its “financial

condition (is) such that the sum of such

entity’s debts is greater than all of such

entity’s property, at a fair valuation …” 11

U.S.C § 101(32). Thus, while book value

may be indicative of insolvency (since a

company’s financial statements are often

analyzed based upon historic information)

and may be based upon acquisition

costs and applicable depreciation,

book value as reflected in a company’s

financial statement is not sufficient alone

to demonstrate a company’s insolvency

under the code because it does not

represent the actual fair market value of

the company.

A different analysis applies depending

on whether the company is a going

concern for bankruptcy purposes or on its

“deathbed” – that is, in such a precarious

financial condition that liquidation is

imminent when a bankruptcy petition is

filed. Fair value will be determined by

the fair market price of the debtor’s assets

that could be obtained if the company

were sold to a willing buyer in a prudent

manner within a reasonable time to pay

the debtor’s debts.

In addition to book value, expert

opinions, appraisals and the company’s

actual operating experience will be

considered in this determination. To

determine the fair value of a company

on its “deathbed,” the court will apply a

liquidation test in which the value of the

debtor’s assets is the aggregate price

the assets would fetch at a liquidation or

distress sale. Only after the fair value of

the company is determined will the court

apply a balance sheet test to determine

whether the company was insolvent or

not.

To be clear, a company may be a going

concern and still be insolvent under

the code. Moreover, a company may

file a bankruptcy case to restructure its

liabilities, but not be insolvent under the

code.

If a client entity is insolvent on the books,

a CPA should look for signs that the entity

is insolvent under the code. Classic red

flags include the failure of the company

to pay its debts as they come due in

the ordinary course of business, lack of

liquidity, acquisition of new debt solely to

pay existing debt or the securitization of

previously unsecured debt, transactions

that leave the company undercapitalized,

failure to pay tax liabilities, inability to

obtain new credit, credit relationships

that convert to cash on delivery, lawsuits

and judgments, decreased sales, and

higher percentages of aged receivables.

If signs of code insolvency exist, the CPA

should consider whether the distressed

client may need to take steps to facilitate

a turnaround, including as an option,

consulting an attorney regarding the

filing of a bankruptcy case to assist in

the reorganization process before the

company ends up on its deathbed.

As a CPA, you may wonder how your

client’s insolvency impacts you. Two

common issues may arise: first, the ability

to retain payments the client has made

within the preference period, and second,

the ability to continue to provide services

to the debtor and to be paid for those

services after the petition is filed.

PREFERENCES

Under the code, an entity is presumed

to be insolvent during the preference

period, the 90-day period prior to the

filing of the petition. Upon filing, all assets

of the entity become part of the debtor’s

“estate,” which consists of all legal and

equitable interests of the debtor – that is,

assets in the debtor’s possession, as well

as assets of the debtor in the hands of

others, as well as the debtor’s claims and

causes of action.

Based upon the code’s prime policy of

equality of distribution, the debtor (or

a court appointed trustee) may seek to

bring payments made to creditors during

the preference period back into the estate

to be part of the assets to be distributed,

pro rata, to creditors. If the CPA has

received payments on fees from the

bankrupt entity in the preference period,

those fees are potentially recoverable

for the estate, unless certain affirmative

defenses apply to preclude recovery.

For a CPA who has maintained a regular

billing and payment relationship with the

client throughout the preference period,

preference claims may be defended

on the grounds that the payments

were made in the ordinary course of

business between the client and the

CPA. Additionally, while the debtor entity

will be presumed insolvent during the

preference period, a preference claim will

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be dismissed if the debtor is shown to

have been solvent during the preference

period. The CPA may also have other

defenses to preference claims, of which

defense counsel may advise.

GETTING ENGAGED AND PAID AFTER YOUR CLIENT FILES FOR BANKRUPTCY

Once a bankruptcy petition is filed,

your client may need your services as

a CPA as much, or more, than prior

to its bankruptcy. The bankrupt client

may need to provide various kinds of

budgets, projections and forecasts to

the court to support requests for use

of cash subject to secured creditors’

liens, and to support the confirmation

of a plan of reorganization. If the usual

services are provided and are part of the

debtor’s normal operational budget, the

CPA may be paid as an ordinary course

professional, after being approved for

such a designation by an order of the

court. As an ordinary course professional,

the CPA would invoice the client entity

and be paid just as before the bankruptcy

filing.

If the CPA’s post-bankruptcy services are

expected to be more extensive and to

be a significant but necessary cost to the

debtor’s estate, the debtor may need

to obtain permission from the court to

engage the CPA. Then, the CPA cannot

be paid for his services without the court’s

approval for the engagement. The motion

seeking authority for the bankrupt client

to engage the CPA must be accompanied

by the engagement letter and the fee

structure, usually hourly rates, must be

disclosed.

Subsequently, the CPA must submit an

application to the court for approval for

fees incurred to be paid. The application

must be detailed and include descriptions

of the services performed and the time

spent on the services. In some cases, if

you have invoices from the preference

period that remain unpaid by the client,

you may need to waive payment of those

invoices in order to be approved for the

post-bankruptcy engagement.

If your client needs to file a bankruptcy

case, be sure to communicate with the

client’s counsel. If you are providing

post-bankruptcy services, it is important

to work with the debtor’s counsel to

ensure you know your status, whether

as an ordinary course professional, or as

a professional engaged by the debtor’s

estate who is subject to the approval and

fee application process.

FOOTNOTE

1. For bankruptcy purposes, a “going

concern” valuation is not the same as

under generally accepted accounting

principles. Rather, in bankruptcy, a “going

concern” is a commercial enterprise

actively engaging in business with the

expectation of indefinite continuance.

Susan Jaffe Roberts is a partner with the

law firm of Whiteford, Taylor & Preston, LLP.

Her practice focuses on bankruptcy, complex

litigation, accountant malpractice claims, and corporate issues.

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37OCTOBER 2013

BY ALAN ZIPP, CPA, ATTORNEY

Tax and financial planning for the transfer of property in divorce

FINANCIAL PLANNING

The U.S. Supreme Court recently ruled

that same-sex couples have as much right

as heterosexual couples to be miserable in

their marriage and suffer the same income

tax problems when they divorce. [United

States v. Windsor, 570 U.S. (2013)].

Among the many tax traps facing

divorcing couples, regardless of sexual

preference, are the tax consequences of

property transfers.

In Maryland, state law requires the Family

Law Court to (1) identify all marital

property, (2) value each item of marital

property, and (3) equitably allocate the

property between the spouses.

A CPA can provide valuable assistance

to the divorcing client and the attorney

in the identification and valuation of

marital property. In addition, a CPA can

be an important advisor in assisting in the

development of a settlement agreement

to equitably divide marital property.

Although the general rule of Section 1041

is that no gain or loss is recognized on

a transfer of property from an individual

to a spouse or former spouse incident

to a divorce, the transfer can have

significant tax consequences upon the

subsequent disposition of the property. In

some cases, the immediate transfer may

cause recapture of previously claimed

tax benefits, such as where depreciable

business property used by one spouse is

transferred to the other who does not use

the property in a trade or business.

Section 1041 requires the recipient spouse

to take the property subject to all of the

tax attributes of the transferor. Those tax

attributes include basis carryover; Section

179 recapture if the transferee does not

“One of the most significant tax traps is the federal tax lien against one of the parties.”

STATEMENT38

use the property in a trade or business;

Section 280F listed property depreciation

recapture; Section 1245 ordinary income

(rather than capital gain) for depreciation

taken by the transferor; Section 469(j)

(6) denial of suspended losses on the

transfer of passive activities; Section

1366(d)(2)(B) carryover of S corporation

suspended losses; a carryover of federal

tax liens against the transferor for

property transferred; income and excise

taxes for pension transfers without a

court order; ordinary income recognition

to the transferee upon the exercise of

non-statutory stock options and non-

qualified deferred compensation; and

constructive dividends to the transferor

upon the redemption of corporate stock

in a divorce.

Effective financial planning requires a

CPA to value all property on an after-

tax basis to determine what an equal

division of property would be. While the

divorce court applies an

equitable distribution

policy, a CPA advisor

should analyze proposed

property divisions on

an equal after-tax value

basis.

Also, potential tax traps

should be presented

to the client and the

divorce attorney. One of

the most significant tax

traps is the federal tax

lien against one of the

parties.

The United States

Supreme Court ruled

[U.S. v. Craft, 535 U.S.

274 (2002)] that an IRS

lien on the husband

continued against

property owned by him

and his wife, as tenants

by the entireties at the

time the lien was placed,

even after the property was transferred to

the wife in a divorce settlement. Several

years after the divorce, the wife sold the

house and the IRS seized 50 percent

of the proceeds to satisfy the tax lien

against the husband. A CPA should

advise the attorney that tax liens

against one of the parties should

be satisfied before joint property is

divided in a divorce settlement.

Stock in a closely held business can

be transferred in a divorce under

Section 1041 without immediate tax

consequences. However, in most

cases one of the spouses wants to

remove the other from the business,

so a buy-out of the other’s interest is

frequently the plan. This can result in

unintended tax consequences if the

cash comes from the business. In many

cases the corporation is used to redeem

the stock of the party to be bought out.

This results in a constructive dividend,

taxable as ordinary income, to the spouse

continuing to own the business.

The Tax Court view is that a corporate

redemption to the wife was “on behalf

of” the husband and that the husband

realized a constructive dividend [Reed,

Carol, et al., 114 T.C. 2 (2000)]. The

best planning advice in such cases is for

the husband to borrow the cash from

the corporation and use the funds to

buy out the wife’s shares. In that case,

Section 1041 would apply and no taxable

income would be recognized. Corporate

redemptions should be avoided whenever

possible.

IRA accounts can be transferred without

penalty or income taxation to the

transferor if made pursuant to written

agreement incident to divorce, under

Section 408(d)(6). Under that provision,

the husband’s IRA can be transferred

directly from his IRA into the IRA of

the wife. If the transfer is accomplished

between the trustees, no withholding

tax will be required. The wife will be

subject to income taxation when she takes

distributions from her IRA.

Keogh and pension accounts can be

transferred without tax consequences

to the transferor if the funds are first

transferred from the pension into the IRA

of the transferor and then transferred into

the IRA of the transferee.

A Qualified Domestic Relations Order,

issued by the Family Law Court, can be

used to transfer pension funds from one

spouse to the other. If the order transfers

the pension into the IRA of the other

spouse no tax consequences will result

until distributions are made from the IRA.

If the order requires the distribution from

the pension of one party directly to the

other, no early withdrawal penalty will be

applicable, but the recipient spouse will

be subject to ordinary income tax on the

pension income under Section 61(a)(11)

[Weir, Katherine, T.C. Memo. 2001-184].

After-tax valuations of all property should

be made based on the fair market value

of the property less the adjusted basis of

the property. An inventory of this after-tax

value can be provided to the client and

the attorney to assist in the development

of an effective property settlement

agreement.

Alan Zipp is a CPA, Attorney at Law, Certified

Business Appraiser, Certified Fraud Examiner,

author, lecturer, and discussion leader for the

AICPA.

LEARN MORE AT THE ADVANCED PFP CONFERENCEAlan Zipp will be speaking on “Tax and

Financial Planning for Property Transfers

in Divorce” as part of the MACPA’s 28th

annual Advanced Personal Financial Planning

Conference, scheduled for 8 a.m. to 4:30 p.m.

on Oct. 25 at Martin’s West in Baltimore. Get

details and register at http://cpa.tc/38j.

39

BE THERE WHEN YOU CAN’T BE THEREMACPA offers over 400 webcasts a year.macpa.org/webcasts

What’s up with the MACPA’s BVLS Committee?

PROFESSIONAL DEVELOPMENT

THERE’S A LOT HAPPENING WITH THE MACPA’S BUSINESS VALUATION AND LITIGATION SERVICES COMMITTEE.

For one thing, it is changing its name

to the Forensic and Valuation Services

Committee to adequately address the

topics covered at its recurring Speaker

Series and the annual conference.

Founded in 1990 to provide a forum for

CPAs practicing in the area of business

valuations, the committee has grown to

more than 200 committee and association

members. Its members and the profession

have continued to diversify the type of

consulting services that it offers. Growing

out of their expertise in accounting and

business valuations, members also work

in other areas such as lost profit / value

analyses, fraud investigations, asset

tracing, bankruptcy administration, and

forensic accounting. That’s in addition to

providing expert witness testimony in all

of the aforementioned areas. Therefore,

consistent with the AICPA’s committee

structure, the committee has changed its

name to include forensic services.

During the fiscal year, the committee

offers a Speaker Series, a valuation

and forensic conference, and other

targeted education opportunities. The

committee plans four to six Speaker

Series presentations each year. The

Speaker Series is usually held on the third

Friday of each month from 8:30 to 10:30

a.m. at the MACPA’s Columbia Center.

The committee will host speakers in

September, November, January, April and

July.

In 2014, the BVLS Committee is planning

its second annual Forensic Valuations

Conference, to be held on May 16 at

the BWI Hilton. Last year’s conference

was a great success, featuring nationally

recognized speakers such as Mark Zyla

and Gary Trugman and showcasing the

talents of regional experts. The committee

anticipates even greater participation this

year.

In January, as part of its Speaker Series,

the committee is planning a “mini-mock

trial.” Last year, the committee hosted an

interactive mock deposition and trial at

Stevenson University to offer members

a unique and in-depth understanding of

defense strategies used in the courtroom.

This year, the group plans to offer a two-

hour, focused program specifically on the

role of the expert witness.

The committee also has new leadership for the 2013-14 fiscal year:

• Chairperson Lynette Brown, of Invotex, Inc.;

• Vice Chairperson Kris Hallengren of Weyrich, Cronin & Sorra Chartered; and

• Secretary David Lanchak of Gross, Mendelsohn & Associates, P.A.

The BVLS Committee is ably supported

by its MACPA coordinator, Dee Sullivan,

the MACPA’s conference manager and

webcast specialist.

The committee is actively recruiting

interested individuals to participate.

Members must attend a minimum of

number of meetings annually to remain

on the committee. If you are interested

in joining the committee, would like to

attend committee events, or would like

more information about the committee

and upcoming events, please call Dee

41OCTOBER 2013

ON-SITE TRAINING

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solution to your needs.

BE THERE WHEN YOU CAN’T BE THEREMACPA offers over 400 webcasts a year.macpa.org/webcasts

Cynthia “Cindy” Alt, CPA, a Shareholder with

Stoy, Malone & Company, P.C., was awarded a Paul

Harris Fellowship by the Rotary Club of Towson in

recognition of her volunteer services to the Club.

Paul Harris was the founder of Rotary International. The RI

Foundation has established the Paul Harris Fellowship as a way

to recognize people who make valuable contributions to the

community.

Sara Baker, an MACPA CPA Candidate Member, has been

promoted to senior accountant with Squire, Lemkin +

Company. Ms. Baker received her bachelor’s in Accounting

from Shippensburg University. She is currently working on her

masters from George Washington University.

McLean, Koehler, Sparks & Hammond (MKS&H)

is pleased to announce the addition of Wayne

Baldwin, CPA. He has joined the accounting and

business consulting firm as a principal. In his new

role, Mr. Baldwin will be in charge of overseeing

the daily operations and client service aspects of the audit and

accounting department in the Hunt Valley office.

Scott Beck, CPA, CFO at Catholic Charities of Baltimore, was

recently honored with a Baltimore Business Journal 2013 CEO/

CFO Dream Team Award. Winners are judged on the impact

they make on their businesses, such as revenue growth, new

products and innovations, M&A success, stock appreciation, net

income growth, corporate philanthropy, and overall leadership

style.

Invotex, a national accounting, financial and

economic consulting firm, is pleased to announce

that Lyn Brown, CPA, has been elected Chair

of the Business Valuation and Litigation Services

committee of the Maryland Association of Certified

Public Accountants. A director in Invotex’s litigation practice,

Ms. Brown has been a member of BVLS for seven years. As

incoming chair, she will focus on a number of new initiatives

involving training, development, and membership.

Lyn Brown, CPA has also been appointed an adjunct professor

at Georgetown Law School. She will teach Basic Accounting

Concepts for Lawyers in the Master of Laws program this fall.

Mark A. Buckberg, CPA, CFE, CFF recently

joined Bond Beebe Accountants & Advisors as

a Principal in the rapidly-growing Benefits and

Labor Sector. A professional with over eighteen

years of accounting experience, Mr. Buckberg specializes in

providing audit and accounting services to multi-employer

benefit plans and labor organizations. A Certified Fraud

Examiner and Certified in Financial Forensics, he is also deeply

experienced in performing fraud examinations and providing

litigation support for labor organizations, multi-employer benefit

plans, and a wide variety of privately-held entities.

Lily Cheng, an MACPA CPA Candidate Member, joined Squire,

Lemkin + Company, LLP as a staff accountant on September 3,

2013. Ms. Cheng received her bachelor’s in Accounting from

Shippensburg University.

William Coulter, Jr., CPA, has been promoted to in-charge

accountant with Squire, Lemkin + Company. He recently earned

his CPA designation. Billy received his bachelor’s in Accounting

from Mt. St. Mary’s University.

DeLeon & Stang is pleased to announce Allen

DeLeon, CPA, PFS, a Partner at DeLeon &

Stang, has been elected to the Montgomery

College Life Sciences Park Foundation Board.

The Montgomery College Life Sciences Park

Foundation is an educational foundation that manages the

assets of the College’s life sciences park and helps foster

academic partnerships with firms and individuals in the life

sciences industry. Mr. DeLeon is a founding partner of DeLeon &

Stang. His specialties include audit, tax, financial and advisory

services for businesses and not-for-profit organizations.

Ellin & Tucker, Chartered, announced that Samantha

DeRemigis, CPA, has been promoted to Supervisor in the Tax

Department. Prior to joining Ellin & Tucker, Ms. DeRemigis

was a tax associate for a regional accounting firm. She holds a

Bachelor of Science degree in accounting and is a Candidate for

a Master of Science degree in Taxation from the University of

Baltimore, School of Law.

Susmita Ghimire, an MACPA CPA Candidate Member, joined

Squire, Lemkin + Company, LLP as a staff accountant on

September 3, 2013. Ms. Ghimire received her bachelor’s in

Accounting from University of Maryland, College Park.

Scott Handwerger, CPA, a member of Gross

Mendelsohn’s Construction and Real Estate

Group, was recently named a partner at Gross,

Mendelsohn & Associates. He helps contractors

and real estate developers, managers and

investors with tax planning and tax compliance. He specializes

in cost segregation studies, which often benefit companies that

NEWS & VIEWSMEMBER NOTES

STATEMENT42

MEMBER NOTES

43OCTOBER 2013

have built a new facility or renovated an existing facility. Mr.

Handwerger also provides a full range of tax and accounting

services to restaurants.

Volunteers of America Chesapeake announced the appointment

of John P. (Jack) Hollerbach, CPA, as Executive Vice President

and Chief Financial Officer. In the newly created role, Mr.

Hollerbach will assume responsibility for the organization’s

strategic, financial and administrative functions, and will play

a key role in assessing new opportunities for growth and

expansion of the nonprofit organization.

Russ Houseal, CPA, recently retired after working 49 years as a

CPA. He established his own firm in 1976 and sold it to Twilley

Rommel & Stephens, PA in 2007. Mr. Houseal has been a

member of the MACPA for almost 40 years.

Carl Kampel, CPA, Director in Charge of

Professional Standards at Ellin & Tucker, Chartered,

was recently elected to serve on the 2013-14

Board of Directors of the Maryland Association of

Certified Public Accountants (MACPA). Mr.

Kampel advises clients on financial reporting for complex

transactions and represents the firm before financial reporting

standard-setting organizations. He is a member of the Financial

Accounting Standards Board Emerging Issues Task Force,

the Board of Directors of the Baltimore Chapter of Financial

Executives International (FEl) and Co-Chair of the Baltimore

Chapter of the Financial Executives Networking Group.

Jeffrey M. Lawson, CPA, a shareholder of Stoy,

Malone & Company, P.C., has been appointed to

the Towson University Accounting Advisory Board.

His primary areas of concentration at the firm are

pass-through entity taxation, state and local taxation (SALT)

and individual income taxation. In addition, Jeff frequently

represents clients with federal and state tax examinations and

notices. Jeff serves clients all over the world ranging from

self-employed individuals to large multi-state corporations

and partnerships. His primary specialty areas are real estate,

investments and foreign compliance.

Jim Liang, CPA, has been elected a partner of Rosenberg

Martin Greenberg, LLP. He represents individuals and entities

during all stages of federal and state tax controversies and

litigation. Prior to joining the firm, Mr. Liang was employed as

a Certified Public Accountant, during which time he prepared

individual, business and trust tax returns and performed audits

and reviews of a wide range of businesses, including health

care, real estate and casualty and life insurance companies.

Gross, Mendelsohn & Associates, P.A. is pleased to announce

that Cristine “Tina” McCubbin, CPA, joined the firm’s tax

department as a senior accountant. Ms. McCubbin graduated

from Towson University with a bachelor’s degree in accounting

and from University of Baltimore with a master’s degree in

taxation. She is a Certified Public Accountant with 17 years of

accounting experience in public accounting and private industry.

Stegman & Company would like to congratulate Matthew

Mehlbaum, an MACPA CPA Candidate Member. He has been

promoted to the position of Senior Accountant at the firm.

Craig Mellendick, CPA, CFO at Enterprise Community

Investment, was recently honored with a Baltimore Business

Journal 2013 CEO/CFO Dream Team Award. Winners are

judged on the impact they make on their businesses, such as

revenue growth, new products and innovations, M&A success,

stock appreciation, net income growth, corporate philanthropy,

and overall leadership style.

Hertzbach & Company, P.A. is pleased to

announce that Donald S. Miller, CPA, has joined

the firm as a principal. Mr. Miller has over twenty

five years of public accounting experience. Prior

to joining Hertzbach, he was a Director at Ellin

& Tucker. Mr. Miller has extensive experience providing audit,

accounting, tax, and consulting services to the manufacturing,

wholesale, not-for-profit, and employee benefit plan industries.

Stegman & Company would like to congratulate Scott Murray,

CPA. He has been promoted to the position of Supervisor at

the firm.

Kathryn Nelson, CPA, Tax Manager of Squire, Lemkin +

Company, LLP, was elected as the President of the Washington,

DC Estate Planning Council. Her term will run through June 30,

2014.

Gelman, Rosenberg & Freedman CPAs announces that

Jacqueline Oneto, CPA, will become the firm’s new managing

partner effective July 1, 2013. She will succeed David F. Graling,

CPA, who has served as managing partner since 1998. Ms.

Oneto, a partner at Gelman, Rosenberg & Freedman, specializes

in providing non-profit audit services and benefit plan audit

services for 401(k), 401(a), 403(b), profit-sharing, pension, health

and welfare plans.

STATEMENT44

NEWS & VIEWS


that Willie “Will” Pass, an MACPA CPA Candidate Member,

joined the firm’s audit and accounting department as a semi-

senior accountant. Mr. Pass graduated from University of

Maryland with a bachelor’s degree in accounting and is pursuing

a master’s degree in nonprofit management and finance at

University of Maryland University College. He has 12 years of

accounting experience.

Byron K. Patrick, CPA.CITP, CGMA, MCSE, Co-founder/CEO

of Simplified Innovations Inc. and Chair of MACPA’s Board of

Directors, was recognized as a “40 Under 40” Honoree by The

CPA Practice Advisor. The “40 Under 40” program recognizes

individuals in accounting, tax, and related fields under the age

of 40 that exemplify the best in their field.

Glen R. Peak, III, an MACPA CPA Candidate

Member, recently joined the professional staff of

Stoy, Malone & Company, P.C., a Towson-based

regional accounting and business consulting

firm. Mr. Peak graduated from Towson University and is in the

process of earning his CPA designation. He will provide tax

preparation for a wide range of individual and corporate clients.

Reid Roberts, CPA, CCIFP, a member of Gross

Mendelsohn’s Construction and Real Estate

Group, as well as the Nonprofit Group and

Healthcare Group, was recently named a partner

at Gross, Mendelsohn & Associates. He provides

audit, accounting and tax services, including employee benefit

plan audits, to construction contractors, long-term healthcare

providers, and manufacturers and distributors. Mr. Roberts

is a Certified Construction Industry Financial Professional, a

designation earned only by those with specialized expertise in

the construction industry.

R. Christopher Rosenthal, CPA, a Director in the

Forensic and Valuation Services Group at Ellin

& Tucker, Chartered, has recently been elected

President-elect of The Baltimore Estate Planning

Council. The Council is an interdisciplinary

organization for professionals involved in estate planning.

It strives to foster understanding of the proper relationship

between the functions of the Trust Officer, Attorney, Qualified

Financial Advisor, Non-Profit Professional, Accountant, and any

other party or parties having to do with estate planning, and to

encourage cooperation of persons under those disciplines.


that Rich Shank, CPA, CMA, a supervisor in the firm’s audit

and accounting department, was appointed treasurer of Stocks

in the Future, a nonprofit organization developed by Johns

Hopkins University to teach financial life skills to middle school

students.

Jillian Sposato, CPA, has been promoted to Supervisor with

Stegman & Company. Ms. Sposato recently obtained her CPA

license.

Ellin & Tucker, Chartered, a leading regional certified public

accounting and business consulting firm, announced that

Cynthia Taylor, CPA, has been promoted to Manager in the

Audit, Accounting, and Consulting Department of the firm.

She is a key member of the firm’s Not-for-Profit Services

Group. Additionally, Ms. Taylor is responsible for conducting

audits, reviews and compilations of financial statements and

preparing corporate tax returns for privately held companies in

the manufacturing, service and wholesale industries, as well as

employee benefit plans.

Arlene R. Thayer (Ciroula), AAAPM, Chief

Operating Officer of KatzAbosch, has recently

been inducted into Network 2000, a non-profit

organization founded in 1993 with the mission

to promote the advancement of women in professional and

executive positions.

Stegman & Company would like to congratulate Ana Welborn,

CPA. She has been elected to the Firm’s Board of Directors.

Angeline White, CPA, CCA, a Senior Manager at Weyrich,

Cronin & Sorra, Chartered, has qualified as a Certified

Construction Auditor (CCA) and has become a member of the

National Association of Construction Auditors (NACA). Ms.

White has over 20 years of accounting experience in both public

and private industry.

Stegman & Company would like to congratulate Keith N.

Wiessner, CPA, Director of the firm’s Tax Department. He has

been elected to the Firm’s Board of Directors.

MEMBER NOTES

45OCTOBER 2013

After several years working together in a business relationship,

Chesapeake Accounting & Bookkeeping Service, Inc. has

joined the CPA firm of Weyrich, Cronin & Sorra, Chartered

(WC&S). Chesapeake Accounting & Bookkeeping Service, Inc.

has been serving Maryland, Delaware and Pennsylvania for over

30 years and has been voted one of Cecil County’s favorites

for accounting and bookkeeping services several years in a

row. The merger was the next natural step for the firms since

WC&S has been doing work in Cecil County for several years

and performing the tax work for Chesapeake Accounting &

Bookkeeping Service’s clients for the past two years.

CohnReznick LLP’s Baltimore and Bethesda offices have been

honored with the 2013 Alfred P. Sloan Award for Excellence in

Workplace Effectiveness and Flexibility in the Maryland category.

The award recognizes the Firm’s use of flexibility and other

aspects of workplace effectiveness as a workplace strategy to

increase business and employee success. This prestigious award,

part of the national When Work Works project administered by

Families and Work Institute (FWI) and the Society for Human

Resource Management (SHRM), recognizes employers of all

sizes and types in Maryland and across the country.

FIRM NOTES

Bormel, Grice & Huyett, P.A. is proud to announce the presentation of the Bormel, Grice & Huyett Business Scholarship

Awards to Brian Shade and Tempitope Biobaku, both seniors from Mount Hebron High School. The Bormel, Grice & Huyett

Business Scholarship Award is presented annually to area high school seniors for scholastic achievement and interest in

pursuing a business curriculum in college. Past recipients include students from River Hill High School, Laurel High School,

Pallotti High School, Reservoir High School, Hammond High School, Glenelg High School, and Atholton High School.

STATEMENT46

Gross, Mendelsohn & Associates is ranked number 168 on

INSIDE Public Accounting’s “IPA 200,” a list of the largest CPA

firms in the country. Gross, Mendelsohn & Associates was

also named to INSIDE Public Accounting’s “IPA 200 Fastest-

Growing,” a list of the fastest-growing firms in the country.

Gross Mendelsohn is a Baltimore-based CPA and consulting

firm serving the complete financial needs of privately-held

businesses, nonprofit organizations and families in the Mid-

Atlantic region.

Haines & Lagerquist, CPAs, LLC has been selected as one of

the “Top 500 Emerging Businesses in the U.S.” and as one of

the “Top 100 Diversity Owned Businesses in Maryland” for 2013

by DiversityBusiness.com, the nation’s leading multicultural B2B

online website. Located in Bowie and Hyattsville, MD, Haines &

Lagerquist provides creative, analytical and strategic business

guidance to companies in the Washington, D.C. metropolitan

area. The firm’s experienced advisors provide outsourced

CFO services, tax planning and preparation, and bookkeeping

services to companies in a variety of industries.

The American Institute of Certified Public Accountants (AICPA)

has identified Hertzbach & Company, P.A. as one of the 500

largest CPA firms in the United States, out of more than 48,000

firms in the nation. Hertzbach has also been recognized as an

official member of the Group of 400 (G400). Aside from the

100 largest firms in the United States that make up the Major

Firms Group, the AICPA works closely with the G400 which is

comprised of the next 400 largest firms. As a member of the

G400, Hertzbach will be able to collaborate with leaders at the

AICPA and in the profession to share best practices and assist in

getting the best information and services to our clients.

Ryan & Wetmore, PC has partnered with the Junior

Achievement of Central Maryland to support their efforts

in providing the financial curriculum for Maryland students.

Members of the firm will visit middle schools in Frederick

County in the fall and spring as “Content experts.” They will

provide students with information regarding the CPA profession

and answer questions they have both financially and regarding

the profession.

Santos, Postal & Company, P.C., a leading certified public

accounting and business consulting firm, announced that

Thompson & Associates, P.C., Certified Public Accountants,

merged into Santos, Postal. This merger became effective on

August 1, 2013. The merged firm will continue to offer wealth

management and advisory services, as well as traditional tax,

auditing, and accounting services.

The Weyrich, Cronin & Sorra, Chartered and Michael D. Sisk

& Company, PC merger brings together a great combination of

practices. Weyrich, Cronin & Sorra, Certified Public Accountants

& Business Consultants (WC&S) welcomes some new faces to

their Lutherville office. The Michael D. Sisk & Company, PC

joined the CPA firm of WC&S on June 7th. The merger provides

a great combination of practices that are very complementary,

making it a ‘good fit.’

Jeff W. Wilson II, CPA, CFE, AFC, Principal of J. Wilson II, CPA

LLC, has been selected as one of 38 young CPAs to participate

in the American Institute of CPAs 5th annual Leadership

Academy in Durham, N.C. this fall. Mr. Wilson will join rising

stars in the accounting profession from across the country

to learn leadership theory and strategic planning techniques

develop tools for handling complex management challenges

and discuss the most important issues facing CPAs and the

accounting industry.

FIRM NOTES

MEMORIAMPatrick E. “Pat” Kline, CPA, passed away on March

14, 2013. He first worked for Smith Elliott Kearns &

Company in Hagerstown, but later opened his own

accounting firm Kline & Company in 1991.

Paul Naden, CPA, a founding partner of the Hunt

Valley firm Naden/Lean, passed away on July 26,

2013 at the age of 82. Mr. Naden, a CPA and

attorney, worked as a sole practitioner until Gerald

Lean joined the firm as an associate in 1966. They

went into partnership in 1979.

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As we say goodbye to summer and prepare for the coming year,

we welcome our newly inducted 2013-14 NYPN Advisory Board.

Please see the list of member names below. Our Advisory Board

is looking forward to organizing new and exciting events for

NYPN, and planning valuable CPE and volunteer opportunities.

The MACPA Wine Tasting, brought to you by NYPN, was held

on Friday, Aug. 23 in Baltimore. NYPN enjoyed a celebratory

night out at the Ritz. Delicious hors d’oeuvres were provided

by La Fontaine Bleue Catering, wine tastings by Woodhall

Wine Cellars, and of course the breathtaking location by The

Ritz-Carlton Residences, Inner Harbor. Gift card prizes were

won during a networking bingo game and a raffle drawing by

the following individuals: Chimere DeVane, Angeline Huffman,

Jessica Kaufman, Catherine Martin, and Victoria McNair.

Congratulations to our winners! Thank you for all that attended

this special event.

This fall, NYPN will be holding a full committee meeting on Oct.

17. Please plan on attending if you are on the committee or are

interested in learning more about NYPN. E-mail nypn@macpa.

org for details.

Following the meeting, we will hold our fall happy hour in

Timonium at Hightopps Backstage Grille.

Lastly, if you are a newly licensed CPA, don’t miss out on

attending the 2014 Newly Licensed CPAs Swearing-In Ceremony

and Reception to be held on Nov. 4.

Visit the NYPN webpage at MACPA.org/NYPN.

NYPN is also on Facebook, Twitter, and Linkedin.

NYPN NEWS

GROW UP.But not too much.Young CPAs connect at MACPA’sNew Young Professionals Network

macpa.org/NYPN

GET TO KNOW OUR NYPN ADVISORY BOARD AND FIND OUT FIRST-HAND WHAT WE’RE ALL ABOUT:

Chair: Nick Hollander, L&H Business Consulting: [email protected]

Vice chair / chair-elect: Debra Hale, Weil, Akman, Baylin & Coleman, P.A.: [email protected]

Secretary / treasurer: Stephen Hohne, Hertzbach & Company: [email protected]

Past chair: Jeff Klima, SC&H: [email protected]

LEADERSHIP BOARD

Activities / professional development chair: Jennie Hammett, Gorfine, Schiller & Gardyn: [email protected]

Public Relations / outreach chair: Barrett Young, The Green Abacus: [email protected]

At-large member: Kuo Lee, KSL LLC: [email protected]

At-large member: Harry Sturgis, Weyrich, Cronin & Sorra Chtd.: [email protected]

• OCT. 17 – NYPN COMMITTEE MEETING, MACPA Towson Office, 3-5 p.m., Complimentary, register by e-mailing [email protected]

• OCT. 17 – NYPN FALL HAPPY HOUR, Hightopps Backstage Grille, Timonium, 5:30- 8:30 p.m., Compli-mentary to members, register at www.macpa.org

• NOV. 4 – CELEBRATE THE PROFESSION, Newly Licensed CPAs Swearing In Ceremony and Reception, Hilton Baltimore BWI Airport, Linthicum, 5:30 – 9 p.m., Complimentary for newly licensed CPAs/$25 guestsRegister at www.macpa.org

• DEC. 12 – NYPN WINTER HAPPY HOUR, TBD, 5:30 -8:30 p.m., Complimentary to members

• DEC. 19 – NYPN WINTER HAPPY HOUR, TBD, 5:30 -8:30 p.m., Complimentary to members

NYPN is an organization committed to connecting new / young professionals to the MACPA, protecting the integrity of the

profession, and helping new CPAs and CPA candidates achieve their goals. NYPN is a place where new CPA professionals can make

contacts in the profession, get involved in the community and get the support they need to be successful. The requirements to be a

part of NYPN are CPA candidates (working on or having achieved the 150-hour threshold) or current CPAs under the age of 40 and/

or licensed for fewer than five years.

1. Camaraderie 6. Commitment2. Insight 7. Charity3. Professionalism 8. Community4. Development 9. Responsibility5. Growth 10. FUN!

What is NYPN?

Get involved

You’re invited

TOP 10 REASONS TO GET INVOLVED:

49OCTOBER 2013

ANNE ARUNDEL COUNTY

KIMBERLY A. AUGUSTERFER, CPA

FRANCES L. BROWN, CPA

YOUNHEE DAVIS, CPA

GRACE C. HARDY, CPA

BRYAN D. HINES, CPA

RODELO ILAGAN, CPA

FRANCIS X. JAHN IV, CPA

ANGIE D. MARKLEY, CPA

JULIE MUSSOG, CPA

PAMELA A. NEWMAN, CPA

DONNA L. POOLE, CPA

LYNN WILKINSON, CPA

CAPITAL AREA CHAPTER

AFTAB AHMAD, CPA

WILLIAM H. ARNOLD, CPA

DENISE T. BOSSARD, CPA

NIKOLINA T. BOYADZHIEVA, CPA

DAVID N. CARR, CPA

MICHELE A. COLEMAN, CPA

GREGORY CUTAJAR-WYNNE, CPA

MARCO A. FERNANDES JR., CPA

TIMOTHY E. FORCE, CPA

MEHERET GOBEZIE, CPA

KAREN W. JACOBS, CPA

EZRA G. LULANDALA, CPA

RICHARD J. MOORE, CPA

NEETI NARAYANA, CPA

MYLENE L. ORTIZ LUIS, CPA

SHARON PETERS MARTIN, CPA

DR. AMY C. PIERCE, CPA, CFF,

CISA

ELIZABETH A. ROGERS, CPA

DAVID M. SHIFFERT, CPA

SEONGMUK SIM, CPA

WENDY M. STEPHENS, CPA

MARK J. SUMMERS, CPA

MOUYUNG H. SUN, CPA

ZHANG TIAN, CPA

KAREN M. WITCHER, CPA

MIENTOR E. WUOR, CPA

KIMBERLY A. YINGLING, CPA

CENTRAL MARYLAND CHAPTER

SCOTT R. ALLENDER, CPA

JESSICA B. ANDREWS, CPA

RANDALL ANDREWS JR., CPA

JAMES M. ANUSZEWSKI, CPA

ADAM S. ARNOLD, CPA

COLLEEN D. AUBURGER, CPA

STEPHEN M. BISHOP SR, CPA

TRACY L. BLACK, CPA, MBA

AMANDA L. BOSSI, CPA

LYDIA M. BROWN, CPA

JOSEPH J. BRUSAK IV, CPA

SCOTT D. BURTZLAFF, CPA

JUSTIN R. BUSCH, CPA

GEORGE A. CAVELIUS, CPA

MICHAEL CIUFO, CPA

ANTHONY B. CLARK, CPA

STEPHANIE COPPEL, CPA

JACOB A. DEBUS, CPA

LAURA N. DEMMITT, CPA

PRITI R. DESAI, CPA

JOSHUA M. DOWNEY, CPA

JASON FRIEDMAN, CPA

DAVID S. GOLDMAN, CPA

RICHARD GREENWOOD, CPA

SALOMON GRUNHUT, CPA

BRIAN P. HELLMAN, CPA

THOMAS J. HOECK, CPA

RICHARD A. HURST, CPA

YISROEL T. ICKOVITZ, CPA

MICHAEL J. JOHNSON, CPA

BASSEYDOU KAMAGATE, CPA

BONNIE J. KATZ, CPA

CHRISTINE Y. KOSKI, CPA

ANGIENA LABARRIE, CPA, MST

DILAWAR LAKHANI, CPA

ROBERT J. LATTERI, CPA

DONALD E. LAVIN, CPA

PEGGY J. LEE, CPA, MBA

JANE N. LEWIS, CPA

COURTNEY A. MOORE, CPA

RUSSELL D. MOORE, CPA

TYSHEBA L. MORGAN, CPA

THOMAS J. MURPHY, CPA, MBA

NICHOLAS A. MYERS, CPA

OLUBUNMI O. OLARINDE, CPA

SETH D. RABINOVITZ, CPA

PAULA M. RAYNOR, CPA

ARCHIE B. REED, CPA

STEPHEN E. ROPELEWSKI, CPA

LAUREN E. ROSE, CPA

DAVID A. SACK, CPA

DAVID SERENO, CPA

RONALD C. SEUFERT, CPA, MS FINANCE

ANDREW T. SHOBE, CPA

BRUCE W. SIXX, CPA

KATIE E. SKUFIS, CPA

OUMOU SOW, CPA

ANITA A. TAYLOR, CPA

ANDREW J. TOMASCHKO, CPA

MEGHAN N. TROVATO, CPA

TIMOTHY J. TURNER, CPA

CHRISTOPHER VAZIRI, CPA

SHEENA-KAMOUY A. VICKERS, CPA

SUSAN P. WEAVER, CPA

SAMUEL J. WEILAND, CPA

DONALD WEINAPPLE, MBA, CPA

LILI ZHANG, CPA

ROBIN E. ZIMMERMAN, CPA

EASTERN SHORE

JORDAN ADAMS, CPA

ALICIA E. BACCHI, CPA

BARBARA A. FAULKNER, CPA, MBA

THOMAS P. HEALEY, CPA

VIRGINIA L. KILMON, CPA

DANIELLE L. PRINCE, CPA

MID-MARYLAND CHAPTER

NANCY C. GIUFFREDA, CPA

CATHERINE M. NAZARENE, CPA

KERY SWOPE, CPA

JOANNE D. WILLIAMS, CPA

SOUTHERN MARYLAND

CATHRYN A. FRERE, CPA

AMY L. MCALLUM, CPA

JEFF W. WILSON II, CPA, CFE, AFC

CLINT ATHEY, CPA

CHRISTOPHER C. POWELL, CPA

RONALD G. REED, CPA

DALE R. SHADEL, CPA

OUT OF STATE

JONATHAN R. BARTON, CPA

ANNE-MARIE P. BRIZENDINE, CPA

LISA A. JORGENSEN, CPA

JENNIFER SCHMITT, CPA

ANTHONY B. SCOLA, CPA

JAMES B. SELLS, CPA

KRISTIE A. STRUBECK, CPA, CRPC

JOSEPH M. WALLACE, CPA

LAWRENCE W. WINFIELD, CPA

ANNE ARUNDEL COUNTY

GEOFFREY D. BREWSTER

SUSAN E. BROWN

REBECCA A. CHAUZA

MICHAEL FIELDS

ASHLEY J. GUESS

DUSTIE HORN

ANDREW W. MARTIN

MARK PERRY

MATTIE E. RILEY

CAPITAL AREA CHAPTER

CHRISTOPHER S. BAKER

COMORA D. BROCK

WESLEY A. CALL

LILY CHENG

GEORGE E. DELGADO

ROBERTO DIAZ

CARLY MAY A. GERONIMO

SUSMITA GHIMIRE

STEPHEN A. KINCAID

CASEY KOVAL

IRMA M. OKE

ZACHARIAS A. PITZER

JASPREET RAGHU

ARPITH RAO

RACHEL ROBARGE

CENTRAL MARYLAND CHAPTER

WILLIAM F. ANDERSON, MBA

WILLIAM BOYD

ELIE I. CALM

CHAUNTIA S. CARROLL

ERIN CHARLES

TORIE COLE

JON M. COONAN

LOUIS H. COXE

CHRISTOPHER D. DOW

ALETHEA FRANKLIN

ANGELA L. GETTIER, EA

JONATHAN GILL

MARIA V. GOMOZOVA

DAVID A. HERRON

JESSICA V. HUGHES

JOSHUA S. HYMAN

KELLY IRWIN

ELIZABETH B. JOHNSON

THAO M. KHUU

ELIEZER KIFFEL

JACEN P. KILLEBREW

ALEXANDER KIMTIS

ANDREW R. KINSEY

LISA M. KLEINWORT

JOSEPH R. KOEHLER

SUGAN KOIRALA

PHILLIP E. LARRABEE

KIM M. LEWIS

DEBORAH MELTON

ADAM F. MILOSZ

LOGAN J. MONACO

OTYLIA E. MOORE

SHATERRA M. NEELY

WILLIE J. PASS III, MS, MBA

KRISHNA PATEL

PARINA PATEL

AMY J. PRICE

JONATHAN RADA

ANGELA M. RICHARDSON

JASON RINAUDO

ERIC R. RUSSELL

MATTHEW A. SMILER

PEGGY SPIOCH

CHRISTIE E. STRUCKO

SEAN R. SWEENEY

DEBORAH L. WALLACE

MARC K. WALSCH

EASTERN SHORE

MATTHEW CHANCE

MAME N. DIAW

MIRANDA O’NEAL

IRINA O. SPIRINA

MID-MARYLAND

ABOUBACAR BAH

MATTHEW M. BROCKWAY

JONATHAN A. EMMELL

TRINA L. TANSEY

SOUTHERN MARYLAND

YUWEI LIU

WESTERN MARYLAND

JONATHAN HINER

DALLAS OUELLETTE

MARISSA L.

THOMAS-KLING

OUT OF STATE

REBECCA A. BROWN

MAURICE JONES JR.

WAYTU LO

JIYOUN PARK

GLEN R. PEAK

MICHAEL C. WINTER

KYLE D. WOLFER

JEAN XIE

WELCOME, NEW & REINSTATED MACPA MEMBERS!

WELCOME, NEW CPA CANDIDATE MEMBERS!

MEMBER SERVICES

STATEMENT50

QUALITY CPA FIRM WISHES TO ACQUIRE PRACTICE OR ACCOUNTS in Baltimore/Washington/

Annapolis area, or possible association with retirement-minded

practitioner. “Top Dollar Paid.” Reply in strictest confidence to

410.539.7100, or File No. 63-87.

STEELEY & ASSOCIATES is a diversified service

provider operating in the Maryland and DC areas. We seek to

offer succession and continuity solutions by partnering with

retirement-minded CPAs. Transitions of 1-5 years are preferred,

though immediate or longer time frames will be considered. If

you are a CPA considering retirement, or simply transitioning to

other lines of work, please call (301) 263-8519, or email

[email protected]. All conversations will be kept confidential.

MARYLAND PRACTICE FOR SALE: Towson

Audit, Tax & Accounting Practice - annual gross $250K. Well-

established practice, located in a prime area with good cash flow

to owner. For more information call 1-800-397-0249. Also, view

listings, inquire for details and register for free email updates at

www.AccountingPracticeSales.com.

THINKING OF SELLING YOUR PRACTICE? Accounting Practice Sales is the leading marketer of tax and

accounting practices in North America. We have a large pool

of buyers, both individuals and firms, looking for practices to

purchase. We also have the experience to help you find the

right fit for your firm, negotiate the best price and terms and

get the deal done. We welcome the opportunity to talk to

you about our risk-free and confidential services. For more

information please call Bradley Holmes with the APS Holmes

Group at 1-800-397-0249 or email [email protected].

office space

EXECUTIVE OFFICE SPACE AVAILABLE with multiple amenities and free parking. Our business

center provides a professional environment, features well-

appointed reception areas, offices and conference facilities.

Enhanced communication and administrative support services

are also available. For terms and availability, please call us at

301.263.8519 or e-mail [email protected]. Location

zip is 20817.

mergers & acquisitionsPRIME OFFICE SUITES AT CITY DOCK, ANNAPOLIS: Come see the only office building

available at city dock in downtown Annapolis. This building

has 4 stories and over 7,000 square feet of office space for

you to configure anyway you want!!! Located in the heart of

Annapolis’ city dock, enjoy meeting friends and walking to the

many restaurants, bars and shops after work. Offices range in

size from 80 - 364sf and come furnished with desk and chairs,

high speed Internet service, mailbox, use of conference room.

Some offices have spectacular views of the market house and

city dock!!! Whole or half floors are available now. Offices can

be combined to include reception areas, copier rooms, etc.

while ensuring for complete privacy. Perfect for a law office,

architect, accountant, marine business or anyone who wants to

impress their clients!!!. You have to see the space for yourself

to appreciate its location and potential.

Please call Cindy Reiner at (410) 849-2667, or Janis Rotner

(410) 849-2444 for a showing.

LOOKING FOR TAX ACCOUNTANT, during

tax season, for a family business in Baltimore. Contact

[email protected] for more information.

TAX PROFESSIONAL FOR BUSY SEASON Kenneally & Company, a progressive, medium-size, Towson

CPA firm of highly motivated professionals, seeks like-minded

individuals capable of individual and/or business tax return

preparation. Familiarity with ProSystem fx is a plus. Flexible

hours, incentive compensation and a pleasant working

environment are just a few of our benefits. Forward your

resume via e-mail to [email protected], or via fax

(410) 321-9809.

TAX SENIOR: SC&H Tax & Advisory Services is seeking

experienced Senior Tax professionals for significant, growth-

oriented career opportunities in Sparks, MD and McLean,

VA locations. As a Tax Senior with SC&H you will provide

compliance and consulting services to our middle market

and publicly traded clients. We seek individuals familiar with

the tax compliance process, the ability to understand and

identify a broad range of general tax issues, preparation of

complex tax returns, forming opinions on outcomes of tax

issues, strong work paper techniques and the professionalism

necessary to effective communicate with clients, peers and

CLASSIFIEDS

job openings


MEMBER SERVICES

51OCTOBER 2013

CLASSIFIEDS

STATEMENT52

SC&H professionals at all levels.

You’ll have the opportunity to develop and pursue creative

strategies while using the latest technologies. Your primary

responsibilities include tax planning, compliance and research

projects for SC&H’s clients.

Qualified candidates will have:

-Bachelor’s degree in Accounting, Finance or other business

related field.

-2 or more years of public accounting experience (Big 4, national

or large regional firm experience preferred).

-Excellent Research, Writing and Interpersonal skills.

SC&H Group is a management consulting firm with more than

20 years experience advising leading companies on accounting,

tax, profitability and strategy solutions that deliver exceptional

business results. SC&H has been named among the Top 100

firms by Accounting Today and Inside Public Accounting, has

appeared on the “Future 50” list of Smart CEO magazine, has

been a multi-year award winner of the “Best Places to Work”

by the Baltimore Business Journal, and has been named one

of the “Best of the Best CPA Firms.” With approximately 300

employees, SC&H has offices in Maryland, Virginia and Georgia,

and provide services throughout the United States.

At SC&H we attract, hire, and retain the most results-oriented

goal-driven professionals, and offer outstanding salary and

benefit packages which include outstanding bonus opportunities,

(ESOP) employee stock ownership plan, 401K, and firm

sponsored vacations. Take the first step in joining our firm by

applying on line www.scandh.com

An EOE

TAX MANAGER: SC&H Tax & Advisory Services is

searching for a Tax Manager with a strong tax compliance and

consulting background to work in our Sparks, MD headquarters.

The Tax Manager serves as the focal point of contact between

our firm and our middle market clients. He/ she will lead

tax engagement teams on various projects, handle all tax

compliance and consulting issues for assigned clients, keep

clients abreast of technical tax changes affecting their industry,

identify opportunities to cross-sell, look for opportunities to

expand tax services, cultivate and maintain effective relationships

with audit counterparts on mutual audit/tax engagements and

will mentor, train and assist senior and staff associates.

Qualified candidates will have the following:

-Bachelors degree in Accounting, Finance or other business

related field, Masters in Tax and CPA

-A minimum of 5 yrs public accounting experience preparing

and reviewing tax returns and advising companies on their tax

strategy

-Significant experience with pass through entities, Partnerships

etc.

-Previous Big 4/ National or Regional firm experience

performing tax compliance, research and consulting

-Excellent research, writing and interpersonal skills

SC&H Group is a management consulting firm with more

than 20 years experience advising leading companies on

accounting, tax, profitability and strategy solutions that

deliver exceptional business results. SC&H has been named

among the Top 100 firms by Accounting Today and Inside

Public Accounting, has appeared on the “Future 50” list of

Smart CEO magazine, has been a multi-year award winner

of the “Best Places to Work” by the Baltimore Business

Journal, and has been named one of the “Best of the Best

CPA Firms.” With approximately 300 employees, SC&H has

offices in Maryland, Virginia and Georgia, and provide services

throughout the United States.


goal-driven professionals, and offer outstanding salary

and benefit packages which include outstanding bonus

opportunities, (ESOP) employee stock ownership plan, 401K,

and firm sponsored vacations. Take the first step in joining our

firm by applying on line www.scandh.com

An EOE

AUDIT SENIOR: SC&H Group is currently searching for

a Senior Auditor to join our growing team in our Sparks, MD

headquarters. As a part of our team you will:

* Provide clients with accounting, audit and business

consulting services

* Maintain a strong client focus by effectively serving client

needs and developing productive working relationships with

client personnel

* Stay abreast of new accounting pronouncements/standards,

current business and economic developments and/or other

guidance relevant to the client’s business

WANT TO SUBMIT A CLASSIFIED AD?To submit a classified ad, please visit macpa.org/submitclassifieds, or contact Amy Moran at 443.632.2319, or by email [email protected].

CONFIDENTIAL ADS: Replies to confidential ads will be addressed to the file number in care of:Amy Moran MACPA901 Dulaney Valley Road, Suite 710Towson, MD 21204

CLASSIFIEDS

53OCTOBER 2013

* Display teamwork, integrity, leadership, initiative and work

with team members to set goals and responsibilities for specific

engagements

* Take intelligent risks on assignments without being told what

to do or the need for detailed guidance

* Utilize technology and data analytics to continually learn, share

knowledge with team members and enhance service delivery

* Understand SC&H and its service lines and actively encourage

team members to contribute ideas and identify potential

opportunities to apply SC&H services

Requirements:

* Bachelor’s degree in Accounting or Finance, with a minimum

GPA of 3.2

* 2-4 years previous Audit experience working for another

Public Accounting firm (Big 4, National or large regional public

accounting firm experience preferred).

* CPA (or working toward designation) is required

* Proficiency in Microsoft Office Suite

SC&H Group is a management consulting firm with more than

20 years experience advising leading companies on accounting,

tax, profitability and strategy solutions that deliver exceptional

business results. SC&H has been named among the Top 100

firms by Accounting Today and Inside Public Accounting, has

appeared on the “Future 50” list of Smart CEO magazine, has

been a multi-year award winner of the “Best Places to Work”

by the Baltimore Business Journal, and has been named one

of the “Best of the Best CPA Firms.” With approximately 300

employees, SC&H has offices in Maryland, Virginia and Georgia,

and provide services throughout the United States.


goal-driven professionals, and offer outstanding salary and

benefit packages which include : Team Profit Sharing Bonuses,

(ESOP) employee stock ownership plan, 401K, and firm

sponsored vacations. Take the first step in joining our firm by

applying on line www.scandh.com

An EOE

MARYLAND CASA SEEKS CPA FOR BOARD OF DIRECTORS: Maryland CASA (Court Appointed

Special Advocates) Association, a statewide nonprofit

organization dedicated to ensuring the rights of abused and

neglected children to live in safe and permanent homes, is

seeking a CPA to join its Board of Directors. This is a volunteer

position that involves approximately four hours per month,

attendance at meetings and events, and other responsibilities.

Preferred candidates will be knowledgeable about nonprofit

accounting, committed to the organization’s mission and

willing to assist the organization in meeting its financial and

programmatic goals. For more information, please contact

Ed Kilcullen, State Director, at [email protected].

SQUIRE, LEMKIN + COMPANY, LLP’S IS LOOKING FOR AN AUDIT SENIOR. Our staff

rates our medium-sized CPA firm as a great place to work! Our

firm culture is designed to encourage our staff to learn, grow

and assume responsibility. We emphasize a balance between

personal and professional life. And we have an audit senior

position available! Play a leadership role in our growing audit

practice, train and mentor our staff, and contribute to our team-

oriented approach to the high quality work we do. Conveniently

located in Bethesda/Rockville area, we provide audit, review

and tax services to high quality non-profit clients throughout

the Washington DC metropolitan area. Seeking a professional

with 3 – 5 years of non-profit audit experience, CPA preferred.

Competitive salary, comprehensive benefits, and collegial

working environment. To submit your resume visit www.

[email protected].

SQUIRE, LEMKIN + COMPANY, LLP’S IS LOOKING FOR A TAX SENIOR. Our staff rate

our medium-sized CPA firms as a great place to work! Our

firm culture is designed to encourage our staff to learn, grow

and assume responsibility. We emphasize a balance between

personal and professional life. And we have a tax senior

position available! Play a leadership role in our growing tax

practice, train and mentor our staff, and contribute to our team-

oriented approach to the high quality work we do. Conveniently

located in Bethesda/Rockville area, we provide audit, review and

tax services to high quality clients throughout the Washington

DC metropolitan area. Seeking a professional with 3 – 5 years

of tax experience. Competitive salary, comprehensive benefits,

and collegial working environment. To submit your resume visit

[email protected].

MARYLAND ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTSDulaney Center II | 901 Dulaney Valley Road, Suite 710Towson, MD 21204 | www.macpa.org410. 296.6250 | Fax: 410.296.8713

T H E B I G E V E N T S F O R C P A SConnecting, protecting, & achieving start here.

2014

Promoting and Protecting CPAs in Maryland 1/15/14


CPA SWEARING IN CEREMONY

11/4/13

macpa.org/celebration

macpa.org/summit

macpa.org/cpaday

The CPA Event of the year.6/16/14

INNOVATION SUMMIT

3

macpa statement // october 2013

Documents

values arent

statementmacpas health

health care reformrjp

strategic benefits

n v e s t

e n t smember fdic

n s u r

effective benefits programs