To our colleagues,

Welcome to 2014. Let’s hope it is a year of great accomplishments for you with peace and good health. We had a great all day CPE conference in June and Power Breakfast in November with Jim Bourke. We are now getting ready for tax season.

I am very excited [I am always excited about what we do to help our colleagues in smaller practices] about this year’s WS+B Partners’ Network Pre-Tax Season CPE Program. My opening Managing Your Tax Season presentation will have two hours of all new, never before presented material. Not one sentence will be a repeat. I want to WOW! you and will do it with no repetition, interactive segments, new, never before posted checklists and some big surprises. Don’t miss this! There will be many ideas you should be able to adopt immediately.

Peter, Frank and I know most of the people that will be attending, and we work very hard to present information you won’t get elsewhere. We have been presenting the Pre-Tax Season Program since 1989 and intend to keep doing it so you’ll want to keep returning. We are working hard for you and enjoy every minute of it, so come and take advantage of what we have to offer and allow yourself to benefit from it.

The fact that the 5 hour program is free for PN members entices you to keep coming back, but we know that if you didn’t feel it was worth your time, you wouldn’t be coming. The last few years we had over 125 people attend and are glad to be able to present it for our fellow practitioners. In accordance with our policy, PN members can also bring a guest also at no charge.

Peter’s IRS update is one of our most popular programs, and because of his activity as one of the tax leaders in our firm and in the NJSCPA, his meetings with IRS officials and attendance at AICPA national conferences, he is on the cusp of what’s happening, and he willingly shares it. Brian Lovett will present up-to-the-moment technical tax issues that you will need to know for tax season and that we don’t think you will hear elsewhere. Barry Horowitz and John Daly, our SALT (state and local tax) specialists will present an hour NJ, NY and PA update. We get beat up every year because we don’t let them speak more than 25 minutes, so we responded by putting them down for a full hour presentation.

We want this CPE program to be after the normal business day and five hours is the most we can put into it and still get you home at a reasonable hour. Be sure to sign up today for this valuable Pre-Tax Season CPE program on February 3rd.

The handout will be posted on line and provided on a stick drive and will be valuable reference source you can refer to in the future.

Cordially,

Edward MendlowitzPresident

Heather Suddoth Development Manager

P.S. We perform many services for CPAs including peer and quality reviews, business valuations and forensic services, and audits that you may not be in a position to perform. Please keep us in mind when you are in need of these services. We can also lend a hand to controllers who need assistance on special projects including tax basis conversions to GAAP, tax return preparation and state tax compliance issues.

WithumSmith+Brown, PC

DECEMBER 2013

WITHUMSMITH+BROWN, PCONE SPRING STREETNEW BRUNSWICK, NJ 08901P. 732.828.1614F. 732.828.5156

Contact:Ed Mendlowitzemendlowitz@withum.com

Heather Suddothhsuddoth@withum.com

WithumSmith+Brown, PC Certified Public Accountants and Consultants

w i t h u m . c o m New Jersey. New York. Pennsylvania. Maryland. Florida. Colorado

WithumSmith+Brown,PC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. For information regarding refund, complaint, and program cancellation policies, please contact Heather Suddoth at hsuddoth@withum.com.

Program Level: Intermediate Prerequisites: Must be a CPA in own practice or a Partner/Manager in a firm Advanced Preparation: None Delivery Method: Group-Live

Get Ed’s opinions that are provided to clients on issues they are concerned with. Blog posted twice a week. Visit www.partners-network.com. Log in and sign up for automatic delivery of new postings. After you sign up, you will need to respond to an email to activate the delivery.

Get Frank’s opinions on events affecting hedge funds, mutual funds, broker-dealers and registered investment advisors. Blog posted weekly. Visit www.frankandtothepoint.com. Log in and sign up for automatic delivery of new postings. After you sign up, you will need to respond to an email to activate the delivery.

PARTNERS’ NETWORK ANNUAL PRE-TAX SEASON CPE

MONDAY, FEBRUARY 3, 20145PM TO 9:50PM THE PALACE AT SOMERSET PARK 333 DAVIDSON AVENUESOMERSET, NJ 08873

Free for Partners’ Network members. $145 for nonmembers. Purchase conference materials (if you cannot attend) $40. RSVP to Heather Suddoth 732.828.1614 or hsuddoth@withum.com.

5:00–5:20PM Networking dinner

5:20–7:00PM Managing Your Tax Season Ed will provide updated information on how to better service clients with greater skill, more fun and increased revenues. This program will contain all new and never before discussed material with audience interaction. Speaker: Ed Mendlowitz, CPA, author of the AICPA book: Managing Your Tax Season, Second Edition which is available at www.cpa2biz.com.

7:00–7:20PM Networking break

7:20–8:10PM Peter Weitsen’s IRS UpdateThis is an annual treat with the most recent IRS news and procedures and how they affect your clients. Speaker: Peter A. Weitsen, CPA

8:10–9:00PM State Tax Update What’s new with New Jersey, New York and Pennsylvania taxes by our Firm’s State Tax Specialists. Speakers: Barry Horowitz, CPA & John Daly, MST

9:00–9:50PM Tax Changes & Traps When Preparing Returns This provides up-to-the-minute insights in the tax law changes and highlights of the issues that tend to be overlooked. Speaker: Brian Lovett, CPA, JD

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JOHN MORTENSON IS THE PARTNER-IN-CHARGE OF THE NEW BRUNSWICK, NJ OFFICE AND AS YOU WILL SEE, STARTED HIS CAREER WITH WS+B. THIS INTERVIEW SHARES SOME INSIGHTS INTO HIS CAREER AND ABOUT OUR FIRM.

WHEN DID YOU START WITH WITHUMSMITH+BROWN? I started with WS+B on October 1st in 1985. I looked into Withum on the recommendation of my father – he was a partner in a firm that viewed Withum as a reputable choice. My interview was conducted with Fred Withum, one of the founders of the Firm, and then a follow up interview with Bill Hagaman, our Firm’s current Managing Partner (“MP”) and CEO. It was a big deal for Bill at the time - he’d just become partner at the age of 28. Hiring me was one of the first decisions he made as a new partner. I was offered a position and took it based on the fact that the chemistry was right and it was a Firm I could grow with. I still tell him today that his first decision was the best decision he ever made.

IN 2010 YOU TRANSITIONED FROM A PARTNER IN THE NEW BRUNSWICK OFFICE TO THE PARTNER-IN-CHARGE (“PIC”) OF THE NEW BRUNSWICK OFFICE. HOW DID YOU MAKE THE TRANSITION TO PIC? For over 15 years I made decisions alongside Bill [Hagaman, PIC of the New Brunswick office prior to becoming MP]. Bill always had the final say, but he valued my input, and most of the time, it was my thoughts that helped him make his decisions relating to the office. One of the biggest elements of the transition is that the decisions I make impact all of the staff and their futures. It’s a lot of pressure to understand that decisions I make have a direct impact on so many peoples’ careers, lives and families and that my office is trusting me with their futures. I still reach out to Bill at times as a soundboard for my thoughts and he is also not afraid to share his thoughts when appropriate.

AS PIC, HOW DO YOU MANAGE YOUR DAYS AND WEEKS TO ENSURE THAT YOU HIT YOUR CLIENT GOALS AS WELL AS YOUR OFFICE GOALS? I realized later rather than sooner that I needed to transition a lot of my clients to other partners so that I could have more time to dedicate to the office and my other responsibilities on a Firm level. What has helped me in this transition is that we have great staff; and I have strong engagement teams that allow me to limit my interactions with clients to just the important issues. I think this is a key to good client service – delegating responsibility to other team members and having a strong engagement team who excels at what they do. When you find staff willing to step up, you push them to assume a greater role with the client which allows you to focus on the key decisions. Ultimately, I schedule my office work around my clients.

WHAT DO YOU VIEW TO BE THE BIGGEST CHALLENGE OF BEING THE PIC OF AN OFFICE OF ROUGHLY 100 PEOPLE? It is a huge challenge managing the opinions of all the people in the office. We have always valued the input of everyone. Usually the staff, who are in the trenches, are the best people to get the facts you need to make decisions. Unfortunately, with 100 staff you usually will get 50 different points of view and no real consensus. Ultimately, I have to make sure that when I make a decision, put a process into place, introduce new software, etc. I get everyone’s thoughts first. Once something is implemented, I need to make sure I get everyone on the same page, and hopefully they understand the benefits of why we do things certain ways. Our motto is that everyone has input into the decision making process, but regardless of whether you agree or disagree with the final outcome, you get on board and move forward.

AS A FATHER, HOW DO YOU MAKE TIME FOR YOUR FAMILY WITH SUCH A BUSY AND DEMANDING SCHEDULE THAT REVOLVES AROUND CLIENTS, THE OFFICE, YOUR NICHE PRACTICE, FIRM COMMITTEES AND BOARDS THAT YOU SIT ON? One of the many pieces of our Firm’s culture is embracing the family spirit and making sure there is a work/life balance. For me personally, I spend time with my family in the morning before I go to work. I have coffee with my wife and also play some sort of short game with my son before I leave the house. At night, after my son goes to bed, I’ll work. And at times, for things that don’t need to be completed during the regular 9-5 work day, I’ll sit next to my wife on the couch while she’s watching a show and work on my laptop. The paper-free/cloud based work environment enables everyone in the Firm to work at any hour while at home or at any location away from the office that has internet access.

JOHN MORTENSON CPA, PARTNER

INTERVIEW WITH

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THE NB OFFICE HIRES A LARGE NUMBER OF ENTRY LEVEL PEOPLE AND ALSO USES ABOUT 7 OR 8 INTERNS A YEAR -WHY? WHY NOT HIRE EXPERIENCED PEOPLE? Hiring experienced staff can sometimes solve short-term staffing problems. However, my opinion is that hiring decisions should really be made with a long-term goal in mind, and I am a firm believer that the best way to find tomorrow’s true leaders is to hire staff directly out of school. Finding top talent is very competitive and giving interns a firsthand look at the Firm’s culture can often be the difference to attracting the very best staff. All firms do everything they can to hold on to top staff; and the best chance to find tomorrow’s partners is to hire those who are fresh to the business world. The downside to this is that they come in without having any other work experience to compare the Firm’s culture to, so sometimes the question of, “whether the grass is greener on the other side” comes up. However, the upside is that we get to train them, mold them, and shape them to be the people we want working for Withum..

IN YOUR OPINION, WHY IS IT IMPORTANT TO SUPPORT THE PARTNERS’ NETWORK? It’s proven to be a valuable resource for business for both us and the members of the Partners’ Network. We’re a firm of over 450 - with that comes a lot of business contacts and work that we sometimes are not the best fit for the client. Partners’ Network allows us to refer opportunities to people who we know will bring the level of client service we would expect to give. Just the same, we’ve been referred business from Partners’ Network members when they are unable to perform certain services as well. I also think the Partners’ Network is a valuable resource in brand and name recognition. By working with smaller accounting firms and making sure their experience is a good one, they’re apt to talk about us in a positive manner which builds our brand awareness and reputation.

WHAT TYPE OF ADVICE WOULD YOU GIVE TO A YOUNG PARTNER WHO IS LOOKING TO BUILD A BOOK OF BUSINESS? To start, business development takes a long time, so you cannot be frustrated by the lack of results early on in your career. A few general tips I’ve learned over the years: Spend time in an area you enjoy and focus on that; start networking the day your join a firm (although passing the CPA exam should be a priority over everything else); networking can be done during normal business hours –coffee, lunch, dinner; meet with people whose stage in their career is similar to yours as one day they’ll be in a position to refer work to you and vice-versa.

WHAT IS YOUR FAVORITE PART OF YOUR JOB? WHY STAY WITH ACCOUNTING? What I like most about what I do is that it’s something different every day. Each client is different, and their service needs and issues are different as well. I also enjoy the ability to work with a variety of people – both internally and externally. On an internal level, I enjoy being able to work with those in my office as it helps me get to know them on a personal level, and this helps weigh in on my management decisions within the office. On an external level, I appreciate the ability to work on clients in different industries as well as the various levels of staff and management within these companies. I have been with the firm for almost 30 years, and my job duties and responsibilities have changed every year. In many other professions, you do the same tasks day-after-day and year-after-year.

WHEN YOU ESCAPE THE CORPORATE WORLD, WHAT DO YOU FILL YOUR “ME TIME” WITH - HOBBIES, INTERESTS, COMMUNITY INVOLVEMENT?Spending time with my family is at the top of my list. Whether it’s at home after work or going on vacation at my beach house, they’re priority for me. I also enjoy golfing and even mix business with pleasure at times – golf is one of the best places to build a relationship. You’re on the course for more than four hours, and most of that time is building the personal relationship as usually you only talk business for about a half hour. It’s also a great activity that you can play your whole life and play with people of all skill levels but still be on par with your own game. I took my seven year old out last week, and even though it was only his second time playing and I was teaching him the whole time, I still played pretty well. I get to spend quality time with my family and do an activity I love, so it’s the best of both worlds. I am also heavily involved with and hold a Board position for Embrace Kids Foundation. I’ve immersed myself in the organization for over 10 years as I truly believe they are doing great things and stick with it because of my personal attachment to their mission.

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THINKING ABOUT TAX ISSUES THAT CAME UP IN RECENT MONTHS, IT BECAME OBVIOUS TO ME THAT IT IS IMPOSSIBLE TO PRACTICE EFFECTIVELY IN THIS BUSINESS WITHOUT COLLABORATION. THE THESAURUS LISTED SOME SYNONYMS FOR COLLABORATION, INCLUDING TEAMWORK, PARTNERSHIP, COOPERATION, GROUP EFFORT, ASSOCIATION AND ALLIANCE. ALL OF THESE WORDS COULD BE APPLIED TO THE RAISON D’ETRE FOR THE PARTNERS’ NETWORK.

A C corporation in NYC entered into an agreement to sell the air rights of a hotel property for about eight million dollars. At first glance, it looked like

there could be a huge gain on the sale in the amount of the entire net proceeds. Although there was a possibility of deferring the taxable gain via a Section 1031 exchange, it turned out the replacement property suggested by the client would not qualify. I needed to find another way to help the client minimize the tax impact of the transaction. Voila – Along came Ruben Cardona.

(CONTINUED ON PAGE 5)

I occasionally receive, “I saw this, and I thought of you!” emails or mailings containing articles or education opportunities from friends and colleagues. I must say, I really enjoy receiving them; it makes me feel that the person sharing the information sincerely cares about our relationship. Imagine how a client will feel when they read or hear that same message from you? It is human nature to want to feel appreciated, understood and valued, and “thought of you” messages can go a long way in helping maintain a personal relationship with your clients. Here are a few things you can easily share:

10 WAYS TO SHARE WITH CLIENTS

William R. Hagaman, Jr.Managing Partner, CEO

An article you just read that pertains to a client’s industry

Send reprints of articles written by or about your firm or your people

A heads-up to potential changes in tax laws, banking regulations, HR issues, medical and health issues, and how these

and other changes could affect their business. This can easily be done with electronic Tax Tips and alerts you receive.

When you forward the info, attach a note underscoring its importance

Send a seminar or presentation handout, or book that you feel would be of interest to them and their business

Articles related to marketing, sales, social media, advertising or public relations that can help clients with developing

new business

It is always good to cross-sell to clients - I like to call it, cross-solving. Take advantage of your talent pool and the deep

expertise within your firm by letting clients know about it

An introduction to someone or a company that you think will help improve their business or operations

Public information, not gossip, about similar companies within their industry. Even if they already know about it, it will

be viewed as a positive that you are keeping them in mind

Use an idea or approach from a different industry to see if it can be applied to a client’s business

An article about your client’s personal hobby or interest. Don’t know what your client does in his or her spare time?

Then go find out! People work with people they like109

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Ruben has been a mentor to me (and many others at WS+B) since I arrived here (actually even before that as Ed, Frank and I were contemplating our merger). If you know Ruben, he has a very, shall we say, “creative mind”, especially when dealing with real estate issues. He told me to hold on so he could gander in his paper version of the WG&L treatise on the taxation of real estate transactions. Ruben already had the idea that the air rights could be valued retroactively via an appraisal and a cost segregation study. He called his contacts at a law firm and a cost-seg. firm, and we were on our way. We had found a way to apply tax basis against the proceeds and thereby considerably reduce the federal, state and city tax.

Recently, I was working on a foreign transaction that involved a controlled foreign corporation, which potentially had subpart F income. This type of income, even though totally earned abroad by a foreign entity, could be taxable to a U.S. person who controlled the foreign entity. I was fortunate to enlist the services of Dave Springsteen, who is the head tax partner at WS+B. Dave has vast experience in the international tax arena, and he represents WS+B with HLB International, our world-wide affiliate. He led me exactly along the right path, and I was able to more fully grasp the situation, leading to more favorable results for the client.

A few months ago, I was working on a New York residency exam with an unusual set of circumstances involving a business office that operated from an apartment in a residential building. I linked up with Barry Horowitz, who is the head of our State and Local Tax Group. With Barry’s vast experience on residency issues and his considerable fighting skills, we double-teamed the NYS auditor, supervisor and unit head. The exam ended up with a terrific settlement for the client.

Likewise, over the years, Ed, Frank, Ron Bleich and others have helped me many times with perplexing tax situations. We are not alone, but we need to reach out for help. It’s easy with the great people at WS+B and can be just as easy for Partners’ Network members when they call us.

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PETER’S TAX ISSUES (CONTINUED FROM PAGE 5)

The act of sharing as a regular ‘best practice’ in your daily communications will go a long way in building your professional

relationships. They are also points of contact. Take the time to send something today!

WS+B NOVEL MARKETING ACTIVITES UPDATE

We are using this space to provide some ideas of what we are doing that shows some novel approaches to marketing. We believe every firm can do something unusual that would work. If anyone in the Partners’ Network wants to reach out to us, we would be glad to discuss with you what you are planning. Call me, Ed or Heather, and if we can’t help, we will put you in touch with someone who can. WithumSmith+Brown’s Marketing Team is all about ‘brand awareness’ these days, trying out different modes of advertising to reach new audiences. Rhonda Maraziti

Director of Marketing

RADIO - The Firm is currently running 60 second radio ads on Bloomberg 1130 AM and CBS News 880, which include one culture spotlight encouraging the business world to “Experience the Withum Way,” and five “Withum’s Word to the Wise” industry spotlights on International, Technology, Financial Services, Real Estate and Healthcare Reform. The radio ads are running at various times throughout the day, seven days a week. This is Withum’s first go-around with radio, and we have been enjoying the positive feedback from clients, staff and friends.

OUTDOOR ADVERTISING - Not only are we on air, but we are also on the streets… the streets of NYC, that is! There are 55 phone kiosk ads displayed primarily around the Penn Station, Grand Central Station and Madison Avenue areas. We have encouraged our staff and friends of the Firm to send us a #selfie (that’s a photo of yourself) standing next to the kiosk ad, which we’ve posted to Withum’s Facebook page. The Marketing Team has been having a lot of fun with that. The kiosk ads reflect a photo of our esteemed Managing Partner and CEO, Bill Hagaman, holding a pair of Withum blue gloves and sunglasses, a subtle nod to our incredibly popular videos which are posted to our website and YouTube.com.

OUR NEXT VIDEO - Speaking of which, it’s that time of year again… WS+B’s Mad Marketing Minds are feverishly planning the next WithumSmith+Brown State of the Firm opening video! Expect this year’s to be very different than the last three. Additionally, there is a very special social media component tied to the master plan, with the hopes of spreading the fun and excitement throughout the year, as 2014 marks the 40th Anniversary of the Firm. Stay tuned for more!

NJBIZ CFO OF THE YEAR - WithumSmith+Brown has been the Presenting Sponsor of the NJBIZ CFO of the Year awards program since its inception in 2009. It’s a lively breakfast event held annually, celebrating and honoring New Jersey’s leading Finance Executives. As a Presenting Sponsor, our firm shares a 2-minute video with the audience, and provides a keepsake for all to take home. This year, we created a micro-version of our latest “Jump on It” video, supplying everyone in the audience with a pair of Withum blue sunglasses. We are branding the Withum blue and provide a pair of gloves to all new clients in our welcome kit, and our “cast” of over 250 wear them in our annual award winning videos.

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MAKING AN APPEARANCE ON THE STREETS OF MANHATTAN ARE OUR PHONE KIOSK ADS FOUND IN 55 DIFFERENT LOCATIONS BETWEEN 36TH -60TH STREETS, EAST AND WEST SIDES. IF YOU HAPPEN TO SEE ONE, WE INVITE YOU TO SNAP A #SELFIE (THAT’S A PHOTO OF YOURSELF), STANDING ALONGSIDE OF IT. EMAIL IT TO HEATHER SUDDOTH AT HSUDDOTH@WITHUM.COM, LETTING HER KNOW WHERE YOU SAW IT. WE’D LOVE TO SHARE IT ON OUR INTRANET AS WELL AS VARIOUS SOCIAL MEDIA OUTLETS.

WHERE’S WITHUM?

WS+B’S PARTNERS’ NETWORK CPE RESERVATION & MEMBERSHIP

Attend WS+B Partners’ Network Pre-Tax Season CPE @ no charge

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@ $40.00

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Why should my firm join The Partners’ Network?•To broaden your firm’s services and expertise•To help you build your business for growth and

profitability•To obtain answers to challenging audit and tax

matters with a phone call•To get ideas and tips on how to better manage your

practice

What does The Partners’ Network offer a firm like mine? Again, many answers:

•Free Power Breakfast covering timely topics.•Discounts to the annual CPE Conference in June.• Invitation to the Pre-Tax Season CPE program.•Answers to your questions on tax, accounting,

auditing, or practice management at no charge. Just pick up the phone and call, or send one of us an e-mail.

•Contacts with peer CPA practitioners, and opportunities for exchanging ideas, resources, and information with your colleagues.

How do I join? Membership is $175 per year ($500 for firms of 100+). Phone or e-mail Heather with your credit card information, or put a check and business card in the mail. It’s as easy as that. So give Heather a call today at 732.828.1614, or send an e-mail, hsuddoth@withum.com. We look forward to hearing from you soon.

THE PARTNERS’ NETWORK

(Compliments of Partners’ Network)

Your Outlook contacts

Your clients

What you know

Your experience

Your reputation

Your interest in what you do

Internal pride in your work

Ability to apply everything together

every time it is necessary

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WithumSmith+Brown, PCCertified Public Accountants and Consultants

w i t h u m . c o m

One Spring Street

New Brunswick, NJ 08901

The Partners’ Network Newsletter is published by WithumSmith+Brown, PC, Certified Public Accountants and Consultants. The information contained in this publication is for informational purposes and should not be acted upon without professional advice.

Partners’ Network ANNUAL PRE-TAX SEASON CPE CONFERENCEFEBRUARY 3DETAILS INSIDE

Objectively determining the value of business enterprises and assets.

Call us for more information.

Ed Mendlowitz, CPA/ABV/CFF, Partner732.964.9329

Accredited in Business Valuation (ABV) by the American Institute of Certified Public Accountants.

• Tax basis conversions to GAAP• Sales tax compliance issues• Corporate state tax preparation• Income taxes for foreigners working in U.S.

and U.S. employees working abroad• Transfer tax studies• Internal auditing • M&A due diligence

Ed Mendlowitz, CPA/ABV/CFF, PartnerFrank R. Boutillette, CPA/ABV, Partner732.964.9329 | 212.829.3238