1 To Promote the Professionalism and the Growth of Our Members America s tax experts CSEA Inland Empire Chapter May 2015 IRS Strategies on Identity Theft and Online Resources by KRISTEN DEAZELEY, IRS STAKEHOLDER LIAISON Gloria J Williams, EA, Program Chair Ms. Kristen Deazeley, Stakeholder Liaison with the Internal Revenue Service s Small Business Self-Employed Division will present Identity Theft and Online Resources for our May 13th dinner meeting. Her presentation will discuss the IRS strategy to prevent identity theft, including prevention, detection and victim assistance. The discussion will cover tagging victim accounts, applying special filters before processing, and partnering with local law enforcement. Business related identity theft will be discussed along with what tax practitioners should know to assist their clients. Online resources will outline the newest online resources on IRS.gov that are available to taxpayers and practitioners. These will include the Online Payment Agreement (OPA); OIC Pre-Qualifier Tool; Direct Pay; and Get Transcript. About the Speaker: Kristen joined the IRS in 2004 as a Revenue Agent where she performed examinations of sole proprietorships, C Corporations and flow through entities. She has held acting assignments as a Field Examination group manager, Taxpayer Advocate Group Manager and performed details with National Research Program. She holds a B.A. with concentrations in both Accounting and Communication. PRESIDENT S MESSAGE Welcome back! I am glad tax season is over and can now get back to a normal schedule. I hope everyone had a great tax season and ACA did not trip you up. I have to say that I think I was over prepared for ACA as I had only about a dozen clients that did not have health insurance. Out of those clients the largest penalty I had was $288 but I did have two clients who had to pay back their premium assistance because they did not inform Covered California when their income has changed. With only two more meetings left in my charge I can t believe that my time as President of the Chapter is almost done. As we finish out our fiscal year we will be looking for the new group of leaders to launch us into the future and keep the Chapter going strong. Ronald Uehle, EA, Inland Empire Chapter President Just a reminder, that in just about a year our Chapter will be hosting the Annual Meeting of the California Society of Enrolled Agents and we will need everyone s help in making it the best annual meeting ever. This month s meeting topic is one that I think everyone came across this tax season as I know I did several times. Identity theft and filing tax returns is a big problem and it keeps getter bigger. With all the technology it seems to be easier to steal a person s identification. We will find out how the IRS is dealing with this and what we can do to help out clients. Look forward to seeing everyone at the meeting and to be able to share our war stories from this latest tax season.
2 Board of Directors President Ron Uehle EA 909/ First Vice President Gloria J Williams, EA gloriawilliamsea.com Second Vice President Secretary Tammy G. Carter, EA 951/ Treasurer Sharon Elgersma, EA 909/ Immediate Past President Donald McAllister, EA 951/ CSEA Director (Two Year Term) CSEA Inland Empire Chapter Committee Chairs AWARDS BUSINESS RETENTION Ken Alvarado, EA 909/ BYLAWS Connie Bracher, EA 909/ CO-SPONSORED SEMINARS Barbara Robertson, EA 909/ DISASTER SERVICE Ken Alvarado, EA 909/ EDUCATION Patricia LaRue, EA 909/ FINANCE & BUDGET Paul Cheatham, EA 909/ FINANCIAL REVIEW HISTORIAN CSEA Representative Gloria J Williams, EA gloriawilliamsea.com Directors Connie Bracher, EA 909/ Paul Cheatham, EA 909/ Joel Hendriks, EA 909/ Pamela Jipp, EA 760/ Patricia LaRue, EA 909/ Diane Martin, EA 909/ Gerald Watson Jr, EA 951/ LEGISLATIVE Joel Hendriks, EA 909/ MEMBERSHIP NEWSLETTER Diane M. Martin, EA 909/ PROGRAM Gloria J. Williams, EA PUBLIC INFO. & AWARENESS Don Stacy, EA 951/ SEMINARS STRATEGIC PLANNING Gloria J. Williams, EA WEB-SITE Gerald D. Watson, EA 951/ IRS Seeks Applications for the Internal Revenue Service Advisory Council IR , May 1, 2014 WASHINGTON The Internal Revenue Service announced it is accepting applications for the Internal Revenue Service Advisory Council (IRSAC). Applications will be accepted through June 13, IRSAC s purpose is to provide an organized public forum for IRS officials and representatives of the public to discuss relevant federal tax administration issues. IRSAC members submit a report to the IRS Commissioner annually at a public meeting in the fall. IRSAC is comprised of up to 35 members, who are appointed to three-year terms by the Commissioner. Applications are currently being accepted for approximately seven appointments that will begin in January Nominations of qualified individuals may come from individuals or organizations. IRSAC members are drawn from substantially diverse backgrounds. Membership is balanced to include representation from the tax professional community, including but not limited to: tax attorneys, certified public accountants, enrolled agents, academia and the business community. Federally registered lobbyists cannot be members of IRSAC. Nominations should describe and document the proposed member s qualification for IRSAC membership, including the applicant s knowledge of Circular 230 regulations and the applicant s past or current affiliations, as well as dealings with the particular tax segment or segments of the community that the applicant wishes to represent on the council. More information, including application forms, is available on the Tax Professionals page on IRS.gov. Questions about the application process can be sent to the following January 2015 CSEA Board of Directors Meeting I recently attended the January 2015 Board meeting. The Board had a full agenda. The board voted to cut back to 3 in person meetings a year. We will no longer have a May meeting in Reno starting with the next fiscal year. We have also decided to eliminate the Web Board meeting. The Leaders have decided that CSEA is going to model our Board of Directors meetings after NAEA. During the Membership Committee meeting we had a very robust discussion about what we could do to help our Chapter Members. I am the Vice Chair of the Membership Committee and I would like to know: Why you are a Member of CSEA? I would like to hear your story. I would like to know what the Membership Committee at the State level can do to help you. I would like to hear your answers to this question, pertaining to your practice, what keeps you up at night? As a Member of CSEA what do you expect our Society to do for you? Please think about these questions and share your answers with me. I would like to share your ideas at the State level. The easiest way to respond to these questions is to send me an gmail.com Can t wait to hear from you!
3 REPORT OF THE CSEA STATE REPRESENTATIVE Gloria J. Williams, EA, CSEA State Representative I attended the Jan 9 through Jan. 11, 2015 Board of Directors Meeting in Sacramento. CSEA Board and its Directors have been very busy since the last online Board Meeting in October Some of the major items that were a result of the January 2015 meetings are outlined below: Slight revisions to sections of the Policy Governance Manual Creation of a Dashboard for the Committees of the BOD to use Elimination of the digital capture of Super Seminars 2015, projecting a savings of $20,000 to CSEA Culmination of partnering with CALCPA for online education for EAs at a discounted price Adoption of the NAEA s Educate America Program at the Chapter level so that an increase in revenue is possible to the Chapters and CSEA. A speakers listing will be forthcoming to help Chapters find good, quality speakers Attention was directed to increase membership and retain current members by using the Member Retention Toolkit and other tools The Slate of Officers for Year was presented as follows: President: Doug Pickford, EA of North Bay Chapter First Vice President: Torie Chavez, EA of Mission Chapter Second Vice President: Cynthia Leachmoore, EA of Mission Secretary: Joyce Cheng, EA of Orange County Chapter Treasurer: John Kristianson, EA of Orange County Chapter It was a very busy 2 ½ days, but I was able to learn a lot about the workings of the Board and was able to serve on the Education and Membership Committees, and support the PIA Committee. I am looking forward to the May BOD meeting in Reno. Update from Public Information Awareness Committee Gloria J. Williams, EA, PIA Chair Chavez Library was staffed by Stan Hatch, EA and myself; Fontana Senior Center was staffed by Ron Uehle, EA, Karen Cole, EA, Judy Woodward, and Ton T. Tran. Special help was provided by Ms. Lourdes Oretga of the IRS. The Solarium Room of the Community Hospital in San Bernardino was staffed by Connie Bracher, EA and her husband. A recap of the PIA Committee activities for the last year: Eight Press Releases went out to inform the public of our monthly meetings Information about Chapter events was posted online at Events.PE.com and on our Facebook Page Public Service Announcements released to various Radio and TV stations promoting Tax Help Day The Chapter placed a 2/3 page ad in the Feb Issue of the Inland Empire Magazine promoting Enrolled Agent designation. Nominating Committee Donald H. McAllister, EA Nominating Chair The Nominating Committee wishes to thank each of the Members who have expressed an interest in serving our Chapter as a member of the Board of Directors or as an Officer. The Committee is recommending the following slate of Nominees for the Inland Empire Chapter Board of Directors and Officers for the year as follows: Board of Directors Connie Bracher, EA; Paul Cheatham, EA; Joel Hendricks, EA; Pam Jipp, EA; Patricia La Rue, EA; Vic Morel, EA; Amber Morgan, EA and Joel Hendriks, EA President Gloria Williams, EA 1st Vice President 2nd Vice President Tammy Carter, EA Treasurer Sharon Elgersma, EA Secretary Nancy Sellers, EA CSEA Chapter Representative Ron Uehle, EA The Election of the Members of the Board of Directors and Officers will be held at our May 2015 meeting and they will be installed at our June 2015 meeting. Special thank you for representing our Chapter on Feb. 19, 2015 goes out to: Don Stacy, EA; Deborah St. Martin, EA and Tammy Carter, EA. They participated in a one day seminar by the IRS Small Business Division in Beaumont. Another thank you goes out to all those volunteers that help staff our three locations for Feb. 7, 2015, Tax Help Day: Cesar
4 Bio for Gloria J. Williams, EA, MBA President Gloria has been a member of our chapter since She has been active in the chapter by serving as the PIA Chair, former Newsletter Editor, and a Director for the term. During the fiscal year, she has served as our Second Vice President and served as Chair for the Awards, Membership, and PIA committees. In addition, she has been publishing our Press Releases since the fiscal year. For the current year she is serving as First Vice President, serving as the Program Chair, PIA Chair, and State Representative. She has a tax practice in Menifee with a concentration in representation and collections. As President of the Chapter she would like to focus on continuing to provide quality educational programs to the Chapter membership and all tax practitioners in the area; encouraging more participation of our chapter at the state and national levels; increasing membership, assisting members in their professional growth, and spreading the word about the Enrolled Agent as America s Tax Expert. Bio for Vic Morel, EA Running for Board of Directors Member My name is Vic Morel, EA and I previously worked for the IRS for 34 plus years. I have an MS from C.U.N.Y. (Richmond College) and I am enrolled to practice before the IRS. I retired from IRS as an IRS Appeals Settlement Officer. Prior to working in Appeals, I was an IRS Collection Manager for 12 years. My experience has been in the following areas: IRS Appeals Tax Issues and IRS Collection Issues. In addition, I have had experience as an Offer-in-Compromise Specialist, Revenue Officer, IRS Instructor, and an Acting ACS Assistant Branch Chief in the old Kearney Mesa (San Diego) office. In private practice, my experience is primarily as a Tax Resolution Specialist is in the areas of Trust Fund Recovery Penalty investigations, Collection Due Process (CDP) hearings, Penalty Abatement Requests with Appeals considerations, Business & Personal Tax Resolution, Complex Installment Agreement negotiations, Tax Audit Consultations, and Complex Tax Account transcript analysis. More significantly, I was an Offer-in-Compromise (OIC) Specialist while working in the San Bernardino IRS Field Office. In the Office of IRS Appeals, I handled the appeals of Rejected Offer-in-Compromises (OIC). My representation experience includes Offer-in-Compromises, Payroll Tax Problems, Innocent Spouse issues, unfiled returns, Penalty Abatements, Audit representation, owed back taxes problems, Payment Plans, Identity Theft tax issues, Trust Fund Recovery Penalties (TFRP) defense, Wage & Bank levies releases, and Personal & Business Tax Resolution. I have testified in Tax Court & Federal District Court as an Expert Witness. Tax Court Reviews In T.C. Summary Opinion the sole issue for decision is whether petitioner (Suzanne Moore Bacon) received income in 2007 from cancellation of indebtedness (COI). Following the earthquake that occurred in Northridge, California, in mid-january of 1994, Ms. Bacon applied to the Federal Emergency Management Agency (FEMA) for disaster assistance funds to make repairs on a residence on Mayall Street in Northridge. At the time of her application she represented to FEMA that the Mayall Street property was her primary residence. Later, in January of 1994 Ms. Bacon received disaster assistance funds from FEMA totaling $3,450. FEMA subsequently determined that such property did not qualify as Ms. Bacon s primary residence. In October of 1994 FEMA notified Ms. Bacon of its determination and sought to recoup the disaster assistance funds. Ms. Bacon never disputed FEMA s determination, did not return any of the FEMA funds that she improperly received, nor did she respond to any of the eight letters and four voic messages left by FEMA between January, 1995 and September, 1997 seeking to collect the amount due. In October of 1997 FEMA referred this matter to the Department of Justice (DOJ) for judicial enforcement of its claims. The DOJ never commenced any suit or initiated any other action to recover the funds. The government s legal right to recover the funds expired on January 27, 2001, six years after the original default date. In February of 2008 FEMA mailed petitioner a Form 1099-C reporting a discharge of indebtedness of $6,297 for Ms. Bacon did not report this COI on her 2007 individual tax return and the IRS subsequently determined a deficiency of $1,012 for the unreported income. The question as to the year in which a taxpayer realizes COI income is one of fact to be determined on the basis of the evidence. A debt is deemed discharged the moment it becomes clear that such debt will never be repaid. Cozzi v. Commissioner, 88 T.C. at 445. There exist a number of identifiable events, any one of which could reasonably indicate that a debt has been discharged. Section P-1(b)(2)(i) and (iv), Income Tax Regs., provides an exclusive list of eight identifiable events under which debt is discharged for information reporting purposes. In finding for Ms. Bacon, the court reasoned that FEMA issued the 2007 Form C in error because Ms. Bacon s debt was in fact discharged by operation of law some six years earlier, on January 27, 2001.
5 Wednesday, December 10, 2014 Chapter Meeting IRS Strategies on Identity Theft and Online Resources by Kristen Deazeley, IRS Stakeholder Liaison 4:00 Board Meeting; 5:30 Social; 6:00 Dinner; 7:00 Program Menu: Roasted Tom Turkey/Cornbread Stuffing/Cranberry Orange Yams/Fresh Vegetables or Vegetarian plate. Includes green salad, rolls, tea, coffee and pumpkin pie. Chapter Meeting location: The Hotel San Bernardion (formerly The Hilton) 285 E. Hospitality Lane, San Bernardino, CA (at Waterman & 10 Fwy) Wednesday, May 13, 2015 Wednesday, June 10, 2015 Wednesday, July 8, 2015 Wednesday, August 12, 2015 Wednesday, September 9, 2015 Chapter Meeting: Amy Smith, IRS: Identity Theft & Other Issues Chapter Meeting: Stephen Davis, EA: Advanced Representation Chapter Meeting: Margaret Kehoe, EA: 1031 Exchanges Chapter Meeting: Ms. Lynn Freer, EA: California Update Chapter Meeting: Rodney Couts, EA: Basis Bingo Wednesday, October 14, 2015 Wednesday, December 9, 2015 Chapter Meeting: Gary Quackenbush, ESQ: Deceased Clients Chapter Meeting: Daniel W. Layton, ESQ: Ethics Due to Hotel Policy dinners will not be provided without prior reservations. Chapter Program cost is $42 for members ($47 for non-members and guests) for reservations made by 4 p.m. on Friday preceding the program. Late reservations are $50 for members; $55 for non-members and can be made until 12 noon Wednesday of the day of the program. Walk-ins to the Chapter dinner is $55. RSVP to or We have a new secure credit card payment and online registration for events through 123signup. We accept Visa, MasterCard and Discover. We have opted out of American Express due to the higher cost for processing. You will receive a confirmation by that you are registered. You can still pay by check or cash at the door and this option is available through the online registration at To receive Chapter IdEA s Newsletter by print Call Dave at or On-line Tax Help: Very Active Facebook Groups for Enrolled Agents: US Tax Pros; Tax Pros; Enrolled Agents The Tax Professionals. Linked In Groups: NAEA, and California Society of Enrolled Agents EARLY BIRD REGISTRATION for the 2013 Practitioner s Update Seminar ends DECEMBER 15, Sign up today and save. See registration flyer in this newslette Chapter IdEA s is published May-January by the Inland Empire Chapter, CSEA. Classified ads are free to members up to 35 words; for non-members the cost is $25. The Newsletter subscription is $15 per year. It is distributed free to members of the Chapter. Checks payable to CSEA; include your name, address, , and phone number; send to Dave DeKoekkkoek, EA; 2551 S. Euclid Ave., Ontario, CA com. Editorial Board: Donald McAllister, EA. Inland Empire Chapter CSEA Heacock St., Ste 1 Moreno Valley, CA Return Service Requested First Class Mail