1 The Channel Islands ENROLLED AGENT VOLUME 2012 NUMBER 9 SEPTEMBER 2012 Editor, Pam Bunk 340 Rosewood Ave, Ste H Camarillo, CA / / Fax CICSEA DINNER MEETING President Dale R. Machalleck, EA PO Box 5606 Montecito, CA / / Fax 1st Vice President Bart Ketterling, EA 2299 E. Main Street #8 Ventura, CA / / Fax 2nd Vice President John H. Blaubach, EA PO Box 337 Santa Barbara, CA / / Fax Secretary Paula Mixon, EA 4882 McGrath St Ste #230 Ventura, CA / / / Fax Treasurer Lynne C. Sequeira, EA 79 Daily Drive #187 Camarillo, CA / / Fax Immediate Past President/ State Director Susan DiMaggio, EA 3800 Market Street, Suite AA Ventura, CA / / Fax Director/Past President Margaret Kehoe, EA PO Box 5425 Oxnard, CA / Cell 805/ Fax Director/Past President Cynthia J. Scalisi, EA 270 Storke Road #13 Goleta, CA / / Fax Meeting Date: September 6, 2012 Board Meeting Dinner Program 5:00 P.M. 6:00 P.M. 7:00 P.M. SEE OUR NEW UPDATED WEBSITE! Program: Standard Bearer for Integrity in Tax Practice 2 hrs CPE Karen L. Hawkins, Esq., IRS Director, Office of Professional Responsibility Where: Marriott Courtyard, formerly Radisson Hotel 600 E. Esplanade Drive, Oxnard (Vineyard offramp & Highway 101) For directions, please call 805/ R.S.V.P. Deadline: September 3, :00 Noon R.S.V.P. Linda Wall, EA at 805/ or R.S.V.P. by Fax 805/ or R.S.V.P. by Price: $30 Members until August 15 $35 Non-Members until August 15 $45 Members after August 15 $50 Non-Members after August 15 $5 Additional at the door for members and non-members without reservations We accept Visa and Mastercard PLEASE INDICATE VEGETARIAN OPTION WHEN MAKING RESERVATION! Payment: Cash or check payable at the door to Channel Islands Chapter CSEA *If you have made a reservation you must cancel if you cannot attend. Otherwise, you will be billed for the amount of the dinner. Reservation deadline will be strictly applied. CTEC #1001-CE-7259 IRS #WZA09-E I Director/Past President Chuck Taylor, EA 2433 La Granada Drive Thousand Oaks, CA / / Fax Director/Past President Russ Merrick, EA 340 Rosewood Avenue, Suite H Camarillo, CA / / Fax Director/Web Master Robert Cantu, EA 944 Cliff Drive Santa Paula, CA / / Fax Director Nancy Huapaya, EA 201 E. 4th Street #206B Oxnard, CA / / Cell Director Linda A Wall, EA 1068 E Main Street #130 Ventura, CA / / Fax Director Dagmar Ragnow, EA 4882 McGrath St, Ste 230 Ventura, CA / work 805/ cell 805/ fax Director Maryann Fiore-Hopkins, EA 2045 Royal Ave #216 Simi Valley, CA / / Fax Director Marlene deboisblanc, EA Lindero #220 West Lake Village, CA / m
2 Channel Islands Chapter CSEA September 2012 PRESIDENT S MESSAGE September (sept'ember/sep-tem-ber) is the ninth month of the year in the Julian and Gregorian Calendars and one of four months with a length of 30 days. Greetings EA colleagues and members! It s been a hot summer with hot topics---election primaries and Olympics and, of course, taxes, taxes, taxes. And just when we need as many days as we can get, September is a month with one fewer days. September has inspired some great things regardless of being a day short: September 3, 1783 Treaty of Paris ending American Revolutionary War signed September 14, 1814 Francis Scott Key wrote the words to the Star Spangled Banner September 16, 1620 Pilgrims sailed from England on the Mayflower September 19, 1796 George Washington delivered his Farewell address September 17, 1787 the US Constitutional Convention signed the Constitution. I suppose that paved the way to having a lot of taxpayers! A review of July and August: Cancellation of Debt in the Real World, was created and presented by Lisa Ihm, EA. This 2-day workshop was filled with great information and the 28 participants all went home with a workbook and computer spreadsheets that were worth much more than the price of admission! Applications and Due Diligence of the Earned Income Tax Credit, was presented to our Chapter by Raven Deerwater, EA, PhD., and CSEA president. Thirty-nine attendees took part in this spectacular, two-hour program. The NAEA National Tax Practice Institute (NTPI) held in Las Vegas in August was attended by Marlene D. deboisblanc, EA, Maryann Fiore-Hopkins, EA, Lucia Liebl, EA, Jennifer MacMillan, EA, Lynne C. Sequeira, EA, Diana Skocypec, EA, and Linda Wall, EA. Of course, our own, Jennifer MacMillan, EA, was there as an instructor. Our congratulations to these tax professional for furthering their professional tax education. You can look for great things coming from these ladies with their newly gained tax education! Upcoming Must-Attend Events: On Thursday, September 6th, 2012, our chapter will host Karen L. Hawkins, Esq., Director, Office of Professional Responsibility, and her presentation is "Standard Bearer for Integrity in Tax Practice." As Director, OPR, our distinguished speaker is responsible for establishing and enforcing consistent standards of competence, integrity and conduct for tax professionals covered by Treasury Circular 230. Ms. Hawkins earned her MST and JD degrees at Golden Gate University in San Francisco, and brings 25 years of private practice experience to her position at the IRS. We have limited seating and this will be the largest attendance at a monthly meeting in the history of our chapter. If you haven't already registered for this program I suggest you do so as soon as possible to guarantee your reservation! This presentation qualifies for 2 hrs. CPE Ethics Credit. On Thursday, October 4th, 2012, our chapter will present An IRS Mock Appeals Conference. Ever wonder what it s like to represent a client at an IRS Appeals Conference? Keith Matsuda, Lead Team Manager Los Angeles, will present a similar program to that which is used to train IRS Revenue Agents about the Appeals Conference. So plan on attending and see for yourself what transpires during an Appeals Conference! This is
3 going to be an extremely exciting program and one you will not want to miss! This presentation qualifies for 2 hrs. CPE Credit. Field Trip! In the works, but not finalized is a trip to visit the U.S. Tax Court in Los Angeles. This day long trip includes lunch (and bus transportation) with the presiding judge, and will be a most informative opportunity to see this court in session. The date has yet to be set, but we re hoping to schedule the trip between October 15th and November 7th, Our Monthly Chapter Dinner Meetings, Workshops and Seminars are very popular and provide participants with CPE credit hours. Good attendance helps us attract fantastic speakers, so please help us, help you, by joining us at a Monthly Chapter Dinner Meeting, Workshop or Seminar! Dale R. Machalleck, EA President, Channel Islands Chapter CSEA INTRODUCTION TO OUR SPEAKER STANDARD BEARER FOR INTEGRITY IN TAX PRACTICE KAREN L. HAWKINS, ESQ., IRS DIRECTOR, OFFICE OF PROFESSIONAL RESPONSIBILITY Karen L. Hawkins has been Director of the IRS Office of Professional Responsibility since April, Ms. Hawkins was formerly in private practice as a Member of Taggart & Hawkins, P.C., and brings 30 years of private practice experience to her IRS position. Ms. Hawkins is a past Chair of the Taxation Section of the State Bar of California, a past chair of the ABA Taxation Section Subcommittee on Civil Penalties, and the ABA Taxation Section IRS Liaison Meetings Committee. She served as a Director on the Council of the ABA Taxation Section, as the Section's Vice-Chair Professional Services and as Chair-elect before resigning her position to accept Commissioner Shulman s offer to join the IRS. She is also a Fellow of the American College of Tax Counsel. Ms. Hawkins is the founder of the San Francisco Pro Se/Pro Bono Tax Court project, and she played multiple key roles in efforts to reform the innocent spouse statute and regulations. Her honors include the V. Judson Klein Award from the State Bar of California Taxation Section in 2002; the National Pro Bono Award from the American Bar Association Tax Section in 2004; and the Jules Ritholz Memorial Merit Award from the ABA Tax Section Civil & Criminal Tax Penalties Committee in When she was in private practice, Ms. Hawkins wrote and spoke extensively on all aspects of civil and criminal tax controversy issues and on ethics in tax practice. Ms. Hawkins earned her J.D. and MBA - Taxation degrees at Golden Gate University in San Francisco. She also holds an M.Ed. from the University of California, Davis.
4 FOR IMMEDIATE RELEASE August 2012 Maryann Fiore-Hopkins, EA of Professional Business Services is now a Fellow of National Tax Practice Institute. She has completed a rigorous three level curriculum which has uniquely prepared her to effectively represent clients before all administrative levels of the IRS. Having successfully completed coursework covering all variances of examinations, audits, collections and appeals, and having studied best practices, Fellows know the entire process from both the client and IRS perspective. While earning the Enrolled Agent (EA) license denotes competence and the right to represent taxpayers, Fellows have made the commitment to a higher level of knowledge and excellence which sets them apart. The National Tax Practice Institute (NTPI ) teaches enrolled agents, CPAs, and tax attorneys how to represent their clients. Representation requires expertise in the tax code as well as knowledge of the system and how it works. Clients deserve the best defense possible, and this requires continual education and review, as well as a robust network of expert colleagues who are willing to offer advice and assistance as needed. Maryann will be glad to talk with anyone about their IRS tax issues, or assist attorneys and CPAs with tax work needed to represent their clients. Dear CSEA Officers and Board of Directors, CSEA LAUNCHES THE GIFT INITIATIVE TASK FORCE You may recall at the Town Hall Meeting held in Redding, CA in July in conjunction with our CSEA Annual Meeting, the Members engaged in what is called a SWOT Analysis. SWOT is an acronym meaning Strengths, Weaknesses, Opportunities, and Threats. One of our perceived weaknesses by the Membership has been the running of deficits for CSEA in the last couple of years. Getting the Society on secure and sustainable financial footing has been clearly marked as a goal by the Board of Directors and the Membership. Our Executive Vice President (EVP), Scarlett Vanyi CAE, has done an in depth analysis of our budget and has already created several cost saving and revenue producing measures. But to truly get the society on stable financial ground requires some new and creative programs and initiatives, which are often called growth initiatives. Seeing this need for the Society, President Raven Deerwater has asked me to head a task force dedicated to exploring growth initiatives for CSEA. Other Members of the Growth Initiative Task Force
5 (GITF) are John Kristianson EA (Orange County Director), Jackie Kincaid EA (Inland Empire Chapter Director), Steve Leibold EA (San Diego Chapter), Pamela Price EA (Los Angeles Chapter President and Director), Nikki Ralls EA (Sacramento Valley Chapter President), and Laura Young EA (Central California Director). The GITF can be viewed much like a think tank to creatively generate new ideas (and perhaps revisit some old ones) which will help drive CSEA forward from a revenue perspective. All ideas are welcome. Growth initiatives come in all shapes and sizes, and the GITF is receptive to all shapes and sizes of ideas. The GITF will then vet, evaluate, and modify these ideas into workable growth initiatives. The task force will look at the history and resources of the society and be willing to explore partnership as well as research and development opportunities. The Task Force will work in harmony with the EVP, who is ultimately responsible for determining what is actually doable by herself and her staff. The Board of Directors, of course, will have ultimate responsibility over the amount of resources allocated to growth initiatives as well as if there are some currently unproductive resources being spent. If you or your Chapter have ideas for revenue enhancement, new programs (or modification of current programs), or other growth initiatives, the GITF wants to hear from you! Please send ideas to me, Kim Kastl, EA at The Growth Initiative Task Force expects to have a full report ready to give to the Board of Directors at its January Meeting. We are all excited at the opportunity to keep CSEA as the premiere organization in California serving the needs of Enrolled Agents. Yours, Kim Kastl, EA Past President , California Society of Enrolled Agents 510/ ATTENDANCE DRAWING Congratulations to Marge Walker, EA whose name was drawn at the Attendance Drawing and will win $50.00 if she attends the September 6, 2012 CICSEA meeting. If for any reason she is not able to attend, then her prize is forfeited and $20.00 is added to the "pot" and another name is drawn until someone wins. Starting at the August 2010 dinner meeting and continuing monthly until the June 2013 meeting, our chapter will conduct an Attendance Drawing. A container will have in it ALL the names of members in good standing. The amount of the first drawing will be $ To win the prize, the member must be in attendance at the next month s meeting. If for any reason they are not able to attend, they forfeit the prize and $20.00 is added to the "pot" and another name is drawn until someone wins. Once a member's name has been drawn out of the container, it will be replaced in the container. Each time the drawing is re-started, the pot will start at $ There is no limit to the number of times a member can win. This will be decided by the luck of the draw. We are trying to encourage continued attendance. Good luck to all! IT'S RAINING PTIN DIRECTORY INQUIRIES NAEA has been deluged this week with inquiries from members who received from a company that apparently believes it can make money by publishing an online PTIN directory. To be perfectly clear, this site is not an official IRS site and is in no way connected to the Service, except insofar as it used the Freedom of Information Act to gather
6 the database (and yes, NAEA spent plenty of time strongly encouraging IRS to exclude and street addresses from release). The site includes a number of errors, including an assertion that enrolled agents may represent clients before the U.S. Tax Court. Interestingly, the website itself includes a mailing address in Wantagh, New York as well as a telephone and fax number but not an address. NAEA called the telephone number to inquire how someone removes his/her name from the directory but the staff person who answered could not answer that question. We still await our promised return call. Ultimately, it seems important to remember that IRS intends to launch a public-and official-database of authorized paid preparers on the Service's website. We hear the target date is May 2013, but the agency has not committed publicly on an implementation date. The database, according to RPO, will list only registered tax return preparers, enrolled agents, certified public accountants, and attorneys. QUICKFINDER ORDER FORM Please contact Russ Merrick, EA, ASAP to order your Quickfinders at or use the order form below and fax your information to him at Also for your convenience, Visa and Mastercard are now accepted. Deadline to order is Friday, September 21, DON T BE CAUGHT WITHOUT THE ANSWERS! CSEA foundation gets $3.00 for each book ordered from our Channel Islands Chapter for the scholarship donation. PLEASE MAIL or FAX TO: Russ Merrick, EA 340 Rosewood Avenue, Suite H Camarillo, CA PHONE FAX Please Enclose a check Payable to CHANNEL ISLANDS Chapter CSEA or fill in your credit card information. Signature Company Name Name Address City,State,Zip Day Phone Credit Card #: Visa MC Three digit Card Code on back of card: Expiration Date: QTY. UNIT PRICE TOTAL BOOK 1: INCOME TAX & FINANCIAL PLANNING QUICKFINDER HANDBOOK... $46.00 BOOK 2: SMALL BUSINESS QUICKFINDER HANDBOOK. $46.00 BOOK 3: ALL STATES QUICKFINDER HANDBOOK. $86.00 QUICKFINDER CD-ROM... $36.00 THIS TOTAL INCLUDES SALES TAX & SHIPPING & HANDLING $ A SAVINGS OF ALMOST $5.00 WHEN YOU ORDER THRU OUR CHAPTER. CTEC ADVERTISING DISCLOSURES CSEA has been approved by the California Tax Education Council to offer Standard Bearer for Integrity in Tax Practice, Ms. Karen L. Hawkins, Esq., IRS Director, Office of Professional Responsibility (OPR), CTEC #1001- CE-7259, IRS #WZA09-E I, which provides 2 hours of Ethics credit and 0 hours of state credit towards the annual continuing education requirement imposed by the State of California. A listing of additional requirements to
7 register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, , toll-free by phone at (877) , or on the Internet at Bonnie DeSimone, EA - Federal & State of California Year-End Update Seminar January 8, 2013, 8:00 am - 12:00 pm, 4 Hours of CPE Marriott Courtyard, 600 East Esplanade Drive, Oxnard, CA See attachment to sign up! Sign Up for Client Whys 1040 Review & Update Seminar November - Do it Now...See attachment! PTIN EXPIRATION CYCLE UPDATE The Return Preparer Office is changing the renewal cycle for all PTINs to a calendar year renewal. Even though you got your PTIN before the end of 2011, it will not expire until December 31, Open season for 2013 PTIN renewal will begin in October PTIN REQUIREMENT FOR CREDIT Beginning in 2012 all education events will be requiring your EA or CTEC number, AND new this year your PTIN number...no PTIN no credit. Please provide your PTIN number when you are signing in at the meeting. JOKE OF THE MONTH! The problem with practicing tax law is that the general rule never seems to apply to anything. TAX CALENDAR Have a Safe & Happy Labor Day!!! Individuals. September 17. Make a payment of your 2012 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the third installment date for estimated tax in Corporations. September 17. File a 2011 calendar year income tax return (Form 1120) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension. S Corporations. September 17. File a 2011 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you timely requested an automatic 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1120S). Partnerships. September 17. File a 2011 calendar year return (Form 1065). This due date applies only if you were given an additional 5-month extension. Provide each partner with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1. Corporations. September 17. Deposit the third installment of estimated income tax for 2012.
8 THE CLASSIFIEDS If you would like to place an advertisement (for a nominal fee to help offset the cost of the newsletter) please contact Pam Bunk, at 805/ or at COMING EVENTS 2012/2013 Plan Ahead Mark Your Calendar September 6, 2012 September 24, 2012 October 4, 2012 November 1, 2012 November 6 & 7, 2012 November 14, December 5 & 6, 2012 December 6, 2012 December 7, 2012 December 10, 2012 December 10, 2012 January 3, 2013 January 2013 Standard Bearer for Integrity in Tax Practice, 2 hrs CPE Ms. Karen L. Hawkins, Esq., IRS Director, Office of Professional Responsibility (OPR) Brass Tax Stocking Your Tax Tool Box 2012, 8 hrs CPE Sheraton Four Points Harbortown Resort, Ventura, CA An IRS Mock Appeals Conference, 2 hrs CPE Keith Matsuda, Lead Team Manager Los Angeles "C" and "S" Corporations, 2 hrs CPE William Amon, Managing Director, WTAS, LLC ClientWhys Fall 1040 Update & Review Seminar, hrs CPE Marriott Courtyard, 600 East Esplanade Drive, Oxnard, CA Spidell Tax Seminars 2012/2013 Fall Federal & California Tax Update Seminar, 6 hrs CPE + 2 hrs Online CPE Residence Inn at River Ridge, 2101 West Vineyard Avenue, Oxnard, CA Thomson Reuters 2012 Gear Up 1040 Individual Tax Seminar Fess Parker s Doubletree Resort Santa Barbara, 633 E. Cabrillo Blvd, Santa Barbara, CA Professional Ethics & Circular 230, 2 hrs CPE Jennifer MacMillan, EA Thomson Reuters 2012 Gear Up California Tax Update Seminar Fess Parker s Doubletree Resort Santa Barbara, 633 E. Cabrillo Blvd, Santa Barbara, CA Brass Tax Year End Update 2012, 8 hrs CPE Sheraton Four Points Harbortown Resort, Ventura, CA Spidell Tax Seminars 2012/2013 Fall Federal & California Tax Update Seminar, 6 hrs CPE + 2 hrs Online CPE Fess Parker s Doubletree Resort Santa Barbara, 633 E. Cabrillo Blvd, Santa Barbara, CA Practitioner Seminaar
9 January 8, 2013 February 7, 2013 Federal & State of California Year-End Update Seminar Bonnie DeSimone, EA Marriott Courtyard, 600 East Esplanade Drive, Oxnard, CA March 7, 2013 From Death to Disbursement - A Practical Approach to Form 1041 Margaret Kehoe, EA April 4, 2013 May 2, 2013 June 6, 2013 July 11, 2013 August 1, 2013 September 5, 2013 October 3, 2013 November 7, 2013 December 5, 2013 No Meeting Alternative Minimum Tax Watch Out!, 2 hrs CPE Karen Brosi, EA California Franchise Tax Board (FTB) Nite!" 2 hrs CPE Brenda Voet, MST, Technical Assistant to the Advocate What You and Your Client Should Know about Nexus!... No Thanks! My Clients Use Paul Mitchell or Redken Hair Products!#?, 2 hrs CPE Dale R. Machalleck, ATA, ATP, CIA, CRTP, CTRS & EA Professional Ethics & Circular 230, 2 hrs CPE Jennifer MacMillan, EA PLEASE NOTE If you wish to receive this newsletter, please contact and provide us with your address. If your address changes, please be sure to let us know. th If you have articles of interest to be published, please to by the 15 of the month. All submissions should be done via . MISSION The mission of the Channel Islands Chapter of the CSEA is to foster the professionalism, business development and personal growth of our Members; to protect the interests of the individual Members and the Chapter; and to enhance the awareness and role of the Enrolled Agent among members of the public, other professions and with governmental agencies.
10 CICSEA OFFICERS & COMMITTEE CHAIR CONTACT INFORMATION President Dale Machalleck, EA 1st Vice President Bart Ketterling, EA 2nd Vice President & Monthly John Blaubach, EA Program chiar Secretary Paula Mixon, EA Treasurer Lynne C. Sequeira, EA Immediate Past President Susie DiMaggio, EA State Director Susie DiMaggio, EA Annual Review Bonnie DiSimone Update Nancy Huapaya, EA ByLaws/TALC Jennifer MacMillan, EA Disaster Co-Chair Disaster Co-Chair Education Russ Merrick, EA Finance & Budget Dagmar Ragnow, EA Hospitality Russ Merrick, EA Legislative Affairs Chuck Taylor, EA Membership Co-Chair Susie DiMaggio, EA Membership Co-Chair Maryann Fiore-Hopkins, EA Newsletter Pam Bunk Nominating Susie DiMaggio, EA Practice Preservation Paula Mixon, EA Practitioners Seminar Cyndy Scalisi, EA PIA Co-Chair Linda Wall, EA PIA Co-Chair Robert Cantu, EA SEE/Scholarship Marlene D. deboisblanc, EA Website Robert Cantu, EA