Payroll Taxes. Can You Ever Recover from the Trust Fund?

Transcription

1 ENROLLED AGENT The Tax Professionals July 2015 Editor: Dale Quelle, EA JULY DINNER MEETING Payroll Taxes. Can You Ever Recover from the Trust Fund? See Page 3 for Details

2 June 2015 Page 2 PRESIDENT S MESSAGE The officers, Board of Directors, Committee Chairs and interested parties just returned from the Annual Retreat at the Temecula Creek Inn. Dan Carlberg did an exceptional job in setting up this retreat. It is during this annual retreat that the Chapter Leadership formats the budget and along with the budget, the plan for the coming year. by John Kristianson And as I have said in the past, the chapter exists to serve each and every member. The chapter exists for the benefit of the members and the chapter cannot exist without its membership. When I speak of members, I am mentioning all members. But to truly have a dynamic chapter, we need members who are willing to donate time and energy to help the chapter meet the annual plan. Each and every member of this Chapter brings something to the game. So as we embark on the , I would ask everyone reading this newsletter to ask themselves this one question; What can I do to contribute to the Orange County Chapter?. This year, as with last year, the focus of the retreat was the Strategic Plan which was adopted from the CSEA Strategic Plan. We were fortunate to have Ms. Patricia Kappen, EA at the retreat, as she was the original author of the CSEA Strategic Plan. As a reminder, there are five components to the Strategic Plan; Membership, Education, Advocacy, Public Information and Awareness (PIA) and Financial Stability. This year, Joyce Cheng, EA is leading the PIA Committee. Given what Joyce and David Hilliard, EA achieved with the Education Committee last year, we can expect to see some great things coming out of the PIA committee this year. Joyce has already set up OCEAs participation in the Color Run in Huntington Beach on November 21, If you would like to help the chapter AND have some fun, you can participate in the Color Run (or walk as the case may be). Continuing the excellent work on Education last year, David Hilliard, EA is the Education Chair this year. He has a number of excellent educational offerings in the works. David is continuing the Representation Workshop from last year. I believe we have the three speakers, Alan Pinck, Peter Stephan, and Bryan Gates, from last year. David has been working with one of the speakers that may allow us to offer at least one of these segments via conference call / webinar, nationally. We will stay tuned for developments on that front. President John Kristianson, EA MBA 5030 Katella Blvd, #228 Los Alamitos, CA (562) , john@taxxmann.net First Vice President Joyce Cheng, EA 31 Woodleaf Irvine, CA 2614 (714) , dynasty53@gmail.com Second Vice President Joe Guccione, EA Daisy Ave Fountain Valley, CA (714) , gucci-one@msn.com Secretary Jean Krieger, EA 2100 Main St #106 Irvine, CA (949) , kriegerj@cox.net Treasurer Christine Davidson, EA Via Luisa Mission Viejo, CA (949) , chris@ocnumberz.com Directors Matthew Cooling, EA (949) , matthew@action-tax.com David Hilliard, EA 402 Red Cloud Dr Diamond Bar, CA (714) , dhilliard@gtbsonline.com Patti Kappen, EA Rancho Viejo Rd #215 San Juan Capistrano, CA (949) , patti@sanjuanfinancial.com David Shashoua, EA MacArthur Blvd #400 Irvine, CA (714) , dshasho1@dtt.net Ronald Schlegel, EA Mt Langley #200 Fountain Valley, CA (714) , rschlegel@ammrtax.com CSEA Director; Bill Stewart, EA Rancho Viejo Rd #215 San Juan Capistrano, CA (949) , bill@sanjuanfinancial.com Immediate Past President; Patricia Yeckel, EA Avenida Empresa #280 Rancho Santa Margarita, CA (949) , pyeckel@canyontax.com Cont. on page 3

3 June 2015 Page 3 Cont. from page 2 Also, David has a full suite of educational events planned for One thing that we reviewed during this retreat was the status of the budget for And this year, was the first year in many, where the chapter has a surplus of over $10, That was achieved largely due to the educational events that we held during the course of the year. We anticipate another great educational year. But that kind of financial performance is due to members coming to the educational events. We look forward to seeing many of you at the events during this year. JULY DINNER MEETING In membership, Matthew Cooling, EA has taken the Chair position and will be working with the committee to build the most important building block of our organization, our membership. While Matt and his group will be formulating and leading in the implementation of the membership plan, we need everyone who attends the dinner meeting and other chapter events to welcome new people who are attending these events. If our events are welcoming then we can hope to expect the people to attend more events and who knows, become members. In the area of Advocacy, Jean Kreiger, EA continues in leading our efforts there. Jean will be coordinating visits to legislators and assembly people in their local offices. She will also be working at the State level on the Political Action Committee (PAC). With Jean, you have a direct link to the legislative efforts at the State Level. I am really looking forward to seeing Jean spearhead these visits in our chapter. Why are these visits important? They introduce our legislators and assembly people to the concept that Enrolled Agents ARE America s (and California s) tax experts. This can assist our profession when we need to call on these legislators and assembly people to protect our interests to practice. So if you look at the team roster for the coming year, I am hoping that you see the trend that I do. That is, there are a new set of leaders coming up through the committees and the officers that will lead the Orange County Chapter of CSEA in the coming years. And who knows, some of these enthusiastic leaders may even lead at the state and national levels. But their success is predicated on one thing that is your involvement in the Chapter is Let s make this an awesome year. Payroll Taxes. Can You Ever Recover from the Trust Fund? Presented by Lisa O. Nelson, Esq. Whether you are self-employed, a corporation, or an employee, payroll taxes present several challenges and can become a personal liability if you don t protect yourself. If you or a client uses a payroll company to handle your payroll you still may find yourself in a situation to be personally liable for unpaid payroll taxes. If you are an employee of a company and you handle payroll you may become personally liable for unpaid payroll taxes. Lisa O. Nelson is a tax attorney who has handled trust fund penalty cases with the IRS. She will explain trust fund taxes and the trust fund recovery penalty. Ms. Nelson will also discuss how to assist and represent your clients if they are being investigated as a potentially responsible person and how to file an appeal. Once the IRS makes a trust fund recovery penalty assessment there are still options and collection alternatives. Find out what is different when the liability is a trust fund assessment. Payroll taxes are not just a federal issue. The Employment Development Department will also pursue individuals for unpaid payroll taxes but the rules are different for the EDD Ms. Nelson will explain how the EDD handles unpaid payroll taxes. Meetings are held at the Phoenix Club 1340 S Sanderson Ave Anaheim, CA (see last page for map) CLICK HERE TO REGISTER Agenda: Tues, Jul 21, :15 Board Meeting 5:30 Social Time 6:00 Dinner Hour 7:00 Presentation CPE 1 hr $40. /$45

4 June 2015 Page 4 LEGISLATIVE NEWS by Jean Krieger, EA and NTPI Fellow What have California legislators and the California Society of Enrolled Agents been doing the past few months not sitting on the beach. The CSEA Legislative Committee along with CSEA legislative advocate Jennifer Tannehill and CSEA staff liaison, Cara Watson have been diligently monitoring legislation to keep members up-to-date on California tax bills. Scarlett Vanyi, CSEA Executive Vice president, continues to support the Society s legislative agenda by writing letters to Assembly member Perea (to support AB99); Assembly member Irwin (to support AB 557); Assembly member Brown (to support AB 871); Senator Wolk (to support SB 35); and Senator Hertzberg (to oppose SB 8). Notably two of the following bills were a direct result of CSEA member activism at the 2015 Jim Stern Legislative Day. Most importantly, OCEA member Joyce Cheng appeared at the Banking and Finance Committee hearing in April to testify for support of AB 871. AB 99 (Perea, D - Fresno) Personal Income Tax: Income Exclusion: Mortgage Debt Forgiveness - This bill would extend the tax relief on mortgage debt forgiveness on a qualified principal residence by conforming California law to Federal law. Unfortunately, AB99 was referred by the Assembly Committee on Revenue and Taxation to the Suspense File. CSEA is working to get the bill moving again to the appropriate legislative committees so please, advocate your opinion to your Senator or Congressman. AB 557 (Irwin, D Thousand Oaks) - Nonprofit corporations: abatement: dissolution: surrender - This bill would streamline the dissolution process for nonprofits with the Secretary of State. The FTB estimates that possibly 60,000 nonprofits are sitting inactive on the Secretary of State books. A standard Administrative Dissolution would allow nonprofits suspended for 48 continuous months after an FTB notice has been received to cease to exist. Assembly Bill 557 was passed by both the Banking and Finance and the Revenue and Taxation Committees. The bill is now in the Assembly Appropriations Committee so please write (or visit) your legislator to express the benefits of an automatic non-profit dissolution. AB 871 (Brown, D San Bernardino) Statement of Information (SOI) Filing Date Proposal - This bill would change the Statement of Information (SOI) filing date from the incorporation date to a tax filing date based on the entity s type. (corporations by March 15, limited liability companies by April 15 and non-profits by May 15.) Over a two year period 141,000 entities were assessed a $250 penalty and 25,000 entities were suspended for not filing the SOI at the appropriate time. Assembly Bill 871 would reduce confusion and prevent businesses from becoming suspended and incurring expenses for the Cost of Revivor. CSEA Legislative Affairs Committee Vice-Chair Joyce Cheng joined CSEA staff liaison Cara Watson and lobbyist Jennifer Tannehill to provide testimony at the Banking and Finance Committee. The Bill passed and moved on to the Appropriations Committee who estimated a $2 million price tag and attempted to send the bill to the Suspense File (where bills are held due to cost and die.) Assemblywoman Brown pulled the bill so it would instead become a two-year bill. Fortunately, there appears to be a desire to remedy the SOI issue under the new Secretary of State which should allow CSEA time to negotiate amendments in Cont. on page 8

5 June 2015 Page 5 Cont. from page 4 July by Floyd Allen, EA The campaign named Christmas in July started at a Fullerton Savings and Loan office in the early 1990 s when customers asked where they could donate their excess stuff to a worthy charity. The resulting carloads of usable items were delivered to the Women s Transitional Living Center (WTLC) with the slogan Christmas in July. The idea caught on and numerous organizations, including OCEA, supported the activity both in July and December with donations of food, clothing, canned goods, dry goods, cereals, cash and checks. The WTLC is a 501(c) (3) organization providing short term help to women and their children who are victims of abusive relationships and have no where else to turn for help. The WTLC is supported by company and public donations to carry on their program at several locations in Orange County and provide a much needed chance for a new start for the victim and her children. OCEA members have donated generously in past years and we are requesting your participation again at the July meeting by bringing canned goods, cereals, dry and paper goods, toys, clothing in good condition, bedding, house wares, and cash or checks. Your donation is deductible to the fullest extent of the law...please BE GENEROUS AND BRING YOUR MUCH NEEDED DONATION TO THE JULY 21st DINNER MEETING.

6 June 2015 Page 6 Dear Eddie, Last year OCEA had a Representation Series in November. Will you be offering that again this year? Representative Rocky Dear Representative Rocky, Yes! The Representation Series will be back this November! Check out the education website next month for more information. We have invited back our speakers: Bryan Gates, EA, Alan Pinck, EA, and Peter Stephan, CPA and are excited all three have agreed to come back. Ecstatic Eddie Dear Listening Lila, Yes, Willy Nilly actually drove to Temecula for the retreat! Look for his photo in the newsletter. Willy did meet Porter the Pig and they are now good friends after throwing back a few at the Cork/Fire Restaurant bar. Envious Eddie Where in the World is Willy Nilly? Dear Eddie, I really enjoyed the panel presentation format at the June dinner meeting but I was disappointed in the dessert offered at dinner Peach Melba. It should have been refrigerated and brought out later. Melted Melba Dear Melted Melba, I am glad you enjoyed the panel format but am sorry the Peach Melba was a disappointment. While OCEA does not have control over the dinner service I will pass your concern along to our 2nd Vice President who can mention it to the staff at the Phoenix Club. Epicurean Eddie Dear Eddie, Was Willy Nilly at the OCEA annual retreat in Temecula? I heard he was carousing with Porter the Pig! Listening Lila

7 June 2015 Page 7 CLASSIFIEDS TAX AND ACCOUNTING PRACTICE FOR SALE in Huntington Beach. Call or Phil Boodman at (714) , hbtaxgroup@gmail.com 07/15 FRONT OFFICE FOR RENT in Old Towne Orange 2 rooms, 524 sq ft, $900 month plus 1/2 utilities. Call Marti Reis at (714) /15 TAX PRACTICE WANTED: Looking to purchase a small to medium tax book of business. Currently practicing in Tustin serving individual, corporate, partnership and trust clients. Please contact John Rumbold, EA, CFP at or jrumbold@rfta.biz 07/15 EMPLOYMENT OPPORTUNITY for part- or full-time administrative assistant. Do you have a small practice and want to grow? Find yourself in a great launching point and learning position. Our office represents clients in audit and collection. And of course, we prepare tax returns in a busy 12 month office. Send your resume to Bill Stewart at bill@sanjuanfinancial.com 06/15 Classifieds available for OCEA Members & associates to advertise items for sale or rent, want ads & employment opportunities. Ads run for 2 consecutive months free of charge (longer based on space available. Let us know when your ad is no longer needed). to 4quelle@ msn.com. Include your name & phone number or . We Find Solutions To IRS and State Tax Problems. FREE INITIAL CONSULTATION La Donna T. Kienitz Esq LadonnaKienitz@taxsolutionsite.com Appeals, Release of Levies, Offers in Compromise, Representation in US Tax Court THE LAW OFFICES OF BARNETT & RUBIN Jeffrey Corporation Centre Tel: Trabuco Road Fax: Irvine, CA rick@barnettrubin.com DISCHARGE TAXES BUSINESS LITIGATION AND TRANSACTIONS BUSINESS FORMATIONS MERGERS & ACQUISITIONS BANKRUPTCY & INSOLVENCY MATTERS CORPORATE REORGANIZATIONS MEDIATION A PLUS APPRAISALS Residential Real Estate Appraisals Historical Real Estate Appraisals Can determine Market Values from 1970 s to present. SFR s, Nov Units, Condos, Town Homes. 30 Yrs Experience State Certified $350 and up Fast, Reliable Service Expert Witness for Court John Rydell (562) jrrydell@aol.com

8 June 2015 Page 8 Cont. from page 4 AB 35 (Wolk, D - Davis) Earthquake Disaster Relief - This bill provides tax relief for victims of the earthquake in Napa, Solano and Sonoma Counties. It allows an extension of the deadline to file an amended tax return and apply losses from the disaster. In addition to supporting the bill, CSEA suggested that California automatically provide disaster relief to victims so they can file losses on their tax form the same way losses are applied with a federally declared disaster. SB 8 (Hertzberg, D San Fernando) Taxation: tax on specified services This bill proposes to expand the state s retail sales tax to services. The State Board of Equalization issued an estimated potential revenue increase of $122 billion dollars to be derived from taxation of services. CSEA joined 48 other associations and industries to oppose the bill. The bill has not yet had a committee hearing but the bill maybe the basis for a ballot initiative in Please support CSEA in opposing Senate Bill 8 that would place California businesses at a competitive disadvantage relative to other states by dramatically increase operational costs. This bill may also drive many small businesses into the underground economy, putting law-abiding services at an unfair disadvantage I strongly urge all members and their clients to become active and advocate. If you would like to review CSEA monitored bills go to CSEA website and click on Legislative Bill List for a table format showing the Bill #, author, description and position. Active support such as visiting or writing to your Assemblyman or Senator will assist in getting great legislation passed into law. UPCOMING PROGRAMS & EVENTS DATE PROGRAM / EVENT CPE SUBJECT LOCATION Jul 21, 2015 Dinner Meeting 1 Payroll Taxes Phoenix Club Jul 29 & 30, 2015 Event - SEE Class Part l National Univ, Costa Mesa Aug 18, 2015 Dinner Meeting - Special Occupations Phoenix Club Aug 18, 19, 20 Event - SEE Class Part ll National Univ, Costa Mesa Sept 25, 2015 Event - See Class Part lll National Univ, Costa Mesa PROFESSIONAL EDUCATION - we are a great source for continuing professional education (CPE)! If you re interested in becoming a member, please print and fill out our Membership Application. Our chapter is an approved CPE and CLE education provider through our chapter dinner meetings and seminars with the following: Internal Revenue Service (IRS), American Institute for CPAs (AICPA), California Bar Association - Taxation Section (CBA), and California Tax Education Council (CTEC). Dinner Menu For This Month CHEFS BUTTER LEAF SALAD with CRANBERRIES RAINBOW ROTELLI PASTA SALAD STUFFED CHICKEN BREAST NEW ZEALAND ORANGE ROUGHY CHEF S FARMERS MARKET STEAMED VEGETABLES MIX CLASSIC RICE PILAF BLACK FOREST CAKE NEW YORK CHEESE CAKE The Vision of OCEA is to serve, to represent the best interests of Enrolled Agents in Orange County, and to emphasize and enlighten the general public that an Enrolled Agent is the premier tax professional. The Mission of OCEA is to encourage professionalism, personal growth, and educational growth, while providing member benefits and enhancing the role of Enrolled Agents among the local governmental agencies, other professionals, and the general public. HARBOR BLVD KATELLA AVE CHAPMAN AVE BALL RD STATE COLLEGE BLVD Ball Rd to Phoenix Club Dr Right on Sanderson Ave. MAIN ST Meetings are held at the Phoenix Club 1340 S Sanderson Ave, Anaheim, CA :15 Board Meeting, 5:30 Social Time, 6:00 Dinner Hour, 7:00 CPE Program $40 for Member pre-registration before midnight on the Thursday prior to the dinner meeting; $45 for late or on-site registration and for non-members for meetings with 1 hour of CPE credit. Meetings with 2 hours of CPE credit are $50 and $55 respectively. To make a reservation go online to our web site and select the sign up button next to the event you would like to attend and follow the prompts. If you incur any difficulties signing up, contact Ken Noland at (714) , with a message including your name as it s registered at IRS and your phone number and your PTIN.