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october 2015
A MESSAGE FROM THE NCSA PRESIDENT ronald d. powellTEAMWORK–Ambition–A journey of a thousand miles sometimes ends very, very badly. Team builders see challenges, not roadblocks. 
· Are ruled by the hopes of success not the fear of failure. · Accept and embrace adversity as a chance to learn and excel. · Never let the pursuit of perfection hinder progress. "You do what you can for as long as you can, and, when finally you can't, you do the next best thing. You back up but you don't give up." - Chuck Yeager We just completed our Fall PAS, SSARS 21 Reporting Requirements and Practice Management. GearUp provided excellent speakers on a timely topic, and those who attended are ready for the challenge of updating our reports, letters, and financials before December 15 to best serve our clients. Throughout the two days we also were given good practice tips and tools to enhance our bottom line and to meet the needs of our clients in a more efficient manner. A special thanks to Stephen Metelits who chaired this event and made it a success. We also have a new member Trina Stahl (Charlotte) who is working in Jense Creighton's office. Welcome her to NCSA! On October 23 we will have our annual meeting with the local tax agency rep- resentatives–IRS, NC DOR, and NCDivision of Employment Security. Each agency will bring us the latest news, and we will have discussions on several topics. Details on this event are included later in this newsletter. Hope to see you at Holiday Inn Airport, Greensboro. It already is time to think about the upcoming tax season. Prepare yourself by taking advantage of PTI 1040 Tax Conference in Greensboro, Charlotte, or Myrtle Beach the week before Thanksgiving. Register through the link on our website at Events and remember your participation supports NCSA. A final note, I always have been impressed by our volunteers who, each year, step up for all of our events, provide support many don't see, offer guidance and ideas. These generous efforts keep NCSA the best organization in North Carolina protecting the rights to practice for Accountants and Tax Professionals. We are the only organization in the state working in the best interest of both professions. In the past few weeks we learned Jim Starnes in Charlotte was hospitalized and unable to work. Some of our members donated time by going to his office to assist his staff in completing tax returns. Benefits of NCSA are priceless! Our prayers and thoughts for a speedy recovery are with Jim and his family. |
chapter news
October is typically the conclusion of the tax season (finally!!!), now its on to the education season and taking time for fa mily. Don’t forget your chapter meetings as you start planning education and CE before year end, our chapters host speakers with great topics monthly. Enjoy the cooler weather and fall activities, and remember that your organization is the place for networking and education to support your accounting career!
Burlington
The Burlington Chapter met on Thursday September 24, 2015 at 6:30 p.m. at Kimbers Restaurant in Gibsonville. Wehad no Speak er Program this month so we had fellowship and discussion. President Jim Holmes gave us a handout on the Affordable Care Act Advanced P remium Credit and a Thomson Reuters Checkpoint handout on the Projected 2016 Inflation-Adjusted Tax Brackets and Other Key Figures. He also gave us a report on the most recent meeting of the National Society of Accountants Federal Taxation Committee, of which he has been a member for several years. Our next meeting will be onThursday, October 22, 2015 at 6:30 p.m. at Kimbers Restaurant in Gibsonville. Lauren Benbow from the North Carolina Secretary of State office will be our Guest Speaker. The Burlington chapter normally meets on the 4th Thursday of each month . For more information about the Burlington chapter contact Jim Holmes at jholmes.acct@yahoo.com
Cape Fear
The Cape Fear chapter met on Monday, September 21 at The Brass Lantern in Dunn. Chapter Promotions Chair Marsha Wheeler and Board Member James Upton spoke on NCSA, Our Chapters and Membership. Those in attendance were pleased when Marsha broke out a platter of her fa- mous brownies; we know there is a secret ingredient but Marsha is not telling! The chapter normally meets the 1st Monday after the 15th each month. For more information contact Merry Arnett at mparnett@embarqmail.com
Central
The Central Chapter met on Monday, September 28th at Sagebrush Steakhouse in Asheboro. NCSA and NSA Past President Paul Bumgarner, spoke on the ACA and Employers. Next month will feature a presentation by NC Secretary of State’s Annual Reports Supervisor Keith West on Monday, October 26th. Upcoming: Legislative Meeting at Pinewood CC inAsheboro with US Rep Renee Ellmers (R-NC 2)and other invited legislators. All NCSA members are welcome to attend, the cost is $25; please contact James Upton at jamesupton@rtmc.net for more information. Central Chapter meets on the 4th Monday of each month. For more information contact Kevin Robinson at kevrob@triad.rr.com
Charlotte
The Charlotte Chapter met on Thursday, September 17th at Captains Cove in Matthews. NSA Secretary-Treasurer Curt Lee was on hand to discuss the activities of the NCSA Legislative Committee, and the NSA Right to Practice Committee, both of which he has been a member for many years. The October meeting speaker will be announced. The Charlotte Chapter normally meets on the 4th Thursday of each month. For more information contact Louise Pistole at pistole9@windstream.net
Eastern
The Eastern Chapter met at H&R Block in Greenville. The meeting featured a presentation from Paul Bumgarner on ACA Mandates and Subsidies. The October meeting will be announced. The Eastern chapter meets on the 4th Tuesday each month at H&R Block in Greenville. For more information contact Karen Spruill at karen.spruill@hrblock.com
Hickory
The Hickory Chapter met on Monday, September 28th at O’Charley’s in Hickory. Lauren Benbow ofthe NC Secretary of State’s office spoke on Preventing Elder Fraud. The Hickory Chapter normally meets the last Monday of each month. For more information contact Susan Dale Moore at susan@dalesaccounting.com
Piedmont
The Piedmont Chapter met on Thursday, September 24th at Sagebrush Steakhouse in Kernersville. NCSA Past President David Hooker led a SSARS 21 Roundtable discussing the new standards effective in December. Piedmont Chapter normally meets on the last Thursday of each month. For more information contact Carol Smith at clstaxes@bellsouth.net
Raleigh
The Raleigh Chapter met Tuesday, September 22nd at Manchesters in North Raleigh. Lauren Benbow of the NC Secretary of State’s office spoke to the chapter on Preventing Elder Fraud. Details of the next meeting will be announced. The Raleigh Chapter meets on the 4th Tuesday of each month. For more information contact Stephen Metelits at metelits@usa.net
Sandhills-Sanford
The Sandhills-Sanford Chapter met on Thursday, September 24th at Hickory Tavern in Pinehurst. Lauren Benbow ofthe NC Secretary of State’s office spoke to the chapter on Preventing Elder Fraud. Thenext meeting will be on October 22nd at Bay Breeze in Sanford with NCSA Past Presi- dent Stephen Metelits speaking on the new Capitalization of Property and Repair Regulations. For more information contact Ga ye Saunders at gaye@saundersaccounting.org
Western
Western Chapter normally meets the 4th Tuesday of each month. For more information contact Beth Evans at precisionacct@mindspring.com.
Wilmington
The Wilmington Chapter met on Monday, September 28th at McAllisters Deli in Wilmington. Guido Van der Hoeven spoke on the new Capitalization and Repair Regulations. Contact Chapter President Marie Izzo for more information at marie@johnizzocpa.com
Louise Pistole, NCSA State Director
I want to share with you some information about the ACAT (Accreditation Council for Ac- countancy and Taxation) credentials. ACAT's accreditation is a prestigious and hard-won recognition. It offers four accreditation:
1. Accredited Business Accountant/Advisor
2. Accredited Tax Preparer
3. Accredited Tax Advisor
4. Accredited Retirement Advisor
Accredited Tax Preparer (ATP) and Accredited Business Accountant/Advisor (ABA) are ex- empt from taking the Annual Federal Tax Refresher course and exam and qualify for the IRS Annual Filing Season Program Record of Completion.
Earn the ATP or ABA now! Exams are offered November 1-30.
HB 117 contains a provision that the sales price of an aircraft sold at retail on or after October 1 is subject to the 4.75% general state tax rate with a maximum tax per article of $2,500. The sales price of an aircraft includes all accessories attached to the aircraft when it is delivered to the purchase. The
new tax rate replaces the old rate of 3% and the old maximum of $1,500.
Appeals Arbitration Eliminated
In Rev. Proc. 2015-44, the IRS announced the elimination of the Appeals arbitration program. The program allowed taxpayers to expedite the appeals process. During the 14 years in which arbitra- tion was available only two cases were settled using arbitration. With the general lack of demand for
arbitration and the fact that its use as a tool to settle disputes without litigation has not proven successful, the IRS is eliminating the program. Although Appeals arbitration is being eliminated, taxpayers may be eligible to request mediation for unresolved issues that remain after completion of settlement discussions in Appeals.
Starting October1, businesses must use the new chip-card system to process credit and debit card charges. Banks should have replaced their magnetic stripe cards with chip-card technology. These systems have been used for years in Europe.
After that date, merchants that haven't switched to the Europay MasterCard and Visa standard will be liable for losses when they physically accept counterfeit cards. These cards are more secure than the "old" magnetic stripe cards.
Pub 4163 announces the IRS has implemented a Device ID field for electronic return filers and preparers. Device ID is available for processing tax year 2015 and will be required starting in pro- cessing year 2016.
The Device ID should contain unique data that will be accessed and transmitted by the software used to create the electronic return: the software should request two specific pieces of unique infor- mation (i.e., SMBIOS UUID and primary hard drive serial number) of the device used to create an elec- tronically filed return. These two pieces of information should be concatenated together with no sepa- rators. The string of characters should be run through the SHA-1 algorithm and the resulting hash is the
Device ID that will be inserted into the return and submitted to the IRS within the return header.budget bill
At long last (almost three months late) the Legislature has passed and the Governor has signed House Bill 97 that lawyers will call Session Law 2015-241 and what we call the budget. It contains lots of money issues, many of which have been reported in the media. This article does not go into most of those issues; you can read the bill yourself (it is on the NC Legislature web site).
The Legislature created an Information Technology (IT) Department, headed by the Chief Infor- mation Officer (CIO). The purposes of the CIO is to coordinate the state's IT programs, move the state to more common hardware and software where it can get the state as paperless as possible and make all of this as user-friendly as it can. Current IT operations will report to the CIO.
Medicaid as provided by the state is available to those categorically needy with a family size of 1 and an annual income of no more than $5,208 to a family of 8 no more than $12,412 and to those medically needy with a family size of 1 and an annual income of no more than $2,904 to a family of 8 with no more than $6,300:
1. Elderly, blind, and disabled people who have incomes equal to or less than 100% of the fed- eral poverty level.
2. Pregnant women with incomes equal to or less than 196% of the federal poverty level.
3. Infants under 1 and children aged 1-5 with family incomes equal to or less than 210% of the federal poverty level without regard to resources.
4. Children aged 6-18 with family incomes equal to or less than 133% of the federal poverty level without regard to resources.
Some of the positions in the Department of Environmental Quality are transferred to the Depart- ment of Natural and Cultural Resources. Some of the positions may be reclassified or eliminated as necessary for the efficient operations.
Nonprofit corporations no longer will get special license plate approvals from the Division of Tourism, Film, and Sports Development but this duty will fall under the Department of Commerce un- der the Board of Travel and Tourism. More than 300 applications for the "Travel and Tourism" plate must be received before a plate can be designed and issued.
A city or town may levy an annual municipal vehicle tax. The municipal vehicle tax levied may not exceed $30 per vehicle. Not more than $5 of the tax can be used for general purposes and not more than $5 can be used for public transportation with the remainder going to public streets.
The Division of Motor Vehicles is charging more for regular drivers licenses going up from $4 per year to $5 per year (licenses are good for different numbers of years depending on age). Learner's permits are going up from $15 to $20. The charge for a duplicate license goes up from
$10 to $13. The cost of a driver improvement class (if you don't know what it is, you haven't been convicted) goes up from $50 to $65. The nonrefundable application fee for a commercial learner's
permit goes from $30 to $40, and the commercial driver's license fee goes from $15 to $20 for each year for which it is good. Each application for a certificate of title goes from $40 to $52, but for one- day service the charge goes from $75 to $98. The annual license fee for a private vehicle goes from $28 to $36 (for vehicles for over 15 passengers, from $31 to $40), but for a veteran who suffered a disabil- ity during a war and getting a vehicle from the government the fee goes from $1 to $1.30.
The cumulative amount of funds expended for light rail transit system projects shall not exceed the sum of $500,000 per project.
For tax returns for tax years beginning on or after January 1, 2016, the new standard deduction is $15,500 joint, $12,400 head of household, and $7,750 single or separate. For tax years beginning on or after January 1, 2015, itemized deductions include charitable contributions and mortgage expense and property tax not to exceed $20,000. The personal tax rate is 5.499% for tax years beginning on or after January 1, 2017.
The sales tax is expanded to include repair, maintenance, and installation services effective March 1, 2016.
Candace Cansler, NCSA Executive Director
You should have received your NCSA 2015-2016 membership directory in the mail. It has been brought to my attention that there are problems with some phone and fax numbers. This “Oops” happened to some records with the same last name (but notall) when data was sorted. Please make the following cor- rections to your copy of the NCSA 2015-2106 membership directory:
Phone FAX
Isabelle Barber 704-782-8922 none
Phillip W. Barber 919-929-5640 919-929-2205
Ruby D. Black 704-435-1199 704-435-1112
Michael J. Black 910-484-3800 910-484-3980
Jean B. Brown 336-243-1681 336-248-4698
Randy Brown 704-365-3925 704-365-3946
Donald W. Brown 919-782-3366 919-782-2364
W. Franklin Brown 919-965-6869 919-245-0444
Paula B. Brown 919-644-0444 919-245-0444
Betty T. Hudson 919-772-8341 919-772-8133
Cheryl C. Hudson 910-624-8520 910-223-0300
Murlee P. Moore 828-327-3229 828-345-0727
Susan D. Moore 828-396-5140 828-212-0344
Margie B. Smith 336-227-0772 none
Carol L. Smith 336-788-4050 336-650-9811
Neil Patrick Thomas 336-992-2154 336-992-2153
Catherine E. Thomas 919-542-4069 919-542-4069
The NC DOR announced that they now accept e-filed corporate income tax returns. After years of waiting, they finally did it. In testing are partnership returns. They could make it in 2016. Estates and trusts will follow partnerships.
In Notice 2015-23 the Department of the Treasury announced that, as of January 1, 2016, the IRS will not accept payments greater than $99,999,999 because those checks must be processed manually. Two or more checks will be required or taxpayers should use Fed Wire to make payments.
In Notice 2015-63, per diem rates beginning on October 1 were announced. Meals and incidental expenses for the transportation industry are $63 for the continental US and $64 for travel outside the US.
For incidental expenses, the deduction is $5 per day in or outside the US.
The per diem allowance for high cost areas is $275 and for low cost areas $185. Most of the locali- ties remain the same as last year. The following have been added to the high cost localities: Mammoth Lakes, CA; Grand Lake, CO; Silverthorne/Breckenridge, CO; Traverse City/Lakeland, MI; Hershey, PA; and Wallops Island, VA. The following locations have changed the portion of the year in which they are high cost: Napa, CA; Talluride, CO; Miami, FL; Martha's Vineyard, MA; Nantucket, MA; Jamestown/ Middletown/Newport, RI;; Charleston, SC; and Jackson/Pinedale, WY. The following localities have been removed from the high cost list: Sedona, AZ; Santa Cruz, CA; New Orleans, LA; Baltimore City, MD; Cambridge/St. Michaels, MD; Glendive/Sydney, MT; Conway, NH; Glen Falls, NY; Tarrytown/White Plains/New Rochelle, NY; Kill Devil, NC; and Williston, NC.
Mail To Candace Cansler NCSA Executive Director Post Office Box 1126 Conover, North Carolina 28613 |
