Braddon Group

As a CPA in tax, you know it’s vital to stay on top of tax reform. That means you’re watching the news coverage. You’re reading the articles. You’ve subscribed to e-News and various news alerts. You’re joining webcasts and taking self-study courses.

But there’s still a lot to learn, and some information just isn’t available yet.

The U.S. saw the most significant overhaul of its tax code in more than three decades at the end of last year. And when the Tax Cuts and Jobs Act was finally signed, it set off a guidance chain reaction at the Internal Revenue Service (IRS).

While processing its typically heavy busy-season workload, the IRS also focused on issuing guidance on several high-priority changes to allow for effective implementation of the new law. The IRS continues to issue news releases, notices, instructions and other forms of informal guidance on the most pressing items.

In the meantime, the AICPA Tax Policy & Advocacy team is advocating for additional guidance and legislative changes on the topics most vital to members and the profession.

We’ve identified areas requiring immediate IRS attention and offered comments to the IRS and Treasury to influence guidance in a way that best serves you. These items affect your business, and we hope to influence any Treasury or IRS guidance in a way that serves you best.

New Qualified Business Income (QBI) deduction is causing planning issues.

The changes to the QBI deduction raise questions regarding cashflow, entity structure and other tax planning issues. As noted in a comment letter on Feb. 21, the AICPA requested guidance on six specific items affecting QBI.

One key issue at stake is defining what activities constitute qualified business income under section 199A. Our position is that the Treasury and the IRS should permit pass-through businesses to calculate QBI based on the activity level rather than the entity level, which would allow a business to segregate its non-qualified trade or business from its qualified business to calculate the deduction. Allowing the separation and aggregation of different functions of the business will benefit CPAs.

Client-related meals are still in question.

On Apr. 2, the AICPA submitted a comment letter to the Treasury and IRS that addresses guidance needed on Sec. 274, the disallowance of entertainment, certain business related meals, and qualified transportation fringe benefit expenses. It’s not clear currently if certain client-related business meals or employer-provided snacks and other food products are still deductible under the statute. Sec. 274 also eliminates the deduction for certain employer-provided transportation fringe benefits.

A sticking point for CPAs is that we don’t know if business meals with current or prospective clients are still 50 percent deductible under Sec. 274. It’s also unclear if a business meal that’s part of an entertainment activity is still deductible. For instance, if a CPA were to take a client to a meal and then to a ballgame — which is clearly entertainment — is the meal still 50 percent deductible? Our position is that if the cost of the meal is separated from the cost of the entertainment, it should remain 50 percent deductible.

Other issues of note

The AICPA identified several technical corrections that are needed to “fix” the new tax law to operate as it was intended. As we see after the passage of most legislation, technical corrections are often needed to eliminate drafting errors and unintended consequences of the law. These items include:

• Individuals — charitable contribution deduction, 60 percent limitation (IRC Sec. 170, 461(l))
• Individuals — excess business loss limitation for individuals and self-employed (IRC Sec. 461(l), 172)
• Trusts and estates — AMT exemption increase (IRC Sec. 55)
• Businesses — NOL deduction for fiscal year taxpayers (IRC Sec. 172)
• Businesses — bonus depreciation applicable recovery period for real property (IRC Sec. 168)
• S corporations — AAA distribution rules (IRC Sec. 1371, 1377)
• International — stock attribution rules for CFCs (IRC Sec. 958) and repatriation tax impact on AMT and miscellaneous itemized deductions (IRC Secs. 56, 67, 965(c)(1) and 965(h)(6)(B)

It could take some time for Congress to address the technical corrections and for the Treasury and the IRS to release guidance on the above noted items. The AICPA is in constant contact with the Treasury, IRS and Joint Committee on Taxation to help expedite the process and put the profession first. Visit the Tax Reform Resource Center for the latest news, resources, tools and AICPA Tax Policy and Advocacy comments that you need to stay on top of what’s happening in Washington. We’re there advocating for you.

Kristin Esposito, CPA, MST, Senior Manager – AICPA Tax Policy & Advocacy, Association of International Certified Professional Accountants 

Amy Wang, CPA, Senior Manager – AICPA Tax Policy & Advocacy, Association of International Certified Professional Accountants

     

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Except for an expanding waistline, what could be risky about ice cream? Ask the small business owners overseeing an ice cream shop on the boardwalk that caters to summertime beach crowds. They’re a small, family-run business and their main revenue is generated in the months of June, July and August. The income from those months must sustain them through the slower months. What happens if they aren’t prepared for an event that affects their shop? Will their business survive? That’s where you come in.

Risk, schmisk?

Risk is a relative term to your clients. Some risks are minor and easily handled in the moment; for example, an employee fails to show up to work. Other risks pose an existential threat to the business, such as an accident, natural disaster or fire.

Helping clients understand the importance of planning proactively to mitigate risks is one of the most important parts of being a trusted adviser. Many business owners can rely on intuition or folk wisdom when considering the events that could hurt their business (“We haven’t had a flood in these parts since aught-six!”) Learning the reality of long odds can be a painful experience, though. And the more complex the business, the more things can go wrong. Talk to your clients about the many things they should consider when preparing their business for an adverse event, and you won’t just be their trusted adviser, you could be their hero.

7 risks small business clients need to think about

1. Being a part of a larger franchise – could your location suffer an unwanted spill-over from bad press at another location, or the parent company?
2. Succession planning – if the sole owner/operator became disabled, sick or died, who would take over? Would that person know what needs to happen and when?
3. Growing too fast – what happens if your business grows faster than anticipated? Could you serve all your clients and still manage other areas of the business? Can your cash flow keep up with your needs?
4. Supply chain disruption – what if KFC in the UK found itself in the middle of a chicken shortage? Are you prepared if your supply doesn’t arrive and you have nothing to sell?
5. Employee engagement – what happens if your employees are dissatisfied and post about it on social media, or are lured to a competitor?
6. Regulations/legislation – what will happen to your business if the law changes and it impacts what and how you sell?
7. Corporate social responsibility – what are you doing to build community engagement and take responsibility for any impact your business might have on the environment?

Next steps

Work with your client to identify the many things that could unexpectedly hurt their business, and draw up a solid, actionable plan to mitigate for the risks you’ve identified. A risk plan is a living document and should be reviewed and updated regularly, especially as the business grows. Be sure to check in regularly with your client to assess whether changes are needed. Your vigilance will earn you their respect and keep them coming back for your trusted guidance and knowledge.

The Enterprise Risk Management: Guidance for Practical Implementation and Assessment publication and the new COSO Enterprise Risk Management certificate program are two examples of how you can help serve your clients and help unlock the complexity of risk. The world of enterprise risk constantly evolves as new risks emerge every day; so, now’s the time to take control of your risk management strategy.

We are also happy to announce that as part of a renewed collaboration with the U.S. Small Business Administration, the AICPA recently signed an agreement that will help us to provide CPAs with more tools for their small business clients. For more information, visit the AICPA’s U.S. Small Business Administration Resource Center.

Chuck Landes, CPA, Vice President, Professional Standards and Services. Chuck Landes is Vice President of Professional Standards and Services at the AICPA. In this capacity, he oversees the technical activities of the Auditing Standards Board, Accounting and Review Services Committee, Accounting Standards Executive Committee and the PCPS Technical Issues Committee.

     

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What if you put together a budget but forgot about income taxes that would be deducted from each paycheck? That’s what happened to me when I graduated from college, so I can tell you: It would be a disaster! My first paycheck was a huge shock, since I was taking home much less than I had expected. But incorporating a few easy budgeting tips can help set you up for a path to prosperity and avert potential disasters.

Start early. Right after graduation, create a budget before committing to long-term expenses – like rent – so you start with a clean slate. The largest part of any budget will likely be housing costs. A good rule of thumb is that they should not add up to more than 30% of your salary. For example, if you make $50,000 a year, your total rent should be no more than $15,000 a year, or $1,250 a month. If you live in a high rent area, then 30% may not be realistic for an entry-level salary – which means you may have to scrimp on other items or find roommates.

Don’t overlook key items. In addition to income tax, include your monthly student loan payments in your budget. I recommend choosing an aggressive payment plan to minimize your overall interest costs because you’ll pay off the loan sooner. If you can’t manage more than the income-based payments, be sure to revisit this choice regularly as your career progresses. If you’re getting raises along the way, look for chances to switch to the higher payment plan.

Make savings a priority. Instead of saving whatever is left at the end of the month, a better approach is to budget your disposable income after you’ve factored in your savings. Do this by setting aside a designated amount at the start of each month. If you’re able to follow this approach, you’ll see that your savings will build steadily over time.

If your employer offers a 401(k) retirement plan, start contributing as soon as you’re eligible, and be sure to save enough to get the employer match, which is basically free money. By committing to these two habits early, you’ll have a head start on a down payment for a home and a head start on saving for retirement.

Note: You should actually prioritize this even above paying extra on student loans or other debt, since getting a guaranteed 100% or sometimes 50% on your money through the match will always beat any interest rate you’re paying on debt.

Bust budget leaks. Have you ever opened up your credit card statement and been amazed at how much is on there? Or by how little there is left in your checking account a few days before you get paid? Budget leaks—things like regular happy hours, and services or subscriptions you’ve signed up for but rarely use— are probably the culprit. Two steps can help cure the problem.

• Identify and cut back on unnecessary spending. One approach is to say so long to the temptation of credit cards and set up two checking accounts instead. Start with one for essential bills, such as rent, loan payments, savings, transportation and utilities, and deposit as much of your salary into that account as necessary each month. Put whatever is left into the second account. Use it for splurges and stop spending when you run out of cash.
• Anticipate potential budget setbacks. You can do this by setting up an emergency fund to dip into if you’re faced with an unexpected car repair, job loss or other financial crisis. Also remember that when you move into your first apartment, that first month’s rent plus required deposits and a variety of moving costs could consume your entire first paycheck. If you have savings in hand at graduation, this can help offset some of those initial costs and get you started free of debt.

It’s not unusual to find yourself in a financial pinch at times during your first 10 years out of college, but don’t panic as long as you’re keeping up with your bills and keeping track of your big picture goals. This is an exciting time in your life, and smart budgeting can help you really enjoy it.

As your financial situation becomes more complex you may be interested in seeking out the advice of a CPA financial planner. Visit www.findacpapfs.org to find a CPA/PFS.

Kelley Long, CPA/PFS, Unbiased Financial Planner, Financial Finesse. Kelley is a member of the AICPA Consumer Financial Education Advocates and is a resident financial planner with Financial Finesse, the provider of unbiased workplace financial wellness benefits to employers throughout the U.S.

     

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With some areas still dealing with the impact of last year’s disastrous hurricane season, it’s hard to believe we’re yet again in the midst of another one. This year, the National Oceanic and Atmospheric Administration (NOAA) predicts there will be 10 to 16 named storms, including up to four Category 3 or higher hurricanes. This is slightly above the 30-year average of 12 named storms, including three major hurricanes.

The extent of devastation in 2017 may have your clients wondering how they can prepare financially for worst-case scenarios. As their trusted advisor, you can help. Share these helpful tips, all of which can be found in the Disasters and Financial Planning guide for preparedness and recovery:

Protect your property

The most effective way to protect a home and belongings during a hurricane is to safeguard them beforehand. By taking the appropriate measures – called mitigation – you could avoid damages altogether, or at least reduce financial loss.

Start by taking an accurate record of your assets and possessions. Furniture, electronics, appliances, tools and keepsakes are just as important to protect as a house or vehicle. Perform a household inventory, then create a photographic record and save receipts for any valuable items.

Then, make sure you have all the home safety basics in place. For example, install smoke alarms and carbon monoxide detectors, know where to shut off utilities and hire a professional to anchor your home or put up hurricane shutters.

Protect your records

Coping after a hurricane is difficult under any circumstance, but losing vital financial, property or medical records can add even more stress and anxiety. Take a few hours to organize your important documents and put them in safe place, such as a safe deposit box or home safe.

Make sure you separate records and receipts for business and personal assets, since business and personal gains and losses are treated differently tax wise.

Also, remember that power may be out after a hurricane – which means ATMs and credit card machines may not work, and banks might be closed. Keep a sufficient amount of cash and traveler’s checks in a disaster supplies kit that you can get to quickly. And add extra money into an emergency fund. 

Protect your health and life.

When a hurricane is about to make landfall, your first priority will be to protect yourself and your family. What steps can you take to plan financially for a possible health- or life-threatening emergency? Make sure you have:

• Health insurance: If you or a family member are injured during the hurricane, coverage such as medical insurance, disability policies and long-term care can suddenly become important assets. Check coverage beforehand so you know what to expect.
• Disability insurance: If you’re injured and can’t go back to work immediately, disability insurance could be a source of monthly income to help pay bills.
• Life insurance: This is the absolute worst-case scenario. But if you lost your life during a disaster, life insurance could be the solution to keep your loved ones financially secure.

No one likes to think about worst-case scenarios, but it’s always best to be prepared just in case. That’s something your clients can appreciate. In the event of an emergency and to aid with recovery, tell them to contact their local American Red Cross chapter, the Federal Emergency Management Agency (FEMA), local emergency management offices or fire and police departments. For additional checklists and information, check out the disaster preparedness guide here.

Samantha Delgado, Manager – Communications, PR & Corporate Responsibility, Association of International Certified Professional Accountants

     

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First celebrated in 1910, Father’s Day is a day that goes far beyond greeting cards. It’s a day everyone honors fathers and all that they do for us. Whether it be advice, help from a handyman or just a hug, they deserve to be celebrated.

We asked CPA dads what they’re hoping to receive on their special day. Here’s what they said:

“All I want is a simple day with my wife, son, daughter-in-law, and my two-year-old grandson watching the U.S. Open at Shinnecock Hills. A battle down the stretch between Justin Thomas, Jordan Spieth and Tiger Woods would be nice also.”

Barry Melancon, CPA, CGMA

“Even though every day feels like Father’s Day to me, getting a call from each of my three sons still feels good. Getting my hands dirty in my garden is gravy.”

Edward S. Karl, CPA, CGMA

“My number one wish for Father’s Day would be having all my kids together in the mountains. Since they are all pursuing careers around the country — from Fayetteville, Arkansas, to Dallas, Texas, to Portland, Oregon —it’s hard to get them together, but we managed that over Memorial Day in Telluride, Colorado. So, I guess you could say I got my wish, just a couple of weeks early. I will celebrate with Jana, my wife of 34 great years as of June 9! Spending time with Jana, our dog Charlie, and being home will be the next best thing I could ask for. Oh yeah —  there’s always the standby socks and underwear (the line I always give my kids for any gift giving day). I had to throw that in for my fashion-minded daughter, Elise.”

Eric Hansen, CPA

“I would love to have a special breakfast with my children and with my two grandkids — a breakfast that spoils me with waffles or pancakes, Nutella, and my favorite “cortado” (a drink of espresso coffee with a small amount of steamed milk). And if one is looking for gift ideas, one cannot go wrong with a gift card from Harbor Freight Tools!”

Ash Noah, CPA, CGMA, FCMA

“What I would like most on Father’s Day would be a relaxed, lazy day, where we aren’t rushing around to get somewhere, there are no chores to do but maybe some family Monopoly, ping pong or badminton, and dinner out so someone else can do the dishes. And, of course, no squabbling from the teenagers.”

Chris Cole, CPA, CGMA, CFE, CFF

“For Father’s Day, I’m hoping to get outside with my kids. I work from home most of the time so getting some fresh air is a must. In my ideal world, we’d go see the wildlife at the Durham Life and Science Museum, get lunch at a diner-style restaurant and spend the afternoon watching the Norfolk Tides (Orioles affiliate) wipe the floor with the Durham Bulls.”

Carl Mayes, CPA

“While it may seem corny, to me Father’s Day is a day to be with family.  If could ask for one thing, I’d give anything for a chance for my family to celebrate the day with my mom, who passed away earlier this year, and my father-in-law, who passed away a few years ago.”

Scott Spiegel, CPA, CGMA, CITP

“What I’d like for Father’s Day? Sleeping late so I can dream about our upcoming trip to the mountains, time with my wife and kids (after I wake up), a cold IPA, a sizzling hot steak (cooked medium), and my oldest daughter to have fun as we drop her off at her first ever sleep-away camp on that day. And maybe 24 hours where I’m not thinking about what ‘qualified business income earned in a trade or business’ is, and is not!”

Bobby Schroeder, CPA

What are you most looking forward to this Father’s Day? Tell us in the comments below!

Elizabeth Rock, Associate Manager – Enterprise Social Media, Association of International Certified Professional Accountants

     

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Some career paths move in a straight line. Others take twists and turns. Opportunities sometimes crop up when we least expect them, and we have to weigh the pros and cons to determine our next steps. If you were asked ten years ago to accurately describe your career path over the next decade, could you? I know I couldn’t.

I started my career at a large firm in audit and now I’m on an entirely different path that I would have never predicted. The winding road that led me to where I am today was built upon a series of experiences and intentional decisions along the way. Could your career course use more direction? Here are some tips to get on track, based on my own personal experiences throughout my career:

1. Keep your options open. Try getting a feel for a number of different practice areas early on in your career. As you try new things, ask yourself: does this work feel fulfilling? Am I enjoying it? I started my career at a Big Four firm, which exposed me to many different areas of public accounting. I realized that if I wanted to experience a different side of the business, I had to speak up. I quickly learned what excited me – and what didn’t.

2. Follow what fascinates you. Find your passion. To help you find it, consider what topics you can’t stop reading or talking about. I found my passion unexpectedly. During the early years, my friends and family often came to me with tax and personal finance questions, assuming that as a CPA, I could be a resource to them. Up to that point, my work experience had been on the audit side, but my interest was piqued. As I researched solutions for their questions, I became more interested in the information I was reading. This ultimately led me to leave the large firm for a regional tax firm, where I worked in tax compliance and planning for affluent individuals and closely held businesses.

3. Expand your horizons. Once you find your passion, don’t stop there. Continue learning. Whether it’s going to conferences, pursuing credentials or learning new skills that compliment your career. While my tax work was rewarding and extremely important, I began learning that tax planning was the jumping off point, and I wanted to help clients with more. So I joined an independent financial planning firm and learned as much as I could about planning services– ranging from tax and estate to retirement, investment and insurance planning. I also got certified through the AICPA’s CPA/PFS credential program.

4. Be courageous enough to take risks, and enjoy the rewards. I know it is easy to stick with what you know, but paying attention to your interests and steering your career accordingly will leave you feeling more fulfilled. A little over a year ago, I founded my own independent financial planning firm. Taking this leap has been the most intimidating and exciting decision in my career journey.

 

These diverse experiences led me to recognize great opportunity and personal satisfaction. I created a practice where I focus first on my client’s goals and aspirations and then develop financial recommendations to meet them. I wanted to partner with clients to help them build meaningful and purposeful lives, and use the knowledge and experience I had acquired along the way to create customized and collaborative solutions.

While the risks of starting something from scratch were daunting, the rewards have been immeasurable. I’ve had the freedom to create not only a career, but a firm that is founded on my values and principles – balance, growth, freedom and integrity.

Where do you find yourself on your career path? Are you satisfied in your chosen field? What excites you? Look around at those in your field and observe what makes them successful and satisfied, find a mentor, experiment in different practice areas and business models, invest in yourself, be bold enough to take risks, and most of all, enjoy the journey.

Join me at the ENGAGE Conference, June 9-14 in Las Vegas, NV or online. I will be leading a session on making intentional career choices on June 12 at 4:05 p.m. PT.  Additionally, be sure to check out the new Planning & Tax Advisory Services hub site on aicpa.org for helpful tools, learning opportunities and more.

Mark Astrinos, CPA/PFS, Principal and Founder, Libra Wealth. Mark works with clients across the country to design the life they want by integrating their financial resources and human capital. Drawing on his tax and business background, he focuses not only on creating wealth, but finding a healthy balance between money and life. Mark is a 2017 graduate of the AICPA Leadership Academy.

     

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The word “blockchain” has been tossed around as if all blockchains are the same. Real-time access to information, increased transparency and encryption are standard benefits of any blockchain. However, there are two different types of blockchains: public and private, both of which are important for CPAs to understand so you can decide which option is better for your organization or firm.

Public blockchains

The idea of a public blockchain is what most people think is, and what technology purists would consider, the “real blockchain.” Completely decentralized and open to any individual or institution to join (known as members in blockchain parlance), the most well-known example of a public blockchain is the one that runs Bitcoin.

While a purely public option does include many of the benefits associated with blockchain technology, these same attributes can make implementing a blockchain less than ideal for business purposes. By allowing anyone and everyone to join a public blockchain, the approval and consensus process can take too long for it to be it useful for the volume of daily transactions. And depending on how data is approved, the electrical cost can be too expensive for practical use, considering the sheer volume of information processed by most organizations.

 

Private blockchains

A private blockchain network is usually established by an organizing entity, which can be a CPA firm or any other company that lays the technical foundation and groundwork for data verification and approval. The organizing firm also selects which members have access to certain types of information.

Because members of a private blockchain are usually known to one another, the time and energy necessary to confirm and verify information and transactions are lower than a public blockchain option.

Bonus blockchain benefits

Finally, since the organizing firm lays the ground rules for what members have access to, it’s possible for auditors, regulators and other stakeholders to also have access to some blockchain information without compromising the integrity of organizational information.

Cost savings, transparency and efficiency effects are some of the reasons why private blockchains make more sense for business implementation. This is why most organizations that have adopted blockchain technology, have done so using a private blockchain. In fact, some of the largest organizations in the world – including British Airways, FedEx, IBM, UPS and Walmart – have already adopted blockchain technology.

If your organization is interested in adopting blockchain technology now or in the future, keep in mind you need to operate in a cloud-based environment. To help stay on top of this technological tidal wave, CPAs in firms of all sizes should stay up-to-date on how the technology is impacting the profession. If you’re looking for more information on what blockchain will do, and already is doing to audit and attest work, a great place to start is the AICPA’s whitepaper on how blockchain could change auditing.

Sean Stein Smith, Assistant Professor at Lehman College, City University of New York. Sean is the co-host of the Entrepreneurial CPA show, and a recognized expert in the intersection of blockchain and accounting. His work and research have been featured in dozens of articles and media interviews. Follow Sean on Twitter @seansteinsmith.

     

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In a rapidly evolving business environment with new technologies changing the way we work, it’s more important than ever for CPAs to commit to performing high-quality audits. That’s why the AICPA launched the Enhancing Audit Quality initiative, or EAQ, in 2014. Through EAQ, the AICPA analyzes data to determine the areas where firms need to improve quality most. Then, we develop relevant, free resources and education firms can use in their practice.

In the past few months, EAQ has helped the profession make further progress toward improved audit quality. Read the “Enhancing Audit Quality: 2018 Mid-Year Progress Report” below to learn more about that progress and to access free resources you can use to improve your audits.

 See previous reports on EAQ’s progress at aicpa.org/EAQhighlights. And if you’d like to learn more about some of our areas of focus, be sure to attend ENGAGE this June, which will feature sessions on risk assessment, documentation and other auditing topics.  

Carl R. Mayes, Jr., CPA; AICPA Senior Manager, Special Projects – Public Accounting, Association of International Certified Professional Accountants

     

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“Wouldn’t you know IRS extended filing season an extra day the year I retire.”

• Nameless but real CPA

On April 17, what was supposed to be the final day for Americans to file 2017 tax returns, Internal Revenue Service (IRS) hardware issues resulted in the outage of several key online systems. The timing couldn’t have been worse. The website crash forced the IRS to delay the tax deadline by one day. It also served as a warning sign for those of us advocating for the agency’s modernization. And don’t tell that CPA that he actually got an extra three in his last busy season. Gravy, as it were.

The day after the technology collapse, the Taxpayer First Act — described as the most transformative revisions to the IRS in 20 years — won unanimous passage in the U.S. House of Representatives. The package of nine bills is intended to redesign the IRS to emphasize customer service, new taxpayer appeal rights, improved responsiveness to victims of identity theft and modernization of technology.

In steering the effort, House Ways and Means Oversight Subcommittee Chairman Rep. Lynn Jenkins (R-Kan.) said “[a]s a CPA, I’ve seen first-hand countless examples of the IRS being out of date with technology and out of touch with the needs of the taxpayer.”

The legislation was rightly focused on taxpayers. But as the Senate considers its own approach to modernizing the IRS, I want to put in a good word for CPA tax practitioners.

You may recall, the AICPA led an effort among several professional organizations and former IRS executives that provided IRS modernization recommendations to Congress last year. In light of the passage of tax reform legislation, the recommendations are particularly critical.

One of the key elements of our proposed framework was the designation of an executive-level “practitioner services” unit.

Recommended features of a dedicated “practitioner services” unit ·         Centralize and modernize IRS’s approach to tax practitioners ·         Provide tax practitioners with an online tax professional account with immediate access to all of their clients’ information ·         Offer a centralized login system on a secure platform to allow for a single sign-on authentication of the practitioner (as opposed to authentication before accessing each client’s account) ·         Provide a digital mechanism for power of attorney and disclosure authorization ·         Replace the Centralized Authorization File with a consolidated online solution using electronic signatures and an algorithmic-driven approval process that is as close to real time as possible ·         Communicate directly to tax practitioners and allow practitioner correspondence with timely acknowledgement of receipt ·         Offer robust practitioner priority hotlines with higher-skilled employees ·         Assign customer service representatives to address issues that practitioners are unable to resolve through the priority hotlines

Over time, the IRS has established a number of functional departments. Unfortunately, these units are not coordinated in a way that enables practitioners to access quickly critical information, such as their clients’ account status. Nor do the current teams or processes systematically solicit, gather or evaluate practitioner feedback from a quality review perspective. More importantly, practitioners represent millions of taxpayers every year. A practitioner services unit would benefit both the taxpayers served by the practitioner community and allow the IRS to leverage their limited resources in serving unrepresented taxpayers.  

Such a unit would allow the IRS to rationalize, enhance and place under common management the many current, disparate practitioner-impacting programs, processes and tools. This coordination and improved access of information would avoid practitioners having to submit the same information multiple times to multiple IRS employees, for example.

Finally, to ensure the success of the practitioner services unit, it is essential that these services approximate comparable private sector services and allow practitioners to resolve account issues for their clients quickly and efficiently. It’s a win-win for taxpayers.

In a recent interview, former IRS Commissioner John Koskinen remarked that “[o]nce people start to focus on what does it take to run this place appropriately, you’re having the right discussion.” And as one of the IRS’s most significant stakeholders, we are committed to being part of the discussion — and the solution, as well.

Edward S. Karl, CPA, CGMA, Vice President – Taxation, Association of International Certified Professional Accountants

     

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Entrepreneur Mikaila Ulmer founded Me & the Bees Lemonade when she was just four years old. At age 12, Mikaila won funding from Shark Tank investor Daymond John. Now 13, her product line is available at Whole Foods Market stores. Mikaila represents a growing movement of young entrepreneurs throughout the country.

Children are watching their entrepreneurial parents every day and they’re picking up on best practices. Kids are much further ahead in their understanding of the business world than what we, as parents, realize.

You can help your kids get involved and start thinking about business. Here are five TV shows you can watch with your young children this summer. All shows are age appropriate and have an element of excitement to get your child’s business ideas flowing:

1. The Toy Box

In this ABC reality series hosted by Eric Stonestreet (Modern Family), toy inventors pitch their prototypes to a panel of toy experts who evaluate the products for price, market viability and safety. The experts send the best ideas to “The Toy Box” where a panel of kids judge the toys and decide the ultimate winner. At the end of the season, the winning toy is manufactured and distributed by the toy company Mattel.

The show is appropriate for kids under age 12 and fun for the whole family as you weigh the merits of each toy and hope your favorite will win. Season two aired in the fall of 2017. All episodes are available on demand through your cable provider and via streaming services such as Hulu, Sling and YouTube TV.

2. Biz Kid$

Now in its sixth season, this Emmy Award-winning public television series presents a mix of sketch comedies, animation and stories featuring real-life young entrepreneurs. Though the presentation is somewhat disjointed, it has excellent educational value, including free lesson plans, outreach activities and a monthly e-newsletter.

A unique element of this show is that it includes charities and other non-profit business ideas. Clips are available online along with a locator tool to see when the show will air on your local PBS station.

3. Master Chef Jr.

This popular reality cooking show gives kids ages 8 to 13 the chance to showcase their culinary creations through a series of challenges. The kids learn about cooking and the restaurant business.

Did you know egg ravioli can be a real money maker? If you master the technique, it can fetch $30 a plate! Season 6 began airing March 2, 2018 on Fox. Previous seasons are available on demand via the Fox website and various streaming services.

4. Shark Tank

For older kids, teenagers and adults, this series teaches valuable lessons on how entrepreneurs can successfully pitch their ideas to angel investors (wealthy individuals) and raise first-round capital. Some college business entrepreneur classes actually require students to watch Shark Tank. My daughter shared that with me when I suggested she watch it.

Season nine on ABC wrapped up in February 2018. Reruns from previous seasons air nightly on CNBC.

5. Small Business Revolution – Main Street

With season three scheduled to premiere in the fall of 2018, each of the show’s first two seasons featured a small American town where experts Amanda Brinkman and Robert Herjavec provided free consulting and $500,000 in free marketing services to revitalize small businesses.

On main streets across America, CPAs live their own dreams of small business ownership and help other entrepreneurs of all ages do the same. And we’re here to assist CPAs along the way. Check out these key resources for small firms and their clients:

• Small Firm Resources
• Private Companies Practice Section (PCPS)
• The Financial Reporting Framework for Small- and Medium-sized Entities (FRF for SMEs)

Carl Peterson, Vice President – Small Firms, Association of International Certified Professional Accountants

     

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