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From the President
PLANNING FOR NEXT YEAR…OPPORTUNITY OR FAILURE?
By Rodney J. Couts, EA, President
It’s that time of year again! I believe that this is the time of year when you should be analyzing the past tax season, focusing on what went right, what needs improving as well as how to go about making those improvements, and then defining your objectives for the coming tax season.
This year will be interesting with the new tax law firmly in place. With this being the case, we need to think about what clients we may be losing and how we plan to go about replacing any lost revenue. Even for those who will continue as clients, we need to ask ourselves if the pricing model we are following will produce the revenue that is needed to operate our businesses profitably.
Some of our clients are going to be suggesting that the “simplified” tax law will require us to do less work for them and should result in a price decrease. In a few cases, that may be true when it comes to work, but what about the price? Have your costs decreased? I know the answer! The question is rhetorical. Have you developed your game plan for responding when clients are expecting a lower price?
For several of our clients, the federal return may become a bit more simplified, but remember that California is largely operating under the rules prior to the Tax Cut and Jobs Act of 2017 (TCJA). Expecting California to conform to the federal changes is unrealistic, so we are now operating under two tax systems that are more non-conforming than ever.
As a California tax professional, your knowledge requirements are going to be greater than they were before the enactment of TCJA. You are going to need to have a thorough understanding of both taxing systems (federal and California) to prepare a tax return for 2018 through 2025, and this is going to require effort on your part to stay on top both taxing systems. Does this really sound like a scenario where a discounted fee is warranted?
We must be fair to our clients when it comes to pricing, ethically we are bound by such a requirement. But we must remind ourselves that the rules have changed, and as a tax professional, they haven’t changed in a way that makes our job easier in most cases.
During the last Presidential election cycle, I listened carefully to the messaging being delivered by the candidates and thought to myself I need to change if what is being proclaimed comes to fruition. Some of the promises have materialized, and those that have may be impacting your business this year. Fortunately for me, I began to transform my business focus based upon what I believe was possible, so I’m well positioned to weather any “storm” this coming year.
How about your practice?
Respectfully,
Rodney J. Couts, EA
President
Announcing a New CSTC Member Benefit!
Exciting news! Office Depot has partnered with us on a small business savings program to provide discounts in-store and online, plus fantastic new benefits. More than just deals (that extend to almost every item!), you’ll also get access to Office Depot’s new technology services, local Business Pros and more. Savings include 20% to 55% off item office supply core list, 20% to 55% off retail on cleaning & break room items, 10% off branded; 20% off private brand ink & toner core list, Average 10% off retail on 200 technology core items, Free next-day shipping on orders of $50 or more, and SIGNIFICANT savings on copy & print.
Sign up information for the Office Depot Small Business Savings Program will be sent out to CSTC members only.
Welcome New CSTC Members!
Please help us in joining our newest CSTC Members!
Joseph Bellavia
San Diego-North County Chapter
Elsa Berneloz
San Jose Chapter
Richard Boner
Greater Long Beach Chapter
Teri Cohen
San Diego-North County Chapter
Rubi Cruz de Arrieta
San Jose Chapter
Surjit Dhaliwal
Central Valley Chapter
Anita McCabe
Central Valley Chapter
Cindy Rosales
San Diego-North County Chapter
Albert Sanchez
Temecula Valley Chapter
Upcoming VeriFyle Demos
CSTC and VeriFyle have partnered to offer all CSTC members access to VeriFyle ProTM, VeriFyle’s premium secure online document sharing and messaging service at no cost to CSTC members.
VeriFyle is an extremely simple-to-use cloud storage and sharing tool that offers the most powerful encryption technology available on the web (Cellucrypt®), using six unique encryption keys for each individual item stored or shared in VeriFyle.
Not only does VeriFyle help to keep your communications private and secure, it also provides a polished and professional way to present yourself to existing and prospective clients.
*Members will be notified of the November VeriFyle demos once they are scheduled.
60 Hour Online QE Course
45 Federal Law Hours & 15 CA Hours
Powered by The Income Tax School
If you wish to become a tax preparer in the state of California, you need to visit the California Tax Education Council (CTEC) website as you will need to register to become a California Registered Tax Preparer (CRTP).
How to Become a CRTP and Who Must Register?
All CTEC Registered Tax Preparers (CRTPs) must…
- First complete 60-hours (45 hours federal and 15 hours state) of qualifying tax education from a CTEC Approved Provider
- Obtain a PTIN (Preparer Tax Identification Number) from the IRS
- Purchase a $5,000 tax preparer bond
- Register with CTEC within 18 months from the completion date on the certificate of completion
Comprehensive Tax Course Package Includes:
- Online, self-study beginner tax course
- Study anywhere/anytime with an internet connection
- No prerequisites required.
- Divided into 4 modules, 5 chapters per module, a total of 20 chapters, a total of 60 CE credit hours
- FREE academic support from tax school instructors provided by email
Price: $299 online only or $351 online with books
With Books:
Order this course with books and you will receive all of the reading materials that are viewable online to be printed and bound for your easy reference while completing the course. (Prices of books are included in shipping costs.)
November Chapter Events
November 1, 2018
Topic: Tax Cuts & Jobs Act of 2019: Tips, Strategies, and Tricks
2 Federal Update Hours
San Gabriel Valley Chapter Meeting
November 6, 2018
Topic: 2018 Federal Update
2 Federal Update Hours
East County San Diego Chapter Meeting
November 7, 2018
Topic: California Tax Update 2018
2 California Hours
Temecula Valley Chapter Meeting
Topic: Recent Tax Law Changes for Real Estate Owners
2 Federal Law Hours
San Francisco Bay Chapter Meeting
November 14, 2018
Topic: IRS Audit and Collection Strategies and Techniques
2 Federal Law Hours
Inland Empire Chapter Meeting
Topic: TBD
Hours: TBD
Orange County Chapter Meeting
November 15, 2018
Topic: IRC section 199A Qualified Business Income Deduction (QBID)
2 Federal Update Hours
San Diego-North County Chapter Meeting
November 27, 2018
Topic: Now That the Client has Died - What is the Tax Professional's Role in Settling the Clients Estate or Trust
1 Federal Update Hour
1 California Hours
Orange County-South Chapter Meeting
Click here to view the CSTC calendar.
Join the California Society of Tax Consultants!
Click here to fill out an online application.
CSTC advances professionalism within the tax industry by:
- Providing quality education
- Creating networking opportunities
- Advocating professional standards
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