|
In This Issue...
- From the CSTC President
- Did you miss the 2022 Fall Forum?
- Verifyle Demo for CSTC Members
- December Events
- Welcome New CSTC Members
- Legislative Advocacy
- News from the IRS
- Join CSTC!
CSTC Member Benefits
CSTC members have access to benefits such as free payroll processing services for your tax practice, and the opportunity to earn new revenue through their flexible partnership options.
CSTC is pleased to include the VeriFyle ProTM premium secure online document and message sharing service at no cost to CSTC members!
Wolters Kluwer: Discounts on Tax, Accounting & Audit Resources, Software, Information & Services.
CSTC members receive the TaxBook WebLibrary at a special price
Other Member Benefits Include:
$ Savings on all Society Educational Events
$ Savings on Contact, Correspondence & Self Study Education
$ Savings with member specialty CSTC Connects (previouslyYellow Pages) list
$ Savings with E & O Insurance, plus specialty coverage relevant to your profession
$ Online CSTC Find-a-Tax Consultant search to help promote your business!
$ CSTC Member Listserv
Office Depot has partnered with us to provide exclusive savings in-store and online, plus fantastic additional benefits. This program is all about providing preferred pricing to our clubs, and the savings extend to almost every item.
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. Become a CSTC member to sign up for our Office Depot Small Business Savings Program, administered by Excelerate America.
We are a professional full-service tax advisory firm in San Diego. Our goal is to provide a level of service for our clients that will exceed expectations in every possible way. We strive to offer a diverse level of services to meet the needs of the diverse community we have been working in for more than 30 years.
TaxMama's® EA Exam Course prepares tax professionals to do so much more than just pass the IRS' Special Enrollment Examination. This is an in-depth course that teaches tax law from the ground up. It explains how tax returns work, with examples of basic 1040s, Schedule Cs, 1065s, 1120s, and 1120Ss; you learn tax law, tax research, client representation for audits, appeals and collections.
If you are interested in buying or selling a practice, contact us today! ATB is operated by Enrolled Agents ensuring a complete understanding of our profession. Please give us a call at (855) 428-2225 or visit us online at www.ATBCAL.com for more information and to view our current listings.
CA DRE 02002824
CSTC Mission Statement
CSTC advances professionalism within the tax industry by:
- Providing quality education
- Creating networking opportunities
- Advocating professional standards
|
President's Column
How Long? ... How Long?
A fellow practitioner asked me recently for the guidelines for how long to keep tax returns. I told him it’s really our clients’ responsibility to keep their own tax returns. Our only actual requirement from the IRS is to keep a list of the names and social security numbers for the tax returns we prepared.
But, of course, we’re professionals, and we keep the tax returns not just to meet some minimum requirement, but to use for next year’s preparation, to keep a history, and to help our clients.
So I gave him the basic rules for tax returns:
- 3 years for federal income tax returns
- 4 years for CA income tax returns
- 6 years for federal income tax returns if more than 25% of the income is omitted
- No limit for fraud
- 4 years for payroll tax returns
- 3 years for sales tax return
And all of these dates are counted from the filing date, so that extends into the following year. I tell my clients to keep the actual tax return forever, and the backup information for a minimum of 5 years.
But while I answered the question, I felt like I should have added more. There’s an overriding principle for keeping records which is: Keep them as long as they may be relevant.
For example, if you buy an asset, such as a house or stock, you need to keep your purchase records to prove basis when you sell the asset. Similarly, capital improvements on a home or rental will affect the gain or loss when the property is sold or otherwise disposed of, so records of these improvements need to be kept until after the property is sold.
Another area where records need to be kept for longer than usual is net operating losses (NOLs). A recent court case, Betty Amos v. Commissioner, illustrates this perfectly.
The taxpayer in this case is, ironically, a CPA with a very successful practice of high-level tax work. She also ran a total of 15 Fuddrucker’s restaurants. The restaurants were very profitable until 1999, when one restaurant closed, causing an NOL carryforward of $1.5 million. The restaurants continued to do poorly and close, causing more losses. By the time she prepared her 2015 return, her NOL carryforwards were about $4.3 million.
The IRS audited her 2013 and 2014 tax returns and disallowed the NOL carryforwards because the taxpayer did not have the underlying records substantiating the losses in 1999 and 2000. She also did not have the necessary records to show the history of the NOL carryovers in the subsequent years.
She took it to tax court and advanced various arguments. But essentially, the judge said the NOLs had never been audited or their legitimacy tested, and since she could not produce the needed substantiation to prove them, the IRS was correct in disallowing them.
So the lesson for us and for our clients is keep those records!
Wishing you all a wonderful holiday season…
Linda Dong
CSTC President
Did you miss the Fall Forum on S Corporations
S Corporations – From Incorporation to Dissolution was the title of our 2022 Fall Forum, a 12-hour class in four sessions following a corporation from incorporating as a sole proprietor to electing S status through several years in business and finally to dissolving the corporation and distributing the assets.
If you missed the live class, you can still get all the materials – the handouts, PowerPoint slides, and recordings of all four classes – but no CE credit. Use this direct link: https://cstc.memberclicks.net/ss2022 or go to the calendar on the CSTC website (www.cstcsociety.org) and click the Register Now button on one of the Fall Forum classes (Oct 20, 24, 27 or Nov 1). The instructors are available by email to answer any questions: [email protected] and [email protected].
Verifyle Demo for CSTC Members
Take advantage of this free benefit for all CSTC members!
As you may have heard, CSTC and Verifyle have partnered to offer all CSTC members access to Verifyle ProTM, Verifyle’s premium secure online file sharing and messaging service at no cost to 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.
As a part of your free Verifyle Pro account, you’ll have unlimited access Verifyle’s digital signatures capability, where you can request to have your clients sign, date and initial documents inside Verifyle.
Information regarding this training has been emailed out to CSTC members. If you did not receive the information, please email [email protected].
Calendar of Events
December 2022
December 5, 2022
Update for 2022 Returns!
Hosted by the Orange County Chapter
Materials provided by Brass Tax Presentations
8 hours federal tax update
Click here to learn more and register
CA Itemized Deduction
Orange County South Chapter Virtual Meeting
2 California hours (Topics covering California law issues)
Click here to learn more and register
December 7, 2022
Form 4797 - Sales of Business Property
San Jose Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register
IRS Tax Update
Temecula Valley Chapter In-Person Meeting
2 Federal Tax Update hours (Topics covering new tax law)
Click here to learn more and register
December 8, 2022
North County San Diego Chapter Holiday Party
Hosted by the North County San Diego Chapter
No CE offered for this event
Seating is limited
Click here to learn more and register
December 12, 2022
Update for 2022 Returns!
Hosted by the San Jose Chapter
Materials provided by Brass Tax Presentations
8 hours federal tax update
Click here to learn more and register
December 14, 2022
Balance Sheets for Tax Preparers
San Jose Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register
Annual Holiday Party
Inland Empire Chapter In-Person Meeting
No CE offered for this event
Click here to learn more and register
Orange County Chapter Annual Holiday Party!
Hosted by the Orange County Chapter
No CE offered for this event
Click here to learn more and register
December 15, 2022
Region Four Holiday Party
Hosted by the East County San Diego, North County San Diego, and San Diego Chapters
Space is limited, so book your spot early
No CE offered for this event
Click here to learn more and register
December 16, 2022
Update for 2022 Returns!
Hosted by the San Francisco Bay Chapter
Materials provided by Brass Tax Presentations
8 hours federal tax update
Click here to learn more and register
Round Table: Federal Updates and Questions
Temecula Valley Chapter In-Person Meeting
1 Federal Law hours (Topics covering existing tax law)
Click here to learn more
Federal Update and Review
Central Valley Chapter Virtual Meeting
3 Federal Tax Update hours (Topics covering new tax law)
Click here to learn more
Click here to view the CSTC calendar.
Welcome New CSTC Members!
Please help us by joining our newest CSTC Members!
Cesar Carrasco
San Diego Chapter
Eugenia Cortez Servin
Los Angeles Chapter
Paul G Delle Cese
San Jose Chapter
Noella Feder
Sacramento Chapter
Rosamaria Galindo
Orange County Chapter
Jeffrey Kaylor
Orange County Chapter
Dolores "Lori" Mclane
Orange County Chapter
Michael Mclean
San Jose Chapter
David Morris
Orange County Chapter
Anabel Munguia Cruz
Los Angeles Chapter
Nancy Navarro-Walker
Orange County- South Chapter
Phillip Nguyen
San Jose Chapter
Jacqueline Rawson
Orange County- South Chapter
Oliver Wong
San Jose Chapter
Beth Zeitman
San Francisco Bay Chapter
Congratulations to our new CSTC members!
Legislative Advocacy
CSTC has been the leading Association in supporting legislation to provide protection for our profession, to support our profession, and to enhance our profession. CSTC continuously leads our industry through legislative advocacy, educational opportunities, and professional inclusion.
CSTC works closely with a Legislative Consultant to keep an eye on important bills that would affect taxpayers and small business owners.
Please click here to view the bills that CSTC is currently monitoring.
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
|
