In This Issue...

1. From the CSTC President
2. Registration is OPEN for the 2023 Summer Symposium
3. CSTC Knowledge Vault - A New Member Benefit
4. FTB to Delay CA Tax Basis Capital Reporting
5. National Society of Accountants (NSA)
6. February Events
7. Welcome New CSTC Members
8. Congratulations!
9. Legislative Advocacy
10. News from the IRS
11. 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
And We're Off!

As I write this column, tax season is just getting underway. E-filing opened this week, and our clients, having received most of their tax documents, are beginning to call. Having finished the last of our update seminars, we’re at the starting gate, ready to apply that knowledge and start preparing those returns.

But first, let’s take a minute to review our recent tax seasons…

• 2018, coming on the heels of TCJA, the largest tax code revision in three decades, was tough. We had to scramble to learn the new law, and to explain the many changes to our clients!
• 2019 again started with a major tax law passed in December – the SECURE Act – but it was the COVID lockdown in March that upended everything! Not only were we all dealing with COVID and the resulting logistical challenges, but we also had a retroactive tax law passed in March and a deadline extended to July!
• It seemed no season could be worse than tax season 2019, and that is probably true. But 2020, with partial lockdowns still in effect, brought us PPP loans and forgiveness, employer tax credits, rebate recovery credits and a deadline extended to May!
• So last year, 2021 looked to be an improvement. And in many ways, it was. But we still had the COVID credits and PPP loans to deal with, and the reconciliations of the Recovery Rebate Credit and the Advanced Child Tax Credit. And to make it worse, the IRS was hopelessly backlogged by mail and unavailable by phone, meaning we couldn’t resolve any issues that arose.

So what does 2022 look like? The good news is that almost all of the special COVID provisions have expired and that means no reconciling credits! But as the numbers return to the pre-COVID amounts, we’re the ones who have to explain to our clients why their refunds are so much lower this year!

The IRS is more accessible now, so we’ve been able to unravel some of those old outstanding issues. Hopefully we’ll be able to resolve new issues as they arise.

We do have an extended season again this year – until May 15^th for most of California – due to the recent flooding. And there are some new laws – the Inflation Reduction Act and the Secure 2.0 Act – but the magnitude of these laws is minor compared to the last few years.

And so, it begins.

Get ready . . . tax law learned . . .  reference materials on hand . . .

Get set . . . supplies replenished . . . computer programs downloaded . . . clients contacted . . .Go!

And we’re off!

Wishing you all a winning tax season!

Linda Dong
CSTC President 

Registration is OPEN for the 2023 Summer Symposium!

The Society Education Committee has been busy planning an amazing event for our return to Las Vegas for our 2023 Summer Symposium.  

Join us at the beautifully remodeled Sahara Las Vegas for this year’s event: CSTC presents Ocean’s 1040!

Did you know that you can get ALL of your CTEC credits for the year at Symposium?  That’s right!  You can get your federal, update, Ethics, and CA hours all in one go, and all for about $25 per CE hour!  

Oh, and did we mention the return of the Lunch and Learn sessions?  Your registration includes breakfast AND lunch each day of the event!

With our fantastic line-up of speakers and topics there’s something for everyone, from beginner to veteran preparers.  

Can’t wait to see you in Vegas!

CLICK HERE to learn more and register!

 CSTC Knowledge Vault - A New CSTC Member Benefit

We all know that being a member of CSTC has many benefits, and we are so excited to share this newest one with you!

We are proud to unveil the new CSTC Knowledge Vault, a member exclusive resource for up to the minute information on all things tax written by experts in the field.  This new page, which you can find in the member area of the website, will be updated regularly with articles and information to keep you on the cutting edge of tax law changes.

Some highlights from the latest articles include:

2022 Schedules K-2 &K-3, Happy Path Exception for Domestic Partnerships or S-Corps with Little or No Foreign Activity

• Steps to Eliminate the Requirement to Prepare & Issue K-2 and K-3
• Form 1116 Exemption Exception
• Detailed Instructions for Exceptions from Filing Schedules K-2 and K-3

IRS Tax Relief: California Storm Relief

• IRS Notices CA-2023-01 and IR-2023-03
• Detailed information on which filings are extended and impacted counties
• FTB Notice of Tax Filing Relief Postponement

Check out this newest addition to the CSTC website here: https://cstc.memberclicks.net/new-cstc-knowledge-vault

FTB to Delay CA Tax Basis Capital Reporting

The FTB has announced that it is delaying the requirement to report partner capital on the tax basis method as calculated under California law for another year. Thus, for 2022 returns, a partnership may report its partners’ capital accounts on Schedule K-1 using the tax basis method as determined under federal law rather than the CA tax basis.

The requirement to use CA tax basis was to go in effect for the 2022 taxable year, but the FTB “has become aware that certain persons required to file Schedule K-1 (565) and Schedule K-1 (568) may be unable to timely comply with the requirement to report partner capital on the tax basis method as calculated under California law for 2022.”

They have therefore delayed requiring CA tax basis for another year. The requirement to use CA tax basis will go into effect for tax year 2023.

See Notice 2023-01 at www.ftb.ca.gov/tax-pros/law/ftb-notices/2023-01.pdf 

National Society of Accountants (NSA)

CSTC is the state affiliate of the National Society of Accountants (NSA). NSA is a national organization that helps independent tax and accounting professionals increase their knowledge, grow their clientele, and elevate their value to provide the best client services and to expand their businesses.

NSA advocates for its members by working with the Internal Revenue Service and Congress in legislative, regulatory, and legal matters. And it works with the state affiliates to fight state laws that could inhibit our right to practice. In 2012, NSA helped the California state affiliate fight a proposal by the California Board of Accountancy that would have required non-CPAs to advertise for CPAs.

Benefits of membership in NSA include discounts with NSA partners for insurance, for research and support, and for business and marketing, such as Constant Contact and UPS. NSA also offers education opportunities, many at no cost, practice management toolkits, and a Tax Help Desk that will research and answer tax questions from members for free.

NSA is not in competition with CSTC. Rather we are working together to help tax and accounting professionals. As a national organization, NSA has more resources and a greater impact with their advocacy and that benefits all of us. NSA is like an extension of CSTC. As CSTC we can meet together in local chapters and focus on California issues; partnering with NSA gives us input and representation on national issues. Becoming a member of NSA is good for you, the individual, and good for CSTC.

Calendar of Events
February 2023

February 3, 2023

Round Table
Temecula Valley Chapter In-Person Meeting
1 Federal Law hour (Topics covering existing tax law)
Click here to learn more and register

February 5, 2023

Tax Season Sunday Q&A
Orange County Chapter In-Person Meeting
1 Federal Law hour (Topics covering existing tax law)
Registration coming soon

February 8, 2023

Retirement Decisions (IRA/RMD)
San Francisco Bay Chapter Virtual Meeting
8 hours federal tax update
Click here to learn more and register

February 10, 2023

Round Table
Temecula Valley Chapter In-Person Meeting
1 Federal Law hour (Topics covering existing tax law)
Click here to learn more and register

February 12, 2022

Round-Table Discussion 2022 Tax Issues and Resolutions
Greater Long Beach Chapter In-Person Meeting
1 Federal Law hour (Topics covering existing tax law)
Click here to learn more and register

February 15, 2023

Tips for a Successful Tax Season
San Jose Chapter Virtual Meeting
No continuing education will be offered for this session
Click here to learn more and register

February 19, 2023

Tax Season Sunday Q&A
Orange County Chapter In-Person Meeting
1 Federal Law hour (Topics covering existing tax law)
Registration coming soon

Click here to view the CSTC calendar.

Welcome New CSTC Members!

Please help us by joining our newest CSTC Members!

Elvia Castaneda
Inland Empire Chapter

Jay Chhabra
San Jose Chapter

Daksha Dave
San Diego Chapter

Consuelo Hernandez
Inland Empire Chapter

Miguel Hernandez
San Diego Chapter

Anne Lew
San Diego Chapter

Kevin McDowell
San Jose Chapter

Victoria Menzies
San Jose Chapter

Simon Siu
San Jose Chapter

Diana Whipple
San Jose Chapter

Stephanie Winchell
Central Valley Chapter

Tomas Zarate
Central Valley Chapter

Congratulations to our new CSTC members! 

Congratulations!

Congratulations to member Tamaki Okamoto for successfully passing the Enrolled Agent exam! Tamaki is a member of the Greater Long Beach Chapter and is currently serving as a Region Two Director. 

Did you, or someone you know, pass the EA exam? Or become a newly registered California Registered Tax Preparer through CTEC? If so, let us know by emailing [email protected]. We’d love to give them a shout-out!

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

California Society of Tax Consultants | PO Box 10, Manhattan Beach, CA 90267
Phone (949) 715-4192 | [email protected]