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CSTC Newsletter

November 2022

In This Issue...

  1. From the CSTC President
  2. November Events
  3. Call for 2023 Summer Symposium Speakers
  4. November Wednesday Webinar
  5. Welcome New CSTC Members
  6. Legislative Advocacy
  7. News from the IRS
  8. 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.

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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
Are You Able to Spot a Phishing Scam?
Take These Quizzes to Find Out

Phishing scams are getting more and more sophisticated. No longer a message with awkward phrasing and spelling errors, phishing messages today often look like a legitimate company email, complete with logo. They’re often from a company you regularly deal with, and the requests often sound legitimate.

I went to a store last week, and the following day I had an email asking me to rate the service I received. This is common, and I will generally give them a response. I was about to respond to the email when I noticed the email address it was sent from: [email protected]. It was not from the store or anything close to it. An obvious phishing scam. And yet I almost replied.

This has now become my first line of defense against phishing – checking to see who sent the email – especially for emails asking for a reply. A glance at the return address often makes it clear whether it’s legitimate or not.

For example, I received an email with a Venmo Special. Take the survey – Claim the Gift. I use Venmo. Maybe they sent me a customer survey. But look, it came from [email protected]. Definitely not Venmo!

And of course we all get those emails purportedly from the president or treasurer of an organization we belong to. In fact, many of you have probably received emails supposedly from me. But look at the email address. I doubt any CSTC officer would use an address like [email protected]or [email protected], but I’ve received emails with those actual addresses.

So be aware. Pay attention when you’re reading your emails. A survey in 2020 showed that the number one reason employees clicked on a phishing link was distraction.

Here are 4 additional anti-phishing behaviors that will help keep you from getting phished:

  1. Never give away your data online. In your regular emails, phone calls and text messages, don’t include usernames, passwords, birthdates or any other personal information that could be used to impersonate you later.
  2. Don’t confirm your password right after clicking a link in a message. Rather open a fresh tab and directly enter the URL you want to long into. Hackers can set up fraudulent websites and collect your login credentials.
  3. Take your time with urgent messages. Phishers often try to get victims to act quickly before they have time to realize they’re being duped. Be suspicious of anyone who asks you to respond within a specific time period.
  4. If the message is too good to be true, ignore it. If you get an email saying you’ve won a prize, don’t respond.

Now about the quizzes. Google’s Jigsaw team developed a quiz to help everyone learn to spot a phishing attempt: https://phishingquiz.withgoogle.com/  It shows examples of emails and asks you to determine if they are legitimate or not. You can hover your mouse over the links to see the real web address, and you can see the email headers and attachments. It explains what’s real or not so you can learn to spot the phishing emails. It’s challenging.

Cisco has also created a phishing awareness quiz for its employees: https://www.cisco.com/c/en/us/products/security/email-security/what-is-phishing.html#~phishing-awareness-quiz

I encourage you to take the quizzes. Learn what to look for. And stay aware.

Linda Dong
CSTC President 

Calendar of Events
November 2022

November 1, 2022

2022 Virtual Fall Forum (class four of four)
Topic: S Corporations – From Incorporation to Dissolution
Each class during this seminar is 3 Federal Tax Law Hours
Click here to learn more and register

November 2, 2022

Wednesday Webinar
Topic: Surviving an EDD Payroll Tax Audit
2 California hours
Click here to learn more and register

Topic: 1031 Exchanges: Can a Landlord Ever Truly Retire?
Temecula Valley Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

Topic: Estate Planning and Property Tax
San Francisco Bay Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing
Click here to learn more and register

November 3, 2022

Topic: Maximizing the Triple Tax Advantage of Health Savings Accounts
San Jose Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

Topic: Balance Sheets and Schedule L for Business Returns
San Gabriel Valley Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

November 8, 2022

Topic: Annual Tax Update
East County San Diego Chapter Virtual Meeting
2 Federal Tax Update hours (Topics covering new tax law)
Click here to learn more and register

November 9, 2022

Topic: Unwrapping the Gift Tax - Form 709
Orange County Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

November 10, 2022

Topic: Tax Planning 2022 Part I and II
North County San Diego Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

November 15, 2022

Topic: Substantial Presence Test
Orange County South Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

November 16, 2022

Topic: Inflation Reduction Act (IRA)
San Jose Chapter Virtual Meeting
2 Federal Tax Update hours (Topics covering new tax law)
Click here to learn more

Topic: Tax Planning Strategies for Individuals and Retirees
Inland Empire Chapter In-Person Meeting
2 Federal Tax Update hours (Topics covering new tax law)
Click here to learn more

Topic: Choosing or Changing a Business Entity
Los Angeles Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more

November 17, 2022

Topic: YEAR END PLANNING
San Diego Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more

November 18, 2022

Topic: 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 and register

November 21, 2022

Topic: The How’s of ITIN, Federal and State Updates for ITIN
Orange County South Chapter In-Person Meeting
1 California hours (Topics covering California law issues)
1 Federal Tax Update hours (Topics covering new tax law)
Click here to learn more and register

November 22, 2022

Topic: Two-Part Meeting: Form 7203 and S Corporation Basis and Preparing a business return from your client’s QuickBooks statements
Central Valley Chapter In-Person Meeting
4 Federal Law hours (Topics covering existing tax law)
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

Click here to view the CSTC calendar.

Call for Presenter 2023 Summer Symposium Presenters

The California Society of Tax Consultants (CSTC) provides quality tax education for tax professionals, including CTEC-registered preparers, Enrolled Agents, CPAs and attorneys. CSTC’s premier education event is the Summer Tax Symposium.

The 2023 Symposium will be a live event held June 11 through June 14, 2023 at the Sahara Hotel in Las Vegas, Nevada. CSTC is looking for speakers to share their tax knowledge and expertise with their peers and colleagues. Seminar sessions range from one to four-hour classes that provide attendees with information about the topic as well as practical applications they can put to use in their practices.

We are accepting submissions in all areas of taxation including:

  • Current tax updates
  • Individual tax
  • Businesses
  • Exempt Organizations
  • Trusts and Estates
  • California Tax
  • Representation
  • Other topics related to taxation

While this is a live event, there will be a webinar series to be held throughout the year, so please feel free to submit even if you prefer not to attend a live event and your submission will be considered for virtual events.

Please CLICK HERE to fill out the Call for Presenters Form in its entirety and submit it no later than November 15, 2022 at 5 pm. Only complete submissions will be considered.

Presenters are selected by the Education Committee based on recommendations and fit with the overall goal of the Symposium. All submitters will be notified by December 16, 2022.

If you have any questions, please contact Shannon Hall by phone at 310-324-9040 or by email at [email protected]. 

Education Committee
www.cstcsociety.org

Surviving an EDD Payroll Tax Audit
10:00 AM to 12:00 PM PST
Cost: Member: $30 / Non-Member: $60
Wednesday, November 2, 2022

Speaker: Allison D.H. Soares, Partner at Vanst Law LLP
2 California hours
IRS: N/A
CTEC: 1000-CE-5161
Knowledge Level: Advanced

Location:
Online Meeting via Zoom
This will be Zoom Meeting. Once you register and pay, the Zoom link will be provided in your confirmation email for you to log in at the designated meeting time. Zoom does require registration before entering the meeting.

Description: 
EDD audits are focused on reclassifying independent contractors to employees. This audit will include a review of business records for the past three years, specifically records with special interest on documentation about your employees and independent contractors. An EDD audit may leave an impact that financially impacts the business growth and business model. After a worker is reclassified to an employee, the business will be assessed taxes, penalties, and interest. Additionally, the EDD can collect from the responsible party. The business does not need to be shut down for the EDD to assess and collect personally from the owner, officer, employee, etc.

Welcome New CSTC Members!

Please help us in joining our newest CSTC Members!

Rigoberto Alluin
Inland Empire Chapter

Marvin Ballard
San Francisco Bay Chapter

Wendy Barrios
Los Angeles Chapter

Joan Cacali
Orange County Chapter

Aaron Chambers
Central Valley Chapter

Tiana Driggins
San Jose Chapter

Frank Essombe
Los Angeles Chapter

Patricia Pringle
San Francisco Bay Chapter

Adriele Robles
Los Angeles Chapter

Randolph Scott
San Jose Chapter

Priscilla Udave
Inland Empire Chapter

Don Wayne
San Francisco Bay Chapter

Laruen Wilson
Greater Long Beach 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.

   

News from the IRS 

IRS updates tax gap estimates; new data points the way toward enhancing taxpayer service, compliance efforts

IR-2022-192, October 28, 2022 — The Internal Revenue Service today released a new set of tax gap estimates on tax years 2014 through 2016 showing the estimated gross tax gap increased to $496 billion, a rise of over $58 billion from the prior estimate.

IRS quickly moves forward with taxpayer service improvements; 4,000 hired to provide more help to people during 2023 tax season on phones

IR-2022-191, October 27, 2022 — The Internal Revenue Service announced today significant progress to prepare for the 2023 tax filing season as the agency passed a milestone of hiring 4,000 new customer service representatives to help answer phones and provide other services.

2023 PTIN renewal period underway for tax professionals

IR-2022-190, October 27, 2022 — The Internal Revenue Service urges the nation's more than 750,000 active tax return preparers to start the upcoming 2023 filing season smoothly by renewing their Preparer Tax Identification Numbers (PTINs) now. All current PTINs will expire December 31, 2022.

Reminder: Service providers, others may receive 1099-Ks for sales over $600 in early 2023

IR-2022-189, October 24, 2022 — The Internal Revenue Service reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K, Payment Card and Third-Party Network Transactions, for payment card transactions and third-party payment network transactions of more than $600 for the year.

401(k) limit increases to $22,500 for 2023, IRA limit rises to $6,500

IR-2022-188, October 21, 2022 — The IRS announced today that the amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 for 2022. The IRS today also issued technical guidance regarding all of the cost of living adjustments

During National Cybersecurity Month, IRS and Security Summit Partners offer tips

IR-2022-187, October 21, 2022 — The Internal Revenue Service and its Security Summit partners today urged families to remain vigilant year-round and consider taking additional steps to protect their personal information during National Cybersecurity Month.

Adjust tax withholding now to pay the proper amount of tax

IR-2022-186, October 20, 2022 — The Internal Revenue Service today urged taxpayers to check their tax withholding while there’s time left in 2022 to benefit from any necessary changes.

IRS: Deadline to file 2019 and 2020 tax returns to get COVID penalty relief postponed in declared disaster areas

IR-2022-185, October 19, 2022 — The Internal Revenue Service reminds taxpayers in areas covered by certain Federal Emergency Management Agency (FEMA) disaster declarations they may have more time to file their returns to qualify for the penalty relief under Notice 2022-36 for their 2019 and 2020 tax returns.

Employers urged to electronically file payroll tax returns by Oct. 31

IR-2022-184, October 19, 2022 — The Internal Revenue Service today reminded employers to file the next quarterly payroll tax return by the approaching October 31, 2022, due date, and urged them to do so electronically.

Employers warned to beware of third parties promoting improper Employee Retention Credit claims

IR-2022-183, October 19, 2022 — The Internal Revenue Service today warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit.

IRS provides tax inflation adjustments for tax year 2023

IR-2022-182, October 18, 2022 — The Internal Revenue Service today announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2022-38 provides details about these annual adjustments.

Grandparents and other relatives with eligible dependents can qualify for 2021 Child Tax Credit

IR-2022-181, October 17, 2022 — The Internal Revenue Service reminded families today that some taxpayers who claim at least one child as their dependent on their tax return may not realize they could be eligible to benefit from the Child Tax Credit (CTC).

IRS joins effort to fight charity fraud during international recognition week

IR-2022-180, October 17, 2022 — The Internal Revenue Service announced its continued support by joining international efforts to fight fraud during Charity Fraud Awareness Week, October 17-21.

IRS reminds taxpayers of upcoming filing extension deadline; Free File remains open until Nov. 17

IR-2022-179, October 14, 2022 — The Internal Revenue Service reminds taxpayers today that those who requested an extension of time to file their 2021 income tax return that the deadline is Monday, October 17. IRS Free File remains open until November 17 for those who still need to file their 2021 tax returns.

IRS sending letters to over 9 million potentially eligible families who did not claim stimulus payments, EITC, Child Tax Credit and other benefits; Free File to stay open until Nov. 17

IR-2022-178, October 13, 2022 — Starting this week, the Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return.

IRS expanding dyed diesel penalty relief as a result of Hurricane Ian

IR-2022-177, October 11, 2022 — The Internal Revenue Service, in response to continued disruptions resulting from Hurricane Ian, will not impose a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway in the state of Florida.

Online seminars from 2022 IRS Nationwide Tax Forum now available

IR-2022-176 — The online version of the forum consists of 18 new self-study seminars, including four Spanish-language seminars.

IRS: Don’t miss this important Oct. 17 tax extension deadline

IR-2022-175, October 7, 2022 — The Internal Revenue Service today reminds taxpayers who requested an extension to file their 2021 tax return to do so by Monday, October 17.

October FBAR extension deadline nears for foreign bank and financial account holders

IR-2022-174, October 6, 2022 — The Internal Revenue Service today reminds U.S. citizens, resident aliens and domestic legal entities that the extension deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is October 15. For additional information about filing deadlines, filers should look to Financial Crimes Enforcement Network’s (FinCEN) website.

IRS: Hurricane Ian victims in the Carolinas qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15

IR-2022-173, October 5, 2022 — Hurricane Ian victims throughout both North Carolina and South Carolina now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today. This is similar to relief announced last week for Ian victims in Florida.

IRS asks for comments on upcoming energy guidance

IR-2022-172, October 5, 2022 — The Internal Revenue Service today issued six notices asking for comments on different aspects of extensions and enhancements of energy tax benefits in the Inflation Reduction Act.

IRS announces 2023 Tax Counseling for the Elderly and Volunteer Income Tax Assistance Program Grants

IR-2022-171, October 4, 2022 — The Internal Revenue Service recently awarded $41 million in Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grants to organizations that provide free federal tax return preparation.

IRS Appeals revises initial contact letters as part of effort to enhance the taxpayer experience

IR-2022-170, October 4, 2022 — The Internal Revenue Service Independent Office of Appeals is taking important steps to improve how taxpayers interact and communicate with the IRS by revising their initial contact letters.

News Release and Fact Sheet Archive

Find an archive of news releases and fact sheets from November 2002 and news releases and a listing of fact sheets from 1997.
Click here for more information from the IRS

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]