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CSTC Newsletter

September 2022

In This Issue...

  1. From the CSTC President
  2. September Events
  3. Welcome New CSTC Members
  4. Legislative Advocacy
  5. News from the IRS
  6. 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
Do You Have a WISP?

The IRS recently released a document called “Creating a Written Security Plan (WISP) for your Tax & Accounting Practice.” My reaction: Hurray! Finally!

The Gramm-Leach-Bliley Act, which was passed in 1999, contained a safeguards rule that required tax preparers to develop a written security plan describing how the business is prepared to protect clients’ personal information. Then in 2019, the IRS added a line to the PTIN renewal form with a checkbox: I am aware that paid tax return preparers must have a data security plan to provide data and system security protections for all taxpayer information. This statement, however, just says you are aware of the requirement, not that you actually have a plan. But it was a prod for me to write up a plan.

After the law was first passed, I attended a seminar on data security plans, but it was very theoretical and not helpful at all. I later attended another seminar that gave step-by-step instructions and even provided a template. This was more helpful, but the instructions required you to identify the potential risks and put a dollar value on the risk. I had no idea how to monetize the risk and couldn’t find any help with it. Eventually I settled on a scale of Low Risk, High Risk, and Very High Risk which enabled me to write up a security plan, which I update every year.

So when the IRS issued their WISP document, I was encouraged. Now I could finally have a security plan that met the standard. I was going out of town, so I put the document aside to read after my trip. But one day on my trip I had a horrifying thought – what if the IRS plan is just a repeat of the template I already have? It might actually make things more difficult!

So it was with some trepidation that I opened the IRS document when I returned. And I was pleasantly surprised! The document lists clear step-by-step directions to setting up a WISP, complete with explanations and examples. There is no requirement to monetize the risk, and no overwhelming requirements. Instead, it’s a common-sense document “intended to provide sample information and to help tax professionals, particularly smaller practices, develop a Written Information Security Plan or WISP.”

So again I say Hurray! I’ve only read it through once, but it seems to cover the issues thoroughly and simply. Now I have to re-do my security plan to add some more information and some specific wording. But, you know what? I’m happy to do it. I’m always happy to be in compliance, and I’m really happy about having a guide to help me do it.

There’s a link above to the IRS document. I encourage you all to read it and then create or update your firm’s security plan, not just to satisfy the requirement, but as a professional best practice to protect your clients’ information.

Linda Dong
CSTC President

Calendar of Events
September 2022

September 1, 2022

Topic: What you Need to Know About Representing Clients Dealing in Cryptocurrency
San Gabriel Valley Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 6, 2022

Topic: Master Form 7203 S Corp Basis for Form 1040
East County San Diego Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

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

September 7, 2022

Topic: Discovering Common Forms Of Ownership in California
Temecula Valley Chapter In-Person Meeting
2 California hours (Topics covering California law issues)
Click here to learn more and register

Topic: California Update
San Francisco Bay Chapter Hybrid Meeting
2 California hours (Topics covering California law issues)
Click here to learn more and register

September 8, 2022

Topic: Employee Retention Tax Credit
North County San Diego Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 14, 2022

Topic: Real Estate Depreciation: What Professionals Must Know
San Jose Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

Topic: Tax Planning Strategies for Individuals and Retirees
Orange County Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 15-17, 2022

Topic: 2022 Tax Forum
Orange County South Chapter In-Person Seminar
Hours vary depending on the length of attendance
Click here to learn more and register

September 21, 2022

Topic: Ethics in Practice
San Jose Chapter Virtual Meeting
2 Ethics hours (Topics meeting the ethics requirements under Cir 230)
Click here to learn more and register

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

Topic: Ethics
Los Angeles Chapter In-Person Meeting
2 Ethics hours (Topics meeting the ethics requirements under Cir 230)
Click here to learn more and register

September 22, 2022

Topic: Taxation of Cryptocurrency, NFTs, and Decentralized Finance
San Diego Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 23, 2022

Topic: Trusts / Estates Workshop
Hosted by the Region Four Chapters
4 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 27, 2022

Topic: Looking to Tax Year 2022: Tax Changes to the Earned Income Tax Credit and Other Child-Related Credits
Orange County South Chapter Virtual Meeting
2 Federal Tax Update hours (Topics covering new tax law)
Click here to learn more and register

Click here to view the CSTC calendar.

Welcome New CSTC Members!

Please help us in joining our newest CSTC Members!

Catherine Black
Inland Empire Chapter

Sandra Brooks
San Diego Chapter

Rafael Cardero
Los Angeles Chapter

Aida Cueto
San Gabriel Valley Chapter

Shannon Hagerty
Greater Long Beach Chapter

Margaret Harrison
San Diego Chapter

Arturo Jimenez
San Diego-North County Chapter

Farzaneh Kordani
Orange County Chapter

Amy Maehler
Sacramento Chapter

Helen Mathis
Member-at-Large

Fabian Santillan
Greater Long Beach Chapter

Angela Smith
San Francisco Bay Chapter

Theresa Thach
San Jose Chapter

Luis Vargas
San Diego-East County Chapter

Theresa Wright
Los Angeles 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 

September is National Preparedness Month; IRS urges everyone to update and secure their records to prepare now for natural disasters

IR-2022-156, August 29, 2022 — September is National Preparedness Month. With the height of hurricane season fast approaching and the ongoing threat of wildfires in many places, the Internal Revenue Service urges everyone to develop an emergency preparedness plan, or if they already have one, update it for 2022.

COVID tax relief: IRS provides broad-based penalty relief for certain 2019 and 2020 returns due to the pandemic; $1.2 billion in penalties being refunded to 1.6 million taxpayers

IR-2022-155, August 24, 2022 — To help struggling taxpayers affected by the COVID-19 pandemic, the IRS today issued Notice 2022-36, which provides penalty relief to most people and businesses who file certain 2019 or 2020 returns late.

IRS Appeals invites input on enhancing video conference options for taxpayers and tax professionals

IR-2022-154, August 18, 2022 — The IRS Independent Office of Appeals invites public input on best practices for conducting video conferences with taxpayers and tax professionals who have cases pending before Appeals.

2021 tax extension filers, don’t overlook these important tax benefits

IR-2022-153, August 18, 2022 — The Internal Revenue Service reminds taxpayers who’ve yet to file their 2021 federal income tax return to make sure they take advantage of the deductions and credits for which they’re entitled and to file electronically as soon as possible.

IRS adds new information in traditional Chinese to help with tax authorizations, part of growing multilingual effort to support taxpayers and help tax pros, third-party designees

IR-2022-152, August 17, 2022 — As part of a larger effort to expand tax resources in more languages, the Internal Revenue Service announced today the addition of a translation of the Instructions for Form 8821, Tax Information Authorization, in traditional Chinese.

Security Summit: Tax pros can help clients battle identity theft risk

IR-2022-151, August 16, 2022 — The Security Summit partners today concluded a special summer education campaign by outlining steps tax professionals can take to help clients from becoming statistics in identity-theft related tax-fraud scams.

IRS announces interest rate increases for the fourth quarter of 2022; 6% rate applies to most taxpayers starting Oct. 1

IR-2022-150, August 15, 2022— The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning October 1, 2022.

IRS: Missouri storm, flooding victims now eligible for tax relief; Oct. 17 deadline, other dates extended to Nov. 15

IR-2022-149, August 10, 2022 — Storm victims in parts of Missouri now have until November 15, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

New school year reminder to educators; maximum educator expense deduction rises to $300 in 2022

IR-2022-148, August 10, 2022 — As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2022 when they file their federal income tax return next year.

Security Summit releases new data security plan to help tax professionals; new WISP simplifies complex area

IR-2022-147, August 9, 2022 — The Security Summit partners today unveiled a special new sample security plan designed to help tax professionals, especially those with smaller practices, protect their data and information.

IRS: Truckers need to file by August 31 deadline, e-file encouraged

IR-2022-146, August 8, 2022 — The Internal Revenue Service today is reminding those who have registered, or are required to register, large trucks and buses that it’s time to file Form 2290, Heavy Highway Vehicle Use Tax Return. The IRS strongly encourages using e-file and filing before the payment deadline of August 31, 2022, for vehicles first used in July 2022.

IRS: Kentucky storm, flooding victims now eligible for tax relief; October 17 deadline, other dates extended to November 15

IR-2022-145, August 2, 2022 — Storm victims in parts of Kentucky now have until November 15, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today.

Security Summit: Tell-tale signs of identity theft tax pros should watch for

IR-2022-144, August 2, 2022 — With identity thieves continuing to target the tax community, Internal Revenue Service Security Summit partners today urged tax professionals to learn the signs of data theft so they can react quickly to protect clients.

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]