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CSTC Newsletter

September 2023

In This Issue...

  1. Message from the President
  2. Registration is OPEN for the 2023 Fall Forum!
  3. Upcoming Wednesday Webinar
  4. September Events
  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 (previously yellow 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

 

Message from the President
Be Prepared!

September is National Preparedness Month. Somehow that feels a lot more urgent this year after the disasters California has experienced recently – wildfires, severe winter storms and flooding, and even a rare tropical storm.

The recent tropical storm Hilary illustrated the value of preparedness. The last tropical storm before Hilary to come ashore in Southern California was in 1939, and it killed almost 100 people. In contrast, no lives were lost to Hilary. The reason? Warnings that the storm was coming, no doubt aided by the state’s recent experiences of severe storms and their consequences which encouraged people to take the warnings seriously.

The National Preparedness Month program was started by FEMA (the Federal Emergency Management Agency) in 2004 to educate and empower Americans to prepare for and respond to all types of emergencies. There are a lot of resources available to help get prepared.

The IRS urges everyone to develop an emergency preparedness plan and update it annually. They list three steps to get started.

  1. Secure and duplicate essential tax and financial documents. Keep critical original documents, such as tax returns, birth certificates, deeds, titles and insurance policies, in waterproof containers in a secure place. Consider having a trusted person retain copies of these documents in another location, or scan them and store them in a secure digital location.
  2. Create lists of property. Make a detailed inventory of your property and business contents. Take photos or videos, but also write down descriptions including year and model number where appropriate. The IRS has two workbooks to help individuals and businesses compile these lists: Publication 584 – Casualty, Disaster, and Theft Loss Workbook, and Publication 584-B – Business Casualty, Disaster, and Theft Loss Workbook.
  3. 3.     Know where to find information once a disaster occurs. The IRS has a webpage called Tax relief in  disaster situations (https://www.irs.gov/newsroom/tax-relief-in-disaster-situations) with information on tax relief provisions for taxpayers affected by disaster situations, listed by state and by date. It also offers other information, such as disaster assistance and how to reconstruct records.

Financial advisors suggest people consider their financial options before a disaster hits and prepare beforehand for an unexpected financial emergency. These options could include building an emergency fund with three to six months of living expenses, keeping emergency cash on hand in a locked safe, setting up a line of credit, and finding out about borrowing from a 401(k) or other retirement plan.

And the US government is also encouraging everyone to get ready. Their website at https://www.ready.gov/ has lots of information about disasters and emergencies – how to handle weather extremes, how to build an emergency kit, how to make a family emergency plan, getting emergency alerts, and more. There is also a page on preparedness planning for businesses which includes emergency-specific toolkits and information on all aspects of a business emergency plan from planning through implementation.

So the need is there and the tools to accomplish it are there. We just need to do it. Being prepared doesn’t make the crisis disappear, but it does make it more manageable.

Linda Dong
CSTC President 

 

 

Dates: Mondays and Thursdays, November 9, November 13, November 16, and November 20
Time: 4:00 to 7:00 PM PST

Join us as we use a comprehensive case study to take an extensive journey through the lifecycle of a partnership/LLC, exploring each stage from the initial formation through years in business to the final dissolution. We’ll cover many topics along the way, including basis, elections, balance sheets, the centralized partnership audit regime, the pass-through entity tax, and, of course, Forms 1065 and K-1.

IMPORTANT: Every class will be recorded and the materials will be available before and after class. If you miss a class, you will still receive the recording and materials, but you will not receive credit. 

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

Presenters: Linda Dong, EA and Claudia Stanley, CPA, EA

Linda Dong, EA
Linda Dong graduated with honors from the University of Illinois in Chicago with a degree in Accounting. She went to work for the IRS, where she received a very thorough training in taxes and began auditing corporations. Not liking the adversarial relationship inherent in tax audits, Linda left the IRS and started a tax and accounting practice from her home. She grew her practice to include four employees, but eventually downsized and is now once again a sole practitioner working out of her home office. She provides tax and accounting services to individuals, small businesses, and nonprofit organizations. Linda has been an Enrolled Agent (EA) since 1982. Her credentials from the Accreditation Council of Accountancy and Taxation include Accredited Business Accountant (ABA) and Accredited Tax Advisor (ATA). She is a QuickBooks ProAdvisor and frequently teaches classes in accounting and tax to other professionals. Linda is currently serving as First Vice President of the California Society of Tax Consultants and Secretary-Treasurer of the Wine Country Chapter.

Claudia Stanley, CPA, EA
Claudia Stanley, CPA is a graduate of California State University, Fresno, and serves as treasurer of the California Society of Tax Consultants, as education chair of the Central California Chapter of Enrolled Agents, and as treasurer of Fresno’s local chapter of American Business Women’s Association. Claudia is a long-time member of CSTC. In 2016 she was named member of the year of the Central Valley Chapter of CSTC and in 2001 she was named one of the Top Ten Women of the Year in the nation by the American Business Women’s Association. She frequently speaks on various tax topics.


CPE Information:

Each class during this seminar is 3 Federal Tax Law Hours

CTEC: 1000-CE-5311
IRS: 18QC1-T-01875-23-O

Knowledge Level: Basic (No prior knowledge expected) 

Registration (includes all four classes):

Cost:
Member: $325
Non-Member: $390

 


S Corp Balance Sheets
10:00 AM to 12:00 PM PST
Cost: Member: $30 / Non-Member: $60
Wednesday, September 6, 2023

Speaker: Jane Ryder, EA, CPA
2 Federal Tax Law hours (Topics covering existing tax law)
IRS: 18QC1-T-01885-23-O
CTEC: 1000-CE-5322
Knowledge Level: Basic (No prior knowledge expected)

Location:

Online Meeting via Zoom
This will be a 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: 

Develop best practices for preparing and reporting S corp tax return balance sheets. Determine the appropriate way to work with an entity's available accounting reports, from simple P & Ls which require you to develop and maintain the balance sheet to a complete and accurate set of financial statements prepared by the client, and everything in between! We'll discuss balance sheet items affecting basis such as retained earnings, shareholder loans, and non-deductible expenses reported on Schedule M1, decisions regarding classifying transactions based on basis considerations, educating the client on balance sheet issues, and more.

Learning Objectives
1) Learn how to start supporting balance sheets.
2) Understand common balance sheet problems & how to fix them.
3) Discover how balance sheets affect the overall compliance & accuracy of Form 1120-S
4) Receive hands on examples of balance sheets prepared from client records.

Calendar of Events
September 2023

September 5, 2023

The Ins and Outs of Audits and the Do’s and Don’ts of Estate Planning
San Diego - East County Chapter Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 6, 2023

S Corp Balance Sheets
Society Wednesday Webinar
2 Federal Tax Law hours (Topics covering existing tax law)
Click here to learn more and register

LLC’s – To Be or Not To B
Temecula Valley Chapter Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 7, 2023

ETHICS - Family Game Night Edition
San Gabriel Valley Chapter In-Person Meeting
2 Ethics hours (Topics meeting the ethics requirements under Cir 230)
Click here to learn more and register

September 12, 2023

Breakfast Meeting
North County San Diego Chapter In-Person Meeting
1 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 13, 2023

Ethics
San Francisco Bay Chapter Meeting
2 Ethics hours (Topics meeting the ethics requirements under Cir 230)
Click here to learn more and register

Introduction to Tax Benefits of 1031 Exchanges, DSTs and Qualified Opportunity Zones
Orange County Chapter In-Person Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 14, 2023

2023 California Tax Update
North County San Diego Chapter In-Person Meeting
2 California hours (Topics covering California law issues)
Click here to learn more and register

September 15, 2023

Round Table
Temecula Valley Chapter Meeting
1 California hours (Topics covering California law issues)
Click here to learn more and register

September 20, 2023

California and Federal Tax Update
San Jose Chapter 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

A Lawyer Looks at Ethics
Inland Empire Chapter Meeting
2 Ethics hours (Topics meeting the ethics requirements under Cir 230)
Click here to learn more and register

September 21, 2023

ITINs - Who, What, When
San Diego Chapter Virtual Meeting
2 Federal Law hours (Topics covering existing tax law)
Click here to learn more and register

September 26, 2023

Two-Part Meeting: California Tax Update and Ethics – Best Practices in the Midst of Chaos
Central Valley Chapter Virtual Meeting
4 California hours (Topics covering California law issues)
2 Ethics hours (Topics meeting the ethics requirements under Cir 230)
Click here to learn more and register 

Click here to view the CSTC calendar.

Welcome New CSTC Members!

Please help us by joining our newest CSTC Members!

Lidia Alvarado Biswell
Inland Empire Chapter

Liza Flowers
San Diego Chapter

Uzma Khan
Los Angeles Chapter

Maria Kim
Inland Empire Chapter

Kirstin Marx
San Diego-North County Chapter

Daria Nagal
San Diego-North County Chapter

Chloe Pardo
San Diego Chapter

Marcela Romero
Inland Empire Chapter

Carisa Wong
Member-at-Large 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: Those impacted by Idalia qualify for tax relief; Oct. 16 deadline, other dates postponed to Feb. 15 

IR-2023-159, Aug. 30, 2023 — The Internal Revenue Service today announced tax relief for individuals and businesses affected by Idalia in parts of Florida. These taxpayers now have until Feb. 15, 2024, to file various federal individual and business tax returns and make tax payments.

IRS issues guidance on state tax payments

IR-2023-158, Aug. 30, 2023 — The IRS today provided guidance on the federal tax status of refunds of state or local taxes and certain other payments made by state or local governments to individuals. The IRS previously provided guidance on state payments made in 2022 in news release IR-2023-23, IRS issues guidance on state tax payments to help taxpayers.

Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning January 1, 2024

IR-2023-157, Aug. 30, 2023 — The Internal Revenue Service today announced that starting Jan. 1, 2024, businesses are required to electronically file (e-file) Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. This new requirement follows final regulations amending e-filing rules for information returns, including Forms 8300.

Treasury and IRS issue proposed regulations on prevailing wage and apprenticeship requirements for increased energy credit or deduction amounts

IR-2023-156, Aug. 29, 2023 — The Treasury Department and Internal Revenue Service today issued proposed regulations related to the increased tax credit or deduction amounts for clean energy facilities and projects if taxpayers satisfy certain prevailing wage and registered apprenticeship (PWA) requirements.

IRS announces administrative transition period for new Roth catch up requirement; catch-up contributions still permitted after 2023

IR-2023-155, Aug. 25, 2023 — Today, the IRS announced an administrative transition period that extends until 2026 the new requirement that any catch-up contributions made by higher income participants in 401(k) and similar retirement plans must be designated as after-tax Roth contributions.

Interest rates increase for the fourth quarter 2023

IR-2023-154, Aug. 25, 2023 — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning Oct.1, 2023.

Treasury and IRS issue proposed regulations on reporting by brokers for sales or exchanges of digital assets; new steps designed to end confusion, help taxpayers, aid high-income compliance work

IR-2023-153, Aug. 25, 2023 — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations that would require brokers to report sales and exchanges of digital assets by customers.

Reminder to employers and employees: Educational assistance programs can be used to help pay workers’ student loans; free IRS webinar will offer details

IR-2023-152, Aug. 24, 2023 — With the fall college semester quickly approaching, the Internal Revenue Service today reminded employers and employees that under federal law, employers who have educational assistance programs can use them to help pay student loan obligations for their employees.

IRS: Hawaii wildfire victims qualify for tax relief; Oct. 16 deadline, other dates postponed to Feb. 15

IR-2023-151, Aug. 18, 2023 — The IRS today announced expansive tax relief for Hawaii wildfire victims in Maui and Hawaii counties. These taxpayers now have until Feb. 15, 2024, to file various federal individual and business tax returns and make tax payments.

New school year reminder to educators; maximum educator expense deduction is $300 in 2023

IR-2023-150, Aug. 17, 2023 — 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 2023 when they file their federal income tax return next year.

IRS encourages truckers to e-file by August 31 tax payment deadline

IR-2023-149, Aug. 17, 2023 — The Internal Revenue Service today encouraged all those who have registered, or are required to register, large trucks and buses with a taxable gross weight of 55,000 pounds or more to e-file Form 2290, Heavy Highway Vehicle Use Tax Return, by the Aug. 31, 2023, payment deadline for vehicles first used in July 2023.

Inflation Reduction Act 1-year report card: IRS delivers dramatically improved 2023 filing season service, modernizes technology, pursues high-income individuals evading taxes

IR-2023-148, Aug. 16, 2023 — One year into its modernization efforts under the Inflation Reduction Act, the IRS has made significant progress toward its goals of delivering world-class service, upgrading its technology and ensuring high-income taxpayers, large corporations and complex partnerships pay taxes owed.

Security Summit: IRS reminds tax pros to plan, protect, defend against identity theft; special summer series concludes with important reminders

IR-2023-147, Aug. 15, 2023 — Wrapping up a special awareness series, the Internal Revenue Service and the Security Summit partners urged tax pros to maintain robust security measures and take important steps to protect themselves and their taxpayer clients against identity theft.

Taxpayers not under examination now have easier way to electronically request relief for late-filed international documents and forms

IR-2023-146, Aug. 11, 2023 — The IRS announced today the availability of a new option that provides an easier, more efficient way for taxpayers or their tax professionals to submit electronic requests for relief for certain late-filed international documents to improve taxpayer service.

IRS and Treasury issue guidance for owners of solar and wind powered energy facilities in low-income communities for increased energy credit under the Inflation Reduction Act

IR-2023-145, Aug. 10, 2023 — The Department of the Treasury and the Internal Revenue Service today issued final regulations and a revenue procedure to provide guidance for owners of certain solar or wind facilities built in connection with low-income communities.

IRS cautions plan sponsors to be alert to compliance issues associated with ESOPs

IR-2023-144, Aug. 9, 2023 — IRS cautions plan sponsors to be alert to compliance issues associated with ESOPs. As part of an expanded focus on ensuring high-income taxpayers pay what they owe, the Internal Revenue Service today warned businesses and tax professionals to be alert to a range of compliance issues that can be associated with Employee Stock Ownership Plans (ESOPs).

Security Summit reminder: Identity theft red flags tax pros should know

IR-2023-143, Aug. 8, 2023 — In the fourth of a special series, the Internal Revenue Service and the Security Summit partners today urged tax professionals to learn the signs of data theft so they can respond quickly to protect clients.

IRS: Builders of qualified new energy efficient homes might qualify for an expanded tax credit under Section 45L

IR-2023-142, Aug. 7, 2023 — The Internal Revenue Service reminds eligible contractors who build or substantially reconstruct qualified new energy efficient homes that they might qualify for a tax credit up to $5,000 per home.

Treasury and IRS issue guidance relating to section 5000D of the Internal Revenue Code

IR-2023-141, Aug. 4, 2023 — The Department of the Treasury and the IRS today issued guidance for manufacturers, producers and importers of certain drugs regarding the tax imposed by section 5000D of the Internal Revenue Code. Section 5000D was enacted as part of the Inflation Reduction Act.

Home energy audits may qualify for an Energy Efficient Home Improvement Credit

IR-2023-140, Aug. 4, 2023 — The IRS issued Notice 2023-59 today regarding the requirements for home energy audits for taxpayers that want to claim the Energy Efficient Home Improvement Credit.

Treasury and IRS issue proposed regulations identifying certain monetized installment sales as listed transactions

IR-2023-139, Aug. 3, 2023 — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations identifying certain monetized installment sale transactions and substantially similar transactions as listed transactions – abusive tax transactions that must be reported to the IRS.

Security Summit: Tax pros should remain vigilant against phishing emails and cloud-based attacks

IR-2023-138, Aug. 1, 2023 — In the third installment of a special series, the Security Summit partners warned tax professionals to be aware of evolving phishing scams and cloud-based schemes designed to steal sensitive taxpayer information.

News Release and Fact Sheet Archive

Find previous year news releases and fact sheets from 1997 through last month.

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]