KSCPA News

Promote your organization in Skyscapes!

Wed, 22 Feb 2012 12:00:00 EDT

Promote your school or business to "Up and Coming Accounting Professionals" in the annual, "Up Edition" of Skyscapes. This printed magazine is sent out to accounting faculty, students, new CPAs, and KSCPA leaders throughout the state of Kansas.

Contact: Danielle@kscpa.org or call 785.272.4366

Click here for more details

AICPA Fraudulent Email Alert

Wed, 22 Feb 2012 12:00:00 EDT

AICPA FRAUDULENT EMAIL ALERT

On Thursday February 16, 2012, the AICPA became aware of a fraudulent email phishing scam using an AICPA banner and referencing the recipient's possible involvement in an unlawful income tax refund activity that was sent to numerous individuals, CPAs, non-CPAs and members of the general public.

Messages may appear to come from senders such as the AICPA, Southwest Airlines, American Airlines or other well known sources including the Better Business Bureau.

This email is not from the AICPA nor from the AICPA database.
Do not open any attachment or click on any link as the email may contain a virus. While the exact source has not yet been determined, we are actively investigating the situation.

On Friday, February 17, the Better Business Bureau reported that a new round of phishing scams is using a BBB.org email address along with the American Institute of CPAs logo and name. The message informs recipients that their CPA license is being terminated due to tax fraud allegations and encourages them to click on a link and reply to the charges. The link leads to a third party website that downloads a virus on to the recipient's computer.

Do not reply or click on the link in the email
Forward fake BBB emails to phishing@council.bbb.org
Delete the email

If you wish to speak with an AICPA member service specialist, call 888.777.7077 and select option 1.

KSCPA Members Named 2012 Thought Leaders

Wed, 22 Feb 2012 12:00:00 EDT

KSCPA Members Named CPA Practice Advisor's Top 25 Thought Leaders for 2012

L. Gary Boomer, CPA.CITP and Jim Boomer, CPA.CITP have been named among the "Top 25 Thought Leaders" by CPA Practice Advisor.

L. Gary Boomer, CPA.CITP, is the CEO, Senior Consultant, Shareholder of Boomer Consulting. He is active in the KSCPA and is a past chair.

Jim Boomer, CPA.CITP, is the CIO & Shareholder of Boomer Consulting. Jim is a graduate of the KSPCA "20 up to 40" program. Jim is active in the KSCPA and serves on the board of directors and as champion of the Technology Task Force of the KSCPA.

Additionally, two KSCPA speakers and associates have been selected as thought leaders as well; Jennifer Wilson, Co-Founder & Partner, ConvergenceCoaching, LLC, speaker at the Women to Watch conference and Randy Johnston, Executive Vice President, NMGI & K2 Enterprises. K2 Enterprises works with the KSCPA to provide innovative technology courses each year.

KSCPA Submits Written Testimony Opposing HB 2747 - the House Tax Proposal

Thu, 16 Feb 2012 12:00:00 EDT

KSCPA Submits Written Testimony Opposing HB 2747 -
The House Tax Proposal

The KSCPA Special Task Force on Taxation Policy held an urgent conference call on February 15 to review and discuss HB 2747 that was published on February 14. After discussing the implications of the proposal, the Task Force members on the call decided to oppose the bill due to the complexities created by the de-coupling aspects and the establishment of the hard-dollar thresholds which create undue uncertainty for the small business person to effectively budget and finance his or her business and results in unintended adverse tax consequences in certain situations.

Testimony and analysis was prepared and delivered for the February 16 hearings.

KSCPA Testimony on HB 2747 with Analysis

CPA2Biz Announces CPA.com Email Service Available to AICPA Membership Soon

Wed, 15 Feb 2012 12:00:00 EDT

CPA2Biz announces that the CPA.com Email Service will be officially introduced to the AICPA membership in a few days.

Available exclusively for AICPA members, this service is designed to provide an image-enhancing, brand-building solution for CPAs. Whether you are a sole practitioner, work at a larger firm, or work in business, government or education, an individually-branded CPA.com email account can serve as an advantage throughout one’s career. An email address that ends in the CPA.com domain provides a distinct competitive advantage for holders by reinforcing their professional designation: YourName@CPA.com.

The CPA.com Email Service is built on the backbone of Google Business Solutions. We chose Google Business Solutions because we wanted a best-of-breed solution that is at the cutting-edge of cloud-based email technology, security and reliability.

To order your own CPA.com Email account, visit www.CPA.com/email. Feel free to contact us with any questions at support@cpa.com or call 877.767.4459.

House Tax Plan Published with Hearings Set for February 15 & 16

Wed, 15 Feb 2012 12:00:00 EDT

House Tax Plan Published with Hearings Set for February 15 & 16

Kansas House leadership introduced its income tax reduction proposal on February 10 and published the bill on February 14. Moving quickly, hearings on the bill are scheduled for February 15 and 16. Highlights of the bill are a phased in reduction in income tax rates and exemption of non-wage business tax, scaling back of Earned Income Tax Credit in 2014, and partial sunset of sales tax.

To review the entire House Tax Plan, HB 2747, click here. The bill is scheduled for hearings on February 15 and 16.

House Tax Plan - A Summary from Marlee Carpenter

House Leadership introduced its income tax reduction proposal on Friday and it takes at least $159.6 million dollars from transportation to help finance an income tax cut.

Tax Brackets:

The House plan, which has been in the works for several weeks, contains for Tax Year 2013 the existing three brackets with (for joint filers) incomes less than $30,000 taxed at 3.34% (from the current 3.50%); $30,000-$60,000 taxed at 5.99% (current is 6.25%) and an excess of $60,000 taxed at 6.21% (current is 6.45%). For Tax Year 2014, the House plan proposes rates of 3.24% for zero to $30,000; 5.85% for $30,000 to $60,000, and 6.10% for an excess above $60,000. The Governor’s tax plan only proposes two income tax brackets.

Non-wage Business Tax:

While Brownback’s plan exempts all non-wage business income for limited liability and Subchapter S corporations and sole proprietorships, the House plan exempts income for those business models with less than $100,000 income in tax years 2013-2015, then raises the exemption to $250,000 for tax years 2016 and 2017 and eliminates all non-wage business income in tax year 2018

Sales Tax Rate and Transportation:

The 6/10th of a percent sales tax will sunset as currently provided by the law.
The remaining 4/10th of a percent sales tax goes to the Kansas Department of Transportation.
The sales tax revenue for transportation is frozen at Fiscal Year 2013 levels, resulting in a $159.6 million loss to the T-WORKS program.

Earned Income Tax Credit:

The Earned Income Tax Credit, which Brownback eliminated in his plan, would be scaled back from the current 18% to 9% in tax year 2014 in the House plan.

Marlee Carpenter
Bright and Carpenter Consulting
(785) 213-0185 cell phone
marlee@brightcarpenter.com
www.brightcarpenter.com

KSCPA Ranks Fifth on Wichita Business Journals: "Top of the List"

Fri, 10 Feb 2012 12:00:00 EDT

KCPA Ranks on the "Top of the List"

From the Wichita Business Journal

The Wichita Business Journal publishes "Top of the Lists" for its Book of Lists. This month, the KSCPA ranked fifth on the "Top of the List: Professional and trade organizations."

This year the Wichita Business Journal added eight groups to the list, including the KSCPA.

Here are the top five organizations on the list:

1. Young Professionals of Wichita

2. Wichita Area Association of Realtors Inc.

3. Medical Society of Sedgwick County

4. Wichita Area Builders Association

5. Kansas Society of Certified Public Accountants

Gary Allerheiligen Testifies at House Taxation Committee on SB 339/HB 2560

Wed, 08 Feb 2012 12:00:00 EDT

Gary Allerheiligen Testifies at House Taxation Committee on SB 339/HB 2560

Gary Allerheiligen, Chair of the KSCPA Legislative Executive Committee, testified on behalf of the KSCPA on SB 339/HB 2560. The KSCPA Legislative Executive Committee and Special Committee on Taxation Policy met on Monday, February 6 and decided to take a neutral position on the bill.

House Taxation Committee Testimony February 8, 2012

Denise Denning, CPA, Appointed to Kansas Board of Accountancy

Tue, 07 Feb 2012 12:00:00 EDT

Denise Denning, CPA, Appointed to Kansas Board of Accountancy

Governor Brownback recently announced the appointment of Denise Denning, CPA, Wichita, and KSCPA Member, to the Kansas Board of Accountancy. The Kansas Board of Accountancy is the regulatory body authorized to carry out the laws and administrative regulations governing CPAs.

Denise is an Audit Partner and the Audit Services Practice Leader in the Wichita office of Grant Thornton, LLP. She received a Bachelor's Degree from Fort Hays State University. In addition to being a member of the KSCPA, she is a member of the American Institute of CPAs (AICPA) and the American Society of Women Accountants. She is active in the Women's Research Institute of Wichita and the American Society of Women Accountants and served on the KSCPA Board of Directors and other committtees.

BusinessFinance: "Why You Need Internal Audit at the Table"

Thu, 02 Feb 2012 12:00:00 EDT

BusinessFinance: "Why You Need Internal Audit at the Table"

An interesting article in BusinessFinance discusses a recent survey of more than 500 audit and compliance professionals conducted by ACL Services. The survey provides some interesting insights into how internal auditors see their role within an organization, as well as the role of auditing technology in adding value to an organization.

Click here to read the article.

Interested in this topic? Sign up for the KSCPA Risk Management Conference on May 7 on the KSCPA website.

Click here to register for the KSCPA Risk Management Conference, "The Value of Harnessing Corporate Governance, Risk and Compliance"

Governor's Tax Proposal SB 339 and HB 2560 Published

Thu, 02 Feb 2012 12:00:00 EDT

Governor's Tax Proposal SB 339 and HB 2560 Introduced

Governor Brownback's tax plan was published today as SB 339 and HB 2560 (identical) in the Kansas Legislature. A special task force of the KSCPA is studying the bill in depth, preparing communications, developing scenarios to communicate the impact on taxpayers, and preparing for the possibility of testifying at the State House to the House and Senate. Gary C. Allerheiligen, CPA, Chair of the KSCPA Legislative Executive Committee is leading the task force.

Click Here to Read SB339

Current List of 2012 Tax Proposals - Summarized by Bright and Carpenter Consulting, Inc.

Governor’s Tax Plan
Governor Brownback, in his second State of the State address, outlined his income tax reduction proposal to the 2012 Legislature. The plan reduces the individual income tax rate but also eliminates itemized deductions as well as many income tax credits. Here are the basics of the proposal:

Lower individual income tax rates and move from three brackets to two – a 3 percent rate for income under $15,000 ($30,000 for married filing jointly); and a 4.9 percent rate for income $15,000 and over ($30,000 for married filing jointly)
Note: Current rates are 3.5 percent, 6.25 percent, and 6.45 percent
Eliminate individual income tax on non-wage business income (as reported by LLCs, S-corps, and sole proprietorships on lines 12, 17, and 18 of the federal 1040 individual income tax return)
Eliminate itemized deductions
Eliminate subtraction modifications for 529 education savings program and long-term care contract premiums.
Eliminate more than twenty tax credits
Maintain the current sales tax rate
Allows for the 0.4 cent transfer of sales tax to the transportation program in 2013

House Tax Plan
The new House version will keep in place the current statutory tax deductions, credits and exemptions, including the food sales tax refund, historic tax credits and mortgage deduction, while following the Governor’s recommendation of leveraging the EITC with federal Medicaid funds from $60 million to approximately $113 million, insuring and increasing the safety net for our most vulnerable citizens.

The House plan proposes keeping the current statutory sunset of the .6 tenths of 1 percent to the original limit of 5.7 percent.
The House vision of growth will include the Governor’s small business provision, allowing small businesses to retain non-wage profits and to reinvest that investment capital back into the small business and the creation of new jobs throughout Kansas.
While meeting the states' obligations and needs, a 2 percent growth factor, similar to the Governor’s proposal, will be built in the plan and all increased revenue over the 2 percent will be used to first reduce the individual income tax brackets, with an emphasis on reducing the low and moderate tax brackets on an accelerated basis.
The House vision will focus on growth and job creation while insuring a healthy ending cash balance to keep our state on a sound fiscal basis.
The House will endorse the Governor’s plan to accelerate the severance tax collection on new wells.

Senator McGinn’s Tax Plan
Roll back the .6 tenths of the 1-cent sales tax for fiscal year 2013, instead of the statutory 2012

SB 1 (From last Session)
House Sub. for SB 1, the March to Economic Growth Act (MEGA), would provide for reductions in individual and corporation income tax rates beginning in tax year 2012 based on the extent to which a certain specified group of State General Fund (SGF) tax sources have increased over the base year of FY 2010.

Restoring Tax Equity Proposal – by Senator Dick Kelsey

Eliminate the sales tax on food
Eliminate the corporate income tax
Reduce the individual income tax
- Starting in tax year 2012, the bottom bracket would be reduced from 3.50% to 3.35%.
- Starting in tax year 2014, all three brackets would be reduced to 3.10%, 5.60% and 5.90%, respectively.
Reduce the state sales tax by 1.0%
Decrease the rate from 6.3% to 5.3%

From the Kansas Board of Accountancy - Proposed Amendments to Accountancy Regulations

Wed, 01 Feb 2012 12:00:00 EDT

From the Kansas Board of Accountancy

Proposed Amendments to Accountancy Regulations
Public Hearing Set for April 27, 2012

The Kansas Board of Accountancy will hold a public hearing on April 27, 2012 at 9:30 AM on proposed amendments to the accountancy Regulations. The Notice of Hearing and the proposed Regulations may be found on the Board’s webpage at www.ksboa.org Links to the Notice of Hearing and the proposed regulation amendments are found under “What’s New” or by clicking on the “Proposed Regulation Amendments” link located in the navigation bar on the left-hand side of the webpage. (Simply click on green text to link to the notice and proposed regulations.)

Any questions concerning the Regulations may be directed to Susan Somers, Executive Director of the Board. Instructions on submitting written comments concerning the Regulations are found in the Notice of Hearing.

Susan L. Somers
Executive Director

KSCPA Increases Peer Review Administration Fees Effective January 1, 2012

Wed, 01 Feb 2012 12:00:00 EDT

KSCPA Increases Peer Review Administration Fees
Effective January 1, 2012

Historically, the peer review program in Kansas has operated with expenses exceeding fees. It was determined by the Peer Review Process Improvement Task Force that the peer review program should operate on a break-even basis. The KSCPA Executive Committee concurrred and the Board of Directors approved the budget at the November Board meeting, noting the increase in fees to be effective January 1, 2012.

Expenses related to the peer review program include a part-time peer review administrator, technical reviewer fees, oversight fees, peer review conference fees not covered by AICPA, and overhead. The program currently operates on a break-even basis over a period of three years of approximately $255,000 (average of $85,000 per year). It is anticipated that the KSCPA will handle 337 system and engagement reviews over the next three years. Fees are based on whether the firm requires a system or engagement review and whether or not the firm is a member of either the AICPA or KSCPA or a non-member of both organizations.

The fee structure will be evaluated annually during the KSCPA budget process and approved at the board of directors meeting.

Click here for fee schedule for members of the KSCPA and/or AICPA

Click here for fee schedule for non members of the KSCPA and AICPA

American Institute of CPAs and Chartered Institute of Management Accountants Launch New Credential

Tue, 31 Jan 2012 12:00:00 EDT

Creating a New Worldwide Designation to Meet the Challenges of Global Business

A Q&A with Barry C. Melancon, CPA, CGMA and Charles Tilley, FCMA, CGMA

A new designation, the Chartered Global Management Accountant (CGMA), was launched around the world on January 31, 2012 through a joint venture of the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA). The CGMA is a new global designation that recognizes CPAs working in a range of management accounting roles in businesses, industries and governments worldwide. Those with the new designation play a critical role in helping organizations of all sizes achieve sustainable business success. Management accountants, in today’s ever-more complex business environment, have greatly expanded their roles as business partners and must have the ability to synthesize and interpret a wide range of non-financial and financial information. The CGMA signals to employers that the designee has built upon core financial expertise and business acumen and is committed to continually developing his or her management accounting competencies.

CGMA designation-holders have access to a new resource-rich website, www.cgma.org, featuring a global online community of peers, thought leadership papers, practical business tools, CGMA Magazine and Newsletter and other resources to help them stay up-to-date on important professional issues, drive critical business decisions at their organizations and chart the best course to meet their professional objectives.

AICPA President and CEO Barry Melancon, CPA, CGMA and CIMA chief executive Charles Tilley, FCMA, CGMA—a former London partner of KPMG and Group Finance Director of investment banks Hambros PLC and Granville Baird—discuss the new designation, its development and the role of management accountants in the following interview.

Why have the AICPA and CIMA created the CGMA designation?

[Barry C. Melancon]: Combining the AICPA’s expertise with CIMA’s more than 90 years of management accounting leadership is an effective way to create value for our members. For our 140,000-plus members who work in business, industry and government, the CGMA will complement their U.S. CPA and will elevate their value to their employers. The CGMA is poised to be the global designation for management accounting, and this joint venture with CIMA further enhances the position of the U.S. CPA as a worldwide leader.

[Charles Tilley]: We are here to help people and organizations be successful by creating a global standard for management accountants. At the same time we’re bringing our resources together—our intellectual property and our people―and I’m quite convinced that one plus one will equal more than two. What we’re doing is we’re bringing together two large communities of people—CIMA’S 183,000 members and students and the AICPA’s collective 370,000 membership—together, we are over half a million professionals focused upon driving successful organizations.

AICPA members are particularly interested in the AICPA’s advocacy efforts. Can you talk about how advocacy plays into the AICPA-CIMA joint venture?

[Melancon]: The AICPA and the state CPA societies have been extraordinarily effective in influencing legislation on both the state and federal levels. We want to extend our impact even further. Increasingly, international rule-makers and regulators have an indirect impact on the U.S. This was most recently evidenced by the PCAOB’s concept release which, if adopted, would mandate auditor rotation. That issue was also raised last year by the European Commission. In such areas and so much more, the U.S. CPA will benefit by the joint venture leveraging AICPA’s and CIMA’s combined global footprint to advocate for and on behalf of the U.S. CPA anywhere in the world as well as key public interest issues. Through the combined voice of the world’s two leading accountancy organizations, we will have a very important voice on the global stage to proactively address the critical issues for our profession and the public.

What would you say to both CIMA members and CPAs in management accounting about why they should pursue the CGMA designation?

[Tilley]: When you have the CGMA designation, you are telling your employer and others that you understand the language of business from multiple perspectives and know how to connect the dots like no other financial professional. For those of us elsewhere in the accounting world, we know that as a U.S. CPA you will have committed to developing and maintaining your skills, your ethical standards and your integrity. The CGMA will expand these to include the additional and specialized skills and standards you need in business, industry and government and will show that you are an experienced business partner who can help drive organizational success.

[Melancon]: We envision the CGMA as a new type of designation that remains focused on a constantly changing world. Demographers tell us that young professionals, particularly in developed economies, will have multiple careers and different opportunities in their lives. For some it will be physical relocation and for others changes in job classification. For our young professionals now in business, industry or government, or who start their career in public practice, this is a designation that will evolve with them throughout their professional lives, creating value for members and their employers and, ultimately, creating value for the people who use the services CGMAs provide. For CPAs in business and industry who for years have asked for additional support in underscoring their value and contribution in the business world, this designation and its associated resources is a long-sought solution.

How will businesses benefit from the CGMA?

[Tilley]: These days, it doesn’t matter if yours is the smallest organization in the world, you can still be selling anywhere else in the world through the Internet. As a result, global standards and principles are really important. Through CGMA, we’re offering global recognition of a standard of management accounting, a standard of our members’ skills and expertise. A number of CIMA case studies make it clear that this is what employers want. For example, Shell wants a global standard so that when they move their management accountants around the world, they know those people have the same skills and standards. The CGMA proposition includes a virtual network where people can share problems and issues. The best people to answer your problems are people who have done the same thing and have managed to crack that particular problem.

[Melancon]: The role of the management accountant is frequently underestimated; it is much more than a simple accounting commodity. Management accountants can be found at every level of an organization and are at the center of a forward-looking discipline combining both accounting and business expertise. The CGMA is a single designation that benefits large and small, public and private employers across the globe. Business owners and decision makers will confidently recognize the CPA-CGMA designation-holder as a highly skilled business strategist, who can be trusted to guide critical business decisions and drive strong and sustainable performance anywhere in the world.

What is your vision of the future and what does success look like?

[Melancon]: We say the CPA is the trusted business advisor and 50 percent of the CPA population works in business, industry and government. Some of them are in the C-suite, but even if they’re not, a very important aspect of their skill set is being at the decision-making table. We see a group of people who bring trusted information and thinking into that process. The future is you—the trusted business strategist—being recognized for your ability to critically look at opportunities, to think differently and broadly, and bringing the discipline, ethics, commitment and competencies to that decision-making table.

[Tilley]: Success means widespread recognition of the value of management accounting. So many organizations have made poor decisions, mainly through a lack of information, analysis or proper thought. Management accounting ensures that external and internal data are complete and properly analyzed; ensuring that management and the boards can make decisions based upon a complete set of information. We envision more organizations, both in the private and in the public sector, recognizing the value of management accounting, what it brings to the quality of their decision-making and of their governance and oversight. As a benefit of the CGMA, the world will have better-run organizations in both the private and the public sector.

********

The CGMA is available to qualifying AICPA members. Members of the Kansas Society of CPAs who are also members of the AICPA can save $50 off the annual CGMA registration fee. For more information about the CGMA, visit www.cgma.org.

Recognizing & Relating to Four Behavioral Styles

Fri, 27 Jan 2012 12:00:00 EDT

Recognizing & Relating to Four Behavioral Styles

By Rich Drinon

To effectively connect with others one must be able to recognize another person’s behavioral style, and then relate and respond accordingly. DISC has become one of the most widely used behavioral style assessment, profile and training tools in America. DISC is an acronym that stands for Dominant, Interactive, Steady and Compliant styles (Allesandra, T., 2010).

This article provides a practical overview of how to recognize and relate to each of these types based on their style. An online DISC assessment is available from Drinon & Associates, Inc. for determining one’s own style, or that of followers or employees. See the assessment purchase contact information at the end of this article.

Click here to read the complete article

KSCPA Professional Development Schedule - Plan Your 2012 Education Today!

Thu, 26 Jan 2012 12:00:00 EDT

2012 Professional Development Schedule

The 2012 Professional Development Schedule is now available for review. Plan your CPE for 2012 through an Association that works for you! Courses and conferences will soon appear on the KSCPA website for registration. If you want to register now or need further information, please contact danielle@kscpa.org.

Click Here to Download the Schedule

NASBA and AICPA Give Final Approval to CPE Provider Standards

Wed, 25 Jan 2012 12:00:00 EDT

NASBA and AICPA Give Final Approval to Revisions
To Continuing Professional Education Provider Standards

NASHVILLE, TN and NEW YORK, NY (January 24, 2012) – The Boards of Directors for both the National Association of State Boards of Accountancy ( NASBA) and the American Institute of Certified Public Accountants ( AICPA) today announced final approval of the proposed revisions to the Statement on Standards for Continuing Professional Education (CPE) Programs (Standards), the framework for the development, presentation, measurement and reporting of CPE programs.

The approval comes following a collaborative analysis of the Standards by a joint AICPA/NASBA CPE Standards Committee and an extended public comment period of the Standards exposure draft. Overall, the submitted comments did not result in major changes or revisions to the Exposure Draft of the Standards. The most significant change to the Exposure Draft was to provide additional time on the front end for the implementation of the revised Standards.

The revised Standards will be effective as follows:

For group programs and independent study – July 1, 2012
For self-study programs in development as of December 31, 2011 and/or being published for the first time – July 1, 2012
For self-study programs already in existence as of December 31, 2011 – March 1, 2014

The newly revised Standards will provide flexibility for innovation in learning techniques and allow for future considerations around outcome-based learning. Significant revisions are in the areas of group internet-based learning and self-study programs; issuance requirements for half credits under self study programs; promotional/course announcement information for in-house training programs and alternate methods for calculating CPE credits for self-study programs.

More information about the Standards and the implementation process is available on the NASBA website at www.learningmarket.org/page.cfm/Link=114/nocache=12082011 and the AICPA website at http://www.aicpa.org/Advocacy/State/Pages/FinalApprovalCPE.aspx.

About NASBA
Celebrating more than 100 years of service, the National Association of State Boards of Accountancy (NASBA) serves as a forum for the nation’s state boards of accountancy, which administer the Uniform CPA Examination, license over 650,000 certified public accountants and regulate the practice of public accountancy in the United States.
NASBA’s mission is to enhance the effectiveness of state boards of accountancy in meeting their regulatory responsibilities. The Association promotes the exchange of information among accountancy boards, serving the needs of the 55 U.S. jurisdictions. NASBA is headquartered in Nashville, TN, with a satellite office in New York City and an International Computer Testing and Call Center in Guam. To learn more about NASBA, visit www.nasba.org.

About AICPA
The American Institute of Certified Public Accountants ( www.aicpa.org) is the world’s largest association representing the accounting profession, with nearly 377,000 members in 128 countries. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting; membership is also available to accounting students and CPA candidates. The AICPA sets ethical standards for the profession and U.S. auditing standards for audits of private companies, non-profit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination. The AICPA maintains offices in New York, Washington, DC, Durham, N.C., Ewing, N.J. and Lewisville, Texas. Media representatives are invited to visit the AICPA Press Center at http://www.aicpa.org/Press.

Third Party Verification Letters by CNA

Wed, 25 Jan 2012 12:00:00 EDT

Increasingly, CPAs are receiving requests from clients, lenders, loan brokers, health insurance providers, adoption agencies, regulators and various other agencies to confirm client information. In most cases, CPAs are asked to sign a confirmation letter containing specific language, a verification statement or a certification form.

The information may relate to a pending loan, employee medical insurance, child adoption application or use-tax certification. The most common type of requests is associated with mortgage loan applications of tax return preparation clients who are self-employed.

Ideally, clients should provide any requested information directly to third parties. If a client asks the CPA to send a copy of his or her tax return to a third party, the CPA must obtain the client’s signed written consent prior to doing so. Protecting the confidentiality of client information is required under professional ethics standards, the Gramm-Leach-Bliley Act, the Internal Revenue Code, state board of accountancy rules or regulations, and federal and state privacy statutes and regulations.

For a complete handbook and sample letter of response, members click here.

Five Tax Plan Proposals In Play at Kansas State House

Tue, 24 Jan 2012 12:00:00 EDT

Current List of 2012 Tax Proposals

Governor’s Tax Plan

Brownback, in his second State of the State address, outlined his income tax reduction proposal to the 2012 Legislature. The plan reduces the individual income tax rate but also eliminates itemized deductions as well as many income tax credits. Here are the basics of the proposal:

Lower individual income tax rates and move from three brackets to two – a 3 percent rate for income under $15,000 ($30,000 for married filing jointly); and a 4.9 percent rate for income $15,000 and over ($30,000 for married filing jointly).

Note: Current rates are 3.5 percent, 6.25 percent, and 6.45 percent

Eliminate individual income tax on non-wage business income (as reported by LLCs, S-corps, and sole proprietorships on lines 12, 17, and 18 of the federal 1040 individual income tax return).
Eliminate itemized deductions
Eliminate subtraction modifications for 529 education savings program and long-term care contract premiums.
Eliminate more than twenty tax credits.
Maintain the current sales tax rate.
Allows for the 0.4 cent transfer of sales tax to the transportation program in 2013.

House Tax Plan

The new House version will keep in place the current statutory tax deductions, credits and exemptions, including the food sales tax refund, historic tax credits and mortgage deduction, while following the Governor’s recommendation of leveraging the EITC with federal Medicaid funds from $60 million to approximately $113 million, insuring and increasing the safety net for our most vulnerable citizens.
The House plan proposes keeping the current statutory sunset of the .6 tenths of 1 percent to the original limit of 5.7 percent.
The House vision of growth will include the Governor’s small business provision, allowing small businesses to retain non-wage profits and to reinvest that investment capital back into the small business and the creation of new jobs throughout Kansas.
While meeting the states' obligations and needs, a 2 percent growth factor, similar to the Governor’s proposal, will be built in the plan and all increased revenue over the 2 percent will be used to first reduce the individual income tax brackets, with an emphasis on reducing the low and moderate tax brackets on an accelerated basis.
The House vision will focus on growth and job creation while insuring a healthy ending cash balance to keep our state on a sound fiscal basis.
The House will endorse the Governor’s plan to accelerate the severance tax collection on new wells.

Senator McGinn’s Tax Plan

Roll back the .6 tenths of the 1-cent sales tax for fiscal year 2013, instead of the statutory 2012

SB 1 (From last Session)

House Sub. for SB 1, the March to Economic Growth Act (MEGA), would provide for reductions in individual and corporation income tax rates beginning in tax year 2012 based on the extent to which a certain specified group of State General Fund (SGF) tax sources have increased over the base year of FY 2010.

Restoring Tax Equity Proposal – by Senator Dick Kelsey

Eliminate the sales tax on food
Eliminate the corporate income tax
Reduce the individual income tax
- Starting in tax year 2012, the bottom bracket would be reduced from 3.50% to 3.35%.
- Starting in tax year 2014, all three brackets would be reduced to 3.10%, 5.60% and 5.90%, respectively.
Reduce the state sales tax by 1.0%
Decrease the rate from 6.3% to 5.3%.

2012 "20 up to 40" Leadership Group Kick-off

Fri, 20 Jan 2012 12:00:00 EDT

"20 up to 40" Leadership Program Commences for 2012

The "20 up to 40" 2012 participants met for the first time in Topeka. In addition to meeting with the Governor for a photo op, they watched LEADERSHIP IN ACTION at the State House moderated by Marlee.They met with legislative staff, Representative Carlson and Senator Donovan spoke to the group, they toured the Department of Revenue, and they sat in on an interesting Board of Accountancy meeting. Rodney Van Norden, Chair of the BOA, welcomed the group and provided background. The group hosted the 4th Annual KSCPA Legislative Reception.

Robert Schuster spoke to the group about leadership and challenged them to review and make recommendations about the KSCPA vision and mission.

Click here to view legislative update video from the KSCPA legislative reception hosted by the "20 up to 40".

The next session will be held in Lawrence on May 22-23.

Members: Check out AICPA Tax Team January 2012 Tax Update

Wed, 18 Jan 2012 12:00:00 EDT

Ed Karl, CPA, Vice President, Taxation, AICPA, presented a briefing on January 17 to state society CEOs and tax committee members. Go to Member Resources - Tools from the AICPA to access a recording of this briefing.

Interested in joining the KSCPA Taxation Task Force? Please contact mary@kscpa.org. As a member, you receive invitations to IRS workshops, AICPA events, and opportunities to play a role in the leadership of the KSCPA regarding taxation issues in Kansas. Members of the Taxation Task Force are also invited to participate on the steering committees for the Conference on Kansas Taxes and Kansas Tax Conference. Steering committees participate in conference calls, identify topics and speakers, moderate sessions (introducing speakers), and receive a free registration to the conference.

Kansas 2012 Legislative Session Off to a Fast Start

Fri, 13 Jan 2012 12:00:00 EDT

The 2012 Session is off to a fast start. This week, Governor Brownback, in his second State of the State address Wednesday evening, outlined his budget and income tax reduction proposals to the 2012 Legislature. Following are some highlights of those proposals.

Governor’s Tax Plan

His proposed tax plan reduces the individual income tax rate, but also eliminates itemized deductions as well as many income tax credits. It does not propose any changes to the corporate income tax rates or structure. Here are the basics of the proposal:

Governor Brownback, in his second State of the State address on Wednesday night, outlined his income tax reduction proposal to the 2012 Legislature. The plan reduces the individual income tax rate but also eliminates itemized deductions as well as many income tax credits. Here are the basics of the proposal:

Lower individual income tax rates and move from three brackets to two – a 3 percent rate for income under $15,000 ($30,000 for married filing jointly); and a 4.9 percent rate for income $15,000 and over ($30,000 for married filing jointly)

Note: Current rates are 3.5 percent, 6.25 percent, and 6.45 percent

Eliminate individual income tax on non-wage business income (as reported by LLCs, S-corps, and sole proprietorships on lines 12, 17, and 18 of the federal 1040 individual income tax return)
Eliminate itemized deductions
Eliminate subtraction modifications for 529 education savings program and long-term care contract premiums.
Eliminate more than twenty tax credits
Maintain the current sales tax rate
Allows for the 0.4 cent transfer of sales tax to the transportation program in 2013

Attached is a link to view the Governor’s briefing packet and information associated with the plan. http://media.kansas.com/smedia/2012/01/11/19/11/WsEau.So.80.pdf. Information hearings on the Governor’s Income Tax Proposal began today and we expect the bills to be officially introduced next week Thursday.

Governor’s Budget

The Governor also unveiled his budget for 2013 which includes over a 7.5 ending balance. The House and Senate Appropriation committees studied the details on the Governor’s proposed budget Thursday. Attached is a copy of the documents presented to the committees.

2012 Proposed Kansas Budget Details

Legislation Introduced

CPA Bill Tracker (Legislation Introduced) 1 13 2012

The 2012 Legislative Session is a carry-over year (2011 bills still alive may be acted upon) and we are assessing the bills from last year to determine which will be relevant this session. Those bills will be included in your bill tracker next week.

Natalie S. Bright, J.D.
Bright and Carpenter Consulting, Inc.
825 S. Kansas, Ste. 502
Topeka, KS 66612
www.brightcarpenter.com

Cell: 316.640.1422

Accounting Today: Taxpayer Advocate Sees Threat from Increased IRS Automation and Workload

Thu, 12 Jan 2012 12:00:00 EDT

January 12, 2012:

National Taxpayer Advocate Nina E. Olson’s annual report to Congress highlights the combination of an expanding IRS workload and declining resources as the most serious problem facing taxpayers.

To read the entire Accounting Today article, click here.

Governor Brownback Outlines "Pro-Growth Tax Policy" in 2012 State of the State

Thu, 12 Jan 2012 12:00:00 EDT

Governor Brownback Outlines "Pro-Growth Tax Policy"
in 2012 State of the State

On January 11, 2012, in the Kansas State of the State Speech by Governor Sam Brownback, citizens of Kansas were told "the State of our State is STRONG - and getting STRONGER!" This is good news for CPAs and the organizations they serve. To build strength, the Governor proposes a "pro-growth tax policy." CPAs in Kansas are engaged in the process, providing remarks at house and senate taxation committees and meeting with the Governor and Secretary of Revenue to provide input on the proposed policy.

Click here to review the entire text of the Governor's 2012 State of the State.

CPA Firm YouTube Video Goes Viral - Social Media Used to Raise Awareness of CPAs

Wed, 11 Jan 2012 12:00:00 EDT

CPA Firm YouTube Video Goes Viral - Social Media Used to Raise Awareness of CPAs

WithumSmith+Brown, CPAs used a video to energize attendees at their annual State of the Firm meeting. They also used social media to get the word out about the video which ultimately went "viral."

Keep in mind if you want to do something similar, that YouTube does not support the use of copyrighted music, so make sure you pay the royalties or use music available in the public domain, or better yet, hire a muscian to create a unique piece just for you!

Click here to view video.

64 CPAs Serve in State Legislatures

Wed, 11 Jan 2012 12:00:00 EDT

64 CPAs Serve in State Legislatures

Map of CPAs in State Legislatures

Following a recent survey regarding CPAs in state public service, the AICPA compiled a list of CPAs serving in state legislatures. There are 64 CPAs currently serving in state legislatures across the country with 4 in leadership positions. There is 1 governor who is a CPA (Michigan) and 1 Lieutenant Governor who is a CPA (Ohio). There are also 12 CPAs who serve as either State Auditor, Comptroller, or Controller. Steve Anderson is the Budget Director of Kansas and is a member of the KSCPA.

Start the Year with a Social Media Strategy

Mon, 09 Jan 2012 12:00:00 EDT

Start the Year with a Social Media Strategy

Tips for CEOs from
Tom Hood, CPA, CEO of the Maryland Association of CPAs

Tom Hood, CPA, CEO of the Maryland Association of CPAs offers valuable information for CEOs and others in adopting an effective social medial strategy.

Click here to access Tom's blog on the topic that includes links to a recent presentation to the CEOs of state CPA associations at their Mid Winter Meeting in Tucson, AZ.

Kids TLC Thank You Letter for KSCPA Member Contributions

Mon, 09 Jan 2012 12:00:00 EDT

KidsTLC Thanks KSCPA for Partnership and DonationsKidsTLC

KidsTLC, Olathe, sent the following letter thanking the KSCPA and the 2011 "20 up to 40" program for partnership and donations. The organization wanted to let the KSCPA what donations can do to help change someone's life.

Click here to read the letter

Arkansas Chamber Tax Study has Lessons for Kansas

Fri, 06 Jan 2012 12:00:00 EDT

Arkansas Chamber Tax Study has Lessons for Kansas

January 6, 2012
Bernie Koch

A detailed business tax study of eight states shows Missouri has the most competitive tax structure in the region, not Texas, according to Bernie Koch, Executive Director of the Kansas Economic Progress Council.

Koch says the study, done for the Arkansas Chamber of Commerce by Ernst & Young, shows Texas is competitive in a few areas, including business headquarters and support services. But, the Lone Star State has the highest average effective property taxes on business in the region.

“There are some other surprises here that I hope the Kansas Legislature studies as it reviews the Kansas tax structure,” said Koch. “I think anybody who looks at it will see that the Ernst & Young study is a very valuable analysis.”

The report looks at the effective tax rate after statutory tax credits on different kinds of businesses in eight states in the region, including Kansas. The eight states are: Arkansas, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee, and Texas. The taxes included are corporate income taxes, franchise taxes, sales and use taxes on business purchases, and local property taxes.

The types of companies considered are corporate headquarters, research and development, manufacturing, food processing, renewable energy, and business support services.

Estimates of state and local business tax burdens by industry come from Ernst & Young’s business tax competitiveness model (BTCM). The BTCM calculates current state and local business tax burdens imposed on new in-state capital investments, and projects these burdens by year over a 30-year life span.

Some of the findings:

Missouri is the real tax competitor in the region, not Texas. Missouri ranks better than Kansas in competitive tax rates in all categories of business. In fact, Missouri out-competes all of the other states studied in five of the eight categories: research and development, durable goods manufacturing, food product manufacturing, renewable energy equipment manufacturing, and motor vehicle parts manufacturing.
Texas is most competitive in the region for company headquarters and business support services, but scores poorly on tax burden for renewable energy equipment manufacturing.
Texas has the highest effective tax rate in the region for motor vehicle parts manufacturing.
Kansas beats Texas in both renewable energy equipment manufacturing and motor vehicle parts manufacturing. Kansas beats all other states studied in these categories except Missouri.
Kansas beats Texas slightly on effective tax rate for durable goods manufacturing.
Kansas ranks worst in the region for state and local taxes on business support services.
Kansas ranks second worst in the region for state and local taxes on research and development operations
Effective tax rates vary widely in Kansas by business. For example, Kansas business support services have an effective tax rate of 19.7% while durable goods manufacturing has an effective tax rate of 8.1%. Kansas has the highest tax burden in the region for services, but among the lowest for manufacturing.
Tax credits in a state make a difference in competitiveness. Kansas’ rank jumps up one position among the states in durable goods manufacturing due to tax credits. It appears that Kansas would be less competitive in tax structure among these states if business tax credits are eliminated, as some believe will be proposed when the Legislature convenes.
Missouri’s tax credits average 27%, the highest of the states studied, and have a significant impact on that state’s business tax rankings.
Texas has high effective property taxes in the region in six of the eight categories and is second-highest in the category of renewable energy equipment manufacturing. The Kansas Economic Progress Council believes Texas high property taxes on business are, in part, the result of the lack of an individual income tax to help fund government services.

Ernst & Young is one of the largest professional services networks in the world and one of the “Big Four” accounting firms. It says that the tax burden estimates in the study can be used to evaluate how competitive state and local business taxes are for new investments and job creation. The estimates measure the “additional state and local taxes that a new or expanding business would pay on the capital investment and economic activity” added to a state’s economy.

An executive summary of the study was given to Arkansas lawmakers at an interim Joint Revenue and Tax Committee meeting on November 17. The complete study was released December 6 to the media and is available online. (Note: The cover page says DRAFT, but this is the version released to the media.)

Visit the Kansas Economic Progress Council's website to learn more www.ksepc.org

Bright and Carpenter Consulting, Inc - Legislative Update

Fri, 06 Jan 2012 12:00:00 EDT

Outlook: Kansas Budget & Tax Reform

How the FY 2012 budget will end and FY 2013 budget showdown will begin during the 2012 legislative session largely depends on revenue and State General Fund receipts. Good news: Kansas revenue, and particularly tax receipts, continues to increase.

Tax plan to be announced

A task force is nearing completion of recommendations to be presented to Governor Brownback for modifying the state’s tax code. Kansas Revenue Secretary Nick Jordan has said the pro-posal will take a broad approach to reducing taxes and putting more money in Kansans’ pockets. It will also increase private sector employment and increase capital flow. Governor Brownback is anticipated to announce his tax plan during his 2012 State of the State Address.Secretary Jordan has been traveling the state gathering feedback on the admin-istration’s ideas. Over the next month, Governor Brownback and Secretary Jordan will develop a final proposal based on that feedback. The tax plan will be debated during the 2012 Legislature in January. It is expected to be a plan that dramatically reduces or eliminates the state income tax, which Governor Brownback believes will make Kansas more economically competitive with states that don’t have one.

The Consensus Revenue Estimate Group met on November 4, 2011, and adjusted all estimates for FY 2012 upward. In addition, the group developed the initial estimate for FY 2013. For FY 2012, the estimate was increased by $199.1 million (3.3%) above the previous estimate. This is a 6.2% growth above FY 2011 receipts. The first estimate for FY 2013 is $6.291 billion, 0.7% above the newly revised FY 2012 figure.

There are several factors that con-tribute to this increase, including per-sonal income increasing, which is above 2010 level, and unemployment rate decreasing. Additionally, a number of changes in state tax law enacted in 2011, which will be implemented on January 1, influenced FY 2013 estimates more heavily than the FY 2012 estimates, including repeal of a sales tax exemption for projects that had previously qualified for a business and job development income tax credit program; and creation of a new expensing deduction for Kansas income taxpayers.

Once the plan is announced, we’ll share the details with you. Stay tuned.

Click Here to Read the Entire Newsletter

KSCPA News

Promote your organization in Skyscapes!

AICPA Fraudulent Email Alert

AICPA FRAUDULENT EMAIL ALERT

KSCPA Members Named 2012 Thought Leaders

KSCPA Members Named CPA Practice Advisor's Top 25 Thought Leaders for 2012

KSCPA Submits Written Testimony Opposing HB 2747 - the House Tax Proposal

KSCPA Submits Written Testimony Opposing HB 2747 - The House Tax Proposal

CPA2Biz Announces CPA.com Email Service Available to AICPA Membership Soon

CPA2Biz announces that the CPA.com Email Service will be officially introduced to the AICPA membership in a few days.

House Tax Plan Published with Hearings Set for February 15 & 16

House Tax Plan Published with Hearings Set for February 15 & 16

KSCPA Ranks Fifth on Wichita Business Journals: "Top of the List"

KCPA Ranks on the "Top of the List"

From the Wichita Business Journal

1. Young Professionals of Wichita

2. Wichita Area Association of Realtors Inc.

3. Medical Society of Sedgwick County

4. Wichita Area Builders Association

5. Kansas Society of Certified Public Accountants

Gary Allerheiligen Testifies at House Taxation Committee on SB 339/HB 2560

Gary Allerheiligen Testifies at House Taxation Committee on SB 339/HB 2560

Denise Denning, CPA, Appointed to Kansas Board of Accountancy

Denise Denning, CPA, Appointed to Kansas Board of Accountancy

BusinessFinance: "Why You Need Internal Audit at the Table"

BusinessFinance: "Why You Need Internal Audit at the Table"

Governor's Tax Proposal SB 339 and HB 2560 Published

Governor's Tax Proposal SB 339 and HB 2560 Introduced

Current List of 2012 Tax Proposals - Summarized by Bright and Carpenter Consulting, Inc.

From the Kansas Board of Accountancy - Proposed Amendments to Accountancy Regulations

From the Kansas Board of Accountancy

KSCPA Increases Peer Review Administration Fees Effective January 1, 2012

KSCPA Increases Peer Review Administration Fees Effective January 1, 2012

American Institute of CPAs and Chartered Institute of Management Accountants Launch New Credential

Creating a New Worldwide Designation to Meet the Challenges of Global Business

A Q&A with Barry C. Melancon, CPA, CGMA and Charles Tilley, FCMA, CGMA

Recognizing & Relating to Four Behavioral Styles

Recognizing & Relating to Four Behavioral Styles

By Rich Drinon

KSCPA Professional Development Schedule - Plan Your 2012 Education Today!

2012 Professional Development Schedule

NASBA and AICPA Give Final Approval to CPE Provider Standards

NASBA and AICPA Give Final Approval to Revisions To Continuing Professional Education Provider Standards

Third Party Verification Letters by CNA

Five Tax Plan Proposals In Play at Kansas State House

Current List of 2012 Tax Proposals

Governor’s Tax Plan

House Tax Plan

Senator McGinn’s Tax Plan

SB 1 (From last Session)

Restoring Tax Equity Proposal – by Senator Dick Kelsey

2012 "20 up to 40" Leadership Group Kick-off

"20 up to 40" Leadership Program Commences for 2012

Members: Check out AICPA Tax Team January 2012 Tax Update

Kansas 2012 Legislative Session Off to a Fast Start

Accounting Today: Taxpayer Advocate Sees Threat from Increased IRS Automation and Workload

Governor Brownback Outlines "Pro-Growth Tax Policy" in 2012 State of the State

Governor Brownback Outlines "Pro-Growth Tax Policy" in 2012 State of the State

CPA Firm YouTube Video Goes Viral - Social Media Used to Raise Awareness of CPAs

CPA Firm YouTube Video Goes Viral - Social Media Used to Raise Awareness of CPAs

64 CPAs Serve in State Legislatures

64 CPAs Serve in State Legislatures

Start the Year with a Social Media Strategy

Start the Year with a Social Media Strategy

Tips for CEOs from Tom Hood, CPA, CEO of the Maryland Association of CPAs

Kids TLC Thank You Letter for KSCPA Member Contributions

KidsTLC Thanks KSCPA for Partnership and DonationsKidsTLC

Arkansas Chamber Tax Study has Lessons for Kansas

Arkansas Chamber Tax Study has Lessons for Kansas

Bright and Carpenter Consulting, Inc - Legislative Update

Outlook: Kansas Budget & Tax Reform How the FY 2012 budget will end and FY 2013 budget showdown will begin during the 2012 legislative session largely depends on revenue and State General Fund receipts. Good news: Kansas revenue, and particularly tax receipts, continues to increase.

Tax plan to be announced

KSCPA Submits Written Testimony Opposing HB 2747 -
The House Tax Proposal

KSCPA Increases Peer Review Administration Fees
Effective January 1, 2012

NASBA and AICPA Give Final Approval to Revisions
To Continuing Professional Education Provider Standards

Governor Brownback Outlines "Pro-Growth Tax Policy"
in 2012 State of the State

Tips for CEOs from
Tom Hood, CPA, CEO of the Maryland Association of CPAs

Outlook: Kansas Budget & Tax Reform

How the FY 2012 budget will end and FY 2013 budget showdown will begin during the 2012 legislative session largely depends on revenue and State General Fund receipts. Good news: Kansas revenue, and particularly tax receipts, continues to increase.