Institute of Financial Operations - North Texas
4Q 2014 Meeting Minutes
The quarterly meeting of the North Texas Chapter of the Institute of Financial Operations was held on
November 19, 2014 at the Richardson Civic Center in Richardson, Texas.
Lunch and networking started at 11:00 AM. Sandy Champion, President of the NTIFO Chapter, called the
meeting to order and thanked our special guest, Ken Brown, CEO of the Institute of Financial Operations
for providing the luncheon for our meeting and Sandra Gennaro and the City of Richardson for providing
the facility.
Sandy announced that she and Ken discussed the possibility of having a one-day regional conference in
North Texas. There would be six sessions making it a mini-Forum. Sandra Gennaro has generously
offered the Richardson Civic Center as a possible venue. It would be an all-day event including
professional presenters that have appeared at the annual IFO Fusion and would provide certification
credits for CAPP and CAPA. Ken stated that the membership will be polled for topics of interest as well
as dates.
Sandy welcomed Ken Brown to speak to the chapter. He expressed appreciation to Sandy and the North
Texas Chapter, considered “the best” of the local IFO chapters! The IFO is focusing on providing new
services to benefit the membership. A new online self –study educational portal will be introduced in
December. It will include numerous Webinar sessions and a chat room for questions. Starting in
January, the magazine will have a new look. The new editor-in-chief is writer and industry expert Mary
Schaeffer. Ms. Schaeffer has written many books and articles related to accounts payable and accounts
receivable and is a notable in IFO circles. The IFO has recently extended its CAPP and CAPA certification
to the UK and will extend it to Canada in the next year. Ken is very excited about the Fusion in May,
which will include a lot of worthwhile sessions for members and chapter leaders. Frank Abagnale is
going to speak! Everyone needs to be sure and attend this Fusion to hear his fascinating story. A new
Member Hall of Fame will recognize some of the long-term leaders. We hear that our very own Sandy
Champion will be one of the deserving recipients of this tribute! Ken announced a drawing for a $1,500
Fusion registration to be given to a lucky attendee at this meeting!
Attendee introductions were made.
Sandy introduced Riley Stroik and Mike Weisenbeck of Convey to present our educational topic.
Tax information Reporting Overview
Convey is the industry leader in providing tax information reporting and withholding management
solutions. In business for nearly 30 years, they serve nearly half of the Fortune 500 and are the #1
private filer of 1099 forms in the U.S (250 million last year!). They are recognized thought leaders with
IRPAC and ETAAC.
Our agenda covered the specific forms involved in non-payroll tax reporting, including 1099, 1042-S, W9, W-8, B-Notice, and ACA reporting, and focused on changes to these forms. Contact information was
provided so that attendees could email additional questions that could not be covered in today’s
presentation.
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The latest tax gap is $450 billion. 84% of the gap is caused by underreporting of income, 10% by
underpayment of taxes, and 6% by non-filing of taxes. To increase revenue without increasing taxes, the
IRS is focusing on information reporting and related penalties to reduce the gap.
1099
The IRS is creating new information reporting. Recently added forms include 1098T and 5498 added to
P-Notice, and the 1099K. Penalties for 1099 non-compliance have increased and abatements have
decreased. Companies that had past success with penalty abatements are now being denied.
Although the Combined Federal State (CFS) reporting program continues to grow, more states are now
requiring direct reporting. EINs on recipient statements may now be truncated. This does not include
EINs for payers or statements sent to the IRS.
1042-S
1042-S reporting is required when a payment of U.S. source income is made to a non-U.S. person. This
includes payments to vendors for services, payments to board members, related legal entities,
shareholder dividends, and interest. If your organization makes payments of U.S. source income to
non-U.S. persons, you must complete both Form 1042-S and Form 1042 filing requirements.
W-9
This is the form used to provide a correct TIN number to the person required to file information returns
to the IRS. Required reporting includes non-employee compensation, rents, awards, real estate
transactions, mortgage interest paid, acquisition or abandonment of secured property, cancellation of
debt, and contributions made to an IRA. The December 2014 revision of the W9 includes instructional
changes to assist the requestor and recipient to correctly fill out the form.
W-8
This form is requested by withholding agents and filled out by foreign entities (individuals and
companies) in order to claim exempt status from tax withholdings. There are many different types of
W-8 forms. The IRS came out with new W8BEN forms in 2014. The W8BENE is for companies and the
W8BEN is for individuals. The W8BENE is eight pages long. This Historian can attest that foreign entities
sometimes have great difficulty understanding the need for this form, much less how to complete it.
We hope that time and experience will improve the process.
B-Notice
Each year the IRS sends out B-Notices for the prior year 1099s that had missing or incorrect Name/TIN
combinations.
Side note: When you receive the annual B-Notices, the first thing you should do is review the original
W-9 received from the vendor to make sure that a simple typo hasn’t occurred. If it did, re-match the
correct number in the IRS TIN Matching system and correct your databases.
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If the vendor provided incorrect information, you must begin the B-Notice process. Filers have 15
business days to send B-Notice letters to the payees and the recipients have 15 days to respond. If you
fail to collect correct information, you must begin backup withholding. You should withhold
immediately for missing TINs. First B-Notice letters should be sent to accounts identified as one BNotice letter received in three years. Second B-Notice letters should be sent to accounts with two BNotices within three calendar years. The IRS does not track this for you! Be sure and keep records of BNotices and actions taken for at least three years so that you can track it.
For tax year 2014 B-Notices, you must collect a signed W9 form for each account with a First B-Notice. If
you get a Second B-Notice, you must obtain a copy of the payee’s SSN card.
Companies may receive a Notice of Proposed Penalty if incorrect 1099s exceed 1% of the total, if returns
were late, or a bad format (wrong media) was used. The penalties range from $30 per form for 30 days
or less to $250 per form (no limitations) for intentional disregard. Convey strongly recommends using
the free IRS TIN Matching system or one of the paid solutions to make sure that the names and TINs
match before filing 1099s.
ACA (Affordable Care Act)
There are five pillars to the ACA:
 Minimum Essential Coverage- The minimum that a health plan needs to include.
 Healthcare Exchanges – New marketplaces for consumer health plans.
 Healthcare Tax / Subsidies - There is a new sales tax on health insurance plans to fund programs
for individuals that need subsidized care.
 Medicare Advantage Plan Changes – Medicare has lost funding that has gone to other areas of
the program.
 Medical Loss Ratio – If you offer insurance, there needs to be data submitted on the proportion
of premium revenues that are allocated to clinical services. If those proportions do not meet
the minimum percentage, there will need to be rebates issued to enrollees based on that
information.
Beginning with the 2014 tax year, individuals are going to have to show that they have insurance
coverage when filing annual tax returns. Large employers with 50 or more employees will have to
report that they offered coverage and that it met minimum essential requirements.
The ACA has business implications for insurers as well as employers. Cost increases, change
management, increased regulatory risks and reporting complexity will affect companies for the next few
years, at least. Companies are still trying to determine which area of the company will be responsible
for the data and reporting (HR, Tax, or ?).
ACA Information Reporting
Whoever is providing the coverage is required to report showing that minimum essential coverage was
provided:
 Coverage Reporting: Under Section 6055, insurers will file 1094-B to the IRS and 1095-B to the
individuals.
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Large Employer Reporting (50 or more employees): Under Section 6056, employers will file
1094-C to the IRS and 1095-C to the individuals.
Large Self-Insured Employer Reporting: Under Sections 6055 and 6056, employers will file 1094C to the IRS and 1095-C to the individuals.
Marketplace Reporting: Under Section 36B, government exchanges will file 1094-A to the IRS
and 1095-A to the individuals.
Under Section 4980H, penalties are assessed by the IRS to employers if requirements are not met and
one or more employees claim the premium tax credit (effective 1/1/15). The amount is $3,000 per
employee annually or $250 per employee per month that minimum coverage was not provided.
Planning Timelines for ACA Compliance
2014 will be a “Beta” trial. Employers will not be required to report but individuals will still be required
to carry coverage and report it on their year-end tax filing.
In 2015, those who perform a “good faith” effort will not be penalized.
By tax year 2016, full reporting must be implemented and penalties will be imposed.
Questions and Discussions
Riley and Mike discussed some of the services that Convey provides, including W9 solicitation and TIN
Matching services. They provide free educational webinars to the public, live as well as recorded.
Users of Convey report excellent customer service from the company.
An attendee asked the group if their companies report all payments to recipients when they include
travel expenses as well as labor, or do they report only the labor? Most companies report all payments
made to 1099 recipients and do not remove the reimbursements. Today’s systems usually have no
process for doing this and staffs do not have the resources to handle it manually. The general consensus
is that it is up to the payees to keep track of their own business expenses. Most of them have other
business expenses, anyway, and it is to their benefit to write them off on their tax returns.
Our presenters took questions from the group and took some questions away. These topics are
confusing! Convey has information on social media and the web to help us stay up to date!
Blog: 1099news.com
Twitter: @Convey1099
LinkedIn: search for “Convey Compliance”
www.convey.com
Chapter Business
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Membership Update – Anita Poynor
As of November 8th we have 180 members and 64 member companies. We grew 24 new members in
2014. We are up to $945 in our chapter bank account. The fact that we even have a bank account is
new this year! Anita thanked Ken and the IFO for recognizing the chapters’ efforts to grow the
membership. National is generously rewarding our efforts by sending money back to the chapters. The
rebates from Refer-a-Friend, new Forum attendees, and donated book sales allow the chapter to
purchase gift cards for door prizes. It also enables us to have the funds for paid speakers such as the
one we will hear in May. The funding we get from the IFO helps us provide better overall quality for our
meetings. Thank you to all of the individual members and to your companies for your continued
support to the IFO!
Website/Email update – Joanna Wilson
The IFO sent out an interesting email recently stating that people who read business books make more
money! IFO has online articles for members and we have business books (donated by National) for sale
for only $5 each!
If you are a member and are not receiving emails from the IFO, let Joanna know and she will make sure
that national has your correct email address. You can also log in to the IFO website and check your
profile to make sure that it is correct.
Officer Election Results – Tonya Fyke
All incumbents were re-elected! Thank you!
President: Sandy Champion
Vice-President: Tom Lyman
Secretary: Tonya Fyke
Membership: Anita Poyner
Webmaster: Joanna Wilson
Historian: Jan Wallace
Chapter Advisory Committee and other news– Sandy Champion
Tom serves on the Chapter Advisory Committee, which Sandy also served on until she recently retired
from it. The committee is focusing on providing more benefits to chapters and members. This
collaboration contributes to the success of the organization as a whole.
Sandy announced a call for workshop presenters at Fusion in May. The deadline has passed but the IFO
may make exceptions. Contact them as soon as possible if you are interested. Presenters get free
registration!
AP and AR Week Celebrations featuring Southwest Airlines!
AP week was October 10-13 through 10-17. AR was the following week, 20-24. Quite a few attendees
celebrated with their departments. Southwest Airlines was voted “Most Creative Celebration” by the
IFO! They work very hard at having fun over at Southwest. They begin planning a year in advance,
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making sure that it gets in the budget. When the staff arrives at work on Monday of AP week,
decorations are already in place and leadership is serving them breakfast! The party continues each day
of AP week. They even go to the State Fair of Texas. Michelle from SWA showed clips of their festivities
and it blew us away!
Tax News for Individuals -Tonya Fyke
Starting January 1, 2015, you will only be allowed one indirect IRA rollover per year, per person or per
couple. An indirect rollover is where you cash out your fund and reinvest it within 60 days. The new
rule interpretation is the result of a court case, Bobrow vs. Commissioners. The couple started abusing
the rules in 2008 by chaining together multiple IRA withdrawals. They would withdraw from one IRA
and deposit to another, thereby giving themselves access to the funds much longer than the allowed 60
days. They were caught when they miss-calculated the time limit and made a deposit on the 61st day.
They had to pay the tax plus 10% penalties for the early withdrawals as well as ten years of penalties
and interest on unreported income.
If you are doing a “custodian to custodian” rollover, the new rule does not apply and you are allowed
multiple rollovers.
Tonya also announced that the 401K contribution limit is up to $18,000 in 2015. The
IRA contribution limit is unchanged at $5,500 unless you are over 50 and then you can contribute
$6,500.
MyRA is brand new way for you to manage your own retirement account through the government. It is
portable and you can open it with only $25. You can make as little as $2 per payday contributions. It is
available to people making less than $129,000 ($191,000 jointly) per year. Go to myra.treasury.org for
more rules and information.
Travel Websites – Darlene Belisle and Sandy Champion
Darlene discussed a handout that was given to attendees listing helpful travel-related websites. A lot of
discounts are available at these websites. Sandy discussed Uber, the app that connects you to a driver.
People who have used it have found that it is quick, reliable, and safe. The cars and the drivers are
much nicer than a conventional taxi. You pay online so you do not need cash, and there is no tipping.
Be sure to use their coupon when you first sign up to get free rides.
Upcoming event:
2015 IFO Forum “25th Anniversary” – May 11th through 14th, 2005 – Gaylord Palms in Orlando – Frank
Abagnale will speak and Sandy Champion will be recognized! Sign up early for a discount!
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Upcoming 2015 chapter meetings:
Wednesday, February 18, 2015
Topic: TBA-We had a late cancellation and will advise the topic when the invitations go out.
Speaker: TBA
Facility: KPMG – Denise Stackhouse
Food: Freeman – Jan Wallace
Contact: Denise Stackhouse/Jan Wallace
Wednesday, May 20, 2015
Topic: Messy Desk, Missing Papers, and Totally Too Many Piles
Speaker: Lorraine Brock – Get Organized
Facility: City of Richardson Civic Center – Sandra Gennaro
Food: TBD
Contact: Sandy Champion/Lorraine Brock
Wednesday, August 19, 2015
Topic: Vendor Calling – Where is my payment?
Speaker: Phil Binkow – Invoice Info
Facility: TBD
Food: Invoice Info – Phil Binkow
Contact: Phil Binkow – Invoice Info
Wednesday, November 18, 2015
Topic: Tax Update?
Speaker: TBD
Facility: TBD
Food: TBD
Contact: TBD
Door prize winners were:
Denise with KPMG won a free registration for the 2015 Fusion Conference from the IFO!
Tonya with Sensible Cents won a $50 Visa Gift Card from the NTIFO Chapter.
Michelle with Southwest Airlines won a $25 Visa Gift Card from the NTIFO Chapter.
Valerie with Federal Reserve Bank won a $25 Visa Gift Card from the NTIFO Chapter.
Verdell with TI won a Connolly/IAPP bag with a Bantec t-shirt, drinking glass from Ipayables, green bag
from Lamont, Hanley & Associates, lighted ball and whoopee cushion from CPRS, yellow man squeezie
from Invoice Info, pen, notepad, and screen cleaner from Commerce Bank, Frisbee from Infor, and
“Tears of Rage” book by John Walsh.
Janet with Southwest Airlines won a Connolly/IAPP bag with a Bantec t-shirt, drinking glass from
Ipayables, green bag from Lamont, Hanley & Associates, lighted ball and whoopee cushion from CPRS,
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yellow man squeezie from Invoice Info, pen, notepad, and screen cleaner from Commerce Bank, Frisbee
from Infor, and “Tears of Rage” book by John Walsh.
Louise from Concentra won a Connolly/IAPP bag with a Bantec t-shirt, green bag from Lamont, Hanley &
Associates, lighted ball and whoopee cushion from CPRS, yellow man squeezie from Invoice Info, water
bottle from TradeShift, pen, notepad, and screen cleaner from Commerce Bank, Frisbee from Infor, and
“Somewhere Inside” book by Laura and Lisa Ling.
Sandra with the City of Richardson won a Connolly/IAPP bag with a Corcentric t-shirt, green bag from
Lamont, Hanley & Associates, lighted ball and whoopee cushion from CPRS, yellow man squeezie from
Invoice Info, water bottle from CDS Global, pen, notepad, and screen cleaner from Commerce Bank,
Frisbee from Infor, and “Somewhere Inside” book by Laura and Lisa Ling.
Regina with Oxy won a Connolly/IAPP bag with a Corcentric t-shirt, green bag from Lamont, Hanley &
Associates, lighted ball and whoopee cushion from CPRS, yellow man squeezie from Invoice Info, water
bottle from PayStream Advisors, pen, notepad, and screen cleaner from Commerce Bank, Frisbee from
Infor, and “Somewhere Inside” book by Laura and Lisa Ling.
Ronda with KPMG won a City of Richardson gift bag with a jar opener, notepad, sticky notes, staple
remover, bottle opener, screen cloth, tire gauge, two pens, two glasses, doggy doo bags from the City of
Richardson, green bag from Lamont, Hanley & Associates, whoopee cushion from CPRS, yellow man
squeezie from Invoice Info, Frisbee from Infor, and “Tears of Rage” book by John Walsh.
Patricia with Pegasus Solutions won a Connolly/IAPP bag with a Banktec t-shirt, covered glass from
Ipayables, flashing glasses from Eskers, pill squeezie from BerkOne, stuffed bear from Broniec
Associates, memo binder with calculator from IBM, lighted ball and whoopee cushion from CPRS, cell
phone stand and pen from Commerce Bank, and two coozies from Digital Designs.
Louise with Concentra won a JPD Financial Bag with a t-Shirt from Apex Analytics, travel mug from IBM,
basketball and net from BBVA Compass, cell phone stand with post-it note pad and pen from Commerce
Bank, cell phone speaker from Readsoft, coozie from Taulia, and a lighted ball and whoopee cushion
from CPRS.
Carol with American Heart Association won a Connolly/IAPP bag with a t-shirt from Apex Analytics,
basketball and net from BBVA Compass, lighted ball and whoopee cushion from CPRS, covered glass
from Ipayables, clock and picture holder from Sabre, sumo squeezie from MTS, cell phone speaker from
Readsoft, post-it note pad and pen from Commerce Bank, and a bag of shredded money from Federal
Reserve Financial Services.
Ronda with KPMG won a PRG bag with a t-shirt from Corcentric, small car, note pad with pen, compass,
and pen from PRG, lighted ball and whoopee cushion from CPRS, IAPP Man squeezie from the IFO,
luggage tag from Concur, yoyo from Sabre, hand sanitizer from Avid Xchange, two coasters from CTI
Compliance, and two coozies from Taulia.
Melanie with City of Denton won a JPD Financial bag with a t-shirt from Banctec, a travel mug from IBM,
basketball and net from BBVA Compass, Frisbee from IBML, lighted ball and whoopee cushion from
CPRS, calculator from PNC, post-it note pad, stylus, cell phone stand, and pen from Commerce Bank,
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coffee bean squeezie from Apptricity, car phone charger plug from US Bank, and a cell phone speaker
from Readsoft.
All attendees received bags from the IOFM as well as Jelly Bellys from Bank of American and Merrill
Lynch. Other freebies offered included IFO standards, calendars, and squeezies.
The meeting adjourned at 1:00.
Jan Wallace
Historian
Books for Sale may not reflect current availability. They are only $5 each so if you are interested, please
purchase soon!
Title
Author
#
Available
Detecting and Preventing Fraud in Accounts Payable
Peter Goldman
9
Detecting and Preventing Fraud in Accounts Receivable
Peter Goldman
20
Extraordinary Circumstances
Cynthia Cooper
3
How to Hire a Champion
David Snyder
6
Idealized Design
Russell L Ackoff, Jason Magidson, Herbert J Addison
5
Implementing a Control Self-Assessment Program in Your AP
Department
Chris Doxey
1
Inside AP
Diane Sears
10
Million Dollar Rainmaker
Ed Robinson
9
On-Demand Supply Management
Douglas A Smock, Robert A Rudzki, Stephen C Rogers
4
Rethinking Retention in Good Times & Bad Times
Richard P Finnegan
10
Sex on the Moon
Ben Mezrich
4
Somewhere Inside
Laura Ling & Lisa Ling
5
Straight to the Bottom Line
Robert A Rudzki, Douglas A Smock, Michael Katzorke,
Shelley Stewart Jr
5
Success by Default
Michael Solomon
5
Tears of Rage
John Walsh
6
The 8 Pitfalls of Accounts Payable Automation
Christopher Elmore
5
Unclaimed Property
Tracey L Reid
1
Total
108
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