CHARLES L. WEBB, BGS CHAPTER HONOREE, APRIL 15, 2013
Good afternoon my fellow Spartans and members of Beta Gamma Sigma.
your induction and membership in this great organization
Congratulations again on
How appropriate for it to be April 15, and
you have invited a tax accountant for today’s events. I hope you have already filed your tax return but if
not, see me afterwards and we’ll work on an extension.
Congratulations as well to the UNC-G chapter for its 30th anniversary. Thirty years, wow…it is so amazing
to think back to that time and what has happened over the years…it is mind boggling for me. In 1983,
Ronald Reagan was President, Michael Jackson’s Thriller was the number one album, the average family
income was $21,000, and Lotus 123 and Word software were first released to the market. If you’re not
familiar with Lotus 123...it was one of the first software programs that could create a spreadsheet. The
fear of nuclear war was constant. In 1983, the movie “The Day After” was aired on ABC which portrayed
a fictional war between the US and the Soviet Union which ultimately escalates into a full scale nuclear
exchange. Hundreds of us gathered right here in Elliott Center to watch the movie that night… it had a
huge impact on many of us in the room that night. It was a very scary time.
It was also a time of great economic turmoil and change. Between the years of 1981 and 1982, the US
was experiencing a severe recession with unemployment reaching a peak in 1982 that was the highest
since the Great Depression. There was a major collapse of the Savings and Loans industry, plants sat
idle, and the national debt tripled. I tell you this to say that similar to your time at UNC-G over the past
few years, my years at UNC-G in the early 80s experienced the doom and gloom of the economy, and a
very unknown future. However, by early 1984 and the year I graduated, the economy began to rebound
and the United States entered one of the longest periods of sustained economic growth since World
War II. While I cannot predict the future for you, I truly believe that you are graduating at a wonderful
time and you too will experience a robust new environment over the next few years. On the flight this
weekend, this weeks’ Time Magazine had an article on the return of manufacturing to the US. The CEO
of GE said that the US is the most competitive we’ve been in 30 years. This is due to our great flexible
workforce, our technology advantage, and our low energy costs.
So in 1983 and as the economy began to grow and jobs were hot, I pushed to graduate in three years. At
UNC-G, I loved my tax accounting class and my professor for tax, and I decided to pursue a focus in tax
accounting. Tax accounting was a combination of good accounting skills with a flair for the law. Since
there were few graduate programs in taxation, the IRS had the best training available and I joined the
IRS as a Revenue Agent after college. Of course, it killed my social life as no one wanted to be around a
Revenue Agent. Even my uncle disinvited me from my cousin’s wedding as I later found out that he was
trying to write off the wedding as a tax deduction.
By 1984 and 1985, accountants, lawyers, economists and most any business-savvy person were either
promoting tax shelters or investing in them personally. Huge fees were paid to create tax deductions.
The tax shelter business had become so prevalent and abusive in American society that it was
impossible for the IRS or the government to rein it in. Thus, in 1986 Congress (with direction from the
Reagan Administration) passed the most comprehensive tax code legislation in history, and the Tax Code
was subsequently renamed to the Tax Code of 1986. We are still under the Tax Code of 1986 to this day.
With a sledge hammer, Congress closed the tax shelter industry in one fell swoop. The years of training
and research by the business professionals in the industry were useless and the careers of many
accountants, lawyers, and business professionals came to a crashing halt. But remember it was the 80s
and these individuals soon recovered. Luckily, I was still at the IRS and had not been caught up in the
excitement (at least this time).
After leaving the IRS, I then went the more “corporate” route. I worked at KPMG, a regional accounting
firm, and started my own CPA firm at 29. I grew from zero clients to over 400 accounts in five years. It
was a great time. I ultimately returned to KPMG. It was the late 90s and a new era for the tax
accounting professional had begun.
Until that time and after the tax shelter days, the typical tax
accountant waited by the phone for the client to call. We did our research, maybe write a memo, we’d
give our clients an answer, and we billed them for our hourly time and expense. A few in the industry
began to say…” hey…why shouldn’t we get a cut for the tax savings our clients get if we give them an
idea or strategy”. The lawyers were doing it, why shouldn’t we? To our corporate clients we said, “we
saved you a million in taxes—I want a cut.” And thus began the frenzy.
For once, the accountant was
not a cost center but a profit center for corporate America. We split, cut, dissected, and bifurcated ever
piece of tax legislation possible. The “tax loophole” adjective was reinvented.
At first, the strategies and ideas were well thought-out and brilliant. After a while, however, a few
professionals in our industry desperately searched for any idea or strategy that would give them “a cut”
of the savings. Soon, even our brethren in the audit world thought they too could bifurcate the
accounting and SEC rules and regulations. Our profession had always been known for its conservative
and sensible approach to business matters. In the end, some parts of our profession lost our way. The
accounting profession that was always been known for its trusted reputation… had lost its way. While
the individuals involved in these situations were few in the scheme of things, the profession was
effected as whole. In 2002, the largest accounting firm in the US collapsed…and so did the positions of
thousands of professionals.
I was once told the story of Alexander the Great, and his advice of “Marching Off the Map”. In the day,
Alexander and his armies conquered nation after nation, village after village, and tribe after tribe. They
conquered based upon the lessons from the past, their knowledge gained from their experience, and
their “Map”. They passed Asia Minor, Persia and ultimately entered the mountainous region that is now
Afghanistan. The area was not mapped and they had no history of the region. The generals came to
Alexander and said we can’t move on—there is no map, …it is uncharted,… we don’t know what to
do…we would be “Marching Off the Map”. And in Alexander’s “Greatness” he said—any great army or
nation will always be “Marching Off the Map”. You will always encounter an unmapped or uncharted
world in order to move forward.
In this day and age of MapQuest and Navigation systems, we love the idea of someone or “something”
telling us how to get there and where to go. My Smartphone Navigation is phenomenal. I get road
hazards, alternative routes, eating establishments, and my estimated time of arrival. Life could not be
better!!
Unfortunately, my friends, there is no MapQuest for your life or your career.
Sure, there are a few
“How To” books on marketing…how to deal with difficult clients or peers. However, you will be always
be Marching Off The Map.
Yes, I love my Navigation system, but at times I may listen to its
recommendations, but I find myself saying—that’s not the right route..I know better…I’ve experienced
that road at 5:00 and I shouldn’t go there…..and with Atlanta’s traffic, believe you me — this happens
a lot!!! Such is life, you will use the Map as a tool, but you always rely on your instinct.
My hat is off to you all. Congratulations again. You have started the process of building your base and
your knowledge to March Off The Map. You’ve already done that…you experienced your first days in
high school…you’ve attended UNC-G…you’ve maybe had your first job… or you’ve decided to go back
for an additional degree. But there are more items to come. Which job offer do I take? Do I relocate?
Am I too specialized too early? Have I stagnated? When do I start a family?
And one that has
impacted a great deal of my friends over the past 10 years….my spouse’s career is further than mine and
it makes sense for me to temporarily put my career on hold to stay home.
My advice is to stay a
generalist as long as you can. You always want a strong base to fall back on no matter what happens in
life.
My hat is also off to you for the day and age that you are starting your career. Thirty years ago, there
was little, if any, competition as a college graduate. Of course there was competition in the North
Carolina area and the US… but not the world. As you sit here today and we recognize your caliber and
grades as an accountant, there is just as smart an individual in Bulgaria as you. And just as smart as an
economist as you, there is an equally as smart an individual in Colombia, SA. And just as smart as a
business major as you are here, there is an equally as smart an individual in Malaysia. The difference is
that you have the integrity and knowledge that the United State’s education and business environment
gives you. Our system of checks and balances in business and government reminds us of the decisions
we make each day and will ultimately affect us in the future. Just as the GE CEO stated, the United
States is the most competitive we’ve been in 30 years.
Yes, my profession at times has gone down a path that needed rebalancing. We have recovered and
have returned to the trusted business advisors that we once were. If you pursue sales, marketing,
insurance, accounting, economics or any profession in the business world, you will always encounter a
rebalancing throughout life. You will always be Marching Off The Map. But, …you will always have your
foundation… you will always have a knowledge gained from UNC-G, …and you always will have the
drive and direction that will help you to succeed and guide you in whatever path your life takes pursuit.
Please don’t let me mislead, I will always be an advocate for my client and will always pursue the most
advantageous tax position available. You will do the same. However, you must always remember the
principles of Beta Gamma Sigma:

Honor and integrity

Pursuit of Wisdom

Earnestness
Be flexible, adaptable, and willing to change. Never be complacent no matter how comfortable you get
or how much money you are making at the time. Always continue to grow, always continue to learn,
and always maintain your drive.
Thank you again, and congratulations to you all. I wish you the very best. As a side note, I did a little
research on Alexander the Great, and found out he never conquered the Spartans!!!