Far Northern California
Chapter of Enrolled Agents
July 2014
PRESIDENT’S MESSAGE:
NEWSLETTER
It's hard to believe that the year is already half over! I hope everyone had a
wonderful 4th of July Holiday weekend.
Congratulations to Allan Fulton, E.A. and Rose Hablitzel, E.A. on their wedding!! I saw
pictures on Facebook and it looked like a lovely country western celebration. I wish you
many happy years together.
Just a reminder that the minimum wage increased to $9.00 per hour as of July 1.Some of
you may have clients that will be impacted by this. CSEA dues also increased $15 on
July 1st and all of us will be impacted by this.
I am happy to report that the FNCC online virtual SEE is up and running!! At last report
the class was running smoothly. According to Rose and Jenny they have students in the
classroom as well as online. Anyone interested in joining the class for part 2 please go to
our website for more information.
Respectfully Submitted
Michele Williams, E.A. President
Board Meetings and Roundtable Schedules
Aug 06, 2014 - Board Meeting - 9:30am Holiday Inn Express 2810 Main St, Red Bluff
Redding Roundtable: 12:00p.m. Lulu’s Restaurant 2230 Pine St, Rdg
Subject: To Be Announced
Aug 07, 2014 - Chico Roundtable: 8:00a.m. Cozy Diner 1695 Mangrove Ave., Chico
Subject: Health Insurance Premium tax Credit - Anita Towslee
Sept 03, 2014 - Board Meeting - 9:30am via conference call
Redding Roundtable: 12:00p.m. Lulu’s Restaurant 2230 Pine St, Rdg
Subject: Affordable Health Care Act - Deb Black
Sept 04, 2014 - Chico Roundtable: 8:00a.m. Cozy Diner 1695 Mangrove Ave., Chico
Subject: To Be Announced
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Upcoming CONTINUING
EDUCATION SCHEDULE
****Note: You MUST give your PTIN number when registering
or you will NOT receive your CE Certificate.
YOUR OPINION COUNTS!!!
TELL US WHAT YOU THINK ABOUT FNCC’S
SEMINARS.
1) Do you think they should be held elsewhere?
2) Do you think we should use different
speakers?
3) Should we split the two day into one day each
in order to accommodate those only wanting
one day?
4) How’s the menu? Should we have more
variety on the menu?
ETHICS SEMINAR to be announced……
NEW!
NATP Two Day Seminar
1040 Update & S Corporations
October 30th and October 31st
Earn 16 hours of CPE in Two Days
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2014 The Essential 1040 Day One:
For 29 years NATP has been providing the best tax update in the country to prepare professionals
for the coming tax season. This tradition of excellence will continue in 2014. This course covers
the standard features of the inflation-indexed updates for preparing individuals’ 2014 tax returns,
new tax laws applicable to 2014 and recent developments. This course satisfies 8 hours of CPE
including 3 hours of tax updates.
Objectives include:
 Apply inflation-adjusted amounts to 2014 individual tax returns
 Identify expired tax provisions
 Summarize new federal tax laws that have passed since 2013
 Identify federal tax provisions first taking effect in 2014
 Apple the latest court and IRS rulings to taxpayers’ current situations
 Provide tax advice for clients in light of new developments
 Describe the current IRS hands-on initiative to improve the accuracy and quality of filed tax
returns and to heighten awareness of preparer responsibilities
 Explain the Circular 230 rules governing individuals eligible to represent taxpayers before
the Internal Revenue Service (IRS)
 Identify the various penalties that can be assessed on a tax return preparer and how to
avoid them
 Explain due diligence requirements for earned income tax credit (EIC)
2014 Intermediate S Corporations Day Two:
This hands-on course is ideal for tax professionals who have prepared S corporation returns and
are looking to improve their skills to assist clients with their continuing needs. Topics covered
include reasonable compensation, book to taxable income reconciliation, distributions and
shareholder basis, shareholder loss limitations, and ownership changes.
Objectives include:
 Compute the shareholder’s stock and debt basis in the S corporation
 Determine the timing and ordering rules for basis adjustments
 Explain how distributions from an S corporation are taxed
 Report the repayment of reduced-basis debt
 Distinguish between basis for regular tax and AMT purposes
 Calculate a shareholder’s at-risk basis
 Explain the passive loss limitations that apply to S corporation shareholders
 Identify when Schedule M-3 (Form 1120S)
 Complete Form 8916-A, Supplemental Attachment to Schedule M-3
 Explain the taxation of an S corporation stock sale
 Explain how income and losses are allocated when there is an ownership change
 Identify an inadvertent termination of the S election and explain how to fix it
 Explain how to report a property foreclosure and summarize the tax consequences
 Determine if an S corporation has cancellation of debt income
 List several ways an S corporation can exclude canceled debt from gross income
 Determine if an S corporation is bankrupt or insolvent
 Explain the taxation of an S corporation stock sale
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Explain the tax consequences and reporting requirements for stock redemption
Allocate shareholders’ income and losses when there is an ownership change
Explain how to fix an inadvertent termination of S election
Determine if an S corporation is paying a reasonable salary to its shareholder-employees
Identify an S corporation’s course of action when the S corporation does not have available
funds to pay its shareholder-employees
Report the compensation of shareholder-employees, including certain fringe benefits, on
Forms 1120S and W-2
The Seminar will be at the Holiday Inn, 1900 Hilltop Dr., Redding. Lunch is included with
registration. Seminar hours 8am to 5pm, Early Bird registration and fees to be announced.
Cal Fed Last Chance Update »
January 08, 2015
Back by popular demand....This is your last chance! Important planning for 2014!
NATP speaker(s) present this course for the busy tax professional that needs to know the
essentials of important changes from the previous year, including recent tax law changes, court
cases and IRS rulings. The federal government continues to be very active with regard to
changes in the tax law and this has a major impact on preparing California tax returns. In
addition, California will have several of its own.
Total CPE hours include 4 hours Federal Tax Update and 5 hours California Tax Update.
The Seminar will be held at the Holiday Inn, 1900 Hilltop Dr., Redding, Lunch is included.
Registration and fees to be announced.
SEE CLASSES GOING ON NOW!
STUDENTS WANTED
Gleim and the Far Northern Chapter of the California
Society of Enrolled
Agents (CSEA) have partnered to offer a live Enrolled
Agent (EA) review course in northern California beginning June 3, 2014. This
comprehensive EA exam preparation review course provides live, weekly
sessions designed to help you pass each part of the EA exam quickly and
efficiently.
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This offering is unique in terms of its affordability and the one-on-one
attention you will receive. Candidates can engage in live classroom
discussions with classmates and the instructor while also taking advantage
of the online components from the comfort of their own home.
If you are a candidate who wants to pass the EA exam this year and
appreciates the added value of a live instructor, contact Rose Hablitzel at
530.527.8225 or roseea@lassentax.com for more information and to register.
You can also visit fncc.org.
Class size is limited! Register NOW to reserve your seat.
Already an Enrolled Agent? Please forward this opportunity to other tax
preparers, as we want to help them excel as Enrolled Agents in 2014 as
well.
Thanks, and have a great day! Courtney Craft Professor Relations Coordinator
Courtney.Craft@gleim.com
Gleim Publications, Inc. 4201 NW 95th Blvd
800.874.5346
Ext.421 FAX 352.375.6940
Gainesville,
FL
32606
Students can also sign up for online courses at NAEA’s website. Class details
contact Rose Hablitzel @ 530-527-8225 or email rose.hablitzel@gmail.com.
SCHOLARSHIPS AVAILABLE
NAEA, CSEA and FNCC all have Scholarship funds set aside to financially help
cover a portion of the education costs for those wishing to become an Enrolled
Agent. Check out the following websites and telephone numbers for more
information or copy the following links to access Scholarship applications: FNCC:
530-547-4474 Contact William Reilly, EA OR Jenny Wettemann, EA 530-347-3395
NAEA.Org: 202-822-6232
http://www.naea.org/NR/rdonlyres/800C71BF-8AD5-4858-B508C89C508CD5D9/0/2008_SEE_Scholarship_Application.doc
CSEA.Org: 800-777-2732
http://www.csea.org/Portals/0/S-1%20Final%20non-EAs..pdf
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CSEA Education Foundation
The primary purpose of the Foundation is to foster, improve and provide access to tax related
information and services available to the general public through education programs and
scholarships aimed at increasing the knowledge of current Enrolled Agents and potential EA
candidates. There are two types of scholarships available. 1) California residents not currently or
previously licensed as EAs are eligible to apply for a scholarship for tuition, including registration
fees and books, for courses in the field of taxation, finance, or accounting, particularly courses
specifically designed for Special Enrollment Examination (SEE) preparation. 2) Current
California EAs who wish to broaden their knowledge in the field of taxation are eligible to apply
for a scholarship for appropriate courses. Scholarships are NOT awarded for courses necessary
to maintain Continuing Professional Education hour requirements, but are specifically intended
for courses that expand the field of knowledge and expertise. Examples of appropriate courses
include Tax Court, NTPI, C Star, etc. More information and Scholarship applications can be
found at www.cseaeducationfoundation.org. Scholarship Awards and Foundation operating
expenses are funded through the generosity of the Members of the California Society of Enrolled
Agents and by sponsors, donors, and bidders of the Foundation’s annual Auction. Contributions
to the CSEA Education Foundation are deductible for tax purposes. Donations of cash and
merchandise can be made year round. For more information contact CSEA at 800-777-2732 or
916-366-6646.
CSEA/NAEA POLITICAL ACTION COMMTTEE:
(pictured right, Senator Ted Gaines, Rose Hablitzel, EA, center and William Reilly, EA, left)
The PAC has contributed too many legislators such as Senator Ted Gaines, (Redding Area), who
are either on tax or budget committees. These legislators know what Enrolled Agents do and are
interested in working with us. We are spending our budgeted amount and are in need to generate
more funds to keep this action going. We are developing great relationships with these legislators
that are in turn working with us on relevant and significant concerns of Enrolled Agents. Please
donate and give generously to the NAEA PAC. Your dollars are working for you! Any contributions
over $50 will receive a lapel pin from the NAEA PAC. Please make your contributions out to
"NAEA PAC". Or, you may contribute to CSEA’s PAC for any amount and receive a CSEA pin. All
members are encouraged to contribute since the PAC works for all Enrolled Agents and their
Affiliates! Contact Rose Hablitzel, EA for further questions: 530-527-8225.
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REVISED CIRCULAR 230
by Robert Seymour, EA
When Karen Hawkins, Dir., OPR, spoke at the recent Super
Seminar, she provided an update on their disciplinary action
and success at enforcement of Circular 230 rules, and noted
that EAs are too often for their expertise and professional
standards – subject to disciplinary action. She also stated
that an updated Circular 230 was still pending and almost
ready to publish someday soon.
Pictured center, Karen Hawkins, OPR, left, Jenny
Wettemann, EA and right, Rose Hablitzel, EA
The Finals Regs revising Circular 230 became effective on June 12. One of the major areas of change
is elimination of the former Section 10.35 on covered opinions, and clarification of rules on written
advice in Section 10.37. The background information provided by the Treasury Department devotes 15
pages on the subject. Until recently, the old rules led to use of broad disclaimers in any written
communication, which did not please the Treasury Department. In recent speeches, Karen Hawkins
was quoted by BNA as saying, “I’m here to tell you to get that jurat, that disclaimer, off your e-mails. It’s
no longer necessary.” William J. Wilkins, IRS Chief Counsel, stated strongly that the “Circular 230
legend is not merely dead, it’s really most sincerely dead. So please omit.” However, the background
info with release of the new Regs notes, “The rules do not, however, prohibit the use of an appropriate
statement describing any reasonable and accurate limitations of the advice rendered to the client.” This
is an area we will hear more about, but caution is urged in using disclaimers.
Resources:
IRS materials – search for Revenue Procedures
http://www.legalbitstream.com/irs_materials.asp?p1=i3
Law Research Internet Law – Library – Payroll Tax Rules by State and Department
http://www.lawresearchservices.com/firms/practice/ct-tax-state-department.htm
ADVERTISE YOUR NAME FOR FREE:
Would you like your name advertised as an Enrolled Agent in your area? Let us know and we will
list your name, address, phone number and specialty on your chapter’s website. Contact Karol
Read, CRTP at karol@chicotaxpro.com.
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M
EMBERSHIP Benefits
NAEA and CSEA are YOUR advocates in Congress and your personal representative in all facets of
your profession! Below are some of the numerous benefits that NAEA/CSEA and your local chapter
offer our members.
►discounts on tax/education materials
►discounted Quickfinder or Tax Book(s)
►member to member mentoring & networking
►redesigned website with the
latest E Tools on CSEA’s website
►FREE CE at monthly roundtables
►NAEA $65 membership discount for a
►discounted seminar fees (savings up to $75)
►discounted 2 hours of Ethics including lunch
►CSEA magazine / EA Journal
►safe harbor disclosures/disclaimer sample
letters & much more on the website
►extensive representation/liaison federal & State
►reduced annual member dinner
Our Organization:
Michele Williams, EA President
Rex Cerro, Vice President
Sandra Lamberson, EA Secretary and Newsletter
Mary Ann Beguin, EA Treasurer
William Reilly, EA Director, Redding Area
Tracie Hannick, EA Director, Chico Area
Ardis Smith, EA State Director
Rose Hablitzel, EA Immediate Past President
Karol Read PIA Redding/Chico & Website
221-7960
527-8225
547-4474
242-6278
547-4474
893-0859
824-1040
527-8225
894-4041
Fax 221-5736
Fax 527-1006
Fax 547-3004
Fax 242-6935
Fax 547-3004
Fax 893-2643
Fax 824-0594
Fax 527-1006
Fax 894-5622
Editor: Sandra Lamberson, EA P.O. Box 1040 Palo Cedro, CA 96073 Office: 530-547-4474 Fax: 530-547-3004
Email: SLamberson@citlink.net
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