Latest Newsletter
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VOLUME 72, NO. 1
JANUARY – JUNE 2019
JANUARY – JUNE 2019
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Another tax season has come and gone. It is time, yet again, for the annual MAPA/TAA convention. The convention is always an enjoyable time and provides us with something to look forward to, as it is sure to display the camaraderie and friendships that have been forged over time. The annual convention also allows us accountants to network and bounce ideas off each other. For me personally, it is interesting to hear how other accounting firms operate and how they conduct business. I find this information very useful and many times I am able to go back and try to apply the things I learned to my own practice. This year is sure to be a fun time as the convention will be located in Biloxi, MS. Biloxi and the surrounding areas are filled with many entertainment options. There are many shops, restaurants, kid friendly entertainment and casinos. Biloxi is also home to the Biloxi Shuckers, which is a minor league baseball team that adds some excitement and is within walking distance of the convention. The Hard Rock casino is the host site again for the convention and they do an excellent job supporting us. Come join us for fun, fellowship, and for those that need it, CPE. CPE will be provided by Norman McLeod, who is a very knowledgeable and experienced speaker. Norman is a former Deputy State Auditor with the State of Mississippi. Norman does an excellent job teaching by using his vast knowledge and experience in state and governmental auditing.
Please make plans to come join us at the 2019 Annual MAPA/TAA convention June 19-21 at the Hard Rock Casino in Biloxi, MS!!
Josh Windham, MAPA President
Please make plans to come join us at the 2019 Annual MAPA/TAA convention June 19-21 at the Hard Rock Casino in Biloxi, MS!!
Josh Windham, MAPA President
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Hello MAPA and Central Chapter members. As Vice President of MAPA and Central Chapter I would like to encourage you to tell your fellow CPAs, accountants and their employees about the benefits of being a member of both organizations.
As a MAPA member you receive discounts on CPE when attending our Gear-Up seminars and you also have great networking opportunities. Sanford Warren and Pam Stamps offer the May Forum for those needing hours in Audit and Accounting. With each membership you are allowed to submit two tax questions via our website. Sometimes it just helps to get someone else’s opinion. Our annual convention, which is held in conjunction with Tennessee Association of Public Accountants, is not only fun but also offers CPE.
You must be a member of MAPA to be eligible to be a member of Central Chapter. We meet monthly on the fourth Tuesday at Berry’s Fish and Seafood Restaurant in Florence, MS (Highway 49 South). These meetings not only offer networking opportunities with your peers but also CPE at some meetings. We do our best to have speakers from various State and Federal Agencies such as; Mississippi Department of Revenue, Mississippi Department of Employment of Security, U. S. Department of Wage and Hour Division and Kathy Herrington, Taxpayer Advocate, from Internal Revenue. Not only do these meetings provide CPE but you get contact information that is really helpful. When you have a problem it’s nice to have a contact name and number. Some meetings are just roundtable discussions offering each one an opportunity to bring their questions (and answers) to be discussed. It’s always such a blessing to have Mr. Sanford Warren to answer our questions.
Again, I say to each reader, you’re missing a great opportunity if you aren’t a member of these organizations.
Brenda Moore
V. President, MAPA
V. President, CMC
As a MAPA member you receive discounts on CPE when attending our Gear-Up seminars and you also have great networking opportunities. Sanford Warren and Pam Stamps offer the May Forum for those needing hours in Audit and Accounting. With each membership you are allowed to submit two tax questions via our website. Sometimes it just helps to get someone else’s opinion. Our annual convention, which is held in conjunction with Tennessee Association of Public Accountants, is not only fun but also offers CPE.
You must be a member of MAPA to be eligible to be a member of Central Chapter. We meet monthly on the fourth Tuesday at Berry’s Fish and Seafood Restaurant in Florence, MS (Highway 49 South). These meetings not only offer networking opportunities with your peers but also CPE at some meetings. We do our best to have speakers from various State and Federal Agencies such as; Mississippi Department of Revenue, Mississippi Department of Employment of Security, U. S. Department of Wage and Hour Division and Kathy Herrington, Taxpayer Advocate, from Internal Revenue. Not only do these meetings provide CPE but you get contact information that is really helpful. When you have a problem it’s nice to have a contact name and number. Some meetings are just roundtable discussions offering each one an opportunity to bring their questions (and answers) to be discussed. It’s always such a blessing to have Mr. Sanford Warren to answer our questions.
Again, I say to each reader, you’re missing a great opportunity if you aren’t a member of these organizations.
Brenda Moore
V. President, MAPA
V. President, CMC
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Just like all other organizations, NSA is taking on the task of trying to modify our organization to best fit the needs of all of our members.
I would encourage everyone to attend the Annual Meeting to be held in Charlotte NC this year. There will be 18 hours of CPE offered as well as networking opportunities with other professionals.
It will be held August 21-24 and registration is available on the website.
I am proud to have served as your state director for the past several years and ask for your support and vote in the upcoming election for the upcoming year.
Pam Stamps
I would encourage everyone to attend the Annual Meeting to be held in Charlotte NC this year. There will be 18 hours of CPE offered as well as networking opportunities with other professionals.
It will be held August 21-24 and registration is available on the website.
I am proud to have served as your state director for the past several years and ask for your support and vote in the upcoming election for the upcoming year.
Pam Stamps
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Taxes, Taxes, Taxes
Sanford Warren
The individual Audit rate for 2018 was 0.59% or one out of every 170 returns filed. Eighty one percent of these audits were correspondence audits done by mail. For some the audit rate was higher. IRS audited 1.4% of returns filed by taxpayers with incomes of $25,000 or less who claimed the Earned Income Credit. This continues to be the big cheat area on tax returns. Many of filers in this category are married but file head of household.
The low audit rate may not tell the full story. It does not count as audits computer generated CP2000 notices about mismatches between income and deductions reported on tax returns and data on third party information returns such as W-2s, 1099s and 1098s. Some of these require additional records to be sent in. They still do not count as audits.
Examinations of partnerships and S Corporations dropped also,. For partnership and S Corporation returns the rate was only 0.2%. The no change rate for these returns is surprising since 40% of partnership exams and 29 % of S Corporations and 32% of C Corp audits conducted by field agents resulted in no change. The no change rate on field exams of individuals was only 8%.
The 403(b) plans will become a major audit area starting in 2019. There are exceptions for workers who work less than 1,000 hours per year. However, most of these plans exclude janitors, cafeteria workers, substitute teachers, adjunct professors and the like from participating in the plans. Filers who faultily report advance premium payments are such to get audits. Such a case might be a lady who bought insurance through the market place opted to have the health premium credit lower her premiums. She then got married late in the year and her household income jumped. The couple’s joint modified adjusted gross income greater than the maximum to qualify for the credit. The IRS says the entire amount must be repaid.
Buyers of heavy SUVs used solely for business can write off the full cost. Such SUVs must have a weight rating over 6,000 pounds. Up to 100% of the cost of a pickup truck can be expensed. These business assets the amount expensed can’t exceed taxable income from the taxpayer’s business. Failing to substantiate a big property donation may be costly. Failing to fill in the cost of $3 million and then claiming a charitable deduction of $33 million was disallowed by IRS.
Sanford Warren
The individual Audit rate for 2018 was 0.59% or one out of every 170 returns filed. Eighty one percent of these audits were correspondence audits done by mail. For some the audit rate was higher. IRS audited 1.4% of returns filed by taxpayers with incomes of $25,000 or less who claimed the Earned Income Credit. This continues to be the big cheat area on tax returns. Many of filers in this category are married but file head of household.
The low audit rate may not tell the full story. It does not count as audits computer generated CP2000 notices about mismatches between income and deductions reported on tax returns and data on third party information returns such as W-2s, 1099s and 1098s. Some of these require additional records to be sent in. They still do not count as audits.
Examinations of partnerships and S Corporations dropped also,. For partnership and S Corporation returns the rate was only 0.2%. The no change rate for these returns is surprising since 40% of partnership exams and 29 % of S Corporations and 32% of C Corp audits conducted by field agents resulted in no change. The no change rate on field exams of individuals was only 8%.
The 403(b) plans will become a major audit area starting in 2019. There are exceptions for workers who work less than 1,000 hours per year. However, most of these plans exclude janitors, cafeteria workers, substitute teachers, adjunct professors and the like from participating in the plans. Filers who faultily report advance premium payments are such to get audits. Such a case might be a lady who bought insurance through the market place opted to have the health premium credit lower her premiums. She then got married late in the year and her household income jumped. The couple’s joint modified adjusted gross income greater than the maximum to qualify for the credit. The IRS says the entire amount must be repaid.
Buyers of heavy SUVs used solely for business can write off the full cost. Such SUVs must have a weight rating over 6,000 pounds. Up to 100% of the cost of a pickup truck can be expensed. These business assets the amount expensed can’t exceed taxable income from the taxpayer’s business. Failing to substantiate a big property donation may be costly. Failing to fill in the cost of $3 million and then claiming a charitable deduction of $33 million was disallowed by IRS.
CALL TO ANNUAL MEETING
In accordance with article IX, Section 3, By-Laws of the Mississippi Association of Public Accountants, you are hereby called to attend the 72st Annual Meeting of the association to be held on Thursday, June 20, 2019, at the Hard Rock Hotel and Casino, in Biloxi, Mississippi.
Each of you is urged to attend this important business meeting and actively participate in planning the future of MAPA.
Pamela Stamps
MAPA Executive Secretary
Each of you is urged to attend this important business meeting and actively participate in planning the future of MAPA.
Pamela Stamps
MAPA Executive Secretary
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We had an exciting and challenging year trying to provide the highest quality CPE in order to help our members tackle the Tax Cuts and Jobs Act modification to our already complex tax law.
We offered our standard Gear Up Seminars as well as two Tax Updates courses along with Ethics.
We also offered at the May Forum 4 hours of Accounting and Auditing as well as 4 hours Ethics, one being Mississippi law. The most unique thing about this seminar was that it was the first ever webinar offered by MAPA. Our board approved the use of Zoom in order to allow members that could not be there to log in at their office or home and still get the continuing education that is required. We had 5 people to log in, some being our board members in order to see how it works and to get familiar with the features.
Stay tuned for more webinars in the future and also we are in process of rolling out a new website that will hopefully provide portals for our members to make registering and dues payments a little more streamlined. Thanks to our president Josh Windham in his valuable assistance and time in this endeavor.
I can’t wait to see everyone in Biloxi and look forward to visiting with everyone. Be sure to come to ballgame hungry. Those of you that attended two years ago will remember the delicious choices of food, not just hot dogs and popcorn for sure!! There were hamburgers, hot dogs, shrimp and grits, chicken strips, desserts, etc.
Pam
We offered our standard Gear Up Seminars as well as two Tax Updates courses along with Ethics.
We also offered at the May Forum 4 hours of Accounting and Auditing as well as 4 hours Ethics, one being Mississippi law. The most unique thing about this seminar was that it was the first ever webinar offered by MAPA. Our board approved the use of Zoom in order to allow members that could not be there to log in at their office or home and still get the continuing education that is required. We had 5 people to log in, some being our board members in order to see how it works and to get familiar with the features.
Stay tuned for more webinars in the future and also we are in process of rolling out a new website that will hopefully provide portals for our members to make registering and dues payments a little more streamlined. Thanks to our president Josh Windham in his valuable assistance and time in this endeavor.
I can’t wait to see everyone in Biloxi and look forward to visiting with everyone. Be sure to come to ballgame hungry. Those of you that attended two years ago will remember the delicious choices of food, not just hot dogs and popcorn for sure!! There were hamburgers, hot dogs, shrimp and grits, chicken strips, desserts, etc.
Pam
2018-2019 MAPA New Member
C. David Ball – Jackson, MS
Robbie Fortenberry – Jackson, MS
Sue M. Richardson – Gulfport, MS
Kenneth Jackson – Columbia, MS
Jessica Cornelison – Pearl, MS
Shae Burnham – Pearl, MS
Terry Dixon – Hattiesburg, MS
Katelyn F. Farris – Hattiesburg, MS
Robbie Fortenberry – Jackson, MS
Sue M. Richardson – Gulfport, MS
Kenneth Jackson – Columbia, MS
Jessica Cornelison – Pearl, MS
Shae Burnham – Pearl, MS
Terry Dixon – Hattiesburg, MS
Katelyn F. Farris – Hattiesburg, MS