By Narelle E. MacKenzie, CPA

I am very grateful we are past May Grey and June Gloom. This is part of the beauty of living in the great city of San Diego. The San Diego Wild Animal Park is a wonderful part of San Diego, and if you were able to make it to the Chapter Installation in May, you can appreciate what a great job they do with the animals. It was great to see scholarship recipients from various schools and stages of life, and with diverse interests outside of accounting, from singing to rugby. Thank you to those who attended and made it a great evening. Also, thank you to my employer, PricewaterhouseCoopers, who sponsored the event. Check out some photos from the event.

   June saw our chapter leadership planning meeting, and there are some great activities on the horizon so be on the lookout for event information. I am particularly excited by the Accounting Principles and Auditing Standards group chaired by Dan Dangel and Minel Diaz. If you are involved with auditing, the topics they are covering in regard to the new standards that apply to audits effective after Dec. 15, 2007, are relevant and important for planning for your practice and auditing activities.

   At the member networking event at Prego, a number of people asked about getting more involved with CalCPA. Marleen Thudium, chapter first vice president, provided some great advice: go to a couple of the committee meetings that interest you and let the chair know you are interested in helping with the group. You will be welcomed, as chairs are always looking for new blood to keep the committee vibrant and relevant.

   Remember July 9-13 is the California CPA Education Foundation’s San Diego CE week, with topics ranging from “Finding and Evaluating Frauds” to the “Tax Consequences of Divorce.” If you are not able to make it to any of these eight-hour sessions, then try and get to one of our chapter committee or discussion groups for a shorter session. In addition to topical committees, which usually meet at the Handlery Hotel, there are three regional groups: North County Coastal (Mark Hvasta, chair); La Mesa Discussion Group (John Stremlau, chair); and La Jolla/Life's a Beach (Dick Maches, Chair). Each of these discussion groups provides a forum for networking and getting to know your fellow CalCPA members. Get involved, find answers to your questions and meet new people.

   This year has been the start of many new areas in my life, and July sees the start of a new venture for me, teaching the international tax class at San Diego State University as part of the Masters of Taxation program. I am very excited to be teaching. If you are interested in teaching accounting, please contact chapter program associate Jackie Kuhn, as a number of different schools and colleges in the San Diego area have asked the San Diego Chapter about getting in touch with CPAs who would like to teach accounting and other subjects to their students. CalCPA would like to help you reach these future CalCPA members!
– Narelle E. MacKenzie, CPA

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We congratulate the following San Diego Chapter members for their recent accomplishments:

Robert F. Kevane, CPA, has received the prestigious Public Service Award from the AICPA for exemplifying public service and commitment to community volunteer work. In 2006, Bob received CalCPA’s Public Service Award. His long-term commitment to various not-for-profit entities has provided practical and valuable real-world business, accounting and real estate related experience to various organizations, helping to improve the future of the organization.

   Gatto, Pope & Walwick, LLP, wishes to congratulate Minel Diaz, CPA, for being elected to CalCPA’s San Diego Chapter Board of Directors and Cindy Musser for her recent passing of the California CPA Exam. Minel provides a variety of accounting and audit services to GWP’s clients in the construction and manufacturing industries and nonprofit organizations, as well as professional and financial services. Cindy has been with the firm since 2003 and her accounting expertise includes compilations, reviews, audits and tax preparation.

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Keep these dates in mind if there’s something you’d like to publish in the Bulletin. Information can be sent to program associate Jackie Kuhn.

August issue: July 11
September issue: Aug. 13

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By John Kennerson, CPA

The recently enacted Small Business and Work Opportunity Act of 2007 contained significant changes to the tax preparer penalty provisions that were effective for returns prepared after May 25, 2007.

   The new law amended several provisions of the Internal Revenue Code to extend the return preparer penalties under IRC Sec. 6694 to preparers of all tax returns, including estate and gift tax returns, employment tax returns and excise tax returns. Prior to these changes, the penalties provided in Sec. 6694 applied only to the preparers of income tax returns. The new law also increased the amount of the penalties and changed the standards of conduct that must be met by return preparers to avoid penalties under Sec. 6694.

   The IRS has listened to the tax professional community, including a formal request by the Tax Section of the AICPA, to provide transitional relief for what are very significant changes. Recently released IRS Notice 2007-54 http://www.irs.gov/pub/irs-drop/n-07-54.pdf provides guidance and transitional relief to the return preparer penalty provisions.

   The transitional relief will apply to all returns, amended returns and refund claims due on or before Dec. 31, 2007, including those returns, amended returns and refund claims filed pursuant to extensions to file due on or before Dec. 31, 2007; to 2007 estimated tax returns due on or before Jan. 15, 2008; and to 2007 employment and excise tax returns due on or before Jan. 31, 2008.

   This transitional period should give practitioners the time needed to assess the full impact of the changes and determine how they will deal with the increased level of certainty required. Tax positions on all tax returns will be now be required to meet the standard of “more likely than not to be sustained,” rather than the prior “realistic possibility of being sustained.” These new, but now delayed, rules will most certainly significantly impact how tax professionals formulate and implement tax planning strategies for their clients.

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By Dan Dangel, CPA

Auditors have heard about the major changes in 2008 regarding implementation of SASs 104-111, the Risk Assessment Standards. We are all faced with making changes (from minor to extreme changes) to comply with these new standards.
   As chair of the Accounting Principles and Auditing Standards Interest Group and an auditor, I’ve called an organizational meeting to form regional Risk Standards Implementation Groups. While our first meeting will be open to all who are interested, the idea is to break up into groups by region within the county so future meetings can be organized and held to meet the needs of the auditors within a local area as to time and place and content.
   The thought is that these groups would be small (eight-12 people) and that portions of the topic would be addressed each meeting to obtain the input of other members of the group and more effectively meet the deadline for implementation.
   If you’re interested, please sign up by July 19. If we do not have 10 who are interested by then, we may cancel the meeting.

Topic: Formation of Regional Risk Standards Implementation Groups
Facilitator: Dan Dangel, CPA
Date: Wednesday, July 25
Time: 12–2 p.m.
Location: Handlery Hotel, 950 Hotel Circle North
Cost: $20/members; $30/nonmembers (after July 17: add $5)
Info: Dan Dangel

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Topic: Buying or Selling a CPA Practice in Southern California
Speaker: David C. Smith, president, Business Brokerage, Inc.
Date: Tuesday, July 10
Time: 12–1:30 p.m.
Location: Handlery Hotel, 950 Hotel Circle North
Cost: $20/members; $30/nonmembers (after July 2: add $5)

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Topic: Peer Review
Speaker: Perry M. Henderson, CPA
Date: Wednesday, July 18
Time: 12–2 p.m.
Location: Handlery Hotel, 950 Hotel Circle North
Cost: $25/members; $35/nonmembers (after July 10: add $5)
CPE: 2 hours A&A

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Topic: Formation of Regional Risk Standards Implementation Groups
Facilitator: Dan Dangel, CPA
Date: Wednesday, July 25
Time: 12–2 p.m.
Location: Handlery Hotel, 950 Hotel Circle North
Cost: $20/members; $30/nonmembers (after July 17: add $5)
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Topic: Mobility–Part 1: Remote Access & the Virtual Office
Speaker: Clifford Y. Kaiser, Kaiser & Associates, IT Consulting
Date: Thursday, July 26
Time: 12–2 p.m.
Location: Handlery Hotel, 950 Hotel Circle North
Cost: $25/members; $35/nonmembers (after July 18: add $5)
CPE: 2 hours

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Topic: Changes to the R&D Tax Credit That May Allow Your Clients to Qualify
Speaker: Sonny Grover, CPA, alliantgroup LP
Date: Tuesday, Aug. 28
Time: 12–2 p.m.
Location: Handlery Hotel, 950 Hotel Circle North
Cost: $25/members; $35/nonmembers (after Aug. 20: add $5)
CPE: 2 hours 

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Date: Tuesday, Sept. 18

Location: Handlery Hotel & Resort

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Date: Friday, Sept. 28
Location: Kona Kai Resort

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Dates: Wednesday–Friday, Nov. 14–16
Location: Handlery Hotel & Resort

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