November 2007 | San Diego Chapter Bulletin

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DISASTER RESOURCES

Whether you or a client has been affected by the Southern California fires, CalCPA has resources to help you through the crisis, including comprehensive tax resources and other important disaster recovery information.
   CalCPA also is coordinating volunteer efforts to assist victims of the Southern California wildfires—and we need your help.
   There are opportunities for CPAs statewide to provide pro bono financial and tax assistance to fire victims who are in need. Even if you are not in Southern California, you can sign up to offer assistance by phone.
   Each volunteer receives a comprehensive Volunteer Handbook that contains virtually everything you’ll need—especially when combined with your professional expertise—to assist fire victims.
   To volunteer, update the volunteer portion of your personal profile.
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CHAPTER EVENTS

Litigation Consulting Services Committee

Topic: Owner’s Compensation: A Critical Issue in Business Valuation
Speaker: Brian P. Brinig, JD, CPA, ASA and S. Chris Summers, CPA, CFA
Date: Tuesday, Nov. 6
Time: Noon–1:30 p.m.
Location: Westin Horton Plaza; 910 Broadway Circle
Cost: By Oct. 31: $40/members; $50/nonmembers (after Oct. 31: add $5)
CPE: 1 hour
RSVP: Online

MAP Committee

Topic: Top 10 Money Pits in Your Lease
Speaker: Scot Ginsberg, Staubach Company
Date: Tuesday, Nov. 13
Time: Noon–1:30 p.m.
Location: Handlery Hotel; 950 Hotel Circle North
Cost: By Nov. 5: $20/members; $30/nonmembers (after Nov. 5: add $5)
CPE: 1 hour
RVSP: Online

Technology Committee

Topic: Security and Malware Protection Update
Speaker: Dave Peiser, Peiser Solutions; Byron Leonard, Software Blueprint IT Consulting
Date: Thursday, Nov. 29
Time: Noon–2 p.m.
Location: Handlery Hotel; 950 Hotel Circle North
Cost: By Nov. 21: $25/members; $35/nonmembers (after Nov. 21: add $5)
CPE: 2 hours
RVSP: Online

PFP/Tax Joint Meeting

Topic: New Tax Qualified Plan Design Opportunities
Speaker: Pamela C. Means and Ken Vollmer, Means & Associates LLC
Date: Tuesday, Dec. 4
Time: Noon–2 p.m.
Location: Handlery Hotel; 950 Hotel Circle North
Cost: By Nov. 27: $25/members; $35/nonmembers (after Nov. 27: add $5)
CPE: 2 hour
RVSP: Online

Litigation Consulting Services Committee

Topic: How Are You Perceived by Jurors and Others?
Speaker: Jilien Rubin, San Diego jury consultant
Date: Tuesday, Dec. 4
Time: Noon–1:30 p.m.
Location: Handlery Hotel; 950 Hotel Circle North
Cost: By Nov. 26: $20/members; $30/nonmembers (after Nov. 26: add $5)
CPE: 1 hour
RVSP: Online

San Diego Chapter Holiday Party

Date: Wednesday, Dec. 12
Time: 5:30–8 p.m.
Location: Blue Coral Seafood & Spirits; 8990 University Center Lane; La Jolla
Cost: By Dec. 3: $45 members and nonmembers (after Dec. 3: add $25)
RVSP: Online

Technology Committee

Topic: Office 2007 and Windows Vista: Is it Time to Upgrade?
Speaker: Bryan Whitfield, Systems Computer Training
Date: Friday, Dec. 14
Time: Noon–2 p.m.
Location: Handlery Hotel; 950 Hotel Circle North
Cost: By Dec. 6: $25/members; $35/nonmembers (after Dec. 6: add $5)
CPE: 2 hours
RVSP: Online

San Diego Tax Boot Camp

Co-sponsored by CalCPA and the University of San Diego
Topic: Individual Tax With Introduction to Corporations
Speakers: Katherine Leonard, CPA and Frank Beiser, CPA
Dates: Jan. 7–10
Times: Jan 7–9: 8 a.m.–5 p.m.; Jan 10: 8 a.m.–noon
Cost: $795/members; $895/nonmembers
CPE: 28 hours
RSVP: Online

ABC Night

Topic: Demographics, Population Issues and Economics
Speaker: Stephen Happel, economics professor, Arizona State University
Date: Wednesday, Jan. 9
Time: 5:30–8 p.m.
Location: Sheraton La Jolla; 3299 Holiday Court; La Jolla
Cost: By Jan. 2: $40/members; $50/nonmembers (after Jan 2: add $5)
CPE: 1 hour
RVSP: Online

Fraud: Exposures and Solutions in the Non-Audit Environment

Date: Wednesday, Jan. 16
Time: 7:30 a.m.–4:30 p.m.
Location: Handlery Hotel; 950 Hotel Circle North
Cost: $100/members; $170/nonmembers (after Wednesday, Dec. 19 add $30)
CPE: 8 hours (A&A and fraud hours)
RSVP: Online
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OTHER EVENTS OF INTEREST

11th Annual Tax & Accounting Institute

San Diego’s premier event for tax and accounting professionals.
Speakers: Michael Glynn, CPA, AICPA Audit & Attest Standards Technical Manager and Russell Sullivan, Esq., chief counsel, California Senate Finance Committee, among other experts on federal, state and local tax and accounting issues. View event brochure.
Date: Wednesday–Friday, Nov. 14–16
Time: Wednesday–Thursday: 7:30 a.m.–4 p.m.; Friday: 8 a.m.–Noon
Location: Handlery Hotel; 950 Hotel Circle North
Cost: $275/members; $375/nonmembers (after Wednesday, Oct. 24 add $25)
CPE: 20 hours (including up to 14 hours of A&A)
RSVP: Online
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PRESIDENT’S MESSAGE

Networking

By Narelle E. MacKenzie, CPA

Hope you are surviving the fall cold snap and had your flu shot! I experienced the flu 15 years ago and it is not an experience I care to repeat, so I have endeavored to have a flu shot ever since. I am a firm believer in trying something more than once, but the flu is the exception.
   The Thanksgiving experience was new to me when I first arrived in the United States and it is something that I do like to experience more than once, although the number of people who ask me if Australians celebrate Thanksgiving does surprise me. As far am I know, no pilgrims ever sailed to Australia.
   We held a couple of successful events in October. I attended the new-members lunch, hosted by Marleen Thudium, and enjoyed meeting new people and hearing why they joined CalCPA. Most people said they join to network—hooray! We all have many avenues available to us to network, but I find that attending an event is one of the best ways to network with other people who share my interests.
   In the spirit of networking, the Litigation Consulting Services Committee is meeting Nov. 6. Brian Brinig will address owner's compensation as it relates to business valuation. Brian has invited a number of attorneys and judges to attend, so this will be a great networking event. Laura Bennett chairs this group, and although the focus is litigation, the topics are interesting and appeal to other financial professionals.
   Also, CalCPA provides a great opportunity to develop leadership skills. At the new-member event, Barry Kohn, our chapter’s immediate past president, provided a very amusing account of his participation in various leadership roles in the chapter. CalCPA is always looking for people to get involved in areas that interest them, so if you’re interested, let us know and we will get you involved. Your support and involvement makes us stronger. CalCPA also has a Leadership Institute that assists in the leadership development of our future leaders. Marleen Thudium and Joe Forlenza are this year’s San Diego Chapter participants.
   Sam Mascareno did a great job chairing the International Conference in Tijuana in August. The feedback was positive and this was a great event for discussion of cross-cultural issues between Mexico and the U.S. I am not certain how many U.S. accounting students can dance up a storm, but I heard the Mexican accounting students put on a great display. Check out the photos.
   Jeanne Shannon and Joe Forlenza have put together an excellent program for the Tax and Accounting Institute to be held Nov. 14–16. I am sure there are topics of interest and benefit to you and your practice. Sign up now.
   Lastly, get ready for the holiday season because it is nearly upon us. The chapter will be holding its holiday party Dec. 12 at Blue Coral Seafood and Spirits in La Jolla. You can register online. I hope to see you there, as it is another great opportunity to network and meet people with similar interests.
—Narelle E. MacKenzie, CPA
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CHAPTER NEWS

New Members

On behalf of the San Diego Chapter’s officers, directors and members, we extend our warmest of welcomes to our new members: Marianna Fenelli, Archie Haas, Sandra Horton... [see all new members]

Bulletin Deadlines

Keep these dates in mind if there’s something you’d like to publish in the Bulletin. Information can be sent to chapter program associate Jackie Kuhn.
December issue: Nov. 7
January issue: Dec. 5

California Annual LLC Fee Refunds Will be Limited

By Melody Thornton, CPA, San Diego Chapter Tax Committee Chair
Gov. Arnold Schwarzenegger signed A.B.198 Oct. 10, a bill that salvages an illegal fee California levies on limited liability companies and eliminates the possibility of a refund for most LLCs that have paid the fee.
   Since 1994, California has imposed an annual filing fee on LLCs that are registered to conduct in-state business. The amount of the fee varies depending on the gross revenues of the LLC, regardless of where earned, and is capped at $11,790 for gross revenue over $5 million.
   The contentious issue of the fee is whether it is an administration fee or an illegal tax. Many LLCs argued that the fee is a tax and is unconstitutional because it lacked an effective mechanism to reflect where the LLC earned its revenue. The California trial courts agreed and, consequently, many LLCs filed protective refund claims, even though the Franchise Tax Board has appealed the cases.
   Effective for tax years beginning on or after Jan. 1, 2007, A.B. 198 changes the LLC fee computation to base it on apportioned revenue earned within California, thus making the fee a legal tax. The determination of California apportioned revenue generally follows the sales-factor apportionment provisions of the corporate franchise (income) tax.
   However, for prior tax years, the law eliminates the possibility of a refund for most of the LLCs that have paid the fee, and reduces the state's potential losses (via refunds) from $1.3 billion to $100 million, according to legislative staff.
   Under the new law, if the appellate courts uphold the trial court holdings and strike down the fee (as previously imposed), the FTB will remedy the illegal application of the fee by apportioning it for LLCs whose assessments are not final. The remedy will apply to all taxpayers who have filed protective claims for refund, as well as those who file a lawsuit seeking a refund either before or after the effective date of the law, meaning it applies to the plaintiffs in the pending LLC lawsuits.

Members on the Move

Mike Schwarz joined the firm Gatto Pope & Walwick, LLP in August. Prior to joining the firm, Mike was in practice in San Diego for 30 years and has experience working with various industries. Mike is a former vice president of CalCPA and past president of the San Diego Chapter. He served on the AICPA Governing Council and is a past member of the AICPA Quality Review Executive Committee.
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CalCPA NEWS

Leaders Wanted: Become a CalCPA Officer or AICPA Council Member

You are the driving force behind one of the world’s largest economies. Isn’t it time you put your leadership skills to use for the betterment of the CPA profession?
   The CalCPA Nominations Committee is accepting nominations until Dec. 1 for 2008–09 CalCPA officers and council members at large. Officer positions include chair, first vice chair, treasurer and two vice chairs. Three council members at-large also will be elected.
   Members can apply for more than one office and will be considered only for the positions to which they apply. Download a nomination form, review job descriptions and ideal leadership characteristics.
   For more information, contact John Angelo or Nominations Committee Chair D. Paul Regan.

Another Way to Serve—AICPA Council

If you’re an AICPA member and interested in representing your peers on AICPA Council, let us know. The Nominations Committee will recommend candidates to AICPA Council, which establishes AICPA policies and procedures, and enacts resolutions that are binding on the board of directors, officers, committees and staff.
   If you’re interested, send a letter of intent and your professional and volunteer history to: Nominations Committee; c/o D. Paul Regan, chair; 330 N. Brand Blvd., Suite 710; Glendale, CA 91203.
   All letters must be received by 5 p.m. Dec. 1. The AICPA makes the final selections.

CalCPA Member Discounts on CCH Tax Guidebooks

CalCPA members can order CCH’s U.S. Master Tax Guide 2008 and the Guidebook to California Taxes 2008 at significantly discounted rates:

2008 U.S. Master Tax Guide (Expected ship date, late-December 2007): $41/members; $61/nonmembers.

2008 Guidebook to California Taxes (Expected ship date, late-January 2008): $39/members; $59/nonmembers.

Order today.
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RESOURCES:

San Diego Chapter Leadership