June 2001

The Arkansas Public Accountant is the monthly publication of the Arkansas Society of Public Accountants.  The society is a professional organization composed of Licensed Public Accountants, Enrolled agents and persons holding out to be accountants or tax preparers with their services available to the public.  This organization is dedicated to helping our members give the best possible service to their clients.  We are happy to accept articles and/or advertising that would be of interest to our members and ask that you submit any thing for publication by the 25th of the month to be included in the next month’s publication.  Please send to: LaVERNE LONG, Editor P.O. BOX 758 NEWPORT, AR 72112-0758 llonga@ipa.net

The Arkansas Public Accountant

OFFICERS & GOVERNORS
2000 - 2001

FROM THE PRESIDENT’S PEN

Dear Members::

We were very pleased with the attendance at our Gear Up 1041 seminar in May 25th.  I never did get a final head count, but there were 100 registered on the day before.  It's hard to take a day out of your office to get CPE, but I always get some information that makes it worth my time and the registration fee.  The book you receive when you attend one of these seminars makes an excellent reference tool to use throughout the year.

Although I received a lot of favorable feedback about the comments I made in last month's newsletter concerning H&R Block's advertising, I did get one email from someone who did not appreciate it.  To her and anyone else I may have offended, please accept my apology.  My comments were certainly not aimed at any individual who works for H&R Block or who may own an H&R Block franchise.  I have a good relationship with several people who work for H&R Block.  Their tax course is very good ( I've had some employees who take it); but their advertising is still a source of irritation for me, as it apparently is for those from whom I received positive comments.  If any of you need a detailed reason why, please email me at SRuss51670@aol.com.

Our next big seminar will be the Quickbooks Seminar, July 26-27 at the Holiday Inn Select in Little Rock.  You have probably received your registration form in the mail, so I hope you will get them back to LaVerne as soon as possible.  We feel very fortunate to have Phill Gomez coming to do this for us.  Mr. Gomez also will be a featured speaker at the NSA convention to be held in Minneapolis in August, and there is a picture and brief bio in the NSA Convention Brochure I just received.

The Arkansas State Board of Accountancy has formed a committee to study and revise CPE standards fir licensees.  As I understand it, they will be setting standards for CPE requirements based on the type of practice in which you are engaged (i.e. tax only, accounting only, auditing, tax and accounting, etc.) Serving on this committee from ASPA are Ronny Woods, Carl Dalrymple Jr. and LaVerne Long.  Their first meeting will be in early June, and you can expect to hear more about this very soon.

Looking ahead, the ASPA convention will be later than usual this year (October 16-18) and the Gear Up 1040 will be earlier than usual (November 19 & 20).  Juggling of dates is sometimes necessary to coordinate speaker availability with hotel/motel availability.  With the passing of the President's tax package, the tax seminar should be of particular interest.

I hope your summer is off to a good start.  I'll look forward to seeing many of you in July.

Sincerely,

Shelly Russell
President - ASPA

IRS NEWS RELEASE
NATIONAL PROBLEM SOLVING DAY SET FOR JUNE 16, SATURDAY SESSION EXPANDS SERVICE FOR TAXPAYERS.

Washington - In the continuing effort to raise its standard of service to taxpayers, the Internal Revenue Service will hold a National Problem Solving Day on Saturday, June 16.

At 56 locations nationwide, people can get one-on-one tax help from IRS experts.  The IRS will offer at least one Problem Solving day location in each state.

"Although our doors are regularly open Monday through Friday for taxpayers who need tax help, we will also offer assistance on Saturday," said IRS Wage and Investment Division Commissioner John Dalrymple.  "By being available on Saturday, we hope to make it more convenient for taxpayers who work Monday through Friday."

At each of the June 16th sessions, from 9 a.m. to 3 p.m. local time, individual taxpayers can sit down and discuss tax problems with IRS experts.  IRS decision makers will be at each location to help iron out taxpayer problems.

Taxpayers can make appointments to attend a Problem Solving Day by calling the IRS toll-free number - 1-800-829-1040.  Taxpayers can also visit the Saturday session without an appointment.

Many taxpayers can resolve their questions or problems by calling the IRS toll-free number without even visiting a Problem Solving Day session. The IRS is working to make the spirit of Problem Solving Day a part of its day-to-day effort to help taxpayers.

"Offering assistance everyday plus special Saturdays reflects our commitment to top-quality, taxpayer-centered service," said Jerry Heschel, IRS Director of Field assistance.  "It's a direct result of the reorganization of the Internal Revenue Service."

In November 1997, the IRS held the first Problem Solving Day.  What emerged was an innovative approach of opening IRS doors to help taxpayers with long-standing problems, such as not receiving credit for a payment or not receiving a refund.

Since then almost 60,000 taxpayers have had their cases resolved at Problem Solving Days. Seven issues account for half of the case work: audit and reconsideration, 13%; Offers in Compromise, 10%; requests for technical or procedural explanations, 7 %; installment agreements, 7 %; penalty issues, 6 %; account notice inquires, 6%; inability to pay, 5%. The remaining 46% are miscellaneous issues that either cross over many issues or other topics.

A list of the Problem Solving Day locations can be found by visiting www.irs.gov.

In Arkansas the site is Little Rock at the Federal Building on Capitol Avenue.

SIX REASONS TO TURN OFF YOUR COMPUTER EVERY NIGHT

There are several good reasons why you should completely shut down your computer - including printers and hard drives - before you leave work for the day.

1. Your computer will require fewer repairs.
2. Files will be saved if you shut down properly.
3. Turned off computers pose less of a security risk.
4. Networked computers reconnect to the network once they are started, shutting down ensures access to these networks.
5. The file server doesn't keep checking on a computer that is shut down.  This reduces the load on the network once they are started.
6. A computer isn't susceptible to power surges or outages if it is not on.

IRS PLAYS MAJOR ROLE IN SENDING OUT REBATE CHECKS

Sending rebate checks to taxpayers sounds simple, but getting the job done is complex and involves both the IRS and Treasury's Financial Management Service (FMS).

Under new tax law passed the last week of May by Congress, Treasury must send rebate checks to most taxpayers this year as an advance payment of a 2001 credit.  The IRS will compute the amount of the payment for each taxpayer and mail a letter stating the amount of the payment and when FMS will mail the check.  The service will also mail letters to taxpayers who do not qualify for the payment.

As Commissioner Rossotti said "With your help, I'm confident that we are up to the task of getting these payments into the hands of the taxpayers expeditiously."  He also said "No matter where we are in the organization, we all have to work together to make this effort successful.  Even if you are not answering a phone or staffing a walk in counter, you have a role to play.

Key points when answering questions about the rebates

• The Internal Revenue Service will automatically process  rebates of the 2001 tax credit after the taxpayers have filed their returns for Tax Year 2000.
• Taxpayers will not have to complete applications, file any extra forms or call the IRS to request their rebates.
• The 2001 rebate amount is a maximum of $300 for single taxpayers, $500 for a head of household, and $600 for a  married couple filing a joint return.
• By mid July, the IRS will send taxpayers a letter, detailing the payment amount, the week it will be sent, and the possibility of an offset for outstanding government debt. The IRS will also send a letter of explanation to taxpayers who are not eligible for the rebate.
• Recipients should keep the letter for reference when completing their 2001 returns.
• Taxpayers who have moved since filing their last return should receive the IRS letter and the check if they have filed a change of address with the U.S. Postal Service. We are matching our records weekly with the Postal Service to update our address information.
• Generally, the last two digits of the taxpayer's social security number will determine when the 2001 rebates are mailed, so a person may get a check at a different time than a neighbor or even other family members.

• Because the bank account information provided by the taxpayer when filing the tax return may no longer be applicable, the Treasury will not send the rebates by direct deposit.
• Those who have not yet filed a return for 2000 will not get any rebate until the IRS processes that return.  The sooner they file their returns, the sooner they will receive any rebate.

TO WHOM IT MAY CONCERN

The Arkansas State Board of Public Accountancy "Board" will have a public hearing on proposed changes in the fee schedule as well as some technical corrections to Rule 12.

These revisions are to recover thirty-eight percent (38%) AICPA increase in the cost of grading each section of the CPA Examination "Exam", to recover increased non-grading costs incurred giving the exam, and to recover administrative costs regarding processing applications for licensees. These exam fees have not changed since September of 1996 when the AICPA last raised the grading fees, but costs of office space, personnel compensation, and supplies have.  Therefore, the exam fees must be increased to avoid subsidization of the exam by other registrants of the Board.  The technical corrections streamline and clarify terminology.

The Board has scheduled a hearing time of 11 a.m. on June 22, 2001 in the Claims Commission Hearing Room, Suite 410, at 101 E. Capitol Avenue in Little Rock.  The Board will make final disposition of this rulemaking by teleconference on June 27, 2001 at 10 a.m.  Please call if you plan to attend, this will help us determine if the selected hearing room is an adequate size.

Rule 12 - Fees
The fees for various services if the Board are as follows (must be paid in U.S. Dollars):

CPA EXAMINATION FEES:

• First-time application fee (non-refundable..$50
• Law & Professional Responsibilities.............$65$50
• Auditing.....................................................$65$50
• Accounting & Reporting.............................$65$50
• Financial Accounting & Reporting...............$65$50
• Proctor Fee for Out-Of-State Applicants........$65$50

OTHER APPLICATION FEES (NON-REFUNDABLE)                                                                                                    

• CPA/PA License...........................................$50
• Application for Reciprocal Certificate..........$50
• Application for Registration as a Public Accountant.............................................$50
• Application for Registration of Partnership Limited Liability Company Composed of CPA's.....................................................$80
• Application for Registration of Partnership, Limited Liability Company Composed of PA's........................................................$80
• Application for Duplicate or Replacement Certificate...............................................$20
• Transfer of Credits From Another Jurisdiction:Transfer Fee for Each Part..........................$10

ANNUAL REGISTRATION FEES

• Active License.............................................$70
• Inactive License Status................................$40
• Active License.............................................$70
• Notification of intent to practice under "Substantial Equivalency" provision...........$70
• Partnership, Corporations and LLC.............$70
• Registration of each firm in excess 0f One office...............................................$25

District Governor's Column                                                 

IT'S TIME FOR YOU AND YOUR SOCIETY TO SHINE!

Once a year, the National Society of Accountants recognizes individuals and Affiliated State Organizations for outstanding service or accomplishments.  Perhaps you, your society or another member deserves one of these awards. The Awards Committee will have no way of identifying notable achievements unless a nomination or other material is received.  The deadline for submitting nominations is June 15, 2001.

• Accountant of the year - This is probably the most coveted honor that NSA bestows upon an individual member.  Outstanding service to one's state society us usually high priority in selecting the recipient of the award. Of course, service to NSA and the profession are considered as is stature in the accounting world.  The committee will be looking for individuals who have a history of volunteer to civic and professional groups and who have earned the reputation of being a reliable achiever.  There are many members in District VIII who would qualify for this prestigious award and deserve to be recognized as an NSA Accountant of the Year.  The award includes a donation in the winner's name to the NSA Scholarship Fund of $250. (NSA Past Presidents, members of the Board of Governors, and State Directors are not eligible for this award.)
• National Editorial Award - If you or an associate authored an article or a series of articles for your state newsletter, you may be a winner.  The article must be original and have been printed in an Affiliated State Organization's publication.  There are no forms to fill out, just make sure the Awards Committee has a copy of the publication containing the article written with a "golden quill."
• ASO of the Year - The award presented to NSA's outstanding Affiliated State Organization was begun last year, so the title belongs to the first recipient, the Washington Association of Accountants.  The purpose of the ASO of the year Award is to publically recognize an outstanding state affiliate.  The award is based on the overall achievement and activity of the ASO and might include such items as educational programs, membership recruitment and retention, legislative activities, PAC funds, and scholarship initiatives.  Cooperation with or promotion of NSA programs would be judged favorably as would community outreach programs.  Think of the favorable publicity such an award would bring to your society.  Why not try for it?  The nomination process is easy - just complete a simple form and explain in 500 words or less explaining why your ASO deserves this award.
• ASO Public Relations - The Myron D. Schreibman Award is presented annually to NSA's Affiliated State Organization deemed to have devised and carried out the best public relations program.  Wouldn't it be great to have this plaque to hang in your state's office?  If you had a public relations program this past year, your chances of winning are good.  Just explain the goal, what you did to achieve it, and how effective it was.  Submit copies of promotional items used.
• ASO Outstanding Publication - The Kieth Billings Memorial Award is presented to the most outstanding publication of as ASO. Consideration is given to the timeliness and pertinence of topics, format, and attractive appearance.  The publication does not have to be printed monthly to qualify but should be routinely produced.  This is another opportunity for a plaque to display in your state office.  Copies of the publication should be submitted for consideration.
• Accountancy Board Monitoring - Awards are presented annually to NSA ASO's that routinely monitor their state accountancy boards and submit reports of the meetings. Every state in District VIII is legislatively active and astute and should qualify for this award.  No nomination is necessary; but if reporting is not up to date, please submit reports immediately.  This program encourages awareness of what is happening that might affect members' practice rights and serves both the ASO and NSA well.  Another neat plaque for the state office.

Forms for making nominations are available on the NSA website at www.nsacct.org or can be requested by contacting Arleen Richman by phone at 1-800-966-6679, extension 1327, or via email to arichman@nsacct.org.

Completed nominations and accompanying materials should be sent to Arleen Richman, National Society of Accountants, 1010 N. Fairfax Street, Alexandria, VA 22314

The awards will be presented during the NSA Annual Convention in August.  You and your society deserve one of these honors.  The deadline for submission is June 15.

Don't delay.

Wanda Samek
NSA District VIII Governor

TAX INFORMATION FROM THE IRS
Provided by Taxpayer Education and Communication SB/SE
Nashville, TN

IRS CENTRALIZES OIC PROCESS

On May 17, 2001, Charles O. Rossotti, Commissioner of the Internal Revenue Service announced plans that his agency will be centralizing its Offer-in-Compromise program into two sites.   The announcement came before the Senate Appropriations Subcommittee on Treasury, Postal Service and General Government.  The plan is designed to streamline the offer process while reducing a growing backlog of cases.

" The offer program continues to show an increase in its over-age inventory even while resources used have continued to increase, " says Rossotti.  

There are many factors that may have caused the backlog.  First, the Restructuring and Reform Act of 1998 mandated that all installment agreements must provide for the full payment of the outstanding liability within the prescribed statute.  This law has resulted in an increase of cases meeting offer criteria.  Secondly, additional offer considerations have resulted in an increase in the number of offers receipts.  Other possible reasons include an increase in the number of cases that are being appealed; errors made in completing offer forms resulting in delays and the omission of information needed to investigate the offer.   

GAO has been asked to conduct a study to identify recent trends in the existing offer program and to identify and assess the effectiveness of the planned changes.    

Recent tests in other government agencies have shown that using a bulk processing methodology to process low-dollar cases have resulted in productivity gains.  In light of those results, Mr. Rossotti has approved the centralization of processing for Offers-in-Compromise which will be divided between two sites which are located in the newly established Small Business/Self Employed operating division.

Beginning in August of 2001, all Offers-in-Compromise will initially be sent to the Brookhaven Service Center or the Memphis Service Center for processability and case building.  Also, less complex offers will be worked to completion at these service centers.  It is estimated that this will account for up to approximately one-half of the total offer receipts.  These less complex cases will be limited to certain criteria such as: taxpayers with a total outstanding tax liability of $50,000 or less, wage earners, sole-proprietorships without employees and those with no real estate outside of their personal residence.

The more complex offers will be assigned to local field Revenue Officer/Offer-in Compromise Specialists for investigation as in the past.  According to Rossotti, "This will allow revenue officers to concentrate on collecting overdue accounts while improving the timeliness of processing offers."

What do these changes mean for the Tennessee Practitioner? The vision for the new centralization process will eliminate long delays in the processing of offers and expedite case resolution while providing top quality customer service.  Representatives should continue to submit their offers as they have in the past until interim procedures are established.  Be sure to visit the IRS Digital Daily Web site at www.irs.gov for additional updates.

IRS Filing Season One of the Best Ever; E-filing Hits Record, Taxpayer Service Improves

WASHINGTON - The Internal Revenue Service reached new standards for performance during this year's tax filing season, highlighted by record numbers of people filing electronically and significant improvements in taxpayer service.

"The IRS delivered one of the best filing seasons ever, even as the agency continued putting in place its most sweeping reorganization in decades," IRS Commissioner Charles O. Rossotti said Thursday.

Rossotti and John Dalrymple, Commissioner of the Wage and Investment Division, proclaimed the filing season a success as the agency released a new set of statistics illustrating IRS progress on taxpayer service. Cautioning that the figures, while impressive, simply document advances toward the goals of the new agency, Rossotti noted that this year's progress occurred even though the agency's new management structure has been in place just since October.

"This year, the IRS provided better service to taxpayers than ever before," Rossotti said. "Of course, this does not mean we are satisfied. We have much room for further improvement, but this year's results are a step in the right direction."

According to Dalrymple, "In addition to improved telephone and walk-in services, our growing array of online capabilities is attracting more and more taxpayers and tax preparers who demand maximum speed, security and convenience."

Highlights of this year's filing season include:

• Electronic tax filing sets new record. Through April 20, taxpayers filed nearly 39.5 million returns electronically, breaking the 35.4 million record for all of last year. By the time the e-filing program ends later this year, the IRS expects to receive about 40 million returns -- more than 30 percent of individual taxpayers.
• Home computer use soars. People using home computers to e-file jumped to more than 6.6 million, shattering the old record. It's a 35 percent increase from last year's self-preparer number.

* IRS.GOV attracts more taxpayers and doubles downloads. The IRS web site at www.irs.gov remains one of the most frequently visited sites during tax season. Through April 16, the site recorded more than 1.5 billion hits this year, a 57 percent increase from last year. More importantly, the number of forms and other documents downloaded topped 103 million through February, a 100 percent increase from the same period last year. "More and more, taxpayers and tax practitioners are embracing computers to help with their taxes," Rossotti said.

• Direct deposit of tax refunds up. This year, a record number of taxpayers used direct deposits for their refunds. Taxpayers filing more than 31 million returns selected direct deposit, the safest and fastest way to get refunds. That's an increase of 14.5 percent from last year.
• Tax processing continues at rapid pace. Workers at IRS Centers continue processing tax returns at an efficient rate with more than 83 million processed. This rate closely matches last year's processing rate, which was the best in several years. (Due to the calendar, last year's numbers include one more day of processing than this year.)
• Phone service. IRS assistors and automated systems answered more than 59.2 million phone calls - a 16 percent increase from last year. Taxpayers who wished to speak directly to an IRS assistor got through 66.5 percent of the time, up from 62.2 percent last year.  The Service's correct-response rate also is improving. The cumulative correct-response rate on tax-law calls is 78 percent; while calls about individual accounts the rate is 88.6 percent.

"These telephone results represent significant, clear progress toward our long-term access and quality goals," Rossotti said. "It was made possible in part by new technology, which has been implemented during the last two years."

According to Dalrymple, whose division has principal responsibility for the filing season, "While these upward trends are encouraging, especially occurring as we experienced the highest volume in our history, we are far from satisfied and are taking measures to ensure that taxpayers receive answers they can rely on."

Rossotti noted the improvements came during a challenging period for the IRS.

"This was the first filing season managed by the new organization, which went into effect just three months before the start of the filing season," Rossotti said. "We are pleased that we were able to provide significantly improved results in such a short time. This bodes well for our long-term goal of providing top-quality service on a par with the private sector."

Rossotti thanked IRS employees for their long hours and hard work processing tax returns, answering telephone calls, visiting taxpayers and performing many other important tax administration duties.

"With the reorganization, our employees had a lot on their hands this year. But our people came through and delivered one of the smoothest filing seasons ever," Rossotti said.

DON'T FORGET TO REGISTER FOR THE "QUICKBOOKS SEMINAR" TO BE JULY 26 & 27 AT THE HOLIDAY INN SELECT IN LITTLE ROCK. THIS WILL BE THE ABSOLUTE BEST QUICKBOOKS SEMINAR YOU WILL HAVE THE OPPORTUNITY TO ATTEND.  WE HAVE HAD MEMBERS ATTEND THIS SEMINAR AND THEY GIVE GLOWING REPORTS ON THE QUALITY OF BOTH THE SPEAKER AND THE MATERIAL AND HOW IT IS PRESENTED. MORE AND MORE OF YOUR CLIENTS ARE GOING TO BE USING THIS SOFTWARE IN HOUSE AND YOU NEED TO BE FAMILIAR WITH HOW IT WORKS AND EVEN CONSIDER USING IT IN YOUR OWN OFFICE.

Newsletter | By Laws | Officers & Governors | Membership Types | Event Calendar | Information Links | Contact
Entire Contents Copyright © 2001 Arkansas Society of Public Accountants. All Rights Reserved.
Legal Notice

RETURN TO MAIN SITE