cpa report 1q2011

CPA ReportCPA ReportSouth Carolina Association of Certified Public Accountants

F i r s t E d i t i o n 2 0 1 1

PLUSPLUS• Meet SCACPA’s 2011

President

•• CPAs of the Future

• IRS/DOR Meeting

Report

• 2010 Tax Act Overview

TAX Season TAX Season 20112011

South Carolina CPA Report 2 (888) 557-4814 | www.scacpa.org

Charleston 2430 Mall Drive, Suite 360 Greenville

843-884-3912 Charleston, SC 29406 864-245-8788

www.american-pensions.com

South Carolina CPA Report 3(888) 557-4814 | www.scacpa.org

Special Tax Section

In This Issue

In Every Issue6 Association News

8 On Your Behalf

25 Board of Accountancy News

26 Member News

27 Welcome New Members

28 Chapter Connections

30 Upcoming CPE

34 Classifi eds/Advertiser Index

14 IRS/DOR Meeting Report

16 Federal Tax Conference Wrap-Up

17 2010 Tax Act Overview

4 Meet the President

10 CPAs of the Future

16 2010 Fall Conference Wrap-Up

20 2010 Award Recipients

29 Young CPAs: 2010 Leadership Academy

OFFICERS

Timothy L. Baker, CPA, President

Michael R. Putich, CPA, President Elect

Sharon E. Mann, CPA, Vice President

Malynda M. Grimsley, CPA, Secretary-Treasurer

Charles E. “Eddie” Brown, CPA, Past President

BOARD OF DIRECTORS

William R. Barefoot, CPAPatrick P. Carey Jr., CPA

Clarence Coleman Jr., CPA, Ph.D.Mark S. Crocker, CPA

Alys Anne Dennis, CPAJ. Bratton Fennell, CPA

Cheryl O. Lang, CPAPenny A. Lewis, CPA

A.D. “Dave” Masters, CPAJ. Patrick McDermott, CPA

James W. McIlrath, CPAPhilip R. Snipes, CPA

Michael J. Targia, CPA, CFARobert M. Tilton, CPABeth T. Zamorski, CPA

EXECUTIVE DIRECTOR

Erin P. Hardwick, CAE

MANAGING EDITOR

Allison K. Caldwell

GRAPHIC DESIGNER

Lisa S. McGee

CONTRIBUTING WRITERS

Charles M. Ayers, CPAReva Brennan, MPA, CAE, IOM

Neil A. Brown, CPA, MAcc, CFP®Allison Caldwell

Amanda Colgate, CPAErin P. Hardwick, CAEMark T. Hobbs, CPA

Jennifer R. MacLeod, J.D., LL.MSteven E. Miller, CPA

2011 EDITORIAL BOARD

Charles E. Alvis, CPA, MPA, MBA, ChairEllen K. Adkins, CPA, MBA

John B. Brantley, CPANeil A. Brown, CPA, MAcc, CFP

Amanda S. Colgate, CPALisa S. Cooke, CPA

Erin P. Hardwick, CAEKaren A. Hursey, CPALesley H. Kelly, CPA

Margaret L. Lattimore, CPAMarsha G. LePhew, CPAAnthony G. Masino, CPAA. D. “Dave” Masters, CPA

Derrick B. Stark, CPACatherine B. Stoddard, CPAVictor C. Webster, CPA, MBA

South Carolina Association of Certifi ed Public Accountants Magazine

Volume 41, First Edition 2011

Statements of fact and opinion are made by the authors alone and do not imply an opinion on the part of the offi cers

or members of the SCACPA. Advertising rates will be furnished on request to SCACPA, 570 Chris Drive, West Columbia,

SC 29169, (803) 791-4181. Publication of an advertisement in The CPA Report does not constitute an endorsement of

the product or service by The CPA Report or the SCACPA.

CPA ReportSouth Carolina Association of CPAs


An Interview with SCACPA’s 2011 PresidentCompiled by Allison Caldwell

A new year brings new leadership for SCACPA, and Tim Baker assumed his role as president

on January 1. With 17 years of active membership under his belt, Tim looks forward to leading the Association to a new level of collaboration and value for its 4,000 members. Look for his regular column in subsequent issues—for now, it's time to get crackin’ and meet your new president!

Timothy L. Baker, CPA, CITP, CMA

SCACPA member since 1994

SCACPA INVOLVEMENT: SCACPA Board, IT Committee, Finance Committee, Audit Committee, Investment Committee

HOMETOWN: Wagener, SC

FAVORITE BOOK: The Goal by Eli Goldratt

FAVORITE MOVIE: The World’s Fastest Indian with Anthony Hopkins

FAVORITE HOBBIES: Spending time with family, kayaking, grilling and riding his Harley

FAMILY: Wife Kim (married for 25 years, Engineer); son Jonathon (age 19, Materials Science and Engineering major at Clemson University); daughter Jackie (age 16, student at Aiken High School)


SCACPA: Briefl y describe your experi-ence as a CPA: why or how you fi rst chose the profession, past and current area of practice/fi rm info, and how and why you fi rst became involved with SCACPA.

BAKER: I became interested in ac-counting when returning to college as a non-traditional student. I had several members that mentored me, including SCACPA member Don Martin. I selected accounting as a major, and co-oped as a student at Wade and Company (now Elliott Davis). My current occupation is managing ERP system implementa-tions for small and mid-sized businesses ($10 million to 500 million) and is very enjoyable. I frequently work with clients with reporting needs and issues, under-standing of controls, as well as designing systems beyond the fi nancials area. I’ve recently had the opportunity to work with clients on such diverse topics as in-terfacing with a manufacturing machine control system, EDI, and integration with a client’s Web stores.

I fi rst became involved with SCACPA at the request of Donny Burkett , one of our past presidents and a great friend. Donny called me and asked what I was going to do to participate in SCACPA since I was now a member. I started with the IT Committ ee and went from there.

SCACPA: You’re a successful busi-ness owner and entrepreneur. From the CPA’s perspective, share how you moved from more “traditional” practice into what you do today. What do you enjoy most about your job?

BAKER: The opportunities to get where I am today were aff orded to me by some of the great CPAs I’ve had the pleasure to work with and for. Without their leadership, opportunities for growth and

advancement and their help, I would not have accomplished what has been done.

SCACPA: Some have heard the “get crackin’” story from last year’s board retreat (and now we’ve all seen the pictures)—what are some of your goals as SCACPA president in 2011?

BAKER: SCACPA’s goals for 2011 are as follows:1) CPE Delivery & Marketing: Making

SCACPA’s CPE programming high quality and competitive, taking into consideration the market, delivery method, cost structure, content and sales.

2) Communication, Marketing & Branding: Ensuring that SCACPA’s messaging is current, engaging and, most of all, eff ective.

3) Profession Advocacy: Being more proactive in creating a voice for South Carolina CPAs in standard-sett ing, regulation writing and law creation.

4) Young Professionals: Engag-ing CPA candidates, new licensees and young CPAs.

5) Association and Governance Structure: Reviewing and evaluating how SCACPA best meets the needs of its members.

SCACPA: To date, what about SCACPA involvement has been the most meaningful or impactful—to you personally, and perhaps to the membership at large?

BAKER: The ability to work with various task forces to see the im-pact they have. It’s been particular-ly interesting to see the evolution of the Association as it has become

more and more involved in legislative advocacy, and hearing from our mem-bers how important that involvement has been.

SCACPA: Fast forward to this time next year. If you could choose just one thing to accomplish, create or improve during your tenure, what would it be?

BAKER: To make sure that the chapters and SCACPA are working together to bett er serve our members. This is so im-portant that we have established a task force to study this issue.

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ASSOCIATION NEWS

Call for KPCsMany new legislators took offi ce in January, and it’s vital that SCACPA have members willing to serve as key person contacts (KPCs) when crucial issues come before our state or national lawmakers. If you have a personal or business relationship, casual acquaintance with or simply live or work in the district of any of those listed below, please consider joining our valuable KPC program. Staff contact: Glenna Minor

Freshmen members of the S.C. House of Representatives:Todd Atwater, Lexington Co.; Eric Bikas, Pickens Co.; Doug Brannon, Spartanburg Co.; Mia Butler Garrick, Richland Co.; Bill Chumley, Spartanburg Co.; Tom Corbin, Greenville Co.; Bill Crosby, Charleston Co.; Bill Hixon, Aiken Co.; Peter McCoy, Jr., Charleston Co.; Elizabeth Munnerlyn, Marlboro Co.; Chris Murphy, Dorchester Co.; Andy Patrick, Beaufort Co.; Tommy Pope, York Co.; Rick Quinn, Jr., Lexington Co.; Kevin Ryan, Georgetown Co.; Ronnie Sabb, Williamsburg Co.; Eddie Tallon, Spartanburg Co.; Bill Taylor, Aiken Co.; Anne Johnston Thayer, Anderson Co.; David Tribble, Jr., Laurens Co.

Freshmen members of the U.S. House of Representatives:Tim Scott , First District (Berkeley, Charleston, Dorchester, Georgetown and Horry counties); Jeff Duncan, Third District (Abbeville, Aiken, Anderson, Edgefi eld, Greenwood, Laurens, McCormick, Oconee, Pickens and Saluda counties); Trey Gowdy, Fourth District (Greenville, Laurens, Spartanburg and Union counties); Mick Mulvaney, Fifth District (Cherokee, Chester, Chesterfi eld, Darlington, Dillon, Fairfi eld, Florence, Kershaw, Lancaster, Lee, Marlboro, Newberry, Sumter and York counties)

2010 Scholarship Recipients AnnouncedEducation Fund trustees proudly awarded $19,500 in named scholarships to 20 accounting students at the 2010 Annual CPA Summit in Columbia. Congratulations to all! Staff contact: Glenna Minor

Emily Azzara - USC, UpstateRay Waters Scholarship, $1500

Brett Barton - Clemson University2010 Graduate Student of the Year, $2000

Patrick Beasley - Winthrop UniversityBurch Oxner Scholarship, $500

Laura Causey - USC, ColumbiaSCACPA Central Chapter Scholarship, $2500

Matt hew Cason Collier - The CitadelRobinson Grant Scholarship, $500

April Cook - SC State UniversitySheheen Hancock Scholarship, $500

Michael Depp - USC, UpstateSCACPA Scholarship, $500

Allison Dobbs - USC, ColumbiaEdgar Vaughn Scholarship, $500

Ian Ferguson - Bob Jones UniversitySCACPA Piedmont Chapter Scholarship, $1000

Zakkary Hill - College of CharlestonKaye Carter Scholarship, $1500

Charlton Jacobs - Winthrop UniversitySCACPA Sea Island Chapter Scholarship, $500

Maggie Lin - USC, ColumbiaWebsterRogers LLP Scholarship, $500

Anna Millwood - Limestone CollegeBurkett Burkett Burkett Scholarship, $500

Danielle Richards - USC, ColumbiaGlobal Tax Services, Inc. Scholarship, $500

Eric Rogers - USC, ColumbiaC.C. McGregor Scholarship, $500

Laurin Rogers - USC, ColumbiaJoe Jackson Scholarship, $2500

Corey Swaim - Furman UniversityLollie Harper Scholarship, $1000

Britt any Washington - USC, ColumbiaSCACPA Coastal Chapter Scholarship, $500

Delbert White - College of CharlestonPast Presidents Scholarship, $1500

Nichole Woodard - College of CharlestonBrigman Holcomb Weeks Scholarship, $500

New Central Chapter Scholarship Announced

2011-2012 Scholarship ApplicationsThe Central Chapter of SCACPA recently announced a second endowed $2500 scholarship for graduate students who meet the following criteria:

• SC resident• Att ending a South Carolina college or university• GPA of no less than 3.25 overall (on a 4.0 scale)• GPA in accounting no less than 3.5 (on a 4.0 scale)

Central Chapter members already support a similar scholarship for rising junior or senior accounting majors who meet the same criteria. These and other 2011-2012 scholarship applications are now available at www.scacpa.org/scholarships. The deadline to apply is June 1, 2011.


SOUTH CAROLINA ASSOCIATION OF CPAs

570 Chris Drive, West Columbia, South Carolina 29169

(803) 791-4181 or Toll-free (888) 557-4814

Fax (803) 791-4196 | www.SCACPA.org

OUR MISSIONTo support all CPAs – whether in public practice, industry,

government or education – with lifelong learning

opportunities necessary for their success and to promote high

ethical standards and legislative advocacy for both the public

good and the profession. We accomplish this mission through

the following activities:

Advocacy

Certifi cation &

Licensing

Communications

SCACPA STAFFErin P. Hardwick, CAE, Executive Director

Ext. 104, [email protected]

Reva E. Brennan, MPA, CAE, IOM, Associate Director


Karen M. Hancock, CPA, Finance Director


Glenna P. Minor, Peer Review & Member Services Manager


April C. Cox, Education Manager


Emily M. Allen, Communications Coordinator


Sandra P. Oxner, CMP, CMMM, Chapter & Member

Events Coordinator


April Blake, Offi ce and Member Services Coordinator


Recruiting & Education

Standards &

Performance

2011 Dues RenewalTrusted resources, quality CPE, legislative advocacy, peer review and statewide networking with like-minded professionals—SCACPA provides all this and more, but not without your involvement and support. By renewing your membership, you enable us to do what we do best so that you can do the same. Working together, we’ll all be more successful. Dues renewal is quick and easy at www.scacpa.org. Just log in to your account, go to “My Membership” and click “Renew” to pay dues for yourself or an entire fi rm or company. We look forward to partnering with you again this year! Staff contacts: April Blake, Karen Hancock

SAVE THE DATE! CPA Day at the State House

Wednesday, May 4, 2011A vital but often unnoticed benefi t of membership is SCACPA’s never-ending work to advocate for you and for the profession at the state legislature. Your involvement gives our eff orts more impact. Make plans now to participate in the sixth annual CPA Day at the State House event on Wednesday, May 4 in Columbia. The day’s agenda provides opportunities to learn about current state legislative issues and how to communicate eff ectively with your legislator during a two-hour CPE; connect with other CPAs who also value the important role we play in the political process; and visit with your local legislator and invite them to join our group for lunch that day. Visit www.scacpa.org/cpaday2011 for more information. Staff contact: Erin Hardwick

2010 South Carolina Women to Watch Four CPAs recently received the Women to Watch Award, co-sponsored by SCACPA and the Women’s Initiatives Executive Committ ee of the AICPA. The program highlights the accomplishments of women in the CPA profession in two categories: Experienced Leaders and Emerging Leaders. Recipients were honored at SCACPA’s Women in Leadership Conference in October, hosted by then-President Eddie Brown and Executive Director Erin Hardwick. SCACPA is proud to congratulate our 2010 South Carolina Women to Watch! Visit www.scacpa.org/Women2Watch for more information. Staff contact: Reva Brennan

EXPERIENCED LEADERS:Susan M. Douglas, CPAVice President of FinanceTerminix Service, Inc.

Tricia Wilson, CPA, ABV, CDFA, CVA Member-in-ChargeDixon Hughes, PLLC

EMERGING LEADERS:Deborah S. McDonough, CPASenior ManagerElliott Davis, LLC

Sarah L. Windham, CPASenior Tax ManagerDixon Hughes, PLLC


On Your Behalf Fourth Quarter Report

For the profession, by the profession—that’s what the South Carolina Association of CPAs is

all about. SCACPA’s board of directors, committees and task forces and Young CPAs Leadership

Cabinet are hard at work making decisions, providing guidance and embarking on projects and

programs that strengthen the profession and enable members to improve their knowledge,

network and technical skills. South C

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SCACPA Board of Directors The SCACPA board of directors met October 29, 2010 in Columbia. During the meeting the chairman of our Member Benefi ts Committ ee reported on the status of SCACPA’s long-held medical insurance plan. Over time, market forces have had an adverse eff ect on the plan and as a result plan participants faced hefty premium increases for 2011. It is feasible that the plan may cease to exist by 2012.

“We served an important segment of our membership by providing group health insurance for more than a decade,” said President Tim Baker. “The premium rates for this plan are no longer competitive and as such many members can fi nd more aff ordable coverage elsewhere. We truly regret any hardship this has placed on members in the program, particularly the sole proprietors.”

Select Highlights: Committ ee and Other Activities New, diff erent or unusual outcomes from committ ees in 2010

Accounting Educators held Web-based committ ee meetings to plan the Accounting Educators Forum

Awards adopted a new scoring methodology for choosing among the many quality applications they receive

Continuing Professional Education created and off ered two new conferences, each which was well-att ended—the Nonprofi t Conference, held in partnership with the S.C. Association of Nonprofi t Organizations, and the Women in Leadership and Awards Recognition Conference

Corporate Sustainability off ered 10 presentations statewide as a primer and was featured in the 3Q issue of The South Carolina CPA Report

CPA Day at the State House hosted a luncheon for over 500 CPAs, state legislators and their staff on the State House grounds

CPA Summit held a second annual event off ering participants a menu of 24 diff erent sessions and 16 hours of CPE

Editorial Board produced fi rst-ever issue of the CPA Report magazine with 100 percent locally-generated content

Education Fund awarded $19,500 in scholarships to 20 accounting students from a more diverse group of schools than ever before—six of the 20 recipients were Grad students, and one was earning his second degree

Financial Literacy launched its Project GED program—connecting CPAs with local GED classes to present on savings, credit and other important fi nancial basics and reaching some 360 students in four counties

Attending the fall 2010 meeting of CPA SEA’s leadership conference are Barry

Melancon, CEO of AICPA, Tim Baker, then president-elect of SCACPA, Erin Hardwick,

executive director of SCACPA and Greg Anton of Colorado, AICPA board chair-elect


Legislative/Advocacy testifi ed before and monitored work of the state Tax Realignment Commission, facilitated the passage of stand-alone tax conformity legislation in March 2010, and led eff orts to support legislation which would have garnered operational independence for the state Board of Accountancy

Managing Partners hosted AICPA Chairman Paul Stahlin for an interactive breakfast meeting att ended by 30 managing partners from across the state

Political Action Committ ee contributed $37,000 to 55 candidates for state offi ce on behalf of the CPA profession in South Carolina

Professional Issues Updates hosted 820 CPAs with nine events and four webcasts

Technical Standards planned the most well-att ended Accounting and Auditing Conference SCACPA has held thus far, with some 230 CPAs att ending

Young CPAs Cabinet planned its fi rst full year of programming to include its inaugural Emerging Leaders Conference

For information on the board of directors or

legislative activity, contact Erin P. Hardwick,

CAE, [email protected].

Erin P. Hardwick, CAE has

served as SCACPA’s executive

director since 2005. She

has more than 25 years of

experience in association and

non-profi t executive leadership

and is one of 18 Certifi ed

Association Executives in South

Carolina, the highest credential

in the association management profession. She

currently serves on the SC Secretary of State’s Nonprofi t

Advisory Council, and the SC Council on Economic

Education Board of Directors.

William F. Bodie, CPA William F. Bodie, CPA Lugoff , SC

K. Brodie Brigman Jr., CPAAnderson, SC

Joseph D. Cordray Jr., CPAJ. D. Cordray, Jr., CPA Charleston, SC

George L. Counts Jr., CPAGreenville, SC

Larry D. French, CPA Larry D. French, CPA Rock Hill, SC

Milton E. Futch Sr., CPAStatesboro, GA

Robert C. Gallager, CPA, MBASummerville, SC

Ronnie M. Givens, CPA Dixon Hughes, PLLC Charleston, SC

Jackie D. Highley, CPA Porter & Highley, CPA Greenville, SC

W. Herbert Hucks, CPA W. Herbert Hucks, CPA Surfside Beach, SC

John M. Jeff coat, CPAOrangeburg, SC

Channing S. Joye, CPA M-J-M Management Company, IncColumbia, SC

Jerry L. Killen, CPAKillen & Associates, CPAs, PA Charleston, SC

Ronald E. Millard, CPA Millard & Moore, CPA, PA Greenville, SC

Charles A. Montgomery, CPA Montgomery & Yarbrough CPAs PARock Hill, SC

B. Frank Munn, CPA Columbia, SC

Pete C. Redmond, CPA Irmo, SC

Philip O. Riley, CPA, MBA Charleston, SC

William C. Robinson, CPA Robinson Grant & Company, PA Beaufort, SC

John H. Robuck, CPA Roebuck, SC

G. Bruce Thomas, CPA Columbia, SC

Rupert L. Thompson Jr., CPA, MBA, ChFC

Columbia, SC

SCACPA is pleased to recognize the following individuals for their dedication and service to the CPA profession. Lifetime members are given complimentary SCACPA membership dues upon 30 years of membership and age of 68 or older.

SCACPA i lea ed to e oo i e the follo i i di idual fo thei

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Jackie D. Highley, CPAPorter & Highley, CPAGreenville, SC

W. HHererbbert HHucucksk , CPAWW. Hererbertt Hucksks, CPASuSurffsisidede B Beaacch, SC

John M. JeJeff coatat, CPAOrOrangeburg, SC

p yBeaufort, SC

John H. Robuck, CPARoebuck, SC

GG. B Bruuce Thoommas, CCPAPA Coluumbia, SC

RuRupepertrt LL. ThThomompson Jr., CPCPA, MBMBA,A CChFhFC

CoColumbm ia, SCS


JASON M. BLUMER, CPA, CITP, CFE

Chief Innovation Offi cer

Blumer & Associates CPAs, PCSCACPA member since 1999

A second generation CPA

and one of the top 40 Under

40 CPAs in the nation (as

named by The CPA Technology

Advisor), Jason Blumer has

transformed his father’s busi-

ness into a “next-generation

CPA fi rm focused on serving

clients locally and globally, with a heavy use of cloud-

based services for the younger generations.” With a

staff of fi ve—including his wife, Jennifer, who provides

administrative support—Jason has created a paperless,

social media-savvy fi rm with clients worldwide.

SCACPA: You recently launched the Thriveal +CPA Network. What is it, what does the name mean, and what do you hope to accomplish? Blumer: We’re committ ed to helping young CPAs thrive as they move into fi rm ownership. Thriveal is a made-up word and rhymes with “survival.” It’s the antithesis to survival. Younger gener-ations are interested in four foundational areas of growth: community, collabora-tion, technology and innovation. These are the tenets upon which the Thriveal +CPA Network is based. They’re ready to spend time together, sharpen one an-other and build a new type of fi rm based on an expertise in cloud technology and innovating new services for a new gen-

eration of clients. We simply created a place where new generation CPAs from around the world can come together and fi nd what they’re looking for—when we released the initial press release, the web traffi c shut down our site! In 2011 we’ll be growing the membership base, imple-menting six Community Calls (a benefi t of membership) and starting a 12-week online coaching course in July. Addi-tional membership levels will be added toward the end of this year or the begin-ning of next. (Editor’s note: Interested in joining? Visit htt p://thriveal.com.)

SCACPA: What are some of your top picks for existing or emerging capabili-ties and processes for next generation CPAs? Blumer: As a profession, we aren’t used to creating new services that don’t cur-rently exist. We don’t know how to do things diff erently—we just do whatever we were taught to do. Innovation is what new generation clients demand of us. We can’t just peddle what we’ve always sold (e.g., monthly compila-tions that don’t add value). Firms that can’t deploy cloud technologies will be left behind and become obsolete. With the cloud, fi rms can become the new “effi ciency consulting experts” to bring major changes and paperless processes to their clients. This stuff can change their life. CPAs must become students of the cloud and stay current on changes to continually add value. We are closest to

the business process within our client’s businesses, so we must become experts at making it bett er. I’m not here to tell anyone how they need to do things—my goal is to challenge people to question their processes and methods to make sure they’ll remain relevant over the next fi ve years.

SCACPA: For those still taking baby steps towards new technologies and business practices, share a few simple steps to start implementing a transi-tional plan. Blumer: First, become a member of the Thriveal +CPA Network, where we’ll continually push these tools and new consulting techniques—it’s free to join! Second, go paperless and heavily use cloud in your own fi rm (e.g., work towards gett ing rid of your server). Feel your way through implementing these new technologies and observe how they aff ect your staff and internal processes before deploying this stuff to your cli-ents. Third, we often teach fi rms to stair-step their way to the clouds. Choose specifi c processes that can be moved,

by Al l i son Caldwel l

Using the tired cliché “think outside the box” to describe a product or service is usually the fi rst sign that you actually need to do so. Everything and everyone simply cannot be engaging, inspiring and meaningful all the time—especially in the world of accounting.

Or can they? As the world shrinks and our spheres of infl uence continue to grow with changing technologies, “traditional” public practices that once dominated the CPA landscape are being replaced by forward-thinking fi rm structures, valuable industry professionals and inspiring educators serving their clients, students and communities in creative new ways. Following are interviews with four such members leading the way into the future of the profession.

Breaking Tradition: CPAs of the Future

“We don’t know how to do things

diff erently—we just do whatever

we were taught to do. Innovation

is what new generation clients

demand of us.”


then work your new internal processes around this move. Moving your docu-ment management system to the clouds is often a good place to start. As you and your staff become adept at this process, move something else. It may take a few years, but continue this process until you are virtual. Then you can become competitive globally and start adding real value to your clients’ businesses.

ANNE H. POAG, CPA, CGFO

Chief Financial Offi cer/Municipal Clerk

City of Rock HillSCACPA member since 1990

As a CPA in industry, Anne Poag

is committed to using her knowl-

edge and expertise not only in

projects she manages as CFO of

the City of Rock Hill, but also to

benefi t fellow employees and

citizens in the area of fi nancial

literacy. With inspiring stories like

one employee who crawled out of payday loans and is re-

establishing good credit to another who benefi ted from a

$1,000 emergency fund when her husband was diagnosed

with cancer, Anne is impacting the fi nancial success of

generations to come.

SCACPA: What skills and duties does your “day job” entail, and how does your CPA designation add value to your work? Poag: I’ve worked for the City of Rock Hill for fi ve and a half years and was promoted to Chief Financial Offi cer in November 2010. At age 27, I was hired as York County Finance Direc-tor and served in that position for 14 years prior to joining the City. Several County Council members stated that my CPA designation gave them a higher level of confi dence when deciding to choose me—a younger, less experienced candidate—over an older candidate without a CPA license. Although histori-cally not prevalent in local governmental accounting positions, more governments

are seeing the value in hiring CPAs, and more CPAs seem to be pursu-ing governmental accounting careers. My responsibilities include long-term fi nancial planning, fi nancial oversight and personnel management. My ac-counting background prepared me well for the challenges of my current posi-tion. I work for a progressive city that values the fi nance department as a key component in all decisions, and I take great pride in helping make decisions that will impact future generations—such as adding a street crimes unit in the police department or determining when a new fi re station is needed and how to equip, staff and fund it. I also supervise divisions which include Accounting, Archives, Risk Management, Utility Bill-ing, Collection and Customer Services, and work on many major projects and the debt fi nancing that goes along with them. When pulling together fi nancing arrangements with people across the country, a CPA designation adds a level of expertise, integrity and credibility which ensures good contract terms and interest rates.

SCACPA: We mentioned your pas-sion for sharing fi nancial literacy in the workplace. What has been the reaction from your employer, citizens or outside sources on the work you’re doing in this area? Poag: Government fi nance is defi nitely a thankless job, but most government leaders recognize the value and impor-tance of having well qualifi ed employees in the fi nance area. The biggest recogni-tion I’ve received from my employer is the recent promotion to CFO. I occasion-ally get e-mails from citizens expressing appreciation or kind comments from people in public. But in general, many citizens just don’t trust or appreciate the government. As government employees, we must desire excellence from a per-sonal commitment to public service. In 2010, Rock Hill received an Honorable Mention from the National Government Finance Offi cers Association’s Awards

for Excellence in Government Finance for the fi nancing plan to fund our municipal WiFi system. As part of that award, I wrote an article that appeared in the August 2010 issue of Government Finance Review.

SCACPA: How would you advise other members—particularly in industry—about using their CPA knowledge and expertise to make a diff erence in their own workplace or communities? Why is it important for the profession at large to continue providing this kind of support? Poag: In addition to my traditional duties, I periodically provide fi nancial training for City of Rock Hill employ-ees. I’ve covered topics such as payday lending, the cost of credit, home owner-ship, prioritizing needs over wants, how to improve your credit score, etc. I’m motivated by my own personal experi-ences as a single mom and as a supervi-sor, and have found that a less-stressed workforce is a more productive work-force! Diff erent people have diff erent gifts. Volunteering for various commu-nity and professional groups allows us to step out of the accounting role and participate on a team to reach a goal. I’d like to encourage CPAs to consider an accounting career in government. While the pay scales are usually lower, the hours are bett er and I can’t put a price tag on the value of doing something diff erent every day. I really feel that I’m making a diff erence in my community.

“Several County Council members

stated that my CPA designation

gave them a higher level of

confi dence when deciding to choose

me—a younger, less experienced

candidate—over an older

candidate without a CPA license.”


DR. CLARENCE COLEMAN, JR., CPA

Professor of Accounting

Winthrop UniversitySCACPA member since 1979

With experience in a big four

fi rm, a smaller fi rm and as

CEO of a community health

center—not to mention an

MBA in Finance and a Ph.D. in

Accounting—Clarence Cole-

man is now a professor with a

purpose at Winthrop University,

sharing his accounting knowledge and understanding

of other cultures with his own students as well as with

business executives and students around the world. He

currently serves on the SCACPA Board.

SCACPA: How did you fi rst become involved with international work? How do these experiences aff ect your students as future members of the profession, and how have they changed your own focus or approach to what you do?Coleman: Through Winthrop’s Inter-national Field Experience program for graduate students, I’ve had the privilege of teaching business executives in Roma-nia, teaching intermediate accounting to Chinese students at Nantong University, and accompanying MBA students on trips to Poland, the Czech Republic and East Germany. The goal is for students to understand and appreciate other cultures and to learn the value and chal-lenges of working in a global environ-ment. Even some small companies today are involved in foreign sales. When I visit other countries, I’m bett er equipped on how to interact with people in those cultures by learning the dos and don’ts

of doing business there. It’s an edge I bring to my students as we discuss moving towards the adoption of interna-tional accounting standards and certain benefi ts and risks based on diff erent cultures. I also believe it’s important to inform these developing free market economies of the critical role accounting plays in allocating scarce resources in capital markets.

SCACPA: Here at home or abroad, how would you advise other members on us-ing their CPA knowledge and expertise to make a diff erence in their own circles of infl uence? What are some opportuni-ties available that others might not know about? Coleman: I think former SCACPA presi-dent Eddie Brown is a good example of the demand—he’s engaged in interna-tional tax out of Spartanburg. If there’s a need for someone with his knowledge in the small state of South Carolina, that’s an incentive for others to explore global opportunities and consider a career in international taxation. These countries know that we have the best economic system in the world, and there’s a thirst to replicate what we do to improve their own standards of living. China and other countries are starting to invest more and more money here. As that continues, CPAs need to be aware of how to advise their clients with inter-national relationships. Before a CPA in S.C. engages a CPA in China to work on a Chinese subsidiary, it would be well worth their while to go there for a clear-er understanding of international and GAAP standards so they can really com-municate with that company rather than operating on a referral. I also think it’s wise for CPAs to look beyond account-ing services to understanding intellec-tual property rights for any product or service that could be easily duplicated—many countries don’t understand or recognize intellectual property. At one time these issues only concerned large businesses, but today a small company

with just 10 employees could be compet-ing with a global competitor.

H. KYLE ANDERSON, CMA, CPA

Professor of Accounting

Anderson UniversitySCACPA member since 1986

Kyle Anderson has found success

following multiple career paths,

from public practice to education

to CPE seminar presentations.

Specializing in taxation and

consulting, he has more than

20 years of experience in public

accounting and is in his 20th

year of teaching at the University level. Kyle uses creative,

interactive technologies to teach students and fellow CPAs

alike. He currently serves as Chair of SCACPA’s Accounting

Careers/Academic Relations Task Force and is a past presi-

dent of the SC Association of Accounting Educators.

SCACPA: How long have you been a professor at Anderson, and what made you choose the education fi eld? Anderson: I fi rst entered higher edu-cation in 1985 as an instructor at Fur-man University after graduating from Clemson with a Masters in Professional Accountancy. I quickly learned that I didn’t know much about “real” account-ing, and soon entered public practice to get my CPA certifi cate. The plan was to practice for two to four years and then return to education. That journey continues today as I juggle dual careers in academics and public accounting. I joined Anderson University in 1997 after fi ve years at Erskine College. At that time, I ran a tax and consulting practice and was also involved in developing real estate in the Anderson area. I chose the education fi eld because I’ve always enjoyed helping others accomplish their goals. In addition to teaching, my wife Lani and I have built a successful tax, real estate and CPE seminar business.

“China and other countries are

starting to invest more and more

money here. As that continues, CPAs

need to be aware of how to advise

their clients with international

relationships.”

Page 34

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In October 2010, members of SCACPA’s Taxation and State and Local Taxation task forces met with

representatives of the Internal Revenue Service (IRS) and the South Carolina Department of Revenue (DOR) for the annual meeting to discuss practitioners’ concerns and updates on the two agencies. As usual, these meetings proved to be very informative and helpful. The following is a summary of the meetings.

INTERNAL REVENUE SERVICE

The Taxpayer Advocate offi ce in South Carolina works primarily with two types of issues: individual cases and systemic improvement (SAMS). SAMS issues should be reported to the Advocates offi ce on the IRS website. There are currently 12 employees in South Carolina. This group has an average caseload of 500 cases. Congressional and hardship cases stay in South Carolina. The Taxpayer Advocate offi ce does not have the authority to make adjustments. Their role is to work with the taxpayers and their advisors to resolve issues with the IRS that have not been resolved through the normal course of action.

The Examination Section – Field Audits have revised notifi cation lett ers that include a link to “Your Guide to an IRS Audit.” The revenue agent is supposed to set a mutual date of resolution at the fi rst appointment. If there is a communication issue with the revenue agent, the group manager should be contacted. They are continuing to look at S corporations, specifi cally reasonable compensation issues and employee classifi cation. The National Research Program is looking at many issues, specifi cally high net worth taxpayers, non-fi lers and earned income credit issues.

The Examination Section – Offi ce Audits is looking at Schedule C’s and questionable return preparers. The intent is to issue a report at the fi rst appointment if all requested information is provided. If a taxpayer receives a notice for an offi ce audit, a request can be made to move the audit to a fi eld audit. IRS agents are working with transcripts rather than copies of the return. Tax practitioners should take a copy of the return to the audit. It’s possible that information supplied when the return was fi led is not available to the agent, so it’s advisable to call the agent prior to the scheduled appointment and see if the information can be sent to them. This may resolve the issues and avoid the offi ce audit. Communication with the agent is very important.

The Appeals offi ce is experiencing increased inventories as well. Remember, they are an independent group and only talk with the revenue offi cer when the practitioner is on the phone. Most cases handled by appeals are worked on at the campus level. A lett er can be sent to the campus appeals offi cer requesting a transfer to the local appeals offi ce for a face to face meeting. It was suggested that practitioners try a face to face meeting with the local offi ce to see if issues can be resolved before going to appeals. Any such request must be in writing. They also recommended that whenever you have phone contact with an IRS representative, make certain to get their name (fi rst and last), ID number and location.

In the Criminal Investigation Section, they are currently dealing with refund crimes resulting from illegals fi ling false returns and claiming credit for children they don’t have. Many of these returns are being fi led from foreign countries. They are also working on return preparer issues related to current years and the two prior years.

The IRS is currently working to strengthen the Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) in South Carolina. They are in need of volunteers to train the volunteer preparers on a very basic level—training materials are provided. If you’re

by Steven E . M i l ler, CPAS C AC PA m e m b e r s i n ce 2 0 0 5

IRS-DOR Annual Meeting Summary

“We feel that these are valuable

meetings that allow these agencies

and the practitioner community an

opportunity to share concerns and

information that facilitate a better

working relationship.”

TAX FEATURETAX FEATURE


SC Depar tment o f Revenue

interested, contact Joyce Robins at (803) 765-5416 or [email protected].

Practitioner Liaison Tom Sheaff er discussed their role in maintaining partnerships with organizations and associations to disseminate information to taxpayers and small business owners through seminars and other methods. They also are responsible for gathering feedback from practitioners that can be used to improve communication with the IRS. The new PTIN registration regulations were discussed, and the new Circular 230 regulations should soon be fi nal. Contact Tom at (803) 253-3031 or thomas.a.sheaff [email protected].

NOTE: The IRS also emphasized that they will not make contact by email.

SOUTH CAROLINA DEPARTMENT OF REVENUE The Individual Income Tax Form (SC1040) has been redesigned this year. When a paper return is fi led, a Form 1040-V should be sent in with the payment and the tax return.

Sales tax booklets will no longer be mailed to taxpayers. Taxpayers should have received a lett er in November alerting them to this change and will receive a CD in January if they have not previously fi led electronically.

Payroll forms will no longer be mailed. Taxpayers should have been notifi ed in November that quarterly forms will need to be fi led electronically. Withholding amounts will need to be deposited with the SCDOR through the E-Withholding system.

When Form SC2848 Power of Att orney is fi led—unlike the federal power of att orney, only the taxpayer will receive notices. The representative will not receive notices.

The SCDOR does not confi rm in writing that matt ers are resolved. If requested, this information can be emailed.

Partnership returns still cannot be fi led electronically in South Carolina.

The DOR is in the process of updating their website. They are working on a new search engine. They would like feedback on possible enhancements. Suggestions can be submitt ed to [email protected].

Corporate fi le numbers can be obtained by practitioners via e-mail from the DOR.

There are several tax manuals published online. These can be found on the DOR website in the Department Advisory Opinion Section.

The DOR does not have a separate appeals department—Collections and Audit handle these issues. Once a taxpayer receives a notice of adjustment, they have 90 days to appeal. Wage garnishments are sent out on paper notices. In the case of bank levies, two in-person contacts are att empted before the levy is issued.

Taxpayer Advocate Jean Funches can be reached at (803) 898-5444.

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SUMMARY The task forces appreciate the cooperation we received from the IRS and the DOR. We feel that these are valuable meetings that allow these agencies and the practitioner community an opportunity to share concerns and information that facilitate a bett er working relationship. We will be asking for input from our membership again this summer in anticipation of these meetings in the fall.

Steven E. Miller, CPA is a

partner with Cherry, Bekaert

& Holland LLP in Bluff ton and

former chair of the SCACPA

Taxation Task Force.


I recently had the pleasure of repre-senting SCACPA at the IRS Track of the AICPA National Tax Conference

in Washington, DC. Representatives from each state had the opportunity to hear and interact with Douglas Shul-man, Commissioner of the IRS, as well as the leaders of the various IRS operating divisions. One of the most interesting statements was made by Commissioner Shulman during his luncheon presentation, while discussing the return preparer initiative.

“It is highly likely that as we implement the new rules and procedures, there will be some relief for testing and continuing education requirements,” said Shulman, speaking about non-signing preparers supervised by a CPA, enrolled agent or att orney. Shulman also expects the re-turn preparer initiative to increase com-pliance by ensuring a minimum level of competency for preparers. The program should help the service analyze trends, spot anomalies, and identify fraud.

Another topic discussed in several ses-sions was the systemic problems within the service, such as the backlog of cases and lack of improvements to tools such as the e-services area for tax profession-als. Recurring themes mentioned by IRS representatives were the lack of resourc-es and the inexperience of IRS employ-ees, since many have been with the service for only a few years. My sum-mation of the situation is that things very well may get worse before they get bett er. The magnitude of the problem is supported by the fact that Nina Olson, National Taxpayer Advocate, stated

that her division has had more cases this year than ever before.

Faris Fink, Deputy Commissioner of the Small Business/Self-Employed Division, said that this division’s areas of emphasis this year will include high income/high wealth taxpayers with income greater than one million, espe-cially those with a Schedule C. Another area which will be emphasized is fl ow-through entities, since these entities have a great potential for abuse. He also stated that the national research pro-gram would be selecting approximately 13,000 returns to audit to help the ser-vice determine which returns are best to audit. This research program would also include audits of some employment tax returns.

Another area Fink discussed was the fact that Small Business/Self-Employed Division would be handling approxi-mately 2,500 visits to preparers under the return preparer compliance initia-tive. These visits will take place between December 1, 2010 and April 30, 2011, with education and addressing prob-lems as the primary focus.

David Williams, Director of the Offi ce of Electronic Tax Administration, gave an update on the new requirement (ef-fective January 1, 2011) for tax return preparers who prepare 100 or more individual or trust returns to fi le them electronically. He also reminded us that the threshold for 2012 is 11 returns. Additional guidance on exemptions, waivers and taxpayer opt-outs is in development.

by Char les M. Ayers, CPAS C AC PA m e m b e r s i n ce 1 9 8 8

Federal Tax Conference Wrap-UpFederal Tax Conference Wrap-Up

The last speaker of the day was Nina Olson, National Taxpayer Advocate. Her emphasis for the coming year is to encourage her employees to push the advocacy role, including training em-ployees on how to think like an advo-cate. Other areas she addressed included the service’s zealousness in placing liens when it did harm to the taxpayer and off ered litt le to no potential benefi t to the government. Olson also discussed the problems with automated correspon-dence exams, stating that her offi ce is currently participating in a study related to the eff ectiveness on many of the cor-respondence exam procedures.

This annual meeting with the IRS lead-ers and CPAs from across the country allowed these two groups to have posi-tive interaction, with IRS representatives sharing what is happening at the service and CPAs giving feedback on problems we see on a daily basis.

Charles M. Ayers is employed

with McDowell-Pearman,

LLC in Columbia, SC. His area

of practice includes taxation

of both individuals and

businesses as well as small

business consulting. Charles

currently serves as chairman

of SCACPA’s Taxation Task Force and has also served on

the Information Technology Committee. He is a past

recipient of the President’s Award for Outstanding

Service to the Association.



The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010

(TRUJCA) that passed in mid-December is an extensive tax package. Following is a brief summary of some of the main items of this far-reaching bill for both income tax and estate tax.

INCOME TAX

INCOME TAXTRUJCA extends the lower Bush income tax rates for everyone. Under the new law, the rates that have been in eff ect in recent years will remain in place but for only two years (i.e., through 2012).

Since 2008, the tax rate on most long-term capital gains has been zero percent for individuals in the 10 and 15 percent income tax brackets, and 15 percent for everyone else. However, those rates were scheduled to expire at the end of 2010 with 2011 tax rates rising to 10 and 20 percent respectively. The new legislation forestalls these increases by extending the zero and 15 percent long-term capital gains tax rates for two years (i.e., through 2012). Since 2003, “qualifi ed dividends” have been taxed at the same low tax rates that apply to long-term capital gains (zero and 15 percent). If Congress had not acted, beginning in 2011 taxes on dividends would have returned to the rates that were in eff ect before 2001 and all dividend income would have been taxed as ordinary income. The new legislation continues the current tax

regime in eff ect for qualifi ed dividends (i.e., treatment as long-term capital gains for two years through 2012).

SOCIAL SECURITY TAX BREAK The employee’s share of the Social Security payroll tax—the 6.2 percent tax on the fi rst $106,800 of wages—will be lowered to 4.2 percent in 2011 only. For an individual with wages of $60,000, that amounts to a $1,200 savings and even more for those up to $106,800 wage base. The employer’s share is not aff ected and will stay at the 6.2 percent rate. Self-employed workers will also get the tax break. Their self-employment taxes will be cut from 12.4 to 10.4 percent.

Unlike the 2009 and 2010 Making Work Pay tax credit, there is no phase out of the payroll tax reduction for higher income workers. The break will go to everyone who works, regardless of income.

AMT RELIEFA two-year AMT “patch” for 2010 and 2011 provides a modest increase in AMT exemption amounts and allows personal nonrefundable credits to off set AMT as well as regular tax. Under the new law, for tax years beginning in 2010, the AMT exemption amounts are increased to:

(1) $72,450 in the case of married individuals fi ling a joint return;

(2) $47,450 in the case of unmarried individuals; and

(3) $36,225 in the case of married individuals fi ling a separate return.

For tax years beginning in 2011, the AMT exemption amounts are increased to:

(1) $74,450 in the case of married individuals fi ling a joint return;

(2) $48,450 in the case of unmarried individuals; and

(3) $37,225 in the case of married individuals fi ling a separate return.

Personal credits (i.e., dependent care, elderly and disabled) may also be used to off set AMT through 2011.

OTHER INCOME TAX PROVISIONSKey tax credits for working families that were enacted or expanded in the American Recovery and Reinvestment Act of 2009 will be retained. The law extends the $1,000 child tax credit, maintains its expanded refundability and extends the higher education tax credit (the American Opportunity tax credit) and its partial refundability for two years.

Businesses can write off 100 percent of their new equipment and machinery purchases, eff ective for property

TRUJCA: An Overviewby Nei l A . Brown, CPA, MAcc, CFP® , SCACPA member s ince 1994and Jennifer R . M acLeod, J .D. LL .M

Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010

“Unlike the 2009 and 2010

Making Work Pay tax credit, there

is no phase out of the payroll

tax reduction for higher income

workers.”



placed in service after September 8, 2010 through December 31, 2011. For property placed in service in 2012, the new law provides for 50 percent additional fi rst-year depreciation.

Many of the “traditional” tax extenders are extended for two years through the end of 2011. Among many others, these include the election to take an itemized deduction for state and local general sales taxes in lieu of the itemized deduction for state and local income taxes; the ability to deduct primary mortgage insurance for qualifying taxpayers, above the line education deductions; and the $250 above-the-line deduction for certain expenses of elementary and secondary school teachers.

Also included was an extension of tax-free distributions to charity from an Individual Retirement Account (IRA) of up to $100,000 per qualifying taxpayer, per tax year. Individuals also will be allowed to make charitable transfers during January of 2011 and treat them as if made during 2010.

Omitt ed from the new law was a repeal of a controversial expansion of Form 1099 reporting requirements to take eff ect in 2012, an extension of the Build America Bonds program and the ability of non-itemizers to deduct real estate taxes.

ESTATE AND GIFT TAXES

ESTATE TAX The 2010 Tax Act included an extension of the estate tax for two years with a $5 million exemption per individual. This amount is indexed for infl ation from 2010, beginning in 2012. The rate on any transfers above $5 million will be 35 percent.

The $5 million exemption amount is also portable. To use a simple example: assume Husband dies, leaving his entire estate outright to his Wife. As under previous law, this transfer does not use Husband’s exemption; rather, the transfer will qualify for the unlimited marital deduction. However, unlike previous law, Husband’s exemption is not wasted. Instead, Wife can use Husband’s unused exemption amount to shelter assets from estate tax at her death. Assuming she makes no lifetime gifts, she can shelter up to $10 million from estate tax at her death.

The concept of portability has the potential to greatly simplify the estate planning of many. However, portability has its limitations under the 2010 Tax Act. First, Husband’s estate tax exemption is not indexed for infl ation; instead, it is frozen as of his date of death. If Husband dies this year and Wife lives another 30 years, it is possible that Wife may have an estate tax problem at her death, assuming her assets have grown in excess of $10 million.

Second, only the most recent deceased spouse’s unused exemption may be used by the surviving spouse. Third, portability is only guaranteed by the 2010 Tax Act for the next two years. It is unclear what will happen to Husband’s unused exemption if Wife dies in 2013 or beyond. Also, Husband’s executor must fi le an estate tax return at Husband’s death to elect portability and preserve Husband’s unused exemption.

For all of these reasons, the traditional tax planning approach of using a bypass trust or credit shelter trust at the fi rst death may remain popular, at least until the 2010 Tax Act is further extended or made permanent. In addition, the standard benefi ts of trust planning— including asset protection, management for assets in trust, and restriction of transfer by the surviving spouse— will continue to necessitate the use of trusts in the future.

GIFT TAX Beginning in 2011, the gift tax exemption is the same as the estate tax exemption amount, or $5 million. That amount is indexed for infl ation from 2010, beginning in 2012. The gift tax exemption is also portable between spouses. The rate on non-exempt gifts will be 35 percent.


“For all of these reasons, the traditional tax

planning approach of using a bypass trust or credit

shelter trust at the fi rst death may remain popular,

at least until the 2010 Tax Act is further extended

or made permanent.“

19(888) 557-4814 | www.scacpa.org South Carolina CPA Report

Again, however, portability and the $5 million gift tax exemption are only guaranteed through 2012. Also, it is not entirely clear what eff ect a $5 million gift in 2011 will have on a decedent who dies in 2015, if the 2010 Tax Act is not extended. Because prior taxable gifts are included in calculating a decedent’s taxable estate, there is a possibility of recapture at the decedent’s death.

GENERATION SKIPPING TRANSFER The exemption from the generation skipping transfer (GST) tax will be $5 million for 2011 and 2012, indexed for infl ation beginning in 2012, with a 35 percent rate on any transfers above $5 million. The GST exemption is not portable, so traditional tax planning trusts will continue to be necessary to maximize the use of the GST exemption between spouses.

2010 DEATHSThe 2010 Tax Act retroactively reinstated the estate tax with a $5 million exemption and a 35 percent rate for decedents dying in 2010. The law also provides that a recipient of property from a 2010 decedent’s estate will receive an adjustment in the basis of that asset to fair market value as of the date of decedent’s death.

However, the executor of a 2010 decedent’s estate does have the ability to elect to proceed under the 2010 law as provided by EGTRRA. The executor can choose to have no estate tax levied against the decedent’s estate, rather than having a 35 percent tax on transfers greater than the exempt amount of $5 million. If the executor so elects, the assets in the decedent’s estate will receive a limited basis adjustment of $1.3 million for assets passing to anyone, and an additional $3 million basis adjustment for assets passing in a qualifi ed manner to a surviving spouse. Both basis adjustment amounts may be increased by certain pre-death losses.

In addition, the GST tax was retroactively reinstated for 2010, with a $5 million exemption, but with a zero percent rate. Finally, the gift tax remained in eff ect for 2010 with a $1 million exemption and a 35 percent rate.

While the provisions in this law will have a far reaching eff ect, the above is simply a synopsis of a very important bill. Our goal was to provide a brief overview of this new law. Please consult your own research sources for a much more in-depth view of this act.

Neil A. Brown, MAcc, CPA, CFP is a Certifi ed Financial

Planner® for Burkett Financial Services and a national

instructor for Keir Educational Resources, Surgent McCoy,

the AICPA and Jeff Rattiner’s Financial Planning Express™.

Neil is currently a member of SCACPA’s Editorial Board and

the Personal Financial Planning Committee.

Jennifer Ross MacLeod is a member of the Trusts and

Estates Practice Group at Ellis, Lawhorne and Sims, P.A.

in Columbia with a practice focus in estate planning.

She earned her Bachelor’s of Science in Business

Administration from the University of South Carolina

Honors College; her J.D. from the University of South

Carolina School of Law; and an LL.M. in Taxation with a

Certifi cate in Estate Planning from Georgetown University

Law Center.

Columbia Charlotte Charleston Greenville Raleigh Myrtle Beach

Experience. Service. Results.

mgclaw.com

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South Carolina CPA Report 20 (888) 557-4814 | www.scacpa.orgSouth Carolina CPA Report 20 (888) 557-4814 | www.scacpa.org

At November’s Annual Summit, SCACPA handed out six awards for member achievements in the

profession and their own communities. “We are pleased to honor these CPAs for their outstanding achievements,” said Executive Director Erin P. Hardwick, CAE. “The SCACPA awards program is longstanding, since 1957, and these 2010 recipients join a long list of professionals who exemplify the spirit of volunteerism and service for the greater good.”

The Association’s highest honor and most prestigious award pays tribute to one whose public service, professional conduct, time and eff ort have contributed

signifi cantly to the advancement of the profession. Debra A. Turner, CPA, PFS of WebsterRogers LLP received the 2010 Service to the Profession Award. A member of SCACPA for 30

years, Debra has served as president of the Board of Directors, chairman of the Financial Planning for Disaster Task Force, chairman of the Personal Financial Planning Task Force, and on many other committ ees and task forces. She has also served as chairman of the South Carolina Board of Accountancy and served on the AICPA Council. In her community, she serves in leadership roles for the Coastal Community Foundation Center for Women and the Zonta Club/Zonta Foundation of Charleston.

Given by the current board president in recognition of signifi cant contributions to SCACPA’s goals and objectives, the 2010 President’s Award was collectively presented to the SCACPA Peer Review Committ ee. The Peer Review Committ ee is composed of 15 members who have volunteered numerous hours through the years. The work that this committ ee conducts on behalf of the SC Board of Accountancy is critical to upholding the standards of the accounting profession.

The Young CPA Award honors a young professional who displays exceptional leadership qualities throughout the community, their profession and

SCACPA. Georgett e R. Timmons, CPA with Burroughs and Chapin in Myrtle Beach received the 2010 Young CPA Award. Georgett e graduated Magna Cum Laude from Coastal Carolina University with a Bachelor of Science degree in Accounting and a minor in Spanish. Georgett e began her career as an intern at Burroughs and Chapin, moved to Rolls-Royce Corporation as a fi nance intern and is currently an Accounting Manager at Burroughs and Chapin. She is actively involved with the SCACPA Young CPAs Leadership Cabinet and various community organizations including Kiwanis Club of Myrtle Beach and Beta Alpha Psi Accounting Honor Society.

2010 Member Award RecipientsCompiled by Emi ly Al lenS e r v i n g S C AC PA s i n ce 2 0 0 9

Peer Review Committee

Matthew A. Brown, C.

Thomas DeWitt, Thomas

E. Fitzsimmons, Dennis L.

Gore, Carol S. Hubbard,

Karen A. Hursey, Gary J.

Johnson, Robert P. Jordan,

Christina R. Kelly, Susan

B. McCracken, Howard M.

Nichols, Terry K. Schmoyer

Jr., Randy L. Skinner Sr.,

James M. Stewart Jr.,

Randolph B. Thomas

SSSoouutthh CCaarroollliiiinnnaa


The mark of a true professional is devotion to the public good. An outward indication is the many hours South Carolina CPAs give to their communities over

and above their working hours. Each year, SCACPA recognizes a member who has reached high achievement in public service and made signifi cant contributions to their local community. Ronald H. Burkett , CPA of Burkett , Burkett & Burkett , CPA, PA received the 2010 Public Service Award. As President of Burkett , Burkett & Burkett , CPA, PA, Ronny demonstrates leadership and innovation as a Former Chair of the Midlands Technical College Board of Commissioners, Youth Church Educator, Youth Baseball and Soccer Coach, and as a volunteer Boy Scout Troop Leader.

The Outstanding Accounting Educator of the Year Award recognizes a full-time accounting professor distinguished for excellence in the classroom, motivating

students and educational innovation. Ann M. Pletcher, MBA, CMA with Converse College in Spartanburg received the 2010 Outstanding Accounting Educator of the Year Award. Ann began her career in the internal auditing department of Manufacturer’s National Bank of Detroit and moved into managerial accounting while employed with Molex Corporation in Illinois. She began teaching at Converse College in 1984, where she has served on numerous committ ees and positions. An engaging professor who takes a personal interest in helping her students succeed, Ann is also an active member of SCACPA’s Foothills chapter and actively promotes the annual chapter student night.

The Outstanding CPA in Business and Industry Award is based on the nominee’s business achievements, contributions to the growth and

enhancement of the profession and public service involvement. John C. Shell, III, CPA of John Shell Associates, Inc. received the 2010 Outstanding CPA in Business and Industry Award. John earned a Bachelor of Science degree in Accounting from Clemson University and began his career as a Staff Accountant at Price Waterhouse. Currently president of John Shell Associates, Inc., he is actively involved with the Senior Advisory Board of the College of Business and Behavioral Science at Clemson, the Board of Directors of Food for the Soul of Kershaw County, and the Board of Directors of the American Association of Finance and Accounting.

“The SCACPA awards program is longstanding,

since 1957, and these 2010 recipients join a long

list of professionals who exemplify the spirit of

volunteerism and service for the greater good.”

21(888) 557-4814 | www.scacpa.org South Carolina CPA Report

Pictured right: Anna

Millwood received the Burkett

Burkett Burkett CPAs, PA

scholarship.

Pictured far right: Crawford

Clarkson (member since 1948)

and Bob Cooper (member

since 1965) at the Old Guard

Reception.


Compiled by Reva Brennan, MPA, CAE, IOMS e r v i n g S C AC PA s i n ce 2 0 0 1

South CarolinaValuation & Litigation Conference

September 16, 2010 | Columbia, SC

Co-SponsorOptimizing the Accounting Expert

LEVERAGING OPPORTUNITIES

VALUATION & LITIGATION CONFERENCE September 16, 2010 • Columbia

Co-sponsored by the S.C. Bar, the Valuation & Litigation Conference focused on Leveraging Opportuni-ties: Optimizing the Accounting Expert. In complex valuation and litigation services, an expert witness

usually presents the calculations. This occurs because of the complexity of the calculations, the specialized na-ture of the work, and the credibility and independence that only an outsider can provide.

Even when testimony is not required, outside fi nancial advisors are often necessary because most litigation requires a large eff ort in a short period. Internal re-sources have other responsibilities and may not have the specialized training necessary to effi ciently or appropriately support the litigation plan. This confer-ence explored the technical and ethical aspects of being an accounting expert witness and winning. The niche group of 40 att endees heard from well known att orneys such as Gedney Howe. Here’s what some of them had to say:

“This was a special opportunity to hear from one of the na-tion’s top lawyers. Gedney Howe was totally entertaining and informative, and very direct in his presentation. A real coup for the committ ee in having him as part of the program.”

“Best litigation conference of all I have att ended. Good job by the committ ee.”

“This was the best conference I have ever att ended. It made a huge diff erence to have att orneys and CPAs work and teach together. I hope to see the same collaboration and participa-tion in the future.”

GOVERNMENTAL BONUS WORKSHOP September 27, 2010 • Columbia

The Governmental Bonus Workshop lead by Dennis Dycus focused on helping att endees cover all their bases when conducting gov-ernment audits. Approximately 75 att ended sessions such as Red Flags… or, What Does Fraud Look Like; Identity Theft: It’s Only a Matt er of Time; Asset Misappropriation by Government Employees with Case Studies; and Governmental Fraud Risk with Case Studies.

“Very informative and entertaining seminar. Mr. Dycus has some of the best presentation skills I have seen.”

“Usually Government A&A CPE = BORING (try to not fall asleep and snore when you are sitt ing next to the boss)…but Dennis was great! I would go see him again. Excellent CPE!”

“The best governmental CPE I have ever had.”

Fall and winter are always busy with multiple conferences and year-end CPE off erings! For a closer look at all SCACPA has to off er in these areas, here’s a review of our recent Fall Conference schedule. Plan now to join us in 2011!

EMERGING LEADERS CONFERENCE September 23-24, 2010 • Charleston

The Young CPAs Leadership Cabinet held their fi rst Emerging Lead-ers Conference with 40 att endees in Charleston. The conference was designed to help young CPAs develop the critical skills and compe-tencies to achieve long-term success and satisfaction as a CPA. This unique event off ered a chance to connect with up-and-coming CPAs while obtaining necessary training in both technical and personal development topics. Here are some comments we received:

“[Jason Blumer’s session on the State of the Profession] was the most interesting and refreshing presentation of the conference. In addition to his unique presenting style, the topics he covered provided a new outlook on our profession.”

“I was really impressed with Georgett e Timmons’ knowledge of Excel. I consider myself knowledgeable but was still able to take something away from the session. I liked the collaborative nature of the session, with att end-ees off ering information as well.”

2010 Fall Conferences Review2010 Fall Conferences ReviewA Look Back


South Carolina Industry Conference

October 11-12, 2010 | Columbia, SC

Focused On Solutions

Silver Sponsor

South CarolinaWomen In Leadership Conference

October 28, 2010 | Columbia, SC

What’s the Buzz?

INDUSTRY CONFERENCE October 11-12, 2010 • Columbia

Focused on Solutions was the theme for this conference—a powerful, practical and proven approach to positive change with people, teams, organizations and businesses. With this approach of radical simplicity, people will sidestep the often fruitless search for the causes of problems

and head straight for the solution. The key is to focus on solu-tions, not problems; strengths, not weaknesses; and what’s going well rather than what has gone wrong. This change in thinking leads to a positive and pragmatic way of making progress. Nearly 200 att endees enjoyed a variety of topics such as the economy, health care, employee benefi ts, escheat laws, sales and use taxes and leadership.

The goal of this conference was to help the 40 att endees weather the storm with the declining stock market and home val-ues, multiple bank and investment fi rm failures, credit crunch and increased costs for health care and every day necessities. Att endees learned how to protect them-selves and “take cover” fi nancially, just as they would in the event of a real storm.

SCACPA held its fi rst annual Women in Leadership Conference, designed to pro-mote the important role that women play by serving on boards and in executive leadership positions. As agents of change, SCACPA’s primary mission through this program is to advocate, educate and connect accomplished women with the

goal of increasing the number of women serving on corpo-rate boards and in executive suites. SCACPA’s goals include helping companies diversify their boards and increase their talent pool, while helping female executives expand their infl uence and increase their visibility by providing a forum where executive women can unite, network and leverage best practices within an organization of their peers. During lunch, four women were recognized as emerging and experienced

leaders (see pg. 7 for details). Below are comments from some of the 75 att endees:

“I applaud SCACPA for off ering this event— the fi rst of its kind here.”

“I would love to att end again next year!”

“The event was benefi cial and much needed for women who are in the business and fi nance fi elds.”

“The awards ceremony was very well done.”

“The speakers were very upbeat and made the conference very enjoyable. The fi rst half of the day was a therapy session, and the second half was a comedy routine. I left feeling more confi dent and ready for any chal-lenges that I might soon face!”

“Very good conference— one of the bett er Industry conferences that I've att ended over the years.”

“As always, good job in putt ing together an interesting and informa-tive event. I especially enjoyed the health care and economic panels.”

“This conference has varied topics which are quite interesting.”

“Best CPE I have att ended this year.”

“Great job on this event. Everything was done well.”

“I love this event! Will not miss next year. Great discussions and information.”

“I love this conference, especially the 50-minute (mostly) segments. Good speakers and subject matt er.”

“[The 2010 Healthcare Reform Act] session was clear and without bias, which is unusual with this topic.”

“The economic market outlook session was very good! Very relevant for everyone and easy to follow.”

South CarolinaPersonal Financial Planning Conference

October 19, 2010 | West Columbia, SC

Weathering the Storm

Sponsored by

PERSONAL FINANCIAL PLANNING CONFERENCE October 19, 2010 • West Columbia

WOMEN IN LEADERSHIP CONFERENCE October 28, 2010 • Columbia


South CarolinaAccounting & Auditing Conference

December 9-10, 2010 | Charleston, SC

Silver Sponsor

CPA SUMMIT IN CONJUNCTION WITH TAX CONFERENCE November 11-12, 2010 • Columbia

ACCOUNTING & AUDITING CONFERENCE December 9-10, 2010 • Charleston

This conference off ered an ideal op-portunity for the 230 att endees to keep abreast of the fast-paced changes in accounting and auditing. The conference covered topics ranging from budget-ing, compilation and review, fair value, fi nancial reporting and more.

“Good topics, great speakers.”

“[Carlton Collins is] always an enjoyable speaker—I always gain valuable hints and tips from him.”

“Liked Leah Donti's style very much— att ended all three of the sessions she taught. She keeps the material relevant with real time examples of business matt ers going on in the press right now.”

ACCOUNTING EDUCATORS’ AND CPA PRACTITIONERS’ FORUM December 17, 2010 • West Columbia

Over 30 accounting educators and prac-titioners att ended the joint event with a theme of Time to Reenergize. The forum featured Russell Gates, a co-author of COSO’s recently released “Guidance on Monitoring Internal Control Systems,”

aimed at helping organizations bett er understand how to make monitoring of controls a more integrated component of their system of internal controls.

“Appreciated the new approach and content. Was interesting to view accounting from a diff erent angle!”

“Very well done and at a very reasonable price.”

“This was one of the best programs and presenters that I have ever witnessed.”

South Carolina Accounting Educators’ and

CPA Practitioners’ Forum

December 17, 2010 | West Columbia, SC

Time to Reenergize

Over 215 att endees helped SCACPA celebrate its 95th anni-versary with a theme of Refl ecting Back— Looking Forward. Despite the upheaval of national healthcare reform, new regu-latory changes, challenges confronting the profession and the fi nancial pressures of the market, the CPA Summit provided att endees with positive possibilities. CPAs, their businesses and clients can unlock the door to success and overcome po-tential hurdles by adopting approaches that deliver on trans-formational ideas and business solutions. The key is working together toward a common goal. The event spanned over two days with 16 CPE credits, three tracks and 24 sessions. Also on the agenda were events like the SCACPA Annual Business Meeting, New CPA Oath Ceremony, Member Reception and Awards Dinner. Below are some comments on specifi c sessions:

Turning Trust into Value by Greg Conderracci“Outstanding speaker. Engaged me every minute. I can take what I learned in this session and apply it anywhere in my professional or personal life.”

“I could listen to Greg speak all day, and I almost did! Signed up for all three of his sessions and was so impressed.”

“This was the best class of the two day session. I really got a lot out of it, and the instructor was excellent.”

SSARS Update by Michael Glynn“Good speaker, inher-ently boring topic.”

“Excellent class! Pro-vided the nuts and bolts I need in my practice. Didn't stay 'in the clouds in theory' like some other speakers do.”

Retaining Your Top Talent by Heidi Brundage“Heidi was a great speaker that engaged the group with discussion and tips.”

“One of the best sessions I had on either day. Her energy level is awe-some, and the topics were very timely!”

Economic Outlook Panel“This session was excellent.”

“I really enjoyed having Holley Ulbrich. The SC information was a nice addition.”

“This was an EXCELLENT session! Very informative and both speak-ers were easy to listen to on a subject that could have been very dry.”


The South Carolina Board of Accountancy met December 1, 2010 to discuss various issues

facing the regulation of the profession statewide. One of the fi rst issues discussed was related to CPE. In 2010, the rule was changed to limit self-study CPE to 20 hours of the required 40 in each reporting cycle. After much debate, the BOA determined to keep the limitation on self-study for the current time. Board members will meet this summer to perform CPE audits, and the 20-hour limitations will be monitored during these CPE audit sessions as well as the adequacy of CPE being obtained by licensees. The reason for mandatory CPE is to protect the public by assuring that licensees are maintaining competency. Please note that interactive, internet-based CPE is not deemed self-study.

Next was a general discussion to consider allowing some relief for licensees meeting certain criteria to reduce the amount of CPE hours required for renewal. The framework generally supported by all Board members included taking both experience and age into account to reduce the CPE requirement from 40 hours to 20. For example, a licensee with combined experience and age in excess of 100 would be eligible for the reduced CPE level of 20 hours. This matt er is currently being researched through the National Association of State Boards of Accountancy, and hopefully progress can be made in the future to off er relief to older licensees

who have demonstrated professional responsibility throughout their career.

In the area of discussion leaders, the new regulations failed to stipulate the limitation in the old rules of 20 hours per annum. All Board members were in agreement that this should be added to the new rules related to annual CPE. Discussion leaders are generally allowed double time for presentation but cannot count multiple presentations of the same subject matt er.

Finally in the area of CPE, the Board spent a great deal of time debating an ethical requirement for SC Licensees. The result was moving toward a six-hour requirement for CPE over a three-year period. In addition, the S.C. Board of Accountancy (in conjunction with the staff ) will develop a two-hour course focusing only on the S.C. Accountancy Act. Each licensee will be required to take the two-hour S.C. course as part of the six-hour, three-year ethics requirement. The Board will be monitoring the development of the

two-hour S.C. course and hopefully can move forward with this change once it has been developed.

The Board then discussed the Emeritus rules and the feeling that these rules are too strict. After much debate it was concluded that if you are a practicing and licensed CPA, then you must comply with the rules of the profession and no change would be considered at this time. It is hoped that easing the CPE from 40 to 20 as discussed earlier will be benefi cial to this group of licensees.

The Board is also working on plans to recognize the top CPA Exam scores. The CPA application will be revised to include a section to authorize the Board to publicize the top candidates in our state on an annual basis. The staff is researching the policies in other states and will make a recommendation to the Board once this research is complete. One possibility would be to recognize the top 10 CPA exam scores each year.

Should you have any comments on projects that are under consideration by the Board, please do not hesitate to contact us. The next meeting of the Board of Accountancy is scheduled for April 28, 2011.

Board of Accountancy

Mark Hobbs, CPA is the managing

partner of The Hobbs Group, PA

in Columbia. A past president of

SCACPA, Mark currently serves

on SCACPA’s Nominating and

Investment Committees as well

as the Long Range Planning

Task Force. He may be reached at

[email protected].

BOA Newsby Mark T. Hobbs, CPASCACPA member s ince 1981

First Quarter ReportSouth Carolina Department of Labor,

Licensing and Regulation

BOARD OF ACCOUNTANCY

(803) 896-4770www.llr.state.sc.us/pol/accountancy

“The reason for mandatory CPE is

to protect the public by assuring

that licensees are maintaining

competency. Please note that

interactive, internet-based CPE is

not deemed self-study.”


Focus On Membership Member News

IN THE NEWSJames C. “Chris” Barras, CPA, Ernst & Young LLP, was named an Executive Committ ee member of the South Carolina Chamber of Commerce.

Christopher S. Huggins, CPA, Smith Sapp Bookhout Crumpler & Calliham CPAs, was named one of Coastal Carolina University’s 2010 Outstanding Alumni from the E. Craig Wall Sr. College of Business Administration.

Jim Manley, CPA, senior manager for Elliott Davis, LLC, was named one of Greenwood’s Under 40 Stars.

AWARDS AND CERTIFICATIONSBernard N. “Bernie” Ackerman, CPA/PFS, CFP, Bernard N. Ackerman, CPA, P.A., received a 2010 Keepers of the Culture award in York County from the Culture and Heritage museums.

Wheeler & Associates, CPAs, PC is pleased to announce that Rachel D. McClaran, EA has completed the requirements and is now a licensed Enrolled Agent.

Thomas P. Monahan, CPA, Chairman and Treasurer of GMK Associates Inc., has been recognized by Cambridge Who’s Who for demonstrating dedication, leadership and excellence in fi nance.

Edward D. “Eddie” Sullivan, CPA of Sullivan Law Firm, PC in Columbia has received an LL.M-Taxation degree (cum laude) from the University of Alabama School of Law.

PROMOTIONSElliott Davis, LLC recently named Kay Biscopink, CPA and Frances Patt erson, CPA as shareholders, both from the Greenville offi ce.

Jarrard, Nowell & Russell, LLC, a Charleston-based accounting and business advisory fi rm, has named Jeanna Gibson senior accountant.

Edith (Edie) H. Madson, CPA/ABV, CFF has joined the Charleston offi ce of Elliott Davis, LLC as senior manager in the fi rm’s consulting practice.

Greg Padgett , CPA, CFO of Fennell Holdings Inc., has been named chairman of the College of Charleston’s board of trustees.

Brian Powers, CPA has been named a partner in the accounting fi rm of Streetman Jones & Powers LLC (formerly Streetman & Jones PC).

Debbie Werts has been named an accounting resources manager in the Columbia offi ce of Elliott Davis, LLC.

Fred G. Williams, CPA, was named Spartanburg City Executive by NBSC, a division of Synovus Bank.

FIRM NEWSGoodman & Company LLP and Dixon Hughes PLLC announced that they will merge their fi rms and affi liated entities eff ective March 1, 2011. Headquartered in Charlott e, the combined fi rm will be known as Dixon Hughes Goodman LLP.

Anna Locke, CPA and Brian Clark, CPA have partnered to provide experienced accounting and fi nancial management advice to upstate businesses through Clockwork Financial Services, PC, delivering accomplished senior accounting services on a fl exible schedule.

CONDOLENCESWilliam Martin “Bill” Blackwell, 96, passed away June 6, 2010. A lifetime member of SCACPA, Bill was a retired CPA and employed by J.W. Hunt and Co. CPAs in Columbia. An avid Clemson Tiger, he was a member of the “Old Guard” when Clemson was an A&M college. He was a charter member of Forest Lake Presbyterian Church in Columbia, where he was the fi rst treasurer. After moving to Camden in 1984, he became a member of Bethesda Presbyterian Church.

Surviving are a daughter, Janie (Terry) Hancock of Camden; two grandsons, Bill (Lori) Hancock of Columbia and Brian (Jennifer) Hancock of Simpsonville; great-grandchildren Elizabeth Jane, Grace Manning, Jonathan and Jacob; and sister Janie Blackwell of Sumter. He was predeceased by his wife, Tommie; brothers Joe and Jim; and sisters Anna Youngblood and Zula Thibodeau. Memorials may be made to Bethesda Presbyterian Church, 502 DeKalb Street, Camden, SC 29020.

SHARE YOUR NEWSSend member news announcements to Emily Allen at [email protected]. Deadline for the Second Edition issue is April 20, 2011.


Focus On Membership Welcome New Members

AFFILIATE, non-CPAMarcie L. Chestnut Gaston, SC

Jennifer A. Elder Charleston, SC

Deana C. Groves Walterboro, SC

Tatiana P. Hanna Charleston, SC

Dawn Judd Charleston, SC

Beverly Lloyd Beaufort, SC

Anna V. Spann Charleston, SC

Daniel G. Temple Murrells Inlet, SC

ASSOCIATERebecca A. AllisonColumbia, SC

Kimberly BrodyLexington, SC

Lori L. GrantCharleston, SC

J T Massey Mt. Pleasant, SC

Christy L. Pauley Simpsonville, SC

Robert D. Ross Louisville, KY

Debra E. Walworth Summerville, SC

CPA CANDIDATEPhillip M. Barnhill Charleston, SC

Kathryn L. Cole Greenville, SC

Peter H. Cook Myrtle Beach, SC

Natalie K. Crisp Greenville, SC

Branden T. Daniels Easley, SC

Christopher W. GibbonsColumbia, SC

Adam Hoey Columbia, SC

Richard O. HolleyAiken, SC

Heather B. Koepenick Charleston, SC

Justin W. Taylor Camden, SC

George C. Theodore Greenville, SC

FELLOWJoshua C. Almaroad Simpsonville, SC

Robert L. Blyth, Jr. Charleston, SC

Tara C. Bolton Florence, SC

Stephen L. BomarGreenville, SC

Janet M. BreamanGreer, SC

Carol M. Cissel Murrells Inlet, SC

April M. Collins Aiken, SC

Thomas R. Costigan Greenville, SC

Kristin E. Diggett Summerville, SC

William C. Dodenhoff Columbia, SC

Daniel J. Emanuel Greer, SC

Leo A. Fary, Jr. Mount Pleasant, SC

Joel A. Gibbons Charleston, SC

Carole H. Hill Mt. Pleasant, SC

Nancy J. Hune N. Myrtle Beach, SC

James S. Jarvis North Charleston, SC

Linda K. Jones Westwood, NJ

Phillip R. McElhaney Langley, SC

Sheree A. Moore Greenville, SC

Courtney R. Nappier Trenton, SC

Benjamin D. O’Dell Simpsonville, SC

Reshma N. Parikh Columbia, SC

Rebecca Peters Summerville, SC

Joseph C. Phillips Hendersonville, NC

Joseph D. Pratt Simpsonville, SC

Jay L. Reitz es Indian Land, SC

Clarence J. Rogers, Jr. Mt Pleasant, SC

Blair K. Salmon Columbia, SC

Purvi Shah Greenville, SC

Jessica A. Strickler Charleston, SC

Patrick C. Thomasson Greenville, SC

Stuart F. Williams, Jr. Boiling Springs, SC

Tamara L. Wood North Myrtle Beach, SC

FIRM

ADMINSTRATORBeth Baggerly Beaufort, SC

Laura Brumby Hilton Head Island, SC

Debra Dicus Pawleys Island, SC

Debra Price Lexington, SC

Mary Silvestri Myrtle Beach, SC

LEAVE OF ABSENCEFredrick M. Easter Charleston, SC

Jeff rey E. Jackson Duncan, SC

STUDENTDennis Clark Winthrop University

Nakeshia D. Gambrell Spartanburg, SC

Victoria A. Garrett Converse College

Neil Gonsalves Winthrop University

Nicholas A. Greene The Citadel

Edwin L. Henry Columbia, SC

Richard D. Kirkpatrick, II The Citadel

J. E. Mitchell Winthrop University

Vicki L. NealConverse College

Andrew J. Patt erson Greenwood, SC

Charles C. Prevost Mt. Pleasant, SC

Britt any A. Stump Coastal Carolina

Allison M. Taylor Woff ord College

Erin M. Valeka Converse College

Austin Wang Winthrop University

Stephanie E. WehrungCoastal Carolina

Casey A. WeidmanUSC Upstate

Regan B. Wilbanks The Citadel

Corrine Zhang Winthrop University


Chapter Connections

CHAPTER SPOTLIGHTZoe M. Davis, CPA, CFE

2011 President of the Coastal Chapter of SCACPA

SCACPA Member since 1997

What have you learned – about our association, fellow members or yourself – by serving as a chapter leader?Having the opportunity to work with such positive and professional people made me realize the vast amount of volunteer hours needed for every event and division of our Association. I feel very fortunate to serve as an offi cer of the Coastal Chapter and appreciate the value that each member brings. What a great group of people! Serving other CPAs gives me an opportunity to meet fellow professionals in various specialty areas, which has helped me market our employee benefi t plan auditing practice specialty.

What has been your proudest accomplishment during your tenure?Our chapter offi cers did a great job gett ing the 2011 CPE events schedule out early to our members, which allows our members to plan bett er. We also were able to obtain member feedback, which helped us decide on some new course topics. We want to keep it fresh.

What advice do you have for those considering gett ing involved and engaged in SCACPA and their local chapter?Just do it! It will be a very rewarding experience. Remember, when it comes to satisfaction and reward, you only get back what you put into it.

Zoe serves on the Strategic Membership Task Force. She is a

Partner with Hubbard Davis CPAs LLP in Mount Pleasant, SC.

CHAPTER EVENTS CATAWBADues: $60 includes discounted registration to CPE seminars and free family/networking event• May: CPE (8 hours)• Summer: Family/Networking event• August-November: Professional Issues Update (4 hours)• August: Annual Business Meeting

CENTRALDues: $50 includes discounted registration to CPE seminars, free Oyster Roast, Family Day and Business Meeting Dinner; invitation to Entertainment Night and Golf Tournament• April 25: Golf Tournament at Columbia Country Club• May: CPE (4 hours)• May 21: Annual Barbeque at the Zoo• June 6-7: Two days of CPE with Jeff rey Lieman (16 hours)• August: CPE (4 hours)• August-November: Professional Issues Update (4 hours)

COASTALDues: $130 includes free registration to CPE seminars (additional registration fee for Tax Update) and free registration to family/networking event• May 18: A&A Update with Elizabeth Gantnier (8 hours) • August-November: Professional Issues Update (4 hours)

FOOTHILLSDues: $40 includes discounted registration to CPE seminars and three free social/networking events• April: Social Networking• May: Bankers’ Night

• August: A & A Update with Russ Madray (8 hours) • August-November: Professional Issues Update (4 hours)

GRAND STRANDDues: $125 includes free registration to CPE seminars, Holiday Party and Student Recruitment Fair• May: CPE (4 hours)• August-November: Professional Issues Update (4 hours)

PEE DEEDues: $50 includes discounted registration to CPE and free social events• March: Mid Tax Season Breather • August-November: Professional Issues Update (4 hours)

PIEDMONTDues: $50 includes registration for CPE at a nominal fee and free holiday luncheon• March 17: Property Tax/Canadian Tax or Tax Managers/SALT, Income (4 hours PITMG2)• May 19: Corporate FIT/Sales Tax or International Tax/UCP, 1099, Wage (4 hours PITMG1)• June 16: Property Tax/Canadian Tax or Tax Managers/SALT, Income (4 hours PITMG2)• August 18: Corporate FIT/Sales Tax or International Tax/UCP, 1099, Wage (4 hours PITMG1)

SEA ISLANDDues: $135 includes free registration to CPE seminars and two special events, Tax Breather Social and Professionals’ Night• March: Tax Breather• August-November: Professional Issues Update (4 hours) and CPE (4 hours)

Staff Contact: Sandra Oxner

Thirty young CPAs from across the country converged in Durham, NC last fall for a three-day inter-

active leadership workshop designed to sharpen personal leadership skills and develop future leaders of the profes-sion. This was the second annual AICPA Leadership Academy, and I was hon-ored to be in att endance.

Day one of the Academy focused on empowering each participant to real-ize their leadership potential in both a personal and professional context using a leadership development module en-titled Mind to Matt er. Additionally, each participant brought a personal leader-ship challenge that they were currently facing. There were 30-minute sessions interspersed throughout the three-day agenda during which groups of fi ve dissected these challenges and gave valuable and unbiased feedback to help resolve each issue.

The focus of the Academy shifted to the state of the CPA profession during the second day. AICPA President and CEO Barry Melancon, CPA discussed the top issues facing the profession and the AICPA’s role in working toward favor-able resolutions to these issues. Robert Harris, CPA/CFF, the AICPA Chairman for 2009-2010, spoke to the group about his experiences during his year as Chair-man.

Throughout the conference, Leader-ship Academy Alumni seated at each table helped facilitate discussion among participants. The Academy took an in-depth look at the strengths, challenges,

opportunities and threats facing the CPA profession. This led to the creation of priorities for the profession and the de-velopment of an action plan to get other young CPAs involved.

In addition to strengthening leader-ship skills and providing an avenue for involvement in the leadership of the pro-fession, the Academy provided a tremen-dous opportunity to network with other like-minded young CPAs. Networking receptions were planned for each of the three evenings during the Academy. Mr. Melancon and Mr. Harris participated in a panel on the second evening dur-ing one of these receptions. Many of the questions posed to this panel related to achieving a balance between work and personal life. During dinner that evening, I was seated at a table with Mr. Melan-con. This was an amazing opportunity to discuss the challenges and opportunities related to our career.

On the fi nal evening, the group gathered at the Durham Museum of Life and Sci-ence for barbeque, bluegrass and outdoor lawn games. The Academy culminated

AICPA Leadership AcademyA Step in the Right Direction

ABOUT THE YOUNG CPAsSCACPA created

the Young CPAs

Leadership Cabinet

to prepare young professionals for positions of

leadership in the profession, the association, the

community and the world. As young staff embark

on their CPA career path, the Leadership Cabinet

off ers an enriching environment where participants

learn new skills, access resources and shape ideas for

the future. This unique two-year program combines

in-person meetings, the opportunity to interact with

CPAs across the state, and online shared experiences.

For more information on becoming a member of

the Young CPA Leadership Cabinet, contact Emily

Allen at [email protected] or visit www.scacpa.org/

youngcpas.

by Amanda Colgate, CPASCACPA member s ince 2006

in an awards luncheon where we were each presented with a certifi cate of participation and a Leadership Academy pin. We left the Academy knowing that there would be opportunities during the upcoming year for our class to gather and further our leadership development and to help plan the 2011 Leadership Acad-emy.

The 2010 Leadership Academy class was selected from 120 candidates who were sponsored by their employers or state societies. Information may be found on the AICPA website if you would like to sponsor a CPA under the age of 36 for this opportunity.

Interested in participating in the 2011 Leadership

Academy? E-mail [email protected].

In addition to strengthening

leadership skills and providing

an avenue for involvement in the

leadership of the profession, the

Academy provided a tremendous

opportunity to network with other

like-minded young CPAs.


2011 Continuing Education Courses Preview As of January 13, 2011

APRIL 20114/28 Nonprofi t Conference Columbia

MAY 20115/4 CPA Day at the State House Columbia 5/16 Dangers in Improper Revenue Hilton Head Recognition and Accounting Issues

5/16 Planning Cost-Effi cient and Hilton Head Eff ective Audits 5/16 Liquidation of Business Entities Hilton Head

5/16 Negotiations and Tax Aspects of Hilton Head Buying and Selling a Business

5/17 Pitfalls and Problems Hilton Head

5/17 Meeting Workpaper Documentation Hilton Head Requirements and Writing Eff ective SAS 115 Reports 5/17 A Complete Guide to Section Hilton Head 338 Acquisitions 5/17 Employment Issues—Reducing Hilton Head the Employer's Risk

5/18 Construction Industry Satellite/ Webcast

5/18 Accounting and Auditing Update Hilton Head

5/18 Substantive Analytical Workshop Hilton Head

5/18 Advanced Technical Tax Forms Hilton Head Training—1040 Issues

5/18 Clearing the Fog in Advanced LLC Hilton Head and Partnership Structuring

5/19 Audits of Benefi t Plans Conference Columbia

5/20 Trusted Advisor Workshop West Columbia

5/24 North Carolina Professional Greenville Ethics Update (AM) 5/24 North Carolina Professional Greenville Ethics Update (PM) 5/26 Government Conference Columbia

JUNE 20116/1 Construction Industry Webcast

6/6 Accounting for Leases: Columbia Revolutionary Changes to the Previous FAS 13 Requirements 6/7 Now I See! Comprehending Columbia OMB A-133 6/13 Controller's Update Myrtle Beach

6/13 Enhancing the Success of Your Myrtle Beach Organization with a Winning Culture

6/13 S Corps, LLCs and Partnership Update Myrtle Beach

6/13 Individual Income Tax Update Myrtle Beach

6/14 Analyzing Costs, Productivity and Myrtle Beach Effi ciency to Boost Your Bottom Line 6/14 Financial Forecasting Myrtle Beach

6/14 Choosing the Best Entity Structure Myrtle Beach

6/14 Make Money for You and Your Clients: Myrtle Beach Top Business Tax Planning Strategies

6/15 Lean Accounting Myrtle Beach

6/15 Essential Skills for the Survival and Myrtle Beach Growth of Your Organization

6/15 Determining How Much Money Myrtle Beach You Need to Retire

6/15 Social Security, Medicare and Myrtle Beach Prescription Drug Retirement Benefi ts

6/20-21 AICPA's Annual Accounting and West Columbia Auditing Workshop

6/22 Update on IRS Tax Controversy Satellite/ Procedure: Dealing with the IRS Webcast in the Real World

JULY 20117/6 Update on IRS Tax Controversy Webcast Procedure: Dealing with the IRS in the Real World


7/11 A&A Update Asheville, NC

7/11 FIN 48 Asheville, NC

7/11 S Corporations; Compensations Asheville, NC Redemptions and Estate Planning

7/11 Limited Liability Companies and Asheville, NC Partnerships: Losses, Liquidations Terminations, Continuations & Sales 7/12 Cases in Compilation & Review Asheville, NC

7/12 Small Business Audits Asheville, NC

7/12 New Critical Decisions in Selecting Asheville, NC the Best Retirement Plan for Small Businesses in 2011 7/12 Clearing the Fog in Advanced LLC Asheville, NC and Partnership Structuring

7/13 Yellow Book Audits Asheville, NC

7/13 Cases in Not for Profi t Accounting Asheville, NC and Auditing

7/13 Dispositions of Real Estate Asheville, NC

7/13 Using Tiered Partnerships Multiple Asheville, NC Corporations, Series LLCs and Disregard Entities 7/20 Governmental Accounting & Satellite/ Auditing Update Webcast 7/21 Are You Ready for Peer Review? West Columbia

7/27 Estate Planning for 2011 and Beyond West Columbia

7/28 Estate Planning Local Issues West Columbia

AUGUST 20118/3 Governmental Accounting & Webcast Auditing Update

8/8 A&A Update Charleston

8/8 Cash & Tax Basis Financial Charleston Statements 8/8 Complete Strategies for Maximizing Charleston

Contributions, Rollovers, Distributions, and Estate Planning of IRAs, Roth IRAs, SIMPLESs and SEPs

8/8 How to Do Optional Step-Up in Basis Charleston Under §754 and Related Provisions

8/9 Fraud and Forensics Charleston

8/9 Frauds and Internal Control for Charleston Revenue and Cash Receipts

8/9 S Corp and Partnership and Charleston LLC Tax Update

8/9 Individual Income Tax Update Charleston

8/10 IFRS Charleston

8/10 Managing Compilation, Review, Charleston and Accounting Services

8/10 Overview, Life Insurance, and Charleston Other Trusts

8/10 Estate Planning Mistakes Charleston Practitioners Make and How to Fix Them

8/18-19 Emerging Leaders Conference Charleston 8/23-24 How to Conduct a Review Under West Columbia the AICPA Practice-Monitoring Program

8/25 AICPA's Advanced Workshop: West Columbia Practical Guidance for Peer Reviewers

8/31 Compilation and Review Update: Satellite/ SSARS 19 Implementation Webcast

SEPTEMBER 20119/14 Accounting & Auditing Update Satellite/ Webcast

9/19 LLC Practitioner's Workshop: A West Columbia Case Studies Approach

9/20 The Top 50 Mistakes Practitioners West Columbia Make and How to Fix Them: Individual Tax & Financial Planning


2011 Continuing Education Courses Preview As of January 13, 2011

9/21 Compilation and Review Update: Webcast SSARS 19 Implementation 9/21 Fair Value Greenville

9/21 Frequently Asked Questions in GAAP Greenville

9/21 Choosing the Best Entity Structure Greenville Under the New Tax Law in 2011

9/22 How to Use a Service Organization Greenville Report and Practice Problems with Related Party Transactions 9/22 Accounting Standards Update and Greenville Acquisition Accounting

9/22 Advanced Tax Structures: Using Greenville Tiered Partnerships Multiple Corporations, Series LLCs, and Disregard Entities 9/23 How to Analyze Financial Statements Greenville and Troublesome A&A Issues 9/23 Using Tax Basis and Other OCBOA Greenville Eff ectively 9/23 Hot IRS Tax Examination Issues for Greenville Individuals and Businesses

9/26 North Carolina Professional West Columbia Ethics (AM) 9/26 North Carolina Professional West Columbia Ethics (PM) 9/28 Common Frauds and Internal West Columbia Controls for Revenue, Purchasing and Cash Receipts 9/29 Top Ten Fraud Schemes: How to West Columbia Detect and Prevent Them

OCTOBER 201110/5 Accounting & Auditing Update Webcast

10/13-14 Industry Conference Columbia

10/17 Investing in Private Companies Greenville

10/17 Investing in Real Estate Greenville

10/18 Dealing with Troubled Real Estate Greenville

10/20 Personal Financial Planning West Columbia Conference

10/25 Basis, Distributions, and Loss West Columbia Limitation Issues for S Corporations, LLCs and Partnerships 10/26 Partnerships & LLCs Update Satellite/ Webcast

10/26 Strategies and Tactics in the New West Columbia War Against Higher Individual Taxes

NOVEMBER 201111/3-4 CPA Summit and Annual Columbia Member Meeting

11/7 S Corporations Practitioner's West Columbia Workshop: A Case Studies Approach

11/8 Fiduciary Income Tax Returns - West Columbia Form 1041 Workshop

11/9 Partnerships & LLCs Update Satellite/ Webcast

11/15 Governmental Bonus Workshop Columbia

11/16 Tax Accounting Methods Satellite/ Webcast

11/17 Women in Leadership Conference Columbia

11/21 Non-Profi t Financial Manangement West Columbia

11/22 The Coming IFRS Conversion West Columbia

11/28 Performance Analysis Greenville

11/29 Fraud Alert Greenville

11/29 The Best Income Tax, Estate Tax, West Columbia and Financial Planning Ideas of 2011

11/30 Tax Accounting Methods Webcast

11/30 Advanced Tips and Tricks of West Columbia Investment Tax Management to Enhance Client Wealth Accumulation and Retirement Security


DECEMBER 201112/1 Buying and Selling a Business-- West Columbia Tax and Non-Tax Aspects

12/1 Technology Conference Columbia

12/2 Increasing the Top and Bottom Line West Columbia

12/5 Religious Organizations: Advanced West Columbia Issues for CPAs

12/6 HOA & Condos: Advanced Issues West Columbia

12/8-9 Accounting & Auditing Conference Charleston

12/12 Federal Tax Update with Walter Myrtle Beach Nunnallee 12/13 Federal Tax Update with Walter Charleston Nunnallee 12/14 Annual Tax Update Satellite/ Webcast

12/14 Federal Tax Update with Walter Columbia Nunnallee 12/15 How to Go Paperless—Transforming Columbia to a Digital Practice Model

12/15 Federal Tax Update with Walter Greenville Nunnallee 12/16 Construction Industry Webcast

12/16 Outlook, Word, Excel & Adobe Tips, Columbia Tricks and Techniques

12/16 Accounting Educators' and West Columbia CPA Practitioners' Forum

12/19 Update on IRS Tax Controversy Webcast Procedure: Dealing with the IRS in the Real World 12/19 Acquisitions to Grow the Business West Columbia

12/20 Governmental Accounting & Webcast Auditing Update

12/20 Corporate Financial Tune-Up West Columbia

12/21 Compilation and Review Update: Webcast SSARS 19 Implementation

12/21 The Complete Trust Workshop West Columbia

12/22 Partnerships & LLCs Update Webcast

12/23 Accounting & Auditing Update Webcast


12/28 Annual Tax Update Webcast

12/28 CPE Frenzy West Columbia


12/29 CPE Frenzy West Columbia

JANUARY 20121/9 Construction Industry Webcast

1/10 Update on IRS Tax Controversy Webcast Procedure: Dealing with the IRS in the Real World

1/10 Complete Guide to Preparing West Columbia Limited Liability Company, Partnership and S Corporation Federal Income Tax Returns

1/11 Governmental Accounting & Webcast Auditing Update

1/11 Payroll Taxes, Benefi ts and 1099 West Columbia Reporting: Everything You Need to Know

1/12 Compilation and Review Update: Webcast SSARS 19 Implementation 1/13 Partnerships & LLCs Update Webcast

1/17 Accounting & Auditing Update Webcast

1/17 Preparing Individual Tax Returns for West Columbia New Staff and Para-Professionals


1/18 The Complete Guide to Preparing West Columbia Limited Liability Company, Partnership and S Corporation Federal Income Tax Returns



ADVERTISER INDEX

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Aon/BB&T Insurance Services/AICPA Professional

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American Pensions

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Blytheco

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John F. Hamilton, CPA

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McAngus Goudelock & Courie, LLC

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SCACPA: What excites you most about teaching the next generation of CPAs? How do you hope to equip your students for the fi rms of the future, and what do you think those will look like? Anderson: Students today face an amazing future. CPAs continue to evolve from being the gatherer of num-bers and producing results to unprec-edented roles as advisors, protectors of information and business planners. Recently I automated the accounting process for my personal, CPE and CPA clients and now download data from the bank or credit card rather than key it into my system. That allows me to focus on reviewing the results and using those results to plan for the future. To-day, the entire process from the sale or purchase to accounting system and tax return can be completed from a single data entry point. In my classes, students learn to use online homework and test-ing systems, web-based conferencing via Skype and GoToWebinar, remote computer access via LogMeIn, research using FASB and AICPA web-based resources as well as the usual Word and Excel programs. My students don’t receive any information or assignments on paper, nor do I require any assign-ments to be submitt ed on paper.

As in the past, the fi rm of the future’s primary focus will be to assure that the data generated by an individual or business fairly represents their fi nan-cial position and is used to help them achieve their goals. The change is how we’ll accomplish that goal and how much it will cost. We no longer have to travel to a client’s offi ce and look at the books, or meet in person to discuss plans. Instead, we can meet via Skype and share documents online to accom-plish everything we need to do. As they become profi cient with this style of meeting and processing data, CPAs will move from interacting with manage-ment, bankers and investors primarily during tax season to continuous inter-action via the cloud on computers, cell phones and who knows what the next greatest device will be, wherever and whenever we choose. The next genera-tion of accountants will be very skilled in technology and limited only by their desire, work ethic and ability to engage their fi rm in the new business model.

SCACPA: From education to public practice, any thoughts on how the pro-fession is changing and will continue to evolve?

Breaking Tradition, continued from page 12

Anderson: My students are given homework assignments that can be accessed 24/7 with instant feedback on performance. They can view the day’s class lecture and activities at any time via a Windows Media Movie recording, and communicate with me seven days a week via my cell phone or Skype. My Spring 2011 auditing class will learn to conduct a live webinar and be able to att end class and participate via webinar if they can’t show up in person. The business world is changing in the same way. I always ask att endees at my CPE seminars if they or their clients oper-ate in the cloud, and approximately 90 percent say no. Then I ask if they do online banking, web-based research, social media or track their CPE on SCACPA’s website, and almost everyone says yes. As Jason Blumer says, we are all stair-stepping into the clouds. We cannot sit back and let our clients and the business world push and pull us into this new environment. The next genera-tion of accountants will not only help us make that transition, but enable us all to become leaders in eff ectively and effi ciently making the change.

visit www.scacpa.org/socialmediaSee what you’re missing

SOUTH CAROLINA PRACTICES

north columbia – $530,000

Exceptional CPA practice by all measures. Owner has prior big-8 as well as mid-size firm experience and has built a great practice located in a wonderful community. Firm has excellent clients, paperless office, desirable

location, efficient systems and quality staff in place…just to name a few of the strengths of this business. There is no audit work and owner has been very selective about which clients to accept. Future growth potential is strong and past growth has been consistent. This could make an excellent addition to an area firm, or a great

opportunity for someone with similar experience to strike out on their own.

charleston – $220,000

Well established firm with very strong employees. The Charleston area is a wonderful place to live and work. The area offers great recreation, entertainment and a good business environment. The “low country” of South Carolina is one of the most beautiful areas around with excellent beaches nearby.... and historic

downtown Charleston is very unique.

Call Brannon Poe, CPA to start the conversation! We have buyers waiting.

BRANNON POE, CPA | 1.888.246.0974 | [email protected]

PREVIEW AT WWW.ACCOUNTANTSFLIGHTPLAN.COM

Using real-world scenarios, practice owner testimonials,

and written exercises, CPA and author Brannon Poe offers

keen insights for developing customized, straightforward

approaches to hone your focus, eliminate frustration,

grow your bottom line, and achieve

meaningful work-life balance while increasing profitability.

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LLC

PROFESSIONAL SERVICES AND SOFTWARE FROM BLYTHECOAutomating Business Process | Better Customer Loyalty | Better Employee Management Increasing Your Revenue | Solving Business Problems | Creating More ROICustom Development | Human Resources Consulting

PRSRT STDUS POSTAGE PAIDPERMIT NO. 1146

Columbia, SC

South Carolina Association of CPAs570 Chris Drive, West Columbia, SC 29169

www.fsc.org© 1996 Forest Stewardship Council

Cert no. SW-COC-002946

10%

Mixed SourcesProduct group from well-managed

forests, controlled sources andrecycled wood or fibre

cpa report 1q2011

Documents

tax sectionin

new leadership

president cpas

future irsdor meeting

tax act overview4

issue6 association news8

president10 cpas

new level of collaboration