CPA News and Information

Larrieu, Smith Named Pensacola Rising Stars

2012-01-26T09:12:00.000-06:00

Congratulations to Robin Larrieu and Justin Smith for being named to the Pensacola Independent News Rising Stars 2012 list! The Rising Stars program has been honoring leaders under the age of 35 in Pensacola since 2008. To be chosen as a Rising star, one must be seen as an upcoming leader in his or her profession within our community.

Read more about the 2012 Pensacola Rising Stars.

Saltmarsh is proud of Robin and Justin! Congratulations from the entire Saltmarsh team!

Robin Larrieu is the Network Engineer in the Information Technology Services Department of Saltmarsh, Cleaveland & Gund. Coming from a large ISP she joined the firm in June 2006 and began her career in 2003.

Her experience includes computer networking and technology consulting. Robin is a Microsoft Certified Desktop Support Technician.

Justin Smith is a Senior in the Tax & Accounting Services Department of Saltmarsh, Cleaveland & Gund. He has been practicing public accounting since 2006.

Justin’s area of expertise includes corporate and individual tax specializing in construction contractors, homeowner’s associations and non-profit organizations.

Bill Massey Quoted in American Banker

2012-01-17T10:40:00.002-06:00

Bill Massey, CPA, Shareholder, has been quoted in the latest edition of American Banker and on AmericanBanker.com in an article focusing on rebuilding Florida's community banks.

To read Bill's quote and the article in its entirety, please click on the link below. The article is on the second page of the document.

Fla. Regulator Intends to Help State's Banks Rebuild

Saltmarsh Announces 2012 Promotions

2012-01-10T14:58:00.000-06:00

Please join us in congratulating the following individuals who have been promoted as of January 1, 2012:

Suzanne Cox, CPA has been promoted to Senior Manager in the Audit Department of the Tampa office of Saltmarsh, Cleaveland & Gund. Suzanne has been practicing in this field since 2003, and her experience includes audit, accounting, taxation and consulting services. Her areas of expertise include development, construction and manufacturing companies. Prior to working in public accounting Suzanne worked as an Information Systems Consultant for a private accounting software firm.

Cedric Durre has been promoted to Manager in the Information Technology Services Department of Saltmarsh, Cleaveland & Gund. He has been practicing in this field since 2001, and his experience includes networking and information technology. He also has experience working in internet service provider infrastructure and datacenter environments.

Lisa Goodwin, CPA has been promoted to Senior in Audit Department of the Fort Walton Beach office of Saltmarsh, Cleveland & Gund and provides audit and assurance services to clients. She joined the firm in October 2008 and her areas of concentration include non-profit, governmental, condominiums, and homeowners’ associations.

Alexandria O'Brien has been promoted to Senior in the Audit Department of the Tampa office of Saltmarsh, Cleaveland & Gund. Since joining Saltmarsh in 2008, she has worked in our accounting and audit department serving our financial institution clients, private companies and nonprofit organizations.

Legislative Alert - Update on IRS Form 1099 and Other Payment Returns

2012-01-10T14:33:00.000-06:00

Background

An information return is a tax document businesses are required to file to report certain business transactions to the Internal Revenue Service (IRS). The requirement to file Information Returns is mandated by the Internal Revenue Service and associated regulations.

Any person, including a corporation, partnership, individual, estate, and trust, who engages in reportable transactions during the calendar year must file information returns to report those transactions to the IRS. Persons required to file Information Returns to the IRS generally must also furnish statements to the recipients of the income. Filers of 250 or more such returns must file these returns electronically with IRS.

Key Developments & Observations

• Earlier in 2011, previously expanded Form 1099 rules – that were originally passed as a component of the Patient Protection and Affordable Care Act of 2010 – were repealed. If the rules had not been repealed, effective for payments made after December 31, 2011, the general requirement for information reporting by all persons engaged in a trade or business who make payments in any tax year aggregating $600 or more to a single payee would be expanded to include payments made to a corporation (but not payments to a tax exempt corporation). Additionally, the class of payments for which reporting is required would be expanded to include all amounts paid in consideration for property, and other gross proceeds for both property and services.
• Starting January 1, 2011, brokers required to file Form 1099-B regarding a covered security must also report the customer’s adjusted basis in the security and whether any gain or loss with respect to the security is long term or short term.

• An entity should use Form W-9 to request the taxpayer identification number of a U.S. person (including a resident alien) who will receive an information return.

• An entity should use the appropriate Form W-8 for foreign persons who will receive an information return.

For more information or to ask questions about this legislative alert, contact one of our tax and accounting advisors at 800-488-7458, or visit our website to learn more.
© 2011 EisnerAmper LLP

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

Jim Speed Retirement

2012-01-06T16:45:00.000-06:00

This week, Saltmarsh celebrated the retirement of Jim Speed. Jim spent more than 30 years of his public accounting career at Saltmarsh and spent a portion of his time here as the shareholder in charge of retirement plan accounts, profit sharing plans and flexible medical and dependent care spending accounts.

We surprised Jim with a reception in the community room and a slide show of images of him at the firm through the years. We are grateful for Jim's commitment to the firm and we wish him a very happy retirement!

From right: Jim Speed with Ron Jackson.

The cake was delicious! So much so, we didn't get a photo before it was eaten!

Payroll Tax Cut Temporarily Extended into 2012

2011-12-27T15:24:00.000-06:00

IR-2011-124, Dec. 23, 2011

WASHINGTON — Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.

Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.

Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).

This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.

The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012 is due April 30, 2012.

Ft. Walton Beach Holiday Party

2011-12-22T12:38:00.000-06:00

The Fort Walton Beach office celebrated the holidays together at the home of Glenn Scharf with tons of delicious food and fun games, coordinated by Allyson Oury. After an intense game of "Dirty Santa," the team rounded out the night with the "Team Work" pyramid.

IRS Announces 2012 Standard Mileage Rates

2011-12-13T14:56:00.000-06:00

WASHINGTON — The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 55.5 cents per mile for business miles driven

• 23 cents per mile driven for medical or moving purposes

• 14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51.

Notice 2012-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

At Saltmarsh, our tax consultants work full time to keep up with the constant changes in our tax laws. We develop strategies that will allow you to take full advantage of the law, and we use our best judgment and experience to advise you as to what actions you can take to reduce your tax burden. Learn more about tax and accounting services by visiting our website at www.saltmarshcpa.com.

United Way Day of Caring 2011

2011-12-12T11:50:00.000-06:00

Recently, Saltmarsh employees participated in the United Way's Day of Caring by helping Oakcrest Elementary School with the up-keep of their vegetable and butterfly gardens. In addition, new fruit trees were installed along with an irrigation system.

In addition to helping at the school, Saltmarsh employees also collected school supplies for the children of Oakcrest.

Thanks to all of our employees who helped to make a difference in the lives of these children, whether it was through giving school supplies or through giving your time!

2011 Saltmarsh Christmas Party

2011-12-12T11:38:00.000-06:00

The Saltmarsh Christmas party was held at the Pensacola Country Club on December 3rd. Here are a few pictures for your enjoyment! Happy Holidays!

Lee Bell Quoted in Article on Community Banking

2011-11-30T15:07:00.000-06:00

Lee Bell, Shareholder, was recently quoted in an article written by Margie Manning of the Tampa Bay Business Journal regarding Tampa area community banks. Below is an excerpt of that article. To read more, visit the Tampa Bay Business Journal's website.

Performance improving, with a caveat
Margie Manning

Tampa Bay area community banks gained strength on their balance sheets and income statements in the third quarter. As a group they bolstered capital and made a profit compared with a net loss in prior quarter.

However, the turnaround is attributed more to failure of a dozen of the biggest statewide money-losers than to performance improvements.

“I don’t know that we’re seeing that banks are starting to make money that weren’t making money, but some of the banks that were losing money have continued to lose but at a slower pace or they are gone,” said Lee Bell, shareholder in charge of the central Florida practice for accounting firm Saltmarsh, Cleaveland & Gund.
The health of the banking industry is critical for small to mid-size businesses that rely on community banks for credit and other services. Stronger banks are in a better position to make loans to be used by businesses to expand and hire, increase purchases from other businesses and in turn boost the economy.

QuickBooks Tips & Tricks: Capped Sales Tax Procedure

2011-11-28T09:32:00.001-06:00

How can I handle a capped sales tax amount in QuickBooks? Many states, including Florida, have county sales tax rates that cap at a certain amount and then are not charged on the amounts that exceed the ceiling. For example, Escambia County in Florida does not charge the county surtax of 1.5% on amounts over $5,000.00 included in one sales transaction. If a customer has an invoice totaling $6,000.00 and is subject to the Florida State and Escambia County tax rates, the sales tax rates that apply would be 6% on the full $6,000.00 and 1.5% on the $5,000.00 or $75.00.

QuickBooks does not have a method set up to automatically handle these capped sales tax amounts. There is a simple workaround that is very effective in dealing with this problem. The first step is to create two sales tax items: a Florida Sales Tax with a 6% rate and an Escambia County Capped Sales Tax with a 0% rate. If you do not already have a subtotal item you will need to set that up as well.

To create a subtotal item, open the Item List and right click. Select “New” from the menu options and select “Subtotal” for the item. Type the word “subtotal” in the Item Name/Number and Description areas. Then click on “OK”.

Next, create the customer invoice. At the bottom of the invoice select a Non-Taxable sales tax code. You may have to set this up if you do not have one already. Select the items being sold to the invoice as you normally would. Make sure each individual line with the items being sold is “Taxable”. When all items have been entered, on the next invoice line enter the subtotal item. This will total all the lines above it. In the example below the total is $6,000.00. Under the subtotal, enter the Florida State Sales Tax item with the 6% rate. This will charge the correct state rate on all items sold.

Underneath that line, enter the Florida Capped Sales Tax with a 0% rate. You can then manually type in the capped amount of $75.00. QuickBooks will warn you that you should not change a sales tax rate but that is the purpose of this workaround so you can close the error message.

The invoice will now have the correct sales tax charged and it will flow through automatically to the correct liability account. There is no need for manual calculations on the invoice because the state rate will calculate automatically with the sales tax item used and the capped county surtax amount you already know is $75.00.

This is an example of an issue that it would be worth bringing to Intuit’s attention. Under the “Help” option on the grey menu bar there is an option to “Send Feedback Online”. You can ask for a capped sales tax procedure as a “Product Suggestion”. Intuit does listen to customers and if enough people bring an issue to them they will respond. This is why there are updates/patches during the year that you can download.

Review the samples below and if you have questions, please call any of our QuickBooks ProAdvisors at (850) 435-8300. If you have any other QuickBooks questions or problems we will be happy to help you solve them.

Example of an Invoice with Capped Sales tax amount:

Sales Tax Liability report:

**These tips are based on the 2011 version of QuickBooks.

New Legislative Alert - Deducting Bonuses

2011-11-21T15:13:00.001-06:00

Background
Internal Revenue Code (IRC) S. 461 governs the timing of deduction for certain expenses incurred by accrual method taxpayers. A common expense for which many companies provide an accrual is incentive compensation. The IRS released Revenue Ruling 2011-29 on November 9, 2011, providing guidance on how a plan should be structured in order to permit a deduction in the year the services are provided.

S. 461 and its associated regulations require the following tests be considered in order to determine the timing of a deduction:

• All events must have occurred to establish the fact of the liability,

• The amount of the liability must be able to be determined with reasonable accuracy

• Economic performance must occur for the liability.

The economic performance rule as it relates to deductions for bonus payments, as defined in IRC S. 404, is straightforward. Regulations S.1.404(b)-1T prescribes that economic performance is deemed to occur in the current taxable year as long as payment is made by the 15th day of the 3rd month following such taxable year.

The New Ruling
The first test, in which all events must have occurred to establish the fact of the liability, is the focus of Rev. Rul. 2011-29. This has been a topic scrutinized in various court cases and previous Internal Revenue Service (IRS) rulings. The Washington Post Co. v. United States case allowed deduction of a bonus accrual even when the employer provided a general bonus accrual at the end of the year but did not specifically identify the bonus recipient and the amount payable to that particular recipient prior to the end of the taxable year. IRS Rev. Rul. 76-345 stated that the IRS would not follow the holding in that case. This suggested that individual recipients and the amounts payable to such recipient do need to be specifically identified prior to the end of the year in order for the all events test to be met. Rev. Rul. 2011-29 revokes Rev. Rul. 76-345.

The new ruling states that the following facts are now acceptable evidence to prove the all events test has been met in determining the timing of the deduction:

• The taxpayer’s liability to pay a minimum amount of bonuses to a group of eligible employees is fixed as the end of the year in which the services are rendered,

• The taxpayer is obligated under the program to pay the group the minimum amount of bonuses determined by the end of the taxable year, and

• Any bonus allocable to an employee who is not employed on the date on which bonuses are paid is reallocated to other eligible employees.

In order to satisfy the above conditions, the incentive compensation plan should specifically identify which employees are eligible to participate. The plan requirements should be communicated to eligible employees prior to the end of the taxable year. Lastly, the exact amount of the bonuses payable should be determinable through a formula in effect prior to the end of the taxable year. It is advisable that the plan be formally documented. If all the conditions noted further above are met, all events which fix the liability should be deemed to have occurred and the accrual should be determined with reasonable certainty. Provided the economic performance rule is also met, the tax deduction should be permitted in the year the services are provided.

Observation: Changes in a taxpayer’s treatment of bonuses to conform to this ruling constitute a change in accounting method under Revenue Procedure 2011-14. This procedure allows for an automatic accounting method change. An automatic change is permitted to be submitted with the taxpayer’s timely filed tax return, including extensions, and no user fee is required.

Limitation
A distinction should be noted with respect to bonuses paid to related parties. The related party rules under IRC S. 267 require the matching of income and deductions arising from transactions between related parties. Related parties include individuals owning more than 50% in value of the outstanding stock of the company. The law requires that even if all events have occurred to fix the liability and the economic performance rules are met, the deduction may not be claimed until the year in which the related party recognizes the income. Thus, in the instance of a bonus payment to a greater than 50% shareholder, the amounts will not be deductible by the company until the period in which the income is recognized by the shareholder.

QuickBooks Tips & Tricks: How can I change the look of the forms in QuickBooks?

2011-11-15T09:52:00.006-06:00

Intuit has updated the way you can customize forms in QuickBooks. You now have two options for customization that you can use together to make changes to your forms.

If you choose the second option, “Customize Data Layout”, it will take you to the customization options you are used to seeing in QuickBooks as shown below.

The viewing pane on the left allows you to select the fields that will appear on your form either on-screen and/or on the printed form. For example, on the screen shot above, the “REP” field is selected only to show on the screen. This field will only be visible when you are filling out the invoice. It will not print on the hard copy of the invoice itself. This allows you to specify what your customer sees and reduces the clutter on the form.

The second tab allows you to select which columns will appear on screen or on the form. You can also change the default title for fields such as “service date” to “serviced”. The order column determines the position of each column on the form. The item field is selected to show only on-screen so the first printed column on the hard copy of the invoice is the “description”.

The “Prog Cols” and “Footer” tab provide the same print and order option for Estimates, Sales Orders and the Footer.

On the final tab you can set printing options for the form. The default is to use the settings from the Printer Setup but you can choose to set a different orientation, copies etc. for this form including customizing the paper size.

The Basic Customization screen options allow you to change the font for field descriptions; apply a color scheme and select which company and transaction information will print on the form.

By selecting the Layout Designer button on the bottom of the screen, a window opens that shows the invoice as a grid with the fields currently used positioned on the grid as they appear when printed.

You can move, resize or delete the fields by selecting them one at a time; or clicking into the grid and holding the left mouse button down, then circling the fields you want to modify. When you release the mouse button the circled fields will be selected. You can move them as a group to another position on the form or delete them.

If you select the first customization option, “Create New Design” this will take you to the Intuit on-line QuickBooks Forms Customization. This expands your customization options. You can add a company logo or select a background as well as upload your own personal background.

Step two will customize the colors, fonts and company information that displays as shown below.

Step three customizes the grid style for your form and how it will print on the hard copy.

Step four shows the final result of your customizations. At this point you can confirm the final copy and apply it to your form. It will require you to sign in with the username and password you set up for your Intuit account when you installed the software.

The advantage to using this customization option is that you have many more choices available on-line from Intuit and from other users like you who are happy to share their set up.

If you would like help on setting up these forms, please call any of our QuickBooks ProAdvisors at (850) 435-8300. If you have any other QuickBooks questions or problems we will be happy to help you solve them.

**These tips are based on the 2012 version of QuickBooks.

Legislative Alert: Details on Form PF

2011-11-11T10:01:00.002-06:00

On October 26, 2011 the Securities and Exchange Commission (the “SEC”) voted and approved a new rule requiring investment advisors to report information about their private funds to the SEC. The rule, which implements Sections 404 and 406 of the Dodd-Frank Act, requires SEC-registered investment advisors with at least $150 million in private fund assets under management to periodically file a new reporting form (Form PF).

Under the rule, private fund advisors are divided by size into two broad groups, large fund advisors and smaller fund advisors. Large private fund advisors are i) those with at least $1.5 billion in assets under management attributable to hedge funds; ii) liquidity fund advisors with at least $1 billion in combined assets under management attributable to liquidity funds and registered money market funds; and iii) advisors with at least $2 billion in assets under management attributable to private equity funds. All other registered private fund advisors are considered smaller fund advisors.

The advisors group classification will determine the information and the frequency of reporting required of the advisor.

Large fund advisors will provide more information than smaller fund advisors, and the frequency of reporting depends on the type of fund the advisor manages. Large hedge fund advisors must file Form PF within 60 days of the end of each fiscal quarter. Large liquidity fund advisors must file Form PF within 15 days of the end of each fiscal quarter. Large private equity fund advisors must file Form PF annually within 120 days of the end of the fiscal year.

Smaller private fund advisors must file Form PF annually with 120 days of the end of the fiscal year.
Compliance with the Form PF filing requirements will have a two-stage phase-in period. The initial Form PF for private fund advisors with at least $5 billion in assets under management must be filed 60 days after the first fiscal quarter (or fiscal year) ending June 15, 2012. Large hedge fund advisors who have assets under management greater than $1.5 billion but less than $5 billion will be required to file their initial Form PF 60 days after 2012. Smaller hedge fund advisers and private equity advisors will be required to file their initial Form PF 120 days after the end of 2012.

Under the current proposal, Form PF requires smaller fund advisors to report only basic information regarding the private funds they advise. Smaller fund advisors are required to provide information regarding size, leverage, investor types and concentration, liquidity, fund performance, fund strategy, counter party credit risk, and use of trading and clearing mechanisms.

Large hedge fund advisors must report the basic information as required for smaller fund advisors and on an aggregate basis provide information regarding exposure by asset class, geographical concentration, and turnover by asset class. In addition, large hedge fund advisors who manage funds with at least $500 million in net asset value must provide certain information relating the individual fund’s exposures, leverage, risk profile, and liquidity.

Large private equity fund advisors must provide information regarding leverage used by their funds’ portfolio companies, use of bridge financing, and their funds’ investments in financial institutions.

Based on the proposed reporting requirement, fund advisors should contact their attorneys, auditors, prime brokers and administrators to discuss the information that these service providers have available to complete Form PF. For example, the information disclosed in the funds financial statements and tax returns can be used to meet the requirements of Form PF.

For more information, please contact Saltmarsh, Cleaveland & Gund at (850) 435-8300.

© 2011 EisnerAmper LLP

SEC Provides Disclosure Guidance Relating to Cybersecurity Risk Disclosure

2011-11-07T11:53:00.003-06:00

In today’s day and age, it’s hard to imagine any company that is not using the internet or internal technology to drive their business. However, companies, their boards and shareholders may not always understand the full extent of the risk that lies in that technology. Prompted by the irrefutable amount of attention to high-profile cybersecurity incidents, the Division of Corporate Finance of the Securities and Exchange Commission has focused on this issue and recently provided their views on registrants’ cyber risk disclosure obligations.

The Division states, “Registrants should disclose the risk of cyber incidents if these issues are among the most significant factors that make an investment in the company speculative or risky.”

Why is cybersecurity such a critical issue?
Virtually all activities today rely on computers and the internet – communication (internet, smartphones), shopping (online stores, credit cards), personal records (medical, employee and customer information), accounting records, etc. Cybersecurity entails protecting this information by protecting from, detecting, and responding to attacks.

What risks and consequences do you need to consider?
The risks companies should consider are: 1) misappropriation of sensitive data including proprietary information, 2) corrupted data and 3) operational disruption. These may be carried out by someone gaining unauthorized access or causing processing disruptions. Attacks may lead to consequences such as additional costs, lost revenues, litigation as well as reputational damage.

Which companies are most at risk?
Everyone who maintains data in an electronic environment. Zeena Patel, a leader in EisnerAmper’s Technology Audit and Advisory Services group, notes: “The Division was prompted to provide their views when several large companies were involved in significant attacks. However, data shows that criminals are just as likely to invade smaller and medium-sized organizations who may not have the resources to detect and prevent attacks quickly.”

What disclosures may be required?
The guidance, which does not change the existing rules and regulations, requires companies to disclose any aspects of a company’s business that could have material costs and consequences.

A significant attack, or high risk of attacks (even if currently undetected), may require quantitative and qualitative information within the “Risk Factor” disclosure.

Further consideration must also be given as to the inclusion of costs and consequences in Management’s Discussion and Analysis and Financial Statements.

Lastly, further, lacking operating cybersecurity controls may lead to ineffective Disclosure Controls and Procedures.

How should companies respond to the guidance?
Zeena further states: “Companies should be preparing a risk assessment which also includes third-party providers. Understanding the magnitude and likelihood of potential attack within your current controls will allow you to determine your disclosure requirements.”

The guidance can be found at http://www.sec.gov/divisions/corpfin/guidance/cfguidance-topic2.htm

For more information, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.

© 2011 EisnerAmper LLP

QuickBooks Tips & Tricks: How do I get the technical information on my QuickBooks installation?

2011-11-01T09:29:00.001-05:00

There are two screens accessible from within QuickBooks that will provide the technical information on your installation. The first is the Product Information Screen. You can access this screen by pressing the “F2” function key on your keyboard while in QuickBooks. The following Product Information will come up:

This screen will provide you with your registration and product numbers for the installation. It will also record all the release updates that are installed from the first to the latest. These are the Automatic Updates Intuit periodically sends. When there is a new release available, at your next logon to QuickBooks you will receive a message that there is an update to install. It is a good idea to install these updates as they are provided to fix problems that users like you bring to Intuit’s attention. All during the year Intuit is reviewing and testing the current version of QuickBooks to make sure it provides the best features to help you in your business. These updates are valuable tools to help you keep QuickBooks functioning at its best.

The second screen to provide technical information is the Tech Help screen. You can access this information by first bringing up the Product Information screen from the F2 function screen. When that opens, press your F3 function key and the following Tech Help screen appears.

The first screen will give you the system information for this installation of QuickBooks. This will be helpful when you call our QuickBooks Pro-advisors for support. Software processing is very dependent on the surrounding hardware and operating system environment. When problems come up it is essential to have as much information available to help solve the problem. The other tabs on this screen provide additional information to help with your support as well.

One of the most important screens is accessed by the Open File tab. This gives you access to various log files generated as you process your work in QuickBooks. If you receive an error message or you are having problems with transactions this screen will provide event information on what happened and when. The “QBWIN.LOG” file shown below will open as a text file and lists any exceptions that occurred during processing.

For more information and help on the technical side of QuickBooks, please call one of our QuickBooks Pro-advisors at (850) 435-8300. We will be happy to help keep your QuickBooks processing smooth.

"Cue Ball Bald" for Manna: Before and After!

2011-10-26T15:46:00.001-05:00

Last Thursday, our own Frank Riehle promised to go "Cue Ball Bald" for Manna Food Bank if the employees of Saltmarsh raised $1,000 in one day. Here are the results of his promise! You're a great sport, Frank!

BEFORE

AFTER

2011 Saltmarsh Mexican Fiesta Cook-off for Manna Food Bank

2011-10-26T14:43:00.002-05:00

Last Friday, the Saltmarsh held our annual cook-off to benefit Manna Food Bank. This year's theme was Mexican, so naturally we took time out of our busy schedules to enjoy a fiesta!

Sheldon Bernau headed up the fundraising effort, and through generous donations by the staff, $2,135 was raised to help Manna. Frank Riehle challenged the firm to raise $1,000 in one day by promising to go "Cue Ball Bald" for Manna. Pictures of his haircut to come shortly!

Many delicious dishes were tasted, and after voting by the judges and staff, these dishes reigned supreme!

People's Choice:
Savory category - Carnitas Verde (pork)- Beth Varhalla

Sweet category - Cuervo Margarita Cupcakes- Allison Jones

Judges' Choice:
Savory, Most Original and Judges Choice - Chipolte Chicken Tostados- Lisa Fairbanks

Savory, Spiciest -Mexican Casserole - Angelika Cope

Sweet, Most Original - Cuervo Margarita Cupcakes - Allison Jones

Sweet, Judges Choice - Chocoflan Bundt Cake- Whitney Harrington

Sweet, Spiciest - Chili Chocolate Cupcakes- Angelika Cope

Thanks so much to our Judges, Ted Gund, Kevin Jones, Philip DeBoer, Cederic Durre, and Brian Fulk!

Saltmarsh Wins 1st Place for Small Business at YMCA Corporate Cup Games

2011-10-24T16:26:00.001-05:00

Saltmarsh won 1st place in the small business division at the 2011 YMCA Corporate Cup games which were held at the University of West Florida on October 22, 2011.

Members of the winning team included:
Aimee Brady, Angelika Cope, Cedric Durre, Christina Maslen, Christopher Stark, Danny Brady, Diane Martinez, Jared Tyler, Kate Tyler, Leslie Jackson, Lisa Fairbanks, Rob Harms, Robby Hinson, Robin Larrieu, Ron Jackson, Stephanie Hirst, Stephen Hirst, Stephen Reyes

1st place events:
Obstacle course
Crazy Raft Relay
4x50 Quick Change Relay

2nd place events:
Eggesecutive Toss
3rd place events:
One-Mile Run
Closet to the Pin
Pumpkin Swim Relay

Go Team Saltmarsh! We can't wait to participate again next year!

QuickBooks Tips & Tricks: What is the best backup to use and how often should I backup?

2011-10-20T10:25:00.003-05:00

Most people do not think about backup files until they need one in an emergency. That is when they discover whether they have done backups frequently enough.
The best way to determine how often to backup is to think of a system crash. How much data entry do you want to have to redo? If you process many transactions in one day then a daily backup is in order. If you go several days without processing then a weekly or biweekly schedule is appropriate. Make sure that you backup often enough that any data entry needed after restoring from your most recent backup is minimal.

QuickBooks 2011 offers several types of backups. Under File>Create Backup on the Menu Bar you can select to create a full backup. This includes all program and data files. The first screen gives you the option to create a local (on your system) backup or if you have purchased the on-line backup you can backup to Intuit’s server. Most often you will be selecting the local backup.

The options button allows you to select where to save the backup file as shown below.

Use the browse button to select the place to store your backup. You can select your hard drive but this won’t help in the event you have a system crash. The best option is to save to an external drive; a thumb drive, CD or other external hard drive.
You can then setup the other options on the screen and save them for future backups. The next screen allows you to backup right then, or save the backup schedule and also do a backup, or just schedule future backups. Remember that this backup file will be big; it includes program files and data files.

Other backup options are available under File>Create Copy on the Menu Bar.

The full backup option is available here as well but one of the best options is the Portable Company file. It is named portable because it is a smaller file that just backups the data files. This means you can sometimes email a portable file if the original file is not too big. You can save it easily to a thumb drive and work on it from another location as long as no one will access the original file and make changes. You can’t merge portable or backup files into the original file. You would have to overwrite the original with these backups.

The other option is to make an Accountant’s Copy which can be merged back into the original file. This is used to send the file to your accountant for review which will keep transactions in the review period from changing in the original file. It sets a closing date that will not allow changes to be made before that date. When we send the transfer file back you can import all changes that were made while you continued to work in the original file and the closing date restrictions will be lifted.

Please call any of our QuickBooks ProAdvisors if you would like more detail on these tips or if you have any other QuickBooks questions. (850) 435-8300

**These tips are based on the 2011 version of QuickBooks.

Treasury Issues Proposed Regulations Addressing Tax Treatment of Credit Default Swaps

2011-10-14T09:14:00.005-05:00

On September 15, 2011, the Treasury issued proposed regulations which would include Credit Default Swaps (“CDS”) in the definition of a Notional Principal Contract (“NPC”) under Treas. Regulation 1-446.3. The proposed regulations also confirm that swaps, including a CDS, would not fall under the Section 1256 regime and proposes significant changes to the existing NPC regulations. The proposals also provide conforming revisions to other relevant regulations.

What is a Credit Default Swap?

Seven years ago, the Treasury issued Notice 2004-52 seeking comments from users and their advisors on how a CDS should be treated for tax purposes. The popular view was that a CDS should be considered an NPC while others suggested treatment as option, or an insurance product, or a guarantee. These new proposed regulations have ended this debate. The proposed regulations, when finalized, will treat most CDS contracts as NPCs.

What changes have been made to the existing NPC regulations?

Under existing law, an NPC is defined as a financial instrument that provides for the payment of amounts by one party to another at specified intervals, calculated by reference to a specified index upon a notional amount, in exchange for specified consideration or a promise to pay a similar amount. The proposed regulations revise this definition by stating that an NPC requires two or more payments to a counterparty. However, the “fixing” of an amount is treated as a payment even if the actual payment is to be made at a later date. The practical effect of this new definition is to prohibit creating an instrument, such as a “bullet” swap, where all of the anticipated payments are netted and made as one back end payment. Rather than looking at the sole ultimate payment, the proposed regulations require an understanding of the calculation of the expected payment. To the extent the ultimate payment consists of two or more calculations (i.e., dividend payments plus change in value) then the instrument will be considered an NPC.

What are some of the negative tax implications of a NPC?

As more instruments will fall under the expanded definition of an NPC, it is important to understand the potential negative tax treatment that these instruments carry. Under existing regulations most NPC payments, excluding a termination payment (i.e., an unscheduled payment made to extinguish the remaining obligations of any party under the contract), will be considered a Section 212 deduction if the taxpayer is not considered to be engaged in a trade or business. Section 212 deductions are considered miscellaneous itemized deductions at the individual tax level, subject to limitation in part or in full, depending on the taxpayer’s facts and circumstances. In addition, these Section 212 deductions are not deductible in many state jurisdictions.

In addition to taking into account the payments described above, proposed regulations issued in 2004 require taxpayers to adopt a method of accounting to take into account contingent nonperiodic payments (i.e., a final swap payment at end of the contract). Prior to issuance of these 2004 regulations, most taxpayers adopted a “wait and see” method on these payments. Under these proposed regulations, taxpayers are required to utilize the complex noncontingent swap method or, as an alternative, adopt a mark-to-market method. In practice, most taxpayers utilize a mark to market approach. This approach requires a taxpayer to annually include as “other” ordinary income any unrealized appreciation each year. Unrealized depreciation would also need to be taken into account as an expense. However, to the extent the taxpayer was not engaged in a trade or business, this amount would be included as a Section 212 deduction. Significant “whipsaw” can result for any taxpayer not engaged in a trade or business, as a taxpayer may be required to pick up ordinary income in a year of appreciation but not get the benefit of the deduction for a future’s year depreciation.

The newly issued proposed regulations do not address whether or not a CDS would be required to adopt the timing and inclusion rules of contingent nonperiodic payments. Presumably, if a CDS contract is now considered to be a NPC, the argument not to consider these as contingent nonperiodic payments are much weaker than were prior to issuance of the new proposed regulations.

To the extent that a taxpayer has not treated a CDS as a NPC, they may need to consider the application of the change in accounting method rules and filing requirements.

Exclusion of Swaps from Section 1256

The proposed regulations have clarified that “swaps” and “similar arrangements” are excluded from Section 1256. There has been previous uncertainty as to the treatment of swaps under provisions of the Dodd-Frank Act.

When is the effective date of the Proposed Regulation?

A hearing is scheduled on the proposed regulation for January 19, 2012. The regulations are intended to be effective for contracts entered into on or after the date the final regulations are published.

For further questions, please contact Saltmarsh, Cleaveland & Gund (850) 435-8300.

© 2011 EisnerAmper LLP

Saltmarsh Technology Funnel and Community Bank Executive Forum

2011-10-12T14:30:00.001-05:00

On Thursday, October 6th and Friday October 7th, Saltmarsh hosted the annual Technology Funnel and Community Bank Executive Forum at the Tampa Club in Tampa, Florida. More than 50 participants heard timely information regarding technology in community banking during the Thursday session, while more than 90 bank executives gathered for Friday's event.

To download notes from both events, visit our website at http://thebankadvisors.com/notes/default.asp

Our Sign at the Tampa Club ...

Technology Funnel Participants

Thanks to all of our participants! We look forward to seeing you again next year!

QuickBooks Tips & Tricks: What’s new in QuickBooks 2012?

2011-10-07T09:45:00.004-05:00

In September or October each year Intuit releases a new version of their QuickBooks software. They improve many existing features and add others for the first time. Many of these changes are a direct result of feedback from users like you. That is why it is important to let them know about problems or suggestions you have using the options provided with the “Send Feedback Online” under the “Help” option on the grey menu bar.
The following is a quick rundown of the new features for QuickBooks 2012.

1. There is now a calendar you can access from within QuickBooks. Under the View option you can add a calendar icon to the icon bar. It is also accessible under Company on the menu bar. What do you get with this new feature? The calendar will track the transactions entered and due. You can also add To Do items here and track any appointments. Under the “Show” drop down you can select from every type of transaction QuickBooks processes to refine your view. It is an easy way to get a picture of your daily activity by day.

2. The Excel export now allows you to update existing reports with new data. When you click on the “Excel” button on the report menu bar, you are given the options to either create a new worksheet or update an existing one. If you choose to update, the following screen will appear:

Simply browse out to the report you want to update, select the correct worksheet and click on the Export button. QuickBooks will update the existing report with new data. Be aware that it may take some time for the update to complete depending on the complexity of the report and how much new data there is.

3. If you use memorized transactions to enter your recurring transactions (and you should to save time – ask us how if you’re not sure what to do!) you now have the option which transactions to enter when you open your file and which to postpone until a later time. You also see individual transaction detail so you can decide which transactions to enter at that time as shown below.

4. QuickBooks has upped the technological component with 2012. You can now scan from within the program. When you click on the Docs icon or the Attach button when in an invoice or other form, the pop up window below appears:

After you click on the scan option, the QuickBooks Scan Manager will open. QuickBooks then links to your attached scanner and begins the scan process. When it is completed you can attach the document. In addition to the scan feature, you still have the option to attach files from your computer and the document center.

5. There is a new Lead Center in QuickBooks that helps you track new contacts. You can access this center under “Company>Lead Center” on the menu bar. You can manually enter leads directly in the lead center or import a list from Excel. The center will keep all your leads organized and you can convert a lead to a customer when you land the business.

6. You can now create a credit memo from the original invoice. This saves time and possible errors because it will enter the item data from the original invoice when you click on “Create>Credit Memo” for this Invoice. You can delete or edit lines in the credit memo as needed.

7. There is a new category in the Report Center called Contributed. This section allows you to browse reports created by other users and Intuit that are not included as standard reports. In addition to viewing the reports you can read the details of report set up and any reviews that other users submit. You have the opportunity to rate the report and can add it to your favorites tab in the report center.

Now if you create a report that meets a particular need you have in your business it may also meet the needs of other QuickBooks users and you can share it with them. On the report menu there is a new button “Share Template”. It becomes active after you modify a report. When you click to share the report the window shown below opens.

This first tab is the basic information for the report. Notice that you can share this without using your name if you choose. The email address is for Intuit to contact you if they have any questions.

The second tab in the window is shown below. It allows you to select the category for the report and to indicate what industries might be interested in using it.

Please call any of our QuickBooks ProAdvisors if you would like more detail on these tips or if you have any other QuickBooks questions at (850) 435-8300.

**These tips are based on the 2012 version of QuickBooks.

IRS Announces 2011 Voluntary Compliance Program Focused on Employee vs. Independent Contractor Exposure

2011-10-03T09:47:00.003-05:00

On September 21, 2011, the Internal Revenue Service (IRS) unveiled a Voluntary Compliance Program (VCP) that offers relief for businesses that may have misclassified workers as independent contractors, rather than employees, and so are potentially liable for significant additional taxes, penalties, and interest.

Background
Prior to announcement of the VCP, the IRS and the Department of Labor (DOL) stepped up joint enforcement efforts by signing a new memorandum of understanding to strengthen information sharing on enforcement actions aimed at misclassified workers. Several states are parties to the agreement including New York and Connecticut.

Observation: This enforcement issue has become more urgent as both federal and state authorities seek additional tax revenues to close large current and projected budget deficits.

V SummaryCP
The VCP is available for employers that are currently treating (perhaps incorrectly) workers or a class of workers as independent contractors, but want to prospectively reclassify the workers as employees for federal employment tax purposes. The IRS retains discretion over whether to accept an employer into the VCP.

VCP Consequences
Under the VCP, eligible taxpayers will generally be entitled to settle their employment tax liability under a single-year assessment of employment taxes of 10% of the Internal Revenue Code Section 3509 rates applicable to the most recently closed tax year. A 10.68% effective rate applies under the VCP in 2011, since the most recently closed tax year is 2010, and a 10.28% effective rate will apply in 2012. A rate of 3.24% also applies to compensation above the Social Security wage base in both years. These rates include federal income tax withholding and employer/employee social security and Medicare tax.

Observation: Employers in the program will generally pay an amount equal to just over 1% of the wages paid to reclassified workers for the most recent tax year and will eliminate the potential exposure for all prior years. It is unclear how states will react to the VCP program.

VCP Qualifications
The VCP is open to businesses, including exempt organizations, which have treated workers as independent contractors in the past, have filed Forms 1099 for the previous three years, and are not currently under a worker classification audit by the IRS, the DOL, or a state agency. An employer previously audited by the IRS or DOL concerning worker classification is eligible for this Program if it has complied with the results of such an audit.
Under the Program, an employer does not have to reclassify all of its workers who are currently treated as non-employees. However, once an employer chooses to reclassify certain of its workers as employees, all workers in the same class – i.e., workers who perform the same or similar services – must be reclassified as employees.

Employers apply for the program by filing Form 8952, Application for Voluntary Classification Settlement Program. This form must be filed at least 60 days before the taxpayer wants to begin treating the workers as employees.

Observation: The IRS has indicated that an employer that wants to begin treating a class or classes of workers as employees for the fourth quarter of 2011 may do so, but should file the Form 8952 as soon as possible.

Additional VCP Consequences
In addition to filing Form 8952, employers that participate must sign a closing agreement with the IRS extending the statute of limitations from three years to six years for the first three calendar years beginning after the agreement is signed. The agreement also requires the taxpayer to treat the same class of workers as employees in the future.
Observation: Tax professionals can help businesses and exempt organizations evaluate whether the VCP is feasible, appropriate, and cost effective for recipients of services from workers previously treated as independent contractors. Such a review is appropriate in order to make certain that businesses are not entering the VCP when their contractors are already appropriately classified.

EisnerAmper LLP
This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

Fort Walton Beach - Annual Fun Day

2011-09-20T09:42:00.001-05:00

The FWB office enjoyed their annual Fun Day on Friday. The afternoon began with lunch at Moe's, followed by bumper boats, putt putt golf, race cars and bumper cars at The Track and ended with ice cream at Marble Slab. The coveted Fun Day trophy passed from Teri Elkins to Nicole Fife to proudly display for the next year. Thank you to Glenn for another great Fun Day!

Plan Sponsors Affected by Hurricane Irene Granted Additional Time to File Form 5500 and, in Certain Cases, to Fund Their Plans

2011-09-15T11:20:00.002-05:00

As part of Internal Revenue Service (IRS) tax relief related to individual and business taxpayers impacted by Hurricane Irene, where retirement plan sponsors – or the plan sponsor’s records necessary to complete the return – are located in the federally designated disaster areas listed in IR 2011‐87 (originally published September 1, 2011 and subsequently updated to reflect new areas for relief), the sponsors will have until October 31, 2011 to file annual Form 5500 for their retirement and welfare benefit plans. This extension applies to Forms 5500 that had a due date for filing after August 26, 2011 and before October 31, 2011.

Plan Sponsors Qualifying for Relief
The U.S. Department of Labor (DOL) website discusses Disaster Relief Information as follows: “Filers affected by Presidentially-declared disasters are plan administrators, employers, and other entities who file Form 5500 series that are located in the areas designated as federal disaster areas (as listed in IRS’s announcements). These special extensions also apply to filers located outside the designated disaster areas who are unable to obtain the information necessary for filing from service providers, banks or insurance companies whose operations are directly affected by the disasters.”

Impact on Plan Funding and Deductions
Because the tax relief granted by IRS includes an extension of time to file business and individual tax returns, plan sponsors will be able to take a tax deduction for contributions made to their plans for the prior period if the contributions are deposited by the new extended due date of the return and provided they have met the other requirements of Internal Revenue Code (IRC) Section 404(a).

However, sponsors of plans that are subject to the minimum funding provisions of IRC Section 412 – such as defined benefit plans, cash balance plans, and money purchase pension plans – are still required to fund these plans within 8½ months after the plan’s year end, as IRS has not granted additional time to meet the minimum funding requirements under IRC section 412. For calendar year plans, this means that contributions will still need to be made by September 15, 2011 to meet the minimum funding requirements.

Designated Disaster Areas
Plan sponsors – or those with necessary records, as noted further above – located in designated counties (see list below) in Connecticut, Massachusetts, New Jersey, New York, North Carolina, Vermont, and Puerto Rico will receive the extension of time to file. The IRS may announce additional relief for taxpayers in other areas as damage assessments continue and encourages plan sponsors and tax practitioners to monitor Tax Relief in Disaster Situations (http://www.irs.gov/newsroom/article/0,,id=108362,00.html) for updates.

As of September 8, 2011, the IRS filing extension applies to the following counties and municipalities:

• Connecticut: Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland and Windham
• Massachusetts: Berkshire and Franklin
• New Hampshire: Carroll and Grafton

• New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union, and Warren

• New York: Albany, Clinton, Delaware, Dutchess, Essex, Greene, Montgomery, Nassau, Orange, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Sullivan, Suffolk, Ulster, Warren, and Westchester

• North Carolina: Beaufort, Bertie, Brunswick, Camden, Carteret, Chowan, Craven, Currituck, Dare, Duplin, Edgecombe, Gates, Halifax, Hertford, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Perquimans, Pitt, Tyrrell, Vance, Warren, Washington, and Wilson
• Vermont: Addison, Bennington, Caledonia, Chittenden, Orange, Rutland, Washington, and Windsor

• Puerto Rico: Arroyo, Aguas Buenas, Caguas, Canovanas, Carolina, Cayey, Cidra, Coamo, Comerio, Humacao, Jayuya, Juncos, Loiza, Luquillo, Orocovis, Patillas, Ponce, and San Juan.

Reference to Form 5500 can be found in the announcement under the bold caption “Grant of
Relief.” Whatever special extension of filing Form 5500 is granted by the IRS will also be automatically permitted by the DOL and the Pension Benefit Guarantee Corporation (PBGC). Therefore, whether or not DOL and/or PBGC announce a special extension, Form 5500 series filers to whom the IRS has granted a special extension may file their annual returns/reports by the extended due date stated in the IRS’s announcement.

Filing Form 5500 Under the Relief
Plan sponsors should follow the instructions to Form 5500 series under the section “Extension of Time to File” regarding how to file the forms when special extensions are granted. Essentially, the guidance in the instructions is included under the caption “Other Extensions of Time” which advises that, if a plan sponsor is relying on an announced special extension, the sponsor should check the appropriate box on Form 5500 which is Part I, line D, and enter a description of the announced authority for the extension.

Although there is no specific language required under the current extension, the announced authority could be described as follows: “Special extension pursuant to federally designated disaster areas as listed in IR 2011‐87, originally published September 1, 2011 and subsequently updated to reflect new areas for relief, grants until October 31, 2011 to file annual Form 5500 for a retirement and welfare benefit plan.”

If you have any questions regarding this extension, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.
© 2011 EisnerAmper LLP

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

QuickBooks Tips & Tricks

2011-09-02T09:01:00.005-05:00

What is the best way to avoid making mistakes when processing transactions? The best and easiest way to avoid common mistakes in transaction processing is to use the Home Page. In QuickBooks 2006, Intuit combined all the old navigator pages into one Home Page. This page is an excellent visual guide to help you decide how to go about generating your transactions.

The golden rule is to NEVER cross the lines on the Home Page. For instance, if you enter a vendor bill, do not cross the lines and go to Write Checks to print the check for that bill. Always follow the line from your starting point, Enter Bills, to the next step, Pay Bills.

If you enter a bill and then use the Write Checks option to pay it, you will double your expense and your Accounts Payable account will continue to grow.

If you use the Pay Bills option to generate your vendor checks as shown below, you will reduce the balance of your payable account and the expense will only be recorded through the Bill you enter.

This rule of thumb works for each section on the Home Page including the Customers and Employees centers. If you follow the lines like a map you will reduce the number of errors that occur when processing transactions in QuickBooks.

Please call any of our QuickBooks ProAdvisors at (850) 435-8300, if you would like more detail on these tips or if you have any other QuickBooks questions.

QuickBooks Tips & Tricks

2011-08-17T11:09:00.001-05:00

Why do I have Accounts Receivable/Accounts Payable balances on my cash basis balance sheet (CBBS)? There are several reasons this may occur. If you have a transaction that is linked to a balance sheet account instead of an income or expense account, that transaction will appear as an open invoice or bill in Accounts Receivable or Accounts Payable. If you enter an invoice or bill and then enter a deposit without a payment or write a check instead of creating a bill payment, the transactions will not have a link to clear their balance and these transactions will also appear on the cash basis report as open transactions.

To fix these problems there are some reports you can run that will identify the transactions that need to be cleared.

Open Invoices report

1. Choose Reports > Customers & Receivables > Open Invoices.
2. Click the Date drop-down arrow and select the correct date.
3. Click Modify report, Advanced, and then click As of Report Date.

The payments that appear on the report (included in the CBBS) have been received but not applied to an invoice.

Unpaid Bills report

1. Choose Reports > Vendors & Payables > Unpaid Bills Detail.
2. Click the Date drop-down arrow and select the correct date.
3. Click Modify report, Advanced, and then click As of Report Date.

The bill payment checks that appear on the report (included in the CBBS) have been entered but not applied to a bill.

Customer Transaction Detail report

Each customer with a nonzero subtotal is affecting your A/R balance. To identify customer transactions that are causing an A/R balance to show on your CBBS, run the following report:

1. Choose Reports > Company & Financial > Balance Sheet Standard.
2. Click Modify Report.
3. On the Display tab, for Report Basis select Cash.
4. Delete the From date, keep the To date, and click OK.
5. To bring up the Transactions by Account report, double-click (QuickZoom) the A/R amount.
6. Click Modify Report.
7. On the Display tab, delete the From date and keep the To date.
8. Click Advanced, select the Open Balance / Aging Report Date option, and click OK.
9. Select Customer in the Total by field.
10. Click the Filters tab:
           a. In the Filter list, click Account.
           b. Click the Account drop-down arrow and select All Accounts Receivable.
           c. Select No for Include Split Detail.
           d. In the Filter list, select Paid Status, select Open, and then click OK.
           e. (Optional) Click Memorize to save this report to use again.

Vendor Transaction Detail report:

Each vendor with a nonzero subtotal is affecting your A/P balance. To identify vendor transactions that are causing an A/P balance to show on your CBBS, run the following report:

1. Choose Reports > Company & Financial > Balance Sheet Standard.
2. Click Modify Report.
3. On the Display tab, for Report Basis, select Cash.
4. Delete the From date, keep the To date, and click OK.
5. To bring up the Transactions by Account report, double-click (QuickZoom) the A/P amount.
6. Click Modify Report.
7. On the Display tab, delete the From date and keep the To date.
8. Click Advanced, select the Open Balance / Aging Report Date option, and click OK.
9. In the Total by field, select Vendor.
10. Click the Filters tab:
       a. In the Filter list, click Account.
       b. Click the Account drop-down arrow and select All Accounts Payable.
       c. For Include Split Detail, select No.
       d. In the Filter list, select Paid Status, select Open, and then click OK.
       e. (Optional) Click Memorize to save this report to use again.

Please call any of our QuickBooks ProAdvisors at (850) 435-8300, if you would like more detail on these tips or if you have any QuickBooks questions.

Lee Bell Quoted in Tampa Bay Business Journal

2011-08-15T09:24:00.002-05:00

Tampa, FL -- Shareholder Lee Bell was quoted in an article reporting on community banks in the Tampa metropolitan area in the Friday, August 12 edition of the Tampa Bay Business Journal.

Click Here to view the entire article, including Lee Bell's quote on bank portfolios.

Saltmarsh Hosts Anti-Money Laundering Seminar

2011-08-12T09:41:00.000-05:00

Orlando, FL - Saltmarsh hosted (together with the Anti-Money Laundering Association and the Association of Certified Fraud Examiners) a seminar, Understanding and Detecting Money Laundering - for financial institution clients and friends. The speaker was Jonathan Turner. Mr. Turner has appeared on ABC News and CNN and is an expert in the investigation and documentation of financial fraud. He brought his entertaining and informative presentation about how money is laundered - great and timely information.

Stephen Macbeth, Dede Nolan, Suzi Fernandez, William Borde, Julie Sbrocco, Kristen Stogniew, Nathan Botts and Lee Bell of Saltmarsh, Cleaveland & Gund were in attendance as well.

Protecting Your Financial Personal Information

2011-08-05T16:37:00.001-05:00

Phishing sounds like something you might enjoy doing on a hot summer day. Phishing, unlike fishing, can be dangerous…that is to your personal information. Phishing is a scam typically carried out through unsolicited email or through websites claiming to be legitimate sites which lure the unsuspecting victims to provide personal information such as social security numbers, credit card numbers or passwords. Be aware that the IRS does not initiate taxpayer communication through email or request detailed personal information through email. If you receive a suspicious IRS communication, do not reply, open attachments, or click on links, instead simply forward to phishing@irs.gov and put "suspicious email or website" in the subject line and then delete the email. The IRS tries to respond to these suspicious emails within 24 hours, but not necessarily with an email. If a website was involved, check to see if it was shut down.

IRS Provides Limited Extension of August 31, 2011 Deadline for Offshore Voluntary Disclosure Initiative

2011-08-03T15:57:00.001-05:00

Background

For U.S. taxpayers not fully disclosing their offshore financial accounts on required foreign bank account reports (FBARs) for part or all of the eight years 2003-2010, the U.S. Treasury Department has adopted a new Offshore Voluntary Disclosure Initiative (OVDI) limiting penalties on such late disclosures. This has been scheduled to close on August 31, 2011, by which date all documents must be submitted by the taxpayer.

Observation: This August 31, 2011 deadline has not provided taxpayers and their advisors much time to enter the new OVDI and provide all relevant documents to the Internal Revenue Service (IRS).

Limited extension of deadline

Recognizing that taxpayers may not be able to make a complete submission by August 31, 2011, the IRS has updated its Frequently Asked Questions and Answers under the OVDI as follows:

“FAQ 25.1. A taxpayer may request an extension of the deadline to complete his or her submission if the taxpayer can demonstrate a good faith attempt to fully comply with FAQ 25 [discussing submissions required to enter the OVDI] on or before August 31, 2011.”

Observation: The FAQ contemplates a maximum extension of up to 90 days, or until November 30, 2011.

The FAQ provides three conditions to such an extension:

1. Filing of properly completed and signed agreements to extend the period of time to assess tax (including tax penalties) and to assess FBAR penalties;

2. Including in the request for extension a statement of those items that are missing, the reasons why they are not included, and the steps taken to secure them; and

3. The request being made in writing and sent on or before August 31, 2011 to: Internal Revenue Service, 3651 S. I H 35 Stop 4301 AUSC, Austin, TX 78741, ATTN: 2011 Offshore Voluntary Disclosure Initiative.

Observation: The FAQ does not provide examples of reasons for missing items and steps taken to secure them, which will help demonstrate a good faith attempt to comply. However, many taxpayers and advisors have experienced difficulties or delays in obtaining complete details of foreign financial accounts, in spite of written and other inquiries to institutions holding those accounts.

If you have any questions regarding the above, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.
© 2011 EisnerAmper LLP

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

Hager and Stogniew - Two Good Cops at the Florida School of Banking

2011-08-01T13:20:00.001-05:00

Gainesville, FL - Two of our banking shareholders, Alex Hager and Kristen Stogniew kicked off the 2011 Florida School of Banking for it its Junior class today on the campus of the University of Florida. Alex and Kristen covered the topics of, "How to Survive a Safety & Soundness Exam" and "How to Survive a Compliance Exam". There was no 'good cop/bad cop' here as they worked together to shed light on regulatory compliance to the future leaders of Florida banking.

New Guidance Phases in FATCA Implementation

2011-07-19T14:11:00.002-05:00

Recently, the IRS issued Notice 2011-53, the third Notice that addresses the Foreign Account Tax Compliance Act (FATCA), which was enacted in March 2010. Title V of that Act was about making sure that Americans could not hide assets in foreign bank accounts and essentially evade U.S. tax laws.

FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. In order to avoid being withheld upon under FATCA, a participating FFI will have to enter into an agreement with the IRS to:

• Identify U.S. accounts,

• Report certain information to the IRS regarding U.S. accounts, and

• Withhold a 30% tax on certain payments to non-participating FFIs and account holders who are unwilling to provide the required information.

FFIs that do not enter into an agreement with the IRS will be subject to withholding on certain types of payments, including U.S. source interest and dividends, gross proceeds from the disposition of U.S. securities, and pass-thru payments.

The prior two Notices, 2010-60 and 2011-34 outlined the way in which the IRS expects to implement the law. These are the basis for "final regulations."

Many banks, brokers, funds and others affected by the impending regulations lobbied for repeal or significant revisions More recently, there have been calls for some kind of phased implementation to allow firms to assess the nature and scope of changes they need to make both to client-facing procedures such as account opening, and to back office systems which, in some cases, may need to be re-built.

Notice 2011-53 essentially spreads the implementation period out across 2013 to 2015 with different bits of the regulation coming into force at different times.

Notice 2011-53 provides a more workable timeline for FFIs and U.S. withholding agents to implement the various requirements of FATCA. Specifically, the notice phases in the implementation of FATCA in the following manner:

• An FFI must enter an agreement with the IRS by June 30, 2013, to ensure that it will be identified as a participating FFI in sufficient time to allow withholding agents to refrain from withholding beginning on January 1, 2014.

• Withholding on U.S. source dividends and interest paid to non-participating FFIs will begin on Jan. 1, 2014, and withholding on all withholdable payments (including on gross proceeds) will be fully phased in on Jan. 1, 2015.

• Due diligence requirements for identifying new and pre-existing U.S. accounts (including certain high-risk accounts) will begin in 2013. Reporting requirements will begin in 2014.

• For purposes of the Notice, high risk accounts include private banking accounts with a balance that is equal to or greater than $500,000.

If you have any questions, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.

© EisnerAmper LLP 2011

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

Discipline: Your Secret Weapon

2011-07-15T10:59:00.002-05:00

Working with markets, understanding risk and return, diversifying and portfolio structure – we’ve heard the lessons of sound investing over and over. But so often the most important factor between success and failure is ourselves.

The recent rocky period in financial markets has brought to the surface some familiar emotions for many, including a strong urge to try to time the market. The temptation, as always, is to sell into falling markets and buy into rising ones.

What’s more, the most seemingly “well-informed” people – the kind who religiously read the financial press and watch business television – are the ones who feel most compelled to try and finesse their exit and entry points.

This suspicion that “sophisticated” investors are the most prone to try and outwit the market was given validity recently by a study, carried out by London-based Ledbury Research, of more than 2,000 affluent people around the world.1

The survey found 40 per cent of those questioned admitted to practising market timing rather than pursuing a buy-and-hold strategy. Yet the market timers were more than three times more likely to believe they traded too much.

“On the face of it, you might think that those who were trading more actively would be more experienced, sophisticated and able to control themselves,” the authors said. “But that seems not to be the case – trading becomes addictive.”

This perspective has been reinforced recently by one of the world’s most respected policymakers and astute observers of markets – Ian Macfarlane, the former governor of the Reserve Bank of Australia and now a director of ANZ Banking Group.

In a speech in Sydney2, Macfarlane made the point that the worst investors tend to be those who follow markets and the financial media fanatically, extrapolating from short-term movements big picture narratives that fit their predispositions.

“Most people experience loss aversion,” he said. “They experience more unhappiness from losing $100 than they gain in happiness from acquiring $100. So the more often they are made aware of a loss, the unhappier they become.”

Because of this combination of hyper-activity, lack of self-control and loss-aversion, investors end up making bad investment decisions, Macfarlane noted.

These behavioural issues and how they impact on investors are well documented by financial theorists. Commonly cited traits include lack of diversification, excessive trading, an obstinate reluctance to sell losers and buying on past performance.3

Mostly, these traits stem from over-confidence. Just as we all tend to think we are above-average in terms of driving ability, we also tend to over-rate our capacity for beating the market. What’s more, this ego-driven behaviour has been shown to be more prevalent in men than in women.

A study quoted in The Wall Street Journal4 showed women are less afflicted than men by over-confidence and are more likely to attribute success in investment to factors outside themselves – like luck or fate. As a result, they are more inclined to exercise self-discipline and to avoid trying to time the market.

The virtues of investment discipline and the folly of ‘alpha’-chasing are highlighted year after year in the survey of investor behaviour by research group Dalbar. The latest edition showed in the 20 years to the end of December 2010, the average US stock investor received annualised returns of just 3.8 per cent, well below the 9.1 per cent delivered by the market index, the S&P-500.5

What often stops investors getting returns that are there for the taking are their very own actions – lack of diversification, compulsive trading, buying high, selling low, going by hunches and responding to media and market noise.

So how do we get our egos and emotions out of the investment process? One answer is to distance ourselves from the daily noise by appointing a financial advisor to help stop us doing things against our own long-term interests.

An advisor begins with the understanding that there are things we can’t control (like the ups and downs in the markets) and things we can. Some of the things we can control including ensuring our investments are properly diversified – both within and across asset classes – ensuring our portfolios are regularly rebalanced to meet our long-term requirements, keeping costs to a minimum and being mindful of taxes.

Most of all, an advisor helps us all by encouraging the exercise of discipline – the secret weapon in building long-term wealth.

Article by Jim Parker, Vice President, DFA Australia Limited
June 2011

1 ‘Risk and Rules: The Role of Control in Financial Decision Making’, Barclays Wealth, June 2011 2 ‘Far Too Much Economic News for Our Own Good’, Ross Gittins, Sydney Morning Herald, June 13, 2011 3 Barberis, Nicholas and Thaler, Richard, ‘A Survey of Behavioral Finance’, University of Chicago 4 ‘For Mother’s Day, Give Her the Reins to the Portfolio’, Wall Street Journal, May 9, 2009 5 ‘2011 QAIB’, Dalbar Inc, March 2011

Home Energy Efficiency Tax Credits

2011-07-12T15:12:00.001-05:00

It is the hot lazy, hazy days of summer and along with the heat comes additional expenses. If you own your home, you can make your home more energy efficient. Not only will you save on utility bills, you can reduce what you owe the IRS. For 2011 the maximum credit is $500 for eligible energy upgrades. These upgrades include heating and air conditioning systems, insulation, water heaters, windows, and doors. If you previously claimed an energy credit between 2005-2010 of $500 or more, you are not eligible for the 2011 credit.

However, if you make solar energy, wind power, or geothermal system upgrades, the tax break is even better; up to 30% of the cost, with no upper limit. This credit is available through 2016.

For questions or more information about Home Energy Efficiency Tax Credits, please call Lisa Fairbanks at (850) 435-8300, ext. 1066.

QuickBooks Tips & Tricks

2011-07-06T16:06:00.000-05:00

Do you need to track your inventory by location or site? QuickBooks now has this feature available in the Enterprise version. If you store inventory at different warehouses, consignment locations or different areas in one warehouse QuickBooks Enterprise will track this for you by location and keep the total average cost of your inventory. On all your purchase and sales forms, you will be able to specify by location for transactions. This Advanced Inventory feature will track drop ship orders too. QuickBooks added six new reports to provide inventory information by location such as Quantity on Hand by Site, Inventory Valuation Summary by Site and Inventory Stock Status by Site.

Do you want QuickBooks payroll detail that allows you to sort, filter and has a summary report which includes all payroll items? You can export the payroll information for quarterly and annual reports to Excel. The option is on the grey menu bar at Employees>Payroll Tax Forms & W2s>Tax Form Worksheets in Excel. This option will export the payroll information for the date range you specify. The Excel workbook that is created will have two tabs: one for the return you specified such as the 941 and another tab with all the payroll data by individual employee that you can sort and filter as needed.

Please call any of our QuickBooks ProAdvisors at (850) 435-8300 if you would like more detail on these tips or if you have any QuickBooks questions.

Terminating a 403(b) Plan – It’s Not So Easy

2011-07-01T13:15:00.000-05:00

In Revenue Ruling 2011-7 issued earlier this year, the Internal Revenue Service (“IRS”) provided sponsors of 403(b) plans with some much-needed guidance regarding how to terminate their plans, since many 403(b) plan sponsors have been reconsidering whether they want to continue to maintain such plans in light of the final regulations that were issued by IRS in 2007 covering 403(b) plans. Until this guidance was issued, the IRS’s position was, generally, that a 403(b) plan could not be terminated, so the guidance is a welcomed step. However, there are issues that have not been addressed by IRS and issues that plan sponsors may need to address in order to terminate their plans.

Steps to Plan Termination

The guidance outlines the steps a plan sponsor needs to take to effectively terminate their plan and distribute plan assets. Below is a brief discussion of each of the steps and potential issues that a plan sponsor must consider.

Adopt a Binding Resolution to Terminate the Plan

On or before the date of termination, the plan sponsor must adopt a binding resolution establishing the termination date, freezing contributions to the plan, discontinuing the purchase of annuity contracts or mutual funds, fully vesting all plan participants, approving the distribution of plan benefits, and approving the termination of the plan.

This would seem to be relatively simple except that the IRS assumes that a plan’s document(s) allow the plan sponsor to terminate its plan. This is frequently not the case, so plan sponsors must review their plan document to be sure it allows for the termination of the plan. If the plan document does not contain termination provisions, then the plan sponsor should consult with their plan advisor to determine if the language authorizing the plan’s termination can be added to allow for the plan’s termination.

Freezing/Stopping Plan Contributions

The plan sponsor must stop contributions to the 403(b) plan beginning on the termination date. In addition, if the plan sponsor has a related entity (determined on a controlled group basis) with a 403(b) plan, no contributions may be made to that plan for the period that begins with the termination date and ends twelve months after all benefits have been distributed from the terminated plan. The preceding rule may be disregarded if during the period beginning twelve months before the plan termination and ending twelve months after the distribution of all assets from the terminated plan less than two percent of the employees who were eligible to participate in the terminated plan are eligible to participate in the plan of the related entity.

Participant Notification

Plan participants and beneficiaries must be notified of the plan’s termination and the related tax consequences. The form of the tax notice is described in Internal Revenue Code section 402(f).

Distribute Plan Assets

Plan assets must be distributed to plan participants and beneficiaries as soon as administratively feasible. The IRS generally considers this requirement to be met if all plan assets are distributed within twelve months of the plan’s termination. It should be noted that 403(b) plans covered by ERISA must comply with the qualified joint and survivor annuity requirements to the extent applicable, meaning if the annuity contracts offered under the plan provide for survivor annuity options, then the required notifications must be provided. Many 403(b) annuity contracts state that if the plan is an ERISA plan then such notices will be provided, but plan sponsors should check with the annuity provider to coordinate notification. The IRS’ guidance also leaves some open issues for plan sponsors as follows:

• Individual annuity contracts – If the plan provides individual annuity contracts, then the notice requires the distribution of fully paid individual insurance annuities to each plan participant and beneficiary. The guidance states that such distributions will not be taxable until amounts are actually taken from the annuity contract. The guidance is not clear regarding what should be done by the plan sponsor if plan participants already hold individual contracts in their own name, which is fairly typical. Whether the plan sponsor would simply be able to notify the participants and contract providers that the contracts are no longer part of a 403(b) plan is an open question.

• Group annuity contracts – If the plan is funded with group annuity contracts, the IRS guidance contemplates the assets being distributed by issuing individual certificates (as opposed to contracts) evidencing entitlement to fully paid contract benefits to plan participants and beneficiaries. The guidance states that there are no tax consequences to the plan participant until amounts are actually withdrawn from the contract. From a practical point of view, it may take a very long time (more than twelve months) to issue such certificates because the required paperwork for old contracts is notoriously difficult for the issuing companies to find. Thus, the question is open whether a delay of more than 12 months from the termination date in issuing the certificates would cause the plan termination to be invalid.

• Custodial accounts – Many plans are funded by mutual fund custodial accounts that are maintained either as individual or group agreements. The IRS guidance assumes that such accounts will be distributed in cash, in-kind, or as a direct rollover from the 403(b) Plan to an IRA or another eligible retirement plan by a plan participant of beneficiary. The IRS guidance states that amounts distributed from a custodial account will be taxable unless rolled over to an IRA or another eligible retirement plan within 60 days. The IRS’ guidance is not clear regarding what happens if a participant or beneficiary fails to make an election to receive a distribution, i.e., will it cause the termination to fail?

File a Final Form 5500

403(b) Plans covered by ERISA must file a final Form 5500 by the last day of the seventh month after the date of final distribution of assets from the plan.

Other Issues to Consider in Terminating a Plan

The IRS failed to address some important items, which are discussed below and could cause a plan to fail to terminate. Plan sponsors that have these issues may want to delay terminating their plans until IRS issues additional guidance.

• Plans with grandfathered accounts excluded under Department of Labor’s (“DOL”) Field Assistance Bulletin 2009-2 need to consider whether these accounts may also be excluded from a plan’s termination.

• Plans that allow loans to participants need to determine with the vendor whether the loans can be transferred to the individual annuity account or contract. If they cannot, then tax guidance is need from IRS. Also, it needs to be determined how loan payments will be made, if they were being made by payroll deduction prior to the plan’s termination.

• IRS has not addressed the treatment of 403(b) contracts that include life insurance nor plans that have Roth 403(b) contributions or after-tax contributions. There needs to be additional tax guidance on the treatment of these items before distributions from accounts with these features can be correctly reported for tax purposes.

• The treatment of lost or nonresponsive plan participants needs to be addressed.

Given the number of open issues related to the termination of 403(b) plans at this time, many plan sponsors will want to delay attempting to terminate their plan until additional clarification is issued from IRS and possibly also the DOL. For those plan sponsors that urgently want to terminate their plans, it would be extremely practical to consult with professional advisors to review the particular circumstances of their plan to determine if a plan termination is feasible under current guidance before proceeding with the termination.

For more information, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.

© 2011 EisnerAmper LLP

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

Starratt Earns QPA Designation

2011-06-30T09:51:00.000-05:00

Heather M. Starratt, ERPA, QKA, a Manager in the Retirement and Medical Plans Department at Saltmarsh, Cleaveland & Gund has received the designation of Qualified Pension Administrator (QPA) from the American Society of Pension Professionals & Actuaries (ASPPA). Starratt is also a Qualified 401(k) Administrator (QKA) and an Enrolled Retirement Plan Agent (ERPA).

The Qualified Pension Administrator (QPA) credential was created by ASPPA to recognize professionals who are qualified to perform the technical and administrative functions of qualified plan administration. QPA's assist employers, actuaries, and consultants in performing functions such as determination of eligibility benefits, computation of benefits, plan recordkeeping, trust accounting and disclosure, and compliance requirements.

New FBAR Guidance Released

2011-06-27T09:27:00.000-05:00

1. The IRS and FinCEN recently have been informed that individuals with signature authority over, but no financial interest in, foreign financial accounts are having difficulty compiling the information needed to file complete and accurate Foreign Bank Account Reports (FBARs) with respect to 2009 or earlier calendar years by the June 30, 2011 deadline, as previously extended by Notice 2009-62 or Notice 2010-23. Accordingly, the IRS and FinCEN are providing the following additional administrative relief in IRS Notice 2011-54:

• Persons having signature authority over, but no financial interest in, a foreign financial account in 2009 or earlier calendar years (for which the reporting deadline was extended by Notice 2009-62 or Notice 2010-23) will now have until November 1, 2011 to file FBARs with respect to those accounts.

• Administrative relief provided in this Notice does not affect the requirements and deadlines to provide information or file FBARs in connection with the IRS’s 2009 Offshore Voluntary Disclosure Program or the 2011 Offshore Voluntary Disclosure Initiative.

Observation: The deadline for reporting signature authority over, or a financial interest in, foreign financial accounts for the 2010 calendar year remains June 30, 2011 for those not covered by the narrow FINCEN Notice 2011-1 and -2 extensions described immediately below.

2. FinCEN Notice 2011-1 previously extended the FBAR filing deadline to June 30, 2012 for those officers and employees of a regulated entity who fall outside the reporting exceptions contained in the final regulations and have signature or other authority over a foreign financial account of an entity which is more than 50% owned, directly or indirectly, by the regulated entity; or officers or employees of one entity within a regulated entity’s controlled group who have signature or other authority over a foreign financial account owned by another member of the controlled group. This narrow exception covers basically U.S. officers or employees with signature or other authority over foreign financial accounts owned directly by foreign subsidiaries of the regulated entity.

3. FinCEN Notice 2011-2 has now also extended the FBAR filing deadline to June 30, 2012 for employees or officers of SEC registered investment advisors who have signature authority over, but no financial interest in, foreign financial accounts of persons that are not registered investment companies.

FinCEN Notice 2011-1 and Notice 2011-2 may be found at www.fincen.gov and their extensions -- which are longer but narrowly targeted -- are not reduced by the shorter but more broadly applicable IRS extension described further above.

If you have any questions on these filing requirements, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.

© 2011 EisnerAmper LLP

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

IRS Increases Mileage Rate to 55.5 Cents per Mile

2011-06-24T11:59:00.003-05:00

IR-2011-69, June 23, 2011

WASHINGTON —The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The new rates are contained in Announcement 2011-xx on the optional standard mileage rates.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Mileage Rate Changes

Purpose               Rates 1/1 - 6/30/11              Rates 7/1 -12/31/11

Business                           51                                         55.5

Medical/Moving               19                                          23.5

Charitable                        14                                           14

Happenings during a power outage...

2011-06-15T14:56:00.000-05:00

During a 4 1/2 hour power outage yesterday... the audit staff got a bit mischievous... hope Brad was thristy when he returned to his desk!

Apparently squirrels should not be hanging out on power pole transformers ...

Elkins earns the designation of Certified Public Accountant (CPA) and promotion

2011-06-15T13:11:00.002-05:00

Jen Elkins, with Saltmarsh, Cleaveland & Gund, has recently earned the designation of Certified Public Accountant (CPA) and has been promoted to Senior. Elkins passed a four part exam that tested her knowledge in Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation.

Correcting 403(b) Plan Errors – The Current State

2011-06-15T09:16:00.000-05:00

As a result of having gone through the process of the first financial statement audit of their 403(b) plans last year, many 403(b) plan sponsors have been confronted with operational errors discovered during the audit and are now wondering how to correct these errors without jeopardizing the tax favored status of their plans. The following is a general discussion of which errors may be corrected and how they may be corrected utilizing Internal Revenue Service (“IRS”) guidelines and correction programs.

Plan Document Errors

The IRS does not currently offer a program for 403(b) plan sponsors to correct plan document errors; however, they are in the process of updating their current correction programs under Revenue Procedure 2008-50, Employee Plans Compliance Resolutions System (“EPCRS”), to provide 403(b) plans with a correction procedure. What this means for now is that if 1) a 403(b) plan sponsor did not adopt and execute a written plan document that satisfied the legal requirements of Internal Revenue Code (“IRC”) section 403(b) and the final regulations thereunder by December 31, 2009, or 2) the plan sponsor had a plan document, but failed to operate the plan in accordance with the written provisions of the plan document, then the plan sponsor cannot, currently, submit such errors to IRS to correct the errors, which would give the sponsor assurance that such issues will not be raised by IRS during a future audit of the plan.

What a plan sponsor can do currently if they discover plan document errors is to contact their plan adviser to discuss a process for correcting the errors in a manner similar to what IRS would require of a plan sponsor that could utilize EPCRS to correct such errors. If a plan sponsor takes such action and documents the corrections, they have at least demonstrated a good faith effort to correct the error and comply with the law. The IRS will, generally, look favorably on such correction efforts and will be willing to work with the plan sponsor if the plan is audited.

Operational Failures

403(b) plan sponsors that have discovered errors in their plan’s operation may currently use EPCRS to correct the following types of errors:

     1. Excluding eligible employees from the plan

     2. Failure to make salary deferrals universally available to employees

     3. Failure to limit participant salary deferrals to the IRC section 402(g) limit (currently $16,500)

     4. Failure to limit employer matching contributions under IRC section 401(m)

     5. Failure to limit participant compensation for plan purposes to the IRC section 401(a)(17) limit
         (currently $245,000)

     6. Failure to pay required minimum distributions to plan participants

     7. Failure to satisfy distribution restrictions on salary deferrals and employer contributions under IRC
         sections 403(b)(7) and 403(b)(11)

     8. Problems with direct rollovers of participant distributions

     9. Failure to meet the general nondiscrimination rules under IRC section 401(a)(4) as applied to 403(b)
         plans

     10. Failure to meet the minimum coverage requirements of IRC section 410(b).

The correction of these types of operational failures may be pursued in a manner similar to that outlined in Revenue Procedure 2008-50 and may or may not require the plan sponsor to submit the errors to the IRS for review and approval. Plan sponsors should contact their plan advisers to determine how best to correct an operational failure under the IRS’ correction program and whether the situation requires a formal submission to the IRS to correct the problem.

Conclusion

Sponsors of 403(b) plans whose plans are required to file a Form 5500 and/or have audited financial statements for their plans should not ignore problems with their plans should they be uncovered in a future IRS audit. Rather a plan sponsor should take advantage of the programs available through EPCRS to mitigate their risk of penalties should the IRS audit their plan in the future.

For further information or assistance, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.

© 2011 EisnerAmper LLP

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

Dodd-Frank Implementation Update: SEC Listing Standards Regarding Compensation Committee and Advisor Independence

2011-06-10T14:25:00.001-05:00

The Dodd-Frank Act was a game-changing event in executive pay – and a new season is underway. The Dodd-Frank Wall Street Reform and Consumer Protections Act of 2010 (“Dodd-Frank”) was initially about financial institutions reform but was expanded to address the executive pay policies and practices at all publically held companies.

The SEC has proposed listing rules for comment in reaction to Dodd-Frank that would apply to proxy filings made after July 16, 2012 pending the resulting rules by each independent exchange. The reality, however, is that institutional investors and shareholder groups may react sooner than this timeframe in their say-on-pay votes.

This is just the first installment by the SEC to address the provisions of Dodd-Frank. The issues that remain on the 2011 regulatory docket include pay equity, pay for performance, incentive payment clawbacks and stock option award hedging prohibitions. 2011 is shaping up to be a very memorable year in the history books of executive pay legislation and regulation.

What Has the SEC Proposed?

Section 952 of Dodd-Frank requires:

• compensation committee independence,
• compensation committee advisor independence,
• funding that will allow the compensation committee to retain independent advisors, and
• proxy statement disclosures on independence issues of compensation advisors to the compensation committee, conflicts of interest, and how those issues were resolved.

Who Does this Impact?

The SEC listing rules would only apply to companies with equity securities that are listed on public exchanges. The independence standards apply only to directors on the board serving on a committee that oversees executive compensation issues. The SEC calls this a “compensation committee” but this could be any committee that addresses executive compensation issues and the committee could address other additional functions or issues. The SEC’s committee independence requirements have five categories of companies that can be exempt from these standards:

• controlled companies (those owned 50% or more by another company or entity – this is a departure from the definition used for Audit Committee independence),
• limited partnerships.,
• companies in bankruptcy proceedings,
• open-end management investment companies registered under the Investment Company Act of 1940, and
• any foreign private issuer that discloses in its annual report the reasons that the foreign private issuer does not have an independent compensation committee.

In addition, the proposed rules could authorize the exchanges to exempt a particular relationship from the independence requirements that apply to compensation committee members.

Compensation Committee Independence

The proposed SEC listing rules prohibit an exchange from listing an equity security for a company that does not meet certain independence standards. To consider the independence of a director, the exchanges must consider:

• the sources of compensation of a director, including any consulting, advisory or compensatory fee paid by the company to such member of the board of directors and
• whether a member of the board of directors of a company is affiliated with the company, a subsidiary of the company, or an affiliate of a subsidiary of the company.

As with all listing standards, the exchanges would seek the approval of the SEC before adopting them. The exchanges could add to or broaden how director independence will be determined beyond those listed in these guidelines. Similar to the rules for audit committees, a compensation committee would have one year to cure a defect should a committee member cease to be independent for reasons outside of their control.

These proposed listing rules are generally similar to the mandates of Dodd-Frank. Unfortunately, we all may have to wait for the modified listing rules established by the exchanges before we get a complete picture the rules that will be in effect for each exchange and registrant.

Compensation Committee Advisor Independence

The proposed rules also would require the exchanges to adopt listing standards providing that a compensation committee may select a compensation consultant, legal counsel or other adviser only after considering the following five independence factors:

1. Whether the compensation consulting company employing the compensation advisor is providing any other services to the company.
2. How much the compensation consulting company who employs the compensation advisor has received in fees from the company, as a percentage of that person’s total revenue.
3. What policies and procedures have been adopted by the compensation consulting company employing the compensation advisor to prevent conflicts of interest.
4. Whether the compensation advisor has any business or personal relationship with a member of the compensation committee.
5. Whether the compensation advisor owns any stock of the company.

Again, the SEC has essentially mirrored the requirements of Dodd-Frank, thus allowing the exchanges themselves the ability to impose additional considerations. If the compensation committee determined that a conflict of interest did exist with its advisor, the company would be required to describe the conflict clearly, concisely and in a manner that can be easily understood. They would also have to describe how the conflict was addressed on a case-by-case basis (a generic reiteration of corporate policies and procedures will not be viewed as satisfactorily addressing this requirement).

Note that while advisor independence is not mandatory, the optics of a perceived lack of independence would likely have a very negative impact on future mandatory say-on-pay shareholder votes.

Compensation Committee Funding

The proposed SEC listing rules would require the exchanges to adopt listing standards providing that the compensation committee of a listed company:

• may, in its sole discretion, retain or obtain the advice of a compensation advisor,
• is directly responsible for the appointment, payment and oversight of compensation advisors, and
• must be appropriately funded by the listed company.

This funding requirement essentially places the responsibility of advisory independence and the resolution of possible conflicts with the compensation committee.

Proxy Statement Disclosures

Note that Exchange Act registrants subject to the federal proxy rules are already required to disclose information about their use of compensation consultants, including specific information about fees paid to consultants that the SEC added in late 2009. The proposed rules would modify existing rules to require disclosure about whether:

• the compensation committee has retained or obtained the advice of a compensation consultant and/or.
• the work of the compensation consultant has raised any conflict of interest and, if so, the nature of the conflict and how the conflict is being addressed.

The proposed rules also would eliminate the current disclosure exception for services that are limited to consulting on broad-based plans and the provision of non-customized benchmark data, but would retain the fee-disclosure requirements, including the exemptions from those requirements.

Conclusion

The rules of the game have changed: The best approach is to make sure you have a trusted advisor who understands and can relate the regulatory revolution that is approaching, is independent from other management advisors, and will offer advice that is grounded in business. An SEC registrant effectively has less than a year to coordinate advisors between management and the Board. The SEC’s proposed listing rules places the onus on the Board to find advisors they trust. The following is a list of questions a Board/Compensation Committee may find useful in this selection process:

• Which business advisory service firms have existing or recent historic relationships with management that would impair or might give shareholders/regulators the perception that there are independence problems?
• Do we need a second outside opinion to make sure the advice we are receiving makes sense and best fits our unique needs and circumstances?
• Can we stay with our existing advisors or do we need to find another source of business advice and review for the Board/Compensation Committee?
            o Do the alternative providers under consideration have the horsepower to
                         Remain in business over the long-term or does their viability depend on the talents
                                of less than a handful of specialists?
                         Track key accounting, tax and legal trends as they apply to executive pay issues?
                         Stand up to the demands of management and other dissenting directors?

Look for future updates as other major executive pay provisions of Dodd-Frank are enacted this year. Expect to hear more on pay equity, pay for performance, incentive payment clawbacks and stock option award hedging prohibitions as rules and requirements develop.

© 2011 EisnerAmper LLP

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

Temporary Decrease in Self Employment Taxes

2011-06-06T10:46:00.001-05:00

Did you know for 2011 the FICA portion of self-employment tax has decreased 2% for 2011? The temporary rate is 10.4% (down from 12.4%) up to the social security limit of $106,800 on net earnings from self-employment. If you expect to owe at least $1,000 in tax for 2011 after taxes withheld, you are generally expected to pay quarterly estimated tax payments. If you base your quarterly estimated tax payments on 90% of the tax expected to be shown on your 2011 tax return, you may be able to reduce your quarterly estimated tax based on your net income from self-employment by the 2% temporary FICA tax reduction. Consult your tax advisor to see if you can reduce your quarterly estimated tax payments.

Report of Foreign Bank and Financial Accounts (FBARs)

2011-06-01T10:44:00.000-05:00

U.S. persons are required to file FBARs Form TD F 90-22.1 annually if they have a financial interest in or signature authority over financial accounts, including bank, securities or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year.

You never know who you will meet at a PKF Conference...

2011-05-24T08:46:00.000-05:00

This past week at the PKF Management Conference, Charles met Joe Thiesmann (former Redskins QB)!

Saltmarsh's Relay For Life Team

2011-05-24T08:42:00.000-05:00

Looks like a great time was had by all who participated in this years' Relay for Life! Congrats Team Saltmarsh!

Audit girls take-on Warrior Dash

2011-05-24T08:29:00.000-05:00

The other weekend, some of our Audit girls completed the first Warrior Dash in Mountain City, Georgia. The Dash consisted of an extreme run and 11 obstacles to complete that included: the Muddy Mayhem, Great Warrior Wall, Warrior Roast and the Menacing Minefield.

Diane, Jen, Laura (Saltmarsh Alum) and Angelika after the Dash

Great job girls!

Revenue Pharmaceutical Manufacturers or Importers of Branded Prescription Drugs – IRS Offers Dispute Resolution Process for the Preliminary Fee Calculation for the 2011 Annual Fee

2011-05-20T15:15:00.000-05:00

On May 2, 2011, the IRS issued rules (Rev. Proc. 2011-24), which provide an exclusive process available to covered entities, which are certain manufacturers and importers of branded prescription drugs, to dispute the 2011 preliminary fee calculation and obtain any change to data that would be reflected in the final fee allocation. In order to participate in the dispute resolution process, a covered entity must submit a written error report to the IRS that is postmarked no later than June 1, 2011.

On May 16, the IRS was scheduled to mail a preliminary fee calculation to the taxpayers and taxpayers will have until June 1, 2011 to dispute the calculation.

The nondeductible annual fee on branded prescription drugs was enacted by the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act (the Acts). The aggregate annual fee will be $2.5 billion for 2011, increases to $4.1 billion for 2018, and decreases to $2.8 billion for 2019 and later. The aggregate annual fee will be allocated by the IRS to each covered entity based upon its proportionate share of branded prescription drug sales incurred during the preceding calendar year. Covered entities with branded prescription drug sales that are $5 million or less are exempt from this fee.

The fee will be calculated based on the proportion of each covered entity’s sales to any specified government programs which are: the Medicare Part D program, the Medicare Part B program, the Medicaid program, and any program under which branded prescription drugs are procured by the Department of Veterans Affairs, Department of Defense, and TRICARE retail pharmacy program.

IRS Notice 2011-9 asked taxpayers to submit a Form 8947 to the IRS by February 11 to provide data on branded prescription drugs, orphan drugs, and rebates. The Notice 2011-9 also provided methodology and the approach for the preliminary 2011 fee allocation to each covered entity.

Accounting Implication:

In December 2010, the FASB has issued Accounting Standards Update (“ASU”) No. 2010-27, Other Expenses (Topic 720): Fees Paid to the Federal Government by Pharmaceutical Manufacturers. This ASU provides guidance on how pharmaceutical manufacturers should recognize and classify in their income statement fees mandated by the Acts.

The amendments in this ASU specify that the liability for the fee should be estimated and recorded in full upon the first qualifying sale with a corresponding deferred cost that is amortized to expense using a straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. The annual fee should be presented as an operating expense.

The amendments in this ASU are effective for calendar years beginning after December 31, 2010, when the fee initially becomes effective.

Tax Implications:

An entity’s portion of the annual fee is not tax deductible. The branded prescription drug sales do not include sales of any drug or biological product with respect to which a tax credit was allowed for any taxable year under IRC Section 45C.

If you require any assistance with the filing of written error report, Form 8947, or identification of Section 45C credit opportunities, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.

Timelines Table:

February 11, 2011 (December 15 of each year in subsequent years):
IRS Notice 2011-9 asked taxpayers to submit a Form 8947 to the IRS by February 11 to provide data on branded prescription drugs, orphan drugs, and rebates.

May 16, 2011:
IRS will mail preliminary calculations to taxpayers

June 1, 2011:
If taxpayer believes that preliminary calculation contains error, it must make written error report to IRS postmarked by June 1 for claim to be considered.

August 15, 2011:
The IRS will mail final fee calculations to taxpayers by August 15 after making any necessary adjustments

September 30, 2011:
The payment of the fee from each taxpayer will be due no later than September 30.

© 2011 EisnerAmper LLP

New Employee - Whitney Harrington

2011-05-18T10:43:00.000-05:00

On Monday, Whitney Harrington joined the Pensacola office. Whitney is a recent graduate of UWF, where she received her Bachelor’s Degree in Accounting. She will be joining our team of Financial Institution Auditors and we are happy to have her. She will be sitting upstairs in the audit department, next to Brad Mostert.

Welcome Whitney!

IRS Provides Guidance on 100% Bonus Depreciation

2011-05-09T13:11:00.000-05:00

On March 29, 2011, the IRS released Rev. Proc. 2011-26 providing much-needed guidance on 100% bonus depreciation and associated issues. This effectively clarifies a number of issues including two which may be of interest to our clients: the ability to elect alternative 50% bonus depreciation; and the ability to depreciate components of self-constructed property.

Background

The Obama Administration’s Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (“the Act”) granted an additional 100% first-year depreciation for certain “qualified property” acquired or placed in service after September 8, 2010 and prior to January 1, 2012. The prior definition of “qualified property” remained intact – generally as acquired and placed in service after December 31, 2007 and prior to January 1, 2013 with original construction commencing with the taxpayer.

The Rev. Proc. provides much-welcomed guidance, inter alia, on self-constructed property in the context of 100% bonus depreciation; and on the ability to elect 50% bonus depreciation in lieu of 100% bonus depreciation or standard statutory depreciation deductions.

Self-Constructed Property

In general, for 100% depreciation purposes, self-constructed property is acquired when significant construction begins. Even if the construction of a property begins before the September 9, 2010 eligibility date, specific components of the project, with a proper election, may be eligible for 100% bonus depreciation if the component’s self-construction began or acquisition occurred after September 8, 2010.

Election of 50% Bonus Depreciation

Prior to the issuance of Rev. Proc. 2011-26, there was no ability to elect 50% bonus depreciation rather than 100% depreciation due to no affirmative guidance. For eligible property, taxpayers either opted for 100% bonus depreciation or elected out of the bonus depreciation regime entirely.

Fortunately, the new guidance permits taxpayers to elect – if preferable due to their particular tax positions – 50% bonus depreciation instead of 100% bonus depreciation. Because this has been released very close to the April 15, 2011 tax return filing deadline, taxpayers who have already filed their 2010 returns may opt for 50% bonus depreciation on an amended return filed prior to next year’s return or file an automatic accounting method change for either the first or succeeding years.

If the taxpayer elected out of bonus depreciation for a class of property, the taxpayer may revoke the election by June 17, 2011 or, if later, by the time it files next year’s tax return.

If you have any questions about this Alert, please contact Saltmarsh, Cleaveland & Gund (850) 435-8300.

© 2011 EisnerAmper LLP

2011 Tax Party

2011-04-19T09:03:00.001-05:00

After tax season, everyone was able to unwind with our annual April ~~15th~~ 18th Tax Party.

This year we had a crawfish boil which was catered by Jerry's Cajun.

Beth V. and Ted with his infamous Long Island Iced Tea.

Mike's hat/hair was a big hit!

Jerry getting the crawdads just right.

Gregg enjoying a crawfish head.

Frank was hungry after all that running...

Beautiful day for the party!

Stephanie approves Ted's margarita making skills!

New Employee - Lauren Botts

2011-04-18T13:11:00.001-05:00

Today, Lauren Botts (Nathan's daughter) will be joining the firm as our new Receptionist. Stephanie Hirst will transition into the role of Admin Assistant in our IT Department as Carlie prepares to move to be with her fiance. Carlie's last day with us will be on Friday and we wish her all the best.

Welcome Lauren!

Elvis has left the building

2011-04-18T10:19:00.000-05:00

On Friday, Stephanie recieved a fun Birthday surprise from her husband... a singing telegram!

If you were unable to hear him, he sang a couple of favorites including Hunk of Birthday Love.

Legislative Update: Requirement for Advisers of Private Equity Funds

2011-04-14T15:57:00.000-05:00

Registration of advisers to private equity funds is a hot topic in the industry. Currently, this registration is scheduled to take place no later than July 21, 2011. However, it appears there are still questions to be answered and the U.S. Securities and Exchange Commission now expects to give investment advisers required to register under the Dodd–Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) an additional six months to do so.

In a letter dated April 8 to the president of the North American Securities Administration Inc., SEC Associate Director Robert Plaze said “we expect the Commission will consider extending the date by which these advisers must register … until the first quarter of 2012.”

Dodd-Frank mandates that private equity firms with $150 million or more of assets under management in the U.S. register with the SEC. This registration will give the federal government more oversight over managers. It also forces firms to hire or name a compliance officer.

There are further initial guidelines on information and operation changes required with registration, however, the SEC has not yet issued final regulations and there are unanswered questions. Plaze’s letter states the SEC expects to issue the final regulations by the July 21 date.

Until the final rules are released, there remains ambiguity about who must register. As examples, there are questions about how family offices are defined; and firms that straddle the line between private equity and venture capital are not sure if they must register.

For more information, please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300.

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

This publication has been prepared by EisnerAmper LLP for informational purposes only. These materials do not constitute accounting, tax or legal advice and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code.

Redistributed by Saltmarsh with permission.

Fryer Promoted to Manager at Saltmarsh

2011-04-14T09:22:00.000-05:00

Judy Fryer, Certified Section 125 Administrator, at Saltmarsh, Cleaveland & Gund, has been promoted to Manager in the Retirement and Medical Plans Department. Fryer, who has been practicing in this field since 1982, has management and medical billing experience with extensive CPT and ICD9 coding experience. She is a Certified Section 125 Administrator through the HR certification Section 125 Program. Fryer remains compliant with HIPAA training and active with the Employee Benefits Institution of America (EBIA).

Starratt Promoted to Manager, Earns ERPA Designation

2011-04-12T09:51:00.000-05:00

Heather M. Starratt, ERPA, QKA at Saltmarsh, Cleaveland & Gund, has been promoted to Manager in the Retirement and Medical Plans Department. Heather is a Qualified 401(k) Administrator (QKA), a credential awarded by the American Society of Pension Professionals & Actuaries (ASPPA) and has now added the Enrolled Retirement Plan Agent (ERPA) designation to her title.

ERPA is a federally sanctioned designation that allows enrolled practitioners to practice before the IRS on pension and 401(k) plan matters. This includes determination letters, plan audits and negotiating on behalf of clients regarding compliance matters. The IRS created the ERPA designation to provide a credentialing process for third party administrators and benefit consultants of tax-exempt retirement plans.

To qualify for the ERPA designation, Starratt had to demonstrate special competence in retirement plan matters by passing written examinations. The IRS has contracted with the American Institute of Retirement Education, LLC (AIRE) to administer the ERPA-Special Enrollment Examination (ERPA-SEE).

Important April 20, 2011, deadline for claimants in the BP/Deepwater Horizon litigation is approaching

2011-04-11T11:24:00.000-05:00

Transocean, owner of the Deepwater Horizon mobile offshore drilling platform that exploded and sank in the Gulf of Mexico in April of 2010, has filed a lawsuit seeking limitation of its liability to claimants under Maritime Law. All parties who have or may have a claim for personal injury, loss of property, lost profits or other economic damages as a result of the BP/Deepwater Horizon oil spill in the Gulf of Mexico should be aware of an April 20, 2011, deadline to file an answer and claim in the Transocean limitation action.

The following websites contain information about the Transocean limitation action and the court-approved short-form joinder:

http://www.oilspillcourtcase.com/

http://www.laed.uscourts.gov/OilSpill/Forms/Forms.htm

We strongly encourage all those with claims to review the information that can be found at the above websites and to seek the advice of legal counsel if you have any additional questions about your rights or how to proceed.

IRS Tax Tips: Estimated Taxes

2011-04-04T10:11:00.001-05:00

Six Tips for Paying Estimated Taxes

Estimated tax is a method used to pay tax on income that is not subject to withholding. You may need to pay
estimated taxes during the year depending on what you do for a living and what type of income you receive.
These six tips from the IRS will provide you with a quick look at estimated taxes and how to pay them.

1. If you have income from sources such as self-employment, interest, dividends, alimony, rent, gains
from the sales of assets, prizes or awards, then you may have to pay estimated tax.

2. As a general rule, you must pay estimated taxes in 2011 if both of these statements apply: 1) You
expect to owe at least $1,000 in tax after subtracting your tax withholding (if you have any) and
credits, and 2) You expect your withholding and credits to be less than the smaller of 90% of your
2011 taxes or 100% of the tax on your 2010 return. There are special rules for farmers, fishermen,
certain household employers and certain higher income taxpayers.

3. For Sole Proprietors, Partners and S Corporation shareholders, you generally have to make
estimated tax payments if you expect to owe $1,000 or more in tax when you file your return.
4. To figure your estimated tax, include your expected gross income, taxable income, taxes,
deductions and credits for the year. Use the worksheet in Form 1040ES, Estimated Tax for
Individuals for this. You want to be as accurate as possible to avoid penalties. Also, consider
changes in your situation and recent tax law changes.

5. The year is divided into four payment periods, or due dates, for estimated tax purposes. Those
dates generally are April 15, June 15, Sept. 15 and Jan. 15.

6. Form 1040ES, Estimated Tax for Individuals, provides all you'll need to pay estimated taxes. This
includes instructions, worksheets, schedules and payment vouchers. The easiest way to pay
estimated taxes, however, is electronically through the Electronic Federal Tax Payment System
or EFTPS. You can also pay estimated taxes by check or money order using the Estimated Tax
Payment Voucher or by credit or debit card.

For more information on estimated taxes refer to Form 1040ES and its instructions, as well as Publication
505, Tax Withholding and Estimated Tax. These forms and publications are available at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Please contact Saltmarsh, Cleaveland & Gund, (850) 435-8300 for further questions.

Legislative Alert - SEC Cracks Down on Sales Taxes – Significant Penalties Result

2011-03-28T15:13:00.000-05:00

Although the SEC has not historically been involved in above-the-line taxes, such as sales taxes, “the times they are a-changin’.” The SEC has sanctioned and fined several companies for failure to properly collect, remit, and/or account for sales taxes.

In one instance a company was fined $200,000 for failure to maintain proper internal controls and books and records relating to sales taxes. The company was found to not have proper controls in place to properly tax and track the transactions in question over a period of several years. As a result the company was found to be in violation of § 13(b)(2)(B) of the Exchange Act.

In another instance, the SEC found that a company had improperly released a reserve related to sales taxes which resulted in a 12% overstatement of income. Further, the company was found to be lacking in the tracking of its exemption certificates, and to not be registered as required in many jurisdictions.
As illustrated by these examples, the penalties for improperly accounting for sales taxes can be more than paying back taxes and related interest. Penalties from taxing authorities and other oversight organizations can be significant. While sales tax audit defense services are often viewed as the first line of defense, there are several ways the public and private companies can become compliant in the areas of sales and use taxes and remediate historical exposures, including:

1. Policies and Procedures Review – Review the company’s current sales tax policies and procedures with an eye toward seeking opportunities for improvement.

2. Voluntary Disclosure Agreements/Amnesties – Historical exposures can be remediated by entering into voluntary disclosure agreements and/or amnesty agreements which may limit the prior periods for which uncollected taxes must be paid, and which waive penalties and/or interest.

3. Nexus Studies and Taxability Matrices – Determine where companies have filing responsibilities and the taxability of various revenue streams to help ensure compliance with applicable sales/use tax laws.

4. Reverse Audits – Not all problems result in underpayments/exposure. Many times when companies do not understand the intricacies of sales/use taxes the results include over payments. Companies can identify overpayments and apply for refunds to ensure they are not paying more than their fair share of taxes.

If you have any questions regarding the above content, please contact Saltmarsh, Cleaveland & Gund (850) 435-8300.

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

This publication has been prepared by EisnerAmper LLP for informational purposes only. These materials do not constitute accounting, tax or legal advice and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code.

Redistributed by Saltmarsh with permission.

Benefits Alert - Fiduciaries Need to Plan Now to Comply with DOL's Final Regulation on Transparency of Fees and Expenses

2011-03-28T15:07:00.000-05:00

Beginning January 1, 2012 (for calendar year plans), the Department of Labor's Employee Benefits Security Administration ("EBSA") will require retirement plans that allow participants to direct the investment of their accounts (typically 401(k) and 403(b) plans) to provide extensive information regarding fees and expenses related to a plan's investment options so that plan participants can more easily compare the costs of various investment options. This annual disclosure must also include performance information for each investment option offered under a plan. Additionally, participants must receive quarterly disclosure of the amounts and nature of expenses deducted directly from their accounts.

The burden of this new and complex set of disclosures will rest with a plan's fiduciaries, who are typically officers of the plan sponsor. The investment of a plan's assets is a fiduciary act governed by the fiduciary standards in ERISA. Plan fiduciaries may allow participants to self-direct investments under ERISA section 404(c), which has always required the disclosure of information about a plan's investments under a participant-directed plan. This requirement has typically been met by making available fund prospectuses (or equivalent information) or information generated by software providers that consolidate such information. Knowledgeable plan participants have been able to make informed investment decisions under the existing regulations; however, EBSA believed that enabling the average plan participant to make informed decisions required the use of standard methodologies when calculating and disclosing fee, expense, and investment return information in order to provide ease of comparison between investments. Consequently, the final regulation requires plan fiduciaries to provide the information discussed below.

Initial and Annual Disclosure

The information below must be given to participants on or before the date they can first direct their investments, and then annually thereafter.

Plan-related information

• General plan information, which consists of information about the structure and mechanics of the plan, such as an explanation of how to give investment instructions, a current list of the plan's investment options, and a description of any brokerage or similar arrangement that enables the selection of investments beyond those designated by the plan.
• Administrative expense information, which is an explanation of any fees and expenses for general plan administrative services that may be charged to or deducted from individual participant accounts (for example, fees and expenses for legal, accounting, and recordkeeping services).
• Individual expense information, which is an explanation of any fees and expenses that may be charged to or deducted from the individual participant's account based on the actions taken by the participant (for example, fees and expenses for participant loans and for processing qualified domestic relations orders).

Investment-related information

• Performance Data: Participants must be provided specific information about historical investment performance. The one-, five-, and ten-year investment returns must be provided for investment options, such as mutual funds, that do not have fixed rates of return. For investment options that have a fixed or stated rate of return, the annual rate of return and the term of the investment must be disclosed.
• Benchmark Information: For investment options that do not have a fixed rate of return, the name and returns of an appropriate broad-based securities market index over one-, five-, and ten-year periods (matching the performance data periods above) must be provided. Investment options with fixed rates of return are not subject to this requirement.
• Fee and Expense Information: For investment options that do not have a fixed rate of return, the total annual operating expenses of the investment expressed as both a percentage of assets and as a dollar amount for each $1,000 invested, and any shareholder-type fees or restrictions on the participant's ability to purchase or withdraw from the investment, must be provided. For investment options that have a fixed rate of return, any shareholder-type fees or restrictions on the participant's ability to purchase or withdraw from the investment must be provided.
• Internet Web Site Address: Investment-related information includes the requirement to provide an internet web site address that is sufficiently specific to provide access to additional information about the investment options available under a plan for those participants who want more detail or more current information.
• Glossary of terms: Investment-related information includes a general glossary of terms to assist participants in understanding the plan's investment options, or an internet web site address that is sufficiently specific to provide access to such a glossary.

Quarterly Disclosure

In addition to the above information, participants must receive statements, at least quarterly, showing the dollar amount of the plan-related fees and expenses actually charged to or deducted from their individual accounts along with a description of the services for which the charge or deduction was made. These disclosures may be (but are not required to be) included in the quarterly benefit statements that are required to be provided to plan participants who participate in participant-directed plans.

Other Requirements

The investment information required under the final regulation must be furnished in a chart or similar format designed to facilitate a comparison of each investment option available under the plan. The good news is that the final regulation includes a model comparative chart that may be used by a plan administrator to satisfy the regulation's requirement that a plan's investment option information be provided in a comparative format. The bad news is that the information required is extensive and plan fiduciaries are going to need to spend a considerable amount time and money if their plan's investment advisor can not produce the information in a compliant format. If requested by a participant, the plan sponsor or plan fiduciaries must also furnish prospectuses, financial reports and statements of valuation of assets held by an investment option under a plan.

Impact on Plan Sponsors and Fiduciaries

This new requirement will create additional work and/or costs for plan sponsors. Plan sponsors and fiduciaries need to begin now in order to identify and quantify all expenses paid from their plan's assets and then decide on a compliant format and medium for communicating this information to plan participants. Additionally, discussions should begin now with the plan's investment advisor or investment provider to determine whether compliant performance data, performance benchmarks, and a glossary of terms will be provided timely for inclusion with the general information required under the final regulation, as well as how such information will be maintained and updated.

The final regulation will become applicable for plan years beginning on or after November 1, 2011. For calendar year plans, compliance will be required on January 1, 2012.

For more information, please contact Saltmarsh, Cleaveland & Gund (850) 435-8300.

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

This publication has been prepared by EisnerAmper LLP for informational purposes only. These materials do not constitute accounting, tax or legal advice and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code.

Redistributed by Saltmarsh with permission.

Elbert A. Botts Estate donates $1.4 million to Troy University

2011-03-28T10:09:00.001-05:00

The Elbert A. Botts Estate presented a $1.4 million donation to Troy University on Wednesday, March 23. The gift will support the University’s geomatics program and the School of Accountancy. Pictured left to right are: Dr. Steve Ramroop, director of the Surveying and Geomatics Program; Betsy Botts, Nathan Botts, Richard Botts, Dr. Jack Hawkins, Jr., Chancellor; Melody Botts and Dr. Kaye Sheridan, director of the School of Accountancy. (TROY photo/Cass Davis)

TROY—The estate of Elbert A. Botts today presented a $1.4 million donation to Troy University which will support the School of Accountancy and geomatics program.

Dr. Jack Hawkins, Jr., Chancellor, expressed appreciation for the gift and said it would help advance two of the University’s strongest academic programs.

“The investment of this bequest reflects the value placed on this university by the Botts family and for that we are grateful,” Dr. Hawkins said.

A native of Pike County, Ala., Elbert Botts attended Troy University (then called Troy State Teachers College) in the 1940s. He went on to open a successful garden center in Augusta, Ga., The Green Thumb West, which he worked at until his death in 1995. He was known both as a civic leader and a statewide pioneer in the horticulture industry.

Botts’ nephews, Richard and Nathan Botts (Director of Financial Institution Services at Saltmarsh), made the presentation to TROY officials during a luncheon ceremony at the University’s Foundation Office.

“Uncle Elbert believed in education and felt that [his college education] allowed him to become as successful as he was,” Nathan Botts said.

“He really thought a lot about the community that he grew up in and thought a lot about education,” Richard Botts said. “This gift is going to a great place and you will do great works with it.”

The donation will support scholarships for future geomatics students, said Dr. Steve Ramroop, director of the Surveying and Geomatics Program, and will allow the program to add new technology and faculty.

“As director, I want to thank the Botts family for this generous gift,” Dr. Ramroop said. “It will support scholarships for students who are committed to success in the program.”

The School of Accountancy will use the gift to fund a professorship in accounting, said program director Dr. Kaye Sheridan.

“We can’t thank [the Botts family] enough for this timely gift,” Dr. Sheridan said. “To have a great program you need great faculty, and this gift will give us an advantage when it comes to attracting great faculty members.”

For more info click here.

Important Tax Alert: Requirements for filing 2010 FORM 90-22.1

2011-03-23T09:00:00.001-05:00

REPORT OF FOREIGN BANK AND FINANCIAL ACCOUNTS (FBAR)

The purpose of this Alert is to remind you of the requirement to file the 2010 United States (U.S.) Treasury Department Form 90-22.1 for non-U.S. bank and financial accounts if the aggregate value of the financial account(s) exceeds $10,000 at any time during the year.

This updated release covers the final rules released by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on February 23, 2011.

Form 90-22.1 is filed separately from your tax return and must be received by the Treasury Department no later than June 30, 2011. The form cannot currently be filed electronically and the sender cannot rely on a postmark date, rather than actual receipt.

The Treasury Department will impose a civil penalty of up to $10,000 on any person who does not comply with the filing requirements, even if the lack of filing is non-willful. For a willful violation, the penalty can be as high as the greater of $100,000 or 50% of the highest amount in the foreign account during the reportable calendar year.

Who Must File?

In general, the form is required to be filed by any U.S. person which has a financial interest in or signatory authority over any foreign financial account.

Reminder: For 2009 and previous calendar years, persons with signature authority over, but no financial interest in, a foreign financial account were granted an extension to June 30, 2011 to file FBARs for those years under Notice 2010-23. Those filing such prior year FBARs can also rely on the guidance in the final rules issued by FinCEN discussed in this letter.

U.S. person: For legal entities, this includes a corporation, partnership, limited liability company, or trust created, organized or formed under the laws of the United States, any U.S. State, the District of Columbia, a U.S. territory or possession, or an Indian Tribe.

Observations:

• For a trust formed under one of the U.S. laws listed above, a filing by the trustee is required even though non-U.S. persons control all of the substantial decisions of the trust, making it a foreign trust for U.S. federal tax purposes under the IRC.
• A foreign corporation that elects to be treated as a U.S. corporation for income tax purposes does not have an FBAR filing obligation, because it was not organized or formed under the laws of the United States.
For individuals, this includes U.S. citizens, lawful permanent residents (green card holders) – even if he or she elects to be treated as a nonresident under an income tax treaty – or persons meeting the substantial presence test for income tax residency under the Internal Revenue Code (IRC).

Observations:

• Nonresident aliens, even those “in and doing business in the United States” during the tax year, do not have a reporting obligation under the final rules.
• A determination of whether a person is a U.S. resident is made without regard to an election by a nonresident alien to file a joint tax return with a U.S. spouse.
• An individual who elects to be treated as a resident for federal income tax purposes is also required to file an FBAR, but only with respect to those foreign financial accounts held during the period covered by the election.

Foreign: An account is not a foreign account under the FBAR rules if it is maintained with a financial institution located in the U.S. For example, if you purchase a foreign security through a U.S. account maintained with a securities broker, you will not have an FBAR filing requirement.

Financial account: This broadly includes any bank, securities, derivatives, foreign mutual fund or other financial instruments account (including any savings and demand deposits, checking accounts, certificates of deposit, or other account maintained with an institution engaged in the business of banking). Financial accounts also include an account with a person that is in the business of accepting deposits as a financial agency (defined as “a person acting for a person as a financial institution, bailee, depository trustee, or agent, or acting in a similar way related to money, credit, securities, gold, or a transaction in money, credit, securities, or gold.”), or a person that acts as a broker or dealer for futures or option transactions in any commodity or is subject to the rules of a commodity exchange or association.

An account with a foreign mutual fund or similar pooled fund which issues shares available to the general public that have a regular net assets value determination and regular redemptions are also reportable.

Observation: Most, if not all, investments in foreign private funds – such as hedge funds and private equity funds – held by U.S. persons do not involve reportable foreign financial accounts, unless a U.S. investor owns greater than a 50% interest in such a fund which itself holds a foreign bank or other financial account. However, the Treasury Department has reserved the right to issue regulations in future on such funds.

U.S. persons do not have an FBAR filing requirement with respect to assets held in an omnibus account (i.e., an account created by a US custodian where cash and securities are pooled in a non-U.S. account to hold assets of multiple investors) which is maintained through a U.S. global custodian bank, unless the custody arrangement permits the U.S. person to directly access its foreign holdings maintained in the account.

Foreign life insurance and annuity policies with a cash value are also covered under the recently revised rules and reportable by the policy holder.

Financial interest in an account: This includes being the owner of record or having legal title, even if acting as an agent, nominee, or in some other capacity on behalf of a U.S. person. A U.S. person also has a financial interest in an account held by a corporation in which that person owns, directly or indirectly, more than 50% of the total voting power or value of shares; a partnership in which the U.S. person owns an interest of more than 50% in the capital or profits; or a trust if the U.S. person is the trust grantor and the trust grantor has an ownership interest in the account for federal income tax purposes (i.e., the trust is a grantor trust); a trust in which a US person either has a present beneficial interest in more than 50% of the assets or from which such person receives more than 50% of the current income. Anti-abuse rules apply when a U.S. person causes an entity to be created for a purpose of evading the FBAR requirements.

Observation: Apparently the beneficiary of a discretionary trust does not have an FBAR filing obligation simply by reason of being a discretionary beneficiary. Further, a remainder interest does not fall within the scope of the term “present beneficial interest” under the final rules, so remainder beneficiaries do not have a filing obligation.

A beneficiary of a trust will not have a filing requirement if the trust, the trustee of the trust, or agents of the trust are U.S. persons who have filed FBARs with respect to the trust’s accounts. The final rules do not address whether a filing requirement exists if a U.S. grantor files the FBAR.

The final rules eliminated the filing requirement with respect to a trust established by a U.S. person for which the U.S. person has appointed a trust protector which is subject to the settlor’s direct or indirect instruction.

Signature or Other Authority: Signature or other authority has been re-defined for individuals only to include the authority of an individual (alone or in conjunction with another) to control the disposition of money or funds or other assets held in the account by direct communication (whether in writing or otherwise) to the institution with which the financial account is maintained.

Officers and employees employed at the organizations listed below do not have to report signature or other authority over a foreign financial account, as long as the officers and employees do not have a personal financial interest in the financial accounts:
• Banks examined by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, FDIC, Office of Thrift Supervision, or National Credit Union Administration, and federal banking agencies
• Financial institutions registered with and examined by the SEC or Commodity Futures Trading Commission
• An Authorized Service Provider that maintains foreign financial accounts by an investment company that is registered under the Investment Company Act of 1940
• Companies that are listed on a US national securities exchange, whether the company is domestic or foreign.

Observation: Officers and employees of a U.S. subsidiary of a listed company are also covered by this exception, if the U.S. subsidiary is named in a consolidated FBAR report of the parent. However, this exception is not extended to a U.S. subsidiary of a foreign parent listed on a foreign exchange, so voluntary filings by such a foreign parent will not relieve the FBAR filing obligation of the officer or employee of the U.S. subsidiary.

What Must be Reported?

The Treasury Department requires reporting of the highest balance for any account(s) during the year and the address of the foreign bank or other financial institution. (Periodic statements may be relied upon where they are prepared in the ordinary course of business. They may be relied upon if the statements fairly reflect the maximum account value during the year.)

There is more limited reporting for those owning a direct interest or having signature or other authority over 25 or more foreign bank or financial accounts. (Where persons have signature authority over 25 or more accounts, filers are required to provide information identifying the US person(s) having a financial interest in such accounts.) Information that is not required to be reported in these limited circumstances should be maintained for five years, since the Treasury Department or the Internal Revenue Service may request the information within this period.

Officers or employees of a legal entity who file an FBAR because of signature or other authority are not expected to personally maintain the records of the foreign financial accounts of their employer.

Are there any Broad Exceptions to Reporting?

Exceptions apply to accounts of a department or agency of the United States, an Indian Tribe, or any State or political subdivision of a State; an international financial institution of which the U.S. government is a member; U.S. military banking facilities; and correspondent accounts maintained for bank-to-bank settlements.
Participants and beneficiaries in retirement plans under IRC Sections 401(a), 403(a) & (b), including owners and beneficiaries of Individual Retirement Accounts (or Roth IRAs), are not required to file an FBAR with respect to foreign financial accounts held by or on behalf of the retirement plans.

Observation: Trustees and administrators of qualified retirement plans are not exempt from FBAR reporting. FinCEN does not believe that it is appropriate to exempt entities from the FBAR filing requirement based upon their tax exempt status.

Under consolidated reporting, any entity that is a U.S. person and owns directly or indirectly more than 50% of an entity required to file an FBAR can file a consolidated report on behalf of itself and such other entity(ies).

Observation: FinCEN has not decided whether consolidated filing relief should be available to investment funds organized by the same fund manager – i.e., for all foreign financial account information for all funds in the same family – and indicated that such funds may seek specific guidance from the Treasury Department.
Coordination with new OVDI: The final FBAR rules are independent of a second Offshore Voluntary Disclosure Initiative announced by the Treasury Department on February 8, 2011. Apparently late FBAR filings under this program for 2009 and earlier years by those having a financial interest in (rather than just signatory authority over) a foreign financial account – which generally must be made by August 31, 2011 – will not be governed by changes under these new final rules.Â

For further information, please contact Saltmarsh, Cleaveland & Gund (850) 435-8300.

This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

This publication has been prepared by EisnerAmper LLP for informational purposes only. These materials do not constitute accounting, tax or legal advice and cannot be relied upon by any taxpayer for the purpose of avoiding penalties imposed under the Internal Revenue Code.

Redistributed by Saltmarsh, Cleaveland & Gund with permission.

Saltmarsh's Suzanne Cox Gives Tax Advice on Fox 13

2011-03-21T11:32:00.000-05:00

http://www.myfoxtampabay.com/dpp/consumer/simple-math-mistakes-slow-taxes-03152011

http://www.myfoxtampabay.com/dpp/consumer/forgotten-tax-refunds-total-1B

Stay tuned for more tax advice from Suzanne Cox, CPA

Quickbooks Tips & Tricks

2011-03-21T09:47:00.000-05:00

On-Demand QuickBooks Help!

Don’t wait for an on-site appointment to get the help you need. Expert QuickBooks help is just a phone call away. Our QB Pro-Advisors use Web-Ex technology to remote onto your desktop and assist you with any QB problems or to provide you with one-on-one training. We’re right next door when you need us!

Monthly QB Tips & Tricks:

With QuickBooks 2011 you can invoice multiple customers at one time. Go to Customers>Create Batch Invoices on the grey menu bar. NOTE: You need to make sure your customer information is correct before you batch invoices. On the Batch Invoice screen, select your customers. Click “Next” and enter the invoice information you want to send to these customers. Click “Next” and QB will automatically list them for your review. Select “Create Invoices” and you’re done!

Send us your QuickBooks questions and you may see it in Monthly QB Tips & Tricks!

Covenant Hospice's Art of Fashion

2011-03-16T15:39:00.000-05:00

Claire Jackson, Mary Carolyn Rentz (friend and client of the firm) and Emily Leidner, complete with hats, attended the Kentucky Derby themed charitable luncheon.

Human Resources: Management on the Run

2011-03-16T09:02:00.000-05:00

In today’s fast paced world, everything seems to be done on the run. More and more things come in a “drive thru” fashion these days….coffee, food, dry-cleaning, etc. Because many work environments are consumed with hurried meals, discussions and meetings, it makes sense that most managers need to be able to manage on the run. Is this a bad thing? Not necessarily. With the large number of telecommuters and remote offices, managing via phone, Skype or teleconferencing is becoming more common for all of us and something that we need to embrace.

To be an effective manager “on the run”, you need to focus on your communication style and skills. As we all know, e-mail communication can be one of the most misinterpreted communication tools out there. How many times have we heard about people writing e-mails with angry overtones, cutting remarks, or maybe even career-ending humor? Whether the mode of communication is telephone, email or written, your communication should be clear and concise. Don’t leave it up to the recipient to have to interpret your meaning. If you have to explain the meaning of your email-something is wrong. Ensure that the people you work with know your style and what they can expect from you as it relates to your email communication, i.e., I USE ALL CAPS, BUT NO, I’M NOT YELLING AT YOU.

Another way to effectively lead/manage on the run is to state the purpose of a pending meeting, office visit, etc. For an employee, the worse feeling in the world is knowing that their manager is coming to see them or wants a meeting, and they have no idea what to expect or prepare. A great call or meeting always begins with preparation, right? If you leave someone hanging out there with nothing to go on except that you will be in their office at 9:00 am tomorrow, I doubt that “someone” got any sleep that night!

Workforces are becoming more and more mobile every day. It is critical that management styles and communication styles map to this. The way we communicate with all of the tools provided needs to be consistent and concise to avoid any misinterpretation. While you can’t control all interpretations of your message, at the very least you are consistent and everyone knows what to expect.

Excerpts from “Leadership & Management on the Run” by Carol McDaniel

www.hrmouthofthesouth.com

Official Blog of the HR Florida State Council, Inc.

Industry Information: Cost Basis Legislation

2011-03-14T10:32:00.002-05:00

Anyone who has sold investments knows that cost basis is important. Certainly, at one time or another most of us have been asked by our professional tax preparer to provide the acquisition date and cost basis on investments sold.

Cost basis is used to determine capital gains (gains) and losses (losses) of an investment for tax purposes. The Emergency Economic Stabilization Act of 2008 included new tax reporting requirements with significant implications for financial advisors and investors. The good news is brokers are now required to keep up with this information for you. The bad news is they will not be required to track cost basis for investments purchased prior to the new legislation.

For the first time, brokers will report the adjusted cost basis of sold securities to the IRS on Form 1099-B. The new requirements are designed to help capture accurate reporting of investors’ gains and losses at tax time. The new reporting requirements are being phased in over the next few years and apply to securities acquired on or after the effective dates as follows:

• Equities bought and sold after January 1, 2011

• Mutual funds, ETFs and DRIP shares bought and sold after January 1, 2012

• Other specified securities bought and sold on or after January 1, 2013

The legislation also requires that the new Form 1099-B indicate if the gain or loss is short-term or long-term, and the amount of any loss disallowed under the wash sale rules. The bottom line is that you will not be required to track basis on new investments. However, your tax preparer may still be calling for basis on purchases prior to the effective dates noted above.

The information and content provided is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a recommendation, or legal, tax, or investment advice, or a legal opinion. You should contact your tax advisor to help answer questions about your specific situation or needs prior to taking any action based upon this information.

Destin Relay for Life 2011

2011-03-09T09:01:00.001-06:00

Fort Walton Beach's Teri Elkins invites you to participate in the Destin Relay for Life 2011, May 6-7th.

Baby Girl Jones Shower

2011-03-08T08:31:00.001-06:00

Yesterday there was a Mardi Gras themed Baby Shower for Baby Girl Jones. Here are some highlights from the shower:

Deciding who will test which thermometer goes where.

Jason's new bumble bee hat!

David bewildered trying to guess Allison's baby belly circumference...

and so are these guys.

Trying out their new burp pads...

Fore!

2011-03-08T08:19:00.000-06:00

Kristen Stogniew and her husband, Matt Daugherty, playing in a golf tournment supporting PARC at the Bayou Club in Tampa on March 6th.

Way to represent guys!!!!!

U.S. Treasury: Small Business Lending Fund Benefits Community Banks

2011-03-07T09:17:00.000-06:00

Small Business Lending Fund

Enacted into law as part of the Small Business Jobs Act of 2010 (the Jobs Act), the Small Business Lending Fund (SBLF) is a $30 billion fund that encourages lending to small businesses by providing Tier 1 capital to qualified community banks with assets of less than $10 billion. Through the Small Business Lending Fund, Main Street banks and small businesses can work together to help create jobs and promote economic growth in local communities across the nation.

Benefits to the Nation’s Economy

Small businesses play a critical role in the U.S. economy. They are central to creating jobs and restoring our economic prosperity.

The Small Business Lending Fund enables community banks across the nation to help small businesses put Americans back to work.

How the Small Business Lending Fund Works

The Small Business Lending Fund aims to stimulate small business lending by providing capital to participating community banks.1 The price a bank pays for SBLF funding will be reduced as the bank’s small business lending increases.

Because banks leverage their capital, the Small Business Lending Fund could help increase lending to small businesses in an amount that is multiples of the total capital provided to participating banks. These new loans will enable small businesses to grow and create new jobs.

The U.S. Department of the Treasury will provide banks with capital by purchasing Tier 1-qualifying preferred stock or equivalents in each bank.

The dividend rate on SBLF funding will be reduced as a participating community bank increases its lending to small businesses. The initial dividend rate will be, at most, 5%. If a bank’s small business lending increases by 10% or more, then the rate will fall to as low as 1%. Banks that increase their lending by amounts less than 10% can benefit from rates set between 2% and 4%. If lending does not increase in the first two years, however, the rate will increase to 7%. After 4.5 years, the rate will increase to 9% if the bank has not already repaid the SBLF funding.

http://www.treasury.gov/resource-center/sb-programs/Pages/Small-Business-Lending-Fund.aspx

Industry Article: Banks May Soon Require New Online Authentication Steps

2011-03-03T10:45:00.000-06:00

The Federal Financial Institutions Examination Council is believed to be set to issue new guidelines for transactions.

Computerworld - The Federal Financial Institutions Examination Council (FFIEC) could soon release new guidelines for banks to use when authenticating users to online banking transactions.

The new guidelines will clarify the FFIEC's existing guidelines on the subject and more explicitly inform banks about what they need to do to bolster online authentication, said Avivah Litan, an analyst at Gartner.

Litan and others recently met with the FFIEC's IT subcommittee to discuss the updates. "They have been talking about it and debating it for a while," Litan said. "My understanding is that [the subcommittee meeting] was the last step in the process before they issue the new guidance."

The FFIEC is an interagency council that develops standards for the federal auditing of financial institutions by bodies such as the Federal Reserve System and the Federal Deposit Insurance Corp. (FDIC).

In 2005, it issued a set of guidelines, titled "Authentication in an Internet Banking Environment." They called on banks to upgrade their single-factor authentication processes -- typically based on user name and passwords -- with a stronger, second form of authentication by the end of 2006.

The guidance left it largely up to the banks to choose whatever second form of authentication that they felt was the most appropriate for their needs. The FFIEC listed several available authentication technologies that banks could choose from, including biometrics, one-time passwords and token-based authentication.

Since the guidelines were issued, many banks have added a second authentication layer for users when conducting certain kinds of online transactions. However, in many cases, the added measures have been largely cosmetic in nature and have done little to bolster authentication in the way the FFIEC had originally intended, Litan said.

"Obviously, some of the banks thought that it was enough if they simply added cookies or challenge/response-based authentication," Litan said. "What has happened is that the FFIEC has realized that some banks need to be told in black and white what they need to do."

The FFIEC did not immediately respond to Computerworld's requests for clarification on the purported release of the new guidelines.

News of the proposed revisions come amid growing concerns about the ability of cyber criminals to circumvent the existing authentication mechanisms used by banks for online transactions.

Over the past two years there have been a string of attacks, mostly against small and medium businesses, by cyber criminals using stolen banking credentials to plunder corporate accounts.

Such account takeovers have cost U.S. businesses in excess of over $100 million since 2008, according to the FBI.

Organizations such as NACHA-the Electronics Payments Association, have warned financial institutions about such attackers and said that much of it has resulted from the relative lack of strong authentication procedures, transaction controls and "red flag" reporting capabilities.

Such attacks have also highlighted the need for banks to install stronger transaction monitoring controls and fraud alerting systems analysts have said in the past. It's unclear whether the upcoming FFIEC guidelines will call for such controls though.

Gartner too has warned about how authentication measures such as one-time passwords and phone-based user authentication, once considered among the most robust forms of security, are being increasingly circumvented by cyber criminals.

http://www.computerworld.com/s/article/9206158/Banks_may_soon_require_new_online_authentication_steps?taxonomyId=82

Tax Information: Going Green Can Save You Money!

2011-03-02T09:22:00.000-06:00

Did you know that that going green can save you green $$$ on your income taxes? Energy efficient improvements to your residence such as exterior doors or windows, insulation, heat pumps furnaces, central air conditioners or water heaters can yield up to a $1,500 credit toward your 2010 or 2011 income taxes. Solar or geothermal improvements to your residence can save you even more…up to 30% of the cost of the qualified improvement.

HR Department: Helpful Hints for Filing and Retaining Your I-9 Forms

2011-02-28T09:04:00.000-06:00

U.S. employers are required by law to verify the employment authorization of all workers they hire on or after November 6, 1986, for employment in the United States, regardless of the workers’ immigration status. This required authorization verification is done via the I-9 Form. Below are some best practices to ensure that your company is in compliance with the I-9 retention requirements:

Maintain your I-9’s separate from your personnel files – While this is not a requirement, it is always a good idea to maintain your I-9s in a separate file for two reasons: Supervisors or managers who have access to personnel files do not have a need for access to I-9 forms. These forms contain national origin, immigration status, marital status and other protected information that should only be accessible to a few individuals in the HR department. Secondly, should your organization ever be subjected to an I-9 audit, it would be much easier to pull an I-9 folder containing all of your I-9s rather than pull all of your personnel files and have to remove the I-9 form from each one.

File active employee I-9 forms alphabetically – These “active” I-9s should be maintained alphabetically by last name so they can be easily audited against a current payroll list. REMEMBER….all current employees should have an active I-9 on file, unless they were hired prior to November 6, 1986.

Create a separate folder for terminated employee I-9 forms – When an employee is terminated, pull his or her I-9 form from the active employees and determine the retention requirement before filing it with the terminated employee forms. Once the retention date is determined, file your terminated employee I-9s chronologically by retention date.

Determine the “Retain Until” date for terminated employee I-9s – All terminated employee I-9 forms must be retained until the later of: 1) three years after their date of hire; or 2) one year after their termination date. Once the retention date is determined, note that on the I-9 form and file it chronologically with the other terminated I-9 forms. Filing chronologically, will allow you to easily pull and shred the terminated employee I-9 forms that have gone beyond their retention date.

Saltmarsh Welcomes New Employees

2011-02-24T11:08:00.003-06:00

Bill Moats will be working out of the Pensacola office as a Loan Review Consultant. Bill comes to us with over 25 years of banking experience. The past 12 years have been spent with Regions Bank, working primarily in the Commercial Banking Group. Bill has a Finance Degree from LSU and has been in the Pensacola area since 1994.

Welcome, Bill!

William Borde will be working out of our Tampa office as a Financial Institutions Consultant. William graduated with an Economics Degree from University of Florida. He has been in the banking and mortgage loan business for approximately 13 years. His most recent experience was with Countrywide Home Loans, where he worked as an Operations Account Manager and oversaw production compliance. William is also a designated Certified Bank Auditor.

Welcome William!

Saltmarsh Financial Advisors: Safeguarding Your Investments: Understanding Custody

2011-02-24T08:18:00.001-06:00

In December 2008, Bernard L. Madoff was arrested amid allegations he operated a $50 billion Ponzi scheme. He pleaded guilty to 11 felony counts on March 12, 2009, and was sentenced on June 29, 2009, to the maximum sentence of 150 years behind bars.

One of the reasons this fraud went on for so long un-detected was that Madoff was both the investment adviser and custodian to his clients. Custody by investment advisers means holding client funds or securities, directly or indirectly, or having the authority to obtain possession of them.

Investors should insist that their adviser establish their account with a third party custodian such as a bank or broker/dealer. Use of a custodian reduces the opportunity for fraud since the investment adviser does not have custody of your assets. Also, custodians send monthly or quarterly statements directly to you. Your investment adviser should also be providing you with performance reports or account statements they generate. This duplicate reporting system makes fraud easier to detect.

More information is on the web at:
http://www.sec.gov/investor/alerts/custodyinvestor-alert.htm

Financial Crisis Inquiry Commission Issues Report

2011-02-21T08:56:00.004-06:00

The Financial Crisis Inquiry Commission (FCIC), which was charged with examining the financial and economic crisis and explaining its causes, issued its final report last week. The FCIC held 19 days of public hearings and interviewed more than 700 witnesses and reviewed millions of pages of documents.
For more information:
http://c0182732.cdn1.cloudfiles.rackspacecloud.com/fcic_final_report_full.pdf

Article of Interest: What is the Difference Between Stimulus 2011 vs. 2010 for Wage Earners?

2011-02-17T08:47:00.000-06:00

Stimulus 2011 vs. 2010 for wage earners. What is the difference? For 2010, it was the Making Work Pay Credit where each wage earner received a $400 tax credit ($800 for joint filers). For 2011, there is a 2% payroll tax cut on FICA tax up to the taxable maximum $106,800. Most individuals should receive a greater benefit with a maximum $2,136 benefit per wage earner. Increased take-home pay is always a good thing!

BP Claims Update

2011-02-16T09:18:00.000-06:00

02/01/11 - Ken Feinberg of the Gulf Coast Claims Facility has promised that new claim calculation protocols for interim and final claims will be published online this week, and the Facility is now saying that interim and full-review final payments will begin by February 18^th. These new protocols should provide further insight into the claims calculation process and hopefully assist claimants in presenting their claims to the GCCF.

Article of Interest: JOA Discusses the Proposed Changes to the GAO's Yellow Book

2011-02-10T08:47:00.000-06:00

Proposed Changes to GAO's Yellow Book Promote Harmonization of Auditing Standards

Revisions incorporate more formal conceptual framework for independence issues.
By James R. Dalkin, CPA
December 2010

In August, the Government Accountability Office (GAO) issued proposed standards revising Generally Accepted Government Auditing Standards (GAGAS), commonly known as the “Yellow Book.” The update revises the July 2007 Yellow Book and is expected to be effective for audits beginning after Dec. 15, 2011, with the exception of the financial chapter, which will have an effective date to coincide with the AICPA’s Auditing Standards Board (ASB) Clarity Project. This article highlights the significant changes in the proposed standards.

The Yellow Book was first published in 1972 and has been updated and revised over the years. Two primary factors are driving the current Yellow Book update:

Continued modernization and harmonization of auditing standards by various standard-setting bodies, including technical updates to reflect standards that have already been revised.

Revisions to address issues and frequently asked questions from the GAO’s Yellow Book technical assistance line.

Another important consideration in updating the Yellow Book has been the ASB Clarity Project. As the ASB more closely aligns U.S. auditing standards with those issued by the International Auditing and Assurance Standards Board, the GAO reviews the standards and assesses their potential impact on GAGAS.

The proposed standards include other changes to further clarify and harmonize the standards. For instance, emphasis has been placed on removing duplication with ASB requirements and clarifying what represents an additive standard for GAGAS. Another example will be the elimination of the AICPA definitions for material weaknesses and significant deficiencies. These definitions will now be incorporated by reference. In addition, to provide a format consistent with the ASB Clarity Project, the footnote format has been refined to include only a direct reference to another standard.

CHAPTER REORGANIZATION

Readers will quickly notice a reorganization of the Yellow Book. Ethical principles, formerly in chapter two, have now been incorporated into chapter one on the foundational concepts of GAGAS. Chapter two now emphasizes the application of GAGAS. Also, financial audit chapters four and five have been merged into a single chapter.

INDEPENDENCE REVISIONS

Substantial changes have been incorporated into chapter three covering independence. The 2007 revision emphasized overarching principles of independence such as auditors not auditing their own work or taking the role of management. The principles were augmented by a question-and-answer guide that featured specific facts and circumstances. The guide had limitations in its applicability and usefulness due to its specificity.

The Yellow Book Advisory Council and staff concluded that a more formalized conceptual framework could provide a uniform structure for analyzing the many independence issues that can arise, each with its own facts and circumstances.

Under the new framework, the auditor identifies threats to independence and then assesses the significance of the threats. If identified threats are deemed significant to the engagement, the auditor then determines whether safeguards could be put in place to mitigate the threats to an acceptable level. The framework also provides guidance on the significance of certain specific threats and whether those threats can be mitigated.

This threat assessment and application of safeguards requires professional judgment. If the auditor concludes that there are no safeguards sufficient to reduce a threat to an acceptable level, then the threat would result in an impairment to independence, and the auditor should respond accordingly. The auditor is required to document any independence issue that requires significant discussion or analysis.

THREATS AND SAFEGUARDS

The proposed standards identify categories of threats that occur through:

Self-review. An auditor reviews his/ her own work.
Self-interest. An auditor has a vested interest in the audit results.
Bias. An auditor has a preconceived notion regardless of results.
Familiarity over time. An auditor has become too close to the subject of the audit.
Undue influence. Pressures may impair an auditor’s judgment.
Management participation. An auditor takes the role of management.
Structural. A governmental structure may create an appearance of impairment.

Under the proposed standards, if a nonaudit service is not expressly prohibited, the auditor should apply the conceptual framework to conclude whether a potential impairment exists. In some cases, safeguards may mitigate threats to an acceptable level. However, even if properly applied, safeguards may not always be sufficient to reduce some threats. The proposed standards identify safeguards created by the profession as well as those directly related to the work environment. Examples include:

Professional or regulatory monitoring and disciplinary procedures.
External reviews by third parties of reports.
Using different management and engagement teams with separate reporting lines for the provision of nonaudit services to an audited entity.
Additional review requirements for nonaudit services.
Additional oversight by the audited entity’s management over nonaudit services.

PROHIBITIONS WITHIN CERTAIN NONAUDIT SERVICES

While the proposed standards provide a conceptual framework for independence issues, certain specific prohibitions still exist. These prohibitions involve areas that have been problematic in the past and particularly so in a governmental public-sector environment. It is important to note that the entire nonaudit service is not prohibited, just certain services. Within each of the following nonaudit categories, specific services are expressly prohibited:

Internal Audit Services
Establishing internal audit policies or strategic direction of the auditee.
Selecting or implementing internal audit recommendations.
Designing, implementing or maintaining internal control.
Internal Control Monitoring and Assessments
Providing ongoing monitoring procedures.
Information Technology (IT) Services
Designing or developing an information system that would be subject to an audit.
Modifying source code.
Operating or supervising an IT service.
Valuation Services
Providing valuation services that would have a material effect, separately or in the aggregate, on the financial statements or other information that is subject to an audit, and the valuation involves a significant degree of subjectivity.
Financial Statement Preparation, Bookkeeping, and Client Assistance
An area that the profession continues to struggle with involves maintaining independence when the auditor provides the audited entity with assistance in bookkeeping and financial statement preparation. Whether it involves converting cash statements to accrual basis or preparing financial statements, the auditor frequently walks a fine line between independence and impairment. The GAO’s proposed standards are consistent with those of the AICPA in identifying certain activities that create an automatic impairment. These include:
Determining or changing journal entries, account codings, classifications for transactions, or other accounting records without obtaining client approval.
Authorizing or approving transactions.
Preparing source documents.
Changing source documents without client approval.

The proposed standards do not expressly prohibit a practitioner from providing bookkeeping or financial statement preparation other than the activities listed as prohibited in the standards. Before performing bookkeeping and financial services not expressly prohibited, the auditor should evaluate them within the conceptual framework to determine whether an impairment exists.

For bookkeeping and financial statement activities that are not expressly prohibited, management charged with overseeing the nonaudit service should possess suitable skill, knowledge or experience to evaluate the adequacy and results of the services performed. If management does not have suitable skill knowledge or experience to evaluate the adequacy and results of the services performed, an impairment exists. This requirement currently exists for CPAs under the AICPA’s Code of Professional Conduct, Rule 101, Independence (Interpretation 101-3, Performance of Nonattest Services).

AUDITS SUBSEQUENT TO NONAUDIT SERVICES

The proposed standards introduce the concept of a post-impairment period. This period reflects the audit period immediately after the auditor provides an independence- impairing service. Under the proposed standards, auditors who perform independence-impairing nonaudit services may audit in subsequent periods only after sufficient safeguards have been identified to mitigate the threat. One example of a safeguard would be the performance of an audit by an auditor not providing the original nonaudit service. The auditor should also consider issues of independence in appearance that may arise should an audit be performed after an impairing nonaudit service has been provided.

QUESTION-AND-ANSWER GUIDE RETIREMENT

The Answers to Independence Standards Questions (QA Guide) issued in July 2002 will be superseded by the new standards once they are finalized. Under the new independence framework, unless the service is specifically prohibited, the conceptual framework should be applied. Certain specific situations addressed in the original QA Guide such as “de minimis,” nonaudit services, and safe harbors have not been included in the proposed standards and will no longer apply. Instead, under the more principle-based framework, auditors will need to address the threats and safeguards within the conceptual framework.

QUALITY CONTROL

The proposed standards have further harmonized quality control with that of the AICPA. Audit organizations and firms that are in compliance with AICPA quality-control requirements would be consistent with the requirements of the proposed standards.

SPECIALISTS AND CONTINUING EDUCATION REQUIREMENTS

The basic continuing professional education (CPE) requirements under GAGAS have not changed from the 2007 Yellow Book. However, the proposed standard clarifies continuing education requirements for internal specialists such as actuaries. Auditors who work under GAGAS should complete a minimum of 24 hours of CPE every two years. Internal specialists who apply their specialized knowledge to the audit should complete 24 hours of CPE in their area of specialty. For example, an actuary may satisfy the educational requirement with 24 hours of CPE training in actuarial science. Consistent with the extant standards, external specialists are not required to follow the CPE requirements; however, auditors are required to consider whether external specialists are qualified to serve an engagement.

FINANCIAL AUDIT CHAPTER

The combined financial audit chapter does not contain any new requirements. However, the revision did reduce redundancy and changed certain terminology. Consistent with the ASB Clarity Project, the term “field work” has been replaced with “performance.” The proposed standards will continue to use the term “field work” when discussing attest engagements until the AICPA revises its wording in the AICPA attestation standards.

In addition, requirements already included in the AICPA audit standards have been eliminated from the proposed standards. These include:

Restatements.
Definitions of internal control deficiencies.
Communication of significant matters.
Consideration of fraud and illegal acts.

ATTESTATION ENGAGEMENTS

The volume of calls to the Yellow Book technical assistance line prompted revisions to the chapter on attestation engagements. One area of confusion has been determining whether an engagement is a form of attest (examination, review, or agreed-upon procedure) or a performance audit. The chapter has been revised to more clearly delineate between the types of engagements. Additional guidance has been incorporated into the chapter to direct the reader to the proper service. In all cases, if the auditor provides attest services, he or she should review and follow all guidance provided by the AICPA on these services. The proposed standards provide supplemental requirements and guidance, while the AICPA audit standards provide the foundational requirements.

PERFORMANCE AUDITS

The performance audit chapter has been updated but has not been substantially changed. One change clarifies fraud reporting requirements within performance audits to specify that reporting is required for occurrences that are significant within the context of the audit objectives.

PRACTITIONER IMPLEMENTATION AND ASSISTANCE

As with any proposed standard, practitioners need to read carefully and understand the nature of the changes before attempting to apply them. The GAO offers technical assistance for questions related to government auditing standards. The AICPA offers guidance through its Governmental Audit Quality Center.

The comment deadline was Nov. 22, 2010. The Yellow Book Advisory Council and GAO are evaluating the comment letters and will make changes to the final draft as appropriate. Government Auditing Standards, 2010 Exposure Draft, can be downloaded at gao.gov/govaud/ybk01.htm.

http://www.journalofaccountancy.com/Issues/2010/Dec/20102944

Saltmarsh Welcomes a New Employee

2011-02-08T09:50:00.000-06:00

On Monday, Andrea Comeau joined our office as an Administrative Assistant, working for the Banking Department. Andrea was recently “downsized” from Synovus Bank (formally Coastal Bank and Trust). She was with the bank for 21 years and was the Executive Assistant to the Bank President. We are excited to bring her on board.

Industry Article: Florida bank losses top $1B for 2010

2011-02-07T14:30:00.000-06:00

Florida’s 218 banking institutions lost a combined $1.023 billion in 2010.

The 46 banks in the Tampa Bay area posted combined losses of $74.3 million last year, a report from Saltmarsh Cleaveland & Gund said.

“Performance levels have shown little improvement since September 2010,” said Lee Bell, shareholder in the Tampa office of the accounting firm.

In 2009, Florida banks lost a combined $2.17 billion, and 58 banks in the Tampa Bay area lost a combined $289.7 million. Several banks have failed since then.

Florida Bank, headquartered in Tampa and with $839.5 million in assets, posted the biggest loss of any Bay area bank with a $42.3 million loss in 2010, more than half the total for the area’s banks.

The most profitable bank was American Momentum Bank, a Tampa bank with $663.9 million in assets. American Momentum had net income of $9.7 million for 2010.

Thirty-nine banks in the state had total risk-based capital ratios of below the 10 percent that’s considered well capitalized by regulators. In the Bay area, those banks included First Commercial Bank of Tampa Bay with a total risk-based capital ratio of 4.27 percent at year’s end; Old Harbor Bank, 4.74 percent; LandMark Bank of Florida, 5.9 percent; First Home Bank, 6 percent; SouthShore Community Bank, 6.06 percent; Cortez Community Bank, 7.52 percent; Bank of Commerce, 8.61 percent; Heritage Bank of Florida, 9.05 percent; and Freedom Bank of America, 9.4 percent.

Banks with the highest levels of nonperforming assets as a percent of assets include Southern Commerce with 27.32 percent; Cortez, 24.43 percent; First Commercial, 16.09 percent; and LandMark, 17 percent.

Saltmarsh's Charity Breakfast

2011-01-19T10:06:00.003-06:00

The FWB office of Saltmarsh, Cleaveland & Gund is sponsoring a charity breakfast to benefit the American Cancer Society Relay For Life. We could use some help with waiting tables, collecting money, or just buying a ticket and attending the event. Please Teri Elkins if you would be willing to help out.

You can also donate to our team by clicking on the link below.

http://main.acsevents.org/site/TR/RelayForLife/RFLFY11FL?team_id=771496&pg=team&fr_id=31641

Pancakes - Sausage - Orange Juice - Coffee

Saturday, January 29, 2011 8 - 10 AM

Magnolia Grill 157 Brooks St. SE Ft Walton Beach

$5 at the door

or contact Teri for tickets

243-6713 x1209; teri.elkins@saltmarshcpa.com

All proceeds benefit the American Cancer Society Relay For Life

Noble Among Elite Group at Advanced Financial Planning Conference

2011-01-19T09:56:00.003-06:00

W. Gregg Noble, CPA, PFS at Saltmarsh, Cleaveland & Gund, attended the 2011 Advanced Personal Financial Planning Conference in Las Vegas where he gained enhanced education on investments, insurance, tax, estate, retirement and elder planning from some of the world’s foremost experts on those issues.

The conference is held annually by the American Institute of Certified Public Accountants exclusively for CPA personal financial planners to learn new tools and techniques that can help clients achieve their financial goals; gain up-to-the minute information on changes by lawmakers and rule makers that could affect clients’ finances; and network with an elite group of financial planners from around the country to share best practices.

Noble is a Shareholder in the Pensacola office of Saltmarsh, Cleaveland & Gund. He is also a registered investment advisor and member of Saltmarsh Financial Advisors, LLC. Noble has been practicing accounting since 1981. His experience includes auditing, taxation, consulting and accounting services. Gregg has also concentrated on estate and fiduciary taxation, estate planning, individual taxation and investment advisory services since 1987.

PNJ's People on the Move

2011-01-19T09:54:00.000-06:00

Several other of our folks have been featured in the PNJ as well!

http://www.pnj.com/apps/pbcs.dll/article?AID=2011101160315

http://www.pnj.com/apps/pbcs.dll/article?AID=2011110105005

Angelika in the news!

2011-01-19T09:51:00.003-06:00

In the PNJ's "Away from the Bay," Angelika's family trip to Iceland was featured!

Scharf Appointed to Executive Committee at Saltmarsh, Cleaveland & Gund

2011-01-11T10:40:00.000-06:00

Glenn Scharf, CPA, at Saltmarsh, Cleaveland & Gund, has been selected to serve on the Executive Committee effective January 1, 2011.

Scharf is a Shareholder in Saltmarsh’s Fort Walton Beach office. He began his career in 1991 after graduating from the University of Florida with a Masters in Tax. Scharf brings to Saltmarsh expertise in a variety of fields including: taxation, accounting, process engineering, business consulting and tax management solutions. He was previously employed by Deloitte & Touche, LLP and Arthur Andersen, LLP in Atlanta.

The Executive Committee consists of Ron Jackson, President, Charles Gund, Jr., Shareholder and newly elected Glenn Scharf.

2011 Promotions

2010-12-28T11:11:00.012-06:00

The following promotions at Saltmarsh, Cleaveland & Gund are effective January 1, 2011:

James Schulte has been promoted to Senior in the Audit Services Department of Saltmarsh, Cleaveland and Gund. His areas of concentration include manufacturing and transportation companies, nonprofit organizations, governmental entities and employee benefit plans.

Josh Jackson, CPA has been promoted to Senior Manager in the Financial Institution/Audit Services Department of Saltmarsh, Cleaveland & Gund. He works extensively with our financial institution clients in delivering accounting and auditing services, directors’ examinations, and loan and credit quality reviews. Jackson also has experience in asset-liability management and business valuations.

Andrew Kent has been promoted to Senior Manager in the Litigation and Valuations Consulting segment of Saltmarsh, Cleaveland & Gund. He is a Certified Business Appraiser (CBA), a Certified Machinery and Equipment Appraiser (CMEA) and holds both a J.D. and M.B.A. from the University of Florida.

Kendra Woods has been promoted to Senior in the Retirement and Medical Plans Department of Saltmarsh, Cleaveland & Gund. She works exclusively with our flexible spending account clients. Woods is currently working on her M.B.A in the field of Healthcare Administration.

Congrats James, Josh, Andrew and Kendra!

New Employee - Catie Purdon

2010-12-28T10:52:00.002-06:00

Yesterday Catie Purdon joined the Pensacola office as a Staff Accountant in our TASG department. Many of you probably remember Catie from when she interned with us during the 2010 tax season. She has since graduated from UWF with her Master’s Degree in Accounting and we are happy to have her back as a full time employee now. Catie will be at extension 1109 and will be sitting in the office with Mike Miller.

Welcome back Catie!

Wishing you and yours a...

2010-12-22T08:27:00.002-06:00

New Employee - Kevin Jones

2010-12-21T16:26:00.002-06:00

Please welcome Kevin Jones to the Pensacola office. Kevin will be started with us this week as a Staff Auditor in the Audit Services department. Kevin is a UWF recruit from 2009 and just graduated this month with his Bachelor’s Degree in Accounting.

We are pleased to have Kevin on board!

President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (The 2010 Act).

2010-12-20T13:40:00.000-06:00

President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (The 2010 Act).

The 2010 Act contains a number of favorable provisions, including a two-year extension of the Bush-era tax cuts, estate tax relief, extension and enhancement of a number of business and individual tax breaks, a two-year alternative minimum tax (AMT) “patch,” a 2% payroll/self-employment tax cut for 2011 for employees and self-employed individuals, and reinstatement of the sales tax deduction for 2010 and 2011.

The key elements of the package include the following:

• The current income tax rates will be retained for two years (2011 and 2012), with a top rate of 35% on ordinary income and 15% on qualified dividends and long-term capital gains.
• Employees and self-employed workers will receive a reduction of two percentage points in Social Security payroll tax in 2011, bringing the rate down from 6.2% to 4.2% for employees, and from 12.4% to 10.4% for the self-employed.
• A two-year AMT “patch” for 2010 and 2011 will keep the AMT exemption near current levels and allow personal credits to offset AMT. Without the patch, an estimated 21 million additional taxpayers would have owed AMT for 2010.
• Key tax credits for working families that were enacted or expanded in the American Recovery and Reinvestment Act of 2009 will be retained. Specifically, the new law extends the $1,000 child tax credit and maintains its expanded refundability for two years, extends rules expanding the earned income credit for larger families and married couples, and extends the higher education tax credit (the American Opportunity tax credit) and its partial refundability for two years.
• The research credit for expenditures incurred after December 31, 2009, but before December 31, 2011 has been reinstated.
• Businesses can write off 100% of their equipment and machinery purchases, effective for property placed in service after September 8, 2010 and through December 31, 2011. For property placed in service in 2012, the new law provides for 50% additional first-year depreciation.
• Many of the “traditional” tax extenders are extended for two years, retroactively to 2010 and through the end of 2011. Among many others, the extended provisions 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.
• After a one-year hiatus, the estate tax will be reinstated for 2011 and 2012, with a top rate of 35%. The exemption amount will be $5 million per individual in 2011 and will be indexed to inflation in following years. Estates of people who died in 2010 can choose to follow either 2010’s or 2011’s rules.

For questions please don't hesitate to email us at TAXACCinfo@saltmarshcpa.com

Tampa Office Celebrates Family Style

2010-12-14T14:49:00.003-06:00

The Tampa office (minus Dennis, Fran and Julie who were out of town and with the addition of Casey, a good friend to Saltmarsh) celebrated the holidays with food, fun and fellowship; family style at Maggiano's. There was lots of food and even more laughs shared at the table of 8! It was a great way to celebrate a wonderful year full of new faces and exciting changes with more to come in 2011.

From our family to yours, Wishing you a very Merry Christmas and a Happy New Year!

Saltmarsh Wearables

2010-12-09T10:09:00.001-06:00

Our shirt company's website is open at all times for you to order whenever you please.

You can access this site by clicking on the following link:
www.companycasuals.com/saltmarshcpa/start.jsp

If you are a recent hire and have not gotten your complimentary Saltmarsh shirt (up to a $30 value), please do so!

Also, just a reminder that since these are embroidered, they are not returnable… please double check the sizing chart (“VIEW SPECSHEET” on the item’s info. page) before ordering!

Some Christmas Party pics!

2010-12-07T10:27:00.016-06:00

Gaines joins Saltmarsh, Cleaveland & Gund

2010-12-07T10:19:00.002-06:00

Benny Gaines has joined our firm as Senior Manager in our Retirement and Medical Plan (RAMP) Consulting Department. He has been practicing public accounting since 1989. Prior to joining Saltmarsh, Gaines worked with the international accounting firm of Deloitte & Touche for over 16 years, having served clients in Nashville, TN, Dallas, TX, and McLean, VA. His career has included an extensive employee benefits consulting background in both public accounting and private industry.