May 2017 Print

President's Message






Okay, the whirlwind of the season has passed, or has it.  For me, I took three days to collect my thoughts, catch a breath and figure out what’s next.  Then panic set back in after I took the time to count the number of extensions I had to file this year.

More of my clients came later than ever, and I vowed last year to curb that practice. I set appointments, but clients never opened the envelope. I also added an online scheduling service. It sent reminders via email and text and that worked well. I’m sure I am not alone in trying to solve this problem.

Now is the time to begin thinking about how to improve your practice for next year.  Here are the questions I ask myself:

  1. How do you automate more of the process without draining the bank account?
  2. How do a further cultivate the relationships with my best clients and which of my clients need to be jettisoned?
  3. What avenues will I pursue to attract more of the right kind of clients?
  4. How big of a practice do I really want?

It’s also time to start thinking about how you are going to fill your education calendar for 2017. CSTC offers so many avenues to accomplish that goal, starting with the Summer Symposium in Las Vegas. The Symposium offers 25 hours of CE over 3 days and can be a one-stop opportunity to get your CE in under a week.

At the heart of CSTC is the 15-chapter network across the state that offer seminars on a monthly basis. The CSTC calendar of events on the Society website has an up to date schedule of all seminars offered by the chapters.

At CSTC, we’re here to make sure that no one goes it alone when working in a smaller practice. From education to networking resources, CSTC offers the services you need to make your tax practice thrive. But the only way to get the full effect of CSTC is to participate. I hope I’ll see you at a CSTC event soon.

Rodney J. Couts, EA

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Membership Dues Coming Soon.....



These are questions that are asked all the time at our Membership recruitment tables.  The numerous benefits of membership in CSTC could be listed here but instead of telling you the obvious benefits consider the life-long friendships that are made and how those friendships are there for you when you are sick or when a loved one passes away or when you desperately need help with a tax return.  To be a member of CSTC is both professionally and personally beneficial. 

Renew your membership in this great organization, now.  Remember, the more you give the more you receive!  Watch members who become involved and see how they grow professionally. 

July 1st dues are due and payable.  If you haven’t already paid your dues, send them in today.  Get involved and reap the benefits!

Ask not what your organization can do for you but what you can do for your organization!


Go to: 

Click on Member Area


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Chapter & Member Recognition

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And the award goes to............



 For perfect submission of Society documents in 2016. 
This chaper utilizes Google Drive Promptly, Posting Paperwork Perfectly!


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Welcome New Members




Central Valley



Greater Long Beach



Los Angeles





Orange County 



San Francisco Bay




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Image result for wheel of fortune clip art free


31st Summer Tax Symposium 

Las Vegas, NV

June 4 - 7, 2017

Wheel of taxes!
Let the good times roll...... Image result for dice clipart free                                                                            

The Summer Symposium is CSTC's 3-day (25 hour) seminar that allows you to enhance and develop your tax knowledge for your clients.  The 35 sessions give you the choices you need to create a personal schedule for your own enrichment.


25 Hours of CE  



Room Rate - $35+tax/Single/Double
Call for reservations direct (888) 402-6278
Group Code: A7CSC06 

Click here for brochure 

CANCELLATION POLICY No Show Policy: No Refund. Symposium materials may be 
requested.  REFUND FOR CANCELLATION: Fee less 15% for costs & handling will be
made only if requested before May 19, 2017.


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Calendar of Events

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May 12 & 13........Society Board Meeting.....Orange

May 17................CTEC Provider Meeting....Sacramento

June 4-7..............Summer Symposium.......Las Vegas 

August 29-31.......IRS Tax Forum................Las Vegas

September 12-14..IRS Tax Forum................San Diego

September 21.......Autumn Classic........Morongo Casino

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Technical Article

How to Report a W-2 Data Theft

Businesses and payroll service providers can now quickly report data losses resulting from a scam fraudsters are using to trick employees into revealing W-2 information. Find out how at Form W2/SSN Data Theft: Information for Businesses and Payroll Service Providers. If notified in time, the IRS can prevent employees from being victimized by identity thieves filing fraudulent returns in their names.

Separately, the Internal Revenue Service, state tax agencies and the tax industry warned tax professionals to beware of a phishing email scam involving IRS e-Services.

A tax professional who experiences any type of data breach should quickly report the incident to the IRS. Tax professionals may contact their local stakeholder liaison. See details at Data Theft Information for Tax Professionals.


For Small Business Startups: New Option to Claim Research Credit

The Internal Revenue Service issued interim guidance explaining how eligible small businesses can take advantage of a new option enabling them to apply part or all of a research credit against payroll tax liability instead of income tax liability. Before 2016 taxpayers could only take the research credit against income tax liability.

Identity Theft Information for Tax Professionals

Tax professionals play a critical role in assisting clients, both individuals and businesses, who are victims of tax-related identity theft. The IRS, state tax agencies and the tax industry are working to prevent and detect identity theft as well as reduce the time it takes to resolve these cases.

What is tax-related identity theft?

Tax-related identity theft occurs when someone uses a Social Security number (SSN) — either a client’s, a spouse’s, or dependent’s — to file a tax return claiming a fraudulent refund. Thieves may also use a stolen Employer Identification Number (EIN) from a business client to create false Forms W-2 to support refund fraud schemes.

How to know if a client is a victim of tax-related identity theft

Tax professionals may be unaware a client is a victim of identity theft until they attempt to file the tax return and it is rejected as a duplicate return. Other indicators include receiving a notice regarding:

  • More than one tax return filed using the client’s SSN,

  • A balance due, refund offset or collection action taken for a year in which no return was filed,

  • IRS or state records indicate the client received wages from an unknown employer,

  • An amended tax return, fictitious employees or about a defunct, closed or dormant business (for business clients).

Did someone file a tax return or W-2 using a client’s SSN?

If a client’s SSN has been compromised, whether from a data breach, computer hack or stolen wallet, and they have reason to believe they are at risk for tax-related identity theft, tax pros should take these steps:

  • If the client received an IRS or state notice, respond immediately.

  • Complete IRS Form 14039, Identity Theft Affidavit, if  directed to do so by the IRS or if the

    client’s e-file return rejects because of a duplicate SSN and there are no other errors (example:

    transposed numbers). Fax or mail to the IRS according to the instructions.

  • Follow identity theft reporting procedures provided on the client’s state revenue agency website.

  • To inquire about specific client return information, preparers must have a power of attorney on

    file and must authenticate their identity with the IRS or state customer service representative.

What can preparers do if a client is a victim of identity theft?

The Federal Trade Commission, the lead federal agency on general identity theft issues, has recommended steps identity theft victims should take to protect their credit. See for general recommendations for clients. Other steps include:

  • For identity theft victims who previously contacted IRS and have not achieved a resolution,

    contact IRS for specialized assistance at 800-908-4490. Contact state revenue agencies per the

    website’s instructions.

  • Clients should continue to file returns and pay taxes, even if it must be done by paper.

How can preparers protect clients’ sensitive information?

  • When providing clients with copies of their tax returns, preparers can redact or mark out the

    Social Security numbers and bank account information for client protection.

  • The IRS, state tax agencies and the tax industry launched an ongoing awareness campaign for

    taxpayers called Taxes. Security. Together. A similar awareness effort is directed at tax

    professionals, Protect Your Clients; Protect Yourself.

  • Be aware that tax preparation businesses can become a target for criminals. Follow IRS security

    guidelines in Publication 4557, Safeguarding Taxpayer Data, for protecting taxpayer information.

    Related Resources:


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