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March 2017 | Volume XXIV | No. 2

In this issue:•Presidents Message 2•Scholarship Winners 2•Exam Passers 3•New Members 3•YP Event 3

•Member Profiles 4•YP Article 5 •Exec Director Column 6•NDSBA Notes 6•Foundation Donors 7

•CPE 8•Tax Commissioner Letter 11•Classifieds 12 •IRS News 14•Ethics Corner 15

an advocate for cpasOnce again hundreds of proposals have been introduced in the North Dakota Legislature. They won’t all sur-vive, but each would affect someone. As a CPA advocate, we look for those bills that might impact the CPA profes-sion. There have been about a dozen that required a closer look so far, two of which are related to LLCs – 2159 and 2223.

In addition to staff monitoring, the Society retains a legislative support firm based in Bismarck. We have been associated with the firm for many years. I think of us as a good type of client – a faithful customer that pays its bills, but only occasionally looks for help. That is due to the selective focus we use. We don’t weigh in on such things as social issues or the budgets of state agencies. Instead, we focus on issues of relevance to the CPAs, as a profession.

The Society also hosts a legislative reception in Bismarck, during the Session. This year’s event was on January 23rd. We also work on maintaining good relations with lawmakers throughout the year. We meet personally with individual lawmakers in their hometown, in some cases at their home or place of business. Such visits do not include a request for help, but are more of a social visit without a legislative agenda. As a result, we’re not just showing up when we want something. You can help convey a message. If you visit with a legislator, please let them know we’re willing to help with legislative work. CPAs may have insight on the impact of a potential law change which could be helpful when considering the proposal.

NDCPAS -- an advocate for your CPA profession.

By Jim Abbott

2017

conferences

Management ConferenceMay 22-23, 2017Fargo Holiday Inn

Variety PackJune 20-21, 2017Bismarck Ramkota

Small Firm ConnexxionsJune 22, 2017Bismarck Ramkota

annual cpa ConventionSeptember 17-9, 2017Grand Forks Alerus Center

technology conferenceNov. 8-9, 2017Fargo Ramada Plaza Suites

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PRESIDENTS MessageMarch 2017

Marci Schorsch, CPA

Time and time again, surveys indicate that CPAs are some of the most trusted financial professionals - an accolade we all humbly honor and vow to protect. I know from my own experience working in industry that when dealing with both internal and external parties, I get top consideration and respect when they see CPA behind my name. This distinction lends credibility to both me and my employer and maximizes third party deliverables back to me.

That’s a win-win situation that adds real value to the bottom line!

I recently witnessed this phenomenon again on January 23 when our ND CPA Society held a legislative reception in Bismarck for all congressmen/women and senators serving in the legislature this session. The reception ran from 4:30 to 7:30 and attendees were treated to a nice variety of tasty hors d’oeuvres and assorted beverages. The event was a success with over fifty legislators in attendance who were hosted by local CPA Society members along with our Executive Director, Jim Abbott. This is quite a showing considering the fact that we do not currently have specific legislation under consideration and we didn’t offer a formal dinner with paid entertainment to lure them in! No, the legislators came because they respect our profession and wanted to connect with us, and we with them, as an accessible resource for issues that may arise now and in the future.

I encourage you to take advantage of opportunities like this that are sponsored or promoted by your ND CPA Society. If you have an active local CPA Chapter, make a point to attend those meetings to network with your colleagues and hear from your community leaders who respect you. For example, on February 8th, the Bismarck-Mandan CPA Chapter met over lunch in Bismarck. Tax Commissioner Ryan Rauschenberger took time out of his busy schedule to come and speak about North Dakota tax matters. The presentation was very informative showing tax revenues and general fund expenditures just prior to the oil boom up until last year. Additionally, Ryan discussed the current legislative challenges to balance the budget with projected revenue shortfalls and areas that will likely see cuts for the next biennium. We even engaged in a little Q&A where he got to try and address the question about collecting any possible tax revenues from paid environmental activists earning income in ND during the Dakota Access Pipeline protest.

As a final note, I hope you found time to take in the FREE CPE webinar over the lunch hour on February 15th. “When Fraud Hits Close to Home: How Professional Responsibilities Can Lead to Personal Liability” was brought to you by…your ND CPA Society! It is part of our mission to serve your educational needs, even within the constraints of your busy schedule.

All the best to everyone in the home stretch! May you join with others and let your CPA light shine on our highly regarded and trusted profession!

Michael KorfMichael Korf attends Minnesota State University Moorhead and Master’s Baptist College. Hometown Detroit Lakes, MN

Kathleen MartinsonKathleen Martinson is a senior at NDSU, and graduates December 2017. Hometown Fergus Falls, MN

Kenady MartinsonKenady is a senior at NDSU and will graduate in December 2017 with 150 credits to sit for the CPA exam. Hometown Rollette, ND

Isaac SchwehrIsaac will graduate from the University of Mary in the spring of 2017. Hometown Hazen, ND

Sierra SerhienkoSierra is a Senior at the University of North Dakota and will graduate in December 2017. Hometown Bottineau, ND

2016 BOARD OF DIRECTORSCongratulations!

SCHOLARSHIP Winners

COLLEAGUES YOU CAN COUNT ON 3

8:30-9:00 Breakfast Social/Check In9:00-11:00 Interpersonal Communication11:00-11:45 Lunch11:45-1:15 Skillfull Collaboration1:30-3:00 Leadership 101

Cost $85 ($15 Student)

2017 spring yp event

April 258:30 am - 3:00 pmEide Bailly - Fargo

Young Professionals -- mark your calendars for the spring event. Watch your email for more details.

Schedule of Events:

Exam Passers

KateLynn Albers, Hazen NDJean Arel, Horace NDLisa Arndt, Arvada COJoshua Blevins, Houston TXJulia Blevins, Houston TXJoey Cherrey, Bismarck NDShadreck Chiweshe, Minot NDXinglin Cui, Chengdu ChinaVictoria Dalziel, Grand Forks NDAlex DeConcini, West Fargo NDBenjamin Doda, Moorhead MNMorgan Ellingworth, Moorhead MNJustin Fox, Fargo NDKatie Frank, Fargo NDMariah Geiger, Hopkins MNStefan Graml, Munich Michelle Gramling, Bismarck NDBreann Harm, Mandan NDDaniel Hume, West Fargo NDPaul Hunter, Minneapolis MN

Charles Jacobi, Grand Forks NDChristopher Johnson, Dickinson NDKevin Keller, West Fargo NDLovelace Kesse Anyimadu, Fargo NDBrennon Kitten, West Fargo NDAlex Kohns, Plymouth MNGuillaume Kurt, Lausanne Brett Kusler, Bismarck NDNolan Larson, Fargo NDLandis Lavanger, Fargo NDJonathan Lee, Parshall NDMegan Limke, St Anthony MNJin Lin, Shenzhen , China Jared Mack, Mandan NDSanja Majid, Duesseldorf Erik McLaughlin, Maple Grove MNAmy McVay, Moorhead MNKarissa Meyer, Minnetonka MNJeffrey Palmer, Victor IDStephani Pastir, Hallock MN

Shalayna Phelps, Bismarck NDChristian Quam, Apple Valley MNSuresh Ramachandran, Edmonton Shashi Rathee, Mamaroneck NYJill Rothschadl, Goodyear AZAli Saeedi Velashani, Grand Forks NDPao-Yueh Schollmeyer, Bismarck NDChristopher Seeba, Grafton NDBret Sheeley, Fargo NDAlexander Sudkamp, Hamburg Hunter Thorsen, Moorhead MNThu Tran, Brossard Barbara Trautman, Jamestown NDXue Qing Wang, Weigongcun Keying Wang, Shenzhen Addie Weeks, Minot NDKevin Wentz, West Fargo NDBrian Zerface, Fargo NDYinglei Zhao, Shenzhen

The following candidates passed the CPA exam from July 1, 2016 through December 31, 2016

New MembersWelcome

Amelia Bickler, BismarckTrevor Brandner, MoorheadStephanie Clinton, CircleJustin Deede, BismarckBradley Erckenbrack, FargoHakyung Kim, DickinsonJessica Martin, LincolnJamie Passanante, FargoPeter Simon, Grand ForksMatthew Stjern, Grand Forks

Society AwardsThe Making a Difference Award is available to recognize significant contributions in community service or within education, or service to the CPA Society. Recipients must be a CPA and Society member. Nomination forms are available at ndcpas.org/awards and are due July 31.

Life Membership This award is to recognize long-standing Society participation. The recipient must be a CPA and retired (not employed full time, and be 60

or older). Generally the award will be presented to a CPA who has been actively involved over a number of years. To nominate or apply for life membership, simply prepare a brief recommendation letter and email it to the Society office, mail@ndcpas.org. Nominations due May 15.

Board of Directors ScholarshipThese $1000 awards are available to student members and affiliates. The recipient should be planning to write the CPA exam and become a

CPA. Applicants are to apply online, and provide a narrative about why they’re pursuing the CPA credential. Application instructions are at ndcpas.org/scholarships. To become a member, see ndcpas.org/studentform or call 877-637-2727.

Other AwardsThe Society presents 3 awards that recognize performance on the CPA exam, and also issues certificates to members with lengthy tenure.

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Industry profileBrittany Meissner, CPA

Member ProfilesNDCPAS

Young Professional profileBret Sheeley

Position: Staff Accountant for Kilbourne Group, Fargo

Hometown: Wahpeton

First job: Working for my dad’s landscaping company

How did you decide to be an accountant? I took a few courses in high school and was drawn to its logic and the fact that most times there was a “right answer.” Even though I later discovered that’s not always the case, I decided to stick with it. I looked at my Accounting courses as a solid foundation for anything I decided to pursue in business.

Alma Mater/Degree: B.S. – Accounting, Minnesota State University Moorhead

What did you do to celebrate passing the exam? I’m taking a trip to Europe this spring to officially celebrate. As a more immediate celebration, I got sushi after I found out

I passed my last part.

Professional/Community Activities: Member of NDCPA; will attend my first conference this September.

Hobbies and Pastimes: Exercise of any kind, reading, Netflix

Family: Mom- Carla, Dad- Chad, Brother- Ryan

Dream vacation: Maui, anytime of year, with my family. We did this a few years ago over Christmas, and I really want to go back.

The best advice you ever received: A failure is not always a mistake; it may simply be the best one can do under the circumstances. The real mistake is to stop trying

Something most people don’t know about you: I consider myself a chocolate milk connoisseur.

The nicest thing someone has said to you this week: My mother gives me constant compliments. It is hard to sift through which one flatters me the most.

Position: Accountant/Analyst

Job Responsibilities: Responsible for preparing monthly journal entries and statistics, analyzing budget versus operating expenses on a monthly basis after allocations have

been completed, and preparing and submitting quarterly and annual cost reports to Federal Employee Program (FEP). Also responsible for assisting in preparing the Corporate and FEP annual budgets.

Company Biography: As the state’s oldest and largest health insurance company, Blue Cross Blue Shield of North Dakota (BCBSND) provides coverage for more than half the state’s population. BCBSND paid out more than $1 billion in claims in 2013. A member-owned, not-for-profit mutual insurance company, BCBSND is governed by a 13-member board of directors who are elected by BCBSND members. BCBSND is focused on serving its members and working together with the state’s largest network of participating doctors and hospitals to provide members with coordinated, cost-effective care. BCBSND’s eight North Dakota offices and award-winning customer service ensure members and employer groups can talk with a real person, possibly one of their neighbors.

Employment Background: 3 years with BCBSND in May. Prior to BCBSND 2 ½ years with Goldmark Property Management as a Senior Property Accountant.

Professional Activities: NDCPA Industry Committee member

Birthplace: Alexandria, MN

Alma Mater/Degree: University of Minnesota Duluth: Bachelor of Accountancy and Bachelor of Business Administration- Finance

Hobbies and Pastimes: I enjoy playing indoor volleyball in the spring/fall and sand volleyball in the summer. I like to read, puzzle, crochet, and craft. I enjoy spending time at the lake in the summer whether it’s swimming, boating, fishing, paddle boating, bonfires, or hanging out with family and friends.

Personal: I grew up on a farm near Brandon, Minnesota. My parents and two younger brothers all live near Brandon. I go back a lot during the summer months to spend time at the lakes.

Favorite Quote: Life ain’t always beautiful but it’s a beautiful ride.

Something most people don’t know about me: I started volunteering with the Big Brother Big Sister program last year, and it has been a great experience so far.

COLLEAGUES YOU CAN COUNT ON 5

How to Stop Procrastinating  Young Professional Group

by Sarah Ovaska-Few

When a deadline looms, do organizing your desk and watching cat videos online suddenly seem more appealing than getting work done?

Most of us procrastinate from time to time. But experts say that there can be a real downside to letting procrastination have too big a role in your life: It can increase your stress levels and lead you to adopt maladjusted coping strategies. It can also leave you struggling to meet basic deadlines and can get you noticed—for the wrong reasons—pretty quickly.

“The cost of our procrastination is always our happiness and our well-being,” said Tim Pychyl, Ph.D., a psychologist who heads the Procrastination Research Growup at Carleton University in Ottawa, Canada.

People procrastinate not because they’re overwhelmed with work, but because they harbor negative feelings toward whatever task is in front of them, he said. Feelings of guilt and shame often emerge as well, said Pychyl, who also wrote Solving the Procrastination Puzzle: A Concise Guide to Strategies for Change. Psychologists and CPAs offer the following tips on how to combat procrastination:

Dive in right away. The accounting profession works well for people who are organized and able to handle complex projects, said Beth Knipscheer, a CPA and assurance senior manager who works at JPMS Cox in Little Rock, Ark.

“In public accounting, you work with so many deadlines that eventually you figure out you’re doing yourself more harm than good if you put things off,” she said.

When Knipscheer embarks on a project, she estimates how much time it should take and generally starts doing work right away. That allows her to chip away at the tasks incrementally instead of leaving it all to the last minute.

“It’s probably a bit easier to do work on the front end,” Knipscheer said. “My life is a lot better if I do it this way.”

Break tasks into steps. When you face a new task or project, focus on the next step you can take. Otherwise you can become overwhelmed by the entirety of the task or give in to distraction, Pychyl said.

For example, when Pychyl is asked to write a letter of reference for a student—not a task he particularly relishes—he approaches it by first committing in his mind to opening the email from the student to see what’s being asked of him. He then focuses on the question, “What’s the next action I can take?” he then takes the action, which in this case would be opening a file to write the letter. Before long, Pychyl said, he becomes more interested in the task and finds enough motivation to finish it without delay.

Stop making excuses. Some people justify their procrastination by claiming they do better work when a deadline is imminent, but that strategy often leaves them without enough time to do a thorough job, said Joseph Ferrari, Ph.D., a psychologist who has researched the causes and consequences of procrastination since the late 1980s and wrote Still Procrastinating: The No-Regrets Guide to Getting It Done.

Others blame their procrastination on time management issues, but, as Ferrari noted, this is typically just an excuse. “You can’t manage time, you manage yourself and how you deal with the time,” he said.

Figure out a system that works. Mike Sapperstein, CPA, CGMA, a senior associate for Rosen, Sapperstein and Friedlander in Maryland, admits to falling victim to procrastination from time to time. But he’s found that developing his own task management system has reined in the temptation to waste time. Now, Sapperstein uses an Excel template his firm developed to track projects, adding his own modifications to include additional information about deadlines and tasks. He then segments his tasks, and assigns time slots to each one in his calendar to ensure he’ll be able to get everything done without having to rush at the last minute.

“I’ll actually schedule out my days for each task,” he said. “I’ve found it has helped me stay on track.”

Sapperstein also likes to come into the office early, at 6 a.m., before most of his colleagues have arrived. He’s found that he can concentrate and get large chunks of work done then, without the distractions that can come with a busy office.

Sarah Ovaska-Few is a freelance writer based in North Carolina.©2017, AICPA. All rights reserved. Reprinted by permission.

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Busy? You can Just Skim ThisJim Abbott, Executive Director

At busy times like now when time is tight maybe it’s worth pausing a moment and considering possible ways to get more into or out of, our fixed time supply. I’ll use bullets, so you can quickly scan, and just pause for just those of interest!!

Not the job but some of the stuff you do. Find an app to replace it. For example, Visa card is set up to text me details when it’s used. You notice a problem right away then maybe you’ll be OK with a quick scan of the statement, other than items you don’t remember. How

about a similar approach to personal bank statements?

What about a simpler or shorter hairstyle, so less time in the morning? How about quitting some of the TV time?

Do Both We all hang out in the car for long trips and around-town segments. How about reading a good book at the same time? No, not the paper thing, an audio book. Your library probably has many options. I haven’t tried fiction, but I know it works with other reading. Even in blocks of a few minutes, you do eventually get through the book.

Keep a List at Hand Some things call for a little thought. Consider having a small note at hand, of “things to think about” or “decisions.” Pull it out while you’re waiting for coffee or before a drive.

Automate It You could set up many of your regular payments to happen without you lifting a finger. Auto transfers for utilities, insurance, mortgage and chocolate. You could get the mail volume trimmed as well. Amazon has buttons for ordering various products. Maybe they offer auto-order without a button!

Hire a Driver Google uses auto cars; maybe we can all get one in the near future. Think of the stuff you could get done. Unless you don’t quite trust the technology!

Jump In If you’re like me, sometimes things are waiting. And waiting. Something you don’t quite know how to handle. Or don’t like doing. But unless you run away tonight; those things will be there tomorrow. And next month.

You could try taking one item, think a few moments about how to tackle it. Or whether it even needs doing. Then jump in and get it off the table.

Handle Paper... You’ve heard the “handle it once” idea but how about less than that? The subject line or return address may be all you need with no further attention. Perhaps surf over a mail stack looking only for the important items and toss the rest?

“Time is on my Side” sang the Rolling Stones, but really time is a fading asset. We use up a little of our allocation each day. Ultimately we should look for ways to use it a bit better.

NDSBA Notes...

The State Board of Accountancy met in late January. They handled 2 special requests, plus approved reinstatement for Sherry Gorveatte. The annual report was accepted. A revised staff agreement was approved, and various complaint matters were addressed.

RULES REVIEW Further editing will be done of the proposed rules, in such areas as allowing those in “retired” status to do some work, and adding a specific age for the status. The ethics CPE provision will be changed from an every-year to every-3-years approach. The move into expecting 120 credits of all CPAs will be proposed for being enacted by 2022, which would mean a person being at the new level by that time.

The Board’s next meeting will be May 8,11:30, in Bismarck.

Member PerksTo access these discounts go to ndcpas.org/memberperksAAA - Membership discountsAICPA Life Insurance CareerBank - Find staff & positionsCCH Materials - 30% discountExam Preparation - various options FedEx Office - Low copy rates & moreInterCall Conferencing by West Office Depot - office supply savingsProPay - Accept credit cards without monthly fee or special equipmentHotel Discounts - business & personalUPS - Discounts up to 36%Verizon - 20% discount on accessories

Memeber ForumsGot a question? Ask a fellow Society member.

www.ndcpas.org/Q&A

COLLEAGUES YOU CAN COUNT ON 7

nd cpa society foundationYour support of the North Dakota CPA Foundation helps aspiring CPAs realize their dreams. The following have made an investment in the future of professional accounting of $50 or more in 2016.

Angela ZerrAshli LongieBarb AasenBethany StockdillBill WeispfenningBrent OlsonBrian FisherBrian HermansonBrian WhalenBrooks BinstockCharles MiskaCharles NordCharmaine McKenzieClarence SitterDan MonsonDanelle KjarDaniel WaleriusDarlys AndersonDave HoversonDavid DeMersDeb Kraft

Debora OlafsonDeborah Kraft DeeAnn EllingsonDerrel BritschDiana & Lonnie KindsethErik Jacobson Evelyn NagelFaye MillerGordy & Arvy SmithHarmony KollingHarold WildeHarris WidmerJackie BergeronJames WosepkaJanelle MulroyJanet KubisiakJanice GlattJerome JorgensonJim & Mary AbbottJoe KovarJohn Ermer

John MongeonKate BaroneKate CampbellKatie KnodelKent HaugenKevin AustinLarry RobinsonLaura AdairLowell NelsonLuke LundinLyndsey RoemmichMarci SchorschMark HolmMark MillerMary HagerMary LoylandMichael & Janel SchmitzMichael BakkMichelle SchumacherMike Misheski

Mike MontplaisirMike ParkeNicole LautenschlagerNikki SchmaltzOakley ThoenyPaige BiederstedtPat BrownPatti FroelichPaul MathewsPete & Melanie HoistadRandy HellerRick & Lori LeeRobert (Bob) Dale Robert DoschRyan BauerSam MontgomerySara ChristiansonSharon TieszenShawna PiatzSheldon KaukSheri Erickson

Stephen EastonSteve BritschSteve TroyerSteve UlvenSuann OlsonTabitha TalkingtonTammy GerszewskiTerri ClarkTerry DelaneyTim WhalenTonya HolmstromTracee BuethnerVicki GreshikVictoria FerdererVince BrekkenYvonne Opoien

Memeber Forums

See Busnesses Donors on pg 15

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Summer CPE Variety PackBismarckRamkota

For pricing and registration, please visit our website at www.ndcpas.org/cpe

June 20 12:30 PM - 4:00 PM Accounting Methods and Periods: Including Form 3115 (CL4AMP)

Instructor: Peter BunceThis course provides participants with an overview of the various factors considered for the determination of the proper accounting method (such as cash, accrual) and provides detailed examples of court rulings and client examples (for specific industries) involving each. Then, the course discusses accounting periods, and considerations for changes in the accounting period of an entity. Lastly, there is a case study and example tax forms to highlight how to identify which IRS Revenue Procedures are applicable to a given client situation, as well as how and when to prepare the Form 3115.Intended Audience: Tax professionals in public accounting: seniors, supervisors, and managers Tax professionals within corporate finance or tax departmentsLevel: IntermediateCPE Credits: 4 TaxesPrerequisite: Three to five years of tax experience

June 20 8:00 AM - 11:30 AMPreparation, Compilation, and Review Engagements: Update and Review (CL4COMP)

Instructor: Tyrone InglisIf you supervise preparation, compilation, and review engagements, this course will help you comply with the professional standards by informing you of the latest developments and issues relevant to these engagements. Learn about the U.S. business economy, peer review, FASB updates, International Financial Reporting Standards, and other areas affecting preparation, compilation, and review engagements. Intended Audience: CPA firm seniors (and above) managing engagements performed in accordance with SSARSLevel: UpdateCPE Credits: 4 AuditingPrerequisite: Experience with engagements performed in accordance with SSARS

June 20 12:30 PM - 4:00 PM Internal Controls for Small- and Medium-Sized Entities (CL4ICSM)

Instructor: Tyrone InglisThis course provides practical guidance for those involved with internal control responsibilities(auditing, monitoring, implementing, etc.) in adapting the updated COSO Inter-nal Control Framework to small and medium-sized entities’ transaction processing systems. Transaction processing IT and manual controls are appropriate for every entity, regard-less of size. However, there is no standard set of transaction processing controls that can be applied to all entities. Of-tentimes the transaction processing manual and IT internal controls “best practices” that have evolved over time are based upon large entity environments and these “best practices” are not necessarily relevant to small and medium-sized entities. Even those with transaction processing control responsibili-ties who are involved with large entities should benefit from this course as large entities are often a conglomeration of divisions, stores, departments, etc. Many controls that are appropriate for small and medium-sized entities are also ap-propriate in these decentralized environments.Intended Audience: Accountants, auditors, managers, and others who are responsible for implementing, monitoring, evaluating, auditing, and designing cost-effective transaction processing system internal controls for small and mediumsized entitiesLevel: BasicCPE Credits: 4 Auditing

June 20 8:00 AM - 11:30 AMTax Planning Strategies for Small Businesses: Corporations, Partnerships, & LLCs (CL4STSB)

Instructor: Peter BunceSolid tax planning strategies are essential for your corporate and small business clients. Join us as we explore state-of-the-art planning ideas and tax-saving strategies to keep more of your client’s money in their pockets. We’ll answer the tough questions and show you what strategies are best for your clients as a result of the most recent tax reform.Intended Audience: CPAs looking for innovative tax planning and savings techniques to solve client problemsLevel: IntermediateCPE Credits: 4 TaxesPrerequisite: Basic knowledge of business taxation

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Summer CPE Variety PackBismarckRamkota

For pricing and registration, please visit our website at www.ndcpas.org/cpe

June 21 8:00 AM - 11:30 AMInterpreting the New Revenue Recognition Standard: What All CPA’s Need to Know (CL4INRR)

Instructor: Tyrone InglisThe new accounting standard for revenue recognition has finally been released! With the issuance of FASB ASU No. 2014-09, Revenue from Contracts with Customers, FASB has completed a convergence project with the IASB to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and IFRS. For years, revenue recognition has been the cause of audit failures and the focus of corporate abuse and fraud allegations. This course will provide you with an in-depth understanding of the framework for revenue recognition built around the core principle that is applied in a five step process. In addition, understanding the changes and new requirements is critical for successful implementation of this new standard. Supported by practical examples, this course will assist you in avoiding revenue recognition traps and provide you with latest FASB guidance.Intended Audience: Accountants in public practice and industry who need an update on the latest revenue recognition guidanceLevel: IntermediateCPE Credits: 4 Accounting Prerequisite: Experience in the application of accounting standards

June 21 12:30 PM - 4:00 PM The Bottom Line on the New Lease Accounting Requirements (CL4LEAS)

Instructor: Tyrone InglisHow do the leasing requirements in the new standard differ from current GAAP? This course addresses that question by focusing on the basic core principles of the new standard. Discussion includes basic identification, recognition, measurement, presentation and disclosure requirements. Case study exercises are included to illustrate application of the new standard. This course discusses the lessee accounting model, including lease classification, amortization of the right-of-use asset, and interest on the lease liability. This course also discusses the lessor accounting model, including profit recognition and collectability.Intended Audience: Accountants in practice and industryLevel: IntermediateCPE Credits: 4 AccountingPrerequisite: Experience in application of accounting standards

June 21 8:00 AM - 11:30 AMReviewing Partnership Tax Returns: What Are You Missing? (CL4PTRM)

Instructor: Peter BunceJoin us as we discuss the common errors practitioners make on partnership tax returns that are often missed by review staff. The intent is to sharpen skills for reviewers by examining case studies and discussing issues where additional information from the client may be warranted and areas of tax law where proper treatment requires additional analysis and information. Multiple issues will be discussed including income, deductions, K-1 reporting, and more! This course follows a highly illustrative case study format to increase participant comprehension and retention.Intended Audience: CPAs working with clients requiring up-to-date expertise in partnership taxation for the current tax seasonLevel: IntermediateCPE Credits: 4 TaxesPrerequisite: Basic knowledge of partnership income taxation

June 21 12:30 PM - 4:00 PM Reviewing S Corporation Tax Returns: What Are You Missing? (CL4STRM)

Instructor: Peter BunceJoin us as we discuss the common errors practitioners make on S corporation tax returns that are often missed by review staff. The intent is to sharpen skills for reviewers by examining case studies and discussing issues where additional information from the client may be warranted and areas of tax law where proper treatment requires additional analysis and information. Multiple issues will be discussed including income, deductions, K-1 reporting, and more! This course follows a highly illustrative case study format to increase participant comprehension and retention.Intended Audience: CPAs working with clients requiring up-to-date expertise in S corporation taxation for the current tax seasonLevel: IntermediateCPE Credits: 4 TaxesPrerequisite: Basic knowledge of S corporation income taxation

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upcoming webinarswww.ndcpas.org/webcpe

March

8 Descriptive Statistics (2 CPE)

9 Common Frauds and the Internal Controls Designed to Prevent and Detect Them (8 CPE)

10 Improving Audit Quality (4 CPE)

10 In-depth with Excel's Conditional Formatting (2 CPE)

15 5 Steps to Safeguard Against Cyberattacks (1 CPE)

16 Spotlight on Risk and Corporate Culture (2 CPE)

16 Increase Productivity Through OneNote (1 CPE)

17 Create Reports that Matter: Turn Information into Action (8 CPE)

17 Audits of State and Local Governments: What You Need to Know (8 CPE)

20 Accounting and Auditing Update (8 CPE)

21 College Financial Planning: Graduate School - Admission, Financial Aid and Educational Tax Benefits (2 CPE)

23 Managing Up (2 CPE)

23 Unleashing Innovation and Creativity For Greater Results (2 CPE)

24 Fraud: Essential Audit Tools and Techniques (4 CPE)

28 Accountancy Laws, Ethics, Taxes and Financial Reporting Review-Ethics (4 CPE)

29 Better Business Decisions Through Power Business Intelligence (1 CPE)

Register by May 15 and Save

Preseason pricingWant the Best Deal? Plan your CPE early and reap the benefits. Not only will you avoid missing the classes but you will save money! If plans change, you can switch your selection or get a refund. Simply register for any eligible course* by May 15 and save $20 on 8 hour classes and conferences, and $10 on 4 hour sessions. *Excludes the Management Conference, Tax Practitioner Institutes, YP events and web programs.

Cancellations: In the event you are unable to attend a class, let us know at least 14 days in advance and you can switch to another 2017 program or we will refund your money. Any cancellations received after the 14 day notice period will require a $30 administrative fee. You can also transfer your registration to another participant. Additional fees will be required if a member transfers to a nonmember.

April

6 Professional Conduct & Ethics Webcast: Dealing with Ethical Crises (4 CPE)

12 Fundamentals of Microsoft Dynamics NAV (1 CPE)

19 Interpreting The Yellow Book (8 CPE)

19 College Financial Planning: Student Loans (2 CPE)

19 Small-Business Financial Statements (4 CPE)

20 Professional Conduct & Ethics Webcast: Dealing with Ethical Crises (4 CPE)

20 What You Need to Know to Audit Government Programs (8 CPE)

21 Cost Principles for State and Local Governments and Nonprofit Organizations (8 CPE)

21 Accountancy Laws, Ethics, Taxes and Financial Reporting Review-Ethics (4 CPE)

21 Accounting Industry Update (8 CPE)

21 Ethics: Professional Conduct, Decision Frameworks and Fraudulent Financial Reporting (4 CPE)

27 Frequent Frauds Found in Governments and Not-for- Profits (8 CPE)

27 The Employee Evaluation Review (2 CPE)

27 Multi-Task Role of the CFO/Controller (8 CPE)

27 Motivating Yourself and Others (2 CPE)

Not seeing the class you need? Check out our partner webinars at www.ndcpas.org/partnerwebinars.

COLLEAGUES YOU CAN COUNT ON 11

2017 Tax seasonby Ryan Rauschenberger, Tax Commissioner

2017 tax season is well upon us at this point. If you are involved with tax preparation work, you are no doubt well aware of this. As you are in the midst of

your busy season, I wanted to pass along a few reminders to hopefully help it go smoothly:

Verify Client Information

Mailing Address: Seems like a given, right? But you’d be surprised how many taxpayers file with inaccurate addresses, even when using a tax professional to file. When this happens, it delays return and refund processing. Make sure your client’s address is current and accurate – don’t include extra spaces or dashes, and be sure to include apartment or unit numbers.

Estimated Payments: Double-check that your clients made the correct payment amounts. If your client can’t remember, have them get the canceled checks or bank statements. If you need to get information from our office, have the client fill out a Form 500 Authorization to Disclose Tax Information & Designation of Representative (see below under “Other Reminders”) so that you can obtain the needed information.

Direct Deposit: Make sure you verify direct deposit information to ensure your clients receive their refunds.

Paper Filing: Although we continue to encourage e-file since it is the fastest and most secure way to file, some taxpayers still prefer to paper file. In this case, be

sure to include a complete copy of the federal return as well as any documents claiming North Dakota income tax withheld.

Other Reminders

1099-MISC Miscellaneous Income: Remember to enter each 1099-MISC separately if claiming North Dakota withholding from a particular oil and gas company. This is similar to entering each W-2 separately – you cannot lump them as one amount when there is withholding.

1099-G Certain Government Payments: Encourage clients to consent to obtain the 1099-G electronically by marking the circle on the bottom of the ND-EZ and ND-1 forms (found at bottom of forms by the disclosure authorization circle for preparers). We also offer a 1099-G look-up tool on our website – www.nd.gov/tax, then click on For Individuals (on this pages under Quick Links for Individuals).

W-2 Information: If your client has changed employment, make sure to update the employer name and employer federal identification number.

Form 500 Authorization to Disclose Tax Information & Designation of Representative: It is a good idea to have Form 500s available to your clients that you do more work for this time of year. The IRS Form 2848 Power of Attorney and Declaration of Representative is not valid for the state. So, your client will need to file a Form 500 with our office if they want you to be able to contact us for information on their behalf.

A check-box for limited authorization is located at the bottom of the North Dakota income tax return. Checking this allows us to work with a paid preparer if there is a processing issue with that return.

Refunds: Refunds will continue to be on our new fraud prevention processing schedule. This means the return processing and refund turnaround times will not be as fast as they were a few years ago. It helps if you set that expectation with your clients, and let them know about the “Where’s My Refund?” tool. By entering minimal information, this tool will give your clients their return/refund status. There is also an option for them to sign up for a text or email alert when their refund has been issued.

Credits: When claiming a credit like the qualified endowment credit, you must include or attach a PDF of the North Dakota Schedule ND-1QEC. It’s also helpful if you can attach the documents received from the charitable organization. This may help our office process the return quicker by eliminating the need to contact the client when there is a question regarding the qualified endowment. Non-residents & Schedule ND-1CR: When preparing a return for a non-resident, they will never also have a Schedule ND-1CR Claim for Income Tax Paid to Another State or Local Jurisdiction. Only North Dakota residents can use a Schedule ND-1CR.Three Year Statute: Reminder, the statute of limitations for filing a return claiming a refund of tax withheld or estimated payments is three years from the original due date of the return, or the date on which the return was filed, whichever is later. If an original 2013 return has not been filed, your client has until April 18, 2017 to file for a refund.Extensions: North Dakota’s extension due dates are the same as the federal extension due dates, not the same number of months, except C-corporations have an additional month to file the state return. If your client obtains an automatic extension of time to file their federal return, they do not need a separate extension with North Dakota. We recognize the federal extension. However, interest still accrues during the extension period on any amount of tax not paid by April 18, 2017.

ndcpas.org12

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COLLEAGUES YOU CAN COUNT ON 13

College SAVE: Picture the FutureThe tax-advantaged, flexible way for your clients to invest today in tomorrow’s dreams.

TAX SMART ND taxpayers can deduct up to

$10,000 in contributions if married, filing jointly ($5,000 if single) from

their state taxable income for contributions into

College SAVE!*

* Rollovers from another state’s 592 plan are not eligible for the state income tax deduction.

For more information about North Dakota’s College SAVE Plan (College SAVE), call 1-866-SAVE-529 (1-866-728-3529) or visit www.collegesaves4u.com to obtain a Plan Disclosure Statement. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Disclosure Statement; read and consider it carefully before investing. Ascensus Broker Dealer Services, Inc. (ABD) is Distributor of the Plan.

The College SAVE Plan (College SAVE) is a 529 plan established by the State of North Dakota. Bank of North Dakota (Bank) acts as trustee of College SAVE Trust, a North Dakota Trust, and is responsible for administering College SAVE Trust and College SAVE. ABD, the Plan Manager, and its affiliates, have overall responsibility for the day-to-day operations of College SAVE, including recordkeeping and marketing. The Vanguard Group, Inc. (Vanguard) provides underlying investments for the Plan. College SAVE’s Portfolios, although they invest in mutual funds, are not mutual funds. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns are not guaranteed, and you could lose money by investing in College SAVE. Participants assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state tax consequences. UIIIND MKT8934C 0216

Visit collegesave4u.com/CPA or call 1.866.SAVE.529.

ndcpas.org14

News from the IRSIRS Launches New Sharing Economy Resource Center on IRS.gov, Provides Tips for Emerging Business AreaThe Internal Revenue Service launched a new web page designed to help taxpayers involved in the sharing economy quickly locate the resources they need to help them meet their tax obligations.

An emerging area of activity in the past few years, the sharing economy has changed how people commute, travel, rent vacation places and perform many other activities. Also referred to as the on-demand, gig or access economy, sharing economies allow individuals and groups to utilize technology advancements to arrange transactions to generate revenue from assets they possess — such as cars and homes — or services they provide — such as household chores or technology services. The sharing economy typically describes situations where the Internet is used to connect suppliers willing to provide services or use of assets — apartments for rent, cars for transportation services, etc. — to consumers. These platforms are also used to connect workers and businesses for short-term work.

To help people meet their tax reporting responsibilities, the new Sharing Economy Resource Center offers tips and resources on a variety of topics ranging from filing requirements and making quarterly estimated tax payments to self-employment taxes and special rules for reporting vacation home rentals. In addition, tax-preparation software can be a helpful resource in this area, and a

trusted tax professional may assist with many issues.

Here are a few key points people involved in the sharing economy should keep in mind:

• Taxes. Income received is generally taxable, even if the recipient does not receive a Form 1099, W-2 or some other income statement. This is true if the sharing economy activity is only part-time or a sideline business and even if the recipient is paid in cash. On the other hand, depending upon the circumstances, some or all business expenses may be deductible.

• Deductions. There are some simplified options available for deducting many business expenses for those who qualify. For example, a person who uses his or her car for business often qualifies to claim the standard mileage rate.

• Rentals. Special rules generally apply to the rental of a home, apartment or other dwelling unit that is used by the taxpayer as a residence during the taxable year. Usually, rental income must be reported in full, any expenses need to be divided between personal and business purposes and special deduction limits apply. But if the dwelling unit is rented out fewer than 15 days during the year, none of the rental income is reportable and none of the rental expenses are deductible.

• Estimated Payments. The U.S. tax system is pay-as-you-go. This means that people involved in the sharing economy often need to make estimated tax payments during the year to cover their tax obligation. These payments are due on April 15, June 15, Sept. 15 and Jan. 15. Use Form 1040-ES to figure these payments. • Payment Options. The fastest and easiest way to make estimated tax payments is to do so electronically using IRS Direct Pay or the Treasury Department’s Electronic Federal Tax Payment System (EFTPS).

• Withholding. Alternatively, people involved in the sharing economy who are employees at another job can often avoid needing to make estimated tax payments by having more tax withheld from their paychecks. File Form W-4 with the employer to request additional withholding. The Withholding Calculator on IRS.gov can also be a helpful resource.

For more information on these and other topics, check out the new Sharing Economy Resource Center on IRS.gov.

COLLEAGUES YOU CAN COUNT ON 15

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The Case of the Creeping IvyBy Charles Selcer, CPA, MBA

Ivy Vine, CPA joined the accounting firm of Dunn, Finito & Gonzo (DF&G) as a Senior Manager in early 2016. She brought with her a book of business she nurtured during the operation of a sole proprietorship practice. DF&G paid her a fee at the onset of her employment that compensated her for her book and had her sign an agreement that stipulated that she would have to pay DF&G for the book of business if she left the firm before she

could have access to the files. Things didn’t go well in Ivy’s mind. She resigned one day and came into the office that night and removed only the files of clients she entered the firm with.

Q. Is Ivy’s creeping action ethical? A. No. A member whose employment relationship is terminated would be considered in violation of the “Acts Discreditable Rule” (1.400.001) if the member takes or retains (a) originals or copies (in any format) from the Firm’s client files or (b) proprietary information without the firm’s permission, unless the member has a contractual arrangement with the firm allowing such action. (See ET1.400.210.01)

Ethics Corner For Investment

The Society is entertaining proposals for investment management services. If you have an interest in proposing or learning more, contact Jim Abbott at 877-637-2727.

advisors

Foundation business donorsAlerusBell State Bank & TrustBeverage Wholesalers, Inc.Brady, Martz & AssociatesDarlys Anderson, LTDEide BaillyHoliday InnKBKGTheodore Roosevelt Medora FoundationWells FargoWidmer Roel, PC

Dakota CPA is published bimonthly, by the North Dakota CPA Society.

DIRECTORSMarci Schorsch, PresidentSteve Britsch, President-electClarence Sitter, SecretaryDianna KindsethDave GlennonLyndsey RoemmichMichelle Schumacher Robert Dosch Brittany DunnMaureen Storstad Ryan BakkeTracee Buethner, Past President

3 Year AICPA Council Member, Patrick Kautzman

Jim Abbott, Executive DirectorSherre Sattler, CPE and Communications DirectorMandy Harlow, Licensing/Peer Review CoordinatorPene DeMaster, Administrative AssistantAja Steinfeldt, Bookkeeper

North Dakota CPA Society2701 South Columbia Road, Ste DGrand Forks, ND 58201-6029Toll Free: 877-637-2727Local: 701-775-7100Email: mail@ndcpas.org

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