XXI, NC NATP OFFICERS

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1 Preparing you for the future Celebrating 108 years Volume XXI, Issue 1 Summer, 2012 NC NATP OFFICERS 2012 President Geraldine Harris-Holloway pstaxnc2@aolcom Vice-President Jerry D Temple Jtempletax@embarqmail.com Treasurer Donna Uzzell donnauzzell@yahoo.com Secretary Joyce L Workman jworkman@triad.rr.com NC NATP BOARD MEMBERS 2012 District I Gerard Cannito gcannito@bellsouth.net Roy L Keithley ker8846@cs.com Marie Young marie.young95@gmail.com District II Patsy King patcking@bellsouth.net Rose P Speece rspeece@yadtel.net Joyce Workman jworkman@triad.rr.com District III Kristy Arnold kristy.arnold@ncsecu.org Geraldine Harris-Holloway pstaxnc2@aol.com Jerry Temple Jtempletax@embarqmail.com District IV George Shadwick smallbustax@gmail.com Howard Talley, III grendl1@earthlink.net Donna Uzzell donna.tscpa@earthlink.net President's Message Greetings to all. First, I would like to thank all of our state volunteers that assisted individuals who had questions that needed to be answered in regards to our NC tax returns. As I spoke with other tax professionals, they echo the same. Wow! We are at the end of the second quarter of this year. The NC NATP Board of Directors has been working hard to develop and offer RTRP classes to our membership as well as others. We have been approved to offer the RTRP classes in several community colleges (see list following) throughout the state. To register for these classes you must go through national by calling ( ). The Board of Directors is working on other locations throughout the state. Additional venues will be available for viewing on the NATP website under our state. As we prepare for our state annual conference, we are interested in what our membership would like to have taught. Please or call me to give me your suggestions. See following for conference details.

2 BIG NEWS OF THE DAY NEW STATE 'DEDUCTION FOR NET BUSINESS INCOME NC G.S (Effective for taxable years beginning on or after January 1, 2012) Modifications to adjusted gross income. (b) Other deductions. --In calculating North Caroline taxable income, a taxpayer may deduct any of the following items to the extent those items are included in the taxpayer's adjusted gross income. (22) An amount not to exceed fifty thousand dollars ($50,000) of net business income the taxpayer receives during the taxable year. In the case of a married couple filing a joint return where both spouses receive or incur net business income, the maximum dollar amounts apply separately to each spouse's net business income, not to exceed a total of one hundred thousand dollars ($100,000). For purposes of this subdivision, the term "business income" does not include income that is considered passive income under the code. A directive issued June 4, 2012 by the NC Department of Revenue states that the definition of passive income for purposes of this deduction will be based on IRS Code Sec This means that any income for which you file a Schedule SE on your return may qualify for this deduction. The directive takes pains to point out that this is 'net' of all business income and losses. Still, this is a huge deduction for many so-called self-employed North Carolinians. Remarkably, I have seen very little publicity on this new deduction and nothing in my local newspaper.

3 Here is an updated list and more details on our slate of RTRP classes. We have the following dates and locations scheduled: July 26, 2012 Wake Tech Community College 3434 Kildaire Farm Road Cary, NC August 3, 2012 Skyland First Baptist Church 2115 Hendersonville Road Arden, NC August 24, 2012 Nash Tech Community College 522 North Old Carriage Road Rocky Mount, NC August 30, 2012 Fayetteville Community College CBI Bldg, Room Fort Bragg Road Fayetteville, NC Each class will run from 8 am - 4:30 pm. Breaks provided. Lunch on your own. Cost is $159 for NATP members. You should register through

4 Doing Business in North Carolina N O R T H CAROLINA CHAPTER N A T I O N A L A S S O C I A T I O N O F T A X P R O F E S S I O N A L S A N N U A L S E M I N A R A N D C O N F E R E N C E O C T O B E R , Harrah s Cherokee, 777 Casino Drive, Cherokee, NC (828) Room Rate: $99.00 per night plus taxes Rate Code: S10NNAT Cutoff date: 09/21/2012 (call for reservations) Topics (10 hours of CPE available) Individual Tax Topics: HRA s and HSA s Retirement Plans for Small Business Tax Issues of Divorce Ethics and Circular 230 Introduction to LLC s: Changing LLC Classification Stakeholder Liaison Current Issues Social Security Benefits NC Department Revenue Employment Security Commission Disclaimer: We are entering into an agreement with the Office of Professional Responsibility, Internal Revenue Service, to m eet the requirement of 31 Code of Federal Regulations, Section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications ns of instructors and length of class hours. This agreement does not constitute an endorsement by the Office of Professional Responsibility as to the quality of t he program or its contribution to the professional competence of the enrolled individual. You may take these courses and workshops that in your opinion will maintain and /or improve your knowledge in your own particular career field.

5 Seminar Schedule Sunday, October 21, :00 P.M. - 9:00 P.M. Round Table Discussion 7:30 A.M. - 8:00 A.M. Registration Monday, October 22, :00 A.M. - 9:40 A.M. IRS Stakeholders, Eugenia Tabon/Evette Davis 9:40 A.M. - 10:00 A.M. Break 10:00 A.M. - 12:00 P.M. Social Security, Nathan Linderman 12:00 P.M. - 1:00 P.M. Lunch on Your Own 1:00 P.M. -2:40 P.M. NC Department of Revenue, Jonetta Appling 2:40 P.M. - 3:00 P.M. Break 3:00 P.M. - 4:00 P.M. Employment Security Commission, Ted Brinn 4:00 P.M. - 4:15 P.M Vendors 4:15P.M P.M. Annual Meeting 5:00 P.M. - 6:00 P.M. Board Meeting 6:00 P.M. - Until Annual Banquet Tuesday, October 23, :00 A.M. - 9:40 A.M. Tax Issues of Divorce Marie Young 9:40 A.M. - 9:50 A.M. Break 9:50 A.M. - 10:40 A.M. Individual Tax Topics: HRA s and HSA s 10:40 A.M. - 11:40 A.M. Introduction to LLC: Changing LLC s Classification 11:30 A.M. - 12:00 A.M. Sally A. Fahey, EA, National Board Representatives, NATP 12:00 A.M. - 1:00 P.M. Lunch on Your Own 1:00 P.M. - 2:40 P.M. Retirement Plans for Small Businesses, 2:40 P.M. - 2:50 P.M Break 2:50 P.M. - 4:30 P.M. Ethics and Circular 230 ***Speaking order is subject to change. For your convenience, certificates will be provided to determine if you are eligible to earn 10 CPE credits. It is your responsibility to certify CPE credits earned in accordance to the appropriate authority regulating your continuing education requirements. Please review the frequently asked questions for Tax Return Preparers to determine how they impact program requirements on taxpros/article/0, id=218611, 00.html.

6 Course Information Ethics: Conflicts of Interest A Conflict of Interest may not always be apparent. Sometimes it is harder than seeing the forest from among the trees. This Ethics session will look at the subtle conflicts of interest we face every day, providing tools to recognize them and ideas on how to deal with them. We will discuss the disclosure requirement and polite, and may be not so polite ways to end an engagement. Hot Topics Not celebrity gossip, but tax gossip! Recent trends, problem issues, the "did you know" and "what if" covering Identity Theft and Phishing, E-Services Basics, HRA s and HSA s, Small Business Retirement Plans, Tax Issues of Divorce, Changing LLC Classification, and more! Speaker Biographies Marie Young, EA Marie Young, EA, owns and operates Accounting Professionals, Inc. located in Asheville, North Carolina. Accounting Professionals, Inc. has provided accounting services to western North Carolina and surrounding areas for over 15 years. Along with her staff of over five full-time employees, Marie Young offers complete financial services including bookkeeping, payroll, tax preparation, tax representative, and electronic filing. Her office prepares over 2,000 tax returns and manages payroll for over 250 clients. Marie Young instructs tax seminars for numerous organizations including NATP and NASEA. As an instructor, her focus is personable while offering a quality educational seminar Ted Brinn Mr. Brinn is currently the Field Tax Operations Manager for the Employment Security Commission of North Carolina. He began his career with the Employment Security Commission in 1980 as a manpower and work training specialist. Within 2 years he was promoted to the position of tax auditor. After 12 years in this position Ted was promoted to Assistant Chief of Employer Compliance. His primary role consisted of redesiging the field audit program to meet federal standards. In 2002 Ted assumed the position of Field Tax Operations Manager overseeing a statewide program of audit, investigations and enforcement. He was responsible for a staff of 96 professionals and various clerical support staff. Recently Ted has served as State Tax Operations Manager overseeing all central office functions. Ted has served on a national field audit task force and has been awarded the Certified Public Manager designation from the state of North Carolina. Jonetta Appling Jonetta Appling is the manager of the Greensboro Taxpayer Assistance Service Center of the North Carolina Department of Revenue. She began her career with the Department as a Revenue Officer in the Charlotte Service Center in In 2011, she was appointed Outreach Lead for the Taxpayer Assistance Division. In this role, she facilitates education opportunities to improve voluntary compliance of North Carolina tax laws. She also serves as the statewide coordinator for the Volunteer Income Tax Assistance Program (VITA). Jonetta holds a Bachelor of Science Degree in Business Administration with a concentration in Finance from North Carolina A&T State University. She is a graduate of The Leadership Excellence Program of the North Carolina Department of Revenue.

7 Eugenia Tabon Eugenia Tabon is a Senior Stakeholder Liaison Specialist in Communication Liaison and Disclosure (CLD) assigned to the South Atlantic Area which includes the areas from Maryland through South Carolina headquartered in Greensboro. Eugenia began her career with the Internal Revenue Service as a Tax Auditor in October, She has served in such capacities as an Office Audit Manager, Volunteer and Education Coordinator, Quality Reviewer, PSP Classification Specialist, Union Steward, and Facilitator. She services as liaison for the major stakeholder groups throughout the state. Evette Davis Evette Davis is a Stakeholder Liaison within Communication Liaison & Disclosure for the Internal Revenue Service. She is one of 2 Stakeholder Liaison Field representatives, located in the Charlotte office which was established in Evette is a native of South Carolina. She graduated from South Carolina State University with a Bachelor of Science Degree in Business Management and Office Administration. She is currently pursuing a Master of Arts in Teaching from Winthrop University. Her career began in 1988 as a Revenue Officer within the Compliance Division. Evette currently works very closely with various N.C. industries and business organizations as the Area Lead for Electronic Submissions and Lead for Offers in Compromise. She embraces every opportunity to educate and communicate with organizations in the business community throughout the Carolinas. Nathan Linderman Certified Retirement Counselor, Divisional Sales Director, Protective Life Insurance Nathan Linderman is from Huntersville, NC and a graduate of Georgetown College. He is celebrating his 8 th year with Protective Life Insurance and 12 th year in the financial industry. He is the number one sale representative for Protective Life Insurance and has worked with over 1200 Financial Advisors. Nathan has helped Financial Advisors reach their client s goals and helped them invest more than 600 million dollars. He is an expert in retirement income planning, estate planning, and social security. Nathan not only found a career at Protective Life, but a wife as well. He is married to Ashley Linderman who also works for Protective Life Insurance. She covers the area of South Carolina and Eastern Georgia.

8 2012 NC NATP ANNUAL CONVENTION AND SEMINAR REGISTRATION FORM Print the name for each registrant. Feel free to make photocopies. Doing Business in North Carolina Name EA CPA Other PTIN (Required) Address City State Zip Code Bus. Phone Alt Phone Name for Badge Member of Early Bird till 09/25 After 09/25 NATP Member # $ $ Non Member $ $ Spouse/Guest Banquet $35.00 $35.00 Total Mail registration to: DonnaUzzell, Treasurer NC NATP 432 Uzzell Road Goldsboro, NC 27534

9 For more information call Geraldine Harris-Holloway at (252) or *********************************************************** PLEASE INDICATE YOUR WILLINGNESS TO BEING A CANDIDATE FOR THE BOARD BY CIRCLING YOUR DISTRICT BELOW Name Recommendations District One District Two District Three District Four Ashe Alamance Beufort Anson Avery Alexander Bertie Bladen Buncombe Alleghany Camden Brunswick Burke Caswell Chowan Carteret Cabarrus Catawba Currituck Columbus Caldwell Chatham Dare Craven Cherokee Davidson Durham Cumberland Clay Davie Edgecombe Duplin Cleveland Forsyth Franklin Greene Gaston Guilford Gates Harnet Graham Iredell Granville Hoke Haywood Randolph Halifax Jones Henderson Rockingham Hertford Lee Jackson Rowan Hyde Lenoir Lincoln Stokes Johnston Montgomery Macon Surry Martin Moore Madison Wilkes Nash New Hanover McDowell Yadkin Northampton Onslow Mecklenburg Orange Pamlico Mitchell Pasquotank Pender Polk Perquimans Richmond Rutherford Person Robeson Swain Pitt Sampson Transylvania Tyrrell Scotland Union Vance Stanly Watauga Wake Wayne Yancey Warren Washington Wilson

10 Mailing address: N.C. NEWS NOTES, 6377 Pine Grove Drive, Wilmington, NC It is distributed with the understanding that the publisher is not engaged in rendering tax, legal, accounting, or any other professional advice and assumes no liability or responsibility whatsoever in connection with its use. You are urged to do research before acting upon any information appearing in this publication. Opinions expressed in N.C. NEWS NOTES are those of the editor and contributors. Editor: Howard Talley, III Telephone: Fax:

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