President's Message - January 2012

The New Year is upon us.  In Spanish there is a saying:  Ano Nuevo Vida Nueva, which roughly translates to “With the New Year comes the opportunity for a New Life (as in a Fresh Start)”.

The coming year will be tumultuous, but hopefully in a good way.  Perhaps our Culture will change from one evidencing Unbridled Spending in the Interest of Instant Gratification to one displaying Maturity, Prudence and Fiscal Discipline.  Then, as the Culture changes so will our Government change, after all Government (whether National, Local or even that of our Associations) merely mimics and builds on the consensus displayed by the populace. 

We are not Financial Planners, but we preach Fiscal Discipline to our Clients, even as from time to time we may be guilty of the same misbehavior.  They lose their jobs (which results in reduced income at the Unemployment Insurance levels) so they stop making their House Payments, which can sort of can sense, except they then go on a “feel good” spending spree or  online gambling/stock market trading with their suddenly “excess income.”  Prior to this point, however, they had already been engaged in Annual Refinancing of their Home Equity (because they could) building their long term debt to unsustainable levels absent rising income, and so they really have no economically viable option but to walk away from their mortgages.  Just because they can borrow money is no excuse for actually doing so.  If they have a need for new capital, have they exhausted other methods to free up cash flow first? 

We need to preach more.  Not just concerning Fiscal Discipline in general, but also to get them to take the trouble to document and leave paper trails for their transactions.  They will need that paper trail when they are hit with an Audit Notice, but if they can slow down to lay down the paper trail then maybe that will cause them to think (if only about procedure) before they “One Click” for their next online purchase.   Then maybe the New Year will indeed be an opportunity for a Fresh Start.

CSEA Board of Directors have initiated 1 of 2 required votes to encumber Society Property

Dear Fellow San Diego Chapter Board Members:

I don’t know if all of you have had a chance to read the November/December 2011, California Enrolled Agent Magazine so I attached page 33 which touches on some of the items discussed at the September 24-25, 2011 Society board meeting. In particular, I am concerned about the last paragraph of the article which talks about authorizing the EVP to encumber the Society’s real estate with a line of credit in an amount not to exceed $250,000. I don’t how all of you feel about this but I am deeply concerned because the Society building was paid off in the late 1980’s and I object to the Society Board approving encumbering the property. My first question is why do they need to do that? If the income from dues and events isn’t enough to cover operating expenses shouldn’t they be looking at what you or I would do and cut expenses?

I would like this issue to go on the next our board meeting agenda so that we can discuss what our chapter might want to do on this matter. Maybe a letter from our chapter board expressing our concerns at the very least. Another consideration is sponsoring a Chapter Board Member or Officer to attend each Society bod meeting so that the views of the local chapter get heard. Even though we send a Society Director to these meetings they don’t represent our chapter – they represent all of Society.

Thomas Carter, EA

• Article from CSEA Newsletter on Board action to potentially encumber Society Building

Society Director Response and explanation regarding potential Line of Credit on Society Building

As your Society Director and representative at the State level, I can only explain and emphasize the difficulty of the decision that was made regarding the issue of encumbering the Society building that many of you worked so hard to pay off back in the 90's. 

The Society has been spending more than it brings in for several years.  This is not something that happened just yesterday.  It also isn't that Society does not have cash in the bank, the issue is most of the cash is restricted making unusable for current obligations.  The operating fund of Society has hit a record low which caused the motion for obtaining a line of credit to be introduced.  The need for the motion and for its approval in September was to meet the first of the two consecutive meeting requirement for approval.  In January, it is possible Finance and Budget will approach the Board with another motion to approve obtaining the Line of Credit.  If it passes by a 2/3 vote in January, then the Line of Credit is approved by the Board and can be otained by the EVP. 

I don't sit on the Finance & Budget committee, but from prior conference calls I did attend over the past few months, the cash shortage has been adjusted and is not going to be as low as anticipated.  While this provides us some breathing room for this year, it is still a serious issue that both the members of Finance and Budget along with Society employees will be looking to solve so this issue can be put to rest.

If you would like me to bring your opinion up to the Board of Directors in January, please draft a letter and forward it to me no later than Wednesday, January 4, 2012 by 2 pm.  I will be flying out on Wednesday night and will need it before I leave my office that day.

I will be available to address this issue and will update you on the status of this motion at our January Board of Directors meeting at 4 pm on 1/11/2012 prior to our dinner meeting. 

If you have any other questions or concerns, please e-mail me at sleibold@sdbizadv.com.


Steven Leibold, EA

2012 Education Events to be announced soon!

Bring your checkbook to the January Dinner Meeting we will have early bird opportunities for our 2012 education events.

Starting in June we will have our SEE Classes – if you know anyone who wants to take the EA exam this year this is an excellent class taught by Lisa Ihm. 

Part I – 6/25/12 & 6/26/12

Part II – 7/26/12,7/27/12 and 7/30/12

Part III – 8/13/12 

Our first PTIN prep exam class will be held in June Date to be announced.  It will be a one day class

We will also be having a series of great educational events throughout the summer watch for the more in information in January.

Karen Joyner, EA

Follow Up from December Speaker - Sample Tax Prep Agreement

• Sample Tax Preparation Agreement

CSEA Group Discount on Education from Western CPE

As you probably already know, CSEA has negotiated with Western CPE to offer CSEA Members a 10% discount on continuing education such as Federal and California Tax Update Seminars, Conferences, Webcasts and Self-Study courses. 

Please note that ONLY CSEA Members are eligible to receive these discounts.                                                                                                                       

I have attached your Chapter’s CSEA Group Member Promotional Code Guide that will walk your Chapter members through exactly how to participate in the program.  Use of the codes will allow CSEA to track participation by Chapter and share rebates from this program with your Chapter.

Western CPE is a leader in accounting, auditing, fraud, finance, taxation, ethics, management and human resources, computer, estate planning, government and nonprofit, and personal development continuing professional education (CPE and CE). Their instructors and authors are considered some of the best in the United States. 

We hope you are as excited about these new programs as we are!  Happy New Year!

Cary M. Steward

Director of Marketing & Member Development

California Society of Enrolled Agents

• CSEA Group Member Promotional Code

Have you considered teaching tax at the college level?

National University, California’s second largest private not-for-profit university is seeking adjunct (part-time) accounting faculty for its B.S. in Accountancy and Master of Accountancy degree programs.  Most NU students are working adults in their mid-30’s who are highly motivated and goal oriented, making them truly a pleasure to teach.  Each class is only four weeks long, so no need to commit for an entire semester.  Classes meet from 5:30 to 10:00 on either Mon/Wed or Tue/Thu plus two half Saturdays per class. Most on-campus  classes are held at our Spectrum campus in Kearny Mesa off Ruffin Rd near Clairemont Mesa Blvd.

Generally, a masters degree in business, accounting, or tax, is required, but an undergraduate degree in accounting along with a CPA or EA in the case of income tax may be considered.

For more information

Visit the university website at http://www.nu.edu/...  and  for specific questions, contact Don Schwartz, J.D., CPA, at dschwart@nu.edu (no “z” in the email address).  Please put in the subject line “Ad for teachers”. 

Possible File Sharing/Document Management company issue

WARNING TO OUR CSEA LOCAL CHAPTER MEMBERS:  I am a fellow colleague of yours and want to expose and share a serious problem that I am having  with my file sharing and document management company.  They have intruded into my communications with my clients in an unauthorized way.  I am mad as hell about it.   The following memo exposes them for what they are doing.  Buyer beware!

Privacy Policy Problem:  eFileCabinet/SecureDrawer

I am a member of the California Society of Enrolled Agents (CSEA) and the National Association of Enrolled Agents (NAEA).  I am experiencing a significant problem with one of my vendors:  eFileCabinet/SecureDrawer.  This company has inserted their aggressive marketing materials into my private client communications against my wishes.  This violates my privacy policy and the trust that I have placed in their company.  Their marketing department thinks there is nothing wrong with such actions.  What do you think? 

They (eFileCabinet/SecureDrawer) are using my relationship with my clients to market their products and services.  They are doing so in an unauthorized and unreasonable way.  They gain access to my client’s when a client account is setup or when a file is uploaded using their file sharing software (eFileCabinet/SecureDrawer).  When a client is created or when a file is uploaded using their software, an automatic notification letter goes out to my tax client informing them that this action has taken place.    eFileCabinet/SecureDrawer then takes advantage of this communication process and inserts their aggressive marketing materials, advertising links, videos, telephone numbers, technical support and product branding.  My clients are then diverted away from my company and are directed to the sales and marketing materials of eFileCabinet.  Incredible!