Are your fingers tired from putting numbers into tax returns? How many pages of financial statements have your hands reviewed in the last few months? You need to give your hands a break from the norm – and we have just the solution!

JOB POSTING – could you be the candidate we are looking for? We are seeking someone who:

  • Is a young accounting professional*
  • Has a desire to make a direct and tangible difference to families in Arizona
  • Is interested in networking with young accounting professionals in the Phoenix area
  • Is not afraid to get dirty while cleaning and painting (no prior experience required)
  • Is available from 8:30am-12:30pm on Saturday, November 7th
  • Is in it for the OUTCOME, not for the INCOME
    • Payment in the form of memories, new friends, and lots of bottled water!

* CPA or membership with ASCPA optional, not required

In less than 23 days, you can join forces with other young accounting professionals from around Phoenix to clean and paint housing for families in our community. In conjunction with Save the Family, the ASCPA Young Professionals group invites you to join us in impacting our community for the better. This video will show you more about what Save the Family is all about and how YOU can help (https://youtu.be/2cWsXgQWKdg)

We hope you consider applying for this job posting. Registration is required prior to the event so we can send you additional details. You can use this link: https://www.ascpa.com/continuing_education/YPSERV16-young_professionals_service_project_at_save_the/view_event

For additional questions or information, please email Carina Jansen at cjansen@ascpa.com or call (602) 324-4745. We look forward to having you join our ASCPA family in helping Phoenix families. See you there!

Marissa Graves, CPA

IRS recently announced that the Individual Taxpayer Identification Numbers (ITIN) will need to be renewed every 3 years. The new release states that the ITIN is temporary and cannot be permanently used. In order to renew the ITIN, non-residents will need to file a new application on Form W-7 after 3 years, otherwise their tax returns will be rejected.

The IRS announced changes which require certain taxpayers to renew their ITINs. The renewal of ITINs requirement does not apply to ITIN holders who do not need to file their tax returns in 2017.

The following taxpayers require renewal of ITINs:

  • Taxpayers with ITINs not used on federal tax returns for at least once in last 3 years i.e. 2013, 2014 and 2015. Such unused ITINs will require renewal and will not be valid for filing tax returns in 2017.
  •  Taxpayers who were issued ITINs prior to 2013. Their ITINs will begin expiring this year and the taxpayer must renew them to prevent rejection of their tax returns.

IRS further states that Taxpayers will need to renew their ITINs on a rolling basis which means that the first ITINs that will expire are the ones with middle digits of 78 or 79 and the ones that are not used for one of the 3 prior years. These ITINs will need to be renewed with the period beginning October 1, 2016.

The taxpayer who has an expired ITIN and who does not renew it before filing the tax returns in 2017, may have a delay in refund and may be ineligible for certain tax credit like American Opportunity tax credit and child tax credit till the time new ITIN is not received.

Taxpayers should check their ITINs as soon as possible. Taxpayers with an ITIN with middle digits of 78 or 79 can apply for ITINs for the entire family at the same time. Family members include taxpayer, spouse and dependents claimed on their tax returns.

Other important changes for dependents of taxpayers:

Following are the new requirements for dependents whose passport do not have the date of entry in the U.S.:

  1. The IRS will not accept passport as stand-alone identity document if the passport does not have the date of entry in the US for dependents from countries other than Canada and Mexico or dependents of military members overseas.
  2. All such applicants who do not have a date of entry in the US on their passports will now be required to submit medical records for dependents under the age of 6 or U.S. school records for dependent under the age of 18 along with the passport.

All dependents aged 18 years or above can submit the rental or bank statement or utility bill having full name of the applicant and US address along with the passport.

CPA Global Tax & Accounting is an IRS approved Certifying Acceptance Agent. Generally, taxpayers are required to send their original passports and/ or other original documents, however, we can certify these documents, ensure that the Form W-7 is correctly prepared and submit them to IRS.

The state of Arizona has decided that since the 2015 amnesty program brought in $55 million more than projected they’d give it another try in 2016. So in the final budget bill (HB 2708) the legislature added in Section 17 a 2016 version of amnesty or, to use the term the Legislature prefers and actually named it, a “tax recovery program.”

Note that since this program has a very short shelf life, the provision is not added to the Arizona Revised Statute, but rather is only found in the bill itself. Thus this description will contain references to the relevant portions of Section 17 of this bill.

Continue Reading »

The Arizona Legislature in 2016 passed a conformity bill (SB 1288, Chapter 155) that contained a bit more than the normal conformity language of simply rolling forward the date through which revisions to the Internal Revenue Code passed by Congress will be considered for Arizona purposes. The legislature added significant language in the examination of partnerships, making Arizona the first state in the U.S. to formally conform to the revised partnership audit regime that was passed by Congress as part of the Bipartisan Budget Act of 2015 (BBA). Continue Reading »

Foreign investors are generally not subject to US tax on US source capital gain unless it is effectively connected with a US trade or business, or it is realized by an individual who meets certain physical presence requirements.  

Gain from the disposition of a U.S. real property interest (USRPI), however, is treated as income effectively connected with a US trade or business under the Foreign Investment in Real Property Tax Act (FIRPTA). This FIRPTA gain is subject to tax and withholding under Code Sec. 897 and Code Sec. 1445. 

Stock or a beneficial interest in a US real property holding corporation (USRPHC) is a USRPI. 

Under pre-2015 PATH Act law, in the case of any disposition of a USRPI by a foreign person, the transferee was required to deduct and withhold at the rate of 10% of the amount realized on the disposition. 

Effective dispositions made on or after February 16, 2016, the new PATH Act increases the FIRPTA withholding rate to 15% on the dispositions of USRPIs and other prescribed transactions. 

However, the PATH Act provides for a reduced FIRPTA withholding rate of 10% in the case of a disposition of property which is acquired by the transferee for use by the transferee as a residence, and the amount realized for the property does not exceed $1,000,000, provided the exemption for a residence bought for $300,000 or less does not apply.


Save the Family is committed to ending homelessness by:

  • Improving Education and Employment Opportunities
  • Accessing Safe, Permanent Housing
  • Building Family Competencies

Save the Family offers programs for adults, youth, and children that build:

  • Parenting Skills, Personal Development Classes, and Support for Victims of Domestic Violence
  • Career Development, Literacy Support, and Financial Education
  • Dental, Vision, and Legal Services
  • Tutoring, After-School Classes, and Camps / Activities for Youth

Many member young professionals of the Arizona State Society of CPAs recognize the importance of supporting the community we practice in, live in and quite possibly grew up in.  We have invited fellow CPAs, attorneys, investment professionals and paraprofessional to a morning of service – November 7, 2015; between 8:30am–12:30pm – not only to network and meet other professionals, but to support an organization that provides programs to those whose voices aren’t always heard.  Save the Family provides youth programs, career services, veteran services, and domestic violence services.  At first glance, it may not be so apparent the need for these services, but with the goal of ending homelessness, these services empower those with the confidence, the skills and the network all done with compassion and care.

We encourage you to come out Saturday, November 7, 2015.  The general location of the event will be near Country Club Dr. and Rio Salado Pkway in Mesa, Arizona, just east of the new Cubs Spring Training facility.  This is the first of many projected service projects, so if this weekend doesn’t work for you, we encourage you to review additional ways to support Save the Family below and watch out for our future service dates.  Follow the Society on Facebook, LinkedIn or contact the Society to be included on future correspondence.

Other ways to support Save the Family:

  • Cash donations qualify for the 2015 AZ Tax Credit for Qualifying Charity claimed on Form 321 – this is a dollar for dollar Arizona tax credit against Arizona taxes.
  • Adopt a Family in Need drive for Thanksgiving and/or Christmas – contact (480) 898-0228 ext. 216 or via email at holidays@savethefamily.org.
  • 2016 Phoenix Waste Management Open – Birdies for Charities, 1 cent more campaign, more information can be found at www.birdiesforcharityaz.com.

For more information and to register, head to http://www.ascpa.com or contact Carina Jansen at cjansen@ascpa.com or (602) 324-4745.


James Sean McGettigan

Many of us have a strong desire to make an impact within our community but few of us actually take additional steps to make it happen. Volunteering can be very rewarding, especially for an organization such as Save the Family. Read More…