The ideal candidate should possess:

• An ability to manage current engagements and provide detailed technical review of staff work papers
• Experience juggling multiple complex engagements and providing timely deliverables
• The desire to help grow the tax department and mentor staff
• Excellent communication skills, both written and oral
• Strong technical skills and knowledge of current tax laws
• Advanced tax research skills
• The ability to work in teams with other staff and partners to ensure the work product meets the firm’s high standards of excellent client service
• Ability to generate and build business with assistance from senior partners
• Qualities indicative of being a client’s “trusted advisor.” A combination of knowledge and practical experience with a wide array of financial matters that affect our clients and the ability to advise them on these issues.

 Requirements:

• CPA License
• Undergraduate degree, Masters in Taxation is a plus
• Ideally 3-5 years experience or equivalent in tax work.
• Excellent proficiency with Microsoft Office applications
• Drive to succeed

 Benefits:

• Competitive salary with bonus
• Medical and Flex spending benefits
• 401(k) with employer match
• PTO
• The track to partner for the right candidate

 Please e-mail resume and cover letter to resumes@lmgw.com or submit directly at our website

The ideal candidate should possess:

• Ability to gain a thorough understanding of LMGW’s audit process, methodology and related tools
• Ability to assist in planning and execute an audit approach for small and mid-size companies, as well as non-profit clients, with minimal supervision
• An ability to manage current engagements and provide detailed technical review of staff work papers
• Experience juggling multiple complex engagements and providing timely deliverables
• Supervise audit engagements and monitor the work of audit staff, keeping managers informed of the engagement status.
• The desire to help grow the audit department and mentor staff
• Strong technical skills and knowledge of US GAAP and non-profit accounting
• The ability to work in teams with other staff and partners to ensure the work product meets the firm’s high standards of excellent client service
• Manage staff performance, conduct timely performance reviews, and provide performance feedback
• Bookkeeping and Consulting experience for small and mid-size businesses and  non-profits
• Tax experience a plus, but not required
• Demonstrate professionalism

 Requirements:

• CPA License
• Bachelor’s Degree in Accounting
• 3-5 years of recent experience as an auditor with a reputable CPA firm.
• Excellent proficiency with Microsoft Office applications, accounting software, knowledge of CSA and Engagement CS is a plus
• Excellent communication skills, both written and oral
• Drive to succeed

 Benefits:

• Competitive salary with bonus
• Medical and Flex spending benefits
• 401(k) with employer match
• PTO
• The track to partner for the right candidate

 Please e-mail resume and cover letter to resumes@lmgw.com or submit directly at our website

Under current law decedents dying in 2012 with estates worth $5,120,000 or less are not subject to estate tax. However, the $5.12 million threshold expires at the end of this year. And unless Congress acts, beginning January 1, 2013 the threshold drops to $1 million. Not only would many more estates be subject to estate tax but the highest estate tax rate is also scheduled to increase to 55%. A lack of estate planning now could result in a hefty estate tax bill later.

If you have already created an estate plan but haven’t reviewed it in the past couple of years, now is a great time to make sure that plan still makes sense with the recent law changes. There are various factors in outdated trusts that could present a problem under current estate tax law. For instance, a trust could be written such that assets are inadvertently subject to estate tax upon the death of the first spouse instead of qualifying for the marital deduction. Or the trust could be written such that pro rata allocations are required and assets must be split between different sub trusts instead of giving discretion to the surviving spouse or trustee to substitute assets of equivalent value. There could also be situations where the ongoing costs and recordkeeping burdens of setting up a trust on the death of the first spouse more than offset any tax benefits resulting from the planning. The bottom line is that you should make sure your trust is carefully inspected to ensure that your wishes are carried out appropriately upon your death in a tax and financially efficient manner.

Another good reason to analyze your current wealth transfer plan is to take advantage of the $5.12 million exemption in 2012 that also applies to gifts. The tax law “unifies” or links the estate and gift tax system, so estate tax can’t be avoided by gifting away all of your possessions while you’re alive. Any gifts made now are added back into your estate upon your death. However, any subsequent appreciation in gifted assets takes place outside of your estate because gifts are valued on the date of the gift. For example a taxpayer who plans to leave a vacation home to his children may wish to make a gift in 2012 with zero out of pocket gift taxes. The home could be gifted in 2012 at a value of up to $5.12 million now, and if the home rises in value to $8.12 million when the taxpayer dies, the additional $3 million is not included in the taxpayer’s estate! Of course gifts are permanent and there are many non-tax considerations when making large gifts.

The 2012 gifting opportunities may also be useful to California Registered Domestic Partners. Because RDPs don’t qualify for the federal estate tax marital deduction which allows assets to pass from the deceased spouse to the surviving spouse free of estate tax, estate planning can be a challenge. Making a sizeable gift in 2012 from one partner to the other may be an effective planning tool.

Estate and gift tax is definitely complex and a taxpayer’s situation and goals vary widely. Expert advice is a must before any final decisions are made or transactions may have unintended consequences. Contact your LMGW advisor for other planning opportunities to maximize the benefit of the $5.12 million estate tax exemption. For more information you can also check out our article on Estate Tax Portability here.

If an employee receives more than $18,350 in wages during the two month period the tax cut is in effect, a recapture provision will apply. The recapture is equal to 2% of the wages in excess of $18,350 and up to $110,100. The recapture tax is an additional income tax liability imposed only on higher income employees and is paid when the taxpayer files their 2012 tax return. The additional tax cannot be reduced by credits or deductions.

Stay tuned for further updates as there have been talks within Congress to extend the tax cut through 2012.

The first and second rounds of OVDI produced great results for the IRS, netting the Treasury almost $4.4 billion in revenues. The third round of OVDI announced this week, unlike its predecessor programs, has no official deadline to apply by. In an effort to discourage “holding out” the IRS has upped the potential penalties to 27.5% of the highest aggregate balance in the undisclosed foreign account during the full eight years prior to disclosure in addition to the usual late payment penalties and interest on income generated from the account. This is an increase from the 25% penalty rate set out in OVDI 2. Some taxpayers will be eligible for reduced penalties of 5% or 12.5% depending on circumstances. To be eligible taxpayers must file all original and amended tax returns and delinquent Foreign Bank Account Reporting (FBAR) statements and include payment for back-taxes and interest for up to eight years as well as pay any accuracy-related and/or delinquency penalties.

US citizens and resident aliens are required to report and pay income tax on their worldwide income, in addition to declaring any foreign accounts with an aggregate balance greater than $10,000 each year. The IRS is currently looking to close the “tax gap” and aggressively pursuing taxpayers who hold foreign accounts in an effort to raise revenue. This includes many taxpayers who have legitimate reasons for maintaining foreign bank accounts and/or have foreign assets acquired through perfectly legitimate means (such as an inheritance). Given the substantial risk of penalties as well as the implementation in 2013 of the Foreign Account Tax Compliance Act (FATCA) that was part of President Obama’s HIRE act passed in 2010, it is imperative all foreign holdings are properly disclosed to avoid penalties.

Contact your LMGW tax advisor at once if you believe any of these laws may affect you.

Blank Organizer

Michael graduated from CSU, Chico in 1998, where he majored in Business Administration with options in Accounting and Production and Operation Management. He previously worked with Ernst & Young, LLP in Sacramento, CA for 6 years serving as an Audit Manager.  Michael also worked for Dole Fresh Vegetables in Salinas, CA, as Assistant Controller and CFO to Leasing Express, Inc., an equipment leasing company in Palm Desert, CA and Aptos, CA. 

Michael is currently a member of the California Society of Certified Public Accountants and the American Institute of Certified Public Accountants.

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The “Best Accounting Firms to Work for” program is a national program managed by the Best Companies Group and Accounting Today magazine to identify and honor the best places of employment in the accounting industry. LMGW excelled in 8 Core Focus Areas: Leadership and Planning, Corporate Culture and Communications, Role Satisfaction, Work Environment, Relationship with Supervisor, Training and Development, Pay and Benefits and Overall Engagement.

“We are honored to be recognized for a third year in a row by Accounting Today, one of our industry’s most prestigious national publications,” says Keith Plottel, Managing Partner of LMGW Certified Public Accountants, LLP. “This special recognition would not be possible without our excellent team of dedicated professionals, providing the highest quality service to our clients. Our firm has been dedicated to providing opportunity for career advancement utilizing structured reviews and career development programs. Our open door policy allows staff and seniors the opportunity to work directly with partners, learning from their experiences. We focus on improving work-life balance to ensure our staff have the necessary time they need to pursue outside interests.”

To learn more about the Best Accounting Firms to Work For program, visit www.bestaccountingfirmstoworkfor.com.

• Any financial account maintained by a foreign institution
• Stocks issued by a non US entity that are not held in an account maintained by a financial institution
• An interest in a foreign entity not held in an account maintained by a financial institution
• Notes, bonds, or debentures issued by a foreign person not held in an account maintained by a financial institution
• An interest in a foreign trust not held in an account maintained by a financial institution

Generally, only individuals are subject to the reporting requirements. Domestic entities are not subject unless the entity is formed for the purpose of holding specified foreign financial assets. If you have a reportable interest you must disclose certain information, including the account number, the name and address of the financial institution where the account is maintained or of the issuer if the asset is not held in a financial institution, and the maximum value of the asset during the year. This information is reported on Form 8938. A copy of the form as of December 2011 can be found here.

Keep in mind that Form 8938 reporting does not replace the Report of Foreign Bank and Financial Accounts (FBAR). Form 8938 and the FBAR are independent reporting obligations and some taxpayers may meet the requirements for filing both forms.

The penalties for not disclosing foreign assets are steep, with a minimum penalty of $10,000. Be sure to talk to your LMGW advisor if you think you may have a reportable interest.

• The David Andrew “Pooh” Madden Foundation
• Second Harvest Food Bank of Santa Clara County
• Second Harvest Food Bank of Santa Cruz County
• Santa Clara Council Boy Scouts of America
• St. Jude Children’s Research Hospital
• Saint Francis High School
• Renegades Association of California
• The JW House

If you are not familiar with any of the organizations listed feel free to ask us about them! Several members of the LMGW team are personally involved with the charities and would be happy to tell you about them. Happy Holidays!