David A. Pope, CPA CGMA - News

Wyoming Governor Announces Grant Program

Sat, 28 Mar 2020 15:23:58 GMT

Governor Mark Gordon released the following today:

FOR IMMEDIATE RELEASE

March 27, 2020

CONTACT: Michael Pearlman, Communications Director

307.777.7437 | michael.pearlman@wyo.gov

Governor announces availability of Layoff Aversion Grants to Wyoming businesses

CHEYENNE – Governor Mark Gordon announced today that the Wyoming Department of Workforce Services (DWS) and the Wyoming Workforce Development Council (WWDC) are offering $300,000 in grants to support businesses in order to avert or shorten layoffs during the COVID-19 pandemic in Wyoming.

"I am working tirelessly to find and deploy tools to strengthen Wyoming businesses during these challenging times," said Governor Mark Gordon. "Wyoming’s Layoff Aversion grants provide some relief to businesses while keeping employees working."

DWS and its 20 Workforce Centers will assist businesses with grant applications to support these important layoff aversion strategies for Wyoming’s economy. The application can be found here.

More information about options available to businesses can be found here.

"Wyomingites are creative and resilient, but sometimes we need a little financial assistance to get through the hard times," said DWS Director Robin Sessions Cooley. “I expect we will see employers come up with very innovative solutions through the Layoff Aversion grants."

The grants will be available to all eligible Wyoming businesses in good standing with Unemployment Insurance and Worker’s Compensation. Businesses can apply for up to $5,000 to support layoff aversion strategies that can keep their businesses open -- and employees working -- or shorten the duration of a layoff.

"Wyoming employers are the backbone of our great state, and we want to help employers continue to operate in this unprecedented time," said WWDC Chairman Jim Engel. "We encourage employers to identify innovative ways to continue doing business while observing social distancing and other guidelines."

Layoff Aversion grant funding may be used on a reimbursement basis as a result of the emergency declaration of March 13, 2020 for:

· Costs associated with frequent deep cleaning/sanitization services to help prevent potential exposure to COVID-19 when companies have to remain open

· Purchase of software or computer applications so employees can work from home/remotely in order to support social distancing and limit potential exposure and spread of COVID-19

· Funding to purchase necessary equipment needed to make social distancing possible

· Related costs to add additional shifts so companies can continue to operate

· Purchase of laptops and related expenses so employees can telework

Funding is intended to support Wyoming’s economy and vitality during the COVID-19 crisis. Funding will be paid out by DWS, as the fiscal agent. Grant funding should be reasonable and necessary for implementing layoff aversion strategies to assist Wyoming businesses.

David Pope Named Executive Director of Wyoming Blockchain Coalition

Tue, 14 Nov 2017 21:42:17 GMT

***PRESS RELEASE***
For Immediate Distribution

David A. Pope, CPA CGMA and Principal Officer of the DAPCPA group of accounting firms was named Executive Director of Wyoming Blockchain Coalition, LLC, effective immediately.

Wyoming Blockchain Coalition was created to advance the use of Blockchain within the State of Wyoming and educate Wyoming citizens about the power of blockchain technology to cut costs, streamline administrative processes and spur entirely new businesses in Wyoming.

As part of the Coalition's mission, it will promote legislative and regulatory changes within the State, as well as sponsor such diverse activities as setting up test blockchain nodes, host educational events and work with Wyoming's public and private sector to help implement this dramatic new technology.

"My involvement in this group is exciting." Mr. Pope explained in a recent statement. "For the accounting world especially, Blockchain represents the most revolutionary systems enhancement I have seen. When I began my career in 1987, I was still preparing accounting records by hand. This technology may be more subtle than the change to computerized accounting, but it will be every bit as impactful as that change was."

Mr. Pope will continue to lead the DAPCPA group of accounting firms while also acting as Executive Director of the Coalition. "My involvement with the Coalition is as an unpaid volunteer," he explained. "I have always prided myself on putting the needs of my clients and the needs of the State above all. This effort in particular is something that will help keep Wyoming at the forefront of both technology and business. By all measures, Wyoming consistently rates as the best state in which to do business. We were the first to create the Limited Liability Company. We remain a state with no corporate income taxes and a low-regulatory burden. Our citizens pride themselves on our strength and independence. Blockchain will help all of those things remain true."

Blockchain is a new form of database technology that enables multiple parties to share a single “golden copy” of data and trust that it is valid, owing to a breakthrough of computer science that enables the computers of multiple users or organizations to reach consensus about the state of their shared data without the need to reconcile their own copies. It is gaining adoption by users big and small to save costs, streamline administration and improve transparency and auditability.

The DAPCPA group of firms was established in Cheyenne in 1996 with three clients and is now a thriving group of three firms located in Cheyenne, Riverton, Wyoming and Winter Park, Colorado. They serve in excess of 2,000 clients that do business in all 50 states and several foreign countries.

Media Inquiries - please call David Pope at (307) 638-3170.

DAPCPA Partners With Cheyenne Chamber For Business Week

Thu, 05 Oct 2017 01:40:50 GMT

It is our distinct pleasure to announce that DAPCPA Pope & Jackson, Inc. has agreed to partner again this year with the Greater Cheyenne Chamber of Commerce to present Building UP Business, 2017 Business Week.

The main event is a business to business expo that will be open to the public from 4pm until 7pm on November 1st at the Little America Hotel in Cheyenne. It is the second consecutive year that DAPCPA has presented the event along with the Greater Cheyenne Chamber of Commerce and will showcase dozens of Cheyenne area businesses.

In a prepared statement, DAPCPA founder David Pope, emphasized that "As one of Wyoming's premier CPA firms, DAPCPA is committed to the success of both its clients AND the entire business community in our state. This is an opportunity for all businesses within the community of Cheyenne to build relationships and help each other to succeed. And as a CPA firm that is dedicated to excellence, we are proud that we can help facilitate that type of interaction.".

In addition to their sponsorship of the event, DAPCPA will interview various community leaders throughout the day on Facebook Live, including Wyoming Secretary of State Ed Murray at 6pm, and will giving away a 55" 4k ultra high-definition TV and an iPad in separate contests during the event. See our Facebook page (@DAPCPA) for more details.

For additional details on the Expo, please go to www.cheyennechamber.org.

Mayor Orr Names New Treasurer

Tue, 25 Jul 2017 23:04:15 GMT

Prepared Statement From David Pope

Yesterday, Mayor Marian Orr named Ron Downey, longtime accountant for the State of Wyoming, as the new Treasurer for the City of Cheyenne. This announcement begins the countdown for my exit as the interim solution for the City's Treasury Department.

The Cheyenne Treasurer’s office provides a vital function to the City. It safeguards and accounts for the monetary means by which the City’s hopes, dreams and aspirations are fulfilled. In its 150 year history, every single City endeavor has eventually made its way through the Treasurer’s office. And in its 150 year history, there have been many fine Treasurers that have served the City well. These are folks that have poured their blood, sweat and tears into the office and each of them deserve our respect, admiration and thanks. The same is true for all of the employees of the Treasurer’s office. They serve the same cause with dedication and expertise.

When my firm and I were selected to fulfill some of the operational and interim duties of the office during the transition between Treasurers, I was honored and privileged to be able to work with Cheyenne’s first female Mayor, Marian Orr. However, another real privilege came in having the opportunity to work with the staff in the department. People like Marty, Sara, Shellee, Deanne, Cindy, the ex Assistant Treasurer Robin and the new Assistant Treasurer Kelcee. In our first meeting, I told them that I was there to take all of the responsibility and give them all of the credit. They proved to me on a regular basis that they truly deserve all of the credit. Their hard work and long hours kept the department going and they each deserve recognition for their efforts.

As time moved along, we were able to accomplish some pretty incredible things. Mayor Orr, who is a wonderfully visionary leader, worked with the City Council in a dynamic way to pass and implement a budget that is both sound and responsible. We worked through operational hurdles within the Treasury and all of the basic functions of the department have continued to be met – even with staffing at crisis levels. The City continues to move forward with all of its dreams, goals and aspirations and, in the quiet of the background, Treasury is being re-built. Rebuilt from the ground up as we fill the open positions, unify the department, and put into place a structure and environment that will decrease the need for someone like me in the future.
Once you have been a Treasurer for the City, you will always be linked to the City. You learn the inner workings as no other position allows. And it is with a bit of sadness (and relief) that I welcome the news of Mr. Downey's selection. However, I have no doubt that he will perform brilliantly as a leader. He will provide a solid, proven record and continue to move the department forward. Together with Mayor Orr and the City Council, great things will continue to be accomplished.

I spoke earlier of the honor and privilege of being selected to fulfill the function of Treasurer, however briefly. But now it is my great honor and privilege to welcome Ron Downey as my replacement and as the new Treasurer of the City of Cheyenne.

IRS Phishing Scams

Tue, 14 Mar 2017 22:27:14 GMT

by Grace Bohall, CPA

Dear IRS:
Please take me off your list.
Thank you.

What is the one thing that instills fear into most adults? The IRS. We all hope we are compliant, we hope we don’t get audited. We hope we don’t have to pay more taxes. We just hope they stay away.
There are scammers out there that are using our fear of the IRS to steal your identity and even steal your money. How do you know if it is a scammer or the actual IRS?

The IRS will not contact you by e-mail, text message, or through social media.
The IRS initial point of contact is always through the mail.
The IRS will not call demanding payment.
They will not require paying by certain payment method, such as wire transfer, prepaid debit card, or gift cards.
They will never ask for credit or debit card information over the phone.
They will not threaten to call local law enforcement.

If you suspect that you are receiving a call from someone falsely claiming to be from the IRS, record the employee’s name, badge number, and call back number, and call 1-800-366-4484 to determine if they are an IRS employee with a legitimate need to call you.
If you know that the phone call is a scam or you end up getting scammed report the incident to the Treasury Inspector General for Tax Administration at 1-800-366-4484 or www.tigta.gov.

Farmers and Ranchers To Undergo Increased Scrutiny

Mon, 06 Mar 2017 22:31:48 GMT

Below is the unabridged text of a new IRS memo that illustrates increased audit procedures for farmers and ranchers. The Small Business/Self-Employed division of the IRS will begin scrutinizing certain expenses via both correspondence and physical audit.

PLEASE give us a call at (307) 638-3170, (307) 256-2637 or (970) 726-8044 if you receive any sort of audit correspondence from the IRS. We can help.

MEMORANDUM FOR DIRECTOR, EXAMINATION - CAMPUS
FROM: Michael Damasiewicz
Director, SB/SE Examination Field and Campus Policy SUBJECT: Pilot Program Auditing Schedule F Expenses
The purpose of this memorandum is to issue guidance on a pilot program for Schedule F Expenses for SB/SE Correspondence Examination. Although this pilot will only be worked in the Brookhaven Campus, phone calls may be received in all SB/SE Campuses. Please distribute this information to all affected employees within your organization.
The pilot is expected to begin April 1, 2017 and conclude April 1, 2018.
The attached document contains additional details. If you have questions you may contact me or Program Manager Miriam Gottlieb at 402-233-7329.
Attachments
Attachment 1
Purpose: This interim guidance communicates temporary procedures for a pilot program auditing Schedule F Expenses. The pilot will focus on verifying certain Schedule F expenses.
Background/Source(s) of Authority: There has been limited coverage of Schedule F in recent years in Correspondence Exam (Corr Exam). We believe there may be compliance issues such as deducting expenses on the wrong form, deducting expenses actually belonging to another taxpayer, or related to Internal Revenue Code (IRC) §
183. We will use the same filtering process as is currently used for Schedule C examinations.
Taxpayers are being asked to provide documentation to show they qualify for the questioned expenses. In general, a taxpayer may deduct reasonable, ordinary, necessary and business-related expenses on Schedule F.
Occasionally, the items being verified appear to be legitimate and verifiable deductions but they should not be on a Schedule F. They are not deductible on the Schedule F if they are related to the taxpayer’sW-2 job, the Schedule A, or a Corporate Return.
These cases may also have start-up costs or a hobby loss where enjoyment is the main focus of the activity.
Leads will be generated from a series of compliance Data Environment (CDE) filters run through CampusWorkload Delivery (CWD) elimination filters. The filter is designed to identify those taxpayers who have W-2s with large income who file a Schedule F and may not have the time to run a farm.
This pilot consists of 50 TY 2015 cases. Project Code 0199 will be used to monitor pilot cases.
Procedural Change: A section has been drafted in IRM 4.19.15 as Interim Guidance (IG) procedures, specifically IRM 4.19.15.32, Schedule F Expenses, to provide guidance for working the pilot program.
Effect on Other Documents: Pending the outcome of this pilot, this guidance may be incorporated into IRM 4.19.15.32, Schedule F Expenses, at the conclusion of the pilot.
Effective Date: April 1, 2017
Contact: Nancy Higgs, SBSE Campus Exam Program Analyst, 801-612-4409, by email, OC or phone
Attachments: Interim procedures Distribution:
IRS.gov (http://www.IRS.gov)
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4.19.15.32 (MM-DD-YYYY) Schedule F Expenses
(1) The form 1040, Schedule F, Profit or Loss From Farming, is used to report farm income and expenses. A farm includes grain livestock, dairy, poultry, fish, fruit, and truck farms. It also includes plantations, ranches, ranges, and orchards and groves. See Pub 225 for more information.
(2) A taxpayer is a farm-related taxpayer if any of the following tests apply:
1) Main home is on a farm. 2) Principal business is farming. 3) A member of the family meets tests (1) or (2).
Note: For this purpose, family includes your brothers and sisters, half-brothers and half-sisters, spouse, parents, grandparents, children, grandchildren, aunts, uncles and their children.
(3)
a) b) c) d) e)
(4) Schedule F cases will be started in Program Code 0199 and worked only in the Brookhaven Service Center Campus.
(5) When inspecting returns always look for costs being deducted that appear to be excessive for the income reported. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in the trade or business. A necessary expense is one that is helpful and appropriate for the trade or business. It is important to separate deductible business expenses from the following expenses:

Capital Expenses, (payment or debt incurred for the acquisition, improvement, or restoration of an asset having a useful life of more than one year.) See Publication 225, Capital Expenses, for certain expenses that may be deducted.

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Personal Expenses, including gasoline, oil, fuel, repairs, maintenance or mortgage interest. It is not always easy to determine the business and non-business parts of an expense. Any reasonable allocation is acceptable. What is reasonable depends on the circumstances in each case.

(6) IRC § 162 and Treas. Reg. § 1.162-12 provides for the deduction of ordinary and necessary expenses, paid or incurred in connection with the operation and maintenance of a farm. Most farmers use the cash method of accounting to record their expenses. When using the accrual method of accounting, farm business expenses are not deductible until economic performance occurs. Economic performance generally occurs as the property or services are furnished to the farmer and the liability is incurred. See Farmers ATG - Expenses at https://www.irs.gov/businesses/small-businesses-selfemployed/farmers-atg, for detailed information.
(7) Farmers often write a substantial number of checks during the last few days of the tax year to pay expenses. Large disbursements should always be part of your examination. You must then determine if the disbursement is a payment or a deposit. Whether an expenditure is a payment or a deposit depends on the facts and circumstances of each case. A deposit to be applied against a future expense is not deductible; unless the expense is for future supplies (Addressed in Supplies below). Although a check is written, no deduction is allowable until the expense is actually incurred. The following factors, although not all inclusive, are indicative of a deposit rather than a payment.
a) The absence of specific quantity terms. b) The right to a refund of any unapplied payment credit of the contract. c) The treatment of the expenditure as a deposit by the seller. d) The right to substitute other goods or products as specified in the contract.
These Factors apply to all farm expenses for which a payment is made prior to delivery.
4.19.15.32.1 (MM-DD-YYYY) Custom Hire
(1) Farmers hire individuals or business who own equipment, the farmer does not own, to perform specific activities on their farms such as no till planters, combines, etc. These amounts are fully deductible as an expense on line 13 of Schedule F.
Note: Do not include amounts paid for rental or lease of equipment operated by the taxpayer; these should be listed on line 24A, Rent or lease.
Note: Do not include amounts paid to employees as wages. If a pilot case is claiming wages under Custom Hire on line 13 of their Schedule F, send an e-mail containing the SSN, and details pertaining to the issue to: nancy.b.higgs@irs.gov.
(2) Acceptable documentation may included receipts or contracts from the provider and canceled checks or bank statements showing payment for services.
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4.19.15.32.2 (MM-DD-YYYY) Gasoline, Fuel, and Oil
(1) Fuel expenses on the farm may include gas, diesel, or oil. All fuel expenses must be for conducting business on the farm. The following questions must be asked:
a) Do you have a storage tank on the farm? b) How do you account for personal use from the storage tanks? c) If fuel was purchased from a gas station, request an explanation why, to ensure it
was not for personal use.
(2) Acceptable documentation may include receipts for purchase and canceled checks or bank statements showing payment for the purchase. Reasonable documentation explaining business verses personal use of fuel.
4.19.15.32.3 (MM-DD-YYYY) Mortgage Interest
(1) Mortgage Interest on real property used in the taxpayers farming business (other than their main home), will be claimed on line 21a, if paid to a bank or other financial institution for which the taxpayer received a Form 1098 (or similar statement).
Note: If purchased from a bank the loan may include their personal residence. You will need to separate personal use and farm use of the loan and any interest claimed.
(2) Farms generally have one of two types of purchase agreements for farms, purchased from a family member or purchased from a bank.
(3) If purchased from a family member the taxpayer may have an amortization schedule with a purchase agreement. A form 1098 will not be issued. This interest amount will be claimed on Line 21b and will not be included in the audit.
(4) If the mortgage loan combines farm and personal assets, the taxpayer must provide a breakdown showing the amount of interest applied to farm and personal.
4.19.15.32.4 (MM-DD-YYYY) Repairs & Maintenance
(1) Repairs and maintenance of farm buildings, machinery, and equipment that do not add tot he property’s value or appreciably prolong its life.
Note: Do not allow deductions for repairs or maintenance on personal residence.
4.19.15.32.5 (MM-DD-YYYY) Supplies
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(1) Farmers can pre pay for supplies used in the upcoming year. IRC § 464 limits the allowable deduction for prepaid supplies if they exceed 50% of the total deductible farm expenses for the taxable year. If the prepaid farm supplies have actually been used or consumed, the amount is fully deductible.
(2)
1) The expense must be a payment for the purchase of supplies, not a deposit. The amount is considered a payment if it was made under a binding commitment to accept delivery of a specific quantity at a fixed price, and the farmer is not entitled to a refund or repurchase.
2) The prepayment is not merely for tax avoidance, but has a specific business purpose. Examples of business benefits are: a- Fixing maximus prices. b- Securing an assured feed supply. c- Securing preferential treatment in anticipation of shortages.
3) The deduction does not result in a material distortion of income. Some factors to consider in determining wether there is a material distortion of income are: The farmer’s customary business practices in conducting the farming operation. The materiality of the expenditure in relation to the taxpayer’s income for the year. The time of the year the purchase is made. The amount of the expenditure in relation to past purchases.
(3) Acceptable documentation may include receipts, or contracts and copies of checks or bank statements showing payment. The taxpayer must include an reasonable explanation for prepaying the supplies.

IRS says 2017 tax season starts Jan. 23

Thu, 15 Dec 2016 20:29:40 GMT

The Internal Revenue Service announced that next tax season will begin on Monday, Jan. 23, 2017.

The IRS will begin accepting e-filed returns on January 23 and anticipates more than 153 million individual tax returns to be filed throughout the course of the year. The IRS believes more than four out of five tax returns will be prepared electronically using tax preparation software, as was the case last year.

The IRS also explained that a new law requires the agency to hold back tax refunds claiming the Earned Income Tax Credit and the Additional Child Tax Credit until February 15. It is also important to note that it will take several days for these refunds to be released and processed through financial institutions. Factoring in weekends and the President’s Day holiday, many affected taxpayers may not have actual access to their tax refunds until the week of February 27.

Urgent Update

Thu, 15 Dec 2016 19:11:14 GMT

by Grace Bohall

Urgent Update on Overtime Regulations

Many of you read my article on November 17th informing you of the new overtime rules going into effect on December 1st affecting salary employees. On November 22, 2016 a federal judge blocked the Department of Labor from implementing the new rules. The rules for salary employees will stay the same for now, but stay tuned for an appeal or act of Congress for changes in the future.

Are You Ready For The New Overtime Rules?

Thu, 10 Nov 2016 21:58:25 GMT

by Grace Bohall, CPA

Employers, are you ready for the new overtime regulations for your salaried employees effective December 1, 2016?

In May the Department of Labor doubled the salary threshold that normally keeps your salary employees exempt from overtime pay. This means that if you pay your salaried employees who have executive, administrative, or professional duties less than $47,476 per year, you are now subject to paying them overtime if they work more than 40 hours per week.

What can employers do to respond to this new rule?

1. Limit hours to only 40 hours per week

2. Raise employee salaries over the threshold

3. Be prepared to pay time and a half for overtime work

4. Change your salary workers to hourly. (Great care needs to be followed when doing this to stay compliant with the Fair Labor Standards Act)

Small businesses are not exempt from this raise in the salary threshold. Will you be ready?

IRS Website Allows Thieves To Steal Data For 100,000 Taxpayers

Tue, 26 May 2015 22:10:54 GMT

In a press release today, the U.S. Internal Revenue Service said that identity thieves stole prior year tax return information for about 100,000 households. The data included Social Security information, date of birth and street address. The Wall Street Journal reported this as "a major setback for the agency that is charged with safeguarding taxpayer's privacy".

The criminals somehow gained enough information via third parties to answer the personal verification questions and make it through the multi-step verification procedure on the "Get Transcript" web site. The Treasury Inspector General and Criminal Investigations Unit of the IRS have begun a review and investigation of the matter. The "Get Transcript" website has been shut down temporarily.

In total, the IRS has identified 200,000 total attempts to access data and will be notifying all of these taxpayers about the incident.

The IRS will offer free credit monitoring for those affected.