CSTC Newsletter

July 2019

In This Issue...

  1. From the President
  2. 2019 Fall Tax and Accounting Forum
  3. July 2019 Chapter Events
  4. July 2019 Board of Directors Meeting
  5. Welcome New CSTC Members
  6. Legislative Advocacy
  7. Become a CA Registered Tax Preparer (CRTP)
  8. News from the IRS
  9. Join CSTC!

CSTC Member Benefits

CSTC members have access to benefits such as free payroll processing services for your tax practice, and the opportunity to earn new revenue through their flexible partnership options.

CSTC is pleased to include the VeriFyle ProTM premium secure online document and message sharing service at no cost to CSTC members!

Wolters Kluwer: Discounts on Tax, Accounting & Audit Resources, Software, Information & Services. 

 CSTC members receive the TaxBook WebLibrary at a special price

Other Member Benefits Include:

$ Savings on all Society Educational Events

$ Savings on Contact, Correspondence & Self Study Education

$ Savings with member specialty CSTC Connects (previouslyYellow Pages) list

$ Savings with E & O Insurance, plus specialty coverage relevant to your profession

$ Online CSTC Find-a-Tax Consultant search to help promote your business!

$ CSTC Member Listserv

Office Depot has partnered with us to provide exclusive savings in-store and online, plus fantastic additional benefits. This program is all about providing preferred pricing to our clubs, and the savings extend to almost every item.

Savings include 20% to 55% off item office supply core list, 20% to 55% off retail on cleaning  & break room items, 10% off branded; 20% off private brand  ink & toner core list, Average 10% off  retail on 200 technology core items, Free next-day shipping on orders of $50 or more, and SIGNIFICANT savings on copy & print. Become a CSTC member to sign up for our Office Depot Small Business Savings Program, administered by Excelerate America.

We are a professional full-service tax advisory firm in San Diego. Our goal is to provide a level of service for our clients that will exceed expectations in every possible way. We strive to offer a diverse level of services in order to meet the needs of the diverse community we have been working in for more than 30 years.

TaxMama's® EA Exam Course prepares tax professionals to do so much more than just pass the IRS' Special Enrollment Examination. This is in-depth course teaches tax law from the ground up. It explains how tax returns work, with examples of basic 1040s, Schedule Cs, 1065s, 1120s, and 1120Ss; you learn tax law, tax research, client representation for audits, appeals and collections. 


If you are interested in buying or selling a practice, contact us today! ATB is operated by Enrolled Agents ensuring a complete understanding of our profession. Please give us a call at (855) 428-2225 or visit us online at www.ATBCAL.com for more information and to view our current listings.
CA DRE 02002824


CSTC Mission

CSTC advances professionalism within the tax industry by:

  • Providing quality education
  • Creating networking opportunities
  • Advocating professional standards


From the President

My wife Cheryl loves to read good books. She says there’s something awesome about having a book in her hand to read. I, on the other hand, fall asleep when I sit down and start reading. To overcome my seeming inability to sit down and read, several years ago I started listening to books on tape, then on CD, and now on MP3s and Internet streaming. I’ve listen to books on business, entertainment, personal development, science, and everything in between. My truck does not move without two things; gas and an audiobook. In fact, I even enjoy “reading” books while riding my mountain bike. It’s surprising how fast I can read a book in 30 to 45 minute intervals and stay awake in the process.

This month I’d like to tell you about three of my favorite personal development books, The Compound Effect: Jumpstart Your Income, Your Life, Your Success, by Darren Hardy, 2010; The Power of Habit: Why We do What We Do In Life and Business, by Charles Duhigg, 2012; and Atomic Habits: Tiny Changes. Remarkable Results, by James Clear, 2018. Each book has changed my life in remarkable ways because they have taught me how habits compound and how critical they are to the success of anything.

Each of these books is easy to read (or listen to) and gives amazing insight on habits and routines. The most significant thing that I’ve learned from all three is that most people spend their time thinking of the end and working their way towards the end hoping that they will arrive there feeling successful and having completed everything they intended. However, that is not the way life works. In reality, what matters is the start, not the end. Jim Rohn, one of my personal development mentors, said, “Motivation gets you started. Habits keep you going”.

Routines matter. Habits matter. James Clear tells a story of a woman who would every day put on her dance clothes, walk to the curb and hail a cab, arrive at the dance studio and work out for 2 hours. She did this every day and became a fantastic dancer. The important thing was not that she worked out at the gym for two hours every day, but that she put on her dance clothes. It was the start, not the finish that mattered most.

Most people think that motivation is something that gets you going. But that’s not true, motivation kicks in after you’ve gotten going. Harvard psychologist, Dr. Jerome Bruner, has said “you’re more likely to act yourself into feeling than feeling yourself into action.”

Hardy, Duhigg, and Clear seem to all agree that one small habit carried out consistently over time will reap tremendous results. It is the small habit that brings the small win. With small wins you start to develop confidence, motivation, and momentum to move forward. Then, if you have a system in place to keep you going, that system and process will take you where you want to go.

While I love to go mountain biking, sometimes getting up at 5 o’clock in the morning to go can be tough. However, if I lay out my clothes the night before, I have started the habit loop that gets me up in the morning to put on my riding clothes and go riding. It really works. You might think that my motivation to go riding would be to stay in shape so I can keep up with my grandchildren. While that might be the end goal, it is not what gets me on the bike in the morning. What gets me on the bike is laying out my clothes the night before.

Though I have been in business for 30 years, I still need to do things to get the small wins to help me develop confidence motivation and momentum to move forward. If I don’t have good habits, I don’t follow my systems. If I don’t follow my systems, the work doesn’t get done. If the work doesn’t get done, I don’t get paid. If I don’t get paid, I don’t have the freedom to do things that I want to do.

Look around at how you run your practice and your life and notice the habits you’ve developed that lead to success. If you want to do better, imagine if you improved things just 1% every day. A small change, yes, but by the end of the year you will have changed 365%. A fantastic change!

Keep up the good habits and reap the rewards.

Your friend,
Gary Quackenbush, CSTC President

Save the Date for the 2019 Fall Tax and Accounting Forum in Sacramento!
September 20-21, 2019
Topic: Non-profits

The California Society of Tax Consultants (CSTC) provides quality tax education for tax professionals, including CTEC-registered preparers, Enrolled Agents, CPAs and attorneys. CSTC's 2019 Fall Forum will be held September 20-21, 2019 at the Courtyard by Marriott Sacramento Cal Expo in Sacramento, CA. It will focus on tax and accounting for non-profit organizations.

Schedule coming soon! 

July 2019 Chapter Events

July 2, 2019
Topic: Round Table
North County San Diego Chapter Meeting
1 Federal Tax Law Hour
1 Federal Update Hour 

Topic: Innocent or Injured Spouse? "Breaking Bad" style
East County San Diego Chapter Meeting
1 Federal Tax Law Hour

Topic: Mastering the Basics of Trusts and Estates
East County San Diego Chapter Meeting
1 Federal Tax Law Hour
1 California Hour

July 3, 2019
Topic: Round Table
Temecula Valley Chapter Meeting
2 Federal Tax Law Hours

July 10, 2019
Topic: Needed
Orange Chapter Chapter Meeting
Hours TBA

Topic: You Deserve to Increase Your Tax Knowledge of Members of the Clergy & Religious Workers
San Francisco Bay Chapter Meeting
2 Federal Law Hours

July 11, 2019
Topic: Installment Agreements: A to Z
North County San Diego Chapter Meeting
2 Federal Tax Law Hours

Topic: 1031 Exchange and the New Opportunity Exchange
San Gabriel Valley Chapter Meeting
2 Federal Tax Law Hours

Topic: Joint Meeting with CSEA - Business Entity Selection after TCJA
San Diego Chapter Meeting
2 Federal Tax Law Hours

July 12, 2019
Topic: Form 1041, Trusts and Estates Practical Applications
East County San Diego Chapter Meeting
3 Federal Tax Law Hours

July 17, 2019
Topic: After Tax Season Breakfast
Temecula Valley Chapter Meeting
Hours TBA

Topic: 1031 Exchanges and Their New Counterpart - Opportunity Zones
Inland Empire Chapter Meeting
1 Federal Tax Law Hour
1 Federal Update Hour

July 22, 2019
CSTC Board of Directors Meeting

July 23, 2019
Topic: Everything You Wanted to Know About Compensatory Stock Benefits
Orange County - South Chapter Meeting
2 Federal Tax Law Hours

July 24, 2019
Topic: Opportunity Zones and 1031 Exchanges
Orange County - Wine Country Chapter Meeting
1 Federal Tax Law Hour
1 Federal Update Hour

Click here to view the CSTC calendar.

July 2019 Board of Directors Meeting

Date: Monday, July 22, 2019

Time: 9 AM to 3:30PM

Location: Holiday Inn Express & Suites Santa Ana - Orange County
1600 E First St
Santa Ana, CA 92701
(714) 834-9455

 Welcome New CSTC Members!

Please help us in joining our newest CSTC Members!

Richard Arnason
San Jose Chapter

Susan Bolton
Greater Long Beach Chapter

Richard Bowen
Member-at-Large Chapter

Christopher Cebell
Member-at-Large Chapter

Myungsik Chae
Orange County Chapter

Richard Dally
North County San Diego Chapter

Rosa Handal
San Gabriel Valley Chapter

Patrick Howard
East County San Diego Chapter

Loretta Lomas
Sacramento Chapter

Yi Qi Lu
Inland Empire Chapter

Heather Mandell
Sacramento Chapter

Linda Owyeung
San Francisco Bay Chapter

Jeff Pesta
San Jose Chapter

Angelica Reynoso
Central Valley Chapter

Josephine Sarhadi
Central Valley Chapter

Michael Van Handel
East County San Diego Chapter

Legislative Advocacy

CSTC has been the leading Association in supporting legislation to provide protection for our profession, to support our profession, and to enhance our profession. CSTC continuously leads our industry through legislative advocacy, educational opportunities, and professional inclusion.

CSTC works closely with a Legislative Advocate in Sacramento to keep an eye on important bills that would effect tax payers and small business owners.

Please click here to view the bills that CSTC is currently monitoring.

Become a California Registered Tax Preparer (CRTP)!

The California Society of Tax Consultants offers two options for those looking to become a California Registered Tax Preparer (CRTP).

Both courses teach you the fundamentals of federal tax law. And it doesn’t just teach you the law--you also learn how to apply it in your review questions and learning activities by preparing practice tax returns.

ONLINE - All year round we offer an online QE course that you are able to purchase at any time and complete at your own pace. Click here or the online QE course box below to learn more. 

IN-PERSON - Starting in September, 2019, we will be offering an in-person course for the 60 hour QE Education. The course will start on September 9 and continue every Monday and Thursday until November 21, 2019. Click here or the in-person QE course box below to learn more.    

The Qualifying Course is powered by The Income Tax School.


June 20, 2019

Millions more ITINs set to expire in 2019; IRS says renew early to prevent refund delays

IRS YouTube Videos:
Individual Taxpayer Identification Number (ITIN) – English | Spanish


WASHINGTON — Nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the Internal Revenue Service continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year.

“We urge taxpayers with expiring ITINs to take action and renew the number as soon as possible. Renewing before the end of the year will avoid unnecessary delays related to their refunds,” said IRS Commissioner Chuck Rettig. “To help with this process, the IRS is sharing this material in multiple languages. We encourage partner groups to share this important information to reach as many people with ITINs as possible.”   

Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs that have not been used on a federal tax return at least once in the last three consecutive years will expire Dec. 31, 2019. In addition, ITINs with middle digits 83, 84, 85, 86 or 87 that have not already been renewed will also expire at the end of the year. These affected taxpayers who expect to file a tax return in 2020 must submit a renewal application as soon as possible. 

ITINs are used by people who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. ITIN holders who have questions should visit the ITIN information page on IRS.gov and take a few minutes to understand the guidelines.

The IRS continues a nationwide education effort to share information with ITIN holders. To help taxpayers, the IRS offers a variety of informational materials, including flyers and fact sheets, available in several languages, including English, Spanish, Traditional Chinese, Russian, Vietnamese, Korean and Haitian/Creole on IRS.gov.

Who should renew an ITIN

  • Taxpayers whose ITIN is expiring and who expect to have a filing requirement in 2020 must submit a renewal application. Others do not need to take any action. ITINs with the middle digits 83, 84, 85 or 86, 87 (For example: 9NN-83-NNNN) need to be renewed even if the taxpayer has used it in the last three years. The IRS will begin sending the CP-48 Notice, You must renew your Individual Taxpayer Identification Number (ITIN) to file your U.S. tax return, in early summer to affected taxpayers. The notice explains the steps to take to renew the ITIN if it will be included on a U.S. tax return filed in 2020. Taxpayers who receive the notice after acting to renew their ITIN do not need to take further action unless another family member is affected. 
  • ITINs with middle digits of 70 through 82 have previously expired. Taxpayers with these ITINs can still renew at any time, if they have not renewed already.

Family option remains available

Taxpayers with an ITIN that has middle digits 83, 84, 85, 86 or 87, as well as all previously expired ITINs, have the option to renew ITINs for their entire family at the same time. Those who have received a renewal letter from the IRS can choose to renew the family’s ITINs together, even if family members have an ITIN with middle digits that have not been identified for expiration. Family members include the tax filer, spouse and any dependents claimed on the tax return.

How to renew an ITIN

To renew an ITIN, a taxpayer must complete a Form W-7 and submit all required documentation. Taxpayers submitting a Form W-7 to renew their ITIN are not required to attach a federal tax return. However, taxpayers must still note a reason for needing an ITIN on the Form W-7. See the Form W-7 instructions for detailed information.

Spouses and dependents residing outside of the U.S. only need to renew their ITIN if filing an individual tax return, or if they qualify for an allowable tax benefit (e.g., a dependent parent who qualifies the primary taxpayer to claim head of household filing status.) In these instances, a federal return must be attached to the Form W-7 renewal application.

There are three ways to submit the Form W-7 application package. Taxpayers can:

  • Mail the form, along with original identification documents or copies certified by the agency that issued them, to the IRS address listed on the Form W-7 instructions. The IRS will review the identification documents and return them within 60 days.
  • Work with Certified Acceptance Agents (CAAs) authorized by the IRS to help taxpayers apply for an ITIN. CAAs can authenticate all identification documents for primary and secondary taxpayers, verify that an ITIN application is correct before submitting it to the IRS for processing and authenticate the passports and birth certificates for dependents. This saves taxpayers from mailing original documents to the IRS.
  • In advance, call and make an appointment at a designated IRS Taxpayer Assistance Center to have each applicant’s identity authenticated in person instead of mailing original identification documents to the IRS. Each family member applying for an ITIN or renewal must be present at the appointment and must have a completed Form W-7 and required identification documents. See the TAC ITIN authentication page for more details.

Avoid common errors now and prevent delays next year

Federal tax returns that are submitted in 2020 with an expired ITIN will be processed. However, certain tax credits and any exemptions will be disallowed. Taxpayers will receive a notice in the mail advising them of the change to their tax return and their need to renew their ITIN. Once the ITIN is renewed, applicable credits and exemptions will be restored, and any refunds will be issued.

Additionally, several common errors can slow down some ITIN renewal applications. These mistakes generally center on:

  • mailing identification documentation without a Form W-7,
  • missing information on the Form W-7, or
  • insufficient supporting documentation, such as U.S. residency documentation or official documentation to support name changes.

The IRS urges any applicant to check over their form carefully before sending it to the IRS.

As a reminder, the IRS no longer accepts passports that do not have a date of entry into the U.S. as a stand-alone identification document for dependents from a country other than Canada or Mexico, or dependents of U.S. military personnel overseas. The dependent’s passport must have a date of entry stamp, otherwise the following additional documents to prove U.S. residency are required:

  • U.S. medical records for dependents under age 6,
  • U.S. school records for dependents under age 18, and
  • U.S. school records (if a student), rental statements, bank statements or utility bills listing the applicant’s name and U.S. address, if over age 18.

To expand ITIN services, the IRS continues to encourage more individuals to apply for the Acceptance Agent Program

To increase the availability of ITIN services nationwide, particularly in communities with high ITIN usage, the IRS is actively recruiting Certified Acceptance Agents and accepting applications year-round. Interested individuals are encouraged to review all CAA program changes and requirements and submit an application to become a Certified Acceptance Agent.

For more information, visit the ITIN information page on IRS.gov.

June 4, 2019

IRS takes additional steps to protect taxpayer data; plans to end faxing and third-party mailings of certain tax transcripts


WASHINGTON — As part of its ongoing efforts to protect taxpayers from identity thieves, the Internal Revenue Service today announced it will stop its tax transcript faxing service in June and will amend the Form 4506 series to end third-party mailing of tax returns and transcripts in July. 

Tax transcripts are summaries of tax return information. Transcripts have become increasingly vulnerable as criminals impersonate taxpayers or authorized third parties. Identity thieves use tax transcripts to file fraudulent returns for refunds that are difficult to detect because they mirror a legitimate tax return.

The halt to the faxing and third-party service this summer are two more steps the IRS is taking to protect taxpayer data. In September 2018, the IRS began to mask personally identifible information for every individual and entity listed on the transcript. See New Tax Transcript and Customer File Number. At that time, the IRS announced it intended to stop its faxing and third-party mailing service, and has since worked with tax professionals to assure they have what they need for tax preparation and representation.

Faxing service ends June 28

Starting June 28, 2019, the IRS will stop faxing tax transcripts to both taxpayers and third parties, including tax professionals. This action affects individual and business transcripts.

Individual taxpayers have several options to obtain a tax transcript. They may: 

  • Use IRS.gov or the IRS2Go app to access Get Transcript Online; after verifying their identities, taxpayers may immediately download or print their transcript, or
  • Use IRS.gov or the IRS2Go app to access Get Transcript by Mail; transcript will be delivered within 10 days to the address of record, or
  • Call 800-908-9946 for an automated Get Transcript by Mail feature, or
  • Submit Form 4506-T or 4506T-EZ to have a transcript mailed to the address of record. 

Tax professionals also have several options to obtain tax transcripts necessary for tax preparation or representation as follows: 

  • Request that the IRS mail a transcript to the taxpayer’s address of record, or
  • Use e-Services’ Transcript Delivery System online to obtain masked individual transcripts and business transcripts, or
  • Obtain a masked individual transcript or a business transcript by calling the IRS, faxing authorization to the IRS assistor and the IRS assistor will place the document in the tax practitioner’s e-Services secure mailbox.
  • When needed for tax preparation purposes, tax practitioners may:
    • Obtain an unmasked wage and income transcript by calling the IRS, faxing authorization to the IRS assistor and the IRS assistor will place the document in the tax practitioner’s e-Services secure mailbox, or
    • Obtain an unmasked wage and income transcript if authorization is already on file by using e-Service’s Transcript Delivery System.

Certain third-party mailings stop July 1 

Effective July 1, 2019, the IRS will no longer provide transcripts requested on Form 4506, Form 4506-T and Form 4506T-EZ to third parties, and the forms will be amended to remove the option for mailing to a third-party. These forms are often used by lenders and others to verify income for non-tax purposes. Among the largest users are colleges and universities verifying income for financial aid purposes. Tax professionals also are large volume users.

Taxpayers may continue to use these forms to obtain a copy of their tax return or obtain a copy of their tax transcripts. This change will NOT affect use of the IRS Data Retrieval Tool through the Free Application for Federal Student Aid (FAFSA) process. 

Third parties who use these forms for income verification have other alternatives. The IRS offers an Income Verification Express Service (IVES) which has several hundred participants, who, with proper authorization, order transcripts. Lenders or higher education institutions can either contract with existing IVES participants or become IVES participants themselves. The tax transcript is an official IRS record. Taxpayers may choose to provide transcripts to requestors instead of authorizing the third party to request these transcripts from the IRS on their behalf.

Tax professionals who are attorneys, Certified Public Accountants or Enrolled Agents (i.e., Circular 230 practitioners) and do not have an e-Services account may create one and, with proper authorization from clients, can access the e-Services’ Transcript Delivery System. Unenrolled tax practitioners must have an e-File application on file and be listed as delegated users to access TDS.

Customer File Number helps match transcripts

Because the taxpayer’s name and Social Security number are now partially masked, the IRS also created a Customer File Number space that can be used to help third parties match transcripts to taxpayers. Third parties can assign a Customer File Number, such as a loan application number or a student identification number. The number will populate on the transcript and help match it to the client/student. 

Learn more about the Customer File Number at About the New Tax Transcript and the Customer File Number.

Join the California Society of Tax Consultants!

Click here to fill out an online application.

CSTC advances professionalism within the tax industry by:

  • Providing quality education
  • Creating networking opportunities
  • Advocating professional standards

California Society of Tax Consultants | 320 Pine Ave, Suite #1050, Long Beach, CA 90802
Phone (949) 715-4192 | [email protected]