Big Ohio Accounting Shows cover big CPA issues.

• Position: Education

"The new preparer penalty is incredibly complex--over 200 pages long--and impacts all signing return preparers and those who advise them," said Matt Kadish, an attorney and shareholder in the Cleveland law firm of Kadish, Hinkel & Weibel. Kadish and his father Steve Kadish provided a detailed update on the latest federal tax developments in one of the most popular sessions at The Ohio Accounting Show in Cleveland.

Annually attracting more than 1,100 CPAs and offering more than 90 sessions over two days. the Cleveland Accounting Show also features a robust exhibit hall with the latest products and services targeted towards CPAs. Is it any wonder this is one of the Society's most popular events?

The new preparer penalty requires preparers show that at the time the return was prepared, the preparer reasonably believed each tax positions was more likely than not to succeed. That makes the preparer a gatekeeper for the taxpayers' tax behavior and fundamentally changes the dynamic of the relationship from one of consulting to one divided between consulting and protecting the preparer.

"This area is enormously important to all signing return prepares and those who advise them. I haven't seen anyone yet who really understands it and people need to know what to do," said Matt Kadish.

The presentation also covered changes in the S Corp penalty. "The new S Corp penalty really caught my attention. It used to be okay as long as you filed by Oct. 15. Now after Sept. 15 you face a fine of $85 per shareholder, per month. I'm definitely taking that information back to the office," said Pam Trivisonno, CPA, a sole practitioner from Mentor.

"I'm always interested in any information they have on S Corps," said Gaye N. Fahle, CPA, with United States Endoscopy Group, Inc. in Mentor. "I also love the humor in their presentation."

PROPOSED EXPOSURE DRAFT TO INTRODUCE NEW STOP ON ASSURANCE CONTINUUM

Changes in attest services was another hot topic during the Cleveland Accounting. Soon CPAs may be able to help small businesses produce high-quality financial statements and still provide a level of assurance regarding those statements.

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During a packed session, Michael Glynn, CPA, AICPA technical manager--audit and attest standards, discussed the upcoming exposure draft that would introduce a new stop on the assurance continuum. The proposal is part of the larger Reliability Project from the AICPA Accounting and Review Services Committee (ARSC).

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