deposits to the LLC's bank account from ...... Ellen M. Shuck, Rogersville. Gregory ...... $6. November - October. July 1, 2013 - Oct. 31, 2013. 4. Feb. 15, 2014. $7.
Tennessee
CPA JOURNAL $3XEOLFDWLRQRIWKH7HQQHVVHH6RFLHW\RI&HUWL¿HG3XEOLF$FFRXQWDQWV
January/February 2014 Vol. 59 No. 1
Legal Issues in
TAXATION:
DOMA
AND WHAT PRACTITIONERS NEED TO KNOW
In This Issue: 4XDOLW\6WRUHV&DVH5HIXQG Opportunity or Trap for Tennessee Employers? Tennessee Business Tax Transition
&RQÀLFWVRI,QWHUHVW6WLOO Cause Trouble for CPAs 7D[$GYDQWDJHG,QYHVWLQJ IRU2OGHU3DUHQWVZLWK0LQRU &KLOGUHQ
Escape the city lights
Get back to nature.
TSCPA’s 2014 Annual Convention & Educational Conference MeadowView Conference Resort & Convention Center Kingsport, Tennessee | June 8-10, 2014 &RQYHQWLRQ+LJKOLJKWV Golf Tournament6XQGD\-XQHDW&DWWDLOV*ROI&OXE 2SHQLQJ5HFHSWLRQ6XQGD\-XQHIHDWXULQJThe Scott County Boys Annual Banquet0RQGD\-XQHIHDWXULQJD6LOHQW$XFWLRQDQGPXVLFE\Symphony of the Mountains Chamber Ensemble
&3(+LJKOLJKWV 1HZ&262)UDPHZRUNChristopher Sellitti, CPA, PricewaterhouseCoopers LLP, Charlotte, N.C. 0DQDJLQJWKH1H[W*HQHUDWLRQRI&3$VJessica Stollings, re:Generations, Bristol, Tenn. 3URIHVVLRQDO,VVXHV8SGDWHDavid K. Morgan, CPA, Lattimore Black Morgan & Cain, PC, Brentwood, Tenn. 7HQQHVVHH6SHFL¿F(WKLFVMark H. Crocker, CPA, Tennessee State Board of Accountancy, Nashville, Tenn. (FRQRPLFDQG'HYHORSPHQW2XWORRNIRU7HQQHVVHHIliff McMahan Jr., Tennessee Department of Economic & Community Development, Johnson City, Tenn. $FFRXQWLQJ6WDQGDUGV8SGDWHJames K. Myers, CPA, Individual Practitioner, Knoxville, Tenn. )$6%6(&8SGDWHPatrick J. Gunning, CPA, Ernst & Young LLP, Atlanta, Ga. ,QYHVWPHQW2XWORRNDavid R. McCain, CFP, CIMA, CrossBridge Wealth Management, Johnson City, Tenn. (VWDWH7D[8SGDWHAnne M. McKinney, Anne M. McKinney, PC, Knoxville, Tenn. Visit www.tscpa.com/AnnualConventionIRUXSWRGDWHLQIRUPDWLRQDQGUHJLVWUDWLRQGHWDLOV +RWHOUHVHUYDWLRQVPD\EHPDGHDWWKH0HDGRZ9LHZE\FDOOLQJRUYLVLWLQJWKHLUZHEVLWH,I\RXFDOO UHIHUHQFHWKHJURXS716RFLHW\RI&3$V7KH76&3$UDWHLVQLJKWDQGLVHIIHFWLYHXQWLO0D\
TABLE OF CONTENTS
6
12
18
36
FEATURES
SOCIETY NEWS
_4XDOLW\6WRUHV&DVH5HIXQG2SSRUWXQLW\RU7UDSIRU Tennessee Employers? By Randall K. Skalberg
5 | 0HVVDJHIURPWKH&KDLU
_7D[$GYDQWDJHG,QYHVWLQJIRU2OGHU3DUHQWVZLWK0LQRU &KLOGUHQ By Seth Hammer, CPA, Ph.D.
9 | 6FKRODU6SRWOLJKW
_/HJDO,VVXHVLQ7D[DWLRQ'20$DQG:KDW3UDFWLWLRQHUV 1HHGWR.QRZ By Anthony G. Masino, JD, CPA
28 | 7HQQHVVHH&3$3$&&RQWULEXWRUV
_&RQÀLFWVRI,QWHUHVW6WLOO&DXVH7URXEOHIRU&3$V By Duncan B. Will, CPA, ABV, CFF, CFE
32 | 3DVV-XO\$XJXVW&3$([DP
42 | Tennessee Business Tax Transition By Kelly Nolan Cortesi
COLUMNS _7(&+7,36 7HFKQRORJ\7UHQGVWR0RQLWRULQ By Thomas G. Stephens Jr., CPA, CITP
8 | 76&3$ V )LUP$GPLQLVWUDWRU0DQDJHPHQW7RRO
25 | Tennessee CPA Journal'LJLWDO(GLWLRQ
31 | &KDSWHUVLQ$FWLRQ
33 | 0HPEHU0LOHVWRQHV 34 | 3URPRWH