The SALT Shaker

Sales/Use Tax on CPA Firm Services

Currently in Maryland 12 specific services are subject to sales/use tax.  A bill has been proposed that would greatly expand the number of services subject to tax.  Two of these new services – cited below – will directly impact our practice:

11-101(m)

 (19) A tax preparation service

 (30) A management, a management consulting, a public relations, or ANY other business consulting service

 Almost every year this type of legislation is presented and thus far has been defeated.  The difference this year is that the legislation is sponsored by the powerful Chair of the House Ways and Means committee. I am concerned this bill will not “die in committee” as it has done in past years.

Additionally, the Governor’s Budget contains a new sales/use tax on “digital downloads.” There is a clause in this bill which could extend this new tax to e-filing of tax returns and CPE webcasts.

The state is looking for new revenue sources and they believe one of them could be the service economy. I try to not get worried about proposed legislation because the political world is too unpredictable but this may be the year some of these things become law.  Stay tuned.

The SALT Shaker is prepared by Andy Bareham, Chair of the KatzAbosch SALT Group

KatzAbosch hosted a breakfast meeting for the Maryland Chapter of CFMA on February 8.  The room was packed and in attendance were many influential people from the construction world including business owners, CFO’s and insurance and bonding specialists.  Zafar Farooqi from Capital Construction Consultants, Inc gave an excellent presentation on Construction Contract Claims.  It was evident from the group discussion that claims are more prevalent than ever in the current economic climate. After a brief instruction of claims certification and providing proper notice, the group greatly benefited from the case studies and graphic analysis describing delay impact claims, their cause, effect, and most importantly the recovery.

submitted by: Anita M. Sheckells, CPA, CCIFP

One of the region’s leading certified public accounting, tax and consulting firms, KatzAbosch, announced today that Scott Mattingly, CPA, CFP has been named a member of the Board of Directors of The Babe Ruth Birthplace Foundation, Inc. and Sports Legends Museum at Camden Yards. The Babe Ruth Birthplace Foundation is a nonprofit organization dedicated to preserving and celebrating the legacy of Maryland’s rich sports heritage. The Foundation owns and operates both Sports Legends Museum at Camden Yards and the Babe Ruth Birthplace.

Members of the Board of Directors contribute to the Museum’s mission by providing cultural and educational experiences through dynamic exhibits and programs. Members strive to increase community outreach while preserving and commemorating local and regional sports teams as well as individuals.

Mattingly says he is thrilled and honored to serve on the Board and to be able to contribute to the museum. He looks forward to continuing to build and enhance the Museum as the premier destination for sports enthusiasts for many years to come.

Andrew Jones

KatzAbosch, one of the Mid-Atlantic Region’s leading certified public accounting and consulting firms, has expanded its services to the Federal Government and Government Contractors by launching a new wholly-owned subsidiary, KatzAbosch Consulting LLC.  This new vertical is led by Andrew Jones and operated by KatzAbosch, P.A..

KatzAbosch Consulting LLC will continue to provide the same high quality of service expected by its clients with a broadened focus on Financial, IT and Workforce consulting as well as FAR & CAS compliance.

Andrew Jones has over twenty years experience in financial and business consulting. He is a Chartered Accountant (ACA), Certified Information Systems Auditor (CISA) and a Certified Government Financial Manager (CGFM).  Previous to joining KatzAbosch Consulting LLC, Jones started Manpower Public Sector Incorporated, where he was Vice President and Managing Partner. Prior to his employment with Manpower, Jones led the Public Sector practice for Unisys in the United Kingdom and was an equity partner at Arthur Andersen, LLP. In this capacity, Jones led the e-business and Customer Relationship Management (CRM) practice for the Government Vertical and was also the North American head of the Government Industry Program.  Jones has worked with many governments globally on privatization, including but not limited to the United Kingdom, United States of America, Saudi Arabia, Kuwait, Russia, Thailand, Egypt, Lithuania and Jordan. Jones has testified as an expert in front of congress on two occasions related to privatization and outsourcing. Prior to joining corporate finance, Jones was an audit manager in the financial markets group in London and Chicago with a focus on the banking sector.

When asked why he wanted to join KatzAbosch Consulting LLC, Jones replied, “It was always a goal to return to a professional accounting firm with a strong culture and leadership and to have the opportunity to drive a new segment in providing professional services to the federal government.”