(775) 786-6141
Women, women, everywhere. But are we in the right places? Yes and No. It is interesting that when we focus on something we find it everywhere we look.
Last week I was off to a conference In Portland. I always end up picking up reading material in the airport so I bought the October 2014 issue of the Harvard Business Review. In it I found an interesting article on Hacking Tech’s Diversity Problem. Diversity meaning “looking for more women.” It is widely known that the technology sector has a diversity problem.
This article notes four basic patterns of gender bias that hold women back:
Prove-it-again – Women often have to provide more evidence of competence than men do to be seen as equally capable.
Tightrope – High status jobs are seen as requiring stereotypically masculine qualities, while women are expected to be modest and self-effacing, so women must walk a tightrope between being seen as too feminine to be effective and too masculine to be likable.
Maternal Wall – Researchers found that mothers were 79% less likely to be hired and were held to higher performance and punctuality standards. Mothers considered competent and committed were seen as bad mothers.
Tug-of-war – Gender bias against women fuels conflict among women. Research shows that women who encounter discrimination early in their careers tend to distance themselves from other women, refuse to help them, or even align themselves with men at other women’s expense.
“Housework” vs. “Glamour Work” In many companies, women are expected to do disproportionate amounts of “housework,” which includes both domestic tasks, like planning parties, and undervalued tasks. “Glamour work” consists of bringing in new business, managing key client relationships, and strategic planning.
So where was I heading? To a Leading Partners Retreat in Portland comprised of 75 accounting firms from around the country.
The emphasis of the conference was on attracting and developing your people. This year also included sessions directed at keeping women in public accounting. One speaker at the conference was Krista McMasters from McMasters Consulting.
Krista became CEO of Clifton Gunderson LLP in 2009 becoming the firm’s fourth CEO and the first female CEO in the history of the accounting profession among the top 50 firms, retiring from the firm in 2013. She ended her session discussing women leaders.
Although the number of women entering the profession from college is greater than the men, the number of equity partners in accounting firms is significantly lower: 86% Male to 14% Female. Why? Similar to Sheryl Sandberg’s Lean In, Krista believes women opt out early and that moving more women into leadership takes commitment and investment. Understand that women are “wired” differently. They may be less confident, may be more emotional, are more collaborative in nature, and have different communication styles. Krista pointed out that women should be mentoring other women.
I had a brief discussion with Krista at the end of her session. Similar to myself, she had been mentored by a man that saw the potential in her and pushed her outside of her comfort zone causing her to take on stretch assignments t providing tremendous growth for her and increased confidence.
So my suggestion – men should be mentoring women as well. Deal with the differences. We want to keep women rising in the profession.
So women – Be there to mentor other women. But men….we what and need you as well to be there to mentor us. We want “Glamour Work!” We may need a little push…but remember we are all in this together.
On August 21, 2014, the National Oceanic and Atmospheric Administration (NOAA) released its U.S. Seasonal Drought Outlook for the period of August 21 through November 30, 2014. Unfortunately, for residents in California, Nevada, and southern Oregon, the predictions are not encouraging. According to the NOAA, the drought in these areas is expected to “persist or intensify” throughout this time period. For residents living in these areas, it is very troubling to imagine that it could become even worse. 
Here in Northern Nevada, it only takes one quick glance at Lake Tahoe or the Truckee River to see that we are suffering from a severe lack of snowfall during the past few winters. Lake Tahoe’s water level has noticeably decreased this year, causing difficulties for boat owners, while the Truckee River is so low in certain parts that the water no longer covers the entire riverbed. So what can we expect this winter? Is there hope?
According to the Farmer’s Almanac, this year’s winter will bring below-normal temperatures for seventy-five percent of the country. The coldest temperatures will occur during late January/early February. For us on the west coast, however, temperatures will be closer to average. No region in the country will experience an extended period of above-normal temperatures. In terms of precipitation, it is anticipated that the eastern third of the country will see many storms with much snow or rainfall. The Midwest and the Great Lakes are expected to receive below-average snowfall. The Central and Southern Plains will face above-average precipitation, while the Pacific Northwest and Northern Plains will experience average precipitation. Finally, the Southwest States are projected to see below-normal snow or rainfall.
So what does this mean for residents located in drought-stricken areas? Based on these predictions, this upcoming winter is not looking too promising.
It does not appear that California, Nevada, and southern Oregon will receive the precipitation they so desperately need this winter. There still is some hope, however. The NOAA has issued an official El Niño watch. An El Niño is characterized by a warming of the central Pacific due to a combination of wind and waves. It happens at irregular intervals of two to seven years and can last from nine months to two years. It is generally most severe between December and April and results in changing weather patterns around the world. For areas currently suffering from severe drought, an El Niño could be beneficial by bringing more precipitation to these areas this winter. It could also result in a milder wilder winter for the northern part of the country. Although the NOAA has released a watch, is not guaranteed that an El Niño will occur this winter. We will just have to wait and see what happens this winter and hope for the best!
September 15, 2014:
October 15, 2014:
The Internal Revenue Service’s Criminal Investigation Division is cutting the number of investigators to the lowest level in forty years. This division investigates all sorts of financial crimes involving such activities as tax fraud, money laundering, identity theft, narcotics and counter-terrorism.
Recent investigations involved probes into tax evasion by Credit Swisse Group and sanctions violations by BNP Paribus resulting in settlements of $ 2.5 billion and $ 9 billion, respectively.
The number of special agents employed by the agency at its peak in 1995 totaled 3,358. As a result of budget pressures, the number is expected to drop to 2,130 by 2016. IRS Commissioner John Koskinen says the lack of resources means fewer investigations are being initiated.
Last year the IRS budget was cut by about $ 600 million as a result of sequester when Congress failed to reach agreement on the budget. Most other federal agencies saw their budgets returned to pre-sequester levels, but not the IRS.
Koskinen estimates the IRS, through criminal investigations, as well as audits, collection and other efforts, brings about $ 50 billion to $ 60 billion a year into the federal coffers.
This translates to 5 to 6 times the IRS annual budget of about $ 11 billion. Last month the U.S. House of Representatives voted to cut the IRS enforcement budget for 2015 by over $ 1 billion. Koskinen estimates this latest cut will reduce revenues by $ 3 billion to $ 5 billion.
It seems to me we are stepping over dollars to pick up pennies
California has always been notorious for their high cost of living combined with high income taxes. These tax rates are as high as 13.3% for high earners with income over $1,000,000. And to make matters worse, in 2012 California took the precedence of retroactively raising rates at the beginning of 2012 for a law that passed on November 6, 2012. 
Running numbers, an average household earning $100,000 in California, would pay close to $7,000 in taxes to the State.
The good news is that it is easy to just hop over the border, move to Nevada, and save the $7,000. This is especially true for a retiree with no job holding them down. Your $100,000 income would also go a lot further in Nevada than California!
So how would you go about moving to Nevada to not have to pay California’s onerous tax? This is easy if you own no property in California and retire in Nevada. You just sell your house and move your life to the Silver State. However, you might want to keep your home in California, which makes things more complicated as the Golden State does not want to forego any of their tax revenue (but remember, any income sourced in California will always be subject to their tax).
So what to do? First, spend less than nine months in California every year as California presumes you’re a resident of their State if you spend more than nine months there. Second, if you own a home outside of California and your presence in California is less than 6 months you are not considered a resident if you can prove that your activity is just as a guest. Further, there are additional factors that California considers in the instance that you are audited. These primary factors include:
Secondary factors, which are easy to conform to, include having a CPA and attorney in Nevada, registering your vehicles in Nevada, getting a Nevada driver’s license, and where you spend your money as California could request to look at your credit card statements.
Moving to Nevada can be a huge leap, but one that keeps more money in the bank to protect your wealth or have a more meaningful life as a retiree.
According to a recent survey performed by Bankrate.com, a third of people (roughly 36%) in the U.S. have nothing saved for retirement. Of the 1,003 adults surveyed, 69% of those with no retirement savings were between the ages of 18 to 29. 
That’s not entirely shocking given the fact that not only are most adults at that age not even concerned with retirement, but generally things like moving out on your own, higher education expenses, etc. take precedence. However, 33% of those surveyed between the ages of 30 to 49 had no retirement savings and 14% of those age 65 and older had no retirement savings. Most of those surveyed acknowledged that they were not on track in saving for retirement. One can only assume that these individuals are relying in part or in whole on social security.
Given the fact that most reports have predicted the Social Security Trust Fund will run out of money in 2033 and benefits from that point forward would need to be reduced, these statistics are troubling. 
Those surveyed between the ages of 30 to 49 won’t have even reached retirement age before the Fund runs dry, and the life expectancy of the average American continues to increase.
The Social Security Administration actually has some fairly decent calculators, one of which is the life expectancy calculator. Also, almost all banks and investment companies have free calculators online that can give someone at least a rough of idea of what you would need saved along with Social Security benefits in order to retire. Remember, it’s never too late to start saving!
IOLTA (Interest on Lawyers Trust Accounts) was created in 1980, when the Congress modified federal banking laws allowing banks to pay interest on checking accounts. The first IOLTA account was created in Florida in 1981.
IOLTA is source of funding to provide access to justice for individuals and to improve our justice system. 
Every state, along with the District of Columbia and the Virgin Islands, operates an IOLTA program. These funds, together with private grants and donations enable nonprofit legal aid providers to help low-income people with various civil legal matters and provide education about our justice system. The United States IOLTA programs generated more than $124 million dollars nationwide in2009.
Every attorney and law firm in Nevada are required to create and maintain an interest-bearing trust account for the deposit of clients’ funds when the funds cannot otherwise earn enough income for the client to be more than the cost of securing that income. The trust accounts must be an interest on Lawyers Trust Account (IOLTA) at participating financial institutions. 
The client, and not the IOLTA program, will receive the interest if the funds are large enough or will be held for a long period of time. These funds will not be in IOLTA accounts. Each attorney or firm has the discretion to decide whether the client’s funds are nominal or are to be held for a short period of time.
Examples of types of funds to be deposited into IOLTA accounts include:
There may be other types of funds that should be deposited into IOLTA accounts.
The interest income from IOLTA accounts payable to a tax-exempt organization is not taxable to the client or the attorney nor is it deductible.
It’s time for your kids to go back to school, and with that comes a lot of added expenses. With all of the back to school sales it is easy to get overwhelmed, and end up spending much more than planned. 
Here are a few tips to stay in budget when going back to school shopping this year:
Many people forget to factor in sales tax when creating a budget. 
These amounts can definitely add up so it is important to include this in your budget. Some states even offer a few days in the late summer where school related items can be purchased tax-free. If you live in one of these states, try to take advantage of this because it will make a difference.
By staying on budget it will make back to school shopping more enjoyable for both you and your children.
Okay…I confess…I am a little goofy when it comes to cars. However, in my defense, the goofiness is a rather common ailment for many people these days.
Hot August Nights 2014 began earlier this week in northern Nevada and will conclude on August 3, 2014. 
This will wrap up the 28th year of this event which debuted August 1, 1986. This event has grown into one of the largest, most anticipated annual events in our area. It currently features 10 days of events across the area celebrating the 50′ and 60’s – “a time of innocence, prosperity, cars and the birth of Rock and Roll.” Of course a huge part of this celebration centers around the automobile.
Oh…the automobiles! For me, HAN usually begins in mid-June when I start to see the local enthusiasts breaking out their “classics” and getting them ready for the big event. In late July/early August, the local enthusiasts are then joined by thousands of other enthusiasts during the event week and the party begins. Although I was a bit young to experience this innocent, prosperous time, I nonetheless have a definite appreciation for the four-wheeled artwork that rolled off of the assembly lines in the day. You do not have to be an owner of one of these fine pieces of machinery to participate…simply attend a Show-n-Shine, take in a “Controlled Cruise” through one of our downtown areas or just take an evening stroll down your favorite street. I promise you will be dazzled by the scenery. To access a full schedule of the Hot August Nights events, visit their official website at www.hotaugustnights.net.
If you haven’t attained your fill of beautiful buggies by the end of Hot August Nights, I have another suggestion to whet your appetite. Merely one week after the conclusion of HAN, car enthusiasts can move their operations down to the Monterey Peninsula to continue their oooo’s and ahhhh’s.
The nearly week-long schedule of events culminates with the Pebble Beach Concours d’Elegance which has been described as the World Series or Super Bowl of the automotive universe. 
Once each year, on the third Sunday in August, about 200 of the most prized collector cars and motorcycles in the world roll onto the fairway of what is often called the best finishing hole in golf — the famed eighteenth at Pebble Beach Golf Links. Tire meets turf and transformation occurs: the stage is set for one of the most competitive events in the automotive world. The occasion is the Pebble Beach Concours d’Elegance.
Like HAN, these events can be enjoyed by non-owners. There are several “free” opportunities to see some amazing pieces of rolling art or you can often become a part of yesteryear by merely hanging out at an intersection in Carmel-By-The-Sea. And once again, I promise you will be dazzled! To access a full schedule of events visit the official Monterey website
In April, I wrote a blog discussing the case of American Broadcasting Companies, Inc v. Aereo, Inc. The case had just been argued in front of the Supreme Court, so a decision was a couple of months off. On June 25, 2014, the Supreme Court finally issued its ruling with a 6-3 decision in favor of the broadcasting companies.
The majority’s decision found that Aereo did violate copyright law (I believe more specifically the 1976 Copyright Act). The Court also found that Aereo is basically a cable company, but didn’t necessarily call it a cable company in the ruling. What the six-justice majority didn’t buy into was Aereo’s arguments that they were simply renting equipment to customers instead of re-transmitting copyrighted material. Aereo’s use of thousands of tiny antennas each receiving an over-the-air signal did not sway the court.
The three-justice dissent was very skeptical of the majority’s decision (I guess this is often the case). Written by Justice Antonin Scalia, the opinion scoffed at the “looks-like-cable-TV” standard the majority used and accused the majority of putting together a “totality-of-the-circumstances test (which is not a test at all but merely assertion of an intent to perform test-free, ad hoc, case-by-case evaluation).” Justice Scalia basically argues that the Court is in a sense creating law: “It is not the role of this Court to identify and plug loopholes…[it is] the role of Congress to eliminate them if it wishes.”
The ruling effectively put Aereo out of business, or at least has them pausing their operations temporarily. However, Aereo does see some hope in the Supreme Court’s decision. Since Aereo is basically being called a cable company by the Court, maybe they should be treated the same as one and be allowed to keep operating if they pay the proper fees. 
Aereo did try its luck with the US Copyright Office and didn’t receive the warm response it was hoping for, but this argument is still to be heard in front of the court as the Supreme Court’s decision remanded the case back to a lower court. For now, all we can do is wait and see what will happen. My hope is Aereo is able to continue in some fashion so that we can see continued innovation and shake up in the traditional broadcast delivery methods.
