IN THIS ISSUE Berntson Porter & Company’s mission is to assist its clients in identifying, clarifying and achieving their goals. We accomplish this by caring about our clients’ families and companies as if they were our own.

Principal’s Corner ........1

Client Spotlight ............2

Client News ...................2

Cash Balance Retirement Plans as a Succession Planning Tool for Small Businesses .....3

Interest Charge Domestic International Sales Corporation (“IC-DISC”)..................4

Why do they Care About my Vendors when Being Audited for State Payroll Agencies? ......................5

Ransomware – Holding Your Data Hostage .......6

BP News.........................6

Wine Labels – Uncorking the Latest Trends ..........7

DC and State Highlights ......................7

Summer 2016

PRINCIPAL’S CORNERDoing Your Best: The Power of CommunityWhen I was younger I used to call on a CEO of a very successful company, Bill Davis. Bill always had a short sentence of wisdom for me. His favorite line for me was “Bob, every day we do our best and accordingly get better.” Bill’s life embodied those words.

Our Berntson Porter team has been extremely blessed to be associated with great clients like Bill Davis. Our clients give us the ability to learn from and partner with them as they experience growth both professionally and personally. Bill had many adventures during his life with his family, friends and business associates. He would be the first to tell me that it was the power of his community that helped guide his success and enhance his life. I remember Bill with fondness and gratitude. Today his son, Jeff Davis, and daughter, Cherron, are both extremely successful and run their own company. I know Jeff and Cherron benefited from their parents’ guidance and specifically from their passion around building relationships. We are proud to have Jeff and Cherron’s company featured as our client spotlight in this newsletter (see page 2).

Like Jeff and Cherron I was fortunate to have parents who provided me a great example of community involvement. Let’s face it, it is difficult at times to know the right direction and we are all better through our associations and our communities. It is in this spirit that I acknowledge a community that has been instrumental in my journey as the President of Berntson Porter: Vistage International. Vistage is a community of business leaders that meets monthly to learn continually how to build better businesses and become even stronger leaders. I have been involved with Vistage for 11 years. Spending time with my peers and being led by an expert facilitator, Tom Zahniser, has enhanced my involvement in our respective communities. If you yourself are in a leadership role and not currently involved in Vistage or a similar group, I highly recommend exploring it.

Another community our firm is involved with is PrimeGlobal. We have been a proud member for 22 years and have had Berntson Porter members on the board for 12 of those years. Our participation has provided us national and international reach to help our clients and broaden our scope of friendships and services.

Our mission is to assist our clients in identifying, clarifying and achieving their goals. We accomplish this by caring about our client’s families and companies as if they were our own. We also contribute to our mission by cultivating relationships throughout different communities like the ones shared above.

This is my 35th year in the CPA business and 31st year at Berntson Porter. It is my honor to serve. I am so grateful for all of the different communities we are involved with and thank you all for inspiring us to do our best every day!

Robert Berntson, CPA, President. Contact Bob at 425.289.7600 or rberntson@bpcpa.com.

BP Achievements this Quarter

Ranked #5 of Washington’s Top Corporate Philanthropists (Small business category) by the Puget Sound Business Journal (PSBJ)

Selected one of Accounting Today’s 2016 Best Firms to Work

for in the Nation

One of INSIDE Public Accounting (IPA)’s Top 200 firms in the nation overall

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Employment Center (EC) zoning allows outside storage for a variety of yard intensive users and manufacturing uses.

The Pacific Building: This high identity distribution/manufacturing facility is for sale or lease and can accommodate a building size of over 220,000 SF. Complete with a 32’ clear height, the site is zoned light industrial with outstanding visibility from SR-167. Anticipated completion is second quarter, 2017.

Bernston Porter has been an integral advisor and team member since DPI’s inception providing guidance on a number of tax related issues and strategies as well as fundamental review and general business accounting services. Most recently BP advised on the formation of a legal entity in a joint venture for a real estate development. Their ability to recognize the risks thereby averted severe federal tax consequences. More importantly, they were able to advise on a solution to complete the transaction and move forward on the project.

As a growing and ever evolving company, DPI is continually managing our growth by reviewing and amending the operations of our staff. We engaged BP to perform an audit of DPI’s internal controls and processes. The information gathered and ensuing discussion has proven invaluable.

With strategic alliances among many of the region’s finest service providers, DPI’s management team provides successful leasing, property, facility, and accounting management services to ensure higher than average performance for a variety of property types. DPI has raised the bar in the creation and implementation of cutting edge real estate construction, design and management disciplines with an emphasis on accommodating the most demanding requirements.

Davis Property & Investment (DPI), founded by Bill and Jeff Davis in 1998, has developed over 20 projects in the Seattle and Portland markets consisting of various asset classes; from industrial and distribution facilities to flex and office projects. DPI has been a NAIOP Commercial Real Estate Developer’s Association 2012 office development of the year winner, five time finalist for development of the year projects, deal of the year, and two-time developer of the year. DPI consistently delivers exceptional projects from design, permitting, construction, and management thereafter. With strategic alliances among many of the regions finest service providers, DPI’s development and management team ensures exceptional project performance.

Currently, DPI owns and/or manages over 1.2 million square feet (SF) of industrial/office products. In 2015, DPI developed seven new buildings including:

Portside Business Center: a six building master planned industrial park in Fife, WA totaling 485,000 SF. The project is zoned for warehouse, office, lab, retail or mixed-use buildings.

Center Plaza 1: Part of a six building project consisting of approximately 180,000 SF, Building 1 is located at the premier corner of DuPont-Steilacoom Road and Center Drive. It totals 36,237 SF with elegant glass store-front entrances and a typical suite size of 2,400 SF. The site is zoned for office, warehousing, manufacturing and research. Since its completion in February 2016, the building is already 60% occupied.

The following properties are currently available:

Frederickson 40: This 40 acre site is available for build to suit lease, sale or joint venture and can accommodate up to an 817,000 SF building. It is perfect for bulk distribution and

CLIENT SPOTLIGHT

CLIENT NEWSThe following firms were recognized by the Puget Sound Business Journal (PSBJ) as top corporate philanthropy champions in 2015 – MG2, J.R. Abbott and more. Way to go!

DCI Engineers has been recognized by the PSBJ as one of the Top 25 Engineering firms in the area.

Congrats to GLY, Foushee, Absher Construction, Forma Construction and J.R. Abbott for their recognition as top contractors in the Puget Sound by the PSBJ.

Bill Hill, CEO of Western Integrated Technologies, was named Manufacturing Executive of the Year for large firms at this year’s Washington Manufacturing Awards through Seattle Business magazine. Congratulations!

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CASH BALANCE RETIREMENT PLANS AS A SUCCESSION PLANNING TOOL FOR SMALL BUSINESSESBerntson Porter is pleased to feature Martin Smith of AGP Wealth Advisors as a contributing writer in this issue of BP Report.

Never heard of a Cash Balance Retirement Plan? You are definitely not alone. Even though they have dramatically increased in popularity in recent years, (far surpassing the growth rate of 401(k) plans), they are still relatively unknown. Their appeal derives from the significant tax-deductible contributions they allow, coupled with the ability to focus contributions primarily on business owners or other key executives. Because of these special characteristics, they present a real opportunity to be utilized as a succession planning tool for closely held businesses.

Cash Balance plans can provide an exit strategy that leaves all parties in a win-win situation. In the context of a partnership buy-out, a Cash Balance plan can be incorporated as an overlay to an existing 401(k) plan and create the opportunity for considerable retirement plan contributions for owners wishing to depart in a few years. We are talking about potential contribution numbers – up to nearly $250,000 per year. This is in addition to contributions that may be going into an existing 401(k) or Profit Sharing Plan.

The beauty of incorporating a Cash Balance plan into the mix is that contributions are normally a tax-deductible expense for the firm. For the selling partner or shareholder, the deposits are tax-deferred until they start taking distributions from the plan later in retirement. In the meantime, the money can be invested and compound on a tax-deferred basis over the years. As is true for all qualified retirement plans, assets held in Cash Balance plans are protected from creditors, making this a very safe and sensible way to accumulate assets.

Cash Balance plans offer great flexibility in their design. The plan document will typically define the contribution for the owner or other key executives as a percentage of pay or flat dollar amount to be contributed each year.

Cash Balance plans are subject to many of the same non-discrimination rules as 401(k) plans. This means that a certain minimum number of rank-and-file employees need to be included when designing the plan. However, it is not necessary to include more than 40% of all the other employees in the plan, and the

contribution amounts they are required to receive is typically very small compared to the large contribution to the key executive. In many instances, the rank-and-file employees covered will receive a contribution in the range of $550 – $950 annually (the exact amount depends upon the particular facts and circumstances and is actuarially determined). Further, these contributions can be subjected to a vesting schedule. This means that the contribution would be forfeited if the employee does not continue to work for a specified number of additional years.

Cash Balance plans can work especially well when an employer already sponsors a 401(k) plan. The Cash Balance Plan can be “bolted” onto the existing 401(k) or Profit Sharing plan. While it is technically a separate plan, it can meet non-discrimination requirements by considering the contributions being made to employees under both the 401(k) and Cash Balance plans. In many scenarios, over 90% of the total contributions to the two plans go directly to owners or key executives.

The Cash Balance plan, in this small company environment, offers a tremendous advantage for older business owners or professionals. This vehicle can be incorporated as an overlay to existing 401(k) plans to supercharge the contribution levels and accomplish more for senior owner/employees who find themselves behind the retirement savings eight-ball. Also, oftentimes employers view contributions to employees as a good bargain. Their thought process goes, “I’m just giving to my associates a portion of what I otherwise would have paid in taxes.”

When this tool is used to fund the business interest buyout of a senior partner, younger partners are treating the substantial retirement plan contribution as installment payments for his or her ownership interest. The actual mechanics of how the buyout relates to the retirement plan contributions may be direct or indirect. However, it is not part of the retirement plan document. It is typically outlined in other documents and/or agreements. Prior to implementation, this strategy should be discussed and evaluated with the involvement of appropriate legal and tax counsel, a qualified retirement plan administrator,

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Ameriprise Financial and its representatives do not provide tax or legal advice. Consult your tax advisor or attorney regarding specific issues. Berntson Porter & Company PLLC is not endorsed by nor affiliated with Ameriprise Financial. Berntson Porter & Company PLLC is not under the supervision of Ameriprise Financial. Berntson Porter & Company PLLC is not a broker-dealer or investment advisory firm. This information is being provided only as a general source of information and is not intended to be used as a primary basis for investment decisions, nor should it be construed as advice designed to meet the particular needs of an individual investor. Please seek the advice of your advisor regarding your particular financial concerns. Figures used are for illustrative purposes only and do not represent actual clients. Actual client experiences will vary. Ameriprise Financial Services, Inc., Member FINRA and SIPC.

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INTEREST CHARGE DOMESTIC INTERNATIONAL SALES CORPORATION (“IC-DISC”)

In an IC-DISC structure, the domestic company pays commissions to the IC-DISC for services performed as a commission agent. These commissions are deductible as an ordinary business expense by the exporter. The IC-DISC then distributes a dividend to the individual owners. The IRS permits payment of the commission up to 60 days following year-end. It is important to note that if the exporting company pays the commission, and simultaneously, the IC-DISC distributes the dividend, the funds should still be transferred through the IC-DISC entity’s bank. This is to provide a paper trail and affirm that the IC-DISC is a separate entity with its own recordkeeping and bank account.

The two most frequently used methods for calculating the allowable commission are:

• Four percent of qualified export receipts plus ten percent of the export promotion expenses, and

• 50 percent of the foreign taxable income related to the export sales plus ten percent of the export promotion expense.

Both of these methods are limited to the total foreign taxable income of the transaction. There are other permissible methods, but they require more detailed calculations.

An IC-DISC is a domestic entity and is not subject to federal or state income taxes. The entity is required to file an annual informational tax return 8 ½ months after the IC-DISC’s year-end.

The IC-DISC structure results in the exporter receiving a deduction at the maximum ordinary income tax rate of 39.6% on the commission payment made to the IC-DISC and the owners pay the maximum 20% qualified dividend tax rate on the dividend income distributed or deemed

In an effort to support and encourage U.S. based companies to export sales of their domestically produced goods and services, the United States created an Interest Charge Domestic International Sales Corporation (“IC-DISC”). This export incentive can be utilized by:

• Engineering and architectural firms performing work in the U.S. for projects that will be constructed abroad

• Domestic manufacturers who export• Domestic manufacturers who sell domestically, but the

goods are exported by the 3rd party buyer within 12 months• International distributors of domestically produced goods• Certain software developers

Although created in 1971, IC-DISCs were not heavily utilized until after 2006 when qualified dividend income was given a preferential tax rate for individuals. Therefore, those holding an interest in partnerships and S-corporations that perform qualifying activities could benefit from considerable tax savings. Typically, for closely held companies, the IC-DISC entity is wholly owned by the exporting company or the same individuals that own the exporter.

P General bookkeeping services P CFO services – One-time, monthly or quarterly servicesP Year-end reporting – W-2s, W-3s, 1099s, 1096s, payroll reportsP Trust accounting – State compliance, clean-upP QuickBooks Services – Setup, cleanup & maintenance

and exporting data to Excel for tax preparation

Manage Your Business Instead of Your BookkeepingBerntson Porter offers a variety of bookkeeping services through our paraprofessionals including:

For more information contact Karen Nierescher, Senior Manager and Director of Accounting Support & Bookkeeping Services (ASBS)

425.289.7673 or knierescher@bpcpa.com

as well as a financial advisor. All of these professionals should be well versed in the specifics of Cash Balance retirement plans.

Judicious use of the Cash Balance plan as part of a buy-out strategy should begin early enough to provide proper planning, and allow enough time to accumulate sufficient assets— typically three to five years prior to the departure of a key executive. Implemented over a number of years, it relieves the pressure of having to come to terms with a single large

payout. It also allows the transitioning owner to have a greater sense of security about retiring as significant assets accumulate on their behalf in their last few working years while they still remain involved in the management of the business.

Martin H. Smith MAAA, Director of Retirement Plans, Business Financial Advisor. AGP Wealth Advisors, a private wealth advisory practice of Ameriprise Financial Services, Inc. Martin can be reached at 425.228.1000×140 or Martin.H.Smith@ampf.com.

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To form an IC-DISC, the entity must make an election with the IRS and must have only one class of stock with a minimum par value of $2,500. This initial funding creates an asset (cash) and equity (stock) of equal amounts on the balance sheet.

Utilizing an IC-DISC structure provides extensive tax savings with low costs, but savings cannot be claimed on income earned before the formation of the IC-DISC. If they qualify, companies should take prompt action to ensure the entity is set-up as soon as possible to maximize the savings.

Kayla Thorsness, CPA, Senior Tax Staff. Kayla can be reached at 425.289.7648 or kthorsness@bpcpa.com.

distributed by the IC-DISC. This results in a permanent tax rate savings of 19.6%.

Individuals should keep in mind the Net Investment Income Tax (NIIT) of 3.8% that went into effect on January 1, 2013. For taxpayers who file a joint tax return with modified AGI greater than $250,000, they will be subject to the 3.8% surtax on their investment income. Investment income generally includes dividend, interest, and passive income. Even with the 3.8% surtax, the IC-DISC structure is still a great tax savings vehicle. The permanent tax rate savings under the IC-DISC structure is about 15.8% after the surtax.

Washington Policy Center is celebrating its20th Anniversary at this year’s event!

Friday, October 7th 6:00 pm Reception | 7:00 pm Dinner

at the Hyatt Regency - Bellevue

WPC’s Annual Dinner is the largest policy event in the Northwest and attracts more than 2,000 elected officials, business leaders, community members and policymakers from throughout our state to gatherings in Bellevue and Spokane. The event also includes a separate Young Professionals Dinner – details online.

Register online at: washingtonpolicy.org/annualdinner

For questions, contact Katie at kbulger@washingtonpolicy.orgwww.washingtonpolicy.org | (206) 937-9691

Featuring keynote speakers:

Daniel Hannan, a Member of the European Parliament for South East England, an author and a journalist.

This popular gala dinner will sell out, so get your tables and tickets today. We hope to see you at this much anticipated evening!

Arthur Brooks, a bestselling author and the president of the American Enterprise Institute.

Taking the time to review the check registers before sending those in the audit request packet is a great first step. It helps to be aware of possible questions or missing information. Berntson Porter’s Accounting Support and Bookkeeping Services (ASBS) team is available to discuss any concerns you

WHY DO THEY CARE ABOUT MY VENDORS WHEN BEING AUDITED FOR STATE PAYROLL AGENCIES?

You find yourself with an audit notice from Washington State Employment Security or the Department of Labor and Industries. The first thought is “Why me?” Then you think: “We do everything just right, nothing to worry about, I’ve got this.”

First step, understand what is on the requested items list:• Payroll journals• Copies of timesheets, timecards or other records that show

hours worked by employee• Copies of most recent filed federal tax return for your

business• Detailed check register, cash disbursement journal and

bank statements

Why a check register?

They are asking for the check register for a couple of reasons. The first is that they are looking for checks issued to employees outside of payroll. Reimbursements are the most likely reason, so be sure that you have a clear memo comment and support documents for the checks that are reimbursements for supplies, fuel, travel or education.

Then there are the checks to vendors performing services that could be considered employees. There could be sub-contractor labor, but can also be landscapers, cleaning service providers or a delivery driver. In most cases your support for the payment will be an invoice from their company. You will want to obtain a W-9 form prior to issuing payment to the vendor. This will provide you with the company name, which should match the invoice, the federal tax ID number, their entity structure and from this you will determine if they should receive a 1099. Done, right? Wrong. You should also request a copy of their Washington State Business license. If they are not registered with the State, do not have a website, or provide services to other customers, they might be considered by these agencies as employees of your company.

The last items in the check register might be checks issued to related party companies. If they are auditing one entity and determine that there are multiple entities with the same owner, those entities might be added to the audit.

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http://washingtonpolicy.org/annualdinner

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Did you know that ransomware is one of the top threats to cybersecurity in the United States? These cyberattacks involve encrypting or locking a device until the user pays a ransom to get their computer or files back. As a business owner or a member of management, it is important to understand how real these threats are to the data needed to make decisions

and run your company. Ransomware attacks increased 35% in 2015 alone.

There are two main types of ransomware, locker and crypto. Locker ransomware prevents the user from accessing the computer until the hacker is paid. When a computer is locked, the hacker will frequently display a message that appears to be from a law enforcement agency, such as the FBI, stating the user has violated a law and they have to pay a fine to get the computer back or they will be arrested. This type of ransomware is frequently less effective than crypto because it typically affects only the interface of the computer, leaving the underlying system untouched. This makes it easier to remove without paying the hacker.

Crypto ransomware is designed to encrypt valuable files and require payment in order to get the decryption key. After the virus infects the computer, it will usually fly under the radar until it has locked all files that might be valuable, such as contract files, HR files or any data it can find. This type of ransomware has become more popular as the use of technology increases and more data, including personal data, is stored on computers and servers. Hackers usually succeed in this type

of attack because users and businesses are willing to pay the ransom rather than lose their data forever, especially if they don’t have a backup.

Ransomware can infect computers through popup ads, email attachments, or even cell phone apps. One of the more popular methods is through phishing scams. According to CSO Online, 93% of phishing attacks contain ransomware. Users will frequently receive an email addressed to them with a phony invoice that includes hidden malicious code. Once the attachment is opened it infects the computer, allowing it to encrypt files. Approximately 80% of phishing emails are not caught by spam filters leaving employees as the last line of defense to protect data.

It is important to keep in mind that cybercriminals are looking for the easiest way to get paid. While it may be impossible to have a perfect cybersecurity system, there are things that can be done to reduce the risk of a ransomware attack. The first step is to reduce vulnerabilities by training employees to be aware of scams and other threats. Encourage employees to ask the IT group if an email looks suspicious or they don’t know the sender. If a system becomes infected, backups are the most effective recovery option. Routine scheduled backups will reduce downtime and give businesses the option to deny a hacker’s demands and instead restore the data using a backup without significant loss of work. The first step is to be aware of the threat; the second is to develop a plan of defense. Proper training and data backups can work hand in hand to protect your business.

Briana Wickens, Advanced Staff, Assurance Services. Briana can be reached at 425.289.7660 or bwickens@bpcpa.com.

RANSOMWARE – HOLDING YOUR DATA HOSTAGE

BP NEWSWe’re getting social! In addition to LinkedIn and Twitter, you can now find Berntson Porter on Instagram and Facebook. Follow us on these platforms to get company news, industry updates and information about upcoming events!

BP was a proud sponsor of this year’s Vistage Executive Summit in Seattle. Bob Berntson and Greg Porter presented their most important lessons learned from over three decades of helping business owners migrate through the lifecycle of a company.

Berntson Porter’s Mission of Caring celebrated a busy spring/summer with participation in Beat the Bridge 2016 – a fundraiser benefitting the Juvenile Diabetes Research Foundation (JDRF) – as well as Food Lifeline’s Food Frenzy competition and our annual Community Service Day, where we volunteered for Jubilee Ranch at their Bellevue thrift store. Go team!

BP Principal Chris Laine presented as part of the 2016 PrimeGlobal State & Local Tax (SALT) Roundtable in Miami, FL.

might have as you begin reviewing your data. If you are just starting your business, we are available to help you understand how to manage your vendor arrangements and gather the information needed as your business grows.

If you have any questions regarding payroll tax filings or need assistance with payroll audit preparation, please contact Karen Nierescher, Senior Manager, Accounting Support & Bookkeeping Services (ASBS) at 425.454.7990.

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DC AND STATE HIGHLIGHTS Changes and updates to tax laws, regulations and rulings

WINE LABELS – UNCORKING THE LATEST TRENDS

Recently, several large beverage companies that include wine brands within their portfolio have announced that they will voluntarily list calorie and other nutritional information on their back labels.

Nutritional information is not currently required by the Alcohol and Tobacco Tax and Trade Bureau (TTB), the federal regulatory body that oversees the information presented on labels of wines sold in the United States. However, smaller wineries could feel the pressure to update their labels if increasingly more wineries make the change.

The cost to provide this information to customers can be substantial; the restaurant industry has spent thousands, if not millions, of dollars providing nutritional information to customers – with studies showing only a small percentage of people actually looking at the data.

While large beverage companies may have the sales and marketing budgets required to overhaul their labels, how might this affect the many small wineries in the United States without the same resources?

One of the companies voluntarily providing nutritional information to customers, Treasury Wine Estate, is including a link to a website on the back label that will provide the data to consumers. This is one approach to providing the nutritional information without significantly modifying the back label. Outside of label costs, however, there is still a lot of work that goes into measuring nutritional information to begin with –

since calorie and nutritional content can vary between wines and vintages.

Still, some research suggests consumers may want added data on their wine labels, including nutritional information and even wine pairing suggestions.

For now, deciding what to include on the back label of the wine bottle should be a decision made carefully and with customers in mind. Some suggested reading is included for you below.

If you have any questions regarding label requirements, feel free to contact us directly. We specialize in the wine industry as a subset of our Distribution and Manufacturing Practice Group and would be happy to discuss any questions you have – maybe over a glass of wine!

Cale Middleton, CPA, Manager, Assurance Services. Cale can be reached at 425.289.7645 or cmiddleton@bpcpa.com

Some information for this piece was provided by the following articles: For Wine Industry, Nutritional And Ingredient Labeling Would Uncork A Host of Issues, by Thomas Pellechia, Forbes. The back wine label: What information and features appeal to consumers?, by Kathy Kelley, Jeff Hyde and Johan Bruwer, Wine & Grapes U. Blog, Penn State University.

IRS Clarifies Partner Employment StatusRecently, the IRS issued proposed regulations clarifying the employment tax treatment of partners in a partnership that own a disregarded entity. For federal income tax purposes, a business entity that has a single owner and is not a corporation is disregarded as an entity separate from its owner. These regulations prohibit partners in disregarded entities from being treated as employees of that entity. Therefore, they remain subject to the self-employment tax treatment of partners.

Estate TaxesThe IRS imposed a reporting requirement on all transfers of assets to allow them to monitor whether the basis is properly valued. This means that heirs who inherit assets subject to basis reporting and later gift the property to relatives must report the new owner and the basis to IRS. The basis reporting must be filed thirty days after the estate tax return is filed.

Foreign Tax CreditDue to foreign policy objectives, the United States government denies foreign tax credits relating to certain countries that are

deemed to support terrorism or with which it does not maintain diplomatic relationships. While this denial has historically applied to Cuba, a recent revenue ruling lifted this ban for Cuba. The remaining countries with which a foreign tax credit is impermissible are Iran, North Korea, Sudan and Syria.

Affordable Care ActThe Affordable Care Act includes penalties for taxpayers who are not covered by health insurance or have not paid their individual shared responsibility payment. The penalty will increase significantly in 2016, with the hopes of incentivizing taxpayers to purchase insurance. The penalty is calculated using the greater of a percentage of your total household adjusted gross income or a flat rate. In 2016, the penalty will be the greater of 2.5% of total household income or the flat rate of $695 per adult and $347.50 per child under 18. This is up from the 2015 penalty, which was 2% of household income or a flat rate of $325 per adult and $162.50 per child.

mailto:cmiddleton@bpcpa.com

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This newsletter is distributed with the understanding that it is not providing legal, accounting, or other professional advice or opinions on specific acts or matters and, accordingly, no liability is assumed in connection with its use whatsoever.

ADDRESS SERVICE REQUESTED

11100 NE 8th St., Suite 400Bellevue, Washington 98004

The Westin Bellevue 600 Bellevue Way NE

Bellevue, WA 98004

RSVP to aellisor@bpcpa.com Amy Ellisor at 425.289.7630

1:00-5:30 p.m., reception following

SAVE THE DATEThursday, November 17th, 2016

Presented by: berntson Porter & ComPany, PllCUbs Private Wealth management

Nationally Acclaimed Speakers!

The Puget Sound region’s premier Wealth Planning event

WEALTHMANAGEMENTSUMMIT

THE