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Form 990 Extension Changes

March 3, 2017 – The IRS has changed their Form 990 extension due dates for non-profit organizations. The new extension policy became effective January 1, 2017, at the beginning of the year, and promises to ease the extension process for all parties involved.

Under the old policy, two extensions were granted in periods of three months. If a non-profit required more time past the initial three month extension, they would have to request a second extension, bringing their total extension time to six months. The new policy is a one-time extension for six months, eliminating the requirement to file for more than one extension. Instead, non-profits extending beyond their initial due date will have the full six months to meet their final due date.

Organizations should be aware of their year end. For convenience and clarity, we have provided a table below with relevant due dates and extension due dates.

Tax Year End Initial Due Date Extension Due Date
December 31 May 15 November 15
November 30 April 15 October 15
October 31 March 15 September 15
September 30 February 15 August 15
August 31 January 15 July 15
July 31 December 15 June 15
June 30 November 15 May 15
May 31 October 15 April 15
April 30 September 15 March 15
March 31 August 15 February 15
February 28 July 15 January 15
January 31 June 15 December 15


W2 Phishing Scam

February 20, 2017 – Earlier this month, the Internal Revenue Service (IRS) published a warning about Form W-2 phishing scams that businesses and organizations could be facing in 2017. These scams were once limited to the corporate world, but are now targeting school districts, tribal organizations, and nonprofits.

Phishing refers to a general trend of cybercriminal activity in which emails are sent out from seemingly reputable sources, requiring some degree of private or personal information from the victim.

The Form W-2 phishing scam usually appears as though it is coming from an organization’s executive officer, and is sent to an organization’s payroll or HR department requesting the names of all the organization’s employees and their W-2 forms. Once cybercriminals have this data, they are able to commit any manner of identity-theft and tax-related crimes.

In addition, cybercriminals are pairing the Form W-2 scam with an older scam requesting that organizations wire transfer funds to the criminal. Organizations that fail to recognize the Form W-2 scam are more likely to be victimized twice.

For more information, please visit the IRS website here:

Smith Marion & Company would like everyone to be aware of these phishing scams, and would like to help keep our businesses and organizations safe from cybercriminal activity. 

SMCO Manager Kendra Dockham Volunteers for VITA

February 13, 2017 – Cal State, San Bernardino has been hosting the Inland Empire’s Volunteer Income Tax program (VITA) for over 30 years. Through the VITA program, community members with a qualifying income can have their taxes prepared for free by undergraduate CSUSB student volunteers, who gain valuable experience and insight into the taxing and accounting fields.

Smith Marion & Co. CPA Kendra Dockham remembers participating in the VITA program during her undergraduate at CSUSB, and has been volunteering and supervising the program since she graduated in 2011. She monitors and assists the students who quickly find themselves over their heads, as she once was. She recalls preparing a total of two tax returns on her first day of volunteering—a strenuous, eight-hour task at the time.

Kendra believes that the VITA program is a “win-win for both students, and community members.” While at first the students struggle to learn and apply their skill sets to the diverse and often challenging world of tax preparation, they eventually begin to swim, gaining invaluable insight and experience in their future careers. Community members, of course, get their tax returns prepared correctly, and for free. It is such a valuable service, that Kendra has had community members recognize her as they come back year after year.

David Marion, CPA, and partner of Smith Marion & Co. says, “The VITA program does a great service to the community. Smith Marion & Co. is proud to be able to partner with VITA and help both the students and the community members as a whole.”

The VITA program takes place at various locations on Fridays and Saturdays through April 15th, and you can visit CSUSB’s website for more information. Thank you again to Kendra, for volunteering her time and efforts.

Smith Marion & Co. Partner Peter Wesch Participates in the Polar Plunge

February 8, 2017 — Winter in the month of January brought snowfall to the San Bernardino National Forest, along with much needed relief from southern California’s drought. Residents in the Lake Arrowhead community experienced more snowfall than usual this year, which melts and feeds into the community’s namesake body of water.

Peter Wesch, EA, and partner with Smith Marion & Company, dove headlong into the freezing Lake Arrowhead last Saturday, February 4, for the ninth annual PolaRotary Bear Plunge. Pete, along with other prominent community members and leaders, volunteered to submerge himself in the ice-cold waters as a means of raising money for Rotary Club, and charities of their choice. The Lake Arrowhead Resort (generally unused in February, due to snow on the beach) hosts the jumpers, who have collectively raised over $175,000 for Rotary and other charities in the past eight years.
The Rotary Club determines that half of the first $1000 raised goes to the Rotary Foundation, while the other half of the first $1000 goes to the charity of the jumper’s choice. All money raised above the $1000 mark goes directly to the chosen organization.

Pete’s charity of choice was Last Chance Corral, an organization that offers asylum to abandoned or unwanted horses. The horses arrive in various conditions of health, sometimes from neglect or abuse. Some are entirely healthy, but come from owners who are unable or unwilling to continue to take care of the horse properly. The care and adoption program that Last Chance Corral offers is vital to preventing the suffering and slaughter of horses without a home.

Smith Marion & Company is proud to have partners who are actively involved in their communities, and in Pete’s case, who are willing to plunge into liquid ice for the causes that they believe in.

Smith Marion & Co. Partner Chad Porter is Teaching Accounting as an Adjunct Professor at Middle Tennessee State University

December 17, 2015 —Chad Porter, CPA, CFE, Partner with Smith Marion & Co. is teaching Governmental and Nonprofit Accounting at Middle Tennessee State University, Jennings A. Jones College of Business for the Spring 2016 Semester. The class is for accounting undergraduate and graduate students. “I am excited to venture into a new area of my career. Teaching has been a career goal of mine for a long time; I appreciate that my great team at Smith Marion & Co. frees me up to explore this passion” says, Chad Porter.

David Marion, CPA, Managing Partner at Smith Marion & Co says, “Chad has worked in the Governmental and Nonprofit industries for his entire career (over 20 years). He serves on the Peer Review Board in TN and has presented various GASB topics at the HUD national conference. Now he is serving as an adjunct professor at Middle Tennessee State University, Jennings A. Jones College of Business teaching a Governmental and Nonprofit Accounting course for accounting graduate students and undergraduate students this spring. You will want to attend his classes!”

Porter graduated in 1996 from Cal State San Bernardino with a Bachelors of Science in Business Administration and a concentration in Accounting. He has worked for Smith Marion & Co. since May of 1996. Porter is a Certified Fraud Examiner and he specializes in audits of HUD funded organizations and housing authorities, audits of tax credit properties, audits of California Department of Education child care organizations and Single Audit (A-133) of federally funded organizations.

Smith Marion & Co., LLP was founded in 1983 by William P. Smith and David B. Marion. Over the last several years, the company has experienced tremendous growth. Marion credits their staff of high-quality, committed professionals, who have invested in their training, development and growth, to the success of the company. The firm also takes pride in the growth of their client base, which has grown mainly from positive client referrals. The firm is licensed to operate in California, Tennessee, and Kentucky, with practice privileges in Idaho and Utah. The company services clients nationwide.

Smith Marion & Co. is Combining the Grand Terrace and Redlands Offices

November 30, 2015 — Smith Marion & Co recently announced the merge of its Grand Terrace and Redlands offices. David Marion, CPA, Managing Partner with Smith Marion & Co., LLP says, “The services we provide from the two individual offices complement each other quite a bit; by combining offices we will be able use our resources in a more concerted effort to be even more effective for our clients”.

This new location will meet the needs of the growing offices while combining them into one larger space. The new office is down the street from the Redlands office and will occupy the first floor of the KCAL Radio Station Building.

Firm Administrator Daniel Gregory, AAAPM says, “We are very happy that we were able to locate such a great space. This new location will give us enhanced efficiencies and capabilities as a Firm. This larger space will help us grow and change to keep pace with the needs of our clients. As always our focus is to continue to exceed client expectations.”

As of December 14th, 2015 please begin sending communications to:

Smith Marion & Company
1940 Orange Tree Lane, Suite 100
Redlands, CA 92374

The phone numbers and email addresses will remain the same.

Anna Nicdao, M.S.A., Graduates from California State University San Bernardino

Anna Nicdao, M.S.A.

Anna Nicdao, M.S.A.

San Bernardino, CA June 20, 2015 – Anna Nicdao, M.S.A., Associate with Smith Marion & Co., LLP graduated from California State University San Bernardino, with her Bachelor of Arts in Administration Accounting Concentration and Master of Science in Accountancy.

Peter Wesch, EA, Partner with Smith Marion & Co., LLP says, “Congratulations to Anna on her achievement in graduating with both degrees. She has been a great addition to the firm, and we look forward to her continued contributions to the Smith Marion family.”

Nicdao began her career with Smith Marion & Company in January of 2014 as an intern at the Redlands office. Currently, Anna is preparing for the CPA exam and plans to specialize in individual and corporate tax returns as well as compilations.

The IRS is warning people of many phishing scams

July 13, 2015 – The IRS is warning people of many phishing scams.  One of the most common one we have been hearing about lately has been in the form of aggressive and/or threatening phone calls.  We have been hearing about these phone calls increasingly in recent months.  The IRS also reports that they have seen a surge of these phone scams.  The caller will threaten police arrest, deportation, license revocation and other things and demanding immediate payment for supposed tax liability due requesting credit card information over the phone.

Caren Cranston, CPA, EA, Manager at Smith Marion & Co. says, “The IRS does not contact you over the phone unless you have an ongoing case with an agent. If you receive one of these phone calls do not give out any information.  Simply request the caller send you a notice in the mail then hang up.” 

The IRS is also warning about scams relating to email scams and websites looking to steal personal information.  Per IRS Commissioner John Koskinen: “The IRS won’t send you an email about a bill or refund out of the blue. Do not click on one claiming to be from the IRS that takes you by surprise”.  Additionally the commissioner “urge[s] taxpayers to be wary of clicking on strange emails and websites. They may be scams to steal your personal information.”

Mandatory California Law takes Effect July 1st, 2015

June 23, 2015 — On July 1, employees will begin to accrue paid sick leave under the Healthy Workplaces, Healthy Families Act, also known as the California Paid Sick Leave Law. The new law mandates that employees who work 30 or more days within a year in California be given 1 hour paid sick leave for every 30 hours worked up to 24 hours of paid sick leave annually. Alternately, employees can be provided a lump sum 24 hours paid sick leave annually. The law applies to all sizes of employers and includes part-time and temporary workers.

Employers who already have paid sick leave or PTO policies in place should determine if their current policies meet the requirements of the law. Employers who do not currently offer paid sick leave should determine how they plan to implement the new requirements, including whether they plan to incorporate an accrual or lump sum method for providing the required leave. All employers should ensure that they have the appropriate notice and recordkeeping procedures in place.

What does this mean for you and how can you better understand the law? Niki Matthews, Manager at Smith Marion & Co. has the answers to your questions! Visit to view her webinar as she answers the questions you have about the California Paid Sick Leave Law and how it will affect you.Niki Matthews has been with Smith Marion & Co. since they merged with Streit and Peters in 2012. Previously, she had been with Streit and Peters since 1997. Matthews specializes in bookkeeping services, payroll processing, tax return preparation and QuickBooks support. She provides these services to businesses and non-profits of varying sizes.

Smith Marion & Co., LLP was founded in 1983 by William P. Smith and David B. Marion. Over the last several years, the company has experienced tremendous growth. In November 2012, the firm merged with Streit and Peters, CPAs, a California firm. Marion credits their staff of highquality, committed professionals, who have invested in their training, development and growth, to the success of the company. The firm also takes pride in the growth of their client base, which has grown mainly from positive client referrals. The firm is licensed to operate in California, Tennessee, and Kentucky, with practice privileges in Idaho and Utah. The company services clients nationwide.

Smith Marion & Co. Client Workshop

Wednesday May 20, 2015 from 9:00 AM to 3:00 PM PDT

San Bernardino Hilton Garden Inn
1755 S. Waterman Avenue
San Bernardino, CA 92408

Smith Marion & Co,. LLP

Topics Include:

OMB Uniform Guidance
HR Hot Topics & ED Perspective
Non-Profit Form 990 News

Take this opportunity to come and hear first hand from our panel of experts.
Get your questions answered by the people who know!

“Understanding what is expected of your organization and who to ask for help”

We have (2) exciting sessions planned for you – (pick 1, 2 or both!)
Don’t Miss Out – Seats are filling up fast!

Session One: (OMB Uniform, HR Hot Topics & ED Perspective): 9:00 a.m. to 11:30 a.m.
Session Two: (Non-Profit Form 990 News): 1:00 p.m. to 3:00 p.m.

$25 for the first person and $5 for each additional person
(Both sessions)
$20 a person for a single session