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Beta Alpha Psi
Meeting Minutes
September 23, 2009
Business Administration Building, Room 106
Call to Order: President, Katie Pacanins, called the meeting to order at 11:30.
Old Business: Mock Interviews
Career Fair Sept 16.
New Business: Joining Beta Alpha Psi,
GPA good for resume.
Student run organization, suggestions welcome
Program: Alabama Department of Revenue (ADR).
Speakers: Mr. Russel Jones, District Manager of Audit Agency for Alabama Department of Revenue
Mr. William Jamar, Revenue Examiner, Sales and Use Tax Division, Alabama Department of Revenue
Mr. Jamar is a recruiter also but indicated that there isn’t much recruiting lately.
Information about jobs with ADR and other state agencies was provided. Job flyers were placed on the desk for interested students to pick up at the close of the meeting.
Anybody want to be auditors, just want job
Mr. Jamar began with background information about his position and activities. On day to day basis he audits businesses for sales and use taxes to make sure they are in compliance with Alabama laws. He says there are many great stories as to why businesses think they don’t owe ADR.
He questioned whether any of us want to be auditors or just want a job. He mentioned work with attorneys and public accounting. Private practice accountants have clients who need sales tax and income tax assistance. Many clients encompass many different types of problems. The drawback is the hours of work required. That’s a major reason he gave it up to work for ADR where the work is forty hours per week rather than as many hours as there is in each week.
ADL has very good benefits. Most of the employees are there for the benefits rather than the pay. His example: single worker with no dependents was free but now costs $15.00 per month. He compared that to an Oklahoma friend who pays $700/month for single person health insurance coverage.
He gave an overview of each type work available with ADR.
Accountant—works for the state in the governor’s office or other state offices.
Tax Evaluation Analysis—property tax people who determine real and personal property values and work with the public regarding appraisals. For example, if you feel your house is over-valued for tax purposes, these people are in every county court house. This position is state-wide.
Revenue Compliance Officers—in every service center. Larger Alabama cities have service centers—Huntsville, Gadsden, Muscle Shoals, Birmingham in north Alabama. These are the people who call on those who owe and don’t pay.
Foreign Audit Specialists—travel a great deal. They are usually out of state about three weeks of each month. This is not ideal for those with children and families. ADR now has about 18 officers. This is a great job for single people with no ties. This position offers great travel and the 40-hour work week still applies. Some travel is to train those officers who actually live outside the state. Since ADR now has officers in Houston, Atlanta, Florida, Dallas, and now New York there isn’t as much travel far away.
These are the only ADR positions actually open at the present time. They are open due to a special appropriation for out of state auditors.
The question was raised as to the need for ADR people in other states. WalMart was used to illustrate this need. Items purchased at WalMart are recorded directly to Arkansas. Examiners must go to corporate headquarters to audit WalMart. Another example was Wilson stores—like Spalding who have sales representatives and are required to charge Alabama sales tax but the records are at headquarters. He mentioned stores who have locations in Alabama as well as a website from headquarters. The online section doesn’t charge sales tax and try to claim arms length situation. Hasn’t worked because also allow to order online then pick up at local store.
Revenue Examiners—there are about 95 in the state. Although the register is not open now we think it will open soon. There are similar jobs in other departments open and hiring. These may take out of state trips and I hope to go to Dallas soon and get to see a Cowboys game. The process is to put in for trip which may or may not be approved since foreign audit specialists always go if they are available.
Revenue tax specialists—have 3-4 of those people. This requires either a degree in law or a master’s from a taxation school. It pays as much as a supervisor, maybe why there are so few of them in Montgomery.
Accounts examiners audit schools and other entities throughout the state and they are currently hiring. They come to all the schools to check how the funds have been spent.
Budget – work mostly in the governor’s office to work with state budgets.
Staff accountant—if have accounting experience, usually after two years as accountant.
Insurance examiners—work with insurance co through the stat to make sure charging what they do.
Questions:
Use Tax
Basically it is the back end of sales tax. When you buy online with companies that lack nexus with Alabama no sales tax is charged but you do owe tax on the purchases. The likelihood of individuals being checked is slim but business owners are a different story. Examiners are looking for expensive equipment purchases. ADP doesn’t hunt down individuals but rely on income tax return self-reporting. However, if the economy gets much worse we may be looking at you.
How do you do this?
Can come directly to office or go to the payer’s business, look at income tax returns. Look for invoices, receipts, depreciation schedule, Must be curious and some what suspicious to be a good revenue examiner
Is CPA required?
No. Certification with test after each class will meet the requirements. But, it definitely is a plus for promotional situations.
Do they pay for this? No.
In the past having a CPA was an automatic two step increase but now the main complaint is the continuing education required to maintain the CPA and that individual must use annual leave and pay own costs—non reimbursable.
Streamlined sales tax initiative.
This has changed widely with all the states getting involved. The original intention is to have national collection and dispersion of tax done by zip code. Have to collect sales tax where they are located. Pay just the 8% to the state you are in.
Problems others have with this is that states like Alabama have higher rate and it is difficult to collect the rest the remaining tax due. This will cause everybody to collect sales tax. However, with the government everything is not always as cut and dried as it seams.
What type of revenues does the state have?
Other revenue streams: license, fines, bust done by sheriff most goes to sheriff, lot of time not much left, cost of incarceration. State would not get 50%.
Independence to protect objectivity.
There are procedures in place to maintain auditor independence. E.g., if the examiner has a family member working there the supervisor must be informed and the information is sent up the chain to ensure that it is okay. We are held to standard to let someone know.
President Pacanins thanked the speakers and presented each with a certificate and a token gift.
Dr. Hickman: Make sure you sign the list for credit.
Meeting Adjourned: 12:20. Thanks for coming.
Rozella Coggin, Recording Secretary Katie Pacanins, President