FAS 109 Income Tax Accounting for Mergers and Acquisitions

• M & A Deal Aspects and Integration
• Transaction Costs: Sections 338 and 382
• Accounting For Business Combinations
• International and Domestic Tax Updates
• Year End Planning
• AND MORE…

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In October 2008, California Governor Schwarzenegger signed tax legislation that had revenue raisers, as well as incentives designed to stimulate the California business climate, such as a single sales factor election, a two-year net operating loss carryback, a 20-year net operating loss carryforward, andthe assignment of credits between members of the same combined reporting group. Most of these provisions were to take effect for taxable years beginning on or after January 1, 2011.

The credit assignment provision allows affiliated corporations that are members of the same combined group to assign credits to each other beginning July 1, 2008. The assigned credits can be utilized against tax by the assignee beginning on or after January 1, 2010.

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Federal corporate income tax specialist brings more than 25 years of diversified experience to corporate clients

CHICAGO – September 27, 2010 – True Partners Consulting LLC today announced that Robert M. Gordon, 57, has joined as a managing director in its Chicago office.

Gordon possesses more than 25 years of experience in the Federal corporate income tax sector, including structuring and implementing a range of transactions such as mergers and acquisitions.

“We are pleased to have Bob join the Chicago team and be able to offer his deep expertise on all aspects of domestic and international corporate and partnership matters to our clients,” said Cary McMillan, chief executive officer of True Partners. “At True Partners, we place a high level of importance on experience and talent, and Robert will undoubtedly be a significant leader and valued consultant across a number of our practices.”

As a managing director, Gordon’s consulting responsibilities will center on domestic and international corporate and partnership matters, including corporate simplification, tax risk assessments, transfer pricing, tax planning for environmental spending, captive insurance and taxation of alternative energy, oil and gas. He also will provide guidance related to mergers and acquisitions, including post-merger integration and restructuring, and structuring complex joint venture transactions to optimize tax results.

Prior to joining True Partners, Gordon spent 20 years in various in-house tax counsel roles at BP America, formerly Amoco Corporation, ultimately holding the role of assistant general tax counsel and head of tax for the United States-based manufacturing and retail division. 

“I love helping companies navigate our country’s complex tax environment. My experience allows me to add real value partnering with tax directors and CFOs,” Gordon said. “I am excited to be joining True Partners and am pleased to be able to bring additional perspective and knowledge to the company to help better serve the firm’s impressive client roster.”

Gordon graduated with a Bachelor of Arts degree from the University of Illinois at Chicago and received a Juris Doctorate degree from Northwestern University School of Law. Gordon also serves as an officer of the Corporate Tax Committee and as a past-chair of the Energy and Environmental Taxes Committee at the American Bar Association Tax Section and is also a member of the Illinois State and Chicago Bar Associations.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations.  The firm provides a broad range of tax services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy.   The firm also conducts refund reviews, negotiates tax incentives, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa, Fla.; Boston; Denver; and London.  There are also member firms with headquarters in the following cities:  Paris; Turin, Italy; Barcelona, Spain; Beijing and Hong Kong, China; Singapore; Munich, Germany; and The Netherlands; through the True Partners Consulting International Network.  Find additional information at www.tpctax.com.

Samantha R. Petersen brings unclaimed property consulting experience to new branch

DENVER – September 23, 2010 – True Partners Consulting LLC today announced the opening of its first office in Denver, as well as the promotion of Samantha R. Petersen, 38, to managing director.

The new office, located in the Denver Tech Center, will be led by Samantha Petersen as she steps into the role of managing director.  Petersen joined True Partners Consulting as a manger in 2005 and has been an integral part of the firm’s national unclaimed property practice primarily based in Los Angeles.

“We are delighted that Samantha will lead the new Denver office, as she has demonstrated strong leadership skills during her time with True Partners,” said Cary McMillan, chief executive officer of True Partners. “She will be a tremendous asset to the office and will continue to assist some of our top clients in issues related to unclaimed property.”

Petersen has nearly 15 years of experience in unclaimed property, and state and local tax, including both industry practice and public accounting consulting.  Samantha has over 12 years of public accounting experience and prior to joining True Partners, held the position of Southwest Region Unclaimed Property Practice Leader for KPMG.

Before her extended stint in public accounting, Petersen worked for Federal Express Corporation in Memphis, where she played an integral role in drafting and implementing the company’s unclaimed property processes, policies and procedures.

Through her vast experience in the area of unclaimed property consulting, Petersen is a recognized authority in the use and implementation of unclaimed property systems and has extensive experience in the development of formalized policies and procedures related to unclaimed property.  She has represented Fortune 500 clients in the defense of unclaimed property audits, performing comprehensive diagnostic reviews, developing process improvement techniques, and identifying planning opportunities. 

“It is an amazing opportunity to be able to play a leadership role in the new office and continue to use my background to assist a broad cross-section of unique clients,” said Petersen. “As True Partners continues to expand, I look forward to contributing to the firm’s growth.”

Petersen earned her Master of Business Administration degree from Colorado Christian University in Denver, Colorado, and a Bachelor of Science degree in Accounting from Christian Brothers University in Memphis.  She is a regular speaker before trade and industry groups on the subject of unclaimed property and currently co-chairs the Unclaimed Property Professionals Organization’s (UPPO) Members as Mentors committee.

About True Partners Consulting LLC

True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley created conflicts inherent in offering both tax consulting and audit services.  The firm provides a broad range of tax services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy.  The firm also conducts refund reviews, negotiates tax incentives, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa, Fla.; Boston; Denver and London.  There are also member firms with headquarters in the following cities:  Paris; Turin, Italy; Barcelona, Spain; Beijing and Hong Kong, China; Singapore; Munich, Germany; and The Netherlands; through the True Partners Consulting International Network.  Find additional information at www.tpctax.com

Cathleen Bucholtz Office Managing Director of True Partners’ L.A. office and the National Practice Leader for True Partners’ Unclaimed Property Management Solutions Team will be a speaker for the Unclaimed Property Info Lunch’n Learn Webinar. 

Lunch’N Learn Webinar

Thursday, July 22th
12:00 noon – 1:30 EDT / 9:00 – 10:30 PDT

Thursday July 15th
12:00 noon – 1:30 PDT / 3:00 – 4:30 EDT

Whether you have never filed or have fallen behind, or even file annually, this webinar will consolidate and deliver years of valuable experience and information from Unclaimed Property Industry Experts.

• How to Protect your Company, CFO, shareholders and customers
• How Good Compliance can result in a Positive ROI!
• State Amnesty Programs – Who is offering them and Why?
• How & When to Request Amnesty or file a Voluntary Disclosure Agreement (VDA)
• Identifying the Unclaimed Property Advisory Team and the Project Plan
• Where are the different areas within the General Ledger that Unclaimed Property lurks?

Great, knowledgeable speakers kick off the first of the Summer Lunch’n Learn Webinars. Each webinar can be purchased separately, or as a complete series that will continue to build upon your existing foundation of knowledge and application of the Unclaimed Property laws.

There is a Launch Special for our Holder Business Professionals that would like to attend this event. Our already low Webinar fee of $199 will be discounted an additional $25 by using the Coupon Code “TPC-SPECIAL” when registering.

For more information and to register for this event Click Here

New COO will lead U.S. market and focus on continued growth for True Partners

CHICAGO – May 19, 2010 – True Partners Consulting LLC today announced that Susan Gallagher, 51, has joined the firm as chief operating officer.

True Partners recruited Gallagher for this position as part of its broader efforts to double its business organically over the next four years, according to the firm’s chief executive officer, Cary McMillan.

“Susan fits very well into our unique culture at True Partners, which is built around having senior-level counselors work closely with our clients on complex tax advisory engagements,” said McMillan. “Susan has the enthusiasm and leadership skills to help us continue to attract and grow the best professionals and keep our teams working together to solve complex client problems for years to come.”

Gallagher brings extensive experience in strategic development through the design and implementation of marketing and sales programs to drive growth.  In her new role with True Partners, she will lead the U.S. region, work closely with each market to drive growth, maintain client satisfaction and help set the firm’s overall business strategy.

“With the tax environment becoming more complex – both for public, as well as private, companies – corporations have a real opportunity to re-examine and improve their tax strategies.  True Partners is ideally positioned to meet this need,” said Gallagher. “I’m truly delighted to be joining this dynamic firm with such talented leadership and staff, especially at this vital point in the firm’s evolution.”

Gallagher has more than 26 years of experience in professional services and is recognized nationally in the consulting market, with a diverse range of clients heavily focused on Fortune 500 companies. She has provided analysis on international and inter-company pricing disputes, calculated potential damages in trade secret cases and identified the features and impact of intricate fraud schemes.

“We are very pleased with the success of our portfolio company, True Partners, and are excited about the addition of a new chief operating officer,” said Reeve Waud, founder and managing partner, Waud Capital Partners.  “We are confident that the senior leadership in place will help drive True Partners’ continued success and growth.”

Before joining True Partners Consulting, Gallagher worked at Huron Consulting Group, where she was one of the 25 founding managing directors of the company. She was responsible for driving growth nationally in the legal business and played a key role in developing the strategies to initiate and sustain relationships with clients and legal counsel.

Gallagher also served as the head of client relationship development for Arthur Andersen’s Chicago office, where she restructured the marketing function to align it with the various business units.

Gallagher received a Bachelor of Business Administration from St. Mary’s College in Notre Dame, Indiana. She is also a certified public accountant in Illinois.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations.  The firm provides a broad range of tax services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy.   The firm also conducts refund reviews, negotiates tax incentives, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa, Fla.; Boston; and London.  There are also member firms with headquarters in the following cities:  Paris; Turin, Italy; Barcelona, Spain; Beijing and Hong Kong, China; Singapore; Munich, Germany; and The Netherlands; through the True Partners Consulting International Network.  Find additional information at www.tpctax.com.

By: Emilie Le Beau April 26, 2010

Living abroad in Canada and Mexico, Ford Motor Co. engineer Brian Swem could switch company cars every three months, from a convertible Mustang in the summer to a four-wheel-drive Escape in the winter, among other perks. But after six years, Mr. Swem, 30, says, “I left it all behind. Bought an old car, moved into a small apartment” and pursued a dual MBA and master’s of engineering management at Northwestern University.

Two years later, he’s preparing to re-enter the workforce this spring, recruited into a management position with Nissan North American Inc.

Like Mr. Swem, many students are pursuing dual post-graduate programs that allow them to earn a traditional master’s in business administration while solidifying expertise in another area — law, medicine or engineering, for example.

The Liautaud Graduate School of Business at the University of Illinois at Chicago offers six dual MBA degrees ranging from economics to nursing. The Kellstadt School of Business at DePaul University has a dual MBA-MS degree in which students can pursue specialized fields of study such as behavioral finance and brand management.

Graduating with a dual degree can impress employers. Ray Russ, a vice-president in Chicago at Neoris, a Miami-based consulting firm specializing in Latin American markets, frequently sees applicants and employees with degrees combining MBAs with master’s in law or information sciences.

“Doing an MBA takes a lot of time and effort, so if the dual degree is in the right field, it’s impressive, especially if the person has thought a lot about what they want to do,” Mr. Russ says.

The dual degrees may attract employers’ attention, but there is a catch: Students need to be highly motivated — the process is all-consuming and exhausting, current students and recent grads say.

For Caralynn Nowinski Chenoweth, 32, a dual degree led to a new career. She began as a medical student at UIC and planned on a medical research career until she enrolled in the MBA program.

“Before business school, I had never read an income statement,” Ms. Chenoweth says. “Cash-flow sheets were completely new to me.”

Ms. Chenoweth graduated with an MD-MBA in 2007 and went into investment banking. She’s a vice-president at Sikich Investment Banking in Chicago, focusing on life-science companies.

“I absolutely use my medical knowledge every day,” she says. “It’s not that another banker couldn’t understand the intricacies of the medical technology, but I can understand it through a unique perspective.”

Brian Jessen, a tax consultant at True Partners Consulting in Chicago, graduated in 2009 with a dual MBA-JD from Loyola University. He attended law school during the day and business school at night. The workload was so intense, he says, he thinks it may be unwise for anyone other than young students.

“You’re doing twice as much as the average graduate student,” says Mr. Jessen, 25.

©2010 by Crain Communications Inc.

To see this article on Crain’s Chicago Click Here

TRUE PARTNERS CONSULTING INTERNATIONAL NETWORK (TPCI) CORDIALLY INVITES YOU to an International Tax seminar to be held in Munich, Germany on June 17th and June 18th, 2010. This seminar will focus on the challenges of managing your tax exposure and risk in an ever changing global marketplace. The topics will be presented both in panel discussions and comprehensive case studies.

View Full Event Info

Register Here

New England Chapter   
Tax Executives Institute, Inc.     

When:
Friday: May 14th, 2010

Location:
Sheraton Needham Hotel
100 Cabot Street
Needham, MA 02494

Price:
$125.00 members; $150.00 non-members; No charge for Retired Members.

Nancy Barret and Andrea Gronenthal present on ”Call to Action – Taking the Lead in Building the Tax Function of the Future”. 

For a full schedule of the TEI conference Click Here

Cathleen Bucholtz, Michael Chen promoted leaders for L.A. and San Jose, respectively

LOS ANGELES – March 10, 2010 – True Partners Consulting LLC today announced that Managing Director Michael Chen, 35, is being promoted to leader of the firm’s San Jose, Calif., office and Managing Director Cathleen Bucholtz, 39, will lead the Los Angeles office and join the Board of Directors for True Partners Consulting. Of the firm’s five Board members, Bucholtz was selected as the only employee-representative, in addition to True Partners Consulting Chief Executive Officer Cary McMillan.

In Spring 2009 True Partners opened two satellite offices in California, strengthening its West Coast presence.  The office openings also enhanced the company’s ability to meet the growing needs of public companies and private enterprises with significant local operations in need of counsel concerning how to navigate the numerous international, federal and state tax laws and increasingly complex financial and legal regulations. The satellite offices include a Woodland Hills location, which is an extension of the Los Angeles office and led by Bucholtz; and a San Francisco location, which is an extension of the San Jose office and led by Chen. Since last summer the firm has doubled the size of its San Jose office and all together there are now 43 West Coast employees.

“Cathleen and Michael have demonstrated remarkable leadership internally and externally with exemplary client service and engagement in various industry thought leadership venues on behalf of the firm,” said McMillan. “We look forward to collaborating with them to further enhance the growth and offerings of our four California offices for our clients and employees.”

Bucholtz has been with True Partners since the firm’s inception in December 2005. Named Managing Director in 2008 and as national leader for True Partners’ Unclaimed Property practice, Bucholtz oversees one of the largest dedicated professional teams in the industry that provides multi-jurisdictional unclaimed property services in the areas of audit defense, voluntary disclosures, comprehensive diagnostic reviews, annual compliance, process improvements, and other customized services to meet client needs. She possesses more than 17 years of experience in both unclaimed property and sales and use tax consulting, including statistical sampling, training client personnel, and identification of planning opportunities.

“I am eager to build on the progress we’ve made in broadening our network of strategically located offices on the West Coast to meet increasingly complex client needs,” said Bucholtz. “The growth is a result of an increased need for service capabilities in the state due to ever changing state laws, new clients, expansion of existing relationships, and referrals.  I look forward to further leveraging my experience with a focus in the region on behalf of our California teams and clients.”

Prior to joining True Partners Consulting, Bucholtz was the western region leader for KPMG’s Unclaimed Property practice and prior to 2002 she was an integral member of Arthur Andersen’s National Unclaimed Property team. Before entering public accounting, Bucholtz worked for the California State Board of Equalization as a senior tax auditor and acting field audit supervisor.

Bucholtz has spoken before numerous trade and professional organizations on the topic of unclaimed property including the Unclaimed Property Professionals Organization (UPPO); American Payroll Association (APA); Institute for Professionals in Taxation (IPT); and the National Business Institute (NBI). Since 2006, Bucholtz has served as the UPPO Education Committee Co-Chair.

A graduate of the University of California in Santa Barbara, Bucholtz earned a bachelor’s degree in business economics, and is a licensed Certified Public Accountant (CPA).

Chen, who joined True Partners Consulting five months after the firm’s inception, has extensive experience in advising on federal and international tax matters with an emphasis on FAS 109, accounting for income taxes.
Chen advises clients in a variety of industries, including high-tech, pharmaceuticals, leasing, manufacturing, and consumer business. His past and current experiences include consulting on accounting for income taxes, stock based compensation tax implications, Section 382 studies, cross-border transactions, foreign tax credit utilization, and income tax compliance.

“We have had great opportunity to further strengthen our position serving local mid-market companies, especially those in the technology sector with limited or no internal tax resources,” said Chen. “I am honored to accept an increased leadership role in the region and help continue steering True Partners Consulting as one of the fastest-growing companies in the tax and business consulting industry,” said Chen.

Prior to joining True Partners, Chen held various leadership positions at the “Big Four” and other professional consulting businesses. During that time, Chen was part of a team responsible for cultivating and developing a successful tax practice focusing on mid-market companies. While there, he co-spearheaded the sales and marketing efforts and recruitment of the tax team.

Chen holds a bachelor’s degree in accounting from the University of San Francisco. He is a frequent speaker on international taxation, Sarbanes Oxley compliance, and financial reporting at various professional tax seminars and training forums.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley created conflicts inherent in offering both tax  and audit services.  The firm provides the full scope of tax services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy.  The firm also conducts refund reviews, negotiates tax incentives, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.  True Partners Consulting is one of the leading providers in unclaimed property where they help companies meet the growing compliance and audit burdens in the United States.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa, Fla.; Boston; and London.  There are also member firms with headquarters in the following cities:  Paris, France; Turin, Italy; Barcelona, Spain; Beijing and Hong Kong, China; Singapore; Munich, Germany; and Amsterdam, The Netherlands; through the True Partners Consulting International Network.

Diamonds in the Rough: Opportunities & Traps in Acquiring Distressed Companies

Panel

Todd Snyder, Managing Director, Rothschild Inc.
Keith Shapiro, Co-Managing Shareholder, Greenberg Traurig
Paul O’Connor, Managing Partner, Angkor Strategic Advisors
Douglas J. Knoch, Principal, Code Hennessy & Simmons LLC

Facilitator

Cary McMillan, CEO, True Partners Consulting

Thursday, March 4, 2010
7:30am – 9:30am
Breakfast Provided
Complimentary Parking

The University Club of Chicago
76 East Monroe Street
Chicago, IL 60603

RSVP to Christa Rathbone by calling 312.470.3846 or emailing at Christa.rathbone@cushwake.com

For more information please visit www.cwcforoundtable.com

Chicago, Illinois, February 2010 – True Partners Consulting (“True Partners”) is pleased to announce the election of Michael R. Parks and Michael J. Tower to the company’s Board of Directors. “We are very excited about these additions to our Board,” stated Cary McMillan, President and Chief Executive Officer of True Partners.  “Their experience, diverse backgrounds and outstanding leadership in the professional services field will be a tremendous asset to us as we continue to grow our business.”

Mr. Parks is the Chief Executive Officer and co-founder of The Revere Group, a leading global business and information technology solutions consultancy.  Headquartered in Chicago, The Revere Group has grown since inception in 1992 to employ over 400 professionals across eight offices throughout the United States.  In November 2005, Mr. Parks negotiated the sale of a majority interest in The Revere Group to NTT Data Corporation, a Japan-based global information technology company and subsidiary of Nippon Telegraph and Telephone. 

Mr. Parks is a Board member for Bell Industries, a provider of integrated product and service solutions, and the Chicago Chamber of Commerce.  Mr. Parks is a graduate of the University of Illinois with a B.A. in Economics.

Mr. Tower is a Partner at A.T. Kearney, a global management consulting firm focused on strategic and operational CEO-agenda concerns with 48 offices in 32 countries.  From the fall of 2005 until January of 2009 Mr. Tower ran A.T. Kearney’s North American operations, the firm’s largest business unit.  Mr. Tower’s consulting experience includes a combination of strategy, operations and organizational work across many industries.  In addition to his client and managerial roles, he is a member of A.T. Kearney’s Public Sector and Defense Services Board of Directors and the Chairman of the North America Diversity and Inclusion Council.  Mr. Tower first joined A.T. Kearney in 1987, and returned to the firm in 2003.  Prior to his return, he was Senior Vice President, Corporate Strategy, and before that President of Home Improvement Services, for Sears, Roebuck and Co.  Mr. Tower started his professional career with Arthur Andersen & Company.

Mr. Tower is a member, and past President, of the board of Shelter, Inc., a non-profit organization that provides emergency care for abused and neglected children.  He is a board member of Junior Achievement of Chicago, co-chairing the Volunteer Committee, and a member of both the Civic Committee of the Commercial Club of Chicago and the Economic Club of Chicago.  He is a strategic advisor to PartScription, a start-up enterprise, and serves as a mentor to several members of the Young Leaders Group of the Executives’ Club of Chicago.  Mr. Tower holds a B.B.A. degree from the University of Notre Dame, a MM (MBA) degree from Northwestern University’s J.L. Kellogg Graduate School of Business and is a certified public accountant.

About True Partners Consulting
Headquartered in Chicago, Illinois, True Partners was launched by Waud Capital Partners and a group of former Arthur Andersen tax partners in January 2006 to develop a nationwide independent tax and business advisory firm focused on helping public companies and private enterprises navigate the numerous federal and state tax laws and increasingly complex financial regulations.  True Partners provides “Big Four” technical expertise while avoiding the potential Sarbanes-Oxley-related conflicts that companies offering both consulting and audit services face. 

About Waud Capital Partners
Waud Capital Partners is a private equity investment firm founded in 1993 that partners with exceptional management teams to invest in middle market growth equity investments, buyouts, industry consolidations and recapitalizations.  The firm seeks to invest $10 million to $100 million in private companies in the following four areas: healthcare services, business and consumer services, specialty distribution and value-added industrial businesses.  Typically, the companies in which WCP invests have enterprise values between $30 million and $300 million.  For additional information on Waud Capital Partners, visit the firm’s website at www.waudcapital.com.

True Partners Consultings Managing Director Dorothy Radicevich along with Senior Manager Hector Camacho will be speaking about Property Tax at the February meeting of the Chicago Tax Club.  For more information about this meeting and to register please visit www.thectc.org

Chicago Tax Club
Crowne Plaza Hotel
February 22nd
8:30AM-9:45AM
Property Tax Updates

ACCOUNTING
Ron Tambasco and Allea Newbold joined the Tampa office of True Partners Consulting as managing directors. Tambasco was previously with PricewaterhouseCoopers. Newbold previously worked with the tax accounting groups of Ernst & Young and PricewaterhouseCoopers.

To read this online:
Click Here

http://www.consultingmag.com/article/ART646114
12/14/09
 
Andersen Worldwide—the parent company to Arthur Andersen and Andersen Consulting—began the decade as the world’s largest consulting firm. It had been the profession’s largest consulting organization every year since Consulting’s publisher, Kennedy Information, began its annual consulting rankings in the early 1980s. But the rein effectively came to an end on Monday, August 7, 2000.
 
On that day, an arbitration report was issued allowing the then almost $10 billion Andersen Consulting (now known as Accenture) to walk away from its parent company in exchange for merely giving up the Andersen brand and releasing the approximately $1 billion in funds it had already put aside in escrow as part of the firm’s annual profit sharing agreement.
 
The arbitrator’s decision was not what Arthur Andersen partners had expected. Arthur Andersen had asked for $14.6 billion, which would have amounted to a payday of about $7.7 million, on average, for each of the firm’s 1,900 equity partners. Instead, the roughly $1 billion payout netted the average partner less than $600,000.
 
Average annual partner compensation dropped by approximately $100,000 the following year, Kennedy estimated. Arthur Andersen partners interviewed at the time used words like “devastated” and “angered” to describe the firm’s mood. Arthur Andersen’s CEO Jim Wadia resigned within hours of the arbitrator’s announcement.
 
While such disappointment would have been difficult for a firm’s culture to absorb at any time, 2000 was a particularly bad moment for such a body blow. Many of Arthur Andersen’s biggest competitors were selling large pieces of their consulting businesses for huge sums of money. Just months earlier, Cisco Systems had paid KPMG $1 billion for a 20 percent stake in what was to become BearingPoint.
 
And Cap Gemini had just paid $11.1 billion for most of Ernst & Young’s consulting business. Instead of the 2.7 to 2.8 times revenue multiple other firms were receiving, Andersen Consulting walked away paying just 0.1 times revenue.
 
So, while many of the other Big Five firms had cash to re-invest in their remaining business, Arthur Andersen entered the coming downturn in poor shape. But as it would turn out, the consulting slump of late 2001 through 2003 would be the least of its problems.
 
In late 2001, extensive and systemic accounting fraud was unearthed at one of Arthur Andersen’s largest audit clients, Enron. By mid-2002, Arthur Andersen was convicted of obstruction of justice for shredding documents related to its audit of the energy giant. In August 2002, the firm surrendered its CPA license, ending its right to audit US public companies. The firm’s reputation had been so badly damaged by scandal that the non-US practices also went out of business.
 
Although the conviction was unanimously overturned in 2005 by the US Supreme Court (due to what it deemed to be a material flaw in the jury instructions), the firm was already dismantled. In 2002, what was then-KPMG Consulting acquired significant pieces of the firm, as did Deloitte (especially its European operations), and Hitachi Consulting.
 
In addition, the redistribution of thousands of staff continues to be felt across the consulting landscape. Nearly 1,400 of Andersen’s consulting staff went to KPMG Consulting. A few hundred Andersen consultants from the Chicago office formed what is now known as Huron Consulting Group. The metals division of Andersen’s Pittsburgh office joined Perot System, which itself was recently acquired by Dell. The senior-most ranks at firms like Protiviti, Navigant, Hitachi and True Partners also can be traced back to Andersen’s implosion.
 
Accenture’s Success
 
The other firm that owes much of its current success to Andersen’s demise is Accenture. If Andersen Consulting CEO George Shaheen had not been successful in convincing his colleagues to push for separation when he did; or, if the arbitration process has been dragged out longer, Andersen Consulting’s fate could be very different today.
 
At the end of its last fiscal year as part of the combined Andersen Worldwide, the firm then known as Andersen Consulting generated $9.8 billion. Since then, the firm has more than doubled in size, to $21.6 billion and 47,000 consultants.
 
In September, Consulting ranked Accenture as the profession’s best multi-service firm to work for. The firm has maintained its training and development budget in 2009 and has taken steps to encourage flexibility—especially by making it easier for consultants to work from home. In 2010, the firm plans to invest $900 million in training, which equates to more than 13 million hours of training for its 47,000 consultants.
 
 
The Andersen Effect
 
One of the positives that came out of the breakup of Arthur Andersen was the impact its ex-employees have had on the profession. Many ex-Andersen employees are now running consulting firms and enjoying great success—and they never miss a chance to tell you how much they loved working at Arthur Andersen. We rounded up several and asked one very simple question: What did you learn in your time at Arthur Andersen?
 
Phil Parr, CEO,
Hitachi Consulting
“My time at Andersen taught me the importance of surrounding myself with the best people possible. It was ingrained in us from the beginning that it is critical to attract and retain the best people. The reason is, at Andersen, it wasn’t about the individual; it was about the team you were on and what that team could accomplish working together for our clients. We were all very proud to be part of the firm. These early lessons shaped how I work today, and the kind of environment that I try to emulate and recreate at Hitachi Consulting.”
 
Dan Reardon, President
and CEO, North highland
“I learned that in this profession, there is right and wrong. You always know what the right thing to do is and it is almost always the hardest thing to do. Over the years, I have always kept that in mind. Employees and clients like to work with someone they can trust.”
 
Gail Steinel, Owner,
Executive Advisors
“I learned how great businesses are built and destroyed. It all comes down to leadership and the resultant organizational culture. Andersen was built on a few core concepts: clients come first; think straight/talk straight; train and develop people; stewardship; one-firm concept; and, entrepreneurial spirit. I am proud to have been a partner at Arthur Andersen. The business was destroyed by external factors, but we also have to accept our own responsibility. Top leaders, distracted by the internal fight with Andersen Consulting, stopped reinforcing the culture and values. Myself and the other partners should have demanded their leadership.”
 
Cary McMillan, CEO,
True Partners Consulting
 “We lived by several values and the best ones resonated deeply; I’ve carried them throughout my career and continue to integrate them today into my firm, True Partners Consulting. The first is: ‘Think straight, talk straight.’ We counseled clients honestly about things that while in their best interest, they didn’t want to hear, which I found to be unique. The second is: ‘Invest in future generations.’ To me, this is about building something for the future and providing more than existed when you arrived.” The third is: ‘Grow organically.’ ”
 
Dean Fischer, President, CEO
West Monroe Partners
“I could write volumes about lessons learned during my 23 years at Arthur Andersen, but none were more significant than the importance—and power—of culture. At its very best, Arthur Andersen’s key strength was its distinctive culture—one shaped by well-defined and strongly held core values. Andersen invested in and developed young people, recognizing that the organization was only as strong as its future. Despite the highly publicized actions of a few, we were schooled in and served clients with absolute integrity. I feel fortunate to have been a ‘student’ of this environment and have brought it to West Monroe Partners.”
 
Karen Wilson, Director,
PricewaterhouseCoopers
“The mantra at Andersen was quality. It was instilled in us—standards could not be too high. Anything with the firm’s name on it had to be perfect. The term “good enough” was not part of our lexicon. I realize that still, when every time I review a product from our team at my current job, I’m running through the Andersen quality checklist in my mind… Does it address the client’s pain? If we weren’t truly invested in solving the client’s problems, that would show. It seems trite to say that we were taught to care, but, in a way, we were… That, to me, is the legacy of Arthur Andersen.”
 
Mark Hargis, Managing
Director, The Claro Group
“I spent 20 years as an employee and partner at Andersen. Needless to say, I learned a great many things. At Claro, we have tried to adopt and improve on the good things we learned at Andersen. We have a belief: take care of our clients’ interests and take care of our people’s interests and everything else takes care of itself. This belief drives the quality of our services we deliver to our clients and the commitment to stewardship for our people.”
 
Steve Sestak, CEO,
MarketSphere Consulting
“The investment that Andersen made in its people was unparalleled and contributed to its strong culture and loyalty. Regardless of which market or practice you worked in, there was an Andersen way of doing things. Core behaviors around leadership, client service and quality were taught by emulating more senior people. Becoming a partner was a journey, not an event. What I learned at Andersen was that good people, with the right tools, training, culture and motivation, can do amazing things.”

Ron Tambasco and Allea Newbold add strength to Tampa leadership team

TAMPA – December 10, 2009 – True Partners Consulting LLC today announced that Ron Tambasco and Allea Newbold are joining the firm as Managing Directors in the Tampa, Florida, office.

“Ron and Allea each bring significant tax and consulting experience, accentuating our commitment to serving the Tampa and Florida business community and recruiting the industry’s most skillful professionals,” said Cary McMillan, chief executive officer of True Partners.  “As we continue our commitment to offering the best and brightest tax and business consulting minds to our clients, they will be an important part of our success in moving the firm forward.”

With more than 15 years of experience in the tax industry, Ron has a wide range of expertise regarding state and local tax issues, including corporate income and franchise taxes, sales and use taxes, property taxes, gross receipt taxes, and payroll taxes.  He also has extensive experience with developing and implementing integrated tax planning solutions for corporations.  Ron has represented companies before state tax authorities and administrative boards, and has advised clients on state tax aspects in merger and acquisition transactions. 

“It’s an honor to be joining the Tampa office as a managing director,” said Ron.  “I look forward to leveraging my expertise on behalf of clients and to becoming an essential part of the unique culture and strong leadership team.”

Prior to joining True Partners, Ron served as the practice leader for the state and local tax consulting group at PricewaterhouseCoopers, which he joined in 1993.  He also served as the overall client relationship manager on several clients, including a multi-billion dollar company.

Tambasco earned a master’s of accounting with an emphasis in tax from Brigham Young University in 1991 and a bachelor’s of science from the University of South Florida in 1989.  He is a Certified Public Accountant in three states.

Allea has more than 13 years of experience serving public and private companies in a variety of industries including private equity, manufacturing, service and retail.  Her Federal tax work experience includes mergers and acquisitions, corporate tax, transaction cost analysis, FAS 109, FIN 48, capitalization studies and partnership tax issues.

“I am delighted to be joining True Partners Consulting, one of the fastest-growing tax consulting organizations in the market,” said Allea.  “My previous work with companies of various sizes and in different sectors will allow me to provide value and serve as an effective addition to the leadership team.”

Prior to joining True Partners Consulting, Allea was a member of both Ernst & Young and PricewaterhouseCoopers’ respective tax accounting groups.  She also participated in a tour of duty with PricewaterhouseCoopers national tax office in Washington, DC focusing on accounting method issues.  

Allea is a graduate of the University of Georgia with a bachelor’s of business administration and master’s in accounting.  She is a Certified Public Accountant in Georgia and Florida.  

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley created conflicts inherent in offering both tax consulting and audit services.  The firm provides a broad range of tax services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy.  The firm also conducts refund reviews, negotiate tax incentives, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa, Fla.; Boston; and London.  There are also member firms with headquarters in the following cities:  Paris; Turin, Italy; Barcelona, Spain; Beijing and Hong Kong, China; Singapore; Munich, Germany; and The Netherlands; through the True Partners Consulting International Network.  Find additional information at www.tpctax.com

Rapidly growing firm continues momentum in Hong Kong, Singapore and the Netherlands

CHICAGO—October 16, 2009—True Partners Consulting LLC today announced that True Partners Consulting International (TPCI) Network, an association of tax consulting firms in select markets around the world, has reached an agreement with three new affiliates. 

The three new member firms from Hong Kong, Singapore and the Netherlands, respectively, will join TPCI’s growing affiliates’ network. The affiliates, which will be identified as “Member Firms of the True Partners Consulting International Network”, are as follows:

• Michael Yam & Company (Hong Kong),
• HLS Tax Advisory Services Pte Ltd. (Singapore), and
• Brandt & Partners Belastingadviseurs B.V. (The Netherlands).

“We continue to build our network of international affiliates in an effort to provide worldwide tax solutions to the myriad tax issues confronting clients involved in international trade,” said Cary McMillan, chief executive officer of True Partners Consulting.  “All of these areas—Hong Kong, Singapore and the Netherlands—are important financial centers in their respective hemispheres, and many of our clients have business interests in these vital areas.” 

The three new member firms of the True Partners Consulting International Network will help clients choose and establish the most tax-efficient operating structure in the respective countries, according to McMillan.

Led by Allan Yu, Michael Yam & Company was started in 1975 by Michael Yam, who upon realizing that the accounting standards in Hong Kong varied from those of any major financial firms and/or fell short of an acceptable level, seized the opportunity to provide improved accounting and auditing services at a reasonable fee level in Hong Kong. The firm has grown from two employees to approximately 40 since that time and has approximately 700 clients in the corporate, multinational and private sectors, as well as professional partnerships.

Michael Yam & Company operates an extensive tax practice with expertise in all areas of Hong Kong tax, as well as regional and international tax planning.  Locally, the firm is involved in all types of tax compliance, audit defense, and planning.  Internationally, the firm provides transaction planning and entity structuring services, as well as transfer pricing, expatriate taxation, and all other types of international tax planning.

Founded in 1974, HLS Tax Advisory Services Pte Ltd is the tax arm of Heng Lee Seng & Co, and a medium-sized firm of Certified Public Accountants dedicated to serving the needs of high growth businesses, multinational corporations and individual taxpayers.  The firm offers a full range of tax services, including all forms of local tax compliance, review and planning for international business structures and financing, property tax, and goods and services tax.  In addition, the HLS group provides corporate secretarial and general business advisory, as well as auditing and accounting services.  Each partner is registered with the Accounting & Corporate Regulatory Authority (ACRA) and is a practicing member of the Institute of Certified Public Accountants of Singapore (ICPAS).

The founder, Heng Lee Seng, was a former Council Member of ICPAS and a member of the Inquiry Panel of the Public Accountants Board established by the government to regulate the practice of public accountants in Singapore.

Brandt & Partners Belastingadviseurs B.V. is led by Managing Director Kim Brandt.  Located in Amsterdam, the firm provides a variety of national and international tax issues expertise to clients largely in the corporate sector, but also private.  Brandt previously helped launch the True Partners Consulting office in London in April 2008 as one of its founding Managing Directors.  A year later, he returned to Brandt & Partners Belastingadviseurs B.V. and began establishing it as the True Partners Consulting affiliate in The Netherlands.  A member of the Dutch Order of Tax Consultants (Nederlandse Orde van Belastingadviseurs) and the International Fiscal Association (IFA), Brandt regularly leads presentations about Dutch tax issues.

Through True Partners Consulting International, a network of independently owned tax advisory firms, True Partners Consulting also has affiliated member firms with headquarters in the following cities:  Paris; Turin, Italy; Barcelona, Spain; Beijing and Hong Kong, China; Singapore; and Munich, Germany.  Its first wholly owned office outside the United States is located in London and named True Partners Consulting (UK) LLP.

For more information, visit http://www.hlsco.com about HLS Tax Advisory Services Pte Ltd and http://www.brandtenpartners.nl about Brandt & Partners.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley created conflicts inherent in offering both tax consulting and audit services.  The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy.  The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa, Fla.; Boston; and London.  There are also member firms with headquarters in the following cities:  Paris; Turin, Italy; Barcelona, Spain; Beijing and Hong Kong, China; Singapore; Munich, Germany; and The Netherlands; through the True Partners Consulting International Network.

The Chinese delegation from Zhejiang Provincial Audit Office will visit True Partners Consulting on October 21st, Wednesday, from 2:30pm to 4:30pm.

It is the second time that a Chinese delegation has come here to visit True Partners Consulting.

Zhejiang Provincial Audit Office is a functional body under the Zhejiang Provincial People’s Government. To learn more about Zhejiang Provincial Audit Office, please see the link below.
http://www.zjsjt.gov.cn/col/col538/index.html

Certainty Has Been Achieved

The FASB Completes Their Study of How Certain Aspects of ASC 740 Apply to Nonpublic Entities

By Andrea Gronenthal

Click HERE to download a PDF version of this news article.

For those entities holding out for another deferral of the requirements for nonpublic entities to comply with the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic (ASC) 740, Income Taxes (which includes FASB Interpretation No. 48 (FIN 48) – Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement (FAS) No. 109); another deferral of the deadline to comply is not likely. On September 2, 2009, the FASB issued Accounting Standards Update (ASU)No. 2009-06, Implementation Guidance on Accounting for Uncertainty in Income Taxes and Disclosure Amendments for Nonpublic Entities, which provides guidance on the application of FASB ASC 740-10 for pass-through entities and tax-exempt not-for-profit entities and signals the end of the FASB’s deferral, for certain nonpublic entities.

Background

In June 2006, the FASB issued FIN 48 (FASB ASC 740-10); Accounting for Uncertainty in Income Taxes, originally effective for all entities that apply U.S. Generally Accepted Accounting Principles (GAAP) for fiscal years beginning after December 15, 2006. The FASB clearly defined the applicability of FIN 48 in Paragraph one which states:

“…the requirements of this Interpretation apply to not-for-profit organizations. This Interpretation also applies to pass-through entities and entities whose tax liability is subject to 100 percent credit for dividends paid (for example real estate investment trusts and registered investment companies) that are potentially subject to income taxes.”

While the FASB was clear in which enterprises were subject to the requirements of FIN 48, little guidance was provided on how the Interpretation applied to not-for-profit or passthrough entities (S-corporations and partnerships). Historically, many pass-through entities and not-for-profit entities have not paid income taxes and have not applied the provisions of FAS 109 in the preparation of their financial statements. The lack of clear guidance surrounding the applicability of FIN 48 created confusion for these types of nonpublic enterprises as to whether the Interpretation applied to their organization.

On February 1, 2008, the FASB issued FASB Staff Position (FSP) No. FIN 48-2, Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises, deferring the effective date of FIN 48 for eligible nonpublic entities to annual financial statements for fiscal years beginning after December 15, 2007. Later in the same year, the FASB issued FSP No. FIN 48-3, Effective Date of FASB Interpretation No. 48 for Certain Nonpublic Enterprises, further deferring the effective date of FIN 48 for eligible nonpublic entities to annual financial statements for fiscal years beginning after December 15, 2008.

These two deferrals were intended to allow the FASB the time to provide additional guidance for pass-through entities and not-for-profit entities on how to apply FIN 48 as well as provide nonpublic entities additional time to prepare for the eventual requirement. The FASB considered limiting the scope of the deferrals to pass-through entities and not-forprofit entities but decided that for purposes of simplicity, the deferrals applied to all nonpublic entities unless the nonpublic entity was consolidated with a public enterprise that applied U.S. GAAP or the nonpublic entity had already applied the recognition, measurement, and disclosure provisions of FIN 48 (FASB ASC 740-10) in their financial statements.

Following recommendations of the Private Company Financial Reporting Committee (PCFRC) and other key stakeholders, the FASB developed guidance on how FIN 48 (FASB ASC 740-10) applies to pass-through entities and not-for-profit entities. The PCFRC also made recommendations to reduce the disclosure requirements currently within FIN 48 (FASB ASC 740-10) as these were onerous for private enterprises and not useful to users of their financial statements.

Private enterprises often possess characteristics that will present additional challenges not as commonly addressed by their public enterprise brethren:

• Specific issues related to income attribution for flow-through entities
  
• Time consuming identification process, especially for enterprises with consolidations, acquisitions, and significant state or international operations
  
• Lack of sufficient internal tax or U.S. GAAP expertise
  
• Nonexistent or minimal internal controls for tax processes
  
• Poor documentation of tax positions taken by the organization
  
• Limited tax authority history on which to base conclusions
  
• More aggressive tax positions taken historically

On May 18, 2009, the FASB released Proposed FSP No. FIN 48-d, Application Guidance for Passthrough Entities and Tax-Exempt Not-for-Profit Entities and Disclosure Modifications for Nonpublic Entities, to propose amending FIN 48 (FASB 740-10) and provide guidance that addressed the concerns of the PCFRC and its constituents. The proposed changes in FIN 48-d were incorporated into FASB ASU 2009-06 and FASB ASC 740-10 has been amended making it certain that nonpublic enterprises must comply with FASB ASC 740-10 in their first annual financial statements issued for the fiscal year beginning after December 15, 2008.

Why the conversion from FIN 48 to FASB 740- 10? On July 1, 2009, the FASB embarked on the FASB Accounting Standards Codification (ASC) initiative. This is a structural overhaul of U.S. GAAP that converts the standards into a topical model that is effective September 15, 2009 for interim and annual periods. We now have a single authoritative source of nongovernmental U.S. GAAP.

All entities are subject to FASB ASC 740-10 even if the only tax position in question is the entity’s status as a passthrough entity or tax-exempt not-for profit organization.

Scope

The additional guidance issued by the FASB in ASU 2009-06 applies to the financial statements of all nongovernmental entities presented in conformity with U.S. GAAP. This includes nonpublic enterprises as defined in FASB ASC 740-10-20 as any entity that does not meet the following criteria for a public company:

“a). its debt or equity securities are traded in a public market, including those traded on a stock exchange or in the over-the-counter market; b). it is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets; or c). its financial statements are filed with a regulatory agency in preparation for the sale of any class of securities.”

The FASB used the issuance of ASU 2009-06 to reaffirm that accounting for uncertain tax positions are applicable to all entities, including tax-exempt not-for-profit entities, pass-through entities, and entities that are taxed in a manner similar to pass-through entities such as real estate investment trusts and registered investment companies as originally stated when FIN 48 (FASB ASC 740-10) was issued in July 2006.

In addition to clarifying the applicability of FASB ASC 740-10, the FASB provided additional guidance and illustrative examples surrounding three significant issues plaguing pass-through entities and tax-exempt not-for-profit entities:

1. Is the income tax paid by the entity attributable to the entity or its owners?
2. What constitutes a tax position for a pass-through entity or as a tax-exempt not-for-profit entity?
3. How should accounting for uncertainty in income taxes be applied when a group of related entities comprise both taxable and nontaxable entities?

In response to the concerns lodged by the PCFRC and their constituents, the FASB decided to reduce the disclosure requirements for nonpublic entities.

Identification

FASB ASC 740-10 applies to all tax positions. An enterprise must evaluate all material tax positions in all jurisdictions for all open years in order to evaluate whether tax positions subject to exam are uncertain. Essentially, the organization is developing a cumulative tax risk portfolio limited to income taxes that must be monitored and maintained contemporaneously. FASB ASU 2009-06 modifies the definition of a tax position to include additional language to address tax positions related to pass-through and tax exempt not-for-profit entities. FASB ASC 740-10-20 defines a tax position as a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim and annual periods. A tax position can result in a permanent deduction of income taxes payable, a deferral of income taxes otherwise currently payable to future years, or a change in the expected realizability of deferred tax assets. The term tax position also encompasses, but is not limited to:

• A decision not to file a tax return
• An allocation or a shift of income between jurisdictions
• The characterization of income or a decision to exclude reporting taxable income in a tax return
• A decision to classify a transaction, entity, or other position in a tax return as tax exempt
• An entity’s status, including its status as a pass-through entity or a tax-exempt not-for-profit entity

Common items evaluated in developing an inventory of material tax positions:

• Financial statements and supporting general ledgers and trial balances
• Tax returns filed for all jurisdictions and supporting work papers
• Tax examination history and results
• Tax Calendar
• Documentation of existing tax contingencies and analyses
• Documentation of tax positions for which full benefit is expected
• Significant temporary and permanent differences
• Tax planning strategies
• Tax due diligence reports
• Tax opinions
• Transfer pricing reports
• Legal agreements and contracts
• Information provided from subsidiaries and flow-through entities
• Non-recurring transactions

As part of the identification process, analysis of the materiality threshold and the appropriate unit of account must be considered. Both of these analyses are subjective and can have a significant impact on the scope of the adoption effort as well as create the baseline for future years. The importance of proper evaluation of these steps of the process cannot be underestimated.

Each material uncertain tax position is then subjected to a two step test: recognition and measurement.

Recognition

Once the inventory of material tax positions is completed, the positions need to be evaluated based on whether it is “more likely than not” (MLTN) (greater than 50 percent) the tax position would be sustained under examination. In evaluating whether a tax position meets the MLTN recognition threshold, the organization should evaluate the position based on its technical merits, assume it will be examined and that the examiner has the same information. Unlike FAS 5, Accounting for Contingencies, detection risk is no longer applicable in the evaluation of income tax contingencies.

Measurement

FASB ASC 740-10-30-7 states that “a tax position that meets the recognition threshold is initially and subsequently measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the MLTN recognition threshold shall consider the amounts and probabilities of the outcomes that could be realized upon settlement using facts, circumstances, and information available at the reporting date.”

Nonpublic enterprises will need to implement new processes in order to remain up-to-date on tax legislation, court decisions, and other rulings as well as develop mechanisms for those responsible for the monitoring of uncertain tax positions to be knowledgeable about changes in operations that may impact the evaluation.

In some cases, the determination of the maximum amount that is cumulatively greater than 50 percent likely of being sustained is a simple exercise. In other instances, this may not be so clear and require significant analysis and documentation of a variety of probable outcomes in order to support the measurement of the uncertain tax position. Add to the complexity the need to monitor for new information that may cause a change in the analysis and conclusions in subsequent periods.

Disclosure

While the recognition and measurement principles outlined above apply to all entities, the FASB provided relief to nonpublic enterprises from several of the disclosure requirements in the originally issued FIN 48.

Private entity adoption will likely result in substantial effort, but the adoption and the implementation of a process for monitoring will afford senior management the opportunity to develop a cumulative portfolio of income tax risk and eliminate any potential surprises resident within their income tax compliance and reporting.

FASB ASU 2009-06 eliminated the disclosures required by paragraph FASB ASC 740-10-50- 15(a) and (b) for nonpublic entities. By distinguishing these two subsections as applicable to public enterprises, the disclosure requirements for nonpublic entities are simplified. The disclosure requirement to provide a tabular reconciliation of the total amount of unrecognized tax benefits at the beginning and the end of the periods presented and the requirement to disclose the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate have been eliminated.

Nonpublic entities will still be required to disclose the total amounts of interest and penalties recognized in the statement of operations and the total amounts of interest and penalties recognized in the statement of financial position. They will also need to disclose positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within 12 months of the reporting date. For these changes the following information must be disclosed:

• the nature of the uncertainty;
• the nature of the event that could occur in the next 12 months that would cause the change;
• an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made;
• and a description of tax years that remain subject to examination by major tax jurisdictions.

While the FASB responded to concerns about the burdensome disclosure requirements for nonpublic entities, the simplified disclosure standards will still prove a challenge for organizations not accustomed to performing the level of analysis to create the disclosures.

Process & Controls

Nonpublic entities have not been subjected to the requirements of Sarbanes-Oxley. Many nonpublic enterprises have also not historically been applying the standards of FASB ASC 740- 10. As a result, many nonpublic organizations are ill equipped with processes and controls to ensure proper implementation and continuous monitoring.

Nonpublic enterprises will need to implement new processes in order to remain up-to-date on tax legislation, court decisions, and other rulings as well as develop mechanisms for those responsible for the monitoring of uncertain tax positions to be knowledgeable about changes in operation that may impact the evaluation. Now that it is clear that the FASB will not be issuing any additional deferrals, nonpublic entities need to begin the process of adopting FASB ASC 740-10. Finance executives should not underestimate the level of effort required to comply with the applicable provisions of FASB ASC 740-10. Rather utilize this as an opportunity to gain a deeper understanding of the tax positions taken and the tax implications of how the organization operates. This level of understanding of the enterprise’s cumulative portfolio of income tax risk will provide the opportunity to align this portfolio with the overall enterprise risk management strategy.

Certainty has been achieved…

Now is the time to act.

Information about the Firm can be found at www.TPCtax.com

Click HERE to download a PDF version of this news article.

This communication is for informational purposes only and is not intended to be an analysis or recommendation based on a particular reader’s or entity’s specific facts and circumstances. True Partners Consulting LLC does not assume any responsibility with respect to assessing or advising the reader as to tax, legal, or other consequences arising from the reader’s particular situation. You should consult with your professional tax advisor to discuss the potential application of this subject matter to your particular facts and circumstances. The information contained in this newsletter is based on our understanding of the current tax laws and published tax authorities in effect as of the date of publishing, all of which are subject to change. True Partners Consulting LLC assumes no obligation to update this newsletter for any future changes in tax law, regulations, or other interpretations.

We are required by regulation to inform you that any tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of: (i) avoiding U.S. federal, state, or local tax penalties or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication (or any attachment).

2009 True Partners Consulting Going Green Newsletter

“Green” is indeed the new black. Renewable energy and sustainability seem to be the latest buzzwords. From celebrities to school children to legislators, everyone is now touting the “go green” slogan. In addition to benefiting the environment, going “green” can also benefit your bank account through “green” tax credits. These tax credits are more valuable than tax deductions, because credits directly reduce dollar for dollar the amount of taxes owed to the government. Several federal and state tax credits are available as incentives to encourage corporations and individuals to do their part in reducing their carbon footprint.

Click HERE to view the complete Going Green Newsletter

TPC’s Tampa office was listed 3rd on Florida Trend’s Best Small Companies to Work for 2009 list.  As well as placing 3rd True Partners was one of the top companies in 7 of the 8 categories that were surveyed.  To find out more about the Florida Trend and to read the article please visit their website at www.floridatrend.com/best_companies.asp

Since June 2009 RICHTER is the German member of TRUE PARTNERS INTERNATIONAL NETWORK and
continues its expansive strategy also on global terrain.

TRUE PARTNERS CONSULTING LLC is a young and fast growing world class and already leading tax and business advisory service firm founded by former partners from „big four” accounting firms in response to market demand for an independent, excellent tax services firm. TRUE PARTNERS CONSULTING LLC provides clients with tax and business consulting, without the burdens and potential Sarbanes-Oxley related conflicts that other companies offering auditservices face. In just over three years TRUE PARTNERS grew to approx. 40 managing directors and over 225 consultants and staff. TRUE PARTNERS CONSULTING LLC is represented through seven offices in the US and in London and through independent affiliates and members of its TRUE PARTNERS INTERNATIONAL NETWORKS in China, France, Italy, Spain and now Germany. The network will be expanded to major countries fastly in the near future.

RICHTER managing partner Wolfgang Richter comments: „The new network enables us to distinguish ourselves on international business and to provide our clients with the excellent tax advice on a global basis.”

Claus Lemaitre, RICHTER Partner in charge for the cooperation with True Partner says: „Thank to our new
membership at TRUE PARTNERS we will succeed to extend our cross-border-business and to meet the expectations of our international clients”.

International tax specialist strengthens firm’s expertise

LOS ANGELES – May 5, 2009 – True Partners Consulting LLC today announced that Dinesh Kakwani has joined the Los Angeles office as a Managing Director.

“Our tremendous growth over the past three years largely has been fueled by clients that find themselves in need of counsel from experts with a thorough understanding of international tax issues,” said Cary McMillan, chief executive officer of True Partners. “Many of our U.S. clients are expanding, or considering possible expansion, within several different countries, which is why we continue to seek top talent like Dinesh, whose expertise will prove invaluable for both U.S.-based companies and multinational corporations that do business abroad.”

Kakwani specializes in providing international tax consulting services to a broad range of U.S., multinational and foreign-owned clients who do business as single entities or in joint venture. He has extensive experience with a wide range of complex tax matters relating to the electronics, solar, and telecommunication industries.

“I’m pleased to join the leadership team of this firm, as my experience in a wide range of tax planning and tax structuring advice has been welcomed by a number of diverse clients, and I look forward to serving an expanded set of clients in my new role,” said Kakwani. “It will be exciting to continue leveraging my background on behalf of clients, as well as my in-depth knowledge of debt financing techniques and international tax consulting.”

Prior to joining True Partners Consulting LLC, Kakwani was a Principal in KPMG LLP’s Phoenix office where he specialized in the area of International Corporate Services. He has more than 11 years of experience in tax planning and structuring of transactions for public and privately held clients. He started his career with Arthur Andersen LLP in the Long Island office in 1997. Kakwani has also taught U.S. and Europe debt financing techniques at internal KPMG training sessions.
A graduate of Hofstra University, Kakwani received a bachelor of business administration with highest honors in accounting.

About True Partners Consulting LLC

True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley created conflicts inherent in offering both tax consulting and audit services. The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy. The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.
The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa Bay, Fla.; Boston; and London. There are also member firms in Paris; Turin, Italy; Barcelona, Spain; and Beijing, China; through the True Partners Consulting International network. Find additional information at www.tpctax.com

Road To Recovery: Professional Services
03/20/09

True Partners Consulting's CEO Cary McMillan featured in Chicago Crain's Road to Recovery: Proffessional Services.  To watch the video, Click Here.

New approach for advice merchants
By Steven R. Strahler
March 16, 2009

True Partners Consulting LLC doesn’t wow clients with a wide range of services or whack them with non-negotiable hourly billing rates.

The Chicago-based firm sticks to corporate tax advice and will accept fees based on a client’s tax savings, even in the form of company stock.

“Being able to share some of the risk helps you get your foot in the door,” says Cary McMillan, 50, a former Andersen partner and Sara Lee Corp. executive who founded True Partners three years ago.

The firm reflects a new approach for consulting, legal and other professional services firms contending with the deepest recession in 25 years.

An era of runaway growth is ending and with it the big increases and hiring and compensation that drew a generation of young talent to these firms. In a maturing industry, clients are gaining new leverage to demand lower prices and better results.

Most vulnerable to market changes are large, diversified firms with high overhead. Many of the winners in the post-recession era will be specialized outfits with fewer but more-experienced employees.

Firms accustomed to charging high fixed fees will have to accept billing arrangements more closely tied to the outcomes they produce for clients. And an industry that hired thousands of highly degreed young professionals annually at ever-higher pay rates will pare back hiring and salaries.

The rapid growth of professional services firms over the past three decades reshaped Chicago’s economy, providing not only more jobs but higher-paying ones than most in the shrinking manufacturing base. But after rising 7.8% to $43.4 billion last year, the Chicago-area services sector will see growth slow to 2.2% this year before increasing to 4.9% in 2010, Moody’s Economy.com predicts.

Despite the recession, the share of local gross metropolitan product contributed by legal, accounting and other professional services firms will continue to grow — to nearly 11% by 2010, more than triple the 3.6% share in 1978, according to Pennsylvania-based Economy.com.

But the days of expanding at a healthy multiple of overall economic growth are over. Professional and business services firms in Illinois shed nearly 7,000 jobs in January, second only to the 11,000 lost in manufacturing, according to the Illinois Department of Employment Security.

“It’s hard to look through our client base and see anyone that’s not affected by the situation we’re in,” says Chuck Allen, CEO of Oakbrook Terrace-based accounting firm Crowe Horwath LLP, which shed 150 employees, or about 6% of its workforce, in November and December.

Wages for accountants, tax preparers and bookkeepers, which have increased 37% over the past five years, are projected to rise only 1.6% this year and less than 1% next year.

At True Partners, Mr. McMillan says partners make less than they might at the Big Four accounting firms, but they also supervise less work. The experience level of his veteran crew is a key selling point for corporate clients tired of underwriting the training of young auditors and consultants at the Big Four, he adds.

With revenue expected to climb as much as 35% this year, to $43 million, Mr. McMillan says the firm will add 50 more professionals to its staff of 225 consultants. On a recent assignment, True Partners was paid 20% to 30% of the first-year portion of millions of dollars it was able to knock off a client’s local multiyear tax bill. So far, the firm has not been offered stock in any client.

In some fields, demand will shift to independent contractors with less overhead, which are able to undercut large consulting firms burdened by employee costs.

“There’s huge pressure on pricing — 20% (discounts), maybe more,” says Peter Bendor-Samuel, CEO of Dallas-based outsourcing consultant Everest Group.

WORLD-WEARY

Global firms like information technology consultant Accenture and accounting giant KPMG LLP, whose geographic diversity is considered an asset, will be hurt by the worldwide slowdown — which could last longer than the U.S. recession — and stronger dollar. KPMG in January polled its 11,000 European workers to see who, if given the opportunity, would cut their hours or take time off. KPMG declines to comment.

Corporate clients are cutting technology budgets by 5% to 30%, killing the old staffing model of IT consultants working on-site for two or three times what inside employees cost, says Mark Jeffery, managing partner of Evanston-based consultant Agile Insights LLC.

“There’s a real opportunity for upstarts like myself,” he says.

With three-fourths of corporate chief legal officers planning to cut costs this year, Economy.com predicts that Chicago-area legal industry output will dip slightly to $7.51 billion, the first decline since 1995. Employment, meanwhile, is expected to fall 3% to 44,600.

“I think the demand for law services is going down, even without the recession. People are very conscious of the cost. They’re cutting, cutting, cutting,” says Roger Stelle of Meltzer Purtill & Stelle LLC, a 25-lawyer firm in Schaumburg with banking and developer clients. It laid off two attorneys last fall. “This is a very trying time.”

The recession, coupled with technology and outsourcing that has commoditized many legal services and pressured billing rates, has undermined the pyramid structure of many big law firms — where an average of three associate attorneys support each partner.

“The lowest part of the pyramid is being shed away,” says Hugh Totten, a Chicago lawyer hoping to capitalize on industry changes. “A lot of what we do now can be replicated by pressing a button, like a will. Don’t think that is not going to get into other areas of the law.”

Chicago’s mightiest legal names — Sidley Austin LLP, Kirkland & Ellis LLP, Mayer Brown LLP and Jenner & Block LLP — are dumping attorneys. Another large firm, DLA Piper LLP (US), is broadening its partnership base by requiring non-equity partners to pay up to become full-fledged partners, in effect reducing the firm’s credit risk.

“A lot of what we do now can be replicated by pressing a button, like a will,” says Chicago lawyer Hugh Totten. “Don’t think that is not going to get into other areas of the law.”

“Without question, firms are going to be smaller,” says New York-based legal consultant Bruce MacEwen. “There will be fewer ‘full-service’ national law firms.” Pressure will build on state bar associations, he adds, to allow law firms to attract outside investors.

‘YET-TO-BE DEFINED’

Leaders at Chicago’s major law firms say it’s too early to forecast exactly what will happen to their traditional operating and billing methods. “It is likely that law firms will change in some as-yet-to-be-defined fashion,” says Kirkland Senior Partner Kevin Evanich.

Jenner Managing Partner Susan Levy says, “Some clients have told us, ‘Here’s a matter, but this year let’s not try to spend money.’ A lot of clients are seeking discounts, more than before.”

To win business, more law firms will have to impress companies like FMC Technologies Inc. in Houston, which withholds up to a quarter of what it owes for legal services before deciding at yearend whether firms deserve full payment or even a bonus. FMC Technologies’ legal expenses have declined steadily as a percentage of revenue since 2001, says General Counsel Jeffrey Carr.

Meantime, law firms increasingly are agreeing to fixed fees, which allow clients to quantify costs. “We’ve been talking about this for years, but the rubber is meeting the road now,” says Baxter International Inc. General Counsel Susan Lichtenstein in Deerfield.

Mr. Totten’s Valorem Law Group LLP is adopting contingency-fee practices more commonly associated with personal injury attorneys. In one case, Valorem gets paid only if client Kayak.com collects unpaid bills from a major vendor, says Karen Klein, the travel site’s Chicago-based general counsel.

In another case, Valorem’s ultimate compensation is based on the outcome of a breach-of-contract suit in federal court here. If client RF Surgical Systems Inc. of Bellevue, Wash., loses, Valorem accepts a 50% discount. If Valorem’s defense succeeds, the law firm gets stock options in RF Surgical, which makes a product that tracks the location of surgical sponges in patients.

“They’re taking a gamble,” RF Surgical CEO Kevin Cosens says. “They’re truly a partner because they’ll have an equity position in our company.”

True Partners Consulting is the overall conference sponsor for this year's 2009 UPPO Annual Conference. Cathleen Bucholtz, Samantha Peterson and Michelle Moloian from TPC Los Angeles will be attending the conference and are all actively involved in various UPPO committees including Education and Members as Mentors. Stop by the TPC booth to visit Cathleen, Samantha and Michelle as well as the rest of the TPC Unclaimed Property Team.

To register and learn more about this event, click here.

Join TPC Los Angeles on Saturday, May 9, 2009 for the 16th Annual Entertainment Industry Foundation REVLON Run/Walk for Women Los Angeles.

Be inspired as you stand shoulder to shoulder with 50,000 participants from all walks of life, united by the common dream of finding a cure for women’s cancers.

Be part of Los Angeles’ biggest fundraiser for women’s cancers – distributing nearly $55 million over the past 15 years.

To register and learn more about this event, click here.

Best Place to Work #9 True Partners

Why it’s a Best Place to Work: In an industry that forces many to spend their days alone at their desks, knee-deep in data, True Partners believes it’s essential to create opportunities for staffers to interact. So there’s free beer and wine after 5 p.m. and a big-screen TV, Nintendo Wii game system and pingpong table for quick escapes from the daily grind. The amusements offer staffers a chance to mingle, share ideas and learn from one another.

But there’s one office perk money can’t buy: True Partners won’t hire anyone who can’t pass the collegiality test and will not keep anyone on board who doesn’t display respect and selflessness toward peers.

“There’s always going to be people who are not nice,” CEO Cary McMillan says. “We just decided that they can’t work here.”

To see the online version of this article, Click Here.

Consultants Learn to Weather the Economic Storm at Consulting magazine’s Consulting Summit 2009

Consultants nationwide are signing up now for the “Consulting Networking Event of the Year” — Consulting Summit 2009, May 6 at the Union League Club of Chicago. There, they will connect with their professional peers and explore today’s urgent theme: “Practical Solutions to Today’s Market Pressures.”

Other topics to be explored at Consulting Summit 2009 include: the current state of the consulting industry; domestic and international macroeconomic indicators and trends; economic policy programs and stimulus responses; strategies for surviving — and even thriving — in the economic downturn; and secrets currently used at Hitachi for managing talent through tough times.

More information is available at www.ConsultingMag.com/Summit2009

Guangdong Provincial Local Taxation Bureau Delegation for Large Enterprise Tax Management from China will visit TPC Chicago Office

Guangdong Provincial Local Taxation Bureau is a functional department of the Guangdong Provincial Government, responsible for the collection and administration of local taxation of Guangdong Province of China. By the end of 2007, the local tax revenue levied by Guangdong Provincial Local Taxation Bureau has ranked the first in China for consecutively 14 years, more than one seventh of the total country revenue in the same period.

The delegation is hosted by the 21st Century Institute, a not-for-profit organization based in Chicago, Illinois, which promotes the exchange of knowledge, culture, business, and human resources between China and the U.S. The delegation is made up of 23 administrators and high- ranking officials from Guangdong Provincial Local Taxation Bureau. They have expressed strong interest in visiting True Partners Consulting to learn US Corporate Tax System and Management in the U.S. It is a great pleasure of TPC to have them here. TPC is looking forward to meeting them.

Raymond Montero, Joseph McTague and Andrew Jackson add strength to leadership team

CHICAGO – November 12, 2008 – True Partners Consulting LLC today announced the addition of three new managing directors: Raymond Montero, 47, and Joseph McTague, 47, in the Los Angeles office, and Andrew Jackson, 48, at True Partners Consulting (U.K.) LLP in London, the rapidly growing firm’s first wholly owned office outside the United States.

"As part of our growth strategy, we continue to recruit some of the industry’s most talented and knowledgeable professionals to focus on our clients’ needs,” said Cary McMillan, chief executive officer of True Partners Consulting. "Raymond, Joseph and Andrew bring deep knowledge of complex tax issues in their respective regions and will infuse fresh energy and specialized expertise into our leadership teams in the L.A. and London offices."

Montero brings more than 23 years of experience with corporate and international tax consulting in the United States, United Kingdom and Mexico. In 2004, Montero formed a Professional Corporation to counsel public and private clients about cross-border structuring, transfer pricing related matters, outbound international planning and consultation relating to foreign tax credit.

Previously, Montero was a partner for six years in KPMG’s International Corporate Services (ICS) practice based in Los Angeles. Before joining KPMG, he was a partner with Arthur Andersen in London, where he led the firm’s U.S. Tax Practice based in London. A member of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants, Montero has been a featured speaker at a number of industry seminars.

McTague has been a featured speaker at local, regional and national tax and economic development conferences on issues relating to income and other tax credits and business incentives, and he has led numerous focus groups relating to tax and client relations issues and shared his views on tax credit and business incentive issues with lawmakers in a number of states. McTague has been extensively involved in the California Enterprise Zone program and has worked diligently to successfully influence tax and audit policy at the agency and legislative levels. A graduate of the University of Florida, McTague earned a bachelor’s of science degree in telecommunications.

A Value Added Tax (VAT) Partner with True Partners Consulting’s London office, Jackson brings nearly 20 years experience with Big 4 firms and smaller practices. He specializes in providing indirect tax advice across a range of sectors, both private and public, and has been involved in a wide range of cross border transactions advising as part of a multidisciplinary team.

Previously, Jackson worked for HM Revenue & Customs for seven years as a VAT specialist. He has written and lectured on indirect tax issues, with a particular emphasis on property and financial service issues, and graduated from the London School of Economics.

True Partners Consulting (U.K.) LLP advises companies based in the United Kingdom, as well as multinational companies doing business there and other European markets, on a range of tax and business issues including transfer pricing, VAT, cross border transactions, structuring business operations and reorganizations. The office also undertakes all local compliance requirements.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley created conflicts inherent in offering both tax consulting and audit services. The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy. The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa Bay, Fla.; Boston; and London. There are also member firms in Paris; Turin, Italy; Barcelona, Spain; and Beijing, China; through the True Partners Consulting International network. Find additional information at www.tpctax.com.

Smart Business
Insight. Advice. Strategy
October 2008

The ol’ college try
How to target the best candidates to fuel organic growth
By Patrick Mayock

Cary D. McMillan
CEO and founding partner, True Partners Consulting

When Cary McMillan and his peers were choosing a name for their corporate and business tax consulting firm, they wanted something that conveyed a collegial atmosphere of interdependence.

“True Partners Consulting — we picked that name on purpose because we want to be partners with our clients, we want to be partners with our people, we want our people to be partners with each other,” the founding partner and CEO says.

To facilitate that culture, McMillan has grown the 175-employee firm organically, bringing in new hires one at a time. The practice has allowed him to mold employees into active participants within the collaborative environment and has helped boost revenue from $8 million in 2006 to $23 million in 2007.

Smart Business spoke with McMillan about how to target the best candidates to fuel successful organic growth.

Q. What is the benefit of organic growth?

While it’s a lot faster to grow through acquisition, I think it’s more effective to grow organically if you can.
 Building a culture of collegiality, interdependence, quality, trust — all the words that sound good on paper — is hard to do, but it’s a lot easier to do if you bring these people in one at a time. If you bring people in, you get a chance multiple times to reinforce the values and vision of the company.

You get to do it when you’re recruiting them, you get to do it when they come here one on one with them, and they get to participate in the building of the culture.

Q. How do you find the best employees to facilitate organic growth?

You have to make sure that the home front is secure. The most important part in recruiting is to make sure that you’re creating the right culture, the right environment, the right atmosphere with the people that you already have.

The best way to find the best employees is to have a group of employees that already work for you being your real disciples out there, and when you send your people out to help recruit, really the best example of what you’re looking for is who you already have.

Q. Where do you look for these employees?

We would love to get everybody right out of their university degree, so people that have master’s in accounting, master’s in tax or people with law degrees, that’s who we recruit out of college. Some of them come here as interns to get work experience before they graduate, and we’re very fortunate in that virtually every intern that we’ve brought in has come back as a full-time employee after graduation. Some we bring in directly as they’re graduating from college.

The inexperienced people are people that we get to teach. It’s the most organic of the organic growth. We hire people, and we teach them about our culture, our values, our vision, our beliefs, and they’re not bringing a lot of baggage with them.

Q. What is a common recruiting mistake?

People, when they recruit, they tend to try to find people who look like themselves — similar backgrounds, similar experiences, similar demographics even. I think the most important thing to remember is that the success of America is more dependent upon diversity and the integration of immigrants into our society than any other country in the world.

When you go on campus, you have to have an extremely open mind, to look at candidates who perhaps don’t have the same background as you and, in fact, in some respects, their backgrounds may be difficult for you to relate to. They might actually be from a foreign country themselves, or they don’t speak English as their primary language, or they didn’t participate in the same activities you did in college.

Q. How do you make sure you’re targeting the best graduates?

The most important thing is to spend time on campus with the staff and the faculty. Help teach classes, help give presentations in front of the honors societies, pitch in — the schools are always looking for firms to help support the activities to make the students’ and the faculty’s life more interesting on campus.

Then you’re very likely to develop a good relationship with the placement department, with some of the key faculty, with some of the professional honorary societies. Those organizations and people can really get you in touch with the best students, and you get a chance to interact with them in a more informal way than the kind of high-stress, one-on-one interview.

If you just think you’re going to go down to some school and somebody’s just going to give you the secret handshake and tell you, ‘Here are the top five students. Go get ’em,’ you’re crazy, because it doesn’t work that way.

For those that put in the effort, you get the reward.

To see the online version of this article, Click Here.

Rapidly growing firm establishes offices in China, Italy and Spain

CHICAGO – Sept. 10, 2008 – True Partners Consulting LLC today announced that True Partners Consulting International Network, an association of tax consulting firms in select markets around the world, has reached agreement with three new affiliates in key international markets.

The three new member firms will join TPCI’s growing affiliates network in Beijing and Shanghai, China; Barcelona, Spain; and Turin, Italy; the company announced. The affiliates, which will be identified as “Member Firms of the True Partners Consulting International Network,” are:
•True Partners Consulting International (China) "挚盟咨询";
•Toda & Nel-lo Abogados, (Spain); and
•Studio Manzoni Pagliero Vanz e Associati (Italy).

“It is thrilling to further strengthen our ability to support our clients in the important global markets where they do business,” said Cary McMillan, chief executive officer of True Partners Consulting. “In less than three years of existence we have made aggressive efforts to support our clients wherever they do business and we’ll continue moving in that direction as we look ahead.”

The three new member firms of True Partners Consulting International will offer a powerful blend of services that True Partners Consulting clients can utilize in key international financial markets, according to McMillan.

True Partners Consulting International – China, is being formed by the owners of Hua-Ander, one of the first partnership accounting firms approved by the Ministry of Finance of the People's Republic of China. Hua-Ander is a full-service accounting, auditing and attestation firm. The new firm will provide tax services. True Partners China, will be led by Wang Guoqi, who has a rich knowledge of tax and international accounting, finance and auditing, and extensive experience in servicing multinational businesses. Guoqi and his partners have served a number of foreign investment enterprises (FIEs) and hi-tech ventures in China in the fields of business services, IFRS audit and review, due diligence, financial advisory, and management consultancy.

Founded in 1991, Toda & Nel-lo Abogados is a mid-sized Spanish firm in Barcelona, also servicing the rest of Spain (especially in Madrid), that specializes in tax & legal services. Serving clients throughout Spain, the firm’s main practice areas are taxation, company & commercial law, litigation, real estate, administrative law and labor law, and for clients in a variety of industries, such as administration (public and semi-public), real estate, pharmaceutical, health, chemical, energy and finance. The founding partners are Ignacio Toda, public prosecutor (abogado del Estado) on voluntary leave, and Ricard Nel-lo. Joan Pons is the partner who leads the tax department and will head the firm’s work with the TPC International Network.

Studio Manzoni Pagliero Vanz e Associati has been providing tax and business legal assistance for nearly four decades to select domestic and foreign clients who are leaders in their fields. The firm has significant experience in M&A transactions, business reorganization and enterprise appraisals, and its lawyers represent clients in disputed tax law matters in all degrees of Italian jurisdiction, including the Supreme Court of Cassation (Corte di Cassazione). Founded by Michele Pagliero, the firm was enlarged to Ignazio Manzoni and Giuseppe Vanz, professors of tax law at the University of Turin, and to other professionals. Natalia Operti, partner of the firm, will lead the work with the TPC International Network.

Through TPC International (a network of independently owned tax advisory firms), True Partners also has an affiliated member firm in Paris, ArtemTax International. Its first wholly owned office outside the United States is located in London and named True Partners Consulting (U.K.) LLP.

About Hua-Ander Certified Public Accountants
Now in its 11th year, Hua-Ander’s international expertise and experience, facilitated by strong English communication abilities, gives Hua-Ander an advantage in servicing foreign entities in China. The knowledge and insight into the practice of local tax and other regulatory requirements enables the firm to provide practical solutions. High quality services, personal attention to each client and issue, and reasonable fees, make Hua-Ander the best cost-effective alternative to the 'Big Four' in China.

About Toda & Nel-lo Abogados
Founded in 1991, Toda & Nel-lo Abogados offers clients 18 professionals with more than 290 years of combined experience in multidisciplinary and diverse tax and legal issues, including work with “Big Four” advisory firms, the Spanish government and major Spanish universities. Toda & Nel-lo Abogados always provide clients with traditional values, professionalism, integrity, confidentiality, honesty, and ethics, to ensure their objectives and needs are met.

About Studio Manzoni Pagliero Vanz e Associati
Established in 1971, Studio Manzoni Pagliero Vanz e Associati provides tax and business legal assistance to select domestic and foreign clients who are leaders in their fields. Made up of seven partners and eleven professionals with law and economics expertise, the firm works to create customized solutions for clients, leveraging a multidisciplinary and global approach. Studio Manzoni Pagliero Vanz e Associati also maintain close working relationships with Turin University and the academic community, and some of its members teach and/or contribute to legal and economic publications.

About TPC (UK) LLP
TPC’s London office provides tax and business advice and specializes in transfer pricing, cross border tax planning, structuring and reconstructions, start up operations and VAT and Customs Duties advice throughout the EU. With its expanding professional team, the London office offers constructive tailored advice and also provides cost effective tax compliance services. For a complementary expert tax consultation, visit www.tpctax.com

About ArtemTax International
ArtemTax International is a tax law firm specializing in inbound and outbound transactions. The team is at the forefront of tax structuring, having implemented one of the first cross-border mergers between two entities in France and in the Netherlands that encompasses tax and accounting matters. ArtemTax International is characterized by its independent and personalized approach, without the restrictions of Sarbanes-Oxley and the French law on financial securities (“Loi sur la Sécurité Financière”), and by granting clients access to a dedicated partner from start to finish, ensuring the highest level of service. The team also differentiates itself through its global approach in taking into consideration financial, accounting, and economic services.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley created conflicts inherent in offering both consulting and audit services. The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy. True Partners provides a wide range of services to its multinational clients, including global structuring, transfer pricing, repatriation planning, international compliance and treaty planning. The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

True Partners has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa, Fla.; Boston; and London. Find additional information at www.tpctax.com.

True Partners looks overseas for alliances

By: Steven R. Strahler Sept. 09, 2008

(Crain’s) — True Partners Consulting LLC is adding new affiliates in China, Spain and Italy to an international network that could grow to account for 20% to 30% of the Chicago-based tax consulting firm’s business.

Founded three years ago by Cary McMillan and other Arthur Andersen alums, True Partners expects to report as much as $38 million in revenue this year, up from $22 million last year and about five times the $7.8 million it posted in 2006, Mr. McMillan said.

The overseas deals are aimed at better serving the consulting firm’s clients as they expand abroad.

“This is the first wave,” Mr. McMillan said. “We’ll have another wave, probably after the calendar new year.”

True Partners will share work and staff with a firm being rechristened True Partners Consulting International-China and with Toda & Nel-lo Abogados in Spain and Studio Manzoni Pagliero Vanz e Associati in Italy. The firm already has an office in London and an affiliate in Paris.

“The big buzz today among all the 100 top accounting firms is all about providing global services,” said Allan D. Koltin, CEO of Chicago-based industry consultant PDI Global Inc.

True Partners is among the startups that have benefited from federal regulatory efforts to separate auditing and consulting practices at accounting firms, which send referrals to True Partners, Mr. McMillan said. Among its biggest clients are NBC Universal, Starwood Hotels & Resorts, CDW Corp. and Verizon Wireless, it said.

“It’s the right concept at the right time,” Mr. Koltin said. Like Chicago’s Huron Consulting Group Inc. and other companies spawned by Andersen’s demise, he added, True Partners “picked out a very narrow niche in the marketplace and was able to go out and service it.”

Mr. McMillan, 50, started True Partners after leaving Andersen in 1999 and heading to Sara Lee Corp., where he began as CFO and left in 2004 as CEO of branded apparel. True Partners has about 175 consultants and figures to increase that number to between 400 and 500 by 2011, when revenues are projected to reach $70 million to $100 million, he said.

August CEO Spotlight: Cary D. McMillan

World Business Chicago continues to interview the city's business leaders on why they chose Chicago and what they love about the city. This month the spotlight is on Cary D. McMillan, CEO of True Partners Consulting LLC.

How long have you lived in Chicago?
Twenty-eight years. After graduating from the University of Illinois, I followed my girlfriend and college fraternity brothers here. It was scary for someone from downstate Illinois! But I was particularly helped by my colleagues at Arthur Andersen. At that time they seemed to be omnipresent in everything good about Chicago.

What is your favorite place to visit in Chicago?
Well it has certainly changed over the years, Rush Street, Lincoln Park, the neighborhoods. Those would be some of my past favorites. Today, without question, my favorite place is Millennium Park. You can find spots with peaceful, beautiful views. Or you can stand on the Promenade and watch all the kids enjoying the Crown Fountain. You can smile as thousands of people flock to the Bean (Cloud Gate). A mostly desolate railroad yard has been magically transformed into a world-class wonderland with awesome views of Michigan Avenue and the Art Institute. And it is all free!

What is the best thing about running a business in Chicago?
Businesses — all businesses — are about people. Attracting, retaining and developing people. We started True Partners two and one half years ago. We intentionally located the headquarters here in Chicago.

Why? The ability to recruit top tax professionals both experienced and right out of college is better here than anywhere in the U.S. We are surrounded by world-class universities: U of I, Notre Dame, Loyola, DePaul, Indiana, etc. And those graduating students overwhelmingly desire to begin their professional careers here. And about half of them were not originally from the Chicagoland area.

And experienced professionals love the great client base here. When companies like Boeing and MillerCoors select Chicago that just supports our client base. They also love the great mass transportation, two world-class airports and school choices for their children. The work ethic of people in the Midwest is well-known. Professional services firms succeed or fail in part based on that work ethic. No one works harder than people in Chicago.

What do you think the city could do to enhance the business environment?
We are the best place for business. So we should have the highest goals and standards.

First: mass transportation. We have a wonderful collection of systems. We need significant investment to improve and expand them. All I read about is insignificant investment to maintain what we have. Standing still, accepting what we have as good enough is surely a recipe for being passed by.

Second: airports. As good as O'Hare and Midway are they are also arguably the most valuable assets a city in the center of the country has. Especially in the age of the knowledge worker. At True Partners we can serve clients easily on either coast. That is something New York and California will never, ever have. Let's not blow that remarkable advantage!

Finally, we need to invest in our youth — our future workforce and citizens. You can't have a company without great employees. And you can't have a great city when a large portion sits, economically, on the outside looking in.

How would you describe Chicago's business community?
A great partner with the city. Enthusiastic about our future. And proven leaders in putting their money and time behind improving the cultural, educational and economic lives of all the people who live here. The two best examples of this are Arthur Andersen and John Bryan.

I worked at Andersen for 19 years. From the first day on the payroll, when we all enrolled in giving our fair share to the United Way to the last day I was there, you always knew of Andersen's incredible support for the civic institutions of Chicago.

I learned that from the great senior partners I worked for there — Jim Kackley, Bob Allgyer, Deb DeHaas and many more. You not only were expected to give your time and money, you were expected to provide leadership.

What would an ideal Saturday afternoon in the city be for you?
I would be with family or friends who don't know the city. Perhaps we start in Lakeview for breakfast at Ann Sather. Then we would bike through Roscoe Village and over to Bucktown and Wicker Park.

Grab lunch in West Town at Wishbone. Be amazed by all the people and activity in the newly booming west and near south loop developments.

Head over to the Museum Campus. Check out the Aquarium. Enjoy the lakefront. Bike back to Millennium Park for a free concert at the Pritzker Pavilion. End the night at Navy Pier with the best view anywhere and fireworks to boot.

And we never even visited Michigan Avenue, the Gold Coast or Lincoln Park!

To see the online version of this article, Click Here.

Corporate tax, intellectual and real estate property specialist strengthens firm’s expertise

LONDON – August 27, 2008 – True Partners Consulting LLC today announced Iain Robertson, 52, has joined True Partners Consulting (U.K.) LLP in London, the rapidly growing firm’s first wholly owned office outside the United States.

“Our tremendous growth over the past two and a half years partially has been fueled by clients that find themselves in need of counsel from experts with deep knowledge of European tax issues.  Many of our U.S. clients are expanding, or considering possible expansion, within Europe, which is why we continue to seek top talent like Iain, whose expertise will prove invaluable for both UK-based companies and multinational corporations that do business there,” said Cary McMillan, chief executive officer of True Partners.

Robertson specializes in a range of corporate tax issues and has advised companies of all types including start ups, large private groups and larger companies with a presence in Europe, the United States and the Far East. His areas of expertise include intellectual and real estate property planning and sales, disposals and reorganizations.

“My experience in developing innovative solutions customized to clients’ particular needs and helping businesses meet their filing requirements effectively in an increasingly challenging environment will be a great complement for the London office,” said Robertson. “I’m excited to further build upon my accomplishments and help support this ever-growing, talented team here in London.”

Prior to joining True Partners Consulting, Robertson worked at one of the Big Four firms for 11 years, and since 1999 he has served as a partner in both a national firm, where he was National Head of Tax Technical for four years, and at a well-respected regional firm present in London.

Robertson was educated at Cambridge and Oxford Universities and is qualified as a fully trained Inspector of Taxes. He has authored and presented about tax matters at various venues and serves as a technical committee member at the Chartered Accountants Tax Faculty. True Partners Consulting (U.K.) LLP advises companies based in the United Kingdom, as well as multinational companies doing business there and other European markets, on a range of tax and business issues including transfer pricing, VAT, cross border transactions, structuring business operations and reorganizations. The office also undertakes all local compliance requirements.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley created conflicts inherent in offering both tax consulting and audit services. The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy. The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa Bay, Fla.; Boston; and London. There is also a Paris office, ArtemTax International, which is the first member firm in the True Partners Consulting International network. Find additional information at http://www.tpctax.com/.

Nancy Barrett, Keith Shaffer and Scott Thomas join rapidly growing office

BOSTON – August 6, 2008 – True Partners Consulting LLC today announced Nancy Barrett, 38; Keith Shaffer, 53; and Scott Thomas, 46, have joined the firm’s Boston office as managing directors.

“We’ve seen a real need for our services in Boston, and we are delighted to be further enhancing our capabilities here through the addition of some of the best and brightest tax and business consulting minds in the industry,” said Cary McMillan, chief executive officer of True Partners. “As the fastest-growing tax firm in the country, we are committed to attracting top talent to serve our top-tier clients, and I’m confident these three leaders will be a tremendous fit.”

Barrett has more than 15 years of experience in both public accounting and the industry, which includes audit defense, FAS 109, tax due diligence, and research and tax planning, with a focus on state and local tax issues. In her new role, she manages the flex staffing service line for True Partners Consulting in New England. In addition to flex staffing, TPC also provides loan staff and direct hire solutions for corporate clients.

Prior to joining True Partners Consulting, Barrett was a managing director with an international public accounting firm. She has also served as income tax manager for a FORTUNE 100 firm, and worked in the corporate tax practices of PricewaterhouseCoopers and Arthur Andersen.

Barrett received her Bachelor of Science degree from Boston University. She is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants (AICPA), the Massachusetts Society of Certified Public Accountants (MSCPA), and the New York Society of Certified Public Accountants. Additionally, she is a regular speaker and contributor to organizations such as Lorman Education Services, a leading provider of continuing education seminars, and the Tax Executives Institute (TEI).

With more than 25 years of tax experience, Shaffer is an expert in corporate taxation and specializes in reviewing the tax postures of large multinational companies and then implementing high value tax planning strategies that have a positive impact on the effective tax rate, cash flow management and shareholder value. He is experienced in business acquisitions, divestitures, reorganizations, due diligence tax issues, and all aspects of income tax accruals, FAS 109 and FIN 48 analysis.

Previously, Shaffer was a tax partner with Deloitte. He received his Bachelor of Science degree from Northern Illinois University and is a member of AICPA and MSCPA.

Thomas has more than 20 years of tax experience serving clients in the areas of manufacturing, retailing, finance, telecommunications, transportation and entertainment. His main areas of specialization include corporate income and franchise tax planning and controversy, which include representing clients in state tax examinations and before the appellate divisions of state agencies, as well as the development, implementation, and maintenance of effective tax rate planning with a focus on the business of clients. More specifically, these services include reviews of existing tax returns, changes to corporate structures, due diligence, and the filing of amended state tax returns. Additionally, Thomas has led numerous sales, employment and property tax engagements.

Thomas joins True Partners Consulting as a multistate tax partner, after serving as the New England regional director of tax for an international accounting firm. Prior to that, he served as a multistate tax partner at Deloitte. In his previous professional experiences, Thomas was based in both Massachusetts and Connecticut.

Thomas received a Bachelor of Arts degree from the University of Connecticut, and a Juris Doctorate and Master of Laws in Taxation degree from the University of Bridgeport’s School of Law in Bridgeport, Conn. He is also licensed to practice law in the state of Connecticut, and currently teaches multijurisdictional taxation for the Bentley College Master of Science in Taxation (MST) program in Waltham, Mass.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes Oxley created conflicts inherent in offering both tax consulting and audit services. The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy. The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa Bay, Fla.; Boston; and London. There is also a Paris office, ArtemTax International, which is the first member firm in the True Partners Consulting International network. Find additional information at http://www.tpctax.com/.

Managing Director’s deep state income tax expertise increases firm’s strength

CHICAGO – May 16, 2008 – True Partners Consulting LLC today announced that Mariano Sori, 44, has joined its Chicago office as managing director.

With 19 years of experience in state tax consulting, Sori will concentrate on state income and franchise tax issues such as jurisdiction to tax, apportionment of income, unitary taxation, business/non-business income, allocation of partnership items, and state filing options.

“We’re pleased to be welcoming Mariano, who will help enhance the Chicago office and make significant contributions to clients across our network,” said Cary McMillan, chief executive officer of True Partners. “We are committed to bringing in top talent to ensure we offer our clients the very best tax and business consulting services.”

Sori will deliver state tax diagnostic reviews designed to provide businesses with an assessment of their state tax position, including the identification of refund and prospective filing opportunities and the reduction of exposure in multiple jurisdictions. As part of his practice, he will perform corporate restructuring projects that assist companies in designing and implementing structural enhancements to minimize their state tax liabilities and generate long-term state tax reductions.

Additionally, Sori will consult on all aspects of state income tax, including participating in mergers and acquisition transactions that evaluate the state tax impact of expanding or diversifying business operations, drafting opinion letters that analyze the state tax consequences of business transactions, and assisting companies with compliance requirements, state tax accrual reviews, and state tax controversy. He has worked with Fortune 500 and mid-sized companies in various industries including manufacturing, retail, financial services, real estate, and transportation.

Before joining True Partners, Sori worked for 10 years at Deloitte & Touche LLP as part of the firm’s national state and local tax practice, where he was Director of several state income tax offerings. Prior to Deloitte & Touche LLP, he was with KPMG Peat Marwick’s State and Local tax practice.

“I’m looking forward to contributing to the firm by leveraging my state income tax consulting expertise,” said Sori. “It’s exciting to become part of the fastest-growing tax practice in the country.”

Sori has a bachelor of science degree in accounting from Indiana University and a juris doctorate degree from IIT-Chicago Kent College of Law. He is a Certified Public Accountant and a member of the American Institute of Certified Public Accountants, the Illinois Certified Public Accountants Society, and the American Bar Association.

About True Partners Consulting LLC

True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley-created conflicts inherent in offering both tax consulting and audit services. The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy. The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa Bay, Fla.; Boston; and London. There is also a Paris office, ArtemTax International, which is the first member firm in the True Partners Consulting International network. Find additional information at www.TPCtax.com.

Unclaimed property specialist strengthens firm’s expertise

LOS ANGELES – May 1, 2008 – True Partners Consulting LLC today announced that Cathleen Bucholtz has been promoted to managing director and national unclaimed property practice leader.

As the national leader for True Partners’ Unclaimed Property practice, Bucholtz oversees one of the largest dedicated professional teams in the industry that provides multi-jurisdictional unclaimed property services in the areas of audit defense, voluntary disclosures, comprehensive diagnostic reviews, annual compliance, process improvements, and other customized services to meet client needs. She brings more than 16 years of experience in both unclaimed property and sales and use tax consulting, including statistical sampling, training client personnel, and identification of planning opportunities.

“Cathleen was a natural fit for this position,” said Cary McMillan, chief executive officer of True Partners. “Her proven excellence in this area is of utmost value to the firm, and her industry leadership and involvement will help us continue our tremendous growth.”

Prior to joining True Partners Consulting, Bucholtz was the western region leader for KPMG’s Unclaimed Property practice and prior to 2002 she was an integral member of Arthur Andersen’s National Unclaimed Property team. Before entering public accounting, Bucholtz worked for the California State Board of Equalization as a senior tax auditor and acting field audit supervisor, where she was responsible for conducting a wide variety of field audits of major corporations in various industries.

“It is exciting to continue leveraging my background on behalf of the firm’s clients.  The in-depth experience I have gained over the last 16 years has enabled me to provide the highest quality service to my clients.” said Bucholtz “I look forward to applying that knowledge and experience to an increased segment of clients in my new role.”

Bucholtz has a long standing history and commitment to the education of industry professionals in the area of unclaimed property. She has spoken before numerous trade and professional organizations including the Unclaimed Property Professionals Organization (UPPO); American Payroll Association (APA); Institute for Professionals in Taxation (IPT); and the National Business Institute (NBI).

Since 2006, Bucholtz has served as the UPPO Education Committee Co-Chair and is responsible for the development and execution of the organization’s annual and regional educational conferences for hundreds of participants annually from a wide variety of industries, including transportation, financial, insurance, retail, manufacturing, and health care. She was recently nominated for candidacy as the second vice president to the UPPO Board of Directors for 2008, a prominent leadership position that automatically succeeds to first vice president in 2009 and president in 2010.

A graduate of the University of California in Santa Barbara, Bucholtz earned a Bachelor of Arts degree in business economics, and is a licensed Certified Public Accountant (CPA) in the states of California and Washington. Bucholtz is also a member of the American Institute of Certified Public Accountants.

About True Partners Consulting LLC
True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley-created conflicts inherent in offering both tax consulting and audit services. The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy. The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

The firm has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa Bay, Fla.; Boston; and London. There is also a Paris office, ArtemTax International, which is the first member firm in the True Partners Consulting International network. Find additional information at www.tpctax.com.

Rapidly growing firm extends global reach to serve multinational clients

CHICAGO – April 18, 2008 – True Partners Consulting LLC announced today that it is launching its first wholly owned office outside the United States, which will be located in London and named True Partners Consulting (U.K.) LLP.

The new office will be led by Kim Brandt and Les Secular, who together have more than 40 years’ experience advising on tax issues throughout Europe, particularly for U.S. companies expanding operations overseas.

“The tremendous growth we’ve experienced in the last two years has greatly increased our need to establish a global presence for our clients with operations around the world,” said Cary McMillan, chief executive officer of True Partners. “We are thrilled to add a London office that will enhance our ability to provide clients in key global markets with ‘world-class’ tax and business advisory services.”

Additional new offices are currently in the discussion phase for Spain, the Netherlands, Italy and China—some of which will be network member firms through TPC International, an affiliated company, formed in October 2007. There is also a Paris office, ArtemTax International, which is the first member firm in the True Partners Consulting International network.

True Partners Consulting (U.K.) LLP will advise companies based in the United Kingdom, as well as multinational companies doing business in the United Kingdom and other European markets, on a range of tax and business issues including transfer pricing, VAT, cross border transactions, structuring business operations and reorganizations. The office will also undertake all local compliance requirements.

“We are extremely pleased to be part of True Partners Consulting,” said Kim Brandt, Partner, True Partners Consulting (U.K.) LLP. “We believe that the firm’s distinctive approach is well-suited to the needs of companies doing business in Europe, and we look forward to providing a differentiated offering to companies in need of fresh thinking on corporate tax and other business issues.”

Les Secular, Partner, True Partners Consulting (U.K.) LLP, added, “The core service strengths we offer in the London office will be further complemented by True Partners’ ability to work fluidly across geographies to access specialized areas of industry expertise and create customized solutions that fit clients’ needs.

About True Partners Consulting LLC

True Partners Consulting is a world-class tax and business advisory firm that helps large public and private enterprises navigate complex financial regulations without the Sarbanes-Oxley-created conflicts inherent in offering both consulting and audit services. The firm provides a broad range of services, including analysis and counsel concerning the tax impact of business issues such as organic or acquisition-driven growth, filing practices, business restructuring or bankruptcy. The firm also conducts refund reviews, analyzes clients’ tax exposure and prepares responses to audit inquiries, in addition to helping clients address compliance issues.

True Partners has offices in Chicago; New York; Los Angeles; San Jose, Calif.; Tampa, Fla.; Boston; and London. Find additional information at www.tpctax.com.

By Joseph Kornik, Consulting Magazine
Mar 17, 2008
Read The Original Article At Consulting Magazine

The Hidden Gems of the Consulting Profession

Each year, Consulting magazine recognizes the Seven Small Jewels of the industry. But our annual celebration of the little firms that could has evolved from simply a way to recognize those often overlooked firms to a testament to the impact that all small firms are having on the industry. They are helping shape and redefine the consulting marketplace. In many ways, the seven firms featured this year represent a snapshot of the new consulting landscape. Smaller firms are no longer flying under the radar. Rather, they are playing in the big leagues and challenging the legacy firms by going after their clients and their talent. And, in many cases, they are winning. The 2008 Seven Small Jewels—ranging in size from $3 million to $52 million and from just 13 billable consultants to 200—are leading the charge of the resurgence of the small, niche, consulting firm that plays a major role in the profession today.

True Partners Consulting
 
Sometimes, all a consulting firm needs is an opportunity. In the case of Cary McMillan, co-founder and CEO of True Partners Consulting, that opportunity came about six years ago with the passing of the Sarbanes-Oxley Act. True Partners, a tax and business advisory firm, actually didn’t even launch until late in 2005, but the groundwork for that launch was laid back in 2002 with Sarbanes-Oxley. “Sarbanes-Oxley was a once- in-a-lifetime thing. It was the best thing to happen to auditors since the passage of the Securities and Exchange Act in the 1930s,” McMillan says. “But the act meant that audit firms needed to distance themselves from their audit clients. As a result, we’re getting an opportunity to bid on work that the auditors would have previously done.”

Chicago-based True Partners, like so many other success stories in consulting over the last few years, was founded by six ex-Arthur Andersen partners. Five of those partners were in the tax practice at Anderson. McMillan left Anderson before its demise in 1999 and was the chief financial officer of the Sara Lee Corporation before launching True Partners.

“The genesis of True Partners was our thought of, ‘Why be partners with auditors when you can’t share clients with them?’ The answer was True Partners. We tried to create the same quality and feeling of a big accounting firm for our tax people without having the downside of the auditors,” McMillan says. “We offer the best of both worlds: We’re a firm with Big 4 expertise, but without the accompanying bureaucracy and potential conflict of interest.”

When he launched the firm, McMillan says he was concerned about how it would be perceived in the marketplace. “We’re not one of the Big 4. Will we be accepted by the types of clients we wanted with a name—True Partners—that’s only been around for a few years,” he says. “The most encouraging part of this so far to me is that the client reception and reaction to us has been extremely positive. We’re thrilled with our client list, and I would match it up with any of the Big 4.”

And that client list must be growing, as well. From its original Chicago office and six co-founders, True Partners has grown into a firm with seven offices and 200 billable consultants. McMillan says he expects the firm to do about $35 million in 2008—more than 50 percent higher than the $23 million the firm did the year before. Meanwhile, it increased its revenue nearly 200 percent in 2007 from 2006, when it billed $7.8 million in revenue. By 2011, McMillan expects the firm to be between 400 and 500 billable consultants and $70 million and $100 million in revenue.

“We started with six, and now we’re closing in on 200 people, and we pretty much built this business from scratch,” he says. Building a firm that grows some 50 percent every year organically is no small task. And, like with many firms, finding and hiring qualified talent has been the biggest challenges and impediments to growth for True Partners, McMillan says. “That first year, our eyes were bigger than our stomach,” he says. “The problem was recruiting. If you can’t find the right people, you can’t do the work. And, initially, we were looking for experienced hires, which makes it even more difficult. That first year, you need experienced folks to do the client work. When you walk into a client site with an experienced workforce, you tend to get asked back.”

Now, True Partners has shifted its approach to focus on hiring more junior people coming out of school. But the recruiting game is never easy, McMillan says. “We’re not going to bring someone in here who doesn’t fit our culture,” he says. “I’m a big believer in culture. We’re building that culture one person at a time. That culture at a firm is very difficult to articulate and very difficult to get, and it’s very easy to wreck. You wreck it when you do acquisitions and bring other people’s culture into your own firm.”

Which is why all of the firm’s future growth will be organic, McMillan says. He is looking at two potentially two new U.S. locations—the Southwest and metro New York. Internationally, True Partners already has a Paris affiliate and eventually will have affiliated members in Western Europe, Asia and possibly Latin America.

“Good things happen to those who grow,” McMillan says. “It’s what we tell recruits all the time, growth is a big opportunity presenter. At True Partners, you’ll be part of a growing firm, and you’ll be getting all those opportunities that come with it.”

True Partners Consulting was featured in the April 2008 edition of Business Week Chicago magazine.

Click here to view a screenshot of the article

Click here to read the full issue of the magazine (we're on page 43)

By Melissa Schmitt, Medill Reports
Mar 13, 2008
Read The Original Article At Medill Reports

In 2005, a group of ex-Arthur Andersen accountants opened the doors on a unique tax and business consulting start-up that's since experienced triple-digit growth in revenues, has added employees every month, and recently opened its first European office.

The company, True Partners Consulting LLC, headquartered at 225 W. Wacker Dr. in the Loop, went into business to rival industry giants Deloitte, Ernst & Young, PricewaterhouseCoopers and KPMG in all but one area.

They would not be auditors, allowing the young company to overcome the adversarial relationship now common between big businesses and their tax/auditing firms.

Without auditing services, True Partners could take on more tax and consulting work than the "Big Four," which had to cut back on their tax work for their auditing clients in order to comply with new regulations under the Sarbanes-Oxley Act of 2002.

Sarbanes-Oxley, or “Sox” as it’s called in accounting circles, aimed to eliminate the kinds of conflicts of interest that led to the accounting scandals and eventual implosions of WorldCom Inc., Enron Corp. and accounting giant Arthur Andersen LLP.

"This was the single most important part of the original plan," said Cary McMillan, 50, a Lincolnshire resident and the CEO of True Partners. "We're not going to be auditors," he said, explaining that firms that do both tax consulting and auditing must retain a certain independence from their clients.

This new approach, coupled with McMillan's careful cultivation of a business culture that encourages entrepreneurialism among staff, has allowed True Partners to experience tremendous growth in only two years, from $8 million in revenues in its first year in 2005, to $23 million in revenues in 2007. And McMillan expects fees to grow in excess of $35 million in 2008.

Starting from a staff of five, the company has hired new employees every month since it opened its doors, and now has 175 people in six cities across the U.S. and one affiliate in Paris. New offices are currently in the planning phase for London, Spain, the Netherlands, Italy and China.

The global presence is vital to True Partners' clients, many of which are Fortune 500 and Fortune 1000 companies with operations around the world. They turn to True Partners for all types of tax and business development advice, from general tax opinions, to operational and accounting consulting to business restructuring, bankruptcy and even international tax planning.

While the company has been successful, it wasn't easy to get it off the ground.

After McMillan accepted the role as the start-up’s first CEO, he had to pitch the idea to a slew of private equity firms to raise the necessary capital needed–in excess of $25 million–just to open the doors. He was successful after one year, reaching a deal with Waud Capital Partners in Chicago.

It is highly unusual for private equity firms to fund accounting start-ups. "They like businesses where there are assets, but when your best assets are your people…that's very unusual," McMillan said.

But Waud saw an opportunity in True Partner's business plan. After Sarbanes-Oxley passed in 2002, the big accounting firms were limited in the amount of non-auditing services they could provide for a client if they also acted as the client's auditor.

Since True Partners would not be auditors, this opened up an opportunity for the young start-up to garner extra business.

"[Waud Capital Partners] saw that [the bigger firms] may not be able to dominate like they had in the past," McMillan explained.

Next, McMillan and his skeleton crew had to attract not only business, but also employees who were leery of leaving the relative safety of jobs at more-established accounting and law firms in favor of a start-up with no track record. It was a goal of McMillan's to recruit people with years of experience in the business, which made it that much more difficult.

"We had to sell people to get business and sell to get people to come work for us," McMillan said. "I really had no idea if it was going to work."

McMillan said he wasn't confident about the viability of the business until the middle of the second year, when he noticed True Partners had improved its top line every month since they opened.

"Everyone [potential clients] was using someone else," he said. "We were asking them not only to choose a new provider, but replace their provider, who they had often used over multiple years."

McMillan said it was the company's early decision to axe auditing services that has paid off the most. While competitors like Deloitte or Ernst &Young must undergo lengthy approval processes to comply with Sarbanes-Oxley before taking on new projects, True Partners has no such restrictions.

"We have a much more experienced work force, our prices are better and we're more willing to accept a project quickly," he said.

McMillan said it was also part of the early strategy to take even the smaller projects that bigger firms might pass over. "Sometimes we'd do small projects, maybe for a few days, with one of our experienced people. A few months later, we'd be called for a bigger project, with seven or eight of our people."

Many at True Partners feel it's not just the structure of the company, but also the leadership of Cary McMillan that's made the young company a success. McMillan, a former auditor at Arthur Andersen with nearly 20 years of experience, was also the CEO of Sara Lee Branded Apparel. While working for Sara Lee, McMillan said he was energized working with creative types like the designers and marketers that brought the apparel line to fruition.

"Cary is a visionary," said Victor Polanco, the chief operating officer of True Partners. "He is a business builder and a culture builder. His passion for people and people development is unparalleled."

True Partners has no dress code and the office is entirely wireless, encouraging people to take their work where they like, often to the company's cultural center where they can help themselves to a well-stocked kitchen while bouncing ideas off colleagues. McMillan is also careful in his hiring, saying, "I don't want to work around people who don't treat people well."

Most important to McMillan, though, is providing his staff with the opportunity for rapid promotion, which he says doesn't exist at bigger firms where the auditing side of the business generates more business and where there are fewer opportunities for tax professionals to advance in their positions or their earnings.

"If you take the risk of joining us, we'll pay you back," he said, adding that salaries at the company are competitive with the bigger firms, and that they've had little turnover since they opened. McMillan said bigger firms often have turnover between 20 to 30 percent every year.

McMillan sees plenty of opportunity for True Partners to continue to grow at a brisk pace, despite the fact that the biggest four companies in the industry have an 80 percent market share of the business.

"In five years, I'd like to have 500 professionals working here, have a coast to coast presence, and I'd like to be one of the top four firms in Chicago, which is a big deal."

As for the payoff for his venture capital investors, Waud Capital Partners, McMillan says there is little likelihood that True Partners would be acquired by a larger company.  But he isn’t ruling out taking the company public sometime in the next several years.

“It’s definitely a possibility,” McMillan said, but he added that the company would have to quadruple its annual revenues before an IPO would make sense. “I wouldn’t rule it out down the line.”

The Cara Program has placed over 2, 200 individuals in permanent, quality jobs with benefits with a current average starting wage of $10.73 per hour, more than $4.50 above the federal minimum wage. Cara Graduates boast a one-year job retention rate of 72%, in large part facilitated by their intensive post-employment support services – encompassing case management, goal setting, financial literacy, matched savings, career advancement and housing.

For more information aboutThe Cara Program, click here.

Christopher House is a five-site family resource center. Through child and youth development, teen parent support, literacy, counseling and emergency services, Christopher House provides a web of support to children and their families. This support produces results: happy, healthy, school-successful kids, literate working parents, and stable, nurturing families.

Through their annual holiday program, over 500 families receive gifts & food during the holiday season.  Cash and in-kind donations are accepted and distributed directly to our families to help make the season a time of joy. Christopher House matches families and individuals in need with donors who are willing to provide gifts, gift cards or cash donations to be used towards purchasing items that the family can use throughout the year.  This is an excellent opportunity for anyone who wants to help make the holidays a special time for children and families.

For more information about Christopher House, click here.

Ketchum-Downtown YMCA Stair Climb To The Top

On Friday, September 26th, TPC's Los Angeles office will participate in the Ketchum-Downtown YMCA Stair Climb To The Top. At 1,108 feet, The US Bank Tower is the tallest building west of the Mississippi. Climbers will race, walk, or crawl up 1,500 steps (75 stories) and take an elevator down*. Most participants will climb to the top in 20 to 45 minutes. Elite climbers will race to the top in 13 minutes or less. The course record is 9:28. If you would like to know more about this event, please Click Here.

The Glass Slipper Project

The TPC Chicago office is participating in the Glass Slipper Project. The Glass Slipper Project collects gently-worn fromal dresses, bridesmaid dresses and prom dresses, as well as shoes, evening bags, jewelry and unused makeup. With assistance from the Chicago Public Schools and other organizations, the Glass Slipper Project give young women the opportunity to select a prom dress, free of charge, and attend their proms feeling confident, stylish and inluded.

Dresses and accessories in excelent condition may be dropped off anytime until Aprile 17, 2009. For more information please call the Glass Slipper Hotline at 312.409.4139 or visit their web site at www.glassslipperproject.org.

The Lincoln Park Community Shelter (LPCS) is comprehensive social service agency serving adult men and women who are experiencing homelessness. Located in Chicago's Lincoln Park neighborhood, the LPCS has been providing shelter and other basic needs to our homeless neighbors for over 20 years. Today, the LPCS provides transitional housing, meals, and a targeted array of social services to over 450 people each year.

For more information about the Lincoln Park Community Shelter, click here.

The Walter and Connie Payton Foundation

After last years success, the Chicago interns will again coordinate the collection of school supplies for area children.  The Walter and Connie Payton Foundation is dedicated to the emotional healing of neglected, abused and under-privileged children by providing tools and opportunities to build self-esteem and encourage a better family unit.

For more information about The Walter and Connie Payton Foundation, click here.

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LYDIA House

At a time when our culture often seems to be coming apart, LYDIA is helping put families back together. Founded as an orphanage in 1916, it has become a successful alternative to state-run foster care and family assistance agencies. LYDIA’s faith-based approach to helping troubled families and children is unique, reaching people in diverse communities with a continuum of clinical and supportive services.

The TPC Chicago interns will be accompanying LYDIA students for lunch and miniature golf at Chicago's Navy Pier.

For more information about LYDIA please, click here.