We were founded in 1978 by the four partners in the name. Right now, we have one partner left, Kelley McKenzie. Bob Cummings is semiretired, but he's still around. We have 31 employees. We're full-service (and we do) audits and taxes.
What's your role as managing partner?
The biggest part of my day is spent overseeing clients and overseeing staff. When I put my managing-partner hat on, I'm trying to ... make decisions to benefit everyone in the firm along with our clients. (I'm always) trying to look past the current year and into the future and where the firm's going to be. Mr. McKenzie's probably going to (fully) retire within five years, so I have to plan for that and have an adequate staff available to transition those clients. That's really a lot of my focus right now. I've been managing partner about four years, and it's an elected role.
What's some basic advice for businesses and individuals to prepare for tax season?
Keep very good records. You keep records to prove you're right, just in case of an audit. It's always better to take too much information than to leave something out. Let your CPA help you (determine) whether an item is deductible or should be included in your tax return, or how it should be treated in your tax return. And I think the most important thing ... is to go to somebody you can communicate with (on tax issues) and that you're comfortable with.
What elements of taxes and planning do you think most people are unaware of?
There are some very big complexities (such as) the alternative minimum tax. Nobody understands that (outside of the profession) and it's the hardest thing in the world to explain. Basically, you do your tax return, and you have special items, and some are deductible, and you compute a new tax and pay whichever one is higher.
Under current law, the estate tax is to sunset in 2010. Then what?
The problem is that we've got a new administration, and we don't know what's going to happen. I don't think individual taxes are going to go up in 2009 with the economy, but estate taxes may. We just don't know for sure until they pass the laws. In 2010, there's no estate tax, but in 2011, we revert back to old law. (Legislators) tried to fix that over the last eight years (and) wanted to do something different, but to completely repeal it would have taken 60 percent of the vote. So they started raising the limit ... and in 2010 it goes away for one year. The estate tax law's in a big state of flux right now, but that does not mean you shouldn't plan. Even young people should plan, especially if they have children.
How has the economy affected your work?
I'm lucky that most of my clients are very (financially) sound. They're not highly leveraged, which still doesn't mean they're not concerned. They're cautiously optimistic. But ... the ones that are still profitable - and a lot of my clients are - during hard times a lot of times will increase their accounting budgets because they want us to watch things that much closer and help them (see) where they can save money or save on taxes or not overpay to help their cash flow. In a lot of instances, we get more businesses because the economy's down, but that's not an across-the-board statement for all clients.
Tell us about your family and hobbies.
I grew up in Springfield. My parents are here. I have three daughters: Caitlyn and Bailey are at Drury and Allyson's at Kickapoo High School. I'm a Shriner, I teach at Drury sometimes, and I enjoy what we call floating on the river. We don't call it canoeing, because we don't paddle. I enjoy golf, and I like the Cardinals, Springfield and St. Louis.
Interview by Features Editor Maria Hoover.[[In-content Ad]]
Taking shape on 3.5 acres just east of State Highway H/Glenstone Avenue in the area of Valley Water Mill Park are the Fulbright Heights Apartments – three 23,000-square-foot buildings with 24 units each for a total of 72 one- and two-bedroom apartments.
