https://www.journalofaccountancy.com/news/2023/nov/inflation-adjustments-to-retirement-account-limits-issued-for-2024.html?utm_source=mnl:cpal&utm_medium=email&utm_campaign=02Nov2023 This is a link to a Journal of Accountancy article. Check it out!
The International Ethics Standards Board (IESBA) issued an exposure draft on a new ethics rule that would make CPA’s responsible for the work done for a client by someone the CPA referred the client to. The effect is the CPA could be held responsible for the work of an estate attorney he refers his clients to. There is no statute of limitations in this draft.
The AICPA is bound by agreement to make these rules part of their Code of Conduct when finalized. Since most state boards of public accountancy adopt the AICPA Code of Conduct this will impact you even if you are not an AICPA member.
This draft is currently inder review after receipt of many comment letters opposing it.
The Secure Act 2.0 made it possible to roll over unused 529 plan assets to a Roth IRA. Effective 2024 529 plan must be at least 15 years old Lifetime rollover limit $35,000 Roth must be in name of plan beneficiary last five year contributions not eligible Contribution limits are aggregated Trustee to trustee transfer required Beneficiary income limitations do not apply
The Financial Crimes Enforcement Network has come out with proposed rules regarding the reporting of beneficial ownership information (BOI) in response to the Anti-Money Laundering Act of 2020 . These rules apply to domestic reporting companies which are defined as entities created under the laws of the United States or an Indian Tribe, as well as foreign reporting companies. (Reporting Companies).
There are 23 entities exempt from the Reporting Companies classification. These include banks, money transmitting businesses, RIA’s, investment companies, and large corporations. Large corporations are defined as corporations that employee more than 20 full time employees in the US, filed a tax return reporting more that $5 million in gross receipts in the previous year and have a physical office in the US.
Change in beneficial ownership must be reported within 30 days of the change. Beneficial owners include anyone who exercises substantial control over a Reporting Company or owns or controls at least 25% of such company. Failure to report is subject to a $10,000 fine and 2 years jail time.
As you can see this will impact most small businesses and will be a significant reporting burden which will ultimately fall to the CPA. The AICPA, NCCPAP, TACPA and many other organizations are working to minimize the impact of these proposed changes. The AICPA sent a letter to FinCEN on 2/4/22 with recommendations.
The final effective date has not been set. Presumably, the database FinCEN will use to capture the reports is not yet fully operational. It is not known if there will be data sharing between FinCEN and the IRS.
We are looking for webinar topics for the upcoming year. Please share your concerns and interest so we can continue to provide targeted continuing professional education. We hope to run at least two webinars per month in 2022, serving up timely information and giving you the CPE credits you need.
We can’t do it without you!
Two ways you can help… 1. Please send any topic ideas to Dave Brown, email@example.com 2. If you know of a good speaker who can address timely information, please let Dave know. (Email is best/quickest), but you can also leave a comment in the box below.)
The IRS has just published brand new guidance on the exclusion of $10,200 of Unemployment Compensation.
If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200. If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. Amounts over $10,200 for each individual are still taxable. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation.
Rev. Proc. 2021-15 was just issued. It expands the definition of what expenses qualify under IRC Sec.62(a)(2)(D) (ii) for the maximum $250 above line deduction for teachers. Protective items that are, or will be, used by the teacher to aid in preventing the spread of Covid-19 are now qualified expenses. This includes but is not limited to: face masks, disinfectant, soap, gloves, tape, chalk, barriers, air purifiers, etc. The expenses must paid paid or incurred after 3/12/20.
Recently, Durlene Reed, CPA & TACPA Executive Committee Member was able to attend the virtual meeting of the Texas State Board of Public Accountancy, (TSBPA). She filed the following notes for your information.
Texas State Board of Public Accountancy Committee & Board Meeting Notes for September 16 and 17, 2020
Peer Review Committee – TSCPA was approved to continue to sponsor peer reviews. – There is an exodus of reviewers and participating practices. – The cost to do a review is escalating. – There is a COVID‐19 related backlog. – Team captains are underperforming. – The PROB does not review each PR at the work paper level, but it does read 100% of the reports. – Rule 527 will be discussed at the next meeting. – Because of COVID‐19 the PROB’s contract was extended 120 days instead of 90 days. – Many firms have dropped out of PR by going to preparation of financial statements. The number of such firms will be discussed at the next meeting.
Rules Committee – Rule 507.4 needs clarification. – Limitations on operations after 2 review failures. – There needs to be an arm’s length between the PROB and the PR. – The wording in Rule 505‐20 should be changed from “referral” to “shall oversee”. To discuss this at the next meeting. – Free CPE
Executive Committee – Fee increase will be implemented as adopted last year. – Office relocation should be complete by next month. – In-person swearing in ceremony was cancelled in favor of a virtual one. – TSPBA audit. – Board succession plan to be presented at the November meeting. – Finger print status was updated. The deadline of 08/31/21 may be extended due to the pandemic.
Most of us do not have either the time or resources to stay abreast of potential actions being taken by the people who regulate/control our industry and our practices. Actions taken by the Texas State Board of Public Accountancy, (TSBPA), can have a significant impact on licensed practitioners. We should all have the opportunity to help create or refine the rules that affect us and our practice.
BoardWatch is a service of the Texas Association of Certified Public Accountants (TACPA), where members volunteer to attend the public meetings of the Texas State Board of Accountancy (TSBPA). The goal of BoardWatch is to provide our membership with timely information about actions proposed and/or taken at the Board. Using that information, we all can decide if we want to opine in a comment letter to the Board, perhaps contact our state legislator for help, or do nothing at all.
The BOTTOM LINE…? We want to make you aware of potential changes and give you the opportunity to evaluate them in relation to your practice. We want you to have the opportunity to provide input to the Board and suggest changes before anything is finalized and/or implemented.