Advocacy Activities of the Illinois CPA Society
Welcome to Capitol Assets, an email newsletter from the Government Relations office of the Illinois CPA Society. Capitol Assets provides you with information on state legislation and regulations affecting CPAs and CPA Firms.
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Volume 22, Issue 1, January 2010
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Legislative Update
by Martin Green, Vice President of Government Relations
2010—The Road Ahead
The double ought years are gone, and 2010 is an important year politically with the February 2 primary election and the November 2 general election. It is an important year governmentally with the decennial census and former Governor Blagojevich’s criminal trial beginning in July. Voters will cast their votes for United States Senator (Burris' seat), members of Congress, Governor, Lt. Governor, Attorney General, Secretary of State, Comptroller, Treasurer, all 118 seats in the Illinois House of Representatives and 21 seats in the Illinois Senate. The census is scheduled to begin April 1, and the results will determine how many national seats there will be in the U.S. House of Representatives and that will affect the distribution of state and federal taxpayer money. This year’s elections and the census is a prelude to the 2011 redistricting process that will determine the geographic composition of districts for the Illinois Congressional delegation, state legislature, county boards and city councils. The party that controls the Illinois General Assembly and the governor’s office will draw the redistricting of maps that will be in place for the next decade.
The 2009 legislative session produced legislative victories for the Illinois CPA Society (ICPAS) with the passage of charitable audit legislation and the repeal of the tax increase on partnership income. The General Assembly and the governor will continue to look for financial remedies to ease the state’s financial situation with additional taxes on areas such as services. Congress continues to implement regulatory reforms for the banking and financial industries in response to the Wall Street meltdown. Read more.
The ICPAS Government Relations office will continue to work with members of the General Assembly and the Illinois Congressional delegation on issues of interest to the profession. ICPAS will keep its members informed through Capitol Assets, the Government Relations website and legislative/regulatory alerts and updates. Feel free to call me at 800.572.9870 or send an email to GreenM@icpas.org to discuss pending legislation or regulatory issues.
Legislative Items of Interest
General Assembly Kicks off Spring Session—The 96th Illinois General Assembly convened its second year spring legislative session on January 12, 2010. Governor Quinn delivered his State of the State Address to a joint session on January 13. Both chambers will reconvene on February 3 after the primary election. See House Calendar and Senate Calendar. Governor Quinn will deliver his budget address on February 17.
Governor Signs Legislation to Repeal Partnership Tax Increase—Governor Quinn signed legislation (Public Act 96-0835) supported by ICPAS on December 16 to repeal the tax increase on partnership tax income. The repeal of the 1.5% tax increase on compensation to partners for personal services for tax year ending December 31, 2009 is effective immediately. Read governor's press release.
Governor Signs Comprehensive Cemetery Oversight Legislation (Public Act 96-0863)—In response to the atrocities at the Burr Oak Cemetery, the General Assembly passed comprehensive legislation and Governor Quinn signed into law comprehensive regulatory measures for the cemetery industry. The Department of Financial and Professional Regulation was given licensing and regulatory authority over cemetery authorities and personnel. Read press release.
General Assembly Authorizes Governor to Borrow $250,000,000—Senate Bill 1425 authorizes $250,000,000 to be used during fiscal year 2010 to make deposits into the Healthcare Provider Relief Fund to fund Medicaid services. The bill is on concurrence in the Senate awaiting approval of the House amendments to Senate Bill 1425 that make this possible.
Campaign Finance Reform—Governor Quinn also signed Senate Bill 1466 (Public Act 96-0832) approving campaign reform measures which limits the amount of contributions that political parties and legislative leaders may make to candidates in primary and general elections. Businesses, unions and associations are limited to $20,000 in contributions to political committees and individuals to $10,000 to candidates during an election cycle.
Ethics Reform/Pay-to-Play—Both chambers approved legislation which cleans up the previously passed Pay-to-Play legislation passed earlier. The trailer legislation eliminates the requirements to report foreign entities, and registered entities will no longer have to report minor children among their “affiliated persons.” See Public Act 96-0793.
Gubernatorial Recall—The Senate gave final approval to a proposed Constitutional Amendment that would permit recalling a governor. Illinois voters will be asked in November 2010 to adopt gubernatorial recall by amending the Illinois Constitution.
Regulatory Items of Interest
IDFPR Licensed Accounting Regulatory Survey—The Illinois Department of Financial and Professional Regulation is in the process of surveying Illinois licensed certified public accountants to determine if they and/or their firm provides licensed services under the Illinois Public Accounting Act. The purpose of the survey is to determine the number of licensed CPAs and firms that will be required to complete peer review for 2012 license renewals. ICPAS has developed an annotated survey to assist practitioners in responding to survey questions. The deadline to return the survey was January 15. If you have not returned your survey, you are encouraged to do so.
Peer Review 2012 Licensure Requirement—As a condition for 2012 license renewals, firms and sole practitioners who provide licensed services must complete peer review every three years. This licensure requirement brings Illinois into line with 44 other states and the Uniform Accountancy Act (UAA). Read more.
Registered Certified Public Accountant Sunset—Illinois will transition from a dual licensing state to a single license state in 2010. Beginning July 1, 2010, the Illinois Division of Professional Regulation of the Department of Financial and Professional Regulation will no longer issue new registered CPA credentials. Registered CPAs who applied before for renewal will be grandfathered, and their registered CPA credentials will be renewed. Read more.
Mobility—North Carolina became the 45th state to pass mobility legislation. Massachusetts has legislation pending, and it is anticipated that Alaska and Hawaii will have mobility legislation in 2010. The National Association of State Boards of Accountancy has developed a State Mobility Law Index for practitioners.
Illinois Administrative Rules—Administrative rules authorize state agencies to exercise authority delegated to them by legislation. The ICPAS Government Relations office closely monitors proposed or emergency rules of interest to CPAs and CPA firms. Read the regulations.
Government Relations Office News
CPA PAC Contributions Approved—The Illinois CPAs for Political Action (CPA PAC) approved $85,000 in contributions to members of the Illinois General Assembly, legislative leaders and Constitutional officers prior to the February primary election. The CPA PAC serves as a strong collective voice for CPAs and CPA firms and provides a foundation for successful legislative advocacy. The checks were delivered to officials through ICPAS’ network of legislative contacts.
Military Tax Assistance Program—For the seventh year in a row, CPAs for the Public Interest will provide tax assistance and guidance to military families of deployed soldiers. To become a volunteer in the Military Tax Assistance Program, contact WilesJ@icpas.org
Tax Guide for Members of the Illinois General Assembly—The 2010 Tax Guide for Members of the Illinois General Assembly (for tax year 2009) was prepared by the Legislators’ Tax Guide Task Force and was sent to members of the General Assembly in January 2010. The purpose of the guide is to assist state legislators in those areas of taxation that specifically apply to them. If you would like a copy of the Tax Guide, please contact the ICPAS Government Relations office.
Legislative Contact Program—Members of the Legislative Contact Program were called upon and were responsive to contacting officials at both the state and federal levels about issues affecting the profession.
Legislative contacts are needed for the following state officials:
Representatives: Senators:
Edward Acevedo (D-2, Chicago) John Sullivan (D-47, Rushville)
Mary Flowers (D-31, Chicago)
Andre Thapedi (D-32, Chicago)
Frank Mautino (D-76, Spring Valley)
Call 800.572.9870 or send an email to McKamyC@icpas.org to volunteer to be a legislative liaison to these and/or other legislators. Read more about the program.
State Briefs
Illinois Primary Election Will Be February 2, 2010—Illinois voters will cast votes for Illinois United States Senator (Burris' seat), members of Congress, Governor, Lt. Governor, Attorney General, Secretary of State, Comptroller, Treasurer, all 118 seats in the Illinois House of Representative and 21 seats in the Illinois Senate. Early voting begins January 11, 2010 and ends on January 28. Visit ICPAS Legislative Action Center Election Guide here.
Citizen Petition Drive to Amend Redistricting Process—An organized citizen petition drive to empower Illinois voters to change the states’ redistricting process with an amendment to the Illinois Constitution is underway to get 500,000 signatures for the Illinois Fair Map Amendment in November’s election. Read more.
State Comptroller Identifies $8.75 Billion of Unpaid Backlog of Bills—Comptroller Dan Hynes recently released “The Illinois State Comptroller Quarterly” wherein the Comptroller highlights the state’s $8.75 billion in accumulated unpaid backlog of bills. Read more.
National Briefs
IRS Proposes New Preparer Registration—The Internal Revenue Service released its recommendations regarding tax preparer regulations on January 4. Read more on IRS proposal.The IRS recommends a number of steps that it plans to phase in beginning with the 2011 filing season:
- All preparers use a common identification number (a “PTIN” number)
- All preparers be subject to Circular 230 requirements
- An education requirement be implemented–CPAs would be exempt from this requirement
- An entry testing requirement be implemented–CPAs would be exempt from this requirement
The IRS will be sending letters to over 10,000 tax return preparers identifying “problem areas on returns. The letters are random and do not suggest the preparer has engaged in any wrong doing.
House Passes Wall Street Reform Act—The U.S. House passed H.R. 4173, the "Wall Street Reform and Consumer Financial Protection Agency Act of 2009" on Friday, December 11, 2009. ICPAS worked closely with the AICPA and members of the Illinois Congressional delegation on areas of interest to the profession and the exemption for CPAs from the new Consumer Financial Protection Agency. Other items you be hearing more about that the profession continues to work on is the elimination of the exemption for audits of internal controls (SOX Section 404b) for smaller public companies. Read more.
House Introduces Legislation Requiring Comptroller General to be CPA—Legislation was introduced (House Resolution 4410) that would require the Comptroller General of the United States be a certified public accountant. Read more.
We Want to Hear From You . . .
Please send comments, suggestions or additional information you would like to see in future issues of Capitol Assets to McKamyC@icpas.org