STATE ISSUES


Illinois Department of Revenue--Invest in Kids Program

Updated 11/9/17
The Illinois Department of Revenue issues preliminary guidance on Invest in Kids Program.

Comptroller--Local Government Audit Reports
Updated October 19, 2017
The Office of the Comptroller (IOC) Local Government Division has notified the Illinois CPA Society that they will no longer consider Cash Basis Audits for Local Governments in compliance with statutory requirements. The Local Government Division has began notifying local governments of this practice change. IOC has accepted the 2016 annual audit reports in a non-compliant status and posted on the Comptroller's Warehouse website.

ICPAS Government Relations and the ICPAS Government Executive Committee have had discussions with the Comptroller's Staff on the impact this practice change will have on local governments and the audit process. See IOC Notification (PDF). ICPAS Regulatory Update from July, 2017. Comptroller Letter and Legal Addendum sent from ICPAS (PDF). Comptroller--Government Notification (PDF). ICPAS Comments to Comptroller (PDF). ICPAS Regulatory Update from October, 2017 (PDF).

Illinois Adopts Revised Uniform Unclaimed Property Act
Updated August 2, 2017
As a part of the Illinois General Assembly’s FY 2018 Budget Agreement, Senate Bill 9 (PA 100-0022) incorporated provisions implementing the Revised Uniform Unclaimed Property Act effective January 1, 2018. This legislation repeals the business-to-business exemption that was included in the legacy version of the Uniform Disposition of Unclaimed Property Act (765 ILCS 1025/et seq.).

Takeaway—the adoption of the Revised Uniform Unclaimed Property Act makes significant changes to Illinois’ unclaimed property reporting requirements that will require affected businesses to revise many of their practices to ensure compliance and reporting of unclaimed property.  HB 4078 and SB 2224 have been introduced in the Illinois General Assembly to undo the unclaimed property changes that were incorporated into SB-9. Practitioners should be aware of a possible legislative change in this area.

See KPMG Backgrounder. See ICPAS Letter to Treasurer Frerichs. See State Treasurer Frerichs Background Sheet. Unclaimed Property Act Briefing Slides. (PDF) Revised Unclaimed Property Act (RUPA) New Compliance Reporting Virtual Town Hall with Treasurer Frerichs

2016 State Income Tax Filing Due Dates
Updated December 3, 2017
In response to Congress changing the due dates for corporate and partnership tax returns, the Illinois Department of Revenue will administratively align the 2016 Illinois Tax Return due dates with the Federal due dates. See additional information on Federal due dates below. ICPAS Regulatory Update

Paid State Tax Return Preparer Oversight
Updated October 4, 2016
The Illinois CPA Society successfully passed legislation to carry out the recommendations of the Illinois Tax Return Preparation Task Force (PDF) authorizing the Illinois Department of Revenue to oversee state paid tax preparers using the Federal PTIN number.  The Government Relations Office and AICPA worked with the Task Force in providing recommendations and information on tax return preparer regulations and provided a white paper (PDF) with the profession’s recommendations. HB 5527 was signed into law and is effective January 1, 2017.

Accounting Act Administrative Rules Approved
Updated October 4, 2016
The Illinois CPA Society has worked closely with the Illinois Department of Professional Regulation in updating the Public Accounting Act Administrative Rules. Administrative Rules add the detail that is necessary to implement and execute statutory law such as the Public Accounting Act. The Public Accounting Act sunset was renewed and updated in 2013 and 2014, and the proposed rules reflect the statutory updates. The proposed rules (PDF) have been approved. The Illinois CPA Society submitted comments (PDF) and support for the proposal. See Changes Summary (PDF). The proposed rules were adopted and became effective March 16, 2016.

Illinois Supreme Court--Accountant's Privilege
Updated April 1, 2015
The Illinois Supreme Court in Brunton vs. Kruger upheld the operation of the Accountant's Privilege. The Court's ruling not only upheld that the accountant holds the privilege but also that there is no testamentary exception to the privilege. Regulatory Update.

Illinois Concealed Carry Law 
Updated May 12, 2014
Illinois’ Concealed Carry Law went into effect on July 9, 2013.  The implementation of the provisions of the Act are formulative with the adoption of agency rules and development of an application process.  There are issues that CPAs should consider both as employers and with regards to carry in your place of business.  Issue Briefing (PDF).

Illinois Medical Marijuana Law 
Updated January 3, 2017 
Illinois Medical Marijuana Law went into effect on January 1, 2014. There are issues that CPAs should consider both as employers and providing services to potential customers.  See Medical Marijuana Briefing (PDF) for additional background. State agencies involved in the implementation of Illinois new medical cannabis law formally filed revised medical cannabis pilot program administrative rules with the state. The Illinois Supreme Court recently issued Medical Marijuana guidelines for attorneys. IDFPR Medical Marijuana contact: Bridget Carlson, Phone: 312.814.1690, email: bridget.carlson@illinois.gov.

SB 10 extends the state's medical cannabis pilot program to 2020. Terminal illnesses and PTSD were added to the list of ailments for covered treatment.

See AICPA Resource Page.

FEDERAL ISSUES


IRS Recognizes Illinois Prepaid Property Tax

Updated April 12, 2018
Congressman Peter Roskam (R-6), Subcommittee Chair of the House Ways and Means Committee, requested an opinion from the IRS regarding the deductibility of Illinois prepaid property taxes.

The IRS responded to the Congressman's request stating that IR-2017-210 applies to a different fact pattern than Illinois, and that the Tax Cuts and Jobs Act (TCJA) of 2017 remains the rule and prepayments are deductible.

Other than Congressman Roskam's public press release, the IRS has not issued any formal pronouncements or guidance.

Federal Tax Reform
Updated December 7, 2017
Congress has made significant progress in approving historic tax reform. Both the House and Senate have approved separate versions of the Tax Cuts and Jobs Act of 2017. See KPMG Tax Flash Background Page. AICPA Video overview and FAQs 

Tax Return Due Date Changes
Updated October 19, 2016
During the summer of 2015, the federal government changed their due dates for corporate and partnership tax returns.These new changes will apply to 2016 tax returns prepared during the 2017 filing season. Previously, calendar-year C and S corporations were required to file by March 15, while individuals, trusts, and partnerships filed by April 15.

The new federal due dates make the partnership and S corporation returns due first, on March 15, and then individual and C corporation returns due a month later on April 15. The extended due dates are modified in a similar manner so that the same logical flow is maintained. To maintain this logical order, states are starting to conform their filing deadlines to the new federal dates. See Comparative Chart.

PTIN Class Action Lawsuit
Updated November 3, 2016
PTIN holders in Adam Steele, et al. v United States have challenged the IRS' authority to collect PTIN fees. The District Court for the District of Columbia has certified the class action lawsuit, and PTIN holders will receive notification for potential restitution. If you receive notification, you can do nothing and remain a part of the class action lawsuit or affirmatively choose to opt out. Fact Sheet (PDF)

New Overtime Rules Effective December 1, 2016
Updated November 29, 2016
The United States Department of Labor has adopted final rules updating the Fair Labor Standards Act overtime requirements. The new requirements, which are effective December 1, 2016, extend the overtime compensation threshold form $455 to $913 or $47,476 per year. While the primary change relates to extending overtime compensation threshold, other changes include establishing the total annual compensation requirement for highly compensated employees subject to a minimal duties test and establishes a mechanism for automatically updating the salary and compensation levels every three years. See Department of Labor Overtime Rules Fact Sheet. See ICPAS Regulatory Alert.

Court Delays Implementation--Overtime regulation previously set to take effect December 1 has been temporarily enjoined by the Federal District Court pending the resolution of litigation challenging the DOL's promulgated that doubled (to $47,476) the salary threshold of workers entitled to receive time-and-a-half pay when working more than 40 hours in a given week.

REGULATORY ISSUES


Peer Review Requirement
Sole practitioners or firms who perform audits, renews or examinations of prospective financial statements must complete a peer review as a requirement for licensure renewal. To learn more visit the ICPAS Peer Review page.

GOVERNMENT RELATIONS OFFICE


Mobility
Mobility and/or licensure questions may be directed to the Government Relations office at 217.789.7914 or 800.572.9870 or email Jill Loeser.

For additional information visit the National Association of State Boards of Accountancy and AICPA mobility site. See State Substantial Equivalency