Illinois Cannabis LegalizationIDOA Releases Final Rules for Illinois Hemp
On June 4, 2019, the Illinois General Assembly passed House Bill 1438 to legalize recreational use of cannabis. The 600 plus omnibus bill includes regulatory oversight of growers, distributors, and limitations on cannabis use. The legislation includes provisions to maintain drug free workplaces. See Cannabis Legislation Summary, AICPA issue brief on state marijuana laws and the CPA profession (udpated January 14, 2019). See IDOR Cannabis Tax Summary (PDF).
UPDATE: Governor Pritzker signed HB 1438, The Cannabis Regulation and Tax Act into law. HB 1438 is effective January 1, 2020 and is now Public Act 101-0027. See Governor’s Press Release on this legislation. Summary of Bill.
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. See Providing Financial Services to Medical Cannabis Providers in Illinois on the IDFPR website. IDFPR Medical Marijuana contact: Tara Meyer, Phone 312.814.1690, email: [email protected]
The Illinois Department of Agriculture (IDOA) has forwarded finalized administrative rules for hemp to the Illinois Joint Committee on Administrative Rules for approval. The draft rules were originally exposed for comment in December, 2018.
The proposed rules
(PDF) cover the application process to grow hemp in Illinois and required disclosures of growing areas and certification of hemp seeds.IDFPR Proposes Guidelines for Professional Licensees' Complete Sexual Harassment Training
68 Ill. Adm. 1130.400
The Illinois Department of Financial and Professional Regulation has adopted administrative rules
to implement Public Act 100-883 which requires licensees to complete one hour of sexual harassment training as a part of continuing education requirements. The training must be provided by a licensed CPE provider. The rules were officially adopted on May 10, 2019 and will be a part of Illinois renewal requirements for CPAs in 2021. See IDPFR Info Sheet.Comptroller--Township AuditsUpdated 12/13/18
Comptroller Susana Mendoza's General Counsel has issued a letter
addressing township audits. Past practice has been for townships to provide a consolidated audit of road funds township funds to the Comptroller's Local Government Division every three years. As outlined in the the Comptroller's Chief Legal Counsel's letter, the Township Code requires townships to comply with the Governmental Account Audit Act (60 ILCS 1/89-65). The Governmental Account Audit Act requires all governments including townships with an annual revenue of more than $850,000 to file an annual audit with the Comptroller's Office. Unlike the Township Code, the Governmental Account Audit does not allow townships to exclude road funds when determining whether they are subject to an annual audit requirement nor does the Governmental Account Act provide exclusively for road funds and township funds. The Comptroller's staff is working closely with the Township Officials of Illinois and impacted townships.
LEGISLATIVE REMEDY--Updated September 5, 2018
Prior to adjournment of the spring session, both Chambers passed Senate Bill 2638
which grandfathers units of local government who use cash basis accounting. The Governor signed Senate Bill 2638 into law, and it is now Public Act 100-0837.Senate Bill 1806
, which is on the Governor's desk, makes technical updates to the Municipal Audit Act, County Audit Act and Local Government Audit Act to reflect contemporary audit and accounting terminology.
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
. Accounting Act Administrative Rules ApprovedUpdated 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.
IRS Recognizes Illinois Prepaid Property TaxUpdated 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.
The IRS has not issued any formal pronouncements or guidance. See ICPAS thank you letter
(PDF) to Congressman Roskam.Federal Tax ReformUpdated 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.
Peer Review Requirement
Sole practitioners or firms who perform audits, reviews 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 OFFICEMobility
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.