STATE ISSUES

ICPAS Requests Delay in Paid Leave for Workers Act
December 18, 2023
The Illinois CPA Society joined other employer/business stakeholders in requesting the delay of the Paid Leave for Workers Act that was passed by the Illinois General Assembly.  The Illinois Department of Labor exposed administrative rules to implement the new employer requirements beginning January 1, 2024, and has held online training seminars for employers and stakeholders. In a letter to IDOL Director Jane Flanagan, ICPAS asked for a delay in the implementation of the proposed rules until employers can become familiar with the requirements and concerns raised by the business community be addressed. See IDOL resources.

Taxing Professional Services

February 7, 2024
The threat of proposals to tax professional services is a pervasive reality in Illinois and within the 54 states and territories. The CPA profession is a member of the Professional Services Alliance, an alliance of professional organizations formed to oppose legislation that would tax professional services.

Local Government Audits
October 12, 2023
In response to local government audit backlogs and industry pressures of availability of auditors, ICPAS President & CEO Geof Brown sent an informational letter to State of Illinois government stakeholders whose respective agencies are recipients of statutorily required audits.

In addition to providing government stakeholders a roster of firms that have a capacity to take audit engagements, the ICPAS letter included recommendations for agency audit requirements to facilitate a larger discussion.

CPA/CPA Firms--Recovery Services (Revised Uniform Unclaimed Property Act)
October 17, 2023
CPAs and CPA firms can provide limited recovery services to business clients absent an Illinois private investigator license. ICPAS Government Relations, working with the Illinois Treasurer's staff, has identified a process where CPAs and CPA firms can continue providing limited recovery services as outlined in the regulatory bulletin posted on this issue.

 

FEDERAL ISSUES

U.S Department of Labor--Federal Overtime Rules
May 17, 2024
DOL Overtime Pay: The U.S. Department of Labor released a final rule on April 23, 2024, raising the salary threshold to qualify for certain overtime exemptions under federal law. The final rule significantly raises the minimum salary threshold for certain workers—executives, professionals, and administrative personnel.  This means employers will need to raise those employees’ salaries or reclassify them as eligible for overtime. The rule will raise the salary threshold for the overtime exemption to $43,888 effective July 1, 2024, a 23% increase over the current level. In January the salary will increase to $58,656, a 64.9% increase. More here

Small Business Beneficial Ownership Compliance Reporting Begins January 1, 2024

November 8, 2023
The Corporate Transparency Act that was passed by Congress in 2021 requires specified entities to provide beneficial ownership reporting requirements to The Financial Crimes Enforcement Network, which is part of the United States Department of the Treasury. The intent of the legislation is to combat money laundering, tax evasion and other financial crimes. This new requirement will require reporting by most CPA firms on their firm ownership and CPA firms' clients. In order to assist you and your firm in preparing to satisfy this compliance reporting, ICPAS Government Relations has curated the resources below for your reference.

ICPAS Government Relations Overview-BOI Compliance Reporting:

AICPA Beneficial Ownership Information FAQs for Clients

AICPA Beneficial Ownership Information FAQ Highlights

FinCEN Beneficial Ownership Information Reporting Resources

Illinois CPA Society Coalition Letter to FinCEN requesting an Extension of BOI Reporting 

Illinois CPA Society Beneficial Ownership Information Regulatory Alert

Illinois CPA Society Beneficial Ownership Reporting Info Paper

AICPA Council Visits Members of the Illinois Congressional Delegation
May 26, 2023
Members of the AICPA Council from Illinois visited members of the Illinois Congressional Delegation during the AICPA Spring Council Meeting in Washington, D.C. The “Hill Visits” were an opportunity to discuss federal issues of importance to CPAs and CPA firms. Specific issues discussed were:  federal tax filing extension “safe harbor,” expanding 529 plan usage to cover the costs of certain workforce training, credentialing programs, certification exams and maintenance of certification credentials, recognizing accounting as a STEM profession, and fiscal state of the nation resolution. Federal Issue Background Sheets

Concerns with Form 1099-K Reporting Threshold
In response to the reduced de minimus threshold for information reporting on third-party network transactions ($20,000 to $600), taxpayers are now required to receive 1099-Ks for payment and third-party networks for transactions in the amount of $600. In a letter to Congress, the AICPA outlined concerns with the new reporting threshold. The AICPA Letter to leadership of the Senate Finance Committee and the House Ways and Means Committee opines that the $600 threshold is too low and significantly outdated. The $600 threshold amount was established by the Internal Revenue Code section 6041 which was established in 1954. The AICPA proposed remedy is to apply a cost-of-living adjustment using 1954 as a base and agreeing that $5000 would constitute significant progress. The IRS has provided an FAQ to assist practitioners with the reporting threshold requirements.

IRS Service Issues-ICPAS Shares Ongoing IRS Service Issues with Illinois Congressional Delegation

The Illinois CPA Society urged members of the Illinois Congressional Delegation to join a bipartisan House and Senate sign-on letter to the Secretary of the Treasury on addressing ways for taxpayers and tax preparers to bypass the backlog that is plaguing the IRS. The Illinois CPA Society appreciated the 10 members of the Illinois Congressional Delegation who joined hundreds of their colleagues in adding their name to the letter to  Secretary Yellen urging Treasury to improve this year’s tax filing season process.    

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. The IRS has not issued any formal pronouncements or guidance.