STATE ISSUES
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.
Updated June 21, 2024
The Illinois General Assembly passed SB 3343 amending the Revised Uniform Unclaimed Property Act. The legislation specifically addresses the carryover legacy requirement that recovery service providers be licensed private investigators. The CPA Society worked with Illinois Treasurer Mike Frerichs' staff to eliminate this requirement for CPAs. Provided the governor signs this legislation into law, CPAs will be able to perform recovery services without a private investigator license effective January 1, 2025.
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
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.