STATE ISSUES

Alternative CPA Pathways Legislation
February 18, 2025
CPA Representatives Natalie Manley (D-Joliet) and Amy Elik (R-Alton) have introduced HB 2459 at the request of the Illinois CPA Society. This legislation amends the Illinois Public Accounting Act to provide for additional pathways to licensure and enhanced mobility privileges at this time of licensure change occurring in Illinois and throughout the nation.  CPA Legislation Fact Sheet.  CPA State Society Map for Alternative Licensure Pathways and Mobility

Inflation Reduction Act--Clean Energy Tax Credits
October 16, 2024
The Illinois Power Agency has put together an information paper on federal energy tax credit information for CPAs. The curated info paper outlines energy related rebates and tax credits available to individuals and businesses.

Illinois Gives Act
September 19, 2024
The Illinois General Assembly passed HB 1241 creating a 25% state charitable income tax credit beginning tax year 2025 for charitable gifts to a permanent endowment. Fact sheet.

Tax on Professional Services
March 24, 2025
Gov. JB Pritzker has proposed his new state budget proposal for next year. With tensions rising with the Trump administration over cuts to federal programs and grants, the governor did not propose new revenues in his budget, which means good news for professions like ours concerned about taxing professional services. 

Other organizations are proposing new revenues, including a coalition intending to raise $2 billion through new taxes on consumer services. We will be watching closely for discussion and movement on these and other revenue proposals as lawmakers begin work in the next few weeks on the next state budget. Efforts to address a nearly $800 million “fiscal cliff” for transit systems in the metropolitan Chicago area, the ongoing uncertainty of federal funding, and legislators’ desires to address other spending needs will require diligence through the end of May.

If any proposal to tax professional services surfaces, ICPAS is prepared to respond to defeat legislative authorization by the Illinois General Assembly.  ICPAS Government Relations is closely monitoring the situation and working with other impacted stakeholders.  
 Accounting Services Fact Sheet;  Arguments Against Taxation on Services Fact Sheet; Coalition for Fair Taxation & Growth Website


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:
As of March 21, 2025

 BOI FinCEN Interim Final Rule Update 3.25

BOI--Enforcement and Fine Amnesty

BOI REPORTING BACK ON!

Beneficial Ownership Information Reporting Requirements Update

Illinois CPA Society Beneficial Ownership Reporting Requirements Preliminary Injunction Regulatory Alert

State Societies Letter to FinCEN and Treasury Requesting Delay of BOI Reporting Deadline

AICPA Beneficial Ownership Information Reporting Resource Page

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 BOI Letter Requesting Implementation Delay 11.11.24

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.