STATE ISSUES
IDOA Releases Final Rules for Illinois HempUpdated 3/27/18The 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
Updated 3/27/18
The Illinois Department of Financial and Professional Regulation has
proposed administrative rules to implement Public Act 100--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.
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.
Comptroller--Local Government Audit ReportsUpdated May 17, 2018
Background
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).
Also of interest, the Illinois Attorney General responded to Representative Anthony Deluca’s request for an
Attorney General Opinion interpreting the Illinois Municipal Audit Act and the use of cash basis accounting. Attorney General Madigan, relying on a previous 1964 Opinion issued by Attorney General Clark, opined that the Comptroller may require that audit reports submitted pursuant to the Illinois Municipal Audit Act be prepared in accordance with GAAP. It should be noted that Attorney General Madigan’s Opinion also uncharacteristically encouraged the General Assembly to adopt a legislative remedy for units of local government and cash basis accounting.
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.
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 OversightUpdated October 4, 2016The 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 ApprovedUpdated October 4, 2016The 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. 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]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 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.
REGULATORY ISSUES
Peer Review RequirementSole 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 OFFICE
MobilityMobility 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.