Advocacy at CalCPA
We are always looking for new legislation that may impact how you work or would affect your clients or employers.
Contact us: (916) 441-5351 | CalCPAGR@calcpa.org
CalCPA Government Relations | 500 Capitol Mall Suite 2350 | Sacramento, CA 95814
Check out Capitol Track for more information on these important issues.
CalCPA Committee on Taxation Submits Comments on American Institute of CPAs (AICPA) Statement on Standards for Tax Services (SSTS) Exposure Draft and Invitation to Comment
The AICPA recently released proposed revisions to the Statements on Standards for Tax Services (SSTSs) for public comment. The proposed changes include revisions to the existing standards and three new standards. Additionally, AICPA sought comments on the subject of quality management in tax.
CalCPA’s Committee on Taxation reviewed and submitted comments on the exposure draft and the proposed changes to the SSTS. A copy of CalCPA’s comments can be found on here. Overall, CalCPA’s comments outlined that the proposed updates and reorganization of the SSTS were reasonable and appropriate enhancements to the standards.
CalCPA advocacy and engagement with national standard setters is critical to helping shape key professional standards that are necessary for maintaining a rigorous benchmark for conduct in a CPA’s tax practice as well as upholding the profession’s role in protecting the public interest.
Following consideration of comments received, the AICPA expects to release a revised SSTSs document Spring of 2024 with an anticipated effective date of Jan. 1, 2024.
Public Policy & Legislative Report–2022
Did you know CalCPA advocacy works year-round to advance the interests of CalCPA members? Or that CalCPA worked on the Pass-through Entity Tax, legislation to allow for early sitting for the CPA Exam and policies that advance financial literacy? Not to mention our work dealing with possible changes to the CPA experience requirements or how we are working to help shape the California business climate.
To learn more about CalCPA’s advocacy program and recent successes, click here.
Additionally, Bob Reynolds, Chair of CalCPA Government Relations Committee, and Jason Fox, CalCPA’s VP of Government Relations, discuss these issues and more in this special update.
To access the members-only video, please follow the following steps:
Log into your CalCPA account
Click Find CPE/Events in top menu bar
Search “Public Policy & Legislative Report – July 2022”
Click “Add,” then click “Checkout” and follow the prompts
This free presentation is part of CalCPA’s ongoing efforts to keep you updated on advocacy efforts to promote the interests of CalCPA members.
Key provisions in the Inflation Reduction Act of 2022
Updated August 16, 2022
Last week Congress passed and President Biden is expected to sign the Inflation Reduction Act of 2022 (H.R. 5376), a comprehensive legislative package intended to invest $437 billion on healthcare, energy production, and climate change mitigation. The legislation also includes a number of provisions, including significant tax changes, that will raise $740 billion in revenue to offset the major investments and pay down part of the federal deficit.
Here are a few of the highlights:
Tax Provisions and Revenue Raisers
Corporate Minimum Tax: For taxable years beginning after Dec. 31, 2022, a new corporate minimum tax of 15% imposed on corporations with an average book income of over $1 billion.
Excise Tax on Stock Buy Backs: Beginning after Dec. 31, 2022, a 1% excise tax on stock buybacks by a publicly traded company except for limited exceptions.
Excess Business Loss Limitations for Individuals: Extend the current excess business loss limitation rules from Jan. 1, 2027 to taxable years that begin before January 1, 2029.
IRS Funding: Increase IRS funding with the expectation to bring in additional revenue through enforcement. Funding includes $3.2 billion for taxpayer services, $45.6 billion for enforcement, $25.3 billion for operations support, and $4.8 billion for business systems modernization.
Drug pricing provisions related to price negotiations, inflationary rebates, and Medicare reforms including caps on certain drug costs. The Affordable Care Act tax credit is also extended by three years.
Direct investment to a variety of programs intended to support energy infrastructure, reduce emissions, and other efforts to mitigate impacts of climate change. The package includes a number of credits and other incentives for manufacturers and consumers that adopt new low carbon energy technologies; including adoption of solar, electric vehicle, and more efficient appliances and credits for investment and research in new low carbon energy development.
Please note that legislative proposals are complex and wide-ranging. Before making any determinations for yourself or your client, be sure to review the provisions in detail and consult with experts as appropriate.