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Your go-to source for expert insights, industry updates, and exclusive CalCPA content. Stay ahead with practical guidance, pro tips, and must-know trends—all designed to fuel your success.

Stay ahead with essential CPA resources

Governor Signs AB 1175: Modernizing CPA Licensure in California

AB 1175 modernizes CPA licensure in California by creating more flexible, affordable and accessible pathways for future CPAs—while preserving the strong consumer protections our profession is known for.

Federal Tax Conformity Legislation Signed

California has taken an important step to simplify tax compliance for taxpayers, tax professionals, and tax agencies. With the signing of SB 711 (McNerney), the state has updated its conformity date with the federal Internal Revenue Code from Jan. 1, 2015, to Jan. 1, 2025. 

IRS Updates

From a potential government shutdown to an end to paper checks, the CalCPA Committee on Taxation touches on some important updates from the IRS.

AI Solutions: Risks and Considerations

Generative AI carries benefits for CPA firms—as well as risks that need to be considered to minimize potential exposures.

Golden State wisdom straight from the experts

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CPAs: Making Sense of What Comes Next campaign

 – Gov. Gavin Newsom has signed Assembly Bill 1175, a landmark bill modernizing CPA licensure in California. Authored by Assemblymember Jacqui Irwin, sponsored by the California Board of Accountancy (CBA) and supported by CalCPA, this new law creates more flexible, affordable and accessible pathways for aspiring CPAs—while preserving the strong consumer protections the profession is known for.

AB 1175 marks the most significant update to California’s CPA licensure framework in decades. It modernizes education requirements to address the extra year of education beyond a bachelor’s degree, which added cost, delayed licensure, and created barriers for too many talented people.

“AB 1175 ensures the CPA profession can continue meeting the needs of Californians,” said Assemblymember Jacqui Irwin (D-Thousand Oaks). “As demand for CPA services grows, this legislation addresses workforce challenges by addressing barriers and opening the door wider for talented students—while maintaining the integrity and trust the public depends on.”

Under AB 1175, CPA candidates must earn a bachelor’s degree with an accounting concentration, pass the Uniform CPA Exam and complete two years of general accounting experience. For added flexibility, candidates can substitute a qualifying master’s degree for one year of experience, or an approved accounting certificate program for six months of experience. 

The new licensure framework takes effect on Jan. 1, 2027

“Modernizing CPA licensure has been a top priority,” said Yen Tu, President of the California Board of Accountancy. “With AB 1175, we’ve made the profession more accessible while preserving the strong consumer protections at the heart of licensure.”

In addition to modernizing education and experience requirements, AB 1175 updates California’s long-standing CPA cross-border practice program, ensuring CPAs can continue meeting client and consumer needs effectively across state lines.

“AB 1175 is a win for the profession, aspiring CPAs, and the public,” said Denise LeDuc Froemming, president and CEO of CalCPA. “It recognizes the diverse ways people gain the skills to succeed, aligns with today’s marketplace and keeps California a leader in career growth and economic opportunity.”

CalCPA encourages members, students and profession leaders to stay connected with CalCPA and the CBA as regulations and implementation guidance are developed in the coming months.

The California Society of CPAs (CalCPA) collaborates with policymakers, government agencies, regulatory bodies and other key stakeholders to shape policies that advance the public interest and help CPAs meet the needs of their clients and employers. CalCPA also provides our members with up-to-date information and practical guidance to support their personal and professional growth as trusted advisers to individuals and businesses, governments and nonprofits of all sizes.

California has taken an important step to simplify tax compliance for taxpayers, tax professionals, and tax agencies. With the signing of 

 (McNerney), the state has updated its conformity date with the federal Internal Revenue Code from Jan. 1, 2015, to Jan. 1, 2025. 

For years, California has taken a selective approach to federal tax conformity—reviewing each change one by one. While this gave lawmakers the chance to weigh fiscal impacts and policy considerations on major issues, smaller technical updates often fell through the cracks. Over time, that created real challenges: taxpayers and practitioners were stuck working with outdated rules, keeping separate records and making countless adjustments because California’s tax laws lagged nearly a decade behind federal law.

SB 711 helps close that gap. The bill brings California into alignment with a wide range of federal tax changes made since the last major update. While it doesn’t automatically adopt every federal change—which can be costly or politically complex—and it does not include the latest OBBB changes, it does bring in many of the smaller, technical provisions that had been left out of step for years and sets California up for future conformity efforts.

Tax conformity may not make headlines, but it has a huge impact on the day-to-day work of tax professionals and the ability for taxpayers to meet their tax compliance obligations. SB 711 is a smart, practical policy update that keeps California’s tax system current and relevant.

This bill reflects collaborative work by the author, legislative committee staff, the Franchise Tax Board, and stakeholders across the tax community. CalCPA was proud to actively support this effort on behalf of our members and the clients and communities they serve. 

Imagine logging into your firm’s system one morning to find a flashing screen: Your files have been encrypted. Pay $200,000 in Bitcoin within 72 hours or lose everything. For small to mid-sized CPA firms, this isn't a theoretical horror story. It's becoming an all-too-common reality.

The accounting profession holds a privileged position in society—as stewards of trust, guardians of sensitive financial data and compliance advisers. But with that trust comes a target on our backs. As cyberattacks grow more sophisticated, ransomware is emerging as the top threat. According to Sophos’ 

, 59 percent of organizations were hit by ransomware in 2024. The report also states, “One of the most notable findings in this year’s study is that 63 percent of ransom demands are for $1M or more, with 30 percent of demands for $5M or more. While a small number of respondents reported four-figure ransom demands, these are very much in the minority.”

Have you made business continuity plans (not just disaster recovery) a core part of your cybersecurity program?

Contrary to popular belief, cybercriminals don’t just go after Fortune 500 companies. They often target smaller, less protected organizations—especially those holding personally identifiable information like Social Security numbers, tax records and banking information. A CPA firm or finance department is a gold mine for attackers.

Yet many accountants still believe, "It won't happen to us." That mindset is precisely what puts them most at risk.

Even if a firm or finance department can recover its data through backups, ransomware attacks still carry a heavy cost: days or weeks of downtime, investigation and remediation costs, reputational damage, client/customer churn, and potential regulatory issues and legal liabilities. For firms and industries subject to regulatory oversight (like those offering assurance services, health care), a data breach can lead to investigations and fines.

Cybersecurity must be elevated from a "tech problem" to a strategic risk that must be addressed by firm leaders and finance executives. Cybersecurity risks need to be integrated into overall risk management plans.

Cyber Preparedness is Business Preparedness

Being ready for ransomware isn't just about having antivirus software. It requires:

Additionally, organizations with hybrid or remote work models must recognize that the "home office" is now part of their network perimeter. Investing in secure remote work infrastructure for small office/home office and promoting cybersecurity hygiene among staff are essential.

As organizations face more complex risks and compliance requirements, firms must step up to help their clients and finance departments must help organizations assess the adequacy of their organization’s cybersecurity risk mitigation.

Many firms are also expanding their role as advisors to include cybersecurity services for clients—especially small businesses. This is a natural extension of the CPA's role in internal controls, risk mitigation, and compliance. Cybersecurity should be baked into advisory conversations, CAS engagements, and assurance services. 

If your organization hasn’t yet incorporated business continuity planning into your cybersecurity program, now is the time. Because when ransomware hits, the only question that matters is: Were you ready?

When Ransomware Hits a CPA

The accounting profession holds a privileged position in society—as stewards of trust and guardians of sensitive financial data. But with that trust comes a target and as cyberattacks grow more sophisticated, ransomware is emerging as the top threat. 

, including where individuals should send 2024 balances due with their personal tax returns and 2025 estimated tax payments by check. These changes impact California residents, among others.

We’ve received questions about whether clients who were provided 2025 Q1-Q4 vouchers with their 2024 returns need to use the new address for Q4 payments. The IRS has confirmed that:

Executive Order 14247: No Paper Checks Initiative 

Earlier this year, an Executive Order was signed to eliminate paper checks to the extent permitted by law. The order included a mandate for the federal government to stop issuing payments by check (including tax refunds) by Sept. 30, 2025, and to require that all payments to the government be made electronically “as soon as practicable.” The executive order provides for exceptions for those without access to banking services or electronic payment systems, but no additional information has been provided yet for how to claim the exception. 

, in which it confirms its intent to phase out paper tax refund checks for individual taxpayers starting Sept. 30, 2025, and indicates that it intends to publish detailed guidance for 2025 tax returns before the 2026 filing season begins. In the meantime, taxpayers are encouraged to request direct deposit of refunds and advised to continue using existing forms and procedures through Dec.31, 2025.

If Congress does not pass a funding bill by Sept. 30, 2025, the federal government will shut down starting Oct. 1. While the IRS has not yet announced which services would be affected during this potential shutdown, any matters requiring interaction with IRS personnel should be handled before Oct. 1 where possible.

As artificial intelligence (AI) solutions such as OpenAI’s ChatGPT continue to gain popularity, many CPA firms seek to leverage its use to accelerate innovation and increase productivity. As the use of any AI technology is very organization specific, CPA firms need to obtain a solid understanding of their needs and objectives, as well as gain an understanding of how AI works before they can begin to identify what, if any, AI opportunities are the right fit for their firm. 

Although generative AI solutions can provide benefits for CPA firms, from CAMICO’s perspective, there are critical risks associated with it that should be vetted by firms and mitigation strategies implemented to minimize potential exposures. These risks include, but are not limited to, concerns with accuracy and quality control, confidentiality, privacy, security and ethical issues. 

For example, consider the following areas of potential risk exposure:

Accuracy and quality control: AI-generated content cannot be relied upon as-is, as the information may be outdated, misleading or—in some cases—fabricated. All AI-generated content must be reviewed for accuracy before placing any reliance on it and should be given the same consideration as you would to the work of an intern or first-year staff person. Firms need to have proper oversight procedures in place to ensure that personnel with the appropriate competencies will review and interpret the data and content provided, make informed decisions and provide expert guidance in applying the AI-generated information to specific client and/or firm fact patterns. 

CAMICO policyholders with questions can contact the Loss Prevention department at 

 or call (800) 652-1772 and ask to speak with a Loss Prevention Specialist.

Stay ahead with essential CPA resources

Golden State wisdom straight from the experts

Governor Signs AB 1175: Modernizing CPA Licensure in California

Federal Tax Conformity Legislation Signed

IRS Updates

AI Solutions: Risks and Considerations

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Rise & Stride Podcast

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CPAs: Making Sense of What Comes Next campaign