The Florida Institute of Certified Public Accountants (FICPA) announced on Wednesday that Justin Thames has been named the Institute’s Chief External Affairs Officer.
With a Special Session set for next week in Tallahassee, the FICPA Governmental Affairs Team has the latest news impacting the CPA profession at the state and federal levels.
In our April 15, 2022, edition of Advocacy Update, we address:
Next week's Special Session focused on redistricting
Florida's new financial literacy law and why it matters
FICPA's upcoming Town Hall recapping the 2022 Legislative Session
OMB's recent Single Audit Update for COVID funds
Upcoming scholarship deadlines (including today's April 15 cutoff)
And the latest Department of Revenue TIPs
Latest News
Special Session set for April 19-22
Gov. Ron DeSantis on March 29 called a Special Session of the Florida Legislature to produce a new map establishing lawful congressional voting districts in Florida. The governor vetoed CS/SB 102 after reviewing the bill, citing legal concerns.
The Special Session will convene at noon on Tuesday, April 19 and will extend no later than 11:59 p.m. on Friday, April 22.
“We have a responsibility to produce maps for our citizens that do not contain unconstitutional racial gerrymanders,” Gov. DeSantis said. “Today, I vetoed a map that violates the U.S. Constitution, but that does not absolve the Legislature from doing its job. I appreciate the Legislature’s willingness to work with me to pass a legally compliant map this Special Session.”
Read a supporting memorandum here, the full veto transmittal letter here and proclamation calling for the Special Session here.
Governor Signs Financial Literacy Bill
In March, Gov. Ron DeSantis signed Senate Bill 1054, requiring financial-literacy instruction in Florida public schools. The bill is cited as the Dorothy L. Hukill Financial Literacy Act in honor of the late Sen. Hukill, who was a strong supporter of the CPA profession. It requires all students, starting with those who begin high school in the 2023-2024 school year, to take a half-credit financial literacy class before graduating.
For many years, the FICPA supported Sen. Hukill’s efforts to boost financial literacy among students throughout Florida. We thank Sen. Travis Hutson and Rep. Demi Busatta Cabrera for sponsoring the legislation and Gov. Ron DeSantis for signing the bill into law, bringing Sen. Hukill’s efforts to fruition.
In honor of Financial Literacy Month, the latest edition of FICPA Conversations features a leading champion for financial literacy: Stuart Rohatiner. A longtime FICPA member and a partner at Gerson, Preston, Klein, Lips, Eisenberg & Gelber, P.A. in Miami, Rohatiner also is a financial counselor at the Overtown Youth Center, which provides an array of services and opportunities to at-risk youth in South Florida.
We talked to Stuart about his passion for financial literacy and why early education is so vital for future success.
Join our FICPA Town Hall at 11 a.m. on April 21 for an in-depth recap of the 2022 Florida Legislative Session. As part of our ongoing mission to inform members about the issues impacting Florida businesses and the CPA profession, we’ll bring you the most up-to-date public policy and political information from Tallahassee. This session is free for FICPA members.
In 2021, the Florida CPA/PAC raised over $160,000 – representing the highest donation level since 2012 and a 9% increase in individual PAC donors from 2020.
Of the candidates we supported during the last election year, 98% were elected to state office – and we’ve worked nonstop to make sure they know the issues impacting you and your practice. But our work isn’t done.
During the upcoming Special Session, the state of Florida will undergo redistricting – the redrawing of congressional and state legislative boundaries. This process will reshape Florida’s political landscape this November, when all 120 Florida House and 40 Senate seats – as well as the entire Cabinet – will be on the ballot.
The district changes, and the outcomes of this election year, can impact the laws and regulations governing the CPA profession throughout the state. Now is the time to do your part.
Please consider joining your colleagues who support our advocacy efforts on behalf of the CPA profession.
Look for a member-exclusive “2022 Election Update” from the FICPA Governmental Affairs team this October.
Spring FCT Highlights 2022 Session Wins
Don’t miss the Spring Legislative Issue of Florida CPA Today magazine, highlighting victories on behalf of the CPA profession during the 2022 Legislative Session.
This issue will include a recap of this year’s Virtual Advocacy and Hike the Hill events, a profile on DBPR Secretary Melanie Griffin, and more.
Look for the Legislative Issue in your mailbox – and email inbox – in May!
OMB Issues Update to Single Audit 2021 Compliance Supplement
The Office of Management and Budget (OMB) released a technical update to language in the 2021 Compliance Supplement affecting two key COVID-19 relief programs last Friday. The two programs are the Department of Health and Human Services Assistance Listing 93.498 Provider Relief Fund and Treasury Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The amendment is applicable only for fiscal year audits beginning after June 30, 2020.
Notably, the update provides an alternative audit approach for eligible SLFRF recipients “that would otherwise not be required to undergo an audit if it was not for the expenditures of SLFRF funds directly awarded by Treasury.” For eligible SLFRF recipients, the OMB has authorized the use of an Alternative Compliance Examination Engagement in lieu of a full single audit or program-specific audit.
Additional instructions for where and how to submit the results of the alternative compliance examination engagement will be forthcoming and posted to the Coronavirus State and Local Fiscal Recovery Funds’ website.
IRS Commissioner to Senators: ‘Our Efforts Are Working’
IRS Commissioner Charles Rettig updated members of the Senate Finance Committee last week on the Service's performance in the soon-to-be-concluded tax filing season, as well as longer-term assessments of its efforts to modernize its operations, fill staffing gaps and improve taxpayer service and enforcement.
"Our efforts are working; we're trending in the right direction," Rettig said in response to a question from Sen. Pat Toomey, R-PA, about reducing the backlog and improving the level of service on the IRS' toll-free phone lines.
The FICPA, AICPA and other practitioner groups continue to advocate for additional IRS actions to provide much-needed relief to taxpayers and practitioners.
NTA Calls for More Time to Contest Denial of Refund or Credit Claim
National Taxpayer Advocate (NTA) Erin Collins recommended the IRS temporarily postpone the two-year time limit for taxpayers to file a lawsuit to contest the Service's disallowance of a claim for refund or credit, and allow more time to resolve such disputes administratively with the IRS. Collins included the recommendation in her NTA Blog entry last week, which also warned taxpayers and their representatives the time limit applies regardless of whether a taxpayer is pursuing an administrative appeal.
The Florida Board of Accountancy (BOA) is now accepting applications for the Clay Ford Scholarship. The scholarship was established to provide financial assistance to minority students as they pursue the fifth year of education required to become a licensed CPA. The scholarships are funded by a portion of each individual and CPA firm license fee.
Through the award, scholarship applicants may be awarded up to $6,000 per semester for a maximum of two semesters. Each year, the FICPA advocates for inclusion of the funding authority in the state’s budget. This year’s application deadline is set for Wednesday, June 1.
In 1998, after four years of discussion, the Florida Legislature recognized the need to assist minority accounting students in completing the fifth year of education required to become a licensed CPA. Through the leadership of former BOA Chair Shaun Davis, CPA and former FICPA President Ron Thompkins, CPA, the FICPA and the BOA partnered to seek legislation that ultimately created the Minority Scholarship Program.
In 2013, the Florida Legislature posthumously renamed the program after Rep. Clay Ford, a strong advocate for the program and the CPA profession. Clay Ford scholarships are administered through the CPA Education Minority Assistance Advisory Council, which was created in 1999 to encourage minorities to enter the CPA profession. The scholarships are awarded on a combination of criteria related to financial need and scholastic ability and performance.
April 15 Deadline: Apply for an FICPA Scholarship Today!
Are you a student member looking for help with tuition? Or are you an FICPA member who knows an accounting student in need of financial support? Fourth- and fifth-year accounting students are eligible to apply for an FICPA scholarship of up to $5,000 in funding.
Be sure to apply now – the application deadline ends today!
The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) in 2022.
Administration
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit
Feb. 7, 2022
Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness.
Change in Local Communications Services Tax Rate Beginning May 1, 2022
Jan. 27, 2022
Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute.
Florida Corporate Income Tax 2022 Automatic Refund
Jan. 13, 2022
An automatic refund is available for Florida corporate income/franchise tax returns filed on or before Feb. 1, 2022, for taxable years beginning on or after April 1, 2019, and on or before March 31, 2020 (subject to any 2022 law change). For most taxpayers, this will be the return for taxable year ending Dec. 31, 2020.
Florida Corporate Income/Franchise Tax – Internship Tax Credit Program
Jan. 4, 2022
For taxable years beginning during the 2022 and 2023 calendar year, a student internship tax credit is available against the Florida corporate income/franchise tax. The Florida Internship Tax Credit Program (Program) allows credit for up to five student interns per taxable year, per corporation. The credit amount is $2,000 per student intern (maximum of $10,000 for each taxable year). A total of $2.5 million in credits are available for each of the two years of the Program.
Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida or any of its political subdivisions, municipalities, agencies, authorities or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return.
Madison County Increases Its Tourist Development Tax Rate From 3% to 5%
Jan. 5, 2022
The Madison County Board of County Commissioners adopted Ordinance No. 2021-246 increasing the tourist development tax rate from 3% to 5% on transient rental transactions occurring in Madison County.
Phosphate rock producers are subject to tax as provided by law. Use the following rate when completing the Declaration/Installment Payment of Estimated Solid Mineral Severance Tax (Form DR-142ES).
The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license.
Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.
The FICPA continues to push for meaningful relief for taxpayers and practitioners from the IRS. “We’re continuing to advocate on behalf of members alongside the AICPA, members of Congress and many other organizations to urge more significant relief,” FICPA President & CEO Shelly Weir said.
Shelly Weir sits down our Director of Governmental Affairs, Justin Thames, and the President of Liberty Partners of Tallahassee, Jennifer Green to recap the 2022 Florida Legislative Session.
With the Florida Legislative Session set to conclude on Monday, the FICPA Governmental Affairs team is here to get you caught up on the latest news and notes impacting the profession.
In our March 11, 2022, edition of Advocacy Update, we address:
A bipartisan letter urging the IRS to suspend additional taxpayer notices
Our CEO Conversation recapping the 2022 Legislative Session
The IRS' face-to-face assistance this Saturday (March 12)
The BOA's Clay Ford Scholarship for minority accounting students
The status of key legislation in Tallahassee
And the latest Department of Revenue TIPs
Latest News
FICPA Urges Senators Rubio and Scott to Sign Letter to IRS Commissioner
The FICPA on Tuesday reached out to Florida’s U.S. Senators – Marco Rubio and Rick Scott – asking them to sign a letter addressed to IRS Commissioner Charles Rettig. Sens. Bill Cassidy (R-LA) and Bob Menendez (D-NJ) are circulating the bipartisan letter, which asks the IRS for more information about what – and what additional authority, if any – it needs to suspend sending additional notices to taxpayers.
The profession – the AICPA, state CPA societies and other professional organizations – has been calling on the IRS for many months to suspend various taxpayer notices. Temporarily suspending notices, which are piling up on taxpayers and their practitioners this filing season, should help reduce contact with the beleaguered IRS and ease some taxpayer confusion. However, the IRS has repeatedly suggested it does not have the authority to suspend all automated notices and has continued sending notices to taxpayers, causing confusion, anxiety and significant wasted time for tax preparers and their clients.
Clarifying where the IRS may need Congressional assistance to suspend certain notices will help federal lawmakers as they work to blunt the impact of the backlog on individual and business taxpayers.
FICPA CEO Conversations: Recapping the Florida Legislative Session
In the latest edition of FICPA CEO Conversations, FICPA President & CEO Shelly Weir, Liberty Partners of Tallahassee President Jennifer Green, and I recap the 2022 Florida Legislative Session.
We've been hard at work these last 60 days, representing the interests of Florida's CPAs and advocating on behalf of the profession.
As the 2022 Session comes to a close, this edition of CEO Conversations highlights the issues the FICPA has been engaged in on your behalf. Highlights include:
A recap of the major policy issues the Legislature considered, including several impacting CPAs
An overview of the Department of Revenue’s (DOR) Tax Administration bill
An update on Condo and Homeowners Associations changes
The status of the state’s budget and highlights for the profession
Click on the player above for the full conversation.
IRS Offers Face-to-Face Help This Saturday
This week, the IRS announced Taxpayer Assistance Centers (TACs) will be open this Saturday, March 12, to assist taxpayers with this year’s filing season questions.
The TACs in Fort Myers, Maitland/Orlando, Plantation/Fort Lauderdale and Miami will be open from 9 a.m. to 4 p.m. with no appointment required. Normally, TACs are open only on weekdays.
“We know that many taxpayers work during the week or have other obligations that make it difficult to get away to take care of their taxes during our routine business hours,” IRS Wage and Investment Division Commissioner and Taxpayer Experience Officer Ken Corbin said in the announcement. “We’re here to help, and people don’t need an appointment during these special Saturday hours.”
The Florida Board of Accountancy is now accepting applications for the Clay Ford Scholarship. The scholarship was established to provide financial assistance to minority students as they pursue the fifth year of education required to become a licensed CPA. The scholarships are funded by a portion of each individual and CPA firm license fee.
Through the award, scholarship applicants may be awarded up to $6,000 per semester for a maximum of two semesters. Each year, the FICPA advocates for inclusion of the funding authority in the state’s budget. This year’s application deadline is set for Wednesday, June 1.
In 1998, after four years of discussion, the Florida Legislature recognized the need to assist minority accounting students in completing the fifth year of education required to become a licensed CPA. Through the leadership of former Florida Board of Accountancy (BOA) Chair Shaun Davis, CPA, and former FICPA President Ron Thompkins, CPA, the FICPA and the BOA partnered to seek legislation that ultimately created the Minority Scholarship Program.
In 2013, the Florida Legislature posthumously renamed the program after Rep. Clay Ford, a strong advocate for the program and the CPA profession. Clay Ford scholarships are administered through the CPA Education Minority Assistance Advisory Council, which was created in 1999 to encourage minorities to enter the CPA profession. The scholarships are awarded on a combination of criteria related to financial need and scholastic ability and performance.
Provides specified tax exemptions for specified industries and products; provides tax credits for specified businesses; provides refunds of previously paid taxes for specified purposes; provides abatement of taxes paid for specified purposes; provides sales tax holidays for specified items.
Effective date:July 1, 2022
Status: Placed in conference (Appropriations Conference Committee/Appropriations)
Adopts the 2022 version of the Internal Revenue Code for purposes of the state corporate income tax code; revises the timeframe during which the adjustment of the corporate tax rate based on net collections exceeding adjusted forecasted collections applies; provides for retroactive operation; provides applicability for adjustments taxpayers must make to adjusted federal income with respect to bonus depreciation, etc.
Prohibits taxpayers from submitting certain records in tax proceedings under certain circumstances; authorizes the Department of Revenue to respond to contact initiated by taxpayers to discuss audits; clarifies conditions for application of an exemption for sales taxes for certain nonresident purchasers of boats or aircraft; deletes a tax exemption for building materials used in the rehabilitation of real property located in an enterprise zone; revises the period in which, and conditions under which, the executive director of the department may adopt emergency rules; excludes certain benefit charges from the employer reemployment assistance contribution rate calculation, etc.
Provides that certain requirements must be met before adopting the regulation of an unregulated profession or occupation or the substantial expansion of regulation of a regulated profession or occupation; requires the proponents of legislation that proposes such regulation to provide certain information to the state agency that would have jurisdiction over the proposed regulation and to the Legislature by a certain date; requires such state agency to provide certain information to the Legislature within a specified timeframe; provides an exception, etc.
Prohibits an applicable board, or the Department of Business and Professional Regulation if there is no such board, from inquiring into or considering the conviction history of an applicant for licensure until it is determined that the applicant is otherwise qualified; prohibiting the applicable board, or the department if there is no board, from denying an application for licensure of a person based solely or in part on an applicant’s criminal history; provides requirements for determining if such criminal history directly relates to the practice of the applicable profession; provides requirements for court-ordered sealing of certain records that were automatically sealed by the Department of Law Enforcement under specified provisions, etc.
Effective Date: July 1, 2022
Status: Favorable by Appropriations Subcommittee on Criminal and Civil Justice - YEAS 7, NAYS 0 In Appropriations
To view more legislation the FICPA is tracking during the 2022 Legislative Session, log in to your member account and visit our Advocacy Action Center.
DOR TIPs
The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) in 2022.
Administration
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit
Feb. 7, 2022
Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness.
Change in Local Communications Services Tax Rate Beginning May 1, 2022
Jan. 27, 2022
Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute.
Florida Corporate Income Tax 2022 Automatic Refund
Jan. 13, 2022
An automatic refund is available for Florida corporate income/franchise tax returns filed on or before Feb. 1, 2022, for taxable years beginning on or after April 1, 2019, and on or before March 31, 2020 (subject to any 2022 law change). For most taxpayers, this will be the return for taxable year ending Dec. 31, 2020.
Florida Corporate Income/Franchise Tax – Internship Tax Credit Program
Jan. 4, 2022
For taxable years beginning during the 2022 and 2023 calendar year, a student internship tax credit is available against the Florida corporate income/franchise tax. The Florida Internship Tax Credit Program (Program) allows credit for up to five student interns per taxable year, per corporation. The credit amount is $2,000 per student intern (maximum of $10,000 for each taxable year). A total of $2.5 million in credits are available for each of the two years of the Program.
Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida or any of its political subdivisions, municipalities, agencies, authorities or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return.
Madison County Increases Its Tourist Development Tax Rate From 3% to 5%
Jan. 5, 2022
The Madison County Board of County Commissioners adopted Ordinance No. 2021-246 increasing the tourist development tax rate from 3% to 5% on transient rental transactions occurring in Madison County.
The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license.
Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.
The FICPA on Thursday joined the AICPA and 51 other state societies in calling for the IRS to issue additional K-2 / K-3 filing relief for the 2021 and 2022 tax years.
In our Feb. 25, 2022 edition of Advocacy Update, we cover:
Our call for expanded K-2 / K-3 relief
The limited relief the IRS has issued thus far
AICPA committee chair Jan Lewis' testimony before Congress
FAQ updates for the 2021 Recovery Rebate Credit
The FICPA's 2022 Compliance Auditing in Florida Practice Aid
The status of key legislation in Tallahassee
And the latest Department of Revenue TIPs
Latest News
FICPA Advocates for Businesses and Practitioners on Schedules K-2, K-3
On Feb. 24, the AICPA and 52 state CPA societies, including the FICPA, sent a letter to Assistant Treasury Secretary Lily Batchelder and IRS Commissioner Charles Rettig regarding widespread concerns about the Schedules K-2 and K-3 reporting.
“The AICPA and state CPA societies across the country call on the Treasury Department and the IRS to delay implementation of the Schedules K-2 and K-3 to 2023 (the 2022 tax year filing season) and to suspend any assessment of penalties against Partnerships or S Corporations for failing to file or failing to timely provide Schedules K-2 and K-3 for the 2021 tax year,” the letter stated.
The FICPA is strongly supporting these efforts and advocating on members’ behalf to urge the IRS and the Treasury to delay these changes to allow practitioners sufficient time to understand and implement them.
Mid-tax-filing-season updates to the Schedules leads to confusion and unintended errors. Delaying also allows the IRS adequate time to complete the e-File system to accept the new Schedules electronically. The FICPA is also echoing calls to suspend penalties for failing to file, or failing to provide in a timely manner, Schedules K-2 and K-3 for the 2021 tax year.
“While we certainly see the value in streamlining reporting tools and standardized international tax reporting, the FICPA recognizes our members have many concerns regarding the recent revisions to filing instructions on Schedules K-2/K-3,” FICPA President & CEO Shelly Weir said. “The issues raised during this filing season, due to the continual changes regarding filing obligations and the delayed e-File system, necessitate a delay until 2023.”
IRS Provides Details on K-2, K-3 Filing Relief for 2021
In response to calls for relief from the AICPA’s Foreign Partnership Reporting Task Force and the CPA profession at large, the IRS on Feb. 16 provided further details on additional transition relief for certain domestic partnerships and S corporations preparing the new schedules K-2 and K-3.
Notice 2021-39 PDF provides penalty relief for good-faith efforts to adopt the new schedules. Today's transition relief, appearing in new frequently asked questions (FAQs) on Schedules K-2 and K-3, allows an additional exception for tax year 2021 filing requirements by certain domestic partnerships and S corporations.
The IRS is providing an additional exception for tax year 2021 to filing the Schedules K-2 and K-3 for certain domestic partnerships and S corporations. To qualify for this exception, the following must be met:
In tax year 2021, the direct partners in the domestic partnership are not foreign partnerships, foreign corporations, foreign individuals, foreign estates or foreign trusts.
In tax year 2021, the domestic partnership or S corporation has no foreign activity, including foreign taxes paid or accrued or ownership of assets that generate, have generated or may reasonably expected to generate foreign source income (see section 1.861-9(g)(3)).
In tax year 2020, the domestic partnership or S corporation did not provide to its partners or shareholders nor did the partners or shareholders request the information regarding (on the form or attachments thereto):
Line 16, Form 1065, Schedules K and K-1 (line 14 for Form 1120-S), and
Line 20c, Form 1065, Schedules K and K-1 (Controlled Foreign Corporations, Passive Foreign Investment Companies, 1120-F, section 250, section 864(c)(8), section 721(c) partnerships, and section 7874) (line 17d for Form 1120-S).
The domestic partnership or S corporation has no knowledge that the partners or shareholders are requesting such information for tax year 2021.
The AICPA’s Foreign Partnership Reporting Task Force has been tackling K-2 and K-3 issues and questions since the draft forms were released in 2020 and continues to work on behalf of members and taxpayers to try to streamline the reporting process.
The FICPA will watch for additional information about the relief and will push that information to members as soon as it is released.
You can learn more about Schedule K-2 and K-3 concerns via the content linked below.
Late last week, Jan Lewis, AICPA Tax Executive Committee chair, testified in Washington at a Senate Finance Committee hearing, “Spotlighting IRS Customer Service Challenges.”
Her testimony covered multiple issues, including the AICPA’s long-term strategic recommendations to improve IRS service, and recommendations made with the Tax Professionals United for Taxpayer Relief Coalition. As a tax practitioner, Lewis shared specific examples of the problems taxpayers and CPAs are experiencing.
The guide helps Florida independent auditors understand the compliance issues that may be addressed in an audit of a Florida local government. It provides assistance in testing and reporting compliance matters in connection with audits of Florida's local governmental entities, including counties (all county constitutional officers), municipalities and special districts. The Practice Aid does not include district school boards.
The Practice Aid provides listings or examples of statutory and other legal references pertinent to the audits of the respective types of Florida local governmental entities. The publication does not represent or establish professional standards in auditing and is not an authoritative professional reference source. It should be used only in conjunction with generally accepted auditing standards and other authoritative guidelines.
Adopts the 2022 version of the Internal Revenue Code for purposes of the state corporate income tax code; revises the timeframe during which the adjustment of the corporate tax rate based on net collections exceeding adjusted forecasted collections applies; provides for retroactive operation; provides applicability for adjustments taxpayers must make to adjusted federal income with respect to bonus depreciation, etc.
Prohibits taxpayers from submitting certain records in tax proceedings under certain circumstances; authorizes the Department of Revenue to respond to contact initiated by taxpayers to discuss audits; clarifies conditions for application of an exemption for sales taxes for certain nonresident purchasers of boats or aircraft; deletes a tax exemption for building materials used in the rehabilitation of real property located in an enterprise zone; revises the period in which, and conditions under which, the executive director of the department may adopt emergency rules; excludes certain benefit charges from the employer reemployment assistance contribution rate calculation, etc.
Effective Date: July 1, 2022
Status: CS by Finance and Tax Committee; read first time
On Committee agenda – Appropriations, Feb. 28, 2022
Provides that certain requirements must be met before adopting the regulation of an unregulated profession or occupation or the substantial expansion of regulation of a regulated profession or occupation; requires the proponents of legislation that proposes such regulation to provide certain information to the state agency that would have jurisdiction over the proposed regulation and to the Legislature by a certain date; requires such state agency to provide certain information to the Legislature within a specified timeframe; provides an exception, etc.
Prohibits an applicable board, or the Department of Business and Professional Regulation if there is no such board, from inquiring into or considering the conviction history of an applicant for licensure until it is determined that the applicant is otherwise qualified; prohibiting the applicable board, or the department if there is no board, from denying an application for licensure of a person based solely or in part on an applicant’s criminal history; provides requirements for determining if such criminal history directly relates to the practice of the applicable profession; provides requirements for court-ordered sealing of certain records that were automatically sealed by the Department of Law Enforcement under specified provisions, etc.
Effective Date: July 1, 2022
Status: Favorable by Appropriations Subcommittee on Criminal and Civil Justice - YEAS 7, NAYS 0 On Committee agenda – Appropriations, Feb. 28, 2022
To view more legislation the FICPA is tracking during the 2022 Legislative Session, log in to your member account and visit our Advocacy Action Center.
2022 Legislative Session: Important Dates
Feb. 26: All bills are immediately certified
March 1: 50th-day rule (Senate) – last day for regularly scheduled committee meetings
March 10: After the 58th day (March 9) of a regular session, the House may consider only returning messages, conference reports and concurrent resolutions
March 11: 60th day – last day of Regular Session
DOR TIPs
The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) in 2022.
Administration
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit
Feb. 7, 2022
Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness.
Change in Local Communications Services Tax Rate Beginning May 1, 2022
Jan. 27, 2022
Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute.
Florida Corporate Income Tax 2022 Automatic Refund
Jan. 13, 2022
An automatic refund is available for Florida corporate income/franchise tax returns filed on or before Feb. 1, 2022, for taxable years beginning on or after April 1, 2019, and on or before March 31, 2020 (subject to any 2022 law change). For most taxpayers, this will be the return for taxable year ending Dec. 31, 2020.
Florida Corporate Income/Franchise Tax – Internship Tax Credit Program
Jan. 4, 2022
For taxable years beginning during the 2022 and 2023 calendar year, a student internship tax credit is available against the Florida corporate income/franchise tax. The Florida Internship Tax Credit Program (Program) allows credit for up to five student interns per taxable year, per corporation. The credit amount is $2,000 per student intern (maximum of $10,000 for each taxable year). A total of $2.5 million in credits are available for each of the two years of the Program.
Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida or any of its political subdivisions, municipalities, agencies, authorities or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return.
Madison County Increases Its Tourist Development Tax Rate From 3% to 5%
Jan. 5, 2022
The Madison County Board of County Commissioners adopted Ordinance No. 2021-246 increasing the tourist development tax rate from 3% to 5% on transient rental transactions occurring in Madison County.
The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license.
Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.
As the Legislative Session continues to make news here in Florida, the FICPA, other state organizations and the AICPA influenced national policy this week, successfully advocating for additional taxpayer relief from the IRS.
In our Feb. 11, 2022, edition of Advocacy Update, we cover:
The IRS' suspension of automatic collection notices
Our profession's ongoing advocacy efforts in the face of IRS service challenges
Melanie Griffin's confirmation as Secretary of the Florida DBPR
The status of key legislation in Tallahassee
Recent DOR updates, and more
Latest News
IRS suspends automatic collection notices
In response to a call from the FICPA, other state societies and the Taxpayer Relief Coalition, the IRS on Wednesday suspended more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax and the IRS has no record of a taxpayer filing a tax return. These mailings include balance-due notices and unfiled tax return notices.
The FICPA worked with the AICPA and members of the Florida Congressional Delegation, requesting their signatures on a bipartisan letter asking the U.S. Treasury Department for improvements and taxpayer relief during the 2022 filing process.
The table below outlines the notices that have been suspended.
This notice is generally sent when the IRS credited payments and/or other credits to a taxpayer’s account for the tax period shown on the notice, but the IRS hasn’t received a tax return for that tax period.
Final Balance Due Notice - 3rd Notice, Intent to Levy
The IRS sends this notice when a payment has not been received for an unpaid balance. This notice is a Notice of Intent to Levy (Internal Revenue Code Section 6331 (d)).
This letter is mailed to taxpayers who have been identified as having under-withholding of Federal tax from their wages. This letter provides instructions to the taxpayer on how to properly correct their tax withholding.
During the AICPA’s Feb. 8 webinar, “Is Help on the Way from the IRS for this Filing Season?” stakeholders discussed issues taxpayers and tax practitioners face as they enter a third filing season during the COVID-19 pandemic. Participants learned about the coalition’s recommendations that the group believes the IRS is able to immediately implement to provide relief to taxpayers and practitioners. The discussion included steps the coalition is taking, including conversations on Capitol Hill, to ensure the recommendations are adopted. Finally, stakeholders discussed their suggestions to help practitioners navigate a challenged tax-administration system.
Among the hearing speakers was Congresswoman Judy Chu, author of the recent bipartisan letter to the Treasury Department urging the Department to bring immediate relief to filers by reducing the need to contact the IRS. The FICPA called on Florida Congressional representatives to support the letter.
The hearing included an update from Collins on IRS services and a discussion about the IRS’ transition away from the use of facial recognition technology.
“To allow taxpayers access to the IRS online accounts, there are serious privacy concerns with the use of this technology,” Committee Chairman Bill Pascrell said. “I look forward to working with the IRS and the Administration to find solutions that balance the need for identity-theft protections against privacy concerns raised by this technology.”
Town Hall Covers K-2/K-3 Disclosure Requirements
Many FICPA members also have asked questions and expressed concerns about the recent IRS announcement regarding Schedules K-2 and K-3 disclosure requirements.
The AICPA’s Foreign Partnership Reporting Task Force has been tackling K-2/K-3 issues and questions since the draft forms were released in 2020 and continues to work on behalf of members and taxpayers to try to streamline the reporting process. However, members need to be aware of the reporting requirements for their passthrough entity clients (partnerships and S corporations).
Lisa Simpson, AICPA vice president – firm services, discussed the K-2/K-3 issue in the AICPA’s Feb. 3 Town Hall.
On Feb. 8, the Florida Senate Committee on Regulated Industries confirmed Melanie Griffin as secretary of the Florida Department of Business and Professional Regulation.
“In many ways, this opportunity was never a given,” Secretary Griffin said. “Having first been told it was not financially possible for me to attend my dream school, The Florida State University, generous donors funded scholarships that made it possible for me to receive my finance degree from FSU. Thank you to everyone that invested in me, and please note that I’ve paid it forward by mentoring hundreds of students and young professionals to give them the same chance that I have had, thanks to generous donors.”
Griffin, of Tampa, is an Attorney with Shumaker, Loop & Kendrick and senior advisor for business-to-business relationships for Shumaker Advisors Florida. She is also the Founder and Owner of Spread Your Sunshine, a business that provides speaking and professional-training services; and designs, manufactures and sells inspirational products and gifts. Griffin is president of the Hillsborough Association of Women Lawyers Executive Board of Directors; serves on the Florida State University College of Law Board of Visitors; and is a Fellow of The Florida Bar Foundation. She earned her bachelor’s degree in finance, master of business administration and juris doctor degree from Florida State University.
“Since law school I’ve been a business attorney for just shy of about 15 years, and I also am a small business owner, which give me a unique perspective on government, and how we can better serve our clients and constituencies,” Griffin said. “I am now officially in month two on the job, and honored to work with Gov. DeSantis and our team at the agency to play such a critical role in growth and professional success for so many Floridians.
“This session we are working to increase operational efficiencies and enhance levels of service for licensees with new, technology-focused ideas,” Griffin said. “The Governor’s Freedom First budget included major investments that would modernize the technological capabilities of DBPR and minimize the burdens of government processes by delivering new, meaningful long-term benefits for all of the industries licensed and regulated by DBPR.”
We warmly congratulate Secretary Griffin and look forward to continuing our longstanding partnership with DBPR.
CPA Evolution will impact today’s interns; how can firms prepare?
The article, written by Carl Mayes, AICPA senior director – audit & accounting quality, is targeted to public accounting firm leaders as they consider their hiring and training plans for 2022. It highlights what firms need to consider to attract candidates, and how firms can assist universities as they make curriculum changes in advance of the new CPA exam, to be released in January 2024.
Adopts the 2022 version of the Internal Revenue Code for purposes of the state corporate income tax code; revises the timeframe during which the adjustment of the corporate tax rate based on net collections exceeding adjusted forecasted collections applies; provides for retroactive operation; provides applicability for adjustments taxpayers must make to adjusted federal income with respect to bonus depreciation, etc.
Prohibits taxpayers from submitting certain records in tax proceedings under certain circumstances; authorizes the Department of Revenue to respond to contact initiated by taxpayers to discuss audits; clarifies conditions for application of an exemption for sales taxes for certain nonresident purchasers of boats or aircraft; deletes a tax exemption for building materials used in the rehabilitation of real property located in an enterprise zone; revises the period in which, and conditions under which, the executive director of the department may adopt emergency rules; excludes certain benefit charges from the employer reemployment assistance contribution rate calculation, etc.
Effective Date: July 1, 2022
Status: CS by Finance and Tax Committee - YEAS 7, NAYS 0
Pending reference review under Rule 4.7(2) - (Committee Substitute)
Provides that certain requirements must be met before adopting the regulation of an unregulated profession or occupation or the substantial expansion of regulation of a regulated profession or occupation; requires the proponents of legislation that proposes such regulation to provide certain information to the state agency that would have jurisdiction over the proposed regulation and to the Legislature by a certain date; requires such state agency to provide certain information to the Legislature within a specified timeframe; provides an exception, etc.
Prohibits an applicable board, or the Department of Business and Professional Regulation if there is no such board, from inquiring into or considering the conviction history of an applicant for licensure until it is determined that the applicant is otherwise qualified; prohibiting the applicable board, or the department if there is no board, from denying an application for licensure of a person based solely or in part on an applicant’s criminal history; provides requirements for determining if such criminal history directly relates to the practice of the applicable profession; provides requirements for court-ordered sealing of certain records that were automatically sealed by the Department of Law Enforcement under specified provisions, etc.
Effective Date: July 1, 2022
Status:Voted favorable by Regulated Industries - YEAS 8, NAYS 0 In Appropriations
To view more legislation the FICPA is tracking during the 2022 Legislative Session, log in to your member account and visit our Advocacy Action Center.
2022 Legislative Session: Important Dates
Feb. 26: All bills are immediately certified
March 1: 50th-day rule (Senate) – last day for regularly scheduled committee meetings
March 10: After the 58th day (March 9) of a regular session, the House may consider only returning messages, conference reports and concurrent resolutions
March 11: 60th day – last day of Regular Session
DOR TIPs
Since the last issue of Advocacy Update, the Florida Department of Revenue has published these helpful Tax Information Publications (TIPS).
Administration
New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit
Feb. 7, 2022
Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness.
Change in Local Communications Services Tax Rate Beginning May 1, 2022
Jan. 27, 2022
Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute.
The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license.
Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.
In response to a call from the FICPA, other state societies and the Taxpayer Relief Coalition, the IRS on Wednesday suspended more than a dozen additional letters, including the mailing of automated collection notices.
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