Brought to you by the Maryland Association of CPAs Maryland General Assembly Sales taxes on professional services introduced A bill calling for a sales tax on professional services has been introduced in Maryland’s General Assembly. House Bill 1628, titled “Sales and Use Tax — Rate Reduction and Services,” would expand Maryland’s sales tax rate to professional services like those that CPAs provide. (From the MACPA blog) MACPA taking action to oppose sales taxes on services The MACPA is mobilizing its legislative volunteers and preparing to take action to oppose House Bill 1628, which would reduce Maryland’s sales tax rate but expand it to professional services to help pay for the Kirwan Commission’s recommended revisions to Maryland’s public education system. (From the MACPA blog) Expanding state sales tax would ‘destroy our economy,’ Gov. Hogan says Maryland Gov. Larry Hogan vowed Thursday to oppose a proposed change in the sales tax that would reduce the rate but expand who pays it by charging it on an array of services from landscaping to lawyers. (From The Baltimore Sun) MACPA members testify on General Assembly tax proposals Maryland’s CPAs are once again flexing their legislative muscles on behalf of their profession.The latest examples are Karen Syrylo, and Allen DeLeon traveling to Annapolis to testify in support of two bills. (From the MACPA blog) Anti-licensing legislation lands on our doorstep in Maryland Imagine driving over the Chesapeake Bay Bridge and at the toll booth is a sign saying it as designed by an engineer with 4.2 rating on Yelp, no license needed! Now apply the same rating to you as. CPA doing audits and taxes? (From the MACPA blog) This Week’s Podcast Cutting through the hype of blockchain The blockchain hype has been high for years, but without a lot of tangible examples of how it’s being used in the accounting and finance world. That seems to be changing. Thomson Reuters’ Keith Nichols explains in this week’s episode of “Future-Proof.” • Subscribe: iTunes | Spotify | Google Play | Stitcher Tax Is Maryland’s digital service tax innovative or insane? Digital services taxes have proven controversial regardless if they are domestic or international. Learn what digital taxes Maryland is debating in this article. (From Accounting Today) IRS coordinates with other countries to combat tax evasion Leaders from the IRS’s Criminal Investigation unit and tax authorities from Australia, the United Kingdom, Canada and the Netherlands met in Sydney, Australia, this week to set priorities for the year ahead in the fight against international tax crimes. (From Accounting Today) No need to report some transactions in video game currency, IRS says Gamers who transact in virtual currencies as part of a video game do not have to report the transactions on a tax return if the currencies do not leave the game environment, the IRS made clear in a statement released on its website Feb. 14. (From the Journal of Accountancy) IRS offers safe harbor for carbon capture credits The Internal Revenue Service provided guidance and a safe harbor Wednesday for businesses that claim carbon capture credits in an effort to reduce emissions of carbon dioxide. (From Accounting Today) SECURE Act brings more changes for tax pros All we wanted was a relatively pain-free Tax Season. Is that asking too much? Apparently. (From the MACPA blog) Upcoming events Legislation and regulation AICPA requests clarity on Sec. 465 reporting relief The AICPA has requested that the Treasury Department and the IRS issue a notice clarifying that relief on certain reporting under Sec. 465 will also apply to S corporations. (From the Journal of Accountancy) IPSASB offers guidance on social policy expenditures This new guidance complements IPSAS 42 by providing requirements for accounting for collective services and individual services. (From CPA Practice Advisor) AICPA issues statement on accounting and review services The AICPA Accounting and Review Services Committee has issued SSARS No. 25, “Materiality in a Review of Financial Statements and Adverse Conclusions.” It will amend AR-C sections 60, 70, 80 and 90 in AICPA Professional Standards. (From CPA Practice Advisor) Zuckerberg backs digital tax that could boost Facebook’s bill Mark Zuckerberg for the first time said he supports efforts to create a global digital tax that would ultimately raise the amount Facebook Inc. pays to foreign countries, in a move that may boost efforts to put a new levy in effect by year-end. (From Accounting Today) Argentina pockets $35 billion windfall after accounting change Argentina may be in deep financial trouble, but its central bank is comfortably back in the black — thanks to a small accounting maneuver. (From Accounting Today) Public practice / A&A Quiz: Auditor independence and revenue recognition Your clients are likely to come to you while they are implementing FASB’s new revenue recognition standard. Are you able to offer guidance without compromising audit independence? Take this quiz to find out. (From the Journal of Accountancy) Shut down the office: One company’s vacation solution Employees at PwC no longer need to ration their PTOs for major holidays when the entire office is closed. That’s because the global accounting firm is experimenting with company-wide shutdowns to enhance its vacation benefits. (From Accounting Today) Best practices for working with e-commerce clients E-commerce is one of the largest expanding industries in the world. A lot of capital is flowing in, and if your firm wants to take advantage of this growing sector, you will need to learn the nuances of e-commerce accounting. (From AccountingWEB) Tips to help small firms develop process in automation All too often with automation, product comes before (or instead of) process. Small firms especially need to figure out why they are automating before buying anything. (From AccountingWEB) 3 tips for redesigning benefits packages In the public accounting field, talent shortages over the past few years have led companies to offer higher pay and additional perks, all of which serve to attract top talent, but don’t always help retain them. (From CPA Practice Advisor) Business and industry Under Armour sees up to $60M hit from coronavirus disruptions Under Armour executives expect to take a $50 million to $60 million hit to revenue in the first quarter as a result of COVID-19, CEO Patrik Frisk said on a recent earnings call. (From CFO Dive) Companies take a new look at net investment hedging after FASB standard The new hedge accounting standard is encouraging more companies to re-evaluate how they are using net investment hedging for risk management, according to a new report from Deloitte. (From Accounting Today) Managing conflicts of interest in financial planning Some accountants worry that entering into financial planning services may create conflicts of interest — and they’re right, according to John Napolitano of U.S. Wealth Management, though the specific conflicts may not be what they expect. (From Accounting Today) Diageo fined for ‘overshipping’ to meet targets The SEC says the liquor company misled investors that it was achieving growth in key performance indicators through normal customer demand. (From CFO.com) The SEC falsely accused me of fraud A CFO speaks publicly of his four-year ordeal battling accounting fraud charges. (From CFO.com) Technology From blockchain tourism to blockchain reality Blockchain has become a buzzword. Technology companies that have been developing blockchain applications for accountants have used the word to generate excitement but who can blame them? That’s what tech companies have done to get their products funded and into the hands of the intended end user. (From Accounting Today) With shrinking budgets, finance spending goes to new tech Across industries, corporate finance departments are reaching maximum efficiency, but in 2020, they may have to prepare to maintain momentum with fewer resources; finance team budgets are expected to drop to less than 1 percent of annual revenue this year. (From CFO Dive) Attacked by ransomware, many companies opt to pay up The demanded ransom is often a moderate amount that would pale in comparison to the recovery and reputational costs for a company that refuses to pay. (From CFO.com) Open source information and forensic accountants The internet is a treasure trove of open source information: We all leave detailed trails of our lives on social media, professional networking platforms, and online forums. For forensic accountants, all of this material can be instrumental in conducting investigations. (From the Journal of Accountancy) IRS sees spike in data breaches for tax pros this year The Internal Revenue Service, along with its Security Summit partners at state tax authorities and tax prep companies, urged tax professionals and taxpayers Friday to use the free, multi-factor authentication feature offered on tax preparation software products, as nearly two dozen tax practitioner firms have reported data thefts to the IRS so far this year. (From Accounting Today) The future-ready CPA MACPA whitepapers offer a blueprint for the future Your future success depends on your ability to get ahead of the changes that are disrupting our profession. Two new MACPA whitepapers will help you gauge your future-readiness and provide resources to help you get there. If you’re a CPA in public practice, download your whitepaper here. If you’re an accounting and finance pro in business and industry, download your whitepaper here. MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here