Brought to you by the Maryland Association of CPAs Leading off CPAs set sites on Annapolis as legislative session begins Maryland legislators return to Annapolis on Jan. 12 for the opening of the General Assembly’s 2022 legislation session, and the environment feels eerily similar to the 2021 session — restrictions placed on live meetings and hearings as a result of the latest COVID-19 surge. (From the MACPA blog) Podcast: The importance of legislative advocacy Leadership, important issues, and — oh, yeah — an election year make this year’s legislative session particularly complex. They also emphasis the importance of advocacy among CPAs. MACPA Legislative Executive Committee Chair Tom Hood explains in this week’s episode of “Future-Proof.” (From the MACPA) • Subscribe: iTunes | Spotify | Google Play | Stitcher The CPA profession’s ‘really interesting inflection point’ Entrepreneur and consultant Pascal Finette shares innovation lessons from interviews with other leaders and looks at why those fortunate enough to be able to work remotely can develop a routine that leads to better quality of life. (From the Journal of Accountancy) UPCOMING WEBCAST #FutureReady Resources from MACPA Preferred Providers As strategic partners of the MACPA, our Preferred Providers are on the cutting edge of the hard trends impacting the CPA profession. Whether it’s cybersecurity, automation, AI and machine learning, or any of the other issues you’re wondering about, chances are our Preferred Providers have resources for you. MACPA Town Hall (February 2022) Join us for this MACPA all member update. We will host these monthly to bring you the latest in what impacts you and the CPA profession Tax season IRS to accept 2021 tax returns starting Jan. 24 The IRS will begin accepting and processing 2021 tax returns starting Jan. 24. The IRS stated the date will allow it time to perform necessary programming and testing in advance of return filing, which it urged taxpayers and paid preparers to do electronically. (From the Journal of Accountancy) IRS warns of a messy tax season The federal tax filing season will run from Jan. 24 to April 18 this year, the Internal Revenue Service said on Monday, warning in its announcement that staffing shortages and paperwork backlogs could make for a messy and frustrating experience for taxpayers. (From The New York Times) Practitioners wary of IRS service lapses as tax season begins CPA tax professionals greeted the launch of tax season with skepticism that the IRS will be able to contend with its continuing logistical challenges, with taxpayers and their preparers likely to experience more frustration and delays. (From the Journal of Accountancy) This pandemic tax filing season is 'dumpster fire 2.0' Millions of mass affluent Americans face yet another turbulent tax season this year, as special payments sent out during the COVID pandemic scramble their federal returns — and potentially their refunds. (From Accounting Today) AICPA’s Melancon concerned about IRS bottlenecks AICPA president and CEO Barry Melancon is warning of the backlog at the Internal Revenue Service that threatens to make this tax season a difficult one for tax professionals and their clients. (From Accounting Today) Maryland General Assembly A preview of the 2022 legislative session A number of issues will be front and center as legislators head back to Annapolis, chief among them drawing new boundaries for state electoral offices. COVID will, of course, loom large logistically and legislatively. (From WYPR) Gov. Hogan proposes $4.6 billion tax relief package Maryland Gov. Larry Hogan is proposing a major tax relief package for the upcoming legislative session, but much of what the governor is supporting has stalled in the General Assembly in recent years. (From the Associated Press) Budget surplus, pot, virus, climate top issues in Maryland Maryland lawmakers gathered for their annual 90-day legislative session this week with an enormous budget surplus, while legalizing recreational marijuana, battling COVID-19 and measures to address climate change will be among the major issues before them in an election year. (From the Associated Press) Assembly’s COVID-19 protocols restore public access to legislative complex In spite of soaring COVID-19 infections and hospitalizations, the General Assembly’s pandemic safety protocols are shaping up to be much different — and more publicly accessible in some ways — than what occurred during the 2021 session. (From Maryland Matters) COVID-19 Another round of small-business relief funding? Small businesses struggling in the ongoing Covid-19 pandemic may get another round of relief — but not as much as they hoped for. (From the Baltimore Business Journal) IRS updates info on Recovery Rebate Credit and pandemic response The Internal Revenue Service has updated its guidance on claiming the Recovery Rebate Credit and issued a report Friday on how it responded last year to the COVID-19 pandemic. (From Accounting Today) More in tax TAS report focuses on impact of processing, refund delays National Taxpayer Advocate Erin M. Collins today released her 2021 Annual Report to Congress, calling calendar year 2021 “the most challenging year taxpayers and tax professionals have ever experienced.” The report says tens of millions of taxpayers experienced delays in the processing of their returns, and with 77 percent of individual taxpayers receiving refunds, “processing delays translated directly into refund delays.” (From the IRS) IRS offers compensation tables for 2022 plan year The IRS’s latest revenue ruling includes two tables for determining benefits for retirement plans that used permitted disparity. (From AccountingWEB) IRS updates FAQs for Child Tax Credit, Advance Child Tax Credit Payments The Internal Revenue Service today updated frequently asked questions for the 2021 Child Tax Credit and Advance Child Tax Credit to help eligible families properly claim the credit when they prepare and file their 2021 tax return. (From the IRS) Economy Inflation to 'remain very elevated' in 2022 The Federal Reserve’s preferred measure of inflation, the core personal consumption expenditures price index (PCE), will range from 3% to 4% this year, spurred by above-trend demand, below-trend supply, tight labor markets and the impact from prior monetary and fiscal stimulus, according to Jason Furman, chairman of the Obama administration’s Council of Economic Advisers. (From CFO Dive) World Bank slashes global growth forecast and warns about growing inequality The World Bank slashed its global growth forecast on Tuesday and cautioned that a rise in inflation, debt and income inequality could jeopardize the recovery in emerging and developing economies. (From CNBC) Employers added 199K jobs in December, including 3.4K in accounting The unemployment rate fell from 4.2% to 3.9% in December as employers added 199,000 jobs, including 3,400 in accounting and bookkeeping services, the U.S. Bureau of Labor Statistics reported Friday. (From Accounting Today) Business and industry Audit chiefs see corporate governance declining Corporate governance received a grade of B- and has slipped over the past year, according to a new survey of chief audit executives. (From Accounting Today) CFOs chase down payments, eye inventory, grip cash amid halting recovery After realizing a win by reducing the average days to payment, financial executives are looking to rationalize inventory, according to Craig Bailey of The Hackett Group. (From CFO Dive) How will ESG change in 2022? Here are 7 predictions On our better days, we can take stock of the tremendous progress that has been made across the spectrum of environmental, social, and governance (ESG) issues: 2021 was a turning point. (From Fast Company) Erica Williams sworn in as PCAOB chair The Public Company Accounting Oversight Board (PCAOB) announced that Erica Y. Williams today was sworn in as Chair. The U.S. Securities and Exchange Commission (SEC) conducted the swearing-in ceremony virtually. (From the PCAOB) Public practice As firms struggle to find workers, more are expanding overseas Bill Hagaman, CEO and managing partner at Withum, described visits to one of his accounting and advisory firm’s 150-employee branch offices. But, it’s no quick trip down the New Jersey Turnpike to this particular office. (From ROI-NJ.com) Should you update your malpractice insurance? With vast tax code changes comes the perfect opportunity to review your malpractice insurance policy and consider increasing your coverage. (From AccountingWEB) Eight ways to charm a client Clients are our customers. They pay our salary and enable us to make good livings. Do what you can to accommodate them and make them feel important – as important as they believe they are. (From CPA Trendlines) Why CPAs should collaborate more than ever CPA firms by necessity have learned much during the pandemic, from offering remote customer services to deploying cloud and other technology solutions, all with the goal of continuously providing their clients with superior service. But there was one lesson from the pandemic greater than all the rest. (From AccountingWEB) From our partners XeroCon is back! XeroCon is returning May 25-26, 2022 in New Orleans. It’s the in-person conference for cloud accounting leaders where you can connect, learn, get inspired and recharge after tax time. Starting now, tickets are 20% off ($399)! To ensure that you can focus on all the sights, sounds and fun of Xerocon, COVID-19 measures will be in place at the convention center to keep you safe. Get your ticket here. (From Xero) Reserve your Master Tax Guide now When you order your 2022 U.S. Master Tax Guide from ADP®, you’ll get access to even more tax research, news and communication tools from Wolters Kluwer – over an $8,900 value. It’s our way of saying thank you for recommending ADP to your clients’ for their payroll and HR needs. (From ADP) AccounTrends: A new podcast from Intuit Accountants Tune in to AccounTrends, Intuit Accountants’ dynamic podcast for tax and accounting professionals hosted by Intuit’s Jasen Stine. Updated every two weeks, we will bring you insights and advice from the accounting industry’s top experts and thought leaders. AccounTrends is available on Apple Podcasts​, Spotify​, and Google Podcasts​. Subscribe today! (From Intuit) MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here