Brought to you by the Maryland Association of CPAs Leading off Resilient U.S. economy grows 2.1 percent in 2022 The U.S. economy powered through high inflation, rising interest rates and an energy shock to grow at a solid pace over the course of 2022, according to data released Thursday by the Commerce Department. (From The Hill) Study: Maryland ninth worst state for retirees WalletHub took out a lot of the guesswork and compared the 50 states across 47 key indicators of retirement-friendliness including affordability, health-related factors and overall quality of life. Which state came out on top? Surprisingly, this time, it was not Florida. It was Virginia. Maryland ranked ninth worst. (From Fox 5 DC) Leaders batten hatches for sea of cybersecurity troubles It was a mixed year for cybersecurity in 2022 that ended with some troubling trends, with an acknowledgement at the World Economic Forum that 2023 could see major new attacks. (From Tech Republic) ChatGPT bot passes law school exam A chatbot powered by reams of data from the internet has passed exams at a U.S. law school after writing essays on topics ranging from constitutional law to taxation and torts. (From CBS News) Maryland Maryland Supreme Court to hear digital ad tax case appeal The Maryland Supreme Court will hear an appeal of a lower court’s ruling that the state’s first-in-the-nation tax on digital is unconstitutional. The court announced that it will hear an appeal from Maryland’s comptroller in May. (From The Baltimore Sun) What will Maryland's legal marijuana market look like? While the public is generally enthusiastic about legalization, which passed with 67% support, legislators have a lot of work to do to build a legal market. (From Capital News Service) Marylanders could get a shorter work week under new bill “Thank god it’s Friday,” may be a phrase that many Marylanders will soon forget. A new bill in the General Assembly proposes a pilot program that would encourage and study a shift to a four-day work week for both private and public workers. (From WTOP) With his first budget plan, Gov. Moore’s proposals begin to take shape Gov. Wes Moore leaned back on the couch in his sparse office — undecorated, so far, aside from a portrait of Frederick Douglass — in the State House and said with a smile that the $63 billion budget he’d just proposed should be anything but surprising. (From The Baltimore Sun) Tax season IRS opens 2023 tax filing season The Internal Revenue Service began the 2023 tax filing season Monday, pledging to improve taxpayer service and asking taxpayers to file electronically with direct deposit to hasten their refunds and avoid long delays. (From Accounting Today) A beleaguered IRS looks to bolster customer service The Biden administration is aiming to significantly improve customer service at the Internal Revenue Service as the 2023 tax season begins on Monday, a pivotal moment for an agency at the center of a political fight over $80 billion in additional funding it was awarded by Congress last year. (From The New York Times) IRS funding boost sets high hopes for smoother tax season Expectations for a smooth tax filing season are high after two chaotic cycles brought on by the coronavirus pandemic, which resulted in huge backlogs of tax returns and unanswered calls. (From The Hill) Comptroller Lierman kicks off Maryland's tax season Comptroller Brooke Lierman announced today that processing of personal income tax returns for Tax Year 2022 has begun and federal and state individual income tax returns are now being accepted. Federal and state corporate income tax return processing started on Jan. 12. (From Maryland.gov) Why the IRS says to expect smaller tax refunds this year The IRS is warning taxpayers at the opening of the 2023 tax filing season that they should expect smaller refunds due to pandemic relief measures that have been allowed to expire. (From The Hill) More in tax IRS clarifies crypto question on tax form Tax professionals who have begun working on their clients’ tax returns this year are encountering a slight change in wording at the top of Form 1040 when it comes to declaring whether taxpayers bought or sold any cryptocurrency last year. (From Accounting Today) Supreme Court shoots down appeal on use of COVID aid for tax cuts The U.S. Supreme Court turned away a Missouri appeal that sought to ensure states can cut taxes even as they receive $195 billion in federal pandemic relief money. (From CPA Practice Advisor) Taxpayers reminded about digital asset question and income reporting The IRS said Tuesday that it has expanded the instructions for answering a question on federal tax returns about “digital assets,” the agency’s new term for “virtual currencies.” (From the Journal of Accountancy) IRS requires 'qualified appraisals' for donating crypto The Internal Revenue Service wants people who claim tax deductions for donating cryptocurrency to charity to first receive a “qualified appraisal” of the value if it exceeds $5,000. (From Accounting Today) Accountants’ top problems for tax season 2023 If you’re not worried as we plow into the busy season, you aren’t paying attention. And if you are concerned, you’re not alone. (From CPA Trendlines) Business and industry Corporate fraud, 'like an iceberg,' may be greater than thought Only about a third of frauds in public companies are ever discovered, and that fraudulent activity is more common than previously assumed, according to new academic research. (From Reuters) SMEs fall behind on addressing climate change A readiness gap is emerging between small and large companies in terms of their responses to climate change risks. (From CFO Dive) 2023 outlook: 5 finance risks to monitor this year Inflation and recession, disgruntled workers, higher borrowing costs, and more — risks lurk everywhere in 2023. (From CFO.com) Build your skills for a career in ESG In the emerging ESG field, almost everyone is still adapting and learning. Several professionals explain how they made the transition into this key, fast-growing practice area. (From the Journal of Accountancy) Cloud technology aids the corporate tax function Tax departments are often forgotten as a big data consumer. To get a sense of what large companies deal with, just take a minute to reflect on your personal tax return. You need all your data organized and collated in a timely fashion, prior-year returns to do year-over-year line-item level comparisons and review filing activity for more than one person. (From Accounting Today) UPCOMING EVENTS Employee Benefit Plan Audit Conference Employee Benefit Plans are important to the hiring and retention of employees for any business. However, there are many aspects of plan operations that if not properly administered by plan sponsors can lead to errors and possible loss of exempt status. The Employee Benefit Plan Audit Conference equips CPAs who audit these Employee Benefit Plans with guidance on planning and performing more efficient and effective audits in accordance with the AICPA Audit and Accounting Guide and Department of Labor audit requirements. This year’s topics will include: Department of Labor Update SAS 136 – Best Practices, Lessons Learned Cybersecurity Tax Session – SACs, 5500, 990T Forensic Valuation Conference (05/12) Insights into Business Valuation, Forensic Accounting, and Litigation Support. MACPA has designed the Forensic Valuation Conference specifically to serve the critical niche of CPAs involved or interested in these sectors. This year’s topics include: • Reasonable Compensation Using IRS Job Aid • Data Analytics • Cost of Capital Jim Hitchner will be our keynote speaker! This will be a great event! 2023 Government and Not for Profit Conference – In Person and Virtual Event We are so excited to offer our Government Not for Profit Conference with both an in person and virtual component for 2023! This year will be 3 days of CPE – that is 14 hours of CPE in one event! We are offering our first day, Friday, April 28th IN PERSON ONLY at the Maritime Conference Center. Day 2, Thursday, May 4th and Day 3, Friday, May 5th will be our two VIRTUAL ONLY four hour days (a.m. only). We are excited to offer this conference to you in a reimagined way! You will pay one price, and be able to attend all three days! Public practice How small firms can win the talent wars How do you acquire great talent? First, stop thinking of small firms as undesirable places to work. What do small firms offer that large firms can never touch? (From CPA Trendlines) PCAOB sued over 'secret disciplinary proceedings' The Public Company Accounting Oversight Board is on the receiving end of a lawsuit filed by a civil liberties group for penalizing an unidentified accountant. (From Accounting Today) Auditing best practices: What academic fraud research reveals Academics who perform fraud research were asked by the Auditing Standards Board to synthesize research related to the auditor’s identification, assessment, and response to fraud risks, and to communicate best practices. (From the Journal of Accountancy) IAASB proposes rules for group audits The International Auditing and Assurance Standards Board is asking for feedback on a new section of a proposed auditing standard that would cover group audits of less complex entities. (From Accounting Today) The future of work Why hybrid work will reign in 2023 Hybrid work is here to stay. That’s the prediction from Wharton management professor Martine Haas, who was asked to share what she thinks will be the biggest workplace trend of 2023. (From The Wharton School of the University of Pennsylvania) Remote work saves commuters 72 minutes a day, study finds Working from home is saving commuters around the world 72 minutes a day, time they’re splitting between their jobs, leisure and caregiving, a new study shows. (From Bloomberg) The other hidden cost of forcing employees back to the office Many companies are pressing employees to return to the office, but potentially missing out on talent isn’t the only hidden cost. (From the Baltimore Business Journal) From our partners Get ready for these 5 questions on SECURE Act 2.0 As your clients’ trusted advisor, it’s important to have good answers to their questions on SECURE Act 2.0. Check out CPA.com’s quick reference guide to the questions you’re likely to hear first. (From CPA.com) Jan. 31 webinar: 'Inside Secrets to Offers-in-Compromise' This special program will review the inside tricks of the trade as to why some practitioners’ offers are accepted and others are denied.  Attorney Eric Green, host of the Tax Rep Network Podcast, will also review the process, the current state of non-filers, and how to set up the client for success before the tax return is even filed. (From Intuit) Jan. 31 webinar: 'Maximum Tax Relief for Large IRS Balances' Effective bookkeeping allows an accurate tax return to be prepared. But when that tax return yields a balance due, what are the next steps for your tax paying client? And how does a tax payer prevent large balances in the future? In this presentation, you gain insight into how tax resolution fits in to the tax services environment and how you as a tax professional can provide real and satisfying advice to your clients who are looking for less anxious solutions for their large tax balances. You will also gain insight in to the fears your clients may be facing and how you as the tax professional can help them alleviate those fears, helping them to gain even more confidence in you and lead to referral business from their peers. (From Intuit) AccounTrends: A 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) Save time with AuditMiner's SOC 1 Toolkits We know it is a busy time of year, and AuditMiner’s SOC 1 toolkits are designed to save you and your team a lot of time! The SOC 1 Review Toolkit provides information identified in a service organization’s Type 2, System and Organization Controls Report. It’s an Excel workbook that comes pre-loaded with information identified by the service auditor and is designed to meet audit standards for review of the Type 2, SOC 1 report. The toolkits are $250 and can be purchased directly from our website. (From AuditMiner) On-demand webinar: Predictions for the profession For many accounting practitioners, 2022 has been a year of continuing challenges, with extended filing deadlines, growing client expectations, staffing upheaval and pressure to grow through enhanced advisory work and smart use of technology. We don’t expect the pace for change to slow down in 2023. In this forward-looking session, we dig into big trends like new business models and the arrival of private equity in Top 100 firms that foreshadow historic growth. Don’t miss this panel featuring three of the most influential thought leaders in accounting as we explore what’s ahead in 2023! (From Avalara) MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here