Brought to you by the Maryland Association of CPAs Leading off Podcast: Choosing to thrive amid challenging times How do we thrive and grow when we’re drowning in bad news? John O’Leary — the inspirational best-selling author of “On Fire” and “In Awe” — shares his secrets in this week’s episode of our “Future-Proof” podcast. (From the Business Learning Institute) • Subscribe: iTunes | Spotify | Google Play | Stitcher What’s to come in ’21? Here are some clues New Year’s Day has come and gone, we’ve had a couple of days to chill over the long weekend, and now it’s time to look ahead. What does the coming year hold for accounting and finance professionals? These articles offer some clues. (From the MACPA blog) Exponential change applies to everything — not just technology We keep talking about exponential change in technological terms. Turns out that’s just the beginning. Exponential change goes far beyond technology and is impacting nearly every aspect of our lives. (From the Business Learning Institute) The tech that will invade our lives in 2021 This year, the technologies that we will most likely hear the most about won’t be fancy devices like smartphones or big-screen television sets. It will be the stuff we don’t usually see: workhorse software and internet products that are finding their moment now. (From The New York Times) UPCOMING WEBCASTS (01/13/21) SMART Goal-Setting as a Path to Flourishing Goal-setting is key for individuals who want to ensure that they are setting the right priorities and having the right conversations about contribution and personal development at work. This workshop looks at both components of any achievement — being and doing. Learn how to set long- and short-term goals to create success and elevate your well-being. (01/21/21) B&I Mastermind Series – Surviving, Pivoting, and Thriving in the New “Abnormal” Normal Our new normal is anything but. If you want to survive, you can’t do the same things in the same way and expect the same results. If you want to thrive, you need to pivot. Within every crisis there is opportunity, if you know how to look for it and you have the courage to go after it. In this session, you will develop a new approach to strategic planning that focuses on positive thinking, creativity, and agility.​ COVID-19 relief New PPP guidance issued by SBA, Treasury The U.S. Small Business Administration and the Treasury Department have issued guidance for the reconstituted Paycheck Protection Program. (From the Journal of Accountancy) IRS offers guidance on deducting PPP expenses The Internal Revenue Service and the Treasury Department have released guidance on claiming deductions for expenses associated with Paycheck Protection Program loans that have been forgiven. (From Accounting Today) Specialty tax provisions in the new stimulus could mean a lot for businesses Much of the interest in new COVID-19 economic relief package is on individual stimulus payments and the expansion of the Paycheck Protection Program. The bill also has far-reaching tax consequences, including in the world of specialty tax. (From Accounting Today) IRS again depositing stimulus payments in wrong bank accounts The Internal Revenue Service is once again depositing the latest round of Economic Impact Payments in the wrong bank accounts in a replay of problems experienced last year by many taxpayers. (From Accounting Today) PPP, Round 2: What to know about loan qualifications and double dipping The $284 billion reboot of the Paycheck Protection Program, part of the $900 billion stimulus package passed in late December, will be launched soon by the U.S. Small Business Administration to help small businesses hard-hit by the COVID-19 pandemic and mandates intended to contain the spread via closures and limitations. (From the Baltimore Business Journal) COVID-19 in Maryland Hogan aims to improve COVID-19 vaccine rollout Maryland is taking action to improve the reporting and rollout of the state’s allotment of coronavirus vaccines, Gov. Larry Hogan said Tuesday evening. (From Maryland Reporter) Maryland reopens federal unemployment programs, will issue payments this week Maryland has begun accepting applications and issuing payments for two federal unemployment programs that were recently extended under the new stimulus package, meaning claimants should be able to get benefits without payment delays or eligibility gaps. (From the Baltimore Business Journal) Tax IRS starts challenging year with new round of stimulus payments The IRS is kicking off a busy and challenging year by sending out the second round of stimulus payments to tens of millions of Americans. The new responsibilities come just weeks before the start of what’s expected to be a chaotic tax-filing season. (From The Hill) IRS overlooks billions in potential taxes from non-filers The Internal Revenue Service hasn’t been pursuing cases involving hundreds of billions of dollars in income from individuals and businesses whose income has been showing up in Form 1099-K information returns filed by credit and debit card providers, but has been otherwise unreported. (From Accounting Today) IRS ups fees for private letter rulings The Internal Revenue Service is increasing many of the fees for requests for private letter rulings by 26.7 percent, starting Feb. 4. (From Accounting Today) Guidance permits change in vehicle use valuation during pandemic The IRS is allowing employers to switch from the vehicle lease valuation method to the cents-per-mile method (57.5 cents for 2020, 56 cents for 2021) for determining the value of an employee’s personal use of a vehicle during the pandemic. (From the Journal of Accountancy) IRS revamps application for 501(c)4 tax-exempt status The Internal Revenue Service issued a revised Form 1024-A application Tuesday for tax-exempt status under Section 501(c)4 of the Tax Code, along with instructions permitting it to be filed electronically. (From Accounting Today) Business and industry Maryland businesses getting a tax break Maryland Comptroller Peter Franchot announced Wednesday that business taxes and quarterly estimated income tax returns and payments that normally would be due in January, February or March won’t be due until April 15. (From WYPR) IRS finalizes rules for claiming carbon capture tax credits The Internal Revenue Service and the Treasury Department have released final regulations on how businesses can claim a tax credit for use of carbon capture equipment to help the environment. (From Accounting Today) Labor Department finalizes rule on employee vs. independent contractor status The U.S. Department of Labor has issued a final rule to clarify the standard for determining whether a worker should be considered an employee or an independent contractor. (From Accounting Today) Non-PPP forgivable loan help available to startups, other SMBs Companies can get months of debt service payments made on their behalf without having to repay the assistance, even if they’re not hit by the pandemic. (From CFO Dive) FASB expected to look at goodwill, expense reporting this year Financial Accounting Standards Board Chairman Richard Jones said in an interview with The Wall Street Journal that the rule-making panel plans to consider changes to accounting for goodwill and the disclosure of expenses, two controversial issues among investors and companies. (From CFO Dive) Public practice / A&A Business funding is a key new advisory category CPAs are meeting the moment when it comes to small business relief. This is a new advisory service for the profession, one that will last through 2021 and 2022, in terms of lingering pandemic impacts. Beyond that, we firmly believe funding options will continue to be a valuable category for CPAs to explore with their small business clients. To do it right, though, firms need expanded capabilities and tools. (From CPA.com) ‘Intense’ round of PPP loan applications kicks off 2021 for CPAs Greg White spent the slow week between Christmas and New Year’s preparing for what could be a January storm: as many as 500 clients who might need his small Seattle accounting firm’s help submitting applications for another round of federal relief loans. White is hopeful, however, that this round of applications will go more smoothly than last spring. (From Bloomberg Tax) COVID-19 shakes up M&A activity We are in a fluid environment as firms adapt and learn more about what to expect. There was hope earlier that we would emerge from this economic environment by the end of 2020. It looks now like this could definitely have an impact through 2021. It is a mixed bag so far for M&A. (From CPA Trendlines) A guide to building a culture of accountability at your firm Compared to other workplaces in different industries, the typical accounting firm deals with a greater need for a direct and clear management style. (From CPA Practice Advisor) 11 ways to get clients to change their habits Whether you’re helping a client plan their financial future or file their taxes, bad habits can throw a monkey wrench in things. Financial guru Bryce Sanders lists 11 tried-and-tested ways to get clients to change those little missteps that are negatively impacting them. (From AccountingWEB) Diversity and inclusion Building a truly effective D&I initiative The power of a diverse and inclusive organization is well documented. Studies have repeatedly shown that companies with a diverse employee base are more successful. And there has always been an ethical argument for employing a range of people and ensuring that their contributions are valued. (From the Journal of Accountancy) Gender equity is not zero sum It’s easy to see why men are reluctant to engage in gender equity conversations. But we need to engage men if we want to make progress toward gender equity. One of the best ways to bring more men into diversity, equity, and inclusion initiatives starts with busting the zero-sum bias that disincentivizes male participation. (From Harvard Business Review) From our partners Preparing for PPP with the CPA Business Funding Portal Learn how your firm can best prepare for PPP2 by leveraging the right tools and capabilities. Watch this free webcast from the AICPA, CPA.com and Biz2Credit to get expert insights on the steps your firm should take. (From CPA.com) Jan. 15 webinar: COVID relief: Key measures and insights Don’t miss this opportunity to gain key insights into the new COVID-19 relief package. The new legislation delivers a second round of economic stimulus for individuals, families, and businesses. This webinar will prepare tax professionals to confidently communicate the important changes to their clients to take advantage of the new law. Register 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