Brought to you by the Maryland Association of CPAs Leading off Spring 2022 issue of The Statement now online The Spring 2022 edition of The Statement is now available digitally. The new edition features a list of 10 things CPAs can do to improve their cybersecurity, five things CFOs can do to make their teams more future-ready, and a closer look at MACPA CEO Jackie Brown as her retirement nears. Download the issue in its entirety here. • Browse The Statement archives. EY split-up plan exposes rift among firms Ernst & Young’s plan for a possible world-wide split of its audit and consulting businesses, code-named Project Everest according to people familiar with the matter, was dismissed by major rivals Friday who said they would keep their firms in one piece. (From The Wall Street Journal) IRS warns taxpayers of annual 'Dirty Dozen' scams The IRS has begun its “Dirty Dozen” list for 2022, which includes four potentially abusive transactions involving charitable remainder annuity trusts, Maltese individual retirement arrangements, foreign captive insurance, and monetized installment sales. (From the IRS) Your job as a leader? Wander around A good boss can turn a job you tolerate into a job you love. A great boss can change your mindset at the same time. With a spreadsheet in hand, Harlan Schafer practiced what former Hewlett-Packard CEO John Young called “managing by wandering around” — getting out of your office and meeting your employees where they live, in the cubicles, hallways and lunchrooms. It’s leadership by what Peters calls “fully humanized interaction.” (From the MACPA blog) Economy Inflation outlook hinges on future wage growth The outlook for the highest inflation rate in four decades hinges on whether the tight U.S. labor market continues to fuel the fastest increase in wages since the early 1980s, according to former Treasury Secretary Lawrence Summers. (From CFO Dive) CBO projects inflation, economic growth to cool this year and next U.S. inflation and economic growth are forecast to cool later this year and in 2023, the Congressional Budget Office said Wednesday, reflecting an economy in a moment of transition. (From The Wall Street Journal) Tax Senators request details on IRS info return destruction The IRS’s decision in 2021 to destroy about 30 million unprocessed tax information returns is “deeply concerning,” the Senate Finance Committee’s GOP senators wrote in a letter to IRS Commissioner Charles Rettig. (From the Journal of Accountancy) IRS changes guidance on EITC The Internal Revenue Service has updated its frequently asked questions page on the 2021 Earned Income Tax Credit, with new information on using prior tax years to calculate it. (From Accounting Today) States help businesses save on federal taxes with SALT cap workarounds Business owners are likely saving more than $10 billion annually in federal taxes through state laws that circumvent the $10,000 cap on state and local tax deductions, according to a Wall Street Journal analysis of state data. (From The Wall Street Journal) IRS collected $4 trillion in 2021: Data Book shows details In addition to describing work performed during the pandemic, the IRS Data Book for fiscal year 2021 comprises 33 tables describing a wide variety of IRS activities from returns processed, revenue collected, and refunds issued to the number of examinations conducted and the amount of additional tax recommended, as well as budget and personnel information. (From CPA Practice Advisor) IRS upgrades 'Where’s My Refund' tool to track refunds for two years The Internal Revenue Service has enhanced its “Where’s My Refund?” online tool, introducing a new feature this week that enables taxpayers to check the status of their current tax year and tax refunds for the two previous years, as the agency continues to come under fire for processing backlogs from 2021. (From Accounting Today) UPCOMING EVENTS 2022 MACPA Beach Retreat + Annual Meeting The annual MACPA Beach Retreat is a CPE experience that’s unlike any other and we are very excited to have you join us IN PERSON this year! Network with fellow leaders in the profession and enjoy the beautiful Ocean City beach / boardwalk. Members are also encouraged to bring families and make Beach Retreat part of a working vacation. Multiple courses are offered every day of the retreat, and participants are invited to take as many (or few) sessions as they like. 2022 Student Leadership Academy- REGISTER BY JUNE 3RD June 29-30 – TOWSON, MD Attend the 2022 Student Leadership Academy to accelerate your success in the accounting/finance profession and learn which pathway is right for you! Be uniquely oriented to the Accounting and Finance profession and the important role you can play while learning what the designation CPA can do for your career • Meet top leaders in the profession • Encounter potential future employers through sponsor and firm involvement • Perfect and present your resume to Maryland employers • Connect with other top accounting and finance students • Take an in-depth look at your skills and strengths that will further your success MACPA Connect Here's what MACPA members are talking about this week Here are the topics that are trending in the MACPA Connect communities this week: • POA authority revoked • Question re: attorneys fees re: partnership interest • 1120 C corp conversion to 1120 S corp • Installment sale and divorce • Sale of property • Foreign income tax • Employer retention credit • 401(k) for non-profit condo association • K-2 question Business and industry FASB adds ESG project to agenda The FASB has agreed to move ahead with a project to set new standards for how companies account for environmental credits such as those obtained for carbon offset programs and renewable energy credits / certificates. (From CFO Dive) ESG backlash has fund clients demanding proof it works Investment clients are demanding more evidence that ESG asset managers can deliver on their promises, amid a steady stream of criticism that the industry is on the wrong track. (From Bloomberg) • Climate-related disclosure annually costs companies $677,000 on average SEC to crack down on misleading ESG claims with fund rules The Securities and Exchange Commission is taking its biggest step yet to stop money managers from misleading investors when they claim their funds are focused on environmental, social or governance issues. (From Accounting Today) How CFOs are grappling with increasing complexity in M&A market Diligent finance leaders are finding new ways to reduce risks in merger and acquisition deals and drive long-term value. (From Financial Management) Restatements surge to 15-year high on SPAC filings Special purpose acquisition companies pushed up the total number of financial restatements by all categories of businesses last year to a 15-year high, underscoring the impact from sharper scrutiny of the so-called blank-check companies by the Securities and Exchange Commission. (From CFO Dive) Public practice Today’s top 3 problems: Staffing, workflow and tech Recruiting and retention may lead the list of issues accountants are facing. But problems in managing workflow have almost doubled in the last year. (From CPA Trendlines) Accountants find new worlds of opportunity As the accounting industry emerges from dark times, many practitioners are blinking in the light of new opportunities. We’re in a different world now. (From CPA Trendlines) A needed push into remote auditing Accounting professionals have debated how, or if, to conduct audit work from remote locations for years, but the COVID-19 pandemic quickly accelerated the practice when travel and in-office work suddenly became infeasible for most. (From the Journal of Accountancy) Glass Jacobson selling to Virginia accounting firm after 60 years Glass Jacobson PA, one of Greater Baltimore’s largest accounting firms, has ended a two-year search for a merger partner with a deal to sell to a regional Virginia firm that President Edward J. Jacobson called a mirror image of his firm. (From the Baltimore Business Journal) UHY continues mid-Atlantic expansion with deal to buy Stoy, Malone & Co. UHY LLP and UHY Advisors Inc. is expanding again in Maryland with a deal to buy Stoy, Malone & Co. P.C., a 105-year-old Towson accounting firm with more than 20 employees. (From the Baltimore Business Journal) Diversity, equity, inclusion It’s Pride Month. Here’s what you need to know June is Pride Month, when the world’s LGBTQ communities come together and celebrate the freedom to be themselves. Pride gatherings are rooted in the arduous history of minority groups who have struggled for decades to overcome prejudice and be accepted for who they are. (From CNN) The path to partner has widened for women, minorities The possibilities for women and ethnic minorities are confirmed by their growing representation at the partnership levels, demonstrated in the recently released AICPA Trends report. After many years of work by accounting leaders to improve the diversity, equity, and inclusion in the profession, diverse representation at the partner level is growing. (From the Journal of Accountancy) The future of work Is the ‘remote work window’ about to close? More people are applying for remote jobs amid concern that office recalls could reduce home-working opportunities. Are they right to rush? (From the BBC) Why more businesses are considering ending the 40-hour work week With the shift in working arrangements during the pandemic, businesses are taking a closer look at their schedules. (From Fast Company) The turnover factor many workers don't want to discuss with their boss For both employers and employees, burnout has been a hot topic over the past year. Employees are looking for solutions to burnout in their careers, while companies are trying to ensure their policies and protocols aren’t contributing to burnout and increased stress on employees at a time of high turnover. (From the Baltimore Business Journal) Technology It's time for accountants to embrace fintech When it comes to fintech, accounting and finance professionals aren’t all on the same level. If you haven’t taken the time to learn about financial technology, it’s time to change that. (From AccountingWEB) ‘Quantum Internet’ inches closer with advance in data teleportation Scientists have improved their ability to send quantum information across distant computers — and have taken another step toward the network of the future. (From The New York Times) From our partners MindBridge among top emerging startups for 2022 Tracxn keeps track of the latest happenings in the world of startups and their associated ecosystems – including venture capital funds, private equity funds and investment banks amongst others. Its list of the most promising Big Data analytics startups for 2022 includes MACPA partner MindBridge! Read more here. (From Tracxn) Get 20% off AccountantsWorld software AccountantsWorld, the first professional accounting software designed specifically to help you offer full Client Accounting Services, is now available to MACPA members at an exclusive 20% discount off their first-year cost. Learn more here. (From AccountantsWorld) Workflow automation for the win Empower your staff, improve processes, and save time and money with the SafeSend Suite workflow automation platform. From engagement letters and client organizers to assembly, delivery, and e-signing of tax packages, the SafeSend Suite makes it easy! Staff love reducing the time they spend on manual, labor-intensive tasks. Clients love the intuitive, consistent experience at every step of the tax engagement. And partners love the time and money saved. Schedule a demo at safesend.com. (From SafeSend) Sage appoints new North American president Steve Hare, CEO of business software provider Sage, announced that the company has appointed Aziz Benmalek as president of its operations in the North America region. (From Accounting Today) MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here