Brought to you by the Maryland Association of CPAs Leading off Podcast: The personal impact of change It’s been a year of unprecedented change. That change impacts us on a very personal level, and each of us is dealing with it in different ways. Human resources and leadership expert Karl Ahlrichs helps us understand the personal impact of change in this week’s episode of our “Future-Proof” podcast. (From the MACPA) • Subscribe: iTunes | Spotify | Google Play | Stitcher Winter 2021 issue of The Statement now online The Winter 2021 edition of The Statement is now available digitally. The new edition takes a detailed look at Tom Hood’s move to (and the Business Learning Institute’s acquisition by) the Association of International Certified Professional Accountants. Plus, a closer look at the ABCs of leadership in crisis. Download it here. • Browse the Statement archives here. Women's History Month: Why it takes place in March March is National Women’s History Month, but since women are pretty historic year-round, it begs the question: Why March? Is this month significant to women’s history, or is it just an arbitrary month on the calendar? (From CNN) International Women’s Day: Supporting women in the workplace Based on responses from recipients of the AICPA’s and CPA Practice Advisor’s 2020 Most Power Women in Accounting Awards, here are five things businesses can do to build a culture that provides greater gender equity in the workplace. (From the AICPA) COVID-19 relief Senate votes to take up COVID-19 relief bill Senate Democrats voted on Thursday to take up a sweeping $1.9 trillion coronavirus bill, teeing off what’s expected to be a days-long sprint to pass the legislation. The Senate voted 50-50 to proceed to the coronavirus relief legislation, with Vice President Harris breaking the tie to advance the bill. (From The Hill) AICPA urges Congress to extend PPP deadline The AICPA called on Congress to extend the application period for the Paycheck Protection Program by at least 60 days. The current deadline is March 31, but many applications have run into problems in the Small Business Administration’s processing platform, which has refused to accept some applications due to system problems and has caught thousands of other applications in validation checks designed to prevent fraudulent applications from being approved. (From the Journal of Accountancy) The SBA's PPP loan deadline is fast approaching. But pressure is building to extend it The Small Business Administration’s current iteration of the Paycheck Protection Program expires March 31, but small business and nonprofit groups are pushing to extend it. (From the Baltimore Business Journal) PPP borrowers can use gross income, SBA rules The Small Business Administration has issued new Paycheck Protection Program rules that allow self-employed individuals who file Form 1040, “Schedule C, Profit or Loss From Business,” to calculate their maximum loan amount using gross income instead of net profit. (From the Journal of Accountancy) COVID-19 relief bill could mean more PPP loan changes The Small Business Administration’s Paycheck Protection Program could see another set of changes if provisions from the House-passed Covid-19 relief bill become law. (From the Washington Business Journal) UPCOMING WEBCASTS (03/11) Quarterly Financial Leaders Series: Avoiding Bankruptcy – Surviving a Recession (A case study approach) Bankruptcy isn’t a four letter word, in fact, it can serve as a lifeline for a business that is struggling to stay above water. But how can you avoid filing even when everyone says that’s what you should do? Strategies and tactics for avoiding the bankruptcy option will be covered in this course, along with mastering the methodology to survive and even thrive. In order to best illustrate the steps to take, this course uses a case study approach. (03/17) Financial Analytics for Acquiring and Retaining Customers For small businesses who want to grow and get paid, Tally Street provides customer insights that help them retain customers by using data to anticipate problems before they happen.  Webcasts from Tally Street review metrics and KPIs used by accounting, sales and revenue operations to segment customers, boost retention rates, improve A/R collections and minimize risk. COVID-19 in Maryland Majority of small businesses not requiring vaccines, tests A majority of small businesses are not requiring their employees to get tested for the new coronavirus or get any COVID-19 vaccines, though the health care and hospitality industries are ahead of the curve on this requirement, according to a report released this week by the U.S. Census Bureau. (From The Daily Record) How employers can reduce vaccine hesitancy Vaccines can only end this pandemic and prevent even more death and economic disruption if enough people get them, allowing a country to achieve herd immunity. Employers can play an essential role in achieving that goal by embracing the tenets of behavioral economics to combat vaccine hesitancy. (From Harvard Business Review) Hogan appoints former CDC leader Redfield as virus adviser Gov. Larry Hogan hopes to give the state’s fight against the coronavirus pandemic a shot in the arm with the hiring of a former top federal official. (From The Daily Record) Virus did not bring financial rout that many states feared Throughout the debate over stimulus measures, one question has repeatedly brought gridlock in Washington: Should the states get no-strings federal aid? (From The New York Times) Tax season AICPA requests tax deadline postponements until June 15 The AICPA on Thursday sent a letter to the IRS urgently asking for the deadlines for filing all 2020 federal income tax and information returns and for making payments to be extended from April 15 to June 15, in response to a number of issues that make it impossible for many taxpayers to meet the April 15 deadline. (From the Journal of Accountancy) IRS faces delays, risks for tax season amid pandemic The Internal Revenue Service needs to take action to avoid processing delays this filing season due to the COVID-19 pandemic, according to a new government report. (From Accounting Today) IRS still working on last year's tax returns, may extend 2021 tax deadline Amid recent requests by the AICPA and National Association of Tax Professionals that the IRS extend the 2021 income tax filing season, millions of Americans are still challenged by a backlog at the IRS of income tax returns from last year. (From CPA Practice Advisor) Busy Season 2021 gets off to weak start Tax professionals are lurching into the heart of the 2021 busy season with 43 percent forecasting a worse year ahead than last year’s COVID-ravaged season. (From CPA Trendlines) 7 tips to help you tackle tax season In some ways, this year seems to be a repeat of last year’s tax season issues, but with added tax laws and a heightened alertness for data security threats. How do we pivot and adapt to a sequel of last year’s dynamic tax season? (From the AICPA) More in tax IRS offers guidance on employee retention credit, PPP eligibility The IRS released guidance Monday for employers claiming the employee retention credit for 2020 and how it relates to eligibility for the Paycheck Protection Program. (From Accounting Today) IRS defines 'nominal' for purposes of the Employee Retention Tax Credit Essential businesses have an additional hurdle to jump through if they are claiming an ERC because of a full or partial shutdown based on the most recent guidance issued by the IRS on Monday. (From Forbes) Depleted IRS gains momentum on Capitol Hill for funding boost The IRS is experiencing a unique moment where Democrats and Republicans are open to funding increases for the agency—but the question remains how much and for how long. (From Bloomberg) IRS paid $3 billion in interest to taxpayers because it failed to get refunds out on time The IRS penalizes taxpayers who don’t pay their tax bills on time, but the agency’s own delays are costing taxpayers billions of dollars as well. (From The Washington Post) IRS private tax debt collection program draws fire The IRS is having outsiders do some of its dirty work. Namely, it has assigned past due accounts to private debt collectors, based on the tax amounts owed. However, despite a new law change offering protection, there are concerns. (From CPA Practice Advisor) Maryland General Assembly Cannabis legalization faces roadblocks around expungement Efforts to fully legalize cannabis possession and use in Maryland include calls to expunge, or erase, certain marijuana charges from residents’ criminal records. But the automatic removal of such charges is not only not possible, it could cost more than $37.7 million. (From the Baltimore Business Journal) Climate change legislation gathers momentum at Maryland General Assembly One of the major pieces of legislation making its way through the General Assembly this session is a sweeping climate change bill. Among supporters at the State House, there is a sense of urgency about getting the bill to Gov. Hogan’s desk for his signature. (From WDVM) Maryland is planning to tax Big Tech. Can other states follow? There are a lot of states who want to follow the lead of Maryland. At the end of the day, states tend to bounce off one another when they create a policy, so this is very interesting to say the least. (From Maryland Reporter) Maryland expands tax credit to more immigrants Tens of thousands of low-wage workers — including many immigrants — now qualify for a significant tax break, after Maryland lawmakers voted to expand the program and the governor did not block the measure from becoming law last week. (From The Baltimore Sun) Public practice A&A Should firms require staff to get the COVID vaccine? CPA firms can handle the COVID-19 vaccine in a few ways – from issuing a mandate for employees to get vaccinated to encouraging or incentivizing it. While there are benefits to a firm supporting the vaccination, there are also risks. (From CPA Practice Advisor) Opportunities expand for accountants amid pandemic When the pandemic hit, accounting firms were already feeling the pressure to provide new services to their existing clients, and the industry was moving to automate more work surrounding compliance and tax returns through artificial intelligence. (From Accounting Today) What kind of firm do you want to create? There are two different approaches to client service — high touch and high tech. How you can find the right approach for your firm? (From Accounting Today) Best- and worst-paying states for accountants Gather ’round, kids. We’re going to talk about accounting salaries. The other day, Business.org came out with a report on which states (plus the District of Columbia) pay accountants the best and the worst. (From Going Concern) 7 ways to quantify how you help clients Hourly pricing has long been the standard for accounting services. But it’s not necessarily the best pricing model. There’s a language of value that clients understand and your firm needs to speak it. Otherwise, the value of your services gets lost in translation. (From AccountingWEB) Business and industry SEC task force focuses on climate and ESG issues A new SEC task force will develop initiatives to proactively identify misconduct related to environmental, social, and governance issues. (From the SEC) ERTC: Re-evaluating small employer status to increase cash payments A question has arisen amongst advisors on how to appropriately count employees when determining whether an employer is considered a large or small employer for the Employee Retention Credit. (From Forbes) COVID-19 funding could present new single audit challenges Single audit requirements are often viewed as challenging by organizations and their auditors, and that may be especially true now. The federal response to the COVID-19 pandemic included new federal programs that are subject to single audits, as well as new or revised compliance requirements. (From the AICPA) CFOs optimistic about revenue growth, plan big investments Despite the pandemic, 80 percent of CFOs in the U.S. and U.K. hold a “positive” or “extremely positive” view of the economic outlook for this year, according to a survey by Proxima. (From CFO Dive) Goodwill impairment looks to have spiked in 2020 Goodwill impairments recorded by public companies declined in 2019, but the COVID-19 pandemic appears to have caused it to spike in 2020, based on early reports. (From Accounting Today) Diversity and inclusion Finance and accounting fall short on diversity The corporate finance and accounting area underperforms compared to other job functions when it comes to diversity, equity and inclusion, according to a new study. (From Accounting Today) Why are African American students still not majoring in accounting? Why is the profession still struggling to attract African American students to major in accounting, and how can we improve existing efforts? This article presents the results of a survey that attempts to answer this very question. (From The CPA Journal) An accountant's barrier-breaking rise to CEO Last June when Sri Lankan newspapers reported that Kasturi Chellaraja Wilson was to take over as the first woman group CEO at Hemas Holdings — one of the largest public companies in Sri Lanka — congratulatory messages flooded her way. Wilson was surprised by the attention, but she realized later the reason for the public’s interest: It had to do with the sheer improbability of such a CEO role for a woman in Sri Lanka. (From Financial Management) NABA has initiatives to support Black accountants The events of 2020 renewed corporate interest in support initiatives that would bolster diversity, but black accountants remain woefully underrepresented in the profession. In honor of Black History Month, NABA officials discussed some of their plans to form new corporate partnerships and launch AI tools that would help black job seekers. (From AccountingWEB) From our partners SafeSend Exchange: Secure file transfer Are you overwhelmed by client requests for tax return packages and sensitive information throughout the year? SafeSend Exchange is the No. 1 solution for the tax and accounting profession to securely transfer documents! Learn more about SafeSend Exchange by visiting our website and get started with a free trial today. (From SafeSend) MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here