Brought to you by the Maryland Association of CPAs Leading off IRS destroyed 30 million paper returns due to backlog The Internal Revenue Service decided to destroy an estimated 30 million paper-filed information return documents in March 2021 because of its inability to process its backlog of paper tax returns, according to a new report. (From Accounting Today) U.S. bans accounting services to Russia The U.S. banned American accounting and consulting firms from working with Russia and imposed its first sanctions on Gazprombank as part of a package of new penalties targeted at Moscow. (From Accounting Today) Maryland shipping millions in aid to Ukraine city Maryland Gov. Larry Hogan announced Tuesday the shipment of a multimillion dollar aid package to Odesa, Ukraine, including medical supplies and body armor. (From The Associated Press) Regulators, investors zero in on cryptocurrencies How big of a deal are cryptocurrencies? So big that the SEC is getting bigger just to keep up. The regulator is increasing the size of its Crypto Assets and Cyber Unit from 30 to 50 people in an effort to protect investors who dabble in cryptocurrency markets. (From the MACPA blog) Economy Inflation, Ukraine war seen as chief financial risks High inflation, volatility in stock and commodity markets and the war in Ukraine have emerged as the chief risks to the U.S. financial system, the Federal Reserve reported on Monday in a biannual update on financial stability that warned of a system poised for potentially “sudden” disruption. (From Reuters) Prices continued to rise in April, but gains slowed a little The takeaway from the Consumer Price Index report is nuanced: Annual inflation moderated for the first time in months, but a closely watched measure actually accelerated. (From The New York Times) How small businesses can combat soaring inflation How small-business owners can combat the rapid inflation that’s curbing growth opportunities and cutting into profits. (From the Baltimore Business Journal) Maryland General Assembly What the General Assembly did for businesses in 2022 An extension of a popular tax credit and the creation of a new program aimed at spurring more activity in Maryland’s tech industry are a couple of the bills state lawmakers passed this year that could benefit businesses. (From the Baltimore Business Journal) For businesses in Maryland, paid family and medical leave a 'giant question mark' Much remains unknown about a new law passed by the Maryland General Assembly creating a paid family and medical leave program, but one thing is certain: It will cost businesses and their employees money. (From the Baltimore Business Journal) Tax IRS still hampered by backlog and staffing shortages The Internal Revenue Service is continuing to face staffing challenges that are holding back its efforts to process both last year’s and this year’s tax returns, according to a new report. (From Accounting Today) States turn to tax cuts as inflation stays hot A combination of flush state budget coffers and rapid inflation has lawmakers across the country looking for ways to ease the pain of rising prices. (From The New York Times) Tax enforcement chiefs target NFTs, decentralized exchanges A group of tax enforcement leaders from five countries, including the U.S., are collaborating on ways to investigate the use of nonfungible tokens and decentralized finance exchanges by tax criminals. (From Accounting Today) TIGTA: IRS should work to expand e-filing Ongoing processing backlogs of paper-filed returns point to the IRS’s need for a systemwide strategy to increase electronic return filing, the Treasury Inspector General for Tax Administration said in an audit report. (From the Journal of Accountancy) UPCOMING EVENTS (05/24) Business & Industry Conference The Business & Industry Conference will give not only CPAs but all financial professionals in the business and industry sectors updates on recent trends. This year’s speaker is nationally recognized Gabrielle Bosché! (06/03) Educators Symposium 2022 The modern world doesn’t work without CPAs, and there are no CPAs without accounting educators. This conference is designed for you. The Accounting Educators Symposium is an annual event that connects you with other educators, updates you on accounting industry trends, and equips you to help your students succeed. It’s about giving you the knowledge you need to better help your students succeed. 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 MAY 15TH 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: • Filing Form 2553 • IRS: Migration of e-Services sign-in • Can you ask forgiveness of 6% excise tax on excess Roth contributions? • Question about mortgage interest expense and 2 residences • Crypto mining • Maryland PTE: Another issue with delay in refund / 510C? • Anyone using Drake unhappy these past few years? Public practice Your firm’s top issues? PCPS wants to know The past few years have brought unprecedented change to firms. But expanded opportunity can also bring challenges. The AICPA’s Private Companies Practice Section CPA Firm Top Issues survey asks practitioners about critical issues facing firms. Provide your insights through this 10-minute survey and help set the focus for future resources. (From the AICPA) How to CAS: First, break bad habits A successful client accounting services practice requires increased interactions with clients. Your usual non-CAS methods of client communications are not sufficient to meet the demands and expectations of your CAS clients. You must leverage new tech tools to reach out, communicate and collaborate with clients more frequently. (From CPA Trendlines) Is your firm 'merger-ready?' Accounting firm mergers require a clear definition of success on both sides in order to be successful. Take a look at the questions that both buyers and sellers should ask themselves before making this huge decision toward a firm’s growth strategy. (From AccountingWEB) Five ways to grow new service lines As more and more CPA firms venture into consulting services, they will be faced with the question of how they should expand their non-traditional services. Some of the more common service areas include technology, wealth management and specialized consulting services for a niche or industry. (From CPA Trendlines) Business and industry Inflation pounds small business optimism to 48-year low The proportion of small business owners expecting brighter conditions for their companies slumped to the lowest level in 48 years, the National Federation of Independent Business said, primarily blaming the worst inflation in four decades. (From CFO Dive) SEC extends comment period on climate risk proposal The Securities and Exchange Commission on Monday extended until June 17 the period for public comment on its landmark proposal to require U.S.-listed companies to disclose a range of climate-related risks and greenhouse gas emissions. (From Reuters) Global ESG standard-setting gains speed Regulators and other standard setters worldwide are building a consensus behind uniform rules for gauging sustainability that could help CFOs generate credible ESG reports. (From CFO Dive) FASAB proposes changes in federal lease accounting The Federal Accounting Standards Advisory Board is looking for feedback on an exposure draft of a proposed set of technical clarifications and amendments on lease accounting for the federal government. (From Accounting Today) TQAs provide guidance on auditor reporting in annual reports New AICPA Technical Questions and Answers issued Tuesday provide non-authoritative guidance relating to auditor reporting on supplemental information included in company annual reports. (From the Journal of Accountancy) Diversity, equity, inclusion Make it real: DEI in action Many organizations have declared a commitment to diversity, equity, and inclusion, but what turns commitment into real change? From racial justice to disability access, associations are accelerating their DEI work by providing focused leadership, building engagement, measuring progress, and demanding accountability. (From AssociationsNow) How to be a trailblazer for women in the profession Women are still far behind where they should be in terms of business and accounting leadership, sitting in less than a quarter of C-suite executive offices. Women of color are in only 4% of those positions. (From the Journal of Accountancy) Moving toward a racially just workplace Booker T. Washington hoped today’s Black leaders would find easier paths to success. Has that dream been realized? A new report finds that the answer is partly yes but mostly no. (From Harvard Business Review) Accountants work on improving diversity The accounting profession is undergoing a reexamination of its efforts to address the lack of diversity, not only in the U.S. but in other parts of the world. (From Accounting Today) Future of work The Great Resignation has no end date Job turnover is 20% higher in our new remote and hybrid working world — and it’s going to stay that way, new research from Gartner, a technology research firm, shows. (From Axios) Fixing the generational divide in accounting Firm owners who hope to have a smooth succession plan must cultivate their firm’s next generation of leaders, while younger staff who hope to take over one day must be willing to learn from and compromise with older leaders. (From AccountingWEB) From our partners Empower your firm at Intuit's Ecosystem Virtual Conference Join industry experts May 18-19 for a free virtual conference focused on empowering your firm with the Intuit Ecosystem. During this two-day conference, you can participate in demos of specific tools designed to increase your workflow efficiency, learn how to effortlessly make the most of the cloud, hear everything you need to know to proactively maximize productivity and security for your firm with technology, and so much more. Register today. (From Intuit) 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) Elevate and streamline the client experience Learn how SafeSend Returns provided Papin CPA, PLLC, with the tools to elevate and streamline the e-sign experience for their clients and how the firm experienced significant time savings. Hear from Chris Papin, CPA, as he describes how the tracking component of SafeSend Returns has increased the firm’s productivity, reducing the time they spend chasing down documents by 30 percent. Watch the video here. (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