In this issue: PICPA Hosts Budget-Focused Webinar; Multistate Tax Collaboration Meets with COST; IRS Backlog Remains a Concern for Practitioners; and more.

In this issue: Wolf, Pa. Lawmakers Approve $42.8 Billion Budget; Pa. Lawmakers Fail to Enact SALT Proposal; Pennsylvania Ends Fiscal Year with $5.6 Billion Surplus; and more.

In this issue: Pennsylvania’s New Fiscal Year Starts Without Budget; Multistate Tax Meeting to Be Held in July; Pa. Veteran-Friendly Professional Licensing Bill Passes; and more.

Because the PICPA is a state-based organization, the government relations team keeps Pennsylvania and local tax policy issues at the core of our efforts. However, when the COVID-19 pandemic ravaged the world economy, attention to federal issues took on a new urgency

Many companies – and almost all start-up companies – heavily rely on some form of financing to keep their businesses on track to meet goals and objectives. In fact, we have seen a surge recently in the use of convertible debt instruments as a way to accomplish this, likely due to continued low interest rates (despite some recent inflation) and volatility within the market.

Business successions are generally accomplished in one of three ways: transition to next-generation family members, sale to key management or employees, or sale to an outside party. There are many considerations, both financial and nonfinancial, when deciding on a transfer of ownership. But when maximizing the net proceeds from the sale is a priority and ensuring that the majority of the proceeds are up-front cash, a sale to an outside party is the most viable option.

Certainly, CPA firms can offer wealth advisory services, but many choose not to based on compliance complexities, operational and employment costs, and parameters around maintaining independence. So, for those CPAs who opt to work with a wealth adviser on client matters, a solicitor agreement may be needed.

As the world health crisis started to unfold in 2020, financial service firms observed the growing desolation among our clients watchfully. As part of the aftermath, the way people work has been transformed. In 2022, there is now a better view of what happened and what lies ahead. The economic storm, it seems, washed away a fair number of workers with the Great Resignation that followed the health crisis. Now employers are scrambling to evaluate their methods of recruitment and retention.

Many CPAs don’t realize how everyday tasks can easily expose them to malpractice litigation. Think about it. CPAs work hard at collecting client financial information, analyzing it to answer questions, and preparing government filings and crafting statements. This is complicated, time-intensive work that must accurately hit the mark. When it doesn’t, malpractice lawsuits can ensue.

What if colleagues shouted your name every time you entered the office? You’d probably feel a lot like Norm Peterson in the classic TV comedy series Cheers. Having rewatched the show recently, I began to see parallels with the functionality of a modern finance or accounting department.

In this issue: Budget Agreement a Growing Challenge for Pennsylvania Lawmakers; CPA-PAC Annual Report Available; Pa. Senate Committee Passes Bill to Improve Financial Literacy; and more.

As more companies offer hybrid or fully remote work environments, the effort to protect trade secrets will grow as a concern. Since March 2020, legions of employees have been working from home with nearly unfettered access to company information. Some of that information may be regarded as trade secrets. Much has been written about the general cybersecurity threat remote work creates, but the exposure of trade secrets and other strategic company information poses an equally serious threat.

Statement on Auditing Standards (SAS) No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA, requires auditors to communicate in writing reportable findings from audit procedures to management or those charged with governance on a timely basis. Prior to SAS 136, these items may have been communicated verbally or in a separate report discussing internal control related matters.

Remote work arrangements are becoming increasingly commonplace. What began as a COVID-19 necessity has come to be seen as an employee benefit. However, widespread remote work could expose businesses to additional tax risks and filing obligations.

Busy tax practitioners often focus on issues of immediate urgency, which can sometimes leave them susceptible to making errors when determining the tax basis of interests in business entities, including C corporations, S corporations, and partnerships. (References to corporations and partnerships include limited liability companies treated as such for tax purposes.)

Social entrepreneurship efforts tend to be industry-specific and lean on professional practices to enact valuable changes. This feature weighs how public accounting can adopt social entrepreneurship through an analysis of two important industry stakeholders: firms and millennials.

CPAs, in both public accounting and industry, are well-positioned to collect, measure, and interpret the financial data needed to navigate organizations through a potentially long inflationary period. Reevaluating operational cost structures, calculating unit cost for products sold and services provided, tracking changes in gross margins, and assisting with pricing strategies to maintain profitable operations are a few important ways CPAs can guide and support leaders and executives. This feature will help you identify and weigh the prospects of a potential inflationary period.

In this issue: Tax Cut Proposals Advance with Pennsylvania Budget Discussions; PHFA: Mixed-Use Development Pa. Tax Credits Open for Bids; Pa. DOR Updates Taxable and Exempt Property List; and more.

In this issue: Pennsylvania Pass-Through Entity Tax Bill Advances; Pa. DOR to Change Overpayment Offsetting; Longtime PICPA Ally Sen. Browne Concedes Primary; and more.

On our 125th anniversary, the PICPA would like to share a few highlights from the past and some of our plans for how we will continue coming together to enhance the profession, serve the public, and work together to resolve common issues, big and small. Specifically, this feature looks at our membership, advocacy efforts, professional learning channels, the pipeline of new CPAs, and the profession’s reputation and ethics.