Legislative Update - Week Ending Oct. 21, 2022

Legislative Update - Week Ending Oct. 21, 2022

Oct 21, 2022


Pa. Senate Passes Bill Requiring Financial Literacy Classes

The state Senate approved legislation championed by Sen. Chris Gebhard (R-Lebanon) that would require high school students to complete a half-credit course in financial literacy before they graduate. It passed by a vote of 29 to 18.

Senate Bill 1243 aspires to provide an education on pragmatic monetary issues, such as credit and credit scores, savings and investments, and college, automobile, and home loans. The content of the course will be in line with standards established by the second edition of the Voluntary National Content Standards in Economics and the 2013 National Standards for Financial Literacy, as developed by the Council for Economic Education. The new high school standard will include course work on, at a minimum, the following:

  • The true cost of credit
  • Choosing and managing a credit card
  • Borrowing money for an automobile or other large purchase
  • Home mortgages
  • Credit scoring and credit reports
  • Planning and paying for postsecondary education

The bill moves to the state House for consideration. Lawmakers have only a few days remaining in the 2021-2022 session. Any legislation not voted on by Nov. 30 – the end of the 2021-2022 Pennsylvania General Assembly – must be reintroduced in the new legislative session that begins in January.

 

Back to Top ^

 

Grantor Trust Measure Advances to Possible Senate Floor Vote

Legislation conforming Pennsylvania grantor trust law with federal law advanced to the state Senate for a possible floor vote. Lawmakers return to session Oct. 24, but with only a few days remaining on the legislative calendar it is a longshot that the bill will make it to Gov. Tom Wolf’s desk. All legislation not acted upon by legislators must be reintroduced in the new 2023-2024 session. The PICPA is advocating strongly in support of this legislation.

Senate Bill 1321, sponsored by Sen. Lisa Baker (R-Luzerne), amends the state Tax Reform Code. Under current Pennsylvania law, either a grantor (i.e., owner) of a trust or the trust’s beneficiaries are taxable on the eight enumerated classes of income subject to personal income tax, depending upon certain criteria regarding the trust and its income. Baker’s legislation conforms Pennsylvania law to federal law about which party is obligated to pay the tax owed, but it does not relieve the trust’s income from taxation.

 

Back to Top ^

 

PICPA 2022 Election Guide

On Nov. 8, 2022, Pennsylvanians will go to the polls to elect a new governor as well as representatives to the U.S. Congress, U.S. Senate, and state General Assembly. Voters living in even-numbered districts also will vote for their state Senator.

Prepare for the upcoming election by reviewing PICPA’s 2022 Pennsylvania Election Guide. You can also find a more in-depth look at the candidates in the Pennsylvania CPA Journal article, “Pennsylvania’s General Election: Big Deal Statewide and Nationally.”

Of note, four CPAs (active and inactive) are seeking election in the Pennsylvania House of Representatives: Rep. George Dunbar, CPA (Inactive) (R-Westmoreland), Rep. Keith Greiner, CPA (R-Lancaster), Rep. Ben Sanchez, CPA (Inactive) (D-Montgomery), and Rep. Nick Pisciottano, CPA (D-Allegheny).

Monday, Oct. 24, is the last day to register for the Nov. 8 general election. Polls will be open on election day from 7 a.m. to 8 p.m. The last day to request a mail-in or absentee ballot is Nov. 1. 

 

Back to Top ^

 

IRS Publishes Security Plan Resource for Accountants

Publication 5708, Creating a Written Information Security Plan for Your Tax & Accounting Practice, was recently published on IRS.gov. The document was prepared by the Security Summit, a partnership between the IRS, state tax agencies, private-sector tax groups, and tax professionals. The mission of the Security Summit is to fight identity theft and tax refund fraud.

The document is intended to provide sample information and to help tax professionals, particularly smaller practices, develop a Written Information Security Plan (WISP). It is not an exhaustive discussion of everything related to WISPs and it is not intended to serve as a substitute for firms seeking to develop their own plan based upon their specific needs and requirements. 

 

Back to Top ^

 

Breast Cancer Screening Bills Go to State House

The state Senate unanimously approved two bills that would require insurers to cover the cost of screening tools for earlier detection of breast cancer in at-risk women. Both bills now move to the House for consideration.

Senate Bill 1225, sponsored by Sen. Bob Mensch (R-Montgomery), covers Pennsylvania women with high-risk conditions, including a personal history of breast cancer, family history, genetic predisposition, dense breast tissue, or radiation therapy. The bill specifies that minimum coverage required includes all costs associated with one supplemental breast screening every year.

Senate Bill 1330, sponsored by Senate Majority Leader Kim Ward (R-Westmoreland), requires group and individual health insurance policies to cover genetic counseling and testing.

 

Back to Top ^

 

DeFoor Launches Intern to Hire Initiative

Auditor General Timothy DeFoor unveiled Intern to Hire, a new program to provide college students with paid internships leading to full-time employment with the Department of the Auditor General after graduation.

To participate, individuals must be enrolled in an accredited college or university as a full-time undergraduate student and be in a declared bachelor’s degree program with a focus on accounting, information technology, or another related field. Students must also have successfully completed at least 60 college credits.

After being accepted as an intern, students must then complete the following to be hired into a full-time position:

  • Complete 900 hours of work during the school year or within three months of graduation. Hours may be earned over the course of two years, part-time during the school year, or over holiday breaks.
  • Achieve overall “satisfactory” remarks in their final employee performance review.
  • Graduate with a bachelor’s degree that includes 12 accounting or IT credits.
  • Meet Pennsylvania residency requirements for employment.

 

Back to Top ^

 

AICPA Seeks Guidance on Corporate Alternative Minimum Tax

The AICPA has sent requests to the IRS and the Department of the Treasury seeking immediate guidance on various provisions of the new corporate alternative minimum tax (CAMT), which was enacted earlier this year as part of the Inflation Reduction Act.

The AICPA previously wrote letters to Congress in June 2022 and October 2021 with concerns about the CAMT. The most recent letter makes recommendations in five specific areas: financial reporting and accounting for income taxes; pass-through issues; general concepts, methods, and periods; international; and mergers and acquisitions.

 

Back to Top ^

 

Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More

CPA Now

Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

Premier Sponsors

Platinum Sponsors

Gallagher Bollinger Logo
CPACharge


Silver Sponsors

Paychex logo
Capstan Logo
epsa USA


Bronze Sponsors

sage-logo_bright_green_rgb_2018_28469
TaxConnex_logo_TM_tagline2019
botkeeper1
Fox School of Business, Temple University


Interested in becoming a sponsor? View packages >