CPA Now Blog

The Pennsylvania elections -- both state and federal -- are receiving national attention this year, and the May 17 primary will determine which candidates will move forward as their parties' nominees for the November general election. This blog provides an overview of your primary election options, at both the state and federal levels.

Until very recently, there were absolutely no regulations about how businesses could collect, store, and sell personal information, with or without permission. Now, dozens of states have introduced consumer data privacy bills. It is vital to note what these laws require and to whom they apply.

Pennsylvania Commonwealth Court ruled in January that a Philadelphia resident taxpayer who worked in Wilmington, Del., was not entitled to a credit against her Philadelphia Wage Tax liability for state income tax paid to Delaware. The court determined that Philadelphia’s taxing and crediting policies were justified on the grounds that state and local income taxes are levied separately. However, the court’s analysis in this case raises several important local taxation questions.

Sales and Use Tax Bulletin 2021-05 covers the taxation of equipment rental and equipment rental with operators. The bulletin restates the presumption that when a vendor provides the use of equipment with an operator, the transaction is a rental of equipment. As such, the charge is subject to Pennsylvania sales and use tax. This is very important to vendors of equipment rentals and services involving the use of equipment who should review their contracts to verify that the sales and use tax treatment is consistent with Pennsylvania regulations.

Statements on Auditing Standards Nos. 134-140 increase plan management’s and the plan auditor’s responsibilities for determining whether an ERISA Section 103(a)(3)(C) engagement is permissible. The most significant impact of the new standards relates to plan management’s responsibility for certified investment information. At the engagement-acceptance level, the auditor is required to inquire how plan management determined the certifying entity is a qualified institution.

The CPA Evolution Initiative intends to change the CPA licensure model and is expected to take effect in January 2024. As a result, current college sophomores and freshmen will be among the first candidates to take a revised Uniform CPA Examination in 2024. The fundamental shift encompasses a new core-plus-discipline model. Find out more about this big change in this blog.

Success as a managing partner today requires some lofty attributes to help you and your firm perform at the highest levels. This blog shares four characteristics that are necessary to both gauge and achieve performance excellence as a managing partner.

With both the political and economic environments seemingly ripe for such a discussion, the Pennsylvania General Assembly appears poised to address a variety of tax law changes. One that could appear on the legislative agenda is PICPA’s effort to address the growing inequity in state and local taxation via an elective pass-through entity tax.

The Governmental Accounting Standards Board has embarked on a fundamental reexamination of its financial reporting model, and it had appeared that it was about to reinforce existing unreliable and misleading cash-basis-like principles for governmental funds statements. Maybe its “redeliberations” are a sign it is having second thoughts.

With several well-known global companies beginning to accept cryptocurrency as payment, the emergence of crypto-IRAs, and students handling their own investments in this area, the time has come for cryptocurrencies to be included in the accounting curriculum.

Clients will sometimes turn to their CPA for assistance with certain finance-oriented human resources matters, such as helping to recruit a new CFO or “redesigning” the client’s accounting department. CPAs who provide these consulting services must remain vigilant to not step into the role of management and to ensure that there is no expectation gap with respect to the scope and limits of the human resource services rendered.

Low bond yields and the chance of having a client's principal fall when interest rates increase make bonds increasingly unappealing. However, they do provide stability to a portfolio during times of stress for stocks, so they still are a necessary component to a balanced portfolio. So, how can a portfolio add bonds without subjecting them to losses as interest rates increase?

Recent spear phishing emails are masquerading as messages from the IRS tax return preparation software. To help practitioners identify and address spear phishing threats, the IRS Stakeholder Liaison is conducting two briefings the week of March 28 to show tax professionals what some of the most recent scam emails look like.

Students today have several pathways to obtain experience and find their direction in the accounting world. Launching a career at a small vs. large CPA firm can affect the path one eventually follows. But don't automatically discount the small-firm experience. There are unique benefits to launching a career at a smaller firm.

As CPAs finalize their clients' 2021 tax documents over the next few weeks, it is imperative not to lose sight of helping clients make tax plans for the remainder of 2022 and beyond. More regular monitoring throughout the year can help ensure they are on the right track and avoid unwelcome surprises in the future. This blog offers a few items to consider.

While the certified public accountant (CPA) credential continues to be the accounting profession’s “gold standard,” you may want to consider one of the many add-on certificates to further foster your skill set and improve your value. This blog looks at a few of the options you can add to your CPA credential.

The pipeline of CPAs entering the profession has slowed to a trickle: the number of accounting students pursuing the CPA credential is at a 10-year low. The PICPA, AICPA, and big firms have been working hard to change the prospects for the profession, but individual CPAs and small firms can help too. In fact, they can work together and move things forward more quickly than bigger entities.

Form 990 is an annual filing requirement for most tax-exempt organizations, even though these organizations may not pay federal taxes. One of the form's schedules, Schedule O, is not only a requirement, but also a great way for a tax-exempt organization to communicate its mission and annual accomplishments.

Busy tax practitioners can be susceptible to making errors regarding corporate-level tax and termination exposures affecting S corporations. But through familiarity with potential exposures and the exercise of due caution, steps can be taken to avoid unnecessary tax consequences.

Perhaps environmental, social, and governance (ESG) reporting is not yet on the radar at your firm or company, but that could soon change. Forthcoming ESG rules and standards could have a significant impact on the marketplace, and the PICPA wants to know where you stand.