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What You Need to Know:  No New Taxes Nebraska Coalition

No New Taxes Nebraska Flier

The Simple Truth About the EPIC Option Consumption Tax

Lincoln Chamber Flier: Nebraska Tax Facts

Nebraska CPA Journal, Issue 5, 2023 - State Tax Briefing:  The Coming EPIC Disaster, What's in Store If the EPIC Option Becomes the Law

Tax Foundation Study:  The Shortcomings of Nebraska's EPIC Option

  • A potential Nebraska ballot initiative, known as the EPIC Option, would eliminate all income, property, and inheritance taxes and replace them with a statewide consumption tax of 7.5 percent.
  • The proposed rate is based on flawed calculations that do not reflect the tax base defined in the underlying proposal.
  • Tax Foundation calculations suggest that the EPIC plan would require a statewide consumption tax rate of 21.6 percent or more.
  • The EPIC Option does not prevent local governments from enacting consumption taxes, meaning the total rate could be much higher than advertised.
  • EPIC would likely result in substantial cross-border shopping, allowing Nebraskans close to a border with a lower sales tax state to avail themselves of the lower rates while leaving taxpayers in the interior of the state to bear the brunt of the newly established consumption tax.
  • The anticipated economic benefits of the proposed tax overhaul are unlikely to materialize under such a high consumption tax rate.
  • Policymakers seeking to constrain property taxes have better-targeted ways to achieve these aims.
Oppose Sales Tax on Accounting Services

While we respect Governor Pillen's efforts to reduce property taxes, the Nebraska Society of CPAs is opposed to the elimination of the sales tax exemption for accounting services to businesses. It is likely the Governor will call a Special Session this year since the Legislature failed to pass a tax bill by April 18. Stay tuned for developments.

How to Contact Your State Senator:

Additional Information:

Nebraska Pass-Through Entity Tax (PTET)

Nebraska Department of Revenue Resources

NESCPA PTET Working Group Resources

Nebraska CPA Journal

Additional Articles & Information

Corporate Transparency Act - New BOI Reporting Requirements

The Corporate Transparency Act (CTA), which went into effect Jan. 1, 2024, may require small businesses to report information about ownership to the government. This law aims to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market. Under the new legislation, businesses that meet certain criteria must submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details identifying individuals who are associated with the reporting company.

The CTA will impact millions of small businesses across the U.S. Knowing the intricacies of this act and its potential impact is essential for small businesses. Otherwise, they may incur criminal or civil penalties for not filing or updating this report.

Although public accounting firms are listed as a BOI exemption, the exemption only applies to public accounting firms registered in accordance with Section 102 of the Sarbanes-Oxley Act of 2002. Other accounting firms that do not meet the large operating company exemption will likely need to complete the filing, in accordance with FinCEN's Small Entity Compliance Guide.

UPDATE: Court Finds CTA & BOI Unconstitutional

On March 1, 2024, a federal district court ruled in the case of National Small Business United v. Yellen. The case was filed by National Small Business United, which is affiliated with the National Small Business Association. The court ruled the Corporate Transparency Act (which includes the beneficial ownership information, or BOI, reporting requirement) unconstitutional.

The U.S. Department of Treasury is likely to appeal the ruling; therefore, the case is expected to continue through the judicial process for an indeterminate amount of time. During that time, small businesses should continue to file BOI reports. Read more.

Nebraska CPA Journal

U.S. Chamber Resources

AICPA Member Resources

FinCEN Resources

Risk Management/Professional Liability Considerations for CPA Firms

Additional Information

Interstate Practice Mobility & Substantial Equivalency

Pending legislation in certain states may change CPA licensure requirements. Make sure you are aware how this could affect interstate practice mobility.

AICPA Resources

Nebraska CPA Journal

Employee Retention Credit (ERC)

The proposed Tax Relief for American Families and Workers Act of 2024 includes disallowing employee retention credit (ERC) claims filed after Jan. 31, 2024. The ERC provision will offset other items in the bill including restoring Sec. 174 (R&E) expensing, enhancements to the child tax credit, and other tax relief provisions. It will also allow the IRS to take meaningful action against the pervasive fraud that has plagued the ERC program. While there is a chance this tax package will not pass and be signed into law, members may want to consider filing any outstanding claims immediately since there is enough congressional concern about the ERC program that lawmakers could pass a standalone bill to end the program before the statute of limitations (April 15, 2024, for 2020 quarters and Apri 15, 2025, for 2021 quarters) occurs. The moratorium on the processing of ERC claims filed after Sept. 14, 2023, has not been lifted, according to information from the AICPA and their discussions with the IRS. The IRS continues to process claims filed prior to that time.