Hot Topics
NEW VIDEO! Click here to view a 30-Minute Update on BOI Reporting for CPAs!
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.
FincenFetch
- Members of the Nebraska Society of CPAs have access to special programs through FincenFetch to help you simplify and manage FinCEN filings for your firm.
- NEW VIDEO! 30-Minute Update on BOI Reporting for CPAs
- Watch Now: Planning Your Firm's FinCEN Filing Strategy Recorded Webinar
Nebraska CPA Journal
- Everything You Need to Know About the Corporate Transparency Act, by Baird Holm Law Firm (Issue 5, 2023)
U.S. Chamber Resources
AICPA Member Resources
FinCEN Resources
- FinCEN Beneficial Ownership Information Home Page
- Beneficial Ownership Reporting Outreach & Education Toolkit
- Brochure Introduction
- BOI Reporting FAQs
- Small Entity Compliance Guide
- FinCEN YouTube Channel
- Brief Introductory Video
- Five-Minute Demo Video
- Informational Video
- BOI E-Filing System
Risk Management/Professional Liability Considerations for CPA Firms
Additional Information
- Iowa Supreme Court permits nonattorney assistance with BOI reports, 9/9/2024
- Updated FAQs provide details on phase-in timing of BOI access, Journal of Accountancy, 4/19/2024
- BOI reporting and unauthorized disclosure penalties increased, Journal of Accountancy, 1/25/2024
- Oh BOI: The Corporate Transparency Act and CPA Firms
Journal of Accountancy, 1/2024 - Final rule issued on access to BOI, Journal of Accountancy, 12/21/2023
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 and professional services.
- Letter from Americans for Tax Reform to State Senators, 7/30/2024
- NESCPA Testimony in Opposition to LB 1 - Lori Egger, CyncHealth, 7/30/2024
- NESCPA Testimony in Opposition to LB 1 - Ryan Burger, GBE CPA PC, 7/30/2024
- Nebraska Society of CPAs "News Today" for State Senators, 7/25/2024
- NESCPA Talking Points for CPAs
- NESCPA Testimony in Opposition to LB 1308 - Stacy Watson, Lutz, 2/1/2024
- NESCPA Testimony in Opposition to LB 1308 - Brian Klintworth, HBE, 2/1/2024
How to Contact Your State Senator:
- Find Your State Senator by Entering Your Address
- Links to State Senators' Landing Pages, Including Phone & Email
Additional Information:
- Tax Foundation: Proposed Nebraska Property Tax Relief Plan Would Make Things Worse (7/23/2024)
- Professional Services Alliance Paper re: Economic & Tax Policy Pitfalls for Nebraska of "Tax Swap" to Reduce Property Taxes
- Council On State Taxation (COST) Letter re: Opposition to Tax on Business Inputs
- Americans for Tax Reform Letter to Nebraska Legislature re: Opposition to Proposals That Would Impose New & Higher Taxes on Nebraskans
- The Economic Case Against Professional Service Taxes
- The Volcker Alliance Issue Paper - The $195 Billion Challenge: Facing State Fiscal Cliffs After COVID-19 Aid Expires
- Lessons Learned From West Virginia
- Lessons Learned From Utah
- Past Failed Attempts to Tax Services
- Professional Services Alliance Resource Library: Taxation of Professional Services
Many states are currently discussing CPA licensure, with a focus on creating additional pathways to become a CPA and allowing automatic mobility for recognizing CPA credentials across state lines. Learn more through the resources below.
Feedback Requested on Pathway Exposure Draft
- AICPA/NASBA CPA Competency-Based Experience Pathway Exposure Draft
Comments due 12/6/2024 - AICPA, NASBA Propose Alternative Path to CPA Licensure, Seek Industry Input
Thomson Reuters, 9/13/2024 - AICPA, NASBA Propose a New Pathway to CPA Licensure
Journal of Accountancy, 9/12/2024
AICPA Resources
- National Pipeline Advisory Group (NPAG) Report, 7/31/2024
- Protecting CPA Mobility
- Understanding CPA Mobility Video, 1/29/2024
- Interstate Practice Compliance Checklist & Press Release, 12/14/2023
- Guidance for Managing Potential Changes in State CPA Licensure, 12/13/2023
- Substantial Equivalency FAQs
NASBA Resources
Nebraska CPA Journal
- President's Message: Exploring New Pathways to CPA (Issue 4, 2023)
Other Resources
- MNCPA - Tracking the conversation in all licensing jurisdictions
- How Academia Is Tackling the Accounting Talent Shortage
Journal of Accountancy, 9/1/2024
UPDATE:
- What to know about the Employee Retention Credit, Eide Bailly, 9/25/2024
- The Employee Retention Credit is a refundable tax credit still available to organizations who were adversely affected by the pandemic.
- While the deadline to file an ERC claim for 2020 has passed, you still have until April 15, 2025, to file a claim for any eligible 2021 quarter.
- The ERC voluntary disclosure program closed March 22, 2024; however, the IRS has created a process for employers to withdraw an erroneous claim that was made unintentionally. - Businesses with dubious ERC claims have another chance with the IRS, Journal of Accountancy, 8/15/2024
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.
- IRS Employee Retention Credit Information
- IRS Voluntary Disclosure Program (VDP)
- IRS Voluntary Disclosure Program (VDP) Form 15434
- The ERC: Practitioners' responsibilities to amend income tax returns, Journal of Accountancy, 2/20/2024
- Preparing for an ERC Audit? Six Key Questions IRS Will Ask, alliantgroup, 2/6/2024
- Auditor options when finding ineligible ERC claims, Journal of Accountancy, 1/20/2024
- ERC voluntary disclosure program requiring 80% claim payback launched, Journal of Accountancy, 12/21/2023
Nebraska Department of Revenue Resources
NESCPA PTET Working Group Resources
- NESCPA PTET Mechanics PowerPoint, 2/13/2024
- Are Nebraska PTET Refunds Federally Taxable? Tax Benefit Rule, by Koley Jessen, 2/5/2024
- Breaking News: Timing of Nebraska PTET Credits, 12/20/2023
- PTET Tips & Examples, NESCPA PTET Working Group, 12/11/2023
(Not yet updated for changes announced by NDOR on 12/20/2023) - Nebraska Return of Partnership Income, Form 1065N Example
- NESCPA PTET Working Group
Nebraska CPA Journal
- Nebraska Enacts Pass-Through Entity Tax Law, by Koley Jessen (Issue 4, 2023)
Additional Articles & Information
- AICPA Map of States With PTET Election, 12/19/2023
- PTE deduction: Timing issues for accrual-method taxpayers, The Tax Adviser, 4/1/2023
- Federal implications of pass-through entity tax elections, The Tax Adviser, 11/1/2022
- Questions to consider before electing into a PTE tax, The Tax Adviser, 9/1/2022
Lincoln Journal Star: Nebraska's "EPIC Option" tax petition fails to qualify for November ballot, organizers say, July 3, 2024
What You Need to Know: No New Taxes Nebraska Coalition
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.