News Updates

The past two years in the Legislature have been dominated by a few major issues. None have been as prevalent and persistent as our state’s ongoing property tax issue. We’ve had dozens of bills, an equal amount of hearings, working groups put together by Governor Pillen, interim studies, town hall meetings and more. The one thing that we’ve learned is that there is no silver bullet to instantly relieve the growing financial pressure of rising property taxes on Nebraska homeowners, farmers, retirees, and small businesses.

It’s important for our leaders to be truthful and not speak half-truths to burnish their image, particularly when it comes to the financial stability of the state, which affects every Nebraskan.

KPMG US set up a subsidiary that has filed an application in Arizona to establish a law firm in the state, with hopes of going national.

There were 291 new bills/resolutions introduced in the past two days. We will be digging our way through them as quickly as possible, so please bear with us for a day or two. Upon first glace there is plenty for people to love and hate.

Forty-four states levy a corporate income tax, with top rates ranging from a 2.25 percent flat rate in North Carolina to a 11.5 percent top marginal rate in New Jersey. Four states—Louisiana, Nebraska, North Carolina, and Pennsylvania—reduced corporate income tax rates on January 1, 2025, while two states—New Mexico and New Jersey—increased tax burdens for corporations.

Today marked the eighth legislative day and the close of a busy week filled with bill introduction, a legislative rules hearing, and Governor Pillen’s State of the State.

Sound tax planning relies on knowing the right numbers. Stay up to date on key 2025 tax figures such as updated income brackets and higher retirement catch-up contributions.

According to a new poll from the Tax Foundation and Public Policy Polling, more than half of taxpayers lack basic tax literacy, regardless of educational attainment, income level, or political affiliation.

Yesterday marked the first day of the 109th Legislature, First Regular Session.

States that saw significant domestic migration-related population growth include South Carolina, Idaho, Delaware, North Carolina, and Tennessee. At the other end of the spectrum, Hawaii lost the greatest share of its population to other states, followed by New York, California, Alaska, and Illinois. Find out where Nebraska ranks!

Walt Radcliffe, 77, died Dec. 26, 2024, while in hospice care for kidney failure and other health issues. A celebration of life will be held Friday at 2:30 p.m. at Hillcrest Country Club, 9401 O St., in Lincoln.

— The Internal Revenue Service today announced that the optional standard mileage rate for automobiles driven for business will increase by 3 cents in 2025, while the mileage rates for vehicles used for other purposes will remain unchanged from 2024.

A loophole in a new law allowed some taxpayers to get money back while many lost the chance.

Social Security benefits are not entirely tax-free. Up to 85% of your benefits can be taxed, depending on your income. Five things you or your older clients should know about Social Security include the tenet that income matters more than age.

A federal district court, finding that the Corporate Transparency Act (CTA) is likely unconstitutional, issued an order Tuesday prohibiting the enforcement of the CTA and the beneficial ownership information (BOI) reporting rule in the CTA's accompanying regulations.

To address the talent needs within the accounting profession and expand access to accounting careers, the American Institute of CPAs (AICPA) and the National Association of State Boards of Accountancy (NASBA) have proposed changes to the profession's model law. Here is information regarding each exposure draft, how to submit your comments, and links to the comment letters submitted by the Nebraska Society of CPAs to the AICPA and NASBA. All comment letters will be made public.

The Experience, Learn & Earn (ELE) program currently has 105 students enrolled this fall, representing more than 50 employers, with registration for Spring 2025 open until January 1, 2025. Mike Decker, AICPA’s vice president of CPA examination and pipeline, stated: “That’s a testament to the enduring value of the CPA credential, from the newest graduates to mid-career professionals.” The program is designed for individuals who have completed their bachelor’s degree and core accounting classes but lack the 150 credit hours required for licensure. Participants can earn up to 30 university credits through affordable online courses, with support from participating employers, including flexible work schedules and tuition reimbursement. Wendy Garvin, NASBA executive vice president, noted the program's evolution, stating, “An expanded offering to individuals not associated with a participating employer is an exciting evolution of the program.”

Elon Musk and Vivek Ramaswamy, the leaders of President-elect Donald Trump's "Department of Government Efficiency," (DOGE) are reportedly keen to create a mobile app for Americans to file their taxes free with the IRS. Sources close to the matter have told the Washington Post that the pair see an opportunity to improve how millions of taxpayers interact with the federal government. Additionally, DOGE posted on X that “In 1955, there were less than 1.5m words in the U.S. Tax Code. Today, there are more than 16m words. Because of this complexity, Americans collectively spend 6.5bn hours preparing and filing their taxes each year. This must be simplified." However, changing the tax code would require an act of Congress, leaving unclear how the DOGE organization could resolve the biggest obstacle to a new free filing system. Kyle Pomerleau, a tax expert at the conservative-leaning American Enterprise Institute, pointed out that a mobile app would not be able to know how much small business owners spend on expenses, or how much of the year a child lives with one parent as opposed to the other — inputs that are necessary to produce a federal tax return.

The AICPA Peer Review Board (PRB) has approved an update to peer review standards aimed at aligning them with new quality management (QM) standards. The Peer Review Standards Update (PRSU) No. 2, titled "Reviewing a Firm's System of Quality Management and Omnibus Technical Enhancements," is set for publication later this month. Key changes include revisions to terminology to conform with QM standards and adaptations to address risk-based considerations. The update will be effective for peer reviews starting on or after December 1, with QM-related revisions applicable for years ending on or after December 31, 2025. The board also decided that retiring partners may continue serving on peer reviews for up to 36 months.

The 2024 Nebraska Tax Incentives Annual Report has been certified to the Legislature and posted to the Nebraska Department of Revenue's website.