Tax simplification would make life easier for some, but history paints an unlikely outlook for this sentiment. Temporary tax law changes passed at the end of 2017 as part of the Tax Cuts and Jobs Act (TCJA) are no exception. Several temporary tax laws will expire on December 31, 2025, including all the individual changes and the estate tax exemption. But with an election year next year in 2024, their fate is anyone’s guess. We cannot predict what will happen with certainty, but a few bills out in the legislature that may provide hints about what Congress is focusing on in the near term.
In March 2023, the IRS added aggressive promoters making offers for ERC claims that are too good to be true to the IRS’s “Dirty Dozen” list. Then the IRS put a moratorium, effective September 14, 2023, on processing new claims for Employee Retention Credit through the end of 2023 to give it time to add more safeguards to prevent future abuse and to protect businesses from predatory tactics. The IRS also announced that it is working with the Justice Department to pursue fraud fueled by aggressive marketing. Does this mean that companies should not submit ERC claims? No, but the company making the claim must assume that the IRS will examine it and prepare to prove their claim.
2023 was another eventful year for the Kentucky General Assembly during the spring Legislative Session, with the passing of various policy reforms. Although state tax issues are typically not addressed during short 30-day Sessions, policymakers made significant modifications to Kentuckys tax code with major impacts on the states business community. From the onset of critical policy decisions, KyCPAs advocacy team remains present and active in the state Capitol. Currently, there are no Kentucky CPAs serving in elected positions either in Frankfort or Washington. Therefore, the Society serves as an objective resource by utilizing the collective expertise and professional guidance of Kentucky CPA practitioners. However, how do state policy reforms connect back to the KyCPA Political Action Committee (KyCPA-PAC)? It would be best to understand what the KyCPA-PAC is, what it does and how it plays an important role in the Kentucky policy process.
Louisville, Kentucky, is known for many landmarks and distinctions, namely the Kentucky Derby. Natives of the area are proud of the notoriety and the international spotlight; for two minutes in early May, practically the entire world has their eyes on Churchill Downs to witness which horse wins the Run for the Roses. Seventy miles east of Louisville in Lexington, you will find yourself in “The Horse Capital of the World.” In Lexington, Keeneland attracts the masses for several weeks during the spring and fall meet. There is no denying that the state of Kentucky holds its own in the horse industry. Kentucky CPAs have little choice when it comes to understanding tax laws that affect many of their equine-owning clients. Fall is here, and horses are running again, let’s visit a few federal tax laws common to clients who dabble in or make their living racing horses.
With hundreds of companies as customers since our founding in 2010 we have gained insight into various cyber-attacks. As a financial advisor/controller/CFO/CPA to your customers or company, the risk management duties tend to fall on your shoulders; cyber security is risk management.
Lauren Smart, CPA, is an assurance specialist and shares advice for those working towards a career as a CPA.
Lauren Duncan, CPA, is a tax accountant and shares advice for those working towards a career as a CPA.
Meet KyCPA Board Chair, Kayla Gremillion
The Kentucky Department of Revenue (KYDOR) frequently sends out notices to taxpayers that they owe additional taxes because a particular expense or itemized deduction has been disallowed, for example. This is a frustrating practice for tax professionals and taxpayers alike for many reasons; mainly because it is often more cost effective for our clients to pay the tax than pay our fees to protest or respond to these notices. It is the reality we all know and live by, as does the KYDOR.
When was the last time you reviewed the AICPA Principles of Professional Conduct? The Principles guide CPAs in their professional conduct. May some parallels be drawn between these Principles and the teachings of Master Yoda?
