Don’t miss out on this CPA Day at the Capitol on Jan. 31 in Sacramento. This event allows members to set the groundwork for CalCPA’s advocacy efforts for the upcoming session by discussing important issues facing the CPA profession and businesses.

CPA Day provides members with the chance to be at the forefront of several key issues, such as taxes on professional service proposals. The Legislature will reconvene in January, and CalCPA plans to once again maintain an active presence in the Capitol.

A Simple Way to Track Your CPE

Curious about what CPE you’ve taken? My CPE Tracker compiles all of your CPE in one location and in a CBA approved format. Any CPE taken through CalCPA Education Foundation automatically uploads to the tracker—and you can add CPE taken from other sources.

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AICPA to IRS: Simplify Interest Capitalization Regulations

The AICPA recommended changes to the IRS to reduce the complexity and administrative burden facing taxpayers who must comply with the interest capitalization regulations under IRC Sec. 263A(f), Special Rules for Allocation of Interest to Property Produced by the Taxpayer. The AICPA recommended that the IRS:

  • Issue proposed regulations providing related party rules;
  • Provide an optional safe harbor to follow book or the regulatory interest capitalization method;
  • Permit allocation of capitalized interest among units of property using a reasonable method;
  • Simplify the rules for capitalizing interest related to inventory;
  • Provide an election for taxpayers to opt out of the de minimis safe harbor;
  • Allow all taxpayers to elect to use the applicable federal rate plus three percentage points in lieu of the weighted average interest rate; and
  • Provide an election to not trace debt in the year traced debt is first incurred.

FASB Issues Proposed Changes on Balance Sheet Debt Classification

The Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) on classification of debt in a classified balance sheet (current versus noncurrent). Under the proposed ASU, a borrower would continue to classify its debt as noncurrent when a violation of a debt covenant has been waived, if a borrower receives a waiver before the financial statements are issued (or are available to be issued) and the waiver meets certain conditions.

The proposed amendments could result in a shift in the classification of certain debt arrangements between noncurrent liabilities and current liabilities as compared with current balance sheets in the following ways:

  1. Short-term debt that is refinanced on a long-term basis after the balance sheet date would no longer be classified as a noncurrent liability.
  2. Companies with debt that contains subjective acceleration clauses would no longer be required to assess the likelihood of acceleration of the due date when determining whether the debt is a noncurrent or current liability.

Stakeholders are encouraged to review and provide comment on the FASB’s proposal to simplify and improve the guidance on determining whether debt should be classified as a current or noncurrent liability in a classified balance sheet by May 5.

Women to Watch Award Nominations Due Feb. 17

CalCPA is looking for women who have made significant contributions to the accounting profession or who demonstrate characteristics that enable them to become leaders in the profession.

Our Women to Watch awards will be given in two categories: Experienced Leaders and Emerging Leaders. Winners will be selected by members of the Women’s Leadership Forum Planning Committee and announced at our Women’s Leadership Forum April 28.

Nomination information and applications are available online. Nomination forms are due Feb. 17.

New ‘Stand-alone’ Electronic Payment Process via E-file Channel

Beginning this month, taxpayers and tax practitioners will have the ability to submit an Electronic Fund Withdrawal (EFW) request for extension and estimate payments using tax preparation software. These payment requests will be accepted as “stand-alone,” and can be submitted separately from the e-file return. The return can be filed at a later date. The following payment types will be available:

Individuals and Fiduciary (Estate/Trust), Estimate, Extension, Business Entities (Corporations/Limited Liability Companies/Partnerships) and Extension.

Taxpayers and tax practitioners will still have the ability to submit EFW requests for return and estimate payments with the e-filed return using tax preparation software.