Western CPE Blog
Breaking tax and accounting news and analysis from the experts at Western CPE.
Treasury Proposes Key Changes to Circular 230
By: The Treasury Department has proposed the first major updates to Circular 230 since 2014. The comment period ends February 24, 2025, with a public hearing scheduled for March 6, 2025. Yes, in the peak of tax season. The Notice of Proposed Rulemaking can be accessed here. Major Changes Affecting Tax Preparers Tax Return Preparation Standards Following the Loving v. IRS decision, the proposed regulations eliminate provisions related to registered tax return preparers. The standards have been revised to apply only to tax returns prepared, approved, or submitted in connection with representing a client in a matter before the IRS. The …
Tax Relief for California Wildfire Victims: What Tax Professionals Need to Know
The IRS has announced significant tax relief measures for victims of the January 2025 California wildfires and straight-line winds, primarily affecting Los Angeles County. Here’s what tax professionals need to know to serve their affected clients. Scope of Relief The relief applies to any area designated by FEMA under declaration number 4856-DR. While currently limited to Los Angeles County, practitioners should monitor IRS.gov’s disaster situations page for potential additions to the covered areas. Key Deadline Extensions The IRS has established October 15, 2025, as a universal deadline for various filings and payments originally due between January 7 and October 15, …
Disaster Relief – Federal Law Now Conforms to California Law for Certain Settlements
By: In an effort to ensure California wildfire victims achieve maximum tax relief, in 2022 and 2023 the state enacted legislation that excludes from taxable income settlement proceeds received by these taxpayers. Specifically, California allows an exclusion from gross income for:Settlement payments received from the Fire Victims Trust,Settlement payments received from Southern California Edison for claims relating to the 2017 Thomas Fire or the 2018 Woolsey Fire, andSettlement payments received from Pacific Gas and Electric Company for claims relating to the 2019 Kinkaid Fire or 2020 Zogg Fire.Now, effective December 12, 2024, federal law also excludes these payments from taxable income. …
IRS Recovered $4.7 Billion in 2024 via New Initiatives
You may have missed it during the buzz of the holiday season, but the IRS has released its latest update to the Strategic Operating Plan. The annual update reports that in 2024 the IRS recovered $4.7 billion through new initiatives in three areas:$1.3 billion collected from wealthy individuals who either failed to pay their tax debts or submit tax returns$2.9 billion recovered through IRS Criminal Investigation efforts targeting tax fraud, financial crimes, drug trafficking, cybercrime, and terrorist financing$475 million obtained from civil and criminal cases that originated from whistleblower tips A Renewed Focus on High-Income Non-Filers The IRS has attempted …
Court Battle Pauses BOI Reporting: Critical Updates for Accounting Professionals
Beneficial Ownership Information (BOI) reporting requirements, as defined in the Corporate Transparency Act (CTA) (P.L. 116-283), have undergone significant fluctuations in recent weeks. As legal interpretations continue to evolve, accounting professionals find themselves at the intersection of urgent client needs and rapidly changing compliance requirements. Navigating the miasma of shifting requirements is challenging—especially as your clients actively look to you for guidance. To keep you informed (and help you keep your clients compliant), this blog provides relevant updates, a review of the current legal state of BOI reporting, and suggested preparation strategies for accounting professionals. For an overview of the …
Free Client Letter: BOI Changes & Requirements (12-30-24)
Author’s Note: This client letter is provided by Western CPE as a free resource. However, please read it carefully to make sure that you agree with the contents of the letter, particularly noting that the letter offers your services to complete the reporting. You may also download this letter in PDF and Word formats. Beneficial Ownership Information (BOI) Reporting Requirements: What You Need to Know Dear Client,I’m writing to inform you about important updates regarding Beneficial Ownership Information (BOI) reporting requirements that affect your business.Current Status: As of December 26, 2024, due to the U.S. Court of Appeals for the …
FinCEN Extends Beneficial Ownership Information Reporting Deadline Following Court Decision
In a significant development for tax practitioners and their clients, the Financial Crimes Enforcement Network (FinCEN) has extended the deadline for most reporting companies to file their Beneficial Ownership Information (BOI) reports to January 13, 2025. This extension came shortly after the Fifth Circuit Court of Appeals lifted an injunction that had temporarily suspended the reporting requirement. Key Deadline Changes The revised deadlines reflect FinCEN’s recognition that reporting companies need additional time to comply following the period of legal uncertainty. Here are the updated filing requirements: Pre-2024 Entities Companies created or registered before January 1, 2024, now have until January …
Employment Tax Fraud Case Highlights Critical Compliance Lessons for Business Leaders
A recent employment tax fraud case serves as a stark reminder of the serious consequences business leaders face when failing to properly handle employee trust fund taxes. The case involves John Comeau, CEO of Vivid, Inc., a Campbell, California metal coating services company, who faces up to five years in prison for failing to remit approximately $1.15 million in withheld employment taxes to the IRS over nearly a decade. Sentencing is scheduled for April 30, 2025. Case Overview From 2010 through 2019, Vivid, Inc. properly withheld Social Security, Medicare, and income taxes from employee wages. However, Comeau, who held responsibility …
The Irony of Overturning Chevron: New Challenges for Federal Regulations and Tax Professionals
In a striking turn, the Supreme Court’s June 28, 2024 decision in Loper Bright Enterprises v. Raimondo dismantled Chevron deference, the 40-year precedent that gave federal agencies wide latitude to interpret ambiguous laws. Originally established by a conservative court to support deregulation under President Reagan, overturning Chevron now imposes new limits on agency authority, ironically complicating conservative regulatory goals under the incoming Trump administration. Key Impacts on Federal Regulation State Challenges Amplified:Blue states, such as California and New York, gain a potent tool to challenge federal rules on immigration, healthcare, and environmental deregulation under a Republican-led administration.Conversely, red states have …
IRS Expands Business Tax Account: What Tax Professionals Need to Know
Hurriedly spending its IRA22 money, the IRS is improving how businesses manage their tax information with significant enhancements to the Business Tax Account (BTA). This digital evolution represents a critical step forward in providing more accessible and user-friendly tax management tools for corporations and business owners.Key Expansion HighlightsThe most recent update (FS-2024-31) introduces several important changes:Expanded access for C corporationsIntroduction of Designated Officials (DOs) with full tax account accessNew Income Verification Express Service (IVES)Enhanced digital transcript and payment capabilitiesUnderstanding Corporate Designated OfficialsA Designated Official is not just any corporate employee, but a key executive with specific qualifications. These individuals must:Be …
How to Get Your First Client as a CPA
Starting from the Ground Up So, you’ve started your journey as a new CPA. You’re a new force in the market ready to build your client base, but the proposition of finding your first client can be daunting. Where to begin? Networking? SEO? Do I need to build a website from scratch? Calm down. We’ll walk you through it. Whether you’re fresh out of certification or transitioning from a larger firm to start your own practice, this guide will show you how to get accounting clients. Follow these practical guidelines to ensure that you not only get your first client, …
Navigating Virginia CPE Requirements for Accountants and Financial Professionals
Introduction Staying compliant with Virginia’s Continuing Professional Education (CPE) requirements is crucial for maintaining your CPA license and ensuring professional credibility. With a CPE reporting period running from January 1 to December 31, it’s time to review your progress and plan ahead to meet the state’s expectations. This guide breaks down the key requirements, addresses common challenges, and highlights actionable steps to stay compliant. Overview of Virginia Accounting CPE Requirements Virginia’s CPE requirements are designed to ensure CPAs maintain the skills and knowledge needed for professional excellence. Below is a summary of the key components: Total CPE Credit Hours 120 …
Washington CPE Requirements for Accountants
Introduction Staying compliant with Washington’s Continuing Professional Education (CPE) requirements is essential for maintaining your license and advancing your career as a financial professional. With the triennial reporting deadline of April 30, it’s critical to plan ahead to ensure you meet the requirements on time.This post outlines Washington State’s CPE requirements, highlights common challenges accountants face in meeting them, and provides actionable solutions to make compliance easier. Whether you’re preparing for the upcoming deadline or looking to stay ahead, we’ve got you covered. Overview of Washington Accounting CPE Requirements To maintain your CPA license in Washington, you need to meet the …
Corporate Transparency Act Enforcement Blocked — For Now
A federal district court has issued a nationwide injunction against the Corporate Transparency Act (CTA), finding the law “likely unconstitutional.” The ruling in Texas Top Cop Shop, Inc. vs. Garland, filed on December 3, 2024, effectively suspends the beneficial ownership information (BOI) reporting requirements that were set to take effect on January 1, 2025. The court’s order provides immediate relief to reporting companies, halting the enforcement of the CTA and its accompanying regulations pending further judicial review. This preliminary injunction represents a critical moment in the ongoing legal scrutiny of federal regulatory mechanisms, potentially signaling broader implications for corporate disclosure …
California Corner: FTB Secure Email Process Change
Effective November 23, 2024, FTB Secure Email users are no longer required to register with the California Franchise Tax Board or log in with a password to open an encrypted email. Instead, the user will have two options to view an encrypted message received from FTB: Sign in to the email account (e.g. Gmail or Yahoo account) to view the message, or: Open the message with a one-time passcode. Please note that any existing email messages received from, and replied to, FTB through FTB Secure Email before the November 23, 2024, update will only be retrievable through December 8, 2024. …
Kentucky CPE Requirements for CPAs: Stay Compliant and Meet Deadlines
Introduction Staying compliant with Kentucky’s Continuing Professional Education (CPE) requirements is essential for CPAs to maintain their licenses and uphold their professional reputation. Annual deadlines vary by license numbers, but regardless of year, CPE reporting runs the course of the year, ending on December 31, while the deadline for CPA license renewal is on August 1. Keeping track of these requirements can be tricky, and it’s important to understand the specific rules that apply to you.In this post, we’ll provide a detailed overview of Kentucky’s Board of Accountancy CPE requirements, common challenges professionals face, and solutions to help you meet …
Montana CPE Requirements: What Accountants Need to Know
Introduction Staying compliant with Montana’s Continuing Professional Education (CPE) requirements is essential for licensed accountants and financial professionals. With the license renewal deadline of December 31 approaching, now is the time to ensure your CPE credits are in order. In this post, we’ll break down Montana’s CPE requirements, highlight common challenges, and provide solutions to help you meet your reporting obligations with confidence. Overview of Montana’s Accounting CPE Requirements To maintain an active CPA license in Montana, professionals must adhere to the following CPE requirements: Key Details CPA License Renewal Deadline: December 31 (annually)CPE Reporting Period: January 1 to December 31 over a three-year …
Utah CPE Requirements: Everything Accountants Need to Know
Introduction Staying compliant with Utah’s Continuing Professional Education (CPE) requirements is essential for accountants and financial professionals. With the license renewal deadline approaching on December 31 of even-numbered years, now is the time to ensure you meet all reporting standards. This guide breaks down Utah’s CPE requirements, identifies common challenges, and offers solutions to streamline compliance. Overview of Utah Accounting CPE Requirements Understanding Utah’s CPE requirements is the first step toward compliance. Below is a clear summary of the key points: License Renewal Deadline December 31 of even-numbered years. CPE Reporting Period January 1 to December 31 biennially, ending on even-numbered …
Tennessee CPE Requirements for CPAs: Your Guide to Compliance
Introduction Maintaining compliance with Tennessee’s Continuing Professional Education (CPE) requirements is vital for Certified Public Accountants (CPAs) to keep their licenses active and uphold professional standards. With deadlines fast approaching—December 31 for even-numbered licenses in even years and odd-numbered licenses in odd years—there’s no better time to ensure you’re on track.In this post, we’ll break down Tennessee’s CPE requirements, highlight common challenges CPAs face, and provide resources to make compliance easier. Whether you’re finalizing credits or planning ahead, we’ve got you covered. Overview of Tennessee Accounting CPE Requirements Tennessee CPAs must fulfill specific CPE requirements within a biennial reporting period …
South Carolina CPE Requirements: Everything You Need to Know to Stay Compliant
Introduction Staying compliant with South Carolina’s Continuing Professional Education (CPE) requirements is critical for accountants and financial professionals. With the license renewal deadline quickly approaching on January 31, now is the perfect time to ensure you meet the state’s annual CPE requirements.This guide outlines South Carolina’s specific CPE requirements, reporting deadlines, and common challenges professionals encounter. By the end, you’ll have a clear path to compliance and a plan for choosing the right courses to meet your needs. Overview of South Carolina Accounting CPE Requirements To maintain your license in South Carolina, you must fulfill the following CPE requirements:Total CPE Hours …