Western CPE Blog
Breaking tax and accounting news and analysis from the experts at Western CPE.
Louisiana CPE Requirements: Stay Compliant and Prepared
Introduction Remaining compliant with Louisiana’s Continuing Professional Education (CPE) requirements is crucial for maintaining your CPA license and ensuring your professional growth. With the license renewal and CPE reporting deadline fast approaching on December 31, now is the perfect time to review the state’s guidelines and take action. This post outlines Louisiana’s CPE requirements for CPAs, highlights common challenges, and provides guidance on how to stay compliant. Overview of Louisiana Accounting CPE Requirements Louisiana’s CPAs must adhere to specific CPE reporting requirements to renew their licenses. Below is a summary of the key guidelines: Key Louisiana CPE Deadlines License Renewal …
Iowa CPE Requirements for Accountants and Financial Professionals
Introduction Staying compliant with Iowa’s Continuing Professional Education (CPE) requirements is crucial for maintaining your CPA license and upholding professional standards. With a potential CPE reporting period that ends on December 31 for the annual renewal deadline of June 30, it’s important to ensure you’ve met the required credit hours well before the reporting period ends. This post will provide a comprehensive overview of Iowa’s CPE reporting requirements, highlight common challenges, and offer practical solutions to simplify compliance. Overview of Iowa’s Accounting CPE Requirements Iowa CPAs must meet specific requirements to renew their licenses. Here’s a breakdown of the key details: …
Indiana CPE Requirements: Your Guide to Staying Compliant
Introduction Meeting Indiana’s Continuing Professional Education (CPE) requirements is essential for accountants and financial professionals to maintain their licenses and stay ahead in their careers. With the upcoming reporting deadline for the 2021–2024 cycle just around the corner, now is the time to ensure you’re on track. This post will guide you through Indiana’s CPE requirements for CPAs and other designations, address common challenges, and highlight solutions to make compliance easier. Overview of Accounting CPE Requirements in Indiana Understanding Indiana’s CPE requirements is crucial to staying compliant and avoiding unnecessary stress. Here’s what you need to know: Indiana CPA License …
Idaho CPE Requirements for Accountants and Financial Professionals
Introduction Staying compliant with Idaho’s State Board of Accountancy CPE requirements is essential for accountants and financial professionals to maintain their licenses and build trust with clients. With the annual license renewal deadline on June 30 and a rolling biennial CPE reporting period, understanding these requirements is key to avoiding penalties and staying on track.In this guide, we’ll cover Idaho’s accounting CPE requirements, highlight common challenges, and provide actionable steps to simplify compliance. Whether you’re a seasoned professional or newly licensed in Idaho, this post will help you navigate the essentials with ease. Overview of Idaho’s Accounting CPE Requirements Idaho’s CPE …
Arkansas CPE Requirements for Accountants and Financial Professionals
Introduction As a licensed accountant or financial professional in Arkansas, staying compliant with the state’s Continuing Professional Education (CPE) requirements is critical to maintaining your license. With the annual license renewal deadline approaching on January 1, now is the time to ensure you meet all necessary criteria. In this post, we’ll cover everything you need to know about the Arkansas State Board of Accountancy’s CPE requirements, including credit hour mandates, subject area specifics, and common challenges. We’ll also outline practical steps to help you navigate these requirements with confidence. Overview of Arkansas Accounting CPE Requirements Arkansas accountants and financial professionals …
Accounting CPE Requirements in the District of Columbia
Introduction Staying compliant with the District of Columbia’s CPE requirements is essential for maintaining your CPA license and professional credibility. With the license renewal deadline quickly approaching on December 31 of even years, now is the time to ensure your CPE credits are in order. In this guide, we’ll outline D.C. CPE requirements, address common challenges, and share solutions to help you meet your obligations before the year-end deadline. Overview of Washington D.C. CPE Requirements To renew your CPA license in the District of Columbia, here are the key requirements you must meet: Total CPE Credit Hours 80 CPE hours are required …
California Corner: California’s 15-Day Rule for New Businesses
By: As we approach the end of the year, it’s a good time to discuss the 15-day rule with your clients. Understanding the 15-day rule and realizing the rule only applies to short taxable years that are 15 days or fewer, is very important for your client’s decision about when to register their business entity with the California Secretary of State.The 15-day rule states that business entities (limited partnerships, limited liability partnerships, limited liability companies, and corporations) with a taxable year of 15 days or fewer are not required to file a tax return or pay the $800 annual/minimum tax, if …
Court Invalidates DOL Overtime Rule Nationwide
On November 15, 2024, the US District Court for the Eastern District of Texas retroactively invalidated a Final Rule from the Department of Labor (DOL) that had increased the minimum salary threshold for certain employees to be considered exempt from overtime pay under the Fair Labor Standards Act (FLSA). The rule was originally effective on July 1, 2024. An earlier ruling applied only to the State of Texas, but this decision affects all employers nationwide. The final rule provided staged increases to the standard salary level necessary for exemption from overtime pay for executive, administrative, and professional (EAP) employees. The …
Ideas & Price Tags: A Closer Look at President-Elect Trump’s Tax Reform Promises
By: As the nation heads into a period of political transition, many clients have questions about what potential tax reforms may mean for them and their finances. For this reason, Sharon Kreider, CPA, Western CPE’s Resident Tax Authority, has written a client letter that you can pass on to your clients as a trusted advisor to cut through the misinformation and keep them informed and assured. The letter is meant to be politically neutral and fact-based. Please read the letter carefully to make sure that you agree with the summary, the language, and tone, then modify it as required for your client …
DEA Considers Reclassification of Marijuana: A Potential Shift in Federal Tax Policy
By: In a move that could significantly alter the landscape of cannabis regulation in the United States, the Drug Enforcement Administration is set to hold a public hearing on the potential rescheduling of medical marijuana from a Schedule I to a Schedule III controlled substance. This development marks a pivotal moment in the ongoing debate surrounding medical marijuana’s legal status and its implications for the medical marijuana industry, law enforcement, and taxes.The proposed rescheduling of marijuana does not apply to recreational marijuana, only to medical marijuana. The Hearing: Date, Time, and Place The DEA has scheduled the public hearing for December …
The Tax Professional’s 5-Step Guide to Succession Planning
Beginning Client succession planning Succession planning for your client is more complicated than simply choosing a successor. Institutional knowledge, client relationships, and technical expertise are all important characteristics of their unique business expertise — expertise that needs to be passed down and implemented for a smooth transition at any organizational level. Whether you’re planning your own transition or advising clients, understanding the full scope of succession planning is critical for maintaining a business’s success and ensuring that the business’s legacy endures. Here are 5 steps to follow when creating a successful succession plan. Step 1: Build a Solid Foundation with …
Acqis Technology Inc. v. Comm., TCM 2024-21
Debit Cash, Credit Equity or Income? Settlements from Patent Infringement Lawsuits are Income (Acqis Technology Inc. v. Comm., TCM 2024-21) Acqis Technology’s business model was to acquire patents and engage law firms on a contingency basis to sue for patent infringement and failure to pay royalties. Defendants in some of the lawsuits entered into settlements that included licensing agreements and share purchase agreements (SPAs). The licensing agreements were generally free of additional costs to the defendants. Acqis sold Settlement Shares to the defendants. The Settlement Shares had limited dividend and distribution rights, limited liquidation rights, were nonvoting, and could not …
Growmark Inc. v. Comm., 160 T.C. No. 11 (May 16, 2023)
COGS Includes Net Amount of Excise Tax After Credit (Growmark Inc. v. Comm., 160 T.C. No. 11 (May 16, 2023)) Growmark incurs liabilities for excise taxes on fuels that it sells and is entitled to federal tax credits for some of the fuels that it produces or blends. Growmark claimed that it should be allowed to include the gross federal excise tax liability in its cost of goods sold before reducing the amount for any federal tax credits.Excise taxes are generally not deductible. (Treas. Reg. §1.164-2(f)) However, excise taxes incurred or paid in a trade or business as part of …
Betty Amos v. Comm., 11th Cir., No. 23-10532 Non-Argument Calendar (April 2, 2024)
No NOL means No NOL. (Betty Amos v. Comm., 11th Cir., No. 23-10532 Non-Argument Calendar (April 2, 2024)) Betty Amos appealed a Tax Court decision denying NOL carryforwards claimed in tax years her 2014 and 2015 and negligence penalties assessed for failing to provide documentation to substantiate the NOL deductions.In 2018, Amos received a notice of deficiency including penalties for tax years 2014 and 2015, disallowing NOL carryforward deductions of $4,220,639 and $4,149,326, respectively, on the grounds that the losses originating in tax years 1999 and 2000 were overstated and not available to be carried over. Tax returns filed for …
Cassandra Tucker and Edward Brodie v. Comm., T.C. Memo 2023-87
COGS is Not a Deduction, Some Expenses Allowed (Cassandra Tucker and Edward Brodie v. Comm., T.C. Memo 2023-87) Cassandra Tucker operated a fashion activity out of her home for many years. During 2015 and 2017 the activity generated gross sales of $1,542 and $1,498, respectively. Claimed cost of goods sold for each of the years were $6,510 and $8,086. To substantiate these amounts, Tucker provided a spreadsheet showing purchases in 2015 of fabric, packaging materials, including “bags, tissue, ribbon and boxes” along with other items. For 2017, the COGS spreadsheet showed purchases of “lifestyle flooring” and “lifestyle closet” totaling $9,003.Through …
Joseph and Louise Speizio v. Comm., TCM 2024-64
It’s Not About the NOL (Joseph and Louise Speizio v. Comm., TCM 2024-64) Joseph and Louise Speizio claimed expenses in 2017 that generated a net operating loss based on pension liabilities acquired in a business taken over by the taxpayer but not paid until 2018 or later. The taxpayer took over a sanitation business that had outstanding pension liabilities due to the local union. Through litigation and bankruptcy, the taxpayer became liable for the debt and was later relieved of the liability. In a bankruptcy proceeding, the pension liabilities were eventually settled and paid in 2019.In general, §404(a)(1)(A) allows a …
Anthony J.A. Bryan Jr v. Comm., T.C. Memo 2023-74
IRS Disallows NOLs by Reaching Back to Prior-Year K-1s (Anthony J.A. Bryan Jr v. Comm., T.C. Memo 2023-74) In 2007, Bryan gave a Watley Group, LLC (taxed as a partnership) a purported promissory note for $2.7 million with a single balloon payment due on or before Dec. 31, 2030 and interest accruing at 4.75%. The note was neither secured nor collateralized to any assets. Watley filed Forms 1065 for years 2008- 2011 without showing the $2.7 million note on the balance sheet. Watley gave Pool Boy the Movie, LLC (another tax partnership) a promissory note in the amount of $2.7 …
Edgardo Villanueva v. Comm., TCM 2022-27
“Concise Statement” Required for NOL Deduction (Edgardo Villanueva v. Comm., TCM 2022-27) Edgardo Villanueva reported a loss of $112,375 on Form 4797, Sales of Business Property, attached to his 2013 return, from the disposition of a condominium. He reported the date of loss as Aug. 5, 2013, although the condominium went through foreclosure in May 2009 and Villanueva lost possession of the condominium at that time. The Court determined that because Villanueva sustained the loss in 2009 when the foreclosure occurred, the deduction, if allowable, would have been for 2009. Villanueva was not permitted to carry forward any portion of that …
Edward & Ellen Berman v. Comm., 163 T.C. No. 1
Taxpayers Trigger Deferred Gain on Stock Sold to ESOP, But Installment Sale Works (Edward & Ellen Berman v. Comm., 163 T.C. No. 1 (July 16, 2024)) In 2002, Edward and Ellen Berman each sold stock to an ESOP for $4,150,000 in which they had bases of $27,428, thereby realizing a gain of $4,122,572 each. As payment, each received a $4,150,000 promissory note, on which a first payment of $449,277 was made in 2003. They made valid elections under §1042 on their 2002 federal income tax returns to defer recognition of the gain each realized for 2002. Effecting that deferral required …
Om and Anjali Soni v. Comm., CA-2, No. 22-829-ag
Tax Return was Jointly Filed Even though Spouse did not Sign the Return (Om and Anjali Soni v. Comm., CA-2, No. 22-829-ag (Jul. 27, 2023)) The U.S. Court of Appeals, Second Circuit, affirmed the Tax Court’s Jan. 7, 2022, opinion that Om and Anjali Soni’s 2004 tax return was jointly filed. Four circumstances were identified as probative of the taxpayers’ intent. First, Anjali knew “a return had to be filed” because “[s]he was generally aware of the U.S. tax system but chose not to engage.” Second, Anjali knew of Om’s “expert knowledge” because he was an experienced businessperson and she …