Maryland Association of CPAs Managing Partner Briefing September, 19,
2012 Welcome – Anoop Mehta – Chairman of the Board Tom Hood, CPA.CITP -­-
CEO / Executive Director What’s next – our 2012 -­- 2013 Legislative
Agenda • Lots of federal & state tax legislation • Tort Reform &
Contributory Negligence • Election year (Governor & major part of 188
legislators) • Expected $1.1 billion state deficit = Sales Taxes on
Services again! • Changes in DLLR and State Board of Accountancy
appointments How you can help us make a major difference 1. Support of
membership – 100% membership initiative 2. Support of Swearing-­-in
Ceremony (prior & future) – November 1,2012 3. Support of CPA Day in
Annapolis – January 16th, 2013 4. Support of PAC (contributions allowed
up to $4,000 per firm 5. Leadership Academy Dec 4,5 & 6, 2012 The “new”
math Federal CFPA registration $ 250 MD Tax Preparation 100 MD Debt
Counseling 150 Mobility (2 States) 500 Total Savings per CPA / year
$1,000 What do you think about our results? Additional Economic Impact
on Firms Sales tax on services Partner Revenue $1,000,000 X 6% $60,000
per partner $6,000 per employee Liability (Tort reform) Increase in
professional liability insurance Increase in lawsuits, claims &
settlements Our priorities? Outcomes: • Update on important legislative
/ regulatory changes that affect CPA firms • Development of priorities
from managing partners • How you can help us continue our success •
Share the latest in trends facing CPA firms (CPA Horizons 2025) Today’s
Agenda • Setting context – background on legislative / regulatory
environment (infrastructure) • Update on past and present advocacy
efforts and results • What’s next – our 2012 -­- 2013 Legislative Agenda
• How you can help us make a major difference • Trends facing CPA firms
the latest from AICPA/PCPS & CPA Horizons 2025 Project Setting Context &
Update on Past & Present Advocacy Efforts & Results The Five C’s 1.
Change 2. Complexity 3. Compliance 4. Convergence 5. Competition The CPA
Profession continues to be in a rapid state of change Infrastructure –
the pipes under your firm’s practice 1. Professional Standards 2.
Federal Legislation & Regulation 3. State Legislation & Regulation 4.
State Board of Accountancy – Legislation, Regulation, Examination,
Licensing, Enforcement Infrastructure -­- Update 1. MACPA’s State
Legislative Agenda – a Track Record of Success! i) 2011 5 for 5 + 2 3!
(1) Passed State Board 120/150 CPA Exam legislation – effective 10/01/11
(2) Passed “Safe Harbor” legislation for Compilations (Reviews
restricted to CPAs) (3) Stopped Debt Counselor registration ($250 per
CPA) (4) Stopped sales Tax on Accounting & Tax services (5) Stopped
efforts to liberalize tort laws (lawsuit abuse) (6) Plus Two Three! (a)
Opposed combined reporting due to complexity & time to implement (b)
Opposed Cemetery Bill to stop requirement for audited financials (c)
Obtained Attorney General Opinion allowing use of Social Security #’s
for Maryland Tax Preparation (Clarification of Maryland SS Privacy Act)
ii) 2012 4 for 4 (1) Stopped Sales Tax on Services (2) Stopped e-­-filing
tax in Governor’s BRFA Bill (3) Stopped Combined Reporting (4) Passed e-­-filing
of credits 2. State Board of Accountancy – Legislation, Regulation,
Examination, Licensing, Enforcement • New Secretary of DLLR – Leonard
Howie & New Commissioner of Occupational & Professional Licensing • CPA
Exam applicants at record levels – long delays 90 days – we addressed
the Board • Mobility legislation – Maryland license accepted in 49
states (NY just signed into law & DC into Congress) • CPE Regulations o
Revised in 2009 under leadership of Terry Hancock o CPE enforcement –
biggest issue is four (4) hour ethics requirement • Peer Review
oversight committee • Appointments to Board o Ray Speciale – Educator
member of Board (left MACPA Board) o Liz Gantnier – Stegman (PCAOB &
AICPA Instructor) o Tim Murphy – Southern Maryland o Mac Claxton – PG
County (MACPA/MSA member) o Losing Terry Hancock – (Clifton Gunderson)
State Board Chairman o Art Flach (Grant Thornton) is our next selection
for 2013 2. Federal Legislation & Regulation Successes Workforce
Mobility (passed House) IRS Notices up 700% DATA Act of 2011 (Digital
Accountability & Transparency Act & XBRL) (passed House) Dodd-­-Frank –
Consumer Financial Protection Act of 2010 – Active Again a) Prevented
Congress takeover of FASB b) Exempted CPAs from registration as
Financial Planners c) Prevented Specter Aiding & Abetting amendment FTC
“red flags” – exempted CPA firms Healthcare & 1099’s – instrumental in
repeal Tax Strategy Patents (stopped enforcement – e.g. Roth IRA
Conversion) 4. Professional Standards – decision expected 5-­-24-­-12
Private Company Financial Standards Decided + AICPA OCBOA FASB-­-IASB
Convergence becomes Condorsement -­- IFRS delayed The latest in trends
facing CPA firms Top trends to watch and the time to address is now (CPA
Horizons 2025) 1. Aging population, loss of wisdom, knowledge transfer
2. Global rules & standards –IFRS – complexity 3. Information overload,
complexity (Need for critical thinking & filter) 4. Information
Security, Privacy & Data Protection 5. Global Competition, Rise of the
Rest 6. Work-­-Life Balance 7. Diversity – Cultural Fusion – Beiging of
America 8. Changing Communication (decline of face-­-to-­-face) 9.
Increased Globalization 10. US Deficit 11. Education AICPA / PCPS Top
trends for firms > 21 1. Partner Accountability / Firm Unity 2. Bringing
in New Clients 3. Retention of Existing Clients 4. Fee Pressure /
Pricing of Services 5. Succession Planning