Taxpayers Unaware of State Tax Issues Related to Working Remotely
In the wake of the COVID-19 pandemic, remote work has gone from being a perk offered by employers to standard operating practice for many companies. A survey of 2,053 U.S. adults conducted in October by The Harris Poll on behalf of the American Institute of CPAs (AICPA) showed that among the 58 percent of Americans currently employed, 42 percent have worked remotely during the COVID-19 pandemic and 25 percent are currently working remotely.
The AICPA survey also found that of those who have worked remotely during the COVID-19 pandemic:
- 47 percent were not aware that each state has their own tax laws related to remote working;
- 71 percent were not aware that working remotely in other states can have an impact on the amount of state taxes owed; and
- 54 percent were unaware that the number of days worked out of the state where their physical workplace is located may also impact the amount of state taxes owed.
When asked if their state has state income tax reciprocity with any other state, 42 percent of Americans were unsure.
Among those currently working remotely who have worked in a state other than where their pre-pandemic physical workplace was located, many have done so across multiple states (on average three) for relatively short periods of time. Most of these remote workers – 75 percent – have worked out-of-state for 60 days or less, and 51 percent have worked out-of-state fewer than 30 days total.
Read more at: https://cpapracticeadvisor.com/21161526
AICPA Recognizes Forensic and Valuation CPAs
The AICPA has honored the contributions of 24 CPAs during the 2020 AICPA Forensic and Valuation Services Conference being held virtually this year.
Peter Armstrong, CPA, CFF, and Steven York, CPA, ABV, CEIV, CGMA were named Volunteers of the Year, while 22 young CPAs received the Forensic and Valuation Services (FVS) Standing Ovation for significant contributions in their practice areas and their communities.
Volunteers of the Year Each year, the AICPA FVS Section names two volunteers who contributed greatly to the practice and profession. Armstrong is the 2020 Forensic & Litigation Services (FLS) Volunteer of the Year, while York is the Business Valuation Volunteer of the Year.
Read more at: https://cpapracticeadvisor.com/21162027
Professors honored with CGMA-Sponsored Finance Education Award
The AICPA and the Financial Management Association (FMA), have recognized two professors for their innovation in teaching algorithmic trading as part of a hands-on robotics class for undergraduate students.
Peter Bossaerts, Ph.D., and Nitin Yadav, Ph.D., professors in the Department of Finance at the University of Melbourne, Australia, were named as recipients of the 2020 FMA Innovation in Teaching Finance Award.
The award is sponsored by the AICPA and CIMA. It’s given on behalf of the Association’s Chartered Global Management Accountant (CGMA) designation which distinguishes a unique group of 137,000 finance professionals worldwide who have reached the highest level of quality and competence.
Runners up were William O’Brien, Assistant Professor of Finance, University of Illinois at Chicago, and Carl Larsson, Ph.D., Assistant Professor of Finance and Blue Ridge Bank Faculty Fellow, James Madison University.
14 Financial Planning Tips from AICPA to Act on Before Year-End
The window of opportunity to trim that 2020 tax bill, save for retirement and leverage strategies to secure your financial future is closing. To help Americans make these moves before it’s too late, CPA financial planners with the AICPA share the following 2020 year-end tips.
- Prepay 2021 Residence Real Estate Taxes For a 2020 Discount
- Excellent Opportunity for the Charitably Inclined
- Pay Home Business Expenses Now to Lower Taxable Income
- Self-Employed? Establish a Retirement Plan for Your Future & Get Tax Benefits Today
- Make Up Estimated Tax Shortfall with Increased Withholding
- Pandemic Loan Opportunity Coming to an End
- Consider a Roth IRA Conversion
- Maximize Health Savings Account (HSA) Contributions
- Leverage Your Losses to Protect Your Income from Taxes
- Don’t Miss Employer 401(k) Match Opportunities
- Maximize Roth Contribution Opportunities
- Review Beneficiary Designations
- Gift Today to Reduce Future Estate Tax
- Revisit Risk Tolerance and Portfolio Diversification
Accounting Profession Expresses Concern About PPP “Loan Necessity Questionnaires”
The AICPA and over 80 additional organizations have expressed concern about the new Paycheck Protection Program (PPP) “Loan Necessity Questionnaires.” The questionnaires (SBA Forms 3509 & 3510) were recently established by the Department of Treasury (Treasury) and the Small Business Administration (SBA) and require PPP borrowers with loans of $2 million or greater to complete a new form and provide extensive, burdensome documentation supporting their request for relief funds.
In letters to House Representatives Nancy Pelosi and Kevin McCarthy, Senators Mitch McConnell and Charles Schumer, Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza, the coalition, which represents millions of American workers and small businesses, suggests that existing PPP Forgiveness Applications – specifically, SBA Forms 3508, 3508EZ and 3508S – should continue to be used because they “…allow the agencies to examine, in greater detail and prior to the approval of loan forgiveness, relevant facts to ensure that the PPP loan funds were used in the way Congress intended.” Read more at: https://cpapracticeadvisor.com/21164248
See inside December 2020
Streaming Entertainment: What We Love to Watch
As we wind down the year of COVID-19, we thought it would be a nice gesture to share with our readers some ideas for what to stream while we’re all locked down for the holiday season and the months ahead. Here's what some of our readers are ...
5 Pre-Busy-Season Marketing Campaign Strategies
Now’s the time to begin ramping up your marketing efforts for what looks to be a very busy 2020 tax season. Some of these items take minutes to implement, while others could take a week or two of planning, development, and execution. Search Engine Optimization (SEO) When was the last time someone reviewed the keyword […]