Professional licensing and the CPA Evolution are pushing the profession forward while ensuring CPAs continue to be excellent strategic advisors to businesses and the public.
“I think that there's a very real recognition by an overwhelming number of people that professional licensing, especially as it relates to CPAs, provides a protection of public interest,” said Brendan Fitzgerald, Vice Chair at the Accountancy Board of Ohio and a former chair of the Ohio Society of CPAs Board of Directors.
Fitzgerald said the recent OSCPA-supported change in Ohio to allow students to sit for the CPA exam at 120 hours gives future CPAs the opportunity to begin their career journey sooner, as opposed to waiting to begin until they have 150 hours.
On the legislative front, OSCPA continues to make progress at the Ohio Statehouse. In June Gov. DeWine signed Senate Bill 246, known as the SALT cap parity bill, which levies a tax on a pass-through entity's income apportioned to Ohio and authorizes a refundable income tax credit for an owner for such tax paid.
IRS Notice 2020-75 is what allowed states to enact legislation to clarify that taxes paid by a PTE do not count towards an owner’s capped $10,000 state and local tax deduction for federal income tax purposes.
“S.B. 246 is a win-win for the State of Ohio and for Ohio business owners,” said Director of Tax Policy, Greg Saul, Esq., CAE. “This unique change to Ohio’s tax code will provide a tool for Ohio business owners to obtain potentially significant federal tax benefits with minimal loss to Ohio or municipal tax revenue.”
Gov. DeWine also in June signed House Bill 515 into law. This OSCPA priority bill clarifies that gains from the sale of an ownership interest in a business are considered ‘business income’ for Ohio income tax purposes. H.B. 515 unanimously cleared both the House (90-0) and Senate (31-0) on June 1. Both bills take effect in September.
Read the entire article available now in the July/August issue of CPA Voice.