Legislative Update

With a Special Session set for next week in Tallahassee, the FICPA Governmental Affairs Team has the latest news impacting the CPA profession at the state and federal levels.

In our April 15, 2022, edition of Advocacy Update, we address:

• Next week's Special Session focused on redistricting
• Florida's new financial literacy law and why it matters
• FICPA's upcoming Town Hall recapping the 2022 Legislative Session
• OMB's recent Single Audit Update for COVID funds
• Upcoming scholarship deadlines (including today's April 15 cutoff)
• And the latest Department of Revenue TIPs

Latest News

Special Session set for April 19-22

Gov. Ron DeSantis on March 29 called a Special Session of the Florida Legislature to produce a new map establishing lawful congressional voting districts in Florida. The governor vetoed CS/SB 102 after reviewing the bill, citing legal concerns.  

The Special Session will convene at noon on Tuesday, April 19 and will extend no later than 11:59 p.m. on Friday, April 22. 

“We have a responsibility to produce maps for our citizens that do not contain unconstitutional racial gerrymanders,” Gov. DeSantis said. “Today, I vetoed a map that violates the U.S. Constitution, but that does not absolve the Legislature from doing its job. I appreciate the Legislature’s willingness to work with me to pass a legally compliant map this Special Session.” 

Read a supporting memorandum here, the full veto transmittal letter here and proclamation calling for the Special Session here. 

Governor Signs Financial Literacy Bill

In March, Gov. Ron DeSantis signed Senate Bill 1054, requiring financial-literacy instruction in Florida public schools. The bill is cited as the Dorothy L. Hukill Financial Literacy Act in honor of the late Sen. Hukill, who was a strong supporter of the CPA profession. It requires all students, starting with those who begin high school in the 2023-2024 school year, to take a half-credit financial literacy class before graduating. 

For many years, the FICPA supported Sen. Hukill’s efforts to boost financial literacy among students throughout Florida. We thank Sen. Travis Hutson and Rep. Demi Busatta Cabrera for sponsoring the legislation and Gov. Ron DeSantis for signing the bill into law, bringing Sen. Hukill’s efforts to fruition.  

In honor of Financial Literacy Month, the latest edition of FICPA Conversations features a leading champion for financial literacy: Stuart Rohatiner. A longtime FICPA member and a partner at Gerson, Preston, Klein, Lips, Eisenberg & Gelber, P.A. in Miami, Rohatiner also is a financial counselor at the Overtown Youth Center, which provides an array of services and opportunities to at-risk youth in South Florida.  

We talked to Stuart about his passion for financial literacy and why early education is so vital for future success.  

• Read the Stuart Rohatiner edition of FICPA Conversations here. 

FICPA Town Hall to Recap 2022 Legislative Session  

Join our FICPA Town Hall at 11 a.m. on April 21 for an in-depth recap of the 2022 Florida Legislative Session. As part of our ongoing mission to inform members about the issues impacting Florida businesses and the CPA profession, we’ll bring you the most up-to-date public policy and political information from Tallahassee. This session is free for FICPA members.  

• Click here to register.  

PAC Donors Break 10-year Fundraising Record

In 2021, the Florida CPA/PAC raised over $160,000 – representing the highest donation level since 2012 and a 9% increase in individual PAC donors from 2020.  

Of the candidates we supported during the last election year, 98% were elected to state office – and we’ve worked nonstop to make sure they know the issues impacting you and your practice. But our work isn’t done.  

During the upcoming Special Session, the state of Florida will undergo redistricting – the redrawing of congressional and state legislative boundaries. This process will reshape Florida’s political landscape this November, when all 120 Florida House and 40 Senate seats – as well as the entire Cabinet – will be on the ballot. 

The district changes, and the outcomes of this election year, can impact the laws and regulations governing the CPA profession throughout the state. Now is the time to do your part. 

Please consider joining your colleagues who support our advocacy efforts on behalf of the CPA profession.  

• Click here to contribute. 

Look for a member-exclusive “2022 Election Update” from the FICPA Governmental Affairs team this October.

Spring FCT Highlights 2022 Session Wins 

Don’t miss the Spring Legislative Issue of Florida CPA Today magazine, highlighting victories on behalf of the CPA profession during the 2022 Legislative Session.

This issue will include a recap of this year’s Virtual Advocacy and Hike the Hill events, a profile on DBPR Secretary Melanie Griffin, and more.  

Look for the Legislative Issue in your mailbox – and email inbox – in May! 

OMB Issues Update to Single Audit 2021 Compliance Supplement 

The Office of Management and Budget (OMB) released a technical update to language in the 2021 Compliance Supplement affecting two key COVID-19 relief programs last Friday. The two programs are the Department of Health and Human Services Assistance Listing 93.498 Provider Relief Fund and Treasury Assistance Listing 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF). The amendment is applicable only for fiscal year audits beginning after June 30, 2020. 

Notably, the update provides an alternative audit approach for eligible SLFRF recipients “that would otherwise not be required to undergo an audit if it was not for the expenditures of SLFRF funds directly awarded by Treasury.” For eligible SLFRF recipients, the OMB has authorized the use of an Alternative Compliance Examination Engagement in lieu of a full single audit or program-specific audit. 

The requirements for the Alternative Compliance Examination Engagement are outlined here: Treasury Assistance Listing 21.027-9 

Additional instructions for where and how to submit the results of the alternative compliance examination engagement will be forthcoming and posted to the Coronavirus State and Local Fiscal Recovery Funds’ website. 

IRS Commissioner to Senators: ‘Our Efforts Are Working’

IRS Commissioner Charles Rettig updated members of the Senate Finance Committee last week on the Service's performance in the soon-to-be-concluded tax filing season, as well as longer-term assessments of its efforts to modernize its operations, fill staffing gaps and improve taxpayer service and enforcement.  

"Our efforts are working; we're trending in the right direction," Rettig said in response to a question from Sen. Pat Toomey, R-PA, about reducing the backlog and improving the level of service on the IRS' toll-free phone lines.  

• Read the Journal of Accountancy article here. 
• View video of the Senate Committee Hearing here. 

The FICPA, AICPA and other practitioner groups continue to advocate for additional IRS actions to provide much-needed relief to taxpayers and practitioners.

NTA Calls for More Time to Contest Denial of Refund or Credit Claim 

National Taxpayer Advocate (NTA) Erin Collins recommended the IRS temporarily postpone the two-year time limit for taxpayers to file a lawsuit to contest the Service's disallowance of a claim for refund or credit, and allow more time to resolve such disputes administratively with the IRS. Collins included the recommendation in her NTA Blog entry last week, which also warned taxpayers and their representatives the time limit applies regardless of whether a taxpayer is pursuing an administrative appeal.  

• Read the Journal of Accountancy article here. 

BOA Accepting Clay Ford Scholarship Applications 

The Florida Board of Accountancy (BOA) is now accepting applications for the Clay Ford Scholarship. The scholarship was established to provide financial assistance to minority students as they pursue the fifth year of education required to become a licensed CPA. The scholarships are funded by a portion of each individual and CPA firm license fee.  

Through the award, scholarship applicants may be awarded up to $6,000 per semester for a maximum of two semesters. Each year, the FICPA advocates for inclusion of the funding authority in the state’s budget. This year’s application deadline is set for Wednesday, June 1.  

In 1998, after four years of discussion, the Florida Legislature recognized the need to assist minority accounting students in completing the fifth year of education required to become a licensed CPA. Through the leadership of former BOA Chair Shaun Davis, CPA and former FICPA President Ron Thompkins, CPA, the FICPA and the BOA partnered to seek legislation that ultimately created the Minority Scholarship Program.  

In 2013, the Florida Legislature posthumously renamed the program after Rep. Clay Ford, a strong advocate for the program and the CPA profession. Clay Ford scholarships are administered through the CPA Education Minority Assistance Advisory Council, which was created in 1999 to encourage minorities to enter the CPA profession. The scholarships are awarded on a combination of criteria related to financial need and scholastic ability and performance.  

For more information or to apply, visit the Florida Department of Business and Professional Regulation website. 

April 15 Deadline: Apply for an FICPA Scholarship Today! 

Are you a student member looking for help with tuition? Or are you an FICPA member who knows an accounting student in need of financial support? Fourth- and fifth-year accounting students are eligible to apply for an FICPA scholarship of up to $5,000 in funding.  

Be sure to apply now – the application deadline ends today!  

• Click here to apply.  

DOR TIPs 

The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) in 2022. 

Administration 

New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 

Feb. 7, 2022

Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness. 

• Read the full TIP here.  

Communications Services Tax 

Change in Local Communications Services Tax Rate Beginning May 1, 2022 

Jan. 27, 2022

Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute. 

• Read the full TIP here. 

Corporate Income Tax 

Florida Corporate Income Tax 2022 Automatic Refund

Jan. 13, 2022

An automatic refund is available for Florida corporate income/franchise tax returns filed on or before Feb. 1, 2022, for taxable years beginning on or after April 1, 2019, and on or before March 31, 2020 (subject to any 2022 law change). For most taxpayers, this will be the return for taxable year ending Dec. 31, 2020. 

• Read the full TIP here. 

Florida Corporate Income/Franchise Tax – Internship Tax Credit Program 

Jan. 4, 2022

For taxable years beginning during the 2022 and 2023 calendar year, a student internship tax credit is available against the Florida corporate income/franchise tax. The Florida Internship Tax Credit Program (Program) allows credit for up to five student interns per taxable year, per corporation. The credit amount is $2,000 per student intern (maximum of $10,000 for each taxable year). A total of $2.5 million in credits are available for each of the two years of the Program. 

• Read the full TIP here. 

Intangible Tax 

2022 Governmental Leasehold Intangible Tax Valuation Factor Table 

Jan. 5, 2022

Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida or any of its political subdivisions, municipalities, agencies, authorities or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return. 

• Read the full TIP here. 

Sales and Use Tax 

Madison County Increases Its Tourist Development Tax Rate From 3% to 5% 

Jan. 5, 2022

The Madison County Board of County Commissioners adopted Ordinance No. 2021-246 increasing the tourist development tax rate from 3% to 5% on transient rental transactions occurring in Madison County. 

• Read the full TIP here. 

Solid Mineral Tax Rates for 2022 

March 21, 2022

Phosphate rock producers are subject to tax as provided by law. Use the following rate when completing the Declaration/Installment Payment of Estimated Solid Mineral Severance Tax (Form DR-142ES). 

• Read the full TIP here. 

Contribute

The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license. 

Donate Now

Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others. 

With the Florida Legislative Session set to conclude on Monday, the FICPA Governmental Affairs team is here to get you caught up on the latest news and notes impacting the profession.

In our March 11, 2022, edition of Advocacy Update, we address:

• A bipartisan letter urging the IRS to suspend additional taxpayer notices
• Our CEO Conversation recapping the 2022 Legislative Session
• The IRS' face-to-face assistance this Saturday (March 12)
• The BOA's Clay Ford Scholarship for minority accounting students
• The status of key legislation in Tallahassee
• And the latest Department of Revenue TIPs

Latest News

FICPA Urges Senators Rubio and Scott to Sign Letter to IRS Commissioner 

The FICPA on Tuesday reached out to Florida’s U.S. Senators – Marco Rubio and Rick Scott – asking them to sign a letter addressed to IRS Commissioner Charles Rettig. Sens. Bill Cassidy (R-LA) and Bob Menendez (D-NJ) are circulating the bipartisan letter, which asks the IRS for more information about what – and what additional authority, if any – it needs to suspend sending additional notices to taxpayers.  

You may read the letter here. 

The profession – the AICPA, state CPA societies and other professional organizations – has been calling on the IRS for many months to suspend various taxpayer notices. Temporarily suspending notices, which are piling up on taxpayers and their practitioners this filing season, should help reduce contact with the beleaguered IRS and ease some taxpayer confusion. However, the IRS has repeatedly suggested it does not have the authority to suspend all automated notices and has continued sending notices to taxpayers, causing confusion, anxiety and significant wasted time for tax preparers and their clients.  

Clarifying where the IRS may need Congressional assistance to suspend certain notices will help federal lawmakers as they work to blunt the impact of the backlog on individual and business taxpayers.

FICPA CEO Conversations: Recapping the Florida Legislative Session

In the latest edition of FICPA CEO Conversations, FICPA President & CEO Shelly Weir, Liberty Partners of Tallahassee President Jennifer Green, and I recap the 2022 Florida Legislative Session.

We've been hard at work these last 60 days, representing the interests of Florida's CPAs and advocating on behalf of the profession.

As the 2022 Session comes to a close, this edition of CEO Conversations highlights the issues the FICPA has been engaged in on your behalf. Highlights include:

• A recap of the major policy issues the Legislature considered, including several impacting CPAs 
• An overview of the Department of Revenue’s (DOR) Tax Administration bill 
• An update on Condo and Homeowners Associations changes 
• The status of the state’s budget and highlights for the profession  

Click on the player above for the full conversation.

IRS Offers Face-to-Face Help This Saturday 

This week, the IRS announced Taxpayer Assistance Centers (TACs) will be open this Saturday, March 12, to assist taxpayers with this year’s filing season questions.  

You may read the IRS news release here. 

The TACs in Fort Myers, Maitland/Orlando, Plantation/Fort Lauderdale and Miami will be open from 9 a.m. to 4 p.m. with no appointment required. Normally, TACs are open only on weekdays.  

“We know that many taxpayers work during the week or have other obligations that make it difficult to get away to take care of their taxes during our routine business hours,” IRS Wage and Investment Division Commissioner and Taxpayer Experience Officer Ken Corbin said in the announcement. “We’re here to help, and people don’t need an appointment during these special Saturday hours.”  

For more information about the TACs, visit the IRS website.  

BOA Accepting Clay Ford Scholarship Applications 

The Florida Board of Accountancy is now accepting applications for the Clay Ford Scholarship. The scholarship was established to provide financial assistance to minority students as they pursue the fifth year of education required to become a licensed CPA. The scholarships are funded by a portion of each individual and CPA firm license fee.  

Through the award, scholarship applicants may be awarded up to $6,000 per semester for a maximum of two semesters. Each year, the FICPA advocates for inclusion of the funding authority in the state’s budget. This year’s application deadline is set for Wednesday, June 1.  

In 1998, after four years of discussion, the Florida Legislature recognized the need to assist minority accounting students in completing the fifth year of education required to become a licensed CPA. Through the leadership of former Florida Board of Accountancy (BOA) Chair Shaun Davis, CPA, and former FICPA President Ron Thompkins, CPA, the FICPA and the BOA partnered to seek legislation that ultimately created the Minority Scholarship Program.  

In 2013, the Florida Legislature posthumously renamed the program after Rep. Clay Ford, a strong advocate for the program and the CPA profession. Clay Ford scholarships are administered through the CPA Education Minority Assistance Advisory Council, which was created in 1999 to encourage minorities to enter the CPA profession. The scholarships are awarded on a combination of criteria related to financial need and scholastic ability and performance.  

For more information or to apply, visit the Florida Department of Business and Professional Regulation website. 

2022 Bill Tracker

HB 7071: Taxation by Rep. Bobby Payne (co-introducers Reps. Robin Bartleman, Kamia Brown, Daisy Morales, Toby Overdorf and Marie Paule Woodson) 
Referred to Appropriations 

Provides specified tax exemptions for specified industries and products; provides tax credits for specified businesses; provides refunds of previously paid taxes for specified purposes; provides abatement of taxes paid for specified purposes; provides sales tax holidays for specified items. 

Effective date: July 1, 2022 

Status: Placed in conference (Appropriations Conference Committee/Appropriations) 

SB 1090: Corporate Income Tax by Sen. Joe Gruters
Referred to Finance and Tax; Appropriations 

Adopts the 2022 version of the Internal Revenue Code for purposes of the state corporate income tax code; revises the timeframe during which the adjustment of the corporate tax rate based on net collections exceeding adjusted forecasted collections applies; provides for retroactive operation; provides applicability for adjustments taxpayers must make to adjusted federal income with respect to bonus depreciation, etc.  

Effective Date: Upon becoming a law. 

Status: In appropriations

SB 1382: Tax Administration by Sen. Joe Gruters
Referred to Community Affairs; Finance and Tax; Appropriations 

Prohibits taxpayers from submitting certain records in tax proceedings under certain circumstances; authorizes the Department of Revenue to respond to contact initiated by taxpayers to discuss audits; clarifies conditions for application of an exemption for sales taxes for certain nonresident purchasers of boats or aircraft; deletes a tax exemption for building materials used in the rehabilitation of real property located in an enterprise zone; revises the period in which, and conditions under which, the executive director of the department may adopt emergency rules; excludes certain benefit charges from the employer reemployment assistance contribution rate calculation, etc. 

Effective Date: July 1, 2022 

Status: Senate - ordered enrolled

SB 1276: Legislative Review of Proposed Regulation of Unregulated Functions by Sen. Manny Diaz 
Referred to Regulated Industries; Governmental Oversight and Accountability; Rules 

Provides that certain requirements must be met before adopting the regulation of an unregulated profession or occupation or the substantial expansion of regulation of a regulated profession or occupation; requires the proponents of legislation that proposes such regulation to provide certain information to the state agency that would have jurisdiction over the proposed regulation and to the Legislature by a certain date; requires such state agency to provide certain information to the Legislature within a specified timeframe; provides an exception, etc. 

Effective Date: July 1, 2022 

Status: Introduced 

SB 1302: Criminal History Records by Sen. Danny Burgess 
Referred to Regulated Industries; Appropriations Subcommittee on Criminal and Civil Justice; Appropriations 

Prohibits an applicable board, or the Department of Business and Professional Regulation if there is no such board, from inquiring into or considering the conviction history of an applicant for licensure until it is determined that the applicant is otherwise qualified; prohibiting the applicable board, or the department if there is no board, from denying an application for licensure of a person based solely or in part on an applicant’s criminal history; provides requirements for determining if such criminal history directly relates to the practice of the applicable profession; provides requirements for court-ordered sealing of certain records that were automatically sealed by the Department of Law Enforcement under specified provisions, etc. 

Effective Date: July 1, 2022 

Status: Favorable by Appropriations Subcommittee on Criminal and Civil Justice - YEAS 7, NAYS 0 
             In Appropriations

To view more legislation the FICPA is tracking during the 2022 Legislative Session, log in to your member account and visit our Advocacy Action Center.  

DOR TIPs 

The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) in 2022. 

Administration 

New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 

Feb. 7, 2022

Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness. 

• Read the full TIP here.  

Communications Services Tax 

Change in Local Communications Services Tax Rate Beginning May 1, 2022 

Jan. 27, 2022

Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute. 

• Read the full TIP here. 

Corporate Income Tax 

Florida Corporate Income Tax 2022 Automatic Refund

Jan. 13, 2022

An automatic refund is available for Florida corporate income/franchise tax returns filed on or before Feb. 1, 2022, for taxable years beginning on or after April 1, 2019, and on or before March 31, 2020 (subject to any 2022 law change). For most taxpayers, this will be the return for taxable year ending Dec. 31, 2020. 

• Read the full TIP here. 

Florida Corporate Income/Franchise Tax – Internship Tax Credit Program 

Jan. 4, 2022

For taxable years beginning during the 2022 and 2023 calendar year, a student internship tax credit is available against the Florida corporate income/franchise tax. The Florida Internship Tax Credit Program (Program) allows credit for up to five student interns per taxable year, per corporation. The credit amount is $2,000 per student intern (maximum of $10,000 for each taxable year). A total of $2.5 million in credits are available for each of the two years of the Program. 

• Read the full TIP here. 

Intangible Tax 

2022 Governmental Leasehold Intangible Tax Valuation Factor Table 

Jan. 5, 2022

Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida or any of its political subdivisions, municipalities, agencies, authorities or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return. 

• Read the full TIP here. 

Sales and Use Tax 

Madison County Increases Its Tourist Development Tax Rate From 3% to 5% 

Jan. 5, 2022

The Madison County Board of County Commissioners adopted Ordinance No. 2021-246 increasing the tourist development tax rate from 3% to 5% on transient rental transactions occurring in Madison County. 

• Read the full TIP here. 

Contribute

The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license. 

Donate Now

Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others. 

The FICPA on Thursday joined the AICPA and 51 other state societies in calling for the IRS to issue additional K-2 / K-3 filing relief for the 2021 and 2022 tax years.

In our Feb. 25, 2022 edition of Advocacy Update, we cover:

• Our call for expanded K-2 / K-3 relief
• The limited relief the IRS has issued thus far
• AICPA committee chair Jan Lewis' testimony before Congress
• FAQ updates for the 2021 Recovery Rebate Credit
• The FICPA's 2022 Compliance Auditing in Florida Practice Aid
• The status of key legislation in Tallahassee
• And the latest Department of Revenue TIPs

Latest News

FICPA Advocates for Businesses and Practitioners on Schedules K-2, K-3 

On Feb. 24, the AICPA and 52 state CPA societies, including the FICPA, sent a letter to Assistant Treasury Secretary Lily Batchelder and IRS Commissioner Charles Rettig regarding widespread concerns about the Schedules K-2 and K-3 reporting.  

“The AICPA and state CPA societies across the country call on the Treasury Department and the IRS to delay implementation of the Schedules K-2 and K-3 to 2023 (the 2022 tax year filing season) and to suspend any assessment of penalties against Partnerships or S Corporations for failing to file or failing to timely provide Schedules K-2 and K-3 for the 2021 tax year,” the letter stated. 

You may read the full letter here. 

The FICPA is strongly supporting these efforts and advocating on members’ behalf to urge the IRS and the Treasury to delay these changes to allow practitioners sufficient time to understand and implement them.  

Mid-tax-filing-season updates to the Schedules leads to confusion and unintended errors. Delaying also allows the IRS adequate time to complete the e-File system to accept the new Schedules electronically. The FICPA is also echoing calls to suspend penalties for failing to file, or failing to provide in a timely manner, Schedules K-2 and K-3 for the 2021 tax year. 

“While we certainly see the value in streamlining reporting tools and standardized international tax reporting, the FICPA recognizes our members have many concerns regarding the recent revisions to filing instructions on Schedules K-2/K-3,” FICPA President & CEO Shelly Weir said. “The issues raised during this filing season, due to the continual changes regarding filing obligations and the delayed e-File system, necessitate a delay until 2023.”

IRS Provides Details on K-2, K-3 Filing Relief for 2021

In response to calls for relief from the AICPA’s Foreign Partnership Reporting Task Force and the CPA profession at large, the IRS on Feb. 16 provided further details on additional transition relief for certain domestic partnerships and S corporations preparing the new schedules K-2 and K-3.

Notice 2021-39 PDF provides penalty relief for good-faith efforts to adopt the new schedules. Today's transition relief, appearing in new frequently asked questions (FAQs) on Schedules K-2 and K-3, allows an additional exception for tax year 2021 filing requirements by certain domestic partnerships and S corporations.

The IRS is providing an additional exception for tax year 2021 to filing the Schedules K-2 and K-3 for certain domestic partnerships and S corporations. To qualify for this exception, the following must be met:

• In tax year 2021, the direct partners in the domestic partnership are not foreign partnerships, foreign corporations, foreign individuals, foreign estates or foreign trusts. 
• In tax year 2021, the domestic partnership or S corporation has no foreign activity, including foreign taxes paid or accrued or ownership of assets that generate, have generated or may reasonably expected to generate foreign source income (see section 1.861-9(g)(3)).
• In tax year 2020, the domestic partnership or S corporation did not provide to its partners or shareholders nor did the partners or shareholders request the information regarding (on the form or attachments thereto):
  • Line 16, Form 1065, Schedules K and K-1 (line 14 for Form 1120-S), and
  • Line 20c, Form 1065, Schedules K and K-1 (Controlled Foreign Corporations, Passive Foreign Investment Companies, 1120-F, section 250, section 864(c)(8), section 721(c) partnerships, and section 7874) (line 17d for Form 1120-S).
• The domestic partnership or S corporation has no knowledge that the partners or shareholders are requesting such information for tax year 2021.

You may read the IRS alert here. 

The AICPA’s Foreign Partnership Reporting Task Force has been tackling K-2 and K-3 issues and questions since the draft forms were released in 2020 and continues to work on behalf of members and taxpayers to try to streamline the reporting process.  

The FICPA will watch for additional information about the relief and will push that information to members as soon as it is released. 

You can learn more about Schedule K-2 and K-3 concerns via the content linked below. 

• Schedules K-2 and K-3 guidance and resources (AICPA Tax Practice & Ethics Team, Feb. 17, 2022; open access) 
• Schedules K-2 and K-3 Client Information Letter (AICPA Tax Practice & Ethics Team, Feb. 17, 2022; AICPA member access) 
• Advocacy Update: IRS issues K-2/K-3 filing relief for 2021 (Feb. 16, 2022)
• Advocacy Update: Call to Action leads to IRS Relief (Feb. 11, 2022) 
• AICPA Town Hall archive
• Federal Tax Update podcast archive
• Navigating the new Schedules K-2 and K-3 (The Tax Adviser, September 2021) 
• K2/K3 – Making Sense of New International Passthrough Reporting Requirements (AICPA Podcast on Practitioner Insights, November 2021) 
• AICPA Foreign Partnership Reporting Task Force comment letter (September 2020) 

AICPA Committee Chair Testifies at Senate Hearing  

Late last week, Jan Lewis, AICPA Tax Executive Committee chair, testified in Washington at a Senate Finance Committee hearing, “Spotlighting IRS Customer Service Challenges.” 

Her testimony covered multiple issues, including the AICPA’s long-term strategic recommendations to improve IRS service, and recommendations made with the Tax Professionals United for Taxpayer Relief Coalition. As a tax practitioner, Lewis shared specific examples of the problems taxpayers and CPAs are experiencing.  

You may read the AICPA press release here and the Journal of Accountancy article here. 

IRS Updates FAQs for 2021 Recovery Rebate Credit 

On Feb. 17, the IRS updated its frequently asked questions (FAQs) guide for the 2021 Recovery Rebate Credit. 

The FAQ (FS-22-12) revisions are as follows: 

• 2021 Recovery Rebate Credit — Topic A: General Information: Q3, Q6 
• 2021 Recovery Rebate Credit — Topic B: Claiming the Recovery Rebate Credit if you aren’t required to file a 2021 tax return: Q5 
• 2021 Recovery Rebate Credit — Topic D: Claiming the 2021 Recovery Rebate Credit: Q6 
• 2021 Recovery Rebate Credit — Topic E: Calculating the 2021 Recovery Rebate Credit: Q7, Q18 
• 2021 Recovery Rebate Credit — Topic G: Finding the Third Economic Impact Payment Amount to Calculate the 2021 Recovery Rebate Credit: Q2, Q7, Q8 

You may read the full IRS 2021 Recovery Rebate Credit Fact Sheet here. 

FICPA Publishes 2022 Compliance Auditing in Florida 

This month, the FICPA’s State and Local Government Committee published its 2022 Compliance Auditing in Florida Practice Aid.

The guide helps Florida independent auditors understand the compliance issues that may be addressed in an audit of a Florida local government. It provides assistance in testing and reporting compliance matters in connection with audits of Florida's local governmental entities, including counties (all county constitutional officers), municipalities and special districts. The Practice Aid does not include district school boards. 

The Practice Aid provides listings or examples of statutory and other legal references pertinent to the audits of the respective types of Florida local governmental entities. The publication does not represent or establish professional standards in auditing and is not an authoritative professional reference source. It should be used only in conjunction with generally accepted auditing standards and other authoritative guidelines. 

You may read the 2022 Compliance Auditing in Florida Practice Aid here. 

2022 Bill Tracker

SB 1090: Corporate Income Tax by Sen. Joe Gruters
Referred to Finance and Tax; Appropriations 

Adopts the 2022 version of the Internal Revenue Code for purposes of the state corporate income tax code; revises the timeframe during which the adjustment of the corporate tax rate based on net collections exceeding adjusted forecasted collections applies; provides for retroactive operation; provides applicability for adjustments taxpayers must make to adjusted federal income with respect to bonus depreciation, etc.  

Effective Date: Upon becoming a law. 

Status: In appropriations

SB 1382: Tax Administration by Senator Joe Gruters
Referred to Community Affairs; Finance and Tax; Appropriations 

Prohibits taxpayers from submitting certain records in tax proceedings under certain circumstances; authorizes the Department of Revenue to respond to contact initiated by taxpayers to discuss audits; clarifies conditions for application of an exemption for sales taxes for certain nonresident purchasers of boats or aircraft; deletes a tax exemption for building materials used in the rehabilitation of real property located in an enterprise zone; revises the period in which, and conditions under which, the executive director of the department may adopt emergency rules; excludes certain benefit charges from the employer reemployment assistance contribution rate calculation, etc. 

Effective Date: July 1, 2022 

Status: CS by Finance and Tax Committee; read first time
             On Committee agenda – Appropriations, Feb. 28, 2022

SB 1276: Legislative Review of Proposed Regulation of Unregulated Functions by Senator Manny Diaz 
Referred to Regulated Industries; Governmental Oversight and Accountability; Rules 

Provides that certain requirements must be met before adopting the regulation of an unregulated profession or occupation or the substantial expansion of regulation of a regulated profession or occupation; requires the proponents of legislation that proposes such regulation to provide certain information to the state agency that would have jurisdiction over the proposed regulation and to the Legislature by a certain date; requires such state agency to provide certain information to the Legislature within a specified timeframe; provides an exception, etc. 

Effective Date: July 1, 2022 

Status: Introduced 

SB 1302: Criminal History Information by Sen. Danny Burgess 
Referred to Regulated Industries; Appropriations Subcommittee on Criminal and Civil Justice; Appropriations 

Prohibits an applicable board, or the Department of Business and Professional Regulation if there is no such board, from inquiring into or considering the conviction history of an applicant for licensure until it is determined that the applicant is otherwise qualified; prohibiting the applicable board, or the department if there is no board, from denying an application for licensure of a person based solely or in part on an applicant’s criminal history; provides requirements for determining if such criminal history directly relates to the practice of the applicable profession; provides requirements for court-ordered sealing of certain records that were automatically sealed by the Department of Law Enforcement under specified provisions, etc. 

Effective Date: July 1, 2022 

Status: Favorable by Appropriations Subcommittee on Criminal and Civil Justice - YEAS 7, NAYS 0 
             On Committee agenda – Appropriations, Feb. 28, 2022

To view more legislation the FICPA is tracking during the 2022 Legislative Session, log in to your member account and visit our Advocacy Action Center.  

2022 Legislative Session: Important Dates 

• Feb. 26: All bills are immediately certified  
• March 1: 50th-day rule (Senate) – last day for regularly scheduled committee meetings  
• March 10: After the 58th day (March 9) of a regular session, the House may consider only returning messages, conference reports and concurrent resolutions
• March 11: 60th day – last day of Regular Session 

DOR TIPs 

The Florida Department of Revenue has published these helpful Tax Information Publications (TIPs) in 2022. 

Administration 

New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 

Feb. 7, 2022

Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness. 

• Read the full TIP here.  

Communications Services Tax 

Change in Local Communications Services Tax Rate Beginning May 1, 2022 

Jan. 27, 2022

Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute. 

• Read the full TIP here. 

Corporate Income Tax 

Florida Corporate Income Tax 2022 Automatic Refund

Jan. 13, 2022

An automatic refund is available for Florida corporate income/franchise tax returns filed on or before Feb. 1, 2022, for taxable years beginning on or after April 1, 2019, and on or before March 31, 2020 (subject to any 2022 law change). For most taxpayers, this will be the return for taxable year ending Dec. 31, 2020. 

• Read the full TIP here. 

Florida Corporate Income/Franchise Tax – Internship Tax Credit Program 

Jan. 4, 2022

For taxable years beginning during the 2022 and 2023 calendar year, a student internship tax credit is available against the Florida corporate income/franchise tax. The Florida Internship Tax Credit Program (Program) allows credit for up to five student interns per taxable year, per corporation. The credit amount is $2,000 per student intern (maximum of $10,000 for each taxable year). A total of $2.5 million in credits are available for each of the two years of the Program. 

• Read the full TIP here. 

Intangible Tax 

2022 Governmental Leasehold Intangible Tax Valuation Factor Table 

Jan. 5, 2022

Florida law provides that all leasehold estates or related possessory interest in property of the United States, the State of Florida or any of its political subdivisions, municipalities, agencies, authorities or other governmental units are taxed as intangible personal property if the leased property is undeveloped or predominantly used for a residential or commercial purpose and rental payments are due in consideration of the leasehold estate or possessory interest. Unless the leasehold estate qualifies for specific exemptions, lessees of governmentally owned property are required to file an annual intangible tax return. 

• Read the full TIP here. 

Sales and Use Tax 

Madison County Increases Its Tourist Development Tax Rate From 3% to 5% 

Jan. 5, 2022

The Madison County Board of County Commissioners adopted Ordinance No. 2021-246 increasing the tourist development tax rate from 3% to 5% on transient rental transactions occurring in Madison County. 

• Read the full TIP here. 

Contribute

The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license. 

Donate Now

Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others. 

As the Legislative Session continues to make news here in Florida, the FICPA, other state organizations and the AICPA influenced national policy this week, successfully advocating for additional taxpayer relief from the IRS. 

In our Feb. 11, 2022, edition of Advocacy Update, we cover:

• The IRS' suspension of automatic collection notices
• Our profession's ongoing advocacy efforts in the face of IRS service challenges
• Melanie Griffin's confirmation as Secretary of the Florida DBPR
• The status of key legislation in Tallahassee
• Recent DOR updates, and more

Latest News

IRS suspends automatic collection notices

In response to a call from the FICPA, other state societies and the Taxpayer Relief Coalition, the IRS on Wednesday suspended more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax and the IRS has no record of a taxpayer filing a tax return. These mailings include balance-due notices and unfiled tax return notices.  

You can read the full IRS news release here.

The FICPA worked with the AICPA and members of the Florida Congressional Delegation, requesting their signatures on a bipartisan letter asking the U.S. Treasury Department for improvements and taxpayer relief during the 2022 filing process.  

The table below outlines the notices that have been suspended. 

Individual Taxpayer Notices

Business Notices

Webinar, Hearing Underscore Tax Filing Relief Efforts

During the AICPA’s Feb. 8 webinar, “Is Help on the Way from the IRS for this Filing Season?” stakeholders discussed issues taxpayers and tax practitioners face as they enter a third filing season during the COVID-19 pandemic. Participants learned about the coalition’s recommendations that the group believes the IRS is able to immediately implement to provide relief to taxpayers and practitioners. The discussion included steps the coalition is taking, including conversations on Capitol Hill, to ensure the recommendations are adopted. Finally, stakeholders discussed their suggestions to help practitioners navigate a challenged tax-administration system. 

In an additional effort, on Feb. 8, National Taxpayer Advocate Erin Collins participated in an oversight hearing with the U.S. House Ways and Means Committee regarding challenges taxpayers face for the 2022 filing season.  

Among the hearing speakers was Congresswoman Judy Chu, author of the recent bipartisan letter to the Treasury Department urging the Department to bring immediate relief to filers by reducing the need to contact the IRS. The FICPA called on Florida Congressional representatives to support the letter. 

The hearing included an update from Collins on IRS services and a discussion about the IRS’ transition away from the use of facial recognition technology.   

“To allow taxpayers access to the IRS online accounts, there are serious privacy concerns with the use of this technology,” Committee Chairman Bill Pascrell said. “I look forward to working with the IRS and the Administration to find solutions that balance the need for identity-theft protections against privacy concerns raised by this technology.” 

Town Hall Covers K-2/K-3 Disclosure Requirements 

Many FICPA members also have asked questions and expressed concerns about the recent IRS announcement regarding Schedules K-2 and K-3 disclosure requirements.  

The AICPA’s Foreign Partnership Reporting Task Force has been tackling K-2/K-3 issues and questions since the draft forms were released in 2020 and continues to work on behalf of members and taxpayers to try to streamline the reporting process. However, members need to be aware of the reporting requirements for their passthrough entity clients (partnerships and S corporations).  

Lisa Simpson, AICPA vice president – firm services, discussed the K-2/K-3 issue in the AICPA’s Feb. 3 Town Hall.  

Here are related resources:  

• Navigating the new Schedules K-2 and K-3 – The Tax Adviser, September 2021 
• K2/K3 – Making Sense of New International Passthrough Reporting Requirements – AICPA Podcast on Practitioner Insights 
• AICPA Foreign Partnership Reporting Task Force comment letter (September 2020)  

Senate Confirms DBPR Secretary Melanie Griffin 

On Feb. 8, the Florida Senate Committee on Regulated Industries confirmed Melanie Griffin as secretary of the Florida Department of Business and Professional Regulation. 

“In many ways, this opportunity was never a given,” Secretary Griffin said. “Having first been told it was not financially possible for me to attend my dream school, The Florida State University, generous donors funded scholarships that made it possible for me to receive my finance degree from FSU. Thank you to everyone that invested in me, and please note that I’ve paid it forward by mentoring hundreds of students and young professionals to give them the same chance that I have had, thanks to generous donors.” 

Griffin, of Tampa, is an Attorney with Shumaker, Loop & Kendrick and senior advisor for business-to-business relationships for Shumaker Advisors Florida. She is also the Founder and Owner of Spread Your Sunshine, a business that provides speaking and professional-training services; and designs, manufactures and sells inspirational products and gifts. Griffin is president of the Hillsborough Association of Women Lawyers Executive Board of Directors; serves on the Florida State University College of Law Board of Visitors; and is a Fellow of The Florida Bar Foundation. She earned her bachelor’s degree in finance, master of business administration and juris doctor degree from Florida State University. 

“Since law school I’ve been a business attorney for just shy of about 15 years, and I also am a small business owner, which give me a unique perspective on government, and how we can better serve our clients and constituencies,” Griffin said. “I am now officially in month two on the job, and honored to work with Gov. DeSantis and our team at the agency to play such a critical role in growth and professional success for so many Floridians.  

“This session we are working to increase operational efficiencies and enhance levels of service for licensees with new, technology-focused ideas,” Griffin said. “The Governor’s Freedom First budget included major investments that would modernize the technological capabilities of DBPR and minimize the burdens of government processes by delivering new, meaningful long-term benefits for all of the industries licensed and regulated by DBPR.” 

We warmly congratulate Secretary Griffin and look forward to continuing our longstanding partnership with DBPR. 

CPA Evolution will impact today’s interns; how can firms prepare?

As we head into the 2022 “intern” season for firms, CPA Evolution recently published a new article: CPA Evolution will impact today’s interns; how can firms prepare?  

The article, written by Carl Mayes, AICPA senior director – audit & accounting quality, is targeted to public accounting firm leaders as they consider their hiring and training plans for 2022. It highlights what firms need to consider to attract candidates, and how firms can assist universities as they make curriculum changes in advance of the new CPA exam, to be released in January 2024.  

2022 Bill Tracker

SB 1090: Corporate Income Tax by Sen. Joe Gruters
Referred to Finance and Tax; Appropriations 

Adopts the 2022 version of the Internal Revenue Code for purposes of the state corporate income tax code; revises the timeframe during which the adjustment of the corporate tax rate based on net collections exceeding adjusted forecasted collections applies; provides for retroactive operation; provides applicability for adjustments taxpayers must make to adjusted federal income with respect to bonus depreciation, etc.  

Effective Date: Upon becoming a law. 

Status: In appropriations

SB 1382: Tax Administration by Senator Joe Gruters
Referred to Community Affairs; Finance and Tax; Appropriations 

Prohibits taxpayers from submitting certain records in tax proceedings under certain circumstances; authorizes the Department of Revenue to respond to contact initiated by taxpayers to discuss audits; clarifies conditions for application of an exemption for sales taxes for certain nonresident purchasers of boats or aircraft; deletes a tax exemption for building materials used in the rehabilitation of real property located in an enterprise zone; revises the period in which, and conditions under which, the executive director of the department may adopt emergency rules; excludes certain benefit charges from the employer reemployment assistance contribution rate calculation, etc. 

Effective Date: July 1, 2022 

Status: CS by Finance and Tax Committee - YEAS 7, NAYS 0
             Pending reference review under Rule 4.7(2) - (Committee Substitute)

SB 1276: Legislative Review of Proposed Regulation of Unregulated Functions by Senator Manny Diaz 
Referred to Regulated Industries; Governmental Oversight and Accountability; Rules 

Provides that certain requirements must be met before adopting the regulation of an unregulated profession or occupation or the substantial expansion of regulation of a regulated profession or occupation; requires the proponents of legislation that proposes such regulation to provide certain information to the state agency that would have jurisdiction over the proposed regulation and to the Legislature by a certain date; requires such state agency to provide certain information to the Legislature within a specified timeframe; provides an exception, etc. 

Effective Date: July 1, 2022 

Status: Introduced 

SB 1302: Criminal History Information by Sen. Danny Burgess 
Referred to Regulated Industries; Appropriations Subcommittee on Criminal and Civil Justice; Appropriations 

Prohibits an applicable board, or the Department of Business and Professional Regulation if there is no such board, from inquiring into or considering the conviction history of an applicant for licensure until it is determined that the applicant is otherwise qualified; prohibiting the applicable board, or the department if there is no board, from denying an application for licensure of a person based solely or in part on an applicant’s criminal history; provides requirements for determining if such criminal history directly relates to the practice of the applicable profession; provides requirements for court-ordered sealing of certain records that were automatically sealed by the Department of Law Enforcement under specified provisions, etc. 

Effective Date: July 1, 2022 

Status: Voted favorable by Regulated Industries - YEAS 8, NAYS 0
             In Appropriations 

To view more legislation the FICPA is tracking during the 2022 Legislative Session, log in to your member account and visit our Advocacy Action Center.  

2022 Legislative Session: Important Dates 

• Feb. 26: All bills are immediately certified  
• March 1: 50th-day rule (Senate) – last day for regularly scheduled committee meetings  
• March 10: After the 58th day (March 9) of a regular session, the House may consider only returning messages, conference reports and concurrent resolutions
• March 11: 60th day – last day of Regular Session 

DOR TIPs

Since the last issue of Advocacy Update, the Florida Department of Revenue has published these helpful Tax Information Publications (TIPS).  

Administration 

New Worlds Reading Initiative Tax Credit and Strong Families Tax Credit 

Feb. 7, 2022

Florida’s New Worlds Reading Initiative was established in 2021 under the Florida Department of Education to improve literacy skills and promote a love of reading by providing high-quality, free books to students in kindergarten through fifth grade who are reading below grade level. Florida’s Strong Families Tax Credit was established in 2021 under the Florida Department of Children and Families to provide services to prevent child abuse, engage absent fathers in being more active in their children’s lives, provide books to eligible children, and assist families of children with chronic illness. 

• Read the full TIP here.  

Communications Services Tax 

Change in Local Communications Services Tax Rate Beginning May 1, 2022 

Jan. 27, 2022

Beginning May 1, 2022, the local communications services tax (CST) rate for the Town of Astatula will change. The total local CST rate includes: (1) the local rate imposed under the CST statute; and (2) any county discretionary sales surtax imposed under the sales and use tax statute. 

• Read the full TIP here. 

Contribute

The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. It is your voluntary contributions that help protect the CPA license. 

Donate Now

Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others. 

The 2022 Florida Legislative Session is in full swing, and we're here to wrap up the early action in Tallahassee. In our Jan. 28, 2022, edition of Advocacy Update, we:

• Break down legislative priorities outlined by Gov. Ron DeSantis, Senate President Wilton Simpson and House Speaker Chris Sprowls
• Update our 2022 bill tracker
• Recap our recent CPA Advocacy Days events
• And offer a look at a bipartisan letter asking the U.S. Treasury Department to improve this year’s tax filing process

Gov. DeSantis, lawmakers outline 2022 priorities

On Jan. 12, the Florida Legislature convened for the opening day of the 2022 Legislative Session. Highlighting Florida as a “free state,” Gov. Ron DeSantis gave a State of the State address outlining priorities for the 2022 Session. 

Those priorities include a $1 billion gas-tax break to motorists, boosting pay and providing bonuses for teacher, revamping elections laws, and being a “law and order state.” 

Senate President Wilton Simpson emphasized his desire to provide pay increases and bonus payments to law enforcement officers, firefighters and emergency medical technicians; increased investment in teacher salaries, bus drivers and maintenance workers; and improvements to the child foster care system. 

Simpson also committed to continuing minimum wage increases for state workers. The measure to increase the minimum wage was passed as a constitutional amendment in 2020 and will rise to $15 by 2026. 

Simpson emphasized Florida’s environmental efforts, following a three-month span during which DeSantis proposed actions including natural spring restoration, Everglades maintenance and sustainability, and water-quality management, amounting to over $1 billion dollars spent. 

House Speaker Chris Sprowls highlighted priority bills for the 2022 Session. They included a proposed constitutional amendment to increase homestead exemptions for public employees; offering incentives, such as bonuses and relocation assistance, to recruit law enforcement officers; banning workplace trainings that compel workers to adopt their employer's political views; and adding privacy protections for biometric data to give consumers more control over how their online data is shared or sold. 

All three continued to express the desire to address issues related the impact of the COVID pandemic, including mask mandates, vaccine requirements and the impact of local government requirements on businesses. 

Many of the provisions outlined will have an impact on the state’s more than $90 billion budget. Already included in the Governor’s budget proposal are two key items related to the CPA profession and supported by the FICPA: the Clay Ford Scholarship ($200,000) and Unlicensed Activity funding ($100,000).

The 2022 Legislative Session will continue through March 11 as lawmakers are set to discuss key bill proposals relating to school policies and regulation, further pandemic response plans, and redistricting maps. 

Full opening day remarks:

• Gov. Ron DeSantis 
• Senate President Wilton Simpson 
• House Speaker Chris Sprowls 

2022 Bill Tracker

SB 1090: Corporate Income Tax by Sen. Joe Gruters
Referred to Finance and Tax; Appropriations 

Adopts the 2022 version of the Internal Revenue Code for purposes of the state corporate income tax code; revises the timeframe during which the adjustment of the corporate tax rate based on net collections exceeding adjusted forecasted collections applies; provides for retroactive operation; provides applicability for adjustments taxpayers must make to adjusted federal income with respect to bonus depreciation, etc.  

Effective Date: Upon becoming a law. 

Status: Introduced

SB 1382: Tax Administration by Senator Joe Gruters
Referred to Community Affairs; Finance and Tax; Appropriations 

Prohibits taxpayers from submitting certain records in tax proceedings under certain circumstances; authorizes the Department of Revenue to respond to contact initiated by taxpayers to discuss audits; clarifies conditions for application of an exemption for sales taxes for certain nonresident purchasers of boats or aircraft; deletes a tax exemption for building materials used in the rehabilitation of real property located in an enterprise zone; revises the period in which, and conditions under which, the executive director of the department may adopt emergency rules; excludes certain benefit charges from the employer reemployment assistance contribution rate calculation, etc. 

Effective Date: July 1, 2022 

Status: Introduced 

SB 1276: Legislative Review of Proposed Regulation of Unregulated Functions by Senator Manny Diaz 
Referred to Regulated Industries; Governmental Oversight and Accountability; Rules 

Provides that certain requirements must be met before adopting the regulation of an unregulated profession or occupation or the substantial expansion of regulation of a regulated profession or occupation; requires the proponents of legislation that proposes such regulation to provide certain information to the state agency that would have jurisdiction over the proposed regulation and to the Legislature by a certain date; requires such state agency to provide certain information to the Legislature within a specified timeframe; provides an exception, etc. 

Effective Date: July 1, 2022 

Status: Introduced 

SB 1302: Criminal History Information by Senator Danny Burgess 
Referred to Regulated Industries; Appropriations Subcommittee on Criminal and Civil Justice; Appropriations 

Prohibits an applicable board, or the Department of Business and Professional Regulation if there is no such board, from inquiring into or considering the conviction history of an applicant for licensure until it is determined that the applicant is otherwise qualified; prohibiting the applicable board, or the department if there is no board, from denying an application for licensure of a person based solely or in part on an applicant’s criminal history; provides requirements for determining if such criminal history directly relates to the practice of the applicable profession; provides requirements for court-ordered sealing of certain records that were automatically sealed by the Department of Law Enforcement under specified provisions, etc. 

Effective Date: July 1, 2022 

Status: Voted favorable by Regulated Industries - YEAS 8, NAYS 0

To view more legislation the FICPA is tracking during the 2022 Legislative Session, log in to your member account and visit our Advocacy Action Center.  

2022 Legislative Session: Important Dates 

• Feb. 26: All bills are immediately certified  
• March 1: 50th-day rule (Senate) – last day for regularly scheduled committee meetings  
• March 10: After the 58th day (March 9) of a regular session, the House may consider only returning messages, conference reports and concurrent resolutions
• March 11: 60th day – last day of Regular Session 

FICPA Advocacy Days

FICPA members meet virtually and in person to advocate for CPA profession 

This month, FICPA members participated in CPA Advocacy Days – Virtual Advocacy Day and Hike the Hill – to advocate for the CPA profession. 

On Jan. 12, the FICPA held its annual in-person advocacy event, Hike the Hill, at the Florida Capitol in Tallahassee. The event – which was the Institute’s first full-member, fly-in advocacy day – brought FICPA members together with lawmakers to advocate on behalf of the CPA profession in Florida.   

“During Hike the Hill, our members met with numerous policymakers who impact our profession every day,” FICPA Chair Kristin Bivona said. “The FICPA is the voice of Florida CPAs in our state’s Capitol, and we were honored to have the opportunity to talk with legislators about issues relevant to the CPA profession in Florida.”  

Advocating on CPAs’ behalf is the cornerstone of the FICPA’s mission, and member involvement is crucial to ensuring CPAs count in the political process.   

The FICPA was honored to hear a keynote address from Florida Department of Business and Professional Regulation Secretary Melanie Griffin. Secretary Griffin expressed her excitement to partner with the FICPA in supporting and strengthening the CPA profession. 

Over lunch we're hearing from Secretary @melaniesgriffin (@FloridaDBPR) as #FICPAAdvocacyDay moves forward. @FICPA Leadership Academy graduates are mingling with dozens of #CPA members from around the state who flew in to #HikeTheHill.

Up next: meetings with legislators. pic.twitter.com/yE0gelNPVF

— Julian Dozier, CPA (@JulianDozierCPA) January 12, 2022

In addition to meetings with legislators at the Capitol, Hike the Hill included a Legislative Briefing Luncheon, during which the FICPA celebrated the members of its inaugural Leadership Academy graduating class.   

“Effectively communicating with lawmakers, and the strength of our legislative relationships, are paramount to our success in Florida’s governmental process,” FICPA Director of Governmental Affairs Justin Thames said.  

Hike the Hill followed the FICPA’s Virtual Advocacy Day on Jan. 6. The successful online event offered members an interactive CPA lawmaker panel featuring Rep. Mike Caruso, Sen. Joe Gruters and Rep. Cyndi Stevenson; a discussion of the CPA profession from House Majority Leader Mike Grant, Sen. Travis Hutson, Florida CFO Jimmy Patronis, House Ways and Means Committee Chair Bobby Payne, and Senate Finance and Tax Committee Chair Ana Maria Rodriguez; and a Florida Economic Update from Dr. Jerry Parrish. 

We warmly thank the FICPA members who participated in these events and invite all members to join us for one or both events next year! 

Advocacy in Action

FICPA Calls on Lawmakers to Support IRS Tax Filing Relief

Earlier this week, the FICPA contacted all members of the Florida Congressional Delegation to ask for their signatures on a bipartisan letter asking the U.S. Treasury Department to improve this year’s tax filing season process. The letter, sponsored by U.S. Reps. Darin LaHood and Linda Sanchez, and U.S. Sens. Bob Menendez and Bill Cassidy, outlines five steps for the Treasury to take to provide immediate relief for taxpayers and practitioners.  

• Halt automated collections from now until at least 90 days after April 18, 2022 
• Delay the collection process for filers until any active and pending penalty abatement requests have been processed 
• Streamline the reasonable cause penalty abatement process for taxpayers impacted by the COVID-19 pandemic without the need for written correspondence   
• Provide targeted tax penalty relief for taxpayers who paid at least 70 percent of the tax due for the 2020 and 2021 tax years 
• Expedite processing of amended returns and provide Tax Advocate Service (TAS) and congressional caseworkers with timely responses 

These Congressmen and Congresswomen already have championed the letter. We appreciate their support of the CPA profession and the taxpayers of Florida. 

• Rep. Gus Bilirakis 
• Rep. Vern Buchanan (*Co-lead) 
• Rep. Kat Cammack 
• Rep. Charlie Crist 
• Rep. Scott Franklin 
• Rep. Carlos Gimenez 
• Rep. Bill Posey 
• Rep. John Rutherford 
• Rep. Maria Salazar 
• Rep. Michael Waltz 
• Rep. Debbie Wasserman Schultz
• Rep. Daniel Webster

In response to the letter, the IRS has announced partial relief for taxpayers by stopping some notices to taxpayers for filing errors. Following the IRS statement, the Tax Professionals United for Taxpayer Relief Coalition, which includes the AICPA, released this statement. Also following the IRS statement, the AICPA issued this statement.

The FICPA Advocacy Team will continue to work for more significant relief. For additional information about this issue, or the FICPA’s current and future actions, please reach out to the FICPA Governmental Affairs Department at [email protected].

FICPA Board Chair Kristin Bivona and Director of Governmental Affairs Justin Thames meet with Florida Reps. Jim Mooney and Allison Tant

FICPA, DOR Hold Annual Liaison Meeting 

On Jan. 13, the FICPA Florida State Tax Committee and Florida Department of Revenue (DOR) held their annual Liaison Meeting. FICPA Director of Governmental Affairs Justin Thames and DOR Executive Director Jim Zingale welcomed attendees and gave opening remarks, after which attendees discussed several areas of mutual interest.  

Thames, along with Lisa Vickers, DOR executive director, and Alec Yarger, deputy director, legislative and cabinet affairs, presented a legislative update. During the discussion, the Department highlighted their legislative concepts for the year, outlined in Senate Bill 1382 by Sen. Joe Gruters and House Bill 1041 by Rep. Cyndi Stevenson.  

Other topics of discussion included the Department’s efforts to enhance electronic communication with taxpayers, litigation trends, and Department staffing realignment to better assist practitioners and taxpayers.  

The FICPA greatly appreciates this opportunity to meet with DOR’s executive staff and looks forward to continuing our collaborative efforts on behalf of Florida CPAs and taxpayers. 

NASBA Installs Caldwell on Board of Directors 

The National Association of State Boards of Accountancy (NASBA) recently announced the members of its 2021-2022 Board of Directors. Members were installed Nov. 2-3 during NASBA’s 114th Annual Meeting. 

Longtime FICPA member Maria Caldwell, CPA, of Miami was elected director-at-large and appointed chair of the Peer Review Compliance Committee. Caldwell, an audit director at Deloitte & Touche, specializes in hospitality, real estate and the gaming industries. She is a former chair of the Florida Board of Accountancy. 

Caldwell is a former NASBA southeast regional director and director-at-large from 2014-2020. She is a former chair of NASBA’s Audit, CPE, Diversity, Enforcement Resources and Peer Review Compliance Committees, and its CPE Standards Working Group. Caldwell also has served on NASBA’s Administration and Finance, CPE, Diversity and Joint AICPA/NASBA CPE Standards committees.  

We offer Maria our sincere congratulations and look forward to working with her in her new role! 

DOR TIPs

The Florida Department of Revenue published these helpful Tax Information Publications (TIPS) since the Dec. 3 issue of Advocacy Update.

Sales and Use Tax 

• 12/21/21: Peer-to-Peer Car-sharing Program Required to Register to Collect and Remit Applicable Sales Tax, Discretionary Sales Surtax and Rental Car Surcharge 
• 12/29/21: Motor Vehicle Sales Tax Rates by State (as of Dec. 29, 20201) 
• 1/5/22: Madison County Increases its Tourist Development Tax Rate from 3% to 5% 

Corporate Income Tax 

• 1/4/22: Florida Corporate Income/Franchise Tax – Internship Tax Credit Program 
• 1/13/22: Florida Corporate Income Tax 2022 Automatic Refund 

Intangible Tax 

• 1/5/22: 2022 Governmental Leasehold Intangible Tax Valuation Factor Table 

Contribute

The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. 

It is your voluntary contributions that help protect the CPA license. 

Donate Now

Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others. 

This week, the FICPA Government Affairs Department wrapped up activities related to the last of the Florida Legislature’s interim committee meetings. The 2022 Legislative Session begins Jan. 11.  

To date, more than 2,300 bills have been filed. FICPA Governmental Affairs continues to analyze each piece of legislation to determine the impact on the CPA profession.  

In our Dec. 2 Advocacy Update, we address:

• Our 2022 CPA Advocacy Days online and in Tallahassee
• The pre-Session status of four Florida Senate bills 
• Important dates for the 2022 Legislative Session
• Our recent meeting with our CPA Lawmakers
• Carey Vasallo's appointment to the Board of Accountancy
• Vaccine exemptions passed by the Legislature and signed into law
• And a pair of Tax Information Publications from the Florida Department of Revenue

2022 CPA Advocacy Days: Registration now open!

Effectively communicating with lawmakers is paramount to our success in Florida’s governmental process. Whether we connect virtually or in person, our legislative relationships determine whether our message lands in the “first response” or “reply later” file.  

On Jan. 6, the FICPA will hold its second annual Virtual Advocacy Day. We'll be joined by Florida House Rep. Mike Caruso and the Florida Chamber's Dr. Jerry Parrish, in addition to a handful of key state officials we'll announce in the coming weeks.

And on Jan. 12, we’ll host our first full membership fly-in event – Hike the Hill – in Tallahassee. Please note: The deadline to secure a spot in the hotel room block is Dec. 10, so be sure to register today to reserve your accommodations at the rate group rate.

We cordially invite all members to attend one or both events. Please join us as we unite to protect the CPA profession in Florida. 

FICPA Virtual Advocacy Day  

Thursday, Jan. 6, 2022 

• 12:30 p.m. – Welcome and agenda overview 
• 12:40 p.m. – Legislative briefing 
• 1:15 p.m. – CPA Lawmaker panel (interactive) 
• 2 p.m. – CPA profession legislative leader discussion 
• 3:30-4:30 p.m. – Florida Economic Update, Dr. Jerry Parish, Florida Chamber Foundation 

Hike the Hill  

Wednesday, Jan. 12, 2022 

• 11:45 a.m. – Registration (Governor’s Club) 
• Noon-2 p.m. – Luncheon and legislative briefing (Governor’s Club)  
• 2-4:30 p.m. – Legislative visits (Florida Capitol) 
• 4:30-6:30 – Member Appreciation Reception (FICPA Governmental Affairs Office)

Register for Advocacy Days

2022 Bill Tracker

SB 880: Condominium Associations by  Sen. Jason Pizzo
Referred to Regulated Industries; Criminal Justice; Rules 

Revises the parties considered to be the defendants in a tax suit; revises criminal penalties relating to the acceptance of things or services of value or kickbacks; requires an association to provide an itemized list and a sworn affidavit to persons requesting to inspect records; specifies acts that comprise fraudulent voting activities relating to association elections; revises the jurisdiction of the Division of Florida Condominiums, Timeshares and Mobile Homes of the Department of Business and Professional Regulation with regard to investigating complaints, etc.  

Effective Date: Oct. 1, 2022 

Status: Filed and referred to Committee 

SB 1090: Corporate Income Tax by Sen. Joe Gruters

Adopts the 2022 version of the Internal Revenue Code for purposes of the state corporate income tax code; revises the timeframe during which the adjustment of the corporate tax rate based on net collections exceeding adjusted forecasted collections applies; provides for retroactive operation; provides applicability for adjustments taxpayers must make to adjusted federal income with respect to bonus depreciation, etc.  

Effective Date: Except as otherwise expressly provided, this act shall take effect upon becoming a law. 

Status: Filed  

SB 620: Local Government by Sen. Travis Hutson
Referred to Judiciary; Rules; Appropriations 

Authorizes certain businesses to claim business damages from a county or municipality if the county or municipality enacts or amends certain ordinances or charter provisions; authorizes businesses to recover costs and fees in a specified manner and if certain requirements are met; requires courts to consider certain factors and follow specified guidance when assessing costs; specifies requirements for the courts in determining and awarding attorney fees; requires attorneys and businesses to submit certain documentation relating to attorney fees, etc.  

Effective Date: July 1, 2022 

Status: Filed and referred to Committee 

SB 952: Taxation by Sen. Joe Gruters 
Referred to Military and Veterans Affairs, Space, and Domestic Security; Finance and Tax; Appropriations 

Exempts federal loans related to a state of emergency from the excise tax imposed on documents; increases the combined total amount of credits which may be granted to business enterprises during any calendar year, etc.  

Effective Date: July 1, 2022 

Status: Filed and referred to Committee 

To view more legislation the FICPA is tracking during the 2022 Legislative Session, log in to your member account and visit our Advocacy Action Center.  

2022 Legislative Session: Important Dates 

• Jan. 7: 5 p.m. deadline for approving final drafts of general bills and joint resolutions, including companion bills  
• Jan. 11: 2022 Legislative Session convenes; noon deadline for filing bills for introduction 
• Feb. 26: All bills are immediately certified  
• March 1: 50th-day rule (Senate) – last day for regularly scheduled committee meetings  
• March 10: After the 58th day (March 9) of a regular session, the House may consider only returning messages, conference reports and concurrent resolutions
• March 11: 60th day – last day of Regular Session 

Advocacy in Action

We are always grateful to our CPA Lawmakers for being generous with their time. We recently were proud to present Sen. Joe Gruters, Rep. Mike Caruso and Rep. Cyndi Stevenson with plaques commemorating the FICPA's Governmental Affairs 2021 Legislative Report, which you can access here, and to discuss the upcoming legislative session alongside Liberty Partners' Jennifer Green.

Other News

Gov. DeSantis appoints Vasallo to Board of Accountancy  

On Nov. 5, Gov. Ron DeSantis announced the appointment of Caridad “Carey” Vasallo, CPA, to the Board of Accountancy.   

A current FICPA Foundation Trustee, Carey is the owner of VMBG Accounting in Hialeah. In addition to being CPA, she is a certified fraud examiner, certified valuation analyst, certified anti-money laundering specialist and certified forensic consultant. Vasallo was recognized as the Coral Gables Chamber of Commerce’s Businesswoman of the Year and previously served on the FICPA Board of Directors. She earned her bachelor’s degree in accounting from Barry University and master’s degree in accounting from Nova Southeastern University.   

This appointment is subject to confirmation by the Florida Senate. 

The FICPA congratulates Carey on her appointment and looks forward to working with her on behalf of the profession!  

Gov. DeSantis signs vaccine mandate exemption bill  

The Florida Legislature concluded Special Session 2021B and presented Gov. Ron DeSantis with four bills to counter what state lawmakers have viewed as an overreach of authority: the federal government’s recent vaccine mandates on private employers, federal contractors and federal health care funding recipients. 

House Bill 1B (HB 1B) outlines five exemptions that must be offered to employees by private employers that require COVID-19 vaccines as a term of employment.     

The legislation includes exemptions for medical or religious reasons; if an employee previously contracted COVID; or if an employee agrees to regular employer-sponsored testing or wearing employer-provided personal protective equipment.     

The Attorney General’s Office will enforce the law. Businesses will be subject to penalties ranging from up to $10,000 to up to $50,000 per violation, based on the size of the business and other contributing factors.     

Additionally, employees who are terminated for refusing to receive a vaccine will be allowed to collect re-employment assistance under the bill. Public employers will not be allowed to require vaccination as a condition of employment.    

A list of frequently asked questions on how to comply with HB 1B, as well as brief summaries of the other bills passed during the Special Session, can be found here, courtesy the Florida Chamber. The exemption forms can be accessed via the Florida Department of Health. 

Gov. DeSantis signed the bill into law Nov. 18, with Attorney General Ashley Moody, Senate President Wilton Simpson and House Speaker Chris Sprowls in attendance.   

The Florida Department of Health, Department of Legal Affairs and Department of Economic Opportunity were required to complete additional rulemaking 15 days after Gov. DeSantis signed the legislation into law.   

DOR TIP

Changes in local communications services tax rates 

Effective Jan. 1, 2022, the local communications services tax (CST) rate for one Florida municipality will change pursuant to a local ordinance adopted by the governing authority of the municipality.  

The total local CST rate includes:

1. The local rate imposed under the CST statute
2. Any county discretionary sales surtax imposed under the sales and use tax statute.  

The local rate listed in the chart above is effective for all bills issued on or after Jan. 1, 2022, regardless of the date the service is rendered or transacted. This rate will stay in effect until further notice by the Department of Revenue. 

 A rate schedule containing all local CST rates, including the new rate effective Jan. 1, 2022, is available with the online version of this TIP, or local CST rates may be downloaded from the Department’s website.  

References: Sections 202.19, 202.20, 202.21, and 212.055, Florida Statutes 

Fuel tax rates adjusted 

Beginning Jan. 1, 2022, the statewide tax rates on motor fuel and diesel fuel will increase. Florida law requires annual adjustments to the state fuel tax rates and the State Comprehensive Enhanced Transportation System (SCETS) tax rate based on the National Consumer Price Index.  

Motor fuel
The state tax rate on motor fuel will increase from 18.5 cents per gallon to 19 cents per gallon. The ninth-cent and local option rates
vary by county. For a list of local option and ninth-cent rates by county, review the Motor Fuel Tax Rates chart available on the Florida Department of Revenue’s website. The SCETS rate will increase from 8 cents per gallon to 8.3 cents per gallon. The inspection fee on motor fuel will remain 0.125 cents per gallon.  

Diesel fuel  
The state tax rate on diesel fuel will increase from 18.5 cents per gallon to 19 cents per gallon. The county tax rate (ninth-cent, SCETS and local option tax rates) on diesel fuel will increase from 15 cents per gallon to 15.3 cents per gallon statewide. The total state and county rates on diesel fuel will increase from 33.5 cents per gallon to 34.3 cents per gallon statewide.  

Aviation fuel  
The state tax rate on aviation fuel is 4.27 cents per gallon.  

Minimum local option tax on motor fuel collected at fuel terminals  

• Terminal suppliers: In addition to the 19 cents per gallon of state fuel taxes collected at the loading rack, terminal suppliers must collect a minimum local option fuel tax of 14.3 cents per gallon, a pollutants tax of 2.071 cents per gallon, and an inspection fee of 0.125 cents per gallon on each gallon of motor fuel sold to licensed wholesalers. Total fuel taxes collected by terminal suppliers on sales of motor fuel to licensed wholesalers is 35.496 cents per gallon.  
• Terminal suppliers/wholesalers: Terminal suppliers/wholesalers must remit to the Department the local option tax rate above the minimum on motor fuel sold to retail dealers or end users that do not have a wholesaler or terminal supplier license. This rate is in addition to the minimum local option tax of 14.3 cents per gallon collected by terminal suppliers when fuel is removed from a licensed terminal.  

A chart listing the 2022 rates for fuel tax, collection allowance, refund and pollutants tax is on the Department’s website.  

Filing your return  

Taxpayers obligated to file electronically must use the appropriate method as specified in Rule Chapters 12B-5 and 12-24, Florida Administrative Code. There is a $5,000 penalty if you do not file electronically when obligated to do so.  

Returns are due on the 1st and late after the 20th day of the month following the collection period. If the 20th is a Saturday, Sunday, or state or federal holiday, returns are timely if filed electronically, postmarked or hand delivered on the first business day following the 20th day of the month.  

When you electronically pay or you electronically file and pay at the same time, you must initiate your electronic payment and receive a confirmation number no later than 5 p.m. ET on the business day prior to the 20th to avoid penalty and interest. For a list of payment due dates, visit floridarevenue.com/forms and select the current year’s Florida eServices Calendar of Electronic Payment Deadlines (Form DR-659) under the eServices section.  

Failure to properly file a tax return may result in the assessment of penalty and interest and loss of the collection allowance.  

Check the Department’s website in January 2022 for sample copies of the 2022 returns with the new tax rates. Select the “Forms and Publications” option under Quick Links.  

References: Chapter 206, Florida Statutes; Rule Chapters 12B-5 and 12-24, Florida Administrative Code 

More information 

For forms and other information, visit the Department’s website at floridarevenue.com or call Taxpayer Services at (850) 488-6800, Monday through Friday (excluding holidays). 

For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services MS 3-2000, 5050 W. Tennessee St., Tallahassee, FL 32399-0112. 

Contribute

The Florida CPA/PAC supports the politicians who stand up for CPAs. We back the candidates and incumbents who will ensure CPAs and their clients are included in the legislative process. 

It is your voluntary contributions that help protect the CPA license. 

Donate Now

Please note: Contributions are strictly voluntary and are not deductible for federal tax purposes. The Florida CPA/PAC is an entity completely separate from the FICPA. The Florida CPA/PAC is supported solely by the voluntary contributions of members of the FICPA and others.