Advocacy Alert

IRS grants relief to 13 Florida counties impacted by storms on May 10; deadlines extended to Nov. 1

133345 — Wed, 26 Jun 2024 14:17:20 +0000

IRS grants relief to 13 Florida counties impacted by storms on May 10; deadlines extended to Nov. 1

133345 Wed, 06/26/2024 - 10:17

July 19, 2024

Update, July 17: Relief has been extended to include Columbia County.

Update, June 28: Relief has been extended to include Jefferson and Santa Rosa counties.

WASHINGTON — The Internal Revenue Service announced on Tuesday tax relief for individuals and businesses in Florida that were affected by severe storms, straight-line winds, and tornadoes that began on May 10, 2024. These taxpayers now have until Nov. 1, 2024, to file various federal individual and business tax returns and make tax payments.

Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in: Baker, Gadsden, Hamilton, Lafayette, Leon, Liberty, Madison, Suwannee, Taylor, and Wakulla counties qualify for tax relief.

The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after May 10, 2024, and before Nov. 1, 2024, are granted additional time to file through Nov. 1, 2024. As a result, affected individuals and businesses will have until Nov. 1, 2024, to file returns and pay any taxes that were originally due during this period.

The Nov. 1 filing deadline applies to:

Individuals who had a valid extension to file their 2023 return due to run out on Oct. 15, 2024. The IRS noted, however, that because tax payments related to these 2023 returns were due on April 15, 2024, those payments are not eligible for this relief.
Businesses with an original or extended due date including, among others, calendar-year partnerships and S corporations whose 2023 extensions run out on Sept. 16, and calendar-year corporations whose 2023 extensions run out on Oct. 15.

The Nov. 1, 2024, deadline also applies to any payment normally due during this period, including the quarterly estimated tax payments due on June 17, 2024, and Sept. 16, 2024, and the quarterly payroll and excise tax returns normally due on July 31, 2024, and Oct. 31, 2024. In addition, penalties on payroll and excise tax deposits due on or after May 10, 2024, and before May 28, 2024, will be abated as long as the tax deposits were made by May 28, 2024.

In addition, the Nov. 1, 2024, deadline applies to calendar-year tax-exempt organization returns normally due on May 15, 2024.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.

The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief. Disaster area tax preparers with clients located outside the disaster area can choose to use the bulk requests from practitioners for disaster relief option, described on IRS.gov.

Covered disaster area

The localities listed above constitutes a covered disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Under section 7508A, the IRS gives affected taxpayers until Nov. 1, 2024, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after May 10, 2024, and before Nov. 1, 2024, are granted additional time to file through Nov. 1, 2024.

Affected taxpayers that have an estimated income tax payment originally due on or after May 10, 2024, are postponed through Nov. 1, 2024, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before Nov. 1, 2024.

The IRS also gives affected taxpayers until Nov. 1, 2024, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018), that are due to be performed on or after May 10, 2024, and before Nov. 1, 2024, are granted additional time to file through Nov. 1, 2024.

This relief also includes the filing of Form 5500 series returns that were required to be filed on or after May 10, 2024, and before Nov. 1, 2024, are postponed through Nov. 1, 2024, in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after May 10, 2024, and before May 28, 2024, will be abated as long as the tax deposits were made by May 28, 2024.

Casualty losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. In this instance, the 2024 return normally filed next year), or the return for the prior year (the 2023 return filed this year). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. See Publication 547 for details. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and Thefts and its instructions. Affected taxpayers claiming the disaster loss on their return should put FEMA disaster declaration number, 4794-DR on any return. See Publication 547 for details.

Other relief

The IRS will waive the usual fees and requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned FEMA declaration number (4794-DR), in bold letters at the top of Form 4506, Request for Copy of Tax ReturnPDF, or Form 4506-T, Request for Transcript of Tax ReturnPDF, as appropriate, and submit it to the IRS.

Qualified disaster relief payments are generally excluded from gross income. This means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525 for details.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.

The IRS may provide additional disaster relief in the future.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, IRS.gov.

Reminder about tax return preparation options

Eligible individuals or families can get free help preparing their tax return at Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) sites. To find the closest free tax help site, use the VITA Locator Tool or call 800-906-9887. Note that normally, VITA sites cannot help claim disaster losses.
To find an AARP Tax-Aide site, use the AARP Site Locator Tool or call 888-227-7669.
Any individual or family whose adjusted gross income (AGI) was $79,000 or less in 2023 can use IRS Free File’s guided tax software at no cost. There are products in English and Spanish.
Another Free File option is Free File Fillable Forms. These are electronic federal tax forms, equivalent to a paper 1040 and are designed for taxpayers who are comfortable filling out IRS tax forms. Anyone, regardless of income, can use this option.
MilTax, a Department of Defense program, offers free return preparation software and electronic filing for federal tax returns and up to three state income tax returns. It’s available for all military members and some veterans, with no income limit.

Topics

Advocacy Alert

Internal Revenue Service

FICPA Government Affairs

Advocacy Alert: Gov. Ron DeSantis signs state budget

133345 — Wed, 12 Jun 2024 19:37:11 +0000

Advocacy Alert: Gov. Ron DeSantis signs state budget

By FICPA Staff

133345 Wed, 06/12/2024 - 15:37

June 12, 2024

Florida Gov. Ron DeSantis on Wednesday signed HB 5001 – General Appropriation Act, commonly referred to as the state budget, for fiscal year 2024-25.

The state constitution requires the Florida Legislature pass a balanced budget each Legislative Session. The governor then has line-item veto authority to review items passed by the Legislature before signing the budget into law.

On Wednesday, as part of his actions in signing the budget, Gov. DeSantis vetoed $949,611,399 that was originally approved by the Legislature. This year’s final GAA totaled $116.5 billion, which includes $17 billion in reserves. The state fiscal year begins July 1.

You can access the governor's veto list here.

Of interest to the CPA profession, $200,000 has once again been approved for the Clay Ford Scholarship Program, which awards financial aid to fifth-year students pursuing their CPA license. Separately, $100,000 has likewise been allocated to the Department of Business and Professional Development to combat unlicensed activity, helping to protect the reputation of the profession.

The signing of the state budget is notable, as the governor is winding down his review of the bills passed by the Legislature during the 2024 Session. We will continue to keep you updated on the implementation of legislation important to you and the CPA profession.

Topics

Advocacy Alert

FICPA Government Affairs

Advocacy Alert: Disaster relief bill advances via petition

133345 — Thu, 16 May 2024 19:36:14 +0000

Advocacy Alert: Disaster relief bill advances via petition

FICPA Governmental Affairs Team

133345 Thu, 05/16/2024 - 15:36

May 16, 2024

In a remarkable display of bipartisan unity, the United States Congress has strategically moved forward a critical piece of legislation forward. HR 5863 by Congressman Greg Stuebe (R-FL) provides key disaster relief to individuals impacted by Hurricane Ian. The bill resolves issues around tax rules relating to personal losses during declared disasters. The bill faced considerable obstacles initially, but a group of lawmakers from both parties navigated minor procedural hurdles to ensure its advancement.

Locally, Rep. Stuebe went to social media to voice his perspective on this proposed legislation. “Floridians have waited since 2022 to receive tax relief from Hurricane Ian, and many other Americans have waiting just as long for relief from other disasters," he said. "I look forward to swift passage of my legislation on the House floor and urge expeditious consideration in the Senate.”

The discharge petition, an uncommon yet potent tool, allows a bill to bypass committee review and proceed directly to the House floor for a vote, contingent upon garnering 217 members for support from members of Congress. The bipartisan coalition behind this relief effort ensured that most of the pressing national priorities were noted while also gaining 218 members of support. By prioritizing the nation's interests above partisan differences, lawmakers can take a crucial step towards fulfilling their responsibilities to the American people.

Although HR 5863 is widely supported in the House of Representatives, the Senate still has some outstanding concerns. While the Senate is well known for slow-walking major legislation such as this, sponsors in the Senate are confident an agreement will be met. Florida Senator Rick Scott's office released a statement in support of the Senate Bill: “For nearly a year, Senator Scott has been fighting to pass his Hurricane Tax Relief Act and provide much-needed disaster-loss tax relief to Florida families impacted by Hurricane Ian," it read. "He fully expects his bill to pass and won’t stop fighting until that’s done and the Hurricane Tax Relief Act is signed into law.”

This bill modifies tax rules relating to personal casualty losses for taxpayers affected by Hurricanes Ian, Nicole, and Fiona. It eliminates the requirements that such taxpayers must itemize their tax deductions as a condition of eligibility for relief and that their losses exceed 10% of their adjusted gross income. The bill will provide tax write offs of damage repair for all presidential-declared disaster.

Rep. Steube said he has not spoken with the White House on this bill but expects it to become a law. He predicts it could be on the House Floor by next week and expressed optimism about its fate.

Topics

FICPA Government Affairs

Advocacy Alert

Hurricane Ian

Advocacy Alert: Gov. Ron DeSantis signs annual tax package

133345 — Tue, 07 May 2024 15:53:16 +0000

Advocacy Alert: Gov. Ron DeSantis signs annual tax package

By FICPA Staff

133345 Tue, 05/07/2024 - 11:53

May 7, 2024

Gov. Ron DeSantis on Tuesday signed HB 7073 – Taxation, this year’s tax cut and incentive package. This bill provided numerous changes to Florida tax laws for the upcoming fiscal year and is estimated to save $1.5 billion for taxpayers and consumers over the next two years. 

Among other provisions, this bill includes the FICPA-priority language for automatic tax extensions when a state of emergency has been declared within five days of a deadline.  

As a reminder, this concept originated from the FICPA State Tax Committee and was a priority for the FICPA this legislative session.

The language requires the Department of Revenue (DOR) to grant an automatic 10-day extension from the due date for filing a return and remitting sales tax if a declaration of a state of emergency is issued by the governor within five business days before the 20th day of the month. The extension only applies to taxpayers within the counties affected by the state of emergency.

The bill requires DOR to grant a 15-day automatic extension for Florida corporate income tax returns beyond the due date of a federal corporate income tax return that has been extended by the IRS due to a federally declared disaster.

"The passage of this new automatic tax extension language will provide an important benefit to our members and Florida taxpayers,” FICPA Chief External Affairs Officer Jason Harrell said. “It marks a common sense, proactive step in ensuring that CPAs, their clients and the residents of Florida have one less thing to worry in times of crisis. Now, Floridians can focus on preparing for a storm instead of worrying about requesting an extension."

The FICPA would like to thank the both the governor and the legislature for their support of this initiative.

Among the more notable items in the tax package are the annual sales tax holidays, a $450 million toll rebate program and a credit to insurance companies that reduce premiums for homeowners.

Below is a brief overview of all items listed within the 2024 Tax Package:

A Back-to-School Sales Tax Holiday (July 29 - Aug. 11): For school supplies, learning aids, personal computers and certain clothing and footwear. 
Disaster Preparedness Sales Tax Holidays (June 1-14; Aug. 24-Sept. 6): For generators, radios, flashlights, coolers, and pet evacuation supplies during a disaster. 
Freedom Month Sales Tax Holiday (July 1-31): For tickets for admission to live music events, sporting events, museums, cultural events, and other recreational events through Dec. 31, 2024. Also, for boating and water, camping, fishing, and general outdoor supplies. 
Skilled Worker “Tool Time” Sales Tax Holiday (Sept. 1-7): For tools used by skilled trade workers, such as carpenters, electricians, plumbers, and welders. 
$450 million in toll rebates for drivers with more than 35 transactions each month. 
Automatic extensions for sales tax and corporate tax during a natural disaster or state of emergency (FICPA priority). 
$5 million credit against the corporate income tax for three years for businesses that employ workers with special needs ($1,000 per employee). 
$5 million tax credit for three years for businesses that incur childcare expenses on behalf of their employees. 
Increases the Strong Families Tax Credit Program from $20 million to $40 million. 
One-year residential property insurance tax exemption for residential property insurance policyholders on policies written between Oct. 1, 2024 – Sept. 30, 2025. 
One-year flood insurance policy premium tax exemption on flood insurance policies written between Oct. 1, 2024 – Sept. 30, 2025.

Topics

Advocacy Alert

FICPA Government Affairs

Advocacy Alert: Gov. Ron DeSantis signs bill creating new retired CPA status in Florida

133345 — Thu, 11 Apr 2024 15:38:42 +0000

Advocacy Alert: Gov. Ron DeSantis signs bill creating new retired CPA status in Florida

FICPA Governmental Affairs Team

133345 Thu, 04/11/2024 - 11:38

April 15, 2024

Today, the Florida Institute of Certified Public Accountants (FICPA) celebrates the signing of its priority legislation for the CPA profession.

Gov. Ron DeSantis on Monday signed CS/HB 813 – Certified Public Accountants by Rep. Mike Caruso (CS/CS/SB 954), a bill that creates a new retired license status in statute for certified public accountants (CPAs) in Florida.

“We want to thank Gov. DeSantis for signing this great bill, CPA Lawmakers Rep. Caruso and Sen. Gruters for sponsoring it, and the entire Legislature for supporting the profession. This is a proud day in our history,” FICPA President & CEO Shelly Weir said. “The FICPA’s Governmental Affairs team has worked for years to secure this important designation. Now, more than ever, CPAs count in the state of Florida.”

Passed unanimously by the Florida House on Feb. 15 and by the Florida Senate on March 5, the legislation allows licensed CPAs who are at least 65 years of age to apply to the Florida Board of Accountancy (BOA) to place their license into retired status. Under this designation, an individual may use “retired CPA” as part of their business card, letterhead, or any electronic communication. This allows individuals who have had long and distinguished careers to continue serving, without compensation, on boards or in other mentoring or advisory roles for certain specified charitable or civic organizations. Should a retired CPA want to go back into public practice, the bill allows for reactivation of their license.

The new law goes into effect on July 1.

“This legislation means a lot to Florida’s CPAs. Now, they can continue serving and contributing to their communities in retirement while maintaining a title that has meant so much throughout their careers,” FICPA Chief External Affairs Officer Jason Harrell added. “Advocacy is at the heart of the FICPA. We now look forward to working with our members and the Board of Accountancy to implement this important change.”

Topics

FICPA Government Affairs

Advocacy Alert

Advocacy Alert: FICPA priority bill filed in the Florida Senate

133345 — Thu, 14 Dec 2023 17:46:02 +0000

Advocacy Alert: FICPA priority bill filed in the Florida Senate

FICPA Governmental Affairs Team

133345 Thu, 12/14/2023 - 12:46

December 14, 2023

Sen. Joe Gruters on Thursday filed Senate Bill 954 - Certified Public Accountants in the Florida Senate. This bill – which is among the FICPA’s 2024 legislative priorities – creates a new “retired status” license category for CPAs. This is the companion bill to House Bill 813 - Certified Public Accountants, filed by Rep. Mike Caruso on Monday. The bills are identical.

As discussed in our Advocacy Alert on Monday: Currently, to keep and use the “CPA” designation, CPAs must maintain active licensure requirements, including continuing education. If no longer willing or able to keep up with the licensure requirements in retirement, CPAs must either petition for inactive status or allow their license to become null and void. In either case, they are no longer authorized to use the CPA designation.

HB 813 SB 954 would amend s. 473.313, F.S. to create a new “retired status” license category. This change would allow CPAs who are at least 65 years of age and have an active or inactive license to petition the BOA (Board of Accountancy) to place their license into retired status. Under this designation, an individual may use “retired CPA” as part of their business card, letterhead, or any electronic communication.

This change would allow individuals who have had long and distinguished careers to continue serving, without compensation, on a board or in other mentoring or advisory roles for certain specified charitable or civic organizations. Should they want to go back into public practice, the bill allows retired CPAs to reactivate their licenses.

Having the bills filed in the House and Senate is an important step in our success during the 2024 Legislative Session. The bills will now be referred to the appropriate committees of reference.

The FICPA will continue to provide updates as the bills move through the process.

Topics

FICPA Government Affairs

Advocacy Alert

Advocacy Alert: FICPA priority bill filed in the Florida House

133345 — Mon, 11 Dec 2023 21:38:29 +0000

Advocacy Alert: FICPA priority bill filed in the Florida House

FICPA Governmental Affairs Team

133345 Mon, 12/11/2023 - 16:38

December 11, 2023

Rep. Mike Caruso on Monday filed House Bill 813 - Certified Public Accountants in the Florida House. This bill – which is among the FICPA’s 2024 legislative priorities – creates a new “retired status” license category for CPAs.

Currently, to keep and use the “CPA” designation, CPAs must maintain active licensure requirements, including continuing education. If no longer willing or able to keep up with the licensure requirements in retirement, CPAs must either petition for inactive status or allow their license to become null and void. In either case, they are no longer authorized to use the CPA designation.

HB 813 would amend s. 473.313, F.S. to create a new “retired status” license category. This change would allow CPAs who are at least 65 years of age and have an active or inactive license to petition the BOA (Board of Accountancy) to place their license into retired status. Under this designation, an individual may use “retired CPA” as part of their business card, letterhead, or any electronic communication.

The FICPA will notify membership when the bill has been filed in the Florida Senate and will continue to provide updates as the legislation moves through the process.

Topics

FICPA Government Affairs

Advocacy Alert