Journal of Accountancy Podcast

On March 1, the IRS issued guidance on the employee retention credit. April Walker, CPA, CGMA, lead manager on the Tax Practice & Ethics team at the AICPA, explains the highlights of that guidance, including how the credit interacts with PPP loans. Also, Ken Witt, CPA, CGMA, senior manager for management accounting and member engagement at the AICPA, shares the important details of the latest AICPA Business & Industry Economic Outlook Survey. What you'll learn from this episode: Key points of the 102-page guidance from the IRS on the employee retention credit. What the IRS guidance did not yet address. How finance executives feel about the domestic economy and their own businesses in the coming 12 months. The top challenges listed by CPA decision-makers. The business sectors that showed rising optimism.

Do you know the name John Wesley Cromwell Jr.? Do you know the specific businesses targeted recently for Paycheck Protection Program loan applications? This express version of the JofA podcast gives you more on those topics, along with details on an accounting alternative related to goodwill impairment that FASB is expected to issue soon. Cromwell became a CPA 100 years ago, and his story as the first Black CPA is part of a year-long effort to honor, celebrate, and build upon the progress Black CPAs have made in shaping the accounting profession. You'll also hear the voice of Lester McKeever, CPA, another pioneering Black accountant. Also, catch up on what a White House statement means in the short term for PPP loan applications. And hear from Mike Cheng, CPA, a member of the AICPA Private Companies Practice Section Technical Issues Committee, on the significance of a recent FASB accounting alternative.

Earlier in February, numerous amendments to the 2021 fiscal year budget resolution were voted on by the Senate. One of those nonbinding amendments, which passed unanimously by a voice vote, could lead to a lessening of an administrative burden for many employers and employees. The amendment related to mobile workforce legislation, introduced by Sen. John Thune, R-S.D., and supported by Sen. Sherrod Brown, D-Ohio, would extend the de minimis threshold to work in a state as a nonresident before owing state income taxes or being subject to withholding. It also would provide that during the pandemic, employers could withhold as they did prior to the pandemic or provide flexibility for employers to track where remote work is performed. It also would provide that employers would not have a nexus or apportionment impact by having a remote worker in a nonresident state during the pandemic. The AICPA has long supported and continues to support mobile workforce legislative proposals. The AICPA submitted comments in support of the bill on numerous occasions and issued a Feb. 8 press release on the passage of the Senate budget resolution amendment on mobile workforce legislation. For more on the development of mobile workforce legislation, see Yesnowitz, Sherr, and Bell-Jacobs, "AICPA Focuses Advocacy Efforts on Mobile Workforce Legislation," in The Tax Adviser. What you'll learn from this episode: Background on the AICPA's interest in mobile workforce tax legislation from Eileen Sherr, CPA, CGMA, director of the AICPA Tax Policy & Advocacy team. Why the legislation could be significant. FASB's recent response to a pandemic-related accounting concern. Several highlights from the JofA's February print issue, including more on tax penalty relief and Excel's Ideas feature.

A recent survey showed that a majority of couples have experienced relationship stress because of finances. So, how can couples openly communicate about money? Mike Landsberg, CPA/PFS, shares a few reminders. Also, Sara Lord, CPA, a member of the AICPA Auditing Standards Board (ASB), expands on the board's recent exposure draft related to quality management. The comment period on the ED runs through June 11, and comments can be sent to CommentLetters@aicpa-cima.com.

The onset of COVID-19 meant that more people became online shoppers out of necessity. Ordering groceries by phone or computer also means more of us are putting potentially sensitive information online. Robert Westley, CPA/PFS, shares advice to avoid becoming a victim of identity theft, expanding on the tips in a recent Journal of Accountancy article. Alistair Nevius, J.D., the JofA's editor-in-chief, tax, explains more on recent legislative changes to the employee retention credit. Also, the AICPA Auditing Standards Board has issued proposed standards designed to change the way firms manage quality in their accounting and auditing practices.

Paycheck Protection Program (PPP) loans and the start of tax season are two topics squarely on the minds of CPAs these days. This episode analyzes the Jan. 25 update by the U.S. Small Business Administration (SBA) about processing second-draw loan applications and looks at what recent IRS announcements mean for tax season. Kari Hipsak, CPA, CGMA, a senior manager at the Association of International Certified Professional Accountants, and Alistair Nevius, J.D., the JofA's editor-in-chief, tax, are the guests for this quick look at recent news that affects the accounting profession. What you'll learn from this episode: Why PPP loan applicants should be patient and vigilant. The practical applications of the SBA's recent update. A preview of the JofA's February print issue. What the announced date that the IRS begins accepting tax returns means for practitioners and filers. Effects of the Consolidated Appropriations Act, 2021 (CAA), P.L. 116-260, on tax season.

Earlier, Eileen Sherr, CPA, CGMA, MT, a director of the AICPA's Tax Policy & Advocacy team, discussed prospects for reversing by legislation the IRS's position regarding deductibility of business expenses paid with loan proceeds from the Paycheck Protection Program (PPP) that are ultimately forgiven. Now, that legislation has been enacted, by the Consolidated Appropriations Act, 2021 (CAA), P.L. 116-260. Sherr returns to outline that and other changes. Plus, we look ahead to possible developments during 2021 in tax legislation and pandemic relief. What you'll learn from this episode: What the CAA resolved regarding deductibility of business expenses paid by loan proceeds from the PPP, along with other AICPA advocacy priorities — and what remains unresolved. Possible emphases for tax legislation going forward from the Biden administration and the new Congress. Ongoing pandemic-related tax relief measures and advocacy at the federal and state levels.

Accountants played a crucial role in helping millions of organizations, most of them small businesses, receive $525 billion in Paycheck Protection Program loans last year. Now, the PPP is back and businesses will again be looking to CPAs for advice and assistance in accessing the program, which provides forgivable loans that borrowers can use for payroll and other essential expenses as the COVID-19 pandemic continues to roil the economy. What do CPAs need to know about the new PPP? How is it different from the program that ran for five months before its loan application window closed in August? And what should accountants be doing to help businesses access the $284 billion available in the PPP's second iteration? Those topics and more are addressed by Erik Asgeirsson, president and CEO of the AICPA's business subsidiary CPA.com, and Lisa Simpson, CPA, CGMA, the AICPA's vice president–Firm Services. What you'll learn from this episode: When lenders can start submitting PPP loan applications to the U.S. Small Business Administration. Details about the new PPP second-draw loans. Why many banks won't be submitting PPP applications at the beginning of the application period. What the AICPA has been doing to support the accounting profession with the PPP over the past nine months. Why it is important for PPP borrowers to have two paths they can take in pursuing a second-draw PPP loan. More information about the CPA Business Funding Portal (see link in resources below). What CPAs can do to help businesses prepare for increased SBA scrutiny of PPP loans. The importance of helping businesses know their E-Tran number from their first PPP loan. Why firms will play a more important role in the second round of the PPP. The importance of keeping the intent of the PPP in mind when choosing the accounting method for calculating the decline in gross receipts to determine whether a business qualifies for a second-draw loan. Whether a business seeking second-draw PPP loans must spend all its first-draw PPP loan before the second-draw funds are disbursed. That some banks may require PPP borrowers to file for forgiveness on their first loan before processing a second-draw application.

In late 2020, Robert Half's Paul McDonald delved into the hiring outlook for 2021. The second part of that conversation addresses the ways organizations can keep those already on staff during COVID-19. McDonald, Robert Half's senior executive director, says the businesses that already had strong culture in place were better equipped to adapt to COVID-19. He offers advice for managers, details on their retention concerns, and insight into what employees are looking for beyond flexible work arrangements. What you'll learn from this episode: The reasons nearly 90% of senior managers are worried about losing talent. The steps companies and managers can take to show that they value employees. Why McDonald says company culture is more like an ocean liner than a speedboat. The types of nonfinancial benefits workers are seeking in the absence of raises. The steps employees can take to make themselves more marketable. McDonald's thoughts on what office work might look like in 2022.

As the year draws to a close, many clients are pursuing charitable giving. Mike Landsberg, CPA/PFS, partner at Homrich Berg in Atlanta, discusses what he's seeing in terms of charitable giving this year, how the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, has affected giving, and how clients can use giving to save on taxes while contributing to causes that matter to them. What you'll learn in this episode: Why 2020 is a good year to give to charity. (1:43) How the CARES Act has affected charitable giving. (2:47) Giving strategies clients can use to save on their taxes (5:03), even if they're not high-net-worth. (8:25) How to start talking about charitable giving with your clients. (8:59) One way to help clients specifically interested in COVID-19 relief. (11:11)