Journal of Accountancy Podcast

Alistair Nevius, J.D., the JofA’s editor-in-chief, tax, explains the differences between IRS announcements on March 17 and March 29 regarding the postponement of 1040 tax filing and payments from April 15 to May 17. He highlights what’s changed, what hasn’t, and one question regarding how the IRS will handle estimated tax payments on a 2020 return filed after April 15. Also, to prepare for the opening of the U.S. Small Business Administration’s Shuttered Venue Operators Grant program, hear advice from Kristy Illuzzi, CPA, CGMA, a senior technical manager and staff liaison to the AICPA Private Companies Practice Section’s Technical Issues Committee.

Some individual taxpayers still have forms to complete and payments to make by April 15. That’s one reason the AICPA believes that the IRS extension from April 15 to May 17 didn’t go far enough. Ed Karl, CPA, CGMA, the AICPA’s vice president–Tax Policy & Advocacy, explains the reasons that the AICPA believes more relief should be given and why a June 15 date is more appropriate. The episode also mentions the schedule of upcoming AICPA conferences, tips for using LinkedIn, and other news.

When it comes to applications for Paycheck Protection Program loans or PPP loan forgiveness, a one-size-fits-all approach to assisting clients won’t work. Some clients will need more help than others, and there are ethical implications for how CPAs provide that assistance. Iryna Klepcha, CPA, and Toni Lee-Andrews, CPA/PFS, CGMA, of the AICPA’s Professional Ethics Division discuss some of the ethical questions that have surfaced as CPAs are assisting clients with PPP loan and forgiveness applications. Their guest is Kelly Hunter, CPA, shareholder at FRK & Co. and a member of the AICPA’s Professional Ethics Executive Committee (PEEC). What you’ll learn from this episode: Why AICPA guidance has changed since PPP applications were first available. How firms can maintain independence when assisting with preparation of documents for nonattest clients. Details on scenarios CPAs could face when clients ask them for assistance with PPP loan forgiveness applications. More from Hunter on his advice: “Don’t impair independence if you don’t have to.” Some of the questions coming into the AICPA’s Professional Ethics Division hotline.

Risk management has always been important, and it came to the forefront for many organizations in 2020. A new risk heat map tool from the Association of International Certified Professional Accountants can help measure and manage risks. Lori Sexton, CPA, CGMA, a senior technical manager for management accounting, explains some of the features of the tool and how those features can expand an organization’s risk management function. What you’ll learn from this episode: Explanation of a heat map’s role in effective enterprise risk management. More on the risk heat map tool’s addition of a qualitative aspect for evaluating risk. Why simple awareness of a risk is not enough to manage it well. Highlights of the JofA’s coverage of the Paycheck Protection Program and a change in the filing deadline for individual income taxes.

“With women in particular, small moments matter.” Those are the words of Lara Abrash, CPA, chair and CEO of Deloitte & Touche LLP, about how seemingly inconsequential decisions can have a big effect on how women advance in the workplace. Hear more of Abrash’s thoughts on promoting diversity and on why the time was right for Deloitte to publish a new report on its workforce composition. What you’ll learn from this episode: The career advice Abrash received from her mother. Abrash’s advice for how employers can better support women. Why Deloitte decided to release its inaugural Diversity, Equity, and Inclusion Transparency Report. Why the AICPA is pushing for extensions to the Paycheck Protection Program application deadline and the individual tax filing date. The tax-related questions CPAs and their clients may have regarding certain 2020 unemployment benefits.

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.