CPAs Connect with Leaders in Washington

In May CalCPA members joined other CPAs from across the country at Capitol Hill to meet with members of Congress . The Hill visits coincide with the AICPA ’ s Spring Council meeting and are part of an ongoing effort to address issues of critical importance to the CPA profession and advocate for legislative changes that benefit both CPAs and the American public .

One of the primary issues on the agenda is the Fiscal State of the Nation Resolution , which has received bipartisan support in previous sessions of Congress . The resolution calls for an annual joint hearing of the House and Senate Budget Committees to examine the federal government ’ s consolidated financial statements .

The hearing will feature testimony from the U . S . Comptroller General and provide insights into the nation ’ s fiscal health . CPAs are urging their representatives to co-sponsor this resolution , as it will offer vital clarity for Congress when making fiscal decisions .

To help strengthen the CPA pipeline , the profession is advocating for accounting to be recognized as a Science , Technology , Engineering , and Math ( STEM ) curriculum . The designation would recognize the ongoing evolution of the CPA profession as a technology-based profession that is working to analyze , develop and implement various technologies . STEM designation would enhance student engagement with the accounting profession and attract more students seeking accounting opportunities in the United States .

The Accounting STEM Pursuit Act in the House and the STEM Education in

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Accounting Act in the Senate would help bolster the argument that accounting is a STEM field by using STEM K-12 grant funding to be used for accounting awareness and education .

CPAs are also pushing for the introduction of legislation aimed at simplifying and streamlining the process of filing federal tax extensions .

The current rules necessitate timeconsuming calculations during tax season , leading to additional work for tax advisers and individuals preparing their own returns . The proposed bill , the Simplify Automatic Filing Extensions ( SAFE ) Act , would allow taxpayers to calculate and rely on a safe harbor of 125 percent of the prior year tax to be paid in by the original due date to avoid penalties . This would reduce burdens on practitioners and individuals preparing their own returns , minimize the processing of penalties by the IRS and simplify the work surrounding the filing of federal tax extensions .

Furthermore , CPAs are supporting H . R . 1477 , the Freedom to Invest in Tomorrow ’ s Workforce Act , which seeks to expand the uses of 529 plan funds . The proposed legislation would allow students and their families to utilize 529 plan funds for fees and expenses related to professional credentials and certifications , including the CPA Exam and licensure . This expansion would provide greater flexibility and financial support to individuals pursuing careers in the accounting profession .

CalCPA and the AICPA have been at the forefront of advocating for these critical issues . The profession ’ s engagement has helped raise awareness and demonstrate a commitment to upholding the integrity and effectiveness of the accounting profession . By engaging with lawmakers , CPAs are working toward a stronger profession that serves the public interest and contributes to the nation ’ s economic growth .

NASBA Approves Expanded CPA Exam Testing Window The National Association of State Boards of Accountancy ( NASBA ) approved amendments to the Uniform Accountancy

Act ’ s Model Rules to increase the time frame for a candidate to pass all parts of the Uniform CPA Exam from the current 18-month window to a 30-month window .

While changes approved by NASBA have no immediate effect on state board rules , most state boards of accountancy , including the California Board of Accountancy , are expected to consider changes to their respective state rules to align with the model rules and the longer testing window .

The extension comes after NASBA solicited public comments on a proposal that originally suggested a 24-month testing window . After reviewing more than 850 comments and stakeholder input , NASBA elected to approve a 30-month testing window – one year longer than the current one — to allow candidates more flexibility as they work through the exam process .

CalCPA and many CalCPA members submitted comments to NASBA advocating for a 36-month testing window . While the approved changes are short of what CalCPA and many in the profession had suggested , the additional year to the testing window will positively impact many CPA candidates by providing more flexibility for candidates as they balance personal and professional obligations with their career aspirations .

CalCPA will work closely with the California Board of Accountancy to consider the necessary changes to adopt the model rules and the longer testing window in California . As new rules develop , CalCPA will provide members with updates .

Thank you to the members who joined CalCPA in advocating for a change that addresses the pipeline pressures facing the CPA profession . The timely advancement of favorable policy changes like this is the product of CalCPA ’ s robust advocacy program , strong relationship with key policy leaders across the state and the engaged members that lend their voices to support their profession .

Jason Fox is CalCPA ’ s vice president of government relations . You can reach him at jason . fox @ calcpa . org . www . calcpa . org