Capitol Corner



We had a very successful 2019 legislative session, defeating a sales tax on accounting and tax services proposal, stopping an increase to the CPA license fee, and addressing a number of other troublesome bills. Thank you all for playing an active role in our advocacy efforts. It would not have been possible without the help of all of you who heard our calls to action and emailed legislators, submitted testimony, donated to our digital advertising efforts, and more. Thank you!

Read the 2019 Connecticut Legislative Session Wrap-Up (pdf). 

View the complete text of Public Act 19-186 and Public Act 19-117. 

         

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We've got our eye on happenings at the Capitol! If 
state or federal legislation or accounting standards activity will affect you, your company, or your clients, we'll keep you updated here.

State News

Revenues Remain Steady, But Deficit Will Increase
Connecticut’s revenues are doing better than lawmakers and Gov. Ned Lamont predicted just a few months ago. According to the legislature’s nonpartisan Office of Fiscal Analysis and the Office of Policy and Management, revenues remain largely unchanged relative to what was reported in November 2019.
Fasano Says Democrats Don’t Have Votes For Truck-Only Toll Plan
Senate Republican Leader Len Fasano made his way to the state Capitol press room Monday to announce the lack of a consensus on a transportation plan that includes truck-only tolls. “They need to stop pretending they can pull a deal off because they can’t,” Fasano said.
CT Voices proposes major state tax shift to reverse inequality
A leading child advocacy group challenged state leaders Wednesday to reverse escalating income and wealth inequality and provide tax relief for up to 90% of Connecticut by shifting tax burdens onto the state’s millionaires. Connecticut Voices for Children, which unveiled its program at the Capitol during its 19th annual state budget forum, put itself at odds with Gov. Ned Lamont, who blocked an income tax surcharge last spring on the investment earnings of wealthy households.
Boston Fed Chair Gives Optimistic Outlook For 2020, With Little Risk
The economic outlook for 2020 is pretty rosy, according to Federal Reserve Bank of Boston President and CEO Eric Rosengren. “You don’t normally invite an economist onto the program to be the optimist in the group, but actually the economy is doing quite well,” Rosengren told the over 400 people who attended the Connecticut Business and Industry Association’s “Economic Summit + Outlook 2020.”
Lamont, Lawmakers Quizzed By Public On Transportation Plan
Around 400 Connecticut residents turned out to offer their opinions to Gov. Ned Lamont and Democratic lawmakers about a proposal to improve transportation with a plan that is funded partly with truck-only tolls. Lamont said that over the past year he’s heard from business owners who tell him the reason Connecticut has been last in job creation over the past decade is the transportation system. “Our rail is slower today than it was 10 years ago and 30 years ago,” Lamont said. “You all...

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Accounting Standards and Regulations

IRS crypto guidance every tax practitioner should know
The IRS is getting serious about cryptocurrency. This fall, it released three documents that all tax practitioners need to pay attention to ahead of the 2019 filing season: a retroactive revenue ruling, FAQs for reporting cryptocurrency ownership...
Adaptive learning self-study enabled in new CPE provider rules
Rules for continuing professional education providers for CPAs have been changed to accommodate adaptive learning self-study programs and address other issues. The National Association of State Boards of Accountancy (NASBA) and the AICPA...
What’s next for potential CPA licensure changes
A new model proposed by the National Association of State Boards of Accountancy (NASBA) and the AICPA is designed with an eye on the future for newly licensed CPAs. Carl Mayes, CPA, AICPA associate director–CPA Quality & Evolution, provides...
FASB Issues Narrow-Scope Improvements to Credit Losses Standard
The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that addresses issues raised by stakeholders during the implementation of Accounting Standards Update No. 2016-13, Financial Instruments—Credit...
FASB Delays Certain Effective Dates for Credit Losses, Leases, Hedging, and Long-Duration Insurance Standards
The Financial Accounting Standards Board (FASB) today issued two Accounting Standards Updates (ASUs) that finalize various effective date delays for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance...

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Federal News

IRS crypto guidance every tax practitioner should know
The IRS is getting serious about cryptocurrency. This fall, it released three documents that all tax practitioners need to pay attention to ahead of the 2019 filing season: a retroactive revenue ruling, FAQs for reporting cryptocurrency ownership and Form 1040 that asks taxpayers about their financial interest in virtual currency.
Forbes: CT 43rd for biz climate
Connecticut is starting out the new year with a dour assessment of its business climate and appeal to large-scale employers. Forbes’s annual “Best States for Business” list, which takes into account factors such as labor costs, population growth, and quality of life, placed Connecticut at No. 43 in the nation for 2019.
IRS Reforms Free File Program, Drops Agreement Not to Compete With TurboTax
Finding free online tax filing should be easier this year for millions of Americans. The IRS announced significant changes Monday to its deal with the tax prep software industry. Now companies are barred from hiding their free products from search engines such as Google, and a years-old prohibition on the IRS creating its own online filing system has been scrapped.
Qualified opportunity zone regs. finalized
The IRS on Thursday issued final regulations (T.D. 9889) providing guidance on tax-favored investments in qualified opportunity zones (QOZs). These regulations provide additional guidance for taxpayers eligible to elect to temporarily defer the inclusion in gross income of certain gains if corresponding amounts are invested in certain equity interests in qualified opportunity funds (QOFs), as well as guidance on the ability of such taxpayers to exclude from gross income additional gain...
Year-end government spending bill contains many tax provisions
The federal government spending bill passed by Congress on Thursday repeals three health care taxes that were originally enacted as part of 2010 health care reform legislation, makes many changes to retirement plan rules, extends several expired tax provisions, provides disaster tax relief, and repeals the provision that taxed exempt organizations when they provided parking to their employees. The Further Consolidated Appropriations Act, 2020, H.R. 1865, passed the House of Representatives...

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