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

Lamont Abandons Hope for Truck-Only Tolls
Gov. Ned Lamont has given up hope that the Democrat-controlled General Assembly has the guts to vote on a truck-only tolling plan. After meeting with legislative leaders for 45-minutes Wednesday, Lamont invited reporters into his office to explain that he’s decided to borrow the $200 million that he previously planned to get in truck-only toll revenue.
Lamont pledges to release stalled town aid, regardless of whether tolls are approved
Gov. Ned Lamont pledged Wednesday to support borrowing for overdue municipal aid — even if legislators reject his transportation initiative and the truck tolls that would come with it. Lamont made his pledge following a mid-day appearance before the Connecticut Council of Small Towns. The coalition, which represents 115 municipalities with populations less than 35,000, featured Lamont as keynote speaker at its annual town meeting.
Pew: CT leads most states in ensuring good return on business incentives
Between grants, low-interest loans and tax breaks, Connecticut provides hundreds of millions of dollars annually in incentives to help businesses survive — and sometimes to expand — in a high-cost state. And while these incentives remain a perpetual source of debate, a national think-tank says Connecticut at least does better than most other states at ensuring it gets a good return on its investments.
Truck-Only Toll Vote Still In Limbo
The Connecticut General Assembly could vote as early as Thursday on a 10-year, $19.1 billion transportation plan that calls for 12 truck-only toll gantries. However, it’s still unclear which chamber would take up the emergency certified bill first. Neither the House nor the Senate Democratic caucus wants to make members vote on a bill if it’s not going to pass the other chamber.
Four years after FEMA funding rejections, homeowners with crumbling foundations ask for state to again seek help from federal agency
Nearly four years after the Federal Emergency Management Agency denied multiple requests from then-Gov. Dannel P. Malloy for funds to help the crumbling foundations crisis, homeowners and officials intimately involved in the issue are calling on the state to approach the agency again for assistance. “Both times we wrote to FEMA we didn’t have enough complaints,” said Debbie MacCoy, who owns a condo with a failing foundation. “We didn’t hit the criteria of magnitude, knowing the...

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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

Adding a sub back to 2021 budget a ‘heavy lift’ for CT lawmakers
Democrats and Republicans in Congress both agree that President Donald Trump’s proposed cuts to social and health programs are dead on arrival, but his plan to cut a submarine built by Electric Boat is very real. The steep cuts in domestic spending proposed by Trump in his 2021 budget have been dismissed in Congress because the president agreed to increase domestic spending in a two-year budget deal he signed in August that also increased defense spending. Senate Majority Leader Mitch...
Churches, nonprofits win repeal of federal tax
While Democrats have repealed much of the GOP’s tax overhaul, there have been some tweaks, including the elimination of a tax levied on churches, universities and other nonprofits. Reps. Joe Courtney, D-2nd District, and John Larson, D-1st District, who is a member of the tax-writing Ways and Means Committee, backed efforts to repeal a 21% levy in the massive 2017 Tax Cuts and Jobs Act imposed on parking and transportation benefits provided to employees of churches and other nonprofits.
FASB Announces New Appointments
Richard R. Jones, CPA, has been selected by the Board of Trustees of the Financial Accounting Foundation to succeed Russ Golden as Financial Accounting Standards Board Chairman on July 1, 2020. Mr. Jones is chief accountant and partner of Ernst & Young LLP, having spent over 30 years with the firm. He has also served on the Financial Accounting Standards Advisory Council 2016-2018 and the AICPA’s Accounting Standards Executive Committee 2003-2008. Mr. Jones will be joining the FASB early in...
How the TCJA Affected Deductions for Hobbies
It’s more than just semantics when it comes to the difference between a “business” and a “hobby.” While you can deduct ordinary and necessary business expenses—and even a loss—you currently get zero tax benefit from hobby expenses. Therefore, as shown in a new case involving a “cutting horse” operation (Besten, TC Memo 2019-154, 11/25/19), the stakes are often high. Be aware that this case was decided under the law in effect prior to the Tax Cuts and Jobs Act (TCJA). Previously, when...
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.

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