“Illusions commend themselves to us because they save us pain and allow us to enjoy pleasure instead.”  Sigmund Freud

If there’s one thing I’ve learned in the 37 years of working at the AICPA, it’s that you don’t want to mess with tax filing season. Sure, tax season is never “easy” and spreading the work over a longer period is important. But most CPAs just want to get it over with. I was in practice before I came to the AICPA and I can still empathize with these sentiments all these years later.

Minimizing tax filing season disruptions and changes is important to the IRS, too. Sure, there have been a few snafus over the years. But, by and large, the IRS manages massive amounts of data well and it does us proud in administering a system with 156 million individual returns and 112 million refunds amounting to $321 billion. The average refund is about $3,000. April 15 is prominent in the IRS’ psyche because it’s prominent in the psyche of the American public.

The focus on April 15 as Tax Day changed, at least for this year. Surviving a pandemic was for history book reading or maybe a scary movie. But now it seems to consume us every day. I’m proud of the AICPA for all that we have done, and continue to do, to support our members, the business community and government. Much information is available, for example, in our AICPA Coronavirus (COVID-19) Resource Center, our SBA Paycheck Protection Program resources for CPAs, and in our Coronavirus (COVID-19) tax resources.

Before I go back in time, I want to thank Treasury and the IRS for providing the broad relief that we advocated for and taxpayers and their advisers needed. On April 9, the IRS released Notice 2020-23. Taken together with Rev. Proc. 2018-58 — listing “time-sensitive” actions that are postponed — and FAQs relating to payroll taxes, the IRS has filled most of the blanks of the accommodations necessary for the pandemic emergency.

My wheelhouse is tax policy and advocacy. Around the first of March, my team started thinking ahead to March 15 and April 15. Was there a COVID-19 stumbling block? How could we avoid that stumbling block? Then the calls and emails from across the profession started coming, especially from CPAs in California, Washington state and New York — the areas hit early and hardest by COVID-19. They weren’t the usual CPA messages; they were messages enveloped in pain and anxiety. Clients, staff and families were getting sick. Everyone was working at home — not always effectively — and schools started to close. It became clear that the next several months — tax filing season — would be like none we’ve experienced. We fought off Freud’s “illusions” and took what we knew would be a tough road for some members and the IRS. Tax filing and payments would need broad relief well beyond April 15.

The AICPA advocated for relief in every way possible. Many of our members, state CPA societies and those on Capitol Hill helped us. We thank them for their leadership and commitment to clients of all stripes. In particular, we appreciate the efforts of Sen. John Thune (R-SD), who introduced a bill to help get us on the road to obtaining broad relief.

As filing season has progressed, the IRS has appropriately, but significantly, curtailed much of its operations for the health and safety of its employees and taxpayers. This makes it impractical, if not impossible, for taxpayers and their advisers to continue business as usual. This was a significant reason for our strong advocacy efforts. (You can follow all of our advocacy initiatives in our Coronavirus (COVID-19) tax advocacy resources page.)

While we appreciate the broad relief the IRS provided, we continue to urge Treasury and the IRS to develop a contingency plan for the next relief phase, should that be needed. We cannot wait until a few days before July 15 for the IRS to release that plan. The entire tax community deserves and needs early notification. Other issues are drawing our immediate attention, such as (1) making sure the payroll tax FAQs are updated; (2) having the IRS clarify the services that are open — and not just the ones that are closed; (3) pushing for an early re-opening of the practitioner priority services line when it’s safe to do so; and (4) advocating for expanded e-signature availability.

Given the unprecedented COVID-19 spread, as a country, we should not risk anyone’s life to meet tax filing obligations, including IRS personnel. Freud also said, “Out of your vulnerabilities will come your strength.” We hope that, out of all the challenges we struggle with today will come a better, more agile and workable tax system in the future. Stay healthy and safe.

Edward S. Karl, CPA, CGMA, Vice President of Taxation, American Institute of CPAs

     

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COVID-19 has altered how businesses, governments and agencies operate around the world. The Internal Revenue Service (IRS) is no different. The IRS recently announced it has scaled back some of its operations.

To protect employees and taxpayers, agents are now working remotely and only holding teleconferences. Scheduled meetings are still likely to take place on their scheduled date virtually, and agents are requesting teleconferences with taxpayers to work their cases.

Scaled-back operations and staff working remotely doesn’t mean the IRS is unavailable to you.

Contacting the IRS

Proposed regulations hearings are being teleconferenced. Send an email to publichearings@irs.gov to receive the telephone number and access code for specific hearings. And as usual, comments can be submitted by e-mail to the address noted in the proposed rulemaking.

Tax practitioners with e-Services accounts and with client authorization can still access the Transcript Delivery System (TDS) to obtain prior-year transcripts. Check out the AICPA Tax Section’s Using IRS E-Services for tips and tricks for using the tool.

In an exam, ready yourself for multiple teleconferences rather than the usual in-person meeting.

More tips:

• gov remains the best source for tax law questions, checks on refund status and tax payments.
• Although IRS phone lines supported by customer service representatives for both taxpayers and tax professionals are not staffed at this time, automated phone lines, which handle most taxpayer calls, remain available. Some tax compliance lines also remain available. To check on regular tax refund status via automated phone, call 800-829-1954.
• Reach out to your local Taxpayer Advocate Service for time-sensitive issues, including if a levy situation creates a financial hardship. There may be a message indicating that they will contact you within 24 hours of receiving your voicemail.
• Send a fax. May sound archaic, but faxes are still a good bet.

Representing your clients

Encourage your clients to use the Where’s My Refund? and Get Transcript services to pull information regarding these items. Clients entitled to a refund and that planned to file paper returns can be encouraged to e-file. Taxpayers also can make tax payments through Direct Pay. The IRS has stated that in “mid-April” taxpayers will be able to check the payment status of their economic impact payments through the Get Your Payment portal. All IRS updates on the economic impact payments and other COVID-19-related issues also will be posted immediately on the Coronavirus Tax Relief and Economic Impact Payments website.

For any notices that you receive offering appeal rights (e.g., rejected offers in compromise, innocent spouse request denial, request to remove a penalty), file the timely protest by certified mail, by mail and by fax to the office that issued the notice or the instructions on the notice. There may not be a person around to accept the certified mail, but by keeping the certified number you can trace the mailing process. Note that the IRS Independent Office of Appeals continues to work its cases and assigned appeals officers can be contacted by phone.

For pending offers in compromise (OIC) applications, the IRS will allow taxpayers until July 15^th to provide requested additional information to support a pending OIC, and the IRS will not close any pending OIC request before July 15^th without the taxpayer’s consent.

Regarding OIC payments, taxpayers may suspend payments on accepted OICs until July 15^th. By law, interest will continue to accrue on the unpaid balance.

The IRS will not default an OIC for those taxpayers who are delinquent in filing their tax return for tax year 2018. However, taxpayers should file any delinquent 2018 return (and their 2019 return or extension) on or before July 15^th.

For taxpayers under an existing installment agreement, payments due between April 1^st and July 15^th are suspended. Taxpayers who are currently unable to comply with the terms of an installment agreement, including a direct debit installment agreement, may suspend payments during this period. The IRS will not default any installment agreements during this period. By law, interest will continue to accrue on the unpaid balance.

Request an installment agreement — online or through the mail — with the revenue officer assigned to the case. When requesting installment agreements by mail, remember to include items such as: a list of all periods that are outstanding; the type of tax; the due date of payment requested; and the dollar amount of the payment in the letter. Send the letter by certified mail and regular mail. Ask the taxpayer if he or she would like to send monthly payments to the IRS until he or she (or you) are contacted. Send a cover letter with each payment requesting the installment agreement and include the above stated items.

IRS has suspended new certifications to the Department of State for taxpayers who are “seriously delinquent”, which would have prevented taxpayers from receiving or renewing passports. These taxpayers are encouraged to submit a request for an installment agreement or, if applicable, an OIC during this period.

Taxpayers have until July 15^th to respond to the IRS to verify that they qualify for the Earned Income Tax Credit or to verify their income. The IRS will not deny these credits for a failure to provide requested information until after July 15^th.

Remind your clients to remain current with tax filings and any remaining estimated tax payments and/or employment taxes.

Also, starting on April 17^th and until further notice, the IRS will accept eligible refund claims Form 1139 submitted via fax to 844-249-6236 and eligible refund claims Form 1045 submitted via fax to 844-249-6237. Forms that were mailed after March 27^th may be re-faxed as well. The IRS has released FAQs on this topic.

IRS operations that have been reduced or suspended

• Paper correspondence is limited. U.S. Tax Court mail is to be held for delivery until the U.S. Tax Court reopens.
• Call centers and the Practitioner Priority Service, a special phone line for tax practitioners, is closed.
• These help-desk lines are also suspended until further notice: e-Services; Filing Information Returns Electronically (FIRE); the Affordable Care Act Information Return (AIR).
• New Income Verification Express Services (IVES) requests are not being accepted.
• Central Authorization File (CAF) number authorizations are suspended.
• Opened new examinations that were not begun in earnest are likely on hold until July 15^th.
• No new examinations are to be opened until after July 15^th, provided the statute of limitations does not expire in 2020.
• Information document requests (IDRs) may be issued and adjustments may still be proposed, however, IDR enforcement procedures have been suspended through July 15^th.
• Fast Track mediation, which is typically 120 days, is likely not available.
• Most collection activities through the Small Business and Self-Employed Tax Center are suspended through July 15^th unless there is a risk of permanent loss to the government due to the expiration of a statute or other exigent circumstance, or the taxpayer has agreed to an action.
• In general, certain levies and collection notices are suspended until further notice, such as the Federal Payment Levy Program.

• The 90-day deadline to file a Tax Court petition, after receiving a notice of deficiency, is extended to July 15^th.

• The Philadelphia Accounts Management Campus is currently closed. Thus, the processing of U.S residency certifications is temporarily suspended.

Even during a global pandemic, you have the right to contact the IRS. And even though the IRS has temporarily scaled back many of its normal channels of communication, they still offer essential services.

These tips will help you navigate and remain the best advocate for your clients.

Sarah Shannonhouse, CPA, Manager — Tax, Practice and Ethics, Association of International Certified Professional Accountants Sarah would like to thank Dan Wise, CPA, Head of Tax Risk at CohnReznick and Larry Wolfe, CPA, owner of Larry J. Wolfe Ltd. for their suggestions for this blog post.

     

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The coronavirus (COVID-19) pandemic has created different day-to-day challenges than a few weeks ago. Just last month, you were probably discussing business expansion or future growth opportunities with clients and now you’re talking about how to stay afloat during uncertain times.

Practically overnight, your clients’ needs have changed completely. Some of your client questions might even go beyond what you have been accustomed to addressing.

Here are some ways to help center your client communications to focus all parties on building a brighter and stable future.

1. Reassure clients.

Tell clients how you plan to operate through the disruptions and what measures are in place to prevent community coronavirus spread. Employing a dedicated webpage, posting alerts on social media channels, sending emails or calling clients are good methods to reach clients quickly and stay connected with them.

For some pointers on how to get started, use these client communication tools:

• Client letter for individual clients
• Client letter for business clients
• Tax snapshot for clients

Next, be proactive and anticipate what your clients need to know. Consider hosting a webinar to showcase your expertise and value.

2. Explain what the extended deadlines really mean to each client.

Recently, the IRS extended the April 15 filing and payment deadline to July 15. Yesterday, the IRS expanded its relief to additional returns and tax payments in Notice 2020-23, but many clients may not understand what this means for their situation. Give your clients an update on your plans for filing season. Debrief them on how to send information to you and your expected timeline.

3. Provide insights on stimulus payments.

Economic stimulus payments, also known as recovery rebates, are expected to be issued in mid-April. Use this stimulus calculator to help your clients calculate their recovery rebate and talk to them about the timing of rebates and what they should expect.

Even though the tax deadlines were extended, it will benefit many clients to file their 2019 returns as soon as possible, especially if they are due a tax refund. Keep in mind that the IRS will use a taxpayer’s 2019 return to calculate their stimulus payment. In the absence of a 2019 return, the IRS will use the taxpayer’s 2018 return to calculate the stimulus payment. Consider if the 2018 return would yield a higher stimulus payment (e.g., income was lower in 2018). If so, it may be beneficial to hold filing the 2019 return to get the most stimulus payment sooner.

If your clients have direct deposit set up on their tax forms, they will get their payments sooner. For those who don’t have direct deposit information on file with the IRS or who file by mail, the Treasury Department plans to set up a web-based portal for people to provide their banking information. If no direct deposit information is on file, the IRS will mail a check to the taxpayer.

4. Prep clients on cybersecurity concerns.

Recently, the IRS warned taxpayers that coronavirus-related scams were increasing. Educate your clients on these issues:

• The IRS will not ask taxpayers to give personal or financial information over the phone or email to help accelerate the payment of a stimulus payment.
• Be skeptical of text messages or website and social media requests for money or personal information.
• If a taxpayer needs to use the IRS online portal to get a stimulus payment, do not provide direct deposit information or other banking information to others.

5. Help small business clients navigate federal relief programs.

Your small business clients who have been economically affected by COVID-19 can get help through the Small Business Administration (SBA). The following are possible options for your small business clients:

• Paycheck Protection Program (PPP)
• Economic Injury Disaster Loan (EIDL) and Emergency Economic Injury Grants
• Small Business Debt Relief Program

Use this SBA loan snapshot to help your clients understand the various options available to them.

6. Work with the IRS effectively.

You’re still the best advocate for your clients through all this and you must be able to contact the IRS. Recently, the IRS announced it was scaling back some of its operations to focus on “mission-critical activities.” Some of these include temporarily closing the Practitioner Priority Service line and suspending the e-Services Help Desk line, FIRE (Filing Information Returns Electronically) and AIR (the Affordable Care Act Information Return) system help desks.

Given this, what are the best ways for you to contact the IRS? Try these:

• Tax practitioners with e-Services accounts and client authorization can still access the Transcript Delivery System (TDS) to get prior-year transcripts. The AICPA Tax Section’s Using IRS E-Services page features tips and tricks for using the tool.
• Encourage your clients to still use the Where’s My Refund? and Get Transcript services to pull information regarding these items.
• Contact your local taxpayer advocate, especially if a levy situation creates hardship. There may be a message indicating that they will contact you in 24 hours if you leave a voicemail.
• The IRS can still receive mail, although responses will probably be delayed.

Client communication is critical.

Not only are you considered your clients’ trusted financial adviser but being a supportive counselor has taken center stage. Your clients look to you to provide comfort in this crucial period. Fortunately, there are steps you can take in the short term that will provide lasting benefits for better client relationships.

For more resources on how to deal with the impacts of the coronavirus, go to the AICPA Coronavirus (COVID-19) Resource Center and the AICPA Tax Section’s coronavirus tax resources.

Minh Graham, CPA, Lead Manager — Tax Practice & Ethics, Association of International Certified Professional Accountants

     

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As companies struggle with the economic uncertainty caused by the COVID-19 pandemic, small businesses — the backbone of the economy — have the power to pave a path toward economic recovery. They can do that, in part, by keeping their staff employed or by rehiring them if already laid off or furloughed.

New legislation has given them the power to do that.

CPAs can reap many benefits for helping clients apply for newly available loans under the Paycheck Protection Program (PPP), a joint effort by the Department of the Treasury and the U.S. Small Business Administration to provide small businesses with $349 billion in forgivable loans for keeping or rehiring employees and to cover certain other expenses.

Here’s why CPAs helping clients understand and take advantage of the PPP is in everyone’s — and notably in their — best interest.

Getting back up to speed

Without healthy workers who have remained on sound financial footing, it will be more difficult for the economy to rebound once the coronavirus crisis is over. Clients who keep or rehire employees will benefit for many reasons:

• It will be easier for businesses whose profits have dwindled or been cut off completely to get up and running quickly if their experienced people are ready and able to get back to work as soon as they’re needed.
• Companies will avoid the unnecessary expense of finding and training new people at a time when profits are still slowly returning to past levels.
• New employees will lack familiarity with company practices and procedures, which can hinder efficiency and productivity. Perhaps more importantly, they will not have the same customer relationships that the business has built over time.
• Owners of essential businesses who don’t need to be fully staffed can redirect employees to other tasks, including analyzing opportunities for greater efficiency or new business. They are likely to be highly motivated to contribute during a crisis and to gain new experiences.

Considering cash flow

Since cash flow is a top concern for clients right now, CPAs can explain how the new program can reinstitute strong cash flow sooner once they are back in business:  

• The compensation received through the program is paid by tax-free money and is tax deductible.
• It is possible that participating in the program will create a net operating loss that can be carried back up to three years, to a time when the business was profitable. That allows the client to recapture tax dollars and propel them back into the business.
• With employees ready to work as soon as restrictions are lifted, the company will be well positioned to begin earning immediately.

Benefiting all

CPAs help clients implement smart business decisions every day — making sure they benefit from the opportunities available to them is part of that tradition.

You can apply for your own PPP loans to maintain staff. If your business has slowed due to client shutdowns, you can put your staff to work assisting clients who are applying for loans. Your PPP loan will front payroll costs without having to charge your clients. And in some cases, you will be the recognized agent, eligible for the SBA agent fee paid by the lender.

Helping clients with PPP loans is very much in your firms’ interest. Ensuring that clients can make a smooth transition back to full service once the crisis is over will help them stay in business and will strengthen your firms’ future viability. It will solidify your role as their trusted adviser and enhance client loyalty. Additionally, your relationship with local banks will be enhanced as you help clients navigate the application process.

The mental health benefits for all of us cannot be overstated. Employees — of our clients’ businesses and our firms — will find it easier to handle the isolation of staying home if they are being paid and being productive. And we’ll all have a better chance of returning to normal if the disruptions we are facing are minimized as much as possible.

The Paycheck Protection Program can be used to limit those disruptions, and CPAs can help clients make the program successful.

For more help during the pandemic, turn to the AICPA’s Paycheck Protection Program resources page and the AICPA Coronavirus (COVID-19) Resource Center.

 Carl Peterson, CPA, CGMA, Vice President – Small Firm Interests, Association of International Certified Professional Accountants

     

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The coronavirus (COVID-19) pandemic has made an impact worldwide like generations of us have never seen. From how we buy groceries, the ways we socialize, school our children and work, our current normal is often virtual.

Suddenly, you’re working from home in your sweatpants (admit it) and holding meetings via videoconferencing. You might feel uncomfortable with the technology you’re now forced to use. The good news is you’re learning on the job. When life gets back to normal, many of you will have picked up a new technology skill or two that you’ll continue to use for work or even in your personal life.

Getting comfortable with new technology positions you to adopt another important skill: virtual learning. Here are three reasons to embrace virtual learning:

1. You can learn at your convenience.

Through the power of mobile devices and the internet, you can learn when, where and how you want. Have ten minutes to learn about cybersecurity while dinner is in the oven? No problem — there’s a webcast for that. Miss our COVID-19 business continuity best practices webcast and want to know what was said? We have you covered. You also can listen to a podcast during your daily walk or run.

Speaking of podcasts, the Association of International Certified Professional Accountants®, the global voice of the AICPA® and CIMA®, offers several resources to keep you updated on all things finance and accounting. Here are a few you should check out:

• Go Beyond Disruption, a free podcast developed for public and management accountants
• Journal of Accountancy, a free podcast created to talk about key issues the accounting profession faces
• Small Firm Philosophy, a free podcast that shares big ideas about small firms
• FM magazine, a source for management accounting news, in-depth analysis of key business issues and best practices finance professionals should know about

 2. You can learn at your own pace.

The beauty of virtual learning is that it allows you to digest chunks of information at your speed. Science has shown that people learn better when information is given to them in multiple segments. You can still work toward that certificate program that takes hours to complete. But walk away after an allotted amount of time and come back later. The exact break time needed varies by person, so know the limits of your attention span and do what’s best for you.

Because our on-demand society wants everything fast, quick learning opportunities are easy to find. Pick a few blogs,  like this one, and bookmark them to constantly learn and keep up with the accounting and finance profession.

Also, our AICPA Coronavirus Resource Center offers a library of quick-learning content to keep you up to date on the latest COVID-19 news, including articles, videos and podcasts.

3. You can attend a conference when you can’t travel.

Virtual learning allows you to participate in conferences when traveling isn’t possible. For more than 10 years, the AICPA has offered virtual attendance at many of our conferences, giving you the flexibility to learn at the office, the local coffee shop or at home.

Our largest event of the year for accounting and finance professionals, ENGAGE, normally offers on-site and online attendance. Because of COVID-19, ENGAGE 2020 will only be online this year. The event offers some of the same on-site ambiance and liveliness to the online experience, as well as timely, relevant content that provides CPE credit.

And, finally, a few quick tips for your virtual learning journey:

• Start small. If you’ve never done virtual learning before, don’t make your first attempt an hours-long certificate program. Try a 5–10 minute video, a podcast or even a one-hour webinar.
• Take a few minutes to reflect when you’re done learning. Ask yourself what you can apply to your job now and what can wait until later.
• Find your ideal time to learn. It varies for each person. But most will agree that learning is best when your brain is focused, not when you’re on deadline or the children are running around you.
• Get comfy. Find your favorite chair, perhaps near a window for some natural light, and open your mind to the possibilities of what you can learn.
• Make it happen. Wake up with determination. Put your learning in your calendar just like you would a meeting.

While COVID-19 has changed the way we work, you’re probably surprised at what you can do without leaving home, including continuing to learn.

Michael McKenzie Grant, MFA, Director, Learning Design and Development , Association of International Certified Professional Accountants

     

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We’re all doing our part to slow the spread of coronavirus, and it’s easy to feel discouraged by the many changes we’ve had to absorb over a short period of time. To make lemonade out of lemons, why not take this 14-day challenge?

The 14-day challenge invites you to expand your knowledge each day with tools and resources designed to help you face complications that the global pandemic has presented.

Day 1: This client letter regarding the coronavirus is helpful communication to let your clients know about resources and the impact of the coronavirus to your practice.

Day 2: This podcast presents proactive income tax planning techniques that work well in a volatile market, reinforcing your value and reassuring your clients that you have their best interest at heart.

Day 3: Working remotely has become the new normal and many leaders wonder how best to support their teams and encourage productivity. This blog offers tips for effectively managing remote teams.

Day 4: A slope of enlightenment and a plateau of productivity is anticipated with blockchain. This podcast discusses aspects of blockchain that you need to know, and aspects you can ignore. 

Day 5: In this Vimeo, Marty Shenkman, CPA, MBA, discusses estate tax planning for the coronavirus.

Day 6: The Federal Reserve cut interest rates to near-zero on March 15^th.  This blog highlights opportunities for Americans to shore up their personal finances in light of this announcement by discussing what near-zero interest rates mean for your wallet.

Day 7: Educate yourself and your clients with flyer on the tax and financial impacts resulting from the coronavirus pandemic.

Day 8: In this podcast, Susan Tillery and Dave Stolz share how they find calm amid the chaos by putting their clients first, reinforcing the value of the CPA financial planner.

Day 9: The auditor reporting standard, effective for periods ending on or after December 15, 2020, was designed to enhance the relevance and transparency of the auditor’s report. This blog simplifies the updates with 5 things you need to know.

Day 10: This comprehensive chart details state tax filing guidance during the coronavirus pandemic.

Day 11: During this time of stock market turmoil, you may be contacted by clients who are anxious about the potential impact on their finances. Here are techniques to reassure your clients and calm their fears.

Day 12: If you’re an auditor, the digital era creates many opportunities for you. Learn how the profession is reimagining the audit in this blog about a new solution for data-driven audits.

Day 13: This podcast discusses ideas for bullet proofing investment portfolios during a volatile market.

Day 14: The coronavirus has required many accounting roles to become remote tasks. With remote auditing at the forefront, here is guidance and tools to help you succeed.

The Association of International Certified Professional Accountants is committed to you. During this pandemic and always, we will provide tools and resources you need to guide your business and your community.

If you have any questions or concerns, please contact our Global Engagement Center.

Association Staff

     

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As a CPA, your clients often turn to you. Now, with all of the uncertainty and questions ranging from financial to personal, clients need you more than ever. Here are four tips to help you support your clients during the weeks and months to come.

1. Your relationships are key. You’ve developed strong bonds with your clients, had conversations about difficult topics and been there for them during the hard times as well as the good. They know you’re willing to listen and eager to offer advice. The trust you’ve built from these experiences will serve you during this tumultuous time.

2. Be intentional about your communications. Every client is unique, so your communications shouldn’t be one-size-fits-all. Reach out to clients and work with them to determine the ideal frequency and method of communicating going forward. Given their current stress level and current portfolio, what makes the most sense? Once you have the logistics worked out, focus on providing personalized advice. You’ll further reinforce your role as their trusted adviser.

3. Set expectations on your business’ new normal. You’ll likely want to outline how your interactions with your clients will change as a result of this pandemic. Instead of in-person meetings, will you communicate via videoconference or phone? What’s the best way for clients to get in touch with you when they have questions? Do they know about this?

4. Reinforce the importance of a financial plan and a long-term strategy. It’s human nature to be reactionary in times of crisis, but you’ve worked with your clients to develop a well-thought-out plan. Communicate that you understand how they’re feeling and offer advice, knowing that you have built a relationship that thrives on trust.

COVID-19 is bringing much change and uncertainty to the world. As your clients turn to you during this time, you’ll be there to offer support, advice and a sense of calm. We all need a little more of that these days.

For more information, join us for free CPE webcasts on Understanding Market Implications and Bringing Calm Amid Chaos and Navigating change: Tax implications of the Families First Coronavirus Response Act.  

Further information:

• Coronavirus-related financial planning resources
• Coronavirus-related tax resources
• The AICPA Coronavirus Resource Center

Association Staff

     

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A major research initiative is underway that will help shape the future of the Uniform CPA Examination^® (CPA Exam), and your critical feedback is needed by April 30^th. If you work in public accounting, business and industry, academia, or even for yourself, you’ve likely noticed that the accounting profession is rapidly changing.

CPAs face new challenges

Advanced technology is changing how businesses operate — many businesses are more data-driven than ever before. Data analytics is fundamentally changing the way auditors collect and document audit evidence and make decisions. As technological developments continue, auditors must expand their technical knowledge and skills and revise audit planning and testing procedures to perform effective and efficient audits. These changes extend beyond auditing and expand to nearly all parts of the accounting profession.

Financial reporting and operational environments have increased in complexity in many companies. For example, the proliferation of estimates and complex valuations is impacting financial reporting and related disclosures. There’s also a consistent debate around tax reform that inevitably leads to significant changes in the tax code. Additionally, both auditing and financial accounting standards are evolving in response to changes in the business and regulatory environment.

CPAs need institutional knowledge, foundational skills and enhanced technical proficiency to identify and analyze business and financial issues.

The gateway to the profession

The public interest is protected when only qualified individuals are licensed as CPAs. To address the technological advances, increased complexity of reporting and business operations, changes in the tax code and the regulatory environment, the CPA Exam must remain current and relevant. The AICPA Examinations team conducts research and collaborates with members of the profession to ensure that it does.

As part of the AICPA Examinations team’s ongoing efforts to maintain the validity, reliability and relevance of the CPA Exam, practice analyses are periodically conducted to learn about the current state of the profession and the work of newly licensed CPAs. This research is reliant on input from accountants — you are in the best position to comment on what influences the work of your newest CPAs and the skills needed to perform at the highest level.

Building on the foundation of the 2016 research, the 2019 Practice Analysis assesses the impact of audit data analytics and technology on the work performed by newly licensed CPAs. As members of the AICPA’s Board of Examiners (BOE), we had firsthand experience conducting and assessing the research through meetings, focus groups, content ranking and confirmation panels. During this thorough process, the team engaged with volunteer subject matter experts and more than 300 supervisors of newly licensed CPAs (nlCPAs). Their feedback was invaluable.

The research findings informed updates needed to maintain CPA Exam alignment with professional practice, and confirmed that technology is dramatically affecting audit planning and execution and the nature of professional services. Further, the research indicated that understanding how technology impacts the work of a nlCPA is of greater importance than understanding a particular technology. Newly licensed CPAs will need to be able to:

• Understand business processes — automated aspects, risk identification, and internal control mapping — from inception to completion
• Increase of the reliance on System and Organization Controls for Service Organizations: Internal Control over Financial Reporting (SOC 1®) reports
• Perform with a digital and data-driven mindset, excelling at data analytics

Using data analytics as an example, the proposed changes to the CPA Exam are important because the emergence of technological advancements in data accessibility and audit data analytics allow accountants and auditors to take a deeper dive into company operations. The CPA Exam must focus on testing analytical and critical thinking skills.

Since aspects of understanding the business (including technology) are currently assessed in both the Auditing and Attestation (AUD) and Business Environment and Concepts (BEC) sections of the CPA Exam, those sections reflect the most change. The AUD section generally is more focused on risk assessment, data analysis and testing of internal controls. The BEC section includes governance and the design of internal controls, including those related to a company’s accounting information systems, whether in-house or outsourced.

The 2019 Practice Analysis sought to identify where the CPA Exam may have been insufficiently focused. The research identified content that could be removed or revised in each of the four CPA Exam sections. Confirmation panels surveyed supervisors of nlCPAs about their level of agreement with the proposed changes to the CPA Exam, and the final recommendations were reviewed and approved by the BOE. This is where you come in.

Your feedback is essential

Aspiring CPAs are enthusiastic about beginning their careers, and we want to fan that flame and make sure they attain the necessary technical knowledge and skills for licensure. Input from licensed CPAs is essential to enhance the CPA Exam’s validity, reliability and relevance.

An Exposure Draft and Invitation to Comment presents the planned changes to the CPA Exam and proposals that require additional research and input from the profession. Please share your feedback by April 30^th, 2020.

Dr. Helen Brown-Liburd and Audrey Katcher are members of the AICPA’s Board of Examiners. Dr. Brown-Liburd is an Associate Professor at Rutgers University. Her teaching experience includes Auditing, Accounting Information Systems and Financial Accounting. Audrey Katcher, CPA, CISA, CITP, CGMA, is a Partner, Business Advisory Services at RubinBrown, LLP. The AICPA Board of Examiners provides oversight for the Exam. The board articulates development and scoring policies that follow legal and psychometric standards as they relate to the profession’s licensing exam. The board also ensures that the exam remains aligned with the knowledge and skills of newly licensed CPAs.

     

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It’s fair to say life has gotten a little crazy. With the uncertainty of the financial markets and the constant barrage of news on coronavirus, we all feel a little overwhelmed. When life and work become overwhelming, it’s easy to go on autopilot.

But when you just go through the motions at work and let the day control you, you do more harm than good. Putting your mind on autopilot eliminates the intrinsic rewards of a job well done, making every assignment feel like a slog. Over the long run, it only demotivates you and makes you resent going to work.

Intentionality is the opposite of living on autopilot. It can alter everything from the way you approach your long-term goals to how you act and operate in your career. Understanding how to use intention effectively can increase what you put into your work, and what you get out of it. And the best part is that the only barrier to living more intentionally resides between your ears.

Intention provides agency

Intentional living is an increasingly popular remedy to the ceaseless pace of modern life. The philosophy supposes that our lives are so busy that we can end up shuffling mindlessly from one task to the next.

Anybody who’s gone down a rabbit hole on social media knows exactly how this haphazard behavior happens. You open your browser for a very specific purpose, but before you know it, you’ve clicked somewhere else. An hour later you look up at the clock and can’t even remember why you logged on in the first place. That hour is now lost, and you may still have to do the original task.

Being intentional doesn’t involve a series of behaviors; it’s the animating force behind all of your behaviors. Intentionality is often discussed alongside minimalism, and it’s easy to see why. Our lives are filled with clutter, both digital and analog. When we act with intention, we often end up cutting out some of that clutter, so we don’t work extra hours by default.

Eco-friendly choices, healthy eating and mindfulness practices also dovetail naturally with intentional living. However, your intentional life will be authentic to you and your personality so you shouldn’t feel pressured to conform to any specific set of behaviors.

We find meaning, both in our work and in our lives, by exercising agency. When that agency gets lost, you can feel disaffected and powerless. By taking control over our decisions and actions — which is exactly what intentional living asks us to do — we automatically create a greater sense of agency.

There will always be factors outside of ourselves that we can’t change. But when we act with intention, we harness those that are within our control.

Working intentionally

Where can you apply intentional living to your professional life? Everywhere from high-level principles and ideas to small details, like the way you organize your desk. If somebody has a messy workspace, you can bet it didn’t get that chaotic on purpose. People in leadership roles should tackle big picture ideas, like developing firm culture and setting company-wide goals with a sense of purpose, rather than focusing on the details. If you try to do everything yourself, you’ll never spend the necessary time on the most important areas of the business. That’s a problem of intentionality.

The best way to start working more intentionally is to begin small. Take 10 minutes at the start of your day to set your intention. Choose 1-3 areas on your list to prioritize finishing before the end of the day. Block time on your calendar to ensure you get it done, and don’t give that time away. Be intentional about what you need to accomplish in a day and vigilant with accepting meeting requests.

At the end of the day, review yourself. Were you able to accomplish your prioritized tasks? Give yourself a moment of gratitude for those you finished. If any weren’t completed, prioritize your next day around them. Turn this into a habit and you’ll stop letting the day run your schedule.

If there’s a single takeaway to living and working intentionally, it’s this: Remember that your engagement and effort has a direct impact on what you get from your job, your relationships and every other facet of your life. Ralph Waldo Emerson once said, “The reward of a thing well done is having done it.” When we are intentional, we exponentially increase our chances of doing a thing well. At a time when the pace of life is frantic and every second counts, you want to impact each moment as much as you can. You won’t do that without being intentional.

An Example of Intentionality

An easy way to illustrate intentionality is with dining choices. Grabbing fast food at a drive-thru on the way home is about the least intentional choice you can make. Odds are you made it out of force of habit or simply because you saw the sign.

Compare that choice with the act of preparing dinner. If you make food for yourself, you chop the vegetables, you adjust the seasoning, you wait as the meal cooks. These are all intentional choices that allow you to get greater reward for your meal. And let’s be honest, no meal from a microwave is better than one cooked by hand.

Intentional Breathing

Want to quickly test the power of intentionality? There’s no better proving ground than the action we all take for granted: breathing. Intentional breathing is a core mindfulness practice and an excellent way to de-stress and refocus when work gets hectic.

The next time you’re overwhelmed, take a few moments to be still and calm. Focus on each breath you take. Building on these small, easy, intentional actions will allow you to get a better control of the situation than letting your emotions go disregarded.

The next blog in Amy’s series offers valuable productivity tips and tricks. It will post on or about April 10. And be sure to check out Amy’s guided meditation to accompany this blog. A short, free registration may be necessary.

Amy Vetter, CPA.CITP, CGMA, MBA, is the CEO of The B³ Method^® Institute and Drishtiq Yoga, a top inspirational keynote speaker, corporate board member, author and host of the podcast Breaking Beliefs. As a CPA and Yogi who specializes in technology innovation, Amy is a motivational and inspiring speaker. She provides a refreshingly new perspective that inspires and guides professionals on how to transform their careers and lives.

     

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