Leaders from the Nebraska Society of CPAs visited the offices of Nebraska lawmakers in Washington, D.C., in May to discuss a variety of issues important to the accounting profession. The trip was part of the American Institute of CPAs (AICPA) Spring Meeting of Council and Annual Members Meeting. Nebraska CPAs who joined me in attending the meetings included Society Chairman Lorraine Egger of CyncHealth in La Vista, Society Chairman-Elect Kelly Martinson of Lutz in Omaha, and Society Past Chairman and AICPA Elected Council Representative Shari Munro of Frankel Zacharia in Omaha.

During the meeting, the governing body of the AICPA passed a resolution directing the organization to move forward with development of a national strategy focused on boosting the accounting profession’s talent pipeline. The resolution acknowledges the challenges facing the talent pipeline and the need for a “thoughtful strategic process” in the search for solutions while reiterating the Council’s commitment to preserving the mobility of CPA licensees. The resolution sets the stage for the AICPA to convene further strategy and implementation sessions with firms, state CPA societies, employers, regulators, educators, and other stakeholders.

The visits to Capitol Hill were the highlight of the AICPA meetings. Nebraska CPAs advocated for support on four key federal issues, including a congressional resolution on the fiscal state of the nation, establishing the accounting profession as a STEM career pathway, simplifying the tax filing extension process, and expanding eligible uses of 529 savings plans to include fees and expenses required to obtain or maintain recognized postsecondary credentials, such as the Uniform CPA Exam.

Nebraska CPAs shared valuable insights from the accounting profession with lawmakers and encouraged support for legislation that would benefit taxpayers and their advisors as well as improve tax administration. Society leadership highlighted principles of good tax policy as a foundation to create a more efficient tax system.

We asked members of the Nebraska congressional delegation to support the following bills:

• The Simplify Automatic Filing Extensions (SAFE) Act (H.R. 3566), which would assist the IRS with receiving extensions earlier in the year, providing taxpayers, CPAs, and the IRS with a streamlined process and reducing the need for many penalty abatement requests;
• The Freedom to Invest in Tomorrow’s Workforce Act (H.R. 1477 & S. 722), which would expand eligible uses of 529 savings plans to include fees and expenses required to obtain or maintain recognized postsecondary credentials, including professional credentials and certifications, and provide accounting professionals with greater financial flexibility as they enter the workforce and seek to further their education;
• The Accounting STEM Pursuit Act (H.R. 3541 & S. 1705) to establish the accounting profession as a STEM career pathway, recognizing the value of accounting professionals, including CPAs, as technological leaders; and
• The Fiscal State of the Nation Resolution (H. Con Res 46 & S. Con Res 10), which would require the Comptroller General to make a presentation to a joint session of the House and Senate Budget committees on the Government Accountability Office (GAO) auditor’s report of the U.S. government’s financial statements. This resolution would promote greater transparency on the information included in the federal government’s financial report.

There is no doubt that CPAs have weathered some of the most challenging times in the history of tax administration over the past several years, guiding individuals and businesses through significant changes. We are grateful to our members of Congress and their staff for taking the time to meet with us on these important issues.

Nebraska Legislature Adjourns

Nebraska Governor Jim Pillen signed LB754 into law on May 31, 2023, enacting several tax reforms. LB754 includes the Pass-Through Entity Tax (PTET) and lowers the income tax rate for the state’s top individual and corporate income tax earners to 3.99% by 2027.

Nebraska’s PTET law will allow pass-through entities, taxed as partnerships and Subchapter S corporations, to voluntarily elect to pay state income taxes on behalf of their individual owners. This effectively allows individual owners to avoid the impact of the $10,000 state and local tax (SALT) federal itemized deduction limit by shifting the tax from the business owner to the owner’s business. The entity may pay taxes from 2018 forward, allowing business owners to realize this tax savings not only for 2023, but also for prior tax years. This new law will allow business owners to save on federal income taxes by taking these taxes as a deduction against their business income.

Nebraska is now among 36 states that have enacted similar legislation over the past several years (see page 9). Watch for an article in the next issue of the Nebraska CPA magazine for details on the new PTET.

In addition to PTET, LB754 also lowers the top income tax rates (currently 6.84% for individuals and 7.25% for corporations) gradually, beginning with the 2023 tax year for individuals and the 2024 tax year for corporations until reaching the 3.99% rate for tax years beginning on or after Jan. 1, 2027.

All told, the Legislature passed 291 bills by creating numerous packages (aka Christmas Trees) in the 2023 legislative session.

More information about the legislative session may be found on the Society website at www.nescpa.org/advocacy/news.

Summer Conference Features Excellent Line-Up of Speakers

The Society’s two-day Not-For-Profit and Governmental Accounting Conference drew approximately 130 registrants and 19 local and national speakers. The conference was held June 14-15 in Lincoln at the Nebraska Innovation Campus Conference Center, a new location for the combined event.

A brand-new networking event was held at the end of day one of the conference. The “ABCs of Business Happy Hour” brought together approximately 75 attorneys, bankers, and CPAs, who enjoyed great views from Lincoln’s newest rooftop bar, the Barred Owl, on top of The Scarlet Hotel at the Nebraska Innovation Campus. The event was sponsored by the Nebraska State Bar Association and the Nebraska Bankers Association, in addition to the Nebraska Society of CPAs.

New Leadership to Be Nominated

The Society’s Nominating Committee will be meeting in late June to recommend new directors to serve on the Society Board as well as the chairman-elect for 2023-2024. Those individuals will be voted upon by the membership at the Annual Meeting, which will occur during the Fall Conference, Oct. 30-31, at the Crete Carrier Riverview Lodge, a beautiful new facility located at Mahoney State Park in Ashland. Join more than 200 of your peers at the Annual Meeting and Fall Conference by registering today at www.nescpa.org/conferences.

Board Retreat to Focus on CPA Profession Issues

The Society’s annual Board of Directors Retreat will be August 23 at Hillcrest Country Club in Lincoln. Nebraska Board of Public Accountancy Executive Director Dan Sweetwood will join us for a State Board report, followed by a CPA profession issues update with AICPA Vice President of State Regulatory & Legislative Affairs Marta Zaniewski and National Association of State Boards of Accountancy (NASBA) Director of Legislative and Governmental Affairs John Johnson. Then, Society lobbyists Walt Radcliffe, Korby Gilbertson, and Justin Brady will discuss what to expect during the 2024 state legislative session with the Society Board.

Women in Accounting Summit to Feature National Speakers

The Society’s second annual Women in Accounting Summit is scheduled for Aug. 30 at the Crete Carrier Riverview Lodge at Mahoney State Park. Last year’s summit drew more than 120 attendees and we expect the 2023 event to be even bigger and just as inspiring!

Among the nationally recognized speakers at the summit is Jennifer Wilson, co-founder of Convergence Coaching. Wilson is listed among Accounting Today’s Top 100 Most Influential People in Accounting, was named one of Inside Public Accounting’s Most Recommended Consultants, and was among AICPA and CIMA’s 25 Most Powerful Women in Accounting, to name a few of her accolades.

Also on the agenda is Cynthia Cooper, former vice president of internal audit at WorldCom, who helped investigate and unearth $3.8 billion in fraud at WorldCom in 2002—the largest corporate fraud in U.S. history at that time. Cooper was named one of three “People of the Year” by Time magazine in 2002. Rounding out the summit will be Deloitte Well-Being Officer Jen Harris on life-work integration, Oh Hello CEO Natalie Micale on personal branding, and Dr. Connie Reimers-Hild on giving yourself permission to pursue your dream future. Register today at www.nescpa.org/conferences.

Husker Tailgate Scheduled for Sept. 29

The Cornhuskers will be taking on Michigan at Memorial Stadium in Lincoln on Sept. 30. Whether you’re attending the game or not, you won’t want to miss the tailgate the night before. Hosted by the Nebraska Society of CPAs and the Associated General Contractors (AGC) of Nebraska, this second annual tailgate will be held just outside the NESCPA and AGC office building at 7435 O Street in Lincoln and will offer fun, games, and food and drink for all. Mark your calendars and stay tuned for details!

Joni Sundquist is president and executive director of the Nebraska Society of CPAs. You may contact her at (402) 476-8482 or joni@nescpa.org.