CPA Advocate

CPA Advocate March, 2017

by MICPA | Mar 22, 2017   ()

House Bill 4001 – Individual Income Tax Rollback
Introduced by Representative Lee Chatfield (R-Levering), House Bill 4001 would have amended the Income Tax Act (MCL 206.51) so that the tax rate would have been 4.15% as of January 1, 2018, and 4.05% as of January 1, 2019. As written, House Bill 4001 would have reduced net income tax revenue by an estimated $195.0 million in FY 2017-18 and $463.0 million in FY 2018-19. If the Budget Stabilization Fund (BSF), or “rainy day fund” did not exceed $1.0 billion and additional rate reductions did not occur, income tax revenue would have been reduced by $571.3 million in FY 2019-20 and $623.8 million in FY 2020-21. The bill was defeated on the house floor by a vote of 52 Yay – 55 Nay, with 2 Representatives abstaining. Republicans who departed from their caucus in their opposition of the bill did so referencing the over $1 Billion in budget commitments in the near future. The topic of an Individual Income Tax decrease remains on the table in this legislature and MICPA will keep you informed of any big movements.

Marihuana in 2017, some insights
Public Acts 281-283 of 2016 signaled a change in Michigan’s attitude towards the medical marihuana industry. The Medical Marihuana Facilities Licensing Act, Medical Marihuana Act and the Marihuana Tracking Act were all signed with the intent of having a program up and running in Michigan in 2017. A topic that is on many CPAs minds is how to assist this booming industry. Many companies need accounting systems, payroll, tax strategies and more to operate in an effective and efficient manner. Also, as written in Public Act 281, all companies will be required to have a review performed by a licensed CPA working within a licensed CPA firm. In order to provide a clearer picture to MICPA members, our advocacy team is actively pursuing guidance and working closely with the State of Michigan to provide CPAs with guidance. We know first and foremost our members want to do the right thing, so we will work diligently to provide the most up to date guidance possible.

UIA issues 
The Unemployment Insurance Agency (UIA) has come under much scrutiny over the past 12 months, with much of the focus being on the fraud on the side of the unemployed. As many CPAs who work with UIA understand, there are systematic issues with the technology employed by the agency. MICPA has remained committed to working with our members to solve issues of communication, but long term is dedicated to providing input on a fix to the agencies ails. MICPA has compiled a litany of previously submitted issues, if you or your firm have examples of systemic issues with how your clients or your own firms accounts are handled, please send them to legislation@micpa.org.

Silent returns
MICPA members have inquired about the recent guidance that IRS will continue to accept returns for processing in instances where the taxpayer has not indicated their coverage status. Known as a “silent return” the process of not indicating coverage has been debated by tax preparers since the moment the guidance was issued. CPAs should be made aware that they could still be subject to preparer penalties, all of which can be found at IRS.gov, or by clicking here.

Government relations helpdesk – here for you
Often, members call into the MICPA with an issue related to any number of departments within the State of Michigan. Questions ranging from login issues with the Michigan Treasury Online website, Unemployment Insurance Agency account issues, questions about the renewal or status of their CPA license. If you, or any of the members of your firm have questions along these lines always know that you have an advocate in MICPA. Your support of our efforts ensures our voice is heard in Lansing and we can work to connect you or your firm with decision makers to get things moving. Time is money and the MICPA is always working to make sure our members are the best served in the nation. Call the MICPA and ask for the government relations department at 248.267.3700.

Federal tax reform
Federal tax reform could be right around the corner, per a number of sources. MICPA has become dedicated to tracking those changes and providing insight into what they could mean for any number of industries. Our newest resource, #MICPATaxTeam2017 looks to provide easy to use resources on all the articles, podcast and information out there related to comprehensive tax reform. Once an actual bill is produced, MICPA will track the progress and keep you updated every step of the way. 

Source: MICPA
Source: MICPA