TOP 10 TAX TIPS FOR REFUGEES AND IMMIGRANTS HOW WILL DIRECT FILE CHANGE TAX SEASON 2025? Supporting Communities Through Personal Finance and Economics Education
DonyaOneto,CPA
AnnF Elliott,EA
HannahCoyle,EA
EllenSilverstein,CPA
MichaelMcIlhargey,CPA
MatthewT Eddleman,EA
SeanCoggins,CPA
NicoleMoore,EA
JohnSalan,CPA
ChrisWilliams,CPA
BarbaraJ Smith,CPA
RobertMedbery,CPA
GigiHawkins
As we approach the end of another fantastic year, I’m thrilled to share some highlights and updates that showcase the incredible growth and opportunities within our MSATP community. From meaningful events to innovative tools, there’s never been a better time to connect, learn, and thrive together.
Our Third Annual Holiday Soirée is fast approaching, and we’d love for you to join us on Thursday, December 7th, 2024, at the beautiful Merriweather Lakehouse Hotel in Columbia, Maryland. This elegant evening is a celebration of our community, featuring:
Recognition of our scholarship recipients.
Networking opportunities with fellow professionals. A festive atmosphere to ring in the holiday season.
Proceeds from this event directly support the MSA Scholarship Foundation, helping to pave the way for the next generation of accounting and tax professionals. Don’t miss this opportunity to celebrate, connect, and make a difference. Click here to RSVP
This year, our in-person seminars have been a cornerstone of professional growth and networking for MSATP members. With engaging speakers and up-to-date content, these events provide the tools you need to stay ahead in your career while building meaningful connections.
As we gear up for the next seminar season, keep an eye out for our schedule of events—there’s something for everyone, whether you’re looking to earn CPE, learn new strategies, or grow your practice.
Our Lunch & Learn series has been a tremendous success, offering free, value-packed sessions to our members. These virtual events provide insights on:
Member Benefits: Maximizing the tools and resources available to you.
Hot Topics: Timely discussions on the latest industry trends and updates.
CPE Credits: Select sessions even qualify for continuing professional education!
We’re proud to offer these sessions as part of your MSATP membership, and we encourage you to join us for upcoming topics that can enhance your practice and knowledge.
One of the most exciting advancements this year is the launch of our new member portal! Designed with you in mind, the portal offers a streamlined way to manage your membership, register for events, and access exclusive resources. Even more exciting is the debut of the MSATP Community within the portal—a dedicated space for members to: Hold discussions on pressing topics. Share resources and best practices. Ask questions and connect with peers in the forum.
This platform is your space to collaborate, learn, and grow with other professionals in a supportive, dynamic environment.
As we reflect on the year and plan for the future, one thing remains clear: MSATP is a community built on connection, education, and mutual support. Whether you’re attending a seminar, joining a Lunch & Learn, or engaging in the member portal, we’re here to help you thrive.
Thank you for being a part of this incredible community. I can’t wait to see you at the Holiday Soirée, at one of our events, or in the member portal. Let’s close out this year strong and step into 2025 ready to achieve even greater things—together!
We cannot live only for ourselves. A thousand fibers connect us with our fellow men.
- Henry Melvill
Written By: Sean Semmler
On January 1, 2024, the new Beneficial Ownership Information (BOI) reporting requirements under the U.S. Corporate Transparency Act (CTA) came into effect, marking the start of a significant shift in corporate governance for small businesses These new BOI reporting obligations require an unprecedented level of disclosure from private companies, including personal information about their key stakeholders, senior officers, and directors, to the Financial Crimes Enforcement Network (FinCEN), the bureau of the U S Treasury Department tasked with combatting money laundering, terrorist financing, and other criminal activity.
Any non-exempt entity formed or registered to do business in the U S will now be considered a “reporting company,” required by federal law to adhere to these new reporting requirements. While there are 23 different categories of exemptions, many of these apply to entities that are already in heavily regulated industries, such as banks, credit unions, venture capital fund advisers, and pooled investment vehicles.
These new BOI reporting obligations require reporting companies to disclose specific personally identifiable information (PII) for each of their beneficial owners and company applicants, including their full name, date of birth, address, and a scanned image of a non-expired governmentissued ID A “beneficial owner” is any individual who directly or indirectly, (i) exercises substantial control over the reporting company, and/or (ii) owns or controls at least 25 percent of the ownership interests of the reporting company
A “company applicant” is (i) the individual who directly files the document that creates or first registers the reporting company in the U.S., and (ii) where more than one individual is involved in the filing, the individual who is primarily responsible for directing or controlling the filing
Reporting companies formed or registered prior to 2024 have until the end of this year to file their initial report, while reporting companies or registered this year must submit their initial report within 90 calendar days of formation or registration
Reporting companies formed or registered on or after 2025 will only have 30 calendar days from formation or registration to file their initial BOI report Notably, a BOI report is not a one-time filing, and reporting companies will be required to track and update their BOI for as long as they exist.
FinCEN estimates that 32 6 million entities will need to file an initial BOI report this year, with tens of millions more expected to become reporting companies by 2030. Despite the critical importance and broad scope of these new BOI reporting requirements, a majority of reporting companies are not even aware that these requirements exist. This lack of awareness is especially troubling given the severe civil and criminal penalties for noncompliance, including fines of up to $500 per day (adjusted for inflation), and up to two years in prison.
Given the complexity and ambiguity of these reporting requirements, CPAs should approach this issue with caution. While any authorized representative can submit a BOI report on behalf of a reporting company, advising on how best to interpret and comply with these requirements is a different matter. Legal associations across the country are currently debating whether providing guidance on these new BOI reporting requirements without a law degree constitutes the “unauthorized practice of law,” a term whose definition varies by jurisdiction
Although CPAs have a limited grant to interpret tax law under Title 26 of the U S Code, it remains uncertain whether the BOI reporting requirements fall within this scope. Insurance providers have already cautioned that interpreting the CTA likely falls outside of the scope of “professional services,” meaning that CPAs who advise their clients directly on these reporting requirements may be exposing themselves to immense risk.
The final BOI reporting requirements under the CTA (including comments) are complex and extensive, spanning hundreds of pages and encompassing numerous exemptions, definitions, and special rules. To complicate things further, FinCEN continues to issue additional guidance Advising clients on these reporting requirements may require interpreting a wide range of legal documents at the state, federal, and international levels to help determine beneficial ownership status. Additionally, CPAs should consider the significant risks associated with handling and storing the sensitive PII included in these reports.
Given these factors, CPAs and accounting firms should carefully consider whether they have the expertise and resources to manage BOI reporting in-house. In most cases, it will be necessary to refer clients to a service that specializes in the preparation and submission of BOI reports
Comply Simplified – The All-In-One BOI Reporting Solution
Comply Simplified, a partner of the MSATP, is the only all-in-one compliance platform dedicated to helping small businesses navigate the intricacies of these new BOI reporting requirements under the CTA While other services merely assist with the submission of already-completed reports, Comply Simplified offers expert guidance on how to accurately complete these BOI reports. Our platform is designed to help businesses understand the nuances of these new regulations and ensure that every detail is correctly reported
Trusted by top law firms, CPA associations, and accounting agencies, we’ve been vetted and approved by FinCEN to help companies make these filings directly from our platform For CPAs, partnering with Comply Simplified offers peace of mind By referring clients to our platform, you can mitigate the risks associated with BOI reporting while ensuring that your clients receive the expert guidance they need to comply with these new BOI reporting requirements under the CTA.
To see how Comply Simplified can benefit your firm and your clients, we invite you to request a demo You can contact us at support@complysimplified.com, or you can visit our site at https://www.complysimplified.com/ to learn more.
BY JOHN HARDT, MARYLAND VOLUNTEER LAWYER SERVICES
Maryland announced its participation in the IRS Direct File program on September 4, 2024 offering residents a simple, free, and secure way to file their state and federal taxes online.
Tax Year 2025 is going to be the first tax year with a new option for taxpayers to file their taxes online directly with the IRS, and this change may have widespread effects on the individual income tax landscape. But exactly how much this new tool will truly change things depends greatly on the success of its debut tax season, and in turn the efforts of its promoters on the federal and state levels The Maryland Volunteer Lawyers Service Low-Income Taxpayer Clinic promotes the value of this tool to its many low-income clients, and we are hopeful that this program can greatly reduce the burden tax season has on them.
Maryland is one of the 24 states that will participate in Direct File this year While that is slightly less than half of the states, the other participants include California, Texas, Florida, New York, New Mexico, Pennsylvania, Washington and more, meaning that this option will be available to millions of Americans Maryland is also one of only 11 states who have opted to fully integrate their own state online filing tool with the federal tool. In effect, this will mean that those that use the tool in Maryland for their federal taxes will be directed to the Maryland iFile system after they are done, but with their provided information pre-filled into the Maryland online system
The hope is that taxpayers can use this tool as a onestop shop for filing all of their taxes online for free –and even on mobile devices. The online tool is for anyone taking the standard deduction, and its income types include W-2 wage income, SSA-1099s, 1099-G Unemployment compensation, 1099-INT Interest Income, and 1099-R Retirement Income. Notably absent are the 1099 MISC or NECs (although the 1099 MISC may be used for Alaska Permanent Fund Dividends) which would allow independent contractors to use the tool The tool allows claiming seven different tax credits (EITC and CTC included) and three kinds of deductions, those being Student Loan Interest, Educator Expenses, and Health Savings Account contributions. Direct File isn’t designed to accept more complicated tax situations or itemized deductions, although it does allow the use of ITINs in lieu of an SSN.
So why exactly is Direct File so different from other free filing options, like IRS Free File? For one, there is no hard income limit on Direct File, although higherincome taxpayers may find its limitations more significant. Additionally, unlike Free File, which is operated in partnership with private tax preparation companies, which provide the actual software, Direct File uses no middleman. Users who use the program’s interview-style software will submit their taxes directly to the IRS, hence the name This is a major departure in that taxpayers no longer need to interact with private companies at all in order to file online, if they determine they do not need the help of a professional tax preparer.
MVLS, and other non-profit organizations such as CASH Campaign and other VITA site operators, have long made it part of their mission to try and warn low-income and elderly taxpayers about the dangers of certain tax preparation businesses and scammers that employ predatory advertising and prices In some examples we have seen taxpayers in lowincome neighborhoods been charged hundreds of dollars for a simple tax return, when they would have qualified for free help through a VITA site or even IRS Free File
These are also exactly the kinds of taxpayers that Direct File is aiming to serve. The same businesses then target taxpayers with high-interest Refund Anticipation Loans Ideally, Direct File will end these annual traps for taxpayers by offering them a better, easier, and free alternative
Even in this ideal scenario, there will be limitations. The lack of an option for independent contractors means that gig workers will continue to face more complex filing considerations in comparison with employees; although, in fairness a filing season-only program would not be able to address the most common issue of missing estimated tax payments throughout the year. This may be an area of future expansion, but that is only speculation at this point While some of the covered tax credits and deductions mentioned earlier are new additions rom last year’s pilot, overall the program remains intentionally relatively narrow in what kinds of issues it addresses. This means that taxpayers with more complicated tax situations, who were already more likely to need to hire a tax professional, are still better off doing so
In order to reach taxpayers who are the intended users of Direct File, the IRS is relying on the help of many other organizations and state bodies to spread the word In Maryland, the Comptroller’s Office has been instrumental in promoting the announcement of Maryland’s involvement in the program.
The initial public announcement in Annapolis featured, in addition to the Comptroller herself, Senators Van Hollen and Cardin, Representatives Hoyer and Sarbanes, Governor Wes Moore, and U S Deputy Secretary of the Treasury Wally Adeyemo – a prestigious lineup not typically seen for announcements of new IRS online tools. This public backing shows how there is, in many places, a major push for this program to succeed.
This push is observable not just from the top levels of government, but from more local organizations as well. Both the IRS and the MD Comptroller have created workgroups and roundtables on the federal and state levels to promote Direct File. Member organizations are encouraged to perform outreach activities explaining the benefits of Direct File, focusing on it as a new choice for taxpayers that lets them avoid unnecessary fees. Even VITA sites, which offer low-income taxpayers free tax preparation services, are encouraged to promote Direct File. According to recent news from the IRS, VITA sites may refer applicants to the Direct File website, if they determine that the taxpayer would find the tool helpful, without losing the ability to count this as a taxpayer helped for their programs. In theory, this would help VITA sites focus their resources on more difficult cases while still ensuring those who come to them still receive access to free quality tax preparation VITA sites are non-profits which can struggle with case volumes, so many may decide to use this option this filing season.
I also believe that as Maryland tax professionals, we should recognize and appreciate efforts to make the tax system more equitable and accessible to lowincome taxpayers. From the support we see each year in the clinic and at our partner’s VITA sites, I expect many of us already do. I am excited to see how the Direct File program contributes to that cause
n the before times, when the world made more sense, I began a column for the MSATP s weekly digest called Tech Tips Over the course of 3 years from September 2017 thru October 2020 I submitted 49 posts The bulk of these posts covered different accounting and tax related applications, or apps in the parlance of the young
My plan was to revisit the series with the benefit of four years of trial by fire Some of those apps have proven indispensable and others have well not This article will focus on the part of accounting tech that doesn’t get enough attention – the intersection of the human element and all these husks of code floating around in the cloud
First, let s do a recap of what occurred over the last four years, as if any of us may have forgotten There was a global pandemic which created a path of human and economic destruction through our nation and the world Some of the memories that are seared into my synapses are having to explain to the MD Dept of Labor that I didn’t as the managing shareholder of my firm file for unemployment benefits; that this was a fraudulent claim Or how I spent an hour explaining to one of my clients that going to www google com via Microsoft Internet Explorer was not the same as going to Google Chrome’ Or navigating the MD Form 511 form an odyssey that never really ended Or managing to keep up with the ever-changing regulations for the EIGHT tax laws that were passed
It was other-worldly to hear the Oracle of Indiana Bob Jennings ask for patience as he updated his slides and manual on the fly because regulation updates had been published only a couple hours before his webinar was to begin.
Our workloads increased while our pool of staff decreased
The ever-present threat of ID Theft and hacking grew and grew
There were some ‘disturbances’ related to our nation’s politics There were ups and downs with the economy Somehow a soft landing is a desired result Which I suppose it is when compared with a full on recession
Wherever you may stand, one thing I think we’d all agree on is that these haven’t been fun times
Another thing that occurred over these past four years was the rise of AI, or Artificial Intelligence for the uninitiated So much text has been spilled over this technology and not all of it useful
On the one hand AI is merely another tool And like any tool if used properly it can be helpful. And if misused, you can hurt yourself, and/or your clients.
One such company, Intuit, the 800-pound gorilla of our profession, has made the integration of AI central to its strategy When it comes to AI, the more data that it is trained on, the better (in theory) its outputs become And Intuit, never one to let a thing like ethics stand in the way of a good business decision, has leveraged – and proudly so – the data from its users of apps such as Turbo Tax and QuickBooks and all the other apps that it has vacuumed up into its walled garden (They have disclosed this in their recent investor publications, and has been covered by a variety of accounting industry outlets )
Seriously, try as I might to avoid them, I can t Every time I find an app that I like, Intuit acquires them and as they fold it into their system, said apps become less functional – often in opposite relation to its cost
So what does all this have to do with that little column I wrote all those years ago?
Early on, back in June of 2018, I wrote about an app called Xero (www xero com) At that point, we had been using this app for about 1½ - 1¾ years You must understand that I loved QuickBooks – I mean I LOVED QuickBooks My favorite version of that software was the 2012 version the year before it became so much more ‘useful’ My brother had to drag me kicking and screaming into the cloud and my learning curve on Xero was slow and steep And yet, eight years later, I would never go back into Intuit’s walled garden, even as it gets harder to fully avoid
Xero s interface is cleaner and dare I say, more intuitive Their features and pricing are clear and reasonable They have fantastic customer support Their reporting feature is light years ahead of QuickBooks (both the desktop and online versions)
And from a client perspective, consider this:
No client that I put on QuickBooks ever liked that software Not a single one Over some 15-20 years They used it grudgingly because I told them to
Every client that I put on Xero (with one lone outlier) has loved the software
And when I call Intuit for tech support on QuickBooks, after a hold time that would make the IRS blush, I first have to navigate a series of upsells and distractions When I reach out to Xero, they simply ask how they can help us today In other words, Xero treats me and my clients like a partner in this thing called accounting whereas Intuit has always ever treated us like a mark from which they seek to separate us from our money
Put simply Xero is better software
When it comes to serving my clients, that s where I stop My clients deserve world class service and world class software I aim to exceed mediocrity
Having said that speaking from a business owner ’ s perspective Xero doesn’t actively compete against me. Their perspective is that the clients are experts in their business, we ’ re experts in tax and accounting, and they are experts in delivering outstanding software We all work together
Intuit has a long history of seeking to stomp us out of existence and making us pay for the right to receive such abuse Surely there are those members of the MSATP that will recall their ‘Fire your accountant’ ad campaigns from the 90s Yep; all those clients that got QuickBooks ’98 and fired their accountant only to have to hire us back to fix their mess – and address their resulting IRS notices
The most recent occurrence of Intuit s aggression towards our profession was addressed by the MSATP itself, and the AICPA, and other national organizations that represent us And it got Intuit to cease the ad campaign For now They will try again They are trying again.
And in thinking about the economy as a whole, this is as it should be The competition they bring to us will force us to adapt and make our services more valuable to our clients That is the point of capitalism I m not complaining about Intuit s use of AI to offer a better (ostensibly) service to the public For one thing there aren’t enough accountants to go around!
It’s the issue of using client data to train their AI that’s the problem If a person purchases TurboTax, I assume that there is some clause in the EULA that allows Intuit to use the person ’ s data While it makes me uncomfortable professionally, that’s between the user and Intuit What I do have a problem with is if Intuit is using client data from ProSeries, Lacerte, Intuit ProConnect, and my client’s QuickBooks Online accounts if I’m the one managing them (Yes I do still have a handful of clients on QBO )
It's not a competition thing Believe it or not My clients stay with me for me; they couldn’t give a damn about Intuit, or Xero, or any other company And I’m sure that your clients would feel the same about you
It’s an IRC Section 7216 issue.
That little Watergate inspired bit of law that contains a broad definition of Taxpayer Information coupled with criminal penalties for improper use and disclosure Now some of you may remember when the MSATP hosted a four-hour seminar on this very subject – from the before times; back in 2019 And you may think that because Intuit’s servers are (assuming) located in the USA there is no issue And you’d only be part right – if their servers are in the USA, there is no disclosure issue, but that doesn’t cover the use issue
Now I couldn t find an article or disclosure that says that Intuit is using our client s information from ProSeries or Lacerte, but that doesn’t mean that they aren’t now, or not planning to in the future Or that there won’t be an ‘accidental’ comingling of Turbo Tax data with ProSeries and Lacerte data But IRC Section 7216 is a criminal statute. My question for you is: do you like to sleep at night?
Our clients share their Taxpayer Information with us for a specific purpose – preparing a tax return The question needs to be asked: If Intuit is using this Taxpayer Information for a purpose other than preparing a tax return, doesn’t the taxpayer need to be offered the mandatory consent forms? And who should be responsible for maintaining this? Are we practitioners at risk of breaching a federal criminal statute because one of our vendors misused data without telling us?
I would hope not, but this is America A small firm or solo practitioner will not be able to afford to defend themselves in such an action Justice is available for those with resources
All I can offer to you, my fellow practitioners, is the suggestion to put a clause in your engagement letters about this and seek to have your clients sign a Use Consent Form (the AICPA has templates for download available without a paid membership) this coming tax season And consult an attorney of course
And I can also link this back to our capitalist principles If you don’t like what Intuit is doing, you can vote with your feet Take the time to consider, or reconsider, Xero Or any of the other apps out there But preferably an app that won t be acquired by Intuit Xero is not paying me to write this article I pay them to use their software and am glad to do so They’ve allowed me to build a strong practice that serves my clients well
For those that suggest that ‘Compliance is Dead’, as so many breathless headlines have screamed at us over the past decade, I would say no No, it is not Internal Revenue Code Section 7216 is alive and well, as are all the other code sections our Representatives have foisted upon us
If your thought is to shrug your shoulders after reading this I certainly understand Change is hard
I’ll leave you with this saying as a parting thought:
The trees voted for the axe because its handle was made of wood
Jonathan Rivlin is a CPA practicing in the Baltimore metropolitan area. He has been a member of the MSATP since 2002 and served on the Society's Board of Directors from 2018-2024.
JULIE WEAVER, MARYLAND COUNCIL OF ECONOMIC EDUCATION
As financial professionals, you see it day after day: the more a client understands their finances and personal finance best practices, the better they are able to manage and increase their resources They become more comfortable asking for and taking advice, and making decisions. They understand how to consider all of their options - because they look for all of their options. And that makes your job more important (and more satisfying) as you help them with thoughtful, thorough and intentional counsel and proven best practices
Unfortunately, recent trends and studies indicate that financial literacy in the United States is alarmingly low. The 2024 Personal Finance Index illustrates poor levels of financial understanding across generations. And other studies show that 65% of Americans live paycheck-to-paycheck. Too many of our neighbors deplete their savings and rack up significant debt They develop bad money habits, which they then pass down to their children
This negative spiral needs to change, not just for the benefit of current spenders, but in order to equip our children with the good habits they need to be successful. And there is a way to do that: education.
When we teach our children about personal finance and economics, we’re creating a foundation for their financial success and growth We’re giving them the experiences and the tools they need to make good decisions. And we’re bolstering our communities so that people become productive, participating citizens who lead vibrant, healthy lives.
At the Maryland Council of Economic Education (MCEE), we believe that this education can begin in the classroom, especially for families who don’t have the knowledge and experience to teach these valuable lessons at home Across Maryland, MCEE supports thousands of K-12th grade teachers who are incorporating personal finance and economics into their curriculum in math, social studies, english, current events and other subjects. MCEE provides these teachers with relevant learning experiences and engaging hands-on activities that introduce and reinforce key financial and economic concepts
For example, Maryland teachers are leading teams of students to manage and invest an imaginary $100,000 portfolio in our hands-on Stock Market Game program. In the process, they learn about research, investing and the nuances of our financial system Also, our statewide poster contest helps younger students learn about basic money concepts, such as savings, taxes, and supply/demand through their creative development of posters And we can all boast that a team of high school students from Anne Arundel County are the national champions of the Personal Finance Challenge - a program we coordinate and deliver in Maryland - after demonstrating their knowledge of concepts such as earned income, savings, investing, managing credit and managing risk
Teachers are the key to making this education available MCEE hosts regular workshops and professional development opportunities to help them introduce their students to financial concepts and practices. County-wide departments and school districts rely on MCEE for advice and best practices in developing relevant curricula
As financial professionals, you, too, have a role to play in educating our young people about finance and economics Just look at the Maryland Society of Accounting and Tax Professionals (MSATP); as sponsors of the Financial Education and Capability Awards, the organization is shining a light on the teachers, community champions and organizations that lead and set an example for financial education. Coordinated in partnership with MCEE, the State of Maryland, and the CASH Campaign of Maryland, these awards elevate the important efforts of our neighbors and leaders in bringing this crucial learning to our communities.
This work is built on a simple strategy: elevating those with financial expertise - our organization, teachers, financial professionals, and community leadersand connecting them with young people who so deeply need this understanding for their futures At MCEE, that might mean bringing financial professionals into classrooms as guest speakers, or ensuring that educators have the latest techniques for engaging their students. But there is more to be doneand financial professionals can be part of it.
How might you pass on your expertise to your community and the next generation of citizens, leaders, and learners? The options are extensive: you can mentor a student (MCEE has a wonderful Girls In Finance program where women professionals mentor young girls), present at a teacher professional development program, or participate in a classroom activity at your neighborhood school. We’re happy to connect you to the school and experience that needs your participation!
Connect with MCEE to explore how you can get involved, contact your child’s school to explore if and how this information is taught, support organizations like MCEE doing this work, or have conversations at home and in your communities about the need for this learning. Your clients can participate too by making deduction eligible donations of cash or appreciated stock to help expand MCEE's resources.
Through our combined efforts, the financial futures of our children, our communities, and our society will be bright. Learn more about MCEE’s work and how you can get involved and support it, here.
By Janice Shih, University of Baltimore School of Law
Maryland has always been a welcoming state with a supportive infrastructure for refugees and immigrants, except for tax legal services. With limited pro bono or low bono tax legal services, the state must do better to serve the tax needs of these populations. The University of Baltimore School of Law’s Low-Income Taxpayer Clinic is trying to fill this void with their new bilingual “Top 10 Tax Tips for Refugees and Immigrants” brochure printed in thirteen languages.
The following scenario demonstrates one example of the importance of refugees, immigrants, and undocumented immigrants’ tax compliance on immigration status:
Miguel is an undocumented immigrant from El Salvador living in the U.S. for more than ten years with his partner and five year-old U.S. citizen child. Being undocumented and without employment authorization, he failed to file and pay taxes because he was paid in cash from his employer. Now in removal proceedings, facing deportation, the judge noted he was a good case for a grant of “Cancellation of Removal” because of his lengthy tenure in the U.S. and proven hardship of having an autistic U.S. citizen child. Obtaining Cancellation of Removal would allow him to apply to become a lawful permanent resident and place him on a path to citizenship. Instead of denying his immigration case, the judge told him to get his taxes fixed so he could grant Cancellation of Removal, allowing him to stay in the U S
Maryland has long been a magnet for refugee, immigrant, and undocumented populations. The state is home to several U S Department of State refugee resettlement partners, including the International Rescue Committee and HIAS, who assist recent refugee arrivals and other immigrants with resettlement benefits and services It also hosts the Maryland Office for Refugees and Asylees (MORA), Baltimore’s Mayor’s Office of Immigrant Affairs (MIMA), and hundreds of community-based organizations and houses of worship that provide programs and support to new and existing refugee and immigrant populations However, the tax needs of these populations, which are the same as any other taxpayer, are often overlooked because they don’t seek assistance, don’t access assistance, or rely on incorrect information through word-of-mouth
In addition, these populations lack knowledge of the U S tax system – why, how, and where to file state and federal income taxes – and how to access competent legal counsel to resolve tax issues.
Arriving in the U S with various levels of English proficiency, education, trauma, and diverse cultural norms only compounds the problem As refugees and immigrants use state and municipal services, educating and helping them understand and comply with tax laws and systems benefits the community at large.
Recognizing the unique needs of these populations and identifying a gap in tax legal services, the University of Baltimore created bilingual “Top 10 Tax Tips for Immigrants and Refugees” brochures, which provide basic tax information in English and a translated language. Brochures have been translated and printed in six languages (Spanish, Ukrainian, French, Arabic, Pashto and Dari) with an additional seven languages (Russian, Nepali, Tigrayan, Amharic, Swahili, Korean, Chinese) forthcoming. The brochures are an ideal teaching tool for ESL (English as a second language) classes due to the sideby-side English and foreign language translations.
Please help us spread the word about this important new resource! Printed and/or electronic versions of the brochures are available free of charge (shipping included) We are also available for community presentations for the upcoming 2025 tax season.
For more information, please contact Professor Janice Shih, Director of the Low-Income Taxpayer Clinic at the University of Baltimore School of Law at jshih@ubalt edu
To view and download the brochures, CLICK HERE.
Rob Bader, CASH Campaign
It can be difficult to acquire the training and experience needed to begin preparing taxes. Did you know you can get experience while volunteering or being paid to prepare taxes for Volunteer Income Tax Assistance (VITA) sites?
Since the IRS has its own exam for VITA volunteers (or staff), you get experience preparing returns before taking the Maryland Tax Preparers Exam For those who already have experience, Enrolled Agents and CPAs may be eligible for Continuing Professional Education credits while volunteering.
Did we also mention this helps people?
VITA is a program managed by the IRS but operated throughout the United States by different organizations like the nonprofit CASH Campaign of Maryland (CASH) They prepare tax returns at no cost to low-income and some middle-income taxpayers It helps the taxpayers by filing accurate returns and accessing refunds through credits such as the Earned Income and Child Tax Credits.
How can you sign up for VITA services with the CASH Campaign of Maryland?
It’s simple: Go to the CASH Campaign of Maryland website at cashmdorg and click the “Volunteer” button
Trainings begin in January but signing up now is helpful. As a CPA or tax professional, you will be well ahead of the game! You can choose the site where you want to volunteer, as well as the hours, to provide this important service Your services are needed more than ever – It’s estimated that 400,000 Maryland taxpayers are eligible for free tax preparation services
What about paid positions?
Please check the CASH Campaign of Maryland website at cashmd.org and click the “Get Involved” button.
What about Continuing Education Credits?
Enrolled Agents are eligible for up to 14 credits CPAs are eligible for 8 credits
If you are interested in credits, please check with your VITA site for details You are required to volunteer, take training, pass an IRS VITA exam, and volunteer a certain number of hours.
What tax credits will you help folks access when you volunteer?
There are a number of them but the most common ones are the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) As a VITA volunteer with CASH, you will help the lowincome families and individuals receive both the federal and Maryland versions of these tax credits
What is the economic impact of Free tax prep in Baltimore and Maryland?
Over the past twenty-three years, the CASH Campaign of Maryland has prepared and filed more than 266,000 tax returns for FREE putting almost $390 million in refunds and tax credits into the pockets of hard-working families and individuals in Baltimore This tax season, the CASH Campaign of Maryland hopes to put more than $30 million back into the pockets of hardworking Marylanders.
You can make a huge difference in low-income taxpayers’ lives by volunteering: 27% of free tax prep eligible Marylanders do not claim EITC: In 2020, 3,135,300 tax returns were filed in Maryland. An estimated 27% of those taxpayers were eligible for EITC and free tax prep services but did NOT apply for free tax prep and EITC (the national average is 24%) The CASH Campaign hopes to serve even more eligible taxpayers in 20254! Source: Office of the Comptroller of Maryland 2020 and IRS
In Tax Year 2022, more than 451,532 Marylanders claimed over $448 million in state EITC, with the highest number of claimants in Baltimore City and Baltimore, Montgomery & Prince George’s Counties. Source: Office of the Comptroller of Maryland 2024
Why don’t all eligible Marylanders claim EITC? Because not all Marylanders know they are eligible for EITC! These credits provide an exceptional boost to low-income wages without additional investment by the employer ALL employers should let their employees know about EITC!
As a Volunteer Income Tax Preparer, you play a vital role in empowering taxpayers by helping them understand their tax returns and linking them to valuable resources they are eligible for Sign up to volunteer today!
“Data breaches also cost accounting firms the second highest compared to all other industries, an average of $5.9 million”
By: Daniel Farina, Magna5
A mature cybersecurity posture should be top of mind for every accounting firm, as cyberattacks on the financial sector are continuing to increase in frequency According to research from SentinelOne, financial institutions were the second most impacted sector by data breaches over the last year. Data breaches also cost accounting firms the second highest compared to all other industries, an average of $5.9 million. This is a significant increase from the global average cost of a data breach in 2024, which IBM reports to be $4.88 million.
Hackers are drawn to the accounting industry due to the substantial amounts of money and valuable data handled. Accounting firms are not only one of the most highly targeted businesses for ransomware, but attacks against them are often successful A 2023 report on cybersecurity trends for accountants revealed that accountants spend an average of 7 hours per day on email, receiving 158 6 and sending 74 6 emails daily All it takes is one wrong click to give bad actors access to confidential data, and once an attack is initiated, the prospects aren’t good SentinelOne reports that only 1 in 10 ransomware attacks are stopped before encryption takes place, making a total of 81% of financial institutions victims of data encryption.
Email phishing is one of the most prevalent methods of criminal intrusion in the accounting industry Phishing utilizes social engineering to deceive individuals into sharing data or unwittingly downloading malware to their network The rise generative AI tools and deepfake technologies and their widespread availability have exacerbated the threat, posing numerous new cybersecurity challenges. As cybercriminals harness the power of these advanced tools, traditional defenses against phishing attempts may no longer suffice.
Generative AI, such as OpenAI’s ChatGPT, can craft messages that are nearly indistinguishable from those written by humans. This capability enables hackers to automate the creation of highly convincing phishing content at an unprecedented scale. AI systems can analyze a user’s online behavior, interests, and communication style to tailor messages that resonate on a personal level, thus significantly increasing the efficacy of deception
Furthermore, deepfake technology adds another layer to this threat. By generating synthetic media that can mimic a person’s appearance and voice with alarming accuracy, cybercriminals can create video or audio content that appears to be from a trusted source. The ability to imitate CEOs, colleagues, or family members in such a realistic manner paves the way for new forms of social engineering attacks that can bypass traditional security measures.
In the face of these sophisticated attacks, user awareness training emerges as a critical line of defense. Education remains paramount in helping individuals recognize the signs of phishing attempts, no matter how convincing they may appear. Training programs continue to evolve to address the nuances of AIgenerated content and deepfakes, providing users with the knowledge and tools to scrutinize communications for authenticity
Despite the rapid pace of technological advancement, a discerning eye can still detect suspicious and patterned language. IBM X-Force’s A/B testing demonstrated that AI-generated phishing emails were 11% successful, compared to 14% for human-generated emails.
AI-generated emails were reported to be suspicious 59% of the time, versus 52% for human-generated ones.
Awareness campaigns should emphasize verifying unusual requests through alternative communication channels, especially those involving fund transfers or sensitive information. Users should be encouraged to adopt a healthy skepticism and to report any suspicious activity immediately.
Zero trust security models operate on the principle of distrusting all users and devices, whether inside or outside the organization This approach is especially relevant in the age of AI-enhanced phishing attacks Zero trust policies require continuous verification of all users and devices, granting access based on strict identity verification and context-aware policies.
Implementing zero trust involves a combination of multi-factor authentication (MFA), least privilege access (limiting users’ access rights to only what is strictly necessary to perform their jobs), and network micro-segmentation to minimize attack surfaces By assuming that the network is always compromised, organizations can build resilient defenses against sophisticated AI-driven threats.
Compliance with government regulations and insurance policies is another critical line of defense. These regulations are in place for a reason the governing bodies know that businesses need to continue to evolve in order to keep pace with cyber threats Fines or penalties for non-compliance with Federal Trade Commission guidelines can be severe, but the damage from an unprepared attack can be catastrophic, and the death knell for all but the largest of firms.
IBM reports that it takes an average of 277 days to identify and contain a data breach Additionally, for every hour of downtime, companies suffer an average of $100,000 not to mention irreparable damage to their reputation. The fact of the matter is that you cannot afford a data breach, and that the costs necessary to prevent one from occurring will always pay dividends in the long run.
Whether you contract with the federal government or maintain a basic cyber insurance policy, these regulations seek to protect you and your clients by ensuring that you adhere to modern accounting standards. By maintaining regulatory compliance and documenting the steps taken to do so, you are demonstrating that you have done your due diligence toward safeguarding data.
In facing modern cyber threats, the most critical takeaway is the importance of a proactive security approach Accountants cannot afford to wait for disaster to strike; the best outcomes are achieved through foresight and investment in cybersecurity. According to IBM, organizations that invest in the latest security technologies, including security AI and automation, experience $1.76 million lower data breach costs and take 108 fewer days to identify and contain breaches compared to those that do not.
Beyond investing in advanced tools, having a comprehensive cybersecurity incident response plan is essential Alarmingly, 77% of companies lack such a plan. By prioritizing proactive measures and preparedness, accounting firms can significantly enhance their resilience against threats and ensure the protection of their valuable data and client trust.
The necessity for cybersecurity in the accounting profession cannot be overstated. The costs of not investing in these measures far outweigh the risks, and downtime resulting from cyberattacks can severely hinder your ability to meet crucial financial goals Given the sheer volume of emails accountants handle daily, human fallibility is a near certainty. Therefore, proactive investment in a mature cybersecurity posture is no longer optional but essential. By keeping appraised of the latest threats and adopting a proactive defense, accounting firms can safeguard their operations, achieve financial objectives, and uphold the highest standards of data protection in an increasingly digital world
The holiday season is a time for joy, connection, and giving back, and we are thrilled to invite you to the Third Annual Holiday Soirée on Saturday, December 7th, 2024, at the stunning Merriweather Lakehouse Hotel in Columbia, Maryland
This festive evening will bring together members, partners, and friends of the Maryland Society of Accounting and Tax Professionals (MSATP) to celebrate the year’s achievements, recognize outstanding scholarship recipients, and strengthen our community bonds
The Holiday Soirée is more than just a party it’s a chance to connect with fellow professionals, reflect on the successes of the past year, and set the stage for a brighter future The evening will include: Recognition of Scholarship Recipients: Celebrate the achievements of our future accounting and tax leaders
Delicious Cuisine and Festive Beverages: Enjoy a delightful menu and seasonal treats Networking Opportunities: Build relationships with colleagues, peers, and new connections in a relaxed and festive setting.
This event isn’t just a celebration; it’s an opportunity to give back. Proceeds from the soirée directly support the MSA Scholarship Foundation, which provides vital funding for students pursuing careers in accounting and tax. By attending, you help ensure the next generation of professionals has the resources they need to thrive.
Your participation makes all the difference Whether you’re a longtime member or new to the MSATP community, your presence at the Holiday Soirée strengthens our shared mission: fostering professional growth, supporting education, and building an inclusive community
Space is limited, so don’t wait to secure your spot RSVP now and join us in making this year’s soirée the most impactful yet Together, let’s celebrate the holidays, support our future leaders, and continue to thrive as a community
To learn more about how you can maximize your MSATP membership or if you have any questions, please don't hesitate to reach out. Reply to this email or contact our member services team at (800) 922-9672 We're here to help you get the most out of your membership and support your professional success.
Discounts on Seminars & Webinars
MSATP members enjoy exclusive discounts on seminars and events, allowing you to stay up-to-date with the latest industry trends and best practices while saving money on registration fees
Exclusive Verifyle Platinum Subscription
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Free Ethics CPE Credits
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Stay informed about tax-related matters with free access to CCH TaxAware, a valuable resource for tax professionals
Complimentary Unlimited Subscription to Earmark CPE
Earn CPE credits on the go with a complimentary unlimited subscription to Earmark CPE This benefit allows you to conveniently maintain your professional development whenever and wherever you choose
Attendance to Monthly Business Builders ThinkTank Groups
Benefit from attending MSATP's monthly Business Builders ThinkTank groups, where you can learn from and collaborate with other solo and small firm professionals
Vibrant Community of Solo and Small Firm Professionals
As an MSATP member, you become part of a vibrant community of solo and small firm professionals who offer support, collaboration, and a wealth of knowledge to help you succeed in your practice
FREE access to Verifyle Platinum. If you haven't done so already, it’s time to safeguard your client’s information and enhance your practice’s efficiency. Verifyle Platinum is an ultra-secure document storage and communication platform designed with professionals like you in mind. It offers a space to share, store, and communicate securely.
Earmark CPE
With Earmark's Unlimited Subscription, members can enjoy unlimited free CPE courses every week, an ad-free experience within the app, and the option to skip sponsor messages during registration for sponsored courses. It's a game-changer for professionals in small firms, providing a convenient and affordable education.
As a NASBA-approved CPE sponsor and IRS-approved CE provider, Earmark offers a vast range of courses covering accounting, tax, technology, fraud detection, personal development, practice management, and more. Our CPAs, CMAs, and EAs can now meet their continuing education requirements simply by tuning in to insightful podcasts. We're particularly excited about the exclusive Federal Tax Updates podcast, which provides biweekly federal tax news and analysis.
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Quickly and easily get answers to all your federal and state tax questions in one place! Don’t waste time searching various resources for crucial news and information that you need quickly.
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